Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 20, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Matson, Inc.
Entity Central Index Key	0000003453
Document Type	10-K
Document Period End Date	Dec. 31, 2017
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			$ 1,277,726,300
Entity Common Stock, Shares Outstanding		42,650,152
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Revenue:
Ocean Transportation	$ 1,571.8	$ 1,541.1	$ 1,498.0
Logistics	475.1	400.5	386.9
Total Operating Revenue	2,046.9	1,941.6	1,884.9
Costs and Expenses:
Operating costs	(1,717.2)	(1,617.7)	(1,510.1)
Equity in income of Terminal Joint Venture	28.2	15.8	16.5
Selling, general and administrative	(208.5)	(185.1)	(195.0)
Total Costs and Expenses	(1,897.5)	(1,787.0)	(1,688.6)
Operating Income	149.4	154.6	196.3
Interest expense	(24.2)	(24.1)	(18.5)
Income before Income Taxes	125.2	130.5	177.8
Income taxes	106.8	(49.1)	(74.8)
Net Income	232.0	81.4	103.0
Other Comprehensive (Loss) Income, Net of Income Taxes:
Net Income	232.0	81.4	103.0
Other Comprehensive Income (Loss):
Net gain in prior service cost	0.8	24.1	5.1
Amortization of prior service cost included in net periodic pension cost	(4.0)	(2.2)	(1.3)
Amortization of net loss included in net periodic pension cost	1.7	1.2	1.8
Other adjustments	0.2	0.2	0.8
Total Other Comprehensive (Loss) Income	(1.3)	23.3	6.4
Comprehensive Income	$ 230.7	$ 104.7	$ 109.4
Basic Earnings Per-Share: (in dollars per share)	$ 5.41	$ 1.89	$ 2.37
Diluted Earnings Per-Share: (in dollars per share)	$ 5.37	$ 1.87	$ 2.34
Weighted Average Number of Shares Outstanding:
Basic (in shares)	42.9	43.1	43.5
Diluted (in shares)	43.2	43.5	44.0

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 19.8	$ 13.9
Accounts receivable, net	194.6	189.5
Prepaid expenses and other assets	51.6	70.8
Total current assets	266.0	274.2
Long-term Assets:
Investment in Terminal Joint Venture	93.2	82.4
Property and equipment, net	1,165.7	949.2
Goodwill	323.7	323.7
Intangible assets, net	225.2	236.6
Deferred dry-docking costs, net	89.2	89.1
Other long-term assets	84.5	60.3
Total long-term assets	1,981.5	1,741.3
Total assets	2,247.5	2,015.5
Current Liabilities:
Current portion of debt	30.8	31.8
Accounts payable	175.1	170.5
Accruals and other liabilities	80.4	75.3
Total current liabilities	286.3	277.6
Long-term Liabilities:
Long-term debt	826.3	707.1
Deferred income taxes	285.2	363.8
Other long-term liabilities	171.5	172.1
Total long-term liabilities	1,283.0	1,243.0
Commitments and Contingencies (Note 17)
Shareholders' Equity:
Common stock — common stock without par value; authorized, 150.0 million shares ($0.75 stated value per share); outstanding, 42.5 million shares in 2017 and 42.9 million shares in 2016	31.9	32.1
Additional paid in capital	289.7	289.8
Accumulated other comprehensive loss, net	(24.9)	(23.6)
Retained earnings	381.5	196.6
Total shareholders' equity	678.2	494.9
Total liabilities and shareholders' equity	$ 2,247.5	$ 2,015.5

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets
Common stock, shares authorized	150.0	150.0
Common stock, stated value (in dollars per share)	$ 0.75	$ 0.75
Common stock, shares outstanding	42.5	42.9

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows From Operating Activities:
Net income	$ 232.0	$ 81.4	$ 103.0
Reconciling adjustments:
Depreciation and amortization	101.2	97.1	83.4
Deferred income taxes	(128.9)	24.7	50.7
Loss on disposal of property	3.0	0.9	1.2
Share-based compensation expense	11.1	11.2	12.2
Equity in income of Terminal Joint Venture	(28.2)	(15.8)	(16.5)
Distributions from Terminal Joint Venture	17.5		14.0
Tax benefit from equity issuance		2.2	2.6
Tax benefit from stock-based compensation		(0.3)	(0.9)
Changes in assets and liabilities:
Accounts receivable, net	(5.1)	14.4	13.5
Deferred dry-docking payments	(54.6)	(59.2)	(25.7)
Deferred dry-docking amortization	46.2	38.9	23.1
Prepaid expenses and other assets	14.4	(13.6)	(13.2)
Accounts payable, accruals and other liabilities	20.4	2.1	(9.4)
Other long-term liabilities	(4.1)	(26.2)	7.3
Net cash provided by operating activities	224.9	157.8	245.3
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(252.0)	(94.5)	(21.3)
Other capital expenditures	(55.0)	(84.9)	(46.5)
Proceeds from (payments for) disposal of property and equipment	(0.2)	2.5	5.5
Cash deposits into Capital Construction Fund	(171.4)	(123.4)	(77.9)
Withdrawals from Capital Construction Fund	201.7	92.2	105.4
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	(276.9)	(320.7)	(63.8)
Cash Flows From Financing Activities:
Proceeds from issuance of debt		275.0	75.0
Payments of debt	(30.0)	(20.5)	(20.5)
Repayment of capital leases	(1.8)	(1.7)	(1.5)
Proceeds from revolving credit facility	469.0	1,103.0	588.0
Repayments of revolving credit facility	(319.0)	(1,048.0)	(588.0)
Payment of financing costs	(1.7)		(0.9)
Proceeds from issuance of common stock	1.9	1.2	2.2
Dividends paid	(33.8)	(32.2)	(30.8)
Repurchase of Matson common stock	(19.3)	(38.0)	(4.9)
Tax withholding related to net share settlements of restricted stock units	(7.4)	(5.9)	(2.9)
Tax benefit from stock-based compensation		0.3	0.9
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	57.9	151.3	(449.4)
Net Increase (Decrease) in Cash and Cash Equivalents	5.9	(11.6)	(267.9)
Cash and Cash Equivalents, Beginning of the Year	13.9	25.5	293.4
Cash and Cash Equivalents, End of the Year	19.8	13.9	25.5
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	23.9	21.6	17.7
Income tax paid, net of income tax rrefunds	2.6	15.6	40.0
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$ 1.2	$ 4.1	13.5
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, 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
Tax benefit from stock-based compensation 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 ($0.78, $0.74, and $0.70 per share) for the years 2017, 2016 and 2015 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
Increase (Decrease) in Stockholders' Equity
Net income				81.4	81.4
Other comprehensive income (loss), net of tax			23.3		23.3
Tax benefit from stock-based compensation 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 ($0.78, $0.74, and $0.70 per share) for the years 2017, 2016 and 2015 respectively				(32.2)	(32.2)
Balance at the end of the period at Dec. 31, 2016	$ 32.1	289.8	(23.6)	196.6	$ 494.9
Balance (in shares) at Dec. 31, 2016	42.9				42.9
Increase (Decrease) in Stockholders' Equity
Net income				232.0	$ 232.0
Other comprehensive income (loss), net of tax			(1.3)		(1.3)
Share-based compensation		11.1			11.1
Shares issued	$ 0.3	(5.7)			(5.4)
Shares issued (in shares)	0.3
Shares repurchased	$ (0.5)	(5.5)		(13.3)	(19.3)
Shares repurchased (in shares)	(0.7)
Dividends ($0.78, $0.74, and $0.70 per share) for the years 2017, 2016 and 2015 respectively				(33.8)	(33.8)
Balance at the end of the period at Dec. 31, 2017	$ 31.9	$ 289.7	$ (24.9)	$ 381.5	$ 678.2
Balance (in shares) at Dec. 31, 2017	42.5				42.5

DESCRIPTION OF THE BUSINESS	12 Months Ended
DESCRIPTION OF THE BUSINESS	Dec. 31, 2017
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 on the Company’s reportable segments for the three years ended December 31, 2017, see Note 3. 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 Okinawa, Japan and various islands in the South Pacific. In addition, subsidiaries of MatNav provide container stevedoring, refrigerated cargo services, inland transportation 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 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 seven terminal facilities on the U.S. West Coast, including four facilities which are used by MatNav (“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 logistics 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 18).

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

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 18).

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 52 weeks in the 2017 and 2015 fiscal years, and 53 weeks in the 2016 fiscal year, 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 (gain) 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.

Immaterial Correction of an Error in Previously Issued Financial Statements: Subsequent to the filing of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2017, the Company identified an error related to its post-retirement benefit plan liabilities. The Company did not account for the transfer of certain participants belonging to three stevedore union groups in Hawaii out of the Company’s post-retirement benefit plan and into a multi-employer Stevedore Industry Committee Welfare Benefit Plan (“SIC Plan”), that was approved by the Board of the SIC Plan in August 2016 (the “Transfer”). The SIC Plan assumed the existing unfunded obligation related to the transferred participants who continue to receive substantially the same post-retirement benefits that they previously received under the Company’s post-retirement benefit plan. The Company determined that the Transfer should have been accounted for in August 2016 when the Transfer was approved by the SIC Board as a negative plan amendment in accordance with Accounting Standards Codification (“ASC”) 715-60, Defined Benefit Plans – Other Postretirements since the Company retains significant risks related to the obligation for the transferred participants’ benefits, and will continue to participate in the funding of the transferred benefit obligation through ongoing and increased contributions to the SIC Plan.

Accordingly, the Company corrected this error by recording a decrease of $36.8 million in employee benefit plan liabilities and $1.6 million in accruals and other liabilities, with a corresponding net gain in prior service costs of $22.5 million in accumulated other comprehensive income (loss), net of $15.0 million of deferred income taxes, and a $0.9 million increase in retained earnings as of December 31, 2016. The net gain in prior service costs included in accumulated other comprehensive income (loss) will be amortized over a period of approximately 10 years. The correction resulted in an increase in Ocean Transportation segment operating income of $1.4 million, and income tax expense of $0.5 million in the Company’s Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2016. The Company’s disclosures in the Consolidated Financial Statements for the year ended December 31, 2016, including the Consolidated Statements of Income and Comprehensive Income, Consolidated Balance Sheets, Note 11 Pensions and Post-Retirement Plans, and Note 13 Accumulated Other Comprehensive Income (Loss) have been adjusted to reflect the correction of this error. The Company believes the correction of this error is immaterial to previously issued Consolidated Financial Statements for prior periods. The misstatement had no impact on the Company’s Condensed Consolidated Statements of Cash Flows.

Reclassifications: Certain amounts included within cash flows from operating activities of the Consolidated Statement of Cash Flow for the year ended December 31, 2016, have been reclassified to conform to the current period presentation. There was no change in net cash provided by operating activities for the year ended December 31, 2016.

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 $18.7 million and $21.3 million at December 31, 2017 and 2016, respectively, and are reflected as current liabilities in the Consolidated Balance Sheets.

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, 2017, and 2016, the Company had assigned $134.8 million and $174.7 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 customer and the potential risks to collection, the customer’s payment history and other factors which are regularly monitored by the Company. Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2017 were as follows:


	Balance at		Expense		Write-offs		Balance at
Year (in millions)	Beginning of Year		(Recovery) (1)		and Other		End of Year
2017	$	4.2	$	1.0	$	(0.6)	$	4.6
2016	$	6.6	$	(0.3)	$	(2.1)	$	4.2
2015	$	5.0	$	2.0	$	(0.4)	$	6.6

(1)

Expense is shown net of amounts recovered from previously reserved doubtful accounts.

Prepaid Expenses and Other Assets: Prepaid expenses and other assets consist of the following at December 31, 2017 and 2016:


	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2017		2016
Income tax receivables	$	2.6	$	23.4
Insurance related receivables		15.2		17.6
Prepaid fuel		14.4		11.5
Other		19.4		18.3
Total	$	51.6	$	70.8

Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2017 and 2016:


	As of December 31,
Other Long-Term Assets (in millions)	2017		2016
Alternative minimum tax (AMT) receivable (1)	$	50.2	$	—
Deferred charges and other		20.7		17.7
Vessel and equipment spare parts		12.7		11.4
Capital construction fund - cash on deposit (See Note 7)		0.9		31.2
Total	$	84.5	$	60.3

(1)

Represents AMT tax credits refundable as a result of the Tax Act.

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. No impairment was identified for the years ended December 31, 2017, 2016, and 2015.

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		30 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 Sheets (see Note 5). During the three years ended December 31, 2017, 2016 and 2015, the Company capitalized $7.5 million, $2.1 million and $0.4 million of interest related to the construction of new vessels.

Deferred Dry-docking Costs: U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and classification society rules. These standards require U.S. flagged vessels to undergo two dry-docking inspections within a five-year period, with a maximum of 36 months between them. However, U.S. flagged vessels that are enrolled in the U.S. Coast Guard’s Underwater Survey in Lieu of Dry-docking (“UWILD”) program, are allowed to have their Intermediate Survey dry-docking requirement met with a less costly underwater inspection. Non-U.S. flag vessels are required to meet applicable classification society rules and their own Port State standards for seaworthiness, which also mandate vessels to undergo two dry-docking inspections every five years.

The Company is responsible for maintaining its vessels in compliance with U.S. and international standards. 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. Amortized amounts are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income.

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 6 and 18). 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 within the Ocean Transportation and Logistics reportable segments. Long-lived assets and finite-lived intangible assets are grouped at the lowest level 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. No impairment charges of long-lived assets were recorded for the years ended December 31, 2016, and 2014 as a result of this evaluation. 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, 2017, 2016 and 2015.

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”). Based upon the Company’s evaluation of its indefinite-life intangible assets and goodwill for impairment, the Company determined that the fair value of each reporting unit exceeds book value. Therefore, no impairment charges of goodwill were recorded for the years ended December 31, 2017, 2016 and 2015, respectively.

Accruals and other liabilities: Accruals and other liabilities consist of the following at December 31, 2017 and 2016:


	As of December 31,
Accruals and Other Liabilities (in millions)	2017		2016
Payroll and vacation related accruals	$	24.7	$	23.3
Uninsured claims and related liabilities - short term		15.4		18.4
Employee incentives and other related accruals		17.4		8.7
Interest on debt		5.4		5.8
Multi-employer withdrawal liability - short term (see Note 12)		4.1		4.1
Deferred revenues		5.0		2.9
Pension and post-retirement liabilities - short term (see Note 11)		3.0		2.1
Other liabilities		5.4		10.0
Total	$	80.4	$	75.3

Other long-term liabilities: Other long-term liabilities consist of the following at December 31, 2017 and 2016:


	As of December 31,
Other Long-term Liabilities (in millions)	2017		2016
Pension and post-retirement liabilities (see Note 11)	$	75.1	$	75.0
Multi-employer withdrawal liability (see Note 12)		58.4		60.1
Uninsured claims and related liabilities		29.5		27.4
Other long-term liabilities		8.5		9.6
Total	$	171.5	$	172.1

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 Company directly negotiates 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. 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 independent 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.

Recognition of Revenues and Expenses: Revenue in the Company’s Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity:


	Year Ended December 31,
Ocean Transportation (in millions) (1)	2017		2016		2015
Ocean transportation services	$	1,531.8	$	1,504.5	$	1,472.0
Terminal and other related services		23.5		22.9		15.9
Fuel sales		9.9		7.5		10.1
Ship management services		6.6		6.2		—
Total	$	1,571.8	$	1,541.1	$	1,498.0

(1)

Ocean transportation revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of ocean transportation revenues and fuel sales which are denominated in foreign currencies.

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 and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred.

Terminal and other related service revenues to third parties are recognized as the services are performed.

Ship management services revenue and related cost are recognized in proportion to the services completed.

Fuel sale revenue is recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract.


	Year Ended December 31,
Logistics (in millions) (1)	2017		2016		2015
Transportation brokerage and freight forwarding services	$	445.1	$	373.7	$	360.7
Warehouse and distribution services		17.5		19.7		19.8
Supply chain management and other services		12.5		7.1		6.4
Total	$	475.1	$	400.5	$	386.9

(1)

Logistics revenue transactions are primarily dominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories are denominated in foreign currencies.

Logistics transportation brokerage and freight forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, and labor costs. 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. Labor costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for the contractual relationship with the customer and has latitude in establishing prices.

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. For customers in other warehouses, storage revenue is recognized in the month the service is provided to the customer. Storage expenses are recognized as incurred. Other warehousing and distribution services revenue and expense are recognized in proportion to the services performed.

Supply chain management and other services revenue and related costs are recognized in proportion to the services performed.

The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are paid in advance by the customer or when the voyage or transportation services have not commenced as of the end of the fiscal period. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year.

The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Consolidated Statements of Income and Comprehensive Income.

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 awards made to employees and directors. The Company’s various stock-based compensation plans are more fully described in Note 15.

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 in accordance with ASC 740, Income Taxes (“ASC 740”). 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act includes numerous changes in existing tax law, including a reduction in the federal corporate income tax rate from 35% to 21%. The rate reduction and other changes take effect on January 1, 2018. Other changes such as remeasurement of deferred tax assets and liabilities are effective as of the fourth quarter of 2017.

Also, on December 22, 2017, the Securities Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In connection with the Company’s analysis of the impact of the Tax Act, the Company recorded a net tax benefit of $155.0 million related to the remeasurement and other discrete adjustments to the Company’s deferred tax assets and liabilities during the year ended December 31, 2017. The net tax benefit is based on information and interpretations of the Tax Act that are currently available. However, such amounts may be subject to revision pending further clarification and interpretations of the Tax Act. The Company will continue to assess the impact of the Tax Act and any related interpretations, when issued, on the Company’s income tax estimates. These and other factors could materially affect the Company’s financial condition or its future operating results. The Company’s income taxes are more fully described in Note 10.

The Company also 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.

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 ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). Recognition of Revenues and Expenses: The new standard is effective for interim and annual reporting periods beginning after December 15, 2017. The Company plans to adopt ASU 2014-09 commencing the first quarter of 2018 using the modified retrospective method. This method allows the Company to recognize the cumulative effect of initially applying ASU 2014-09 as an adjustment to retained earnings as of December 31, 2017. Prior to adopting ASU 2014-09, the Company performed a review of its revenue contracts and evaluated the Company’s current accounting policies and procedures for recognizing revenue in the Company’s Consolidated Financial Statements, and compared these to the new requirements of ASU 2014-09. In addition, the Company identified the performance obligations and consideration applicable under each contract.

