Matson (MATX) 10-Q8 Nov 192019 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2019shares
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2019
Entity File Number	001-34187
Entity Registrant Name	Matson, Inc.
Entity Incorporation, State or Country Code	HI
Entity Tax Identification Number	99-0032630
Entity Address, Address Line One	1411 Sand Island Parkway
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96819
City Area Code	808
Local Phone Number	848-1211
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	MATX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	42,866,825
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000003453
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating Revenue:
Total Operating Revenue	$ 572.1	$ 589.4	$ 1,662.4	$ 1,657.9
Costs and Expenses:
Operating costs	(472.6)	(485.5)	(1,412.5)	(1,390.7)
Equity in income of Terminal Joint Venture	8.4	9.2	17.8	28.8
Selling, general and administrative	(52.7)	(54.5)	(164)	(162.7)
Total Costs and Expenses	(516.9)	(530.8)	(1,558.7)	(1,524.6)
Operating Income	55.2	58.6	103.7	133.3
Interest expense	(6.2)	(4.4)	(16.9)	(14.4)
Other income (expense), net	(0.5)	0.7	0.9	1.9
Income before Income Taxes	48.5	54.9	87.7	120.8
Income taxes	(12.3)	(13.3)	(20.6)	(32.4)
Net Income	36.2	41.6	67.1	88.4
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	36.2	41.6	67.1	88.4
Other Comprehensive Income (Loss):
Amortization of prior service cost	(1)	(1.1)	(3.3)	(3.5)
Amortization of net loss (gain)	1.2	1.1	3	2.9
Other adjustments	(0.7)	0.1	(0.9)
Total Other Comprehensive Income (Loss)	(0.5)	0.1	(1.2)	(0.6)
Comprehensive Income	$ 35.7	$ 41.7	$ 65.9	$ 87.8
Basic Earnings Per-Share: (in dollars per share)	$ 0.84	$ 0.97	$ 1.57	$ 2.07
Diluted Earnings Per-Share: (in dollars per share)	$ 0.84	$ 0.97	$ 1.55	$ 2.06
Weighted Average Number of Shares Outstanding:
Basic (in shares)	42.9	42.7	42.8	42.7
Diluted (in shares)	43.3	43.1	43.2	43
Ocean Transportation
Operating Revenue:
Total Operating Revenue	$ 437.2	$ 437.3	$ 1,250.5	$ 1,223.2
Logistics
Operating Revenue:
Total Operating Revenue	$ 134.9	$ 152.1	$ 411.9	$ 434.7

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 23.6	$ 19.6
Accounts receivable, net	223.9	223.7
Prepaid expenses and other assets	52	75.1
Total current assets	299.5	318.4
Long-term Assets:
Investment in Terminal Joint Venture	83.7	87
Property and equipment, net	1,485.5	1,366.6
Operating lease right of use assets	246
Goodwill	327.8	327.8
Intangible assets, net	205.7	214
Deferred dry-docking costs, net	56	67.1
Other long-term assets	49.6	49.5
Total long-term assets	2,454.3	2,112
Total Assets	2,753.8	2,430.4
Current Liabilities:
Current portion of debt	48.4	42.1
Accounts payable	235	246.8
Operating lease liabilities	64.4
Accruals and other liabilities	89.9	81.9
Total current liabilities	437.7	370.8
Long-term Liabilities:
Long-term debt	834.6	814.3
Long-term operating lease liabilities	190
Deferred income taxes	335.9	312.7
Other long-term liabilities	157.9	177.3
Total long-term liabilities	1,518.4	1,304.3
Commitments and Contingencies (Note 2)
Shareholders' Equity:
Common stock	32.2	32
Additional paid in capital	303.2	297.8
Accumulated other comprehensive loss, net	(35.7)	(34.5)
Retained earnings	498	460
Total shareholders' equity	797.7	755.3
Total liabilities and shareholders' equity	$ 2,753.8	$ 2,430.4

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows From Operating Activities:
Net income	$ 67.1	$ 88.4
Reconciling adjustments:
Depreciation and amortization	73.4	70.8
Non-cash operating lease expense	52.3
Deferred income taxes	21.9	26.5
Share-based compensation expense	8.7	8.2
Equity in income of Terminal Joint Venture	(17.8)	(28.8)
Distribution from Terminal Joint Venture	14.7	42
Other	(1.5)	(2.1)
Changes in assets and liabilities:
Accounts receivable, net	(0.2)	(46.1)
Deferred dry-docking payments	(17.9)	(10.5)
Deferred dry-docking amortization	25.9	27.5
Prepaid expenses and other assets	25.3	3
Accounts payable, accruals and other liabilities	(11.7)	24.8
Operating lease liabilities	(51.7)
Other long-term liabilities	(8.1)	(0.7)
Net cash provided by operating activities	180.4	203
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(108.7)	(222.6)
Other capital expenditures	(62.7)	(44.7)
Proceeds from disposal of property and equipment	3.1	31.3
Cash deposits into Capital Construction Fund	(68.2)	(246.6)
Withdrawals from Capital Construction Fund	68.2	247.5
Other		3.7
Net cash used in investing activities	(168.3)	(231.4)
Cash Flows From Financing Activities:
Repayments of debt and capital leases	(28.4)	(17)
Proceeds from revolving credit facility	383.3	389.4
Repayments of revolving credit facility	(328.3)	(321.4)
Proceeds from issuance of capital stock	0.1	0.5
Dividends paid	(27.7)	(26.3)
Tax withholding related to net share settlements of restricted stock units	(3.3)	(4.5)
Net cash (used in) provided by financing activities	(4.3)	20.7
Net Decrease in Cash, Cash Equivalents and Restricted Cash	7.8	(7.7)
Cash, Cash Equivalents and Restricted Cash, Beginning of the Period	24.5	19.8
Cash, Cash Equivalents and Restricted Cash, End of the Period	32.3	12.1
Reconciliation of Cash, Cash Equivalents, and Restricted Cash, at End of the Year:
Cash and Cash Equivalents	23.6	12.1
Restricted Cash	8.7
Cash, Cash Equivalents and Restricted Cash, End of the Period	32.3	12.1
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	16.8	14.5
Income tax paid, net of income tax refunds	(25.7)	4.6
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$ 9.8	$ 0.4

