Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 26, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Matson, Inc. | ' | ' |
Entity Central Index Key | '0000003453 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,054,012,599 |
Entity Common Stock, Shares Outstanding | ' | 42,935,493 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Revenue: | ' | ' | ' |
Ocean transportation | $1,229.40 | $1,189.80 | $1,076.20 |
Logistics | 407.8 | 370.2 | 386.4 |
Total operating revenue | 1,637.20 | 1,560 | 1,462.60 |
Costs and Expenses: | ' | ' | ' |
Operating costs | 1,402.30 | 1,338.10 | 1,280.10 |
Equity in loss (income) of terminal joint venture | 2 | -3.2 | -8.6 |
Selling, general and administrative | 132.6 | 119.8 | 112.5 |
Separation costs | ' | 8.6 | ' |
Total costs and expenses | 1,536.90 | 1,463.30 | 1,384 |
Operating Income | 100.3 | 96.7 | 78.6 |
Interest expense | -14.4 | -11.7 | -7.7 |
Income from Continuing Operations Before Income Taxes | 85.9 | 85 | 70.9 |
Income tax expense | -32.2 | -33 | -25.1 |
Income From Continuing Operations | 53.7 | 52 | 45.8 |
Loss From Discontinued Operations (net of income taxes) | 0 | -6.1 | -11.6 |
Net Income | 53.7 | 45.9 | 34.2 |
Other Comprehensive Income (Loss), Net of Income Taxes: | ' | ' | ' |
Net Income | 53.7 | 45.9 | 34.2 |
Other Comprehensive Income (Loss): | ' | ' | ' |
Net gain (loss) and prior service cost | 18.7 | -4.6 | -5.7 |
Amortization of prior service cost included in net periodic pension cost | -1.3 | -1.4 | 0.3 |
Amortization of net loss included in net periodic pension cost | 4.7 | 4.8 | 3.9 |
Foreign currency translation adjustment | -0.1 | ' | ' |
Other comprehensive income (loss) from discontinued operations | ' | 0.7 | -8.4 |
Total Other Comprehensive Income (Loss) | 22 | -0.5 | -9.9 |
Comprehensive Income | $75.70 | $45.40 | $24.30 |
Basic Earnings (Loss) Per Share: | ' | ' | ' |
Continuing operations (in dollars per share) | $1.26 | $1.23 | $1.10 |
Discontinued operations (in dollars per share) | ' | ($0.14) | ($0.28) |
Basic Earnings Per Share (in dollars per share) | $1.26 | $1.09 | $0.82 |
Diluted Earnings (Loss) Per Share: | ' | ' | ' |
Continuing operations (in dollars per share) | $1.25 | $1.22 | $1.09 |
Discontinued operations (in dollars per share) | ' | ($0.14) | ($0.28) |
Diluted Earnings Per Share (in dollars per share) | $1.25 | $1.08 | $0.81 |
Weighted Average Number of Shares Outstanding: | ' | ' | ' |
Basic (in shares) | 42.7 | 42.3 | 41.6 |
Diluted (in shares) | 43.1 | 42.7 | 42 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $114.50 | $19.90 |
Accounts receivable, net | 182.3 | 174.7 |
Deferred income taxes | 9.1 | 6.6 |
Prepaid expenses and other assets | 43 | 32.9 |
Total current assets | 348.9 | 234.1 |
Investment in terminal joint venture | 57.6 | 59.6 |
Property and equipment, net | 735.4 | 762.5 |
Goodwill and intangible assets, net | 31.2 | 30.9 |
Other long-term assets | 75.2 | 87.2 |
Total assets | 1,248.30 | 1,174.30 |
Current Liabilities: | ' | ' |
Current portion of long-term debt | 12.5 | 16.4 |
Accounts payable | 124 | 125.8 |
Payroll and vacation benefits | 16.9 | 16 |
Self-insured liabilities | 15.1 | 11.2 |
Accrued and other liabilities | 32.1 | 24 |
Total current liabilities | 200.6 | 193.4 |
Long-term Liabilities: | ' | ' |
Long-term debt | 273.6 | 302.7 |
Deferred income taxes | 326.1 | 251.9 |
Employee benefit plans | 74.4 | 108 |
Self-insured claims and other liabilities | 35.4 | 38.4 |
Total long-term liabilities | 709.5 | 701 |
Commitments and Contingencies | ' | ' |
Shareholders' Equity: | ' | ' |
Capital stock - common stock without par value; authorized, 150 million shares ($0.75 stated value per share); outstanding, 42.8 million shares in 2013 and 42.6 million shares in 2012 | 32.1 | 31.9 |
Additional paid in capital | 261.9 | 252.7 |
Accumulated other comprehensive loss | -23.5 | -45.5 |
Retained earnings | 67.7 | 40.8 |
Total shareholders' equity | 338.2 | 279.9 |
Total liabilities and shareholders' equity | $1,248.30 | $1,174.30 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Capital stock, shares authorized | 150 | 150 |
Capital stock, stated value (in dollars per share) | $0.75 | $0.75 |
Capital stock, shares outstanding | 42.8 | 42.6 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows Provided by Operating Activities from Continuing Operations | ' | ' | ' |
Net income from continuing operations | $53.70 | $52 | $45.80 |
Reconciling adjustments: | ' | ' | ' |
Depreciation and amortization | 69.7 | 72.5 | 71.6 |
Deferred income taxes | 57.5 | -8.8 | -5 |
Loss (gain) on disposal of property | 0.2 | -1.2 | -0.8 |
Post-retirement expense | 1.6 | 2.6 | 4.5 |
Share-based compensation expense | 5.9 | 4 | 2.7 |
Equity in loss (income) of terminal joint venture | 2 | -3.2 | -8.6 |
Dividend from terminal joint venture | ' | ' | 5.3 |
Impairment of intangible assets | 0 | 2.1 | 0 |
Tax benefit from equity issuance | 1.8 | ' | ' |
Excess tax benefit from stock-based compensation | -0.6 | ' | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -7.6 | -7 | -10.8 |
Deferred dry-docking payments | -14 | -44.8 | -36 |
Deferred dry-docking amortization | 22 | 23.3 | 22.7 |
Prepaid expenses and other assets | -11.8 | -10.4 | -3.4 |
Accounts payable and accrued liabilities | 2.2 | -7.9 | 17.1 |
Other liabilities | 13.1 | 20.8 | -1 |
Net cash provided by operating activities from continuing operations | 195.7 | 94 | 104.1 |
Cash Flows Used in Investing Activities from Continuing Operations: | ' | ' | ' |
Capital expenditures | -35.2 | -38.1 | -47.2 |
Proceeds from disposal of property and equipment | 4.5 | 6.8 | 2.3 |
Deposits into Capital Construction Fund | -4.4 | -4.4 | -4.4 |
Withdrawals from Capital Construction Fund | 4.4 | 4.4 | 4.4 |
Payments for acquisitions | -9.3 | ' | ' |
Contribution from the Former Parent Company | ' | 25 | 40.3 |
Net cash used in investing activities from continuing operations | -40 | -6.3 | -4.6 |
Cash Flows Used in Financing Activities from Continuing Operations: | ' | ' | ' |
Excess tax benefit from stock-based compensation | 0.6 | ' | ' |
Proceeds from issuance of long-term debt | 21 | 197 | 109 |
Payments of long-term debt | -45.4 | -80.4 | -69.5 |
(Payments) to/ proceeds from the line-of-credit agreements, net | -11 | 5 | -6.2 |
Payment of financing costs | ' | -1.9 | -0.5 |
Payment of capital leases | -1.2 | ' | ' |
Proceeds from issuance of capital stock | 1.7 | 25.2 | 10.1 |
Dividends paid | -26.8 | -39.5 | -53.1 |
Contribution to A&B upon Separation | ' | -155.7 | ' |
Cash assumed by A&B upon Separation | ' | -2.5 | ' |
Distribution to Former Parent Company from issuance of capital stock | ' | -21.7 | ' |
Distribution paid to Former Parent Company | ' | ' | -60 |
Net cash used in financing activities from continuing operations | -61.1 | -74.5 | -70.2 |
Cash Flows from Discontinued Operations: | ' | ' | ' |
Cash flows used in operating activities of discontinued operations | ' | -29.9 | -17.8 |
Cash flows used in investing activities of discontinued operations | ' | -18.8 | -26.1 |
Cash flows provided by financing activities of discontinued operations | ' | 33.9 | 21.9 |
Net cash flows used in discontinued operations | ' | -14.8 | -22 |
Net Increase (Decrease) in Cash and Cash Equivalents | 94.6 | -1.6 | 7.3 |
Cash and cash equivalents, beginning of the year | 19.9 | 21.5 | 14.2 |
Cash and cash equivalents, end of the year | 114.5 | 19.9 | 21.5 |
Supplemental Cash Flow Information: | ' | ' | ' |
Interest paid | 13.8 | 11.3 | 7.8 |
Income tax (refund) paid | -3.4 | 42.7 | 0.6 |
Non-cash Information: | ' | ' | ' |
Capital expenditures included in accounts payable and accrued liabilities | 2.1 | 4.2 | 4.2 |
Capital lease obligations | $2.90 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Treasury | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $1,136.20 | $34 | ($10.90) | $223.20 | ($82) | $971.90 |
Balance (in shares) at Dec. 31, 2010 | ' | 44.9 | -3.6 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net Income | 34.2 | ' | ' | ' | ' | 34.2 |
Other comprehensive income (loss), net of tax | -9.9 | ' | ' | ' | -9.9 | ' |
Share-based compensation | 7.5 | ' | ' | 7.5 | ' | ' |
Shares issued | 7.6 | ' | ' | 7.6 | ' | ' |
Shares issued (in shares) | ' | 0.4 | ' | ' | ' | ' |
Dividends | -53.1 | ' | ' | ' | ' | -53.1 |
Balance at Dec. 31, 2011 | 1,122.50 | 34 | -10.9 | 238.3 | -91.9 | 953 |
Balance (in shares) at Dec. 31, 2011 | ' | 45.3 | -3.6 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net Income | 45.9 | ' | ' | ' | ' | 45.9 |
Other comprehensive income (loss), net of tax | -0.5 | ' | ' | ' | -0.5 | ' |
Excess tax benefit and share withholding | -2 | -0.1 | ' | 0.5 | ' | -2.4 |
Excess tax benefit and share withholding (in shares) | ' | -0.1 | ' | ' | ' | ' |
Share-based compensation | 6.5 | ' | ' | 6.5 | ' | ' |
Shares issued | 23.1 | 0.7 | ' | 22.4 | ' | ' |
Shares issued (in shares) | ' | 1 | ' | ' | ' | ' |
Retirement of treasury shares | ' | -2.7 | 10.9 | -8.2 | ' | ' |
Retirement of treasury shares (in shares) | ' | -3.6 | 3.6 | ' | ' | ' |
Dividends | -39.5 | ' | ' | ' | ' | -39.5 |
Distribution of A&B Stock | -876.1 | ' | ' | -6.8 | 46.9 | -916.2 |
Balance at Dec. 31, 2012 | 279.9 | 31.9 | ' | 252.7 | -45.5 | 40.8 |
Balance (in shares) at Dec. 31, 2012 | 42.6 | 42.6 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net Income | 53.7 | ' | ' | ' | ' | 53.7 |
Other comprehensive income (loss), net of tax | 22 | ' | ' | ' | 22 | ' |
Excess tax benefit and share withholding | 1.8 | ' | ' | 1.8 | ' | ' |
Share-based compensation | 5.9 | ' | ' | 5.9 | ' | ' |
Shares issued | 1.7 | 0.2 | ' | 1.5 | ' | ' |
Shares issued (in shares) | ' | 0.2 | ' | ' | ' | ' |
Dividends | -26.8 | ' | ' | ' | ' | -26.8 |
Balance at Dec. 31, 2013 | $338.20 | $32.10 | ' | $261.90 | ($23.50) | $67.70 |
Balance (in shares) at Dec. 31, 2013 | 42.8 | 42.8 | ' | ' | ' | ' |
DESCRIPTION_OF_THE_BUSINESS
DESCRIPTION OF THE BUSINESS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
DESCRIPTION OF THE BUSINESS | ' | ||||
DESCRIPTION OF THE BUSINESS | ' | ||||
1. DESCRIPTION OF THE BUSINESS | |||||
Matson, Inc., a holding company incorporated in January 2012, in the State of Hawaii, and its subsidiaries (“Matson” or the “Company”), is a leading provider of ocean transportation and logistics services. | |||||
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 is an asset-based business that provides a vital lifeline of ocean freight transportation services to the island economies of Hawaii, Guam and Micronesia, and also operates a premium, expedited service from China to Long Beach, California. In January 2013, Matson began providing ocean services to various islands in the South Pacific including New Zealand, Fiji, Samoa, American Samoa, Tonga and the Cook Islands, and later expanded service to include Australia to the Solomon Islands. Matson’s fleet consists of 18 owned and three chartered vessels including containerships, combination container/roll-on/roll-off ships, and custom-designed barges. | |||||
The Company also provides container stevedoring, container equipment maintenance and other terminal services for MatNav and other ocean carriers through Matson Terminals, Inc. (“Matson Terminals”), a wholly-owned subsidiary of MatNav, on the islands of Oahu, Hawaii, Maui and Kauai. | |||||
The Company has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”) through a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc. (“SSA”), a subsidiary of Carrix, Inc. (the “Terminal Joint Venture”). SSAT provides terminal and stevedoring services to various carriers at six terminal facilities on the United States of America (“U.S.”) Pacific Coast, including to MatNav at several of those facilities. Matson records its share of income (loss) in the joint venture in operating expenses within the ocean transportation segment due to the nature of SSAT’s operations. | |||||
Logistics: The Company’s logistics business is conducted through Matson Logistics, Inc. (“Matson Logistics” or “Logistics”), a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics is an asset-light business that provides multimodal transportation, including domestic and international rail intermodal service (“Intermodal”); long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload services, expedited freight services (collectively “Highway”); and warehousing and distribution services. The warehousing and distribution services are provided by Matson Logistics Warehousing, Inc. (“Matson Logistics Warehousing”), a wholly-owned subsidiary of Matson Logistics. | |||||
Separation Transaction: On December 1, 2011, Alexander & Baldwin, Inc., the former parent company of MatNav (the “Former Parent Company”), announced that its Board of Directors unanimously approved a plan to pursue the separation (the “Separation”) of the Former Parent Company to create two independent, publicly traded companies: | |||||
· Matson, Inc.; and | |||||
· Alexander & Baldwin, Inc. (“A&B”), a Hawaii-based land company with interests in real estate development, commercial real estate and agriculture. | |||||
On February 13, 2012, the Former Parent Company entered into an Agreement and Plan of Merger to reorganize itself by forming a holding company incorporated in Hawaii, Alexander & Baldwin Holdings, Inc. (“Holdings”). The holding company structure helped facilitate the Separation through the organization and segregation of the assets of the two businesses. In addition, the holding company reorganization was intended to help preserve the Company’s status as a U.S. citizen under certain U.S. maritime and vessel documentation laws by, among other things, limiting the percentage of outstanding shares of common stock in the holding company that may be owned or controlled in the aggregate by non-U.S. citizens to a maximum permitted percentage of 22%. | |||||
The Separation was completed on June 29, 2012. In the Separation, the shareholders of Holdings received one share of common stock of A&B for every share of Holdings held of record as of June 18, 2012. Immediately following the Separation, Holdings changed its name to Matson, Inc. For accounting purposes, Matson is the successor company to the Former Parent Company. | |||||
Prior to the completion of the Separation, Matson and A&B entered into a Separation and Distribution Agreement, Tax Sharing Agreement and an Employee Matters Agreement, each dated June 8, 2012, to govern the post-Separation relationship. In addition, Matson and A&B entered into a Transition Services Agreement, dated June 8, 2012, under which each company agreed to provide the other with various services on an interim transitional basis, for up to 24 months. Also in relation to the Separation, intercompany receivables, payables, loans and other accounts between Matson and A&B, in existence immediately prior to the Separation, were satisfied and/or settled; and intercompany agreements and all other arrangements in effect immediately prior to the distribution were terminated or canceled, subject to certain exceptions. | |||||
During the year ended December 31, 2012, the Company incurred total cash outflows of $166.2 million in relation to the Separation. Separation related expenses, referred to as Separation costs in the Consolidated Statements of Income and Comprehensive Income, are reported under the cash flows provided by operating activities from continuing operations, and capitalized debt financing costs under cash flows used in financing activities from continuing operations, as these costs do not qualify as discontinued operations. | |||||
The breakdown of Separation cash outflows for the year ended December 31, 2012 were as follows (in millions): | |||||
Separation Cash Outflows | |||||
Capital contribution to A&B | $ | 155.7 | |||
Separation costs | 8.6 | ||||
Capitalized debt financing costs | 1.9 | ||||
Total cash outflow related to the Separation | $ | 166.2 | |||
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||||||||
2. SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||||||
Principles of Consolidation: The consolidated financial statements include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of significant intercompany amounts. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. A controlling financial interest is one in which the Company has a majority voting interest or one in which the Company is the primary beneficiary of a variable interest entity. | ||||||||||||||||||||||||||
Fiscal Year: The period end for Matson, Inc. is December 31. The period end for MatNav occurred on the last Friday in December, except for Matson Logistics Warehousing whose period closed on December 31. There were 52 weeks included in the MatNav 2013, 2012 and 2011 fiscal years. | ||||||||||||||||||||||||||
Use of Estimates: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments, long-lived vessel and equipment impairment, legal contingencies, allowance for doubtful accounts, self-insured liabilities, goodwill and other finite-lived intangible assets impairment, pension and post-retirement estimates, and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions. | ||||||||||||||||||||||||||
Cash and Cash Equivalents: Cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. The Company carries these investments at cost, which approximates fair value. Outstanding checks in excess of funds on deposit totaled $19.8 million and $19.6 million at December 31, 2013 and 2012, respectively, and are reflected as current liabilities in the consolidated balance sheets. | ||||||||||||||||||||||||||
Fair Value of Financial Instruments: The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. | ||||||||||||||||||||||||||
The Company uses Level 1 inputs for the fair values of its cash and cash equivalents. The Company uses Level 2 inputs for its accounts receivable, and debt. The fair values of cash and cash equivalents, accounts receivable, and short-term debt approximate their carrying values due to the short-term nature of the instruments. The fair value of the Company’s long-term debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. | ||||||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
(in millions) | Total | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Cash and cash equivalents | $ | 114.5 | $ | 114.5 | $ | 114.5 | $ | — | $ | — | ||||||||||||||||
Accounts and notes receivable, net | 182.3 | 182.3 | — | 182.3 | — | |||||||||||||||||||||
Fixed rate debt | 286.1 | 292.7 | — | 292.7 | — | |||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||
December 31, 2012 | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
(in millions) | Total | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Cash and cash equivalents | $ | 19.9 | $ | 19.9 | $ | 19.9 | $ | — | $ | — | ||||||||||||||||
Accounts and notes receivable, net | 174.7 | 174.7 | — | 174.7 | — | |||||||||||||||||||||
Variable rate debt | 24 | 24 | — | 24 | — | |||||||||||||||||||||
Fixed rate debt | 295.1 | 316.8 | — | 316.8 | — | |||||||||||||||||||||
Accounts Receivable: Accounts receivable are shown net of allowance for doubtful accounts in the Consolidated Balance Sheet. At December 31, 2013, the Company had assigned $112.0 million of eligible accounts receivable to the Capital Construction Fund (see Note 7). No amounts were assigned in the prior year. | ||||||||||||||||||||||||||
Allowance for Doubtful Accounts: Allowances for doubtful accounts receivable are established by management based on estimates of collectability. Estimates of collectability are principally based on an evaluation of the current financial condition the Company’s customers and their payment history, which are regularly monitored by the Company. The changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2013 were as follows (in millions): | ||||||||||||||||||||||||||
Balance at | ||||||||||||||||||||||||||
Beginning of | Write-offs | Balance at End | ||||||||||||||||||||||||
Year | Expense | and Other | of Year | |||||||||||||||||||||||
2013 | $ | 4.7 | $ | 0.6 | $ | (1.2 | ) | $ | 4.1 | |||||||||||||||||
2012 | 5.3 | 0.7 | (1.3 | ) | 4.7 | |||||||||||||||||||||
2011 | 6.1 | — | (0.8 | ) | 5.3 | |||||||||||||||||||||
Prepaid and Other Assets: Prepaid expenses and other assets in the consolidated balance sheets includes $13.8 million and $17.9 million at December 31, 2013 and 2012, respectively, of diesel and heavy fuel oil that is primarily aboard the Company’s vessels, and is recorded at cost. | ||||||||||||||||||||||||||
Impairment of Investment: The Company’s investment in its Terminal Joint Venture is reviewed for impairment annually and whenever there is evidence that fair value may be below carrying cost. An investment is written down to fair value if fair value is below carrying cost and the impairment is other-than-temporary. In evaluating the fair value of an investment and whether any identified impairment is other-than-temporary, significant estimates and considerable judgments are involved. These estimates and judgments are based, in part, on the Company’s current and future evaluation of economic conditions in general, as well as the Terminal Joint Venture’s current and future plans. These fair value calculations are highly subjective because they require management to make assumptions and apply judgments to estimates regarding the timing and amount of future cash flows, probabilities related to various cash flow scenarios, and appropriate discount rates based on the perceived risks, among others. In evaluating whether an impairment is other-than-temporary, the Company considers all available information, including the length of time and extent of the impairment, the financial condition and near-term prospects of the Terminal Joint Venture, the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value, and projected industry and economic trends, among others. Changes in these and other assumptions could affect the projected operational results and fair value of the Terminal Joint Venture, and accordingly, may require valuation adjustments to the Company’s investment that may materially impact the Company’s financial condition or its future operating results. | ||||||||||||||||||||||||||
The Company has evaluated its investment in its Terminal Joint Venture for impairment and no impairment charges were recorded for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||||
Property and Equipment: Property and equipment are stated at cost. Certain costs incurred in the development of internal-use software are capitalized. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives of property and equipment are as follows: | ||||||||||||||||||||||||||
Classification | Range of Life (in years) | |||||||||||||||||||||||||
Vessels | 5 to 40 | |||||||||||||||||||||||||
Machinery and equipment | 2 to 20 | |||||||||||||||||||||||||
Terminal facilities | 2 to 35 | |||||||||||||||||||||||||
Impairment of Vessels and Equipment: The Company operates an integrated network of vessels, containers, and terminal equipment; therefore, in evaluating impairment, the Company groups its assets at the ocean transportation entity level, which represents the lowest level for which identifiable cash flows are available. The Company’s vessels and equipment are reviewed for possible impairment annually and whenever events or circumstances, such as recurring operating losses, indicate that their carrying values may not be recoverable. In evaluating impairment, the estimated future undiscounted cash flows generated by the asset group are compared with the amount recorded for the asset group to determine if its carrying value is not recoverable. If this review determines that the recorded value will not be recovered, the amount recorded for the asset group is reduced to estimated fair value. These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among other things, estimates of the timing and amount of future cash flows, expected useful lives of the assets, uncertainty about future events, including changes in economic conditions, changes in operating performance, changes in the use of the assets, and ongoing costs of maintenance and improvements of the assets, and thus, the accounting estimates may change from period to period. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted. | ||||||||||||||||||||||||||
The Company has evaluated its vessels and equipment for impairment and no impairment charges were recorded for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||||
Dry-docking Costs: The Company’s U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and Classification society requirements. These standards require that the Company’s ships undergo two dry-docking inspections within a five-year period. However, all of the Company’s U.S. flagged vessels are enrolled in the U.S. Coast Guard’s Underwater Survey in Lieu of Dry-docking (“UWILD”) program. The UWILD program allows eligible ships to have their intermediate dry-docking requirement to be met with a far less costly underwater inspection. | ||||||||||||||||||||||||||
The Company operates four non-U.S. flag vessels (one owned; one under a bareboat charter arrangement; and the remaining two on time charter) in the Pacific Islands. The Company is responsible for ensuring that the owned and bareboat chartered ships meet international standards for seaworthiness, which among other requirements generally mandate that the Company perform two dry-docking inspections every five years. The dry-dockings of the Company’s other chartered vessels are the responsibility of the ships’ owners. | ||||||||||||||||||||||||||
As the costs associated with these dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the next regularly scheduled inspection, which is usually over a two to five-year period. Routine vessel maintenance and repairs that do not improve or extend asset lives are charged to expense as incurred. Deferred dry-docking costs were $56.9 million and $66.3 million as of December 31, 2013 and 2012, respectively, and are included in other long-term assets in the consolidated balance sheets. Amortized amounts are charged to operating expenses in the consolidated statements of income and comprehensive income. Changes in deferred dry-docking costs are included in the consolidated statements of cash flows. | ||||||||||||||||||||||||||
Goodwill and Intangible Assets: Recorded goodwill arises as a result of acquisitions made by the Company. Intangible assets consist of customer lists and tradenames. The Company amortizes customer lists and trademarks using the straight-line method over the expected useful lives of up to 13 years. | ||||||||||||||||||||||||||
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets: The Company’s long-lived assets, including finite-lived intangible assets, are reviewed for possible impairment annually and whenever events or circumstances indicate that the carrying value may not be recoverable. In such an evaluation, the estimated future undiscounted cash flows generated by the asset are compared with the amount recorded for the asset to determine if its carrying value is not recoverable. If this review determines that the recorded value will not be recovered, the amount recorded for the asset is reduced to estimated fair value. These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among others, estimates of the timing and amount of future cash flows, expected useful lives of the assets, uncertainty about future events, including changes in economic conditions, changes in operating performance, changes in the use of the assets, and ongoing costs of maintenance and improvements of the assets, and thus, the accounting estimates may change from period to period. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted. | ||||||||||||||||||||||||||
The Company has evaluated certain long-lived assets, including finite-lived intangible assets, for impairment and no impairment charges were recorded for the years ended December 31, 2013 and 2011. During 2012 the Company determined that it had an impairment related to intangible assets at Logistics. The Company recorded impairment expense of $2.1 million for the year ended December 31, 2012, which is included in operating expense on the consolidated statements of income and comprehensive income. | ||||||||||||||||||||||||||
Impairment of Goodwill: The Company reviews goodwill for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The discounted cash flow approach requires the Company to use a number of assumptions, including market factors specific to the business, the amount and timing of estimated future cash flows to be generated by the business over an extended period of time, long-term growth rates for the business, and a discount rate that considers the risks related to the amount and timing of the cash flows. Although the assumptions used by the Company in its discounted cash flow model are consistent with the assumptions the Company used to generate its internal strategic plans and forecasts, significant judgment is required to estimate the amount and timing of future cash flows from the reporting unit and the risk of achieving those cash flows. When using market multiples of EBITDA, the Company must make judgments about the comparability of those multiples in closed and proposed transactions. Accordingly, changes in assumptions and estimates, including, but not limited to, changes driven by external factors, such as industry and economic trends, and those driven by internal factors, such as changes in the Company’s business strategy and its internal forecasts, could have a material effect on the Company’s financial condition or its future operating results. | ||||||||||||||||||||||||||
The Company has evaluated its goodwill for impairment and no impairment charges were recorded for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||
Pension and Post-Retirement Plans: Certain ocean transportation subsidiaries are members of the Pacific Maritime Association (“PMA”) and the Hawaii Stevedoring Industry Committee, which negotiate multiemployer pension plans covering certain shoreside bargaining unit personnel. The subsidiaries directly negotiate multiemployer pension plans covering other bargaining unit personnel. Pension costs are accrued in accordance with contribution rates established by the PMA, the parties to a plan or the trustees of a plan. Several trusteed, non-contributory, single-employer defined benefit plans and defined contribution plans cover substantially all other employees. | ||||||||||||||||||||||||||