Based upon this evaluation, the Company determined that the impact of adopting ASU 2014-09 was immaterial because ASU 2014-09 supports the recognition of revenue over time as a service is performed, which is consistent with the Company’s current revenue recognition policy. The majority of the Company’s contracts require the Company to provide ocean and logistics transportation services to its customers. Such services are provided by the Company over a period of time, generally, when cargo is being delivered from a source to a destination point, or as the service is being performed. Therefore, performance obligations are completed during a short period of time due to the nature of the services being provided by the Company. Under the new standard, revenues from the Company’s contracts will continue to be recognized over time as the customer simultaneously receives and consumes the benefit of these services as described in ASU 2014-09. In addition, the identification of performance obligations and the related consideration under the new standard is not different from the Company’s current accounting treatment.

In February 2018, the FASB issued ASU 2018-02 “Income Statement- Reporting Comprehensive Income (Topic 220)” (“ASU 2018-02”). ASU 2018-02 allows a reclassification from accumulated other comprehensive loss (“AOCL”) to retained earnings for stranded tax effects resulting from the Tax Act. ASU 2018-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the federal corporate income tax rate in the Tax Act is recognized. ASU 2018-02 provides the Company with an option to elect an accounting policy to reclassify the effect of remeasuring deferred tax liabilities and assets related to items within AOCL using the newly enacted federal corporate income tax rate. The Company is in the process of evaluating the impact of this guidance.

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 in 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.

Net Periodic Pension Cost and Benefit Cost: In March 2017, the FASB issued ASU 2017-07. “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Benefit Cost (“ASU 2017-07”). ASU 2017-07 requires employees that sponsor defined benefit pension and other post-retirement plans to present the service cost component of net benefit cost in the same income statement line item as other employee compensation costs arising from services rendered, and that only the service cost component will be eligible for capitalization. The other components of the net periodic benefit cost must be presented separately from the line item that includes the service cost component and outside of the income from operations subtotal. ASU 2017-07 is effective for interim and annual periods beginning after December 15, 2017. The Company does not expect the adoption of ASU 2017-07 to have a significant impact on the Company’s Consolidated Financial Statements.

REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2017

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

3.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 52 weeks in the 2017 and 2015 fiscal years, and 53 weeks in the 2016 fiscal year.

The Company’s Ocean Transportation segment provides ocean transportation services to the Logistics segment. Accordingly, inter-segment revenue of $40.9 million, $20.8 million and $11.3 million for the years ended December 31, 2017, 2016 and 2015, respectively, have been eliminated from Logistics’ operating revenues due to the nature of how those services were performed. Reportable segment information for 2017, 2016, and 2015, are as follows:


	Years Ended December 31,
(In millions)	2017		2016		2015
Operating Revenue:
Ocean Transportation (1)	$	1,571.8	$	1,541.1	$	1,498.0
Logistics (2)		475.1		400.5		386.9
Total Operating Revenue	$	2,046.9	$	1,941.6	$	1,884.9
Operating Income:
Ocean Transportation (1) (3)	$	128.8	$	142.7	$	187.8
Logistics (2)		20.6		11.9		8.5
Total Operating Income		149.4		154.6		196.3
Interest expense, net		(24.2)		(24.1)		(18.5)
Income before Income Taxes		125.2		130.5		177.8
Income taxes		106.8		(49.1)		(74.8)
Net Income	$	232.0	$	81.4	$	103.0

(1)

2017, 2016 and 2015 Ocean Transportation segment information include the operations of Horizon acquired as of May 29, 2015.

(2)

2017 and 2016 Logistics segment information include the operations of Span Alaska acquired as of August 4, 2016.

(3)

Ocean Transportation segment information includes $28.2 million, $15.8 million, and $16.5 million of equity in income from the Company’s Terminal Joint Venture, SSAT, for the years ended December 31, 2017, 2016, and 2015, respectively.


	As of December 31,
(In millions)	2017		2016		2015
Identifiable Assets:
Ocean Transportation (1)	$	1,937.4	$	1,722.2	$	1,601.0
Logistics		310.1		293.3		68.8
Total Assets	$	2,247.5	$	2,015.5	$	1,669.8

Capital Expenditures:
Ocean Transportation	$	305.3	$	179.1	$	67.5
Logistics		1.7		0.3		0.3
Total Capital Expenditures	$	307.0	$	179.4	$	67.8

Depreciation and Amortization:
Ocean Transportation	$	93.3	$	92.6	$	81.4
Logistics		7.9		4.5		2.0
		101.2		97.1		83.4
Deferred dry-docking amortization - Ocean Transportation		46.2		38.9		23.1
Total Depreciation and Amortization	$	147.4	$	136.0	$	106.5

(1)The Ocean Transportation segment includes $93.2 million, $82.4 million and $66.4 million related to the Company’s Terminal Joint Venture equity investment in SSAT as of December 31, 2017, 2016, and 2015, respectively.

INVESTMENT IN TERMINAL JOINT VENTURE

12 Months Ended

Dec. 31, 2017

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 $93.2 million and $82.4 million at December 31, 2017 and 2016, respectively.

The Company’s share of income recorded in the Consolidated Statements of Income and Comprehensive Income, and dividends received by the Company during the years ended December 31, 2017, 2016 and 2015 is as follows:


	Years Ended December 31,
Terminal Joint Venture (in millions)	2017		2016		2015
Company Share of Net Income	$	28.2	$	15.8	$	16.5
Distributions Received	$	17.5	$	—	$	14.0

The Company’s Ocean Transportation segment operating costs include $181.3 million, $177.8 million and $174.1 million for the years ended December 31, 2017, 2016 and 2015, respectively, for terminal services provided by SSAT. Accounts payable and accrued liabilities in the Consolidated Balance Sheets include $22.8 million and $16.7 million for terminal services payable to the Terminal Joint Venture at December 31, 2017 and 2016, respectively.

A summary of unaudited condensed financial information for the Terminal Joint Venture at December 31, 2017 and 2016 is as follows:


	As of December 31,
Condensed Balance Sheets (Unaudited) (in millions)	2017		2016
Current assets	$	181.0	$	147.7
Non-current assets		161.8		138.5
Total Assets	$	342.8	$	286.2

Current liabilities	$	65.3	$	48.9
Non-current liabilities		23.8		14.8
Equity		253.7		222.5
Total Liabilities and Equity	$	342.8	$	286.2


	Years Ended December 31,
Condensed Statements of Operating Income and Net Income (Unaudited) (in millions)	2017		2016		2015
Operating revenue	$	933.5	$	740.9	$	621.0
Operating costs and expenses		850.2		706.5		610.2
Operating income		83.3		34.4		10.8
Net Income (1)	$	80.9	$	45.1	$	44.9

(1)Includes earnings from equity method investments held by the Terminal Joint Venture less earnings allocated to non-controlling interests.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2017 and 2016, and depreciation expense for the three years ended December 31, 2017, 2016 and 2015 is as following:


	As of December 31, 2017						As of December 31, 2016
			Accumulated						Accumulated
(In millions)	Cost		Depreciation		Net Book Value		Cost		Depreciation		Net Book Value
Vessels	$	1,433.6	$	893.2	$	540.4	$	1,416.1	$	840.7	$	575.4
Containers and equipment		543.0		349.0		194.0		536.9		326.7		210.2
Terminal facilities and other property		64.8		36.3		28.5		43.2		35.3		7.9
Vessel construction in progress		376.6		—		376.6		124.5		—		124.5
Other construction in progress		26.2		—		26.2		31.2		—		31.2
Total	$	2,444.2	$	1,278.5	$	1,165.7	$	2,151.9	$	1,202.7	$	949.2


	Years Ended December 31,
(In millions)	2017		2016		2015
Depreciation expense	$	86.7	$	86.0	$	76.4

The Company entered into agreements for the construction of four new vessels at an estimated combined contractual cost of approximately $924.5 million, excluding owners’ items and capitalized interest. 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 $10.4 million and $2.9 million as of December 31, 2017 and 2016, respectively.

Property and equipment includes assets subject to capital leases with a net book value of $4.9 million and $6.4 million, net of accumulated depreciation of $3.8 million and $2.4 million at December 31, 2017 and 2016, respectively. Amortization recorded in the Consolidated Statement of Income and Comprehensive Income was $1.5 million, $1.2 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

GOODWILL AND INTANGIBLES ASSETS

12 Months Ended

Dec. 31, 2017

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS

6.GOODWILL AND INTANGIBLE ASSETS

Changes in the Company’s goodwill for the years ended December 31, 2017 and 2016 consist of the following:


	Goodwill
	Ocean
(In millions)	Transportation		Logistics		Total
Balance at December 31, 2015	$	215.0	$	26.6	$	241.6
Additions - Horizon Acquisition (purchase price adjustment)		3.5		—		3.5
Additions - Span Alaska Acquisition		—		78.6		78.6
Balance at December 31, 2016		218.5		105.2		323.7
Additions		—		—		—
Balance at December 31, 2017	$	218.5	$	105.2	$	323.7

Intangible assets as of December 31, 2017 and 2016 consist of the following:


	As of December 31, 2017						As of December 31, 2016
	Gross		Accumulated				Gross		Accumulated
(In millions)	Amount		Amortization		Net Book Value		Amount		Amortization		Net Book Value
Ocean Transportation - Customer relationships	$	140.6	$	17.8	$	122.8	$	140.6	$	11.0	$	129.6
Logistics:
Customer relationships		90.1		15.0		75.1		90.1		10.4		79.7
Trade name		27.3		—		27.3		27.3		—		27.3
Total Logistics		117.4		15.0		102.4		117.4		10.4		107.0
Total	$	258.0	$	32.8	$	225.2	$	258.0	$	21.4	$	236.6

Ocean Transportation intangible assets of $140.6 million relates to customer relationships acquired as part of the Horizon Acquisition, and is being amortized over 21 years (see Note 18). Logistics intangible assets include $79.3 million of customer relationships that is being amortized over 20 years, and $27.3 million indefinite life trade name, acquired as part of the Span Alaska Acquisition (see Note 18). The remaining Logistics customer relationships of $10.8 million is being amortized over a period of up to 13 years.

Intangible asset related amortization expense for 2017, 2016, and 2015, is as follows:


	Years Ended December 31,
(In millions)	2017		2016		2015
Amortization expense	$	11.4	$	9.1	$	4.4

As of December 31, 2017, estimated amortization expenses related to intangible assets – customer relationships during the next five years and thereafter are as follows:


	Customer
Year (in millions)	Relationships
2018	$	11.2
2019		11.0
2020		11.0
2021		10.9
2022		10.7
Thereafter		143.1
Total	$	197.9

- 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, 2017
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 income tax provision. Qualified withdrawals from the CCF do not give rise to a current income 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 through the tax year 2017. 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, 2017 and 2016, $134.8 million and $174.7 million, respectively, 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, 2017 and 2016, the Company had $0.9 million and $31.2 million, respectively, on deposit in the CCF invested in a money market fund which are classified as other long-term assets in the Company’s Consolidated Balance Sheets.

DEBT

12 Months Ended

Dec. 31, 2017

DEBT

DEBT

8.DEBT

At December 31, 2017 and 2016, the Company’s debt consisted of the following:


	As of December 31,
(In millions)	2017		2016
Private Placement Term Loans:
5.79 %, payable through 2020	$	17.5	$	24.5
3.66 %, payable through 2023		50.1		59.3
4.16 %, payable through 2027		49.8		55.0
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		200.0		200.0
4.31 %, payable through 2032		35.1		37.5
4.35 %, payable through 2044		100.0		100.0
3.92 %, payable through 2045		73.2		75.0
Title XI Bonds:
5.34 %, payable through 2028		24.2		26.4
5.27 %, payable through 2029		26.4		28.6
Revolving credit facility		205.0		55.0
Capital leases		0.8		2.6
Total Debt		857.1		738.9
Less: Current portion		(30.8)		(31.8)
Total Long-term Debt	$	826.3	$	707.1

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

Private Placement 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 $170.0 million of unsecured notes, 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 (the “2012 Notes”). Interest is payable semi-annually. The 2012 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 $100.0 million of 30-year senior unsecured notes at an interest rate of 4.35 percent, payable semi-annually (the “2014 Notes”). 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 issued $75.0 million of 30-year senior unsecured notes at an interest rate of 3.92 percent, payable semi-annually (the “2015 Notes”). The 2015 Notes began 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.

In September 2016, the Company issued $200.0 million of 15-year senior unsecured notes (the “Series D Notes”) at an interest rate of 3.14 percent, payable semi-annually. The Series D Notes will begin to amortize in 2019, with semi-annual principal payments of $6.0 million in 2019, and $9.2 million during the years 2020 to 2023. Starting in 2024, and in each year thereafter through maturity in 2031, the semi-annual principal payments will be $7.15 million.

In December 2016, the Company issued $75 million of 11-year senior unsecured notes at an interest rates of 3.37% percent, payable semi-annual (the "Series A Notes"). The Series A Notes will begin to amortize in 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: On June 29, 2017 (the “Closing Date”), the Company entered into an amended and restated credit agreement that provides the Company with additional sources of liquidity for working capital, capital expenditures and investment opportunities, and amends and restates the Company’s previously amended and restated credit agreement (the “Credit Agreement” or the “revolving credit facility”). The Credit Agreement expires on June 29, 2022, and provides for committed aggregate borrowing of up to $650 million, with an uncommitted option to increase the aggregate borrowing by up to $250 million. The aggregate borrowing within the Credit Agreement includes a $100 million sublimit for the issuance of standby and commercial letters of credit, and a $50 million sublimit for swing line loans. The Company may prepay any amounts outstanding under the Credit Agreement without premium or penalty. All obligations of the Company under the Credit Agreement are guaranteed by Matson’s principal operating subsidiary MatNav and by certain other subsidiaries.

Depending on the Company’s consolidated net leverage ratio, borrowings under the Credit Agreement will bear interest at either LIBOR plus a margin of between 1.00 percent and 1.75 percent or the base rate plus a margin of between zero percent and 0.75 percent. Letters of credit are subject to fees based on the Company’s consolidated net leverage ratio at a rate of between 1.00 percent and 1.75 percent. The Company will also pay a commitment fee of between 0.15 percent and 0.30 percent depending on the Company’s consolidated net leverage ratio.

As of December 31, 2017, the Company had $294.7 million of available borrowings under the Credit Agreement. The Company used $10.4 million of the sub-limit for letters of credit outstanding as of December 31, 2017. Based upon the Company’s consolidated net leverage ratio, the interest rate applicable to any borrowings would have been approximately 2.98 percent at December 31, 2017.

Amendments to Existing Private Placement Term Loan Facilities and New Shelf Facilities (“Private Loan Facilities”): On June 29, 2017, the Company and the holders of the Company’s term loans entered into amendments (collectively, the “2017 Amendments”) to each of the term loan agreements and amendments thereto, previously issued prior to the Closing Date. The 2017 Amendments provide for amendments to certain covenants and other terms, including (at the Company’s option under certain circumstances) adjustments to the required consolidated leverage ratio, and, in connection with the exercise of such option, the payment of additional interest for certain pre-defined periods. Interest rates and other substantive terms remained unchanged.

Debt Covenants: The Credit Agreement and Private Loan Facilities (collectively, the “Agreements”) contain affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, and transactions with affiliates as defined within the Agreements. The Agreements also contain customary events of default.

A brief description of the principal covenants contained in the Agreements includes, but is not limited to the following (as defined within the Agreements):

Minimum Consolidated Interest Coverage Ratio as of the end of any fiscal quarter is not permitted to be less than 3.50 to 1.0;

Maximum Consolidated Leverage Ratio as of the end of any fiscal quarter is not permitted to exceed 3.25 to 1.0, subject to the Company’s election of specific exceptions in which the Maximum Consolidated Leverage Ratio is not permitted to exceed 3.75 to 1.0 as described in the Agreements;

The principal amount of Priority Debt: (i) is not permitted to exceed 20 percent of Consolidated Tangible Assets at any time (subject to a reduction to 17.5 percent upon the earlier of December 31, 2017, or upon the occurrence of certain events), and; (ii) the principal amount of Priority Debt that is not Title XI Priority Debt at any time is not permitted to exceed 10 percent of Consolidated Tangible Assets.

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, 2017.

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, 2017 was unsecured, except for $50.6 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 Agreement.

Debt Maturities: At December 31, 2017, debt maturities during the next five years and thereafter are as follows:


Year (in millions)	Total
2018	$	30.8
2019		42.1
2020		48.4
2021		54.2
2022		264.9
Thereafter		416.7
Total debt	$	857.1

LEASES

12 Months Ended

Dec. 31, 2017

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 65 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. Management expects that in the normal course of business most of these operating leases will be renewed or replaced by other similar leases as they expire.

Rent expense recorded in costs and expenses in the Consolidated Statements of Income and Comprehensive Income from operating leases is as follows:


	Years Ended December 31,
(In millions)	2017		2016		2015
Terminals, warehouse and other properties	$	26.6	$	25.6	$	22.4
Vessels and equipment leases		52.3		48.4		38.7
Other		49.8		45.6		44.4
Total	$	128.7	$	119.6	$	105.5

Future minimum payments under operating leases as of December 31, 2017 were as follows:


Year (in millions)	Total
2018	$	57.1
2019		44.7
2020		39.3
2021		25.5
2022		16.5
Thereafter		44.5
Total minimum lease payments	$	227.6

INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

10.INCOME TAXES

Income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following:


	Years Ended December 31,
(In millions)	2017		2016		2015
Current:
Federal	$	21.6	$	10.5	$	22.6
State		2.2		(1.3)		2.9
Total		23.8		9.2		25.5
Deferred:
Deferred tax expense		24.4		39.9		49.3
Remeasurement and discrete adjustments related to the Tax Act (1)		(155.0)		—		—
Total		(130.6)		39.9		49.3
Total income taxes	$	(106.8)	$	49.1	$	74.8

(1)

Deferred income taxes for the year ended December 31, 2017 includes a non-cash income tax benefit of $155.0 million related to the remeasurement of the Company’s deferred assets and liabilities and other discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2017.

Income taxes for the years ended December 31, 2017, 2016, and 2015, differs from amounts computed by applying the statutory federal rate to income before income taxes for the following reasons:


	Years Ended December 31,
	2017		2016		2015
Computed federal income tax expense	35.0	%	35.0	%	35.0	%
State income tax	2.6	%	1.8	%	2.5	%
Valuation allowance	1.4	%	0.3	%	1.1	%
Foreign taxes	0.1	%	0.4	%	0.6	%
Remeasurement and discrete adjustments related to the Tax Act (1)	(123.8)	%	—	%	—	%
Share-based payments	(1.4)	%	—	%	—	%
Other — net	0.8	%	0.1	%	2.9	%
Effective income tax rate	(85.3)	%	37.6	%	42.1	%

(1)

Effective income tax rate for the year ended December 31, 2017 includes the impact of a non-cash income tax benefit of $155.0 million related to the remeasurement of the Company’s deferred assets and liabilities and other discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2017.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016, were as follows:


	As of December 31,
(In millions)	2017		2016
Deferred tax assets:
Benefit plans	$	42.6	$	63.1
Federal net operating losses		21.6		52.1
Insurance reserves		6.8		9.9
State net operating losses		7.4		7.9
Foreign losses		6.6		4.9
Alternative minimum tax credits		4.2		31.0
Allowance for doubtful accounts		0.9		1.3
Reserves		—		2.4
Other		1.9		3.5
Total deferred tax assets		92.0		176.1
Valuation allowance		(13.0)		(11.9)
Total Deferred tax assets, net of valuation allowance		79.0		164.2

Deferred tax liabilities:
Basis differences for property and equipment		254.4		339.0
Capital Construction Fund		54.2		115.8
Intangibles		36.4		53.8
Deferred revenue		6.9		9.5
Joint ventures and other investments		9.6		9.9
Reserves		2.7		—
Total deferred tax liabilities		364.2		528.0
Deferred tax liability, net	$	285.2	$	363.8

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 at 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 and $2.6 million for 2016 and 2015, 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 2016 Consolidated Statements of Shareholders’ Equity.

