Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | 43,435,106 | ||
Entity Public Float | $ 1,233,205,504 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000003453 | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Revenue: | |||
Total Operating Revenue | $ 2,383.3 | $ 2,203.1 | $ 2,222.8 |
Costs and Expenses: | |||
Operating costs | (1,904.3) | (1,878) | (1,875) |
Income from SSAT | 26.3 | 20.8 | 36.8 |
Selling, general and administrative | (225) | (216.8) | (220.8) |
Total Costs and Expenses | (2,103) | (2,074) | (2,059) |
Operating Income | 280.3 | 129.1 | 163.8 |
Interest expense | (27.4) | (22.5) | (18.7) |
Other income (expense), net | 6.1 | 1.2 | 2.6 |
Income before Income Taxes | 259 | 107.8 | 147.7 |
Income taxes | (65.9) | (25.1) | (38.7) |
Net Income | 193.1 | 82.7 | 109 |
Other Comprehensive Income (Loss), Net of Income Taxes: | |||
Net Income | 193.1 | 82.7 | 109 |
Other Comprehensive Income (Loss): | |||
Amortization of prior service cost | (4.7) | (4.5) | (4.7) |
Amortization of net loss (gain) | (9.4) | 2.7 | 1.1 |
Other adjustments | 0.2 | (0.6) | |
Total Other Comprehensive Income (Loss) | (13.9) | (2.4) | (3.6) |
Comprehensive Income | $ 179.2 | $ 80.3 | $ 105.4 |
Basic Earnings Per-Share: (in dollars per share) | $ 4.48 | $ 1.93 | $ 2.55 |
Diluted Earnings Per-Share: (in dollars per share) | $ 4.44 | $ 1.91 | $ 2.53 |
Weighted Average Number of Shares Outstanding: | |||
Basic | 43.1 | 42.8 | 42.7 |
Diluted | 43.5 | 43.3 | 43 |
Ocean Transportation | |||
Operating Revenue: | |||
Total Operating Revenue | $ 1,853.9 | $ 1,666.6 | $ 1,641.3 |
Logistics | |||
Operating Revenue: | |||
Total Operating Revenue | $ 529.4 | $ 536.5 | $ 581.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 14.4 | $ 21.2 |
Accounts receivable, net of allowance for credit loss of $6.3 million and $4.3 million, respectively | 253.4 | 205.9 |
Prepaid expenses and other assets | 38.1 | 62.5 |
Total current assets | 305.9 | 289.6 |
Long-term Assets: | ||
Investment in SSAT | 48.7 | 76.2 |
Property and equipment, net | 1,689.9 | 1,598.1 |
Operating lease right of use assets | 251.4 | 256.1 |
Goodwill | 327.8 | 327.8 |
Intangible assets, net | 192 | 202.9 |
Deferred dry-docking costs, net | 51.9 | 56.9 |
Other long-term assets | 33 | 37.8 |
Total long-term assets | 2,594.7 | 2,555.8 |
Total Assets | 2,900.6 | 2,845.4 |
Current Liabilities: | ||
Current portion of debt | 59.2 | 48.4 |
Accounts payable and accruals | 283.1 | 235.7 |
Operating lease liabilities | 72.4 | 66.6 |
Other liabilities | 96.8 | 86 |
Total current liabilities | 511.5 | 436.7 |
Long-term Liabilities: | ||
Long-term debt, net of deferred loan fees | 685.6 | 910 |
Long-term operating lease liabilities | 186.9 | 198 |
Deferred income taxes | 389.6 | 337.6 |
Other long-term liabilities | 165.8 | 157.4 |
Total long-term liabilities | 1,427.9 | 1,603 |
Commitments and Contingencies (see Note 17) | ||
Shareholders' Equity: | ||
Common stock - common stock without par value; authorized, 150.0 million shares ($0.75 stated value per share); outstanding, 43.2 million shares in 2020 and 42.9 million shares in 2019 | 32.4 | 32.2 |
Additional paid in capital | 321.5 | 306.2 |
Accumulated other comprehensive loss, net | (50.8) | (36.9) |
Retained earnings | 658.1 | 504.2 |
Total shareholders' equity | 961.2 | 805.7 |
Total Liabilities and Shareholders' Equity | $ 2,900.6 | $ 2,845.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Accounts receivable, allowance for credit loss | $ 6.3 | $ 4.3 |
Common stock, shares authorized | 150 | 150 |
Common stock, stated value (in dollars per share) | $ 0.75 | $ 0.75 |
Common stock, shares outstanding | 43.2 | 42.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | |||
Net income | $ 193.1 | $ 82.7 | $ 109 |
Reconciling adjustments: | |||
Depreciation and amortization | 114.9 | 100.4 | 94.4 |
Amortization of operating lease right of use assets | 74.8 | 60.7 | |
Deferred income taxes | 52.1 | 23.6 | 29.3 |
Loss (Gain) on disposal of property and equipment | 2.8 | (1.4) | (1.9) |
Share-based compensation expense | 18.8 | 11.3 | 12.1 |
Income from SSAT | (26.3) | (20.8) | (36.8) |
Distributions from SSAT | 55.4 | 25.2 | 42 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (48) | 17.8 | (29.1) |
Deferred dry-docking payments | (16.8) | (25.9) | (19.2) |
Deferred dry-docking amortization | 25.1 | 34.3 | 37.4 |
