Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Feb. 20, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Matson, Inc.
Entity Central Index Key	0000003453
Document Type	10-K
Document Period End Date	Dec. 31, 2018
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			$ 1,614,645,486
Entity Common Stock, Shares Outstanding		42,826,203
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Revenue:
Total Operating Revenue	$ 2,222.8	$ 2,046.9	$ 1,941.6
Costs and Expenses:
Operating costs	(1,875.0)	(1,721.0)	(1,617.6)
Equity in income of Terminal Joint Venture	36.8	28.2	15.8
Selling, general and administrative	(220.8)	(206.8)	(183.1)
Total Costs and Expenses	(2,059.0)	(1,899.6)	(1,784.9)
Operating Income	163.8	147.3	156.7
Interest expense	(18.7)	(24.2)	(24.1)
Other income (expense), net	2.6	2.1	(2.1)
Income before Income Taxes	147.7	125.2	130.5
Income taxes	(38.7)	105.8	(49.1)
Net Income	109.0	231.0	81.4
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	109.0	231.0	81.4
Other Comprehensive Income (Loss):
Net gain in prior service cost		0.8	24.1
Amortization of prior service cost	(4.7)	(4.0)	(2.2)
Amortization of net loss	1.1	1.7	1.2
Other adjustments		0.2	0.2
Total Other Comprehensive Income (Loss)	(3.6)	(1.3)	23.3
Comprehensive Income	$ 105.4	$ 229.7	$ 104.7
Basic Earnings Per-Share: (in dollars per share)	$ 2.55	$ 5.38	$ 1.89
Diluted Earnings Per-Share: (in dollars per share)	$ 2.53	$ 5.35	$ 1.87
Weighted Average Number of Shares Outstanding:
Basic (in shares)	42.7	42.9	43.1
Diluted (in shares)	43.0	43.2	43.5
Ocean Transportation
Operating Revenue:
Total Operating Revenue	$ 1,641.3	$ 1,571.8	$ 1,541.1
Logistics
Operating Revenue:
Total Operating Revenue	$ 581.5	$ 475.1	$ 400.5

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 19.6	$ 19.8
Accounts receivable, net	223.7	194.6
Prepaid expenses and other assets	75.1	51.6
Total current assets	318.4	266.0
Long-term Assets:
Investment in Terminal Joint Venture	87.0	93.2
Property and equipment, net	1,366.6	1,165.7
Goodwill	327.8	327.8
Intangible assets, net	214.0	225.2
Deferred dry-docking costs, net	67.1	89.2
Other long-term assets	49.5	84.5
Total long-term assets	2,112.0	1,985.6
Total Assets	2,430.4	2,251.6
Current Liabilities:
Current portion of debt	42.1	30.8
Accounts payable	246.8	175.1
Accruals and other liabilities	81.9	80.4
Total current liabilities	370.8	286.3
Long-term Liabilities:
Long-term debt	814.3	826.3
Deferred income taxes	312.7	283.6
Other long-term liabilities	177.3	178.2
Total long-term liabilities	1,304.3	1,288.1
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, 42.7 million shares in 2018 and 42.5 million shares in 2017	32.0	31.9
Additional paid in capital	297.8	289.7
Accumulated other comprehensive loss, net	(34.5)	(24.9)
Retained earnings	460.0	380.5
Total shareholders' equity	755.3	677.2
Total liabilities and shareholders' equity	$ 2,430.4	$ 2,251.6

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2018	Dec. 31, 2017
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	42.7	42.5

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows From Operating Activities:
Net income	$ 109.0	$ 231.0	$ 81.4
Reconciling adjustments:
Depreciation and amortization	94.4	101.2	97.1
Deferred income taxes	29.3	(127.9)	24.7
(Gain) Loss on disposal of property and equipment	(1.9)	3.0	0.9
Share-based compensation expense	12.1	11.1	11.2
Equity in income of Terminal Joint Venture	(36.8)	(28.2)	(15.8)
Distribution from Terminal Joint Venture	42.0	17.5
Tax benefit from equity issuance			2.2
Tax benefit from stock-based compensation			(0.3)
Changes in assets and liabilities:
Accounts receivable, net	(29.1)	(5.1)	14.4
Deferred dry-docking payments	(19.2)	(54.6)	(59.2)
Deferred dry-docking amortization	37.4	46.2	38.9
Prepaid expenses and other assets	4.2	14.4	(13.6)
Accounts payable, accruals and other liabilities	71.2	20.4	2.1
Other long-term liabilities	(7.6)	(4.1)	(26.2)
Net cash provided by operating activities	305.0	224.9	157.8
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(338.6)	(252.0)	(94.5)
Other capital expenditures	(62.6)	(55.0)	(84.9)
Proceeds from (payments for) disposal of property and equipment	136.3	(0.2)	2.5
Cash deposits into Capital Construction Fund	(340.0)	(171.4)	(123.4)
Withdrawals from Capital Construction Fund	340.9	201.7	92.2
Proceeds from sale of other investments	3.7
Payments for membership interests in Span Alaska, net of cash acquired			(112.6)
Net cash used in investing activities	(260.3)	(276.9)	(320.7)
Cash Flows From Financing Activities:
Proceeds from issuance of debt			275.0
Repayments of debt	(30.0)	(30.0)	(20.5)
Repayment of capital leases	(0.7)	(1.8)	(1.7)
Proceeds from revolving credit facility	963.9	469.0	1,103.0
Repayments of revolving credit facility	(933.9)	(319.0)	(1,048.0)
Payment of financing costs		(1.7)
Proceeds from issuance of capital stock	0.7	1.9	1.2
Dividends paid	(35.4)	(33.8)	(32.2)
Repurchase of Matson common stock		(19.3)	(38.0)
Tax withholding related to net share settlements of restricted stock units	(4.6)	(7.4)	(5.9)
Tax benefit from stock-based compensation			0.3
Payments of Span Alaska debt			(81.9)
Net cash (used in) provided by financing activities	(40.0)	57.9	151.3
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	4.7	5.9	(11.6)
Cash, Cash Equivalents and Restricted Cash, Beginning of the Year	19.8	13.9	25.5
Cash, Cash Equivalents and Restricted Cash, End of the Year	24.5	19.8	13.9
Reconciliation of Cash, Cash Equivalents, and Restricted Cash, at End of the Year:
Cash and Cash Equivalents	19.6	19.8	13.9
Restricted Cash	4.9
Cash, Cash Equivalents and Restricted Cash, End of the Year	24.5	19.8	13.9
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	18.3	23.9	21.6
Income tax paid, net of income tax refunds	5.2	2.6	15.6
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$ 4.1	$ 1.2	$ 4.1

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, 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 ($0.82, $0.78, and $0.74 per share) for the years 2018, 2017 and 2016 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
Increase (Decrease) in Stockholders' Equity
Net income				231.0	231.0
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 ($0.82, $0.78, and $0.74 per share) for the years 2018, 2017 and 2016 respectively				(33.8)	(33.8)
Balance at the end of the period at Dec. 31, 2017	$ 31.9	289.7	(24.9)	380.5	$ 677.2
Balance (in shares) at Dec. 31, 2017	42.5				42.5
Increase (Decrease) in Stockholders' Equity
Net income				109.0	$ 109.0
Other comprehensive income (loss), net of tax			(9.6)	6.0	(3.6)
Share-based compensation		12.1			12.1
Shares issued	$ 0.1	(4.0)			(3.9)
Shares issued (in shares)	0.2
Shares repurchased				(0.1)	(0.1)
Dividends ($0.82, $0.78, and $0.74 per share) for the years 2018, 2017 and 2016 respectively				(35.4)	(35.4)
Balance at the end of the period at Dec. 31, 2018	$ 32.0	$ 297.8	$ (34.5)	$ 460.0	$ 755.3
Balance (in shares) at Dec. 31, 2018	42.7				42.7

DESCRIPTION OF THE BUSINESS	12 Months Ended
DESCRIPTION OF THE BUSINESS	Dec. 31, 2018
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, 2018, 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. (“Terminal Joint Venture”). 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. Matson records its share of income from the Terminal Joint Venture in costs and expenses 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, non-vessel operating common carrier (“NVOCC”) freight forwarding and other services. Recent Acquisition: 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”) (see Note 18).

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

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 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 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 2018 and 2017 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; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for doubtful accounts; legal contingencies; uninsured risks and related 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 Annual Report on Form 10-K for the year ended December 31, 2017, the Company determined that it had incurred a partial withdrawal liability related to the Office & Professional Employees International Union (“OPEIU”), Local 153 Pension Fund (the “Local 153 Fund”). The partial withdrawal liability resulted from a decline in the number of contribution base units related to the Local 153 Fund caused by Horizon Lines, Inc. (“Horizon”) terminating all of its operations in Puerto Rico during the first quarter of 2015, prior to the Company acquiring Horizon on May 29, 2015.

Accordingly, the Company corrected this error by recording an increase in other long-term liabilities of $6.7 million, a reduction in deferred income taxes of $2.6 million, and a corresponding net adjustment to goodwill of $4.1 million for the years ended December 31, 2015, 2016 and 2017. For the year ended December 31, 2017, the $2.6 million deferred income taxes adjustment was reduced by $1.0 million to reflect the remeasurement tax effects resulting from the Tax Cut and Jobs Act of 2017 (the “Tax Act”). This had the corresponding effect of increasing income taxes and decreasing net income by $1.0 million during the year ended December 31, 2107. There was no impact to net income for any other years presented. The misstatement had no net impact on the Company’s Consolidated Statements of Cash Flows. The Company believes the correction of this error is immaterial to previously issued Consolidated Financial Statements for all prior periods.

Cash, Cash Equivalents and Restricted Cash: Cash equivalents consist of highly-liquid investments with original maturities of three months or less. The Company carries these investments at cost, which approximates fair value. Outstanding checks in excess of funds on deposit totaled $16.4 million and $18.7 million at December 31, 2018 and 2017, respectively, and are included in current liabilities in the Consolidated Balance Sheets. Restricted cash relates to amounts that are subject to contractual restrictions and are not readily available. Restricted cash was $4.9 million at December 31, 2018, and is included in prepaid expenses and other assets in the Consolidated Balance Sheet. There were no restricted cash amounts at December 31, 2017.

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, 2018, and 2017, the Company had assigned $1.0 million and $134.8 million of eligible accounts receivable, respectively, to the Capital Construction Fund (see Note 7).

Allowance for Doubtful Accounts: Allowance for doubtful accounts receivable is 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, 2018, 2017 and 2016 were as follows:


	Balance at		Expense		Write-offs		Balance at
Year (in millions)	Beginning of Year		(Recovery) (1)		and Other		End of Year
2018	$	4.6	$	0.8	$	(0.6)	$	4.8
2017	$	4.2	$	1.0	$	(0.6)	$	4.6
2016	$	6.6	$	(0.3)	$	(2.1)	$	4.2

(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, 2018 and 2017:


	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2018		2017
Income tax receivables	$	26.8	$	2.6
Prepaid fuel		16.3		14.4
Prepaid insurance and insurance related receivables		12.6		19.3
Prepaid operating expenses		6.8		6.3
Restricted cash - vessel construction obligations		4.9		—
Other		7.7		9.0
Total	$	75.1	$	51.6

Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2018 and 2017:


	As of December 31,
Other Long-Term Assets (in millions)	2018		2017
Income tax receivables	$	21.5	$	50.2
Vessel and equipment spare parts		13.1		12.7
Insurance related receivables		11.2		12.9
Deferred Charges and other		3.7		7.8
Capital construction fund - cash on deposit (see Note 7)		—		0.9
Total	$	49.5	$	84.5

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 its carrying cost. No impairment was identified during the years ended December 31, 2018, 2017 and 2016.

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 years ended December 31, 2018, 2017 and 2016, the Company capitalized $18.7 million, $7.5 million and $2.1 million of interest related to the construction of new vessels, respectively.

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. Amortization of deferred dry-docking costs are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income. Routine vessel maintenance and repairs are charged to expense as incurred.

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 consists 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: Long-lived assets and finite-lived intangible assets are grouped at the lowest level for which identifiable cash flows are available. 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 and finite-lived intangible assets were recorded for the years ended December 31, 2018, 2017 and 2016.

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. 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. No impairment charges of indefinite-life intangible assets and goodwill were recorded for the years ended December 31, 2018, 2017 and 2016.

Accruals and other liabilities: Accruals and other liabilities consist of the following at December 31, 2018 and 2017:


	As of December 31,
Accruals and Other Liabilities (in millions)	2018		2017
Payroll and vacation related accruals	$	25.7	$	24.7
Employee incentives and other related accruals		19.5		17.4
Uninsured risks and related liabilities - short term		9.9		15.4
Deferred revenues		5.7		5.0
Interest on debt		5.1		5.4
Multi-employer withdrawal liabilities - short term (see Note 12)		10.8		4.1
Pension and post-retirement liabilities - short term (see Note 11)		3.0		3.0
Other short-term liabilities		2.2		5.4
Total	$	81.9	$	80.4

Other long-term liabilities: Other long-term liabilities consist of the following at December 31, 2018 and 2017:


	As of December 31,
Other Long-Term Liabilities (in millions)	2018		2017
Pension and post-retirement liabilities (see Note 11)	$	79.4	$	75.1
Multi-employer withdrawal liability (see Note 12)		56.6		65.1
Uninsured risks and related liabilities		27.3		29.5
Other long-term liabilities		14.0		8.5
Total	$	177.3	$	178.2

Pension and Post-Retirement Plans: The Company is a member 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 Risks and Related Liabilities: The Company is uninsured for certain risks but when feasible, many risks are mitigated by insurance. The Company purchases insurance with deductibles or self-insured retentions. Such insurance includes, but is not limited to, employee health, workers’ compensation, marine liability, auto liability and physical damage to inland property, equipment and vessels. For certain risks, the Company elects to not purchase insurance because of excessive cost of insurance or the perceived remoteness of the risk. In addition, the Company retains all risk of loss that exceeds the limits of the Company’s insurance policies.

When estimating its reserves for uninsured risks 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 estimates used to determine the adequacy of the Company’s reserves for uninsured risks and related liabilities.

Leases: The Company recognizes operating lease expense on a straight-line basis over the lease term. The Company’s operating leases are more fully described in Note 9. The Company’s capital leases are de minimis and are included as part of the Company’s debt (see Note 8).

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 for the periods presented:



	Year Ended December 31,
Ocean Transportation (in millions) (1)	2018		2017		2016
Ocean Transportation services	$	1,599.3	$	1,531.8	$	1,504.5
Terminal and other related services		23.0		23.5		22.9
Fuel sales		12.2		9.9		7.5
Vessel management and related services		6.8		6.6		6.2
Total	$	1,641.3	$	1,571.8	$	1,541.1

(1)

Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories 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 services revenue is recognized as the services are performed.

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.

Vessel management and related services revenue is recognized in proportion to the services completed.



	Year Ended December 31,
Logistics (in millions) (1)	2018		2017		2016
Transportation Brokerage and Freight Forwarding services	$	549.1	$	445.1	$	373.7
Warehouse and distribution services		19.1		17.5		19.7
Supply chain management and other services		13.3		12.5		7.1
Total	$	581.5	$	475.1	$	400.5

(1)

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

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, labor and equipment 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 and other operating 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 fulfilling the contractual arrangements with the customer and has latitude in establishing prices.

Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. 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 invoiced in advance to the customer. 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.

Customer Concentration: The Ocean Transportation segment serves customers in numerous industries and carries a wide variety of cargo, mitigating its dependence upon any single customer or single type of cargo. In 2018, 2017 and 2016, the 10 largest Ocean Transportation customers accounted for approximately 24 percent, 23 percent and 24 percent of Ocean Transportation revenue, respectively. None of these customers individually account for more than 10 percent of Ocean Transportation operating revenues.

The Logistics segment serves customers in numerous industries and geographical locations. In 2018, 2017 and 2016, the 10 largest logistics customers accounted for approximately 23 percent, 19 percent and 22 percent of Logistics revenue, respectively. None of these customers individually account for more than 10 percent of Logistics operating revenues.

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: The Company makes certain estimates and judgments in determining income tax expense for Consolidated Financial Statement purposes. These estimates and judgments are applied in the calculation of taxable income, 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, costs and expenses for tax purposes. Deferred tax assets and liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse.

The Company records a valuation allowance 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. Significant changes to these estimates may result in an increase or decrease to the Company’s income taxes in a subsequent period. The Company’s income taxes are more fully described in Note 10.

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:

Leases (Topic 842) (“ASU 2016-02”): In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 which requires lessees to record operating and finance leases on their balance sheet and disclose information related to such arrangements. ASU 2016-02 states that a lessee would recognize a lease liability for the lease payment obligation, and a right-of-use asset for the underlying leased asset for the period of the lease term. For an operating lease, the recognition of lease expense in the income statement is expected to be similar to current practice. The new standard is effective for interim and annual periods beginning on or after December 15, 2018. A modified retrospective transition approach is required.

The Company will adopt ASU 2016-02 effective January 1, 2019 and plans to make the following elections:

Apply the transition requirements at the effective date of January 1, 2019, with the effects, if any, of initially applying ASU 2016-02 to be recognized as a cumulative-effect adjustment to retained earnings in the period of adoption;

The package of practical expedient permitted under the transition guidance which allows the historical lease classification and initial direct costs to be carried forward;

Elect the short-term lease exception which allows the Company to exclude leases with an initial term of one year or less from recognition;

Elect to separate non-lease components; and

Elect to use a portfolio approach in applying discount rates to leases based upon the lease terms in the following categories: (i) one to five years; (ii) six to ten years; (iii) eleven to fifteen years; and (iv) sixteen years and greater, regardless of the type of asset.

The Company plans to use its estimated incremental borrowing rate based on information available at the date of adoption in calculating the present value of its existing lease payments. The incremental borrowing rate will be determined using the U.S. Treasury rate adjusted to account for the Company’s credit rating and the collateralized nature of operating leases.

The Company estimates that upon adoption, it will initially record a right-of-use asset of approximately $252.9 million, and a corresponding current and long-term lease liability of approximately $54.2 million and $206.4 million, respectively. The Company will also record a cumulative-effect adjustment of approximately $5.9 million to increase beginning retained earnings at January 1, 2019, as a result of adopting ASU 2016-02. The Company does not believe that the adoption of ASU 2016-02 will have any significant impact on the Company’s current earnings, liquidity or existing debt covenant requirements. The Company’s finance leases and sub-lease income are nominal to the Company’s Consolidated Financial Statements.

Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”): In June 2016, the FASB issued ASU 2016‑13 which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities and other financial instruments. ASU 2016‑13 requires entities to establish a valuation allowance for the expected lifetime losses of certain financial instruments. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses is permitted. The new standard is effective for interim and annual periods beginning on or after December 15, 2019, and early adoption is permitted. The Company is in the process of evaluating this new standard, but does not expect the adoption of ASU 2016‑13 to have a significant impact on the Company’s Consolidated Financial Statements.

Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”): The Company adopted ASU 2014-09 during the three months ended March 31, 2018 using the modified retrospective method. 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 revenues 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 de minimis because the analysis of the Company’s contracts under ASU 2014-09 supports the recognition of revenue over time as the service is performed, which is consistent with the Company’s current revenue recognition accounting 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 source to destination point, or as the service is being performed. These performance obligations are completed in a short period of time due to the nature of the services provided by the Company. Under the new standard, revenues from the majority of 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.

Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”): ASU 2018-02 allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from the Tax Act. The Company elected to early adopt ASU 2018-02 during the three months ended March 31, 2018, and recorded a reclassification adjustment of $6.0 million between accumulated other comprehensive income (loss) and retained earnings (see Note 13).

Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Benefit Cost (“ASU 2017-07”): ASU 2017-07 requires employers that sponsor defined benefit pension and 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.

The Company adopted ASU 2017-07 during the three months ended March 31, 2018. To conform prior year amounts to current period presentation as required by ASU 2017-07, the Company recorded retrospective adjustments and reclassified $2.1 million of income and $2.1 million of expense from costs and expenses, to other income (expense), net in the Consolidated Statement of Income and Comprehensive Income for the years ended December 31, 2017 and 2016, respectively. There was no change to income before income taxes for all years presented as a result of adopting ASU 2017‑07.

Simplifying the Test for Goodwill Impairment (“ASU 2017-04”): ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. The Company early adopted ASU 2017-04 during the three months ended December 31, 2018. The adoption of this ASU had no impact on the Company’s Consolidated Financial Statements.

REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2018

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. 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 2018 and 2017 fiscal years, and 53 weeks in the 2016 fiscal year.

The Company’s Ocean Transportation segment provides ocean transportation services to the Logistics segment, and the Logistics segment provides logistics services to the Ocean Transportation segment. Accordingly, inter-segment revenue of $95.4 million, $81.3 million and $62.0 million for the years ended December 31, 2018, 2017 and 2016, respectively, have been eliminated from Logistics’ operating revenues due to the nature of how those services were performed.

Reportable segment financial information for the years ended December 31, 2018, 2017 and 2016, and identifiable asset segment information at December 31, 2018 and 2017, are as follows:


	Years Ended December 31,
(In millions)	2018		2017		2016
Operating Revenue:
Ocean Transportation	$	1,641.3	$	1,571.8	$	1,541.1
Logistics		581.5		475.1		400.5
Total Operating Revenue	$	2,222.8	$	2,046.9	$	1,941.6
Operating Income:
Ocean Transportation (1)	$	131.1	$	126.4	$	144.5
Logistics (2)		32.7		20.9		12.2
Total Operating Income		163.8		147.3		156.7
Interest expense, net		(18.7)		(24.2)		(24.1)
Other income (expense), net		2.6		2.1		(2.1)
Income before Income Taxes		147.7		125.2		130.5
Income taxes (3)		(38.7)		105.8		(49.1)
Net Income (3)	$	109.0	$	231.0	$	81.4

Capital Expenditures:
Ocean Transportation	$	385.4	$	305.3	$	179.1
Logistics		15.8		1.7		0.3
Total Capital Expenditures	$	401.2	$	307.0	$	179.4

Depreciation and Amortization:
Ocean Transportation	$	87.0	$	93.3	$	92.6
Logistics		7.4		7.9		4.5
		94.4		101.2		97.1
Deferred dry-docking amortization - Ocean Transportation		37.4		46.2		38.9
Total Depreciation and Amortization	$	131.8	$	147.4	$	136.0

(1)

Ocean Transportation segment information includes $36.8 million, $28.2 million, and $15.8 million of equity in income from the Company’s equity investment in SSAT for the years ended December 31, 2018, 2017, and 2016, respectively.

(2)

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

(3)

Income taxes and net income were adjusted for an immaterial correction of an error for the year ended December 31, 2017 (see Note 2).


	As of December 31,
(In millions)	2018		2017
Identifiable Assets:
Ocean Transportation (1) (2)	$	2,071.6	$	1,941.5
Logistics		358.8		310.1
Total Assets (2)	$	2,430.4	$	2,251.6

(1)

The Ocean Transportation segment includes $87.0 million and $93.2 million related to the Company’s equity investment in SSAT as of December 31, 2018 and 2017, respectively.

(2)

Amounts as of December 31, 2017 have been adjusted for an immaterial correction of an error (see Note 2).

INVESTMENT IN TERMINAL JOINT VENTURE

12 Months Ended

Dec. 31, 2018

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 Terminal Joint Venture using the equity method of accounting. The Company records its share of income from the Terminal Joint Venture in costs and expenses 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 $87.0 million and $93.2 million at December 31, 2018 and 2017, 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, 2018, 2017 and 2016 are as follows:


	Years Ended December 31,
(In millions)	2018		2017		2016
Company's share of net income	$	36.8	$	28.2	$	15.8
Distributions received	$	42.0	$	17.5	$	—

The Company’s Ocean Transportation segment operating costs include $213.4 million, $181.3 million and $177.8 million for the years ended December 31, 2018, 2017 and 2016, respectively, for terminal services provided by SSAT. Accounts payable and accrued liabilities in the Consolidated Balance Sheets include $59.2 million and $22.8 million for terminal services payable to SSAT at December 31, 2018 and 2017, respectively.

A summary of the condensed balance sheets of SSAT at December 31, 2018 and 2017 is as follows:


	As of December 31,
Condensed Balance Sheets (in millions)	2018		2017
Current assets	$	310.4	$	181.0
Non-current assets		152.1		161.8
Total Assets	$	462.5	$	342.8

Current liabilities	$	71.0	$	65.3
Non-current liabilities		156.2		23.8
Equity		235.3		253.7
Total Liabilities and Equity	$	462.5	$	342.8

A summary of the condensed statements of operating income and net income of SSAT for years ended December 31, 2018, 2017 and 2016 are as follows:


	Years Ended December 31,
Condensed Statements of Operating Income and Net Income (in millions)	2018		2017		2016
Operating revenue	$	1,074.2	$	933.5	$	740.9
Operating costs and expenses		963.7		850.2		706.5
Operating income		110.5		83.3		34.4
Net Income (1)	$	104.9	$	80.9	$	45.1

(1)Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2018 and 2017, and depreciation expense for the years ended December 31, 2018, 2017 and 2016 is as following:


	As of December 31, 2018						As of December 31, 2017
			Accumulated						Accumulated
(In millions)	Cost		Depreciation		Net Book Value		Cost		Depreciation		Net Book Value
Vessels	$	1,489.2		847.1	$	642.1	$	1,433.6	$	893.2	$	540.4
Containers and equipment		513.6		362.9		150.7		543.0		349.0		194.0
Terminal facilities and other property		66.0		38.6		27.4		64.8		36.3		28.5
Vessel construction in progress		487.2		—		487.2		376.6		—		376.6
Other construction in progress		59.2		—		59.2		26.2		—		26.2
Total	$	2,615.2	$	1,248.6	$	1,366.6	$	2,444.2	$	1,278.5	$	1,165.7


	Years Ended December 31,
(In millions)	2018		2017		2016
Depreciation expense	$	80.5	$	86.7	$	86.0

Vessel construction in progress represents progress payments for the construction of four new vessels, and other related costs. During the year ended December 31, 2018, the construction of the first vessel was completed and the vessel was placed into service resulting in approximately $233.0 million, including $12.8 million of capitalized interest, transferred from Vessel construction in progress category to Vessels category within Property and Equipment. As of December 31, 2018 and 2017, vessel construction in progress costs included capitalized interest of $16.3 million and $10.4 million, respectively.

Property and equipment includes assets subject to capital leases with a net book value of $0.1 million and $4.9 million, net of accumulated depreciation of $0.7 million and $3.8 million at December 31, 2018 and 2017, respectively. Depreciation of assets subject to capital leases recorded in the Consolidated Statement of Income and Comprehensive Income was $0.5 million, $1.5 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.

GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2018

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS

6.GOODWILL AND INTANGIBLE ASSETS

Goodwill by segment as of December 31, 2018 and 2017 consist of the following:


	Ocean
(In millions)	Transportation		Logistics		Total
Goodwill	$	222.6	$	105.2	$	327.8

Intangible assets by segment as of December 31, 2018 and 2017 consist of the following:


	As of December 31, 2018						As of December 31, 2017
	Gross		Accumulated				Gross		Accumulated
(In millions)	Amount		Amortization		Net Book Value		Amount		Amortization		Net Book Value
Ocean Transportation - Customer relationships	$	140.6	$	24.4	$	116.2	$	140.6	$	17.8	$	122.8
Logistics:
Customer relationships		90.1		19.6		70.5		90.1		15.0		75.1
Trade name		27.3		—		27.3		27.3		—		27.3
Total Logistics		117.4		19.6		97.8		117.4		15.0		102.4
Total	$	258.0	$	44.0	$	214.0	$	258.0	$	32.8	$	225.2

Ocean Transportation intangible assets of $140.6 million relates to customer relationships acquired as part of the acquisition of Horizon Lines, Inc. (“Horizon”) on May 29, 2015, and is being amortized over 21 years. Logistics intangible assets include $79.3 million of customer relationships which are being amortized over 20 years, and $27.3 million of an indefinite life trade name, acquired as part of the Span Alaska Acquisition (see Note 18). The remaining Logistics customer relationships of $10.8 million are being amortized over a period of up to 13 years.

Intangible assets related amortization expense for 2018, 2017, and 2016, is as follows:


	Years Ended December 31,
(In millions)	2018		2017		2016
Amortization expense	$	11.2	$	11.4	$	9.1

As of December 31, 2018, estimated amortization expense related to customer relationships intangible assets during the next five years and thereafter are as follows:


	Customer
Year (in millions)	Relationships
2019	$	11.0
2020		11.0
2021		10.9
2022		10.7
2023		10.7
Thereafter		132.4
Total	$	186.7

- 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, 2018
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 fleet. 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 built in the U.S. and used between covered U.S. ports as described by the Merchant Marine Act, and for other qualifying expenditures (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. 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, 2018 and 2017, $1.0 million and $134.8 million, respectively, of eligible accounts receivable were assigned to the CCF. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Consolidated Balance Sheets. At December 31, 2017, the Company had $0.9 million on deposit in the CCF invested in a money market fund which is classified as other long-term assets in the Company’s Consolidated Balance Sheets. The amount on deposit in the CCF at December 31, 2018 was nominal.

DEBT

12 Months Ended

Dec. 31, 2018

DEBT

DEBT

8.DEBT

At December 31, 2018 and 2017, the Company’s debt consisted of the following:


	As of December 31,
(In millions)	2018		2017
Private Placement Term Loans:
5.79 %, payable through 2020	$	10.5	$	17.5
3.66 %, payable through 2023		41.0		50.1
4.16 %, payable through 2027		44.5		49.8
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		200.0		200.0
4.31 %, payable through 2032		32.7		35.1
4.35 %, payable through 2044		100.0		100.0
3.92 %, payable through 2045		71.4		73.2
Title XI Bonds:
5.34 %, payable through 2028		22.0		24.2
5.27 %, payable through 2029		24.2		26.4
Revolving credit facility, maturity date of June 29, 2022		235.0		205.0
Capital leases		0.1		0.8
Total Debt		856.4		857.1
Less: Current portion		(42.1)		(30.8)
Total Long-term Debt	$	814.3	$	826.3

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 rate 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 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 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 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 also pays 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, 2018, the Company had $304.0 million of remaining availability under the Credit Agreement. The Company used $7.9 million of the sub-limit for letters of credit outstanding as of December 31, 2018. Based upon the Company’s consolidated net leverage ratio, the interest rate applicable to revolving credit facility borrowings was approximately 3.92 percent at December 31, 2018.

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 for certain pre-defined periods 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.

Principal 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, 2018.

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, 2018 was unsecured, except for $46.2 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 revolving credit facility.

Debt Maturities: At December 31, 2018, debt maturities during the next five years and thereafter are as follows:


Year (in millions)	Total
2019	$	42.1
2020		48.4
2021		54.2
2022		294.9
2023		59.9
Thereafter		356.9
Total debt	$	856.4

LEASES

12 Months Ended

Dec. 31, 2018

LEASES

LEASES

9.LEASES

The Company has a variety of different types of operating leases, the specific terms and conditions of which vary from lease to lease. Certain operating lease agreements include terms such as (i) renewal and early termination options; (ii) early buy-out and purchase options; and (iii) rent escalation clauses. The lease agreements also include provisions for the maintenance of the leased asset and payment of lease related costs. The Company reviews the specific terms and conditions of each lease and, as appropriate, notifies the lessor of any intent to exercise any option in accordance with the terms of the lease. In the normal course of business, the Company expects to be able to renew or replace most of its operating leases by other similar leases as they expire. Except for the vessel lease guaranty described below, the Company’s leases do not contain any residual value guarantees. The lease type and estimated maximum terms of the Company’s operating leases are as following:


Lease Type:		Life
Real estate and terminal leases		65 years
Vessel charter leases		10 years
Operations equipment and other leases		8 years

Rent expense recorded in costs and expenses in the Consolidated Statements of Income and Comprehensive Income from operating leases and other non-lease agreements are as follows:


	Years Ended December 31,
(In millions)	2018		2017		2016
Real estate and terminal leases	$	25.6	$	26.4	$	25.4
Vessel charter leases		21.4		21.4		16.4
Operations equipment and other leases		26.8		26.0		27.9
Other rent expense		68.1		54.9		49.9
Total	$	141.9	$	128.7	$	119.6

Future minimum payments under operating lease agreements at December 31, 2018 are as follows:


Year (in millions)	Total
2019	$	68.3
2020		59.2
2021		44.8
2022		34.7
2023		30.5
Thereafter		83.6
Total minimum lease payments	$	321.1

Vessel Charter and Buyer-Lessor Guaranty

Vessel Charter: On November 26, 2018, a wholly-owned subsidiary of the Company entered into agreements whereby a vessel, MV Maunalei, owned by the subsidiary, was sold for $106.0 million and subsequently leased back from the buyer-lessor under a Bareboat Charter Agreement (the “Charter”). The transaction qualified for sale and leaseback treatment under ASC 840, Leases, with the Charter treated as an operating lease for accounting purposes. Lease payments are approximately $3.0 million per quarter, and the base term of the Charter is five years with a two year end-of-term renewal option. Total future minimum lease payments were $59.9 million at December 31, 2018, and are included in the future minimum payments table above. The Company recorded a net deferred gain of $2.3 million related to this sale and leaseback during the year ended December 31, 2018, and is included in other long-term liabilities in the Consolidated Balance Sheet.

Prior to the expiration of the base term of the Charter, the subsidiary may, at its option, elect to: (i) purchase the vessel at the option price; (ii) exercise the option to renew the Charter for an additional two years; or (iii) remarket the vessel to sell to a third-party on behalf of the buyer-lessor. The purchase option price is $68.9 million after the base term and $58.3 million after the extended term. The Charter also includes a maximum residual value guarantee amount of $50.9 million after five years, or $47.7 million after the extended term. Proceeds from the sale of the vessel reduces the subsidiary’s residual value guarantee.

Buyer-Lessor Guaranty: Matson, Inc. provided the buyer-lessor with a guaranty of all obligations of the wholly-owned subsidiary related to the Charter as defined in the guaranty agreement.

INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES

INCOME TAXES

10.INCOME TAXES

Income Taxes: On December 22, 2017, the Tax Act was signed into law and included numerous changes in existing tax law, including a reduction in the federal corporate income tax rate from 35 percent to 21 percent. The rate reduction and other changes took effect on January 1, 2018. Other changes such as remeasurement of deferred tax assets and liabilities were 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. As of December 31, 2018, the Company has completed its assessment of the impact of the Tax Act.

In connection with the Company’s analysis of the impact of the Tax Act, the Company recorded a net tax benefit of $154.0 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. In addition, the Company recorded a non-cash tax adjustment of $2.9 million that increased current income taxes during the year ended December 31, 2018. This adjustment related to the application of an estimated 6.2 percent sequestration on alternative minimum tax (AMT) refunds for the years 2018 to 2021. On January 19, 2019, the Internal Revenue Service issued new guidance indicating that sequestration would not apply to refundable AMT credits. In accordance with this new guidance, the Company will record a non-cash adjustment of $2.9 million that will reduce current income taxes during the three months ending March 31, 2019.

Income taxes for the years ended December 31, 2018, 2017 and 2016 consisted of the following:


	Years Ended December 31,
(In millions)	2018		2017		2016
Current:
Federal	$	2.4	$	21.6	$	10.5
State		2.1		2.2		(1.3)
Discrete adjustments related to the Tax Act (1)		2.9		—		—
Total		7.4		23.8		9.2
Deferred:
Deferred tax expense		31.3		24.4		39.9
Remeasurement and discrete adjustments related to the Tax Act (2)		—		(154.0)		—
Total		31.3		(129.6)		39.9
Total income taxes	$	38.7	$	(105.8)	$	49.1

(1)

Current income taxes for the year ended December 31, 2018 includes a non-cash income tax expense of $2.9 million, which relates to discrete adjustments as a result of applying the provisions of the Tax Act.

(2)

Deferred income taxes for the year ended December 31, 2017 includes a non-cash income tax benefit of $154.0 million, which relates to the remeasurement of the Company’s deferred tax assets and liabilities and other discrete adjustments as a result of applying the provisions of the Tax Act.

