0001558370-20-012259 | 10-Q | XBRL Viewer

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Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2020 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	001-34187
Entity Registrant Name	Matson, Inc.
Entity Incorporation, State or Country Code	HI
Entity Tax Identification Number	99-0032630
Entity Address, Address Line One	1411 Sand Island Parkway
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96819
City Area Code	808
Local Phone Number	848-1211
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	MATX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	43,078,715
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000003453
Amendment Flag	false

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating Revenue:
Total Operating Revenue	$ 645.2	$ 572.1	$ 1,683.2	$ 1,662.4
Costs and Expenses:
Operating costs	(495.8)	(472.6)	(1,370.4)	(1,412.5)
Income from SSAT	7.7	8.4	15.4	17.8
Selling, general and administrative	(58.7)	(52.7)	(165.6)	(164.0)
Total Costs and Expenses	(546.8)	(516.9)	(1,520.6)	(1,558.7)
Operating Income	98.4	55.2	162.6	103.7
Interest expense	(5.7)	(6.2)	(22.5)	(16.9)
Other income (expense), net	2.4	(0.5)	4.5	0.9
Income before Income Taxes	95.1	48.5	144.6	87.7
Income taxes	(24.2)	(12.3)	(37.1)	(20.6)
Net Income	70.9	36.2	107.5	67.1
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	70.9	36.2	107.5	67.1
Other Comprehensive Income (Loss):
Amortization of prior service cost	(1.2)	(1.0)	(3.5)	(3.3)
Amortization of net loss (gain)	0.5	1.2	3.1	3.0
Other adjustments	0.2	(0.7)	(0.6)	(0.9)
Total Other Comprehensive Income (Loss)	(0.5)	(0.5)	(1.0)	(1.2)
Comprehensive Income	$ 70.4	$ 35.7	$ 106.5	$ 65.9
Basic Earnings Per-Share: (in dollars per share)	$ 1.65	$ 0.84	$ 2.50	$ 1.57
Diluted Earnings Per-Share: (in dollars per share)	$ 1.63	$ 0.84	$ 2.48	$ 1.55
Weighted Average Number of Shares Outstanding:
Basic (in shares)	43.1	42.9	43.0	42.8
Diluted (in shares)	43.5	43.3	43.4	43.2
Ocean Transportation
Operating Revenue:
Total Operating Revenue	$ 498.3	$ 437.2	$ 1,310.0	$ 1,250.5
Logistics
Operating Revenue:
Total Operating Revenue	$ 146.9	$ 134.9	$ 373.2	$ 411.9

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 12.7	$ 21.2
Accounts receivable, net of allowance for credit loss of $5.9 million and $4.3 million, respectively	234.3	205.9
Prepaid expenses and other assets	42.6	62.5
Total current assets	289.6	289.6
Long-term Assets:
Investment in SSAT	55.2	76.2
Property and equipment, net	1,614.6	1,598.1
Operating lease right of use assets	244.3	256.1
Goodwill	327.8	327.8
Intangible assets, net	194.7	202.9
Deferred dry-docking costs, net	49.9	56.9
Other long-term assets	30.6	37.8
Total long-term assets	2,517.1	2,555.8
Total Assets	2,806.7	2,845.4
Current Liabilities:
Current portion of debt	53.4	48.4
Accounts payable and accruals	245.4	235.7
Operating lease liabilities	63.9	66.6
Other liabilities	90.9	86.0
Total current liabilities	453.6	436.7
Long-term Liabilities:
Long-term debt, net of deferred loan fees	754.5	910.0
Long-term operating lease liabilities	188.3	198.0
Deferred income taxes	370.9	337.6
Other long-term liabilities	147.6	157.4
Total long-term liabilities	1,461.3	1,603.0
Commitments and Contingencies
Shareholders' Equity:
Common stock	32.3	32.2
Additional paid in capital	312.6	306.2
Accumulated other comprehensive loss, net	(37.9)	(36.9)
Retained earnings	584.8	504.2
Total shareholders' equity	891.8	805.7
Total liabilities and shareholders' equity	$ 2,806.7	$ 2,845.4

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for credit loss	$ 5.9	$ 4.3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities:
Net income	$ 107.5	$ 67.1
Reconciling adjustments:
Depreciation and amortization	84.5	73.4
Amortization of operating lease right of use assets	53.1	52.3
Deferred income taxes	33.5	21.9
Share-based compensation expense	12.0	8.7
Income from SSAT	(15.4)	(17.8)
Distribution from SSAT	37.9	14.7
Other	0.5	(1.5)
Changes in assets and liabilities:
Accounts receivable, net	(28.9)	(0.2)
Deferred dry-docking payments	(11.1)	(17.9)
Deferred dry-docking amortization	17.8	25.9
Prepaid expenses and other assets	19.6	25.3
Accounts payable, accruals and other liabilities	24.0	(11.7)
Operating lease liabilities	(53.7)	(51.7)
Other long-term liabilities	(10.5)	(8.1)
Net cash provided by operating activities	270.8	180.4
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(57.8)	(108.7)
Other capital expenditures	(53.5)	(62.7)
Proceeds from disposal of property and equipment	15.7	3.1
Cash deposits into Capital Construction Fund	(97.1)	(68.2)
Withdrawals from Capital Construction Fund	97.1	68.2
Net cash used in investing activities	(95.6)	(168.3)
Cash Flows From Financing Activities:
Proceeds from issuance of debt	325.5
Repayments of debt	(204.2)	(28.4)
Proceeds from revolving credit facility	547.4	383.3
Repayments of revolving credit facility	(803.5)	(328.3)
Payment of financing costs	(18.5)
Proceeds from issuance of capital stock	0.1	0.1
Dividends paid	(29.1)	(27.7)
Tax withholding related to net share settlements of restricted stock units	(5.6)	(3.3)
Net cash used in financing activities	(187.9)	(4.3)
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(12.7)	7.8
Cash, Cash Equivalents and Restricted Cash, Beginning of the Period	28.4	24.5
Cash, Cash Equivalents and Restricted Cash, End of the Period	15.7	32.3
Reconciliation of Cash, Cash Equivalents and Restricted Cash, End of the Period:
Cash and Cash Equivalents	12.7	23.6
Restricted Cash	3.0	8.7
Cash, Cash Equivalents and Restricted Cash, End of the Period	15.7	32.3
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	22.4	16.8
Income tax (refunds) payments, net	(18.0)	(25.7)
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$ 5.9	$ 9.8

