0001558370-22-016112 | 10-Q | XBRL Viewer

SHARE-BASED COMPENSATION	9 Months Ended
Sep. 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 2,400 shares with a weighted average grant date fair value of $80.36 per share during the three months ended September 30, 2022, and 182,900 shares with a weighted average grant date fair value of $100.55 per share during the nine months ended September 30, 2022. 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 $5.0 million and $4.7 million for the three months ended September 30, 2022 and 2021, and $15.5 million and $14.2 million for the nine months ended September 30, 2022 and 2021, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was $28.1 million at September 30, 2022, 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.

SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2022

11. SHARE-BASED COMPENSATION

The Company granted time-based restricted stock units and performance-based shares to certain of its employees totaling approximately 2,400 shares with a weighted average grant date fair value of $80.36 per share during the three months ended September 30, 2022, and 182,900 shares with a weighted average grant date fair value of $100.55 per share during the nine months ended September 30, 2022.

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 $5.0 million and $4.7 million for the three months ended September 30, 2022 and 2021, and $15.5 million and $14.2 million for the nine months ended September 30, 2022 and 2021, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was $28.1 million at September 30, 2022, 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.

REPORTABLE SEGMENTS

9 Months Ended

Sep. 30, 2022

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

3. REPORTABLE SEGMENTS

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

The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s 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 $78.2 million and $57.8 million for the three months ended September 30, 2022 and 2021, and $220.6 million and $140.5 million for the nine months ended September 30, 2022 and 2021, respectively, have been eliminated from operating revenues in the table below.

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating Revenue:
Ocean Transportation (1)	$	918.5	$	863.5	$	2,911.6	$	2,106.9
Logistics (2)		196.3		208.1		629.8		551.4
Total Operating Revenue	$	1,114.8	$	1,071.6	$	3,541.4	$	2,658.3
Operating Income:
Ocean Transportation (3)	$	315.2	$	361.9	$	1,201.4	$	677.0
Logistics		20.1		16.0		59.6		35.0
Total Operating Income		335.3		377.9		1,261.0		712.0
Interest income		1.3		—		1.3		—
Interest expense		(5.0)		(5.1)		(14.3)		(17.9)
Other income (expense), net		2.5		1.8		6.3		4.7
Income before Taxes		334.1		374.6		1,254.3		698.8
Income taxes		(68.1)		(91.4)		(268.4)		(165.9)
Net Income	$	266.0	$	283.2	$	985.9	$	532.9

(1)	Ocean Transportation operating revenue excludes inter-segment revenue of $28.0 million and $21.8 million for the three months ended September 30, 2022 and 2021, and $73.8 million and $55.6 million for the nine months ended September 30, 2022 and 2021, respectively.

(2)	Logistics operating revenue excludes inter-segment revenue of $50.2 million and $36.0 million for the three months ended September 30, 2022 and 2021, and $146.8 million and $84.9 million for the nine months ended September 30, 2022 and 2021, respectively.

(3)

Ocean Transportation segment information includes $23.4 million and $13.0 million of equity in income from the Company’s equity investment in SSAT for the three months ended September 30, 2022 and 2021, and $82.1 million and $35.0 million for the nine months ended September 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

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=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

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

COMMITMENTS AND CONTINGENCIES	9 Months Ended
Sep. 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.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 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.

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Amortization of net loss (gain)	$ (0.1)	$ (1.0)	$ (2.9)	$ (3.5)
Amortization of prior service credit	0.8	1.1	2.6	3.4
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	1.2	1.3	3.6	3.6
Interest cost	1.9	1.4	5.2	4.6
Expected return on plan assets	(4.0)	(3.5)	(11.9)	(10.8)
Amortization of net loss	0.1	1.3	1.8	3.8
Amortization of prior service credit	(0.3)	(0.6)	(0.8)	(1.7)
Net periodic benefit cost (benefit)	(1.1)	(0.1)	(2.1)	(0.5)
Post-retirement benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	0.2	0.2	0.5	0.5
Interest cost	0.3	0.1	0.7	0.5
Amortization of net loss	0.2	0.1	0.6	0.7
Amortization of prior service credit	(1.0)	(0.9)	(2.8)	(2.7)
Net periodic benefit cost (benefit)	$ (0.3)	$ (0.5)	$ (1.0)	$ (1.0)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 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 nine months ended September 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)
Amortization of prior service cost		(0.1)		(0.7)		—		—		(0.8)
Amortization of net loss		—		0.1		—		—		0.1
Foreign currency exchange		—		—		—		(2.0)		(2.0)
Other adjustments		—		—		—		0.1		0.1
Balance at September 30, 2022	$	(38.3)	$	8.5	$	(0.7)	$	(3.6)	$	(34.1)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 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)
Amortization of prior service cost		(0.5)		(0.6)		—		—		(1.1)
Amortization of net loss (gain)		1.0		—		—		—		1.0
Foreign currency exchange		—		—		—		(0.1)		(0.1)
Balance at September 30, 2021	$	(60.1)	$	10.7	$	(0.6)	$	(0.9)	$	(50.9)

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Total	$ 1,114.8	$ 1,071.6	$ 3,541.4	$ 2,658.3
Ocean Transportation
Total	918.5	863.5	2,911.6	2,106.9
Logistics
Total	196.3	208.1	629.8	551.4
Ocean. Transportation.
Ocean Transportation services	908.4	855.2	2,885.3	2,083.8
Terminal and other related services	5.4	4.8	13.8	12.5
Fuel sales	3.2	1.9	7.9	5.1
Vessel management and related services	1.5	1.6	4.6	5.5
Total	918.5	863.5	$ 2,911.6	2,106.9
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency			3.00%
Logistics.
Transportation Brokerage and Freight Forwarding Services	169.2	186.1	$ 548.5	495.9
Warehousing and distribution services	15.5	12.2	41.4	31.8
Supply chain management and other services	11.6	9.8	39.9	23.7
Total	$ 196.3	$ 208.1	$ 629.8	$ 551.4
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency			6.50%

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2022 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
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	37,780,685
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000003453
Amendment Flag	false

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accounts receivable, net	$ 328.5		$ 328.5		$ 343.7
Cash Deposits Into CCF			579.7	$ 31.2
Withdrawals from CCF			14.7	31.2
Capital construction fund	565.0		565.0
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	9.8		9.8		$ 9.8
Cash Deposits Into CCF	569.0	$ 0.0	579.7	31.2
Withdrawals from CCF	$ 4.0	$ 0.0	$ 14.7	$ 31.2

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares		3 Months Ended
	Sep. 01, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Condensed Consolidated Statements of Shareholders' Equity
Dividends (per share)	$ 0.31	$ 0.31	$ 0.30	$ 0.30	$ 0.23

EARNINGS PER SHARE

9 Months Ended

Sep. 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 September 30, 2022 and 2021.

