Matson (MATX) 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2018shares
Document and Entity Information
Entity Registrant Name	Matson, Inc.
Entity Central Index Key	3,453
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	42,697,456
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating Revenue:
Ocean Transportation	$ 406.6	$ 392.7	$ 785.9	$ 762.7
Logistics	150.5	119.8	282.6	224.2
Total Operating Revenue	557.1	512.5	1,068.5	986.9
Costs and Expenses:
Operating costs	(465.9)	(422.4)	(905.2)	(834.2)
Equity in income of Terminal Joint Venture	9.1	6.9	19.6	11.8
Selling, general and administrative	(54.3)	(50)	(108.2)	(100.3)
Total Costs and Expenses	(511.1)	(465.5)	(993.8)	(922.7)
Operating Income	46	47	74.7	64.2
Interest expense	(5)	(6.3)	(10)	(12.6)
Other income (expense), net	0.4	(1.1)	1.2	(1.9)
Income before Income Taxes	41.4	39.6	65.9	49.7
Income taxes	(8.8)	(15.6)	(19.1)	(18.7)
Net Income	32.6	24	46.8	31
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	32.6	24	46.8	31
Other Comprehensive Income (Loss):
Net gain in prior service cost		0.1		0.1
Amortization of prior service cost	(1.1)	(0.3)	(2.4)	(0.7)
Amortization of net loss	0.5	1.2	1.8	2.1
Other adjustments	(0.3)		(0.1)	0.2
Total Other Comprehensive (Loss) Income	(0.9)	1	(0.7)	1.7
Comprehensive Income	$ 31.7	$ 25	$ 46.1	$ 32.7
Basic Earnings Per-Share: (in dollars per share)	$ 0.76	$ 0.56	$ 1.10	$ 0.72
Diluted Earnings Per-Share: (in dollars per share)	$ 0.76	$ 0.55	$ 1.09	$ 0.72
Weighted Average Number of Shares Outstanding:
Basic (in shares)	42.7	43.1	42.6	43.1
Diluted (in shares)	43	43.3	42.9	43.3
Dividends
Cash Dividends Per-Share	$ 0.20	$ 0.19	$ 0.40	$ 0.38

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 12.8	$ 19.8
Accounts receivable, net	221.7	194.6
Prepaid expenses and other assets	49.1	51.6
Total current assets	283.6	266
Long-term Assets:
Investment in Terminal Joint Venture	94.4	93.2
Property and equipment, net	1,307.1	1,165.7
Goodwill	323.7	323.7
Intangible assets, net	219.6	225.2
Deferred dry-docking costs, net	73.9	89.2
Other long-term assets	79.3	84.5
Total long-term assets	2,098	1,981.5
Total Assets	2,381.6	2,247.5
Current Liabilities:
Current portion of debt	36.3	30.8
Accounts payable	193.5	175.1
Accruals and other liabilities	85.7	80.4
Total current liabilities	315.5	286.3
Long-term Liabilities:
Long-term debt	896.2	826.3
Deferred income taxes	299.8	285.2
Other long-term liabilities	170.6	171.5
Total long-term liabilities	1,366.6	1,283
Commitments and Contingencies (Note 2)
Shareholders' Equity:
Common stock	32	31.9
Additional paid in capital	291.2	289.7
Accumulated other comprehensive loss, net	(31.6)	(24.9)
Retained earnings	407.9	381.5
Total shareholders' equity	699.5	678.2
Total liabilities and shareholders' equity	$ 2,381.6	$ 2,247.5

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From Operating Activities:
Net income	$ 46.8	$ 31
Reconciling adjustments:
Depreciation and amortization	47.6	49.7
Deferred income taxes	14.6	11
Share-based compensation expense	5.5	4.9
Equity in income of Terminal Joint Venture	(19.6)	(11.8)
Distribution from Terminal Joint Venture	17.5	7
Other	(0.6)	1.1
Changes in assets and liabilities:
Accounts receivable, net	(27.1)	(9)
Deferred dry-docking payments	(5.1)	(33)
Deferred dry-docking amortization	18.3	25.6
Prepaid expenses and other assets	3	(1.1)
Accounts payable, accruals and other liabilities	18.4	(9.4)
Other long-term liabilities	(0.2)	(2.6)
Net cash provided by operating activities	119.1	63.4
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(166.8)	(46.2)
Other capital expenditures	(25.5)	(37.1)
Proceeds from (payments for) disposal of property and equipment	11	(0.3)
Cash deposits into Capital Construction Fund	(198.3)	(12.2)
Withdrawals from Capital Construction Fund	199.2	43.4
Net cash used in investing activities	(180.4)	(52.4)
Cash Flows From Financing Activities:
Repayments of debt and capital leases	(14.6)	(15)
Proceeds from revolving credit facility	268.9	155
Repayments of revolving credit facility	(178.9)	(125)
Proceeds from issuance of common stock	0.5	0.4
Dividends paid	(17.3)	(16.5)
Repurchase of Matson common stock		(1.3)
Tax withholding related to net share settlements of restricted stock units	(4.3)	(7.2)
Net cash provided by financing activities	54.3	(9.6)
Net (Decrease) Increase in Cash and Cash Equivalents	(7)	1.4
Cash and Cash Equivalents, Beginning of the Period	19.8	13.9
Cash and Cash Equivalents, End of the Period	12.8	15.3
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	8.9	12.8
Income tax paid, net of income tax refunds	4.2	(0.3)
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	0.8	1.1
Accrued dividends	$ 9	$ 8.7

