0001558370-22-011530 | 10-Q | XBRL Viewer

REPORTABLE SEGMENTS

6 Months Ended

Jun. 30, 2022

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 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 $69.2 million and $49.0 million for the three months ended June 30, 2022 and 2021, and $142.4 million and $82.7 million for the six months ended June 30, 2022 and 2021, respectively, have been eliminated from operating revenues in the table below.

Reportable segment financial information for the three and six months ended June 30, 2022 and 2021 are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating Revenue:
Ocean Transportation (1)	$	1,049.2	$	682.9	$	1,993.1	$	1,243.4
Logistics (2)		211.9		192.0		433.5		343.3
Total Operating Revenue	$	1,261.1	$	874.9	$	2,426.6	$	1,586.7
Operating Income:
Ocean Transportation (3)	$	470.0	$	201.0	$	886.2	$	315.1
Logistics		23.1		12.9		39.5		19.0
Total Operating Income		493.1		213.9		925.7		334.1
Interest expense, net		(4.5)		(5.5)		(9.3)		(12.8)
Other income (expense), net		1.8		1.5		3.8		2.9
Income before Taxes		490.4		209.9		920.2		324.2
Income taxes		(109.7)		(47.4)		(200.3)		(74.5)
Net Income	$	380.7	$	162.5	$	719.9	$	249.7

(1)	Ocean Transportation operating revenue excludes inter-segment revenue of $24.0 million and $18.7 million for the three months ended June 30, 2022 and 2021, and $45.8 million and $33.8 million for the six months ended June 30, 2022 and 2021, respectively.

(2)	Logistics operating revenue excludes inter-segment revenue of $45.2 million and $30.3 million for the three months ended June 30, 2022 and 2021, and $96.6 million and $48.9 million for the six months ended June 30, 2022 and 2021, respectively.

(3)	Ocean Transportation segment information includes $24.7 million and $12.8 million of equity in income from the Company’s equity investment in SSAT for the three months ended June 30, 2022 and 2021, and $58.7 million and $22.0 million for the six months ended June 30, 2022 and 2021, 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

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+ Details

SHARE-BASED COMPENSATION	6 Months Ended
Jun. 30, 2022
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	11. SHARE-BASED COMPENSATION The Company granted time-based restricted stock units and performance-based shares to certain of its employees totaling approximately 12,400 and 180,500 shares with a weighted average grant date fair value of $93.32 and $100.83 per share during the three and six months ended June 30, 2022, 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 $5.8 million and $4.7 million for the three months ended June 30, 2022 and 2021, and $10.5 million and $9.5 million for the six month ended June 30, 2022 and 2021, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was $33.9 million at June 30, 2022, and is expected to be recognized over a weighted average period of approximately 2.1 years. Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2022

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

11. SHARE-BASED COMPENSATION

The Company granted time-based restricted stock units and performance-based shares to certain of its employees totaling approximately 12,400 and 180,500 shares with a weighted average grant date fair value of $93.32 and $100.83 per share during the three and six months ended June 30, 2022, 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 $5.8 million and $4.7 million for the three months ended June 30, 2022 and 2021, and $10.5 million and $9.5 million for the six month ended June 30, 2022 and 2021, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was $33.9 million at June 30, 2022, and is expected to be recognized over a weighted average period of approximately 2.1 years. Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Fair value of financial instruments
Restricted Cash	$ 5.3		$ 5.3
Carrying value
Fair value of financial instruments
Cash and cash equivalents	609.0	$ 282.4
Restricted Cash	5.3	5.3
Fixed rate debt	596.6	629.0
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	609.0	282.4
Restricted Cash	5.3	5.3
Fixed rate debt	523.5	615.1
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	609.0	282.4
Restricted Cash	5.3	5.3
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Fair value of financial instruments
Fixed rate debt	$ 523.5	$ 615.1

GOODWILL AND INTANGIBLES (Tables)

6 Months Ended

Jun. 30, 2022

GOODWILL AND INTANGIBLES

Schedule of goodwill


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

Schedule of intangible assets


	June 30,		December 31,
(In millions)	2022		2021
Customer Relationships:
Ocean Transportation	$	140.6	$	140.6
Logistics		90.1		90.1
Total		230.7		230.7
Less: Accumulated Amortization		(82.2)		(76.9)
Total Customer Relationships, net		148.5		153.8
Trade name – Logistics		27.3		27.3
Total Intangible Assets, net	$	175.8	$	181.1

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE

Schedule of basic and diluted earnings per share


	Three Months Ended June 30, 2022					Six Months Ended June 30, 2022
			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	$	380.7	39.9	$	9.54	$	719.9	40.4	$	17.82
Effect of Dilutive Securities			0.2		(0.05)			0.3		(0.13)
Diluted	$	380.7	40.1	$	9.49	$	719.9	40.7	$	17.69


	Three Months Ended June 30, 2021					Six Months Ended June 30, 2021
			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	$	162.5	43.5	$	3.74	$	249.7	43.4	$	5.75
Effect of Dilutive Securities			0.3		(0.03)			0.4		(0.05)
Diluted	$	162.5	43.8	$	3.71	$	249.7	43.8	$	5.70

LEASES - COMPONENTS OF LEASE COST (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lease Cost
Operating lease cost	$ 41.6	$ 27.4	$ 80.0	$ 52.7
Short-term lease cost	0.1	0.8	0.2	2.8
Variable lease cost	0.2	0.2	0.4	0.4
Total lease cost	$ 41.9	$ 28.4	$ 80.6	$ 55.9

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

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, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022.

Fiscal Period: The period end for Matson covered by this report is June 30, 2022. The period end for MatNav and its subsidiaries covered by this report occurred on July 1, 2022.

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, 2021.

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 and other receivables; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; income from SSAT; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions.

Recognition of Revenues and 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				Six Months Ended
	June 30,				June 30,
Ocean Transportation (in millions) (1)	2022		2021		2022		2021
Ocean Transportation services	$	1,040.2	$	674.4	$	1,976.9	$	1,228.6
Terminal and other related services		4.7		4.9		8.4		7.7
Fuel sales		2.8		1.8		4.7		3.2
Vessel management and related services		1.5		1.8		3.1		3.9
Total	$	1,049.2	$	682.9	$	1,993.1	$	1,243.4

(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 selling, 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				Six Months Ended
	June 30,				June 30,
Logistics (in millions) (1)	2022		2021		2022		2021
Transportation Brokerage and Freight Forwarding services	$	184.4	$	174.5	$	379.3	$	309.8
Warehousing and distribution services		13.8		10.4		25.9		19.6
Supply chain management and other services		13.7		7.1		28.3		13.9
Total	$	211.9	$	192.0	$	433.5	$	343.3

(1)	Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 6.5 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, agent commissions, 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, agent

commissions, 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 administration 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, 2021. As of June 30, 2022 and December 31, 2021, $9.8 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 six months ended June 30, 2022 and 2021, the Company deposited $10.7 million and $31.2 million into the CCF and made qualifying cash withdrawals of $10.7 million and $31.2 million from the CCF, respectively. The balance of cash on deposit at June 30, 2022 and December 31, 2021 was nominal.