The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires that the Company make various assumptions. These assumptions include factors such as discount rates, expected long-term rate of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates, and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results. The effects of changing assumptions are included in unamortized net gains and losses, which directly affect accumulated other comprehensive income. Additionally, these unamortized gains and losses are amortized and reclassified to income (loss) over future periods. Additional information about the Company’s benefit plans is included in Note 10. | ||||||||||||||||||||||||||
Self-Insured Liabilities: The Company is self-insured for certain losses including, but not limited to, employee health, workers’ compensation, general liability, real and personal property. Where feasible, the Company obtains third-party excess insurance coverage to limit its exposure to these claims. When estimating its self-insured liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by independent third-parties. Periodically, management reviews its assumptions and the analyses provided by independent third-parties to determine the adequacy of the Company’s self-insured liabilities. The Company’s self-insured liabilities contain uncertainties because management is required to apply judgment and make long-term assumptions to estimate the ultimate cost to settle reported claims and claims incurred, but not reported, as of the balance sheet date. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted. | ||||||||||||||||||||||||||
Legal Contingencies: The Company’s results of operations could be affected by significant litigation adverse to the Company, including, but not limited to, liability claims, antitrust claims, claims related to coastwise trading matters, lawsuits involving private plaintiffs or government agencies, and environmental related matters. The Company records accruals for legal matters when the information available indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Management makes adjustments to these accruals to reflect the impact and status of negotiations, settlements, rulings, advice of outside legal counsel and other information and events that may pertain to a particular matter. Predicting the outcome of claims and lawsuits and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from those estimates. In making determinations of likely outcomes of litigation matters, the Company considers many factors. These factors include, but are not limited to, the nature of specific claims including unasserted claims, the Company’s experience with similar types of claims, the jurisdiction in which the matter is filed, input from outside legal counsel, the likelihood of resolving the matter through alternative dispute resolution mechanisms and the matter’s current status. A detailed discussion of significant litigation matters is contained in Note 13. | ||||||||||||||||||||||||||
Recognition of Revenues and Expenses: Voyage revenue is recognized ratably over the duration of a voyage based on the relative transit time in each reporting period. Voyage expenses are recognized as incurred. Hawaii, Guam, and certain Pacific island service freight rates are provided in tariffs filed with the Surface Transportation Board of the U.S. Department of Transportation; for other Pacific island services, the rates are filed with the Federal Maritime Commission. The China service rates are predominately established by individual contracts with customers. | ||||||||||||||||||||||||||
The revenue for logistics services includes the total amount billed to customers for transportation services. The primary costs include purchased transportation services. Revenue and the related purchased transportation costs are recognized based on relative transit time, commonly referred to as the “percentage of completion” method. The Company reports revenue on a gross basis. The Company serves as principal in transactions because it is responsible for the contractual relationship with the customer, has latitude in establishing prices, has discretion in supplier selection, and retains credit risk. | ||||||||||||||||||||||||||
The primary sources of revenue for warehousing services are storage, handling, and value-added packaging. For customer dedicated warehouses, storage revenue is recognized as earned over the life of the contract. Storage revenue generated by the public warehouses is recognized in the month the service is provided according to the terms of the contract. Handling and value-added packaging revenue and expense are recognized in proportion to the services completed. | ||||||||||||||||||||||||||
Non-voyage Costs: Non-voyage costs such as terminal operating overhead, and general and administrative expenses are charged to expense as incurred. | ||||||||||||||||||||||||||
Share-Based Compensation: The Company records compensation expense for all share-based payment awards made to employees and directors. The Company’s various equity plans are more fully described in Note 12. | ||||||||||||||||||||||||||
Income Taxes: Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse. Adjustments may be required to deferred tax assets and deferred tax liabilities due to changes in tax laws and audit adjustments by tax authorities. To the extent adjustments are required in any given period, the adjustments would be included within the tax provision in the Consolidated Statements of Income and Comprehensive Income and/or Consolidated Balance Sheets. | ||||||||||||||||||||||||||
The Company makes certain estimates and judgments in determining income tax expense for consolidated financial statement purposes. These estimates and judgments are applied in the calculation of tax credits, tax benefits and deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and consolidated financial statement purposes. In addition, judgment is required in determining if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. | ||||||||||||||||||||||||||
In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertain tax positions taken or expected to be taken with respect to the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could materially affect the Company’s financial condition or its future operating results. | ||||||||||||||||||||||||||
The Company has not recorded a valuation allowance for its deferred tax assets. A valuation allowance would be established if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. | ||||||||||||||||||||||||||
Discontinued Operations: The termination of certain business lines are classified as discontinued operations if the operations and cash flows of the assets clearly can be distinguished from the remaining assets of the Company, if cash flows for the assets have been, or will be, eliminated from the ongoing operations of the Company, if the Company will not have a significant continuing involvement in the operations of the assets sold, and if the amount is considered material. As a result, the operations for the Company’s second China Long Beach Express Service (“CLX2”) and A&B have been shown as discontinued operations (see Note 3). | ||||||||||||||||||||||||||
Comprehensive Income (Loss): Comprehensive income (loss) includes all changes in Shareholders’ Equity, except those resulting from capital stock transactions. Other comprehensive income (loss) in the consolidated statements of income and comprehensive income are shown net of tax (expense) benefit of ($14.1) million, ($0.3) million, and $6.3 million for the years ended December 2013, 2012 and 2011, respectively. Accumulated other comprehensive loss of $23.5 million and $45.5 million at December 31, 2013 and 2012, respectively, primarily included amortization of deferred pension, post-retirement costs and non-qualified plans of $22.6 million and $44.6 million, respectively. | ||||||||||||||||||||||||||
Basic and Diluted Earnings per Share (“EPS”) of Common Stock: Basic earnings per share are determined by dividing net income by the weighted-average common shares outstanding during the year. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested stock units. The computation of weighted average dilutive shares outstanding excluded non-qualified stock options to purchase 0.1 million, 0.5 million, and 1.4 million shares of common stock for 2013, 2012, and 2011, respectively. These amounts were excluded because the options’ exercise prices were greater than the average market price of the Company’s common stock for the periods presented and, therefore, the effect would be anti-dilutive. | ||||||||||||||||||||||||||
The denominator used to compute basic and diluted earnings per share is as follows (in millions): | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | Weighted | Per | |||||||||||||||||||||
Average | Common | Average | Common | Average | Common | |||||||||||||||||||||
Net | Common | Share | Net | Common | Share | Net | Common | Share | ||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 53.7 | 42.7 | $ | 1.26 | $ | 52 | 42.3 | $ | 1.23 | $ | 45.8 | 41.6 | $ | 1.1 | |||||||||||
Loss from discontinued operations | — | 42.7 | — | (6.1 | ) | 42.3 | (0.14 | ) | (11.6 | ) | 41.6 | (0.28 | ) | |||||||||||||
Net Income | $ | 53.7 | $ | 1.26 | $ | 45.9 | $ | 1.09 | $ | 34.2 | $ | 0.82 | ||||||||||||||
Effect of Dilutive Securities | 0.4 | 0.4 | 0.4 | |||||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 53.7 | 43.1 | $ | 1.25 | $ | 52 | 42.7 | $ | 1.22 | $ | 45.8 | 42 | $ | 1.09 | |||||||||||
Loss from discontinued operations | — | 43.1 | — | (6.1 | ) | 42.7 | (0.14 | ) | (11.6 | ) | 42 | (0.28 | ) | |||||||||||||
Net Income | $ | 53.7 | $ | 1.25 | $ | 45.9 | $ | 1.08 | $ | 34.2 | $ | 0.81 | ||||||||||||||
Rounding: Amounts in the consolidated financial statements and Notes are rounded to millions, but per-share calculations and percentages were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. | ||||||||||||||||||||||||||
Reclassification: Amounts for goodwill and intangible assets at December 31, 2012 have been reclassified from other long-term assets in the Company’s consolidated balance sheet to conform to the current year presentation. | ||||||||||||||||||||||||||
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||
3. DISCONTINUED OPERATIONS | |||||||||||
There were no discontinued operations during the year ended December 31, 2013. Loss from discontinued operations for the years ended December 31, 2012 and 2011, consisted of the following (in millions): | |||||||||||
Years Ended December 31, | |||||||||||
2012 | 2011 | ||||||||||
Discontinued operations, net of income taxes: | |||||||||||
Income from A&B | $ | 116.4 | $ | 274.7 | |||||||
Expenses from A&B | (118.1 | ) | (243.5 | ) | |||||||
Tax expense from A&B | (1.6 | ) | (7.2 | ) | |||||||
(Loss) income from A&B | (3.3 | ) | 24 | ||||||||
Income from CLX2 | — | 92.7 | |||||||||
Expenses from CLX2 | (4.4 | ) | (149.4 | ) | |||||||
Tax benefit from CLX2 | 1.6 | 21.1 | |||||||||
Loss from discontinued operations, net of tax | $ | (6.1 | ) | $ | (11.6 | ) | |||||
The Separation from A&B was completed on June 29, 2012 and is further discussed in Note 1. In the third quarter of 2011, the Company terminated its second China Long Beach Express Service (“CLX2”), due to the longer-term outlook for sustained high fuel prices and increasingly volatile Transpacific rates. As of the termination date, the Company had established and approved plans to (i) return to the lessors or sub-charter the five vessels used in the service (ii) off-hire or dispose of certain excess container equipment and (iii) terminate office contracts and employees. These plans were substantially completed as of September 30, 2011; however, the off-hiring of excess leased containers continued through 2012 and two of the five ships were offered for sub-charter until they were returned to the lessors in July 2012. The remaining three ships were returned to the lessors as of September 30, 2011 pursuant to the terms of the one-year charter contracts. As of December 31, 2012, the Company had no future liabilities related to CLX2 and the Company did not incur any additional losses from the discontinued operations during 2013. | |||||||||||
The following table provides information regarding liabilities associated with the termination of CLX2 (in millions): | |||||||||||
Containers | Other | Total | |||||||||
and Charter | Contractual | ||||||||||
Liabilities | Liabilities | ||||||||||
Balance at December 31, 2011 | $ | 4.8 | $ | 0.1 | $ | 4.9 | |||||
Expenses incurred | 4.5 | 0 | 4.5 | ||||||||
Amounts paid | (9.3 | ) | (0.1 | ) | (9.4 | ) | |||||
Balance at December 31, 2012 | $ | — | $ | — | $ | — | |||||
INVESTMENT_IN_TERMINAL_JOINT_V
INVESTMENT IN TERMINAL JOINT VENTURE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INVESTMENT IN TERMINAL JOINT VENTURE | ' | ||||||||||
INVESTMENT IN TERMINAL JOINT VENTURE | ' | ||||||||||
4. INVESTMENT IN TERMINAL JOINT VENTURE | |||||||||||
The Company accounts for its 35 percent ownership interest in the Terminal Joint Venture under the equity method of accounting. The Company records its share of income (loss) in the Terminal Joint Venture in operating expenses within the ocean transportation segment, due to operations of the Terminal Joint Venture being an integral part of the Company’s business. The Company’s investment in the Terminal Joint Venture was $57.6 million and $59.6 million at December 31, 2013 and 2012, respectively. | |||||||||||
No dividends and distributions were received from the Terminal Joint Venture in 2013 or 2012. Dividends received from the Terminal Joint Venture totaled $5.3 million in 2011. The Company’s operating costs include $164.3 million, $163.8 million, and $175.2 million for 2013, 2012, and 2011, respectively, for terminal services provided by SSAT. Accounts payable and accrued liabilities in the Consolidated Balance Sheets include $15.3 million and $15.7 million for terminal services payable to the Terminal Joint Venture at December 31, 2013 and 2012, respectively. | |||||||||||
A summary of financial information for the Terminal Joint Venture at December 31, 2013 and 2012 is as follows (in millions): | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current assets | $ | 73.5 | $ | 90.8 | |||||||
Noncurrent assets | 137.1 | 139.2 | |||||||||
Total assets | $ | 210.6 | $ | 230 | |||||||
Current liabilities | $ | 43.2 | $ | 55.9 | |||||||
Noncurrent liabilities | 15.7 | 14.7 | |||||||||
Equity | 151.7 | 159.4 | |||||||||
Total liabilities | $ | 210.6 | $ | 230 | |||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Operating revenue | $ | 498.4 | $ | 503.9 | $ | 578.6 | |||||
Operating costs and expenses | 517.4 | 506.4 | 571.7 | ||||||||
Operating (loss) income | (19.0 | ) | (2.5 | ) | 6.9 | ||||||
Net (loss) income (1) | $ | (5.7 | ) | $ | 9.5 | $ | 26.3 | ||||
The Company’s share of net (loss) income | $ | (2.0 | ) | $ | 3.2 | $ | 8.6 | ||||
(1) Includes earnings from equity method investments held by the investee | |||||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||||
5. PROPERTY AND EQUIPMENT | |||||||||||
Property and equipment at December 31, 2013 and 2012 includes the following (in millions): | |||||||||||
As of December 31, 2013 | |||||||||||
Cost | Accumulated | Net Book | |||||||||
Depreciation | Value | ||||||||||
Vessels | $ | 1,260.20 | $ | 718.1 | $ | 542.1 | |||||
Containers and equipment | 470.6 | 310.4 | 160.2 | ||||||||
Terminal facilities and other property | 38.9 | 30.9 | 8 | ||||||||
Construction in progress | 25.1 | — | 25.1 | ||||||||
Total | $ | 1,794.80 | $ | 1,059.40 | $ | 735.4 | |||||
As of December 31, 2012 | |||||||||||
Cost | Accumulated | Net Book | |||||||||
Depreciation | Value | ||||||||||
Vessels | $ | 1,249.10 | $ | 679.4 | $ | 569.7 | |||||
Containers and equipment | 468.5 | 300.1 | 168.4 | ||||||||
Terminal facilities and other property | 38.5 | 28.8 | 9.7 | ||||||||
Construction in progress | 14.7 | — | 14.7 | ||||||||
Total | $ | 1,770.80 | $ | 1,008.30 | $ | 762.5 | |||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Depreciation Expense | $ | 67.4 | $ | 70.6 | $ | 69.4 | |||||
Property and equipment subject to capital leases was $3.1 million at December 31, 2013 and amortization recorded in the Consolidated Statement of Income and Comprehensive Income was $0.3 million for the year ended December 31, 2013. | |||||||||||
During the fourth quarter of 2013, the Company entered into agreements with a shipyard for the construction of two new 3,600 twenty-foot equivalent units Aloha-class container ships at a cost of $418.0 million. The container ships are expected to be delivered during 2018. The Company made an initial payment of $8.4 million to the shipyard during 2013, which is included in construction in progress. Additional payments totaling $92.0 million are payable in 2015 and 2016, with the remaining balance payable in 2017 and 2018. | |||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||
6. GOODWILL AND INTANGIBLE ASSETS | |||||||||||
Changes in the Company’s goodwill for the years ended December 31, 2013 and 2012 consist of the following (in millions): | |||||||||||
Goodwill | |||||||||||
Ocean | |||||||||||
Logistics | Transportation | Total | |||||||||
Balance, December 31, 2011 | $ | 27 | $ | — | $ | 27 | |||||
Additions | — | — | — | ||||||||
Balance, December 31, 2012 | 27 | — | 27 | ||||||||
Additions | — | 0.4 | 0.4 | ||||||||
Balance, December 31, 2013 | $ | 27 | $ | 0.4 | $ | 27.4 | |||||
There was no accumulated impairment related to goodwill as of December 31, 2013 and 2012. | |||||||||||
Intangible assets as of December 31, 2013 and 2012 include the following (in millions): | |||||||||||
As of December 31, 2013 | |||||||||||
Gross | Accumulated | Net Book | |||||||||
Cost | Amortization | Value | |||||||||
Customer lists | $ | 10.4 | $ | (6.8 | ) | $ | 3.6 | ||||
Tradenames | 3.9 | (3.7 | ) | 0.2 | |||||||
Total intangible assets | $ | 14.3 | $ | (10.5 | ) | $ | 3.8 | ||||
As of December 31, 2012 | |||||||||||
Gross | Accumulated | Net Book | |||||||||
Cost | Amortization | Value | |||||||||
Customer lists | $ | 9.7 | $ | (6.2 | ) | $ | 3.5 | ||||
Tradenames | 3.8 | (3.4 | ) | 0.4 | |||||||
Total intangible assets | $ | 13.5 | $ | (9.6 | ) | $ | 3.9 | ||||
Aggregate intangible asset amortization was $0.8 million, $0.7 million, and $0.9 million for 2013, 2012, and 2011, respectively. Estimated amortization expenses related to intangible assets over the next five years are as follows (in millions): | |||||||||||
Estimated | |||||||||||
Amortization | |||||||||||
2014 | $ | 0.8 | |||||||||
2015 | 0.5 | ||||||||||
2016 | 0.5 | ||||||||||
2017 | 0.5 | ||||||||||
2018 | 0.4 | ||||||||||
Thereafter | 1.1 | ||||||||||
Total | $ | 3.8 | |||||||||
CAPITAL_CONSTRUCTION_FUND
CAPITAL CONSTRUCTION FUND | 12 Months Ended |
Dec. 31, 2013 | |
CAPITAL CONSTRUCTION FUND | ' |
CAPITAL CONSTRUCTION FUND | ' |
7. CAPITAL CONSTRUCTION FUND | |
The Company is party to an agreement with the United States government that established a Capital Construction Fund (“CCF”) under provisions of the Merchant Marine Act of 1936, as amended. The agreement has program objectives for the acquisition, construction, or reconstruction of vessels and for repayment of existing vessel indebtedness. Deposits to the CCF are limited by certain applicable earnings. Such deposits are tax deductions in the year made; however, they are taxable, with interest payable from the year of deposit, if withdrawn for general corporate purposes or other non-qualified purposes, or upon termination of the agreement. Qualified withdrawals for investment in vessels and certain related equipment do not give rise to a current tax liability, but reduce the depreciable basis of the vessels or other assets for income tax purposes. | |
Amounts deposited into the CCF are a preference item for calculating federal alternative minimum taxable income. Deposits not committed for qualified purposes within 25 years from the date of deposit will be treated as non-qualified withdrawals over the subsequent five years. Under the terms of the CCF agreement, the Company may designate certain qualified earnings as “accrued deposits” or may designate, as obligations of the CCF, qualified withdrawals to reimburse qualified expenditures initially made with operating funds. Such accrued deposits to, and withdrawals from, the CCF are reflected on the consolidated balance sheets either as obligations of the Company’s current assets or as receivables from the CCF. | |
During 2013, the Company deposited $4.4 million in cash and assigned $111.8 million of eligible accounts receivable into the CCF. The Company also made qualified withdrawals of $4.4 million from the CCF during 2013. At December 31, 2013, the Company had $112.0 million on deposit in the CCF by way of assigned eligible accounts receivable. Due to the nature of this transaction, the deposit in the CCF is classified as part of accounts receivable in the Consolidated Balance Sheet. | |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ' | |||||||
8. LONG-TERM DEBT | ||||||||
At December 31, 2013 and 2012, long-term debt consisted of the following (in millions): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Term Loans: | ||||||||
5.79%, payable through 2020 | $ | 45.5 | $ | 52.5 | ||||
3.66%, payable through 2023 | 77.5 | 77.5 | ||||||
4.16%, payable through 2027 | 55 | 55 | ||||||
4.31%, payable through 2032 | 37.5 | 37.5 | ||||||
Title XI Bonds: | ||||||||
5.34%, payable through 2028 | 33 | 35.2 | ||||||
5.27%, payable through 2029 | 35.2 | 37.4 | ||||||
Revolving Credit Borrowings (1.69% for 2012) | — | 24 | ||||||
Capital leases | 2.4 | — | ||||||
286.1 | 319.1 | |||||||
Less current portion | (12.5 | ) | (16.4 | ) | ||||
Total long-term debt | $ | 273.6 | $ | 302.7 | ||||
Long-term Debt Maturities: At December 31, 2013, debt maturities during the next five years and thereafter are as follows (in millions): | ||||||||
2014 | $ | 12.5 | ||||||
2015 | 21.7 | |||||||
2016 | 20.6 | |||||||
2017 | 28.2 | |||||||
2018 | 28.2 | |||||||
Thereafter | 174.9 | |||||||
Total | $ | 286.1 | ||||||
Term Loans: During the second quarter of 2012, the Company executed new unsecured, fixed rate, amortizing long-term debt of $170.0 million, which was funded in three tranches, $77.5 million at an interest rate of 3.66% maturing in 2023, $55.0 million at an interest rate of 4.16% maturing in 2027, and $37.5 million at an interest rate of 4.31% maturing in 2032. Interest is payable semi-annually. The weighted average coupon and average life of the three tranches of debt is 3.97% and 9.2 years, respectively. The notes will begin to amortize in 2015, with aggregate semi-annual payments of $4.6 million through 2016, $8.4 million in 2017 through mid-year 2023, $3.8 million through mid-year 2027, and $1.2 million thereafter. The cash received from the issuance of the three tranches of debt was partially utilized for the contribution of cash to A&B during the Separation. | ||||||||
In May 2005, the Company partially financed the delivery of the MV Manulani by issuing $105.0 million of Series B Notes with a coupon of 4.79% and 15-year final maturity. The notes amortize by semi-annual principal payments of $3.5 million plus interest. The Company negotiated the release of the MV Manulani as security for the remaining long-term debt of $56.0 million as part of the Company’s debt restructuring completed during the Separation, resulting in an increase in the interest rate to 5.79%. | ||||||||
In January 2014, the Company issued $100 million of 30-year senior unsecured notes (the “Notes”). The Notes have a weighted average life of 14.5 years and bear interest at a rate of 4.35%, payable semi-annually. The proceeds are expected to be used for general corporate purposes. The Notes will begin to amortize in 2021, with annual principal payments of $5.0 million in 2021, $7.5 million in 2022 and 2023, $10.0 million from 2024 to 2027, and $8.0 million in 2028. Starting in 2029, and in each year thereafter until 2044, annual principal payments will be $2.0 million. | ||||||||
Title XI Bonds: In September 2003, the Company issued $55.0 million in U.S. Government guaranteed ship finance bonds (Title XI) to partially finance the delivery of the MV Manukai. The secured bonds have a final maturity in September 2028 with a coupon of 5.34%. The bonds are amortized by fifty semi-annual payments of $1.1 million plus interest. In August 2004, the Company issued $55.0 million of U.S. Government guaranteed ship finance bonds (Title XI) to partially finance the delivery of the MV Maunawili. The secured bonds have a final maturity in July 2029, with a coupon of 5.27%. The bonds are amortized by fifty semi-annual payments of $1.1 million plus interest. | ||||||||
Revolving Credit Facility: During the second quarter 2012, the Company entered into a new $375.0 million, five-year unsecured revolving credit facility with a syndicate of banks in order to provide additional sources of liquidity for working capital requirements and investment opportunities. As of December 31, 2013, the used portion of the Company’s revolving credit facility was $5.8 million, all of which was from letters of credit. | ||||||||
In August 2011, the Company renewed its revolving credit facility with a commitment of $125.0 million and an expiration date of August 2016. Amounts drawn under the facility accrued interest at LIBOR plus a margin based on a ratio of consolidated debt to earnings before interest, taxes, depreciation and amortization pricing grid. Borrowing rates ranged from 1.21% to 1.92% during 2012, and 0.44% to 1.91% during 2011. As part of the Company’s debt restructuring completed in June 2012, in connection with the Separation, the outstanding balance of $72.0 million was paid off and the facility was terminated. | ||||||||
Capital Leases: As of December 31, 2013, the Company had obligations under its capital leases of $2.4 million consisting of specialized and standard containers used in the Company’s South Pacific service. Capital leases have been classified within current and long-term debt in the Company’s Consolidated Balance Sheet. | ||||||||
Total debt was $286.1 million as of December 31, 2013, compared with $319.1 million at the end of 2012. The outstanding debt was unsecured, except for $68.2 million as of December 31, 2013, which is guaranteed by the Company’s significant subsidiaries. | ||||||||
Principal financial covenants as defined in the Company’s five-year revolving credit facility (“Credit Agreement”) and long-term fixed rate debt include, but are not limited to: | ||||||||
· The ratio of debt to consolidated EBITDA cannot exceed 3.25 to 1.00 for each fiscal four quarter period; | ||||||||
· The ratio of consolidated EBITDA to interest expense as of the end of any fiscal four quarter period cannot be less than 3.50 to 1.00; and | ||||||||
· The principal amount of priority debt at any time cannot exceed 20% of consolidated tangible assets; and the principal amount of priority debt that is not Title XI priority debt at any time cannot exceed 10% of consolidated tangible assets. Priority debt, as further defined in the Credit Agreement, is all debt secured by a lien on the Company’s assets or subsidiary debt. | ||||||||
The Company was in compliance with these covenants as of December 31, 2013, with a debt to consolidated EBITDA ratio of 1.61, consolidated EBITDA to interest expense ratio of 12.28, and priority debt to consolidated tangible assets ratio of 5.8%. |
LEASES
LEASES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES | ' | ||||
LEASES | ' | ||||
9. LEASES | |||||
The Company has operating leases for vessels, containers, equipment, office and warehouse space and terminal facilities for periods of 1 to 50 years, expiring between 2014 and 2036. Rent expense under operating leases totaled $58.2 million in 2013, $52.3 million in 2012 and $49.6 million in 2011, which includes volume-based terminal rent. Additionally, rent expense for short-term and cancelable equipment rentals was $20.5 million, $17.8 million and $38.4 million in 2013, 2012, and 2011, respectively. Management expects that in the normal course of business most operating leases will be renewed or replaced by other similar leases. | |||||
Future minimum payments under operating leases as of December 31, 2013 were as follows (in millions): | |||||
Total Operating | |||||
Year | Leases | ||||
2014 | $ | 22 | |||
2015 | 18.1 | ||||
2016 | 11.9 | ||||
2017 | 8 | ||||
2018 | 2.8 | ||||
Thereafter | 7.1 | ||||
Total minimum lease payments | $ | 69.9 | |||
In addition to the future minimum lease payments above, the Company’s operating lease for terminal facilities in Honolulu includes a minimum annual commitment, which is calculated by the lessor based on capital improvements by the lessor and an allocation of lessor operating expenses. The Company’s payments of volume-based charges to the lessor must meet or exceed the minimum annual commitment. The Company’s volume-based payments to the lessor were $35.6 million in 2013, $31.7 million in 2012, and $26.5 million in 2011, which exceeded the minimum annual commitment. |
PENSION_AND_POST_RETIREMENT_PL
PENSION AND POST RETIREMENT PLANS | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
PENSION AND POST RETIREMENT PLANS | ' | ||||||||||||||||||||||
PENSION AND POST RETIREMENT PLANS | ' | ||||||||||||||||||||||
10. PENSION AND POST RETIREMENT PLANS | |||||||||||||||||||||||
The Company has two funded qualified single-employer defined benefit pension plans that cover certain non-bargaining unit employees and bargaining unit employees. In addition, the Company has plans that provide certain retiree health care and life insurance benefits to substantially all salaried, non-bargaining employees hired before 2008 and to certain bargaining unit employees. Employees are generally eligible for such benefits upon retirement and completion of a specified number of years of service. The Company does not pre-fund these health care and life insurance benefits, and has the right to modify or terminate certain of these plans in the future. Certain groups of retirees pay a portion of the benefit costs. | |||||||||||||||||||||||