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


	Three Months Ended September 30, 2022					Nine Months Ended September 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	$	266.0	38.3	$	6.95	$	985.9	39.7	$	24.83
Effect of Dilutive Securities			0.3		(0.06)			0.3		(0.18)
Diluted	$	266.0	38.6	$	6.89	$	985.9	40.0	$	24.65


	Three Months Ended September 30, 2021					Nine Months Ended September 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	$	283.2	42.9	$	6.60	$	532.9	43.3	$	12.31
Effect of Dilutive Securities			0.5		(0.07)			0.4		(0.12)
Diluted	$	283.2	43.4	$	6.53	$	532.9	43.7	$	12.19

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Fair value of financial instruments
Restricted Cash	$ 3.9		$ 5.3
Capital construction fund	565.0
Carrying value
Fair value of financial instruments
Cash and cash equivalents	242.8	$ 282.4
Restricted Cash	3.9	5.3
Capital construction fund	565.0
Fixed rate debt	531.8	629.0
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	242.8	282.4
Restricted Cash	3.9	5.3
Capital construction fund	565.0
Fixed rate debt	438.4	615.1
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	242.8	282.4
Restricted Cash	3.9	5.3
Capital construction fund	565.0
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Fair value of financial instruments
Fixed rate debt	$ 438.4	$ 615.1

SHARE-BASED COMPENSATION (Details) - Time Based And Performance Based Shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based compensation
Shares granted	2,400		182,900
Weighted-average grant date fair value (in dollars per share)	$ 80.36		$ 100.55
Total unrecognized compensation cost	$ 28.1		$ 28.1
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	$ 5.0	$ 4.7	$ 15.5	$ 14.2

LEASES (Tables)

9 Months Ended

Sep. 30, 2022

LEASES

Components of Lease Cost


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating lease cost	$	40.8	$	26.7	$	120.8	$	79.4
Short-term lease cost		0.2		0.1		0.4		2.9
Variable lease cost		0.2		0.1		0.6		0.5
Total lease cost	$	41.2	$	26.9	$	121.8	$	82.8

Summary of maturities of operating lease liabilities at September 30, 2022


	As of
Year (in millions)	September 30, 2022
Remainder of 2022	$	41.8
2023		146.0
2024		121.3
2025		70.4
2026		28.2
Thereafter		59.4
Total lease payments		467.1
Less: Interest		(35.7)
Present value of operating lease liabilities		431.4
Less: Short-term portion		(147.1)
Long-term operating lease liabilities	$	284.3

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2022

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

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


	September 30,		December 31,
(In millions)	2022		2021
Cost:
Vessels	$	2,277.1	$	2,243.8
Containers and equipment		730.7		680.9
Terminal facilities and other property		131.5		128.3
Vessel construction in progress		—		14.9
Other construction in progress		65.4		19.5
Total Property and Equipment		3,204.7		3,087.4
Less: Accumulated Depreciation		(1,297.3)		(1,209.1)
Total Property and Equipment, net	$	1,907.4	$	1,878.3

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Property and equipment
Property and Equipment	$ 3,204.7	$ 3,087.4
Less: Accumulated Depreciation	(1,297.3)	(1,209.1)
Property and equipment, net	1,907.4	1,878.3
Vessels
Property and equipment
Property and Equipment	2,277.1	2,243.8
Containers and equipment
Property and equipment
Property and Equipment	730.7	680.9
Terminal facilities and other property
Property and equipment
Property and Equipment	131.5	128.3
Vessel construction in progress
Property and equipment
Property and Equipment		14.9
Other construction in progress
Property and equipment
Property and Equipment	$ 65.4	$ 19.5

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - SUBSEQUENT EVENTS (Details) $ in Millions		9 Months Ended
	Nov. 01, 2022 USD ($) item	Sep. 30, 2022 USD ($)
Payments for construction in process		$ 11.9
Subsequent Event [Member] \| Vessel construction in progress
Vessel construction, twenty foot equivalent unit of vessels \| item	3,600
Vessel construction, container capacity \| item	500
Vessel construction program, cost of vessels	$ 1,000.0
Payments for construction in process	$ 50.0

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	$ 2,133.6	$ 1,910.7	$ 1,667.4	$ 1,172.8	$ 1,028.9	$ 961.2	$ 1,667.4	$ 961.2
Amortization of prior service cost	(0.8)			(1.1)			(2.6)	(3.4)
Amortization of net loss (gain)	0.1			1.0			2.9	3.5
Other adjustments	(1.9)			(0.1)			(3.5)	(0.2)
Balance at the end of the period	2,298.6	2,133.6	1,910.7	1,344.8	1,172.8	1,028.9	2,298.6	1,344.8
Pensions
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(38.2)	(38.7)	(39.1)	(60.6)	(61.2)	(61.7)	(39.1)	(61.7)
Amortization of prior service cost	(0.1)	(0.2)	(0.2)	(0.5)	(0.4)	(0.4)
Amortization of net loss (gain)		0.7	0.6	1.0	1.0	0.9
Balance at the end of the period	(38.3)	(38.2)	(38.7)	(60.1)	(60.6)	(61.2)	(38.3)	(60.1)
Post Retirement
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	9.1	9.6	10.1	11.3	11.7	12.2	10.1	12.2
Amortization of prior service cost	(0.7)	(0.7)	(0.7)	(0.6)	(0.7)	(0.7)
Amortization of net loss (gain)	0.1	0.2	0.2		0.3	0.2
Balance at the end of the period	8.5	9.1	9.6	10.7	11.3	11.7	8.5	10.7
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)	(0.7)	(0.6)	(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)	(0.7)	(0.6)	(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	(1.7)	(0.9)	(1.2)	(0.8)	(0.9)	(0.7)	(1.2)	(0.7)
Amortization of net loss (gain)		1.1
Foreign currency exchange	(2.0)	(2.3)	0.3	(0.1)	(0.1)	(0.2)
Other adjustments	0.1	0.4			0.2
Balance at the end of the period	(3.6)	(1.7)	(0.9)	(0.9)	(0.8)	(0.9)	(3.6)	(0.9)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(31.5)	(30.7)	(30.9)	(50.7)	(50.9)	(50.8)	(30.9)	(50.8)
Amortization of prior service cost	(0.8)	(0.9)	(0.9)	(1.1)	(1.2)	(1.1)
Amortization of net loss (gain)	0.1	2.0	0.8	1.0	1.3	1.2
Foreign currency exchange	(2.0)	(2.3)	0.3	(0.1)	(0.1)	(0.2)
Other adjustments	0.1	0.4			0.2
Balance at the end of the period	$ (34.1)	$ (31.5)	$ (30.7)	$ (50.9)	$ (50.7)	$ (50.9)	$ (34.1)	$ (50.9)