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS	6 Months Ended
	Jun. 30, 2018
DESCRIPTION OF THE BUSINESS
DESCRIPTION OF THE BUSINESS	1. DESCRIPTION OF THE BUSINESS Matson, Inc., a holding company incorporated in January 2012 in the State of Hawaii, and its subsidiaries (“Matson” or the “Company”), is a leading provider of ocean transportation and logistics services. The Company consists of two segments, Ocean Transportation and Logistics: Ocean Transportation: Matson’s Ocean Transportation business is conducted through Matson Navigation Company, Inc. (“MatNav”), a wholly-owned subsidiary of Matson, Inc. Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. MatNav also operates a premium, expedited service from China to Long Beach, California, and also provides services to Okinawa, Japan and various islands in the South Pacific. In addition, subsidiaries of MatNav provide container stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav and other ocean carriers on the Hawaiian Islands of Oahu, Hawaii, Maui and Kauai, and in the Alaska locations of Anchorage, Kodiak and Dutch Harbor. Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”), a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc. SSAT provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S. West Coast, including four facilities which are used by MatNav (“Terminal Joint Venture”). Matson records its share of income in the Terminal Joint Venture in operating costs in the Condensed Consolidated Statements of Income and Comprehensive Income, and within the Ocean Transportation segment due to the nature of SSAT’s operations. Logistics: Matson’s Logistics business is conducted through Matson Logistics, Inc. (“Matson Logistics”), a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics is an asset-light business that provides a variety of logistic services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal service, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively "Transportation Brokerage Services"); (ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively “Freight Forwarding Services”); (iii) warehousing and distribution services; and (iv) supply chain management, non-vessel operating common carrier freight forwarding and other services.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The Condensed Consolidated Financial Statements are unaudited, and include the accounts of Matson and all wholly-owned subsidiaries, after elimination of significant intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. A controlling financial interest is one in which the Company has a majority voting interest or one in which the Company is the primary beneficiary of a variable interest entity. The Company accounts for its investment in the Terminal Joint Venture using the equity method of accounting. Due to the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim periods, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete consolidated financial statements. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2018. Fiscal Period: The period end for Matson covered by this report is June 30, 2018. The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in June, or June 29, 2018, for the second quarter 2018. Significant Accounting Policies: The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Recognition of Revenues and Expenses: Revenue in the Company’s Condensed Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity: Three Months Ended Six Months Ended June 30, June 30, Ocean Transportation (in millions) (1) 2018 2017 2018 2017 Ocean transportation services $ 401.2 $ 388.2 $ 775.9 $ 753.2 Terminal and other related services 0.5 0.8 1.3 1.6 Fuel sales 3.1 2.0 5.2 4.5 Ship management services 1.8 1.7 3.5 3.4 Total $ 406.6 $ 392.7 $ 785.9 $ 762.7 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of Ocean Transportation revenues and fuel sales which are denominated in foreign currencies. § Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. § Terminal and other related service revenues to third parties are recognized as the services are performed. § Fuel sales revenue is recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. § Ship management services revenue and related costs are recognized in proportion to the services completed. Three Months Ended Six Months Ended June 30, June 30, Logistics (in millions) (1) 2018 2017 2018 2017 Transportation brokerage and freight forwarding services $ 136.4 $ 106.9 $ 255.6 $ 199.2 Warehouse and distribution services 7.8 7.3 15.2 14.5 Supply chain management and other services 6.3 5.6 11.8 10.5 Total $ 150.5 $ 119.8 $ 282.6 $ 224.2 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories are denominated in foreign currencies. § Logistics transportation brokerage and freight forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, labor and equipment costs. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. § Logistics warehousing and distribution services revenue consists of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage expenses are recognized as incurred. Other warehousing and distribution services revenue and expense are recognized in proportion to the services performed. § Supply chain management and other services revenue and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are paid in advance by the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. Capital Construction Fund: The Company’s Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. As of June 30, 2018 and December 31, 2017, the following amounts related to the Company’s CCF: June 30, December 31, (In millions) 2018 2017 Capital Construction Fund: Cash on deposit $ — $ 0.9 Assigned accounts receivables $ 124.7 $ 134.8 Cash on deposit in the CCF is held in a money market account and classified as long-term assets in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the six months ended June 30, 2018 and 2017, the Company deposited $198.3 million and $12.2 million into the CCF, respectively, and made qualifying cash withdrawals of $199.2 million and $43.4 million from the CCF, respectively. Eligible accounts receivable that are assigned into the CCF are classified as part of accounts receivable in the Condensed Consolidated Financial Statements due to the nature of the assignment. Investment in Terminal Joint Venture: The Company’s investment in the Terminal Joint Venture was $94.4 million and $93.2 million at June 30, 2018 and December 31, 2017, respectively. Condensed income statement information (unaudited) for the Terminal Joint Venture for the three and six months ended June 30, 2018 and 2017 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, Condensed Statements of Operating Income and Net Income (unaudited) (in millions) 2018 2017 2018 2017 Operating revenue $ 266.1 $ 214.1 $ 517.0 $ 410.8 Operating costs and expenses (240.4) (194.0) (460.1) (378.0) Operating income 25.7 20.1 56.9 32.8 Net Income (1) 24.3 19.5 55.0 33.8 Company Share of Net Income $ 9.1 $ 6.9 $ 19.6 $ 11.8 (1) Includes earnings from equity method investments held by the Terminal Joint Venture less earnings allocated to non-controlling interests. Income Taxes: In connection with the Tax Cuts and Jobs Act that was signed into law on December 22, 2017 (the “Tax Act”), the Company recorded a non-cash tax adjustment that decreased income tax expense by $0.2 million for the three months ended June 30, 2018, and increased income tax expense by $3.1 million for the six months ended June 30, 2018. These adjustments were due to the application of an estimated 6.2 percent sequestration on alternative minimum tax (AMT) refunds for the years 2018 to 2021, and were based on new guidance issued by the Internal Revenue Service and emerging interpretations of the Tax Act. The Company continues to assess the impact of the Tax Act and any related interpretations, when issued, on the Company’s income tax estimates. These and other factors could materially affect the Company’s financial condition or its future operating results. Contingencies: Environmental Matters: The Company’s Ocean Transportation business has certain risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations. Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows. New Accounting Pronouncements: Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”): The Company adopted ASU 2014-09 during the three months ended March 31, 2018 using the modified retrospective method. This method allowed the Company to recognize the cumulative effect of initially applying ASU 2014-09 as an adjustment to retained earnings as of December 31, 2017. Prior to adopting ASU 2014-09, the Company performed a review of its revenue contracts and evaluated the Company’s current accounting policies and procedures for recognizing revenues in the Company’s Consolidated Financial Statements, and compared these to the new requirements of ASU 2014-09. In addition, the Company identified the performance obligations and consideration applicable under each contract. Based upon this evaluation, the Company determined that the impact of adopting ASU 2014-09 was immaterial because the analysis of the Company’s contracts under ASU 2014-09 supports the recognition of revenue over time as the service is performed, which is consistent with the Company’s current revenue recognition accounting policy. The majority of the Company’s contracts require the Company to provide ocean and logistics transportation services to its customers. Such services are provided by the Company over a period of time, generally, when cargo is being delivered from source to destination point, or as the service is being performed. Therefore, performance obligations are completed in a short period of time due to the nature of the services provided by the Company. Under the new standard, revenues from the majority of the Company’s contracts will continue to be recognized over time as the customer simultaneously receives and consumes the benefit of these services as described in ASU 2014-09. In addition, the identification of performance obligations and related consideration under the new standard is not materially different from our current accounting treatment. Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”): ASU 2018-02 allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from the Tax Act. The Company elected to adopt early ASU 2018-02 during the three months ended March 31, 2018, and recorded a reclassification adjustment of $6.0 million between accumulated other comprehensive income (loss) and retained earnings (see Note 7). Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Benefit Cost (“ASU 2017-07”): ASU 2017-07 requires employers that sponsor defined benefit pension and post-retirement plans to present the service cost component of net benefit cost in the same income statement line item as other employee compensation costs arising from services rendered, and that only the service cost component will be eligible for capitalization. The other components of the net periodic benefit cost must be presented separately from the line item that includes the service cost component and outside of the income from operations subtotal. The Company adopted ASU 2017-07 during the three months ended March 31, 2018. To conform prior period amounts to current period presentation as required by ASU 2017-07, the Company recorded retrospective adjustments and reclassified $1.1 million and $1.9 million of expenses from operating costs to other income (expense) in the Condensed Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2017, respectively. There was no change to income before income taxes for all periods presented as a result of adopting ASU 2017-07. Leases (Topic 842) (“ASU 2016-02”): ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize the expenses in their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments, and a right-of-use asset for the underlying leased asset for the period of the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. The Company is in the process of evaluating the implementation of this guidance.