Plan Administration, Investments and Asset Allocations: The Company has an Investment Committee that meets regularly with investment advisors to establish investment policies, direct investments and select investment options. The Investment Committee is also responsible for appointing investment managers and monitoring their performance. The Company’s investment policy permits investments in marketable equity securities, such as domestic and foreign stocks, domestic and foreign bonds, venture capital, real estate investments, and cash equivalents. The Company’s investment policy does not permit direct investment in certain types of assets, such as options or commodities, or the use of certain strategies, such as short selling or the purchase of securities on margin. | |||||||||||||||||||||||
The Company’s investment strategy for its pension plan assets is to achieve a diversified mix of investments that provides for long-term growth at an acceptable level of risk, and to provide sufficient liquidity to fund ongoing benefit payments. The Company has engaged a number of investment managers to implement various investment strategies to achieve the desired asset class mix, liquidity and risk diversification objectives. | |||||||||||||||||||||||
The Company’s target and actual weighted-average asset allocations at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||
Target | 2013 | 2012 | |||||||||||||||||||||
Domestic equity securities | 53 | % | 58 | % | 56 | % | |||||||||||||||||
International equity securities | 15 | % | 15 | % | 14 | % | |||||||||||||||||
Debt securities | 22 | % | 18 | % | 19 | % | |||||||||||||||||
Real estate | 5 | % | 5 | % | 5 | % | |||||||||||||||||
Other and cash | 5 | % | 4 | % | 6 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||
The Company’s investments in equity securities primarily include domestic large-cap and mid-cap companies, but also includes an allocation to small-cap and international equity securities. Equity investments do not include any direct holdings of the Company’s stock but may include such holdings to the extent that the stock is included as part of certain mutual fund holdings. Debt securities include investment-grade and high-yield corporate bonds from diversified industries, mortgage-backed securities, and U.S. Treasuries. Other types of investments include funds that invest in commercial real estate assets, and to a lesser extent, private equity investments in technology companies. | |||||||||||||||||||||||
The expected return on plan assets is principally based on the Company’s historical returns combined with the Company’s long-term future expectations regarding asset class returns, the mix of plan assets, and inflation assumptions. One-, three-, and five-year pension asset returns (losses) were 21.1 percent, 10.2 percent, and 12.4 percent, respectively, and the long-term average return (since plan inception in 1989) has been approximately 8.8 percent. Over the long-term, the actual returns have generally exceeded the benchmark returns used by the Company to evaluate performance of its fund managers. | |||||||||||||||||||||||
The Company’s pension plan assets are held in a master trust and are stated at estimated fair values of the underlying investments. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. | |||||||||||||||||||||||
Equity Securities: Domestic and international common stocks are valued by obtaining quoted prices on recognized and highly liquid exchanges. | |||||||||||||||||||||||
Fixed Income Securities: Corporate bonds and U.S. government treasury and agency securities are valued based upon the closing price reported in the market in which the security is traded. U.S. government agency and corporate asset-backed securities may utilize models, such as a matrix pricing model, that incorporate other observable inputs such as cash flow, security structure, or market information, when broker/dealer quotes are not available. | |||||||||||||||||||||||
Real Estate, Private Equity and Insurance Contract Interests: The fair value of real estate, private equity and insurance contract interests are determined by the issuer based on the unit values of the funds. Unit values are determined by dividing the fund’s net assets by the number of units outstanding at the valuation date. Fair value for underlying investments in real estate is determined through independent property appraisals. Fair value of underlying investments in private equity is determined based on information provided by the general partner taking into consideration the purchase price of the underlying securities, developments concerning the investee company subsequent to the acquisition of the investment, financial data and projections of the investee company provided by the general partner, and such other factors as the general partner deems relevant. Insurance contracts are principally invested in real estate assets, which are valued based upon independent appraisals. | |||||||||||||||||||||||
The fair values of the Company’s pension plan assets at December 31, 2013 and 2012, by asset category, are as follows (in millions): | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||
(Level 1) | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||||
Cash | $ | 6.9 | $ | 6.9 | $ | — | $ | — | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. large-cap | 64.2 | 64.2 | — | — | |||||||||||||||||||
U.S. mid- and small-cap | 35.7 | 35.7 | — | — | |||||||||||||||||||
International large-cap | 19 | 19 | — | — | |||||||||||||||||||
International small-cap | 7.2 | 7.2 | — | — | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. Treasuries | 0.6 | — | 0.6 | — | |||||||||||||||||||
Municipal bonds | 0.1 | — | 0.1 | — | |||||||||||||||||||
Investment grade U.S. corporate bonds | 1.9 | — | 1.9 | — | |||||||||||||||||||
High-yield U.S. corporate bonds | 6.7 | — | 6.7 | — | |||||||||||||||||||
Emerging markets fixed income | 8.9 | 8.9 | — | — | |||||||||||||||||||
Mortgage-backed securities | 12.7 | — | 12.7 | — | |||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||
Real estate partnership interests | 8.6 | — | — | 8.6 | |||||||||||||||||||
Private equity partnership interests (1) | 0.3 | — | — | 0.3 | |||||||||||||||||||
Total | $ | 172.8 | $ | 141.9 | $ | 22 | $ | 8.9 | |||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||
(Level 1) | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||||
Cash | $ | 8.3 | $ | 8.3 | $ | — | $ | — | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. large-cap | 53.8 | 53.8 | — | — | |||||||||||||||||||
U.S. mid- and small-cap | 29.8 | 29.8 | — | — | |||||||||||||||||||
International large-cap | 16.7 | 16.7 | — | — | |||||||||||||||||||
International small-cap | 4.3 | 4.3 | — | — | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. Treasuries | 0.8 | — | 0.8 | — | |||||||||||||||||||
Municipal bonds | 0.2 | — | 0.2 | — | |||||||||||||||||||
Investment grade U.S. corporate bonds | 2 | — | 2 | — | |||||||||||||||||||
High-yield U.S. corporate bonds | 6.4 | — | 6.4 | — | |||||||||||||||||||
Emerging markets fixed income | 4.3 | 4.3 | — | — | |||||||||||||||||||
Mortgage-backed securities | 14 | — | 14 | — | |||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||
Real estate partnership interests | 7.8 | — | — | 7.8 | |||||||||||||||||||
Private equity partnership interests (1) | 0.8 | — | — | 0.8 | |||||||||||||||||||
Total | $ | 149.2 | $ | 117.2 | $ | 23.4 | $ | 8.6 | |||||||||||||||
(1) This category represents private equity funds that invest principally in U.S. technology companies. | |||||||||||||||||||||||
The table below presents a reconciliation of all pension plan investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 (in millions): | |||||||||||||||||||||||
Fair Value Measurements Using Significant | |||||||||||||||||||||||
Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Real Estate | Private Equity | Insurance | Total | ||||||||||||||||||||
Beginning balance, December 31, 2011 | $ | 7.1 | $ | 0.8 | $ | 0.7 | $ | 8.6 | |||||||||||||||
Actual return (loss) on plan assets: | |||||||||||||||||||||||
Assets held at the reporting date | 1.6 | 0.1 | — | 1.7 | |||||||||||||||||||
Assets sold during the period | (0.2 | ) | 0.3 | — | 0.1 | ||||||||||||||||||
Purchases, sales and settlements, net | (0.7 | ) | (0.4 | ) | (0.7 | ) | (1.8 | ) | |||||||||||||||
Beginning balance, December 31, 2012 | 7.8 | 0.8 | — | 8.6 | |||||||||||||||||||
Actual return (loss) on plan assets: | |||||||||||||||||||||||
Assets held at the reporting date | 0.9 | (0.2 | ) | — | 0.7 | ||||||||||||||||||
Assets sold during the period | 0.3 | 0.1 | — | 0.4 | |||||||||||||||||||
Purchases, sales and settlements, net | (0.4 | ) | (0.4 | ) | — | (0.8 | ) | ||||||||||||||||
Ending balance, December 31, 2013 | $ | 8.6 | $ | 0.3 | $ | — | $ | 8.9 | |||||||||||||||
Contributions to each of the qualified single-employer defined benefit pension plans are determined annually by the Company’s pension administrative committee, based upon the actuarially determined minimum required contribution under the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, the Pension Protection Act of 2006, and the maximum deductible contribution allowed for tax purposes. In 2013, 2012, and 2011, the Company contributed $3.5 million, $13.3 million, and $4.4 million, respectively. The Company’s funding policy is to contribute cash to its pension plans so that it meets at least the minimum contribution requirements. | |||||||||||||||||||||||
The benefit formulas for employees who are members of collective bargaining units are determined according to the collective bargaining agreements, either using final average pay as the base or a flat dollar amount per year of service. | |||||||||||||||||||||||
Effective December 31, 2011, the Company froze benefit accruals under the final average pay formula for salaried, non-bargaining unit employees hired before January 1, 2008 and transitioned them to the same cash balance formula for employees hired on or after January 1, 2008. Retirement benefits under the cash balance formula are based on a fixed percentage of employee eligible compensation, plus interest. The plan interest credit rate will vary from year to year based on the ten-year U.S. Treasury rate. | |||||||||||||||||||||||
Benefit Plan Assets and Obligations: The measurement date for the Company’s benefit plan disclosures is December 31 of each year. | |||||||||||||||||||||||
The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2013 and 2012 are shown below (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement | ||||||||||||||||||||||
Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 210.1 | $ | 192.6 | $ | 49.2 | $ | 48.5 | |||||||||||||||
Service cost | 2.9 | 2.7 | 1.1 | 1 | |||||||||||||||||||
Interest cost | 8.6 | 9 | 2.1 | 2.3 | |||||||||||||||||||
Plan participants’ contributions | — | — | 0.9 | 1.3 | |||||||||||||||||||
Actuarial (gain) loss | (13.3 | ) | 14.9 | 2 | (0.6 | ) | |||||||||||||||||
Benefits paid | (9.8 | ) | (9.1 | ) | (3.2 | ) | (3.3 | ) | |||||||||||||||
Expenses paid | (1.0 | ) | — | — | — | ||||||||||||||||||
Benefit obligation at end of year | $ | 197.5 | $ | 210.1 | $ | 52.1 | $ | 49.2 | |||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 149.2 | $ | 126 | $ | — | $ | — | |||||||||||||||
Actual return on plan assets | 30.8 | 19 | — | — | |||||||||||||||||||
Plan participants’ contributions | — | — | 0.9 | 1.3 | |||||||||||||||||||
Employer contributions | 3.5 | 13.3 | 2.3 | 2 | |||||||||||||||||||
Benefits paid | (9.8 | ) | (9.1 | ) | (3.2 | ) | (3.3 | ) | |||||||||||||||
Expenses paid | (0.9 | ) | — | — | — | ||||||||||||||||||
Fair value of plan assets at end of year | 172.8 | 149.2 | (0.0 | ) | — | ||||||||||||||||||
Funded Status and Recognized Liability | $ | (24.7 | ) | $ | (60.9 | ) | $ | (52.1 | ) | $ | (49.2 | ) | |||||||||||
Amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss at December 31, 2013 and 2012 were as follows (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement | ||||||||||||||||||||||
Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Current liabilities | $ | — | $ | — | $ | (2.4 | ) | $ | (2.1 | ) | |||||||||||||
Non-current liabilities | (24.7 | ) | (60.9 | ) | (49.7 | ) | (47.1 | ) | |||||||||||||||
Total | $ | (24.7 | ) | $ | (60.9 | ) | $ | (52.1 | ) | $ | (49.2 | ) | |||||||||||
Net loss (net of taxes) | $ | 32 | $ | 55.8 | $ | 1.7 | $ | 0.7 | |||||||||||||||
Prior service cost (net of taxes) | (12.0 | ) | (13.4 | ) | — | 0.1 | |||||||||||||||||
Total | $ | 20 | $ | 42.4 | $ | 1.7 | $ | 0.8 | |||||||||||||||
The information for qualified pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2013 and 2012 is shown below (in millions): | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Projected benefit obligation | $ | 197.5 | $ | 210.1 | |||||||||||||||||||
Accumulated benefit obligation | $ | 197.2 | $ | 209.6 | |||||||||||||||||||
Fair value of plan assets | $ | 172.8 | $ | 149.2 | |||||||||||||||||||
The estimated net loss and prior service credit for the qualified pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 is $0.7 million. The estimated net loss and prior service cost for the other post-retirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 is $0.6 million. | |||||||||||||||||||||||
Unrecognized gains and losses of the post-retirement benefit plans are amortized over five years. Although current health care costs are expected to increase, the Company attempts to mitigate these increases by maintaining caps on certain of its benefit plans, using lower cost health care plan options where possible, requiring that certain groups of employees pay a portion of their benefit costs, self-insuring for certain insurance plans, encouraging wellness programs for employees, and implementing measures to mitigate future benefit cost increases. | |||||||||||||||||||||||
Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the qualified pension plans and the post-retirement health care and life insurance benefit plans during 2013, 2012, and 2011, are shown below (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||
Service cost | $ | 2.9 | $ | 2.7 | $ | 5.4 | $ | 1.1 | $ | 1 | $ | 0.9 | |||||||||||
Interest cost | 8.6 | 9 | 10.7 | 2.1 | 2.3 | 3 | |||||||||||||||||
Expected return on plan assets | (11.9 | ) | (10.7 | ) | (11.1 | ) | — | — | — | ||||||||||||||
Amortization of net loss (gain) | 6.8 | 7 | 4 | 0.3 | 0.6 | 1.9 | |||||||||||||||||
Amortization of prior service cost | (2.3 | ) | (2.3 | ) | 0.1 | — | 0.1 | 0.2 | |||||||||||||||
Net periodic benefit cost | $ | 4.1 | $ | 5.7 | $ | 9.1 | $ | 3.5 | $ | 4 | $ | 6 | |||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax) | |||||||||||||||||||||||
Net loss (gain) | $ | (19.6 | ) | $ | 4 | $ | 23.8 | $ | 1.2 | $ | (0.4 | ) | $ | (2.5 | ) | ||||||||
Amortization of unrecognized (loss) gain | (4.2 | ) | (4.2 | ) | (2.4 | ) | (0.2 | ) | (0.3 | ) | (1.0 | ) | |||||||||||
Prior service credit | — | — | (15.1 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost | 1.4 | 1.4 | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||
Total recognized in other comprehensive income | $ | (22.4 | ) | $ | 1.2 | $ | 6.2 | $ | 1 | $ | (0.7 | ) | $ | (3.6 | ) | ||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (18.3 | ) | $ | 6.9 | $ | 15.3 | $ | 4.5 | $ | 3.3 | $ | 2.4 | ||||||||||
The weighted average assumptions used to determine benefit information during 2013, 2012, and 2011, were as follows: | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Weighted Average Assumptions: | |||||||||||||||||||||||
Discount rate | 4.9 | % | 4.2 | % | 4.8 | % | 5 | % | 4.3 | % | 4.9 | % | |||||||||||
Expected return on plan assets | 8.3 | % | 8.3 | % | 8.3 | % | |||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | 3 | % | 3 | % | 4 | % | |||||||||||
Initial health care cost trend rate | 7.3 | % | 8 | % | 9 | % | |||||||||||||||||
Ultimate rate | 4.5 | % | 4.5 | % | 5 | % | |||||||||||||||||
Year ultimate rate is reached | 2027 | 2020 | 2016 | ||||||||||||||||||||
If the assumed health care cost trend rate were increased or decreased by one percentage point, the accumulated post-retirement benefit obligation, as of December 31, 2013, 2012, and 2011 and the net periodic post-retirement benefit cost for 2013, 2012 and 2011, would have increased or decreased as follows (in millions): | |||||||||||||||||||||||
Other Post-retirement Benefits | |||||||||||||||||||||||
One Percentage Point | |||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Effect on total of service and interest cost components | $ | 0.6 | $ | 0.6 | $ | 0.6 | $ | (0.5 | ) | $ | (0.4 | ) | $ | (0.5 | ) | ||||||||
Effect on post-retirement benefit obligation | $ | 7.1 | $ | 6.5 | $ | 6.6 | $ | (5.7 | ) | $ | (5.2 | ) | $ | (5.3 | ) | ||||||||
Current liabilities of $5.0 million, related to non-qualified pension benefits and postretirement benefits, are classified as accrued and other liabilities in the consolidated balance sheet as of December 31, 2013. | |||||||||||||||||||||||
Non-qualified Pension Plans: The Company has non-qualified supplemental pension plans covering certain employees and retirees, which provide for incremental pension payments from the Company’s general funds so that total pension benefits would be substantially equal to amounts that would have been payable from the Company’s qualified pension plans if it were not for limitations imposed by income tax law. A few employees and retirees receive additional supplemental pension benefits. The Company also has a frozen non-qualified pension plan that covers two outside directors and pays retirement benefits in a lump sum from the Company’s general funds. The obligations relating to these plans totaled $7.3 million and $7.9 million at December 31, 2013 and 2012, respectively. The expense associated with the non-qualified plans was $0.6 million, $0.3 million and $0.8 million in 2013, 2012 and 2011, respectively. A 3.2 percent discount rate was used to determine the 2013 obligation. | |||||||||||||||||||||||
As of December 31, 2013, the amount recognized in accumulated other comprehensive income for net loss, net of tax, was $1.3 million, and the amount recognized as prior service credit, net of tax, was $0.8 million. There is no net loss and prior service credit to be recognized into net periodic pension cost in 2014. | |||||||||||||||||||||||
Estimated Benefit Payments: The estimated future benefit payments for the next ten years are as follows (in millions): | |||||||||||||||||||||||
Qualified | |||||||||||||||||||||||
Pension | Non-qualified | Post-retirement | |||||||||||||||||||||
Year | Benefits | Pension Benefits | Benefits (1) | ||||||||||||||||||||
2014 | $ | 11 | $ | 2.6 | $ | 2.4 | |||||||||||||||||
2015 | 11.5 | 1.5 | 2.6 | ||||||||||||||||||||
2016 | 11.9 | 0.8 | 2.6 | ||||||||||||||||||||
2017 | 12.3 | 0.2 | 2.7 | ||||||||||||||||||||
2018 | 12.6 | 0.9 | 2.7 | ||||||||||||||||||||
2019-2023 | $ | 66.8 | $ | 2.5 | $ | 15 | |||||||||||||||||
(1) Net of plan participants’ contributions and Medicare D subsidies. | |||||||||||||||||||||||
Multiemployer Plans: The Company contributes to ten multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its bargaining unit employees. Contributions are generally based on union labor paid or cargo volume. | |||||||||||||||||||||||
The risks of participating in multiemployer plans are different from single-employer plans because assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. Additionally, if one employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | |||||||||||||||||||||||
The multiemployer pension plans are subject to the plan termination insurance provisions of ERISA and are paying premiums to the Pension Benefit Guaranty Corporation (“PBGC”). The statutes provide that an employer who withdraws from, or significantly reduces its contribution obligation to, a multiemployer plan generally will be required to continue funding its proportional share of the plan’s unfunded vested benefits. As of December 31, 2013, the Company’s benefit plan withdrawal obligations were $110.6 million. Management has no present intention of withdrawing from and does not anticipate termination of any of these plans. | |||||||||||||||||||||||
Information regarding the Company’s participation in multiemployer pension plans is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2013 and 2012 is for the plan’s year-end at December 31, 2013 and 2012, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The funding improvement plan (“FIP”) or rehabilitation plan (“RP”) column indicates the status which is either pending or has been implemented. The last column lists the expiration dates of the collective-bargaining agreements to which the plans are subject. | |||||||||||||||||||||||
EIN/Pension | Pension Protection Act Zone | FIP/RP | Contributions of Matson | Surcharge | Expiration | ||||||||||||||||||
Status as of December 31, | Status | ($ in millions) | Date of | ||||||||||||||||||||
Pending/ | Collective | ||||||||||||||||||||||
Bargaining | |||||||||||||||||||||||
Pension Fund | Plan Number | 2013 | 2012 | Implemented | 2013 | 2012 | 2011 | Imposed | Agreement | ||||||||||||||
Hawaii Stevedoring Multiemployer Retirement Plan | 99-0314293/001 | Yellow | Yellow | Implemented | $ | 2.7 | $ | 2.4 | $ | 2.2 | No | 6/30/14 | |||||||||||
Master, Mates and Pilots Pension Plan | 13-6372630/001 | Green | Green | None | 2.1 | 3.4 | 3 | No | 6/15/2023, 8/15/2023 | ||||||||||||||
Hawaii Terminals Multiemployer Pension Plan | 20-0389370/001 | Yellow | Yellow | Implemented | 5.3 | 5.1 | 5.2 | No | 6/30/14 | ||||||||||||||
MEBA Pension Trust - Defined Benefit Plan | 51-6029896/001 | Green | Green | None | 2.1 | 2.1 | — | No | 8/15/18 | ||||||||||||||
Masters, Mates and Pilots Adjustable Pension Plan | 46-2237700/001 | -1 | -1 | None | 0.8 | — | — | No | 6/15/2023, 8/15/2023 | ||||||||||||||
OCU Trust Pension | 26-1574440/001 | Green | Green | None | 0.1 | 0.1 | 0.1 | No | 6/30/16 | ||||||||||||||
Total | $ | 13.1 | $ | 13.1 | $ | 10.5 | |||||||||||||||||
(1) Information is not available as plans were new in 2013 | |||||||||||||||||||||||
The Company is party to two collective-bargaining agreements based upon vessels that require contributions to this plan: Contract A, covering thirteen vessels, expires on June 15, 2023, and Contract B, covering one managed vessel, expires on August 15, 2023. | |||||||||||||||||||||||
In 2013, the Company agreed to contribute at least 11.7% of total wages paid to employees in covered MEBA employment to the MEBA Pension Trust by a reallocation of the total labor cost under the collective bargaining agreement. The pension contribution rate was determined by the plan’s actuary to be necessary to maintain full funding of the pension plan and is fully offset by a reallocation of wages and other benefits. | |||||||||||||||||||||||
The Company was listed in its plans’ Forms 5500 as providing more than five percent of the total contributions for the following plans and plan years: | |||||||||||||||||||||||
Pension Plan | Year Contributions to Plan Exceeded More than 5 | ||||||||||||||||||||||
Percent of Total Contributions (as of December 31 of | |||||||||||||||||||||||
the Plan’s Year-End) | |||||||||||||||||||||||
Hawaii Stevedoring Multiemployer Retirement Plan | 2013, 2012 and 2011 | ||||||||||||||||||||||
Hawaii Terminals Multiemployer Pension Plan | 2013, 2012 and 2011 | ||||||||||||||||||||||
Masters, Mates and Pilots Pension Plan (1) | 2012 and 2011 | ||||||||||||||||||||||
MEBA Pension Trust - Defined Benefit Plan (1) | 2012 | ||||||||||||||||||||||
(1) As of the date the consolidated financial statements were issued, Form 5500s were not available for the plan years ending in 2013 for this and other plans. | |||||||||||||||||||||||
The Company contributes to seven multiemployer plans that provide post-retirement benefits other than pensions under the terms of collective-bargaining agreements with American Radio Association AFL-CIO; ILWU Local 142; ILWU Local 63, Office Clerical Unit Marine Clerk Association; International Organization of Masters, Mates and Pilots, AFL-CIO; National Marine Engineers’ Beneficial Association, AFL-CIO District No. 1 — PCD, MEBA; Marine Firemen’s Union; and Sailors’ Union of the Pacific. Benefits provided to active and retired employees and their eligible dependents under these plans include medical, dental, vision, hearing, prescription drug, death, accidental death and dismemberment, disability, legal aid, training in maritime electronics, scholarship program, wage insurance and license insurance, although not all of these benefits are provided by each plan. These plans are not subject to the PBGC plan termination and withdrawal liability provisions of ERISA applicable to multiemployer pension plans. Contributions made to these plans by the Company were $10.5 million in 2013, $10.8 million in 2012, and $10.7 million in 2011. | |||||||||||||||||||||||
Defined Contribution Plans: The Company sponsors defined contribution plans that qualify under Sections 401(a) and 401(k) of the Internal Revenue Code. These plans provide matching contributions of up to 4 percent of eligible employee compensation. The Company’s matching contributions expensed under these plans totaled $1.6 million, $1.6 million and $1.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. The Company also provides profit sharing contributions under the qualified defined contribution plans; if a minimum threshold of the Company’s performance is achieved, the Company provides contributions to salaried, non-bargaining unit employees of up to 3 percent based on a formula that may change on an annual basis. For certain eligible employees, supplemental profit sharing contributions are credited under a non-qualified plan to be paid after separation from service from the Company’s general funds so that total profit sharing contributions would be substantially equal to amounts that would have been contributed to the Company’s qualified defined contribution plans if it were not for limitations imposed by income tax law. Profit sharing contributions to certain bargaining unit employees are determined under collective bargaining agreements. Profit sharing expenses recorded in 2013 and 2012 under this plan totaled $1.2 million and $1.2 million, respectively. No expense was recorded in 2011 when the plan was suspended. | |||||||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
11. INCOME TAXES | |||||||||||
The income tax expense on income from continuing operations for each of the three years in the period ended December 31, 2013 consisted of the following (in millions): | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (24.3 | ) | $ | 38.9 | $ | 26.5 | ||||
State | (1.0 | ) | 3.2 | 1.8 | |||||||
Total | (25.3 | ) | 42.1 | 28.3 | |||||||
Deferred | 57.5 | (9.1 | ) | (3.2 | ) | ||||||
Provision for income taxes | $ | 32.2 | $ | 33 | $ | 25.1 | |||||
Income tax expense for 2013, 2012, and 2011 differs from amounts computed by applying the statutory federal rate to income from continuing operations before income taxes for the following reasons: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Computed federal income tax expense | 35 | % | 35 | % | 35 | % | |||||
Discontinued operations | 0 | % | (0.2 | )% | (0.1 | )% | |||||
State income tax | 2.9 | % | 0.6 | % | 2.1 | % | |||||
Deferred tax adjustment | 0 | % | (1.6 | )% | 0 | % | |||||
Separation costs | 0 | % | 2 | % | 0 | % | |||||
Unrecognized tax benefits | (2.1 | )% | 1.7 | % | 0 | % | |||||
Other — net | 1.7 | % | 1.3 | % | (1.6 | )% | |||||
Provision for income taxes | 37.5 | % | 38.8 | % | 35.4 | % | |||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 of each year are as follows (in millions): | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Benefit plans | $ | 41.8 | $ | 54 | |||||||
Insurance reserves | 10 | 9.7 | |||||||||
Allowance for doubtful accounts | 1.3 | 1.7 | |||||||||
Reserves | 6 | 1.7 | |||||||||
Foreign losses and unremitted earnings | 3.1 | — | |||||||||
Alternative minimum tax credits | 1.4 | — | |||||||||
Other | (0.2 | ) | 0.3 | ||||||||
Total deferred tax assets | 63.4 | 67.4 | |||||||||
Deferred tax liabilities: | |||||||||||
Basis differences for property and equipment | 278 | 292.6 | |||||||||
Capital Construction Fund | 83.4 | 3.3 | |||||||||
Joint ventures and other investments | 4.6 | 3.8 | |||||||||
Deferred revenue | 11.4 | 10.9 | |||||||||
Amortization | 3 | 2.1 | |||||||||
Total deferred tax liabilities | 380.4 | 312.7 | |||||||||
Net deferred tax liability | $ | 317 | $ | 245.3 | |||||||
The Company’s income taxes payable has been reduced by the tax benefits from share-based compensation. The Company receives an income tax benefit for exercised stock options calculated as the difference between the fair market value of the stock issued at the time of exercise and the option exercise price, tax effected. The Company also receives an income tax benefit for non-vested stock when it vests, measured as the fair market value of the stock at the time of vesting, tax effected. The net tax benefits from share-based transactions were $0.6 million and $1.3 million for 2013 and 2012, respectively, and the portion of the tax benefit related to the excess of the amount reported as the tax deduction over expense was reflected as an increase to additional paid in capital in the consolidated statements of shareholders’ equity. The Company’s deferred tax liabilities incurred during 2013 are primarily due to increased contributions to the CCF (see Note 7). | |||||||||||
Separation: Prior to the Separation, the Company joined in filing consolidated federal and consolidated or combined state income tax returns with the Former Parent Company. However, the Company’s tax provision had been computed as if it had filed separate, stand-alone federal and state income tax returns. The Company completed and filed the 2012 federal and state income tax return, which included A&B companies for the short period in 2012 before the Separation. The Company recorded a receivable from A&B and corresponding adjustment to current taxes payable to reflect the Company’s allocated portion of the 2012 federal and state income tax liabilities. | |||||||||||
In connection with the Separation, the Company incurred certain financial advisory, legal, tax and other professional fees, a portion of which is not deductible under the tax regulations. Accordingly, the Company’s income taxes for the year ended December 31, 2012, were increased by $1.7 million, related to the non-deductibility of certain Separation costs. | |||||||||||