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment SSAT	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Cumulative Effect, Period of Adoption, Adjustment SSAT	Cumulative Effect, Period of Adoption, Adjustment	Total
Balance at the beginning 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
Increase (Decrease) in Stockholders' Equity
Net income						12.5			12.5
Other comprehensive income (loss), net of tax			(0.2)						(0.2)
Share-based compensation		3.2							3.2
Shares issued, net of shares withheld for employee taxes	$ 0.1	(3.2)							(3.1)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Dividends						(9.1)			(9.1)
Balance at the end of the period at Mar. 31, 2019	$ 32.1	297.8	(34.7)		$ 4.4	467.8		$ 4.4	763.0
Balance (in shares) at Mar. 31, 2019	42.8
Balance at the beginning 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
Increase (Decrease) in Stockholders' Equity
Net income									67.1
Other comprehensive income (loss), net of tax									(1.2)
Balance at the end of the period at Sep. 30, 2019	$ 32.2	303.2	(35.7)	$ (5.6)		498.0	$ (5.6)		797.7
Balance (in shares) at Sep. 30, 2019	42.9
Balance at the beginning of the period at Mar. 31, 2019	$ 32.1	297.8	(34.7)		$ 4.4	467.8		$ 4.4	763.0
Balance (in shares) at Mar. 31, 2019	42.8
Increase (Decrease) in Stockholders' Equity
Net income						18.4			18.4
Other comprehensive income (loss), net of tax			(0.5)						(0.5)
Share-based compensation		3.0							3.0
Shares issued, net of shares withheld for employee taxes		(0.1)							(0.1)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Dividends						(18.6)			(18.6)
Balance at the end of the period at Jun. 30, 2019	$ 32.1	300.7	(35.2)			467.6			765.2
Balance (in shares) at Jun. 30, 2019	42.9
Increase (Decrease) in Stockholders' Equity
Net income						36.2			36.2
Other comprehensive income (loss), net of tax			(0.5)						(0.5)
Share-based compensation		2.5							2.5
Shares issued, net of shares withheld for employee taxes	$ 0.1								0.1
Dividends						(0.2)			(0.2)
Balance at the end of the period at Sep. 30, 2019	$ 32.2	303.2	(35.7)	$ (5.6)		498.0	$ (5.6)		797.7
Balance (in shares) at Sep. 30, 2019	42.9
Balance at the beginning of the period at Dec. 31, 2019	$ 32.2	306.2	(36.9)			504.2			805.7
Balance (in shares) at Dec. 31, 2019	42.9
Increase (Decrease) in Stockholders' Equity
Net income						3.8			3.8
Other comprehensive income (loss), net of tax			(0.6)						(0.6)
Share-based compensation		3.1							3.1
Shares issued, net of shares withheld for employee taxes	$ 0.1	(4.6)							(4.5)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Equity interest in SSAT						2.2			2.2
Dividends						(9.5)			(9.5)
Balance at the end of the period at Mar. 31, 2020	$ 32.3	304.7	(37.5)			500.7			800.2
Balance (in shares) at Mar. 31, 2020	43.0
Balance at the beginning of the period at Dec. 31, 2019	$ 32.2	306.2	(36.9)			504.2			805.7
Balance (in shares) at Dec. 31, 2019	42.9
Increase (Decrease) in Stockholders' Equity
Net income									107.5
Other comprehensive income (loss), net of tax									(1.0)
Balance at the end of the period at Sep. 30, 2020	$ 32.3	312.6	(37.9)			584.8			891.8
Balance (in shares) at Sep. 30, 2020	43.1
Balance at the beginning of the period at Mar. 31, 2020	$ 32.3	304.7	(37.5)			500.7			800.2
Balance (in shares) at Mar. 31, 2020	43.0
Increase (Decrease) in Stockholders' Equity
Net income						32.8			32.8
Other comprehensive income (loss), net of tax			0.1						0.1
Share-based compensation		3.0							3.0
Shares issued, net of shares withheld for employee taxes		(1.0)							(1.0)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Dividends						(19.6)			(19.6)
Balance at the end of the period at Jun. 30, 2020	$ 32.3	306.7	(37.4)			513.9			815.5
Balance (in shares) at Jun. 30, 2020	43.1
Increase (Decrease) in Stockholders' Equity
Net income						70.9			70.9
Other comprehensive income (loss), net of tax			(0.5)						(0.5)
Share-based compensation		6.0							6.0
Shares issued, net of shares withheld for employee taxes		(0.1)							(0.1)
Balance at the end of the period at Sep. 30, 2020	$ 32.3	$ 312.6	$ (37.9)			$ 584.8			$ 891.8
Balance (in shares) at Sep. 30, 2020	43.1

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares		3 Months Ended
	Sep. 03, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Condensed Consolidated Statement of Stockholders' Equity
Dividends (per share)	$ 0.23	$ 0.23	$ 0.22	$ 0.22	$ 0.21

DESCRIPTION OF THE BUSINESS

9 Months Ended

Sep. 30, 2020

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS

1. DESCRIPTION OF THE BUSINESS

Matson, Inc., a holding company incorporated 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:

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 two premium, expedited services from China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. 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, a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc. (“SSAT”). SSAT provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S. West Coast, including three facilities dedicated for MatNav’s use. Matson records its share of income from SSAT in Costs and Expenses in the Condensed 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 (“LCL”) consolidation 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.

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2020

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The Condensed Consolidated Financial Statements are unaudited, and 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. The Company accounts for its investment in SSAT using the equity method of accounting.

Due to the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim periods, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete consolidated financial statements.

The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2020.

Fiscal Period: The period end for Matson covered by this report is September 30, 2020. The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in September, or September 25, 2020.

Significant Accounting Policies: The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Use of Estimates: The preparation of the interim condensed 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; operating lease assets and liabilities; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions.

Allowance for Doubtful Accounts Receivable: 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 customers’ payment history, expected future credit losses and other factors which are regularly monitored by the Company.

Recognition of Revenues and Related Expenses: Revenue in the Company’s Condensed 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:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Ocean Transportation (in millions) (1)	2020		2019		2020		2019
Ocean Transportation services	$	490.8	$	424.1	$	1,284.5	$	1,218.6
Terminal and other related services		5.1		8.3		15.5		19.8
Fuel sales		1.3		3.3		6.0		7.9
Vessel management and related services		1.1		1.5		4.0		4.2
Total	$	498.3	$	437.2	$	1,310.0	$	1,250.5

(1)	Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues 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. Related costs are recognized as incurred.

◾	Fuel sales revenue and related costs are 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. Related costs are recognized as incurred.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Logistics (in millions) (1)	2020		2019 (2)		2020		2019 (2)
Transportation Brokerage and Freight Forwarding services	$	133.0	$	123.5	$	337.0	$	378.5
Warehouse and distribution services		9.5		8.5		25.9		25.2
Supply chain management and other services		4.4		2.9		10.3		8.2
Total	$	146.9	$	134.9	$	373.2	$	411.9

(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.

(2)

The Company has reclassified $3.9 million and $10.0 million from transportation brokerage and freight forwarding services to warehouse and distribution services for the three and nine months ended September 30, 2019, respectively, to be consistent with its current period presentation. There was no change in total Logistics revenue for the three and nine months ended September 30, 2019.

◾

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. 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 related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs 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 administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.

Capital Construction Fund: The Company’s Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. As of September 30, 2020 and December 31, 2019, $1.7 million of eligible accounts receivable was 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 Condensed Consolidated Balance Sheets. Cash on deposit in the CCF is held in a money market account and classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the nine months ended September 30, 2020, the Company deposited $97.1 million into the CCF, and made qualifying cash withdrawals of $97.1 million from the CCF, respectively. The Company made no qualifying cash deposits or withdrawals during the three months ended September 30, 2020. The balance of cash on deposit at September 30, 2020 and December 31, 2019 was nominal.

Investment in SSAT: Condensed income statement information for SSAT for the three and nine months ended September 30, 2020 and 2019 consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating revenue	$	273.9	$	288.7	$	796.1	$	825.6
Operating costs and expenses		(243.1)		(262.6)		(738.4)		(771.8)
Operating income		30.8		26.1		57.7		53.8
Net Income (1)	$	26.2	$	23.3	$	51.5	$	50.1
Company Share of SSAT’s Net Income (2)	$	7.7	$	8.4	$	15.4	$	17.8

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

(2)	The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations.

The Company’s investment in SSAT was $55.2 million and $76.2 million at September 30, 2020 and December 31, 2019, respectively. During the nine months ended September 30, 2020, the Company recorded an increase of $2.2 million in its investment in SSAT and a corresponding increase in retained earnings related to the formation of a new subsidiary of SSAT, whose controlling interest is retained by SSAT.

Deferred Loan Fees: The Company records deferred loan fees, excluding those related to the revolving credit facility, as a reduction to Total Debt in the Company’s Condensed Consolidated Balance Sheets in accordance with Accounting Standards Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. These costs are being amortized over the life of the related debt using the effective interest method (see Note 6).

Deferred loan fees related to the Company’s revolving credit facility are recorded in other long-term assets in the Company’s Condensed Consolidated Balance Sheets. These deferred loan fees are being amortized using the straight-line method as the difference between that and the use of the effective interest method is not material. These deferred loan fees were $2.5 million and $1.3 million at September 30, 2020 and December 31, 2019, respectively.

Contingencies: Environmental Matters: The Company’s Ocean Transportation business 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.

Dividends: The Company’s third quarter 2020 cash dividend of $0.23 per share was paid on September 3, 2020. On October 29, 2020, the Company’s Board of Directors declared a cash dividend of $0.23 per share payable on December 3, 2020.

New Accounting Pronouncements:

Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”): In June 2016, the Financial Accounting Standards Board (“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.