Income taxes for the years ended December 31, 2018, 2017, and 2016, differs from amounts computed by applying the statutory federal rate to income before income taxes for the following reasons:


	Years Ended December 31,
	2018		2017		2016
Computed federal income tax expense	21.0	%	35.0	%	35.0	%
State income tax	3.4	%	2.6	%	1.8	%
Valuation allowance	(0.7)	%	1.4	%	0.3	%
Foreign taxes	0.6	%	0.1	%	0.4	%
Remeasurement and discrete adjustments related to the Tax Act (1)	2.0	%	(123.0)	%	—	%
Share-based payments	0.1	%	(1.4)	%	—	%
Other — net	(0.2)	%	0.8	%	0.1	%
Effective income tax rate	26.2	%	(84.5)	%	37.6	%

(1)

Effective income tax rate for the year ended December 31, 2018 and 2017 includes the impact of a non-cash income tax expense of $2.9 million, or 2.0 percent, and a non-cash income tax benefit of $154.0 million, or (123.0 percent), respectively, related to the remeasurement of the Company’s deferred assets and liabilities and other discrete adjustments as a result of applying the provisions of the Tax Act.

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017, were as follows:


	As of December 31,
(In millions)	2018		2017
Deferred tax assets:
Benefit plans	$	45.6	$	44.2
Federal net operating losses		15.2		21.6
Insurance reserves		5.6		6.8
State net operating losses		7.4		7.4
Foreign losses		5.1		6.6
U.S. State alternative minimum tax credits		5.9		4.2
Allowance for doubtful accounts		1.1		0.9
Other		1.8		1.9
Total deferred tax assets		87.7		93.6
Valuation allowance		(11.5)		(13.0)
Total deferred tax assets, net of valuation allowance		76.2		80.6

Deferred tax liabilities:
Basis differences for property and equipment		302.1		254.4
Lease financing		26.0		—
Capital Construction Fund		7.0		54.2
Intangibles		38.4		36.4
Deferred revenue		3.0		6.9
Terminal Joint Venture investment		11.4		9.6
Reserves		1.0		2.7
Total deferred tax liabilities		388.9		364.2
Deferred tax liability, net	$	312.7	$	283.6

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 for 2016, 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: Valuation allowances recorded against the Company’s foreign income tax net operating losses (“NOLs”) and a portion of the state income tax NOLs were $11.5 million and $13.0 million as of December 31, 2018 and 2017, respectively. The Company believes that it is more likely than not that the benefit from these amounts will not be realized. The Company recorded adjustments to its valuation allowance of ($1.1) million, $1.7 million and $0.4 million during the years ended December 31, 2018, 2017 and 2016, respectively.

Net Operating Losses and Tax Credit Carryforwards: The Company’s NOLs and tax credit carryforwards at December 31, 2018 and 2017, were as follows:


(In millions)	Expiration Date	2018		2017
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	74.5	$	183.8
U.S. State income tax NOLs	Various dates beginning in 2032	$	189.2	$	192.3
Foreign income tax NOLs	No expiration date	$	18.4	$	23.7
U.S. State alternative minimum tax credit	No expiration date	$	5.9	$	4.2

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. As a result of changes in tax legislation, the 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 incomes taxes and 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, 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
Changes in tax positions of prior years, net		(0.3)
Reductions for lapse of statute of limitations		(0.5)
Balance at December 31, 2018	$	15.1

(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, 2018 are potential benefits of $13.7 million that, if recognized, would affect the Company’s income taxes and 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 Company’s income taxes. Interest accrued related to the balance of unrecognized tax benefits totaled $0.4 million and $0.5 million as of December 31, 2018 and 2017, respectively.

The Company is no longer subject to U.S. federal income tax audits for years before 2014. The Company is routinely involved in state, local income and excise tax audits, and foreign tax audits.

PENSION AND POST-RETIREMENT PLANS

12 Months Ended

Dec. 31, 2018

PENSION AND POST-RETIREMENT PLANS

PENSION AND 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, 2018 and 2017 were as follows:


Asset Categories	Target		2018		2017
Domestic equity securities	53	%	57	%	59	%
International equity securities	15	%	16	%	17	%
Debt securities	22	%	19	%	17	%
Real estate	5	%	7	%	6	%
Other and cash	5	%	1	%	1	%
Total	100	%	100	%	100	%

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

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


Actual Return on Plan Assets	Returns
One-year return	(6.5)	%
Three-year return	5.1	%
Five-year return	3.8	%
Long-term average return (since plan inception in 1989)	7.9	%

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, 2018 and 2017 by asset category, were as follows:


	Fair Value Measurements at December 31, 2018
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.2	$	6.2	$	—	$	—
Equity securities:
U.S. large-cap		50.6		24.9		25.7		—
U.S. mid- and small-cap		38.4		25.8		12.6		—
International large-cap		18.0		—		18.0		—
International small-cap		8.1		—		8.1		—
Fixed income securities:
U.S. Treasuries		8.0		—		8.0		—
Municipal bonds		0.1		—		0.1		—
Investment grade U.S. corporate bonds		20.8		—		20.8		—
High-yield U.S. corporate bonds		0.5		—		0.5		—
Other types of investments:
Real estate partnership interests		11.6		—		—		11.6
Total	$	162.3	$	56.9	$	93.8	$	11.6


	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		—
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

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, 2018 and 2017:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
(In millions)	Real Estate		Private Equity		Total
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
Actual return (loss) on plan assets:
Assets held at the reporting date		0.5		0.5		1.0
Assets sold during the period		0.5		(0.4)		0.1
Purchases, sales and settlements, net		(0.5)		(0.2)		(0.7)
Balance at December 31, 2018	$	11.6	$	—	$	11.6

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 and 2016, the Company contributed $3.0 million and $7.5 million, respectively, in pension contributions in these plans. There was no pension contribution to these plans in 2018. 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, 2018 and 2017 are shown below:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2018		2017		2018		2017
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	232.1	$	225.4	$	27.7	$	25.2
Service cost		4.4		4.0		0.6		0.5
Interest cost		8.6		9.7		1.0		1.1
Plan participants’ contributions		—		—		0.9		1.1
Plan settlements		—		(0.3)		—		—
Actuarial (gain) loss		(14.1)		13.9		(6.2)		1.9
Benefits paid, net of subsidies received		(12.0)		(18.9)		(1.8)		(2.1)
Expenses paid		(1.6)		(1.7)		—		—
Benefit obligation at end of year		217.4		232.1		22.2		27.7

Change in Plan Assets:
Fair value of plan assets at beginning of year		186.7		178.8		—		—
Actual return on plan assets		(10.9)		25.8		—		—
Plan participants’ contributions		—		—		0.9		1.1
Plan settlements		—		(0.3)		—		—
Employer contributions		—		3.0		0.9		1.0
Benefits paid, net of subsidies received		(12.0)		(18.9)		(1.8)		(2.1)
Expenses paid		(1.6)		(1.7)		—		—
Fair value of plan assets at end of year		162.2		186.7		—		—
Funded Status and Recognized Liability	$	(55.2)	$	(45.4)	$	(22.2)	$	(27.7)

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, 2018 and 2017 were as follows:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2018		2017		2018		2017
Non-current assets	$	0.8	$	0.5	$	—	$	—
Current liabilities		—		—		(1.2)		(1.2)
Non-current liabilities, net		(56.0)		(45.9)		(21.0)		(26.5)
Total	$	(55.2)	$	(45.4)	$	(22.2)	$	(27.7)

Net loss, net of taxes	$	(61.8)	$	(46.9)	$	(0.1)	$	(4.6)
Prior service credit, net of taxes		6.0		6.3		21.8		20.2
Total	$	(55.8)	$	(40.6)	$	21.7	$	15.6

The information for qualified defined benefit pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2018 and 2017 is shown below:


(In millions)	2018		2017
Projected benefit obligation	$	215.9	$	229.9
Accumulated benefit obligation	$	215.6	$	229.6
Fair value of plan assets	$	159.9	$	184.7

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 $2.2 million, net of tax, in 2019. 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 $2.8 million, net of tax, in 2019.

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 2018, 2017, and 2016 were as follows:


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
(In millions)	2018		2017		2016		2018		2017		2016
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$	4.4	$	4.0	$	3.9	$	0.6	$	0.5	$	1.5
Interest cost		8.6		9.7		9.7		1.0		1.1		2.7
Expected return on plan assets		(13.5)		(13.5)		(13.4)		—		—		—
Amortization of net loss		4.6		5.1		5.5		1.5		1.2		1.2
Amortization of prior service credit		(2.3)		(2.3)		(2.3)		(3.8)		(3.8)		(1.4)
Net periodic benefit cost	$	1.8	$	3.0	$	3.4	$	(0.7)	$	(1.0)	$	4.0

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	$	7.8	$	0.8	$	1.6	$	(4.7)	$	1.1	$	1.2
New prior service cost (credit)		—		—		—		—		—		(23.4)
Amortization of net loss		(3.5)		(3.1)		(3.3)		(1.1)		(0.7)		(0.8)
Amortization of prior service credit		1.7		1.4		1.4		2.8		2.3		0.9
Total recognized in other comprehensive (income) loss	$	6.0	$	(0.9)	$	(0.3)	$	(3.0)	$	2.7	$	(22.1)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	7.8	$	2.1	$	3.1	$	(3.7)	$	1.7	$	(18.1)

The weighted average assumptions used to determine benefit information during 2018, 2017, and 2016, were as follows:


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
	2018		2017		2016		2018		2017		2016
Discount rate (1)	4.40	%	3.80	%	4.40	%	4.50	%	3.90	%	4.60	%
Expected return on plan assets	7.50	%	7.75	%	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							6.00	%	6.30	%	6.60	%
Post-65 group							6.30	%	6.80	%	7.20	%
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, 2018, 2017, and 2016 and the net periodic post-retirement benefit cost for 2018, 2017 and 2016, would have increased or decreased as follows:


	Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
(In millions)	2018		2017		2016		2018		2017		2016
Effect on total of service cost and interest cost components	$	0.3	$	0.3	$	0.9	$	(0.2)	$	(0.2)	$	(0.7)
Effect on post-retirement benefit obligation	$	2.6	$	4.0	$	11.5	$	(2.0)	$	(3.0)	$	(8.3)

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, 2018 and 2017 are as follows:


	Non-qualified
	Pension Benefits
	December 31,
(In millions)	2018		2017
Current liabilities	$	(1.8)	$	(1.8)
Non-current liabilities, net		(2.4)		(2.7)
Total	$	(4.2)	$	(4.5)

Net loss, net of taxes	$	(0.4)	$	(0.6)
Prior service credit, net of taxes		0.3		0.3
Total	$	(0.1)	$	(0.3)

Discount rates of 4.0 percent and 3.2 percent were used in determining the 2018 and 2017 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) in 2019 is nominal.

Estimated Benefit Payments: The estimated future benefit payments for the next ten years as of December 31, 2018 were as follows:



			Non-qualified
	Pension		Pension		Post-retirement
Year (in millions)	Benefits		Benefits		Benefits (1)
2019	$	13.2	$	1.8	$	1.2
2020		13.5		0.4		1.1
2021		13.8		—		1.2
2022		14.1		0.3		1.2
2023		14.5		1.8		1.2
2024-2028		75.0		0.1		5.8
Total	$	144.1	$	4.4	$	11.7

(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, 2018, the Company provided matching contributions of up to 3 percent of eligible employee compensation. The Company’s matching contributions expensed in 2018, 2017 and 2016 was $2.4 million, $2.4 million and $2.1 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 2018 and 2017 were $1.4 million and $2.3 million, respectively. There were no discretionary profit sharing contributions expensed 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, 2018, the Company’s estimated benefit plan withdrawal obligations were $244.2 million. Except as described in Note 12, no withdrawal obligations have been recorded by the Company in the Consolidated Balance Sheets at December 31, 2018 and 2017, 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 2018 and 2017 is for the plan’s year-end at December 31, 2018 and 2017, 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

2018

2017

Implemented

Contributor

2018

2017

2016

Imposed

Date (5)

American Radio Association Pension Fund

13-6161999-001

Green

Implemented

Yes

1.0

—

8/15/2021

Hawaii Terminals Multiemployer Pension Plan

20-0389370-001

Yellow

Implemented

Yes

5.7

5.3

6/30/2019

Hawaii Stevedoring Multiemployer Retirement Plan

99-0314293-001

Yellow

Implemented

Yes

4.3

3.8

3.5

6/30/2019

Master, Mates and Pilots Pension Plan

13-6372630-001

Green

Yes

3.0

3.1

6/15/2027,

6/15/2028

Masters, Mates and Pilots Adjustable Pension Plan

37-1719247-001

(1)

Yes

1.7

1.8

6/15/2027,

6/15/2028

MEBA Pension Trust - Defined Benefit Plan

51-6029896-001

(2)

Green

Yes

4.0

4.4

4.1

6/15/2022,

6/15/2028

OCU Trust Pension Plan

26-1574440-001

Green

0.2

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

1.2

0.7

0.6

6/30/2021

Alaska Teamster - Employer Pension Plan

92-6003463-024

(3)

Red

Implemented

Yes

1.9

2.4

2.6

Yes

6/30/2019,

6/30/2020,

6/30/2021

All Alaska Longshore Pension Plan

91-6085352-001

(3)

Green

Yes

1.0

0.1

6/30/2020

Western Conference of Teamsters Pension Plan

91-6145047-001

(3)

Green

1.4

1.3

3/31/2023

Western Conference of Teamsters Supplemental Benefit Trust

95-3746907-001

(3)

Green

—

3/31/2023

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

25.5

24.4

22.7

(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 acquisition of Horizon 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 $30.0 million, $27.0 million and $22.5 million in 2018, 2017 and 2016, 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 $4.8 million, $5.0 million and $5.3 million in 2018, 2017 and 2016, respectively.

MULTI-EMPLOYER WITHDRAWAL LIABILITY

12 Months Ended

Dec. 31, 2018

MULTI-EMPLOYER WITHDRAWAL LIABILITY

MULTI-EMPLOYER WITHDRAWAL LIABILITY

12.MULTI-EMPLOYER WITHDRAWAL LIABILITIES

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 acquisition of Horizon on May 29, 2015. 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, 2018 were as follows:


Year (in millions)	Total
2019	$	4.1
2020		4.1
2021		4.1
2022		4.1
2023		4.1
Thereafter		68.0
Total remaining future undiscounted payments due to the ILA-PRSSA pension fund		88.5
Less: amount representing interest		(27.8)
Present value of multi-employer withdrawal liability		60.7
Current portion of multi-employer withdrawal liability (see Note 2)		(4.1)
Long-term portion of multi-employer withdrawal liability (see Note 2)	$	56.6

Furthermore, the Company assumed a partial withdrawal liability related to the Local 153 Fund of the OPEIU. The partial withdrawal liability resulted from a decline in the number of contribution base units related to the Local 153 Fund caused by Horizon terminating all of its operations in Puerto Rico during the first quarter of 2015. The Company included the estimated partial withdrawal liability of $6.7 million within accruals and other liabilities in the Consolidated Balance Sheet as of December 31, 2018, based upon the expected timing of the payment. The same amount was included in long-term liabilities in the Consolidated Balance Sheet as of December 31, 2017.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2018

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

13.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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, 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)
Reclassification adjustment related to the Tax Act (1)		(9.2)		3.4		(0.2)		—		(6.0)
Amortization of prior service cost		(1.7)		(2.9)		(0.1)		—		(4.7)
Amortization of net loss (gain)		(4.3)		5.6		0.5		(0.7)		1.1
Balance at December 31, 2018	$	(55.8)	$	21.7	$	(0.1)	$	(0.3)	$	(34.5)

(1)

Reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from applying the Tax Act in accordance with ASU 2018-02.

Other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income are shown net of tax benefit (expense) of $0.2 million, $(4.4) million and $(14.2) million for the years ended December 2018, 2017, and 2016, respectively.

EARNINGS PER-SHARE

12 Months Ended

Dec. 31, 2018

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 2018, 2017, and 2016.

The denominator used to compute basic and diluted earnings per share for the years ended December 31, 2018, 2017 and 2016 are as follows:


	Year Ended December 31, 2018					Year Ended December 31, 2017					Year Ended December 31, 2016
			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:	$	109.0	42.7	$	2.55	$	231.0	42.9	$	5.38	$	81.4	43.1	$	1.89
Effect of Dilutive Securities:			0.3		(0.02)			0.3		(0.03)			0.4		(0.02)
Diluted:	$	109.0	43.0	$	2.53	$	231.0	43.2	$	5.35	$	81.4	43.5	$	1.87

SHARE-BASED AWARDS

12 Months Ended

Dec. 31, 2018

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 and all other predecessor plans. No further grants will be made under the predecessor stock option 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 on the one-year anniversary of the grant date.

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.

Share-based compensation expense and other information related to share-based awards for the years ended December 31, 2018, 2017 and 2016 are as follows:


	Years Ended December 31,
Share-based compensation expense, net of estimated forfeitures (in millions)	2018		2017		2016
Share-based compensation expense	$	12.1	$	11.1	$	9.8
Intrinsic value of options exercised	$	0.5	$	0.7	$	2.0
Tax benefit realized upon stock vesting	$	2.7	$	6.8	$	5.9
Fair value of stock vested	$	10.8	$	17.3	$	15.8

As of December 31, 2018, there was no unrecognized compensation cost related to non-vested stock options. As of December 31, 2018, unrecognized compensation cost related to non-vested restricted stock units and performance-based equity awards were $11.6 million. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 1.7 years.