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at the beginning of the period at Dec. 31, 2017	$ 31.9	$ 289.7	$ (24.9)	$ 380.5	$ 677.2
Balance (in shares) at Dec. 31, 2017	42.5
Increase (Decrease) in Stockholders' Equity
Adoption of new lease accounting standard			(6)	6
Net income				14.2	14.2
Other comprehensive income (loss), net of tax			0.2		0.2
Share-based compensation		2.7			2.7
Shares issued, net of shares withheld for employee taxes	$ 0.1	(4.3)			(4.2)
Shares issued, net of shares withheld for employee taxes (in shares)	0.2
Dividends				(8.7)	(8.7)
Balance at the end of the period at Mar. 31, 2018	$ 32	288.1	(30.7)	392	681.4
Balance (in shares) at Mar. 31, 2018	42.7
Balance at the beginning of the period at Dec. 31, 2017	$ 31.9	289.7	(24.9)	380.5	677.2
Balance (in shares) at Dec. 31, 2017	42.5
Increase (Decrease) in Stockholders' Equity
Net income					88.4
Other comprehensive income (loss), net of tax					(0.6)
Balance at the end of the period at Sep. 30, 2018	$ 32	293.7	(31.5)	448.5	742.7
Balance (in shares) at Sep. 30, 2018	42.7
Balance at the beginning of the period at Mar. 31, 2018	$ 32	288.1	(30.7)	392	681.4
Balance (in shares) at Mar. 31, 2018	42.7
Increase (Decrease) in Stockholders' Equity
Net income				32.6	32.6
Other comprehensive income (loss), net of tax			(0.9)		(0.9)
Share-based compensation		2.8			2.8
Shares issued, net of shares withheld for employee taxes		0.3			0.3
Dividends				(17.7)	(17.7)
Balance at the end of the period at Jun. 30, 2018	$ 32	291.2	(31.6)	406.9	698.5
Balance (in shares) at Jun. 30, 2018	42.7
Increase (Decrease) in Stockholders' Equity
Net income				41.6	41.6
Other comprehensive income (loss), net of tax			0.1		0.1
Share-based compensation		2.7			2.7
Shares issued, net of shares withheld for employee taxes		(0.2)			(0.2)
Balance at the end of the period at Sep. 30, 2018	$ 32	293.7	(31.5)	448.5	742.7
Balance (in shares) at Sep. 30, 2018	42.7
Balance at the beginning of the period at Dec. 31, 2018	$ 32	297.8	(34.5)	460	755.3
Balance (in shares) at Dec. 31, 2018	42.7
Increase (Decrease) in Stockholders' Equity
Adoption of new lease accounting standard				4.4	4.4
Net income				12.5	12.5
Other comprehensive income (loss), net of tax			(0.2)		(0.2)
Share-based compensation		3.2			3.2
Shares issued, net of shares withheld for employee taxes	$ 0.1	(3.2)			(3.1)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Dividends				(9.1)	(9.1)
Balance at the end of the period at Mar. 31, 2019	$ 32.1	297.8	(34.7)	467.8	763
Balance (in shares) at Mar. 31, 2019	42.8
Balance at the beginning of the period at Dec. 31, 2018	$ 32	297.8	(34.5)	460	755.3
Balance (in shares) at Dec. 31, 2018	42.7
Increase (Decrease) in Stockholders' Equity
Net income					67.1
Other comprehensive income (loss), net of tax					(1.2)
Balance at the end of the period at Sep. 30, 2019	$ 32.2	303.2	(35.7)	498	797.7
Balance (in shares) at Sep. 30, 2019	42.9
Balance at the beginning of the period at Mar. 31, 2019	$ 32.1	297.8	(34.7)	467.8	763
Balance (in shares) at Mar. 31, 2019	42.8
Increase (Decrease) in Stockholders' Equity
Net income				18.4	18.4
Other comprehensive income (loss), net of tax			(0.5)		(0.5)
Share-based compensation		3			3
Shares issued, net of shares withheld for employee taxes		(0.1)			(0.1)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Dividends				(18.6)	(18.6)
Balance at the end of the period at Jun. 30, 2019	$ 32.1	300.7	(35.2)	467.6	765.2
Balance (in shares) at Jun. 30, 2019	42.9
Increase (Decrease) in Stockholders' Equity
Adoption of new lease accounting standard				(5.6)	(5.6)
Net income				36.2	36.2
Other comprehensive income (loss), net of tax			(0.5)		(0.5)
Share-based compensation		2.5			2.5
Shares issued, net of shares withheld for employee taxes	$ 0.1				0.1
Dividends				(0.2)	(0.2)
Balance at the end of the period at Sep. 30, 2019	$ 32.2	$ 303.2	$ (35.7)	$ 498	$ 797.7
Balance (in shares) at Sep. 30, 2019	42.9

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2018
Condensed Consolidated Statement of Stockholders' Equity
Dividends (per share)	$ 0.22	$ 0.22	$ 0.21	$ 0.21	$ 0.20
Retained earnings	$ 498					$ 460

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS	9 Months Ended
DESCRIPTION OF THE BUSINESS	Sep. 30, 2019
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 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 facilities which are used by MatNav (“Terminal Joint Venture”). Matson records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statements of Income and Comprehensive Income, and within the Ocean Transportation segment due to the nature of SSAT’s operations. Logistics: Matson’s Logistics business is conducted through Matson Logistics, Inc. (“Matson Logistics”), a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics is an asset-light business that provides a variety of 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 (NVOCC) freight forwarding and other services.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2019
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 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, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 4, 2019. Fiscal Period: The period end for Matson covered by this report is September 30, 2019. The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in September, or September 27, 2019, for the third quarter 2019. 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, 2018. Leases: Leases (“ASC 842”) on January 1, 2019. ASC 842 Recognition of Revenues and Related Costs: 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 Nine Months Ended September 30, September 30, Ocean Transportation (in millions) (1) 2019 2018 2019 2018 Ocean Transportation services $ 424.1 $ 424.2 $ 1,218.6 $ 1,190.3 Terminal and other related services 8.3 8.0 19.8 19.2 Fuel sales 3.3 3.4 7.9 8.5 Vessel management and related services 1.5 1.7 4.2 5.2 Total $ 437.2 $ 437.3 $ 1,250.5 $ 1,223.2 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. Three Months Ended Nine Months Ended September 30, September 30, Logistics (in millions) (1) 2019 2018 2019 2018 Transportation Brokerage and Freight Forwarding services $ 127.4 $ 144.2 $ 388.5 $ 411.7 Warehouse and distribution services 4.6 4.5 15.2 13.3 Supply chain management and other services 2.9 3.4 8.2 9.7 Total $ 134.9 $ 152.1 $ 411.9 $ 434.7 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. ◾ 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. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenues, and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. Capital Construction Fund: The Company’s Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. million of eligible accounts receivable were assigned to the CCF, respectively. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets. Cash on deposit in the CCF is held in a money market account and classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the three and nine months ended September 30, 2019, the Company deposited million from the CCF, respectively. The balance of cash on deposit at September 30, 2019 and December 31, 2018 was nominal. Investment in Terminal Joint Venture: Condensed income statement information (unaudited) for the Terminal Joint Venture for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Operating revenue $ 288.7 $ 289.4 $ 825.6 $ 806.5 Operating costs and expenses (262.6) (259.5) (771.8) (719.7) Operating income 26.1 29.9 53.8 86.8 Net Income (1) $ 23.3 $ 27.7 $ 50.1 $ 82.7 Company Share of SSAT's Net Income (2) $ 8.4 $ 9.2 $ 17.8 $ 28.8 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations. The Company recorded a net adjustment of $5.6 million that reduced its Investment in Terminal Joint Venture with a corresponding reduction in retained earnings in the Condensed Consolidated Balance Sheets at September 30, 2019. This resulted from the adoption of ASC 842 by SSAT. The Company’s investment in SSAT was Income Taxes: million that increased income taxes for the nine months ended September 30, 2018. This adjustment related to the application of an estimated percent sequestration on alternative minimum tax (AMT) refunds due to the Company, and was based on guidance issued by the Internal Revenue Service (IRS) and emerging interpretations of the Tax Act during that period. On January 19, 2019, the IRS issued new guidance indicating that sequestration would not apply to refundable AMT credits. In accordance with this new guidance, the Company recorded a non-cash tax adjustment of million that decreased income taxes for the nine months ended September 30, 2019. amounts related to the Tax Act impacted income taxes during the three months ended September 30, 2019 and 2018. The Company continues to assess the impact of the Tax Act, related interpretations and other tax legislation, 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: Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows. Dividends: The Company’s third quarter 2019 cash dividend of $0.22 per share was paid on September 5, 2019. On October 25, 2019, the Company’s Board of Directors declared a cash dividend of $0.22 per share payable on December 5, 2019. New Accounting Pronouncements: Measurement of Credit Losses on Financial Instruments : In June 2016, the Financial Accounting Standards Board issued ASU 2016- 13 which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities and other financial instruments. ASU 2016- 13 requires entities to establish a valuation allowance for the expected lifetime losses of certain financial instruments. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses is permitted. The new standard is effective for interim and annual periods beginning on or after December 15, 2019, and early adoption is permitted. The Company is in the process of evaluating this new standard, but does not expect the adoption of ASU 2016-13 to have a significant impact on the Company’s Consolidated Financial Statements.