Valuation Allowance: The Company recorded a valuation allowance against operating losses related to a foreign subsidiary of $1.7 million, $0.4 million and $1.8 million in 2017, 2016 and 2015, respectively, as the Company determined the tax benefits associated with such losses may not be realized in future periods. Valuation allowances recorded against all of the Company’s foreign income tax NOLs and a portion of the state income tax NOLs were $13.0 million and $11.9 million as of December 31, 2017 and 2016, respectively. The Company believes that it is more likely than not that the benefit from these amounts will not be realized.

Net Operating Losses and Tax Credit Carryforwards: The Company’s net operating losses (“NOLs”) and tax credit carryforwards at December 31, 2017 and 2016, were as follows:


(In millions)	Expiration Date	2017		2016
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	183.8	$	190.0
U.S. State income tax NOLs	Various dates beginning in 2032	$	192.3	$	192.8
Foreign income tax NOLs	No expiration date	$	23.7	$	17.6
U.S. alternative minimum tax credit (1)	No expiration date	$	4.2	$	31.0

(1)

2017 amounts exclude $50.2 million of federal alternative minimum tax credits which are refundable commencing 2018 in accordance with the Tax Act, and is included in the Company’s other long-term assets in the Consolidated Balance Sheets (see Note 2).

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:


Unrecognized Tax Benefits (in millions)	Amount
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
Changes in tax positions of prior years, net		1.1
Reductions for lapse of statute of limitations		(0.1)
Revaluation of unrecognized tax benefits due to the Tax Act (1)		(5.5)
Balance at December 31, 2017	$	15.9

(1)

Amount relates to the impact of applying the Tax Act during the year ended December 31, 2017.

Included in the balance of unrecognized tax benefits at December 31, 2017 are potential benefits of $8.2 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 taxes. 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 $0.5 million and $0.4 million as of December 31, 2017 and 2016, respectively.

The Company is no longer subject to U.S. federal income tax audits for years before 2013. 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, 2017

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 a Benefits Investment Committee that meets regularly with investment advisors to establish investment policies, direct investments and select investment options for the qualified plans. The Benefits 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, 2017 and 2016 were as follows:


Asset Categories	Target		2017		2016
Domestic equity securities	53	%	59	%	62	%
International equity securities	15	%	17	%	13	%
Debt securities	22	%	17	%	17	%
Real estate	5	%	6	%	6	%
Other and cash	5	%	1	%	2	%
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	14.6	%
Three-year return	6.7	%
Five-year return	9.3	%
Long-term average return (since plan inception in 1989)	8.5	%

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, 2017 and 2016 by asset category, were as follows:


	Fair Value Measurements at December 31, 2017
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.6	$	6.6	$	—	$	—
Equity securities:
U.S. large-cap		66.0		28.1		37.9		—
U.S. mid- and small-cap		42.6		28.3		14.3		—
International large-cap		21.6		—		21.6		—
International small-cap		9.5		—		9.5		—
Fixed income securities:
U.S. Treasuries		8.0		—		8.0		—
Municipal bonds		0.1		—		0.1		—
Investment grade U.S. corporate bonds		17.5		—		17.5		—
High-yield U.S. corporate bonds		3.6		—		3.6		—
Emerging markets fixed income		—		—		—		—
Other types of investments:
Real estate partnership interests		11.1		—		—		11.1
Private equity partnership interests		0.1		—		—		0.1
Total	$	186.7	$	63.0	$	112.5	$	11.2


	Fair Value Measurements at December 31, 2016
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	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

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, 2017 and 2016:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
(In millions)	Real Estate		Private Equity		Total
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
Actual return (loss) on plan assets:
Assets held at the reporting date		0.3		0.1		0.4
Assets sold during the period		0.5		(0.1)		0.4
Purchases, sales and settlements, net		(0.5)		—		(0.5)
Balance at December 31, 2017	$	11.1	$	0.1	$	11.2

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 2017, 2016 and 2015, the Company contributed $3.0 million, $7.5 million and $4.7 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, 2017 and 2016 are shown below:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2017		2016		2017		2016
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	225.4	$	220.2	$	25.2	$	60.5
Service cost		4.0		3.9		0.5		1.5
Interest cost		9.7		9.7		1.1		2.7
Plan amendments		—		—		—		(38.4)
Plan participants’ contributions		—		—		1.1		1.0
Plan settlements		(0.3)		—		—		—
Actuarial losses		13.9		4.2		1.9		1.9
Benefits paid, net of subsidies received		(18.9)		(11.1)		(2.1)		(4.0)
Expenses paid		(1.7)		(1.5)		—		—
Benefit obligation at end of year		232.1		225.4		27.7		25.2

Change in Plan Assets:
Fair value of plan assets at beginning of year		178.8		168.9		—		—
Actual return on plan assets		25.8		15.0		—		—
Plan participants’ contributions		—		—		1.1		1.0
Plan settlements		(0.3)		—		—		—
Employer contributions		3.0		7.5		1.0		3.0
Benefits paid, net of subsidies received		(18.9)		(11.1)		(2.1)		(4.0)
Expenses paid		(1.7)		(1.5)		—		—
Fair value of plan assets at end of year		186.7		178.8		—		—
Funded Status and Recognized Liability	$	(45.4)	$	(46.6)	$	(27.7)	$	(25.2)

Qualified pension and post-retirement benefits plans liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2017 and 2016 were as follows:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2017		2016		2017		2016
Non-current assets	$	0.5	$	1.0	$	—	$	—
Current liabilities		—		—		(1.2)		(1.1)
Non-current liabilities, net		(45.9)		(47.6)		(26.5)		(24.1)
Total	$	(45.4)	$	(46.6)	$	(27.7)	$	(25.2)

Net loss, net of taxes	$	(46.9)	$	(49.1)	$	(4.6)	$	(4.4)
Prior service credit, net of taxes		6.3		7.7		20.2		22.5
Total	$	(40.6)	$	(41.4)	$	15.6	$	18.1

The information for qualified defined benefit pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 is shown below:


(In millions)	2017		2016
Projected benefit obligation	$	229.9	$	223.2
Accumulated benefit obligation	$	229.6	$	222.9
Fair value of plan assets	$	184.7	$	175.9

The estimated net loss and prior service credit for the qualified pension plans that will be amortized from accumulated other comprehensive income (loss) is a net periodic cost of $1.4 million, net of tax, in 2018. The estimated net loss and prior service credit for the post-retirement benefit plans that will be amortized from accumulated other comprehensive income (loss) is a net periodic benefit of $1.3 million, net of tax, in 2018.

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 post-retirement benefit plans during 2017, 2016, and 2015 were as follows:


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
(In millions)	2017		2016		2015		2017		2016		2015
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$	4.0	$	3.9	$	3.3	$	0.5	$	1.5	$	1.5
Interest cost		9.7		9.7		9.5		1.1		2.7		2.5
Expected return on plan assets		(13.5)		(13.4)		(14.0)		—		—		—
Amortization of net loss		5.1		5.5		6.4		1.2		1.2		2.2
Amortization of prior service credit		(2.3)		(2.3)		(2.3)		(3.8)		(1.4)		—
Net periodic benefit cost	$	3.0	$	3.4	$	2.9	$	(1.0)	$	4.0	$	6.2

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	$	0.8	$	1.6	$	(1.0)	$	1.1	$	1.2	$	(1.9)
New prior service cost (credit)		—		—		0.1		—		(23.4)		—
Amortization of net loss		(3.1)		(3.3)		(3.9)		(0.7)		(0.8)		(1.3)
Amortization of prior service credit		1.4		1.4		1.4		2.3		0.9		—
Total recognized in other comprehensive (income) loss	$	(0.9)	$	(0.3)	$	(3.4)	$	2.7	$	(22.1)	$	(3.2)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	2.1	$	3.1	$	(0.5)	$	1.7	$	(18.1)	$	3.0

The weighted average assumptions used to determine benefit information during 2017, 2016, and 2015, were as follows:


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
	2017		2016		2015		2017		2016		2015
Discount rate (1)	3.80	%	4.40	%	4.50	%	3.90	%	4.60	%	4.60	%
Expected return on plan assets	7.75	%	8.00	%	8.00	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%
Initial health care cost trend rate:
Pre-65 group							6.30	%	6.60	%	6.80	%
Post-65 group							6.80	%	7.20	%	7.60	%
Ultimate health care cost trend rate							4.40	%	4.40	%	4.40	%
Year ultimate health care cost trend rate is reached:
Pre-65 group							2037		2037		2037
Post-65 group							2036		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.

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, 2017, 2016, and 2015 and the net periodic post-retirement benefit cost for 2017, 2016 and 2015, would have increased or decreased as follows:


	Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
(In millions)	2017		2016		2015		2017		2016		2015
Effect on total of service cost and interest cost components	$	0.3	$	0.9	$	0.9	$	(0.2)	$	(0.7)	$	(0.7)
Effect on post-retirement benefit obligation	$	4.0	$	11.5	$	9.4	$	(3.0)	$	(8.3)	$	(7.4)

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 liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2017 and 2016 are as follows (in millions):


	Non-qualified
	Pension Benefits
	December 31,
(In millions)	2017		2016
Current liabilities	$	(1.8)	$	(1.0)
Non-current liabilities, net		(2.7)		(3.3)
Total	$	(4.5)	$	(4.3)

Net loss, net of taxes	$	(0.6)	$	(0.8)
Prior service credit, net of taxes		0.3		0.4
Total	$	(0.3)	$	(0.4)

Discount rates of 3.2 percent and 3.4 percent were used in determining the 2017 and 2016 non-qualified pension plan obligations, respectively. The estimated net loss and prior service credit for the non-qualified pension plans that will be amortized from accumulated other comprehensive income (loss) is a net periodic cost of $0.1 million, net of tax, in 2018.

Estimated Benefit Payments: The estimated future benefit payments for the next ten years were as follows:



			Non-qualified
	Pension		Pension		Post-retirement
Year (in millions)	Benefits		Benefits		Benefits (1)
2018	$	12.7	$	1.8	$	1.2
2019		13.0		0.2		1.2
2020		13.4		0.5		1.2
2021		13.7		—		1.2
2022		14.0		0.3		1.2
2023-2027		73.3		2.5		7.0
Total	$	140.1	$	5.3	$	13.0

(1)

Net of plan participants’ contributions and Medicare Part 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 year ended December 31, 2017, the Company provided matching contributions of up to 3 percent of eligible employee compensation. The Company’s matching contributions expensed in 2017, 2016 and 2015 was $2.4 million, $2.1 million and $2.0 million, respectively.

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. Discretionary profit sharing contributions expensed in 2017 and 2015 were $2.3 million and $1.9 million, respectively. There were no discretionary profit sharing contributions made in 2016.

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, 2017, the Company’s estimated benefit plan withdrawal obligations were $261.5 million. Except as described in Note 12, no withdrawal obligations have been recorded by the Company in the Consolidated Balance Sheets at December 31, 2017 and 2016, 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 2017 and 2016 is for the plan’s year-end at December 31, 2017 and 2016, 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/

(In millions)

Surcharge

Expiration

Pension Funds

Plan Number

Notes

2017

2016

Implemented

Contributor

2017

2016

2015

Imposed

Date (5)

American Radio Association Pension Fund

13-6161999-001

Green

Yellow

Implemented

Yes

1.0

—

8/15/2021

Hawaii Terminals Multiemployer Pension Plan

20-0389370-001

Yellow

Implemented

Yes

5.7

5.3

4.9

6/30/2019

Hawaii Stevedoring Multiemployer Retirement Plan

99-0314293-001

Yellow

Implemented

Yes

3.8

3.5

2.8

6/30/2019

Master, Mates and Pilots Pension Plan

13-6372630-001

Green

Yes

3.0

3.1

2.2

6/15/2023,

6/15/2027

Masters, Mates and Pilots Adjustable Pension Plan

37-1719247-001

(1)

Yes

1.7

1.8

1.7

6/15/2023,

6/15/2027

MEBA Pension Trust - Defined Benefit Plan

51-6029896-001

(2)

Green

Yes

4.4

4.1

3.2

8/15/2018,

6/15/2022

OCU Trust Pension Plan

26-1574440-001

Green

0.2

0.1

6/30/2023

MFOW Supplementary Pension Plan

94-6201677-001

Green

Yes

—

6/30/2021

SIU Pacific District Pension Plan

94-6061923-001

Green

Yes

0.7

0.6

—

6/30/2021

Alaska Teamster - Employer Pension Plan

92-6003463-024

(3)

Red

Implemented

Yes

2.4

2.6

1.5

Yes

6/30/2018,

6/30/2019,

6/30/2020

All Alaska Longshore Pension Plan

91-6085352-001

(3)

Green

Yes

0.1

0.5

6/30/2020

Western Conference of Teamsters Pension Plan

91-6145047-001

(3)

Green

1.3

0.8

3/31/2018

Western Conference of Teamsters Supplemental Benefit Trust

95-3746907-001

(3)

Green

—

3/31/2018

OPEIU Local 153 Pension Plan

13-2864289-001

(3)

Red

Implemented

0.1

11/09/2020

Seafarers Pension Trust

13-6100329-001

(3) (4)

Green

—

6/30/2022

Total

24.4

22.7

17.8

(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 post-retirement 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 and prescription drug. These plans are not subject to the PBGC plan termination and withdrawal liability provisions of ERISA applicable to multi-employer defined benefit pension plans. Contributions to these multi-employer postretirement health and other benefits were $27.0 million, $22.5 million and $18.1 million in 2017, 2016 and 2015, respectively.

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 $5.0 million, $5.3 million and $3.8 million in 2017, 2016 and 2015, respectively.

MULTI-EMPLOYER WITHDRAWAL LIABILITY

12 Months Ended

Dec. 31, 2017

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. The Company assumed this liability as part of the Horizon Acquisition (see Note 18). The Company estimated the mass withdrawal liability based upon the required undiscounted quarterly payment of approximately $1.0 million to be paid to the ILA-PRSSA pension fund over a period which ends in March 2040, discounted to present value using the Company’s incremental borrowing rate. Future estimated annual payments to be paid to the ILA-PRSSA pension fund as of December 31, 2017 were as follows:


Year (in millions)	Total
2018	$	4.1
2019		4.1
2020		4.1
2021		4.1
2022		4.1
Thereafter		72.1
Total remaining future undiscounted payments due to the ILA-PRSSA pension fund		92.6
Less: amount representing interest		(30.1)
Present value of multi-employer withdrawal liability		62.5
Current portion of multi-employer withdrawal liability (see Note 2)		(4.1)
Long-term portion of multi-employer withdrawal liability	$	58.4

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2017

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

13.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) includes all changes in Shareholders’ Equity, except those resulting from common stock transactions. Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows:


					Non-				Accumulated
			Post-		Qualified				Other
	Pension		Retirement		Pension				Comprehensive
(In millions)	Benefits		Benefits		Benefits		Other		Income (Loss)
Balance at December 31, 2015	$	(41.7)	$	(4.7)	$	(0.2)	$	(0.3)	$	(46.9)
Net gain (loss) in prior service costs		—		24.1		(0.1)		0.1		24.1
Amortization of prior service cost		(1.4)		(0.9)		(0.1)		0.2		(2.2)
Amortization of net loss (gain)		1.7		(0.4)		—		(0.1)		1.2
Other adjustments		—		—		—		0.2		0.2
Balance at December 31, 2016		(41.4)		18.1		(0.4)		0.1		(23.6)
Net gain in prior service costs		—		0.7		—		0.1		0.8
Amortization of prior service cost		(1.4)		(2.5)		(0.1)		—		(4.0)
Amortization of net loss (gain)		2.2		(0.7)		0.2		—		1.7
Other adjustments		—		—		—		0.2		0.2
Balance at December 31, 2017	$	(40.6)	$	15.6	$	(0.3)	$	0.4	$	(24.9)

EARNINGS PER-SHARE

12 Months Ended

Dec. 31, 2017

EARNINGS PER-SHARE

EARNINGS PER-SHARE

14.EARNINGS PER-SHARE

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 2017, 2016, and 2015.

The denominator used to compute basic and diluted earnings per share for the three years ended December 31, 2017, were as follows:


	Year Ended December 31, 2017					Year Ended December 31, 2016					Year Ended December 31, 2015
			Weighted	Per				Weighted	Per				Weighted	Per
			Average	Common				Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share		Net		Common	Share
(In millions, except per-share amounts)	Income		Shares	Amount		Income		Shares	Amount		Income		Shares	Amount
Basic:	$	232.0	42.9	$	5.41	$	81.4	43.1	$	1.89	$	103.0	43.5	$	2.37
Effect of Dilutive Securities:			0.3		(0.04)			0.4		(0.02)			0.5		(0.03)
Diluted:	$	232.0	43.2	$	5.37	$	81.4	43.5	$	1.87	$	103.0	44.0	$	2.34

SHARE-BASED AWARDS

12 Months Ended

Dec. 31, 2017

SHARE-BASED AWARDS

SHARE-BASED AWARDS

15.SHARE-BASED AWARDS

The Company has share-based compensation plans which are described as follows:

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 year.