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS	6 Months Ended
	Jun. 30, 2018
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS	3. REPORTABLE SEGMENTS Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company's chief operating decision maker is its Chief Executive Officer. The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income, exclusive of interest expense and income taxes. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s Terminal Joint Venture segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of the Terminal Joint Venture being an integral part of the Company’s Ocean Transportation business. The Company’s Ocean Transportation segment provides ocean transportation services to the Logistics segment, and the Logistics segment provides logistics services to the Ocean Transportation segment. Accordingly, inter-segment revenue of $26.8 million and $21.7 million for the three months ended June 30, 2018 and 2017, and $45.1 million and $38.6 million for the six months ended June 30, 2018 and 2017, respectively, have been eliminated from operating revenue in the table below. Reportable segment results for the three and six months ended June 30, 2018 and 2017 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2017 2018 2017 Operating Revenue: Ocean Transportation $ 406.6 $ 392.7 $ 785.9 $ 762.7 Logistics 150.5 119.8 282.6 224.2 Total Operating Revenue $ 557.1 $ 512.5 $ 1,068.5 $ 986.9 Operating Income: Ocean Transportation (1) $ 36.5 $ 40.0 $ 61.0 $ 55.3 Logistics 9.5 7.0 13.7 8.9 Total Operating Income 46.0 47.0 74.7 64.2 Interest expense, net (5.0) (6.3) (10.0) (12.6) Other income (expense), net 0.4 (1.1) 1.2 (1.9) Income before Income Taxes 41.4 39.6 65.9 49.7 Income taxes (8.8) (15.6) (19.1) (18.7) Net Income $ 32.6 $ 24.0 $ 46.8 $ 31.0 (1) Ocean Transportation segment information includes $9.1 million and $6.9 million of equity in income from the Terminal Joint Venture for the three months ended June 30, 2018 and 2017, and $19.6 million and $11.8 million for the six months ended June 30, 2018 and 2017, respectively.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2018
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Property and equipment at June 30, 2018 and December 31, 2017 consisted of the following: June 30, December 31, (In millions) 2018 2017 Cost: Vessels $ 1,442.1 $ 1,433.6 Containers and equipment 530.2 543.0 Terminal facilities and other property 65.9 64.8 Vessel construction in progress 543.4 376.6 Other construction in progress 35.8 26.2 Total Property and Equipment 2,617.4 2,444.2 Less: Accumulated Depreciation Total Property and Equipment, net $ 1,307.1 $ 1,165.7 Vessel construction in progress relates to progress payments for the construction of four new vessels to be used within the Hawaii service, capitalized owners’ items and capitalized interest. Capitalized interest included in vessel construction in progress was $18.6 million and $10.4 million at June 30, 2018 and December 31, 2017, respectively.

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES	6 Months Ended
	Jun. 30, 2018
GOODWILL AND INTANGIBLES ASSETS
GOODWILL AND INTANGIBLES ASSETS	5. GOODWILL AND INTANGIBLES Goodwill by segment at both June 30, 2018 and December 31, 2017 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 218.5 $ 105.2 $ 323.7 Intangible assets at June 30, 2018 and December 31, 2017 consisted of the following: June 30, December 31, (In millions) 2018 2017 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 90.1 90.1 Total 230.7 230.7 Less: Accumulated Amortization (38.4) (32.8) Total Customer Relationships, net 192.3 197.9 Trade name - Logistics 27.3 27.3 Total Intangible Assets, net $ 219.6 $ 225.2

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
DEBT
DEBT	6. DEBT Debt at June 30, 2018 and December 31, 2017 consisted of the following: June 30, December 31, (In millions) 2018 2017 Private Placement Term Loans: 5.79 %, payable through 2020 $ $ 17.5 3.66 %, payable through 2023 50.1 4.16 %, payable through 2027 49.8 3.37 %, payable through 2027 75.0 3.14 %, payable through 2031 200.0 4.31 %, payable through 2032 35.1 4.35 %, payable through 2044 100.0 3.92 %, payable through 2045 73.2 Title XI Bonds: 5.34 %, payable through 2028 24.2 5.27 %, payable through 2029 26.4 Revolving credit facility 205.0 Capital leases 0.8 Total Debt 932.5 857.1 Less: Current portion (30.8) Total Long-term Debt $ 896.2 $ 826.3 The Company’s debt is described in Note 8 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Borrowings under the revolving credit facility are classified as long-term debt in the Condensed Consolidated Balance Sheets, as principal payments are not required until the maturity date of June 29, 2022. As of June 30, 2018, the Company had $236.3 million of remaining availability under the revolving credit facility. The interest rate on borrowings under the revolving credit facility approximated 3.33 percent during the three months ended June 30, 2018.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2018
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	7. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2018 consisted of the following: Accumulated Non- Other Post Qualified Comprehensive (In millions) Pensions Retirement Plans Other Income (Loss) Balance at December 31, 2017 $ (40.6) $ 15.6 $ (0.3) $ 0.4 $ (24.9) Amortization of prior service cost (0.4) (0.9) — — (1.3) Amortization of net loss 0.9 0.3 0.1 — 1.3 Remeasurement adjustment related to the Tax Act (1) (9.2) 3.4 (0.2) — (6.0) Other adjustments — — — 0.2 0.2 Balance at March 31, 2018 (49.3) 18.4 (0.4) 0.6 (30.7) Amortization of prior service cost (0.5) (0.5) (0.1) — (1.1) Amortization of net loss 0.9 0.2 0.1 (0.7) 0.5 Other adjustments — — — (0.3) (0.3) Balance at June 30, 2018 $ (48.9) $ 18.1 $ (0.4) $ (0.4) $ (31.6) (1) Reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from the Tax Act in accordance with ASU 2018-02 . Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2017 consisted of the following: Accumulated Non- Other Post Qualified Comprehensive (In millions) Pensions Retirement Plans Other Income (Loss) Balance at December 31, 2016 $ (41.4) $ 18.1 $ (0.4) $ 0.1 $ (23.6) Amortization of prior service cost (0.4) — — — (0.4) Amortization of net loss 0.8 0.1 — — 0.9 Other adjustments — — — 0.2 0.2 Balance at March 31, 2017 (41.0) 18.2 (0.4) 0.3 (22.9) Net gain in prior service cost — — — 0.1 0.1 Amortization of prior service cost (0.3) — — — (0.3) Amortization of net loss 0.8 0.3 0.1 — 1.2 Balance at June 30, 2017 $ (40.5) $ 18.5 $ (0.3) $ 0.4 $ (21.9)

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2018
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	8. FAIR VALUE MEASUREMENTS 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 equivalents, and Level 2 inputs for its CCF – cash on deposit, and variable and fixed rate debt. The fair values of cash and cash equivalents, CCF – cash on deposit, and variable rate debt approximate their carrying values due to the nature of the instruments. The fair value of the Company’s fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. The carrying value and fair value of the Company’s financial instruments as of June 30, 2018 and December 31, 2017 were as follows: Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) June 30, 2018 Fair Value Measurements at June 30, 2018 Cash and cash equivalents $ 12.8 $ 12.8 $ 12.8 $ — $ — Variable rate debt 295.0 295.0 — 295.0 — Fixed rate debt 637.5 616.3 — 616.3 — (In millions) December 31, 2017 Fair Value Measurements at December 31, 2017 Cash and cash equivalents $ 19.8 $ 19.8 $ 19.8 $ — $ — CCF - cash on deposit 0.9 0.9 — 0.9 — Variable rate debt 205.0 205.0 — 205.0 — Fixed rate debt 652.1 651.4 — 651.4 —