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS	9 Months Ended
REPORTABLE SEGMENTS	Sep. 30, 2019
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 in certain transactions. Accordingly, inter-segment revenue of $28.2 million and $27.6 million for the three months ended September 30, 2019 and 2018, and $75.3 million and $72.7 million for the nine months ended September 30, 2019 and 2018, respectively, have been eliminated from operating revenues in the table below. Reportable segment financial information for the three and nine months ended September 30, 2019 and 2018 are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Operating Revenue: Ocean Transportation (1) $ 437.2 $ 437.3 $ 1,250.5 $ 1,223.2 Logistics (2) 134.9 152.1 411.9 434.7 Total Operating Revenue $ 572.1 $ 589.4 $ 1,662.4 $ 1,657.9 Operating Income: Ocean Transportation (3) $ 43.9 $ 48.7 $ 73.0 $ 109.7 Logistics 11.3 9.9 30.7 23.6 Total Operating Income 55.2 58.6 103.7 133.3 Interest expense, net (6.2) (4.4) (16.9) (14.4) Other income (expense), net (0.5) 0.7 0.9 1.9 Income before Income Taxes 48.5 54.9 87.7 120.8 Income taxes (12.3) (13.3) (20.6) (32.4) Net Income $ 36.2 $ 41.6 $ 67.1 $ 88.4 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $14.0 million and $15.2 million for the three months ended September 30, 2019 and 2018, and $39.2 million and $39.9 million for the nine months ended September 30, 2019 and 2018, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $14.2 million and $12.4 million for the three months ended September 30, 2019 and 2018, and $36.1 million and $32.8 million for the nine months ended September 30, 2019 and 2018, respectively. (3) Ocean Transportation segment information includes $8.4 million and $9.2 million of equity in income from the Company’s investment in SSAT for the three months ended September 30, 2019 and 2018, and $17.8 million and $28.8 million for the nine months ended September 30, 2019 and 2018, respectively.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
PROPERTY AND EQUIPMENT	Sep. 30, 2019
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Property and equipment at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, (In millions) 2019 2018 Cost: Vessels $ 1,647.7 $ 1,489.2 Containers and equipment 534.7 513.6 Terminal facilities and other property 87.8 66.0 Vessel construction in progress 382.4 487.2 Other construction in progress 53.9 59.2 Total Property and Equipment 2,706.5 2,615.2 Less: Accumulated Depreciation (1,221.0) (1,248.6) Total Property and Equipment, net $ 1,485.5 $ 1,366.6 Vessel construction in progress relates to progress payments for the construction of new vessels, capitalized owner’s items and capitalized interest. During the nine months ended September 30, 2019, the construction of MV Kaimana Hila million of capitalized interest, being transferred from the Vessel construction in progress category to the Vessels category within Property and Equipment. Capitalized interest included in Vessel construction in progress was

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES	9 Months Ended
GOODWILL AND INTANGIBLES	Sep. 30, 2019
GOODWILL AND INTANGIBLES ASSETS
GOODWILL AND INTANGIBLES ASSETS	5. GOODWILL AND INTANGIBLES Goodwill by segment at September 30, 2019 and December 31, 2018 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8 Intangible assets at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, (In millions) 2019 2018 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 90.1 90.1 Total 230.7 230.7 Less: Accumulated Amortization (52.3) (44.0) Total Customer Relationships, net 178.4 186.7 Trade name - Logistics 27.3 27.3 Total Intangible Assets, net $ 205.7 $ 214.0

DEBT

DEBT	9 Months Ended
DEBT	Sep. 30, 2019
DEBT
DEBT	6. DEBT At September 30, 2019 and December 31, 2018, the Company’s debt consisted of the following: September 30, December 31, (In millions) 2019 2018 Private Placement Term Loans: 5.79 %, payable through 2020 $ 7.0 $ 10.5 3.66 %, payable through 2023 36.5 41.0 4.16 %, payable through 2027 41.9 44.5 3.37 %, payable through 2027 75.0 75.0 3.14 %, payable through 2031 188.0 200.0 4.31 %, payable through 2032 31.4 32.7 4.35 %, payable through 2044 100.0 100.0 3.92 %, payable through 2045 71.4 71.4 Title XI Bonds: 5.34 %, payable through 2028 19.8 22.0 5.27 %, payable through 2029 22.0 24.2 Revolving credit facility, maturity date of June 29, 2022 290.0 235.0 Capital leases — 0.1 Total Debt 883.0 856.4 Less: Current portion (48.4) (42.1) Total Long-term Debt $ 834.6 $ 814.3 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, 2018. 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 September 30, 2019, the Company had $168.1 million of remaining availability under the revolving credit facility. The average interest rate on borrowings under the revolving credit facility was approximately

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2019
LEASES
LEASES	7. LEASES New Lease Accounting Standard: The Company adopted the new lease accounting standard ASC 842 on January 1, 2019, and made the following elections: ◾ Applied the transition requirements that resulted in a cumulative-effect adjustment of $4.4 million recorded to retained earnings at January 1, 2019, due to the elimination of deferred gains from the Company’s sale and leaseback transactions recorded in the Consolidated Balance Sheet as of December 31, 2018; ◾ Elected to apply the package of practical expedient permitted under the transition guidance which allows, among other things, the historical lease classification and initial direct costs to be carried forward; ◾ Elected the short-term lease exception which allows the Company to exclude leases with an initial term of one year or less from recognition on the Condensed Consolidated Balance Sheets; ◾ Elected to separate non-lease components by underlying asset class for real estate and terminal leases and operations equipment leases; and ◾ Elected to use a portfolio approach in applying discount rates to leases based upon the lease terms in the following categories: (i) one to five years; (ii) six to ten years; (iii) eleven to fifteen years; and (iv) sixteen years and greater, regardless of the type of underlying asset class. Upon adoption of ASC 842, the Company recorded a right-of-use asset of $251.4 million and a corresponding operating lease liability of $259.1 million. As part of the adoption, the Company recorded a net adjustment to retained earnings of million. The adoption of ASC 842 did not have a significant impact on the Company’s current earnings, liquidity or existing debt covenant requirements. Significant assumptions and judgments made in applying the new lease accounting standard include determining the Company’s incremental borrowing rate and evaluating the probability of exercising lease options. Description of Operating Leases: The Company has different types of operating leases, the specific terms and conditions of which vary from lease to lease. Certain operating lease agreements include terms such as: (i) renewal and early termination options; (ii) early buy-out and purchase options; and (iii) rent escalation clauses. The lease agreements also include provisions for the maintenance of the leased asset and payment of lease related costs. The Company reviews the specific terms and conditions of each lease and, as appropriate, notifies the lessor of any intent to exercise any option in accordance with the terms of the lease. In the normal course of business, the Company expects to be able to renew or replace most of its operating leases with other similar leases as they expire. Except for the residual value guarantee described below, the Company’s leases do not contain any other residual value guarantees. The Company’s sub-lease income was nominal to the Company’s Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2019. The Company did not have any finance leases during the nine months ended September 30, 2019. Certain of the Company’s lease agreements include rental payments that may be adjusted in the future based on economic conditions and others include rental payments adjusted periodically for inflation. Variable lease expense is disclosed for the adjusted portion of such payments. The lease type by underlying asset class and maximum terms of the Company’s operating leases are as follows: Lease Type: Life Real estate and terminal leases 65 years Vessel charter leases 10 years Operations equipment and other leases 8 years Incremental Borrowing Rate: As most of the Company’s operating leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate based on information available at the date of adoption and subsequent lease commencement dates in calculating the present value of its operating lease liabilities. The incremental borrowing rate is determined using the U.S. Treasury rate adjusted to account for the Company’s credit rating and the collateralized nature of operating leases. Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three and nine months ended September 30, 2019 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Operating lease cost $ 18.8 $ 52.3 Short-term lease cost 0.9 5.8 Variable lease cost 0.1 0.3 Total lease cost $ 19.8 $ 58.4 Other Lease Information: Other information related to the Company’s operating leases for the three and nine months ended September 30, 2019 is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Cash paid for amounts included in operating lease liabilities $ 18.9 $ 52.2 Right of use assets obtained in the exchange for new operating lease liabilities $ 23.7 $ 38.9 As of September 30, 2019 Weighted-average remaining operating lease term 7.6 years Weighted-average incremental borrowing rate 4.3% Maturities of operating lease liabilities at September 30, 2019 are as follows: As of Year (in millions) September 30, 2019 2019 $ 18.9 2020 70.9 2021 49.1 2022 38.5 2023 34.8 Thereafter 92.4 Total lease payments 304.6 Less: Interest (50.2) Present value of operating lease liabilities 254.4 Less: Short-term portion (64.4) Long-term operating lease liabilities $ 190.0 Future minimum payments under non-cancellable operating lease agreements at December 31, 2018 are as follows: Year (in millions) Total 2019 $ 68.3 2020 59.2 2021 44.8 2022 34.7 2023 30.5 Thereafter 83.6 Total minimum lease payments $ 321.1 Residual Value Guarantee: On November 26, 2018, a wholly-owned subsidiary of the Company entered into a Bareboat Charter Agreement (the “Charter”). Charter lease payments are approximately $3.0 million per quarter and are included in the operating lease liabilities described above. The base term of the Charter is five years with a two year end-of-term renewal option. The Charter also includes a maximum residual value guarantee amount of $50.9 million after five years , or $47.7 million after the extended term. The residual value guarantee is excluded from operating lease liabilities described above as the Company determined that it is not probable that any portion of the residual value guarantee will be paid by the Company. The Charter and residual value guarantee are described in Note 9 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Sep. 30, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2019 consisted of the following: Accumulated Non- Other Post- Qualified Comprehensive (In millions) Pensions Retirement Plans Other Income (Loss) Balance at December 31, 2018 $ (55.8) $ 21.7 $ (0.1) $ (0.3) $ (34.5) Amortization of prior service cost (0.4) (0.7) — — (1.1) Amortization of net loss 0.7 0.2 — — 0.9 Balance at March 31, 2019 (55.5) 21.2 (0.1) (0.3) (34.7) Amortization of prior service cost (0.5) (0.7) (0.1) 0.1 (1.2) Amortization of net loss 0.7 0.1 0.1 — 0.9 Other adjustments — — — (0.2) (0.2) Balance at June 30, 2019 (55.3) 20.6 (0.1) (0.4) (35.2) Amortization of prior service cost (0.4) (0.5) (0.1) — (1.0) Amortization of net loss (gain) 1.6 (0.4) — — 1.2 Other adjustments — — — (0.7) (0.7) Balance at September 30, 2019 $ (54.1) $ 19.7 $ (0.2) $ (1.1) $ (35.7) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 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) Reclassification adjustment related to the Tax Act (1) (9.2) 3.4 (0.2) — (6.0) Amortization of prior service cost (0.4) (0.9) — — (1.3) Amortization of net loss 0.9 0.3 0.1 — 1.3 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 (gain) 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) Amortization of prior service cost (0.4) (0.7) — — (1.1) Amortization of net loss (gain) 0.9 0.3 (0.1) — 1.1 Other adjustments — — — 0.1 0.1 Balance at September 30, 2018 $ (48.4) $ 17.7 $ (0.5) $ (0.3) $ (31.5) (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 .