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, 2017, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):


				Weighted		Weighted
				Average		Average	Aggregate
	2007	1998	Total	Exercise		Contractual	Intrinsic
	Plan	Plan	Shares	Price		Life	Value
Outstanding at December 31, 2016	319	5	324	$	21.67
Granted	—	—	—
Exercised	(84)	(3)	(87)	$	21.95
Forfeited and expired	—	(2)	(2)	$	24.72
Outstanding at December 31, 2017	235	—	235	$	21.54	3.3	$	1,946
Exercisable at December 31, 2017	235	—	235	$	21.54	3.3	$	1,946

The following table summarizes non-vested restricted stock unit activity through December 31, 2017, (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, 2016	701	19	720	$	33.35
Granted	153	304	457	$	31.76
Vested	(470)	(9)	(479)	$	27.35
Canceled	(7)	(5)	(12)	$	37.24
Outstanding at December 31, 2017	377	309	686	$	36.41

Share-based compensation expense and other information related to share-based awards for each of the three years in the period ended December 31, 2017, is as follows:


	Years Ended December 31,
Share-based expense, net of estimated forfeitures (in millions)	2017		2016		2015
Share-based compensation expense	$	11.1	$	9.8	$	12.2
Intrinsic value of options exercised	$	0.7	$	2.0	$	9.2
Tax benefit realized upon stock vesting	$	6.8	$	5.9	$	3.4
Fair value of stock vested	$	17.3	$	15.8	$	8.6

As of December 31, 2017, there was no unrecognized compensation cost related to non-vested stock options. As of December 31, 2017, unrecognized compensation cost related to non-vested restricted stock units and performance-based equity awards were $11.5 million. That unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 1.7 years.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

16.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, 2017 and 2016 are as follows:


					Quoted Prices in		Significant		Significant
	Total				Active Markets		Observable		Unobservable
	Carrying Value		Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
(In millions)	December 31, 2017		Fair Value Measurements at December 31, 2017
Cash and cash equivalents	$	19.8	$	19.8	$	19.8	$	—	$	—
CCF - cash on deposit		0.9		0.9		—		0.9		—
Variable rate debt		205.0		205.0		—		205.0		—
Fixed rate debt		652.1		651.4		—		651.4		—


(In millions)	December 31, 2016		Fair Value Measurements at December 31, 2016
Cash and cash equivalents	$	13.9	$	13.9	$	13.9	$	—	$	—
CCF - 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		—

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

17.COMMITMENTS AND CONTINGENCIES

Commitments, including contractual obligations, excluding lease commitments (see Note 9), and pension and post-retirement plan commitments, and multi-employer bargaining plan withdrawal obligations (see Note 11), include the following as of December 31, 2017:


Commitments and Contractual Obligations (in millions)	Total
Standby letters of credit (1)	$	10.4
Bonds (2)	$	33.0
Construction of vessels obligations (3)	$	559.5
Purchase obligations and other capital expenditure obligations (4)	$	15.9

(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)

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

(4)

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

These amounts are not recorded on the Company’s Consolidated Balance Sheets and it is not expected that the Company or its subsidiaries will be called upon to advance funds under these commitments.

Contingencies: Contingencies and other litigation related matters are described as follows:

Environmental Matters: The Company’s Ocean Transportation segment has certain risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations.

Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.

BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2017

BUSINESS COMBINATION

BUSINESS COMBINATION

18.BUSINESS COMBINATIONS

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:


Consideration (in millions)	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 (“ASC 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. The Company finalized its purchase accounting for the Span Alaska Acquisition as of December 31, 2016.

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


Purchase Price Allocation (in millions)	Final
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 Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2017 and 2016 include operating revenue of $59.1 million and $22.8 million (after elimination of intercompany revenue), and operating income of $12.8 million and $3.5 million, respectively, from Span Alaska’s operations. 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 for the year ended December 31, 2016. One-time acquisition related costs incurred post December 31, 2016 were not material.

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 final fair values assigned to Horizon's assets acquired and liabilities assumed that were recognized as of the acquisition date:


Purchase Price Allocation (in millions)	Final
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 liability		(65.5)
Capital lease obligations		(1.6)
Horizon's debt and warrants		(467.5)
Total identifiable assets less liabilities		(188.3)
Total cash paid for common shares		(29.4)
Goodwill	$	217.7

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 combinations, 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 after income taxes	$	86.0	$	107.7
Basic Earnings Per-Share:	$	2.00	$	2.48
Diluted Earnings Per-Share:	$	1.98	$	2.45
Weighted-Average Number of Shares Outstanding:
Basic		43.1		43.5
Diluted		43.5		44.0

QUARTERLY INFORMATION (Unaudited)

12 Months Ended

Dec. 31, 2017

QUARTERLY INFORMATION (Unaudited)

QUARTERLY INFORMATION (Unaudited)

19.QUARTERLY INFORMATION (Unaudited)

Segment results by quarter for 2017 and 2016 are as follows:


	Quarters in the Year Ended December 31, 2017
(In millions, except per-share amounts)	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation	$	370.0	$	392.7	$	419.2	$	389.9
Logistics		104.4		119.8		124.7		126.2
Total Operating Revenue	$	474.4	$	512.5	$	543.9	$	516.1
Operating Income:
Ocean Transportation	$	14.5	$	39.0	$	54.6	$	20.7
Logistics		1.9		6.9		7.2		4.6
Total Operating Income		16.4		45.9		61.8		25.3
Interest Expense		(6.3)		(6.3)		(6.2)		(5.4)
Income before Income Taxes		10.1		39.6		55.6		19.9
Income Taxes		(3.1)		(15.6)		(21.5)		147.0
Net Income	$	7.0	$	24.0	$	34.1	$	166.9

Basic Earnings Per Share:	$	0.16	$	0.56	$	0.79	$	3.93
Diluted Earnings Per Share:	$	0.16	$	0.55	$	0.79	$	3.90


	Quarters in the Year Ended December 31, 2016
(In millions, except per-share amounts)	Q1		Q2		Q3 (1)		Q4 (1)
Operating Revenue:
Ocean Transportation	$	366.1	$	370.9	$	398.0	$	406.1
Logistics (2)		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	$	43.2	$	32.6
Logistics (2)		1.6		2.2		3.5		4.6
Total Operating Income		34.6		36.1		46.7		37.2
Interest Expense		(4.9)		(6.5)		(6.0)		(6.7)
Income before Income Taxes		29.7		29.6		40.7		30.5
Income Taxes		(11.6)		(11.6)		(15.4)		(10.5)
Net Income	$	18.1	$	18.0	$	25.3	$	20.0

Basic Earnings Per Share:	$	0.42	$	0.42	$	0.59	$	0.47
Diluted Earnings Per Share:	$	0.41	$	0.42	$	0.59	$	0.46

(1)

Amounts have been adjusted for the correction of immaterial error related to its post-retirement benefit plan liabilities. See Note 2 Immaterial Correction of an Error in Previously Issued Financial Statements for additional information.

(2)

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

The following infrequent transactions impacted the Company’s quarterly segment results during 2016 (there were no amounts in 2017):


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

(1)

One-time costs related to the Span Alaska Acquisition included in selling, general and administrative costs of the Logistics segment.

(2)

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

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Fiscal Year

Foreign Currency Transactions

Use of Estimates

Immaterial Correction of an Error in Previously Issued Financial Statements

Reclassifications

Cash and Cash Equivalents

Accounts Receivable, net

Allowance for Doubtful Accounts


	Balance at		Expense		Write-offs		Balance at
Year (in millions)	Beginning of Year		(Recovery) (1)		and Other		End of Year
2017	$	4.2	$	1.0	$	(0.6)	$	4.6
2016	$	6.6	$	(0.3)	$	(2.1)	$	4.2
2015	$	5.0	$	2.0	$	(0.4)	$	6.6

(1)

Expense is shown net of 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, 2017 and 2016:


	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2017		2016
Income tax receivables	$	2.6	$	23.4
Insurance related receivables		15.2		17.6
Prepaid fuel		14.4		11.5
Other		19.4		18.3
Total	$	51.6	$	70.8

Other Long-Term Assets

Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2017 and 2016:


	As of December 31,
Other Long-Term Assets (in millions)	2017		2016
Alternative minimum tax (AMT) receivable (1)	$	50.2	$	—
Deferred charges and other		20.7		17.7
Vessel and equipment spare parts		12.7		11.4
Capital construction fund - cash on deposit (See Note 7)		0.9		31.2
Total	$	84.5	$	60.3

Represents AMT tax credits refundable as a result of the Tax Act.

Impairment of Terminal Joint Venture Investment

Property and Equipment


Classification		Life
Vessels		40 years
Machinery and equipment		30 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, 2017 and 2016:


	As of December 31,
Accruals and Other Liabilities (in millions)	2017		2016
Payroll and vacation related accruals	$	24.7	$	23.3
Uninsured claims and related liabilities - short term		15.4		18.4
Employee incentives and other related accruals		17.4		8.7
Interest on debt		5.4		5.8
Multi-employer withdrawal liability - short term (see Note 12)		4.1		4.1
Deferred revenues		5.0		2.9
Pension and post-retirement liabilities - short term (see Note 11)		3.0		2.1
Other liabilities		5.4		10.0
Total	$	80.4	$	75.3

Other Long-term Liabilities

Other long-term liabilities: Other long-term liabilities consist of the following at December 31, 2017 and 2016:


	As of December 31,
Other Long-term Liabilities (in millions)	2017		2016
Pension and post-retirement liabilities (see Note 11)	$	75.1	$	75.0
Multi-employer withdrawal liability (see Note 12)		58.4		60.1
Uninsured claims and related liabilities		29.5		27.4
Other long-term liabilities		8.5		9.6
Total	$	171.5	$	172.1

Pension and Post-Retirement Plans

Uninsured Claims and Related Liabilities

Recognition of Revenues and Expenses


	Year Ended December 31,
Ocean Transportation (in millions) (1)	2017		2016		2015
Ocean transportation services	$	1,531.8	$	1,504.5	$	1,472.0
Terminal and other related services		23.5		22.9		15.9
Fuel sales		9.9		7.5		10.1
Ship management services		6.6		6.2		—
Total	$	1,571.8	$	1,541.1	$	1,498.0

(1)

Terminal and other related service revenues to third parties are recognized as the services are performed.

Ship management services revenue and related cost are recognized in proportion to the services completed.

Fuel sale revenue is recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract.


	Year Ended December 31,
Logistics (in millions) (1)	2017		2016		2015
Transportation brokerage and freight forwarding services	$	445.1	$	373.7	$	360.7
Warehouse and distribution services		17.5		19.7		19.8
Supply chain management and other services		12.5		7.1		6.4
Total	$	475.1	$	400.5	$	386.9

(1)

Supply chain management and other services revenue and related costs are recognized in proportion to the services performed.

Dividends

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

Share-Based Compensation

Income Taxes

Rounding

New Accounting Pronouncements

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of changes in the allowance for doubtful accounts receivable

Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2017 were as follows:


	Balance at		Expense		Write-offs		Balance at
Year (in millions)	Beginning of Year		(Recovery) (1)		and Other		End of Year
2017	$	4.2	$	1.0	$	(0.6)	$	4.6
2016	$	6.6	$	(0.3)	$	(2.1)	$	4.2
2015	$	5.0	$	2.0	$	(0.4)	$	6.6

(1)

Expense is shown net of 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, 2017 and 2016:


	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2017		2016
Income tax receivables	$	2.6	$	23.4
Insurance related receivables		15.2		17.6
Prepaid fuel		14.4		11.5
Other		19.4		18.3
Total	$	51.6	$	70.8

Schedule of other long-term assets

Other long-term assets consist of the following at December 31, 2017 and 2016:


	As of December 31,
Other Long-Term Assets (in millions)	2017		2016
Alternative minimum tax (AMT) receivable (1)	$	50.2	$	—
Deferred charges and other		20.7		17.7
Vessel and equipment spare parts		12.7		11.4
Capital construction fund - cash on deposit (See Note 7)		0.9		31.2
Total	$	84.5	$	60.3

Represents AMT tax credits refundable as a result of the Tax Act.

Schedule of estimated useful lives of property and equipment


Classification		Life
Vessels		40 years
Machinery and equipment		30 years
Terminal facilities		35 years

Schedule of accrued and other liabilities

Accruals and other liabilities consist of the following at December 31, 2017 and 2016:


	As of December 31,
Accruals and Other Liabilities (in millions)	2017		2016
Payroll and vacation related accruals	$	24.7	$	23.3
Uninsured claims and related liabilities - short term		15.4		18.4
Employee incentives and other related accruals		17.4		8.7
Interest on debt		5.4		5.8
Multi-employer withdrawal liability - short term (see Note 12)		4.1		4.1
Deferred revenues		5.0		2.9
Pension and post-retirement liabilities - short term (see Note 11)		3.0		2.1
Other liabilities		5.4		10.0
Total	$	80.4	$	75.3

Schedule of other long-term liabilities

Other long-term liabilities consist of the following at December 31, 2017 and 2016:


	As of December 31,
Other Long-term Liabilities (in millions)	2017		2016
Pension and post-retirement liabilities (see Note 11)	$	75.1	$	75.0
Multi-employer withdrawal liability (see Note 12)		58.4		60.1
Uninsured claims and related liabilities		29.5		27.4
Other long-term liabilities		8.5		9.6
Total	$	171.5	$	172.1

Ocean Transportation

Schedule of principal revenue generating activities by segment


	Year Ended December 31,
Ocean Transportation (in millions) (1)	2017		2016		2015
Ocean transportation services	$	1,531.8	$	1,504.5	$	1,472.0
Terminal and other related services		23.5		22.9		15.9
Fuel sales		9.9		7.5		10.1
Ship management services		6.6		6.2		—
Total	$	1,571.8	$	1,541.1	$	1,498.0

(1)

Logistics

Schedule of principal revenue generating activities by segment


	Year Ended December 31,
Logistics (in millions) (1)	2017		2016		2015
Transportation brokerage and freight forwarding services	$	445.1	$	373.7	$	360.7
Warehouse and distribution services		17.5		19.7		19.8
Supply chain management and other services		12.5		7.1		6.4
Total	$	475.1	$	400.5	$	386.9

(1)

REPORTABLE SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2017

REPORTABLE SEGMENTS

Schedule of reportable segment information

Reportable segment information for 2017, 2016, and 2015, are as follows:


	Years Ended December 31,
(In millions)	2017		2016		2015
Operating Revenue:
Ocean Transportation (1)	$	1,571.8	$	1,541.1	$	1,498.0
Logistics (2)		475.1		400.5		386.9
Total Operating Revenue	$	2,046.9	$	1,941.6	$	1,884.9
Operating Income:
Ocean Transportation (1) (3)	$	128.8	$	142.7	$	187.8
Logistics (2)		20.6		11.9		8.5
Total Operating Income		149.4		154.6		196.3
Interest expense, net		(24.2)		(24.1)		(18.5)
Income before Income Taxes		125.2		130.5		177.8
Income taxes		106.8		(49.1)		(74.8)
Net Income	$	232.0	$	81.4	$	103.0

(1)

2017, 2016 and 2015 Ocean Transportation segment information include the operations of Horizon acquired as of May 29, 2015.

(2)

2017 and 2016 Logistics segment information include the operations of Span Alaska acquired as of August 4, 2016.

(3)


	As of December 31,
(In millions)	2017		2016		2015
Identifiable Assets:
Ocean Transportation (1)	$	1,937.4	$	1,722.2	$	1,601.0
Logistics		310.1		293.3		68.8
Total Assets	$	2,247.5	$	2,015.5	$	1,669.8

Capital Expenditures:
Ocean Transportation	$	305.3	$	179.1	$	67.5
Logistics		1.7		0.3		0.3
Total Capital Expenditures	$	307.0	$	179.4	$	67.8

Depreciation and Amortization:
Ocean Transportation	$	93.3	$	92.6	$	81.4
Logistics		7.9		4.5		2.0
		101.2		97.1		83.4
Deferred dry-docking amortization - Ocean Transportation		46.2		38.9		23.1
Total Depreciation and Amortization	$	147.4	$	136.0	$	106.5

INVESTMENT IN TERMINAL JOINT VENTURE (Tables)

12 Months Ended

Dec. 31, 2017

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 (in millions)	2017		2016		2015
Company Share of Net Income	$	28.2	$	15.8	$	16.5
Distributions Received	$	17.5	$	—	$	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, 2017 and 2016 is as follows:


	As of December 31,
Condensed Balance Sheets (Unaudited) (in millions)	2017		2016
Current assets	$	181.0	$	147.7
Non-current assets		161.8		138.5
Total Assets	$	342.8	$	286.2

Current liabilities	$	65.3	$	48.9
Non-current liabilities		23.8		14.8
Equity		253.7		222.5
Total Liabilities and Equity	$	342.8	$	286.2

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 and Net Income (Unaudited) (in millions)	2017		2016		2015
Operating revenue	$	933.5	$	740.9	$	621.0
Operating costs and expenses		850.2		706.5		610.2
Operating income		83.3		34.4		10.8
Net Income (1)	$	80.9	$	45.1	$	44.9

(1)Includes earnings from equity method investments held by the Terminal Joint Venture less earnings allocated to non-controlling interests.