Activity in the Company’s stock option plans for the year ended December 31, 2018, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):


		Weighted		Weighted
		Average		Average	Aggregate
	2007 Plan	Exercise		Contractual	Intrinsic
	Shares	Price		Life	Value
Outstanding at December 31, 2017	235	$	21.54
Exercised	(39)	$	20.18
Outstanding at December 31, 2018	196	$	21.81	2.6	$	1,998
Exercisable at December 31, 2018	196	$	21.81	2.6	$	1,998

The following table summarizes non-vested restricted stock unit activity through December 31, 2018, (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, 2017	377	309	686	$	36.41
Granted	—	384	384	$	31.15
Settlement of Performance Shares (1)	60	—	60	$	36.97
Vested	(268)	(78)	(346)	$	36.24
Canceled	(5)	(20)	(25)	$	34.49
Outstanding at December 31, 2018	164	595	759	$	33.92

(1)

Represents 2015 Performance Shares paid out above target.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2018

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, cash equivalents and restricted cash, and Level 2 inputs for its capital construction fund – cash on deposit, and variable and fixed rate debt. The fair values of cash, cash equivalents and restricted cash, 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, 2018 and 2017 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, 2018		Fair Value Measurements at December 31, 2018
Cash and cash equivalents	$	19.6	$	19.6	$	19.6	$	—	$	—
Restricted cash		4.9		4.9		4.9		—		—
Variable rate debt		235.0		235.0		—		235.0		—
Fixed rate debt		621.4		584.5		—		584.5		—


(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		—

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

17.COMMITMENTS AND CONTINGENCIES

Commitments and contractual obligations, excluding debt obligations (see Note 8), lease commitments (see Note 9), pension and post-retirement plan commitments, and multi-employer bargaining plan withdrawal obligations (see Note 11 and 12), are as follows as of December 31, 2018:


Commitments and Contractual Obligations (in millions)	Total
Standby letters of credit (1)	$	7.9
Bonds (2)	$	33.3
Vessel construction obligations (3)	$	250.6
Vendor and other obligations (4)	$	29.4

(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)

Vessel construction obligations represent remaining contractual obligations entered into for the construction of new vessels.

(4)

Vendor and other obligations include: (i) non-cancellable contractual capital project obligations (excluding vessel construction obligations); (ii) dry-docking related obligations; and (iii) other contractual 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, 2018

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 and accrued interest		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 and accrued interest		(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, 2018, 2017 and 2016 include operating revenue of $66.5 million, $59.1 million and $22.8 million (after elimination of intercompany revenue), and operating income of $16.7 million, $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 de minimis.

Pro Forma Financial Information (Unaudited):

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

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



(In millions, except per-share amount)	Year Ended December 31, 2016
Pro Forma Combined:
Operating revenue	$	1,974.2
Net income after income taxes	$	86.0
Basic Earnings Per-Share:	$	2.00
Diluted Earnings Per-Share:	$	1.98
Weighted-Average Number of Shares Outstanding:
Basic		43.1
Diluted		43.5

QUARTERLY INFORMATION (Unaudited)

12 Months Ended

Dec. 31, 2018

QUARTERLY INFORMATION (Unaudited)

QUARTERLY INFORMATION (Unaudited)

19.QUARTERLY INFORMATION (Unaudited)

Segment results by quarter for 2018 and 2017 are as follows:


	Quarters in the Year Ended December 31, 2018
(In millions, except per-share amounts)	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation	$	379.3	$	406.6	$	437.3	$	418.1
Logistics		132.1		150.5		152.1		146.8
Total Operating Revenue	$	511.4	$	557.1	$	589.4	$	564.9
Operating Income:
Ocean Transportation	$	24.5	$	36.5	$	48.7	$	21.4
Logistics		4.2		9.5		9.9		9.1
Total Operating Income		28.7		46.0		58.6		30.5
Interest expense, net		(5.0)		(5.0)		(4.4)		(4.3)
Other income (expense), net		0.8		0.4		0.7		0.7
Income before Income Taxes		24.5		41.4		54.9		26.9
Income Taxes		(10.3)		(8.8)		(13.3)		(6.3)
Net Income	$	14.2	$	32.6	$	41.6	$	20.6

Basic Earnings Per Share:	$	0.33	$	0.76	$	0.97	$	0.48
Diluted Earnings Per Share:	$	0.33	$	0.76	$	0.97	$	0.48


	Quarters in the Year Ended December 31, 2017
(In millions, except per-share amounts)	Q1		Q2		Q3		Q4 (1)
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	$	15.3	$	40.0	$	51.0	$	20.1
Logistics		1.9		7.0		7.3		4.7
Total Operating Income		17.2		47.0		58.3		24.8
Interest expense, net		(6.3)		(6.3)		(6.2)		(5.4)
Other income (expense), net		(0.8)		(1.1)		3.5		0.5
Income before Income Taxes		10.1		39.6		55.6		19.9
Income Taxes		(3.1)		(15.6)		(21.5)		146.0
Net Income	$	7.0	$	24.0	$	34.1	$	165.9

Basic Earnings Per Share:	$	0.16	$	0.56	$	0.79	$	3.90
Diluted Earnings Per Share:	$	0.16	$	0.55	$	0.79	$	3.88

(1)

Income taxes, net income and per-share amounts were adjusted for an immaterial correction of an error in the quarter ended December 31, 2017 (see Note 2).

The following infrequent transactions impacted the Company’s quarterly segment results during the years ended December 31, 2018 and 2017:


	Quarters in the Year Ended December 31, 2018
(In millions)	Q1		Q2		Q3		Q4
Income taxes - Discrete adjustments related to the Tax Act (1)	$	(3.3)	$	0.2	$	—	$	0.2

(1)

Amounts relate to discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2018.


	Quarters in the Year Ended December 31, 2017
(In millions)	Q1		Q2		Q3		Q4
Income taxes - Remeasurement and discrete adjustments related to the Tax Act (2)	$	—	$	—	$	—	$	154.0

(2)

Amount relates 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.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Fiscal Period

Foreign Currency Transactions

Use of Estimates

Immaterial Correction of an Error in Previously Issued Financial Statements

Cash, Cash Equivalents and Restricted Cash

Accounts Receivable, net

Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2018, 2017 and 2016 were as follows:


	Balance at		Expense		Write-offs		Balance at
Year (in millions)	Beginning of Year		(Recovery) (1)		and Other		End of Year
2018	$	4.6	$	0.8	$	(0.6)	$	4.8
2017	$	4.2	$	1.0	$	(0.6)	$	4.6
2016	$	6.6	$	(0.3)	$	(2.1)	$	4.2

(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, 2018 and 2017:


	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2018		2017
Income tax receivables	$	26.8	$	2.6
Prepaid fuel		16.3		14.4
Prepaid insurance and insurance related receivables		12.6		19.3
Prepaid operating expenses		6.8		6.3
Restricted cash - vessel construction obligations		4.9		—
Other		7.7		9.0
Total	$	75.1	$	51.6

Other Long-Term Assets

Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2018 and 2017:


	As of December 31,
Other Long-Term Assets (in millions)	2018		2017
Income tax receivables	$	21.5	$	50.2
Vessel and equipment spare parts		13.1		12.7
Insurance related receivables		11.2		12.9
Deferred Charges and other		3.7		7.8
Capital construction fund - cash on deposit (see Note 7)		—		0.9
Total	$	49.5	$	84.5

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, 2018 and 2017:


	As of December 31,
Accruals and Other Liabilities (in millions)	2018		2017
Payroll and vacation related accruals	$	25.7	$	24.7
Employee incentives and other related accruals		19.5		17.4
Uninsured risks and related liabilities - short term		9.9		15.4
Deferred revenues		5.7		5.0
Interest on debt		5.1		5.4
Multi-employer withdrawal liabilities - short term (see Note 12)		10.8		4.1
Pension and post-retirement liabilities - short term (see Note 11)		3.0		3.0
Other short-term liabilities		2.2		5.4
Total	$	81.9	$	80.4

Other Long-term Liabilities

Other long-term liabilities: Other long-term liabilities consist of the following at December 31, 2018 and 2017:


	As of December 31,
Other Long-Term Liabilities (in millions)	2018		2017
Pension and post-retirement liabilities (see Note 11)	$	79.4	$	75.1
Multi-employer withdrawal liability (see Note 12)		56.6		65.1
Uninsured risks and related liabilities		27.3		29.5
Other long-term liabilities		14.0		8.5
Total	$	177.3	$	178.2

Pension and Post-Retirement Plans

Uninsured Risks and Related Liabilities

Leases

Recognition of Revenues and Expenses



	Year Ended December 31,
Ocean Transportation (in millions) (1)	2018		2017		2016
Ocean Transportation services	$	1,599.3	$	1,531.8	$	1,504.5
Terminal and other related services		23.0		23.5		22.9
Fuel sales		12.2		9.9		7.5
Vessel management and related services		6.8		6.6		6.2
Total	$	1,641.3	$	1,571.8	$	1,541.1

(1)

Terminal and other related services revenue is recognized as the services are performed.

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.

Vessel management and related services revenue is recognized in proportion to the services completed.



	Year Ended December 31,
Logistics (in millions) (1)	2018		2017		2016
Transportation Brokerage and Freight Forwarding services	$	549.1	$	445.1	$	373.7
Warehouse and distribution services		19.1		17.5		19.7
Supply chain management and other services		13.3		12.5		7.1
Total	$	581.5	$	475.1	$	400.5

(1)

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

Customer Concentration

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

New Accounting Pronouncements:

The Company will adopt ASU 2016-02 effective January 1, 2019 and plans to make the following elections:

The package of practical expedient permitted under the transition guidance which allows the historical lease classification and initial direct costs to be carried forward;

Elect the short-term lease exception which allows the Company to exclude leases with an initial term of one year or less from recognition;

Elect to separate non-lease components; and

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018, 2017 and 2016 were as follows:


	Balance at		Expense		Write-offs		Balance at
Year (in millions)	Beginning of Year		(Recovery) (1)		and Other		End of Year
2018	$	4.6	$	0.8	$	(0.6)	$	4.8
2017	$	4.2	$	1.0	$	(0.6)	$	4.6
2016	$	6.6	$	(0.3)	$	(2.1)	$	4.2

(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, 2018 and 2017:


	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2018		2017
Income tax receivables	$	26.8	$	2.6
Prepaid fuel		16.3		14.4
Prepaid insurance and insurance related receivables		12.6		19.3
Prepaid operating expenses		6.8		6.3
Restricted cash - vessel construction obligations		4.9		—
Other		7.7		9.0
Total	$	75.1	$	51.6

Schedule of other long-term assets

Other long-term assets consist of the following at December 31, 2018 and 2017:


	As of December 31,
Other Long-Term Assets (in millions)	2018		2017
Income tax receivables	$	21.5	$	50.2
Vessel and equipment spare parts		13.1		12.7
Insurance related receivables		11.2		12.9
Deferred Charges and other		3.7		7.8
Capital construction fund - cash on deposit (see Note 7)		—		0.9
Total	$	49.5	$	84.5

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, 2018 and 2017:


	As of December 31,
Accruals and Other Liabilities (in millions)	2018		2017
Payroll and vacation related accruals	$	25.7	$	24.7
Employee incentives and other related accruals		19.5		17.4
Uninsured risks and related liabilities - short term		9.9		15.4
Deferred revenues		5.7		5.0
Interest on debt		5.1		5.4
Multi-employer withdrawal liabilities - short term (see Note 12)		10.8		4.1
Pension and post-retirement liabilities - short term (see Note 11)		3.0		3.0
Other short-term liabilities		2.2		5.4
Total	$	81.9	$	80.4

Schedule of other long-term liabilities

Other long-term liabilities consist of the following at December 31, 2018 and 2017:


	As of December 31,
Other Long-Term Liabilities (in millions)	2018		2017
Pension and post-retirement liabilities (see Note 11)	$	79.4	$	75.1
Multi-employer withdrawal liability (see Note 12)		56.6		65.1
Uninsured risks and related liabilities		27.3		29.5
Other long-term liabilities		14.0		8.5
Total	$	177.3	$	178.2

Ocean Transportation

Schedule of principal revenue generating activities by segment



	Year Ended December 31,
Ocean Transportation (in millions) (1)	2018		2017		2016
Ocean Transportation services	$	1,599.3	$	1,531.8	$	1,504.5
Terminal and other related services		23.0		23.5		22.9
Fuel sales		12.2		9.9		7.5
Vessel management and related services		6.8		6.6		6.2
Total	$	1,641.3	$	1,571.8	$	1,541.1

(1)

Logistics

Schedule of principal revenue generating activities by segment



	Year Ended December 31,
Logistics (in millions) (1)	2018		2017		2016
Transportation Brokerage and Freight Forwarding services	$	549.1	$	445.1	$	373.7
Warehouse and distribution services		19.1		17.5		19.7
Supply chain management and other services		13.3		12.5		7.1
Total	$	581.5	$	475.1	$	400.5

(1)

REPORTABLE SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2018

REPORTABLE SEGMENTS

Schedule of reportable segment information

	Years Ended December 31,
(In millions)	2018		2017		2016
Operating Revenue:
Ocean Transportation	$	1,641.3	$	1,571.8	$	1,541.1
Logistics		581.5		475.1		400.5
Total Operating Revenue	$	2,222.8	$	2,046.9	$	1,941.6
Operating Income:
Ocean Transportation (1)	$	131.1	$	126.4	$	144.5
Logistics (2)		32.7		20.9		12.2
Total Operating Income		163.8		147.3		156.7
Interest expense, net		(18.7)		(24.2)		(24.1)
Other income (expense), net		2.6		2.1		(2.1)
Income before Income Taxes		147.7		125.2		130.5
Income taxes (3)		(38.7)		105.8		(49.1)
Net Income (3)	$	109.0	$	231.0	$	81.4

Capital Expenditures:
Ocean Transportation	$	385.4	$	305.3	$	179.1
Logistics		15.8		1.7		0.3
Total Capital Expenditures	$	401.2	$	307.0	$	179.4

Depreciation and Amortization:
Ocean Transportation	$	87.0	$	93.3	$	92.6
Logistics		7.4		7.9		4.5
		94.4		101.2		97.1
Deferred dry-docking amortization - Ocean Transportation		37.4		46.2		38.9
Total Depreciation and Amortization	$	131.8	$	147.4	$	136.0

(1)

(2)

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

(3)

Income taxes and net income were adjusted for an immaterial correction of an error for the year ended December 31, 2017 (see Note 2).


	As of December 31,
(In millions)	2018		2017
Identifiable Assets:
Ocean Transportation (1) (2)	$	2,071.6	$	1,941.5
Logistics		358.8		310.1
Total Assets (2)	$	2,430.4	$	2,251.6

(1)

The Ocean Transportation segment includes $87.0 million and $93.2 million related to the Company’s equity investment in SSAT as of December 31, 2018 and 2017, respectively.

(2)

Amounts as of December 31, 2017 have been adjusted for an immaterial correction of an error (see Note 2).

INVESTMENT IN TERMINAL JOINT VENTURE (Tables)

12 Months Ended

Dec. 31, 2018

INVESTMENT IN TERMINAL JOINT VENTURE

Schedule of condensed income statement information (unaudited) for Terminal Joint Venture


	Years Ended December 31,
(In millions)	2018		2017		2016
Company's share of net income	$	36.8	$	28.2	$	15.8
Distributions received	$	42.0	$	17.5	$	—

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

A summary of the condensed balance sheets of SSAT at December 31, 2018 and 2017 is as follows:


	As of December 31,
Condensed Balance Sheets (in millions)	2018		2017
Current assets	$	310.4	$	181.0
Non-current assets		152.1		161.8
Total Assets	$	462.5	$	342.8

Current liabilities	$	71.0	$	65.3
Non-current liabilities		156.2		23.8
Equity		235.3		253.7
Total Liabilities and Equity	$	462.5	$	342.8

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 (in millions)	2018		2017		2016
Operating revenue	$	1,074.2	$	933.5	$	740.9
Operating costs and expenses		963.7		850.2		706.5
Operating income		110.5		83.3		34.4
Net Income (1)	$	104.9	$	80.9	$	45.1

(1)Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests.

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

PROPERTY AND EQUIPMENT

Schedule of property and equipment


	As of December 31, 2018						As of December 31, 2017
			Accumulated						Accumulated
(In millions)	Cost		Depreciation		Net Book Value		Cost		Depreciation		Net Book Value
Vessels	$	1,489.2		847.1	$	642.1	$	1,433.6	$	893.2	$	540.4
Containers and equipment		513.6		362.9		150.7		543.0		349.0		194.0
Terminal facilities and other property		66.0		38.6		27.4		64.8		36.3		28.5
Vessel construction in progress		487.2		—		487.2		376.6		—		376.6
Other construction in progress		59.2		—		59.2		26.2		—		26.2
Total	$	2,615.2	$	1,248.6	$	1,366.6	$	2,444.2	$	1,278.5	$	1,165.7

Schedule of depreciation expense


	Years Ended December 31,
(In millions)	2018		2017		2016
Depreciation expense	$	80.5	$	86.7	$	86.0

GOODWILL AND INTANGIBLES ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

GOODWILL AND INTANGIBLES ASSETS

Schedule of goodwill

Goodwill by segment as of December 31, 2018 and 2017 consist of the following:


	Ocean
(In millions)	Transportation		Logistics		Total
Goodwill	$	222.6	$	105.2	$	327.8

Schedule of intangible assets


	As of December 31, 2018						As of December 31, 2017
	Gross		Accumulated				Gross		Accumulated
(In millions)	Amount		Amortization		Net Book Value		Amount		Amortization		Net Book Value
Ocean Transportation - Customer relationships	$	140.6	$	24.4	$	116.2	$	140.6	$	17.8	$	122.8
Logistics:
Customer relationships		90.1		19.6		70.5		90.1		15.0		75.1
Trade name		27.3		—		27.3		27.3		—		27.3
Total Logistics		117.4		19.6		97.8		117.4		15.0		102.4
Total	$	258.0	$	44.0	$	214.0	$	258.0	$	32.8	$	225.2

Schedule of intangible asset related amortization expense


	Years Ended December 31,
(In millions)	2018		2017		2016
Amortization expense	$	11.2	$	11.4	$	9.1

Schedule of estimated amortization expenses related to intangible assets

As of December 31, 2018, estimated amortization expense related to customer relationships intangible assets during the next five years and thereafter are as follows:


	Customer
Year (in millions)	Relationships
2019	$	11.0
2020		11.0
2021		10.9
2022		10.7
2023		10.7
Thereafter		132.4
Total	$	186.7

DEBT (Tables)

12 Months Ended

Dec. 31, 2018

DEBT

Schedule of debt

At December 31, 2018 and 2017, the Company’s debt consisted of the following:


	As of December 31,
(In millions)	2018		2017
Private Placement Term Loans:
5.79 %, payable through 2020	$	10.5	$	17.5
3.66 %, payable through 2023		41.0		50.1
4.16 %, payable through 2027		44.5		49.8
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		200.0		200.0
4.31 %, payable through 2032		32.7		35.1
4.35 %, payable through 2044		100.0		100.0
3.92 %, payable through 2045		71.4		73.2
Title XI Bonds:
5.34 %, payable through 2028		22.0		24.2
5.27 %, payable through 2029		24.2		26.4
Revolving credit facility, maturity date of June 29, 2022		235.0		205.0
Capital leases		0.1		0.8
Total Debt		856.4		857.1
Less: Current portion		(42.1)		(30.8)
Total Long-term Debt	$	814.3	$	826.3

Schedule of maturities of debt

At December 31, 2018, debt maturities during the next five years and thereafter are as follows:


Year (in millions)	Total
2019	$	42.1
2020		48.4
2021		54.2
2022		294.9
2023		59.9
Thereafter		356.9
Total debt	$	856.4

- 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, 2018

LEASES

Schedule of minimum lease terms of the non-cancelable operating leases


Lease Type:		Life
Real estate and terminal leases		65 years
Vessel charter leases		10 years
Operations equipment and other leases		8 years

Schedule of rent expense


	Years Ended December 31,
(In millions)	2018		2017		2016
Real estate and terminal leases	$	25.6	$	26.4	$	25.4
Vessel charter leases		21.4		21.4		16.4
Operations equipment and other leases		26.8		26.0		27.9
Other rent expense		68.1		54.9		49.9
Total	$	141.9	$	128.7	$	119.6

Schedule of future minimum payments under operating leases

Future minimum payments under operating lease agreements at December 31, 2018 are as follows:


Year (in millions)	Total
2019	$	68.3
2020		59.2
2021		44.8
2022		34.7
2023		30.5
Thereafter		83.6
Total minimum lease payments	$	321.1

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Schedule of income tax expense


	Years Ended December 31,
(In millions)	2018		2017		2016
Current:
Federal	$	2.4	$	21.6	$	10.5
State		2.1		2.2		(1.3)
Discrete adjustments related to the Tax Act (1)		2.9		—		—
Total		7.4		23.8		9.2
Deferred:
Deferred tax expense		31.3		24.4		39.9
Remeasurement and discrete adjustments related to the Tax Act (2)		—		(154.0)		—
Total		31.3		(129.6)		39.9
Total income taxes	$	38.7	$	(105.8)	$	49.1

(1)

(2)

Schedule of effective income tax rate


	Years Ended December 31,
	2018		2017		2016
Computed federal income tax expense	21.0	%	35.0	%	35.0	%
State income tax	3.4	%	2.6	%	1.8	%
Valuation allowance	(0.7)	%	1.4	%	0.3	%
Foreign taxes	0.6	%	0.1	%	0.4	%
Remeasurement and discrete adjustments related to the Tax Act (1)	2.0	%	(123.0)	%	—	%
Share-based payments	0.1	%	(1.4)	%	—	%
Other — net	(0.2)	%	0.8	%	0.1	%
Effective income tax rate	26.2	%	(84.5)	%	37.6	%

Schedule of tax effects of temporary differences

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017, were as follows:


	As of December 31,
(In millions)	2018		2017
Deferred tax assets:
Benefit plans	$	45.6	$	44.2
Federal net operating losses		15.2		21.6
Insurance reserves		5.6		6.8
State net operating losses		7.4		7.4
Foreign losses		5.1		6.6
U.S. State alternative minimum tax credits		5.9		4.2
Allowance for doubtful accounts		1.1		0.9
Other		1.8		1.9
Total deferred tax assets		87.7		93.6
Valuation allowance		(11.5)		(13.0)
Total deferred tax assets, net of valuation allowance		76.2		80.6

Deferred tax liabilities:
Basis differences for property and equipment		302.1		254.4
Lease financing		26.0		—
Capital Construction Fund		7.0		54.2
Intangibles		38.4		36.4
Deferred revenue		3.0		6.9
Terminal Joint Venture investment		11.4		9.6
Reserves		1.0		2.7
Total deferred tax liabilities		388.9		364.2
Deferred tax liability, net	$	312.7	$	283.6

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


(In millions)	Expiration Date	2018		2017
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	74.5	$	183.8
U.S. State income tax NOLs	Various dates beginning in 2032	$	189.2	$	192.3
Foreign income tax NOLs	No expiration date	$	18.4	$	23.7
U.S. State alternative minimum tax credit	No expiration date	$	5.9	$	4.2

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, 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
Changes in tax positions of prior years, net		(0.3)
Reductions for lapse of statute of limitations		(0.5)
Balance at December 31, 2018	$	15.1

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

PENSION AND POST-RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

PENSION AND POST-RETIREMENT PLANS

Schedule of the Company's target and actual asset allocations


Asset Categories	Target		2018		2017
Domestic equity securities	53	%	57	%	59	%
International equity securities	15	%	16	%	17	%
Debt securities	22	%	19	%	17	%
Real estate	5	%	7	%	6	%
Other and cash	5	%	1	%	1	%
Total	100	%	100	%	100	%

Schedule of the Company's actual return on plan assets


Actual Return on Plan Assets	Returns
One-year return	(6.5)	%
Three-year return	5.1	%
Five-year return	3.8	%
Long-term average return (since plan inception in 1989)	7.9	%

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, 2018 and 2017 by asset category, were as follows:


	Fair Value Measurements at December 31, 2018
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.2	$	6.2	$	—	$	—
Equity securities:
U.S. large-cap		50.6		24.9		25.7		—
U.S. mid- and small-cap		38.4		25.8		12.6		—
International large-cap		18.0		—		18.0		—
International small-cap		8.1		—		8.1		—
Fixed income securities:
U.S. Treasuries		8.0		—		8.0		—
Municipal bonds		0.1		—		0.1		—
Investment grade U.S. corporate bonds		20.8		—		20.8		—
High-yield U.S. corporate bonds		0.5		—		0.5		—
Other types of investments:
Real estate partnership interests		11.6		—		—		11.6
Total	$	162.3	$	56.9	$	93.8	$	11.6


	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		—
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

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, 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
Actual return (loss) on plan assets:
Assets held at the reporting date		0.5		0.5		1.0
Assets sold during the period		0.5		(0.4)		0.1
Purchases, sales and settlements, net		(0.5)		(0.2)		(0.7)
Balance at December 31, 2018	$	11.6	$	—	$	11.6

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, 2018 and 2017 are shown below:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2018		2017		2018		2017
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	232.1	$	225.4	$	27.7	$	25.2
Service cost		4.4		4.0		0.6		0.5
Interest cost		8.6		9.7		1.0		1.1
Plan participants’ contributions		—		—		0.9		1.1
Plan settlements		—		(0.3)		—		—
Actuarial (gain) loss		(14.1)		13.9		(6.2)		1.9
Benefits paid, net of subsidies received		(12.0)		(18.9)		(1.8)		(2.1)
Expenses paid		(1.6)		(1.7)		—		—
Benefit obligation at end of year		217.4		232.1		22.2		27.7

Change in Plan Assets:
Fair value of plan assets at beginning of year		186.7		178.8		—		—
Actual return on plan assets		(10.9)		25.8		—		—
Plan participants’ contributions		—		—		0.9		1.1
Plan settlements		—		(0.3)		—		—
Employer contributions		—		3.0		0.9		1.0
Benefits paid, net of subsidies received		(12.0)		(18.9)		(1.8)		(2.1)
Expenses paid		(1.6)		(1.7)		—		—
Fair value of plan assets at end of year		162.2		186.7		—		—
Funded Status and Recognized Liability	$	(55.2)	$	(45.4)	$	(22.2)	$	(27.7)

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)	2018		2017		2018		2017
Non-current assets	$	0.8	$	0.5	$	—	$	—
Current liabilities		—		—		(1.2)		(1.2)
Non-current liabilities, net		(56.0)		(45.9)		(21.0)		(26.5)
Total	$	(55.2)	$	(45.4)	$	(22.2)	$	(27.7)

Net loss, net of taxes	$	(61.8)	$	(46.9)	$	(0.1)	$	(4.6)
Prior service credit, net of taxes		6.0		6.3		21.8		20.2
Total	$	(55.8)	$	(40.6)	$	21.7	$	15.6

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, 2018 and 2017 is shown below:


(In millions)	2018		2017
Projected benefit obligation	$	215.9	$	229.9
Accumulated benefit obligation	$	215.6	$	229.6
Fair value of plan assets	$	159.9	$	184.7

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)	2018		2017		2016		2018		2017		2016
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$	4.4	$	4.0	$	3.9	$	0.6	$	0.5	$	1.5
Interest cost		8.6		9.7		9.7		1.0		1.1		2.7
Expected return on plan assets		(13.5)		(13.5)		(13.4)		—		—		—
Amortization of net loss		4.6		5.1		5.5		1.5		1.2		1.2
Amortization of prior service credit		(2.3)		(2.3)		(2.3)		(3.8)		(3.8)		(1.4)
Net periodic benefit cost	$	1.8	$	3.0	$	3.4	$	(0.7)	$	(1.0)	$	4.0

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	$	7.8	$	0.8	$	1.6	$	(4.7)	$	1.1	$	1.2
New prior service cost (credit)		—		—		—		—		—		(23.4)
Amortization of net loss		(3.5)		(3.1)		(3.3)		(1.1)		(0.7)		(0.8)
Amortization of prior service credit		1.7		1.4		1.4		2.8		2.3		0.9
Total recognized in other comprehensive (income) loss	$	6.0	$	(0.9)	$	(0.3)	$	(3.0)	$	2.7	$	(22.1)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	7.8	$	2.1	$	3.1	$	(3.7)	$	1.7	$	(18.1)

Schedule of weighted average assumptions used to determine benefit information


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
	2018		2017		2016		2018		2017		2016
Discount rate (1)	4.40	%	3.80	%	4.40	%	4.50	%	3.90	%	4.60	%
Expected return on plan assets	7.50	%	7.75	%	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							6.00	%	6.30	%	6.60	%
Post-65 group							6.30	%	6.80	%	7.20	%
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)	2018		2017		2016		2018		2017		2016
Effect on total of service cost and interest cost components	$	0.3	$	0.3	$	0.9	$	(0.2)	$	(0.2)	$	(0.7)
Effect on post-retirement benefit obligation	$	2.6	$	4.0	$	11.5	$	(2.0)	$	(3.0)	$	(8.3)

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, 2018 and 2017 are as follows:


	Non-qualified
	Pension Benefits
	December 31,
(In millions)	2018		2017
Current liabilities	$	(1.8)	$	(1.8)
Non-current liabilities, net		(2.4)		(2.7)
Total	$	(4.2)	$	(4.5)

Net loss, net of taxes	$	(0.4)	$	(0.6)
Prior service credit, net of taxes		0.3		0.3
Total	$	(0.1)	$	(0.3)

Schedule of estimated benefit payments

The estimated future benefit payments for the next ten years as of December 31, 2018 were as follows:



			Non-qualified
	Pension		Pension		Post-retirement
Year (in millions)	Benefits		Benefits		Benefits (1)
2019	$	13.2	$	1.8	$	1.2
2020		13.5		0.4		1.1
2021		13.8		—		1.2
2022		14.1		0.3		1.2
2023		14.5		1.8		1.2
2024-2028		75.0		0.1		5.8
Total	$	144.1	$	4.4	$	11.7

(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

2018

2017

Implemented

Contributor

2018

2017

2016

Imposed

Date (5)

American Radio Association Pension Fund

13-6161999-001

Green

Implemented

Yes

1.0

—

8/15/2021

Hawaii Terminals Multiemployer Pension Plan

20-0389370-001

Yellow

Implemented

Yes

5.7

5.3

6/30/2019

Hawaii Stevedoring Multiemployer Retirement Plan

99-0314293-001

Yellow

Implemented

Yes

4.3

3.8

3.5

6/30/2019

Master, Mates and Pilots Pension Plan

13-6372630-001

Green

Yes

3.0

3.1

6/15/2027,

6/15/2028

Masters, Mates and Pilots Adjustable Pension Plan

37-1719247-001

(1)

Yes

1.7

1.8

6/15/2027,

6/15/2028

MEBA Pension Trust - Defined Benefit Plan

51-6029896-001

(2)

Green

Yes

4.0

4.4

4.1

6/15/2022,

6/15/2028

OCU Trust Pension Plan

26-1574440-001

Green

0.2

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

1.2

0.7

0.6

6/30/2021

Alaska Teamster - Employer Pension Plan

92-6003463-024

(3)

Red

Implemented

Yes

1.9

2.4

2.6

Yes

6/30/2019,

6/30/2020,

6/30/2021

All Alaska Longshore Pension Plan

91-6085352-001

(3)

Green

Yes

1.0

0.1

6/30/2020

Western Conference of Teamsters Pension Plan

91-6145047-001

(3)

Green

1.4

1.3

3/31/2023

Western Conference of Teamsters Supplemental Benefit Trust

95-3746907-001

(3)

Green

—

3/31/2023

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

25.5

24.4

22.7

(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 acquisition of Horizon 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, 2018

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, 2018 were as follows:


Year (in millions)	Total
2019	$	4.1
2020		4.1
2021		4.1
2022		4.1
2023		4.1
Thereafter		68.0
Total remaining future undiscounted payments due to the ILA-PRSSA pension fund		88.5
Less: amount representing interest		(27.8)
Present value of multi-employer withdrawal liability		60.7
Current portion of multi-employer withdrawal liability (see Note 2)		(4.1)
Long-term portion of multi-employer withdrawal liability (see Note 2)	$	56.6

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2018

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, 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)
Reclassification adjustment related to the Tax Act (1)		(9.2)		3.4		(0.2)		—		(6.0)
Amortization of prior service cost		(1.7)		(2.9)		(0.1)		—		(4.7)
Amortization of net loss (gain)		(4.3)		5.6		0.5		(0.7)		1.1
Balance at December 31, 2018	$	(55.8)	$	21.7	$	(0.1)	$	(0.3)	$	(34.5)

(1)

Reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from applying the Tax Act in accordance with ASU 2018-02.

EARNINGS PER-SHARE (Tables)

12 Months Ended

Dec. 31, 2018

EARNINGS PER-SHARE

Schedule of basic and diluted earnings per share


	Year Ended December 31, 2018					Year Ended December 31, 2017					Year Ended December 31, 2016
			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:	$	109.0	42.7	$	2.55	$	231.0	42.9	$	5.38	$	81.4	43.1	$	1.89
Effect of Dilutive Securities:			0.3		(0.02)			0.3		(0.03)			0.4		(0.02)
Diluted:	$	109.0	43.0	$	2.53	$	231.0	43.2	$	5.35	$	81.4	43.5	$	1.87

SHARE-BASED AWARDS (Tables)

12 Months Ended

Dec. 31, 2018

SHARE-BASED AWARDS

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


	Years Ended December 31,
Share-based compensation expense, net of estimated forfeitures (in millions)	2018		2017		2016
Share-based compensation expense	$	12.1	$	11.1	$	9.8
Intrinsic value of options exercised	$	0.5	$	0.7	$	2.0
Tax benefit realized upon stock vesting	$	2.7	$	6.8	$	5.9
Fair value of stock vested	$	10.8	$	17.3	$	15.8

Stock Option Activity

Activity in the Company’s stock option plans for the year ended December 31, 2018, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):


		Weighted		Weighted
		Average		Average	Aggregate
	2007 Plan	Exercise		Contractual	Intrinsic
	Shares	Price		Life	Value
Outstanding at December 31, 2017	235	$	21.54
Exercised	(39)	$	20.18
Outstanding at December 31, 2018	196	$	21.81	2.6	$	1,998
Exercisable at December 31, 2018	196	$	21.81	2.6	$	1,998

Non-Vested Restricted Stock Unit Activity

The following table summarizes non-vested restricted stock unit activity through December 31, 2018, (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, 2017	377	309	686	$	36.41
Granted	—	384	384	$	31.15
Settlement of Performance Shares (1)	60	—	60	$	36.97
Vested	(268)	(78)	(346)	$	36.24
Canceled	(5)	(20)	(25)	$	34.49
Outstanding at December 31, 2018	164	595	759	$	33.92

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

FAIR VALUE MEASUREMENTS

Schedule of fair value measurement


					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, 2018		Fair Value Measurements at December 31, 2018
Cash and cash equivalents	$	19.6	$	19.6	$	19.6	$	—	$	—
Restricted cash		4.9		4.9		4.9		—		—
Variable rate debt		235.0		235.0		—		235.0		—
Fixed rate debt		621.4		584.5		—		584.5		—


(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		—

- 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, 2018

COMMITMENTS AND CONTINGENCIES

Schedule of Commitments and Contractual Obligations


Commitments and Contractual Obligations (in millions)	Total
Standby letters of credit (1)	$	7.9
Bonds (2)	$	33.3
Vessel construction obligations (3)	$	250.6
Vendor and other obligations (4)	$	29.4

(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)

Vessel construction obligations represent remaining contractual obligations entered into for the construction of 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) - Span Alaska

12 Months Ended

Dec. 31, 2018

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 and accrued interest		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 and accrued interest		(81.9)
Total identifiable assets less liabilities		38.4
Total consideration for membership interests		(117.0)
Goodwill	$	78.6

Schedule of pro forma financial information



(In millions, except per-share amount)	Year Ended December 31, 2016
Pro Forma Combined:
Operating revenue	$	1,974.2
Net income after income taxes	$	86.0
Basic Earnings Per-Share:	$	2.00
Diluted Earnings Per-Share:	$	1.98
Weighted-Average Number of Shares Outstanding:
Basic		43.1
Diluted		43.5

QUARTERLY INFORMATION (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

QUARTERLY INFORMATION (Unaudited)

Schedule of quarterly financial information

	Quarters in the Year Ended December 31, 2018
(In millions, except per-share amounts)	Q1		Q2		Q3		Q4
Operating Revenue:
Ocean Transportation	$	379.3	$	406.6	$	437.3	$	418.1
Logistics		132.1		150.5		152.1		146.8
Total Operating Revenue	$	511.4	$	557.1	$	589.4	$	564.9
Operating Income:
Ocean Transportation	$	24.5	$	36.5	$	48.7	$	21.4
Logistics		4.2		9.5		9.9		9.1
Total Operating Income		28.7		46.0		58.6		30.5
Interest expense, net		(5.0)		(5.0)		(4.4)		(4.3)
Other income (expense), net		0.8		0.4		0.7		0.7
Income before Income Taxes		24.5		41.4		54.9		26.9
Income Taxes		(10.3)		(8.8)		(13.3)		(6.3)
Net Income	$	14.2	$	32.6	$	41.6	$	20.6

Basic Earnings Per Share:	$	0.33	$	0.76	$	0.97	$	0.48
Diluted Earnings Per Share:	$	0.33	$	0.76	$	0.97	$	0.48


	Quarters in the Year Ended December 31, 2017
(In millions, except per-share amounts)	Q1		Q2		Q3		Q4 (1)
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	$	15.3	$	40.0	$	51.0	$	20.1
Logistics		1.9		7.0		7.3		4.7
Total Operating Income		17.2		47.0		58.3		24.8
Interest expense, net		(6.3)		(6.3)		(6.2)		(5.4)
Other income (expense), net		(0.8)		(1.1)		3.5		0.5
Income before Income Taxes		10.1		39.6		55.6		19.9
Income Taxes		(3.1)		(15.6)		(21.5)		146.0
Net Income	$	7.0	$	24.0	$	34.1	$	165.9

Basic Earnings Per Share:	$	0.16	$	0.56	$	0.79	$	3.90
Diluted Earnings Per Share:	$	0.16	$	0.55	$	0.79	$	3.88

(1)

Income taxes, net income and per-share amounts were adjusted for an immaterial correction of an error in the quarter ended December 31, 2017 (see Note 2).