Also in connection with the Separation, the Company entered into a Tax Sharing Agreement with A&B that governs the respective rights, responsibilities and obligations of the companies after the Separation with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. A&B has liability to the Company with respect to the Company’s consolidated or combined U.S. federal, state, local and foreign income tax liability for the taxes that are attributed to A&B’s businesses and relative contribution to state and other taxable income of the Company consolidated or combined group relating to the taxable periods in which A&B was a part of that group. The Tax Sharing Agreement specifies the portion, if any, of this tax liability for which the Company and A&B will bear responsibility. In addition, the Company and A&B agreed to indemnify each other against any amounts for which they are not responsible. Under the Tax Sharing Agreement, the Company also generally will be responsible for any taxes that arise from the failure of the Separation, together with certain related transactions, to qualify as tax-free for U.S. federal income tax purposes within the meaning of Sections 355 and 368 of the Internal Revenue Code of 1986 (the “Code”), as amended, to the extent such failure to qualify is attributable to actions, events or transactions relating to the Company’s stock, assets or business, or a breach of the relevant representations or covenants made by the Company in the Tax Sharing Agreement, the materials submitted to the Internal Revenue Service in connection with the ruling request relating to the Separation or the representation letter provided to counsel in connection with such counsel’s issuance of a tax opinion relating to certain aspects of the Separation. | |||||||||||
Unrecognized Tax Benefits: A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions): | |||||||||||
Balance at December 31, 2010 | $ | 3.5 | |||||||||
Additions for tax positions of prior years | 0.3 | ||||||||||
Additions for tax positions of current year | (0.5 | ) | |||||||||
Reductions for lapse of statute of limitations | (0.7 | ) | |||||||||
Balance at December 31, 2011 | 2.6 | ||||||||||
Additions for tax positions of prior years | 4 | ||||||||||
Reductions for tax positions of current year | 3.7 | ||||||||||
Reductions for tax positions of prior years | (1.0 | ) | |||||||||
Reductions for lapse of statute of limitations | (1.0 | ) | |||||||||
Balance at December 31, 2012 | 8.3 | ||||||||||
Additions for tax positions of prior years | 2 | ||||||||||
Reductions for lapse of statute of limitations | (3.1 | ) | |||||||||
Balance at December 31, 2013 | $ | 7.2 | |||||||||
Of the total unrecognized benefits, $7.2 million, $8.3 million and $2.6 million, at December 31, 2013, 2012 and 2011, respectively, represent the amount that, if recognized, would favorably affect the Company’s effective rate in future periods. The Company does not expect a material change in gross unrecognized benefits in the next twelve months. | |||||||||||
The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. To the extent interest and penalties are not ultimately assessed with respect to the settlement of uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. Interest accrued related to the balance of unrecognized tax benefits totaled $0.3 million, $0.4 million and $0.2 million as of December 31, 2013, 2012 and 2011, respectively. | |||||||||||
The Company is no longer subject to U.S. federal income tax audits for years before 2010. The Company is routinely involved in state and local income tax audits. Substantially all material income tax matters have been concluded for years through 2008. | |||||||||||
SHAREBASED_AWARDS
SHARE-BASED AWARDS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SHARE-BASED AWARDS | ' | |||||||||||||||||
SHARE-BASED AWARDS | ' | |||||||||||||||||
12. SHARE-BASED AWARDS | ||||||||||||||||||
2007 Incentive Compensation Plan: The 2007 Incentive Compensation Plan (the “2007 Plan”) serves as a successor to the 1998 Stock Option/Stock Incentive Plan, the 1998 Non-Employee Director Stock Option Plan, the Restricted Stock Bonus Plan and the Non-Employee Director Stock Retainer Plan (the “Predecessor Plans”). Under the 2007 Plan, approximately 2.2 million shares of common stock were initially reserved for issuance. On January 28, 2010, the Board of Directors adopted an amended and restated 2007 Plan, which, among other things, authorized the issuance of an additional approximately 2.2 million shares of stock under the 2007 Plan. Shareholders approved the amended 2007 Plan at the 2010 Annual Meeting of Shareholders. | ||||||||||||||||||
In connection with the Separation, on June 29, 2012, each stock option held by a Matson employee was converted into an adjusted Matson stock option. The exercise prices of the adjusted Matson stock options and the number of shares subject to each such stock option reflects a mechanism that was intended to preserve the intrinsic value of the original stock option. The modification of the awards did not result in any additional stock compensation expense to be recorded upon Separation. The resulting Matson stock options are subject to substantially the same terms, vesting conditions and other restrictions, if any, that were applicable to the Former Parent Company stock options immediately prior to the Separation. Also, in connection with the Separation, any unvested restricted stock units (“RSUs”) granted to Matson employees were converted into Matson RSUs. The RSU grants were converted in a manner that was intended to preserve the fair market value of the awards. The resulting Matson RSU grants are subject to substantially the same terms, vesting conditions and other restrictions, if any, that were applicable to the grants immediately prior to the Separation. After the Separation was completed, approximately 8.7 million shares of the Company’s common stock were reserved for issuance under the plans, with approximately 6.4 million shares remaining as available for future issuance under all equity compensation plans (excluding 1.2 million shares to be issued upon exercise of outstanding options, warrants and rights as of December 31, 2013. | ||||||||||||||||||
The 2007 Plan consists of four separate incentive compensation programs: (i) the discretionary grant program, (ii) the stock issuance program, (iii) the incentive bonus program and (iv) the automatic grant program for the non-employee members of the Company’s Board of Directors. Share-based compensation is generally awarded under three of the four programs, as more fully described below. | ||||||||||||||||||
Discretionary Grant Program — Under the Discretionary Grant Program, stock options may be granted with an exercise price no less than 100 percent of the fair market value (defined as the closing market price) of the Company’s common stock on the date of the grant. Options generally become exercisable ratably over three years and have a maximum contractual term of 10 years. | ||||||||||||||||||
Stock Issuance Program — Under the Stock Issuance Program, share s of common stock or restricted stock units may be granted. Time-based equity awards vest ratably over three years. Provided certain three-year performance targets are achieved, performance-based equity awards vest on the three-year anniversary date of the grant. During the first quarter of 2013 the Company granted new performance-based awards tied to the Company’s average annual return on invested capital (which the Company refers to as “average ROIC”), as measured over the three-year period beginning January 1, 2013 and ending December 31, 2015. Performance Share awards for the senior leadership team will also be modified based on total shareholder return performance (which the Company refers to as the “TSR modifier”) measured over the same three-year period. The relative TSR is based on the Company’s total shareholder return over the three-year measurement period relative to the shareholder return over the same period for the companies comprising the S&P Transportation Select Industry Index and S&P MidCap 400 Index (with each index weighted 50%). The service-vesting provisions of each performance based award require the award recipient to remain in continuous service with the Company until the end of the three-year measurement period, subject to certain exceptions due to retirement, disability, or death, in order to vest in any shares that become issuable on the basis of the performance-vesting criteria. | ||||||||||||||||||
Automatic Grant Program — The Automatic Grant Program supersedes and replaces the Company’s 1998 Non-Employee Director Stock Option Plan and the Non-Employee Director Stock Retainer Plan. At each annual shareholder meeting, non-employee directors will receive an award of restricted stock units that entitle the holder to an equivalent number of shares of common stock upon vesting. Awards of restricted stock units granted under the program generally vest ratably over three years. | ||||||||||||||||||
The shares of common stock authorized to be issued under the 2007 Plan may be drawn from shares of the Company’s authorized but unissued common stock or from shares of its common stock that the Company acquires, including shares purchased on the open market or in private transactions. | ||||||||||||||||||
Predecessor Plans: Adopted in 1998, the Company’s 1998 Stock Option/Stock Incentive Plan (“1998 Plan”) provided for the issuance of non-qualified stock options and common stock to employees of the Company. Under the 1998 Plan, option prices could not be less than the fair market value of the Company’s common stock on the dates of grant and the options became exercisable over periods determined, at the dates of grant, by the Compensation Committee of the Former Parent Company Board of Directors that administer the plan. Generally, options vested ratably over three years and expired ten years from the date of grant. Payments for options exercised may be made in cash or in shares of the Company’s stock. If an option to purchase shares is exercised within five years of the date of grant and if payment is made in shares of the Company’s stock, the option holder may receive, under a reload feature, a new stock option grant for such number of shares as is equal to the number surrendered, with an option price not less than the greater of the fair market value of the Company’s stock on the date of exercise or one and one-half times the original option price. The 1998 Plan also permitted the issuance of shares of the Company’s common stock. Generally, grants of time-based, non-vested stock vested ratably over three years and performance-based, non-vested stock vested in one year, provided that certain performance targets were achieved. The 1998 Plan was superseded by the 2007 Plan, and no further grants have been or will be made under the 1998 Plan. | ||||||||||||||||||
Director Stock Option Plans: The 1998 Non-Employee Director Stock Option Plan (“1998 Director Plan”) was superseded by the 2007 Plan. Under the 1998 Director Plan, each non-employee Director of the Company, elected at an Annual Meeting of Shareholders, was automatically granted, on the date of each such Annual Meeting, an option to purchase 8,000 shares of the Company’s common stock at the fair market value of the shares on the date of grant. Each option to purchase shares generally became exercisable ratably over three years following the date granted. | ||||||||||||||||||
The Company estimates the grant-date fair value of its stock options using a Black-Scholes-Merton option-pricing model. The weighted average grant-date fair values, prior to the Separation, of the options granted during 2012, and 2011, were $10.74 and $8.92, respectively, per option. No options were granted after the Separation; therefore all weighted average assumptions provided in the table below are prior to the Separation: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2012 | 2011 | |||||||||||||||||
Expected volatility (1) | 31.8 | % | 29.2 | % | ||||||||||||||
Expected term (in years) (2) | 6.1 | 6 | ||||||||||||||||
Risk-free interest rate (3) | 1.2 | % | 2.3 | % | ||||||||||||||
Dividend yield (4) | 2.7 | % | 3.1 | % | ||||||||||||||
(1) Expected volatility was primarily determined using the historical volatility of the Company’s common stock over the expected term, but the Company could also consider future events and other factors that it reasonably concluded marketplace participants might consider. | ||||||||||||||||||
(2) The expected term of the awards represents expectations of future employee exercise and post-vesting termination behavior and was primarily based on historical experience. The Company analyzed various groups of employees and considers expected or unusual trends that would likely affect this assumption. | ||||||||||||||||||
(3) The risk free interest rate was based on U.S. Government treasury yields for periods equal to the expected term of the option on the grant date. | ||||||||||||||||||
(4) The expected dividend yield was based on the Company’s current and historical dividend policy. | ||||||||||||||||||
Application of alternative assumptions could produce significantly different estimates of the fair value of share-based compensation and, consequently, significantly affect the related amounts recognized in the consolidated statements of income and comprehensive income. | ||||||||||||||||||
Activity in the Company’s stock option plans for the year ended December 31, 2013, was as follows (in thousands, except weighted average exercise price and weighted average contractual life): | ||||||||||||||||||
Weighted | Weighted | |||||||||||||||||
1998 | Average | Average | Aggregate | |||||||||||||||
2007 | 1998 | Director | Total | Exercise | Contractual | Intrinsic | ||||||||||||
Plan | Plan | Plan | Shares | Price | Life | Value | ||||||||||||
Outstanding, January 1, 2013 | 954 | 253 | 146 | 1,353 | $ | 21.15 | ||||||||||||
Granted | — | — | — | — | ||||||||||||||
Exercised | (106 | ) | (43 | ) | (6 | ) | (155 | ) | $ | 20.48 | ||||||||
Forfeited and expired | (4 | ) | (2 | ) | — | (6 | ) | $ | 21.05 | |||||||||
Outstanding, December 31, 2013 | 844 | 208 | 140 | 1,192 | $ | 21.24 | 4.7 | $ | 6,033 | |||||||||
Exercisable, December 31, 2013 | 662 | 208 | 140 | 1,010 | $ | 21.08 | 4.2 | $ | 5,273 | |||||||||
The following table summarizes non-vested restricted stock unit activity through December 31, 2013, (in thousands, except weighted average grant-date fair value amounts): | ||||||||||||||||||
2007 Plan Restricted | Weighted Average Grant- | |||||||||||||||||
Stock Units | Date Fair Value | |||||||||||||||||
Outstanding, January 1, 2013 | 356 | $ | 17.97 | |||||||||||||||
Granted | 370 | 26.66 | ||||||||||||||||
Exercised | (166 | ) | 21.09 | |||||||||||||||
Canceled | (5 | ) | 27.24 | |||||||||||||||
Outstanding, December 31, 2013 | 555 | $ | 25.61 | |||||||||||||||
A summary of compensation cost related to share-based payments for each of the three years in the period ended December 31, 2013, exclusive of A&B related compensation prior to the Separation, is as follows (in millions): | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Share-based expense (net of estimated forfeitures): | ||||||||||||||||||
Stock options | $ | 0.4 | $ | 0.9 | $ | 0.8 | ||||||||||||
Non-vested stock and restricted stock units | 5.5 | 3.1 | 1.9 | |||||||||||||||
Total share-based expense | 5.9 | 4 | 2.7 | |||||||||||||||
Total recognized tax benefit | (2.2 | ) | (1.6 | ) | (0.9 | ) | ||||||||||||
Share-based expense (net of tax) | $ | 3.7 | $ | 2.4 | $ | 1.8 | ||||||||||||
Cash received by Matson upon option exercise | $ | 1.7 | $ | 3.5 | $ | 2 | ||||||||||||
Intrinsic value of options exercised | $ | 1.1 | $ | 5.2 | $ | 1.1 | ||||||||||||
Tax benefit realized upon option exercise | $ | 1.7 | $ | 1.5 | $ | 0.4 | ||||||||||||
Fair value of stock vested | $ | 4.4 | $ | 3.8 | $ | 2.5 | ||||||||||||
As of December 31, 2013, there was $0.1 million of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted average period of approximately 0.8 years. As of December 31, 2013, unrecognized compensation cost related to non-vested stock and restricted stock units was $9.0 million. The unrecognized cost for non-vested stock and restricted stock units is expected to be recognized over a weighted average period of 1.9 years. | ||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
13. COMMITMENTS AND CONTINGENCIES | |||||
Commitments and Contingencies: Commitments and financial arrangements, excluding lease commitments that are described in Note 9, included the following as of December 31, 2013 (in millions): | |||||
Standby letters of credit (1) | $ | 5.8 | |||
Bonds (2) | $ | 20.6 | |||
Benefit plan withdrawal obligations (3) | $ | 110.6 | |||
(1) Includes $4.6 million in letters of credit, which are required for the Company’s self-insured workers’ compensation programs and its other insurance programs, and $1.2 million in letters of credit used to support various credit enhancement needs. | |||||
(2) Consists of $19.2 million in U.S. Custom bonds, and $1.4 million related to transportation and other matters. | |||||
(3) Represents the withdrawal liabilities as of the most recent valuation dates for multiemployer pension plans, in which the Company is a participant. Management has no present intention of withdrawing from, and does not anticipate the termination of, any of the aforementioned plans. | |||||
These amounts are not recorded on the Company’s consolidated balance sheet and it is not expected that the Company or its subsidiaries will be called upon to advance funds under these commitments. | |||||
Employee Matters: As of December 31, 2013, approximately 26% of the Company’s employees are covered by collective bargaining agreements with unions, of which, 24% of the Company’s employees are covered by agreements that expire in 2014. The Company expects that new agreements will be reached during 2014 without significant disruption to the Company’s operations. | |||||
Environmental Matters: Molasses was released into Honolulu Harbor from a pipeline system operated by a subsidiary of the Company in early September 2013. The Company is cooperating with federal and state agencies involved in responding to and investigating the release. On September 20, 2013, the Hawaii Department of Health (“DOH”) and other responding governmental agencies announced that they had officially transitioned their role from a response phase to a recovery and restoration phase. The DOH also reported on September 20, 2013 that dissolved oxygen and pH levels in the harbor and nearby Keehi Lagoon had returned to normal target levels and that there was no longer discoloration of the water in those same areas attributable to the molasses release. Keehi Lagoon was reopened to the public on September 21, 2013. | |||||
On October 10, 2013, the Company was served with a federal grand jury subpoena seeking documents in connection with a criminal investigation into the release of molasses into Honolulu Harbor. In addition, the Company has received written requests for information regarding the release from the following governmental agencies: (i) the DOH; (ii) the State of Hawaii Office of Hawaiian Affairs; and (iii) the United States Environmental Protection Agency (Region IX). | |||||
As of December 31, 2013, the Company has expensed $3.0 million in response costs, legal expenses, and third-party claims related to the release of molasses. | |||||
As of February 28, 2014, the Company has resolved all third-party claims that have been received. However, government agencies have not: (i) initiated any legal proceedings; (ii) presented the Company with an accounting of their response costs; (iii) provided an assessment of natural resource damages; or (iv) imposed any penalties in connection with the release of molasses. Therefore, the Company is not able to estimate the future costs, penalties, damages or expenses that it may incur related to the incident. As a result, at this time no assurance can be given that the impact of the incident on the Company’s financial position, results of operations, or cash flows will not be material. | |||||
In addition to the molasses release discussed above, the Company’s shipping business has certain other risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations. | |||||
Other Legal Matters: On June 10, 2013, the Company was served with a complaint filed in the United States District Court for the Central District of California by an individual plaintiff as relator on behalf of the United States asserting claims against the Company and certain other ocean carriers and freight forwarders for violations of the False Claims Act. The case is entitled United States of America, ex rel. Mario Rizzo v. Horizon Lines, LLC et al. The qui tam complaint alleges that Matson and the other defendants submitted or created records supporting false claims for payment of fuel surcharges assessed on the shipment of military household goods for the Department of Defense. The federal government has declined to intervene in this qui tam suit. The individual plaintiff in the suit seeks damages and penalties on behalf of the federal government, and may be entitled to a portion of any recovery or settlement resulting from the suit. The plaintiff filed a Second Amended Complaint on August 23, 2013. The Company filed a motion to dismiss the complaint on September 16, 2013. On October 31, 2013, the court denied the Company’s motion. Discovery has now commenced and a jury trial is scheduled to begin on October 7, 2014. On February 14, 2014, Matson and the plaintiff engaged in non-binding mediation. On February 23, 2014, Matson’s Board of Directors approved a settlement of $9.0 million in full settlement of all claims, and $0.95 million for plaintiff’s legal expenses. The settlement is contingent upon approval of the United States government, and the dismissal of the case with prejudice by the District Court. The Company has accrued for these settlement costs in accrued and other liabilities in the consolidated balance sheet at December 31, 2013. | |||||
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. | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
14. RELATED PARTY TRANSACTIONS | ||||||||
Effective upon the completion of the Separation, the Company ceased to be a related party of the Former Parent Company. Prior to the Separation, transactions with Former Parent Company were considered related party transactions, as discussed below. | ||||||||
Historically, the Company provided vessel management services to A&B for its bulk sugar vessel, the MV Moku Pahu, the income of which is included in ocean transportation. Additionally, the Company expensed operating costs related to a lease for industrial warehouse space in Savannah, Georgia, that was leased from A&B. The Company also recognized the cost for equipment and repair services to the vessel and other various services provided by A&B in operating costs. | ||||||||
There were no related party transactions entered into after the completion of the Separation on June 29, 2012. Prior to the Separation, the related party transactions were as follows (in millions): | ||||||||
Years Ended December 31, | ||||||||
2012 | 2011 | |||||||
Vessel management services income | $ | 2 | $ | 4 | ||||
Lease expense to A&B | (2.1 | ) | (4.4 | ) | ||||
Equipment and repair services expense and other | (1.4 | ) | (2.7 | ) | ||||
Related party expense, net | $ | (1.5 | ) | $ | (3.1 | ) | ||
Contributions to A&B totaled $155.7 million for the year ended December 31, 2012, which related to the Separation. Contributions to the Former Parent Company for the proceeds from the issuance of capital stock of $21.7 million for the year ended December 31, 2012 have been included in the Consolidated Financial Statements due to Matson being the successor company of the Former Parent Company for accounting purposes. No contributions were made during the year ended December 31, 2013. Contributions from the Former Parent Company of $25.0 million, for the year ended December 31, 2012, represent dividends paid by the Former Parent Company to its shareholders prior to the Separation offset by distributions to the Former Parent Company for stock based compensation and are reflected in the Consolidated Financial Statements due to Matson being the successor company of the Former Parent Company for accounting purposes. No distributions were made during the year ended December 31, 2013. | ||||||||
REPORTABLE_SEGMENTS
REPORTABLE SEGMENTS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
REPORTABLE SEGMENTS | ' | ||||||||||
REPORTABLE SEGMENTS | ' | ||||||||||
15. 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 segments, ocean transportation and logistics, which are further described in Note 1. Reportable segments are measured based on operating profit, exclusive of interest expense, general corporate expenses, and income taxes. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. | |||||||||||
Reportable segment information for 2013, 2012, and 2011 is summarized below (in millions): | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenue: | |||||||||||
Ocean transportation | $ | 1,229.40 | $ | 1,189.80 | $ | 1,076.20 | |||||
Logistics | 407.8 | 370.2 | 386.4 | ||||||||
Total revenue | $ | 1,637.20 | $ | 1,560.00 | $ | 1,462.60 | |||||
Operating Income: | |||||||||||
Ocean transportation(1) | $ | 94.3 | $ | 96.6 | $ | 73.7 | |||||
Logistics | 6 | 0.1 | 4.9 | ||||||||
Total operating income | 100.3 | 96.7 | 78.6 | ||||||||
Interest expense, net | (14.4 | ) | (11.7 | ) | (7.7 | ) | |||||
Income from continuing operations before income taxes | 85.9 | 85 | 70.9 | ||||||||
Income taxes | (32.2 | ) | (33.0 | ) | (25.1 | ) | |||||
Income from continuing operations | 53.7 | 52 | 45.8 | ||||||||
Discontinued operations | — | (6.1 | ) | (11.6 | ) | ||||||
Net income | $ | 53.7 | $ | 45.9 | $ | 34.2 | |||||
(1) The ocean transportation segment includes $(2.0) million, $3.2 million, and $8.6 million of equity in (loss) income from its Terminal Joint Venture investment in SSAT for 2013, 2012, and 2011, respectively. | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
As of December 31: | |||||||||||
Identifiable Assets: | |||||||||||
Ocean transportation(2) | $ | 1,168.60 | $ | 1,097.20 | $ | 1,083.90 | |||||
Logistics | 79.7 | 77.1 | 76.4 | ||||||||
Other(3) | — | — | 1,384.00 | ||||||||
Total assets | $ | 1,248.30 | $ | 1,174.30 | $ | 2,544.30 | |||||
Capital Expenditures: | |||||||||||
Ocean transportation | $ | 33.8 | $ | 37 | $ | 44.2 | |||||
Logistics | 1.4 | 1.1 | 3 | ||||||||
Total capital expenditures | $ | 35.2 | $ | 38.1 | $ | 47.2 | |||||
Depreciation and Amortization from Continuing Operations: | |||||||||||
Ocean transportation | $ | 66.4 | $ | 69.1 | $ | 68.4 | |||||
Logistics | 3.3 | 3.4 | 3.2 | ||||||||
Total depreciation and amortization | $ | 69.7 | $ | 72.5 | $ | 71.6 | |||||
(2) The ocean transportation segment includes $57.6 million, $59.6 million, and $56.5 million related to its investment in SSAT as of December 31, 2013, 2012, and 2011, respectively. | |||||||||||
(3) Includes assets related to discontinued operations from A&B and CLX2 of $1.4 billion as of December 31, 2011. | |||||||||||
QUARTERLY_INFORMATION_Unaudite
QUARTERLY INFORMATION (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
QUARTERLY INFORMATION (Unaudited) | ' | |||||||||||||
QUARTERLY INFORMATION (Unaudited) | ' | |||||||||||||
16. QUARTERLY INFORMATION (Unaudited) | ||||||||||||||
Segment results by quarter for 2013 and 2012 are listed below (in millions, except per-share amounts): | ||||||||||||||
Quarters During the Year Ended December 31, 2013 | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||
Revenue: | ||||||||||||||
Ocean transportation | $ | 299.9 | $ | 310 | $ | 310.1 | $ | 309.4 | ||||||
Logistics | 94.8 | 106.6 | 104.9 | 101.5 | ||||||||||
Total operating revenue | $ | 394.7 | $ | 416.6 | $ | 415 | $ | 410.9 | ||||||
Operating Income: | ||||||||||||||
Ocean transportation | $ | 18.5 | $ | 34.3 | $ | 25.5 | $ | 16 | ||||||
Logistics | 0.2 | 2.2 | 1.7 | 1.9 | ||||||||||
Total operating income | 18.7 | 36.5 | 27.2 | 17.9 | ||||||||||
Interest Expense | (3.7 | ) | (3.6 | ) | (3.6 | ) | (3.5 | ) | ||||||
Income From Continuing Operations before Income Taxes | 15 | 32.9 | 23.6 | 14.4 | ||||||||||
Income tax expense | (5.9 | ) | (12.8 | ) | (6.4 | ) | (7.1 | ) | ||||||
Income From Continuing Operations | 9.1 | 20.1 | 17.2 | 7.3 | ||||||||||
Net Income (Loss) from Discontinued Operations Net of Income taxes (1) | — | — | — | — | ||||||||||
Net Income | $ | 9.1 | $ | 20.1 | $ | 17.2 | $ | 7.3 | ||||||
Income From Continuing Operations | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Diluted | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Net Income | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Diluted | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Quarters During the Year Ended December 31, 2012 | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||
Revenue: | ||||||||||||||
Ocean transportation | $ | 279.5 | $ | 299.5 | $ | 307.1 | $ | 303.7 | ||||||
Logistics | 86.6 | 94.7 | 94.3 | 94.6 | ||||||||||
Total operating revenue | $ | 366.1 | $ | 394.2 | $ | 401.4 | $ | 398.3 | ||||||
Operating Income (loss): | ||||||||||||||
Ocean transportation | $ | 5.8 | $ | 31.2 | $ | 32.9 | $ | 26.7 | ||||||
Logistics | 0.3 | 1.3 | 1.3 | (2.8 | ) | |||||||||
Total operating income | 6.1 | 32.5 | 34.2 | 23.9 | ||||||||||
Interest Expense | (2.0 | ) | (1.9 | ) | (4.0 | ) | (3.8 | ) | ||||||
Income From Continuing Operations before Income Taxes | 4.1 | 30.6 | 30.2 | 20.1 | ||||||||||
Income tax expense | (2.1 | ) | (15.3 | ) | (11.2 | ) | (4.4 | ) | ||||||
Income From Continuing Operations | 2 | 15.3 | 19 | 15.7 | ||||||||||
Net Income (Loss) from Discontinued Operations Net of Income taxes (1) | 1.4 | (7.5 | ) | 0.1 | (0.1 | ) | ||||||||
Net Income | $ | 3.4 | $ | 7.8 | $ | 19.1 | $ | 15.6 | ||||||
Income From Continuing Operations | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.05 | $ | 0.36 | $ | 0.45 | $ | 0.37 | ||||||
Diluted | $ | 0.05 | $ | 0.36 | $ | 0.45 | $ | 0.37 | ||||||
Net Income | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.08 | $ | 0.18 | $ | 0.45 | $ | 0.37 | ||||||
Diluted | $ | 0.08 | $ | 0.18 | $ | 0.45 | $ | 0.36 | ||||||
(1) See Note 3 for discussion on discontinued operations. | ||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||||||||
Principles of Consolidation | ' | |||||||||||||||||||||||||