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT

Schedule of property and equipment


	As of December 31, 2017						As of December 31, 2016
			Accumulated						Accumulated
(In millions)	Cost		Depreciation		Net Book Value		Cost		Depreciation		Net Book Value
Vessels	$	1,433.6	$	893.2	$	540.4	$	1,416.1	$	840.7	$	575.4
Containers and equipment		543.0		349.0		194.0		536.9		326.7		210.2
Terminal facilities and other property		64.8		36.3		28.5		43.2		35.3		7.9
Vessel construction in progress		376.6		—		376.6		124.5		—		124.5
Other construction in progress		26.2		—		26.2		31.2		—		31.2
Total	$	2,444.2	$	1,278.5	$	1,165.7	$	2,151.9	$	1,202.7	$	949.2

Schedule of depreciation expense


	Years Ended December 31,
(In millions)	2017		2016		2015
Depreciation expense	$	86.7	$	86.0	$	76.4

GOODWILL AND INTANGIBLES ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

GOODWILL AND INTANGIBLES ASSETS

Schedule of goodwill


	Goodwill
	Ocean
(In millions)	Transportation		Logistics		Total
Balance at December 31, 2015	$	215.0	$	26.6	$	241.6
Additions - Horizon Acquisition (purchase price adjustment)		3.5		—		3.5
Additions - Span Alaska Acquisition		—		78.6		78.6
Balance at December 31, 2016		218.5		105.2		323.7
Additions		—		—		—
Balance at December 31, 2017	$	218.5	$	105.2	$	323.7

Schedule of intangible assets


	As of December 31, 2017						As of December 31, 2016
	Gross		Accumulated				Gross		Accumulated
(In millions)	Amount		Amortization		Net Book Value		Amount		Amortization		Net Book Value
Ocean Transportation - Customer relationships	$	140.6	$	17.8	$	122.8	$	140.6	$	11.0	$	129.6
Logistics:
Customer relationships		90.1		15.0		75.1		90.1		10.4		79.7
Trade name		27.3		—		27.3		27.3		—		27.3
Total Logistics		117.4		15.0		102.4		117.4		10.4		107.0
Total	$	258.0	$	32.8	$	225.2	$	258.0	$	21.4	$	236.6

Schedule of intangible asset related amortization expense


	Years Ended December 31,
(In millions)	2017		2016		2015
Amortization expense	$	11.4	$	9.1	$	4.4

Schedule of estimated amortization expenses related to intangible assets

As of December 31, 2017, estimated amortization expenses related to intangible assets – customer relationships during the next five years and thereafter are as follows:


	Customer
Year (in millions)	Relationships
2018	$	11.2
2019		11.0
2020		11.0
2021		10.9
2022		10.7
Thereafter		143.1
Total	$	197.9

DEBT (Tables)

12 Months Ended

Dec. 31, 2017

DEBT

Schedule of debt

At December 31, 2017 and 2016, the Company’s debt consisted of the following:


	As of December 31,
(In millions)	2017		2016
Private Placement Term Loans:
5.79 %, payable through 2020	$	17.5	$	24.5
3.66 %, payable through 2023		50.1		59.3
4.16 %, payable through 2027		49.8		55.0
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		200.0		200.0
4.31 %, payable through 2032		35.1		37.5
4.35 %, payable through 2044		100.0		100.0
3.92 %, payable through 2045		73.2		75.0
Title XI Bonds:
5.34 %, payable through 2028		24.2		26.4
5.27 %, payable through 2029		26.4		28.6
Revolving credit facility		205.0		55.0
Capital leases		0.8		2.6
Total Debt		857.1		738.9
Less: Current portion		(30.8)		(31.8)
Total Long-term Debt	$	826.3	$	707.1

Schedule of maturities of debt

At December 31, 2017, debt maturities during the next five years and thereafter are as follows:


Year (in millions)	Total
2018	$	30.8
2019		42.1
2020		48.4
2021		54.2
2022		264.9
Thereafter		416.7
Total debt	$	857.1

- 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=84159872&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=75038535&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=64930739&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=84159872&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=84159872&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=64930785&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=64930785&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=84159872&loc=d3e21521-112644

+ Details

LEASES (Tables)

12 Months Ended

Dec. 31, 2017

LEASES

Schedule of rent expense


	Years Ended December 31,
(In millions)	2017		2016		2015
Terminals, warehouse and other properties	$	26.6	$	25.6	$	22.4
Vessels and equipment leases		52.3		48.4		38.7
Other		49.8		45.6		44.4
Total	$	128.7	$	119.6	$	105.5

Schedule of future minimum payments under operating leases

Future minimum payments under operating leases as of December 31, 2017 were as follows:


Year (in millions)	Total
2018	$	57.1
2019		44.7
2020		39.3
2021		25.5
2022		16.5
Thereafter		44.5
Total minimum lease payments	$	227.6

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of income tax expense

Income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following:


	Years Ended December 31,
(In millions)	2017		2016		2015
Current:
Federal	$	21.6	$	10.5	$	22.6
State		2.2		(1.3)		2.9
Total		23.8		9.2		25.5
Deferred:
Deferred tax expense		24.4		39.9		49.3
Remeasurement and discrete adjustments related to the Tax Act (1)		(155.0)		—		—
Total		(130.6)		39.9		49.3
Total income taxes	$	(106.8)	$	49.1	$	74.8

Schedule of effective income tax rate


	Years Ended December 31,
	2017		2016		2015
Computed federal income tax expense	35.0	%	35.0	%	35.0	%
State income tax	2.6	%	1.8	%	2.5	%
Valuation allowance	1.4	%	0.3	%	1.1	%
Foreign taxes	0.1	%	0.4	%	0.6	%
Remeasurement and discrete adjustments related to the Tax Act (1)	(123.8)	%	—	%	—	%
Share-based payments	(1.4)	%	—	%	—	%
Other — net	0.8	%	0.1	%	2.9	%
Effective income tax rate	(85.3)	%	37.6	%	42.1	%

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, 2017 and 2016, were as follows:


	As of December 31,
(In millions)	2017		2016
Deferred tax assets:
Benefit plans	$	42.6	$	63.1
Federal net operating losses		21.6		52.1
Insurance reserves		6.8		9.9
State net operating losses		7.4		7.9
Foreign losses		6.6		4.9
Alternative minimum tax credits		4.2		31.0
Allowance for doubtful accounts		0.9		1.3
Reserves		—		2.4
Other		1.9		3.5
Total deferred tax assets		92.0		176.1
Valuation allowance		(13.0)		(11.9)
Total Deferred tax assets, net of valuation allowance		79.0		164.2

Deferred tax liabilities:
Basis differences for property and equipment		254.4		339.0
Capital Construction Fund		54.2		115.8
Intangibles		36.4		53.8
Deferred revenue		6.9		9.5
Joint ventures and other investments		9.6		9.9
Reserves		2.7		—
Total deferred tax liabilities		364.2		528.0
Deferred tax liability, net	$	285.2	$	363.8

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


(In millions)	Expiration Date	2017		2016
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	183.8	$	190.0
U.S. State income tax NOLs	Various dates beginning in 2032	$	192.3	$	192.8
Foreign income tax NOLs	No expiration date	$	23.7	$	17.6
U.S. alternative minimum tax credit (1)	No expiration date	$	4.2	$	31.0

(1)

Reconciliation of unrecognized tax benefits

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


Unrecognized Tax Benefits (in millions)	Amount
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
Changes in tax positions of prior years, net		1.1
Reductions for lapse of statute of limitations		(0.1)
Revaluation of unrecognized tax benefits due to the Tax Act (1)		(5.5)
Balance at December 31, 2017	$	15.9

Amount relates to the impact of applying the Tax Act during the year ended December 31, 2017.

PENSION AND OTHER POST-RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2017

PENSION AND OTHER POST-RETIREMENT PLANS

Schedule of the Company's target and actual asset allocations


Asset Categories	Target		2017		2016
Domestic equity securities	53	%	59	%	62	%
International equity securities	15	%	17	%	13	%
Debt securities	22	%	17	%	17	%
Real estate	5	%	6	%	6	%
Other and cash	5	%	1	%	2	%
Total	100	%	100	%	100	%

Schedule of the Company's actual return on plan assets


Actual Return on Plan Assets	Returns
One-year return	14.6	%
Three-year return	6.7	%
Five-year return	9.3	%
Long-term average return (since plan inception in 1989)	8.5	%

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, 2017 and 2016 by asset category, were as follows:


	Fair Value Measurements at December 31, 2017
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.6	$	6.6	$	—	$	—
Equity securities:
U.S. large-cap		66.0		28.1		37.9		—
U.S. mid- and small-cap		42.6		28.3		14.3		—
International large-cap		21.6		—		21.6		—
International small-cap		9.5		—		9.5		—
Fixed income securities:
U.S. Treasuries		8.0		—		8.0		—
Municipal bonds		0.1		—		0.1		—
Investment grade U.S. corporate bonds		17.5		—		17.5		—
High-yield U.S. corporate bonds		3.6		—		3.6		—
Emerging markets fixed income		—		—		—		—
Other types of investments:
Real estate partnership interests		11.1		—		—		11.1
Private equity partnership interests		0.1		—		—		0.1
Total	$	186.7	$	63.0	$	112.5	$	11.2


	Fair Value Measurements at December 31, 2016
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	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

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


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
(In millions)	Real Estate		Private Equity		Total
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
Actual return (loss) on plan assets:
Assets held at the reporting date		0.3		0.1		0.4
Assets sold during the period		0.5		(0.1)		0.4
Purchases, sales and settlements, net		(0.5)		—		(0.5)
Balance at December 31, 2017	$	11.1	$	0.1	$	11.2

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, 2017 and 2016 are shown below:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2017		2016		2017		2016
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	225.4	$	220.2	$	25.2	$	60.5
Service cost		4.0		3.9		0.5		1.5
Interest cost		9.7		9.7		1.1		2.7
Plan amendments		—		—		—		(38.4)
Plan participants’ contributions		—		—		1.1		1.0
Plan settlements		(0.3)		—		—		—
Actuarial losses		13.9		4.2		1.9		1.9
Benefits paid, net of subsidies received		(18.9)		(11.1)		(2.1)		(4.0)
Expenses paid		(1.7)		(1.5)		—		—
Benefit obligation at end of year		232.1		225.4		27.7		25.2

Change in Plan Assets:
Fair value of plan assets at beginning of year		178.8		168.9		—		—
Actual return on plan assets		25.8		15.0		—		—
Plan participants’ contributions		—		—		1.1		1.0
Plan settlements		(0.3)		—		—		—
Employer contributions		3.0		7.5		1.0		3.0
Benefits paid, net of subsidies received		(18.9)		(11.1)		(2.1)		(4.0)
Expenses paid		(1.7)		(1.5)		—		—
Fair value of plan assets at end of year		186.7		178.8		—		—
Funded Status and Recognized Liability	$	(45.4)	$	(46.6)	$	(27.7)	$	(25.2)

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


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2017		2016		2017		2016
Non-current assets	$	0.5	$	1.0	$	—	$	—
Current liabilities		—		—		(1.2)		(1.1)
Non-current liabilities, net		(45.9)		(47.6)		(26.5)		(24.1)
Total	$	(45.4)	$	(46.6)	$	(27.7)	$	(25.2)

Net loss, net of taxes	$	(46.9)	$	(49.1)	$	(4.6)	$	(4.4)
Prior service credit, net of taxes		6.3		7.7		20.2		22.5
Total	$	(40.6)	$	(41.4)	$	15.6	$	18.1

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

The information for qualified defined benefit pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 is shown below:


(In millions)	2017		2016
Projected benefit obligation	$	229.9	$	223.2
Accumulated benefit obligation	$	229.6	$	222.9
Fair value of plan assets	$	184.7	$	175.9

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						Post-retirement Benefits
	December 31,						December 31,
(In millions)	2017		2016		2015		2017		2016		2015
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$	4.0	$	3.9	$	3.3	$	0.5	$	1.5	$	1.5
Interest cost		9.7		9.7		9.5		1.1		2.7		2.5
Expected return on plan assets		(13.5)		(13.4)		(14.0)		—		—		—
Amortization of net loss		5.1		5.5		6.4		1.2		1.2		2.2
Amortization of prior service credit		(2.3)		(2.3)		(2.3)		(3.8)		(1.4)		—
Net periodic benefit cost	$	3.0	$	3.4	$	2.9	$	(1.0)	$	4.0	$	6.2

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	$	0.8	$	1.6	$	(1.0)	$	1.1	$	1.2	$	(1.9)
New prior service cost (credit)		—		—		0.1		—		(23.4)		—
Amortization of net loss		(3.1)		(3.3)		(3.9)		(0.7)		(0.8)		(1.3)
Amortization of prior service credit		1.4		1.4		1.4		2.3		0.9		—
Total recognized in other comprehensive (income) loss	$	(0.9)	$	(0.3)	$	(3.4)	$	2.7	$	(22.1)	$	(3.2)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	2.1	$	3.1	$	(0.5)	$	1.7	$	(18.1)	$	3.0

Schedule of weighted average assumptions used to determine benefit information


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
	2017		2016		2015		2017		2016		2015
Discount rate (1)	3.80	%	4.40	%	4.50	%	3.90	%	4.60	%	4.60	%
Expected return on plan assets	7.75	%	8.00	%	8.00	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%
Initial health care cost trend rate:
Pre-65 group							6.30	%	6.60	%	6.80	%
Post-65 group							6.80	%	7.20	%	7.60	%
Ultimate health care cost trend rate							4.40	%	4.40	%	4.40	%
Year ultimate health care cost trend rate is reached:
Pre-65 group							2037		2037		2037
Post-65 group							2036		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.

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


	Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
(In millions)	2017		2016		2015		2017		2016		2015
Effect on total of service cost and interest cost components	$	0.3	$	0.9	$	0.9	$	(0.2)	$	(0.7)	$	(0.7)
Effect on post-retirement benefit obligation	$	4.0	$	11.5	$	9.4	$	(3.0)	$	(8.3)	$	(7.4)

Schedule of amounts recognized on balance sheet and accumulated comprehensive income

Non-qualified pension plan liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2017 and 2016 are as follows (in millions):


	Non-qualified
	Pension Benefits
	December 31,
(In millions)	2017		2016
Current liabilities	$	(1.8)	$	(1.0)
Non-current liabilities, net		(2.7)		(3.3)
Total	$	(4.5)	$	(4.3)

Net loss, net of taxes	$	(0.6)	$	(0.8)
Prior service credit, net of taxes		0.3		0.4
Total	$	(0.3)	$	(0.4)

Schedule of estimated benefit payments

The estimated future benefit payments for the next ten years were as follows:



			Non-qualified
	Pension		Pension		Post-retirement
Year (in millions)	Benefits		Benefits		Benefits (1)
2018	$	12.7	$	1.8	$	1.2
2019		13.0		0.2		1.2
2020		13.4		0.5		1.2
2021		13.7		—		1.2
2022		14.0		0.3		1.2
2023-2027		73.3		2.5		7.0
Total	$	140.1	$	5.3	$	13.0

(1)

Net of plan participants’ contributions and Medicare Part 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/

(In millions)

Surcharge

Expiration

Pension Funds

Plan Number

Notes

2017

2016

Implemented

Contributor

2017

2016

2015

Imposed

Date (5)

American Radio Association Pension Fund

13-6161999-001

Green

Yellow

Implemented

Yes

1.0

—

8/15/2021

Hawaii Terminals Multiemployer Pension Plan

20-0389370-001

Yellow

Implemented

Yes

5.7

5.3

4.9

6/30/2019

Hawaii Stevedoring Multiemployer Retirement Plan

99-0314293-001

Yellow

Implemented

Yes

3.8

3.5

2.8

6/30/2019

Master, Mates and Pilots Pension Plan

13-6372630-001

Green

Yes

3.0

3.1

2.2

6/15/2023,

6/15/2027

Masters, Mates and Pilots Adjustable Pension Plan

37-1719247-001

(1)

Yes

1.7

1.8

1.7

6/15/2023,

6/15/2027

MEBA Pension Trust - Defined Benefit Plan

51-6029896-001

(2)

Green

Yes

4.4

4.1

3.2

8/15/2018,

6/15/2022

OCU Trust Pension Plan

26-1574440-001

Green

0.2

0.1

6/30/2023

MFOW Supplementary Pension Plan

94-6201677-001

Green

Yes

—

6/30/2021

SIU Pacific District Pension Plan

94-6061923-001

Green

Yes

0.7

0.6

—

6/30/2021

Alaska Teamster - Employer Pension Plan

92-6003463-024

(3)

Red

Implemented

Yes

2.4

2.6

1.5

Yes

6/30/2018,

6/30/2019,

6/30/2020

All Alaska Longshore Pension Plan

91-6085352-001

(3)

Green

Yes

0.1

0.5

6/30/2020

Western Conference of Teamsters Pension Plan

91-6145047-001

(3)

Green

1.3

0.8

3/31/2018

Western Conference of Teamsters Supplemental Benefit Trust

95-3746907-001

(3)

Green

—

3/31/2018

OPEIU Local 153 Pension Plan

13-2864289-001

(3)

Red

Implemented

0.1

11/09/2020

Seafarers Pension Trust

13-6100329-001

(3) (4)

Green

—

6/30/2022

Total

24.4

22.7

17.8

(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.

MULTI-EMPLOYER WITHDRAWAL LIABILITY (Tables)

12 Months Ended

Dec. 31, 2017

MULTI-EMPLOYER WITHDRAWAL LIABILITY

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

Future estimated annual payments to be paid to the ILA-PRSSA pension fund as of December 31, 2017 were as follows:


Year (in millions)	Total
2018	$	4.1
2019		4.1
2020		4.1
2021		4.1
2022		4.1
Thereafter		72.1
Total remaining future undiscounted payments due to the ILA-PRSSA pension fund		92.6
Less: amount representing interest		(30.1)
Present value of multi-employer withdrawal liability		62.5
Current portion of multi-employer withdrawal liability (see Note 2)		(4.1)
Long-term portion of multi-employer withdrawal liability	$	58.4

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2017

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

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


					Non-				Accumulated
			Post-		Qualified				Other
	Pension		Retirement		Pension				Comprehensive
(In millions)	Benefits		Benefits		Benefits		Other		Income (Loss)
Balance at December 31, 2015	$	(41.7)	$	(4.7)	$	(0.2)	$	(0.3)	$	(46.9)
Net gain (loss) in prior service costs		—		24.1		(0.1)		0.1		24.1
Amortization of prior service cost		(1.4)		(0.9)		(0.1)		0.2		(2.2)
Amortization of net loss (gain)		1.7		(0.4)		—		(0.1)		1.2
Other adjustments		—		—		—		0.2		0.2
Balance at December 31, 2016		(41.4)		18.1		(0.4)		0.1		(23.6)
Net gain in prior service costs		—		0.7		—		0.1		0.8
Amortization of prior service cost		(1.4)		(2.5)		(0.1)		—		(4.0)
Amortization of net loss (gain)		2.2		(0.7)		0.2		—		1.7
Other adjustments		—		—		—		0.2		0.2
Balance at December 31, 2017	$	(40.6)	$	15.6	$	(0.3)	$	0.4	$	(24.9)

EARNINGS PER-SHARE (Tables)

12 Months Ended

Dec. 31, 2017

EARNINGS PER-SHARE

Schedule of basic and diluted earnings per share


	Year Ended December 31, 2017					Year Ended December 31, 2016					Year Ended December 31, 2015
			Weighted	Per				Weighted	Per				Weighted	Per
			Average	Common				Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share		Net		Common	Share
(In millions, except per-share amounts)	Income		Shares	Amount		Income		Shares	Amount		Income		Shares	Amount
Basic:	$	232.0	42.9	$	5.41	$	81.4	43.1	$	1.89	$	103.0	43.5	$	2.37
Effect of Dilutive Securities:			0.3		(0.04)			0.4		(0.02)			0.5		(0.03)
Diluted:	$	232.0	43.2	$	5.37	$	81.4	43.5	$	1.87	$	103.0	44.0	$	2.34

SHARE-BASED AWARDS (Tables)

12 Months Ended

Dec. 31, 2017

SHARE-BASED AWARDS

Stock Option Activity

Activity in the Company’s stock option plans for the year ended December 31, 2017, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):


				Weighted		Weighted
				Average		Average	Aggregate
	2007	1998	Total	Exercise		Contractual	Intrinsic
	Plan	Plan	Shares	Price		Life	Value
Outstanding at December 31, 2016	319	5	324	$	21.67
Granted	—	—	—
Exercised	(84)	(3)	(87)	$	21.95
Forfeited and expired	—	(2)	(2)	$	24.72
Outstanding at December 31, 2017	235	—	235	$	21.54	3.3	$	1,946
Exercisable at December 31, 2017	235	—	235	$	21.54	3.3	$	1,946

Non-Vested Restricted Stock Unit Activity

The following table summarizes non-vested restricted stock unit activity through December 31, 2017, (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, 2016	701	19	720	$	33.35
Granted	153	304	457	$	31.76
Vested	(470)	(9)	(479)	$	27.35
Canceled	(7)	(5)	(12)	$	37.24
Outstanding at December 31, 2017	377	309	686	$	36.41