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS	Sep. 30, 2019
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	9. 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, cash equivalents and restricted cash, and Level 2 inputs for its variable and fixed rate debt. The fair values of cash, cash equivalents and restricted cash, and variable rate debt approximate their carrying values due to the nature of the instruments. The fair value of 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 September 30, 2019 and December 31, 2018 are as follows: Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) September 30, 2019 Fair Value Measurements at September 30, 2019 Cash and cash equivalents $ 23.6 $ 23.6 $ 23.6 $ — $ — Restricted cash 8.7 8.7 8.7 — — Variable rate debt 290.0 290.0 — 290.0 — Fixed rate debt 593.0 602.4 — 602.4 — (In millions) December 31, 2018 Fair Value Measurements at December 31, 2018 Cash and cash equivalents $ 19.6 $ 19.6 $ 19.6 $ — $ — Restricted cash 4.9 4.9 4.9 — — Variable rate debt 235.0 235.0 — 235.0 — Fixed rate debt 621.4 584.5 — 584.5 —

EARNINGS PER-SHARE

EARNINGS PER-SHARE	9 Months Ended
EARNINGS PER-SHARE	Sep. 30, 2019
EARNINGS PER-SHARE
EARNINGS PER-SHARE	10. EARNINGS PER SHARE Basic earnings per share is determined by dividing net income by the weighted-average common shares outstanding during the period. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested restricted stock units. The computation of basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018, are as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per share amounts) Income Shares Amount Income Shares Amount Basic $ 36.2 42.9 $ 0.84 $ 67.1 42.8 $ 1.57 Effect of Dilutive Securities 0.4 — 0.4 (0.02) Diluted $ 36.2 43.3 $ 0.84 $ 67.1 43.2 $ 1.55 Three Months Ended September 30, 2018 Nine Months Ended September 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 $ 41.6 42.7 $ 0.97 $ 88.4 42.7 $ 2.07 Effect of Dilutive Securities 0.4 — 0.3 (0.01) Diluted $ 41.6 43.1 $ 0.97 $ 88.4 43.0 $ 2.06 The computation of weighted-average common shares outstanding excludes a nominal amount of anti-dilutive non-qualified stock options for each period ended September 30, 2019 and 2018.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
SHARE-BASED COMPENSATION	Sep. 30, 2019
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	11. SHARE-BASED COMPENSATION During the three and nine months ended September 30, 2019, the Company granted approximately 300 and 359,300 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 $36.45 and $33.59, 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 $2.5 million and $2.7 million for the three months ended September 30, 2019 and 2018, and $8.7 million and $8.2 million for the nine months ended September 30, 2019 and 2018, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was 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	9 Months Ended
PENSION AND POST-RETIREMENT PLANS	Sep. 30, 2019
PENSION AND POST-RETIREMENT PLANS
PENSION AND POST-RETIREMENT PLANS	12. PENSION AND POST-RETIREMENT PLANS The Company’s pension and post-retirement plans are described in Note 11 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Components of net periodic benefit cost for the Company’s qualified defined benefit pension and post-retirement plans for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Pension Benefits Post-retirement Benefits Three Months Ended September 30, Three Months Ended September 30, (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost (benefit): Service cost $ 1.3 $ 1.1 $ — $ 0.2 Interest cost 2.4 2.1 0.1 0.3 Expected return on plan assets (2.7) (3.3) — — Amortization of net loss (gain) 2.2 1.0 (0.5) 0.3 Amortization of prior service credit (0.5) (0.5) (0.9) (1.0) Net periodic benefit cost (benefit) $ 2.7 $ 0.4 $ (1.3) $ (0.2) Pension Benefits Post-retirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost (benefit): Service cost $ 3.5 $ 3.3 $ 0.3 $ 0.5 Interest cost 7.0 6.4 0.7 0.8 Expected return on plan assets (9.0) (10.1) — — Amortization of net loss (gain) 4.0 3.4 (0.1) 1.1 Amortization of prior service credit (1.7) (1.7) (2.8) (2.8) Net periodic benefit cost (benefit) $ 3.8 $ 1.3 $ (1.9) $ (0.4)