Schedule of infrequent transactions impacting the segment results


	Quarters in the Year Ended December 31, 2018
(In millions)	Q1		Q2		Q3		Q4
Income taxes - Discrete adjustments related to the Tax Act (1)	$	(3.3)	$	0.2	$	—	$	0.2

(1)

Amounts relate to discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2018.


	Quarters in the Year Ended December 31, 2017
(In millions)	Q1		Q2		Q3		Q4
Income taxes - Remeasurement and discrete adjustments related to the Tax Act (2)	$	—	$	—	$	—	$	154.0

Amount relates 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.

DESCRIPTION OF THE BUSINESS (Details)	12 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Dec. 31, 2018 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 \| 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, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other long-term liabilities	$ 177.3				$ 178.2				$ 177.3	$ 178.2
Goodwill	327.8				327.8				327.8	327.8
Income tax expense	6.3	$ 13.3	$ 8.8	$ 10.3	(146.0)	$ 21.5	$ 15.6	$ 3.1	38.7	(105.8)	$ 49.1
Net Income	20.6	$ 41.6	$ 32.6	$ 14.2	165.9	$ 34.1	$ 24.0	$ 7.0	109.0	231.0	$ 81.4
Ocean Transportation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Goodwill	$ 222.6								$ 222.6
Adjustments \| Revision of Defined Benefit Plan Liabilities
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other long-term liabilities												$ 6.7
Deferred income taxes					$ 1.0					1.0		(2.6)
Goodwill												$ 4.1
Income tax expense										1.0
Net Income										$ (1.0)

SIGNIFICANT ACCOUNTING POLICIES - CASH AND ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents
Outstanding checks in excess of funds on deposits	$ 16.4	$ 18.7
Restricted cash	4.9	0.0
Accounts Receivable
Eligible accounts receivable assigned to CCF	1.0	134.8
Allowance for doubtful accounts
Balance at Beginning of year	4.6	4.2	$ 6.6
Expense (Recovery)	0.8	1.0	(0.3)
Write-offs and Other	(0.6)	(0.6)	(2.1)
Balance at End of Year	4.8	4.6	$ 4.2
Prepaid and Other Assets:
Income tax receivables	26.8	2.6
Prepaid fuel	16.3	14.4
Prepaid insurance and insurance related receivables	12.6	19.3
Prepaid operating expenses	6.8	6.3
Restricted cash - vessel construction obligations	4.9	0.0
Other	7.7	9.0
Total	75.1	51.6
Other Long-term Assets
Alternative minimum tax (AMT) receivable	21.5	50.2
Vessel and equipment spare parts	13.1	12.7
Insurance related receivables	11.2	12.9
Deferred Charges and other	3.7	7.8
Capital construction fund - cash on deposit		0.9
Other long-term assets	$ 49.5	$ 84.5

SIGNIFICANT ACCOUNTING POLICIES - PROPERTY AND EQUIPMENT AND OTHER (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Impairment of Investment
Impairment charges related to investment in Terminal joint venture	$ 0.0	$ 0.0	$ 0.0
Capitalized Interest
Interest Costs Capitalized	$ 18.7	$ 7.5	$ 2.1
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
Long-lived Assets
Number of vesels under agreements for contstruction \| item	4
Capitalized Interest
Interest Costs Capitalized	$ 12.8
Machinery And Equipment
Depreciation
Useful life	30 years
Terminal Facilities
Depreciation
Useful life	35 years

SIGNIFICANT ACCOUNTING POLICIES - ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions	12 Months Ended			36 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
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	$ 0.0
Accrued and other liabilities
Payroll and vacation related accruals	25.7	24.7		25.7
Employee incentives and other related accruals	19.5	17.4		19.5
Uninsured risks and related liabilities - short term	9.9	15.4		9.9
Deferred revenues	5.7	5.0		5.7
Interest on debt	5.1	5.4		5.1
Multi-employer withdrawal liability - short-term (see Note 12)	10.8	4.1		10.8
Pension and post-retirement liabilities - short term (see Note 11)	3.0	3.0		3.0
Other liabilities	2.2	5.4		2.2
Total	81.9	80.4		81.9
Other long-term liabilities
Pension and post-retirement liabilities (see Note 11)	79.4	75.1		79.4
Multi-employer withdrawal liabilitiy (see Note 12)	56.6	65.1		56.6
Uninsured risks and related liabilities	27.3	29.5		27.3
Other long-term liabilities	14.0	8.5		14.0
Total	$ 177.3	$ 178.2		$ 177.3
Customer Relationships. \| Minimum
Intangible assets
Expected useful lives	3 years
Customer Relationships. \| Maximum
Intangible assets
Expected useful lives	21 years

SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Vessel management and related services									$ 6.8	$ 6.6	$ 6.2
Total	$ 564.9	$ 589.4	$ 557.1	$ 511.4	$ 516.1	$ 543.9	$ 512.5	$ 474.4	2,222.8	2,046.9	1,941.6
Ocean Transportation
Total	418.1	437.3	406.6	379.3	389.9	419.2	392.7	370.0
Logistics
Total	$ 146.8	$ 152.1	$ 150.5	$ 132.1	$ 126.2	$ 124.7	$ 119.8	$ 104.4
Ocean Transportation
Ocean Transportation services									1,599.3	1,531.8	1,504.5
Terminal and other related services									23.0	23.5	22.9
Fuel sales									$ 12.2	9.9	7.5
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency									3.00%
Total									$ 1,641.3	1,571.8	1,541.1
Logistics
Transportation Brokerage and Freight Forwarding Services									549.1	445.1	373.7
Warehouse and distribution services									19.1	17.5	19.7
Supply chain management and other services									13.3	12.5	7.1
Total									$ 581.5	$ 475.1	$ 400.5
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency									3.00%

SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER CONCENTRATION (Details) - Serves customers - customer	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Ocean Transportation
Number of largest customers	10
Number of customers	0
Ocean Transportation \| Revenue
Concentration percentage	24.00%	23.00%	24.00%
Logistics
Number of largest customers	10
Number of customers	0
Logistics \| Revenue
Concentration percentage	23.00%	19.00%	22.00%

SIGNIFICANT ACCOUNTING POLICIES - NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions		3 Months Ended								12 Months Ended
	Jan. 01, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss, net		$ (34.5)				$ (24.9)				$ (34.5)	$ (24.9)
Retained earnings		460.0				380.5				460.0	380.5
Other income (expense), net		$ 0.7	$ 0.7	$ 0.4	$ 0.8	$ 0.5	$ 3.5	$ (1.1)	$ (0.8)	2.6	2.1	$ (2.1)
Accounting Standards Update 2018-02 \| Adjustments for New Accounting Principle, Early Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss, net					(6.0)
Retained earnings					$ 6.0
Accounting Standards Update 2017-07 \| Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other income (expense), net										$ 2.1	$ 2.1
Accounting Standards Update 2016-02 \| Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset	$ 252.9
Current lease liability	54.2
Long-term lease liability	206.4
Retained earnings	$ 5.9

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended								12 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Segment results
Number of reportable segments \| segment									2
Fiscal Period Duration									364 days	364 days	371 days
Total Operating Revenue	$ 564.9	$ 589.4	$ 557.1	$ 511.4	$ 516.1	$ 543.9	$ 512.5	$ 474.4	$ 2,222.8	$ 2,046.9	$ 1,941.6
Operating Income	30.5	58.6	46.0	28.7	24.8	58.3	47.0	17.2	163.8	147.3	156.7
Interest expense, net	(4.3)	(4.4)	(5.0)	(5.0)	(5.4)	(6.2)	(6.3)	(6.3)	(18.7)	(24.2)	(24.1)
Other income (expense), net	0.7	0.7	0.4	0.8	0.5	3.5	(1.1)	(0.8)	2.6	2.1	(2.1)
Income before Income Taxes	26.9	54.9	41.4	24.5	19.9	55.6	39.6	10.1	147.7	125.2	130.5
Income tax expense	(6.3)	(13.3)	(8.8)	(10.3)	146.0	(21.5)	(15.6)	(3.1)	(38.7)	105.8	(49.1)
Net Income	20.6	41.6	32.6	14.2	165.9	34.1	24.0	7.0	109.0	231.0	81.4
Depreciation and Amortization									94.4	101.2	97.1
Deferred dry-docking amortization									(37.4)	(46.2)	(38.9)
Total Depreciation and Amortization									131.8	147.4	136.0
Assets	2,430.4				2,251.6				2,430.4	2,251.6
Equity in income of Terminal Joint Venture									36.8	28.2	15.8
Operating segments
Segment results
Total Operating Revenue									2,222.8	2,046.9	1,941.6
Operating Income									163.8	147.3	156.7
Capital Expenditures									401.2	307.0	179.4
Depreciation and Amortization									94.4	101.2	97.1
Assets	2,430.4				2,251.6				2,430.4	2,251.6
Intersegment Eliminations
Segment results
Total Operating Revenue									$ 95.4	$ 81.3	$ 62.0
Ocean Transportation
Segment results
Fiscal Period Duration									364 days	364 days	371 days
Total Operating Revenue	418.1	437.3	406.6	379.3	389.9	419.2	392.7	370.0
Operating Income	21.4	48.7	36.5	24.5	20.1	51.0	40.0	15.3
Ocean Transportation \| SSAT
Segment results
Equity in income of Terminal Joint Venture									$ 36.8	$ 28.2	$ 15.8
Equity method investments	87.0				93.2				87.0	93.2
Ocean Transportation \| Operating segments
Segment results
Total Operating Revenue									1,641.3	1,571.8	1,541.1
Operating Income									131.1	126.4	144.5
Capital Expenditures									385.4	305.3	179.1
Depreciation and Amortization									87.0	93.3	92.6
Deferred dry-docking amortization									37.4	46.2	38.9
Assets	2,071.6				1,941.5				2,071.6	1,941.5
Logistics
Segment results
Total Operating Revenue	146.8	152.1	150.5	132.1	126.2	124.7	119.8	104.4
Operating Income	9.1	$ 9.9	$ 9.5	$ 4.2	4.7	$ 7.3	$ 7.0	$ 1.9
Logistics \| Operating segments
Segment results
Total Operating Revenue									581.5	475.1	400.5
Operating Income									32.7	20.9	12.2
Capital Expenditures									15.8	1.7	0.3
Depreciation and Amortization									7.4	7.9	$ 4.5
Assets	$ 358.8				$ 310.1				$ 358.8	$ 310.1

INVESTMENT IN TERMINAL JOINT VENTURE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments in affiliates
Investment in Terminal Joint Venture	$ 87.0	$ 93.2
Financial information for equity method investment
Equity in income of Terminal Joint Venture	36.8	28.2	$ 15.8
Distributions Received	$ 42.0	17.5
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	$ 213.4	181.3	177.8
Accounts payable and accrued liabilities	59.2	22.8
Financial information for equity method investment
Equity in income of Terminal Joint Venture	36.8	28.2	15.8
Current assets	310.4	181.0
Noncurrent assets	152.1	161.8
Total assets	462.5	342.8
Current liabilities	71.0	65.3
Noncurrent liabilities	156.2	23.8
Equity	235.3	253.7
Total Liabilities and Equity	462.5	342.8
Operating revenue	1,074.2	933.5	740.9
Operating costs and expenses	963.7	850.2	706.5
Operating Income	110.5	83.3	34.4
Net Income	$ 104.9	$ 80.9	$ 45.1

PROPERTY AND EQUIPMENT - SUMMARY (Details) $ in Millions	12 Months Ended
PROPERTY AND EQUIPMENT - SUMMARY (Details) $ in Millions	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Property and equipment
Cost	$ 2,615.2	$ 2,444.2
Accumulated depreciation of property and equipment	1,248.6	1,278.5
Property and equipment, net	1,366.6	1,165.7
Depreciation Expense	80.5	86.7	$ 86.0
Property and equipment subject to capital leases	0.1	4.9
Capitalized interest	18.7	7.5	2.1
Net of accumulated depreciation	0.7	3.8
Amortization expenses	0.5	1.5	$ 1.2
Vessels
Property and equipment
Cost	1,489.2	1,433.6
Accumulated depreciation of property and equipment	847.1	893.2
Property and equipment, net	642.1	540.4
Cost of completed vessel transferred from construction in progress	233.0
Capitalized interest	$ 12.8
Number of vesels under agreements for contstruction \| item	4
Containers and equipment
Property and equipment
Cost	$ 513.6	543.0
Accumulated depreciation of property and equipment	362.9	349.0
Property and equipment, net	150.7	194.0
Terminal facilities and other property
Property and equipment
Cost	66.0	64.8
Accumulated depreciation of property and equipment	38.6	36.3
Property and equipment, net	27.4	28.5
Vessel construction in progress
Property and equipment
Cost	487.2	376.6
Property and equipment, net	487.2	376.6
Capitalized interest	16.3	10.4
Other construction in progress
Property and equipment
Cost	59.2	26.2
Property and equipment, net	$ 59.2	$ 26.2

GOODWILL AND INTANGIBLES - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill	$ 327.8	$ 327.8
Ocean Transportation
Goodwill [Line Items]
Goodwill	222.6
Logistics
Goodwill [Line Items]
Goodwill	$ 105.2

GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangible assets
Gross Amount	$ 258.0	$ 258.0
Accumulated Amortization	(44.0)	(32.8)
Net Amount	214.0	225.2
Aggregate intangible asset amortization	11.2	11.4	$ 9.1
Estimated amortization expenses related to intangibles
2019	11.0
2020	11.0
2021	10.9
2022	10.7
2023	10.7
Thereafter	132.4
Net Amount	186.7
Ocean Transportation \| Customer Relationships.
Intangible assets
Gross Amount	140.6	140.6
Accumulated Amortization	(24.4)	(17.8)
Net Amount	$ 116.2	122.8
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	(19.6)	(15.0)
Net Amount	97.8	102.4
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	(19.6)	(15.0)
Net Amount	70.5	$ 75.1
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, 2018	Dec. 31, 2017
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
Accounts receivable, net	$ 223.7	194.6
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	$ 1.0	134.8
Long-term Assets \| Cash
Capital construction fund - cash on deposit		$ 0.9

DEBT - SUMMARY (Details) - USD ($) $ in Millions	12 Months Ended
DEBT - SUMMARY (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Aug. 31, 2004	Sep. 30, 2003
Debt
Capital leases	$ 0.1	$ 0.8
Total Debt	856.4	857.1
Less current portion	(42.1)	(30.8)
Total Long-term Debt	814.3	826.3
5.79%, payable through 2020
Debt
Total Debt	$ 10.5	17.5
Interest rate (as a percent)	5.79%
3.66%, payable through 2023
Debt
Total Debt	$ 41.0	50.1
Interest rate (as a percent)	3.66%
4.16%, payable through 2027
Debt
Total Debt	$ 44.5	49.8
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	$ 32.7	35.1
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	$ 71.4	73.2
Interest rate (as a percent)	3.92%
5.34%, payable through 2028
Debt
Total Debt	$ 22.0	24.2
Interest rate (as a percent)	5.34%			5.34%
5.27%, payable through 2029
Debt
Total Debt	$ 24.2	26.4
Interest rate (as a percent)	5.27%		5.27%
Revolving Credit Facility
Debt
Total Debt	$ 235.0	$ 205.0
Funds available under the revolving credit facility	$ 304.0
Interest rate during period (as a percent)	3.92%