DESCRIPTION OF THE BUSINESS

9 Months Ended

Sep. 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.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows From Operating Activities:
Net income	$ 985.9	$ 532.9
Reconciling adjustments:
Depreciation and amortization	105.6	100.9
Amortization of operating lease right of use assets	113.9	73.9
Deferred income taxes	146.3	30.3
Share-based compensation expense	15.5	14.2
Income from SSAT	(82.1)	(35.0)
Distributions from SSAT	40.3	46.9
Other	(0.2)	(1.1)
Changes in assets and liabilities:
Accounts receivable, net	13.9	(75.2)
Deferred dry-docking payments	(16.7)	(25.8)
Deferred dry-docking amortization	18.6	18.0
Prepaid expenses and other assets	(110.2)	(46.7)
Accounts payable, accruals and other liabilities	(5.0)	30.2
Operating lease liabilities	(113.8)	(72.1)
Other long-term liabilities	(9.5)	(8.1)
Net cash provided by operating activities	1,102.5	583.3
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(11.9)
Other capital expenditures	(113.4)	(244.7)
Cash deposits into Capital Construction Fund	(579.7)	(31.2)
Withdrawals from Capital Construction Fund	14.7	31.2
Other	(2.6)	2.2
Net cash used in investing activities	(692.9)	(242.5)
Cash Flows From Financing Activities:
Repayments of debt	(97.2)	(41.1)
Proceeds from revolving credit facility		304.3
Repayments of revolving credit facility		(376.1)
Payment of financing costs		(3.0)
Dividends paid	(36.9)	(33.3)
Repurchase of Matson common stock	(296.9)	(115.7)
Tax withholding related to net share settlements of restricted stock units	(19.6)	(14.4)
Net cash used in financing activities	(450.6)	(279.3)
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(41.0)	61.5
Cash, Cash Equivalents and Restricted Cash, Beginning of the Period	287.7	19.7
Cash, Cash Equivalents and Restricted Cash, End of the Period	246.7	81.2
Reconciliation of Cash, Cash Equivalents and Restricted Cash, End of the Period:
Cash and Cash Equivalents	242.8	75.9
Restricted Cash	3.9	5.3
Total Cash, Cash Equivalents and Restricted Cash, End of the Period	246.7	81.2
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	13.6	15.3
Income tax payments, net of refunds	212.4	162.1
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$ 3.9	$ 5.6

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Prepaid and Other Assets:
Income tax receivables	$ 232.9	$ 23.1
Prepaid fuel	32.4	22.6
Prepaid insurance and insurance related receivables	13.8	10.1
Restricted cash - vessel construction obligations	3.9	5.3
Other	20.2	17.3
Total	$ 303.2	$ 78.4

GOODWILL AND INTANGIBLES (Tables)

9 Months Ended

Sep. 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


	September 30,		December 31,
(In millions)	2022		2021
Customer Relationships:
Ocean Transportation	$	140.6	$	140.6
Logistics		95.3		90.1
Total		235.9		230.7
Less: Accumulated Amortization		(85.2)		(76.9)
Total Customer Relationships, net		150.7		153.8
Trade name – Logistics		27.3		27.3
Total Intangible Assets, net	$	178.0	$	181.1

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					532.9
Other comprehensive income (loss), net of tax					(0.1)
Balance at the end of the period at Sep. 30, 2021	$ 31.5	313.9	(50.9)	1,050.3	1,344.8
Balance (in shares) at Sep. 30, 2021	42.0
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
Increase (Decrease) in Shareholders' Equity
Net income				283.2	283.2
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		(0.1)		0.1	0.0
Shares repurchased	$ (1.1)	(7.2)		(107.4)	(115.7)
Shares repurchased (in shares)	(1.5)
Balance at the end of the period at Sep. 30, 2021	$ 31.5	313.9	(50.9)	1,050.3	1,344.8
Balance (in shares) at Sep. 30, 2021	42.0
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					985.9
Other comprehensive income (loss), net of tax					(3.2)
Shares repurchased					$ (294.7)
Shares repurchased (in shares)					(3.5)
Balance at the end of the period at Sep. 30, 2022	$ 28.3	290.4	(34.1)	2,014.0	$ 2,298.6
Balance (in shares) at Sep. 30, 2022	37.8
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)
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
Increase (Decrease) in Shareholders' Equity
Net income				266.0	266.0
Other comprehensive income (loss), net of tax			(2.6)		(2.6)
Share-based compensation		5.1			5.1
Equity interest in SSAT				(15.5)	(15.5)
Shares repurchased	$ (0.9)	(9.4)		(77.7)	$ (88.0)
Shares repurchased (in shares)	(1.2)				(1.1)
Balance at the end of the period at Sep. 30, 2022	$ 28.3	$ 290.4	$ (34.1)	$ 2,014.0	$ 2,298.6
Balance (in shares) at Sep. 30, 2022	37.8