Investment in SSAT: Condensed income statement information for SSAT for the three and six months ended June 30, 2022 and 2021 consisted of the following:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating revenue	$	391.1	$	322.2	$	821.5	$	628.3
Operating costs and expenses		(300.5)		(284.0)		(607.4)		(557.1)
Operating income		90.6		38.2		214.1		71.2
Net Income (1)	$	78.0	$	34.3	$	178.1	$	63.2
Company Share of SSAT’s Net Income (2)	$	24.7	$	12.8	$	58.7	$	22.0

(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 $93.1 million and $58.7 million at June 30, 2022 and December 31, 2021, respectively.

Dividends: The Company’s second quarter 2022 cash dividend of $0.30 per share was paid on June 2, 2022. On June 22, 2022, the Company’s Board of Directors declared a cash dividend of $0.31 per share payable on September 1, 2022 to shareholders of record on August 4, 2022.

Repurchase of Shares: During the three months ended June 30, 2022, the Company repurchased approximately 1.6 million shares for a total cost of $138.1 million. During the six months ended June 30, 2022, the Company repurchased approximately 2.3 million shares for a total cost of $206.7 million. As of June 30, 2022, the maximum number of remaining shares that may be repurchased under the Company’s stock repurchase program was approximately 1.2 million shares.

DEBT (Tables)

6 Months Ended

Jun. 30, 2022

DEBT

Schedule of debt


	June 30,		December 31,
(In millions)	2022		2021
Private Placement Term Loans:
3.66 %, payable through 2023	$	9.1	$	13.7
4.16 %, payable through 2027		26.2		28.8
3.37 %, payable through 2027		63.5		69.2
3.14 %, payable through 2031		142.0		151.2
4.31 %, payable through 2032		24.2		25.4
Title XI Debt:
5.34 %, payable through 2028		14.3		15.4
5.27 %, payable through 2029		16.5		17.6
1.22 %, payable through 2043		170.1		174.1
1.35 %, payable through 2044		130.7		133.6
Total Debt		596.6		629.0
Less: Current portion		(65.0)		(65.0)
Total Long-term Debt		531.6		564.0
Less: Deferred loan fees		(13.7)		(14.3)
Total Long-term Debt, net of deferred loan fees	$	517.9	$	549.7

Schedule of maturities of debt


	As of
Year (in millions)	June 30, 2022
Remainder of 2022	$	32.5
2023		60.4
2024		51.7
2025		51.7
2026		51.7
Thereafter		348.6
Total Debt	$	596.6

- 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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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

+ Details

PENSION AND POST-RETIREMENT PLANS (Tables)

6 Months Ended

Jun. 30, 2022

PENSION AND POST-RETIREMENT PLANS

Components of net periodic benefit cost (benefit)


	Pension Benefits				Post-retirement Benefits
	Three Months Ended June 30,				Three Months Ended June 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	1.2	$	1.1	$	0.1	$	0.1
Interest cost		1.6		1.7		0.2		0.2
Expected return on plan assets		(4.0)		(3.7)		—		—
Amortization of net loss		0.9		1.2		0.2		0.3
Amortization of prior service credit		(0.2)		(0.5)		(0.9)		(0.9)
Net periodic benefit cost (benefit)	$	(0.5)	$	(0.2)	$	(0.4)	$	(0.3)


	Pension Benefits				Post-retirement Benefits
	Six Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	2.4	$	2.3	$	0.3	$	0.3
Interest cost		3.3		3.2		0.4		0.4
Expected return on plan assets		(7.9)		(7.3)		—		—
Amortization of net loss		1.7		2.5		0.4		0.6
Amortization of prior service credit		(0.5)		(1.1)		(1.8)		(1.8)
Net periodic benefit cost (benefit)	$	(1.0)	$	(0.4)	$	(0.7)	$	(0.5)

SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN SSAT (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Investments in affiliates
Investment in Terminal Joint Venture	$ 93.1		$ 93.1		$ 58.7
Financial information for equity method investment
Company Share of Net Income	24.7	$ 12.8	58.7	$ 22.0
SSAT
Financial information for equity method investment
Company Share of Net Income	24.7	12.8	58.7	22.0
SSAT
Investments in affiliates
Investment in Terminal Joint Venture	93.1		93.1		$ 58.7
Financial information for equity method investment
Operating revenue	391.1	322.2	821.5	628.3
Operating costs and expenses	(300.5)	(284.0)	(607.4)	(557.1)
Operating Income	90.6	38.2	214.1	71.2
Net Income	$ 78.0	$ 34.3	$ 178.1	$ 63.2

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Property and equipment
Property and Equipment	$ 3,163.2	$ 3,087.4
Less: Accumulated Depreciation	(1,268.5)	(1,209.1)
Property and equipment, net	1,894.7	1,878.3
Vessels
Property and equipment
Property and Equipment	2,271.5	2,243.8
Containers and equipment
Property and equipment
Property and Equipment	725.6	680.9
Terminal facilities and other property
Property and equipment
Property and Equipment	131.1	128.3
Vessel construction in progress
Property and equipment
Property and Equipment		14.9
Other construction in progress
Property and equipment
Property and Equipment	$ 35.0	$ 19.5

LEASES (Tables)

6 Months Ended

Jun. 30, 2022

LEASES

Summary of lease cost


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating lease cost	$	41.6	$	27.4	$	80.0	$	52.7
Short-term lease cost		0.1		0.8		0.2		2.8
Variable lease cost		0.2		0.2		0.4		0.4
Total lease cost	$	41.9	$	28.4	$	80.6	$	55.9

Summary of maturities of operating lease liabilities at March 31, 2022


	As of
Year (in millions)	June 30, 2022
Remainder of 2022	$	83.6
2023		141.9
2024		121.4
2025		70.5
2026		28.1
Thereafter		59.2
Total lease payments		504.7
Less: Interest		(38.1)
Present value of operating lease liabilities		466.6
Less: Short-term portion		(152.4)
Long-term operating lease liabilities	$	314.2

PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2022

PROPERTY AND EQUIPMENT

Schedule of property and equipment


	June 30,		December 31,
(In millions)	2022		2021
Cost:
Vessels	$	2,271.5	$	2,243.8
Containers and equipment		725.6		680.9
Terminal facilities and other property		131.1		128.3
Vessel construction in progress		—		14.9
Other construction in progress		35.0		19.5
Total Property and Equipment		3,163.2		3,087.4
Less: Accumulated Depreciation		(1,268.5)		(1,209.1)
Total Property and Equipment, net	$	1,894.7	$	1,878.3