Prepaid expenses and other assets | 21.9 | 24.5 | 4.2 |
Accounts payable, accruals and other liabilities | 44.8 | (13.9) | 71.2 |
Operating lease liabilities | (75.9) | (59.9) | |
Other long-term liabilities | (6.9) | (9.8) | (7.6) |
Net cash provided by operating activities | 429.8 | 248.8 | 305 |
Cash Flows From Investing Activities: | |||
Capitalized vessel construction expenditure | (87.8) | (219.1) | (338.6) |
Other capital expenditures | (104.5) | (91.2) | (62.6) |
Proceeds from disposal of property and equipment | 15.3 | 3.4 | 136.3 |
Cash deposits into Capital Construction Fund | (132.4) | (96.2) | (340) |
Withdrawals from Capital Construction Fund | 132.4 | 96.2 | 340.9 |
Proceeds from sale of other investments | 3.7 | ||
Net cash used in investing activities | (177) | (306.9) | (260.3) |
Cash Flows From Financing Activities: | |||
Proceeds from issuance of debt | 325.5 | ||
Repayments of debt | (216.5) | (42.1) | (30.7) |
Proceeds from revolving credit facility | 648 | 622.1 | 963.9 |
Repayments of revolving credit facility | (955.3) | (478) | (933.9) |
Payment of financing costs | (18.5) | ||
Proceeds from issuance of common stock | 0.1 | 0.3 | 0.7 |
Dividends paid | (39.2) | (37.2) | (35.4) |
Tax withholding related to net share settlements of restricted stock units | (5.6) | (3.1) | (4.6) |
Net cash provided by (used in) financing activities | (261.5) | 62 | (40) |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (8.7) | 3.9 | 4.7 |
Cash, Cash Equivalents and Restricted Cash, Beginning of the Year | 28.4 | 24.5 | 19.8 |
Cash, Cash Equivalents and Restricted Cash, End of the Year | 19.7 | 28.4 | 24.5 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash, at End of the Year: | |||
Total Cash, Cash Equivalents and Restricted Cash, End of the Year | 28.4 | 24.5 | 24.5 |
Supplemental Cash Flow Information: | |||
Interest paid, net of capitalized interest | 26.2 | 22 | 18.3 |
Income tax paid, net of income tax refunds | (16.1) | (24.2) | 5.2 |
Non-cash Information: | |||
Capital expenditures included in accounts payable, accruals and other liabilities | $ 24.7 | $ 8.5 | $ 4.1 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Retained EarningsAdjustmentSSAT | Retained EarningsAdjustment | Retained Earnings | AdjustmentSSAT | Adjustment | 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 | |||||||||
Net income | 109 | 109 | |||||||
Other comprehensive income (loss), net of tax | (9.6) | 6 | (3.6) | ||||||
Share-based compensation | 12.1 | 12.1 | |||||||
Shares issued, net of shares withheld for employee taxes | $ 0.1 | (4) | (3.9) | ||||||
Shares issued, net of shares withheld for employee taxes (in shares) | 0.2 | ||||||||
Shares repurchased | (0.1) | (0.1) | |||||||
Dividends | (35.4) | (35.4) | |||||||
Balance at the end 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 | 82.7 | 82.7 | |||||||
Other comprehensive income (loss), net of tax | (2.4) | (2.4) | |||||||
Share-based compensation | 11.3 | 11.3 | |||||||
Shares issued, net of shares withheld for employee taxes | $ 0.2 | (2.9) | (2.7) | ||||||
Shares issued, net of shares withheld for employee taxes (in shares) | 0.2 | ||||||||
Dividends | (37.3) | (37.3) | |||||||
Balance at the end of the period at Dec. 31, 2019 | $ 32.2 | 306.2 | (36.9) | $ (5.6) | $ 4.4 | 504.2 | $ (5.6) | $ 4.4 | $ 805.7 |
Balance (in shares) at Dec. 31, 2019 | 42.9 | 42.9 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 193.1 | $ 193.1 | |||||||
Other comprehensive income (loss), net of tax | (13.9) | (13.9) | |||||||
Share-based compensation | 18.8 | 18.8 | |||||||
Shares issued, net of shares withheld for employee taxes | $ 0.2 | (3.5) | (2.2) | (5.5) | |||||
Shares issued, net of shares withheld for employee taxes (in shares) | 0.3 | ||||||||
Equity interest in SSAT | 2.2 | 2.2 | |||||||
Dividends | (39.2) | (39.2) | |||||||
Balance at the end of the period at Dec. 31, 2020 | $ 32.4 | $ 321.5 | $ (50.8) | $ 658.1 | $ 961.2 | ||||
Balance (in shares) at Dec. 31, 2020 | 43.2 | 43.2 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statement of Stockholders' Equity | |||
Dividends (per share) | $ 0.90 | $ 0.86 | $ 0.82 |
DESCRIPTION OF THE BUSINESS
DESCRIPTION OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
DESCRIPTION OF THE BUSINESS | |