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended						9 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment results
Number of segments \| segment							2
Total Operating Revenue	$ 1,114.8			$ 1,071.6			$ 3,541.4	$ 2,658.3
Operating Income	335.3			377.9			1,261.0	712.0
Interest income	1.3						1.3
Interest expense	(5.0)			(5.1)			(14.3)	(17.9)
Other income (expense), net	2.5			1.8			6.3	4.7
Income before Taxes	334.1			374.6			1,254.3	698.8
Income taxes	(68.1)			(91.4)			(268.4)	(165.9)
Net Income	266.0	$ 380.7	$ 339.2	283.2	$ 162.5	$ 87.2	985.9	532.9
Deferred dry-docking amortization							18.6	18.0
Assets	4,459.0						4,459.0		$ 3,693.1
Income from SSAT	23.4			13.0			82.1	35.0
Intersegment Eliminations
Segment results
Total Operating Revenue	78.2			57.8			220.6	140.5
Ocean Transportation
Segment results
Total Operating Revenue	918.5			863.5			2,911.6	2,106.9
Operating Income	315.2			361.9			1,201.4	677.0
Income from SSAT	23.4			13.0			82.1	35.0
Ocean Transportation \| Intersegment Eliminations
Segment results
Total Operating Revenue	28.0			21.8			73.8	55.6
Logistics
Segment results
Total Operating Revenue	196.3			208.1			629.8	551.4
Operating Income	20.1			16.0			59.6	35.0
Logistics \| Intersegment Eliminations
Segment results
Total Operating Revenue	$ 50.2			$ 36.0			$ 146.8	$ 84.9

GOODWILL AND INTANGIBLES - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Intangible assets
Total Intangible Assets, net	$ 178.0	$ 181.1
Trade Names
Intangible assets
Indefinite-Lived intangible asset	27.3	27.3
Customer Relationships
Intangible assets
Total	235.9	230.7
Less: Accumulated Amortization	(85.2)	(76.9)
Total	150.7	153.8
Ocean Transportation \| Customer Relationships
Intangible assets
Total	140.6	140.6
Logistics \| Customer Relationships
Intangible assets
Total	$ 95.3	$ 90.1

DEBT - MATURITIES (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Debt maturities
Remainder of 2022	$ 14.3
2023	52.7
2024	44.1
2025	44.1
2026	44.1
Thereafter	332.5
Total Debt	$ 531.8	$ 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

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net Income
Net Income, Basic	$ 266.0	$ 283.2	$ 985.9	$ 532.9
Net Income, Diluted	$ 266.0	$ 283.2	$ 985.9	$ 532.9
Weighted Average Common Shares
Basic (in shares)	38.3	42.9	39.7	43.3
Effect of Dilutive Securities (in shares)	0.3	0.5	0.3	0.4
Diluted (in shares)	38.6	43.4	40.0	43.7
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 6.95	$ 6.60	$ 24.83	$ 12.31
Effect of Dilutive Securities (in dollars per shares)	(0.06)	(0.07)	(0.18)	(0.12)
Net income, Diluted (in dollars per share)	$ 6.89	$ 6.53	$ 24.65	$ 12.19

PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2022

PROPERTY AND EQUIPMENT

Schedule of property and equipment


	September 30,		December 31,
(In millions)	2022		2021
Cost:
Vessels	$	2,277.1	$	2,243.8
Containers and equipment		730.7		680.9
Terminal facilities and other property		131.5		128.3
Vessel construction in progress		—		14.9
Other construction in progress		65.4		19.5
Total Property and Equipment		3,204.7		3,087.4
Less: Accumulated Depreciation		(1,297.3)		(1,209.1)
Total Property and Equipment, net	$	1,907.4	$	1,878.3

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN SSAT (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Sep. 16, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Investments in affiliates
Investment in SSAT		$ 87.2		$ 87.2		$ 58.7
Financial information for equity method investment
Company Share of Net Income		23.4	$ 13.0	82.1	$ 35.0
SSAT
Financial information for equity method investment
Company Share of Net Income		23.4	13.0	82.1	35.0
SSAT
Investments in affiliates
Adjustment to investment in SSAT	$ 15.5
Investment in SSAT		87.2		87.2		$ 58.7
Financial information for equity method investment
Operating revenue		369.8	316.3	1,191.3	944.6
Operating costs and expenses		(286.9)	(274.2)	(894.3)	(831.3)
Operating Income		82.9	42.1	297.0	113.3
Net Income		$ 68.9	$ 37.3	$ 247.0	$ 100.5
SSAT \| SSAT Terminals Oakland
Investments in affiliates
Investment in SSAT, interest acquired (as a percent)	20.00%

LEASES

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021 consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating lease cost	$	40.8	$	26.7	$	120.8	$	79.4
Short-term lease cost		0.2		0.1		0.4		2.9
Variable lease cost		0.2		0.1		0.6		0.5
Total lease cost	$	41.2	$	26.9	$	121.8	$	82.8

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


	As of
Year (in millions)	September 30, 2022
Remainder of 2022	$	41.8
2023		146.0
2024		121.3
2025		70.4
2026		28.2
Thereafter		59.4
Total lease payments		467.1
Less: Interest		(35.7)
Present value of operating lease liabilities		431.4
Less: Short-term portion		(147.1)
Long-term operating lease liabilities	$	284.3

DEBT

9 Months Ended

Sep. 30, 2022

DEBT

DEBT

6. DEBT

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


	September 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		—		28.8
3.37 %, payable through 2027		63.5		69.2
3.14 %, payable through 2031		132.8		151.2
4.31 %, payable through 2032		—		25.4
Title XI Debt:
5.34 %, payable through 2028		13.2		15.4
5.27 %, payable through 2029		15.4		17.6
1.22 %, payable through 2043		170.1		174.1
1.35 %, payable through 2044		127.7		133.6
Total Debt		531.8		629.0
Less: Current portion		(57.3)		(65.0)
Total Long-term Debt		474.5		564.0
Less: Deferred loan fees		(13.2)		(14.3)
Total Long-term Debt, net of deferred loan fees	$	461.3	$	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 September 30, 2022, the Company had $642.2 million of remaining borrowing availability under the revolving credit facility. The Company used $7.8 million of the revolving credit facility for letters of credit outstanding as of September 30, 2022. There were no outstanding borrowings under the revolving credit facility as of September 30, 2022 and December 31, 2021.

Private Placement Term Loans: On September 15, 2022, the Company prepaid $26.2 million of outstanding principal on the 4.16 percent term loans due in 2027, and $24.2 million of outstanding principal on the 4.31 percent term loans due in 2032, which represented all of the remaining outstanding principal for both term loans.