DEBT - REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility	$ 650.0
Funds available under the revolving credit facility	642.0
Used portion of revolving credit facility	0.0	$ 0.0
Standby commercial letters of credit
Debt
Used portion of revolving credit facility	$ 8.0

- 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

GOODWILL AND INTANGIBLES - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Intangible assets
Total Intangible Assets, net	$ 175.8	$ 181.1
Trade Names
Intangible assets
Indefinite-Lived intangible asset	27.3	27.3
Customer Relationships
Intangible assets
Total	230.7	230.7
Less: Accumulated Amortization	(82.2)	(76.9)
Total	148.5	153.8
Ocean Transportation \| Customer Relationships
Intangible assets
Total	140.6	140.6
Logistics \| Customer Relationships
Intangible assets
Total	$ 90.1	$ 90.1

SHARE-BASED COMPENSATION (Details) - Time Based And Performance Based Shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based compensation
Shares granted	12,400		180,500
Weighted-average grant date fair value (in dollars per share)	$ 93.32		$ 100.83
Total unrecognized compensation cost	$ 33.9		$ 33.9
Unrecognized compensation cost over weighted-average period to be recognized			2 years 1 month 6 days
Selling, general and administrative expenses
Share-based compensation
Total stock-based compensation cost	$ 5.8	$ 4.7	$ 10.5	$ 9.5

SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounts receivable, net	$ 380.6		$ 343.7
Cash Deposits Into CCF	10.7	$ 31.2
Withdrawals from CCF	10.7	31.2
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	9.8		$ 9.8
Cash Deposits Into CCF	10.7	31.2
Withdrawals from CCF	$ 10.7	$ 31.2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	$ 1,910.7	$ 1,667.4	$ 1,028.9	$ 961.2	$ 1,667.4	$ 961.2
Amortization of prior service cost	(0.9)		(1.2)		(1.8)	(2.3)
Amortization of net loss (gain)	2.0		1.3		2.8	2.5
Other adjustments	(1.9)		0.1		(1.6)	(0.1)
Balance at the end of the period	2,133.6	1,910.7	1,172.8	1,028.9	2,133.6	1,172.8
Pensions
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(38.7)	(39.1)	(61.2)	(61.7)	(39.1)	(61.7)
Amortization of prior service cost	(0.2)	(0.2)	(0.4)	(0.4)
Amortization of net loss (gain)	0.7	0.6	1.0	0.9
Balance at the end of the period	(38.2)	(38.7)	(60.6)	(61.2)	(38.2)	(60.6)
Post Retirement
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	9.6	10.1	11.7	12.2	10.1	12.2
Amortization of prior service cost	(0.7)	(0.7)	(0.7)	(0.7)
Amortization of net loss (gain)	0.2	0.2	0.3	0.2
Balance at the end of the period	9.1	9.6	11.3	11.7	9.1	11.3
Non-Qualified Plans
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(0.7)	(0.7)	(0.5)	(0.6)	(0.7)	(0.6)
Amortization of prior service cost			(0.1)
Amortization of net loss (gain)				0.1
Balance at the end of the period	(0.7)	(0.7)	(0.6)	(0.5)	(0.7)	(0.6)
Other
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(0.9)	(1.2)	(0.9)	(0.7)	(1.2)	(0.7)
Amortization of net loss (gain)	1.1
Foreign currency exchange	(2.3)	0.3	(0.1)	(0.2)
Other adjustments	0.4		0.2
Balance at the end of the period	(1.7)	(0.9)	(0.8)	(0.9)	(1.7)	(0.8)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(30.7)	(30.9)	(50.9)	(50.8)	(30.9)	(50.8)
Amortization of prior service cost	(0.9)	(0.9)	(1.2)	(1.1)
Amortization of net loss (gain)	2.0	0.8	1.3	1.2
Foreign currency exchange	(2.3)	0.3	(0.1)	(0.2)
Other adjustments	0.4		0.2
Balance at the end of the period	$ (31.5)	$ (30.7)	$ (50.7)	$ (50.9)	$ (31.5)	$ (50.7)

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares		3 Months Ended
	Jun. 02, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Condensed Consolidated Statements of Shareholders' Equity
Dividends (per share)	$ 0.30	$ 0.31	$ 0.30	$ 0.30	$ 0.23

SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of condensed income statement information for SSAT


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating revenue	$	391.1	$	322.2	$	821.5	$	628.3
Operating costs and expenses		(300.5)		(284.0)		(607.4)		(557.1)
Operating income		90.6		38.2		214.1		71.2
Net Income (1)	$	78.0	$	34.3	$	178.1	$	63.2
Company Share of SSAT’s Net Income (2)	$	24.7	$	12.8	$	58.7	$	22.0

(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				Six Months Ended
	June 30,				June 30,
Ocean Transportation (in millions) (1)	2022		2021		2022		2021
Ocean Transportation services	$	1,040.2	$	674.4	$	1,976.9	$	1,228.6
Terminal and other related services		4.7		4.9		8.4		7.7
Fuel sales		2.8		1.8		4.7		3.2
Vessel management and related services		1.5		1.8		3.1		3.9
Total	$	1,049.2	$	682.9	$	1,993.1	$	1,243.4

(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.

◾

◾	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				Six Months Ended
	June 30,				June 30,
Logistics (in millions) (1)	2022		2021		2022		2021
Transportation Brokerage and Freight Forwarding services	$	184.4	$	174.5	$	379.3	$	309.8
Warehousing and distribution services		13.8		10.4		25.9		19.6
Supply chain management and other services		13.7		7.1		28.3		13.9
Total	$	211.9	$	192.0	$	433.5	$	343.3

(1)	Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 6.5 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies.

◾

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

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

Environmental Matters: The Company’s Ocean Transportation business has certain risks that could result in expenditures for environmental remediation. Except as described below, 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.

On November 10, 2021, the California Air Resources Board (“CARB”) issued a Notice of Violation (“NOV”) to Matson for alleged violations of the Airborne Toxic Control Measure for Auxiliary Diesel Engines Operated on Ocean-Going Vessels At-Berth in a California Port pursuant to California Code of Regulations, title 17, section 93118.3. CARB regulations require that a company’s fleet plug into shore power for at least 80 percent of visits at California ports and reduce auxiliary engine power generation by at least 80 percent. The NOV alleges that Matson’s fleet did not meet the 80 percent thresholds during visits to the Port of Long Beach in 2020. The violations were alleged to have been incurred by chartered vessels in the CLX+ service. These chartered vessels were not outfitted with alternative maritime power capability which would have allowed them to plug into the shore power grid and shut down the vessel diesel generators when at dock. The Company has presented mitigating factors for consideration in settlement discussions with CARB, as well as plans to achieve compliance in 2022. Although potential penalties for 2020, 2021 and 2022 violations could, in the aggregate, reasonably be expected to exceed $1 million, they are not expected to be material to the Company’s financial condition, results of operations, or cash flows.