EARNINGS PER-SHARE

EARNINGS PER-SHARE	6 Months Ended
	Jun. 30, 2018
EARNINGS PER-SHARE
EARNINGS PER-SHARE	9. EARNINGS PER-SHARE The number of shares used to compute basic and diluted earnings per-share for the three and six months ended June 30, 2018 and 2017, were as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per-share amounts) Income Shares Amount Income Shares Amount Basic: $ 32.6 42.7 $ 0.76 $ 46.8 42.6 $ 1.10 Effect of Dilutive Securities: 0.3 — 0.3 (0.01) Diluted: $ 32.6 43.0 $ 0.76 $ 46.8 42.9 $ 1.09 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per-share amounts) Income Shares Amount Income Shares Amount Basic: $ 24.0 43.1 $ 0.56 $ 31.0 43.1 $ 0.72 Effect of Dilutive Securities: 0.2 (0.01) 0.2 — Diluted: $ 24.0 43.3 $ 0.55 $ 31.0 43.3 $ 0.72 Basic earnings per-share is determined by dividing net income by the weighted-average common shares outstanding during the period. The calculation of diluted earnings per-share includes the dilutive effect of unexercised non-qualified stock options and non-vested restricted stock units. The computation of weighted-average dilutive shares outstanding excludes certain non-qualified stock options to purchase shares of common stock where 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 number of such shares excluded was nominal.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	10. SHARE-BASED COMPENSATION During the three and six months ended June 30, 2018, the Company granted approximately 29,400 and 381,000 in total of time-based restricted stock units and performance-based shares to certain of its employees at a weighted-average grant date fair value of $29.09 and $31.18, respectively. Total share-based compensation cost recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of selling, general and administrative expenses was $2.8 million and $2.3 million for the three months ended June 30, 2018 and 2017, and $5.5 million and $4.9 million for the six months ended June 30, 2018 and 2017, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was $17.4 million at June 30, 2018, and is expected to be recognized over a weighted-average period of 2.0 years. Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

PENSION AND POST-RETIREMENT PLA

PENSION AND POST-RETIREMENT PLANS	6 Months Ended
	Jun. 30, 2018
PENSION AND POST-RETIREMENT PLANS
PENSION AND POST-RETIREMENT PLANS	11. PENSION AND POST-RETIREMENT PLANS The Company’s pension and post-retirement plans are described in Note 11 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The following tables provide the components of net periodic benefit cost for the Company’s qualified defined benefit pension and post-retirement plans for the three and six months ended June 30, 2018 and 2017: Pension Benefits Post-retirement Benefits Three Months Ended June 30, Three Months Ended June 30, (In millions) 2018 2017 2018 2017 Components of net periodic benefit cost (benefit): Service cost $ 1.1 $ 0.9 $ 0.1 $ 0.4 Interest cost 2.1 2.4 0.3 0.7 Expected return on plan assets (3.4) (3.4) — — Amortization of net loss 1.3 1.3 0.4 0.3 Amortization of prior service credit (0.6) (0.5) (0.9) — Net periodic benefit cost $ 0.5 $ 0.7 $ (0.1) $ 1.4 Pension Benefits Post-retirement Benefits Six Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Components of net periodic benefit cost (benefit): Service cost $ 2.2 $ 1.9 $ 0.3 $ 0.8 Interest cost 4.3 4.8 0.5 1.4 Expected return on plan assets (6.8) (6.8) — — Amortization of net loss 2.4 2.5 0.8 0.6 Amortization of prior service credit (1.2) (1.1) (1.8) — Net periodic benefit cost $ 0.9 $ 1.3 $ (0.2) $ 2.8