The Company adopted ASU 2016-13 effective January 1, 2020 using the modified retrospective approach. Upon adoption, the Company included an evaluation of expected future credit losses as part of its estimate for determining the allowance for doubtful accounts. The impact of this change was not material to the Company’s allowance for doubtful accounts receivable in the Condensed Consolidated Financial Statements. The Company will continue to monitor the impact of COVID-19 pandemic on expected future credit losses. The Company’s accounting policy related to allowance for doubtful accounts receivable is described above.

Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”): In August 2018, FASB issued ASU 2018-15 which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 on a prospective basis effective January 1, 2020. During the nine months ended September 30, 2020, the Company capitalized costs of $1.9 million related to cloud computing arrangements and which were included in other long-term assets on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2020.

REPORTABLE SEGMENTS

9 Months Ended

Sep. 30, 2020

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

3. REPORTABLE SEGMENTS

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

The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income, exclusive of interest expense and income taxes. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s SSAT segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business.

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 in certain transactions. Accordingly, inter-segment revenue of $40.2 million and $28.2 million for the three months ended September 30, 2020 and 2019, and $83.8 million and $75.3 million for the nine months ended September 30, 2020 and 2019, respectively, have been eliminated from operating revenues in the table below.

Reportable segment financial information for the three and nine months ended September 30, 2020 and 2019 are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating Revenue:
Ocean Transportation (1)	$	498.3	$	437.2	$	1,310.0	$	1,250.5
Logistics (2)		146.9		134.9		373.2		411.9
Total Operating Revenue	$	645.2	$	572.1	$	1,683.2	$	1,662.4
Operating Income:
Ocean Transportation (3)	$	86.5	$	43.9	$	136.7	$	73.0
Logistics		11.9		11.3		25.9		30.7
Total Operating Income		98.4		55.2		162.6		103.7
Interest expense, net		(5.7)		(6.2)		(22.5)		(16.9)
Other income (expense), net		2.4		(0.5)		4.5		0.9
Income before Income Taxes		95.1		48.5		144.6		87.7
Income taxes		(24.2)		(12.3)		(37.1)		(20.6)
Net Income	$	70.9	$	36.2	$	107.5	$	67.1

(1)	Ocean Transportation operating revenue excludes inter-segment revenue of $22.4 million and $14.0 million for the three months ended September 30, 2020 and 2019, and $43.7 million and $39.2 million for the nine months ended September 30, 2020 and 2019, respectively.

(2)	Logistics operating revenue excludes inter-segment revenue of $17.8 million and $14.2 million for the three months ended September 30, 2020 and 2019, and $40.1 million and $36.1 million for the nine months ended September 30, 2020 and 2019, respectively.

(3)

Ocean Transportation segment information includes $7.7 million and $8.4 million of equity in income from the Company’s equity investment in SSAT for the three months ended September 30, 2020 and 2019, and $15.4 million and $17.8 million for the nine months ended September 30, 2020 and 2019, respectively.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2020

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Property and equipment as of September 30, 2020 and December 31, 2019 consisted of the following:


	September 30,		December 31,
(In millions)	2020		2019
Cost:
Vessels	$	1,914.1	$	1,653.5
Containers and equipment		532.8		544.5
Terminal facilities and other property		117.2		114.4
Vessel construction in progress		230.4		488.9
Other construction in progress		17.2		35.4
Total Property and Equipment		2,811.7		2,836.7
Less: Accumulated Depreciation		(1,197.1)		(1,238.6)
Total Property and Equipment, net	$	1,614.6	$	1,598.1

Vessel construction in progress relates to progress payments for the construction of new vessels, capitalized owner’s items and capitalized interest. During the nine months ended September 30, 2020, the newly constructed vessel Lurline was placed into service resulting in $308.2 million, including $16.5 million of capitalized interest, being transferred from the Vessel construction in progress category to the Vessels category within Property and Equipment. Capitalized interest included in Vessel construction in progress was $11.0 million and $22.0 million at September 30, 2020 and December 31, 2019, respectively.

GOODWILL AND INTANGIBLES ASSETS

9 Months Ended

Sep. 30, 2020

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS

5. GOODWILL AND INTANGIBLES

Goodwill by segment as of September 30, 2020 and December 31, 2019 consisted of the following:


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

Intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following:


	September 30,		December 31,
(In millions)	2020		2019
Customer Relationships:
Ocean Transportation	$	140.6	$	140.6
Logistics		90.1		90.1
Total		230.7		230.7
Less: Accumulated Amortization		(63.3)		(55.1)
Total Customer Relationships, net		167.4		175.6
Trade name – Logistics		27.3		27.3
Total Intangible Assets, net	$	194.7	$	202.9

The Company evaluates its goodwill and intangible assets 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. The Company considered the deterioration in general economic and market conditions due to the COVID-19 pandemic and its impact on the performance of each of the Company’s reporting units. Based on the Company’s assessment of its market capitalization, future forecasts and the amount of excess of fair value over the carrying value of the reporting units in the 2019 annual impairment tests, the Company concluded that an impairment triggering event did not occur during the quarter ended September 30, 2020.

The Company will monitor events and changes in circumstances that could negatively impact the key assumptions used in determining the fair value, including the amount and timing of estimated future cash flows generated by the reporting units, long-term growth and discount rates, comparable company market valuations, and industry and economic trends. It is possible that future changes in such circumstances, including a more prolonged and/or severe COVID-19 pandemic,

or future changes in the assumptions and estimates used in assessing the fair value of the reporting unit, could require the Company to record a non-cash impairment charge.

DEBT

9 Months Ended

Sep. 30, 2020

DEBT

DEBT

6. DEBT

As of September 30, 2020 and December 31, 2019, the Company’s debt consisted of the following:


	September 30,		December 31,
(In millions)	2020		2019
Private Placement Term Loans:
5.79 %, payable through 2020	$	—	$	3.5
3.66 %, payable through 2023		27.4		31.9
4.16 %, payable through 2027		36.7		39.3
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		169.6		188.0
4.31 %, payable through 2032		29.0		30.3
4.35 %, payable through 2044		—		100.0
3.92 %, payable through 2045		—		69.5
Title XI Debt:
5.34 %, payable through 2028		17.6		19.8
5.27 %, payable through 2029		19.8		22.0
1.22 %, payable through 2043		185.9		—
1.35 %, payable through 2044		139.6		—
Revolving credit facility, maturity date of June 29, 2022		123.0		379.1
Total Debt		823.6		958.4
Less: Current portion		(53.4)		(48.4)
Total Long-term Debt		770.2		910.0
Less: Deferred loan fees		(15.7)		—
Total Long-term Debt, net of deferred loan fees	$	754.5	$	910.0

The Company’s debt is described in Note 6 to the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020 and in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2020.

Revolving Credit Facility: As of September 30, 2020, the Company had $518.9 million of remaining borrowing availability under the revolving credit facility. The Company used $8.1 million of the sublimit for letters of credit outstanding as of September 30, 2020. Based on the Company’s consolidated net leverage ratio, which stipulates borrowing margins, the interest rate applicable to revolving credit facility was approximately 3.25 percent at September 30, 2020. Borrowings under the revolving credit facility are classified as long-term debt in the Condensed Consolidated Balance Sheets, as principal payments are not required until the maturity date of June 29, 2022.

Debt Security and Guarantees: All of the debt of the Company and MatNav, including related guarantees, as of September 30, 2020 was unsecured, except for the Title XI debt.