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.

DESCRIPTION OF THE BUSINESS

6 Months Ended

Jun. 30, 2022

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 premium, expedited services primarily from China to Long Beach, California, and provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor, Alaska to Asia. In addition, subsidiaries of MatNav provide 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 currently provides terminal and stevedoring services to various carriers at eight 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 extends the geographic reach of Matson’s transportation network throughout North America and Asia, and 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, trans-loading, value-added packaging and distribution services (collectively, “Warehousing” services); and (iv) supply chain management, non-vessel operating common carrier (“NVOCC”) freight forwarding and other services.

DEBT

6 Months Ended

Jun. 30, 2022

DEBT

DEBT

6. DEBT

As of June 30, 2022 and December 31, 2021, the Company’s debt consisted of the following:


	June 30,		December 31,
(In millions)	2022		2021
Private Placement Term Loans:
3.66 %, payable through 2023	$	9.1	$	13.7
4.16 %, payable through 2027		26.2		28.8
3.37 %, payable through 2027		63.5		69.2
3.14 %, payable through 2031		142.0		151.2
4.31 %, payable through 2032		24.2		25.4
Title XI Debt:
5.34 %, payable through 2028		14.3		15.4
5.27 %, payable through 2029		16.5		17.6
1.22 %, payable through 2043		170.1		174.1
1.35 %, payable through 2044		130.7		133.6
Total Debt		596.6		629.0
Less: Current portion		(65.0)		(65.0)
Total Long-term Debt		531.6		564.0
Less: Deferred loan fees		(13.7)		(14.3)
Total Long-term Debt, net of deferred loan fees	$	517.9	$	549.7

Except as described below, the Company’s debt is described in Note 8 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Revolving Credit Facility: The Company’s revolving credit facility has committed available borrowing of up to $650 million and matures on March 31, 2026. As of June 30, 2022, the Company had $642.0 million of remaining borrowing availability under the revolving credit facility. The Company used $8.0 million of the revolving credit facility for letters of credit outstanding as of June 30, 2022. There were no outstanding borrowings under the revolving credit facility as of June 30, 2022 and December 31, 2021.

Debt Security and Guarantees: All of the debt of the Company and MatNav, including related guarantees, as of June 30, 2022 was unsecured, except for the Title XI debt.

Debt Maturities: As of June 30, 2022, debt maturities during the next five years and thereafter are as follows:


	As of
Year (in millions)	June 30, 2022
Remainder of 2022	$	32.5
2023		60.4
2024		51.7
2025		51.7
2026		51.7
Thereafter		348.6
Total Debt	$	596.6

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2022

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Property and equipment as of June 30, 2022 and December 31, 2021 consisted of the following:


	June 30,		December 31,
(In millions)	2022		2021
Cost:
Vessels	$	2,271.5	$	2,243.8
Containers and equipment		725.6		680.9
Terminal facilities and other property		131.1		128.3
Vessel construction in progress		—		14.9
Other construction in progress		35.0		19.5
Total Property and Equipment		3,163.2		3,087.4
Less: Accumulated Depreciation		(1,268.5)		(1,209.1)
Total Property and Equipment, net	$	1,894.7	$	1,878.3

PENSION AND POST-RETIREMENT PLANS

6 Months Ended

Jun. 30, 2022

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, 2021. 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 six months ended June 30, 2022 and 2021 consisted of the following:


	Pension Benefits				Post-retirement Benefits
	Three Months Ended June 30,				Three Months Ended June 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	1.2	$	1.1	$	0.1	$	0.1
Interest cost		1.6		1.7		0.2		0.2
Expected return on plan assets		(4.0)		(3.7)		—		—
Amortization of net loss		0.9		1.2		0.2		0.3
Amortization of prior service credit		(0.2)		(0.5)		(0.9)		(0.9)
Net periodic benefit cost (benefit)	$	(0.5)	$	(0.2)	$	(0.4)	$	(0.3)


	Pension Benefits				Post-retirement Benefits
	Six Months Ended June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	2.4	$	2.3	$	0.3	$	0.3
Interest cost		3.3		3.2		0.4		0.4
Expected return on plan assets		(7.9)		(7.3)		—		—
Amortization of net loss		1.7		2.5		0.4		0.6
Amortization of prior service credit		(0.5)		(1.1)		(1.8)		(1.8)
Net periodic benefit cost (benefit)	$	(1.0)	$	(0.4)	$	(0.7)	$	(0.5)

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
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+ Details

SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Total	$ 1,261.1	$ 874.9	$ 2,426.6	$ 1,586.7
Ocean Transportation
Total	1,049.2	682.9	1,993.1	1,243.4
Logistics
Total	211.9	192.0	433.5	343.3
Ocean. Transportation.
Ocean Transportation services	1,040.2	674.4	1,976.9	1,228.6
Terminal and other related services	4.7	4.9	8.4	7.7
Fuel sales	2.8	1.8	4.7	3.2
Vessel management and related services	1.5	1.8	3.1	3.9
Total	1,049.2	682.9	$ 1,993.1	1,243.4
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency			3.00%
Logistics.
Transportation Brokerage and Freight Forwarding Services	184.4	174.5	$ 379.3	309.8
Warehousing and distribution services	13.8	10.4	25.9	19.6
Supply chain management and other services	13.7	7.1	28.3	13.9
Total	$ 211.9	$ 192.0	$ 433.5	$ 343.3
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency			6.50%

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net Income
Net Income, Basic	$ 380.7	$ 162.5	$ 719.9	$ 249.7
Net Income, Diluted	$ 380.7	$ 162.5	$ 719.9	$ 249.7
Weighted Average Common Shares
Basic (in shares)	39.9	43.5	40.4	43.4
Effect of Dilutive Securities (in shares)	0.2	0.3	0.3	0.4
Diluted (in shares)	40.1	43.8	40.7	43.8
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 9.54	$ 3.74	$ 17.82	$ 5.75
Effect of Dilutive Securities (in dollars per shares)	(0.05)	(0.03)	(0.13)	(0.05)
Net income, Diluted (in dollars per share)	$ 9.49	$ 3.71	$ 17.69	$ 5.70

DESCRIPTION OF THE BUSINESS (Details)	6 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Jun. 30, 2022 facility segment
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2
SSAT
DESCRIPTION OF THE BUSINESS
Number of terminal facilities on which SSAT provides terminal and stevedoring services on the U.S. West Coast	3
Ocean Transportation \| SSAT
DESCRIPTION OF THE BUSINESS
Ownership interest in SSAT (as a percent)	35.00%
Number of terminal facilities on which SSAT provides terminal and stevedoring services on the U.S. West Coast	8