SIGNIFICANT ACCOUNTING POLICI16

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation: The Condensed Consolidated Financial Statements are unaudited, and include the accounts of Matson and all wholly-owned subsidiaries, after elimination of significant intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. A controlling financial interest is one in which the Company has a majority voting interest or one in which the Company is the primary beneficiary of a variable interest entity. The Company accounts for its investment in the Terminal Joint Venture using the equity method of accounting. Due to the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim periods, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete consolidated financial statements. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2018.
Fiscal Period	Fiscal Period: The period end for Matson covered by this report is June 30, 2018. The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in June, or June 29, 2018, for the second quarter 2018.
Significant Accounting Policies	Significant Accounting Policies: The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
Recognition of Revenues and Expenses	Recognition of Revenues and Expenses: Revenue in the Company’s Condensed Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity: Three Months Ended Six Months Ended June 30, June 30, Ocean Transportation (in millions) (1) 2018 2017 2018 2017 Ocean transportation services $ 401.2 $ 388.2 $ 775.9 $ 753.2 Terminal and other related services 0.5 0.8 1.3 1.6 Fuel sales 3.1 2.0 5.2 4.5 Ship management services 1.8 1.7 3.5 3.4 Total $ 406.6 $ 392.7 $ 785.9 $ 762.7 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of Ocean Transportation revenues and fuel sales which are denominated in foreign currencies. § Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. § Terminal and other related service revenues to third parties are recognized as the services are performed. § Fuel sales revenue is recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. § Ship management services revenue and related costs are recognized in proportion to the services completed. Three Months Ended Six Months Ended June 30, June 30, Logistics (in millions) (1) 2018 2017 2018 2017 Transportation brokerage and freight forwarding services $ 136.4 $ 106.9 $ 255.6 $ 199.2 Warehouse and distribution services 7.8 7.3 15.2 14.5 Supply chain management and other services 6.3 5.6 11.8 10.5 Total $ 150.5 $ 119.8 $ 282.6 $ 224.2 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories are denominated in foreign currencies. § Logistics transportation brokerage and freight forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, labor and equipment costs. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. § Logistics warehousing and distribution services revenue consists of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage expenses are recognized as incurred. Other warehousing and distribution services revenue and expense are recognized in proportion to the services performed. § Supply chain management and other services revenue and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are paid in advance by the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.
Capital Construction Fund	Capital Construction Fund: The Company’s Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. As of June 30, 2018 and December 31, 2017, the following amounts related to the Company’s CCF: June 30, December 31, (In millions) 2018 2017 Capital Construction Fund: Cash on deposit $ — $ 0.9 Assigned accounts receivables $ 124.7 $ 134.8 Cash on deposit in the CCF is held in a money market account and classified as long-term assets in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the six months ended June 30, 2018 and 2017, the Company deposited $198.3 million and $12.2 million into the CCF, respectively, and made qualifying cash withdrawals of $199.2 million and $43.4 million from the CCF, respectively. Eligible accounts receivable that are assigned into the CCF are classified as part of accounts receivable in the Condensed Consolidated Financial Statements due to the nature of the assignment.
Investment in Terminal Joint Venture	Investment in Terminal Joint Venture: The Company’s investment in the Terminal Joint Venture was $94.4 million and $93.2 million at June 30, 2018 and December 31, 2017, respectively. Condensed income statement information (unaudited) for the Terminal Joint Venture for the three and six months ended June 30, 2018 and 2017 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, Condensed Statements of Operating Income and Net Income (unaudited) (in millions) 2018 2017 2018 2017 Operating revenue $ 266.1 $ 214.1 $ 517.0 $ 410.8 Operating costs and expenses (240.4) (194.0) (460.1) (378.0) Operating income 25.7 20.1 56.9 32.8 Net Income (1) 24.3 19.5 55.0 33.8 Company Share of Net Income $ 9.1 $ 6.9 $ 19.6 $ 11.8 (1) Includes earnings from equity method investments held by the Terminal Joint Venture less earnings allocated to non-controlling interests.
Income Taxes	Income Taxes: In connection with the Tax Cuts and Jobs Act that was signed into law on December 22, 2017 (the “Tax Act”), the Company recorded a non-cash tax adjustment that decreased income tax expense by $0.2 million for the three months ended June 30, 2018, and increased income tax expense by $3.1 million for the six months ended June 30, 2018. These adjustments were due to the application of an estimated 6.2 percent sequestration on alternative minimum tax (AMT) refunds for the years 2018 to 2021, and were based on new guidance issued by the Internal Revenue Service and emerging interpretations of the Tax Act. The Company continues to assess the impact of the Tax Act and any related interpretations, when issued, on the Company’s income tax estimates. These and other factors could materially affect the Company’s financial condition or its future operating results.
Contingencies	Contingencies: Environmental Matters: The Company’s Ocean Transportation business has certain risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations. Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.
New Accounting Pronouncements	New Accounting Pronouncements: Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”): The Company adopted ASU 2014-09 during the three months ended March 31, 2018 using the modified retrospective method. This method allowed the Company to recognize the cumulative effect of initially applying ASU 2014-09 as an adjustment to retained earnings as of December 31, 2017. Prior to adopting ASU 2014-09, the Company performed a review of its revenue contracts and evaluated the Company’s current accounting policies and procedures for recognizing revenues in the Company’s Consolidated Financial Statements, and compared these to the new requirements of ASU 2014-09. In addition, the Company identified the performance obligations and consideration applicable under each contract. Based upon this evaluation, the Company determined that the impact of adopting ASU 2014-09 was immaterial because the analysis of the Company’s contracts under ASU 2014-09 supports the recognition of revenue over time as the service is performed, which is consistent with the Company’s current revenue recognition accounting policy. The majority of the Company’s contracts require the Company to provide ocean and logistics transportation services to its customers. Such services are provided by the Company over a period of time, generally, when cargo is being delivered from source to destination point, or as the service is being performed. Therefore, performance obligations are completed in a short period of time due to the nature of the services provided by the Company. Under the new standard, revenues from the majority of the Company’s contracts will continue to be recognized over time as the customer simultaneously receives and consumes the benefit of these services as described in ASU 2014-09. In addition, the identification of performance obligations and related consideration under the new standard is not materially different from our current accounting treatment. Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”): ASU 2018-02 allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from the Tax Act. The Company elected to adopt early ASU 2018-02 during the three months ended March 31, 2018, and recorded a reclassification adjustment of $6.0 million between accumulated other comprehensive income (loss) and retained earnings (see Note 7). Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Benefit Cost (“ASU 2017-07”): ASU 2017-07 requires employers that sponsor defined benefit pension and post-retirement plans to present the service cost component of net benefit cost in the same income statement line item as other employee compensation costs arising from services rendered, and that only the service cost component will be eligible for capitalization. The other components of the net periodic benefit cost must be presented separately from the line item that includes the service cost component and outside of the income from operations subtotal. The Company adopted ASU 2017-07 during the three months ended March 31, 2018. To conform prior period amounts to current period presentation as required by ASU 2017-07, the Company recorded retrospective adjustments and reclassified $1.1 million and $1.9 million of expenses from operating costs to other income (expense) in the Condensed Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2017, respectively. There was no change to income before income taxes for all periods presented as a result of adopting ASU 2017-07. Leases (Topic 842) (“ASU 2016-02”): ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize the expenses in their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments, and a right-of-use asset for the underlying leased asset for the period of the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. The Company is in the process of evaluating the implementation of this guidance.

SIGNIFICANT ACCOUNTING POLICI17

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of assigned eligible accounts receivable, and on deposit to the Capital Construction Fund	June 30, December 31, (In millions) 2018 2017 Capital Construction Fund: Cash on deposit $ — $ 0.9 Assigned accounts receivables $ 124.7 $ 134.8
Schedule of condensed income statement information (unaudited) for Terminal Joint Venture	Three Months Ended Six Months Ended June 30, June 30, Condensed Statements of Operating Income and Net Income (unaudited) (in millions) 2018 2017 2018 2017 Operating revenue $ 266.1 $ 214.1 $ 517.0 $ 410.8 Operating costs and expenses (240.4) (194.0) (460.1) (378.0) Operating income 25.7 20.1 56.9 32.8 Net Income (1) 24.3 19.5 55.0 33.8 Company Share of Net Income $ 9.1 $ 6.9 $ 19.6 $ 11.8 (1) Includes earnings from equity method investments held by the Terminal Joint Venture less earnings allocated to non-controlling interests.
Ocean Transportation
Schedule of principal revenue generating activities by segment	Three Months Ended Six Months Ended June 30, June 30, Ocean Transportation (in millions) (1) 2018 2017 2018 2017 Ocean transportation services $ 401.2 $ 388.2 $ 775.9 $ 753.2 Terminal and other related services 0.5 0.8 1.3 1.6 Fuel sales 3.1 2.0 5.2 4.5 Ship management services 1.8 1.7 3.5 3.4 Total $ 406.6 $ 392.7 $ 785.9 $ 762.7 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of Ocean Transportation revenues and fuel sales which are denominated in foreign currencies. § Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. § Terminal and other related service revenues to third parties are recognized as the services are performed. § Fuel sales revenue is recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. Ship management services revenue and related costs are recognized in proportion to the services completed.
Logistics
Schedule of principal revenue generating activities by segment	Three Months Ended Six Months Ended June 30, June 30, Logistics (in millions) (1) 2018 2017 2018 2017 Transportation brokerage and freight forwarding services $ 136.4 $ 106.9 $ 255.6 $ 199.2 Warehouse and distribution services 7.8 7.3 15.2 14.5 Supply chain management and other services 6.3 5.6 11.8 10.5 Total $ 150.5 $ 119.8 $ 282.6 $ 224.2 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories are denominated in foreign currencies. § Logistics transportation brokerage and freight forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, labor and equipment costs. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. § Logistics warehousing and distribution services revenue consists of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage expenses are recognized as incurred. Other warehousing and distribution services revenue and expense are recognized in proportion to the services performed. Supply chain management and other services revenue and related costs are recognized in proportion to the services performed.