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

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


	As of
Year (in millions)	September 30, 2022
Remainder of 2022	$	14.3
2023		52.7
2024		44.1
2025		44.1
2026		44.1
Thereafter		332.5
Total Debt	$	531.8

- 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

DEBT - REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Millions	Sep. 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	642.2
Used portion of revolving credit facility	0.0	$ 0.0
Standby commercial letters of credit
Debt
Used portion of revolving credit facility	$ 7.8

- 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

LEASES - MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
Remainder of 2022	$ 41.8
2023	146.0
2024	121.3
2025	70.4
2026	28.2
Thereafter	59.4
Total lease payments	467.1
Less: Interest	(35.7)
Present value of operating lease liabilities	431.4
Less: Short-term portion	(147.1)	$ (137.6)
Long-term operating lease liabilities	$ 284.3	$ 307.4

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - DIVIDENDS AND REPURCHASE OF SHARES (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended						9 Months Ended
	Oct. 27, 2022	Sep. 01, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022
Dividends
Dividends (per share)		$ 0.31		$ 0.31	$ 0.30		$ 0.30	$ 0.23
Cash dividends declared per share (in dollars per share)	$ 0.31
Shares repurchased (in shares)			1.1						3.5
Shares repurchased			$ 88.0	$ 138.1	$ 68.6	$ 115.7			$ 294.7
Maximum number of shares remaining to be repurchased			3.0						3.0

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 242.8	$ 282.4
Accounts receivable, net of allowance for credit losses of $11.6 million and $10.1 million, respectively	328.5	343.7
Prepaid expenses and other assets	303.2	78.4
Total current assets	874.5	704.5
Long-term Assets:
Investment in SSAT	87.2	58.7
Property and equipment, net	1,907.4	1,878.3
Operating lease right of use assets	421.0	434.6
Goodwill	327.8	327.8
Intangible assets, net	178.0	181.1
Capital Construction Fund	565.0
Deferred dry-docking costs, net	62.0	68.7
Other long-term assets	36.1	39.4
Total long-term assets	3,584.5	2,988.6
Total Assets	4,459.0	3,693.1
Current Liabilities:
Current portion of debt	57.3	65.0
Accounts payable and accruals	293.1	308.4
Operating lease liabilities	147.1	137.6
Other liabilities	102.4	101.4
Total current liabilities	599.9	612.4
Long-term Liabilities:
Long-term debt, net of deferred loan fees	461.3	549.7
Long-term operating lease liabilities	284.3	307.4
Deferred income taxes	687.8	425.2
Other long-term liabilities	127.1	131.0
Total long-term liabilities	1,560.5	1,413.3
Commitments and Contingencies (see Note 13)
Shareholders' Equity:
Common stock	28.3	30.7
Additional paid in capital	290.4	314.1
Accumulated other comprehensive loss, net	(34.1)	(30.9)
Retained earnings	2,014.0	1,353.5
Total shareholders' equity	2,298.6	1,667.4
Total Liabilities and Shareholders' Equity	$ 4,459.0	$ 3,693.1

REPORTABLE SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2022

REPORTABLE SEGMENTS

Schedule of reportable segment information


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating Revenue:
Ocean Transportation (1)	$	918.5	$	863.5	$	2,911.6	$	2,106.9
Logistics (2)		196.3		208.1		629.8		551.4
Total Operating Revenue	$	1,114.8	$	1,071.6	$	3,541.4	$	2,658.3
Operating Income:
Ocean Transportation (3)	$	315.2	$	361.9	$	1,201.4	$	677.0
Logistics		20.1		16.0		59.6		35.0
Total Operating Income		335.3		377.9		1,261.0		712.0
Interest income		1.3		—		1.3		—
Interest expense		(5.0)		(5.1)		(14.3)		(17.9)
Other income (expense), net		2.5		1.8		6.3		4.7
Income before Taxes		334.1		374.6		1,254.3		698.8
Income taxes		(68.1)		(91.4)		(268.4)		(165.9)
Net Income	$	266.0	$	283.2	$	985.9	$	532.9

(1)	Ocean Transportation operating revenue excludes inter-segment revenue of $28.0 million and $21.8 million for the three months ended September 30, 2022 and 2021, and $73.8 million and $55.6 million for the nine months ended September 30, 2022 and 2021, respectively.

(2)	Logistics operating revenue excludes inter-segment revenue of $50.2 million and $36.0 million for the three months ended September 30, 2022 and 2021, and $146.8 million and $84.9 million for the nine months ended September 30, 2022 and 2021, respectively.

(3)

DEBT - PRIVATE PLACEMENT TERM LOANS (Details) - USD ($) $ in Millions	Sep. 15, 2022	Sep. 30, 2022
4.16 %, payable through 2027
Principal	$ 26.2
Interest rate (as a percent)	4.16%	4.16%
4.31 %, payable through 2032
Principal	$ 24.2
Interest rate (as a percent)	4.31%	4.31%

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2022

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES

2. GENERAL AND 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 September 30, 2022. The period end for MatNav and its subsidiaries covered by this report is September 30, 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.

Prepaid Expenses and Other Assets: Prepaid expenses and other assets consist of the following at September 30, 2022 and December 31, 2021:


	September 30,		December 31,
Prepaid Expenses and Other Assets (in millions)	2022		2021
Income tax receivables	$	232.9	$	23.1
Prepaid fuel		32.4		22.6
Prepaid insurance and insurance related receivables		13.8		10.1
Restricted cash - vessel construction obligations		3.9		5.3
Other		20.2		17.3
Total	$	303.2	$	78.4

Income tax receivables include a federal income tax refund related to the Company’s 2021 federal tax return, overpayments of federal and state taxes paid during the nine months ended September 30, 2022, and other income tax receivables.

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				Nine Months Ended
	September 30,				September 30,
Ocean Transportation (in millions) (1)	2022		2021		2022		2021
Ocean Transportation services	$	908.4	$	855.2	$	2,885.3	$	2,083.8
Terminal and other related services		5.4		4.8		13.8		12.5
Fuel sales		3.2		1.9		7.9		5.1
Vessel management and related services		1.5		1.6		4.6		5.5
Total	$	918.5	$	863.5	$	2,911.6	$	2,106.9

(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				Nine Months Ended
	September 30,				September 30,
Logistics (in millions) (1)	2022		2021		2022		2021
Transportation Brokerage and Freight Forwarding services	$	169.2	$	186.1	$	548.5	$	495.9
Warehousing and distribution services		15.5		12.2		41.4		31.8
Supply chain management and other services		11.6		9.8		39.9		23.7
Total	$	196.3	$	208.1	$	629.8	$	551.4

(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 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, 2021. As of September 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 short term U.S. Treasury Obligation Funds 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 three months ended September 30, 2022, the Company deposited $569.0 million into the CCF and made qualifying cash withdrawals of $4.0 million from the CCF. No CCF deposits or withdrawals were made during the three months ended September 30, 2021. During the nine months ended September 30, 2022 and 2021, the Company deposited $579.7 million and $31.2 million into the CCF and made qualifying cash withdrawals of $14.7 million and $31.2 million from the CCF, respectively. The balance of cash on deposit at September 30, 2022 was $565.0 million and was nominal at December 31, 2021.