Debt Maturities: As of September 30, 2020, debt maturities during the next five years and thereafter are as follows:


	As of
Year (in millions)	September 30, 2020
Remainder of 2020	$	12.3
2021		59.2
2022		188.0
2023		60.4
2024		51.7
Thereafter		452.0
Total Debt	$	823.6

Deferred Loan Fees: Deferred loan fees are recorded as a reduction of Total Debt in the Condensed Consolidated Balance Sheets in accordance with Accounting Standards Codification (“ASC”) 835, Imputation of Interest (“ASC 835”). Activity relating to deferred loan fees for the nine months ended September 30, 2020 are as follows:


Deferred Loan Fees (in millions)	Amount
Deferred financing costs related to Title XI bonds and private placement debt amendments	$	16.5
Deferred fees expensed related to the redemption of private placement debt		(0.3)
Amortization expense for the nine months ended September 30, 2020		(0.5)
Balance at September 30, 2020	$	15.7

As of September 30, 2020, amortization expense relating to deferred loan fees during the next five years and thereafter are as follows:


Year (in millions)	Amount
Remainder of 2020	$	0.4
2021		1.5
2022		1.2
2023		1.1
2024		1.1
Thereafter		10.4
Total amortization expense of deferred loan fees	$	15.7

LEASES

9 Months Ended

Sep. 30, 2020

LEASES

LEASES

7. LEASES

The Company’s leases are described in Note 9 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three and nine months ended September 30, 2020 and 2019 consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating lease cost	$	20.0	$	18.8	$	60.5	$	52.3
Short-term lease cost		4.4		0.9		6.9		5.8
Variable lease cost		0.2		0.1		0.6		0.3
Total lease cost	$	24.6	$	19.8	$	68.0	$	58.4

Sale and Leaseback of Equipment: On March 25, 2020, the Company entered into an agreement for the sale and leaseback of multiple tranches of chassis and container equipment. The net proceeds from the sales were $14.3 million, and the gain on the disposal of the equipment was not material to the Company’s Condensed Consolidated Financial Statements. The Company subsequently leased back the equipment under a five-year operating lease agreement that includes purchase options exercisable at fair market value. There were no sale and leaseback transactions during the second and third quarter of 2020, and during the nine months ended September 30, 2019.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2020

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2020 are as follows:


									Accumulated
					Non-				Other
			Post-		Qualified				Comprehensive
(In millions)	Pensions		Retirement		Plans		Other		Income (Loss)
Balance at December 31, 2019	$	(51.9)	$	16.3	$	(0.4)	$	(0.9)	$	(36.9)
Amortization of prior service cost		(0.5)		(0.6)		(0.1)		—		(1.2)
Amortization of net loss		1.1		0.1		0.1		—		1.3
Foreign currency exchange		—		—		—		(0.5)		(0.5)
Other adjustments		—		—		—		(0.2)		(0.2)
Balance at March 31, 2020		(51.3)		15.8		(0.4)		(1.6)		(37.5)
Amortization of prior service cost		(0.4)		(0.7)		—		—		(1.1)
Amortization of net loss		1.1		0.1		0.1		—		1.3
Foreign currency exchange		—		—		—		0.3		0.3
Other adjustments		—		—		—		(0.4)		(0.4)
Balance at June 30, 2020		(50.6)		15.2		(0.3)		(1.7)		(37.4)
Amortization of prior service cost		(0.4)		(0.8)		—		—		(1.2)
Amortization of net loss (gain)		0.3		0.3		(0.1)		—		0.5
Foreign currency exchange		—		—		—		0.1		0.1
Other adjustments		—		—		—		0.1		0.1
Balance at September 30, 2020	$	(50.7)	$	14.7	$	(0.4)	$	(1.5)	$	(37.9)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2019 consisted of the following:


									Accumulated
					Non-				Other
			Post-		Qualified				Comprehensive
(In millions)	Pensions		Retirement		Plans		Other		Income (Loss)
Balance at December 31, 2018	$	(55.8)	$	21.7	$	(0.1)	$	(0.3)	$	(34.5)
Amortization of prior service cost		(0.4)		(0.7)		—		—		(1.1)
Amortization of net loss		0.7		0.2		—		—		0.9
Balance at March 31, 2019		(55.5)		21.2		(0.1)		(0.3)		(34.7)
Amortization of prior service cost		(0.5)		(0.7)		(0.1)		0.1		(1.2)
Amortization of net loss		0.7		0.1		0.1		—		0.9
Other adjustments		—		—		—		(0.2)		(0.2)
Balance at June 30, 2019		(55.3)		20.6		(0.1)		(0.4)		(35.2)
Amortization of prior service cost		(0.4)		(0.5)		(0.1)		—		(1.0)
Amortization of net loss (gain)		1.6		(0.4)		—		—		1.2
Other adjustments		—		—		—		(0.7)		(0.7)
Balance at September 30, 2019	$	(54.1)	$	19.7	$	(0.2)	$	(1.1)	$	(35.7)

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

9. 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 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 September 30, 2020 and December 31, 2019 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)	September 30, 2020		Fair Value Measurements at September 30, 2020
Cash and cash equivalents	$	12.7	$	12.7	$	12.7	$	—	$	—
Restricted cash	$	3.0	$	3.0	$	3.0	$	—	$	—
Variable rate debt	$	123.0	$	123.0	$	—	$	123.0	$	—
Fixed rate debt	$	700.6	$	697.7	$	—	$	697.7	$	—

(In millions)	December 31, 2019		Fair Value Measurements at December 31, 2019
Cash and cash equivalents	$	21.2	$	21.2	$	21.2	$	—	$	—
Restricted cash	$	7.2	$	7.2	$	7.2	$	—	$	—
Variable rate debt	$	379.1	$	379.1	$	—	$	379.1	$	—
Fixed rate debt	$	579.3	$	585.9	$	—	$	585.9	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

EARNINGS PER-SHARE

9 Months Ended

Sep. 30, 2020

EARNINGS PER-SHARE

EARNINGS PER-SHARE

10. EARNINGS PER SHARE

Basic earnings per share is determined by dividing net income by the weighted average common shares outstanding during the period. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested restricted stock units. The computation of weighted average common shares outstanding excluded a nominal amount of anti-dilutive non-qualified stock options for each period ended September 30, 2020 and 2019.

The denominators used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 are as follows:


	Three Months Ended September 30, 2020					Nine Months Ended September 30, 2020
			Weighted	Per				Weighted	Per
			Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share
(In millions, except per share amounts)	Income		Shares	Amount		Income		Shares	Amount
Basic	$	70.9	43.1	$	1.65	$	107.5	43.0	$	2.50
Effect of Dilutive Securities			0.4		(0.02)			0.4		(0.02)
Diluted	$	70.9	43.5	$	1.63	$	107.5	43.4	$	2.48


	Three Months Ended September 30, 2019					Nine Months Ended September 30, 2019
			Weighted	Per				Weighted	Per
			Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share
(In millions, except per share amounts)	Income		Shares	Amount		Income		Shares	Amount
Basic	$	36.2	42.9	$	0.84	$	67.1	42.8	$	1.57
Effect of Dilutive Securities			0.4		—			0.4		(0.02)
Diluted	$	36.2	43.3	$	0.84	$	67.1	43.2	$	1.55

SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

11. SHARE-BASED COMPENSATION

During the three and nine months ended September 30, 2020, the Company granted approximately 3,000 and 341,200 in total of time-based restricted stock units and performance-based shares to certain of its employees at a weighted average grant date fair value of $41.82 and $38.67, respectively.

Total share-based compensation cost recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of selling, general and administrative expenses was $5.9 million and $2.5 million for the three months ended September 30, 2020 and 2019, and $12.0 million and $8.7 million for the nine months ended September 30, 2020 and 2019, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was $17.3 million at September 30, 2020, and is expected to be recognized over a weighted average period of approximately 1.9 years. Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

PENSION AND POST-RETIREMENT PLANS

9 Months Ended

Sep. 30, 2020

PENSION AND POST-RETIREMENT PLANS

PENSION AND POST-RETIREMENT PLANS

12. PENSION AND POST-RETIREMENT PLANS

The Company’s pension and post-retirement plans are described in Note 11 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income (Loss) for the qualified pension plans and the post-retirement benefit plans for the three and nine months ended September 30, 2020 and 2019 consisted of the following:


	Pension Benefits				Post-retirement Benefits
	Three Months Ended September 30,				Three Months Ended September 30,
(In millions)	2020		2019		2020		2019
Components of net periodic benefit cost (benefit):
Service cost	$	1.3	$	1.3	$	0.1	$	—
Interest cost		2.1		2.4		0.2		0.1
Expected return on plan assets		(3.9)		(2.7)		—		—
Amortization of net loss (gain)		0.5		2.2		0.1		(0.5)
Amortization of prior service credit		(0.6)		(0.5)		(1.0)		(0.9)
Net periodic benefit cost (benefit)	$	(0.6)	$	2.7	$	(0.6)	$	(1.3)


	Pension Benefits				Post-retirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
Components of net periodic benefit cost (benefit):
Service cost	$	3.8	$	3.5	$	0.4	$	0.3
Interest cost		5.9		7.0		0.6		0.7
Expected return on plan assets		(10.4)		(9.0)		—		—
Amortization of net loss (gain)		3.4		4.0		0.4		(0.1)
Amortization of prior service credit		(1.8)		(1.7)		(2.8)		(2.8)
Net periodic benefit cost (benefit)	$	0.9	$	3.8	$	(1.4)	$	(1.9)

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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+ Details

SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2020

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Fiscal Period

Significant Accounting Policies

Use of Estimates

Allowance for Doubtful Accounts Receivable

Recognition of Revenues and Related Expenses


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Ocean Transportation (in millions) (1)	2020		2019		2020		2019
Ocean Transportation services	$	490.8	$	424.1	$	1,284.5	$	1,218.6
Terminal and other related services		5.1		8.3		15.5		19.8
Fuel sales		1.3		3.3		6.0		7.9
Vessel management and related services		1.1		1.5		4.0		4.2
Total	$	498.3	$	437.2	$	1,310.0	$	1,250.5

(1)	Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues and fuel sales revenue categories which are denominated in foreign currencies.