REPORTABLE SEGMENTS (Tables)

REPORTABLE SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
REPORTABLE SEGMENTS
Schedule of reportable segment information	Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2017 2018 2017 Operating Revenue: Ocean Transportation $ 406.6 $ 392.7 $ 785.9 $ 762.7 Logistics 150.5 119.8 282.6 224.2 Total Operating Revenue $ 557.1 $ 512.5 $ 1,068.5 $ 986.9 Operating Income: Ocean Transportation (1) $ 36.5 $ 40.0 $ 61.0 $ 55.3 Logistics 9.5 7.0 13.7 8.9 Total Operating Income 46.0 47.0 74.7 64.2 Interest expense, net (5.0) (6.3) (10.0) (12.6) Other income (expense), net 0.4 (1.1) 1.2 (1.9) Income before Income Taxes 41.4 39.6 65.9 49.7 Income taxes (8.8) (15.6) (19.1) (18.7) Net Income $ 32.6 $ 24.0 $ 46.8 $ 31.0 Ocean Transportation segment information includes $9.1 million and $6.9 million of equity in income from the Terminal Joint Venture for the three months ended June 30, 2018 and 2017, and $19.6 million and $11.8 million for the six months ended June 30, 2018 and 2017, respectively.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2018
PROPERTY AND EQUIPMENT
Schedule of property and equipment	June 30, December 31, (In millions) 2018 2017 Cost: Vessels $ 1,442.1 $ 1,433.6 Containers and equipment 530.2 543.0 Terminal facilities and other property 65.9 64.8 Vessel construction in progress 543.4 376.6 Other construction in progress 35.8 26.2 Total Property and Equipment 2,617.4 2,444.2 Less: Accumulated Depreciation Total Property and Equipment, net $ 1,307.1 $ 1,165.7

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
GOODWILL AND INTANGIBLES ASSETS
Schedule of goodwill	Goodwill by segment at both June 30, 2018 and December 31, 2017 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 218.5 $ 105.2 $ 323.7
Schedule of intangible assets	June 30, December 31, (In millions) 2018 2017 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 90.1 90.1 Total 230.7 230.7 Less: Accumulated Amortization (38.4) (32.8) Total Customer Relationships, net 192.3 197.9 Trade name - Logistics 27.3 27.3 Total Intangible Assets, net $ 219.6 $ 225.2

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
DEBT
Schedule of debt	Debt at June 30, 2018 and December 31, 2017 consisted of the following: June 30, December 31, (In millions) 2018 2017 Private Placement Term Loans: 5.79 %, payable through 2020 $ $ 17.5 3.66 %, payable through 2023 50.1 4.16 %, payable through 2027 49.8 3.37 %, payable through 2027 75.0 3.14 %, payable through 2031 200.0 4.31 %, payable through 2032 35.1 4.35 %, payable through 2044 100.0 3.92 %, payable through 2045 73.2 Title XI Bonds: 5.34 %, payable through 2028 24.2 5.27 %, payable through 2029 26.4 Revolving credit facility 205.0 Capital leases 0.8 Total Debt 932.5 857.1 Less: Current portion (30.8) Total Long-term Debt $ 896.2 $ 826.3

ACCUMULATED OTHER COMPREHENSI22

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2018
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax	Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2018 consisted of the following: Accumulated Non- Other Post Qualified Comprehensive (In millions) Pensions Retirement Plans Other Income (Loss) Balance at December 31, 2017 $ (40.6) $ 15.6 $ (0.3) $ 0.4 $ (24.9) Amortization of prior service cost (0.4) (0.9) — — (1.3) Amortization of net loss 0.9 0.3 0.1 — 1.3 Remeasurement adjustment related to the Tax Act (1) (9.2) 3.4 (0.2) — (6.0) Other adjustments — — — 0.2 0.2 Balance at March 31, 2018 (49.3) 18.4 (0.4) 0.6 (30.7) Amortization of prior service cost (0.5) (0.5) (0.1) — (1.1) Amortization of net loss 0.9 0.2 0.1 (0.7) 0.5 Other adjustments — — — (0.3) (0.3) Balance at June 30, 2018 $ (48.9) $ 18.1 $ (0.4) $ (0.4) $ (31.6) (1) Reclassification from accumulated other comprehensive income (loss) to retained earnings for the remeasurement tax effects resulting from the Tax Act in accordance with ASU 2018-02 . Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2017 consisted of the following: Accumulated Non- Other Post Qualified Comprehensive (In millions) Pensions Retirement Plans Other Income (Loss) Balance at December 31, 2016 $ (41.4) $ 18.1 $ (0.4) $ 0.1 $ (23.6) Amortization of prior service cost (0.4) — — — (0.4) Amortization of net loss 0.8 0.1 — — 0.9 Other adjustments — — — 0.2 0.2 Balance at March 31, 2017 (41.0) 18.2 (0.4) 0.3 (22.9) Net gain in prior service cost — — — 0.1 0.1 Amortization of prior service cost (0.3) — — — (0.3) Amortization of net loss 0.8 0.3 0.1 — 1.2 Balance at June 30, 2017 $ (40.5) $ 18.5 $ (0.3) $ 0.4 $ (21.9)

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
FAIR VALUE MEASUREMENTS
Schedule of fair value measurement	The carrying value and fair value of the Company’s financial instruments as of June 30, 2018 and December 31, 2017 were as follows: Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) June 30, 2018 Fair Value Measurements at June 30, 2018 Cash and cash equivalents $ 12.8 $ 12.8 $ 12.8 $ — $ — Variable rate debt 295.0 295.0 — 295.0 — Fixed rate debt 637.5 616.3 — 616.3 — (In millions) December 31, 2017 Fair Value Measurements at December 31, 2017 Cash and cash equivalents $ 19.8 $ 19.8 $ 19.8 $ — $ — CCF - cash on deposit 0.9 0.9 — 0.9 — Variable rate debt 205.0 205.0 — 205.0 — Fixed rate debt 652.1 651.4 — 651.4 —

EARNINGS PER-SHARE (Tables)

EARNINGS PER-SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
EARNINGS PER-SHARE
Schedule of basic and diluted earnings per share	Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per-share amounts) Income Shares Amount Income Shares Amount Basic: $ 32.6 42.7 $ 0.76 $ 46.8 42.6 $ 1.10 Effect of Dilutive Securities: 0.3 — 0.3 (0.01) Diluted: $ 32.6 43.0 $ 0.76 $ 46.8 42.9 $ 1.09 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per-share amounts) Income Shares Amount Income Shares Amount Basic: $ 24.0 43.1 $ 0.56 $ 31.0 43.1 $ 0.72 Effect of Dilutive Securities: 0.2 (0.01) 0.2 — Diluted: $ 24.0 43.3 $ 0.55 $ 31.0 43.3 $ 0.72