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2019
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 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, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 4, 2019.
Fiscal Period	Fiscal Period: The period end for Matson covered by this report is September 30, 2019. The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in September, or September 27, 2019, for the third quarter 2019.
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, 2018.
Leases	Leases: Leases (“ASC 842”) on January 1, 2019. ASC 842
Recognition of Revenues and Costs	Recognition of Revenues and Related Costs: 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 Nine Months Ended September 30, September 30, Ocean Transportation (in millions) (1) 2019 2018 2019 2018 Ocean Transportation services $ 424.1 $ 424.2 $ 1,218.6 $ 1,190.3 Terminal and other related services 8.3 8.0 19.8 19.2 Fuel sales 3.3 3.4 7.9 8.5 Vessel management and related services 1.5 1.7 4.2 5.2 Total $ 437.2 $ 437.3 $ 1,250.5 $ 1,223.2 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. Three Months Ended Nine Months Ended September 30, September 30, Logistics (in millions) (1) 2019 2018 2019 2018 Transportation Brokerage and Freight Forwarding services $ 127.4 $ 144.2 $ 388.5 $ 411.7 Warehouse and distribution services 4.6 4.5 15.2 13.3 Supply chain management and other services 2.9 3.4 8.2 9.7 Total $ 134.9 $ 152.1 $ 411.9 $ 434.7 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. ◾ 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. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenues, and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.
Capital Construction Fund	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, 2018. million of eligible accounts receivable were assigned to the CCF, respectively. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets. Cash on deposit in the CCF is held in a money market account and classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the three and nine months ended September 30, 2019, the Company deposited million from the CCF, respectively. The balance of cash on deposit at September 30, 2019 and December 31, 2018 was nominal.
Investment in Terminal Joint Venture	Investment in Terminal Joint Venture: Condensed income statement information (unaudited) for the Terminal Joint Venture for the three and nine months ended September 30, 2019 and 2018 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Operating revenue $ 288.7 $ 289.4 $ 825.6 $ 806.5 Operating costs and expenses (262.6) (259.5) (771.8) (719.7) Operating income 26.1 29.9 53.8 86.8 Net Income (1) $ 23.3 $ 27.7 $ 50.1 $ 82.7 Company Share of SSAT's Net Income (2) $ 8.4 $ 9.2 $ 17.8 $ 28.8 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations. The Company recorded a net adjustment of $5.6 million that reduced its Investment in Terminal Joint Venture with a corresponding reduction in retained earnings in the Condensed Consolidated Balance Sheets at September 30, 2019. This resulted from the adoption of ASC 842 by SSAT. The Company’s investment in SSAT was
Income Taxes	Income Taxes: million that increased income taxes for the nine months ended September 30, 2018. This adjustment related to the application of an estimated percent sequestration on alternative minimum tax (AMT) refunds due to the Company, and was based on guidance issued by the Internal Revenue Service (IRS) and emerging interpretations of the Tax Act during that period. On January 19, 2019, the IRS issued new guidance indicating that sequestration would not apply to refundable AMT credits. In accordance with this new guidance, the Company recorded a non-cash tax adjustment of million that decreased income taxes for the nine months ended September 30, 2019. amounts related to the Tax Act impacted income taxes during the three months ended September 30, 2019 and 2018. The Company continues to assess the impact of the Tax Act, related interpretations and other tax legislation, 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: Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.
Dividends	Dividends: The Company’s third quarter 2019 cash dividend of $0.22 per share was paid on September 5, 2019. On October 25, 2019, the Company’s Board of Directors declared a cash dividend of $0.22 per share payable on December 5, 2019.
New Accounting Pronouncements	New Accounting Pronouncements: Measurement of Credit Losses on Financial Instruments : In June 2016, the Financial Accounting Standards Board issued ASU 2016- 13 which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities and other financial instruments. ASU 2016- 13 requires entities to establish a valuation allowance for the expected lifetime losses of certain financial instruments. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses is permitted. The new standard is effective for interim and annual periods beginning on or after December 15, 2019, and early adoption is permitted. The Company is in the process of evaluating this new standard, but does not expect the adoption of ASU 2016-13 to have a significant impact on the Company’s Consolidated Financial Statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2019
Schedule of condensed income statement information (unaudited) for Terminal Joint Venture	Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Operating revenue $ 288.7 $ 289.4 $ 825.6 $ 806.5 Operating costs and expenses (262.6) (259.5) (771.8) (719.7) Operating income 26.1 29.9 53.8 86.8 Net Income (1) $ 23.3 $ 27.7 $ 50.1 $ 82.7 Company Share of SSAT's Net Income (2) $ 8.4 $ 9.2 $ 17.8 $ 28.8 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations. The Company recorded a net adjustment of $5.6 million that reduced its Investment in Terminal Joint Venture with a corresponding reduction in retained earnings in the Condensed Consolidated Balance Sheets at September 30, 2019. This resulted from the adoption of ASC 842 by SSAT. The Company’s investment in SSAT was
Ocean Transportation
Schedule of principal revenue generating activities by segment	Three Months Ended Nine Months Ended September 30, September 30, Ocean Transportation (in millions) (1) 2019 2018 2019 2018 Ocean Transportation services $ 424.1 $ 424.2 $ 1,218.6 $ 1,190.3 Terminal and other related services 8.3 8.0 19.8 19.2 Fuel sales 3.3 3.4 7.9 8.5 Vessel management and related services 1.5 1.7 4.2 5.2 Total $ 437.2 $ 437.3 $ 1,250.5 $ 1,223.2 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred.
Logistics
Schedule of principal revenue generating activities by segment	Three Months Ended Nine Months Ended September 30, September 30, Logistics (in millions) (1) 2019 2018 2019 2018 Transportation Brokerage and Freight Forwarding services $ 127.4 $ 144.2 $ 388.5 $ 411.7 Warehouse and distribution services 4.6 4.5 15.2 13.3 Supply chain management and other services 2.9 3.4 8.2 9.7 Total $ 134.9 $ 152.1 $ 411.9 $ 434.7 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. ◾ 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. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenues, and related costs are recognized in proportion to the services performed.

REPORTABLE SEGMENTS (Tables)

REPORTABLE SEGMENTS (Tables)	9 Months Ended
REPORTABLE SEGMENTS (Tables)	Sep. 30, 2019
REPORTABLE SEGMENTS
Schedule of reportable segment information	Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Operating Revenue: Ocean Transportation (1) $ 437.2 $ 437.3 $ 1,250.5 $ 1,223.2 Logistics (2) 134.9 152.1 411.9 434.7 Total Operating Revenue $ 572.1 $ 589.4 $ 1,662.4 $ 1,657.9 Operating Income: Ocean Transportation (3) $ 43.9 $ 48.7 $ 73.0 $ 109.7 Logistics 11.3 9.9 30.7 23.6 Total Operating Income 55.2 58.6 103.7 133.3 Interest expense, net (6.2) (4.4) (16.9) (14.4) Other income (expense), net (0.5) 0.7 0.9 1.9 Income before Income Taxes 48.5 54.9 87.7 120.8 Income taxes (12.3) (13.3) (20.6) (32.4) Net Income $ 36.2 $ 41.6 $ 67.1 $ 88.4 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $14.0 million and $15.2 million for the three months ended September 30, 2019 and 2018, and $39.2 million and $39.9 million for the nine months ended September 30, 2019 and 2018, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $14.2 million and $12.4 million for the three months ended September 30, 2019 and 2018, and $36.1 million and $32.8 million for the nine months ended September 30, 2019 and 2018, respectively. (3) Ocean Transportation segment information includes $8.4 million and $9.2 million of equity in income from the Company’s investment in SSAT for the three months ended September 30, 2019 and 2018, and $17.8 million and $28.8 million for the nine months ended September 30, 2019 and 2018, respectively.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Sep. 30, 2019
PROPERTY AND EQUIPMENT
Schedule of property and equipment	September 30, December 31, (In millions) 2019 2018 Cost: Vessels $ 1,647.7 $ 1,489.2 Containers and equipment 534.7 513.6 Terminal facilities and other property 87.8 66.0 Vessel construction in progress 382.4 487.2 Other construction in progress 53.9 59.2 Total Property and Equipment 2,706.5 2,615.2 Less: Accumulated Depreciation (1,221.0) (1,248.6) Total Property and Equipment, net $ 1,485.5 $ 1,366.6

GOODWILL AND INTANGIBLES ASSETS

GOODWILL AND INTANGIBLES ASSETS (Tables)	9 Months Ended
GOODWILL AND INTANGIBLES ASSETS (Tables)	Sep. 30, 2019
GOODWILL AND INTANGIBLES ASSETS
Schedule of goodwill	Goodwill by segment at September 30, 2019 and December 31, 2018 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8
Schedule of intangible assets	September 30, December 31, (In millions) 2019 2018 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 90.1 90.1 Total 230.7 230.7 Less: Accumulated Amortization (52.3) (44.0) Total Customer Relationships, net 178.4 186.7 Trade name - Logistics 27.3 27.3 Total Intangible Assets, net $ 205.7 $ 214.0