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating revenue	$	369.8	$	316.3	$	1,191.3	$	944.6
Operating costs and expenses		(286.9)		(274.2)		(894.3)		(831.3)
Operating income		82.9		42.1		297.0		113.3
Net Income (1)	$	68.9	$	37.3	$	247.0	$	100.5
Company Share of SSAT’s Net Income (2)	$	23.4	$	13.0	$	82.1	$	35.0

(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 $87.2 million and $58.7 million at September 30, 2022 and December 31, 2021, respectively. On September 16, 2022, SSAT completed the purchase of a 20 percent non-controlling equity interest in SSAT Terminals (Oakland), LLC (“SSAT Oakland”) from a third-party company. After completion of this transaction, SSAT Oakland became a wholly-owned subsidiary of SSAT. The operating results of SSAT Oakland continue to consolidate into the operating results of SSAT. As a result of this transaction, the Company recorded a decrease of $15.5 million in its investment in SSAT and a corresponding decrease in retained earnings during the three months ended September 30, 2022 to reflect its proportionate share of this purchase.

Dividends: The Company’s third quarter 2022 cash dividend of $0.31 per share was paid on September 1, 2022. On October 27, 2022, the Company’s Board of Directors declared a cash dividend of $0.31 per share payable on December 1, 2022 to shareholders of record on November 10, 2022.

Repurchase of Shares: During the three months ended September 30, 2022, the Company repurchased approximately 1.1 million shares for a total cost of $88.0 million. During the nine months ended September 30, 2022, the Company repurchased approximately 3.5 million shares for a total cost of $294.7 million. As of September 30, 2022, the maximum number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately 3.0 million shares.

Deferred Income Taxes: During the three months ended September 30, 2022, the Company filed its 2021 federal income tax return. As a result of the Company depositing $565.0 million into the Capital Construction Fund, the Company’s federal income tax return resulted in a federal income tax refund position as the deposit is allowed as a deduction in the 2021 taxable period. The Company recorded the federal income tax refund receivable in Prepaid expenses and other assets, and a corresponding increase in Deferred income taxes in the Company’s Condensed Consolidated Balance Sheet at September 30, 2022. Other changes in deferred income taxes related to the recording of the Company’s income tax provision for the nine months ended September 30, 2022.

Recent U.S. Tax Legislation: On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law in the United States. The new provisions impose a one percent excise tax on the fair market value of share repurchases after December 31, 2022. The provisions of the IRA also include a 15 percent alternative minimum tax rate that generally applies to U.S. corporations with adjusted financial statement income in excess of $1 billion, and is effective in taxable years beginning after December 31, 2022. The Company is reviewing the provisions of the IRA and monitoring any guidance with respect to having these provisions apply to the Company’s tax provision in future periods.

Subsequent Events: On November 1, 2022, MatNav signed vessel construction agreements with Philly Shipyard, Inc. for three new LNG-ready Aloha Class containerships. Each of the new 3,600 TEU vessels is expected to provide 500 containers of additional capacity per voyage in the CLX service. The contract cost of this new Jones Act vessel program is expected to be approximately $1 billion and delivery of the first vessel is currently anticipated to be in the fourth quarter of 2026 with subsequent deliveries in the second and fourth quarters of 2027. Upon signing the agreements, the Company made its first milestone payment of $50 million from the CCF. The Company expects to finance the remaining construction-related payments with cash currently on deposit in the CCF, cash and cash equivalents on the balance sheet and through cash flows from operations, borrowings available under the Company’s unsecured revolving credit facility and additional debt financings.

GOODWILL AND INTANGIBLES - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Sep. 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

DEBT (Tables)

9 Months Ended

Sep. 30, 2022

DEBT

Schedule of debt


	September 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		—		28.8
3.37 %, payable through 2027		63.5		69.2
3.14 %, payable through 2031		132.8		151.2
4.31 %, payable through 2032		—		25.4
Title XI Debt:
5.34 %, payable through 2028		13.2		15.4
5.27 %, payable through 2029		15.4		17.6
1.22 %, payable through 2043		170.1		174.1
1.35 %, payable through 2044		127.7		133.6
Total Debt		531.8		629.0
Less: Current portion		(57.3)		(65.0)
Total Long-term Debt		474.5		564.0
Less: Deferred loan fees		(13.2)		(14.3)
Total Long-term Debt, net of deferred loan fees	$	461.3	$	549.7

Schedule of maturities of debt


	As of
Year (in millions)	September 30, 2022
Remainder of 2022	$	14.3
2023		52.7
2024		44.1
2025		44.1
2026		44.1
Thereafter		332.5
Total Debt	$	531.8

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21506-112644

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69B
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69E
-URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21521-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

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

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2022

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Fiscal Period

Fiscal Period: The period end for Matson covered by this report is September 30, 2022. The period end for MatNav and its subsidiaries covered by this report is September 30, 2022.