PENSION AND POST-RETIREMENT P25

PENSION AND POST-RETIREMENT PLANS (Tables)	6 Months Ended
	Jun. 30, 2018
PENSION AND POST-RETIREMENT PLANS
Components of net periodic benefit cost (benefit)	Pension Benefits Post-retirement Benefits Three Months Ended June 30, Three Months Ended June 30, (In millions) 2018 2017 2018 2017 Components of net periodic benefit cost (benefit): Service cost $ 1.1 $ 0.9 $ 0.1 $ 0.4 Interest cost 2.1 2.4 0.3 0.7 Expected return on plan assets (3.4) (3.4) — — Amortization of net loss 1.3 1.3 0.4 0.3 Amortization of prior service credit (0.6) (0.5) (0.9) — Net periodic benefit cost $ 0.5 $ 0.7 $ (0.1) $ 1.4 Pension Benefits Post-retirement Benefits Six Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Components of net periodic benefit cost (benefit): Service cost $ 2.2 $ 1.9 $ 0.3 $ 0.8 Interest cost 4.3 4.8 0.5 1.4 Expected return on plan assets (6.8) (6.8) — — Amortization of net loss 2.4 2.5 0.8 0.6 Amortization of prior service credit (1.2) (1.1) (1.8) — Net periodic benefit cost $ 0.9 $ 1.3 $ (0.2) $ 2.8

DESCRIPTION OF THE BUSINESS (De

DESCRIPTION OF THE BUSINESS (Details)	6 Months Ended
	Jun. 30, 2018segmentfacility
DESCRIPTION OF THE BUSINESS
Number of reportable segments | segment	2
Ocean Transportation | SSAT
DESCRIPTION OF THE BUSINESS
Ownership interest in SSAT (as a percent)	35.00%
Number of terminal facilities on which SSAT provided terminal and stevedoring services on the U.S. West Coast	7
MatNav | SSAT
DESCRIPTION OF THE BUSINESS
Number of terminal facilities on which SSAT provided terminal and stevedoring services on the U.S. West Coast	4

SIGNIFICANT ACCOUNTING POLICI27

SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Total	$ 406.6	$ 392.7	$ 785.9	$ 762.7
Total	150.5	119.8	282.6	224.2
Ocean Transportation
Ocean transportation services	401.2	388.2	775.9	753.2
Terminal and other related services	0.5	0.8	1.3	1.6
Fuel sales	3.1	2	5.2	4.5
Ship management services	1.8	1.7	3.5	3.4
Total	406.6	392.7	$ 785.9	$ 762.7
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency			3.00%	3.00%
Logistics
Transportation brokerage and freight forwarding services	136.4	106.9	$ 255.6	$ 199.2
Warehouse and distribution services	7.8	7.3	15.2	14.5
Supply chain management and other services	6.3	5.6	11.8	10.5
Total	$ 150.5	$ 119.8	$ 282.6	$ 224.2
Percentage of transportation brokerage and freight forwarding services revenue denominated in forgeign currency			3.00%	3.00%

SIGNIFICANT ACCOUNTING POLICI28

SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accounts receivable, net	$ 221.7		$ 194.6
Cash Deposits Into CCF	198.3	$ 12.2
Qualifying withdrawal from CCF	199.2	$ 43.4
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	$ 124.7		134.8
Long-term Assets | Cash
Capital Construction Fund - cash on deposit			$ 0.9

SIGNIFICANT ACCOUNTING POLICI29

SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN TERMINAL JOINT VENTURE (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Investments in affiliates
Investment in Terminal Joint Venture	$ 94.4		$ 94.4		$ 93.2
Financial information for equity method investment
Company Share of Net Income	9.1	$ 6.9	19.6	$ 11.8
SSAT
Financial information for equity method investment
Operating revenue	266.1	214.1	517	410.8
Operating costs and expenses	(240.4)	(194)	(460.1)	(378)
Operating Income	25.7	20.1	56.9	32.8
Net Income	$ 24.3	$ 19.5	$ 55	$ 33.8

SIGNIFICANT ACCOUNTING POLICI30

SIGNIFICANT ACCOUNTING POLICIES - INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
SIGNIFICANT ACCOUNTING POLICIES
Tax Act, income tax expense (benefit)	$ (0.2)	$ 3.1
Sequestration rate (as a percent)		6.20%

SIGNIFICANT ACCOUNTING POLICI31

SIGNIFICANT ACCOUNTING POLICIES - NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss, net	$ (31.6)		$ (31.6)			$ (24.9)
Retained earnings	407.9		407.9			$ 381.5
Other income (expense), net	$ 0.4	$ (1.1)	$ 1.2	$ (1.9)
Accounting Standards Update 2018-02 | Adjustments for New Accounting Principle, Early Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss, net					$ (6)
Retained earnings					$ 6
Accounting Standards Update 2017-07 | Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other income (expense), net		$ (1.1)		$ (1.9)

REPORTABLE SEGMENTS (Details)

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment results
Number of segments | segment			2
Operating Revenue	$ 557.1	$ 512.5	$ 1,068.5	$ 986.9
Operating Income	46	47	74.7	64.2
Interest expense, net	(5)	(6.3)	(10)	(12.6)
Other income (expense), net	0.4	(1.1)	1.2	(1.9)
Income before Income Taxes	41.4	39.6	65.9	49.7
Income taxes	(8.8)	(15.6)	(19.1)	(18.7)
Net Income	32.6	24	46.8	31
Equity in income of Terminal Joint Venture	9.1	6.9	19.6	11.8
Operating segments
Segment results
Operating Income	46	47	74.7	64.2
Intersegment Eliminations
Segment results
Operating Revenue	26.8	21.7	45.1	38.6
Ocean Transportation | Operating segments
Segment results
Operating Revenue	406.6	392.7	785.9	762.7
Operating Income	36.5	40	61	55.3
Logistics | Operating segments
Segment results
Operating Revenue	150.5	119.8	282.6	224.2
Operating Income	$ 9.5	$ 7	$ 13.7	$ 8.9

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Property and equipment
Cost	$ 2,617.4	$ 2,444.2
Less: Accumulated Depreciation	(1,310.3)	(1,278.5)
Property and equipment, net	1,307.1	1,165.7
Vessels
Property and equipment
Cost	1,442.1	1,433.6
Containers and equipment
Property and equipment
Cost	530.2	543
Terminal facilities and other property
Property and equipment
Cost	65.9	64.8
Vessel construction in progress
Property and equipment
Cost	543.4	376.6
Capitalized Interest
Interest Costs Capitalized	$ 18.6	10.4
Number of vesels under agreements for contstruction | item	4
Other construction in progress
Property and equipment
Cost	$ 35.8	$ 26.2

GOODWILL AND INTANGIBLES - CHAN

GOODWILL AND INTANGIBLES - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill	$ 323.7	$ 323.7
Ocean Transportation
Goodwill [Line Items]
Goodwill	218.5
Logistics
Goodwill [Line Items]
Goodwill	$ 105.2

GOODWILL AND INTANGIBLES - INTA

GOODWILL AND INTANGIBLES - INTANGIBLE ASSETS NET (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Finite-lived Intangible Assets
Net Amount	$ 219.6	$ 225.2
Trade Names
Finite-lived Intangible Assets
Indefinite-Lived intangible asset	27.3	27.3
Customer Relationships.
Finite-lived Intangible Assets
Total	230.7	230.7
Less: Accumulated Amortization	(38.4)	(32.8)
Net Amount	192.3	197.9
Estimated amortization expenses related to intangibles
Net Amount	192.3	197.9
Ocean Transportation | Customer Relationships.
Finite-lived Intangible Assets
Total	140.6	140.6
Logistics | Customer Relationships.
Finite-lived Intangible Assets
Total	$ 90.1	$ 90.1