DEBT (Tables)

DEBT (Tables)	9 Months Ended
DEBT (Tables)	Sep. 30, 2019
DEBT
Schedule of debt	September 30, December 31, (In millions) 2019 2018 Private Placement Term Loans: 5.79 %, payable through 2020 $ 7.0 $ 10.5 3.66 %, payable through 2023 36.5 41.0 4.16 %, payable through 2027 41.9 44.5 3.37 %, payable through 2027 75.0 75.0 3.14 %, payable through 2031 188.0 200.0 4.31 %, payable through 2032 31.4 32.7 4.35 %, payable through 2044 100.0 100.0 3.92 %, payable through 2045 71.4 71.4 Title XI Bonds: 5.34 %, payable through 2028 19.8 22.0 5.27 %, payable through 2029 22.0 24.2 Revolving credit facility, maturity date of June 29, 2022 290.0 235.0 Capital leases — 0.1 Total Debt 883.0 856.4 Less: Current portion (48.4) (42.1) Total Long-term Debt $ 834.6 $ 814.3

LEASES (Tables)

LEASES (Tables)	9 Months Ended
LEASES (Tables)	Sep. 30, 2019
LEASES
Summary of underlying asset class and maximum terms	Lease Type: Life Real estate and terminal leases 65 years Vessel charter leases 10 years Operations equipment and other leases 8 years
Summary of lease cost	Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three and nine months ended September 30, 2019 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Operating lease cost $ 18.8 $ 52.3 Short-term lease cost 0.9 5.8 Variable lease cost 0.1 0.3 Total lease cost $ 19.8 $ 58.4 Other Lease Information: Other information related to the Company’s operating leases for the three and nine months ended September 30, 2019 is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Cash paid for amounts included in operating lease liabilities $ 18.9 $ 52.2 Right of use assets obtained in the exchange for new operating lease liabilities $ 23.7 $ 38.9 As of September 30, 2019 Weighted-average remaining operating lease term 7.6 years Weighted-average incremental borrowing rate 4.3%
Summary of maturities of operating lease liabilities at September 30, 2019	As of Year (in millions) September 30, 2019 2019 $ 18.9 2020 70.9 2021 49.1 2022 38.5 2023 34.8 Thereafter 92.4 Total lease payments 304.6 Less: Interest (50.2) Present value of operating lease liabilities 254.4 Less: Short-term portion (64.4) Long-term operating lease liabilities $ 190.0
Summary of future minimum payments under operating lease agreements at December 31, 2018	Future minimum payments under non-cancellable operating lease agreements at December 31, 2018 are as follows: Year (in millions) Total 2019 $ 68.3 2020 59.2 2021 44.8 2022 34.7 2023 30.5 Thereafter 83.6 Total minimum lease payments $ 321.1

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Sep. 30, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax	Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2019 consisted of the following: Accumulated Non- Other Post- Qualified Comprehensive (In millions) Pensions Retirement Plans Other Income (Loss) Balance at December 31, 2018 $ (55.8) $ 21.7 $ (0.1) $ (0.3) $ (34.5) Amortization of prior service cost (0.4) (0.7) — — (1.1) Amortization of net loss 0.7 0.2 — — 0.9 Balance at March 31, 2019 (55.5) 21.2 (0.1) (0.3) (34.7) Amortization of prior service cost (0.5) (0.7) (0.1) 0.1 (1.2) Amortization of net loss 0.7 0.1 0.1 — 0.9 Other adjustments — — — (0.2) (0.2) Balance at June 30, 2019 (55.3) 20.6 (0.1) (0.4) (35.2) Amortization of prior service cost (0.4) (0.5) (0.1) — (1.0) Amortization of net loss (gain) 1.6 (0.4) — — 1.2 Other adjustments — — — (0.7) (0.7) Balance at September 30, 2019 $ (54.1) $ 19.7 $ (0.2) $ (1.1) $ (35.7) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 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) Reclassification adjustment related to the Tax Act (1) (9.2) 3.4 (0.2) — (6.0) Amortization of prior service cost (0.4) (0.9) — — (1.3) Amortization of net loss 0.9 0.3 0.1 — 1.3 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 (gain) 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) Amortization of prior service cost (0.4) (0.7) — — (1.1) Amortization of net loss (gain) 0.9 0.3 (0.1) — 1.1 Other adjustments — — — 0.1 0.1 Balance at September 30, 2018 $ (48.4) $ 17.7 $ (0.5) $ (0.3) $ (31.5) (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 .

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Sep. 30, 2019
FAIR VALUE MEASUREMENTS
Schedule of fair value measurement	The carrying value and fair value of the Company’s financial instruments as of September 30, 2019 and December 31, 2018 are as follows: Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) September 30, 2019 Fair Value Measurements at September 30, 2019 Cash and cash equivalents $ 23.6 $ 23.6 $ 23.6 $ — $ — Restricted cash 8.7 8.7 8.7 — — Variable rate debt 290.0 290.0 — 290.0 — Fixed rate debt 593.0 602.4 — 602.4 — (In millions) December 31, 2018 Fair Value Measurements at December 31, 2018 Cash and cash equivalents $ 19.6 $ 19.6 $ 19.6 $ — $ — Restricted cash 4.9 4.9 4.9 — — Variable rate debt 235.0 235.0 — 235.0 — Fixed rate debt 621.4 584.5 — 584.5 —

EARNINGS PER-SHARE (Tables)

EARNINGS PER-SHARE (Tables)	9 Months Ended
EARNINGS PER-SHARE (Tables)	Sep. 30, 2019
EARNINGS PER-SHARE
Schedule of basic and diluted earnings per share	Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per share amounts) Income Shares Amount Income Shares Amount Basic $ 36.2 42.9 $ 0.84 $ 67.1 42.8 $ 1.57 Effect of Dilutive Securities 0.4 — 0.4 (0.02) Diluted $ 36.2 43.3 $ 0.84 $ 67.1 43.2 $ 1.55 Three Months Ended September 30, 2018 Nine Months Ended September 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 $ 41.6 42.7 $ 0.97 $ 88.4 42.7 $ 2.07 Effect of Dilutive Securities 0.4 — 0.3 (0.01) Diluted $ 41.6 43.1 $ 0.97 $ 88.4 43.0 $ 2.06

PENSION AND POST-RETIREMENT P_2

PENSION AND POST-RETIREMENT PLANS (Tables)	9 Months Ended
PENSION AND POST-RETIREMENT PLANS (Tables)	Sep. 30, 2019
PENSION AND POST-RETIREMENT PLANS
Components of net periodic benefit cost (benefit)	Pension Benefits Post-retirement Benefits Three Months Ended September 30, Three Months Ended September 30, (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost (benefit): Service cost $ 1.3 $ 1.1 $ — $ 0.2 Interest cost 2.4 2.1 0.1 0.3 Expected return on plan assets (2.7) (3.3) — — Amortization of net loss (gain) 2.2 1.0 (0.5) 0.3 Amortization of prior service credit (0.5) (0.5) (0.9) (1.0) Net periodic benefit cost (benefit) $ 2.7 $ 0.4 $ (1.3) $ (0.2) Pension Benefits Post-retirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2019 2018 2019 2018 Components of net periodic benefit cost (benefit): Service cost $ 3.5 $ 3.3 $ 0.3 $ 0.5 Interest cost 7.0 6.4 0.7 0.8 Expected return on plan assets (9.0) (10.1) — — Amortization of net loss (gain) 4.0 3.4 (0.1) 1.1 Amortization of prior service credit (1.7) (1.7) (2.8) (2.8) Net periodic benefit cost (benefit) $ 3.8 $ 1.3 $ (1.9) $ (0.4)