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

Share-based compensation expense and other information related to share-based awards for each of the three years in the period ended December 31, 2017, is as follows:


	Years Ended December 31,
Share-based expense, net of estimated forfeitures (in millions)	2017		2016		2015
Share-based compensation expense	$	11.1	$	9.8	$	12.2
Intrinsic value of options exercised	$	0.7	$	2.0	$	9.2
Tax benefit realized upon stock vesting	$	6.8	$	5.9	$	3.4
Fair value of stock vested	$	17.3	$	15.8	$	8.6

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

Schedule of fair value measurement

. The carrying value and fair value of the Company’s financial instruments as of December 31, 2017 and 2016 are as follows:


					Quoted Prices in		Significant		Significant
	Total				Active Markets		Observable		Unobservable
	Carrying Value		Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
(In millions)	December 31, 2017		Fair Value Measurements at December 31, 2017
Cash and cash equivalents	$	19.8	$	19.8	$	19.8	$	—	$	—
CCF - cash on deposit		0.9		0.9		—		0.9		—
Variable rate debt		205.0		205.0		—		205.0		—
Fixed rate debt		652.1		651.4		—		651.4		—


(In millions)	December 31, 2016		Fair Value Measurements at December 31, 2016
Cash and cash equivalents	$	13.9	$	13.9	$	13.9	$	—	$	—
CCF - 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		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

Schedule of Commitments and Contractual Obligations


Commitments and Contractual Obligations (in millions)	Total
Standby letters of credit (1)	$	10.4
Bonds (2)	$	33.0
Construction of vessels obligations (3)	$	559.5
Purchase obligations and other capital expenditure obligations (4)	$	15.9

(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)

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

(4)

- 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=82911808&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=82913245&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=82911808&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=82913245&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=82911808&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=82911808&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=82911808&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=82911808&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=82911808&loc=d3e14615-108349

+ Details

BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2017

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 after income taxes	$	86.0	$	107.7
Basic Earnings Per-Share:	$	2.00	$	2.48
Diluted Earnings Per-Share:	$	1.98	$	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

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:


Consideration (in millions)	Total
Membership interests	$	117.0
Span Alaska’s debt		81.9
Total	$	198.9

Summary of estimated fair values assigned to assets acquired and liabilities assumed


Purchase Price Allocation (in millions)	Final
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 assets acquired and liabilities assumed


Purchase Price Allocation (in millions)	Final
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 liability		(65.5)
Capital lease obligations		(1.6)
Horizon's debt and warrants		(467.5)
Total identifiable assets less liabilities		(188.3)
Total cash paid for common shares		(29.4)
Goodwill	$	217.7

QUARTERLY INFORMATION (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

QUARTERLY INFORMATION (Unaudited)

Schedule of quarterly financial information


	Quarters in the Year Ended December 31, 2017
(In millions, except per-share amounts)	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation	$	370.0	$	392.7	$	419.2	$	389.9
Logistics		104.4		119.8		124.7		126.2
Total Operating Revenue	$	474.4	$	512.5	$	543.9	$	516.1
Operating Income:
Ocean Transportation	$	14.5	$	39.0	$	54.6	$	20.7
Logistics		1.9		6.9		7.2		4.6
Total Operating Income		16.4		45.9		61.8		25.3
Interest Expense		(6.3)		(6.3)		(6.2)		(5.4)
Income before Income Taxes		10.1		39.6		55.6		19.9
Income Taxes		(3.1)		(15.6)		(21.5)		147.0
Net Income	$	7.0	$	24.0	$	34.1	$	166.9

Basic Earnings Per Share:	$	0.16	$	0.56	$	0.79	$	3.93
Diluted Earnings Per Share:	$	0.16	$	0.55	$	0.79	$	3.90


	Quarters in the Year Ended December 31, 2016
(In millions, except per-share amounts)	Q1		Q2		Q3 (1)		Q4 (1)
Operating Revenue:
Ocean Transportation	$	366.1	$	370.9	$	398.0	$	406.1
Logistics (2)		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	$	43.2	$	32.6
Logistics (2)		1.6		2.2		3.5		4.6
Total Operating Income		34.6		36.1		46.7		37.2
Interest Expense		(4.9)		(6.5)		(6.0)		(6.7)
Income before Income Taxes		29.7		29.6		40.7		30.5
Income Taxes		(11.6)		(11.6)		(15.4)		(10.5)
Net Income	$	18.1	$	18.0	$	25.3	$	20.0

Basic Earnings Per Share:	$	0.42	$	0.42	$	0.59	$	0.47
Diluted Earnings Per Share:	$	0.41	$	0.42	$	0.59	$	0.46

(1)

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

Schedule of infrequent transactions impacting the segment results

The following infrequent transactions impacted the Company’s quarterly segment results during 2016 (there were no amounts in 2017):


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

(1)

One-time costs related to the Span Alaska Acquisition included in selling, general and administrative costs of the Logistics segment.

(2)

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

DESCRIPTION OF THE BUSINESS (Details)	12 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Dec. 31, 2017 segment facility
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2
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	7
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	4

SIGNIFICANT ACCOUNTING POLICIES - IMMATERIAL CORRECTION (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in employee benefit plan liabilities	$ (75.1)				$ (75.0)				$ (75.1)	$ (75.0)
Decrease in accruals and other liabilities	(80.4)				(75.3)				(80.4)	(75.3)
Net gain (loss) in prior service cost									0.8	24.1	$ 5.1
Increase in retained earnings	381.5				196.6				381.5	196.6
Operating Income (Loss)	25.3	$ 61.8	$ 45.9	$ 16.4	37.2	$ 46.7	$ 36.1	$ 34.6	149.4	154.6	196.3
Income tax expense	(147.0)	21.5	15.6	3.1	10.5	15.4	11.6	11.6	(106.8)	49.1	74.8
Ocean Transportation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating Income (Loss)	$ 20.7	$ 54.6	$ 39.0	$ 14.5	32.6	$ 43.2	$ 33.9	$ 33.0	$ 128.8	142.7	$ 187.8
Revision of Defined Benefit Plan Liabilities
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in employee benefit plan liabilities					36.8					36.8
Decrease in accruals and other liabilities					1.6					1.6
Net gain (loss) in prior service cost										22.5
Deferred income taxes					15.0					15.0
Increase in retained earnings					$ 0.9					$ 0.9
Amortization period of unrecognized gains										10 years
Revision of Defined Benefit Plan Liabilities \| Ocean Transportation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating Income (Loss)										$ 1.4
Income tax expense										$ 0.5

SIGNIFICANT ACCOUNTING POLICIES - CASH AND ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash and Cash Equivalents
Outstanding checks in excess of funds on deposits	$ 18.7	$ 21.3
Accounts Receivable
Eligible accounts receivable assigned to CCF	134.8	174.7
Allowance for doubtful accounts
Balance at Beginning of year	4.2	6.6	$ 5.0
Expense (Recovery)	1.0	(0.3)	2.0
Write-offs and Other	(0.6)	(2.1)	(0.4)
Balance at End of Year	4.6	4.2	$ 6.6
Prepaid and Other Assets:
Income tax receivable	2.6	23.4
Insurance	15.2	17.6
Prepaid fuel	14.4	11.5
Other	19.4	18.3
Total	51.6	70.8
Other Long-term Assets
Alternative minimum tax (AMT) receivable	50.2
Deferred charges and other	20.7	17.7
Vessel and equipment spare parts	12.7	11.4
Net Balance of Amounts Accrued for Capital Construction Fund	0.9	31.2
Other long-term assets	$ 84.5	$ 60.3

SIGNIFICANT ACCOUNTING POLICIES - PROPERTY AND EQUIPMENT AND OTHER (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	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	$ 7.5	2.1	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
Dry-dock inspections interval, minimum	36 months
Vessels
Depreciation
Useful life	40 years
Machinery And Equipment
Depreciation
Useful life	30 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, 2017	Dec. 31, 2016	Dec. 31, 2015
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
Estimated fair value of inactive vessels		0.0
Accrued and other liabilities
Payroll and vacation liabilities	24.7	23.3
Uninsured claims and related liabilities - short term	15.4	18.4
Employee incentives and other benefits	17.4	8.7
Interest on debt	5.4	5.8
Multi-employer withdrawal liability - short-term (see Note 12)	4.1	4.1
Deferred revenues	5.0	2.9
Pension and post-retirement liabilities - short term (see Note 11)	3.0	2.1
Other liabilities	5.4	10.0
Total	80.4	75.3
Other long-term liabilities
Pension and post-retirement liabilities (see Note 11)	75.1	75.0
Multi-employer withdrawal liabilitiy (see Note 12)	58.4	60.1
Uninsured claims and related liabilities	29.5	27.4
Other long-term liabilities	8.5	9.6
Total	$ 171.5	$ 172.1
Customer Relationships. \| Minimum
Intangible assets
Expected useful lives	3 years
Customer Relationships. \| Maximum
Intangible assets
Expected useful lives	21 years

SIGNIFICANT ACCOUNTING POLICIES - REVENUES AND EXPENES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total	$ 1,571.8	$ 1,541.1	$ 1,498.0
Total	475.1	400.5	386.9
Ocean Transportation
Ocean transportation services	1,531.8	1,504.5	1,472.0
Terminal and other related services	23.5	22.9	15.9
Ship management services	9.9	7.5	10.1
Fuel Sales Revenue	6.6	6.2
Total	$ 1,571.8	1,541.1	1,498.0
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency	3.00%
Logistics
Transportation brokerage and freight forwarding services	$ 445.1	373.7	360.7
Warehouse and distribution services	17.5	19.7	19.8
Supply chain management and other services	12.5	7.1	6.4
Total	$ 475.1	$ 400.5	$ 386.9
Percentage of transportation brokerage and freight forwarding services revenue denominated in forgeign currency	3.00%

SIGNIFICANT ACCOUNTING POLICIES - INCOME TAXES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Federal corporate tax rate (as a percent)		35.00%	35.00%	35.00%
Remeasurement and discrete adjustments related to the Tax Act		$ (155.0)
Forecast
Federal corporate tax rate (as a percent)	21.00%

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended								12 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment results
Number of reportable segments \| segment									2
Fiscal Period Duration									364 days	371 days	364 days
Operating Revenue	$ 516.1	$ 543.9	$ 512.5	$ 474.4	$ 519.3	$ 500.4	$ 467.7	$ 454.2	$ 2,046.9	$ 1,941.6	$ 1,884.9
Operating Income	25.3	61.8	45.9	16.4	37.2	46.7	36.1	34.6	149.4	154.6	196.3
Interest expense, net	(5.4)	(6.2)	(6.3)	(6.3)	(6.7)	(6.0)	(6.5)	(4.9)	(24.2)	(24.1)	(18.5)
Income before Income Taxes	19.9	55.6	39.6	10.1	30.5	40.7	29.6	29.7	125.2	130.5	177.8
Income tax expense	147.0	(21.5)	(15.6)	(3.1)	(10.5)	(15.4)	(11.6)	(11.6)	106.8	(49.1)	(74.8)
Net Income	166.9	34.1	24.0	7.0	20.0	25.3	18.0	18.1	232.0	81.4	103.0
Assets	2,247.5				2,015.5				2,247.5	2,015.5	1,669.8
Capital Expenditures									307.0	179.4	67.8
Depreciation and Amortization									101.2	97.1	83.4
Deferred dry-docking amortization									(46.2)	(38.9)	(23.1)
Depreciations and amortizations including deferred dry-docking amortizations									147.4	136.0	106.5
Intersegment Eliminations
Segment results
Operating Revenue									$ 40.9	$ 20.8	$ 11.3
Ocean Transportation
Segment results
Fiscal Period Duration									364 days	371 days	364 days
Operating Revenue	389.9	419.2	392.7	370.0	406.1	398.0	370.9	366.1	$ 1,571.8	$ 1,541.1	$ 1,498.0
Operating Income	20.7	54.6	39.0	14.5	32.6	43.2	33.9	33.0	128.8	142.7	187.8
Assets	1,937.4				1,722.2				1,937.4	1,722.2	1,601.0
Capital Expenditures									305.3	179.1	67.5
Depreciation and Amortization									93.3	92.6	81.4
Deferred dry-docking amortization									46.2	38.9	23.1
Ocean Transportation \| SSAT
Segment results
Equity in earnings from affiliates	28.2				15.8				28.2	15.8	16.5
Equity method investments	93.2				82.4				93.2	82.4	66.4
Logistics
Segment results
Operating Revenue	126.2	124.7	119.8	104.4	113.2	102.4	96.8	88.1	475.1	400.5	386.9
Operating Income	4.6	$ 7.2	$ 6.9	$ 1.9	4.6	$ 3.5	$ 2.2	$ 1.6	20.6	11.9	8.5
Assets	$ 310.1				$ 293.3				310.1	293.3	68.8
Capital Expenditures									1.7	0.3	0.3
Depreciation and Amortization									$ 7.9	$ 4.5	$ 2.0

INVESTMENT IN TERMINAL JOINT VENTURE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments in affiliates
Investment in related party Terminal Joint Venture	$ 93.2	$ 82.4
Financial information for equity method investment
Equity in income of Terminal Joint Venture	28.2	15.8	$ 16.5
Distributions Received	17.5		14.0
Current assets	181.0	147.7
Noncurrent assets	161.8	138.5
Total assets	342.8	286.2
Current liabilities	65.3	48.9
Noncurrent liabilities	23.8	14.8
Equity	253.7	222.5
Total Liabilities and Equity	342.8	286.2
Operating revenue	933.5	740.9	621.0
Operating costs and expenses	850.2	706.5	610.2
Operating Income (loss)	83.3	34.4	10.8
Net Income	$ 80.9	45.1	44.9
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	$ 181.3	177.8	$ 174.1
Accounts payable and accrued liabilities	$ 22.8	$ 16.7

PROPERTY AND EQUIPMENT - SUMMARY (Details) $ in Millions	12 Months Ended
PROPERTY AND EQUIPMENT - SUMMARY (Details) $ in Millions	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Property and equipment
Cost	$ 2,444.2	$ 2,151.9
Accumulated depreciation of property and equipment	1,278.5	1,202.7
Property and equipment, net	1,165.7	949.2
Depreciation Expense	86.7	86.0	$ 76.4
Property and equipment subject to capital leases	4.9	6.4
Cost for construction of containerships	924.5
Capitalized interest	7.5	2.1	0.4
Net of accumulated depreciation	3.8	2.4
Amortization expenses	$ 1.5	1.2	$ 0.6
Number of vesels under agreements for contstruction \| item	4
Vessels
Property and equipment
Cost	$ 1,433.6	1,416.1
Accumulated depreciation of property and equipment	893.2	840.7
Property and equipment, net	540.4	575.4
Containers and equipment
Property and equipment
Cost	543.0	536.9
Accumulated depreciation of property and equipment	349.0	326.7
Property and equipment, net	194.0	210.2
Terminal facilities and other property
Property and equipment
Cost	64.8	43.2
Accumulated depreciation of property and equipment	36.3	35.3
Property and equipment, net	28.5	7.9
Vessel construction in progress
Property and equipment
Cost	376.6	124.5
Property and equipment, net	376.6	124.5
Capitalized interest	10.4	2.9
Other construction in progress
Property and equipment
Cost	26.2	31.2
Property and equipment, net	$ 26.2	$ 31.2

GOODWILL AND INTANGIBLE ASSETS - GOODWILL (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in the Company's goodwill
Balance at the beginning of the period	$ 323.7	$ 241.6
Additions		0.0
Balance at the end of the period	323.7	323.7
Ocean Transportation
Changes in the Company's goodwill
Balance at the beginning of the period	218.5	215.0
Balance at the end of the period	218.5	218.5
Logistics
Changes in the Company's goodwill
Balance at the beginning of the period	105.2	26.6
Balance at the end of the period	105.2	105.2
Span Alaska
Changes in the Company's goodwill
Additions		78.6
Span Alaska \| Ocean Transportation
Changes in the Company's goodwill
Additions		0.0
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	0.0	3.5
Horizon \| Ocean Transportation
Changes in the Company's goodwill
Additions	0.0	3.5
Horizon \| Logistics
Changes in the Company's goodwill
Additions	$ 0.0	$ 0.0

GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangible assets
Gross Amount	$ 258.0	$ 258.0
Accumulated Amortization	(32.8)	(21.4)
Net Amount	225.2	236.6
Aggregate intangible asset amortization	11.4	9.1	$ 4.4
Estimated amortization expenses related to intangibles
2018	11.2
2019	11.0
2020	11.0
2021	10.9
2022	10.7
Thereafter	143.1
Net Amount	197.9
Ocean Transportation
Intangible assets
Gross Amount	140.6	140.6
Accumulated Amortization	(17.8)	(11.0)
Net Amount	$ 122.8	129.6
Ocean Transportation \| Customer Relationships. \| Horizon
Intangible assets
Expected useful life	21 years
Finite-Lived intangible assets acquired	$ 140.6
Logistics
Intangible assets
Gross Amount	117.4	117.4
Accumulated Amortization	(15.0)	(10.4)
Net Amount	102.4	107.0
Logistics \| Trade Names
Intangible assets
Indefinite-Lived intangible asset	27.3	27.3
Logistics \| Span Alaska \| Trade Names
Intangible assets
Indefinite-Lived intangible asset acquired	27.3
Logistics \| Customer Relationships.
Intangible assets
Gross Amount	90.1	90.1
Accumulated Amortization	(15.0)	(10.4)
Net Amount	75.1	$ 79.7
Net Remaining Amount	$ 10.8
Expected useful life	13 years
Logistics \| Customer Relationships. \| Span Alaska
Intangible assets
Net Amount	$ 79.3
Expected useful life	20 years

CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	12 Months Ended
CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Maximum period to commit fund deposits for qualified purposes	25 years
Period over which deposits will be treated as non-qualified withdrawals	5 years
Capital Construction Fund - cash on deposit	$ 0.9	$ 31.2
Accounts receivable, net	194.6	189.5
Cash Deposits Into CCF	171.4	123.4	$ 77.9
Qualifying withdrawal from CCF	201.7	92.2	$ 105.4
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	134.8	174.7
Long-term Assets \| Cash
Capital Construction Fund - cash on deposit	$ 0.9	$ 31.2