◾

◾	Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred.

◾	Fuel sales revenue and related costs are 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. Related costs are recognized as incurred.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Logistics (in millions) (1)	2020		2019 (2)		2020		2019 (2)
Transportation Brokerage and Freight Forwarding services	$	133.0	$	123.5	$	337.0	$	378.5
Warehouse and distribution services		9.5		8.5		25.9		25.2
Supply chain management and other services		4.4		2.9		10.3		8.2
Total	$	146.9	$	134.9	$	373.2	$	411.9

(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.

(2)

◾

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

Capital Construction Fund

Investment in SSAT

Investment in SSAT: Condensed income statement information for SSAT for the three and nine months ended September 30, 2020 and 2019 consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating revenue	$	273.9	$	288.7	$	796.1	$	825.6
Operating costs and expenses		(243.1)		(262.6)		(738.4)		(771.8)
Operating income		30.8		26.1		57.7		53.8
Net Income (1)	$	26.2	$	23.3	$	51.5	$	50.1
Company Share of SSAT’s Net Income (2)	$	7.7	$	8.4	$	15.4	$	17.8

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

(2)	The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations.

Deferred Loan Fees

Contingencies and Other Matters

Dividends

New Accounting Pronouncements

New Accounting Pronouncements:

SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of condensed income statement information (unaudited) for SSAT


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating revenue	$	273.9	$	288.7	$	796.1	$	825.6
Operating costs and expenses		(243.1)		(262.6)		(738.4)		(771.8)
Operating income		30.8		26.1		57.7		53.8
Net Income (1)	$	26.2	$	23.3	$	51.5	$	50.1
Company Share of SSAT’s Net Income (2)	$	7.7	$	8.4	$	15.4	$	17.8

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

(2)	The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations.

Ocean Transportation

Schedule of principal revenue generating activities by segment


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Ocean Transportation (in millions) (1)	2020		2019		2020		2019
Ocean Transportation services	$	490.8	$	424.1	$	1,284.5	$	1,218.6
Terminal and other related services		5.1		8.3		15.5		19.8
Fuel sales		1.3		3.3		6.0		7.9
Vessel management and related services		1.1		1.5		4.0		4.2
Total	$	498.3	$	437.2	$	1,310.0	$	1,250.5

(1)	Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues and fuel sales revenue categories which are denominated in foreign currencies.

◾

◾	Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred.

◾	Fuel sales revenue and related costs are 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. Related costs are recognized as incurred.

Logistics

Schedule of principal revenue generating activities by segment


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Logistics (in millions) (1)	2020		2019 (2)		2020		2019 (2)
Transportation Brokerage and Freight Forwarding services	$	133.0	$	123.5	$	337.0	$	378.5
Warehouse and distribution services		9.5		8.5		25.9		25.2
Supply chain management and other services		4.4		2.9		10.3		8.2
Total	$	146.9	$	134.9	$	373.2	$	411.9

(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.

(2)

◾

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

REPORTABLE SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2020

REPORTABLE SEGMENTS

Schedule of reportable segment information


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating Revenue:
Ocean Transportation (1)	$	498.3	$	437.2	$	1,310.0	$	1,250.5
Logistics (2)		146.9		134.9		373.2		411.9
Total Operating Revenue	$	645.2	$	572.1	$	1,683.2	$	1,662.4
Operating Income:
Ocean Transportation (3)	$	86.5	$	43.9	$	136.7	$	73.0
Logistics		11.9		11.3		25.9		30.7
Total Operating Income		98.4		55.2		162.6		103.7
Interest expense, net		(5.7)		(6.2)		(22.5)		(16.9)
Other income (expense), net		2.4		(0.5)		4.5		0.9
Income before Income Taxes		95.1		48.5		144.6		87.7
Income taxes		(24.2)		(12.3)		(37.1)		(20.6)
Net Income	$	70.9	$	36.2	$	107.5	$	67.1

(1)	Ocean Transportation operating revenue excludes inter-segment revenue of $22.4 million and $14.0 million for the three months ended September 30, 2020 and 2019, and $43.7 million and $39.2 million for the nine months ended September 30, 2020 and 2019, respectively.

(2)	Logistics operating revenue excludes inter-segment revenue of $17.8 million and $14.2 million for the three months ended September 30, 2020 and 2019, and $40.1 million and $36.1 million for the nine months ended September 30, 2020 and 2019, respectively.

(3)

PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2020

PROPERTY AND EQUIPMENT

Schedule of property and equipment


	September 30,		December 31,
(In millions)	2020		2019
Cost:
Vessels	$	1,914.1	$	1,653.5
Containers and equipment		532.8		544.5
Terminal facilities and other property		117.2		114.4
Vessel construction in progress		230.4		488.9
Other construction in progress		17.2		35.4
Total Property and Equipment		2,811.7		2,836.7
Less: Accumulated Depreciation		(1,197.1)		(1,238.6)
Total Property and Equipment, net	$	1,614.6	$	1,598.1

GOODWILL AND INTANGIBLES ASSETS (Tables)

9 Months Ended

Sep. 30, 2020

GOODWILL AND INTANGIBLES ASSETS

Schedule of goodwill

Goodwill by segment as of September 30, 2020 and December 31, 2019 consisted of the following:


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

Schedule of intangible assets


	September 30,		December 31,
(In millions)	2020		2019
Customer Relationships:
Ocean Transportation	$	140.6	$	140.6
Logistics		90.1		90.1
Total		230.7		230.7
Less: Accumulated Amortization		(63.3)		(55.1)
Total Customer Relationships, net		167.4		175.6
Trade name – Logistics		27.3		27.3
Total Intangible Assets, net	$	194.7	$	202.9

DEBT (Tables)

9 Months Ended

Sep. 30, 2020

DEBT

Schedule of debt


	September 30,		December 31,
(In millions)	2020		2019
Private Placement Term Loans:
5.79 %, payable through 2020	$	—	$	3.5
3.66 %, payable through 2023		27.4		31.9
4.16 %, payable through 2027		36.7		39.3
3.37 %, payable through 2027		75.0		75.0
3.14 %, payable through 2031		169.6		188.0
4.31 %, payable through 2032		29.0		30.3
4.35 %, payable through 2044		—		100.0
3.92 %, payable through 2045		—		69.5
Title XI Debt:
5.34 %, payable through 2028		17.6		19.8
5.27 %, payable through 2029		19.8		22.0
1.22 %, payable through 2043		185.9		—
1.35 %, payable through 2044		139.6		—
Revolving credit facility, maturity date of June 29, 2022		123.0		379.1
Total Debt		823.6		958.4
Less: Current portion		(53.4)		(48.4)
Total Long-term Debt		770.2		910.0
Less: Deferred loan fees		(15.7)		—
Total Long-term Debt, net of deferred loan fees	$	754.5	$	910.0

Schedule of maturities of debt


	As of
Year (in millions)	September 30, 2020
Remainder of 2020	$	12.3
2021		59.2
2022		188.0
2023		60.4
2024		51.7
Thereafter		452.0
Total Debt	$	823.6

Schedule of deferred loan fees


Deferred Loan Fees (in millions)	Amount
Deferred financing costs related to Title XI bonds and private placement debt amendments	$	16.5
Deferred fees expensed related to the redemption of private placement debt		(0.3)
Amortization expense for the nine months ended September 30, 2020		(0.5)
Balance at September 30, 2020	$	15.7

Schedule of estimated amortization expense relating to deferred laon fees


Year (in millions)	Amount
Remainder of 2020	$	0.4
2021		1.5
2022		1.2
2023		1.1
2024		1.1
Thereafter		10.4
Total amortization expense of deferred loan fees	$	15.7

- 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.