DESCRIPTION OF THE BUSINESS (De

DESCRIPTION OF THE BUSINESS (Details)	9 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Sep. 30, 2019segmentfacility
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	8
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 POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Total	$ 572.1	$ 589.4	$ 1,662.4	$ 1,657.9
Ocean Transportation
Ocean Transportation services	424.1	424.2	1,218.6	1,190.3
Terminal and other related services	8.3	8	19.8	19.2
Fuel sales	3.3	3.4	7.9	8.5
Vessel management services and related costs	1.5	1.7	$ 4.2	$ 5.2
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency			3.00%	3.00%
Total	437.2	437.3	$ 1,250.5	$ 1,223.2
Logistics
Transportation Brokerage and Freight Forwarding Services	127.4	144.2	388.5	411.7
Warehouse and distribution services	4.6	4.5	15.2	13.3
Supply chain management and other services	2.9	3.4	8.2	9.7
Total	134.9	152.1	$ 411.9	$ 434.7
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency			3.00%	3.00%
Ocean Transportation
Total	437.2	437.3	$ 1,250.5	$ 1,223.2
Logistics
Total	$ 134.9	$ 152.1	$ 411.9	$ 434.7

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounts receivable, net	$ 223.9	$ 223.9		$ 223.7
Cash Deposits Into CCF		68.2	$ 246.6
Qualifying withdrawal from CCF		68.2	$ 247.5
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	1.7	1.7		$ 1
Cash Deposits Into CCF	41.8	68.2
Qualifying withdrawal from CCF	$ 41.8	$ 68.2

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN TERMINAL JOINT VENTURE (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Investments in affiliates
Investment in Terminal Joint Venture	$ 83.7		$ 83.7		$ 87
Financial information for equity method investment
Company Share of Net Income	8.4	$ 9.2	17.8	$ 28.8
Ocean Transportation
Financial information for equity method investment
Company Share of Net Income	8.4	9.2	17.8	28.8
SSAT
Investments in affiliates
Investment in Terminal Joint Venture	83.7		83.7		$ 87
Financial information for equity method investment
Operating revenue	288.7	289.4	825.6	806.5
Operating costs and expenses	(262.6)	(259.5)	(771.8)	(719.7)
Operating Income	26.1	29.9	53.8	86.8
Net Income	23.3	$ 27.7	$ 50.1	$ 82.7
SSAT \| ASU 2016-02
Investments in affiliates
Adjustment to investment in Terminal Joint Venture	$ 5.6

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
SIGNIFICANT ACCOUNTING POLICIES
Tax Act, income tax expense (benefit)	$ 0	$ 0		$ (3.1)
Remeasurement and discrete adjustments related to the Tax Act			$ (2.9)
Sequestration rate (as a percent)				6.20%

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES - DIVIDENDS (Details) - $ / shares	Oct. 25, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Dividends
Cash dividends declared (in dollars per share)		$ 0.22	$ 0.22	$ 0.21	$ 0.21	$ 0.20
Cash dividends declared per share (in dollars per share)	$ 0.22

REPORTABLE SEGMENTS (Details)

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended						9 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)
Segment results
Number of reportable segments \| segment							2
Total Operating Revenue	$ 572.1			$ 589.4			$ 1,662.4	$ 1,657.9
Total Operating Income	55.2			58.6			103.7	133.3
Interest expense, net	(6.2)			(4.4)			(16.9)	(14.4)
Other income (expense), net	(0.5)			0.7			0.9	1.9
Income before Income Taxes	48.5			54.9			87.7	120.8
Income tax expense	(12.3)			(13.3)			(20.6)	(32.4)
Net Income	36.2	$ 18.4	$ 12.5	41.6	$ 32.6	$ 14.2	67.1	88.4
Equity in income of Terminal Joint Venture	8.4			9.2			17.8	28.8
Operating segments
Segment results
Total Operating Revenue	572.1			589.4			1,662.4	1,657.9
Total Operating Income	55.2			58.6			103.7	133.3
Intersegment Eliminations
Segment results
Total Operating Revenue	28.2			27.6			75.3	72.7
Ocean Transportation
Segment results
Total Operating Revenue	437.2			437.3			1,250.5	1,223.2
Equity in income of Terminal Joint Venture	8.4			9.2			17.8	28.8
Ocean Transportation \| Operating segments
Segment results
Total Operating Revenue	437.2			437.3			1,250.5	1,223.2
Total Operating Income	43.9			48.7			73	109.7
Ocean Transportation \| Intersegment Eliminations
Segment results
Total Operating Revenue	14			15.2			39.2	39.9
Logistics
Segment results
Total Operating Revenue	134.9			152.1			411.9	434.7
Logistics \| Operating segments
Segment results
Total Operating Revenue	134.9			152.1			411.9	434.7
Total Operating Income	11.3			9.9			30.7	23.6
Logistics \| Intersegment Eliminations
Segment results
Total Operating Revenue	$ 14.2			$ 12.4			$ 36.1	$ 32.8

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Property and equipment
Cost	$ 2,706.5	$ 2,615.2
Less: Accumulated Depreciation	(1,221)	(1,248.6)
Property and equipment, net	1,485.5	1,366.6
Vessels
Property and equipment
Cost	1,647.7	1,489.2
Capitalized Interest
Interest Costs Capitalized	9.9
Transfer amount to Property and Equipment	211.8
Containers and equipment
Property and equipment
Cost	534.7	513.6
Terminal facilities and other property
Property and equipment
Cost	87.8	66
Vessel construction in progress
Property and equipment
Cost	382.4	487.2
Capitalized Interest
Interest Costs Capitalized	17.9	16.3
Other construction in progress
Property and equipment
Cost	$ 53.9	$ 59.2

GOODWILL AND INTANGIBLES - CHAN

GOODWILL AND INTANGIBLES - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Goodwill [Line Items]
Goodwill	$ 327.8	$ 327.8
Ocean Transportation
Goodwill [Line Items]
Goodwill	222.6
Logistics
Goodwill [Line Items]
Goodwill	$ 105.2

GOODWILL AND INTANGIBLES - INTA

GOODWILL AND INTANGIBLES - INTANGIBLE ASSETS NET (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Finite-lived Intangible Assets
Net Amount	$ 205.7	$ 214
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	(52.3)	(44)
Net Amount	178.4	186.7
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	3 Months Ended
DEBT - SUMMARY (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt
Capital leases		$ 0.1
Total Debt	$ 883	856.4
Less current portion	(48.4)	(42.1)
Total Long-term Debt	834.6	814.3
5.79%, payable through 2020
Debt
Total Debt	$ 7	$ 10.5
Interest rate (as a percent)	5.79%	5.79%
3.66%, payable through 2023
Debt
Total Debt	$ 36.5	$ 41
Interest rate (as a percent)	3.66%	3.66%
4.16%, payable through 2027
Debt
Total Debt	$ 41.9	$ 44.5
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	$ 188	$ 200
Interest rate (as a percent)	3.14%	3.14%
4.31%, payable through 2032
Debt
Total Debt	$ 31.4	$ 32.7
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	$ 71.4	$ 71.4
Interest rate (as a percent)	3.92%	3.92%
5.34%, payable through 2028
Debt
Total Debt	$ 19.8	$ 22
Interest rate (as a percent)	5.34%	5.34%
5.27%, payable through 2029
Debt
Total Debt	$ 22	$ 24.2
Interest rate (as a percent)	5.27%	5.27%
Revolving Credit Facility
Debt
Total Debt	$ 290	$ 235
Funds available under the revolving credit facility	$ 168.1
Interest rate during period (as a percent)	3.73%

LEASES (Details)

LEASES (Details) - USD ($) $ in Millions	Jan. 01, 2019	Sep. 30, 2019	Mar. 31, 2019
Lessee, Lease, Description [Line Items]
Cumulative-effect adjustment recorded to retained earnings		$ (5.6)	$ 4.4
Operating lease right of use assets	$ 251.4	246
Operating lease liability	259.1	$ 254.4
ASU 2016-02
Lessee, Lease, Description [Line Items]
Cumulative-effect adjustment recorded to retained earnings	$ 4.4

LEASES - LEASE TYPE (Details)