Principles of Consolidation: The consolidated financial statements include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of significant intercompany amounts. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. A controlling financial interest is one in which the Company has a majority voting interest or one in which the Company is the primary beneficiary of a variable interest entity. | ||||||||||||||||||||||||||
Fiscal Year | ' | |||||||||||||||||||||||||
Fiscal Year: The period end for Matson, Inc. is December 31. The period end for MatNav occurred on the last Friday in December, except for Matson Logistics Warehousing whose period closed on December 31. There were 52 weeks included in the MatNav 2013, 2012 and 2011 fiscal years. | ||||||||||||||||||||||||||
Use of Estimates | ' | |||||||||||||||||||||||||
Use of Estimates: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments, long-lived vessel and equipment impairment, legal contingencies, allowance for doubtful accounts, self-insured liabilities, goodwill and other finite-lived intangible assets impairment, pension and post-retirement estimates, and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions. | ||||||||||||||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||||||||||||||
Cash and Cash Equivalents: Cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. The Company carries these investments at cost, which approximates fair value. Outstanding checks in excess of funds on deposit totaled $19.8 million and $19.6 million at December 31, 2013 and 2012, respectively, and are reflected as current liabilities in the consolidated balance sheets. | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||
Fair Value of Financial Instruments: The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. | ||||||||||||||||||||||||||
The Company uses Level 1 inputs for the fair values of its cash and cash equivalents. The Company uses Level 2 inputs for its accounts receivable, and debt. The fair values of cash and cash equivalents, accounts receivable, and short-term debt approximate their carrying values due to the short-term nature of the instruments. The fair value of the Company’s long-term debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. | ||||||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
(in millions) | Total | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Cash and cash equivalents | $ | 114.5 | $ | 114.5 | $ | 114.5 | $ | — | $ | — | ||||||||||||||||
Accounts and notes receivable, net | 182.3 | 182.3 | — | 182.3 | — | |||||||||||||||||||||
Fixed rate debt | 286.1 | 292.7 | — | 292.7 | — | |||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||
December 31, 2012 | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
(in millions) | Total | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Cash and cash equivalents | $ | 19.9 | $ | 19.9 | $ | 19.9 | $ | — | $ | — | ||||||||||||||||
Accounts and notes receivable, net | 174.7 | 174.7 | — | 174.7 | — | |||||||||||||||||||||
Variable rate debt | 24 | 24 | — | 24 | — | |||||||||||||||||||||
Fixed rate debt | 295.1 | 316.8 | — | 316.8 | — | |||||||||||||||||||||
Accounts Receivable | ' | |||||||||||||||||||||||||
Accounts Receivable: Accounts receivable are shown net of allowance for doubtful accounts in the Consolidated Balance Sheet. At December 31, 2013, the Company had assigned $112.0 million of eligible accounts receivable to the Capital Construction Fund (see Note 7). No amounts were assigned in the prior year. | ||||||||||||||||||||||||||
Allowance for Doubtful Accounts | ' | |||||||||||||||||||||||||
Allowance for Doubtful Accounts: Allowances for doubtful accounts receivable are established by management based on estimates of collectability. Estimates of collectability are principally based on an evaluation of the current financial condition the Company’s customers and their payment history, which are regularly monitored by the Company. The changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2013 were as follows (in millions): | ||||||||||||||||||||||||||
Balance at | ||||||||||||||||||||||||||
Beginning of | Write-offs | Balance at End | ||||||||||||||||||||||||
Year | Expense | and Other | of Year | |||||||||||||||||||||||
2013 | $ | 4.7 | $ | 0.6 | $ | (1.2 | ) | $ | 4.1 | |||||||||||||||||
2012 | 5.3 | 0.7 | (1.3 | ) | 4.7 | |||||||||||||||||||||
2011 | 6.1 | — | (0.8 | ) | 5.3 | |||||||||||||||||||||
Prepaid and Other Assets: | ' | |||||||||||||||||||||||||
Prepaid and Other Assets: Prepaid expenses and other assets in the consolidated balance sheets includes $13.8 million and $17.9 million at December 31, 2013 and 2012, respectively, of diesel and heavy fuel oil that is primarily aboard the Company’s vessels, and is recorded at cost. | ||||||||||||||||||||||||||
Impairment of Investment | ' | |||||||||||||||||||||||||
Impairment of Investment: The Company’s investment in its Terminal Joint Venture is reviewed for impairment annually and whenever there is evidence that fair value may be below carrying cost. An investment is written down to fair value if fair value is below carrying cost and the impairment is other-than-temporary. In evaluating the fair value of an investment and whether any identified impairment is other-than-temporary, significant estimates and considerable judgments are involved. These estimates and judgments are based, in part, on the Company’s current and future evaluation of economic conditions in general, as well as the Terminal Joint Venture’s current and future plans. These fair value calculations are highly subjective because they require management to make assumptions and apply judgments to estimates regarding the timing and amount of future cash flows, probabilities related to various cash flow scenarios, and appropriate discount rates based on the perceived risks, among others. In evaluating whether an impairment is other-than-temporary, the Company considers all available information, including the length of time and extent of the impairment, the financial condition and near-term prospects of the Terminal Joint Venture, the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value, and projected industry and economic trends, among others. Changes in these and other assumptions could affect the projected operational results and fair value of the Terminal Joint Venture, and accordingly, may require valuation adjustments to the Company’s investment that may materially impact the Company’s financial condition or its future operating results. | ||||||||||||||||||||||||||
The Company has evaluated its investment in its Terminal Joint Venture for impairment and no impairment charges were recorded for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||||||||
Property and Equipment: Property and equipment are stated at cost. Certain costs incurred in the development of internal-use software are capitalized. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives of property and equipment are as follows: | ||||||||||||||||||||||||||
Classification | Range of Life (in years) | |||||||||||||||||||||||||
Vessels | 5 to 40 | |||||||||||||||||||||||||
Machinery and equipment | 2 to 20 | |||||||||||||||||||||||||
Terminal facilities | 2 to 35 | |||||||||||||||||||||||||
Impairment of Vessels and Equipment | ' | |||||||||||||||||||||||||
Impairment of Vessels and Equipment: The Company operates an integrated network of vessels, containers, and terminal equipment; therefore, in evaluating impairment, the Company groups its assets at the ocean transportation entity level, which represents the lowest level for which identifiable cash flows are available. The Company’s vessels and equipment are reviewed for possible impairment annually and whenever events or circumstances, such as recurring operating losses, indicate that their carrying values may not be recoverable. In evaluating impairment, the estimated future undiscounted cash flows generated by the asset group are compared with the amount recorded for the asset group to determine if its carrying value is not recoverable. If this review determines that the recorded value will not be recovered, the amount recorded for the asset group is reduced to estimated fair value. These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among other things, estimates of the timing and amount of future cash flows, expected useful lives of the assets, uncertainty about future events, including changes in economic conditions, changes in operating performance, changes in the use of the assets, and ongoing costs of maintenance and improvements of the assets, and thus, the accounting estimates may change from period to period. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted. | ||||||||||||||||||||||||||
The Company has evaluated its vessels and equipment for impairment and no impairment charges were recorded for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||||
Dry-docking Costs | ' | |||||||||||||||||||||||||
Dry-docking Costs: The Company’s U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and Classification society requirements. These standards require that the Company’s ships undergo two dry-docking inspections within a five-year period. However, all of the Company’s U.S. flagged vessels are enrolled in the U.S. Coast Guard’s Underwater Survey in Lieu of Dry-docking (“UWILD”) program. The UWILD program allows eligible ships to have their intermediate dry-docking requirement to be met with a far less costly underwater inspection. | ||||||||||||||||||||||||||
The Company operates four non-U.S. flag vessels (one owned; one under a bareboat charter arrangement; and the remaining two on time charter) in the Pacific Islands. The Company is responsible for ensuring that the owned and bareboat chartered ships meet international standards for seaworthiness, which among other requirements generally mandate that the Company perform two dry-docking inspections every five years. The dry-dockings of the Company’s other chartered vessels are the responsibility of the ships’ owners. | ||||||||||||||||||||||||||
As the costs associated with these dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the next regularly scheduled inspection, which is usually over a two to five-year period. Routine vessel maintenance and repairs that do not improve or extend asset lives are charged to expense as incurred. Deferred dry-docking costs were $56.9 million and $66.3 million as of December 31, 2013 and 2012, respectively, and are included in other long-term assets in the consolidated balance sheets. Amortized amounts are charged to operating expenses in the consolidated statements of income and comprehensive income. Changes in deferred dry-docking costs are included in the consolidated statements of cash flows. | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||||
Goodwill and Intangible Assets: Recorded goodwill arises as a result of acquisitions made by the Company. Intangible assets consist of customer lists and tradenames. The Company amortizes customer lists and trademarks using the straight-line method over the expected useful lives of up to 13 years. | ||||||||||||||||||||||||||
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | ' | |||||||||||||||||||||||||
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets: The Company’s long-lived assets, including finite-lived intangible assets, are reviewed for possible impairment annually and whenever events or circumstances indicate that the carrying value may not be recoverable. In such an evaluation, the estimated future undiscounted cash flows generated by the asset are compared with the amount recorded for the asset to determine if its carrying value is not recoverable. If this review determines that the recorded value will not be recovered, the amount recorded for the asset is reduced to estimated fair value. These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among others, estimates of the timing and amount of future cash flows, expected useful lives of the assets, uncertainty about future events, including changes in economic conditions, changes in operating performance, changes in the use of the assets, and ongoing costs of maintenance and improvements of the assets, and thus, the accounting estimates may change from period to period. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted. | ||||||||||||||||||||||||||
The Company has evaluated certain long-lived assets, including finite-lived intangible assets, for impairment and no impairment charges were recorded for the years ended December 31, 2013 and 2011. During 2012 the Company determined that it had an impairment related to intangible assets at Logistics. The Company recorded impairment expense of $2.1 million for the year ended December 31, 2012, which is included in operating expense on the consolidated statements of income and comprehensive income. | ||||||||||||||||||||||||||
Impairment of Goodwill | ' | |||||||||||||||||||||||||
Impairment of Goodwill: The Company reviews goodwill for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The discounted cash flow approach requires the Company to use a number of assumptions, including market factors specific to the business, the amount and timing of estimated future cash flows to be generated by the business over an extended period of time, long-term growth rates for the business, and a discount rate that considers the risks related to the amount and timing of the cash flows. Although the assumptions used by the Company in its discounted cash flow model are consistent with the assumptions the Company used to generate its internal strategic plans and forecasts, significant judgment is required to estimate the amount and timing of future cash flows from the reporting unit and the risk of achieving those cash flows. When using market multiples of EBITDA, the Company must make judgments about the comparability of those multiples in closed and proposed transactions. Accordingly, changes in assumptions and estimates, including, but not limited to, changes driven by external factors, such as industry and economic trends, and those driven by internal factors, such as changes in the Company’s business strategy and its internal forecasts, could have a material effect on the Company’s financial condition or its future operating results. | ||||||||||||||||||||||||||
The Company has evaluated its goodwill for impairment and no impairment charges were recorded for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||
Pension and Post-Retirement Plans | ' | |||||||||||||||||||||||||
Pension and Post-Retirement Plans: Certain ocean transportation subsidiaries are members of the Pacific Maritime Association (“PMA”) and the Hawaii Stevedoring Industry Committee, which negotiate multiemployer pension plans covering certain shoreside bargaining unit personnel. The subsidiaries directly negotiate multiemployer pension plans covering other bargaining unit personnel. Pension costs are accrued in accordance with contribution rates established by the PMA, the parties to a plan or the trustees of a plan. Several trusteed, non-contributory, single-employer defined benefit plans and defined contribution plans cover substantially all other employees. | ||||||||||||||||||||||||||
The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires that the Company make various assumptions. These assumptions include factors such as discount rates, expected long-term rate of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates, and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results. The effects of changing assumptions are included in unamortized net gains and losses, which directly affect accumulated other comprehensive income. Additionally, these unamortized gains and losses are amortized and reclassified to income (loss) over future periods. Additional information about the Company’s benefit plans is included in Note 10. | ||||||||||||||||||||||||||
Self-Insured Liabilities | ' | |||||||||||||||||||||||||
Self-Insured Liabilities: The Company is self-insured for certain losses including, but not limited to, employee health, workers’ compensation, general liability, real and personal property. Where feasible, the Company obtains third-party excess insurance coverage to limit its exposure to these claims. When estimating its self-insured liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by independent third-parties. Periodically, management reviews its assumptions and the analyses provided by independent third-parties to determine the adequacy of the Company’s self-insured liabilities. The Company’s self-insured liabilities contain uncertainties because management is required to apply judgment and make long-term assumptions to estimate the ultimate cost to settle reported claims and claims incurred, but not reported, as of the balance sheet date. If management uses different assumptions or if different conditions occur in future periods, the Company’s financial condition or its future operating results could be materially impacted. | ||||||||||||||||||||||||||
Legal Contingencies | ' | |||||||||||||||||||||||||
Legal Contingencies: The Company’s results of operations could be affected by significant litigation adverse to the Company, including, but not limited to, liability claims, antitrust claims, claims related to coastwise trading matters, lawsuits involving private plaintiffs or government agencies, and environmental related matters. The Company records accruals for legal matters when the information available indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Management makes adjustments to these accruals to reflect the impact and status of negotiations, settlements, rulings, advice of outside legal counsel and other information and events that may pertain to a particular matter. Predicting the outcome of claims and lawsuits and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from those estimates. In making determinations of likely outcomes of litigation matters, the Company considers many factors. These factors include, but are not limited to, the nature of specific claims including unasserted claims, the Company’s experience with similar types of claims, the jurisdiction in which the matter is filed, input from outside legal counsel, the likelihood of resolving the matter through alternative dispute resolution mechanisms and the matter’s current status. A detailed discussion of significant litigation matters is contained in Note 13. | ||||||||||||||||||||||||||
Recognition of Revenues and Expenses | ' | |||||||||||||||||||||||||
Recognition of Revenues and Expenses: Voyage revenue is recognized ratably over the duration of a voyage based on the relative transit time in each reporting period. Voyage expenses are recognized as incurred. Hawaii, Guam, and certain Pacific island service freight rates are provided in tariffs filed with the Surface Transportation Board of the U.S. Department of Transportation; for other Pacific island services, the rates are filed with the Federal Maritime Commission. The China service rates are predominately established by individual contracts with customers. | ||||||||||||||||||||||||||
The revenue for logistics services includes the total amount billed to customers for transportation services. The primary costs include purchased transportation services. Revenue and the related purchased transportation costs are recognized based on relative transit time, commonly referred to as the “percentage of completion” method. The Company reports revenue on a gross basis. The Company serves as principal in transactions because it is responsible for the contractual relationship with the customer, has latitude in establishing prices, has discretion in supplier selection, and retains credit risk. | ||||||||||||||||||||||||||
The primary sources of revenue for warehousing services are storage, handling, and value-added packaging. For customer dedicated warehouses, storage revenue is recognized as earned over the life of the contract. Storage revenue generated by the public warehouses is recognized in the month the service is provided according to the terms of the contract. Handling and value-added packaging revenue and expense are recognized in proportion to the services completed. | ||||||||||||||||||||||||||
Non-voyage Costs: | ' | |||||||||||||||||||||||||
Non-voyage Costs: Non-voyage costs such as terminal operating overhead, and general and administrative expenses are charged to expense as incurred. | ||||||||||||||||||||||||||
Share-Based Compensation | ' | |||||||||||||||||||||||||
Share-Based Compensation: The Company records compensation expense for all share-based payment awards made to employees and directors. The Company’s various equity plans are more fully described in Note 12. | ||||||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||||
Income Taxes: Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse. Adjustments may be required to deferred tax assets and deferred tax liabilities due to changes in tax laws and audit adjustments by tax authorities. To the extent adjustments are required in any given period, the adjustments would be included within the tax provision in the Consolidated Statements of Income and Comprehensive Income and/or Consolidated Balance Sheets. | ||||||||||||||||||||||||||
The Company makes certain estimates and judgments in determining income tax expense for consolidated financial statement purposes. These estimates and judgments are applied in the calculation of tax credits, tax benefits and deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and consolidated financial statement purposes. In addition, judgment is required in determining if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. | ||||||||||||||||||||||||||
In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertain tax positions taken or expected to be taken with respect to the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with management’s expectations could materially affect the Company’s financial condition or its future operating results. | ||||||||||||||||||||||||||
The Company has not recorded a valuation allowance for its deferred tax assets. A valuation allowance would be established if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. | ||||||||||||||||||||||||||
Discontinued Operations | ' | |||||||||||||||||||||||||
Discontinued Operations: The termination of certain business lines are classified as discontinued operations if the operations and cash flows of the assets clearly can be distinguished from the remaining assets of the Company, if cash flows for the assets have been, or will be, eliminated from the ongoing operations of the Company, if the Company will not have a significant continuing involvement in the operations of the assets sold, and if the amount is considered material. As a result, the operations for the Company’s second China Long Beach Express Service (“CLX2”) and A&B have been shown as discontinued operations (see Note 3). | ||||||||||||||||||||||||||
Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||
Comprehensive Income (Loss): Comprehensive income (loss) includes all changes in Shareholders’ Equity, except those resulting from capital stock transactions. Other comprehensive income (loss) in the consolidated statements of income and comprehensive income are shown net of tax (expense) benefit of ($14.1) million, ($0.3) million, and $6.3 million for the years ended December 2013, 2012 and 2011, respectively. Accumulated other comprehensive loss of $23.5 million and $45.5 million at December 31, 2013 and 2012, respectively, primarily included amortization of deferred pension, post-retirement costs and non-qualified plans of $22.6 million and $44.6 million, respectively. | ||||||||||||||||||||||||||
Basic and Diluted Earnings per Share (EPS) of Common Stock | ' | |||||||||||||||||||||||||
Basic and Diluted Earnings per Share (“EPS”) of Common Stock: Basic earnings per share are determined by dividing net income by the weighted-average common shares outstanding during the year. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested stock units. The computation of weighted average dilutive shares outstanding excluded non-qualified stock options to purchase 0.1 million, 0.5 million, and 1.4 million shares of common stock for 2013, 2012, and 2011, respectively. These amounts were excluded because the options’ exercise prices were greater than the average market price of the Company’s common stock for the periods presented and, therefore, the effect would be anti-dilutive. | ||||||||||||||||||||||||||
The denominator used to compute basic and diluted earnings per share is as follows (in millions): | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | Weighted | Per | |||||||||||||||||||||
Average | Common | Average | Common | Average | Common | |||||||||||||||||||||
Net | Common | Share | Net | Common | Share | Net | Common | Share | ||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 53.7 | 42.7 | $ | 1.26 | $ | 52 | 42.3 | $ | 1.23 | $ | 45.8 | 41.6 | $ | 1.1 | |||||||||||
Loss from discontinued operations | — | 42.7 | — | (6.1 | ) | 42.3 | (0.14 | ) | (11.6 | ) | 41.6 | (0.28 | ) | |||||||||||||
Net Income | $ | 53.7 | $ | 1.26 | $ | 45.9 | $ | 1.09 | $ | 34.2 | $ | 0.82 | ||||||||||||||
Effect of Dilutive Securities | 0.4 | 0.4 | 0.4 | |||||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 53.7 | 43.1 | $ | 1.25 | $ | 52 | 42.7 | $ | 1.22 | $ | 45.8 | 42 | $ | 1.09 | |||||||||||
Loss from discontinued operations | — | 43.1 | — | (6.1 | ) | 42.7 | (0.14 | ) | (11.6 | ) | 42 | (0.28 | ) | |||||||||||||
Net Income | $ | 53.7 | $ | 1.25 | $ | 45.9 | $ | 1.08 | $ | 34.2 | $ | 0.81 | ||||||||||||||
Rounding | ' | |||||||||||||||||||||||||
Rounding: Amounts in the consolidated financial statements and Notes are rounded to millions, but per-share calculations and percentages were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. | ||||||||||||||||||||||||||
Reclassification | ' | |||||||||||||||||||||||||
Reclassification: Amounts for goodwill and intangible assets at December 31, 2012 have been reclassified from other long-term assets in the Company’s consolidated balance sheet to conform to the current year presentation. | ||||||||||||||||||||||||||
DESCRIPTION_OF_THE_BUSINESS_Ta
DESCRIPTION OF THE BUSINESS (Tables) (Alexander & Baldwin) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Alexander & Baldwin | ' | ||||
DESCRIPTION OF THE BUSINESS | ' | ||||
Schedule of breakdown of separation cash outflows | ' | ||||
The breakdown of Separation cash outflows for the year ended December 31, 2012 were as follows (in millions): | |||||
Separation Cash Outflows | |||||
Capital contribution to A&B | $ | 155.7 | |||
Separation costs | 8.6 | ||||
Capitalized debt financing costs | 1.9 | ||||
Total cash outflow related to the Separation | $ | 166.2 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||||||||
Schedule of fair value measurement | ' | |||||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
(in millions) | Total | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Cash and cash equivalents | $ | 114.5 | $ | 114.5 | $ | 114.5 | $ | — | $ | — | ||||||||||||||||
Accounts and notes receivable, net | 182.3 | 182.3 | — | 182.3 | — | |||||||||||||||||||||
Fixed rate debt | 286.1 | 292.7 | — | 292.7 | — | |||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | |||||||||||||||||||||||
December 31, 2012 | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||
(in millions) | Total | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Cash and cash equivalents | $ | 19.9 | $ | 19.9 | $ | 19.9 | $ | — | $ | — | ||||||||||||||||
Accounts and notes receivable, net | 174.7 | 174.7 | — | 174.7 | — | |||||||||||||||||||||
Variable rate debt | 24 | 24 | — | 24 | — | |||||||||||||||||||||
Fixed rate debt | 295.1 | 316.8 | — | 316.8 | — | |||||||||||||||||||||
Schedule of changes in the allowance for doubtful accounts receivable | ' | |||||||||||||||||||||||||
The changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2013 were as follows (in millions): | ||||||||||||||||||||||||||
Balance at | ||||||||||||||||||||||||||
Beginning of | Write-offs | Balance at End | ||||||||||||||||||||||||
Year | Expense | and Other | of Year | |||||||||||||||||||||||
2013 | $ | 4.7 | $ | 0.6 | $ | (1.2 | ) | $ | 4.1 | |||||||||||||||||
2012 | 5.3 | 0.7 | (1.3 | ) | 4.7 | |||||||||||||||||||||
2011 | 6.1 | — | (0.8 | ) | 5.3 | |||||||||||||||||||||
Schedule of estimated useful lives of property and equipment | ' | |||||||||||||||||||||||||
Classification | Range of Life (in years) | |||||||||||||||||||||||||
Vessels | 5 to 40 | |||||||||||||||||||||||||
Machinery and equipment | 2 to 20 | |||||||||||||||||||||||||
Terminal facilities | 2 to 35 | |||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | ' | |||||||||||||||||||||||||
The denominator used to compute basic and diluted earnings per share is as follows (in millions): | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | Year Ended December 31, 2011 | ||||||||||||||||||||||||
Weighted | Per | Weighted | Per | Weighted | Per | |||||||||||||||||||||
Average | Common | Average | Common | Average | Common | |||||||||||||||||||||
Net | Common | Share | Net | Common | Share | Net | Common | Share | ||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 53.7 | 42.7 | $ | 1.26 | $ | 52 | 42.3 | $ | 1.23 | $ | 45.8 | 41.6 | $ | 1.1 | |||||||||||
Loss from discontinued operations | — | 42.7 | — | (6.1 | ) | 42.3 | (0.14 | ) | (11.6 | ) | 41.6 | (0.28 | ) | |||||||||||||
Net Income | $ | 53.7 | $ | 1.26 | $ | 45.9 | $ | 1.09 | $ | 34.2 | $ | 0.82 | ||||||||||||||
Effect of Dilutive Securities | 0.4 | 0.4 | 0.4 | |||||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Income from continuing operations | $ | 53.7 | 43.1 | $ | 1.25 | $ | 52 | 42.7 | $ | 1.22 | $ | 45.8 | 42 | $ | 1.09 | |||||||||||
Loss from discontinued operations | — | 43.1 | — | (6.1 | ) | 42.7 | (0.14 | ) | (11.6 | ) | 42 | (0.28 | ) | |||||||||||||
Net Income | $ | 53.7 | $ | 1.25 | $ | 45.9 | $ | 1.08 | $ | 34.2 | $ | 0.81 |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||
Schedule of loss from discontinued operations | ' | ||||||||||
Loss from discontinued operations for the years ended December 31, 2012 and 2011, consisted of the following (in millions): | |||||||||||
Years Ended December 31, | |||||||||||
2012 | 2011 | ||||||||||
Discontinued operations, net of income taxes: | |||||||||||