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+ Details

LEASES (Tables)

9 Months Ended

Sep. 30, 2020

LEASES

Summary of lease cost


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Operating lease cost	$	20.0	$	18.8	$	60.5	$	52.3
Short-term lease cost		4.4		0.9		6.9		5.8
Variable lease cost		0.2		0.1		0.6		0.3
Total lease cost	$	24.6	$	19.8	$	68.0	$	58.4

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2020

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

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


									Accumulated
					Non-				Other
			Post-		Qualified				Comprehensive
(In millions)	Pensions		Retirement		Plans		Other		Income (Loss)
Balance at December 31, 2019	$	(51.9)	$	16.3	$	(0.4)	$	(0.9)	$	(36.9)
Amortization of prior service cost		(0.5)		(0.6)		(0.1)		—		(1.2)
Amortization of net loss		1.1		0.1		0.1		—		1.3
Foreign currency exchange		—		—		—		(0.5)		(0.5)
Other adjustments		—		—		—		(0.2)		(0.2)
Balance at March 31, 2020		(51.3)		15.8		(0.4)		(1.6)		(37.5)
Amortization of prior service cost		(0.4)		(0.7)		—		—		(1.1)
Amortization of net loss		1.1		0.1		0.1		—		1.3
Foreign currency exchange		—		—		—		0.3		0.3
Other adjustments		—		—		—		(0.4)		(0.4)
Balance at June 30, 2020		(50.6)		15.2		(0.3)		(1.7)		(37.4)
Amortization of prior service cost		(0.4)		(0.8)		—		—		(1.2)
Amortization of net loss (gain)		0.3		0.3		(0.1)		—		0.5
Foreign currency exchange		—		—		—		0.1		0.1
Other adjustments		—		—		—		0.1		0.1
Balance at September 30, 2020	$	(50.7)	$	14.7	$	(0.4)	$	(1.5)	$	(37.9)


									Accumulated
					Non-				Other
			Post-		Qualified				Comprehensive
(In millions)	Pensions		Retirement		Plans		Other		Income (Loss)
Balance at December 31, 2018	$	(55.8)	$	21.7	$	(0.1)	$	(0.3)	$	(34.5)
Amortization of prior service cost		(0.4)		(0.7)		—		—		(1.1)
Amortization of net loss		0.7		0.2		—		—		0.9
Balance at March 31, 2019		(55.5)		21.2		(0.1)		(0.3)		(34.7)
Amortization of prior service cost		(0.5)		(0.7)		(0.1)		0.1		(1.2)
Amortization of net loss		0.7		0.1		0.1		—		0.9
Other adjustments		—		—		—		(0.2)		(0.2)
Balance at June 30, 2019		(55.3)		20.6		(0.1)		(0.4)		(35.2)
Amortization of prior service cost		(0.4)		(0.5)		(0.1)		—		(1.0)
Amortization of net loss (gain)		1.6		(0.4)		—		—		1.2
Other adjustments		—		—		—		(0.7)		(0.7)
Balance at September 30, 2019	$	(54.1)	$	19.7	$	(0.2)	$	(1.1)	$	(35.7)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of fair value of financial instruments


					Quoted Prices in		Significant		Significant
	Total				Active Markets		Observable		Unobservable
	Carrying Value		Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)

(In millions)	September 30, 2020		Fair Value Measurements at September 30, 2020
Cash and cash equivalents	$	12.7	$	12.7	$	12.7	$	—	$	—
Restricted cash	$	3.0	$	3.0	$	3.0	$	—	$	—
Variable rate debt	$	123.0	$	123.0	$	—	$	123.0	$	—
Fixed rate debt	$	700.6	$	697.7	$	—	$	697.7	$	—

(In millions)	December 31, 2019		Fair Value Measurements at December 31, 2019
Cash and cash equivalents	$	21.2	$	21.2	$	21.2	$	—	$	—
Restricted cash	$	7.2	$	7.2	$	7.2	$	—	$	—
Variable rate debt	$	379.1	$	379.1	$	—	$	379.1	$	—
Fixed rate debt	$	579.3	$	585.9	$	—	$	585.9	$	—

- 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

EARNINGS PER-SHARE (Tables)

9 Months Ended

Sep. 30, 2020

EARNINGS PER-SHARE

Schedule of basic and diluted earnings per share


	Three Months Ended September 30, 2020					Nine Months Ended September 30, 2020
			Weighted	Per				Weighted	Per
			Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share
(In millions, except per share amounts)	Income		Shares	Amount		Income		Shares	Amount
Basic	$	70.9	43.1	$	1.65	$	107.5	43.0	$	2.50
Effect of Dilutive Securities			0.4		(0.02)			0.4		(0.02)
Diluted	$	70.9	43.5	$	1.63	$	107.5	43.4	$	2.48


	Three Months Ended September 30, 2019					Nine Months Ended September 30, 2019
			Weighted	Per				Weighted	Per
			Average	Common				Average	Common
	Net		Common	Share		Net		Common	Share
(In millions, except per share amounts)	Income		Shares	Amount		Income		Shares	Amount
Basic	$	36.2	42.9	$	0.84	$	67.1	42.8	$	1.57
Effect of Dilutive Securities			0.4		—			0.4		(0.02)
Diluted	$	36.2	43.3	$	0.84	$	67.1	43.2	$	1.55

PENSION AND POST-RETIREMENT PLANS (Tables)

9 Months Ended

Sep. 30, 2020

PENSION AND POST-RETIREMENT PLANS

Components of net periodic benefit cost (benefit)


	Pension Benefits				Post-retirement Benefits
	Three Months Ended September 30,				Three Months Ended September 30,
(In millions)	2020		2019		2020		2019
Components of net periodic benefit cost (benefit):
Service cost	$	1.3	$	1.3	$	0.1	$	—
Interest cost		2.1		2.4		0.2		0.1
Expected return on plan assets		(3.9)		(2.7)		—		—
Amortization of net loss (gain)		0.5		2.2		0.1		(0.5)
Amortization of prior service credit		(0.6)		(0.5)		(1.0)		(0.9)
Net periodic benefit cost (benefit)	$	(0.6)	$	2.7	$	(0.6)	$	(1.3)


	Pension Benefits				Post-retirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
Components of net periodic benefit cost (benefit):
Service cost	$	3.8	$	3.5	$	0.4	$	0.3
Interest cost		5.9		7.0		0.6		0.7
Expected return on plan assets		(10.4)		(9.0)		—		—
Amortization of net loss (gain)		3.4		4.0		0.4		(0.1)
Amortization of prior service credit		(1.8)		(1.7)		(2.8)		(2.8)
Net periodic benefit cost (benefit)	$	0.9	$	3.8	$	(1.4)	$	(1.9)

DESCRIPTION OF THE BUSINESS (Details)	9 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Sep. 30, 2020 facility segment	Sep. 30, 2019 segment
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2	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	3

SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total	$ 645.2	$ 572.1	$ 1,683.2	$ 1,662.4
Ocean Transportation
Ocean Transportation services	490.8	424.1	1,284.5	1,218.6
Terminal and other related services	5.1	8.3	15.5	19.8
Fuel sales	1.3	3.3	6.0	7.9
Vessel management services and related costs	1.1	1.5	$ 4.0	$ 4.2
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency			3.00%	3.00%
Total	498.3	437.2	$ 1,310.0	$ 1,250.5
Logistics
Transportation Brokerage and Freight Forwarding Services	133.0	123.5	337.0	378.5
Warehouse and distribution services	9.5	8.5	25.9	25.2
Supply chain management and other services	4.4	2.9	10.3	8.2
Total	$ 146.9	134.9	$ 373.2	$ 411.9
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency			3.00%	3.00%
Reclassify Transportation Brokerage and Freight Forwarding Services \| Logistics
Transportation Brokerage and Freight Forwarding Services		(3.9)		$ (10.0)
Warehouse and distribution services		$ 3.9		$ 10.0

SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accounts receivable, net	$ 234.3		$ 205.9
Cash Deposits Into CCF	97.1	$ 68.2
Withdrawals from Capital Construction Fund	97.1	$ 68.2
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	1.7		$ 1.7
Cash Deposits Into CCF	97.1
Withdrawals from Capital Construction Fund	$ 97.1

SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN SSAT (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Investments in affiliates
Investment in Terminal Joint Venture	$ 55.2		$ 55.2		$ 76.2
Financial information for equity method investment
Current assets	289.6		289.6		289.6
Noncurrent assets	2,517.1		2,517.1		2,555.8
Total Assets	2,806.7		2,806.7		2,845.4
Current liabilities	453.6		453.6		436.7
Noncurrent liabilities	1,461.3		1,461.3		1,603.0
Total liabilities and shareholders' equity	2,806.7		2,806.7		2,845.4
Company Share of Net Income	7.7	$ 8.4	15.4	$ 17.8
Ocean Transportation
Financial information for equity method investment
Company Share of Net Income	7.7	8.4	15.4	17.8
SSAT
Investments in affiliates
Increase in investment in SSAT			2.2
Investment in Terminal Joint Venture	55.2		55.2		$ 76.2
Financial information for equity method investment
Operating revenue	273.9	288.7	796.1	825.6
Operating costs and expenses	(243.1)	(262.6)	(738.4)	(771.8)
Operating Income	30.8	26.1	57.7	53.8
Net Income	$ 26.2	$ 23.3	$ 51.5	$ 50.1

SIGNIFICANT ACCOUNTING POLICIES - DEFERRED LOAN, DIVIDENDS AND OTHER (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended				9 Months Ended
	Oct. 29, 2020	Sep. 03, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Dec. 31, 2019
Dividends
Dividends (per share)		$ 0.23	$ 0.23	$ 0.22	$ 0.22	$ 0.21
Cash dividends declared per share (in dollars per share)	$ 0.23
Debt Issuance Costs
Deferred loan fees related to revolving credit facility							$ 2.5	$ 1.3
Capitalized Computer Software Costs
Capitalized software costs							$ 1.9

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended						9 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Sep. 30, 2020 USD ($) segment	Sep. 30, 2019 USD ($) segment
Segment results
Number of reportable segments \| segment							2	2
Total Operating Revenue	$ 645.2			$ 572.1			$ 1,683.2	$ 1,662.4
Total Operating Income	98.4			55.2			162.6	103.7
Interest expense, net	(5.7)			(6.2)			(22.5)	(16.9)
Other income (expense), net	2.4			(0.5)			4.5	0.9
Income before Income Taxes	95.1			48.5			144.6	87.7
Income tax expense	(24.2)			(12.3)			(37.1)	(20.6)
Net Income	70.9	$ 32.8	$ 3.8	36.2	$ 18.4	$ 12.5	107.5	67.1
Income from SSAT	7.7			8.4			15.4	17.8
Operating segments
Segment results
Total Operating Revenue	645.2			572.1			1,683.2	1,662.4
Total Operating Income	98.4			55.2			162.6	103.7
Intersegment Eliminations
Segment results
Total Operating Revenue	40.2			28.2			83.8	75.3
Ocean Transportation
Segment results
Income from SSAT	7.7			8.4			15.4	17.8
Ocean Transportation \| Operating segments
Segment results
Total Operating Revenue	498.3			437.2			1,310.0	1,250.5
Total Operating Income	86.5			43.9			136.7	73.0
Ocean Transportation \| Intersegment Eliminations
Segment results
Total Operating Revenue	22.4			14.0			43.7	39.2
Logistics \| Operating segments
Segment results
Total Operating Revenue	146.9			134.9			373.2	411.9
Total Operating Income	11.9			11.3			25.9	30.7
Logistics \| Intersegment Eliminations
Segment results
Total Operating Revenue	$ 17.8			$ 14.2			$ 40.1	$ 36.1

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Property and equipment
Cost	$ 2,811.7	$ 2,836.7
Less: Accumulated Depreciation	(1,197.1)	(1,238.6)
Property and equipment, net	1,614.6	1,598.1
Vessels
Property and equipment
Cost	1,914.1	1,653.5
Capitalized Interest
Interest Costs Capitalized	16.5
Transfer amount to Property and Equipment	308.2
Containers and equipment
Property and equipment
Cost	532.8	544.5
Terminal facilities and other property
Property and equipment
Cost	117.2	114.4
Vessel construction in progress
Property and equipment
Cost	230.4	488.9
Capitalized Interest
Interest Costs Capitalized	11.0	22.0
Other construction in progress
Property and equipment
Cost	$ 17.2	$ 35.4

GOODWILL AND INTANGIBLES ASSETS - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
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 INTANGIBLES - INTANGIBLE ASSETS NET (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Finite-lived Intangible Assets
Net Amount	$ 194.7	$ 202.9
Trade Names
Finite-lived Intangible Assets
Indefinite-Lived intangible asset	27.3	27.3
Customer Relationships.
Finite-lived Intangible Assets
Total	230.7	230.7
Less: Accumulated Amortization	(63.3)	(55.1)
Net Amount	167.4	175.6
Ocean Transportation \| Customer Relationships.
Finite-lived Intangible Assets
Total	140.6	140.6
Logistics \| Customer Relationships.
Finite-lived Intangible Assets
Total	$ 90.1	$ 90.1

DEBT - SUMMARY (Details) - USD ($) $ in Millions	9 Months Ended
DEBT - SUMMARY (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt
Total Debt	$ 823.6	$ 958.4
Less current portion	(53.4)	(48.4)
Total Long-term Debt	770.2	910.0
Less: Deferred loan fees	(15.7)
Total Long-term Debt, net of deferred loan fees	$ 754.5	910.0
5.79%, payable through 2020
Debt
Total Debt		$ 3.5
Interest rate (as a percent)	5.79%	5.79%
3.66%, payable through 2023
Debt
Total Debt	$ 27.4	$ 31.9
Interest rate (as a percent)	3.66%	3.66%
4.16%, payable through 2027
Debt
Total Debt	$ 36.7	$ 39.3
Interest rate (as a percent)	4.16%	4.16%
3.37 %, payable through 2027
Debt
Total Debt	$ 75.0	$ 75.0
Interest rate (as a percent)	3.37%	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 169.6	$ 188.0
Interest rate (as a percent)	3.14%	3.14%
4.31%, payable through 2032
Debt
Total Debt	$ 29.0	$ 30.3
Interest rate (as a percent)	4.31%	4.31%
4.35%, payable through 2044
Debt
Total Debt		$ 100.0
Interest rate (as a percent)	4.35%	4.35%
3.92%, payable through 2045
Debt
Total Debt		$ 69.5
Interest rate (as a percent)	3.92%	3.92%
5.34%, payable through 2028
Debt
Total Debt	$ 17.6	$ 19.8
Interest rate (as a percent)	5.34%	5.34%
5.27%, payable through 2029
Debt
Total Debt	$ 19.8	$ 22.0
Interest rate (as a percent)	5.27%	5.27%
1.22 %, payable through 2043
Debt
Total Debt	$ 185.9
Interest rate (as a percent)	1.22%
1.35 %, payable through 2044
Debt
Total Debt	$ 139.6
Interest rate (as a percent)	1.35%
Revolving Credit Facility
Debt
Total Debt	$ 123.0	$ 379.1
Funds available under the revolving credit facility	$ 518.9
Interest rate during period (as a percent)	3.25%

DEBT - DESCRIPTION (Details) - USD ($) $ in Millions	9 Months Ended
DEBT - DESCRIPTION (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt
Payment of debt financing costs	$ 18.5
Proceeds from issuance of debt	$ 325.5
Revolving Credit Facility
Debt
Interest rate during period (as a percent)	3.25%
Unused portion of credit facility	$ 518.9
Standby and commercial letters of credit
Debt
Standby letters of credit	$ 8.1
5.34%, payable through 2028
Debt
Interest rate (as a percent)	5.34%	5.34%
5.79%, payable through 2020
Debt
Interest rate (as a percent)	5.79%	5.79%
5.27%, payable through 2029
Debt
Interest rate (as a percent)	5.27%	5.27%
4.35%, payable through 2044
Debt
Interest rate (as a percent)	4.35%	4.35%