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 ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017	Jul. 15, 2015	Dec. 31, 2014
Debt
Letters of credit								$ 7,900
Revolving Credit Facility
Debt
Interest rate during period (as a percent)								3.92%
Maximum borrowing capacity under revolving credit facility								$ 650,000
Uncommitted option to increase credit facility								250,000
Unused portion of credit facility								$ 304,000
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
Debt covenant, ratio of debt to consolidated EBITDA									1.0
Ratio of consolidated EBITDA to interest expense								3.50	1.0
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								$ 7,900
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
Interest rate (as a percent)											4.35%
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2021
Debt
Annual principal payments				$ 5,000
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2022 and 2023
Debt
Annual principal payments				7,500
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2024 to 2027
Debt
Annual principal payments				10,000
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2028
Debt
Annual principal payments				8,000
Senior Unsecured Long Term Debt \| Debt Instrument Redemption 2029 and thereafter until 2044
Debt
Annual principal payments				$ 2,000
4.35%, payable through 2044
Debt
Interest rate (as a percent)								4.35%
Unsecured debt
Debt
Debt issued							$ 170,000
Unsecured debt \| Debt Instrument Redemption 2015 through 2016
Debt
Semi-annual payments							4,600
Unsecured debt \| Debt Instrument Redemption 2017 through mid-year 2023
Debt
Semi-annual payments							8,400
Unsecured debt \| Debt Instrument Redemption Mid-year 2023 through mid-year 2027
Debt
Semi-annual payments							3,800
Unsecured debt \| Debt Instrument Redemption After mid-year 2027
Debt
Semi-annual payments							1,200
Unsecured debt, tranche maturing in 2023
Debt
Debt issued							$ 77,500
Interest rate (as a percent)							3.66%
Unsecured debt, tranche maturing in 2027
Debt
Debt issued							$ 55,000
Interest rate (as a percent)							4.16%
Unsecured debt, tranche maturing in 2032
Debt
Debt issued							$ 37,500
Interest rate (as a percent)							4.31%
Notes 30 years
Debt
Debt issued			$ 75,000
Debt instrument term			30 years
Interest rate (as a percent)										3.92%
Notes 30 years \| Debt Instrument Redemption After 2026
Debt
Annual principal payments			$ 1,500
Notes 30 years \| Debt Instrument Redemption 2017 through 2019
Debt
Annual principal payments			1,800
Notes 30 years \| Minimum \| Debt Instrument Redemption 2020 through 2026
Debt
Annual principal payments			1,300
Notes 30 years \| Maximum \| Debt Instrument Redemption 2020 through 2026
Debt
Annual principal payments			$ 8,000
Senior Unsecured Series A Notes
Debt
Debt issued	$ 75,000
Debt instrument term	11 years
Interest rate (as a percent)	3.37%
Senior Unsecured Series A Notes \| Debt Instrument Redemption 2021
Debt
Semi-annual payments	$ 5,800
Senior Unsecured Series A Notes \| Debt Instrument Redemption 2022 through 2027
Debt
Semi-annual payments	$ 11,500
The Senior Unsecured Notes (The "Series D Notes")
Debt
Debt issued		$ 200,000
Debt instrument term		15 years
Interest rate (as a percent)		3.14%
Maturities of Long-term Debt
Semi-annual principal payments in year 2019		$ 6,000
Semi-annual principal payments in 2020 to 2023		9,200
Semi-annual principal payments in 2024 to 2031		$ 7,150

DEBT - REVOLVING CREDIT FACILITY (Details) $ in Thousands		12 Months Ended
DEBT - REVOLVING CREDIT FACILITY (Details) $ in Thousands	Sep. 14, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017
Title XI Bonds
Debt
Debt issued		$ 46,200
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		$ 304,000
Interest rate during period (as a percent)		3.92%
Revolving Credit Facility \| Minimum
Debt
Credit facility commitment fee percentage		0.15%
Ratio of consolidated EBITDA to interest expense		3.50	1.0
Debt covenant, ratio of debt to consolidated EBITDA			1.0
Debt covenant, ratio of debt to consolidated EBITDA, including specific exceptions			1.0
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		$ 7,900
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, 2018	Dec. 31, 2017
Debt maturities
2019	$ 42.1
2020	48.4
2021	54.2
2022	294.9
2023	59.9
Thereafter	356.9
Total Debt	$ 856.4	$ 857.1

LEASES (Details) - USD ($) $ in Millions	12 Months Ended
LEASES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Future minimum payments under operating leases
2019	$ 68.3
2020	59.2
2021	44.8
2022	34.7
2023	30.5
Thereafter	83.6
Total minimum lease payments	321.1
Costs And Expenses
Leases
Rent expense	$ 141.9	$ 128.7	$ 119.6
Real estate and terminal leases
Leases
Estimated maximum terms	65 years
Real estate and terminal leases \| Costs And Expenses
Leases
Rent expense	$ 25.6	26.4	25.4
Vessel charter leases
Leases
Estimated maximum terms	10 years
Vessel charter leases \| Costs And Expenses
Leases
Rent expense	$ 21.4	21.4	16.4
Operations equipment and other leases
Leases
Estimated maximum terms	8 years
Operations equipment and other leases \| Costs And Expenses
Leases
Rent expense	$ 26.8	26.0	27.9
Non-lease rental expense \| Costs And Expenses
Leases
Rent expense	$ 68.1	$ 54.9	$ 49.9

LEASES - Vessel Charter and Buyer Lessor Guaranty (Details) - USD ($) $ in Millions		12 Months Ended
	Nov. 26, 2018	Dec. 31, 2018
LEASES
Sale of subsequently leased back	$ 106.0
Rent payments	$ 3.0
Base term	5 years
Extension option year	2 years
Total future minimum payments		$ 59.9
Net deferred gain		$ 2.3
Purchase option price	$ 68.9
Purchase option price extended term	58.3
Maximum residual value guarantee amount	50.9
Maximum residual value guarantee amount extended term	$ 47.7

INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INCOME TAXES
Tax Act, income tax expense (benefit)									$ 2.9
Sequestration rate (as a percent)									6.20%
Non-cash adjustment									$ 2.9
Current:
Federal									2.4	$ 21.6	$ 10.5
State									2.1	2.2	(1.3)
Discrete adjustments related to the Tax Act									2.9
Total									7.4	23.8	9.2
Deferred:
Deferred tax expense									31.3	24.4	39.9
Remeasurement and discrete adjustments related to the Tax Act	$ (0.2)		$ (0.2)	$ 3.3		$ (154.0)				(154.0)
Total									31.3	(129.6)	39.9
Total income taxes	6.3	$ 13.3	$ 8.8	$ 10.3	$ (146.0)	$ 21.5	$ 15.6	$ 3.1	$ 38.7	$ (105.8)	$ 49.1
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)									21.00%	35.00%	35.00%
State income tax (as a percent)									3.40%	2.60%	1.80%
Valuation allowance (as a percent)									(0.70%)	1.40%	0.30%
Foreign taxes (as a percent)									0.60%	0.10%	0.40%
Remeasurement and discrete adjustments related to Tax Act (as a percent)									2.00%	(123.00%)
Share-based payments (as a percent)									0.10%	(1.40%)
Other-net (as a percent)									(0.20%)	0.80%	0.10%
Effective income tax rate , Percent, Total									26.20%	(84.50%)	37.60%
Valuation allowance related to foreign subsidiary losses									$ (1.1)	$ 1.7	$ 0.4
Valuation allowances	11.5				13.0				11.5	13.0
Deferred tax assets:
Benefit plans	45.6				44.2				45.6	44.2
Federal net operating losses	15.2				21.6				15.2	21.6
Insurance reserves	5.6				6.8				5.6	6.8
State net operating losses	7.4				7.4				7.4	7.4
Foreign losses	5.1				6.6				5.1	6.6
State alternative minimum tax credits	5.9				4.2				5.9	4.2
Allowance for doubtful accounts	1.1				0.9				1.1	0.9
Other	1.8				1.9				1.8	1.9
Total deferred tax assets	87.7				93.6				87.7	93.6
Valuation allowance	(11.5)				(13.0)				(11.5)	(13.0)
Total Deferred tax assets, net of valuation allowance	76.2				80.6				76.2	80.6
Deferred tax liabilities:
Basis differences for property and equipment	302.1				254.4				302.1	254.4
Lease financing	26.0								26.0
Capital Construction Fund	7.0				54.2				7.0	54.2
Intangibles	38.4				36.4				38.4	36.4
Deferred revenue	3.0				6.9				3.0	6.9
Terminal Joint Venture investment	11.4				9.6				11.4	9.6
Reserves - Liabilities	1.0				2.7				1.0	2.7
Total deferred tax liabilities	388.9				364.2				388.9	364.2
Deferred tax liability, net , Total	$ 312.7				$ 283.6				$ 312.7	$ 283.6

INCOME TAXES - OPERATING LOSS AND TAX CREDIT CARRYFORWARDS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Operating Loss and Tax Credit Carryforwards
Alternative minimum tax credit carryforwards	$ 5.9	$ 4.2
Valuation allowances	11.5	13.0
U.S. Federal Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	74.5	183.8
State Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	189.2	192.3
Foreign Income Tax
Operating Loss and Tax Credit Carryforwards
Net operating losses carryforwards	$ 18.4	$ 23.7

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Balance at beginning of the period	$ 15.9	$ 20.4	$ 22.1
Changes in tax positions of prior years, net	(0.3)		(1.1)
Changes in tax positions of prior years, net		1.1
Reductions for lapse of statute of limitations	(0.5)	(0.1)	(0.6)
Revaluation of unrecognized tax benefits due to the Tax Act		(5.5)
Balance at the end	15.1	15.9	$ 20.4
Unrecognized tax benefits that, if recognized, would impact the effective rate	13.7
Interest accrued related to unrecognized tax benefits	$ 0.4	0.5
Stock options
Net tax benefits from share-based transactions		$ 2.2

PENSION AND POST-RETIREMENT PLANS - ASSET ALLOCATION (Details) - plan	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
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)	(6.50%)
Three year returns (losses) on plan assets (as a percent)	5.10%
Five year returns (losses) on plan assets (as a percent)	3.80%
Long-term average return on plan assets since inception (as a percent)	7.90%
Pension Benefits \| Domestic equity securities
Employee benefit plans
Target allocation (as a percent)	53.00%
Asset allocations (as a percent)	57.00%	59.00%
Pension Benefits \| International equity securities
Employee benefit plans
Target allocation (as a percent)	15.00%
Asset allocations (as a percent)	16.00%	17.00%
Pension Benefits \| Debt securities
Employee benefit plans
Target allocation (as a percent)	22.00%
Asset allocations (as a percent)	19.00%	17.00%
Pension Benefits \| Real estate
Employee benefit plans
Target allocation (as a percent)	5.00%
Asset allocations (as a percent)	7.00%	6.00%
Pension Benefits \| Other and cash
Employee benefit plans
Target allocation (as a percent)	5.00%
Asset allocations (as a percent)	1.00%	1.00%

PENSION AND POST-RETIREMENT PLANS - FAIR VALUE (Details) - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension and Post-retirement Plans
Total	$ 162.2	$ 186.7	$ 178.8
Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Pension and Post-retirement Plans
Total		0.1	$ 0.1
Fair Value Measurement
Pension and Post-retirement Plans
Total	162.3	186.7
Fair Value Measurement \| Cash
Pension and Post-retirement Plans
Total	6.2	6.6
Fair Value Measurement \| U.S. large-cap
Pension and Post-retirement Plans
Total	50.6	66.0
Fair Value Measurement \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	38.4	42.6
Fair Value Measurement \| International large-cap
Pension and Post-retirement Plans
Total	18.0	21.6
Fair Value Measurement \| International small-cap
Pension and Post-retirement Plans
Total	8.1	9.5
Fair Value Measurement \| U.S. Treasuries
Pension and Post-retirement Plans
Total	8.0	8.0
Fair Value Measurement \| Municipal bonds
Pension and Post-retirement Plans
Total	0.1	0.1
Fair Value Measurement \| Investment grade U.S. corporate bonds
Pension and Post-retirement Plans
Total	20.8	17.5
Fair Value Measurement \| High-yield U.S. corporate bonds
Pension and Post-retirement Plans
Total	0.5	3.6
Fair Value Measurement \| Real estate partnerships interests
Pension and Post-retirement Plans
Total	11.6	11.1
Fair Value Measurement \| Private equity partnership interests
Pension and Post-retirement Plans
Total		0.1
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Pension and Post-retirement Plans
Total	56.9	63.0
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| Cash
Pension and Post-retirement Plans
Total	6.2	6.6
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| U.S. large-cap
Pension and Post-retirement Plans
Total	24.9	28.1
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1) \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	25.8	28.3
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Pension and Post-retirement Plans
Total	93.8	112.5
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. large-cap
Pension and Post-retirement Plans
Total	25.7	37.9
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. mid- and small-cap
Pension and Post-retirement Plans
Total	12.6	14.3
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| International large-cap
Pension and Post-retirement Plans
Total	18.0	21.6
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| International small-cap
Pension and Post-retirement Plans
Total	8.1	9.5
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| U.S. Treasuries
Pension and Post-retirement Plans
Total	8.0	8.0
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| Municipal bonds
Pension and Post-retirement Plans
Total	0.1	0.1
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| Investment grade U.S. corporate bonds
Pension and Post-retirement Plans
Total	20.8	17.5
Fair Value Measurement \| Significant Observable Inputs (Level 2) \| High-yield U.S. corporate bonds
Pension and Post-retirement Plans
Total	0.5	3.6
Fair Value Measurement \| Significant Unobservable Inputs (Level 3)
Pension and Post-retirement Plans
Total	11.6	11.2
Fair Value Measurement \| Significant Unobservable Inputs (Level 3) \| Real estate partnerships interests
Pension and Post-retirement Plans
Total	$ 11.6	11.1
Fair Value Measurement \| Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Pension and Post-retirement Plans
Total		$ 0.1

PENSION AND POST-RETIREMENT PLANS - RETURN ON PLAN ASSETS (Details) - Pension Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Change in Plan Assets:
Balance at the beginning of the period	$ 186.7	$ 178.8
Actual return (loss) on plan assets:
Balance at the end of the period	162.2	186.7
Significant Unobservable Inputs (Level 3) \| Private equity partnership interests
Change in Plan Assets:
Balance at the beginning of the period	0.1	0.1
Actual return (loss) on plan assets:
Assets held at the reporting date	0.5	0.1
Assets sold during the period	(0.4)	(0.1)
Purchases, sales and settlements, net	(0.2)
Balance at the end of the period		0.1
Fair Value Measurements Recurring \| Significant Unobservable Inputs (Level 3)
Change in Plan Assets:
Balance at the beginning of the period	11.2	10.9
Actual return (loss) on plan assets:
Assets held at the reporting date	1.0	0.4
Assets sold during the period	0.1	0.4
Purchases, sales and settlements, net	(0.7)	(0.5)
Balance at the end of the period	11.6	11.2
Fair Value Measurements Recurring \| Significant Unobservable Inputs (Level 3) \| Real estate partnerships interests
Change in Plan Assets:
Balance at the beginning of the period	11.1	10.8
Actual return (loss) on plan assets:
Assets held at the reporting date	0.5	0.3
Assets sold during the period	0.5	0.5
Purchases, sales and settlements, net	(0.5)	(0.5)
Balance at the end of the period	$ 11.6	$ 11.1

PENSION AND POST-RETIREMENT PLANS - STATUS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	$ 232.1	$ 225.4
Service cost	4.4	4.0	$ 3.9
Interest cost	8.6	9.7	9.7
Plan settlements		(0.3)
Actuarial (gain) loss	(14.1)	13.9
Benefits paid, net of subsidies received	(12.0)	(18.9)
Expenses paid	(1.6)	(1.7)
Benefit obligation at end of year	217.4	232.1	225.4
Change in Plan Assets:
Balance at the beginning of the period	186.7	178.8
Actual return on plan assets	(10.9)	25.8
Plan settlements		(0.3)
Employer contribution	0.0	3.0	7.5
Benefits paid, net of subsidies received	(12.0)	(18.9)
Expenses paid	(1.6)	(1.7)
Balance at the end of the period	162.2	186.7	178.8
Funded Status and Recognized Liability	(55.2)	(45.4)
Post-retirement Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	27.7	25.2
Service cost	0.6	0.5	1.5
Interest cost	1.0	1.1	2.7
Plan participants' contributions	0.9	1.1
Actuarial (gain) loss	(6.2)	1.9
Benefits paid, net of subsidies received	(1.8)	(2.1)
Benefit obligation at end of year	22.2	27.7	$ 25.2
Change in Plan Assets:
Plan participants' contributions	0.9	1.1
Employer contribution	0.9	1.0
Benefits paid, net of subsidies received	(1.8)	(2.1)
Funded Status and Recognized Liability	(22.2)	(27.7)
Qualified Plan \| Pension Benefits
Change in Benefit Obligation:
Benefit obligation at beginning of year	229.9
Benefit obligation at end of year	215.9	229.9
Change in Plan Assets:
Balance at the beginning of the period	184.7
Balance at the end of the period	$ 159.9	$ 184.7

PENSION AND POST-RETIREMENT PLANS - AMOUNTS INCLUDED IN FINANCIAL STATEMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee benefit plans
Current liabilities	$ (3.0)	$ (3.0)
Non-current liabilities, net	(79.4)	(75.1)
Pension Benefits
Employee benefit plans
Benefit obligation	217.4	232.1	$ 225.4
Fair value of plan assets at end of year	162.2	186.7	178.8
Pension Benefits \| Qualified Plan
Employee benefit plans
Non-current assets	0.8	0.5
Non-current liabilities, net	(56.0)	(45.9)
Total	(55.2)	(45.4)
Net loss, net of taxes	(61.8)	(46.9)
Prior service credit, net of taxes	6.0	6.3
Total	(55.8)	(40.6)
Benefit obligation	215.9	229.9
Accumulated benefit obligation	215.6	229.6
Fair value of plan assets at end of year	159.9	184.7
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	2.2
Pension Benefits \| Nonqualified Plan
Employee benefit plans
Current liabilities	(1.8)	(1.8)
Non-current liabilities, net	(2.4)	(2.7)
Total	(4.2)	(4.5)
Net loss, net of taxes	(0.4)	(0.6)
Prior service credit, net of taxes	0.3	0.3
Total	(0.1)	(0.3)
Post-retirement Benefits
Employee benefit plans
Benefit obligation	22.2	27.7	$ 25.2
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	$ 2.8
Amortization period of unrecognized gains and losses	5 years
Post-retirement Benefits \| Qualified Plan
Employee benefit plans
Current liabilities	$ (1.2)	(1.2)
Non-current liabilities, net	(21.0)	(26.5)
Total	(22.2)	(27.7)
Net loss, net of taxes	(0.1)	(4.6)
Prior service credit, net of taxes	21.8	20.2
Total	$ 21.7	$ 15.6