LEASES - MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
Remainder of 2022	$ 83.6
2023	141.9
2024	121.4
2025	70.5
2026	28.1
Thereafter	59.2
Total lease payments	504.7
Less: Interest	(38.1)
Present value of operating lease liabilities	466.6
Less: Short-term portion	(152.4)	$ (137.6)
Long-term operating lease liabilities	$ 314.2	$ 307.4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows From Operating Activities:
Net income	$ 719.9	$ 249.7
Reconciling adjustments:
Depreciation and amortization	71.1	67.9
Amortization of operating lease right of use assets	75.3	49.2
Deferred income taxes	9.4	15.2
Share-based compensation expense	10.5	9.5
Income from SSAT	(58.7)	(22.0)
Distribution from SSAT	26.3	21.0
Other	(0.7)	(1.0)
Changes in assets and liabilities:
Accounts receivable, net	(37.6)	(60.2)
Deferred dry-docking payments	(14.7)	(17.4)
Deferred dry-docking amortization	12.9	12.6
Prepaid expenses and other assets	(48.3)	(38.7)
Accounts payable, accruals and other liabilities	4.5	3.7
Operating lease liabilities	(74.2)	(47.1)
Other long-term liabilities	(4.6)	(3.6)
Net cash provided by operating activities	691.1	238.8
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(11.4)
Other capital expenditures	(68.4)	(101.3)
Proceeds from disposal of property and equipment	0.8	1.7
Cash deposits into Capital Construction Fund	(10.7)	(31.2)
Withdrawals from Capital Construction Fund	10.7	31.2
Net cash used in investing activities	(79.0)	(99.6)
Cash Flows From Financing Activities:
Repayments of debt	(32.5)	(26.8)
Proceeds from revolving credit facility		241.9
Repayments of revolving credit facility		(313.7)
Payment of financing costs		(3.0)
Dividends paid	(25.0)	(20.2)
Repurchase of Matson common stock	(208.5)
Tax withholding related to net share settlements of restricted stock units	(19.5)	(14.4)
Net cash used in financing activities	(285.5)	(136.2)
Net Increase in Cash, Cash Equivalents and Restricted Cash	326.6	3.0
Cash, Cash Equivalents and Restricted Cash, Beginning of the Period	287.7	19.7
Cash, Cash Equivalents and Restricted Cash, End of the Period	614.3	22.7
Reconciliation of Cash, Cash Equivalents and Restricted Cash, End of the Period:
Cash and Cash Equivalents	609.0	17.4
Restricted Cash	5.3	5.3
Total Cash, Cash Equivalents and Restricted Cash, End of the Period	614.3	22.7
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	8.4	10.4
Income tax payments, net of refunds	211.7	75.2
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	6.1	7.7
Accrued dividends	$ 12.4	$ 13.2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2022

FAIR VALUE OF FINANCIAL INSTRUMENTS

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)	June 30, 2022		Fair Value Measurements at June 30, 2022
Cash and cash equivalents	$	609.0	$	609.0	$	609.0	$	—	$	—
Restricted cash	$	5.3	$	5.3	$	5.3	$	—	$	—
Fixed rate debt	$	596.6	$	523.5	$	—	$	523.5	$	—

(In millions)	December 31, 2021		Fair Value Measurements at December 31, 2021
Cash and cash equivalents	$	282.4	$	282.4	$	282.4	$	—	$	—
Restricted cash	$	5.3	$	5.3	$	5.3	$	—	$	—
Fixed rate debt	$	629.0	$	615.1	$	—	$	615.1	$	—

- 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

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 2022

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).

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

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2022 consisted of the following:


									Accumulated
			Post-		Non-				Other
	Pension		Retirement		Qualified				Comprehensive
(In millions)	Benefits		Benefits		Plans		Other		Income (Loss)
Balance at December 31, 2021	$	(39.1)	$	10.1	$	(0.7)	$	(1.2)	$	(30.9)
Amortization of prior service cost		(0.2)		(0.7)		—		—		(0.9)
Amortization of net loss		0.6		0.2		—		—		0.8
Foreign currency exchange		—		—		—		0.3		0.3
Balance at March 31, 2022		(38.7)		9.6		(0.7)		(0.9)		(30.7)
Amortization of prior service cost		(0.2)		(0.7)		—		—		(0.9)
Amortization of net loss		0.7		0.2		—		1.1		2.0
Foreign currency exchange		—		—		—		(2.3)		(2.3)
Other adjustments		—		—		—		0.4		0.4
Balance at June 30, 2022	$	(38.2)	$	9.1	$	(0.7)	$	(1.7)	$	(31.5)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2021 consisted of the following:


									Accumulated
			Post-		Non-				Other
	Pension		Retirement		Qualified				Comprehensive
(In millions)	Benefits		Benefits		Plans		Other		Income (Loss)
Balance at December 31, 2020	$	(61.7)	$	12.2	$	(0.6)	$	(0.7)	$	(50.8)
Amortization of prior service cost		(0.4)		(0.7)		—		—		(1.1)
Amortization of net loss		0.9		0.2		0.1		—		1.2
Foreign currency exchange		—		—		—		(0.2)		(0.2)
Balance at March 31, 2021		(61.2)		11.7		(0.5)		(0.9)		(50.9)
Amortization of prior service cost		(0.4)		(0.7)		(0.1)		—		(1.2)
Amortization of net loss		1.0		0.3		—		—		1.3
Foreign currency exchange		—		—		—		(0.1)		(0.1)
Other adjustments		—		—		—		0.2		0.2
Balance at June 30, 2021	$	(60.6)	$	11.3	$	(0.6)	$	(0.8)	$	(50.7)

REPORTABLE SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2022

REPORTABLE SEGMENTS

Schedule of reportable segment information


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating Revenue:
Ocean Transportation (1)	$	1,049.2	$	682.9	$	1,993.1	$	1,243.4
Logistics (2)		211.9		192.0		433.5		343.3
Total Operating Revenue	$	1,261.1	$	874.9	$	2,426.6	$	1,586.7
Operating Income:
Ocean Transportation (3)	$	470.0	$	201.0	$	886.2	$	315.1
Logistics		23.1		12.9		39.5		19.0
Total Operating Income		493.1		213.9		925.7		334.1
Interest expense, net		(4.5)		(5.5)		(9.3)		(12.8)
Other income (expense), net		1.8		1.5		3.8		2.9
Income before Taxes		490.4		209.9		920.2		324.2
Income taxes		(109.7)		(47.4)		(200.3)		(74.5)
Net Income	$	380.7	$	162.5	$	719.9	$	249.7

(1)	Ocean Transportation operating revenue excludes inter-segment revenue of $24.0 million and $18.7 million for the three months ended June 30, 2022 and 2021, and $45.8 million and $33.8 million for the six months ended June 30, 2022 and 2021, respectively.

(2)	Logistics operating revenue excludes inter-segment revenue of $45.2 million and $30.3 million for the three months ended June 30, 2022 and 2021, and $96.6 million and $48.9 million for the six months ended June 30, 2022 and 2021, respectively.