DEBT - REVOLVING CREDIT FACILITY (Details) $ in Millions	9 Months Ended
DEBT - REVOLVING CREDIT FACILITY (Details) $ in Millions	Sep. 30, 2020 USD ($)
Debt
Payment of debt financing costs	$ 18.5
Revolving Credit Facility
Debt
Funds available under the revolving credit facility	$ 518.9
Interest rate during period (as a percent)	3.25%
Standby and commercial letters of credit
Debt
Standby letters of credit	$ 8.1

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

DEBT - MATURITIES (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt maturities
Remainder of 2020	$ 12.3
2021	59.2
2022	188.0
2023	60.4
2024	51.7
Thereafter	452.0
Total Debt	$ 823.6	$ 958.4

DEBT - DEFERRED LOAN FEES (Details) $ in Millions	9 Months Ended
DEBT - DEFERRED LOAN FEES (Details) $ in Millions	Sep. 30, 2020 USD ($)
DEBT
Deferred financing costs related to Title XI bonds and private placement debt amendments	$ 16.5
Deferred fees expensed related to the paydown of private placement debt	(0.3)
Amortization expense	(0.5)
Ending Balance	$ 15.7

DEBT - AMORTIZATION EXPENSE (Details) $ in Millions	Sep. 30, 2020 USD ($)
DEBT
Remainder of 2020	$ 0.4
2021	1.5
2022	1.2
2023	1.1
2024	1.1
Thereafter	10.4
Total amortization expense of deferred loan fees	$ 15.7

LEASE - COMPONENTS OF LEASE COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Lease Cost
Operating lease cost	$ 20.0	$ 18.8	$ 60.5	$ 52.3
Short-term lease cost	4.4	0.9	6.9	5.8
Variable lease cost	0.2	0.1	0.6	0.3
Total lease cost	$ 24.6	$ 19.8	$ 68.0	$ 58.4

LEASE - SALE AND LEASEBACK OF EQUIPMENT (Details) $ in Millions		3 Months Ended	9 Months Ended
	Mar. 25, 2020 USD ($)	Sep. 30, 2020 item	Sep. 30, 2020 item
Sale Leaseback Transaction [Line Items]
Number of sale leaseback transactions \| item		0	0
Multiple Tranches of Chassis and Container Equipment
Sale Leaseback Transaction [Line Items]
Net proceeds \| $	$ 14.3
Base term	5 years

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	$ 815.5	$ 800.2	$ 805.7	$ 765.2	$ 763.0	$ 755.3	$ 805.7	$ 755.3
Amortization of prior service cost	(1.2)			(1.0)			(3.5)	(3.3)
Amortization of net loss (gain)	0.5			1.2			3.1	3.0
Other adjustments	0.2			(0.7)			(0.6)	(0.9)
Balance at the end of the period	891.8	815.5	800.2	797.7	765.2	763.0	891.8	797.7
Pensions
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(50.6)	(51.3)	(51.9)	(55.3)	(55.5)	(55.8)	(51.9)	(55.8)
Amortization of prior service cost	(0.4)	(0.4)	(0.5)	(0.4)	(0.5)	(0.4)
Amortization of net loss (gain)	0.3	1.1	1.1	1.6	0.7	0.7
Balance at the end of the period	(50.7)	(50.6)	(51.3)	(54.1)	(55.3)	(55.5)	(50.7)	(54.1)
Post Retirement
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	15.2	15.8	16.3	20.6	21.2	21.7	16.3	21.7
Amortization of prior service cost	(0.8)	(0.7)	(0.6)	(0.5)	(0.7)	(0.7)
Amortization of net loss (gain)	0.3	0.1	0.1	(0.4)	0.1	0.2
Balance at the end of the period	14.7	15.2	15.8	19.7	20.6	21.2	14.7	19.7
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)	(0.4)	(0.1)	(0.1)	(0.1)	(0.4)	(0.1)
Amortization of prior service cost			(0.1)	(0.1)	(0.1)
Amortization of net loss (gain)	(0.1)	0.1	0.1		0.1
Balance at the end of the period	(0.4)	(0.3)	(0.4)	(0.2)	(0.1)	(0.1)	(0.4)	(0.2)
Other
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(1.7)	(1.6)	(0.9)	(0.4)	(0.3)	(0.3)	(0.9)	(0.3)
Amortization of prior service cost					0.1
Foreign currency exchange		0.3	(0.5)
Other adjustments	0.1	(0.4)	(0.2)	(0.7)	(0.2)
Balance at the end of the period	(1.5)	(1.7)	(1.6)	(1.1)	(0.4)	(0.3)	(1.5)	(1.1)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(37.4)	(37.5)	(36.9)	(35.2)	(34.7)	(34.5)	(36.9)	(34.5)
Amortization of prior service cost	(1.2)	(1.1)	(1.2)	(1.0)	(1.2)	(1.1)
Amortization of net loss (gain)	0.5	1.3	1.3	1.2	0.9	0.9
Foreign currency exchange		0.3	(0.5)
Other adjustments	0.1	(0.4)	(0.2)	(0.7)	(0.2)
Balance at the end of the period	$ (37.9)	$ (37.4)	$ (37.5)	$ (35.7)	$ (35.2)	$ (34.7)	$ (37.9)	$ (35.7)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Fair value of financial instruments
Restricted Cash	$ 3.0		$ 8.7
Carrying value
Fair value of financial instruments
Cash and cash equivalents	12.7	$ 21.2
Restricted Cash	3.0	7.2
Variable rate debt	123.0	379.1
Fixed rate debt	700.6	579.3
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	12.7	21.2
Restricted Cash	3.0	7.2
Variable rate debt	123.0	379.1
Fixed rate debt	697.7	585.9
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	12.7	21.2
Restricted Cash	3.0	7.2
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Fair value of financial instruments
Variable rate debt	123.0	379.1
Fixed rate debt	$ 697.7	$ 585.9

EARNINGS PER-SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Income
Net Income, Basic	$ 70.9	$ 36.2	$ 107.5	$ 67.1
Net Income, Diluted	$ 70.9	$ 36.2	$ 107.5	$ 67.1
Weighted Average Common Shares
Basic (in shares)	43.1	42.9	43.0	42.8
Effect of Dilutive Securities (in shares)	0.4	0.4	0.4	0.4
Diluted (in shares)	43.5	43.3	43.4	43.2
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 1.65	$ 0.84	$ 2.50	$ 1.57
Effect of Dilutive Securities (in dollars per shares)	(0.02)		(0.02)	(0.02)
Net income, Diluted (in dollars per share)	$ 1.63	$ 0.84	$ 2.48	$ 1.55

SHARE-BASED COMPENSATION (Details) - Time-based and performance-based shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based compensation
Shares granted	3,000		341,200
Weighted-average grant date fair value (in dollars per share)	$ 41.82		$ 38.67
Total unrecognized compensation cost	$ 17.3		$ 17.3
Unrecognized compensation cost over weighted-average period to be recognized			1 year 10 months 24 days
Selling, general and administrative expenses
Share-based compensation
Total stock-based compensation cost	$ 5.9	$ 2.5	$ 12.0	$ 8.7

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$ 1.3	$ 1.3	$ 3.8	$ 3.5
Interest cost	2.1	2.4	5.9	7.0
Expected return on plan assets	(3.9)	(2.7)	(10.4)	(9.0)
Amortization of net loss	0.5	2.2	3.4	4.0
Amortization of prior service credit	(0.6)	(0.5)	(1.8)	(1.7)
Net periodic benefit cost (benefit)	(0.6)	2.7	0.9	3.8
Post-retirement Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	0.1		0.4	0.3
Interest cost	0.2	0.1	0.6	0.7
Amortization of net loss	0.1	(0.5)	0.4	(0.1)
Amortization of prior service credit	(1.0)	(0.9)	(2.8)	(2.8)
Net periodic benefit cost (benefit)	$ (0.6)	$ (1.3)	$ (1.4)	$ (1.9)