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components of Net Periodic Benefit Cost (Benefit):
Current liabilities	$ 3.0	$ 3.0
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
New prior service cost (credit)		(0.8)	$ (24.1)
Amortization of net loss	(1.1)	(1.7)	(1.2)
Amortization of prior service cost	$ 4.7	$ 4.0	2.2
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Discount rate used to determine obligation (as a percent)	4.00%	3.20%
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$ 4.4	$ 4.0	3.9
Interest cost	8.6	9.7	9.7
Expected return on plan assets	(13.5)	(13.5)	(13.4)
Amortization of net loss	4.6	5.1	5.5
Amortization of prior service credit	(2.3)	(2.3)	(2.3)
Net periodic benefit cost	1.8	3.0	3.4
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	7.8	0.8	1.6
Amortization of net loss	(3.5)	(3.1)	(3.3)
Amortization of prior service cost	1.7	1.4	1.4
Total recognized in other comprehensive (income) loss	6.0	(0.9)	(0.3)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$ 7.8	$ 2.1	$ 3.1
Weighted Average Assumptions:
Discount rate (as a percent)	4.40%	3.80%	4.40%
Expected return plan assets (as a percent)	7.50%	7.75%	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	$ 217.4	$ 232.1	$ 225.4
Post-retirement Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	0.6	0.5	1.5
Interest cost	1.0	1.1	2.7
Amortization of net loss	1.5	1.2	1.2
Amortization of prior service credit	(3.8)	(3.8)	(1.4)
Net periodic benefit cost	(0.7)	(1.0)	4.0
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)	(4.7)	1.1	1.2
New prior service cost (credit)			(23.4)
Amortization of net loss	(1.1)	(0.7)	(0.8)
Amortization of prior service cost	2.8	2.3	0.9
Total recognized in other comprehensive (income) loss	(3.0)	2.7	(22.1)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$ (3.7)	$ 1.7	$ (18.1)
Weighted Average Assumptions:
Discount rate (as a percent)	4.50%	3.90%	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)	6.00%	6.30%	6.60%
Initial health care cost trend rate, Post-65 group (as a percent)	6.30%	6.80%	7.20%
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	$ 0.3	$ 0.9
Effect of one percentage point increase on post-retirement benefit obligation	2.6	4.0	11.5
Effect of one percentage point decrease on total of service and interest cost components	(0.2)	(0.2)	(0.7)
Effect of one percentage point decrease on post-retirement benefit obligation	(2.0)	(3.0)	(8.3)
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	22.2	27.7	$ 25.2
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	2.8
Qualified Plan \| Pension Benefits
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Total obligation	215.9	229.9
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(61.8)	(46.9)
Amount recognized as prior service credit, net of tax	6.0	6.3
Total	(55.8)	(40.6)
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018	2.2
Qualified Plan \| Post-retirement Benefits
Components of Net Periodic Benefit Cost (Benefit):
Current liabilities	1.2	1.2
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(0.1)	(4.6)
Amount recognized as prior service credit, net of tax	21.8	20.2
Total	21.7	15.6
Nonqualified Plan \| Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Current liabilities	1.8	1.8
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans
Amounts recognized in accumulated other comprehensive income for net loss, net of tax	(0.4)	(0.6)
Amount recognized as prior service credit, net of tax	0.3	0.3
Total	$ (0.1)	$ (0.3)

PENSION AND POST-RETIREMENT PLANS - ESTIMATED BENEFIT PAYMENTS (Details) $ in Millions	Dec. 31, 2018 USD ($)
Pension Benefits
Estimated future benefit payments
2019	$ 13.2
2020	13.5
2021	13.8
2022	14.1
2023	14.5
2024-2028	75.0
Total future payments	144.1
Post-retirement Benefits
Estimated future benefit payments
2019	1.2
2020	1.1
2021	1.2
2022	1.2
2023	1.2
2024-2028	5.8
Total future payments	11.7
Nonqualified Plan \| Pension Benefits
Estimated future benefit payments
2019	1.8
2020	0.4
2022	0.3
2023	1.8
2024-2028	0.1
Total future payments	$ 4.4

PENSION AND POST-RETIREMENT PLANS - DEFINED CONTRIBUTION PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
401(K) plan
Defined Contribution Plans
Employer matching contribution (as a percent)	3.00%
Employer matching contribution expenses	$ 2.4	$ 2.4	$ 2.1
Profit sharing plan
Defined Contribution Plans
Profit sharing expense recorded	$ 1.4	$ 2.3	$ 0.0

PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2012
Multiemployer Plans
Multiemployer Plans, Accumulated Benefit Obligation	$ 244.2
Minimum
Multiemployer Plans
Employer matching contribution to MEBA Pension Trust (as a percent)				11.70%
Multiemployer Benefit Pension Plans
Multiemployer Plans
Contributions of Matson	$ 25.5	$ 24.4	$ 22.7
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	1.0
Multiemployer Benefit Pension Plans \| Hawaii Terminals Multiemployer Pension Plan \| Yellow Zone
Multiemployer Plans
Contributions of Matson	5.7	5.7	5.3
Multiemployer Benefit Pension Plans \| Hawaii Stevedoring Multiemployer Retirement Plan \| Yellow Zone
Multiemployer Plans
Contributions of Matson	4.3	3.8	3.5
Multiemployer Benefit Pension Plans \| Master Mates And Pilots Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	3.0	3.0	3.1
Multiemployer Benefit Pension Plans \| Masters, Mates and Pilots Adjustable Pension Plan
Multiemployer Plans
Contributions of Matson	1.7	1.7	1.8
Multiemployer Benefit Pension Plans \| O C U Trust Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	0.2	0.2	0.2
Multiemployer Benefit Pension Plans \| SIU Pacific District Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	1.2	0.7	0.6
Multiemployer Benefit Pension Plans \| Alaska Teamster - Employer Pension Plan \| Red Zone
Multiemployer Plans
Contributions of Matson	1.9	2.4	2.6
Multiemployer Benefit Pension Plans \| All Alaska Longshore Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	1.0	0.1	0.1
Multiemployer Benefit Pension Plans \| Western Conference of Teamsters Pension Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	1.4	1.3	1.3
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	30.0	27.0	22.5
Multi-employer defined contribution pension plans \| M E B A Pension Trust - Defined Benefit Plan \| Red Zone
Multiemployer Plans
Contributions of Matson		$ 4.4
Multi-employer defined contribution pension plans \| M E B A Pension Trust - Defined Benefit Plan \| Green Zone
Multiemployer Plans
Contributions of Matson	$ 4.0		$ 4.1

PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED CONTRIBUTION PLANS (Details) - Multi-employer defined contribution pension plans $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) plan	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Defined Contribution Plans
Number of Multiemployer Plans \| plan	6
Employer contributions \| $	$ 4.8	$ 5.0	$ 5.3

MULTI-EMPLOYER WITHDRAWAL LIABILITY (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Multiemployer withdrawal liability
Quarterly payments to ILA-PRSSA over an estimated period	$ 1.0
Estimated future benefit payments
Current portion of withdrawal liability	(10.8)	$ (4.1)
Long-term portion of withdrawal liability	56.6	$ 65.1
Horizon \| ILA-PRSSA Pension Fund
Estimated future benefit payments
2019	4.1
2020	4.1
2021	4.1
2022	4.1
2023	4.1
Thereafter	68.0
Total future payments	88.5
Less: amount representing interest	(27.8)
Present value of remaining withdrawal liability	60.7
Current portion of withdrawal liability	(4.1)
Long-term portion of withdrawal liability	56.6
Horizon \| Local 153 Fund of the OPEIU
Estimated future benefit payments
Present value of remaining withdrawal liability	$ 6.7

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	$ 677.2	$ 494.9	$ 450.6
Net gain in prior service cost		0.8	24.1
Amortization of prior service cost	(4.7)	(4.0)	(2.2)
Amortization of net loss (gain)	1.1	1.7	1.2
Other adjustments		0.2	0.2
Balance at the end of the period	755.3	677.2	494.9
Comprehensive Income (Loss):
Tax benefit (expense) on other comprehensive income (loss)	0.2	(4.4)	(14.2)
Pensions
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(40.6)	(41.4)
Reclassification adjustment related to the Tax Act	(9.2)
Amortization of prior service cost	(1.7)	(1.4)
Amortization of net loss (gain)	(4.3)	2.2
Balance at the end of the period	(55.8)	(40.6)	(41.4)
Post Retirement
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	15.6	18.1
Net gain in prior service cost		0.7
Reclassification adjustment related to the Tax Act	3.4
Amortization of prior service cost	(2.9)	(2.5)
Amortization of net loss (gain)	5.6	(0.7)
Balance at the end of the period	21.7	15.6	18.1
Non-Qualified Plans
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.3)	(0.4)
Reclassification adjustment related to the Tax Act	(0.2)
Amortization of prior service cost	(0.1)	(0.1)
Amortization of net loss (gain)	0.5	0.2
Balance at the end of the period	(0.1)	(0.3)	(0.4)
Other
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	0.4	0.1
Net gain in prior service cost		0.1
Amortization of net loss (gain)	(0.7)
Other adjustments		0.2
Balance at the end of the period	(0.3)	0.4	0.1
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(24.9)	(23.6)	(46.9)
Net gain in prior service cost		0.8
Reclassification adjustment related to the Tax Act	(6.0)
Amortization of prior service cost	(4.7)	(4.0)
Amortization of net loss (gain)	1.1	1.7
Other adjustments		0.2
Balance at the end of the period	$ (34.5)	$ (24.9)	$ (23.6)

EARNINGS PER-SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net Income
Net Income, Basic									$ 109.0	$ 231.0	$ 81.4
Net Income, Diluted									$ 109.0	$ 231.0	$ 81.4
Weighted Average Common Shares
Basic (in shares)									42.7	42.9	43.1
Effect of Dilutive Securities (in shares)									0.3	0.3	0.4
Diluted (in shares)									43.0	43.2	43.5
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 0.48	$ 0.97	$ 0.76	$ 0.33	$ 3.90	$ 0.79	$ 0.56	$ 0.16	$ 2.55	$ 5.38	$ 1.89
Effect of Dilutive Securities (in dollars per shares)									(0.02)	(0.03)	(0.02)
Net income, Diluted (in dollars per share)	$ 0.48	$ 0.97	$ 0.76	$ 0.33	$ 3.88	$ 0.79	$ 0.55	$ 0.16	$ 2.53	$ 5.35	$ 1.87

SHARE-BASED AWARDS - SUMMARY (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) plan $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($)
Share-based expense (net of estimated forfeitures)
Total share-based expense	$ 12,100	$ 11,100	$ 9,800
Intrinsic value of options exercised	500	700	2,000
Tax benefit realized upon option exercise	2,700	6,800	5,900
Fair value of stock vested	10,800	$ 17,300	$ 15,800
Stock options
Share-based expense (net of estimated forfeitures)
Unrecognized compensation cost	$ 0
Weighted average exercise price
Outstanding, weighted average exercise price, beginning of period (in dollars per share) \| $ / shares	$ 21.54
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	20.18
Outstanding, weighted average exercise price, end of period (in dollars per share) \| $ / shares	21.81	$ 21.54
Exercisable, weighted average exercise price, end of period (in dollars per share) \| $ / shares	$ 21.81
Outstanding, weighted average contractual life, end of period	2 years 7 months 6 days
Exercisable, weighted average contractual life, end of period	2 years 7 months 6 days
Outstanding, aggregate intrinsic value, end of period (in dollars)	$ 1,998
Exercisable, aggregate intrinsic value, end of period (in dollars)	1,998
Non-vested restricted stock units and performance-based equity awards
Share-based expense (net of estimated forfeitures)
Unrecognized compensation cost	$ 11,600
Unrecognized compensation cost, weighted average period for recognition	1 year 8 months 12 days
Restricted Stock Units
Share-based compensation
Options granted, weighted average grant-date fair value (in dollars per share) \| $ / shares	$ 31.15
2016 Plan
Share-based compensation
Common stock initially available for future issuance (in shares) \| 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) \| shares	235
Exercised (in shares) \| shares	(39)
Outstanding, end of period (in shares) \| shares	196	235
Exercisable, end of period (in shares) \| shares	196
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

SHARE-BASED AWARDS - RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	686
Granted (in shares)	384
Settlement of Performance Shares (in shares) \| $	$ 60
Vested (in shares)	(346)
Cancelled (in shares)	(25)
Outstanding, end of period (in shares)	759
Weighted Average Grant-Date Fair Value
Outstanding, weighted average grant-date fair value, beginning of period (in dollars per share) \| $ / shares	$ 36.41
Granted, weighted average grant-date fair value (in dollars per share) \| $ / shares	31.15
Settlement of Performance Shares, weighted average grant-date fair value (in dollars per share) \| $ / shares	36.97
Vested, weighted average grant-date fair value (in dollars per share) \| $ / shares	36.24
Cancelled, weighted average grant-date fair value (in dollars per shares) \| $ / shares	34.49
Outstanding, weighted average grant-date fair value, end of period (in dollars per shares) \| $ / shares	$ 33.92
2007 Plan
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	377
Settlement of Performance Shares (in shares) \| $	$ 60
Vested (in shares)	(268)
Cancelled (in shares)	(5)
Outstanding, end of period (in shares)	164
2016 Plan
Non-vested restricted stock unit activity
Outstanding, beginning of period (in shares)	309
Granted (in shares)	384
Vested (in shares)	(78)
Cancelled (in shares)	(20)
Outstanding, end of period (in shares)	595

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents
Outstanding checks in excess of funds on deposits	$ 16.4	$ 18.7
Restricted Cash	4.9
CCF - cash on deposit	4.9
Accounts Receivable
Eligible accounts receivable assigned to CCF	1.0	134.8
Allowance for doubtful accounts
Balance at Beginning of year	4.6	4.2	$ 6.6
Expense (Recovery)	0.8	1.0	(0.3)
Write-offs and Other	(0.6)	(0.6)	(2.1)
Balance at End of Year	4.8	4.6	$ 4.2
Prepaid and Other Assets:
Income tax receivables	26.8	2.6
Prepaid insurance and insurance related receivables	12.6	19.3
Prepaid fuel	16.3	14.4
Other	7.7	9.0
Total	75.1	51.6
Carrying value
Cash and Cash Equivalents
Cash and cash equivalents	19.6	19.8
Restricted Cash	4.9	0.9
CCF - cash on deposit	4.9	0.9
Variable rate debt	235.0	205.0
Fixed rate debt	621.4	652.1
Fair Value Measurement
Cash and Cash Equivalents
Cash and cash equivalents	19.6	19.8
Restricted Cash	4.9	0.9
CCF - cash on deposit	4.9	0.9
Variable rate debt	235.0	205.0
Fixed rate debt	584.5	651.4
Quoted Prices in Active Markets (Level 1)
Cash and Cash Equivalents
Cash and cash equivalents	19.6	19.8
Restricted Cash	4.9
CCF - cash on deposit	4.9
Significant Observable Inputs (Level 2)
Cash and Cash Equivalents
Restricted Cash		0.9
CCF - cash on deposit		0.9
Variable rate debt	235.0	205.0
Fixed rate debt	$ 584.5	$ 651.4

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2018 USD ($)
Commitments, Guarantees and Contingencies
Standby letters of credit	$ 7.9
Construction of vessels obligations	250.6
Purchase obligations and other capital expenditure obligations	29.4
U.S. Customs bond
Commitments, Guarantees and Contingencies
Bonds	$ 33.3

BUSINESS COMBINATION - CONSIDERATION PAID (Details) - USD ($) $ in Millions		12 Months Ended
	Aug. 04, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets acquired and liabilities assumed
Goodwill		$ 327.8	$ 327.8
Repayments of Span Alaska debt				$ 81.9
Estimated future benefit payments
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		66.5	59.1	22.8
Operating Income		$ 16.7	12.8	$ 3.5
One-time acquisition related costs			$ 3.0

BUSINESS COMBINATION - PROFORMA (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Pro-forma Combined
Operating revenue \| $	$ 1,974.2
Net income after income taxes \| $	$ 86.0
Basic Earnings Per Share (in dollars per share) \| $ / shares	$ 2.00
Diluted Earnings Per Share (in dollars per share) \| $ / shares	$ 1.98
Weighted Average Number of Shares Outstanding:
Basic \| shares	43.1
Diluted \| shares	43.5

QUARTERLY INFORMATION (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly information by segments
Total Operating Revenue	$ 564.9	$ 589.4	$ 557.1	$ 511.4	$ 516.1	$ 543.9	$ 512.5	$ 474.4	$ 2,222.8	$ 2,046.9	$ 1,941.6
Operating Income	30.5	58.6	46.0	28.7	24.8	58.3	47.0	17.2	163.8	147.3	156.7
Interest expense, net	(4.3)	(4.4)	(5.0)	(5.0)	(5.4)	(6.2)	(6.3)	(6.3)	(18.7)	(24.2)	(24.1)
Other income (expense), net	0.7	0.7	0.4	0.8	0.5	3.5	(1.1)	(0.8)	2.6	2.1	(2.1)
Income before Income Taxes	26.9	54.9	41.4	24.5	19.9	55.6	39.6	10.1	147.7	125.2	130.5
Income tax expense	(6.3)	(13.3)	(8.8)	(10.3)	146.0	(21.5)	(15.6)	(3.1)	(38.7)	105.8	(49.1)
Net Income	20.6	$ 41.6	32.6	14.2	$ 165.9	34.1	$ 24.0	$ 7.0	$ 109.0	231.0	$ 81.4
Remeasurement and discrete adjustments related to the Tax Act	$ (0.2)		$ (0.2)	$ 3.3		$ (154.0)				$ (154.0)
Net Income, Earnings Per Share:
Basic Earnings Per-Share: (in dollars per share)	$ 0.48	$ 0.97	$ 0.76	$ 0.33	$ 3.90	$ 0.79	$ 0.56	$ 0.16	$ 2.55	$ 5.38	$ 1.89
Diluted Earnings Per-Share: (in dollars per share)	$ 0.48	$ 0.97	$ 0.76	$ 0.33	$ 3.88	$ 0.79	$ 0.55	$ 0.16	$ 2.53	$ 5.35	$ 1.87
Ocean Transportation
Quarterly information by segments
Total Operating Revenue	$ 418.1	$ 437.3	$ 406.6	$ 379.3	$ 389.9	$ 419.2	$ 392.7	$ 370.0
Operating Income	21.4	48.7	36.5	24.5	20.1	51.0	40.0	15.3
Logistics
Quarterly information by segments
Total Operating Revenue	146.8	152.1	150.5	132.1	126.2	124.7	119.8	104.4
Operating Income	$ 9.1	$ 9.9	$ 9.5	$ 4.2	$ 4.7	$ 7.3	$ 7.0	$ 1.9

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statement of Stockholders' Equity
Dividends (per share)	$ 0.82	$ 0.78	$ 0.74

SIGNIFICANT ACCOUNTING POLICIES - FISCAL YEAR (Details)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES - FISCAL YEAR (Details)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
SIGNIFICANT ACCOUNTING POLICIES
Fiscal Period Duration	364 days	364 days	371 days