(3)	Ocean Transportation segment information includes $24.7 million and $12.8 million of equity in income from the Company’s equity investment in SSAT for the three months ended June 30, 2022 and 2021, and $58.7 million and $22.0 million for the six months ended June 30, 2022 and 2021, respectively.

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for credit loss	$ 10.9	$ 10.1

DEBT - SUMMARY (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Debt
Total Debt	$ 596.6	$ 629.0
Less: Current portion	(65.0)	(65.0)
Total Long-term Debt	531.6	564.0
Less: Deferred loan fees	(13.7)	(14.3)
Total Long-term Debt, net of deferred loan fees	517.9	549.7
3.66 %, payable through 2023
Debt
Total Debt	$ 9.1	13.7
Interest rate (as a percent)	3.66%
4.16 %, payable through 2027
Debt
Total Debt	$ 26.2	28.8
Interest rate (as a percent)	4.16%
3.37 %, payable through 2027
Debt
Total Debt	$ 63.5	69.2
Interest rate (as a percent)	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 142.0	151.2
Interest rate (as a percent)	3.14%
4.31 %, payable through 2032
Debt
Total Debt	$ 24.2	25.4
Interest rate (as a percent)	4.31%
5.34 %, payable through 2028
Debt
Total Debt	$ 14.3	15.4
Interest rate (as a percent)	5.34%
5.27 %, payable through 2029
Debt
Total Debt	$ 16.5	17.6
Interest rate (as a percent)	5.27%
1.22 %, payable through 2043
Debt
Total Debt	$ 170.1	174.1
Interest rate (as a percent)	1.22%
1.35 %, payable through 2044
Debt
Total Debt	$ 130.7	$ 133.6
Interest rate (as a percent)	1.35%
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility	$ 650.0

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and 2021.

The computations for basic and diluted earnings per share for the three and six months ended June 30, 2022 and 2021 are as follows:


	Three Months Ended June 30, 2022					Six Months Ended June 30, 2022
			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	$	380.7	39.9	$	9.54	$	719.9	40.4	$	17.82
Effect of Dilutive Securities			0.2		(0.05)			0.3		(0.13)
Diluted	$	380.7	40.1	$	9.49	$	719.9	40.7	$	17.69


	Three Months Ended June 30, 2021					Six Months Ended June 30, 2021
			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	$	162.5	43.5	$	3.74	$	249.7	43.4	$	5.75
Effect of Dilutive Securities			0.3		(0.03)			0.4		(0.05)
Diluted	$	162.5	43.8	$	3.71	$	249.7	43.8	$	5.70

LEASES

6 Months Ended

Jun. 30, 2022

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, 2021.

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 six months ended June 30, 2022 and 2021 consisted of the following:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating lease cost	$	41.6	$	27.4	$	80.0	$	52.7
Short-term lease cost		0.1		0.8		0.2		2.8
Variable lease cost		0.2		0.2		0.4		0.4
Total lease cost	$	41.9	$	28.4	$	80.6	$	55.9

Maturities of operating lease liabilities at June 30, 2022 are as follows:


	As of
Year (in millions)	June 30, 2022
Remainder of 2022	$	83.6
2023		141.9
2024		121.4
2025		70.5
2026		28.1
Thereafter		59.2
Total lease payments		504.7
Less: Interest		(38.1)
Present value of operating lease liabilities		466.6
Less: Short-term portion		(152.4)
Long-term operating lease liabilities	$	314.2

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating Revenue:
Total Operating Revenue	$ 1,261.1	$ 874.9	$ 2,426.6	$ 1,586.7
Costs and Expenses:
Operating costs	(728.4)	(615.6)	(1,432.1)	(1,160.3)
Income from SSAT	24.7	12.8	58.7	22.0
Selling, general and administrative	(64.3)	(58.2)	(127.5)	(114.3)
Total Costs and Expenses	(768.0)	(661.0)	(1,500.9)	(1,252.6)
Operating Income	493.1	213.9	925.7	334.1
Interest expense	(4.5)	(5.5)	(9.3)	(12.8)
Other income (expense), net	1.8	1.5	3.8	2.9
Income before Taxes	490.4	209.9	920.2	324.2
Income taxes	(109.7)	(47.4)	(200.3)	(74.5)
Net Income	380.7	162.5	719.9	249.7
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	380.7	162.5	719.9	249.7
Other Comprehensive Income (Loss):
Amortization of prior service cost	(0.9)	(1.2)	(1.8)	(2.3)
Amortization of net loss (gain)	2.0	1.3	2.8	2.5
Other adjustments	(1.9)	0.1	(1.6)	(0.1)
Total Other Comprehensive Income (Loss)	(0.8)	0.2	(0.6)	0.1
Comprehensive Income	$ 379.9	$ 162.7	$ 719.3	$ 249.8
Basic Earnings Per Share (in dollars per share)	$ 9.54	$ 3.74	$ 17.82	$ 5.75
Diluted Earnings Per Share (in dollars per share)	$ 9.49	$ 3.71	$ 17.69	$ 5.70
Weighted Average Number of Shares Outstanding:
Basic (in shares)	39.9	43.5	40.4	43.4
Diluted (in shares)	40.1	43.8	40.7	43.8
Ocean. Transportation.
Operating Revenue:
Total Operating Revenue	$ 1,049.2	$ 682.9	$ 1,993.1	$ 1,243.4
Logistics.
Operating Revenue:
Total Operating Revenue	$ 211.9	$ 192.0	$ 433.5	$ 343.3

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Amortization of net loss (gain)	$ (2.0)	$ (1.3)	$ (2.8)	$ (2.5)
Amortization of prior service credit	0.9	1.2	1.8	2.3
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	1.2	1.1	2.4	2.3
Interest cost	1.6	1.7	3.3	3.2
Expected return on plan assets	(4.0)	(3.7)	(7.9)	(7.3)
Amortization of net loss	0.9	1.2	1.7	2.5
Amortization of prior service credit	(0.2)	(0.5)	(0.5)	(1.1)
Net periodic benefit cost (benefit)	(0.5)	(0.2)	(1.0)	(0.4)
Post-retirement benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	0.1	0.1	0.3	0.3
Interest cost	0.2	0.2	0.4	0.4
Amortization of net loss	0.2	0.3	0.4	0.6
Amortization of prior service credit	(0.9)	(0.9)	(1.8)	(1.8)
Net periodic benefit cost (benefit)	$ (0.4)	$ (0.3)	$ (0.7)	$ (0.5)

DEBT - MATURITIES (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Debt maturities
Remainder of 2022	$ 32.5
2023	60.4
2024	51.7
2025	51.7
2026	51.7
Thereafter	348.6
Total Debt	$ 596.6	$ 629.0