Income from A&B | $ | 116.4 | $ | 274.7 | |||||||
Expenses from A&B | (118.1 | ) | (243.5 | ) | |||||||
Tax expense from A&B | (1.6 | ) | (7.2 | ) | |||||||
(Loss) income from A&B | (3.3 | ) | 24 | ||||||||
Income from CLX2 | — | 92.7 | |||||||||
Expenses from CLX2 | (4.4 | ) | (149.4 | ) | |||||||
Tax benefit from CLX2 | 1.6 | 21.1 | |||||||||
Loss from discontinued operations, net of tax | $ | (6.1 | ) | $ | (11.6 | ) | |||||
Liabilities Associated with Termination of CLX2 | ' | ||||||||||
The following table provides information regarding liabilities associated with the termination of CLX2 (in millions): | |||||||||||
Containers | Other | Total | |||||||||
and Charter | Contractual | ||||||||||
Liabilities | Liabilities | ||||||||||
Balance at December 31, 2011 | $ | 4.8 | $ | 0.1 | $ | 4.9 | |||||
Expenses incurred | 4.5 | 0 | 4.5 | ||||||||
Amounts paid | (9.3 | ) | (0.1 | ) | (9.4 | ) | |||||
Balance at December 31, 2012 | $ | — | $ | — | $ | — |
INVESTMENT_IN_TERMINAL_JOINT_V1
INVESTMENT IN TERMINAL JOINT VENTURE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INVESTMENT IN TERMINAL JOINT VENTURE | ' | ||||||||||
Schedule of financial information for the Company's equity method investment | ' | ||||||||||
A summary of financial information for the Terminal Joint Venture at December 31, 2013 and 2012 is as follows (in millions): | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current assets | $ | 73.5 | $ | 90.8 | |||||||
Noncurrent assets | 137.1 | 139.2 | |||||||||
Total assets | $ | 210.6 | $ | 230 | |||||||
Current liabilities | $ | 43.2 | $ | 55.9 | |||||||
Noncurrent liabilities | 15.7 | 14.7 | |||||||||
Equity | 151.7 | 159.4 | |||||||||
Total liabilities | $ | 210.6 | $ | 230 | |||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Operating revenue | $ | 498.4 | $ | 503.9 | $ | 578.6 | |||||
Operating costs and expenses | 517.4 | 506.4 | 571.7 | ||||||||
Operating (loss) income | (19.0 | ) | (2.5 | ) | 6.9 | ||||||
Net (loss) income (1) | $ | (5.7 | ) | $ | 9.5 | $ | 26.3 | ||||
The Company’s share of net (loss) income | $ | (2.0 | ) | $ | 3.2 | $ | 8.6 | ||||
(1) Includes earnings from equity method investments held by the investee |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||||
Schedule of property and equipment | ' | ||||||||||
Property and equipment at December 31, 2013 and 2012 includes the following (in millions): | |||||||||||
As of December 31, 2013 | |||||||||||
Cost | Accumulated | Net Book | |||||||||
Depreciation | Value | ||||||||||
Vessels | $ | 1,260.20 | $ | 718.1 | $ | 542.1 | |||||
Containers and equipment | 470.6 | 310.4 | 160.2 | ||||||||
Terminal facilities and other property | 38.9 | 30.9 | 8 | ||||||||
Construction in progress | 25.1 | — | 25.1 | ||||||||
Total | $ | 1,794.80 | $ | 1,059.40 | $ | 735.4 | |||||
As of December 31, 2012 | |||||||||||
Cost | Accumulated | Net Book | |||||||||
Depreciation | Value | ||||||||||
Vessels | $ | 1,249.10 | $ | 679.4 | $ | 569.7 | |||||
Containers and equipment | 468.5 | 300.1 | 168.4 | ||||||||
Terminal facilities and other property | 38.5 | 28.8 | 9.7 | ||||||||
Construction in progress | 14.7 | — | 14.7 | ||||||||
Total | $ | 1,770.80 | $ | 1,008.30 | $ | 762.5 | |||||
Schedule of depreciation expense | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Depreciation Expense | $ | 67.4 | $ | 70.6 | $ | 69.4 | |||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||
Schedule of changes in the goodwill | ' | ||||||||||
Changes in the Company’s goodwill for the years ended December 31, 2013 and 2012 consist of the following (in millions): | |||||||||||
Goodwill | |||||||||||
Ocean | |||||||||||
Logistics | Transportation | Total | |||||||||
Balance, December 31, 2011 | $ | 27 | $ | — | $ | 27 | |||||
Additions | — | — | — | ||||||||
Balance, December 31, 2012 | 27 | — | 27 | ||||||||
Additions | — | 0.4 | 0.4 | ||||||||
Balance, December 31, 2013 | $ | 27 | $ | 0.4 | $ | 27.4 | |||||
Schedule of intangible assets | ' | ||||||||||
Intangible assets as of December 31, 2013 and 2012 include the following (in millions): | |||||||||||
As of December 31, 2013 | |||||||||||
Gross | Accumulated | Net Book | |||||||||
Cost | Amortization | Value | |||||||||
Customer lists | $ | 10.4 | $ | (6.8 | ) | $ | 3.6 | ||||
Tradenames | 3.9 | (3.7 | ) | 0.2 | |||||||
Total intangible assets | $ | 14.3 | $ | (10.5 | ) | $ | 3.8 | ||||
As of December 31, 2012 | |||||||||||
Gross | Accumulated | Net Book | |||||||||
Cost | Amortization | Value | |||||||||
Customer lists | $ | 9.7 | $ | (6.2 | ) | $ | 3.5 | ||||
Tradenames | 3.8 | (3.4 | ) | 0.4 | |||||||
Total intangible assets | $ | 13.5 | $ | (9.6 | ) | $ | 3.9 | ||||
Schedule of estimated amortization expenses related to intangible assets | ' | ||||||||||
Estimated amortization expenses related to intangible assets over the next five years are as follows (in millions): | |||||||||||
Estimated | |||||||||||
Amortization | |||||||||||
2014 | $ | 0.8 | |||||||||
2015 | 0.5 | ||||||||||
2016 | 0.5 | ||||||||||
2017 | 0.5 | ||||||||||
2018 | 0.4 | ||||||||||
Thereafter | 1.1 | ||||||||||
Total | $ | 3.8 | |||||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT | ' | |||||||
Schedule of long-term debt | ' | |||||||
At December 31, 2013 and 2012, long-term debt consisted of the following (in millions): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Term Loans: | ||||||||
5.79%, payable through 2020 | $ | 45.5 | $ | 52.5 | ||||
3.66%, payable through 2023 | 77.5 | 77.5 | ||||||
4.16%, payable through 2027 | 55 | 55 | ||||||
4.31%, payable through 2032 | 37.5 | 37.5 | ||||||
Title XI Bonds: | ||||||||
5.34%, payable through 2028 | 33 | 35.2 | ||||||
5.27%, payable through 2029 | 35.2 | 37.4 | ||||||
Revolving Credit Borrowings (1.69% for 2012) | — | 24 | ||||||
Capital leases | 2.4 | — | ||||||
286.1 | 319.1 | |||||||
Less current portion | (12.5 | ) | (16.4 | ) | ||||
Total long-term debt | $ | 273.6 | $ | 302.7 | ||||
Schedule of maturities of long-term debt | ' | |||||||
At December 31, 2013, debt maturities during the next five years and thereafter are as follows (in millions): | ||||||||
2014 | $ | 12.5 | ||||||
2015 | 21.7 | |||||||
2016 | 20.6 | |||||||
2017 | 28.2 | |||||||
2018 | 28.2 | |||||||
Thereafter | 174.9 | |||||||
Total | $ | 286.1 |
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES | ' | ||||
Schedule of future minimum payments under operating leases | ' | ||||
Future minimum payments under operating leases as of December 31, 2013 were as follows (in millions): | |||||
Total Operating | |||||
Year | Leases | ||||
2014 | $ | 22 | |||
2015 | 18.1 | ||||
2016 | 11.9 | ||||
2017 | 8 | ||||
2018 | 2.8 | ||||
Thereafter | 7.1 | ||||
Total minimum lease payments | $ | 69.9 |
PENSION_AND_POST_RETIREMENT_PL1
PENSION AND POST RETIREMENT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
PENSION AND POST RETIREMENT PLANS | ' | ||||||||||||||||||||||
Schedule of the Company's target and actual weighted-average asset allocations | ' | ||||||||||||||||||||||
Target | 2013 | 2012 | |||||||||||||||||||||
Domestic equity securities | 53 | % | 58 | % | 56 | % | |||||||||||||||||
International equity securities | 15 | % | 15 | % | 14 | % | |||||||||||||||||
Debt securities | 22 | % | 18 | % | 19 | % | |||||||||||||||||
Real estate | 5 | % | 5 | % | 5 | % | |||||||||||||||||
Other and cash | 5 | % | 4 | % | 6 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Schedule of the fair values of the Company's pension plan assets, by asset category | ' | ||||||||||||||||||||||
The fair values of the Company’s pension plan assets at December 31, 2013 and 2012, by asset category, are as follows (in millions): | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||
(Level 1) | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||||
Cash | $ | 6.9 | $ | 6.9 | $ | — | $ | — | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. large-cap | 64.2 | 64.2 | — | — | |||||||||||||||||||
U.S. mid- and small-cap | 35.7 | 35.7 | — | — | |||||||||||||||||||
International large-cap | 19 | 19 | — | — | |||||||||||||||||||
International small-cap | 7.2 | 7.2 | — | — | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. Treasuries | 0.6 | — | 0.6 | — | |||||||||||||||||||
Municipal bonds | 0.1 | — | 0.1 | — | |||||||||||||||||||
Investment grade U.S. corporate bonds | 1.9 | — | 1.9 | — | |||||||||||||||||||
High-yield U.S. corporate bonds | 6.7 | — | 6.7 | — | |||||||||||||||||||
Emerging markets fixed income | 8.9 | 8.9 | — | — | |||||||||||||||||||
Mortgage-backed securities | 12.7 | — | 12.7 | — | |||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||
Real estate partnership interests | 8.6 | — | — | 8.6 | |||||||||||||||||||
Private equity partnership interests (1) | 0.3 | — | — | 0.3 | |||||||||||||||||||
Total | $ | 172.8 | $ | 141.9 | $ | 22 | $ | 8.9 | |||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||
(Level 1) | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||||
Cash | $ | 8.3 | $ | 8.3 | $ | — | $ | — | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. large-cap | 53.8 | 53.8 | — | — | |||||||||||||||||||
U.S. mid- and small-cap | 29.8 | 29.8 | — | — | |||||||||||||||||||
International large-cap | 16.7 | 16.7 | — | — | |||||||||||||||||||
International small-cap | 4.3 | 4.3 | — | — | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. Treasuries | 0.8 | — | 0.8 | — | |||||||||||||||||||
Municipal bonds | 0.2 | — | 0.2 | — | |||||||||||||||||||
Investment grade U.S. corporate bonds | 2 | — | 2 | — | |||||||||||||||||||
High-yield U.S. corporate bonds | 6.4 | — | 6.4 | — | |||||||||||||||||||
Emerging markets fixed income | 4.3 | 4.3 | — | — | |||||||||||||||||||
Mortgage-backed securities | 14 | — | 14 | — | |||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||
Real estate partnership interests | 7.8 | — | — | 7.8 | |||||||||||||||||||
Private equity partnership interests (1) | 0.8 | — | — | 0.8 | |||||||||||||||||||
Total | $ | 149.2 | $ | 117.2 | $ | 23.4 | $ | 8.6 | |||||||||||||||
(1) This category represents private equity funds that invest principally in U.S. technology companies. | |||||||||||||||||||||||
Reconciliation of all pension plan investments measured at fair value on a recurring basis using significant unobservable inputs (level 3) | ' | ||||||||||||||||||||||
The table below presents a reconciliation of all pension plan investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 (in millions): | |||||||||||||||||||||||
Fair Value Measurements Using Significant | |||||||||||||||||||||||
Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Real Estate | Private Equity | Insurance | Total | ||||||||||||||||||||
Beginning balance, December 31, 2011 | $ | 7.1 | $ | 0.8 | $ | 0.7 | $ | 8.6 | |||||||||||||||
Actual return (loss) on plan assets: | |||||||||||||||||||||||
Assets held at the reporting date | 1.6 | 0.1 | — | 1.7 | |||||||||||||||||||
Assets sold during the period | (0.2 | ) | 0.3 | — | 0.1 | ||||||||||||||||||
Purchases, sales and settlements, net | (0.7 | ) | (0.4 | ) | (0.7 | ) | (1.8 | ) | |||||||||||||||
Beginning balance, December 31, 2012 | 7.8 | 0.8 | — | 8.6 | |||||||||||||||||||
Actual return (loss) on plan assets: | |||||||||||||||||||||||
Assets held at the reporting date | 0.9 | (0.2 | ) | — | 0.7 | ||||||||||||||||||
Assets sold during the period | 0.3 | 0.1 | — | 0.4 | |||||||||||||||||||
Purchases, sales and settlements, net | (0.4 | ) | (0.4 | ) | — | (0.8 | ) | ||||||||||||||||
Ending balance, December 31, 2013 | $ | 8.6 | $ | 0.3 | $ | — | $ | 8.9 | |||||||||||||||
Schedule of status of the funded defined benefit pension plan and the unfunded accumulated post-retirement benefit plans | ' | ||||||||||||||||||||||
The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2013 and 2012 are shown below (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement | ||||||||||||||||||||||
Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 210.1 | $ | 192.6 | $ | 49.2 | $ | 48.5 | |||||||||||||||
Service cost | 2.9 | 2.7 | 1.1 | 1 | |||||||||||||||||||
Interest cost | 8.6 | 9 | 2.1 | 2.3 | |||||||||||||||||||
Plan participants’ contributions | — | — | 0.9 | 1.3 | |||||||||||||||||||
Actuarial (gain) loss | (13.3 | ) | 14.9 | 2 | (0.6 | ) | |||||||||||||||||
Benefits paid | (9.8 | ) | (9.1 | ) | (3.2 | ) | (3.3 | ) | |||||||||||||||
Expenses paid | (1.0 | ) | — | — | — | ||||||||||||||||||
Benefit obligation at end of year | $ | 197.5 | $ | 210.1 | $ | 52.1 | $ | 49.2 | |||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 149.2 | $ | 126 | $ | — | $ | — | |||||||||||||||
Actual return on plan assets | 30.8 | 19 | — | — | |||||||||||||||||||
Plan participants’ contributions | — | — | 0.9 | 1.3 | |||||||||||||||||||
Employer contributions | 3.5 | 13.3 | 2.3 | 2 | |||||||||||||||||||
Benefits paid | (9.8 | ) | (9.1 | ) | (3.2 | ) | (3.3 | ) | |||||||||||||||
Expenses paid | (0.9 | ) | — | — | — | ||||||||||||||||||
Fair value of plan assets at end of year | 172.8 | 149.2 | (0.0 | ) | — | ||||||||||||||||||
Funded Status and Recognized Liability | $ | (24.7 | ) | $ | (60.9 | ) | $ | (52.1 | ) | $ | (49.2 | ) | |||||||||||
Schedule of amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss | ' | ||||||||||||||||||||||
Amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss at December 31, 2013 and 2012 were as follows (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement | ||||||||||||||||||||||
Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Current liabilities | $ | — | $ | — | $ | (2.4 | ) | $ | (2.1 | ) | |||||||||||||
Non-current liabilities | (24.7 | ) | (60.9 | ) | (49.7 | ) | (47.1 | ) | |||||||||||||||
Total | $ | (24.7 | ) | $ | (60.9 | ) | $ | (52.1 | ) | $ | (49.2 | ) | |||||||||||
Net loss (net of taxes) | $ | 32 | $ | 55.8 | $ | 1.7 | $ | 0.7 | |||||||||||||||
Prior service cost (net of taxes) | (12.0 | ) | (13.4 | ) | — | 0.1 | |||||||||||||||||
Total | $ | 20 | $ | 42.4 | $ | 1.7 | $ | 0.8 | |||||||||||||||
Schedule of information for qualified pension plans with an accumulated benefit obligation in excess of plan assets | ' | ||||||||||||||||||||||
The information for qualified pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2013 and 2012 is shown below (in millions): | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Projected benefit obligation | $ | 197.5 | $ | 210.1 | |||||||||||||||||||
Accumulated benefit obligation | $ | 197.2 | $ | 209.6 | |||||||||||||||||||
Fair value of plan assets | $ | 172.8 | $ | 149.2 | |||||||||||||||||||
Schedule of components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the defined benefit pension plans and the post-retirement health care and life insurance benefit plans | ' | ||||||||||||||||||||||
Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the qualified pension plans and the post-retirement health care and life insurance benefit plans during 2013, 2012, and 2011, are shown below (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||
Service cost | $ | 2.9 | $ | 2.7 | $ | 5.4 | $ | 1.1 | $ | 1 | $ | 0.9 | |||||||||||
Interest cost | 8.6 | 9 | 10.7 | 2.1 | 2.3 | 3 | |||||||||||||||||
Expected return on plan assets | (11.9 | ) | (10.7 | ) | (11.1 | ) | — | — | — | ||||||||||||||
Amortization of net loss (gain) | 6.8 | 7 | 4 | 0.3 | 0.6 | 1.9 | |||||||||||||||||
Amortization of prior service cost | (2.3 | ) | (2.3 | ) | 0.1 | — | 0.1 | 0.2 | |||||||||||||||
Net periodic benefit cost | $ | 4.1 | $ | 5.7 | $ | 9.1 | $ | 3.5 | $ | 4 | $ | 6 | |||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax) | |||||||||||||||||||||||
Net loss (gain) | $ | (19.6 | ) | $ | 4 | $ | 23.8 | $ | 1.2 | $ | (0.4 | ) | $ | (2.5 | ) | ||||||||
Amortization of unrecognized (loss) gain | (4.2 | ) | (4.2 | ) | (2.4 | ) | (0.2 | ) | (0.3 | ) | (1.0 | ) | |||||||||||
Prior service credit | — | — | (15.1 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost | 1.4 | 1.4 | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||
Total recognized in other comprehensive income | $ | (22.4 | ) | $ | 1.2 | $ | 6.2 | $ | 1 | $ | (0.7 | ) | $ | (3.6 | ) | ||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (18.3 | ) | $ | 6.9 | $ | 15.3 | $ | 4.5 | $ | 3.3 | $ | 2.4 | ||||||||||
Schedule of weighted average assumptions used to determine benefit information | ' | ||||||||||||||||||||||
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Weighted Average Assumptions: | |||||||||||||||||||||||
Discount rate | 4.9 | % | 4.2 | % | 4.8 | % | 5 | % | 4.3 | % | 4.9 | % | |||||||||||
Expected return on plan assets | 8.3 | % | 8.3 | % | 8.3 | % | |||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | 3 | % | 3 | % | 4 | % | |||||||||||
Initial health care cost trend rate | 7.3 | % | 8 | % | 9 | % | |||||||||||||||||
Ultimate rate | 4.5 | % | 4.5 | % | 5 | % | |||||||||||||||||
Year ultimate rate is reached | 2027 | 2020 | 2016 | ||||||||||||||||||||
Schedule of effect of one percentage point increase or decrease in assumed health care cost trend rate on accumulated post-retirement benefit obligation and net periodic post-retirement benefit cost | ' | ||||||||||||||||||||||
If the assumed health care cost trend rate were increased or decreased by one percentage point, the accumulated post-retirement benefit obligation, as of December 31, 2013, 2012, and 2011 and the net periodic post-retirement benefit cost for 2013, 2012 and 2011, would have increased or decreased as follows (in millions): | |||||||||||||||||||||||
Other Post-retirement Benefits | |||||||||||||||||||||||
One Percentage Point | |||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Effect on total of service and interest cost components | $ | 0.6 | $ | 0.6 | $ | 0.6 | $ | (0.5 | ) | $ | (0.4 | ) | $ | (0.5 | ) | ||||||||
Effect on post-retirement benefit obligation | $ | 7.1 | $ | 6.5 | $ | 6.6 | $ | (5.7 | ) | $ | (5.2 | ) | $ | (5.3 | ) | ||||||||
Schedule of estimated future benefit payments | ' | ||||||||||||||||||||||
The estimated future benefit payments for the next ten years are as follows (in millions): | |||||||||||||||||||||||
Qualified | |||||||||||||||||||||||
Pension | Non-qualified | Post-retirement | |||||||||||||||||||||
Year | Benefits | Pension Benefits | Benefits (1) | ||||||||||||||||||||
2014 | $ | 11 | $ | 2.6 | $ | 2.4 | |||||||||||||||||
2015 | 11.5 | 1.5 | 2.6 | ||||||||||||||||||||
2016 | 11.9 | 0.8 | 2.6 | ||||||||||||||||||||
2017 | 12.3 | 0.2 | 2.7 | ||||||||||||||||||||
2018 | 12.6 | 0.9 | 2.7 | ||||||||||||||||||||
2019-2023 | $ | 66.8 | $ | 2.5 | $ | 15 | |||||||||||||||||
(1) Net of plan participants’ contributions and Medicare D subsidies. | |||||||||||||||||||||||
Schedule of information regarding the entity's participation in the multiemployer pension plans | ' | ||||||||||||||||||||||
EIN/Pension | Pension Protection Act Zone | FIP/RP | Contributions of Matson | Surcharge | Expiration | ||||||||||||||||||
Status as of December 31, | Status | ($ in millions) | Date of | ||||||||||||||||||||
Pending/ | Collective | ||||||||||||||||||||||
Bargaining | |||||||||||||||||||||||
Pension Fund | Plan Number | 2013 | 2012 | Implemented | 2013 | 2012 | 2011 | Imposed | Agreement | ||||||||||||||
Hawaii Stevedoring Multiemployer Retirement Plan | 99-0314293/001 | Yellow | Yellow | Implemented | $ | 2.7 | $ | 2.4 | $ | 2.2 | No | 6/30/14 | |||||||||||
Master, Mates and Pilots Pension Plan | 13-6372630/001 | Green | Green | None | 2.1 | 3.4 | 3 | No | 6/15/2023, 8/15/2023 | ||||||||||||||
Hawaii Terminals Multiemployer Pension Plan | 20-0389370/001 | Yellow | Yellow | Implemented | 5.3 | 5.1 | 5.2 | No | 6/30/14 | ||||||||||||||
MEBA Pension Trust - Defined Benefit Plan | 51-6029896/001 | Green | Green | None | 2.1 | 2.1 | — | No | 8/15/18 | ||||||||||||||
Masters, Mates and Pilots Adjustable Pension Plan | 46-2237700/001 | -1 | -1 | None | 0.8 | — | — | No | 6/15/2023, 8/15/2023 | ||||||||||||||
OCU Trust Pension | 26-1574440/001 | Green | Green | None | 0.1 | 0.1 | 0.1 | No | 6/30/16 | ||||||||||||||
Total | $ | 13.1 | $ | 13.1 | $ | 10.5 | |||||||||||||||||
(1) Information is not available as plans were new in 2013 | |||||||||||||||||||||||
Schedule of years contributions to plan exceeded more than 5 percent of total contributions | ' | ||||||||||||||||||||||
Pension Plan | Year Contributions to Plan Exceeded More than 5 | ||||||||||||||||||||||
Percent of Total Contributions (as of December 31 of | |||||||||||||||||||||||
the Plan’s Year-End) | |||||||||||||||||||||||
Hawaii Stevedoring Multiemployer Retirement Plan | 2013, 2012 and 2011 | ||||||||||||||||||||||
Hawaii Terminals Multiemployer Pension Plan | 2013, 2012 and 2011 | ||||||||||||||||||||||
Masters, Mates and Pilots Pension Plan (1) | 2012 and 2011 | ||||||||||||||||||||||
MEBA Pension Trust - Defined Benefit Plan (1) | 2012 | ||||||||||||||||||||||
(1) As of the date the consolidated financial statements were issued, Form 5500s were not available for the plan years ending in 2013 for this and other plans. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of income tax expense on income from continuing operations | ' | ||||||||||
The income tax expense on income from continuing operations for each of the three years in the period ended December 31, 2013 consisted of the following (in millions): | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (24.3 | ) | $ | 38.9 | $ | 26.5 | ||||
State | (1.0 | ) | 3.2 | 1.8 | |||||||
Total | (25.3 | ) | 42.1 | 28.3 | |||||||
Deferred | 57.5 | (9.1 | ) | (3.2 | ) | ||||||
Provision for income taxes | $ | 32.2 | $ | 33 | $ | 25.1 | |||||
Schedule of reasons why income tax expense differs from amounts computed by applying the statutory federal rate to income from continuing operations | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Computed federal income tax expense | 35 | % | 35 | % | 35 | % | |||||
Discontinued operations | 0 | % | (0.2 | )% | (0.1 | )% | |||||
State income tax | 2.9 | % | 0.6 | % | 2.1 | % | |||||
Deferred tax adjustment | 0 | % | (1.6 | )% | 0 | % | |||||
Separation costs | 0 | % | 2 | % | 0 | % | |||||
Unrecognized tax benefits | (2.1 | )% | 1.7 | % | 0 | % | |||||
Other — net | 1.7 | % | 1.3 | % | (1.6 | )% | |||||
Provision for income taxes | 37.5 | % | 38.8 | % | 35.4 | % | |||||
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | ' | ||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 of each year are as follows (in millions): | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Benefit plans | $ | 41.8 | $ | 54 | |||||||
Insurance reserves | 10 | 9.7 | |||||||||
Allowance for doubtful accounts | 1.3 | 1.7 | |||||||||
Reserves | 6 | 1.7 | |||||||||
Foreign losses and unremitted earnings | 3.1 | — | |||||||||
Alternative minimum tax credits | 1.4 | — | |||||||||
Other | (0.2 | ) | 0.3 | ||||||||
Total deferred tax assets | 63.4 | 67.4 | |||||||||
Deferred tax liabilities: | |||||||||||
Basis differences for property and equipment | 278 | 292.6 | |||||||||
Capital Construction Fund | 83.4 | 3.3 | |||||||||
Joint ventures and other investments | 4.6 | 3.8 | |||||||||
Deferred revenue | 11.4 | 10.9 | |||||||||
Amortization | 3 | 2.1 | |||||||||
Total deferred tax liabilities | 380.4 | 312.7 | |||||||||
Net deferred tax liability | $ | 317 | $ | 245.3 | |||||||
Reconciliation of unrecognized tax benefits | ' | ||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions): | |||||||||||
Balance at December 31, 2010 | $ | 3.5 | |||||||||
Additions for tax positions of prior years | 0.3 | ||||||||||
Additions for tax positions of current year | (0.5 | ) | |||||||||
Reductions for lapse of statute of limitations | (0.7 | ) | |||||||||
Balance at December 31, 2011 | 2.6 | ||||||||||
Additions for tax positions of prior years | 4 | ||||||||||
Reductions for tax positions of current year | 3.7 | ||||||||||
Reductions for tax positions of prior years | (1.0 | ) | |||||||||
Reductions for lapse of statute of limitations | (1.0 | ) | |||||||||
Balance at December 31, 2012 | 8.3 | ||||||||||
Additions for tax positions of prior years | 2 | ||||||||||
Reductions for lapse of statute of limitations | (3.1 | ) | |||||||||
Balance at December 31, 2013 | $ | 7.2 |
SHAREBASED_AWARDS_Tables
SHARE-BASED AWARDS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SHARE-BASED AWARDS | ' | |||||||||||||||||
Valuation Assumptions | ' | |||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2012 | 2011 | |||||||||||||||||
Expected volatility (1) | 31.8 | % | 29.2 | % | ||||||||||||||
Expected term (in years) (2) | 6.1 | 6 | ||||||||||||||||
Risk-free interest rate (3) | 1.2 | % | 2.3 | % | ||||||||||||||
Dividend yield (4) | 2.7 | % | 3.1 | % | ||||||||||||||
(1) Expected volatility was primarily determined using the historical volatility of the Company’s common stock over the expected term, but the Company could also consider future events and other factors that it reasonably concluded marketplace participants might consider. | ||||||||||||||||||
(2) The expected term of the awards represents expectations of future employee exercise and post-vesting termination behavior and was primarily based on historical experience. The Company analyzed various groups of employees and considers expected or unusual trends that would likely affect this assumption. | ||||||||||||||||||
(3) The risk free interest rate was based on U.S. Government treasury yields for periods equal to the expected term of the option on the grant date. | ||||||||||||||||||
(4) The expected dividend yield was based on the Company’s current and historical dividend policy. | ||||||||||||||||||
Stock Option Activity | ' | |||||||||||||||||
Activity in the Company’s stock option plans for the year ended December 31, 2013, was as follows (in thousands, except weighted average exercise price and weighted average contractual life): | ||||||||||||||||||
Weighted | Weighted | |||||||||||||||||
1998 | Average | Average | Aggregate | |||||||||||||||
2007 | 1998 | Director | Total | Exercise | Contractual | Intrinsic | ||||||||||||
Plan | Plan | Plan | Shares | Price | Life | Value | ||||||||||||
Outstanding, January 1, 2013 | 954 | 253 | 146 | 1,353 | $ | 21.15 | ||||||||||||
Granted | — | — | — | — | ||||||||||||||
Exercised | (106 | ) | (43 | ) | (6 | ) | (155 | ) | $ | 20.48 | ||||||||
Forfeited and expired | (4 | ) | (2 | ) | — | (6 | ) | $ | 21.05 | |||||||||
Outstanding, December 31, 2013 | 844 | 208 | 140 | 1,192 | $ | 21.24 | 4.7 | $ | 6,033 | |||||||||
Exercisable, December 31, 2013 | 662 | 208 | 140 | 1,010 | $ | 21.08 | 4.2 | $ | 5,273 | |||||||||
Non-Vested Restricted Stock Unit Activity | ' | |||||||||||||||||
The following table summarizes non-vested restricted stock unit activity through December 31, 2013, (in thousands, except weighted average grant-date fair value amounts): | ||||||||||||||||||
2007 Plan Restricted | Weighted Average Grant- | |||||||||||||||||
Stock Units | Date Fair Value | |||||||||||||||||
Outstanding, January 1, 2013 | 356 | $ | 17.97 | |||||||||||||||
Granted | 370 | 26.66 | ||||||||||||||||
Exercised | (166 | ) | 21.09 | |||||||||||||||
Canceled | (5 | ) | 27.24 | |||||||||||||||
Outstanding, December 31, 2013 | 555 | $ | 25.61 | |||||||||||||||
Summary of Compensation Cost and Other Measures Related to Share-Based Payments | ' | |||||||||||||||||
A summary of compensation cost related to share-based payments for each of the three years in the period ended December 31, 2013, exclusive of A&B related compensation prior to the Separation, is as follows (in millions): | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Share-based expense (net of estimated forfeitures): | ||||||||||||||||||
Stock options | $ | 0.4 | $ | 0.9 | $ | 0.8 | ||||||||||||
Non-vested stock and restricted stock units | 5.5 | 3.1 | 1.9 | |||||||||||||||
Total share-based expense | 5.9 | 4 | 2.7 | |||||||||||||||
Total recognized tax benefit | (2.2 | ) | (1.6 | ) | (0.9 | ) | ||||||||||||
Share-based expense (net of tax) | $ | 3.7 | $ | 2.4 | $ | 1.8 | ||||||||||||
Cash received by Matson upon option exercise | $ | 1.7 | $ | 3.5 | $ | 2 | ||||||||||||
Intrinsic value of options exercised | $ | 1.1 | $ | 5.2 | $ | 1.1 | ||||||||||||
Tax benefit realized upon option exercise | $ | 1.7 | $ | 1.5 | $ | 0.4 | ||||||||||||
Fair value of stock vested | $ | 4.4 | $ | 3.8 | $ | 2.5 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
Commitments and financial arrangements | ' | ||||
Commitments and financial arrangements, excluding lease commitments that are described in Note 9, included the following as of December 31, 2013 (in millions): | |||||
Standby letters of credit (1) | $ | 5.8 | |||
Bonds (2) | $ | 20.6 | |||
Benefit plan withdrawal obligations (3) | $ | 110.6 | |||
(1) Includes $4.6 million in letters of credit, which are required for the Company’s self-insured workers’ compensation programs and its other insurance programs, and $1.2 million in letters of credit used to support various credit enhancement needs. | |||||
(2) Consists of $19.2 million in U.S. Custom bonds, and $1.4 million related to transportation and other matters. | |||||
(3) Represents the withdrawal liabilities as of the most recent valuation dates for multiemployer pension plans, in which the Company is a participant. Management has no present intention of withdrawing from, and does not anticipate the termination of, any of the aforementioned plans. |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
Schedule of related party transactions | ' | |||||||
Prior to the Separation, the related party transactions were as follows (in millions): | ||||||||
Years Ended December 31, | ||||||||
2012 | 2011 | |||||||
Vessel management services income | $ | 2 | $ | 4 | ||||
Lease expense to A&B | (2.1 | ) | (4.4 | ) | ||||
Equipment and repair services expense and other | (1.4 | ) | (2.7 | ) | ||||
Related party expense, net | $ | (1.5 | ) | $ | (3.1 | ) |
REPORTABLE_SEGMENTS_Tables
REPORTABLE SEGMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
REPORTABLE SEGMENTS | ' | ||||||||||
Reportable Segment Information | ' | ||||||||||
Reportable segment information for 2013, 2012, and 2011 is summarized below (in millions): | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenue: | |||||||||||
Ocean transportation | $ | 1,229.40 | $ | 1,189.80 | $ | 1,076.20 | |||||
Logistics | 407.8 | 370.2 | 386.4 | ||||||||
Total revenue | $ | 1,637.20 | $ | 1,560.00 | $ | 1,462.60 | |||||
Operating Income: | |||||||||||
Ocean transportation(1) | $ | 94.3 | $ | 96.6 | $ | 73.7 | |||||
Logistics | 6 | 0.1 | 4.9 | ||||||||
Total operating income | 100.3 | 96.7 | 78.6 | ||||||||
Interest expense, net | (14.4 | ) | (11.7 | ) | (7.7 | ) | |||||