DEBT - SUMMARY (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Aug. 31, 2004	Sep. 30, 2003
Debt
Capital leases	$ 0.8	$ 2.6
Total Debt	857.1	738.9
Less current portion	(30.8)	(31.8)
Total Long-term Debt	826.3	707.1
5.79%, payable through 2020
Debt
Total Debt	$ 17.5	24.5
Interest rate (as a percent)	5.79%
3.66%, payable through 2023
Debt
Total Debt	$ 50.1	59.3
Interest rate (as a percent)	3.66%
4.16%, payable through 2027
Debt
Total Debt	$ 49.8	55.0
Interest rate (as a percent)	4.16%
3.37 %, payable through 2027
Debt
Total Debt	$ 75.0	75.0
Interest rate (as a percent)	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 200.0	200.0
Interest rate (as a percent)	3.14%
4.31%, payable through 2032
Debt
Total Debt	$ 35.1	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	$ 73.2	75.0
Interest rate (as a percent)	3.92%
5.34%, payable through 2028
Debt
Total Debt	$ 24.2	26.4
Interest rate (as a percent)	5.34%			5.34%
5.27%, payable through 2029
Debt
Total Debt	$ 26.4	28.6
Interest rate (as a percent)	5.27%		5.27%
Revolving Credit Facility
Debt
Total Debt	$ 205.0	$ 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. 31, 2015 USD ($)	Jan. 31, 2014 USD ($)	Aug. 31, 2004 USD ($)	Sep. 30, 2003 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2017 USD ($)
Debt
Letters of credit								$ 10,400
Revolving Credit Facility
Debt
Interest rate during period (as a percent)								2.98%
Maximum borrowing capacity under revolving credit facility								$ 650,000
Uncommitted option to increase credit facility								250,000
Unused portion of credit facility								$ 294,700
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%
Revolving Credit Facility \| Minimum
Debt
Ratio of consolidated EBITDA to interest expense								3.50
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, ratio of debt to consolidated EBITDA								3.25
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
Long-term Line of Credit								$ 10,400
Maximum borrowing capacity under revolving credit facility								$ 100,000
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
5.79%, payable through 2020
Debt
Interest rate (as a percent)								5.79%
Annual principal payments								$ 3,500
5.27%, payable through 2029
Debt
Debt issued					$ 55,000
Interest rate (as a percent)					5.27%			5.27%
Semi-annual payments					$ 1,100
Senior Unsecured Long Term Debt
Debt
Debt issued				$ 100,000
Debt instrument term				30 years
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%
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
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

DEBT - REVOLVING CREDIT FACILITY (Details) $ in Thousands		12 Months Ended
DEBT - REVOLVING CREDIT FACILITY (Details) $ in Thousands	Sep. 14, 2016 USD ($)	Dec. 31, 2017 USD ($)
Title XI Bonds
Debt
Debt issued		$ 50,600
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility		650,000
Uncommitted option to increase credit facility		$ 250,000
Debt covenant, required principal amount of priority debt as a percentage of consolidated tangible assets		20.00%
Debt covenant, maximum ratio of aggregate principal amount of priority debt to consolidated tangible assets upon certain events		17.50%
Debt covenant, required principal amount of priority debt (excluding Title XI) as a percentage of consolidated tangible assets		10.00%
Funds available under the revolving credit facility		$ 294,700
Interest rate during period (as a percent)		2.98%
Revolving Credit Facility \| Minimum
Debt
Credit facility commitment fee percentage		0.15%
Ratio of consolidated EBITDA to interest expense		3.50
Revolving Credit Facility \| Maximum
Debt
Credit facility commitment fee percentage		0.30%
Debt covenant, ratio of debt to consolidated EBITDA		3.25
Debt covenant, ratio of debt to consolidated EBITDA, including specific exceptions		3.75
Standby and commercial letters of credit
Debt
Maximum borrowing capacity under revolving credit facility		$ 100,000
Standby letters of credit		$ 10,400
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
The Senior Unsecured Notes (The "Series D Notes")
Debt
Debt issued	$ 200,000
Interest rate (as a percent)	3.14%
Debt instrument term	15 years
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
London Interbank Offered Rate (LIBOR) \| Revolving Credit Facility \| Minimum
Debt
Variable rate margin		1.00%
London Interbank Offered Rate (LIBOR) \| Revolving Credit Facility \| Maximum
Debt
Variable rate margin		1.75%
Base rate \| Revolving Credit Facility \| Minimum
Debt
Variable rate margin		0.00%
Base rate \| Revolving Credit Facility \| Maximum
Debt
Variable rate margin		0.75%

DEBT - MATURITIES (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt maturities
2017	$ 30.8
2018	42.1
2019	48.4
2020	54.2
2021	264.9
Thereafter	416.7
Total Debt	$ 857.1	$ 738.9

LEASES (Details) - USD ($) $ in Millions	12 Months Ended
LEASES (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Future minimum payments under operating leases
2018	$ 57.1
2019	44.7
2020	39.3
2021	25.5
2022	16.5
Thereafter	44.5
Total minimum lease payments	227.6
Costs And Expenses
Leases
Rent expense	$ 128.7	$ 119.6	$ 105.5
Minimum
Leases
Term of existing operating leases	1 year
Maximum
Leases
Term of existing operating leases	65 years
Terminal facilities and other property \| Costs And Expenses
Leases
Rent expense	$ 26.6	25.6	22.4
Vessels and equipment leases \| Costs And Expenses
Leases
Rent expense	52.3	48.4	38.7
Other \| Costs And Expenses
Leases
Rent expense	$ 49.8	$ 45.6	$ 44.4

INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal									$ 21.6	$ 10.5	$ 22.6
State									2.2	(1.3)	2.9
Total									23.8	9.2	25.5
Deferred:
Deferred tax expense									24.4	39.9	49.3
Remeasurement and discrete adjustments related to the Tax Act									(155.0)
Total									(130.6)	39.9	49.3
Total income taxes	$ (147.0)	$ 21.5	$ 15.6	$ 3.1	$ 10.5	$ 15.4	$ 11.6	$ 11.6	$ (106.8)	$ 49.1	$ 74.8
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)									2.60%	1.80%	2.50%
Valuation allowance (as a percent)									1.40%	0.30%	1.10%
Foreign taxes (as a percent)									0.10%	0.40%	0.60%
Remeasurement and discrete adjustments related to Tax Act (as a percent)									(123.80%)
Share-based payments (as a percent)									(1.40%)
Other-net (as a percent)									0.80%	0.10%	2.90%
Effective income tax rate , Percent, Total									(85.30%)	37.60%	42.10%
Valuation allowance related to foreign subsidiary losses									$ 1.7	$ 0.4	$ 1.8
Deferred tax assets:
Benefit plans	42.6				63.1				42.6	63.1
Federal net operating losses	21.6				52.1				21.6	52.1
Insurance reserves	6.8				9.9				6.8	9.9
State net operating losses	7.4				7.9				7.4	7.9
Foreign losses	6.6				4.9				6.6	4.9
Alternative minimum tax credits	4.2				31.0				4.2	31.0
Allowance for doubtful accounts	0.9				1.3				0.9	1.3
Reserves					2.4					2.4
Other	1.9				3.5				1.9	3.5
Total deferred tax assets	92.0				176.1				92.0	176.1
Valuation allowance	(13.0)				(11.9)				(13.0)	(11.9)
Total Deferred tax assets, net of valuation allowance	79.0				164.2				79.0	164.2
Deferred tax liabilities:
Basis differences for property and equipment	254.4				339.0				254.4	339.0
Capital Construction Fund	54.2				115.8				54.2	115.8
Intangibles	36.4				53.8				36.4	53.8
Deferred revenue	6.9				9.5				6.9	9.5
Joint ventures and other investments	9.6				9.9				9.6	9.9
Reserves - Liabilities	2.7								2.7
Total deferred tax liabilities	364.2				528.0				364.2	528.0
Deferred tax liability, net , Total	$ 285.2				$ 363.8				$ 285.2	$ 363.8

INCOME TAXES - OPERATING LOSS AND TAX CREDIT CARRYFORWARDS (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Operating Loss and Tax Credit Carryforwards
Alternative minimum tax credit carryforwards	$ 4.2	$ 31.0
Valuation allowances	13.0	11.9
U.S. Federal Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	183.8	190.0
State Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	192.3	192.8
Foreign Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	$ 23.7	$ 17.6

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Balance at beginning of the period	$ 20.4	$ 22.1	$ 6.7
Changes in tax positions of prior years, net	1.1		1.5
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	(0.1)	(0.6)	(0.5)
Revaluation of unrecognized tax benefits due to the Tax Act	(5.5)
Balance at the end	15.9	20.4	22.1
Unrecognized tax benefits that, if recognized, would impact the effective rate	8.2
Interest accrued related to unrecognized tax benefits	0.5	0.4
Alternative minimum tax (AMT) receivable	$ 50.2
Stock options
Net tax benefits from share-based transactions		$ 2.2	$ 2.6

PENSION AND POST-RETIREMENT PLANS - ASSET ALLOCATION (Details) - plan	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee benefit plans
Number of single-employer defined benefit pension funded plans	2
Pension Benefits
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)	14.60%
Three year returns (losses) on plan assets (as a percent)	6.70%
Five year returns (losses) on plan assets (as a percent)	9.30%
Long-term average return on plan assets since inception (as a percent)	8.50%
Pension Benefits \| Domestic equity securities
Employee benefit plans
Target allocation (as a percent)	53.00%
Asset allocations (as a percent)	59.00%	62.00%
Pension Benefits \| International equity securities
Employee benefit plans
Target allocation (as a percent)	15.00%
Asset allocations (as a percent)	17.00%	13.00%
Pension Benefits \| Debt securities
Employee benefit plans
Target allocation (as a percent)	22.00%
Asset allocations (as a percent)	17.00%	17.00%
Pension Benefits \| Real estate
Employee benefit plans
Target allocation (as a percent)	5.00%
Asset allocations (as a percent)	6.00%	6.00%
Pension Benefits \| Other and cash
Employee benefit plans
Target allocation (as a percent)	5.00%
Asset allocations (as a percent)	1.00%	2.00%

PENSION AND POST-RETIREMENT PLANS - FAIR VALUE (Details) - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension and Post-retirement Plans
Total	$ 186.7	$ 178.8	$ 168.9
Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Pension and Post-retirement Plans
Total	0.1	0.1	$ 0.2
Fair Value Measurement
Pension and Post-retirement Plans
Total	186.7	178.8
Fair Value Measurement \| Cash
Pension and Post-retirement Plans
Total	6.6	7.8
Fair Value Measurement \| U.S. large-cap
Pension and Post-retirement Plans
Total	66.0	67.1
Fair Value Measurement \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	42.6	38.9
Fair Value Measurement \| International large-cap
Pension and Post-retirement Plans
Total	21.6	16.9
Fair Value Measurement \| International small-cap
Pension and Post-retirement Plans
Total	9.5	6.9
Fair Value Measurement \| U.S. Treasuries
Pension and Post-retirement Plans
Total	8.0	8.9
Fair Value Measurement \| Municipal bonds
Pension and Post-retirement Plans
Total	0.1	9.3
Fair Value Measurement \| Investment grade U.S. corporate bonds
Pension and Post-retirement Plans
Total	17.5	5.3
Fair Value Measurement \| High-yield U.S. corporate bonds
Pension and Post-retirement Plans
Total	3.6	6.3
Fair Value Measurement \| Emerging markets fixed income
Pension and Post-retirement Plans
Total		0.5
Fair Value Measurement \| Real estate partnerships interests
Pension and Post-retirement Plans
Total	11.1	10.8
Fair Value Measurement \| Private equity partnership interests
Pension and Post-retirement Plans
Total	0.1	0.1
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Pension and Post-retirement Plans
Total	63.0	71.6
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| Cash
Pension and Post-retirement Plans
Total	6.6	7.8
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| U.S. large-cap
Pension and Post-retirement Plans
Total	28.1	31.6
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	28.3	31.7
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| Emerging markets fixed income
Pension and Post-retirement Plans
Total		0.5
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Pension and Post-retirement Plans
Total	112.5	96.3
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. large-cap
Pension and Post-retirement Plans
Total	37.9	35.5
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	14.3	7.2
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| International large-cap
Pension and Post-retirement Plans
Total	21.6	16.9
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| International small-cap
Pension and Post-retirement Plans
Total	9.5	6.9
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. Treasuries
Pension and Post-retirement Plans
Total	8.0	8.9
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| Municipal bonds
Pension and Post-retirement Plans
Total	0.1	9.3
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| Investment grade U.S. corporate bonds
Pension and Post-retirement Plans
Total	17.5	5.3
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| High-yield U.S. corporate bonds
Pension and Post-retirement Plans
Total	3.6	6.3
Fair Value Measurement \| Significant Unobservable Inputs (Level 3)
Pension and Post-retirement Plans
Total	11.2	10.9
Fair Value Measurement \| Significant Unobservable Inputs (Level 3) \| Real estate partnerships interests
Pension and Post-retirement Plans
Total	11.1	10.8
Fair Value Measurement \| Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Pension and Post-retirement Plans
Total	$ 0.1	$ 0.1

PENSION AND POST-RETIREMENT PLANS - RETURN ON PLAN ASSETS (Details) - Pension Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Changes in plan assets:
Balance at the beginning of the period	$ 178.8	$ 168.9
Actual return (loss) on plan assets:
Balance at the end of the period	186.7	178.8
Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Changes in plan assets:
Balance at the beginning of the period	0.1	0.2
Actual return (loss) on plan assets:
Assets held at the reporting date	0.1	(0.1)
Assets sold during the period	(0.1)	0.1
Purchases, sales and settlements, net		(0.1)
Balance at the end of the period	0.1	0.1
Fair Value Measurements Recurring \| Significant Unobservable Inputs (Level 3)
Changes in plan assets:
Balance at the beginning of the period	10.9	10.5
Actual return (loss) on plan assets:
Assets held at the reporting date	0.4	0.5
Assets sold during the period	0.4	0.6
Purchases, sales and settlements, net	(0.5)	(0.7)
Balance at the end of the period	11.2	10.9
Fair Value Measurements Recurring \| Significant Unobservable Inputs (Level 3) \| Real estate partnerships interests
Changes in plan assets:
Balance at the beginning of the period	10.8	10.3
Actual return (loss) on plan assets:
Assets held at the reporting date	0.3	0.6
Assets sold during the period	0.5	0.5
Purchases, sales and settlements, net	(0.5)	(0.6)
Balance at the end of the period	$ 11.1	$ 10.8

PENSION AND POST-RETIREMENT PLANS - STATUS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	$ 225.4	$ 220.2
Service cost	4.0	3.9	$ 3.3
Interest cost	9.7	9.7	9.5
Settlements	(0.3)
Actuarial loss (gain)	13.9	4.2
Benefits paid, net of subsidies received	(18.9)	(11.1)
Expenses paid	(1.7)	(1.5)
Benefit obligation at end of year	232.1	225.4	220.2
Changes in plan assets:
Balance at the beginning of the period	178.8	168.9
Actual return on plan assets	25.8	15.0
Plan settlements	(0.3)
Employer contribution	3.0	7.5	4.7
Benefits paid, net of subsidies received	(18.9)	(11.1)
Expenses paid	(1.7)	(1.5)
Balance at the end of the period	186.7	178.8	168.9
Funded Status and Recognized Liability	(45.4)	(46.6)
Other Post-retirement Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	25.2	60.5
Service cost	0.5	1.5	1.5
Interest cost	1.1	2.7	2.5
Plan Amendments		(38.4)
Plan participants' contributions	1.1	1.0
Actuarial loss (gain)	1.9	1.9
Benefits paid, net of subsidies received	(2.1)	(4.0)
Benefit obligation at end of year	27.7	25.2	$ 60.5
Changes in plan assets:
Plan participants' contributions	1.1	1.0
Employer contribution	1.0	3.0
Benefits paid, net of subsidies received	(2.1)	(4.0)
Funded Status and Recognized Liability	(27.7)	(25.2)
Qualified Plan \| Pension Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	223.2
Benefit obligation at end of year	229.9	223.2
Changes in plan assets:
Balance at the beginning of the period	175.9
Balance at the end of the period	$ 184.7	$ 175.9

PENSION AND POST-RETIREMENT PLANS - AMOUNTS INCLUDED IN FINANCIAL STATEMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee benefit plans
Current liabilities	$ (3.0)	$ (2.1)
Non-current liabilities, net	(75.1)	(75.0)
Pension Benefits
Employee benefit plans
Benefit obligation	232.1	225.4	$ 220.2
Fair value of plan assets at end of year	186.7	178.8	168.9
Pension Benefits \| Qualified Plan
Employee benefit plans
Non-current assets	0.5	1.0
Non-current liabilities, net	(45.9)	(47.6)
Total	(45.4)	(46.6)
Net loss, net of taxes	(46.9)	(49.1)
Prior service credit (net of taxes)	6.3	7.7
Total	(40.6)	(41.4)
Benefit obligation	229.9	223.2
Accumulated benefit obligation	229.6	222.9
Fair value of plan assets at end of year	184.7	175.9
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	1.4
Pension Benefits \| Nonqualified Plan
Employee benefit plans
Current liabilities	(1.8)	(1.0)
Non-current liabilities, net	(2.7)	(3.3)
Total	(4.5)	(4.3)
Net loss, net of taxes	(0.6)	(0.8)
Prior service credit (net of taxes)	0.3	0.4
Total	(0.3)	(0.4)
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	0.1
Other Post-retirement Benefits
Employee benefit plans
Benefit obligation	27.7	25.2	$ 60.5
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	$ 1.3
Amortization period of unrecognized gains and losses	5 years
Other Post-retirement Benefits \| Qualified Plan
Employee benefit plans
Current liabilities	$ (1.2)	(1.1)
Non-current liabilities, net	(26.5)	(24.1)
Total	(27.7)	(25.2)
Net loss, net of taxes	(4.6)	(4.4)
Prior service credit (net of taxes)	20.2	22.5
Total	$ 15.6	$ 18.1