Significant Accounting Policies

Use of Estimates

Prepaid Expenses and Other Assets

Prepaid Expenses and Other Assets: Prepaid expenses and other assets consist of the following at September 30, 2022 and December 31, 2021:


	September 30,		December 31,
Prepaid Expenses and Other Assets (in millions)	2022		2021
Income tax receivables	$	232.9	$	23.1
Prepaid fuel		32.4		22.6
Prepaid insurance and insurance related receivables		13.8		10.1
Restricted cash - vessel construction obligations		3.9		5.3
Other		20.2		17.3
Total	$	303.2	$	78.4

Recognition of Revenues and Expenses


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Ocean Transportation (in millions) (1)	2022		2021		2022		2021
Ocean Transportation services	$	908.4	$	855.2	$	2,885.3	$	2,083.8
Terminal and other related services		5.4		4.8		13.8		12.5
Fuel sales		3.2		1.9		7.9		5.1
Vessel management and related services		1.5		1.6		4.6		5.5
Total	$	918.5	$	863.5	$	2,911.6	$	2,106.9

(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				Nine Months Ended
	September 30,				September 30,
Logistics (in millions) (1)	2022		2021		2022		2021
Transportation Brokerage and Freight Forwarding services	$	169.2	$	186.1	$	548.5	$	495.9
Warehousing and distribution services		15.5		12.2		41.4		31.8
Supply chain management and other services		11.6		9.8		39.9		23.7
Total	$	196.3	$	208.1	$	629.8	$	551.4

(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 nine months ended September 30, 2022 and 2021 consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating revenue	$	369.8	$	316.3	$	1,191.3	$	944.6
Operating costs and expenses		(286.9)		(274.2)		(894.3)		(831.3)
Operating income		82.9		42.1		297.0		113.3
Net Income (1)	$	68.9	$	37.3	$	247.0	$	100.5
Company Share of SSAT’s Net Income (2)	$	23.4	$	13.0	$	82.1	$	35.0

(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.

Dividends

Repurchase of Shares

Deferred Income Taxes

Recent U S Tax Legislation

Subsequent Events

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating Revenue:
Total Operating Revenue	$ 1,114.8	$ 1,071.6	$ 3,541.4	$ 2,658.3
Costs and Expenses:
Operating costs	(738.4)	(649.3)	(2,170.5)	(1,809.6)
Income from SSAT	23.4	13.0	82.1	35.0
Selling, general and administrative	(64.5)	(57.4)	(192.0)	(171.7)
Total Costs and Expenses	(779.5)	(693.7)	(2,280.4)	(1,946.3)
Operating Income	335.3	377.9	1,261.0	712.0
Interest income	1.3		1.3
Interest expense	(5.0)	(5.1)	(14.3)	(17.9)
Other income (expense), net	2.5	1.8	6.3	4.7
Income before Taxes	334.1	374.6	1,254.3	698.8
Income taxes	(68.1)	(91.4)	(268.4)	(165.9)
Net Income	266.0	283.2	985.9	532.9
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	266.0	283.2	985.9	532.9
Other Comprehensive Income (Loss):
Amortization of prior service cost	(0.8)	(1.1)	(2.6)	(3.4)
Amortization of net loss (gain)	0.1	1.0	2.9	3.5
Other adjustments	(1.9)	(0.1)	(3.5)	(0.2)
Total Other Comprehensive Income (Loss)	(2.6)	(0.2)	(3.2)	(0.1)
Comprehensive Income	$ 263.4	$ 283.0	$ 982.7	$ 532.8
Basic Earnings Per Share (in dollars per share)	$ 6.95	$ 6.60	$ 24.83	$ 12.31
Diluted Earnings Per Share (in dollars per share)	$ 6.89	$ 6.53	$ 24.65	$ 12.19
Weighted Average Number of Shares Outstanding:
Basic (in shares)	38.3	42.9	39.7	43.3
Diluted (in shares)	38.6	43.4	40.0	43.7
Ocean. Transportation.
Operating Revenue:
Total Operating Revenue	$ 918.5	$ 863.5	$ 2,911.6	$ 2,106.9
Logistics.
Operating Revenue:
Total Operating Revenue	$ 196.3	$ 208.1	$ 629.8	$ 551.4

DESCRIPTION OF THE BUSINESS (Details)	9 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Sep. 30, 2022 facility segment
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2
Ocean Transportation \| SSAT
DESCRIPTION OF THE BUSINESS
Ownership interest in SSAT (as a percent)	35.00%
Number of terminal facilities on which SSAT provides terminal and stevedoring services on the U.S. West Coast	8
MatNav \| SSAT
DESCRIPTION OF THE BUSINESS
Number of terminal facilities on which SSAT provides terminal and stevedoring services on the U.S. West Coast	3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 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 nine months ended September 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)
Amortization of prior service cost		(0.1)		(0.7)		—		—		(0.8)
Amortization of net loss		—		0.1		—		—		0.1
Foreign currency exchange		—		—		—		(2.0)		(2.0)
Other adjustments		—		—		—		0.1		0.1
Balance at September 30, 2022	$	(38.3)	$	8.5	$	(0.7)	$	(3.6)	$	(34.1)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 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)
Amortization of prior service cost		(0.5)		(0.6)		—		—		(1.1)
Amortization of net loss (gain)		1.0		—		—		—		1.0
Foreign currency exchange		—		—		—		(0.1)		(0.1)
Balance at September 30, 2021	$	(60.1)	$	10.7	$	(0.6)	$	(0.9)	$	(50.9)

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2022

EARNINGS PER SHARE

Schedule of basic and diluted earnings per share


	Three Months Ended September 30, 2022					Nine Months Ended September 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	$	266.0	38.3	$	6.95	$	985.9	39.7	$	24.83
Effect of Dilutive Securities			0.3		(0.06)			0.3		(0.18)
Diluted	$	266.0	38.6	$	6.89	$	985.9	40.0	$	24.65


	Three Months Ended September 30, 2021					Nine Months Ended September 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	$	283.2	42.9	$	6.60	$	532.9	43.3	$	12.31
Effect of Dilutive Securities			0.5		(0.07)			0.4		(0.12)
Diluted	$	283.2	43.4	$	6.53	$	532.9	43.7	$	12.19

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 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, restricted cash and Capital Construction Fund, and Level 2 inputs for its variable and fixed rate debt. The fair values of cash, cash equivalents, restricted cash and Capital Construction Fund, 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, 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)	September 30, 2022		Fair Value Measurements at September 30, 2022
Cash and cash equivalents	$	242.8	$	242.8	$	242.8	$	—	$	—
Restricted cash	$	3.9	$	3.9	$	3.9	$	—	$	—
Capital Construction Fund	$	565.0	$	565.0	$	565.0	$	—	$	—
Fixed rate debt	$	531.8	$	438.4	$	—	$	438.4	$	—

(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

PENSION AND POST-RETIREMENT PLANS

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021 consisted of the following:


	Pension Benefits				Post-retirement Benefits
	Three Months Ended September 30,				Three Months Ended September 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	1.2	$	1.3	$	0.2	$	0.2
Interest cost		1.9		1.4		0.3		0.1
Expected return on plan assets		(4.0)		(3.5)		—		—
Amortization of net loss		0.1		1.3		0.2		0.1
Amortization of prior service credit		(0.3)		(0.6)		(1.0)		(0.9)
Net periodic benefit cost (benefit)	$	(1.1)	$	(0.1)	$	(0.3)	$	(0.5)


	Pension Benefits				Post-retirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	3.6	$	3.6	$	0.5	$	0.5
Interest cost		5.2		4.6		0.7		0.5
Expected return on plan assets		(11.9)		(10.8)		—		—
Amortization of net loss		1.8		3.8		0.6		0.7
Amortization of prior service credit		(0.8)		(1.7)		(2.8)		(2.7)
Net periodic benefit cost (benefit)	$	(2.1)	$	(0.5)	$	(1.0)	$	(1.0)

- 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
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

+ Details

DEBT - SUMMARY (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 15, 2022	Dec. 31, 2021
Debt
Total Debt	$ 531.8		$ 629.0
Less: Current portion	(57.3)		(65.0)
Total Long-term Debt	474.5		564.0
Less: Deferred loan fees	(13.2)		(14.3)
Total Long-term Debt, net of deferred loan fees	461.3		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			28.8
Interest rate (as a percent)	4.16%	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	$ 132.8		151.2
Interest rate (as a percent)	3.14%
4.31 %, payable through 2032
Debt
Total Debt			25.4
Interest rate (as a percent)	4.31%	4.31%
5.34 %, payable through 2028
Debt
Total Debt	$ 13.2		15.4
Interest rate (as a percent)	5.34%
5.27 %, payable through 2029
Debt
Total Debt	$ 15.4		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	$ 127.7		$ 133.6
Interest rate (as a percent)	1.35%
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility	$ 650.0

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for credit loss	$ 11.6	$ 10.1

LEASES - COMPONENTS OF LEASE COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Components of Lease Cost
Operating lease cost	$ 40.8	$ 26.7	$ 120.8	$ 79.4
Short-term lease cost	0.2	0.1	0.4	2.9
Variable lease cost	0.2	0.1	0.6	0.5
Total lease cost	$ 41.2	$ 26.9	$ 121.8	$ 82.8

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - DEFERRED INCOME TAXES (Details) $ in Millions	Sep. 30, 2022 USD ($)
GENERAL AND SIGNIFICANT ACCOUNTING POLICIES
Capital construction fund	$ 565.0

PENSION AND POST-RETIREMENT PLANS (Tables)

9 Months Ended

Sep. 30, 2022

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)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	1.2	$	1.3	$	0.2	$	0.2
Interest cost		1.9		1.4		0.3		0.1
Expected return on plan assets		(4.0)		(3.5)		—		—
Amortization of net loss		0.1		1.3		0.2		0.1
Amortization of prior service credit		(0.3)		(0.6)		(1.0)		(0.9)
Net periodic benefit cost (benefit)	$	(1.1)	$	(0.1)	$	(0.3)	$	(0.5)


	Pension Benefits				Post-retirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	3.6	$	3.6	$	0.5	$	0.5
Interest cost		5.2		4.6		0.7		0.5
Expected return on plan assets		(11.9)		(10.8)		—		—
Amortization of net loss		1.8		3.8		0.6		0.7
Amortization of prior service credit		(0.8)		(1.7)		(2.8)		(2.7)
Net periodic benefit cost (benefit)	$	(2.1)	$	(0.5)	$	(1.0)	$	(1.0)

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of prepaid expenses and other assets


	September 30,		December 31,
Prepaid Expenses and Other Assets (in millions)	2022		2021
Income tax receivables	$	232.9	$	23.1
Prepaid fuel		32.4		22.6
Prepaid insurance and insurance related receivables		13.8		10.1
Restricted cash - vessel construction obligations		3.9		5.3
Other		20.2		17.3
Total	$	303.2	$	78.4

Schedule of condensed income statement information for SSAT


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Operating revenue	$	369.8	$	316.3	$	1,191.3	$	944.6
Operating costs and expenses		(286.9)		(274.2)		(894.3)		(831.3)
Operating income		82.9		42.1		297.0		113.3
Net Income (1)	$	68.9	$	37.3	$	247.0	$	100.5
Company Share of SSAT’s Net Income (2)	$	23.4	$	13.0	$	82.1	$	35.0

(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				Nine Months Ended
	September 30,				September 30,
Ocean Transportation (in millions) (1)	2022		2021		2022		2021
Ocean Transportation services	$	908.4	$	855.2	$	2,885.3	$	2,083.8
Terminal and other related services		5.4		4.8		13.8		12.5
Fuel sales		3.2		1.9		7.9		5.1
Vessel management and related services		1.5		1.6		4.6		5.5
Total	$	918.5	$	863.5	$	2,911.6	$	2,106.9

(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				Nine Months Ended
	September 30,				September 30,
Logistics (in millions) (1)	2022		2021		2022		2021
Transportation Brokerage and Freight Forwarding services	$	169.2	$	186.1	$	548.5	$	495.9
Warehousing and distribution services		15.5		12.2		41.4		31.8
Supply chain management and other services		11.6		9.8		39.9		23.7
Total	$	196.3	$	208.1	$	629.8	$	551.4

(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.

GOODWILL AND INTANGIBLES

9 Months Ended

Sep. 30, 2022

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES

5. GOODWILL AND INTANGIBLES

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


	September 30,		December 31,
(In millions)	2022		2021
Customer Relationships:
Ocean Transportation	$	140.6	$	140.6
Logistics		95.3		90.1
Total		235.9		230.7
Less: Accumulated Amortization		(85.2)		(76.9)
Total Customer Relationships, net		150.7		153.8
Trade name – Logistics		27.3		27.3
Total Intangible Assets, net	$	178.0	$	181.1

The change in customer relationships related to new customers acquired during the three months ended September 30, 2022.

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 September 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.

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 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)	September 30, 2022		Fair Value Measurements at September 30, 2022
Cash and cash equivalents	$	242.8	$	242.8	$	242.8	$	—	$	—
Restricted cash	$	3.9	$	3.9	$	3.9	$	—	$	—
Capital Construction Fund	$	565.0	$	565.0	$	565.0	$	—	$	—
Fixed rate debt	$	531.8	$	438.4	$	—	$	438.4	$	—

(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