Income from continuing operations before income taxes | 85.9 | 85 | 70.9 | ||||||||
Income taxes | (32.2 | ) | (33.0 | ) | (25.1 | ) | |||||
Income from continuing operations | 53.7 | 52 | 45.8 | ||||||||
Discontinued operations | — | (6.1 | ) | (11.6 | ) | ||||||
Net income | $ | 53.7 | $ | 45.9 | $ | 34.2 | |||||
(1) The ocean transportation segment includes $(2.0) million, $3.2 million, and $8.6 million of equity in (loss) income from its Terminal Joint Venture investment in SSAT for 2013, 2012, and 2011, respectively. | |||||||||||
As of December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
As of December 31: | |||||||||||
Identifiable Assets: | |||||||||||
Ocean transportation(2) | $ | 1,168.60 | $ | 1,097.20 | $ | 1,083.90 | |||||
Logistics | 79.7 | 77.1 | 76.4 | ||||||||
Other(3) | — | — | 1,384.00 | ||||||||
Total assets | $ | 1,248.30 | $ | 1,174.30 | $ | 2,544.30 | |||||
Capital Expenditures: | |||||||||||
Ocean transportation | $ | 33.8 | $ | 37 | $ | 44.2 | |||||
Logistics | 1.4 | 1.1 | 3 | ||||||||
Total capital expenditures | $ | 35.2 | $ | 38.1 | $ | 47.2 | |||||
Depreciation and Amortization from Continuing Operations: | |||||||||||
Ocean transportation | $ | 66.4 | $ | 69.1 | $ | 68.4 | |||||
Logistics | 3.3 | 3.4 | 3.2 | ||||||||
Total depreciation and amortization | $ | 69.7 | $ | 72.5 | $ | 71.6 | |||||
(2) The ocean transportation segment includes $57.6 million, $59.6 million, and $56.5 million related to its investment in SSAT as of December 31, 2013, 2012, and 2011, respectively. | |||||||||||
(3) Includes assets related to discontinued operations from A&B and CLX2 of $1.4 billion as of December 31, 2011. |
QUARTERLY_INFORMATION_Unaudite1
QUARTERLY INFORMATION (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
QUARTERLY INFORMATION (Unaudited) | ' | |||||||||||||
Schedule of quarterly financial information | ' | |||||||||||||
Segment results by quarter for 2013 and 2012 are listed below (in millions, except per-share amounts): | ||||||||||||||
Quarters During the Year Ended December 31, 2013 | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||
Revenue: | ||||||||||||||
Ocean transportation | $ | 299.9 | $ | 310 | $ | 310.1 | $ | 309.4 | ||||||
Logistics | 94.8 | 106.6 | 104.9 | 101.5 | ||||||||||
Total operating revenue | $ | 394.7 | $ | 416.6 | $ | 415 | $ | 410.9 | ||||||
Operating Income: | ||||||||||||||
Ocean transportation | $ | 18.5 | $ | 34.3 | $ | 25.5 | $ | 16 | ||||||
Logistics | 0.2 | 2.2 | 1.7 | 1.9 | ||||||||||
Total operating income | 18.7 | 36.5 | 27.2 | 17.9 | ||||||||||
Interest Expense | (3.7 | ) | (3.6 | ) | (3.6 | ) | (3.5 | ) | ||||||
Income From Continuing Operations before Income Taxes | 15 | 32.9 | 23.6 | 14.4 | ||||||||||
Income tax expense | (5.9 | ) | (12.8 | ) | (6.4 | ) | (7.1 | ) | ||||||
Income From Continuing Operations | 9.1 | 20.1 | 17.2 | 7.3 | ||||||||||
Net Income (Loss) from Discontinued Operations Net of Income taxes (1) | — | — | — | — | ||||||||||
Net Income | $ | 9.1 | $ | 20.1 | $ | 17.2 | $ | 7.3 | ||||||
Income From Continuing Operations | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Diluted | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Net Income | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Diluted | $ | 0.21 | $ | 0.47 | $ | 0.4 | $ | 0.17 | ||||||
Quarters During the Year Ended December 31, 2012 | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||
Revenue: | ||||||||||||||
Ocean transportation | $ | 279.5 | $ | 299.5 | $ | 307.1 | $ | 303.7 | ||||||
Logistics | 86.6 | 94.7 | 94.3 | 94.6 | ||||||||||
Total operating revenue | $ | 366.1 | $ | 394.2 | $ | 401.4 | $ | 398.3 | ||||||
Operating Income (loss): | ||||||||||||||
Ocean transportation | $ | 5.8 | $ | 31.2 | $ | 32.9 | $ | 26.7 | ||||||
Logistics | 0.3 | 1.3 | 1.3 | (2.8 | ) | |||||||||
Total operating income | 6.1 | 32.5 | 34.2 | 23.9 | ||||||||||
Interest Expense | (2.0 | ) | (1.9 | ) | (4.0 | ) | (3.8 | ) | ||||||
Income From Continuing Operations before Income Taxes | 4.1 | 30.6 | 30.2 | 20.1 | ||||||||||
Income tax expense | (2.1 | ) | (15.3 | ) | (11.2 | ) | (4.4 | ) | ||||||
Income From Continuing Operations | 2 | 15.3 | 19 | 15.7 | ||||||||||
Net Income (Loss) from Discontinued Operations Net of Income taxes (1) | 1.4 | (7.5 | ) | 0.1 | (0.1 | ) | ||||||||
Net Income | $ | 3.4 | $ | 7.8 | $ | 19.1 | $ | 15.6 | ||||||
Income From Continuing Operations | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.05 | $ | 0.36 | $ | 0.45 | $ | 0.37 | ||||||
Diluted | $ | 0.05 | $ | 0.36 | $ | 0.45 | $ | 0.37 | ||||||
Net Income | ||||||||||||||
Earnings Per Share: | ||||||||||||||
Basic | $ | 0.08 | $ | 0.18 | $ | 0.45 | $ | 0.37 | ||||||
Diluted | $ | 0.08 | $ | 0.18 | $ | 0.45 | $ | 0.36 | ||||||
(1) See Note 3 for discussion on discontinued operations. | ||||||||||||||
DESCRIPTION_OF_THE_BUSINESS_De
DESCRIPTION OF THE BUSINESS (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jun. 29, 2012 | Jun. 08, 2012 | Dec. 01, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||||
DESCRIPTION OF THE BUSINESS | ' | ' | ' | ' | ' |
Number of vessels owned | ' | ' | ' | 18 | ' |
Number of chartered vessels | ' | ' | ' | 3 | ' |
Separation costs | ' | ' | ' | ' | $8.60 |
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 to Matnav and numerous carriers | ' | ' | ' | 6 | ' |
Alexander & Baldwin | ' | ' | ' | ' | ' |
DESCRIPTION OF THE BUSINESS | ' | ' | ' | ' | ' |
Number of publicly traded companies to be created after separation | ' | ' | 2 | ' | ' |
Jones Act requirement to maintain status as U.S. citizen, maximum ownership interest permitted by non-U.S. citizens (as a percent) | ' | ' | ' | 22.00% | ' |
Number of shares of common stock of A&B received for each share upon separation | 1 | ' | ' | ' | ' |
Maximum period during which services are to be provided under Transition Services Agreement | ' | '24 months | ' | ' | ' |
Capital contribution to A&B | ' | ' | ' | ' | 155.7 |
Separation costs | ' | ' | ' | ' | 8.6 |
Capitalized debt financing costs | ' | ' | ' | ' | 1.9 |
Total cash outflow related to the Separation | ' | ' | ' | ' | $166.20 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and Cash Equivalents | ' | ' | ' |
Outstanding checks in excess of funds on deposits | $19.80 | $19.60 | ' |
Accounts Receivable | ' | ' | ' |
Deposits to the CCF by way of assigned eligible accounts receivable | 112 | ' | ' |
Allowance for doubtful accounts | ' | ' | ' |
Balance at Beginning of year | 4.7 | 5.3 | 6.1 |
Expense | 0.6 | 0.7 | ' |
Write-offs and Other | -1.2 | -1.3 | -0.8 |
Balance at End of Year | 4.1 | 4.7 | 5.3 |
Prepaid and Other Assets: | ' | ' | ' |
Prepaid expenses and other assets includes diesel and heavy fuel oil expense that is primarily aboard the company's vessels | 13.8 | 17.9 | ' |
Carrying value | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Cash and cash equivalents | 114.5 | 19.9 | ' |
Accounts and notes receivable, net | 182.3 | 174.7 | ' |
Variable rate debt | ' | 24 | ' |
Fixed rate debt | 286.1 | 295.1 | ' |
Fair value | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Cash and cash equivalents | 114.5 | 19.9 | ' |
Accounts and notes receivable, net | 182.3 | 174.7 | ' |
Variable rate debt | ' | 24 | ' |
Fixed rate debt | 292.7 | 316.8 | ' |
Fair value | Quoted Prices in Active Markets (Level 1) | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Cash and cash equivalents | 114.5 | 19.9 | ' |
Fair value | Significant Observable Inputs (Level 2) | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Accounts and notes receivable, net | 182.3 | 174.7 | ' |
Variable rate debt | ' | 24 | ' |
Fixed rate debt | $292.70 | $316.80 | ' |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
vessel | |||
item | |||
Impairment of Investment | ' | ' | ' |
Impairment charges related to investment in Terminal joint venture | $0 | $0 | $0 |
Impairment of Vessels and Equipment | ' | ' | ' |
Impairment charges of vessels and equipment | 0 | 0 | 0 |
Dry-docking | ' | ' | ' |
Number of dry-docking inspections to be made within a specified period | 2 | ' | ' |
Period within which number of specified dry-docking inspections to be made | '5 years | ' | ' |
Number of non-U.S. flag vessels in operations | 4 | ' | ' |
Number of non-U.S. flag vessels owned | 1 | ' | ' |
Number of non-U.S. flag vessels under bareboat charter | 1 | ' | ' |
Number of non-U.S. flag vessels under time charter | 2 | ' | ' |
Dry-dock interval, minimum | '2 years | ' | ' |
Dry-dock interval, maximum | '5 years | ' | ' |
Deferred dry-docking costs | $56.90 | $66.30 | ' |
Vessels | Minimum | ' | ' | ' |
Depreciation | ' | ' | ' |
Useful life | '5 years | ' | ' |
Vessels | Maximum | ' | ' | ' |
Depreciation | ' | ' | ' |
Useful life | '40 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Depreciation | ' | ' | ' |
Useful life | '2 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Depreciation | ' | ' | ' |
Useful life | '20 years | ' | ' |
Terminal Facilities | Minimum | ' | ' | ' |
Depreciation | ' | ' | ' |
Useful life | '2 years | ' | ' |
Terminal Facilities | Maximum | ' | ' | ' |
Depreciation | ' | ' | ' |
Useful life | '35 years | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible assets | ' | ' | ' |
Impairment on long lived intangible assets | $0 | $2.10 | $0 |
Impairments of goodwill | 0 | 0 | 0 |
Comprehensive Income (Loss): | ' | ' | ' |
Other comprehensive income (loss) net of tax (expense) benefit | 22 | -0.5 | -9.9 |
Accumulated other comprehensive loss | -23.5 | -45.5 | ' |
Amortization of deferred pension, post-retirement costs and non-qualified plans | $22.60 | $44.60 | ' |
Customer lists | Maximum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Expected useful lives | '13 years | ' | ' |
Trademarks | Maximum | ' | ' | ' |
Intangible assets | ' | ' | ' |
Expected useful lives | '13 years | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $7.30 | $17.20 | $20.10 | $9.10 | $15.70 | $19 | $15.30 | $2 | $53.70 | $52 | $45.80 |
Loss from discontinued operations | ' | ' | ' | ' | -0.1 | 0.1 | -7.5 | 1.4 | 0 | -6.1 | -11.6 |
Net Income | $7.30 | $17.20 | $20.10 | $9.10 | $15.60 | $19.10 | $7.80 | $3.40 | $53.70 | $45.90 | $34.20 |
Weighted Average Common Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations, Basic (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 42.7 | 42.3 | 41.6 |
Loss from discontinued operations, Basic (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 42.7 | 42.3 | 41.6 |
Effect of Dilutive Securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 0.4 | 0.4 |
Income from continuing operations, Diluted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 43.1 | 42.7 | 42 |
Loss from discontinued operations, Diluted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 43.1 | 42.7 | 42 |
Per Common Share Amount, Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.37 | $0.45 | $0.36 | $0.05 | $1.26 | $1.23 | $1.10 |
Loss from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.14) | ($0.28) |
Net income (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.37 | $0.45 | $0.18 | $0.08 | $1.26 | $1.09 | $0.82 |
Per Common Share Amount, Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.37 | $0.45 | $0.36 | $0.05 | $1.25 | $1.22 | $1.09 |
Loss from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.14) | ($0.28) |
Net income (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.36 | $0.45 | $0.18 | $0.08 | $1.25 | $1.08 | $0.81 |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share ("EPS") | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.5 | 1.4 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jul. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
CLX2 Service | CLX2 Service | CLX2 Service | CLX2 Service | CLX2 Service | CLX2 Service | CLX2 Service | A&B | A&B | ||||||||
vessel | Container and charter liabilities | Container and charter liabilities | Other contractual liabilities | Other contractual liabilities | ||||||||||||
vessel | vessel | |||||||||||||||
Loss from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income | ' | ' | ' | ' | ' | ' | ' | ' | $92.70 | ' | ' | ' | ' | ' | $116.40 | $274.70 |
Expenses | ' | ' | ' | ' | ' | ' | ' | -4.4 | -149.4 | ' | ' | ' | ' | ' | -118.1 | -243.5 |
Tax expense | ' | ' | ' | ' | ' | ' | ' | 1.6 | 21.1 | ' | ' | ' | ' | ' | -1.6 | -7.2 |
(Loss) income from A&B | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3.3 | 24 |
Loss from discontinued operations (net of tax) | -0.1 | 0.1 | -7.5 | 1.4 | 0 | -6.1 | -11.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of vessels used in discontinued operation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' |
Number of vessels expected to be sub-chartered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of vessels returned to lessors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Duration of charter contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' |
Future liability | ' | ' | ' | ' | ' | ' | ' | $0 | $4.90 | ' | ' | $4.80 | ' | $0.10 | ' | ' |
DISCONTINUED_OPERATIONS_Detail1
DISCONTINUED OPERATIONS (Details2) (CLX2 Service, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Liabilities of Disposal Group (Including Discontinued Operation) | ' |
Balance, beginning of period | $4.90 |
Expenses incurred | 4.5 |
Amounts paid | -9.4 |
Balance, end of period | 0 |
Container and charter liabilities | ' |
Liabilities of Disposal Group (Including Discontinued Operation) | ' |
Balance, beginning of period | 4.8 |
Expenses incurred | 4.5 |
Amounts paid | -9.3 |
Other contractual liabilities | ' |
Liabilities of Disposal Group (Including Discontinued Operation) | ' |
Balance, beginning of period | 0.1 |
Expenses incurred | 0 |
Amounts paid | ($0.10) |
INVESTMENT_IN_TERMINAL_JOINT_V2
INVESTMENT IN TERMINAL JOINT VENTURE (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments in affiliates | ' | ' | ' |
Investment in terminal joint venture | $57.60 | $59.60 | ' |
Financial information for equity method investment | ' | ' | ' |
The Company's share of net (loss) income | -2 | 3.2 | 8.6 |
SSAT | Ocean Transportation | ' | ' | ' |
Investments in affiliates | ' | ' | ' |
Ownership interest accounted in terminal joint venture (as a percent) | 35.00% | ' | ' |
Cost of services from transactions with unconsolidated affiliate | 164.3 | 163.8 | 175.2 |
Dividends and distributions from the unconsolidated terminal venture | 0 | 0 | 5.3 |
Accounts payable and accrued liabilities | 15.3 | 15.7 | ' |
Financial information for equity method investment | ' | ' | ' |
Current assets | 73.5 | 90.8 | ' |
Noncurrent assets | 137.1 | 139.2 | ' |
Total assets | 210.6 | 230 | ' |
Current liabilities | 43.2 | 55.9 | ' |
Noncurrent liabilities | 15.7 | 14.7 | ' |
Equity | 151.7 | 159.4 | ' |
Total liabilities | 210.6 | 230 | ' |
Operating revenue | 498.4 | 503.9 | 578.6 |
Operating costs and expenses | 517.4 | 506.4 | 571.7 |
Operating (loss) income | -19 | -2.5 | 6.9 |
Net (loss) income | -5.7 | 9.5 | 26.3 |
The Company's share of net (loss) income | ($2) | $3.20 | $8.60 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property and equipment | ' | ' | ' |
Cost | $1,794.80 | $1,770.80 | ' |
Accumulated Depreciation | 1,059.40 | 1,008.30 | ' |
Property and equipment, net | 735.4 | 762.5 | ' |
Depreciation Expense | 67.4 | 70.6 | 69.4 |
Property and equipment subject to capital leases | 3.1 | ' | ' |
Amortization expenses | 0.3 | ' | ' |
Vessels | ' | ' | ' |
Property and equipment | ' | ' | ' |
Cost | 1,260.20 | 1,249.10 | ' |
Accumulated Depreciation | 718.1 | 679.4 | ' |
Property and equipment, net | 542.1 | 569.7 | ' |
Containers and equipment | ' | ' | ' |
Property and equipment | ' | ' | ' |
Cost | 470.6 | 468.5 | ' |
Accumulated Depreciation | 310.4 | 300.1 | ' |
Property and equipment, net | 160.2 | 168.4 | ' |
Terminal facilities and other property | ' | ' | ' |
Property and equipment | ' | ' | ' |
Cost | 38.9 | 38.5 | ' |
Accumulated Depreciation | 30.9 | 28.8 | ' |
Property and equipment, net | 8 | 9.7 | ' |
Construction in progress | ' | ' | ' |
Property and equipment | ' | ' | ' |
Cost | 25.1 | 14.7 | ' |
Property and equipment, net | $25.10 | $14.70 | ' |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details 2) (APSI, Aloha-class dual-fuel capable containership, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
vessel | vessel | |
APSI | Aloha-class dual-fuel capable containership | ' | ' |
Property | ' | ' |
Number of 3,600-TEU Aloha-class dual-fuel capable containerships to be constructed | 2 | 2 |
Cost for construction of containerships, including preparation of vessels for service | $418 | ' |
Initial payment under the agreement | ' | 8.4 |
Unrecorded unconditional purchase obligation due in year 2015 and 2016 | ' | $92 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in the Company's goodwill | ' | ' | ' |
Balance at the beginning of the period | $27 | ' | $27 |
Additions | 0.4 | ' | ' |
Balance at the end of the period | 27.4 | ' | 27 |
Accumulated impairment related to goodwill | 0 | 0 | ' |
Logistics | ' | ' | ' |
Changes in the Company's goodwill | ' | ' | ' |
Balance at the beginning of the period | ' | 27 | 27 |
Balance at the end of the period | 27 | 27 | 27 |
Ocean Transportation | ' | ' | ' |
Changes in the Company's goodwill | ' | ' | ' |
Additions | 0.4 | ' | ' |
Balance at the end of the period | $0.40 | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible assets | ' | ' | ' |
Gross Cost | $14.30 | $13.50 | ' |
Accumulated Amortization | -10.5 | -9.6 | ' |
Net Book Value | 3.8 | 3.9 | ' |
Aggregate intangible asset amortization | 0.8 | 0.7 | 0.9 |
Estimated amortization expenses related to intangibles | ' | ' | ' |
2014 | 0.8 | ' | ' |
2015 | 0.5 | ' | ' |
2016 | 0.5 | ' | ' |
2017 | 0.5 | ' | ' |
2018 | 0.4 | ' | ' |
Thereafter | 1.1 | ' | ' |
Net Book Value | 3.8 | 3.9 | ' |
Customer lists | ' | ' | ' |
Intangible assets | ' | ' | ' |
Gross Cost | 10.4 | 9.7 | ' |
Accumulated Amortization | -6.8 | -6.2 | ' |
Net Book Value | 3.6 | 3.5 | ' |
Estimated amortization expenses related to intangibles | ' | ' | ' |
Net Book Value | 3.6 | 3.5 | ' |
Tradenames | ' | ' | ' |
Intangible assets | ' | ' | ' |
Gross Cost | 3.9 | 3.8 | ' |
Accumulated Amortization | -3.7 | -3.4 | ' |
Net Book Value | 0.2 | 0.4 | ' |
Estimated amortization expenses related to intangibles | ' | ' | ' |
Net Book Value | $0.20 | $0.40 | ' |
CAPITAL_CONSTRUCTION_FUND_Deta
CAPITAL CONSTRUCTION FUND (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CAPITAL CONSTRUCTION FUND | ' | ' | ' |
Maximum period to commit fund deposits for qualified purposes | '25 years | ' | ' |
Period over which deposits will be treated as non-qualified withdrawals | '5 years | ' | ' |
Deposits into Capital Construction Fund | ($4.40) | ($4.40) | ($4.40) |
Eligible accounts receivable assigned to the Capital Construction Fund | 111.8 | ' | ' |
Qualified withdrawals from the CCF | 4.4 | ' | ' |
Deposits to the CCF by way of assigned eligible accounts receivable | $112 | ' | ' |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2003 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2004 | Dec. 31, 2013 | 31-May-05 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 |
Matson South Pacific | 5.79%, payable through 2020 | 5.79%, payable through 2020 | 3.66%, payable through 2023 | 3.66%, payable through 2023 | 4.16%, payable through 2027 | 4.16%, payable through 2027 | 4.31%, payable through 2032 | 4.31%, payable through 2032 | 5.34% payable through 2028 | 5.34% payable through 2028 | 5.34% payable through 2028 | 5.27% payable through 2029 | 5.27% payable through 2029 | 5.27% payable through 2029 | 4.79% payable (Series B Notes) | 4.79% payable (Series B Notes) | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured debt | Unsecured debt | Unsecured debt | Unsecured debt | Unsecured debt | Unsecured debt, tranche maturing in 2023 | Unsecured debt, tranche maturing in 2027 | Unsecured debt, tranche maturing in 2032 | Secured debt | Senior unsecured long-term debt | Senior unsecured long-term debt | Senior unsecured long-term debt | Senior unsecured long-term debt | Senior unsecured long-term debt | Senior unsecured long-term debt | |||
item | item | MatNav | Alexander & Baldwin | Alexander & Baldwin | Alexander & Baldwin | Minimum | Maximum | tranches | 2015 through 2016 | 2017 through mid-year 2023 | Mid-year 2023 through mid-year 2027 | After mid-year 2027 | Subsequent event | 2021 | 2022 and 2023 | 2024 to 2027 | 2028 | Starting in 2029, and thereafter until 2044 | ||||||||||||||||||||||||||
Scenario forecast | Scenario forecast | Scenario forecast | Scenario forecast | Scenario forecast | Scenario forecast | Scenario forecast | Scenario forecast | Scenario forecast | ||||||||||||||||||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital leases | $2.40 | ' | $2.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 286.1 | 319.1 | ' | 45.5 | 52.5 | 77.5 | 77.5 | 55 | 55 | 37.5 | 37.5 | 33 | 35.2 | ' | 35.2 | 37.4 | ' | ' | ' | ' | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion | -12.5 | -16.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | 273.6 | 302.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | 55 | ' | 105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170 | ' | ' | ' | ' | 77.5 | 55 | 37.5 | ' | 100 | ' | ' | ' | ' | ' |
Number of tranches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 5.79% | 5.79% | 3.66% | 3.66% | 4.16% | 4.16% | 4.31% | 4.31% | 5.34% | 5.34% | 5.34% | 5.27% | 5.27% | 5.27% | ' | 4.79% | ' | 1.69% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.66% | 4.16% | 4.31% | ' | 4.35% | ' | ' | ' | ' | ' |
Weighted average coupon rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.97% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | '14 years 6 months | ' | ' | ' | ' | ' |
Semi-annual payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' | ' | 1.1 | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.6 | 8.4 | 3.8 | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' |
Release of MV Manulani as security for debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56 | ' | ' | ' | ' | ' | ' |
Annual principal payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 7.5 | 10 | 8 | 2 |
Number of semi-annual payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | 375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, minimum (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.21% | 0.44% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.92% | 1.91% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | 5.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured Debt | 68.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, required ratio of debt to consolidated EBITDA | 1.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of consolidated EBITDA to interest expense | 12.28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, required principal amount of priority debt as a percentage of consolidated tangible assets | 5.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covenant, required principal amount of priority debt (excluding Title XI) as a percentage of consolidated tangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 12.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 21.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 20.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 28.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 28.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 174.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $286.10 | $319.10 | ' | $45.50 | $52.50 | $77.50 | $77.50 | $55 | $55 | $37.50 | $37.50 | $33 | $35.20 | ' | $35.20 | $37.40 | ' | ' | ' | ' | $24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LEASES_Details
LEASES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases | ' | ' | ' |
Rent expense | $58.20 | $52.30 | $49.60 |
Rent expenses for short-term and cancelable equipment | 20.5 | 17.8 | 38.4 |
Future minimum payments under operating leases | ' | ' | ' |
2014 | 22 | ' | ' |
2015 | 18.1 | ' | ' |
2016 | 11.9 | ' | ' |
2017 | 8 | ' | ' |
2018 | 2.8 | ' | ' |
Thereafter | 7.1 | ' | ' |
Total minimum lease payments | 69.9 | ' | ' |
Minimum | ' | ' | ' |
Leases | ' | ' | ' |
Term of existing operating leases | '1 year | ' | ' |
Maximum | ' | ' | ' |
Leases | ' | ' | ' |
Term of existing operating leases | '50 years | ' | ' |
Terminal Facility | ' | ' | ' |
Leases | ' | ' | ' |
Rent expense | $35.60 | $31.70 | $26.50 |
PENSION_AND_POST_RETIREMENT_PL2
PENSION AND POST RETIREMENT PLANS (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
plan | ||
PENSION AND POST RETIREMENT PLANS | ' | ' |
Number of single-employer defined benefit pension funded plans | 2 | ' |
Employee benefit plans | ' | ' |
Target allocation (as a percent) | 100.00% | ' |
Weighted-average asset allocations (as a percent) | 100.00% | 100.00% |
Pension Benefits | ' | ' |
Employee benefit plans | ' | ' |
One year returns (losses) on plan assets (as a percent) | 21.10% | ' |
Three year returns (losses) on plan assets (as a percent) | 10.20% | ' |
Five year returns (losses) on plan assets (as a percent) | 12.40% | ' |
Long-term average return on plan assets since inception (as a percent) | 8.80% | ' |
Pension Benefits | Domestic equity securities | ' | ' |
Employee benefit plans | ' | ' |
Target allocation (as a percent) | 53.00% | ' |
Weighted-average asset allocations (as a percent) | 58.00% | 56.00% |
Pension Benefits | International equity securities | ' | ' |
Employee benefit plans | ' | ' |
Target allocation (as a percent) | 15.00% | ' |
Weighted-average asset allocations (as a percent) | 15.00% | 14.00% |
Pension Benefits | Debt securities | ' | ' |
Employee benefit plans | ' | ' |
Target allocation (as a percent) | 22.00% | ' |
Weighted-average asset allocations (as a percent) | 18.00% | 19.00% |
Pension Benefits | Real estate | ' | ' |
Employee benefit plans | ' | ' |
Target allocation (as a percent) | 5.00% | ' |
Weighted-average asset allocations (as a percent) | 5.00% | 5.00% |
Pension Benefits | Other and cash | ' | ' |
Employee benefit plans | ' | ' |
Target allocation (as a percent) | 5.00% | ' |
Weighted-average asset allocations (as a percent) | 4.00% | 6.00% |
PENSION_AND_POST_RETIREMENT_PL3
PENSION AND POST RETIREMENT PLANS (Details 2) (Pension Benefits, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Fair value of plan assets, by asset category | ' | ' | ' |
Total | $172.80 | $149.20 | $126 |
Total | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 172.8 | 149.2 | ' |
Total | Cash | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 6.9 | 8.3 | ' |
Total | U.S. large-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 64.2 | 53.8 | ' |
Total | U.S. mid- and small-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 35.7 | 29.8 | ' |
Total | International large-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 19 | 16.7 | ' |
Total | International small-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 7.2 | 4.3 | ' |
Total | U.S. Treasuries | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 0.6 | 0.8 | ' |
Total | Municipal bonds | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 0.1 | 0.2 | ' |
Total | Investment grade U.S. corporate bonds | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 1.9 | 2 | ' |
Total | High-yield U.S. corporate bonds | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 6.7 | 6.4 | ' |
Total | Emerging markets fixed income | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 8.9 | 4.3 | ' |
Total | Mortgage-backed securities | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 12.7 | 14 | ' |
Total | Real estate partnerships interests | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 8.6 | 7.8 | ' |
Total | Private equity partnership interests | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 0.3 | 0.8 | ' |
Quoted Prices in Active Markets (Level 1) | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 141.9 | 117.2 | ' |
Quoted Prices in Active Markets (Level 1) | Cash | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 6.9 | 8.3 | ' |
Quoted Prices in Active Markets (Level 1) | U.S. large-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 64.2 | 53.8 | ' |
Quoted Prices in Active Markets (Level 1) | U.S. mid- and small-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 35.7 | 29.8 | ' |
Quoted Prices in Active Markets (Level 1) | International large-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 19 | 16.7 | ' |
Quoted Prices in Active Markets (Level 1) | International small-cap | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 7.2 | 4.3 | ' |
Quoted Prices in Active Markets (Level 1) | Emerging markets fixed income | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 8.9 | 4.3 | ' |
Significant Observable Inputs (Level 2) | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 22 | 23.4 | ' |
Significant Observable Inputs (Level 2) | U.S. Treasuries | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 0.6 | 0.8 | ' |
Significant Observable Inputs (Level 2) | Municipal bonds | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 0.1 | 0.2 | ' |
Significant Observable Inputs (Level 2) | Investment grade U.S. corporate bonds | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 1.9 | 2 | ' |
Significant Observable Inputs (Level 2) | High-yield U.S. corporate bonds | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 6.7 | 6.4 | ' |
Significant Observable Inputs (Level 2) | Mortgage-backed securities | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 12.7 | 14 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 8.9 | 8.6 | ' |
Significant Unobservable Inputs (Level 3) | Real estate partnerships interests | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | 8.6 | 7.8 | ' |
Significant Unobservable Inputs (Level 3) | Private equity partnership interests | ' | ' | ' |
Fair value of plan assets, by asset category | ' | ' | ' |
Total | $0.30 | $0.80 | ' |
PENSION_AND_POST_RETIREMENT_PL4
PENSION AND POST RETIREMENT PLANS (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Changes in plan assets | ' | ' | ' |
Balance at the beginning of the period | $8.60 | $8.60 | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Assets held at the reporting date | 0.7 | 1.7 | ' |
Assets sold during the period | 0.4 | 0.1 | ' |
Purchases, sales and settlements, net | -0.8 | -1.8 | ' |
Balance at the end of the period | 8.9 | 8.6 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Real Estate | ' | ' | ' |
Changes in plan assets | ' | ' | ' |