DEBT - SUMMARY (Details)

DEBT - SUMMARY (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt
Capital leases	$ 0.3	$ 0.8
Total Debt	932.5	857.1
Less current portion	(36.3)	(30.8)
Total Long-term Debt	896.2	826.3
5.79%, payable through 2020
Debt
Total Debt	$ 14	$ 17.5
Interest rate (as a percent)	5.79%	5.79%
3.66%, payable through 2023
Debt
Total Debt	$ 45.6	$ 50.1
Interest rate (as a percent)	3.66%	3.66%
4.16%, payable through 2027
Debt
Total Debt	$ 47.1	$ 49.8
Interest rate (as a percent)	4.16%	4.16%
3.37 %, payable through 2027
Debt
Total Debt	$ 75	$ 75
Interest rate (as a percent)	3.37%	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 200	$ 200
Interest rate (as a percent)	3.14%	3.14%
4.31%, payable through 2032
Debt
Total Debt	$ 33.9	$ 35.1
Interest rate (as a percent)	4.31%	4.31%
4.35%, payable through 2044
Debt
Total Debt	$ 100	$ 100
Interest rate (as a percent)	4.35%	4.35%
3.92%, payable through 2045
Debt
Total Debt	$ 73.2	$ 73.2
Interest rate (as a percent)	3.92%	3.92%
5.34%, payable through 2028
Debt
Total Debt	$ 23.1	$ 24.2
Interest rate (as a percent)	5.34%	5.34%
5.27%, payable through 2029
Debt
Total Debt	$ 25.3	$ 26.4
Interest rate (as a percent)	5.27%	5.27%
Revolving Credit Facility
Debt
Total Debt	$ 295	$ 205
Funds available under the revolving credit facility	$ 236.3
Interest rate during period (as a percent)	3.33%

ACCUMULATED OTHER COMPREHENSI37

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2018	Jun. 30, 2017
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period		$ 678.2			$ 678.2
Net gain in prior service cost			$ 0.1			$ 0.1
Amortization of prior service cost	$ (1.1)		(0.3)		(2.4)	(0.7)
Amortization of net loss	0.5		1.2		1.8	2.1
Other adjustments	(0.3)				(0.1)	0.2
Balance at the end of the period	699.5				699.5
Pensions
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(49.3)	(40.6)	(41)	$ (41.4)	(40.6)	(41.4)
Amortization of prior service cost	(0.5)	(0.4)	(0.3)	(0.4)
Amortization of net loss	0.9	0.9	0.8	0.8
Remeasurement adjustment related to the Tax Act		(9.2)
Balance at the end of the period	(48.9)	(49.3)	(40.5)	(41)	(48.9)	(40.5)
Post Retirement
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	18.4	15.6	18.2	18.1	15.6	18.1
Amortization of prior service cost	(0.5)	(0.9)
Amortization of net loss	0.2	0.3	0.3	0.1
Remeasurement adjustment related to the Tax Act		3.4
Balance at the end of the period	18.1	18.4	18.5	18.2	18.1	18.5
Non-Qualified Plans
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.4)	(0.3)	(0.4)	(0.4)	(0.3)	(0.4)
Amortization of prior service cost	(0.1)
Amortization of net loss	0.1	0.1	0.1
Remeasurement adjustment related to the Tax Act		(0.2)
Balance at the end of the period	(0.4)	(0.4)	(0.3)	(0.4)	(0.4)	(0.3)
Other
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	0.6	0.4	0.3	0.1	0.4	0.1
Net gain in prior service cost			0.1
Amortization of net loss	(0.7)
Other adjustments	(0.3)	0.2		0.2
Balance at the end of the period	(0.4)	0.6	0.4	0.3	(0.4)	0.4
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(30.7)	(24.9)	(22.9)	(23.6)	(24.9)	(23.6)
Net gain in prior service cost			0.1
Amortization of prior service cost	(1.1)	(1.3)	(0.3)	(0.4)
Amortization of net loss	0.5	1.3	1.2	0.9
Remeasurement adjustment related to the Tax Act		(6)
Other adjustments	(0.3)	0.2		0.2
Balance at the end of the period	$ (31.6)	$ (30.7)	$ (21.9)	$ (22.9)	$ (31.6)	$ (21.9)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Carrying value
Fair value of financial instruments
Cash and cash equivalents	$ 12.8	$ 19.8
CCF - cash on deposit		0.9
Variable rate debt	295	205
Fixed rate debt	637.5	652.1
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	12.8	19.8
CCF - cash on deposit		0.9
Variable rate debt	295	205
Fixed rate debt	616.3	651.4
Fair Value Measurement | Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	12.8	19.8
Fair Value Measurement | Significant Observable Inputs (Level 2)
Fair value of financial instruments
CCF - cash on deposit		0.9
Variable rate debt	295	205
Fixed rate debt	$ 616.3	$ 651.4

EARNINGS PER-SHARE (Details)

EARNINGS PER-SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net Income
Net Income, Basic	$ 32.6	$ 24	$ 46.8	$ 31
Net Income, Diluted	$ 32.6	$ 24	$ 46.8	$ 31
Weighted Average Common Shares
Basic (in shares)	42.7	43.1	42.6	43.1
Effect of Dilutive Securities (in shares)	0.3	0.2	0.3	0.2
Diluted (in shares)	43	43.3	42.9	43.3
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 0.76	$ 0.56	$ 1.10	$ 0.72
Effect of Dilutive Securities (in dollars per shares)		(0.01)	(0.01)
Net income, Diluted (in dollars per share)	$ 0.76	$ 0.55	$ 1.09	$ 0.72

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Time-based and performance-based shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based compensation
Shares granted	29,400		381,000
Weighted-average grant date fair value (in dollars per share)	$ 29.09		$ 31.18
Total unrecognized compensation cost	$ 17.4		$ 17.4
Unrecognized compensation cost over weighted-average period to be recognized			2 years
Selling, general and administrative expenses
Share-based compensation
Total stock-based compensation cost	$ 2.8	$ 2.3	$ 5.5	$ 4.9

PENSION AND POST-RETIREMENT P41

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$ 1.1	$ 0.9	$ 2.2	$ 1.9
Interest cost	2.1	2.4	4.3	4.8
Expected return on plan assets	(3.4)	(3.4)	(6.8)	(6.8)
Amortization of net loss	1.3	1.3	2.4	2.5
Amortization of prior service credit	(0.6)	(0.5)	(1.2)	(1.1)
Net periodic benefit cost	0.5	0.7	0.9	1.3
Post-retirement Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	0.1	0.4	0.3	0.8
Interest cost	0.3	0.7	0.5	1.4
Amortization of net loss	0.4	0.3	0.8	0.6
Amortization of prior service credit	(0.9)		(1.8)
Net periodic benefit cost	$ (0.1)	$ 1.4	$ (0.2)	$ 2.8