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of Net Periodic Benefit Costs:
Current liabilities	$ 3.0	$ 2.1
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
New prior service cost	(0.8)	(24.1)	$ (5.1)
Amortization of net loss	(1.7)	(1.2)	(1.8)
Amortization of prior service cost	$ 4.0	$ 2.2	1.3
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Discount rate used to determine obligation (as a percent)	3.20%	3.40%
Pension Benefits
Components of Net Periodic Benefit Costs:
Service cost	$ 4.0	$ 3.9	3.3
Interest cost	9.7	9.7	9.5
Expected return on plan assets	(13.5)	(13.4)	(14.0)
Amortization of net loss	5.1	5.5	6.4
Amortization of prior service cost	(2.3)	(2.3)	(2.3)
Net periodic benefit cost	3.0	3.4	2.9
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
Net loss (gain)	0.8	1.6	(1.0)
New prior service cost			0.1
Amortization of net loss	(3.1)	(3.3)	(3.9)
Amortization of prior service cost	1.4	1.4	1.4
Total recognized in other comprehensive income	(0.9)	(0.3)	(3.4)
Total recognized in net periodic benefit cost and other comprehensive income	$ 2.1	$ 3.1	$ (0.5)
Weighted Average Assumptions:
Discount rate (as a percent)	3.80%	4.40%	4.50%
Expected return plan assets (as a percent)	7.75%	8.00%	8.00%
Rate of compensation increase (as a percent)	3.00%	3.00%	3.00%
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	$ 232.1	$ 225.4	$ 220.2
Other Post-retirement Benefits
Components of Net Periodic Benefit Costs:
Service cost	0.5	1.5	1.5
Interest cost	1.1	2.7	2.5
Amortization of net loss	1.2	1.2	2.2
Amortization of prior service cost	(3.8)	(1.4)
Net periodic benefit cost	(1.0)	4.0	6.2
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
Net loss (gain)	1.1	1.2	(1.9)
New prior service cost		(23.4)
Amortization of net loss	(0.7)	(0.8)	(1.3)
Amortization of prior service cost	2.3	0.9
Total recognized in other comprehensive income	2.7	(22.1)	(3.2)
Total recognized in net periodic benefit cost and other comprehensive income	$ 1.7	$ (18.1)	$ 3.0
Weighted Average Assumptions:
Discount rate (as a percent)	3.90%	4.60%	4.60%
Rate of compensation increase (as a percent)	3.00%	3.00%	3.00%
Initial health care cost trend rate, Pre-65 group (as a percent)	6.30%	6.60%	6.80%
Initial health care cost trend rate, Post-65 group (as a percent)	6.80%	7.20%	7.60%
Ultimate health care cost trend rate (as a percent)	4.40%	4.40%	4.40%
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	$ 0.3	$ 0.9	$ 0.9
Effect of one percentage point increase on post-retirement benefit obligation	4.0	11.5	9.4
Effect of one percentage point decrease on total of service and interest cost components	(0.2)	(0.7)	(0.7)
Effect of one percentage point decrease on post-retirement benefit obligation	(3.0)	(8.3)	(7.4)
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	27.7	25.2	$ 60.5
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	1.3
Qualified Plan \| Pension Benefits
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	229.9	223.2
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(46.9)	(49.1)
Amount recognized as prior service credit, net of tax	6.3	7.7
Total	(40.6)	(41.4)
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	1.4
Qualified Plan \| Other Post-retirement Benefits
Components of Net Periodic Benefit Costs:
Current liabilities	1.2	1.1
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(4.6)	(4.4)
Amount recognized as prior service credit, net of tax	20.2	22.5
Total	15.6	18.1
Nonqualified Plan \| Pension Benefits
Components of Net Periodic Benefit Costs:
Current liabilities	1.8	1.0
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(0.6)	(0.8)
Amount recognized as prior service credit, net of tax	0.3	0.4
Total	(0.3)	$ (0.4)
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	$ 0.1

PENSION AND POST-RETIREMENT PLANS - ESTIMATED BENEFIT PAYMENTS (Details) $ in Millions	Dec. 31, 2017 USD ($)
Estimated future benefit payments
2018	$ 4.1
2019	4.1
2020	4.1
2021	4.1
2022	4.1
2023-2027	72.1
Total future payments	92.6
Pension Benefits
Estimated future benefit payments
2018	12.7
2019	13.0
2020	13.4
2021	13.7
2022	14.0
2023-2027	73.3
Total future payments	140.1
Other Post-retirement Benefits
Estimated future benefit payments
2018	1.2
2019	1.2
2020	1.2
2021	1.2
2022	1.2
2023-2027	7.0
Total future payments	13.0
Nonqualified Plan \| Pension Benefits
Estimated future benefit payments
2018	1.8
2019	0.2
2020	0.5
2022	0.3
2023-2027	2.5
Total future payments	$ 5.3

PENSION AND POST-RETIREMENT PLANS - DEFINED CONTRIBUTION PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
401(K) plan
Defined Contribution Plans
Employer matching contribution (as a percent)	3.00%
Employer matching contribution expenses	$ 2.4	$ 2.1	$ 2.0
Profit sharing plan
Defined Contribution Plans
Profit sharing expense recorded	$ 2.3	$ 0.0	$ 1.9

PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2012
Multiemployer Plans
Multiemployer Plans, Accumulated Benefit Obligation	$ 261.5
Benefit plan withdrawal obligation	62.5
Minimum
Multiemployer Plans
Employer matching contribution to MEBA Pension Trust (as a percent)				11.70%
Multiemployer Benefit Pension Plans
Multiemployer Plans
Contributions of Matson	$ 24.4	$ 22.7	$ 17.8
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 \| American Radio Association Pension Fund \| Green Zone
Multiemployer Plans
Contributions of Matson	$ 1.0
Multiemployer Benefit Pension Plans \| Hawaii Terminals Multiemployer Pension Plan \| Yellow Zone
Multiemployer Plans
Contributions of Matson	5.7	5.3	4.9
Multiemployer Benefit Pension Plans \| Hawaii Stevedoring Multiemployer Retirement Plan \| Yellow Zone
Multiemployer Plans
Contributions of Matson	3.8	3.5	2.8
Multiemployer Benefit Pension Plans \| Master Mates And Pilots Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	3.0	3.1	2.2
Multiemployer Benefit Pension Plans \| Masters, Mates and Pilots Adjustable Pension Plan
Multiemployer Plans
Contributions of Matson	1.7	1.8	1.7
Multiemployer Benefit Pension Plans \| O C U Trust Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.2	0.2	0.1
Multiemployer Benefit Pension Plans \| SIU Pacific District Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.7	0.6
Multiemployer Benefit Pension Plans \| Alaska Teamster - Employer Pension Plan \| Red Zone
Multiemployer Plans
Contributions of Matson	2.4	2.6	1.5
Multiemployer Benefit Pension Plans \| All Alaska Longshore Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.1	0.1	0.5
Multiemployer Benefit Pension Plans \| Western Conference of Teamsters Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	1.3	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	0.1
Multiemployer Benefit Postretirement Plans
Multiemployer Plans
Contributions of Matson	27.0	22.5	18.1
Multi-employer defined contribution pension plans \| M E B A Pension Trust - Defined Benefit Plan \| Red Zone
Multiemployer Plans
Contributions of Matson		$ 4.1
Multi-employer defined contribution pension plans \| M E B A Pension Trust - Defined Benefit Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	$ 4.4		$ 3.2

PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED CONTRIBUTION PLANS (Details) - Multi-employer defined contribution pension plans $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) plan	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Defined Contribution Plans
Number of Multiemployer Plans \| plan	6
Employer contributions \| $	$ 5.0	$ 5.3	$ 3.8

MULTI-EMPLOYER WITHDRAWAL LIABILITY (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
MULTI-EMPLOYER WITHDRAWAL LIABILITY
Quarterly payments to ILA-PRSSA over an estimated period	$ 1.0
Estimated future benefit payments
2017	4.1
2018	4.1
2020	4.1
2021	4.1
2022	4.1
Thereafter	72.1
Total future payments	92.6
Less: amount representing interest	(30.1)
Present value of remaining withdrawal liability	62.5
Current portion of withdrawal liability	(4.1)	$ (4.1)
Long-term portion of withdrawal liability	$ 58.4	$ 60.1

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	$ 494.9	$ 450.6	$ 363.8
Net gain (loss) in prior service cost	0.8	24.1	5.1
Amortization of prior service cost	(4.0)	(2.2)	(1.3)
Amortization of net loss (gain)	1.7	1.2	1.8
Other adjustments	0.2	0.2	0.8
Balance at the end of the period	678.2	494.9	450.6
Comprehensive Income (Loss):
Tax benefit (expense) on other comprehensive income (loss)	(4.4)	(14.2)	(5.0)
Pensions
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(41.4)	(41.7)
Amortization of prior service cost	(1.4)	(1.4)
Amortization of net loss (gain)	2.2	1.7
Balance at the end of the period	(40.6)	(41.4)	(41.7)
Post Retirement
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	18.1	(4.7)
Net gain (loss) in prior service cost	0.7	24.1
Amortization of prior service cost	(2.5)	(0.9)
Amortization of net loss (gain)	(0.7)	(0.4)
Balance at the end of the period	15.6	18.1	(4.7)
Non-Qualified Plans
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.4)	(0.2)
Net gain (loss) in prior service cost		(0.1)
Amortization of prior service cost	(0.1)	(0.1)
Amortization of net loss (gain)	0.2
Balance at the end of the period	(0.3)	(0.4)	(0.2)
Other
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	0.1	(0.3)
Net gain (loss) in prior service cost	0.1	0.1
Amortization of prior service cost		0.2
Amortization of net loss (gain)		(0.1)
Other adjustments	0.2	0.2
Balance at the end of the period	0.4	0.1	(0.3)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(23.6)	(46.9)	(53.3)
Net gain (loss) in prior service cost	0.8	24.1
Amortization of prior service cost	(4.0)	(2.2)
Amortization of net loss (gain)	1.7	1.2
Other adjustments	0.2	0.2
Balance at the end of the period	$ (24.9)	$ (23.6)	$ (46.9)

EARNINGS PER-SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net Income
Net Income, Basic									$ 232.0	$ 81.4	$ 103.0
Net Income, Diluted									$ 232.0	$ 81.4	$ 103.0
Weighted Average Common Shares
Basic (in shares)									42.9	43.1	43.5
Effect of Dilutive Securities (in shares)									0.3	0.4	0.5
Diluted (in shares)									43.2	43.5	44.0
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 3.93	$ 0.79	$ 0.56	$ 0.16	$ 0.47	$ 0.59	$ 0.42	$ 0.42	$ 5.41	$ 1.89	$ 2.37
Effect of Dilutive Securities (in dollars per shares)									(0.04)	(0.02)	(0.03)
Net income, Diluted (in dollars per share)	$ 3.90	$ 0.79	$ 0.55	$ 0.16	$ 0.46	$ 0.59	$ 0.42	$ 0.41	$ 5.37	$ 1.87	$ 2.34

SHARE-BASED AWARDS - SUMMARY (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) plan $ / shares shares
Stock options
Activity in the entity's stock option plans
Outstanding, beginning of period (in shares)	324
Exercised (in shares)	(87)
Forfeited and expired (in shares)	(2)
Outstanding, end of period (in shares)	235
Exercisable, end of period (in shares)	235
Weighted average exercise price
Outstanding, weighted average exercise price, beginning of period (in dollars per share) \| $ / shares	$ 21.67
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	21.95
Forfeited and expired, weighted average exercise price (in dollars per share) \| $ / shares	24.72
Outstanding, weighted average exercise price, end of period (in dollars per share) \| $ / shares	21.54
Exercisable, weighted average exercise price, end of period (in dollars per share) \| $ / shares	$ 21.54
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) \| $	$ 1,946
Exercisable, aggregate intrinsic value, end of period (in dollars) \| $	$ 1,946
Restricted Stock Units
Share-based compensation
Options granted, weighted average grant-date fair value (in dollars per share) \| $ / shares	$ 31.76
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)	319
Exercised (in shares)	(84)
Outstanding, end of period (in shares)	235
Exercisable, end of period (in shares)	235
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)	5
Exercised (in shares)	(3)
Forfeited and expired (in shares)	(2)

SHARE-BASED AWARDS - RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	720
Granted (in shares)	457
Vested (in shares)	(479)
Cancelled (in shares)	(12)
Outstanding, end of period (in shares)	686
Weighted Average Grant-Date Fair Value
Outstanding, weighted average grant-date fair value, beginning of period (in dollars per share) \| $ / shares	$ 33.35
Granted, weighted average grant-date fair value (in dollars per share) \| $ / shares	31.76
Vested, weighted average grant-date fair value (in dollars per share) \| $ / shares	27.35
Cancelled, weighted average grant-date fair value (in dollars per shares) \| $ / shares	37.24
Outstanding, weighted average grant-date fair value, end of period (in dollars per shares) \| $ / shares	$ 36.41
2007 Plan
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	701
Granted (in shares)	153
Vested (in shares)	(470)
Cancelled (in shares)	(7)
Outstanding, end of period (in shares)	377
2016 Plan
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	19
Granted (in shares)	304
Vested (in shares)	(9)
Cancelled (in shares)	(5)
Outstanding, end of period (in shares)	309

SHARE-BASED AWARDS - EXPENSE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based expense (net of estimated forfeitures)
Intrinsic value of options exercised	$ 0.7	$ 2.0	$ 9.2
Tax benefit realized upon option exercise	6.8	5.9	3.4
Fair value of stock vested	17.3	15.8	8.6
Non-vested stock and restricted stock units
Share-based expense (net of estimated forfeitures)
Total share-based expense	11.1	9.8	12.2
Non-vested restricted stock units and performance-based equity awards
Share-based expense (net of estimated forfeitures)
Unrecognized compensation cost	$ 11.5
Unrecognized compensation cost, weighted average period for recognition	1 year 8 months 12 days
Stock options
Share-based expense (net of estimated forfeitures)
Total recognized tax benefit		$ (2.2)	$ (2.6)
Unrecognized compensation cost	$ 0.0

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash and Cash Equivalents
Outstanding checks in excess of funds on deposits	$ 18.7	$ 21.3
Accounts Receivable
Eligible accounts receivable assigned to CCF	134.8	174.7
Allowance for doubtful accounts
Balance at Beginning of year	4.2	6.6	$ 5.0
Expense (Recovery)	1.0	(0.3)	2.0
Write-offs and Other	(0.6)	(2.1)	(0.4)
Balance at End of Year	4.6	4.2	$ 6.6
Prepaid and Other Assets:
Income tax receivable	2.6	23.4
Insurance	15.2	17.6
Prepaid fuel	14.4	11.5
Other	19.4	18.3
Total	51.6	70.8
Carrying value
Cash and Cash Equivalents
Cash and cash equivalents	19.8	13.9
CCF - cash on deposit	0.9	31.2
Variable rate debt	205.0	55.0
Fixed rate debt	652.1	683.9
Fair Value Measurement
Cash and Cash Equivalents
Cash and cash equivalents	19.8	13.9
CCF - cash on deposit	0.9	31.2
Variable rate debt	205.0	55.0
Fixed rate debt	651.4	685.2
Quoted Prices in Active Markets (Level 1)
Cash and Cash Equivalents
Cash and cash equivalents	19.8	13.9
Significant Observable Inputs (Level 2)
Cash and Cash Equivalents
CCF - cash on deposit	0.9	31.2
Variable rate debt	205.0	55.0
Fixed rate debt	$ 651.4	$ 685.2

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2017 USD ($) item
Commitments, Guarantees and Contingencies
Standby letters of credit	$ 10.4
Benefit plan withdrawal obligation	62.5
Construction of vessels obligations	559.5
Purchase obligations and other capital expenditure obligations	$ 15.9
Number of new vessels to be constructed \| item	4
U.S. Customs bond
Commitments, Guarantees and Contingencies
Bonds	$ 33.0

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, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets acquired and liabilities assumed
Goodwill			$ 323.7				$ 323.7	$ 323.7	$ 241.6
Repayments of Span Alaska debt								81.9
Estimated future benefit payments
Mass withdrawal liability undiscounted payments							92.6
Quarterly payments to ILA-PRSSA over an estimated period							1.0
Span Alaska
Business acquisition
Percentage interest acquired	100.00%
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
Condensed Consolidated Statements of Income and Comprehensive Income
Operating revenue							59.1	22.8
Operating Income							$ 12.8	3.5
One-time acquisition related costs								3.0
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 liability									65.5
Capital lease obligations									(1.6)
Total identifiable assets less liabilities									(188.3)
Goodwill									217.7
Common shares		$ (29.4)							(29.4)
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			$ 0.2	$ 2.6	$ 0.1	$ 0.1			$ 19.0

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	$ 86.0	$ 107.7
Basic Earnings Per Share (in dollars per share)	$ 2.00	$ 2.48
Diluted Earnings Per Share (in dollars per share)	$ 1.98	$ 2.45
Weighted Average Number of Shares Outstanding:
Basic	43.1	43.5
Diluted	43.5	44.0

QUARTERLY INFORMATION (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly information by segments
Operating Revenue	$ 516.1	$ 543.9	$ 512.5	$ 474.4	$ 519.3	$ 500.4	$ 467.7	$ 454.2	$ 2,046.9	$ 1,941.6	$ 1,884.9
Operating Income	25.3	61.8	45.9	16.4	37.2	46.7	36.1	34.6	149.4	154.6	196.3
Interest expense	(5.4)	(6.2)	(6.3)	(6.3)	(6.7)	(6.0)	(6.5)	(4.9)	(24.2)	(24.1)	(18.5)
Income before Income Taxes	19.9	55.6	39.6	10.1	30.5	40.7	29.6	29.7	125.2	130.5	177.8
Income tax expense	147.0	(21.5)	(15.6)	(3.1)	(10.5)	(15.4)	(11.6)	(11.6)	106.8	(49.1)	(74.8)
Net Income	$ 166.9	$ 34.1	$ 24.0	$ 7.0	20.0	$ 25.3	$ 18.0	$ 18.1	$ 232.0	$ 81.4	$ 103.0
Molasses Settlement					$ (0.7)
Net Income, Earnings Per Share:
Basic Earnings Per-Share: (in dollars per share)	$ 3.93	$ 0.79	$ 0.56	$ 0.16	$ 0.47	$ 0.59	$ 0.42	$ 0.42	$ 5.41	$ 1.89	$ 2.37
Diluted Earnings Per-Share: (in dollars per share)	$ 3.90	$ 0.79	$ 0.55	$ 0.16	$ 0.46	$ 0.59	$ 0.42	$ 0.41	$ 5.37	$ 1.87	$ 2.34
Span Alaska
Quarterly information by segments
Acquisition Related Selling, General and Administrative Costs										$ (3.0)
Horizon
Quarterly information by segments
Acquisition Related Selling, General and Administrative Costs					$ (0.2)	$ (2.6)	$ (0.1)	$ (0.1)			$ (19.0)
Ocean Transportation
Quarterly information by segments
Operating Revenue	$ 389.9	$ 419.2	$ 392.7	$ 370.0	406.1	398.0	370.9	366.1	$ 1,571.8	1,541.1	1,498.0
Operating Income	20.7	54.6	39.0	14.5	32.6	43.2	33.9	33.0	128.8	142.7	187.8
Logistics
Quarterly information by segments
Operating Revenue	126.2	124.7	119.8	104.4	113.2	102.4	96.8	88.1	475.1	400.5	386.9
Operating Income	$ 4.6	$ 7.2	$ 6.9	$ 1.9	$ 4.6	$ 3.5	$ 2.2	$ 1.6	$ 20.6	$ 11.9	$ 8.5

SIGNIFICANT ACCOUNTING POLICIES - FISCAL YEAR (Details)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES - FISCAL YEAR (Details)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES
Fiscal Period Duration	364 days	371 days	364 days