Balance at the beginning of the period | 7.8 | 7.1 | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Assets held at the reporting date | 0.9 | 1.6 | ' |
Assets sold during the period | 0.3 | -0.2 | ' |
Purchases, sales and settlements, net | -0.4 | -0.7 | ' |
Balance at the end of the period | 8.6 | 7.8 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Private Equity | ' | ' | ' |
Changes in plan assets | ' | ' | ' |
Balance at the beginning of the period | 0.8 | 0.8 | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Assets held at the reporting date | -0.2 | 0.1 | ' |
Assets sold during the period | 0.1 | 0.3 | ' |
Purchases, sales and settlements, net | -0.4 | -0.4 | ' |
Balance at the end of the period | 0.3 | 0.8 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Insurance | ' | ' | ' |
Changes in plan assets | ' | ' | ' |
Balance at the beginning of the period | ' | 0.7 | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Purchases, sales and settlements, net | ' | -0.7 | ' |
Pension Benefits | ' | ' | ' |
Changes in plan assets | ' | ' | ' |
Balance at the beginning of the period | 149.2 | 126 | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Balance at the end of the period | 172.8 | 149.2 | 126 |
Employer contribution | 3.5 | 13.3 | 4.4 |
Pension Benefits | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Balance at the end of the period | 8.9 | 8.6 | ' |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Real Estate | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Balance at the end of the period | 8.6 | 7.8 | ' |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Private Equity | ' | ' | ' |
Actual return (loss) on plan assets: | ' | ' | ' |
Balance at the end of the period | $0.30 | $0.80 | ' |
PENSION_AND_POST_RETIREMENT_PL5
PENSION AND POST RETIREMENT PLANS (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at beginning of year | $210.10 | $192.60 | ' |
Service cost | 2.9 | 2.7 | 5.4 |
Interest cost | 8.6 | 9 | 10.7 |
Actuarial (gain) loss | -13.3 | 14.9 | ' |
Benefits paid | -9.8 | -9.1 | ' |
Expenses paid | -0.9 | ' | ' |
Benefit obligation at end of year | 197.5 | 210.1 | 192.6 |
Changes in plan assets | ' | ' | ' |
Balance at the beginning of the period | 149.2 | 126 | ' |
Actual return on plan assets | 30.8 | 19 | ' |
Employer contribution | 3.5 | 13.3 | 4.4 |
Benefits paid | -9.8 | -9.1 | ' |
Expenses paid | -0.9 | ' | ' |
Balance at the end of the period | 172.8 | 149.2 | 126 |
Funded Status and Recognized Liability | -24.7 | -60.9 | ' |
Qualified Plans | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at end of year | 197.5 | 210.1 | ' |
Changes in plan assets | ' | ' | ' |
Balance at the end of the period | 172.8 | 149.2 | ' |
Other Post-retirement Benefits | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at beginning of year | 49.2 | 48.5 | ' |
Service cost | 1.1 | 1 | 0.9 |
Interest cost | 2.1 | 2.3 | 3 |
Plan participants' contributions | 0.9 | 1.3 | ' |
Actuarial (gain) loss | 2 | -0.6 | ' |
Benefits paid | -3.2 | -3.3 | ' |
Benefit obligation at end of year | 52.1 | 49.2 | 48.5 |
Changes in plan assets | ' | ' | ' |
Plan participants' contributions | 0.9 | 1.3 | ' |
Employer contribution | 2.3 | 2 | ' |
Benefits paid | -3.2 | -3.3 | ' |
Funded Status and Recognized Liability | ($52.10) | ($49.20) | ' |
PENSION_AND_POST_RETIREMENT_PL6
PENSION AND POST RETIREMENT PLANS (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee benefit plans | ' | ' | ' |
Non-current liabilities | ($74.40) | ($108) | ' |
Pension Benefits | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Non-current liabilities | -24.7 | -60.9 | ' |
Total | -24.7 | -60.9 | ' |
Net loss (net of taxes) | 32 | 55.8 | ' |
Prior service cost (net of taxes) | -12 | -13.4 | ' |
Total | 20 | 42.4 | ' |
Projected benefit obligation | 197.5 | 210.1 | 192.6 |
Fair value of plan assets | 172.8 | 149.2 | 126 |
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 | 0.7 | ' | ' |
Qualified Plans | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Projected benefit obligation | 197.5 | 210.1 | ' |
Accumulated benefit obligation | 197.2 | 209.6 | ' |
Fair value of plan assets | 172.8 | 149.2 | ' |
Other Post-retirement Benefits | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Current liabilities | -2.4 | -2.1 | ' |
Non-current liabilities | -49.7 | -47.1 | ' |
Total | -52.1 | -49.2 | ' |
Net loss (net of taxes) | 1.7 | 0.7 | ' |
Prior service cost (net of taxes) | ' | 0.1 | ' |
Total | 1.7 | 0.8 | ' |
Projected benefit obligation | 52.1 | 49.2 | 48.5 |
Estimated net loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 | $0.60 | ' | ' |
Amortization period of unrecognized gains and losses | '5 years | ' | ' |
PENSION_AND_POST_RETIREMENT_PL7
PENSION AND POST RETIREMENT PLANS (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax) | ' | ' | ' |
Amortization of unrecognized (loss) gain | ($4.70) | ($4.80) | ($3.90) |
Prior service credit | -18.7 | 4.6 | 5.7 |
Amortization of prior service cost | 1.3 | 1.4 | -0.3 |
Pension Benefits | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Service cost | 2.9 | 2.7 | 5.4 |
Interest cost | 8.6 | 9 | 10.7 |
Expected return on plan assets | -11.9 | -10.7 | -11.1 |
Amortization of net loss (gain) | 6.8 | 7 | 4 |
Amortization of prior service cost | -2.3 | -2.3 | 0.1 |
Net periodic benefit cost | 4.1 | 5.7 | 9.1 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax) | ' | ' | ' |
Net loss (gain) | -19.6 | 4 | 23.8 |
Amortization of unrecognized (loss) gain | -4.2 | -4.2 | -2.4 |
Prior service credit | ' | ' | -15.1 |
Amortization of prior service cost | 1.4 | 1.4 | -0.1 |
Total recognized in other comprehensive income | -22.4 | 1.2 | 6.2 |
Total recognized in net periodic benefit cost and other comprehensive income | -18.3 | 6.9 | 15.3 |
Weighted Average Assumptions: | ' | ' | ' |
Discount rate (as a percent) | 4.90% | 4.20% | 4.80% |
Expected return plan assets (as a percent) | 8.30% | 8.30% | 8.30% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 4.00% |
Qualified Pension Plans and Post-retirement Plans | ' | ' | ' |
Total obligation | 197.5 | 210.1 | 192.6 |
Expense associated with plans | 4.1 | 5.7 | 9.1 |
Amounts recognized in accumulated other comprehensive income for net loss, net of tax | 32 | 55.8 | ' |
Amount recognized as prior service credit, net of tax | -12 | -13.4 | ' |
Estimated net loss and prior service credit, net of tax, that will be recognized in net periodic pension cost | 20 | 42.4 | ' |
Non-qualified Pension Plans | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Net periodic benefit cost | 0.6 | 0.3 | 0.8 |
Qualified Pension Plans and Post-retirement Plans | ' | ' | ' |
Number of outside directors covered under the frozen non-qualified pension plan | 2 | ' | ' |
Total obligation | 7.3 | 7.9 | ' |
Discount rate used to determine obligation (as a percent) | 3.20% | ' | ' |
Expense associated with plans | 0.6 | 0.3 | 0.8 |
Amounts recognized in accumulated other comprehensive income for net loss, net of tax | 1.3 | ' | ' |
Amount recognized as prior service credit, net of tax | 0.8 | ' | ' |
Estimated net loss and prior service credit, net of tax, that will be recognized in net periodic pension cost | 0 | ' | ' |
Other Post-retirement Benefits | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Current liabilities | 2.4 | 2.1 | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Service cost | 1.1 | 1 | 0.9 |
Interest cost | 2.1 | 2.3 | 3 |
Amortization of net loss (gain) | 0.3 | 0.6 | 1.9 |
Amortization of prior service cost | ' | 0.1 | 0.2 |
Net periodic benefit cost | 3.5 | 4 | 6 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax) | ' | ' | ' |
Net loss (gain) | 1.2 | -0.4 | -2.5 |
Amortization of unrecognized (loss) gain | -0.2 | -0.3 | -1 |
Amortization of prior service cost | ' | ' | -0.1 |
Total recognized in other comprehensive income | 1 | -0.7 | -3.6 |
Total recognized in net periodic benefit cost and other comprehensive income | 4.5 | 3.3 | 2.4 |
Weighted Average Assumptions: | ' | ' | ' |
Discount rate (as a percent) | 5.00% | 4.30% | 4.90% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 4.00% |
Initial health care cost trend rate (as a percent) | 7.30% | 8.00% | 9.00% |
Ultimate rate (as a percent) | 4.50% | 4.50% | 5.00% |
Effect of one percentage point change in the assumed health care cost trend rates | ' | ' | ' |
Effect of one percentage point increase on total of service and interest cost components | 0.6 | 0.6 | 0.6 |
Effect of one percentage point increase on post-retirement benefit obligation | 7.1 | 6.5 | 6.6 |
Effect of one percentage point decrease on total of service and interest cost components | -0.5 | -0.4 | -0.5 |
Effect of one percentage point decrease on post-retirement benefit obligation | -5.7 | -5.2 | -5.3 |
Qualified Pension Plans and Post-retirement Plans | ' | ' | ' |
Total obligation | 52.1 | 49.2 | 48.5 |
Expense associated with plans | 3.5 | 4 | 6 |
Amounts recognized in accumulated other comprehensive income for net loss, net of tax | 1.7 | 0.7 | ' |
Amount recognized as prior service credit, net of tax | ' | 0.1 | ' |
Estimated net loss and prior service credit, net of tax, that will be recognized in net periodic pension cost | 1.7 | 0.8 | ' |
Non-qualified pension benefits and postretirement benefits | ' | ' | ' |
Employee benefit plans | ' | ' | ' |
Current liabilities | $5 | ' | ' |
PENSION_AND_POST_RETIREMENT_PL8
PENSION AND POST RETIREMENT PLANS (Details 7) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits | ' |
Estimated future benefit payments | ' |
2014 | $11 |
2015 | 11.5 |
2016 | 11.9 |
2017 | 12.3 |
2018 | 12.6 |
2019-2023 | 66.8 |
Non-qualified Pension Benefits | ' |
Estimated future benefit payments | ' |
2014 | 2.6 |
2015 | 1.5 |
2016 | 0.8 |
2017 | 0.2 |
2018 | 0.9 |
2019-2023 | 2.5 |
Post-retirement Benefits | ' |
Estimated future benefit payments | ' |
2014 | 2.4 |
2015 | 2.6 |
2016 | 2.6 |
2017 | 2.7 |
2018 | 2.7 |
2019-2023 | $15 |
PENSION_AND_POST_RETIREMENT_PL9
PENSION AND POST RETIREMENT PLANS (Details 8) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Multiemployer Plans | ' | ' | ' |
Contributions | $13.10 | $13.10 | $10.50 |
Minimum | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Employer matching contribution to MEBA Pension Trust (as a percent) | 11.70% | ' | ' |
Threshold of total contributions for which planned years are disclosed (as a percent) | 5.00% | ' | ' |
Master, Mates and Pilots Adjustable Pension Plan | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Contributions | 0.8 | ' | ' |
Yellow Zone | Hawaii Stevedoring Multiemployer Retirement Plan | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Contributions | 2.7 | 2.4 | 2.2 |
Yellow Zone | Hawaii Terminals Multiemployer Pension Plan | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Contributions | 5.3 | 5.1 | 5.2 |
Green Zone | Master, Mates and Pilots Adjustable Pension Plan | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Contributions | 2.1 | 3.4 | 3 |
Green Zone | MEBA Pension Trust - Defined Benefit Plan | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Contributions | 2.1 | 2.1 | ' |
Green Zone | OCU Trust Pension | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Contributions | 0.1 | 0.1 | 0.1 |
Multiemployer Benefit Pension Plans | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Number of multiemployer plans | 10 | ' | ' |
Number of collective-bargaining agreements based upon vessels that require contributions | 2 | ' | ' |
Multiemployer Plan Withdrawal Obligation | 110.6 | ' | ' |
Multiemployer Benefit Pension Plans | Contract A | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Number of vessels covered | 13 | ' | ' |
Multiemployer Benefit Pension Plans | Contract B | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Number of vessels covered | 1 | ' | ' |
Multiemployer Benefit Pension Plans | Red Zone | Maximum | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Funded status of multiemployer plan (as a percent) | 65.00% | ' | ' |
Multiemployer Benefit Pension Plans | Yellow Zone | Maximum | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Funded status of multiemployer plan (as a percent) | 80.00% | ' | ' |
Multiemployer Benefit Pension Plans | Green Zone | Minimum | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Funded status of multiemployer plan (as a percent) | 80.00% | ' | ' |
Multiemployer Benefit Postretirement Plans | ' | ' | ' |
Multiemployer Plans | ' | ' | ' |
Number of multiemployer plans | 7 | ' | ' |
Contributions | $10.50 | $10.80 | $10.70 |
Recovered_Sheet1
PENSION AND POST RETIREMENT PLANS (Details 9) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
401(k) plan | ' | ' | ' |
Defined Contribution Plans | ' | ' | ' |
Employer matching contribution (as a percent) | 4.00% | ' | ' |
Employer matching contribution expenses | $1.60 | $1.60 | $1.50 |
Profit sharing plan | ' | ' | ' |
Defined Contribution Plans | ' | ' | ' |
Profit sharing expense recorded | $1.20 | $1.20 | $0 |
Profit sharing plan | Maximum | ' | ' | ' |
Defined Contribution Plans | ' | ' | ' |
Contribution percentage | 3.00% | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ($24.30) | $38.90 | $26.50 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 3.2 | 1.8 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | -25.3 | 42.1 | 28.3 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 57.5 | -9.1 | -3.2 |
Provision for income taxes | 7.1 | 6.4 | 12.8 | 5.9 | 4.4 | 11.2 | 15.3 | 2.1 | 32.2 | 33 | 25.1 |
Difference of Income tax expense from amounts computed by applying the statutory federal rate to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computed federal income tax expense (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Discontinued operations (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | -0.20% | -0.10% |
State income tax (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 2.90% | 0.60% | 2.10% |
Deferred tax adjustment (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | -1.60% | 0.00% |
Separation costs (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 2.00% | 0.00% |
Unrecognized tax benefit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -2.10% | 1.70% | 0.00% |
Other-net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.70% | 1.30% | -1.60% |
Provision for income taxes (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 37.50% | 38.80% | 35.40% |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit plans | 41.8 | ' | ' | ' | 54 | ' | ' | ' | 41.8 | 54 | ' |
Insurance reserves | 10 | ' | ' | ' | 9.7 | ' | ' | ' | 10 | 9.7 | ' |
Allowance for doubtful accounts | 1.3 | ' | ' | ' | 1.7 | ' | ' | ' | 1.3 | 1.7 | ' |
Reserves | 6 | ' | ' | ' | 1.7 | ' | ' | ' | 6 | 1.7 | ' |
Foreign losses and unremitted earnings | 3.1 | ' | ' | ' | ' | ' | ' | ' | 3.1 | ' | ' |
Alternative minimum tax credits | 1.4 | ' | ' | ' | ' | ' | ' | ' | 1.4 | ' | ' |
Other | -0.2 | ' | ' | ' | 0.3 | ' | ' | ' | -0.2 | 0.3 | ' |
Total deferred tax assets | 63.4 | ' | ' | ' | 67.4 | ' | ' | ' | 63.4 | 67.4 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis differences for property and equipment | 278 | ' | ' | ' | 292.6 | ' | ' | ' | 278 | 292.6 | ' |
Capital Construction Fund | 83.4 | ' | ' | ' | 3.3 | ' | ' | ' | 83.4 | 3.3 | ' |
Joint ventures and other investments | 4.6 | ' | ' | ' | 3.8 | ' | ' | ' | 4.6 | 3.8 | ' |
Deferred revenue | 11.4 | ' | ' | ' | 10.9 | ' | ' | ' | 11.4 | 10.9 | ' |
Amortization | 3 | ' | ' | ' | 2.1 | ' | ' | ' | 3 | 2.1 | ' |
Total deferred tax liabilities | 380.4 | ' | ' | ' | 312.7 | ' | ' | ' | 380.4 | 312.7 | ' |
Net deferred tax liability | $317 | ' | ' | ' | $245.30 | ' | ' | ' | $317 | $245.30 | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES | ' | ' | ' |
Net tax benefits from share-based transactions | $0.60 | $1.30 | ' |
Non-deductible separation costs | ' | 1.7 | ' |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' | ' |
Balance at beginning of the period | 8.3 | 2.6 | 3.5 |
Additions for tax positions of prior years | 2 | 4 | 0.3 |
Additions for tax positions of current year | ' | ' | -0.5 |
Reductions for tax positions of current years | ' | 3.7 | ' |
Reductions for tax positions of prior years | ' | -1 | ' |
Reductions for lapse of statute of limitations | -3.1 | -1 | -0.7 |
Balance at the end | 7.2 | 8.3 | 2.6 |
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | 7.2 | 8.3 | 2.6 |
Interest accrued related to unrecognized tax benefits | $0.30 | $0.40 | $0.20 |
SHAREBASED_AWARDS_Details
SHARE-BASED AWARDS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 28, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | Stock options | Stock options | Stock options | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 2007 Plan | 1998 Plan | Predecessor Plans 1998 Plan | Predecessor Plans 1998 Plan | Predecessor Plans 1998 Plan | Predecessor Plan 1998 Directors' Plan | |
item | Discretionary Grant Program | Stock Issuance Program | Stock options | Stock options | Performance-Based Restricted Stock Units | Time-Based Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Stock options | Stock options | Performance-Based Restricted Stock Units | Time-Based Restricted Stock Units | Stock options | ||||||
Performance Vesting | Discretionary Grant Program | Stock Issuance Program | Stock Issuance Program | Automatic Grant Program | |||||||||||||||
Share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock initially available for future issuance (in shares) | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | 8,700,000 | ' | ' | ' | ' | ' | ' |
Common stock available for future issuance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' |
Additional shares of authorized for issuance | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares to be issued upon exercise of outstanding options, warrants and rights | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of separate incentive compensation programs | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share based compensation plans within the entity's incentive compensation programs | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum exercise price as a percentage of fair market value of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable period | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Vesting period of awards granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | '3 years | ' | '3 years | '1 year | '3 years | ' |
Average ROIC, period for measurement | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TSR modifier, period for measurement | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted percentage of the entities comprising each index considered for calculation of total shareholder return | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuous service period for vesting of shares issuable on the basis of the performance-vesting criteria | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Period of time within for an option to be exercised for eligibility for reload feature and new stock option grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Ratio to convert original option price under reload feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' |
Number of shares that can be purchased with the annual option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 |
Options granted, weighted average grant-date fair value (in dollars per share) | ' | ' | $10.74 | $8.92 | ' | ' | ' | ' | ' | ' | ' | ' | $26.66 | ' | ' | ' | ' | ' | ' |
Weighted average valuation assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 31.80% | 29.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | '6 years 1 month 6 days | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | 1.20% | 2.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (as a percent) | ' | ' | 2.70% | 3.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Activity in the entity's stock option plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | ' | 1,353,000 | ' | ' | ' | ' | ' | ' | 954,000 | ' | ' | ' | ' | ' | 253,000 | ' | ' | ' | 146,000 |
Exercised (in shares) | ' | -155,000 | ' | ' | ' | ' | ' | ' | -106,000 | ' | ' | ' | ' | ' | -43,000 | ' | ' | ' | -6,000 |
Forfeited and expired (in shares) | ' | -6,000 | ' | ' | ' | ' | ' | ' | -4,000 | ' | ' | ' | ' | ' | -2,000 | ' | ' | ' | ' |
Outstanding, end of period (in shares) | ' | 1,192,000 | 1,353,000 | ' | ' | ' | ' | ' | 844,000 | ' | ' | ' | ' | ' | 208,000 | ' | ' | ' | 140,000 |
Exercisable (in shares) | ' | 1,010,000 | ' | ' | ' | ' | ' | ' | 662,000 | ' | ' | ' | ' | ' | 208,000 | ' | ' | ' | 140,000 |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 0 |
Weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, weighted average exercise price, beginning of period (in dollars per share) | ' | $21.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised, weighted average exercise price (in dollars per share) | ' | $20.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited and expired, weighted average exercise price (in dollars per share) | ' | $21.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, weighted average exercise price, end of period (in dollars per share) | ' | $21.24 | $21.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, weighted average exercise price (in dollars per share) | ' | $21.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, weighted average contractual life | ' | '4 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, weighted average contractual life | ' | '4 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, aggregate intrinsic value (in dollars) | ' | $6,033 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, aggregate intrinsic value (in dollars) | ' | $5,273 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_AWARDS_Details_2
SHARE-BASED AWARDS (Details 2) (2007 Plan, Restricted Stock Units, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
2007 Plan | Restricted Stock Units | ' |
Non-vested restricted stock unit activity | ' |
Outstanding, beginning of period (in shares) | 356 |
Granted (in shares) | 370 |
Exercised (in shares) | -166 |
Cancelled (in shares) | -5 |
Outstanding, end of period (in shares) | 555 |
Weighted Average Grant-Date Fair Value | ' |
Outstanding, weighted average grant-date fair value, beginning of period (in dollars per share) | $17.97 |
Granted, weighted average grant-date fair value (in dollars per share) | $26.66 |
Exercised, weighted average grant-date fair value (in dollars per share) | $21.09 |
Cancelled, weighted average grant-date fair value (in dollars per shares) | $27.24 |
Outstanding, weighted average grant-date fair value, end of period (in dollars per shares) | $25.61 |
SHAREBASED_AWARDS_Details_3
SHARE-BASED AWARDS (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based expense (net of estimated forfeitures) | ' | ' | ' |
Total recognized tax benefit | ($0.60) | ($1.30) | ' |
Parent Company Exclusive Of A&B | ' | ' | ' |
Share-based expense (net of estimated forfeitures) | ' | ' | ' |
Total share-based expense | 5.9 | 4 | 2.7 |
Total recognized tax benefit | -2.2 | -1.6 | -0.9 |
Share-based expense (net of tax) | 3.7 | 2.4 | 1.8 |
Cash received by Matson upon option exercise | 1.7 | 3.5 | 2 |
Intrinsic value of options exercised | 1.1 | 5.2 | 1.1 |
Tax benefit realized upon option exercise | 1.7 | 1.5 | 0.4 |
Fair value of stock vested | 4.4 | 3.8 | 2.5 |
Stock options | Parent Company Exclusive Of A&B | ' | ' | ' |
Share-based expense (net of estimated forfeitures) | ' | ' | ' |
Total share-based expense | 0.4 | 0.9 | 0.8 |
Unrecognized compensation cost | 0.1 | ' | ' |
Unrecognized compensation cost, weighted average period for recognition | '9 months 18 days | ' | ' |
Non-vested stock/Restricted stock units | Parent Company Exclusive Of A&B | ' | ' | ' |
Share-based expense (net of estimated forfeitures) | ' | ' | ' |
Total share-based expense | 5.5 | 3.1 | 1.9 |
Unrecognized compensation cost | $9 | ' | ' |
Unrecognized compensation cost, weighted average period for recognition | '1 year 10 months 24 days | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Feb. 23, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Subsequent event | Standby letters of credit | Benefit plan withdrawal obligations | Self-insured workers' compensation and other insurance | U.S. Custom bonds | Transportation and other bonds | ||
Commitments, Guarantees and Contingencies | ' | ' | ' | ' | ' | ' | ' |
Commitments and financial arrangements | $5.80 | ' | $1.20 | ' | $4.60 | ' | ' |
Commitments and financial arrangements | 20.6 | ' | ' | ' | ' | 19.2 | 1.4 |
Multiemployer Plan Withdrawal Obligation | ' | ' | ' | 110.6 | ' | ' | ' |
Percentage of employees covered by collective bargaining agreements with unions | 26.00% | ' | ' | ' | ' | ' | ' |
Percentage of employees covered by agreements that expire in 2014. | 24.00% | ' | ' | ' | ' | ' | ' |
Environmental Remediation Costs Recognized | ' | ' | ' | ' | ' | ' | ' |
Response costs, legal expenses, and third party claims related to the release of molasses | 3 | ' | ' | ' | ' | ' | ' |
Settlement amount of all claims | ' | 9 | ' | ' | ' | ' | ' |
Legal expenses | ' | $0.95 | ' | ' | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transactions | ' | ' | ' |
Lease expense to A & B | ($20.50) | ($17.80) | ($38.40) |
Contributions to A&B | ' | 155.7 | ' |
A&B | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Vessel management services income | ' | 2 | 4 |
Lease expense to A & B | ' | -2.1 | -4.4 |
Equipment and repair services expense and other | ' | -1.4 | -2.7 |
Related party expense, net | ' | -1.5 | -3.1 |
Contributions to A&B | 0 | 155.7 | ' |
Proceeds from and contributions to A&B from issuance of capital stock | ' | 21.7 | ' |
Contributions from A&B | $0 | $25 | ' |
REPORTABLE_SEGMENTS_Details
REPORTABLE SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
segment | |||||||||||
Segment results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Revenue | $410.90 | $415 | $416.60 | $394.70 | $398.30 | $401.40 | $394.20 | $366.10 | $1,637.20 | $1,560 | $1,462.60 |
Operating income | 17.9 | 27.2 | 36.5 | 18.7 | 23.9 | 34.2 | 32.5 | 6.1 | 100.3 | 96.7 | 78.6 |
Interest expense, net | -3.5 | -3.6 | -3.6 | -3.7 | -3.8 | -4 | -1.9 | -2 | -14.4 | -11.7 | -7.7 |
Income from Continuing Operations Before Income Taxes | 14.4 | 23.6 | 32.9 | 15 | 20.1 | 30.2 | 30.6 | 4.1 | 85.9 | 85 | 70.9 |
Income taxes | -7.1 | -6.4 | -12.8 | -5.9 | -4.4 | -11.2 | -15.3 | -2.1 | -32.2 | -33 | -25.1 |
Income From Continuing Operations | 7.3 | 17.2 | 20.1 | 9.1 | 15.7 | 19 | 15.3 | 2 | 53.7 | 52 | 45.8 |
Loss From Discontinued Operations (net of income taxes) | ' | ' | ' | ' | -0.1 | 0.1 | -7.5 | 1.4 | 0 | -6.1 | -11.6 |
Net Income | 7.3 | 17.2 | 20.1 | 9.1 | 15.6 | 19.1 | 7.8 | 3.4 | 53.7 | 45.9 | 34.2 |
Assets | 1,248.30 | ' | ' | ' | 1,174.30 | ' | ' | ' | 1,248.30 | 1,174.30 | 2,544.30 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 35.2 | 38.1 | 47.2 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 69.7 | 72.5 | 71.6 |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400 |
Ocean Transportation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 309.4 | 310.1 | 310 | 299.9 | 303.7 | 307.1 | 299.5 | 279.5 | 1,229.40 | 1,189.80 | 1,076.20 |
Operating income | 16 | 25.5 | 34.3 | 18.5 | 26.7 | 32.9 | 31.2 | 5.8 | 94.3 | 96.6 | 73.7 |
Assets | 1,168.60 | ' | ' | ' | 1,097.20 | ' | ' | ' | 1,168.60 | 1,097.20 | 1,083.90 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 33.8 | 37 | 44.2 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 66.4 | 69.1 | 68.4 |
Ocean Transportation | SSAT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings from affiliates | -2 | ' | ' | ' | 3.2 | ' | ' | ' | -2 | 3.2 | 8.6 |
Equity method investments | 57.6 | ' | ' | ' | 59.6 | ' | ' | ' | 57.6 | 59.6 | 56.5 |
Logistics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 101.5 | 104.9 | 106.6 | 94.8 | 94.6 | 94.3 | 94.7 | 86.6 | 407.8 | 370.2 | 386.4 |
Operating income | 1.9 | 1.7 | 2.2 | 0.2 | -2.8 | 1.3 | 1.3 | 0.3 | 6 | 0.1 | 4.9 |
Assets | 79.7 | ' | ' | ' | 77.1 | ' | ' | ' | 79.7 | 77.1 | 76.4 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | 1.1 | 3 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | 3.4 | 3.2 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,384 |
QUARTERLY_INFORMATION_Unaudite2
QUARTERLY INFORMATION (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly information by segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $410.90 | $415 | $416.60 | $394.70 | $398.30 | $401.40 | $394.20 | $366.10 | $1,637.20 | $1,560 | $1,462.60 |
Operating income | 17.9 | 27.2 | 36.5 | 18.7 | 23.9 | 34.2 | 32.5 | 6.1 | 100.3 | 96.7 | 78.6 |
Interest expense | -3.5 | -3.6 | -3.6 | -3.7 | -3.8 | -4 | -1.9 | -2 | -14.4 | -11.7 | -7.7 |
Income from Continuing Operations Before Income Taxes | 14.4 | 23.6 | 32.9 | 15 | 20.1 | 30.2 | 30.6 | 4.1 | 85.9 | 85 | 70.9 |
Income tax expense | -7.1 | -6.4 | -12.8 | -5.9 | -4.4 | -11.2 | -15.3 | -2.1 | -32.2 | -33 | -25.1 |
Income From Continuing Operations | 7.3 | 17.2 | 20.1 | 9.1 | 15.7 | 19 | 15.3 | 2 | 53.7 | 52 | 45.8 |
Net Income (Loss) from Discontinued Operations Net of Income taxes | ' | ' | ' | ' | -0.1 | 0.1 | -7.5 | 1.4 | 0 | -6.1 | -11.6 |
Net Income | 7.3 | 17.2 | 20.1 | 9.1 | 15.6 | 19.1 | 7.8 | 3.4 | 53.7 | 45.9 | 34.2 |
Income From Continuing Operations, Earnings Per Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.37 | $0.45 | $0.36 | $0.05 | $1.26 | $1.23 | $1.10 |
Diluted (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.37 | $0.45 | $0.36 | $0.05 | $1.25 | $1.22 | $1.09 |
Net Income, Earnings Per Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.37 | $0.45 | $0.18 | $0.08 | $1.26 | $1.09 | $0.82 |
Diluted (in dollars per share) | $0.17 | $0.40 | $0.47 | $0.21 | $0.36 | $0.45 | $0.18 | $0.08 | $1.25 | $1.08 | $0.81 |
Ocean transportation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly information by segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 309.4 | 310.1 | 310 | 299.9 | 303.7 | 307.1 | 299.5 | 279.5 | 1,229.40 | 1,189.80 | 1,076.20 |
Operating income | 16 | 25.5 | 34.3 | 18.5 | 26.7 | 32.9 | 31.2 | 5.8 | 94.3 | 96.6 | 73.7 |
Logistics services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly information by segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | 101.5 | 104.9 | 106.6 | 94.8 | 94.6 | 94.3 | 94.7 | 86.6 | 407.8 | 370.2 | 386.4 |
Operating income | $1.90 | $1.70 | $2.20 | $0.20 | ($2.80) | $1.30 | $1.30 | $0.30 | $6 | $0.10 | $4.90 |