LEASES - LEASE TYPE (Details)	Sep. 30, 2019
Real estate and terminal leases
Lessee, Lease, Description [Line Items]
Base term	65 years
Vessel charter leases
Lessee, Lease, Description [Line Items]
Base term	10 years
Operations equipment and other leases
Lessee, Lease, Description [Line Items]
Base term	8 years

LEASE - COMPONENTS OF LEASE COS

LEASE - COMPONENTS OF LEASE COST AND OTHER INFORMATION (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Lease Cost
Operating lease cost	$ 18.8	$ 52.3
Short-term lease cost	0.9	5.8
Variable lease cost	0.1	0.3
Total lease cost	19.8	58.4
Cash paid for amounts included in operating lease liabilities	18.9	52.2
Right of use assets obtained in the exchange for new operating lease liabilities	$ 23.7	$ 38.9
Weighted-average remaining operating lease term	7 years 7 months 6 days	7 years 7 months 6 days
Weighted-average incremental borrowing rate	4.30%	4.30%

LEASE - MATURITIES OF OPERATING

LEASE - MATURITIES OF OPERATING LEASE LIABILITIES AND FUTURE MINIMUM PAYMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2019	$ 18.9
2020	70.9
2021	49.1
2022	38.5
2023	34.8
Thereafter	92.4
Total lease payments	304.6
Less: Interest	(50.2)
Present value of operating lease liabilities	254.4	$ 259.1
Less: Short-term portion	(64.4)
Long-term operating lease liabilities	190
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	68.3
2020	59.2
2021	44.8
2022	34.7
2023	30.5
Thereafter	83.6
Total minimum lease payments	$ 321.1

LEASES - RESIDUAL VALUE GUARANT

LEASES - RESIDUAL VALUE GUARANTEE (Details) - USD ($) $ in Millions	Nov. 26, 2018	Sep. 30, 2019	Sep. 30, 2019
Lessee, Lease, Description [Line Items]
Cash paid for amounts included in operating lease liabilities		$ 18.9	$ 52.2
Bareboat Charter Agreement
Lessee, Lease, Description [Line Items]
Cash paid for amounts included in operating lease liabilities	$ 3
Base term	5 years
Renewal term	2 years
Renewal option	true
Residual value guarantee option	true
Maximum residual value guarantee amount after 5 years	$ 50.9
Maximum residual value guarantee amount after extended term	$ 47.7

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	$ 765.2	$ 763	$ 755.3	$ 698.5	$ 681.4	$ 677.2	$ 755.3	$ 677.2
Amortization of prior service cost	(1)			(1.1)			(3.3)	(3.5)
Amortization of net loss (gain)	1.2			1.1			3	2.9
Other adjustments	(0.7)			0.1			(0.9)
Balance at the end of the period	797.7	765.2	763	742.7	698.5	681.4	797.7	742.7
Pensions
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(55.3)	(55.5)	(55.8)	(48.9)	(49.3)	(40.6)	(55.8)	(40.6)
Reclassification adjustment related to the Tax Act						(9.2)
Amortization of prior service cost	(0.4)	(0.5)	(0.4)	(0.4)	(0.5)	(0.4)
Amortization of net loss (gain)	1.6	0.7	0.7	0.9	0.9	0.9
Balance at the end of the period	(54.1)	(55.3)	(55.5)	(48.4)	(48.9)	(49.3)	(54.1)	(48.4)
Post Retirement
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	20.6	21.2	21.7	18.1	18.4	15.6	21.7	15.6
Reclassification adjustment related to the Tax Act						3.4
Amortization of prior service cost	(0.5)	(0.7)	(0.7)	(0.7)	(0.5)	(0.9)
Amortization of net loss (gain)	(0.4)	0.1	0.2	0.3	0.2	0.3
Balance at the end of the period	19.7	20.6	21.2	17.7	18.1	18.4	19.7	17.7
Non-Qualified Plans
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.1)	(0.1)	(0.1)	(0.4)	(0.4)	(0.3)	(0.1)	(0.3)
Reclassification adjustment related to the Tax Act						(0.2)
Amortization of prior service cost	(0.1)	(0.1)			(0.1)
Amortization of net loss (gain)		0.1		(0.1)	0.1	0.1
Balance at the end of the period	(0.2)	(0.1)	(0.1)	(0.5)	(0.4)	(0.4)	(0.2)	(0.5)
Other
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(0.4)	(0.3)	(0.3)	(0.4)	0.6	0.4	(0.3)	0.4
Amortization of prior service cost		0.1
Amortization of net loss (gain)					(0.7)
Other adjustments	(0.7)	(0.2)		0.1	(0.3)	0.2
Balance at the end of the period	(1.1)	(0.4)	(0.3)	(0.3)	(0.4)	0.6	(1.1)	(0.3)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss by component, net of taxes
Balance at the beginning of the period	(35.2)	(34.7)	(34.5)	(31.6)	(30.7)	(24.9)	(34.5)	(24.9)
Reclassification adjustment related to the Tax Act						(6)
Amortization of prior service cost	(1)	(1.2)	(1.1)	(1.1)	(1.1)	(1.3)
Amortization of net loss (gain)	1.2	0.9	0.9	1.1	0.5	1.3
Other adjustments	(0.7)	(0.2)		0.1	(0.3)	0.2
Balance at the end of the period	$ (35.7)	$ (35.2)	$ (34.7)	$ (31.5)	$ (31.6)	$ (30.7)	$ (35.7)	$ (31.5)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair value of financial instruments
Restricted Cash	$ 8.7
Carrying value
Fair value of financial instruments
Cash and cash equivalents	23.6	$ 19.6
Restricted Cash	8.7	4.9
Variable rate debt	290	235
Fixed rate debt	593	621.4
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	23.6	19.6
Restricted Cash	8.7	4.9
Variable rate debt	290	235
Fixed rate debt	602.4	584.5
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	23.6	19.6
Restricted Cash	8.7	4.9
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Fair value of financial instruments
Variable rate debt	290	235
Fixed rate debt	$ 602.4	$ 584.5

EARNINGS PER-SHARE (Details)

EARNINGS PER-SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Income
Net Income, Basic	$ 36.2	$ 41.6	$ 67.1	$ 88.4
Net Income, Diluted	$ 36.2	$ 41.6	$ 67.1	$ 88.4
Weighted Average Common Shares
Basic (in shares)	42.9	42.7	42.8	42.7
Effect of Dilutive Securities (in shares)	0.4	0.4	0.4	0.3
Diluted (in shares)	43.3	43.1	43.2	43
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 0.84	$ 0.97	$ 1.57	$ 2.07
Effect of Dilutive Securities (in dollars per shares)			(0.02)	(0.01)
Net income, Diluted (in dollars per share)	$ 0.84	$ 0.97	$ 1.55	$ 2.06

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Time-based and performance-based shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based compensation
Shares granted	300		359,300
Weighted-average grant date fair value (in dollars per share)	$ 36.45		$ 33.59
Total unrecognized compensation cost	$ 15.1		$ 15.1
Unrecognized compensation cost over weighted-average period to be recognized			1 year 9 months 18 days
Selling, general and administrative expenses
Share-based compensation
Total stock-based compensation cost	$ 2.5	$ 2.7	$ 8.7	$ 8.2

PENSION AND POST-RETIREMENT P_3

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$ 1.3	$ 1.1	$ 3.5	$ 3.3
Interest cost	2.4	2.1	7	6.4
Expected return on plan assets	(2.7)	(3.3)	(9)	(10.1)
Amortization of net loss	2.2	1	4	3.4
Amortization of prior service credit	(0.5)	(0.5)	(1.7)	(1.7)
Net periodic benefit cost (benefit)	2.7	0.4	3.8	1.3
Post-retirement Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost		0.2	0.3	0.5
Interest cost	0.1	0.3	0.7	0.8
Amortization of net loss	(0.5)	0.3	(0.1)	1.1
Amortization of prior service credit	(0.9)	(1)	(2.8)	(2.8)
Net periodic benefit cost (benefit)	$ (1.3)	$ (0.2)	$ (1.9)	$ (0.4)