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

SIGNIFICANT ACCOUNTING POLICIES - DIVIDENDS AND REPURCHASE OF SHARES (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended				6 Months Ended
	Jun. 22, 2022	Jun. 02, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022
Dividends
Dividends (per share)		$ 0.30	$ 0.31	$ 0.30	$ 0.30	$ 0.23
Cash dividends declared per share (in dollars per share)	$ 0.31
Shares repurchased (in shares)			1.6				2.3
Shares repurchased			$ 138.1	$ 68.6			$ 206.7
Maximum number of shares remaining to be repurchased			1.2				1.2

Condensed Consolidated Statements of Shareholders' 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, 2020	$ 32.4	$ 321.5	$ (50.8)	$ 658.1	$ 961.2
Balance (in shares) at Dec. 31, 2020	43.2
Increase (Decrease) in Shareholders' Equity
Net income				87.2	87.2
Other comprehensive income (loss), net of tax			(0.1)		(0.1)
Share-based compensation		4.8			4.8
Shares issued, net of shares withheld for employee taxes	$ 0.2	(14.3)			(14.1)
Shares issued, net of shares withheld for employee taxes (in shares)	0.2
Dividends				(10.1)	(10.1)
Balance at the end of the period at Mar. 31, 2021	$ 32.6	312.0	(50.9)	735.2	1,028.9
Balance (in shares) at Mar. 31, 2021	43.4
Balance at the beginning of the period at Dec. 31, 2020	$ 32.4	321.5	(50.8)	658.1	961.2
Balance (in shares) at Dec. 31, 2020	43.2
Increase (Decrease) in Shareholders' Equity
Net income					249.7
Other comprehensive income (loss), net of tax					0.1
Balance at the end of the period at Jun. 30, 2021	$ 32.6	316.5	(50.7)	874.4	1,172.8
Balance (in shares) at Jun. 30, 2021	43.5
Balance at the beginning of the period at Mar. 31, 2021	$ 32.6	312.0	(50.9)	735.2	1,028.9
Balance (in shares) at Mar. 31, 2021	43.4
Increase (Decrease) in Shareholders' Equity
Net income				162.5	162.5
Other comprehensive income (loss), net of tax			0.2		0.2
Share-based compensation		4.7			4.7
Shares issued, net of shares withheld for employee taxes		(0.2)			(0.2)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Dividends				(23.3)	(23.3)
Balance at the end of the period at Jun. 30, 2021	$ 32.6	316.5	(50.7)	874.4	1,172.8
Balance (in shares) at Jun. 30, 2021	43.5
Balance at the beginning of the period at Dec. 31, 2021	$ 30.7	314.1	(30.9)	1,353.5	1,667.4
Balance (in shares) at Dec. 31, 2021	41.0
Increase (Decrease) in Shareholders' Equity
Net income				339.2	339.2
Other comprehensive income (loss), net of tax			0.2		0.2
Share-based compensation		4.7			4.7
Shares issued, net of shares withheld for employee taxes	$ 0.2	(19.5)			(19.3)
Shares issued, net of shares withheld for employee taxes (in shares)	0.2
Shares repurchased	$ (0.5)	(3.1)		(65.0)	(68.6)
Shares repurchased (in shares)	(0.7)
Dividends				(12.9)	(12.9)
Balance at the end of the period at Mar. 31, 2022	$ 30.4	296.2	(30.7)	1,614.8	1,910.7
Balance (in shares) at Mar. 31, 2022	40.5
Balance at the beginning of the period at Dec. 31, 2021	$ 30.7	314.1	(30.9)	1,353.5	1,667.4
Balance (in shares) at Dec. 31, 2021	41.0
Increase (Decrease) in Shareholders' Equity
Net income					719.9
Other comprehensive income (loss), net of tax					(0.6)
Shares repurchased					$ (206.7)
Shares repurchased (in shares)					(2.3)
Balance at the end of the period at Jun. 30, 2022	$ 29.2	294.7	(31.5)	1,841.2	$ 2,133.6
Balance (in shares) at Jun. 30, 2022	39.0
Balance at the beginning of the period at Mar. 31, 2022	$ 30.4	296.2	(30.7)	1,614.8	1,910.7
Balance (in shares) at Mar. 31, 2022	40.5
Increase (Decrease) in Shareholders' Equity
Net income				380.7	380.7
Other comprehensive income (loss), net of tax			(0.8)		(0.8)
Share-based compensation		5.7			5.7
Shares issued, net of shares withheld for employee taxes		(0.2)			(0.2)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Shares repurchased	$ (1.2)	(7.0)		(129.9)	$ (138.1)
Shares repurchased (in shares)	(1.6)				(1.6)
Dividends				(24.4)	$ (24.4)
Balance at the end of the period at Jun. 30, 2022	$ 29.2	$ 294.7	$ (31.5)	$ 1,841.2	$ 2,133.6
Balance (in shares) at Jun. 30, 2022	39.0

GOODWILL AND INTANGIBLES

6 Months Ended

Jun. 30, 2022

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES

5. GOODWILL AND INTANGIBLES

Goodwill by segment as of June 30, 2022 and December 31, 2021 consisted of the following:


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

Intangible assets as of June 30, 2022 and December 31, 2021 consisted of the following:


	June 30,		December 31,
(In millions)	2022		2021
Customer Relationships:
Ocean Transportation	$	140.6	$	140.6
Logistics		90.1		90.1
Total		230.7		230.7
Less: Accumulated Amortization		(82.2)		(76.9)
Total Customer Relationships, net		148.5		153.8
Trade name – Logistics		27.3		27.3
Total Intangible Assets, net	$	175.8	$	181.1

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 general economic and market conditions 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 2021 annual impairment tests, the Company concluded that an impairment triggering event did not occur during the three months ended June 30, 2022.

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 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.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022 consisted of the following:


									Accumulated
			Post-		Non-				Other
	Pension		Retirement		Qualified				Comprehensive
(In millions)	Benefits		Benefits		Plans		Other		Income (Loss)
Balance at December 31, 2021	$	(39.1)	$	10.1	$	(0.7)	$	(1.2)	$	(30.9)
Amortization of prior service cost		(0.2)		(0.7)		—		—		(0.9)
Amortization of net loss		0.6		0.2		—		—		0.8
Foreign currency exchange		—		—		—		0.3		0.3
Balance at March 31, 2022		(38.7)		9.6		(0.7)		(0.9)		(30.7)
Amortization of prior service cost		(0.2)		(0.7)		—		—		(0.9)
Amortization of net loss		0.7		0.2		—		1.1		2.0
Foreign currency exchange		—		—		—		(2.3)		(2.3)
Other adjustments		—		—		—		0.4		0.4
Balance at June 30, 2022	$	(38.2)	$	9.1	$	(0.7)	$	(1.7)	$	(31.5)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2021 consisted of the following:


									Accumulated
			Post-		Non-				Other
	Pension		Retirement		Qualified				Comprehensive
(In millions)	Benefits		Benefits		Plans		Other		Income (Loss)
Balance at December 31, 2020	$	(61.7)	$	12.2	$	(0.6)	$	(0.7)	$	(50.8)
Amortization of prior service cost		(0.4)		(0.7)		—		—		(1.1)
Amortization of net loss		0.9		0.2		0.1		—		1.2
Foreign currency exchange		—		—		—		(0.2)		(0.2)
Balance at March 31, 2021		(61.2)		11.7		(0.5)		(0.9)		(50.9)
Amortization of prior service cost		(0.4)		(0.7)		(0.1)		—		(1.2)
Amortization of net loss		1.0		0.3		—		—		1.3
Foreign currency exchange		—		—		—		(0.1)		(0.1)
Other adjustments		—		—		—		0.2		0.2
Balance at June 30, 2021	$	(60.6)	$	11.3	$	(0.6)	$	(0.8)	$	(50.7)

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021 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)	June 30, 2022		Fair Value Measurements at June 30, 2022
Cash and cash equivalents	$	609.0	$	609.0	$	609.0	$	—	$	—
Restricted cash	$	5.3	$	5.3	$	5.3	$	—	$	—
Fixed rate debt	$	596.6	$	523.5	$	—	$	523.5	$	—

(In millions)	December 31, 2021		Fair Value Measurements at December 31, 2021
Cash and cash equivalents	$	282.4	$	282.4	$	282.4	$	—	$	—
Restricted cash	$	5.3	$	5.3	$	5.3	$	—	$	—
Fixed rate debt	$	629.0	$	615.1	$	—	$	615.1	$	—

- 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

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 609.0	$ 282.4
Accounts receivable, net of allowance for credit losses of $10.9 million and $10.1 million, respectively	380.6	343.7
Prepaid expenses and other assets	123.1	78.4
Total current assets	1,112.7	704.5
Long-term Assets:
Investment in SSAT	93.1	58.7
Property and equipment, net	1,894.7	1,878.3
Operating lease right of use assets	455.1	434.6
Goodwill	327.8	327.8
Intangible assets, net	175.8	181.1
Deferred dry-docking costs, net	60.8	68.7
Other long-term assets	38.6	39.4
Total long-term assets	3,045.9	2,988.6
Total Assets	4,158.6	3,693.1
Current Liabilities:
Current portion of debt	65.0	65.0
Accounts payable and accruals	304.8	308.4
Operating lease liabilities	152.4	137.6
Other liabilities	109.9	101.4
Total current liabilities	632.1	612.4
Long-term Liabilities:
Long-term debt, net of deferred loan fees	517.9	549.7
Long-term operating lease liabilities	314.2	307.4
Deferred income taxes	433.8	425.2
Other long-term liabilities	127.0	131.0
Total long-term liabilities	1,392.9	1,413.3
Commitments and Contingencies (see Note 13)
Shareholders' Equity:
Common stock	29.2	30.7
Additional paid in capital	294.7	314.1
Accumulated other comprehensive loss, net	(31.5)	(30.9)
Retained earnings	1,841.2	1,353.5
Total shareholders' equity	2,133.6	1,667.4
Total Liabilities and Shareholders' Equity	$ 4,158.6	$ 3,693.1

GOODWILL AND INTANGIBLES - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 327.8	$ 327.8
Ocean Transportation
Goodwill [Line Items]
Goodwill	222.6
Logistics
Goodwill [Line Items]
Goodwill	$ 105.2

SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2022

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Fiscal Period

Fiscal Period: The period end for Matson covered by this report is June 30, 2022. The period end for MatNav and its subsidiaries covered by this report occurred on July 1, 2022.

Significant Accounting Policies

Use of Estimates

Recognition of Revenues and Expenses


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Ocean Transportation (in millions) (1)	2022		2021		2022		2021
Ocean Transportation services	$	1,040.2	$	674.4	$	1,976.9	$	1,228.6
Terminal and other related services		4.7		4.9		8.4		7.7
Fuel sales		2.8		1.8		4.7		3.2
Vessel management and related services		1.5		1.8		3.1		3.9
Total	$	1,049.2	$	682.9	$	1,993.1	$	1,243.4

(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.

◾

◾	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				Six Months Ended
	June 30,				June 30,
Logistics (in millions) (1)	2022		2021		2022		2021
Transportation Brokerage and Freight Forwarding services	$	184.4	$	174.5	$	379.3	$	309.8
Warehousing and distribution services		13.8		10.4		25.9		19.6
Supply chain management and other services		13.7		7.1		28.3		13.9
Total	$	211.9	$	192.0	$	433.5	$	343.3

(1)	Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 6.5 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies.

◾

◾	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 six months ended June 30, 2022 and 2021 consisted of the following:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2022		2021		2022		2021
Operating revenue	$	391.1	$	322.2	$	821.5	$	628.3
Operating costs and expenses		(300.5)		(284.0)		(607.4)		(557.1)
Operating income		90.6		38.2		214.1		71.2
Net Income (1)	$	78.0	$	34.3	$	178.1	$	63.2
Company Share of SSAT’s Net Income (2)	$	24.7	$	12.8	$	58.7	$	22.0

(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 $93.1 million and $58.7 million at June 30, 2022 and December 31, 2021, respectively.

Dividends

Repurchase of Shares

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended				6 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment results
Number of segments \| segment					2
Total Operating Revenue	$ 1,261.1		$ 874.9		$ 2,426.6	$ 1,586.7
Operating Income	493.1		213.9		925.7	334.1
Interest expense, net	(4.5)		(5.5)		(9.3)	(12.8)
Other income (expense), net	1.8		1.5		3.8	2.9
Income before Taxes	490.4		209.9		920.2	324.2
Income taxes	(109.7)		(47.4)		(200.3)	(74.5)
Net Income	380.7	$ 339.2	162.5	$ 87.2	719.9	249.7
Deferred dry-docking amortization					12.9	12.6
Assets	4,158.6				4,158.6		$ 3,693.1
Income from SSAT	24.7		12.8		58.7	22.0
Intersegment Eliminations
Segment results
Total Operating Revenue	69.2		49.0		142.4	82.7
Ocean Transportation
Segment results
Total Operating Revenue	1,049.2		682.9		1,993.1	1,243.4
Operating Income	470.0		201.0		886.2	315.1
Income from SSAT	24.7		12.8		58.7	22.0
Ocean Transportation \| Intersegment Eliminations
Segment results
Total Operating Revenue	24.0		18.7		45.8	33.8
Logistics
Segment results
Total Operating Revenue	211.9		192.0		433.5	343.3
Operating Income	23.1		12.9		39.5	19.0
Logistics \| Intersegment Eliminations
Segment results
Total Operating Revenue	$ 45.2		$ 30.3		$ 96.6	$ 48.9