DESCRIPTION OF THE BUSINESS | 1. DESCRIPTION OF THE BUSINESS Matson, Inc., a holding company incorporated in the State of Hawaii, and its subsidiaries (“Matson” or the “Company”), is a leading provider of ocean transportation and logistics services. The Company consists of segments, Ocean Transportation and Logistics. For financial information on the Company’s reportable segments for the three years ended December 31, 2020, see Note 3. 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 two premium, expedited services from China to Long Beach, California, and provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav and other ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in the Alaska locations of Anchorage, Kodiak and Dutch Harbor. Matson has a 35 percent ownership interest in SSA Terminals, LLC, a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc. (“SSAT”). SSAT currently provides terminal and stevedoring services to various carriers at facilities dedicated for MatNav’s use. Matson records its share of income from SSAT in costs and expenses in the 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 logistics services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services); (ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively, “Freight Forwarding” services); (iii) warehousing 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 | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation: The Consolidated Financial Statements include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. The Company accounts for its investment in SSAT using the equity method of accounting (see Note 4). Fiscal Year: The year end for Matson is December 31. The period end for MatNav occurred on the last Friday in December, except for Matson Logistics Warehousing, Inc. and Matson South Pacific Holdco Limited whose period closed on December 31. Included in these Consolidated Financial Statements are 52 weeks in the 2020, 2019 and 2018 fiscal years for MatNav. Foreign Currency Transactions: The United States (U.S.) dollar is the functional currency for substantially all of the financial statements of the Company’s foreign subsidiaries. Foreign currency denominated assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a component of accumulated other comprehensive loss (gain) within shareholders’ equity. The Company translates the result of operations of its foreign subsidiaries at the average exchange rate during the respective periods. Gains and losses resulting from foreign currency transactions are included in Costs and Expenses in the Consolidated Statements of Income and Comprehensive Income. Use of Estimates: The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for doubtful accounts; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions. Cash, Cash Equivalents and Restricted Cash: Cash equivalents consist of highly-liquid investments with original maturities of three months or less. The Company carries these investments at cost, which approximates fair value. Outstanding checks in excess of funds on deposit totaled $19.9 million and $13.8 million at December 31, 2020 and 2019, respectively, and are included in current liabilities in the Consolidated Balance Sheets. Restricted cash relates to amounts that are subject to contractual restrictions and are not readily available. At December 31, 2020 and 2019, restricted cash was $5.3 million and $7.2 million, respectively, and are included in prepaid expenses and other assets in the Consolidated Balance Sheets. Accounts Receivable, net: Accounts receivable represent amounts due from trade customers arising in the normal course of business. Accounts receivable are shown net of allowance for doubtful accounts receivable in the Consolidated Balance Sheets. Allowance for doubtful accounts receivable is established by management based on estimates of collectability. Estimates of collectability are principally based on an evaluation of the current financial condition of the customer and the potential risks to collection, the customer’s payment history, expected future credit losses and other factors which are regularly monitored by the Company. Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2020, 2019 and 2018 were as follows: Balance at Write-offs Balance at Year (in millions) Beginning of Year Expense (1) and Other End of Year 2020 $ 4.3 $ 2.9 $ (0.9) $ 6.3 2019 $ 4.8 $ 0.6 $ (1.1) $ 4.3 2018 $ 4.6 $ 0.8 $ (0.6) $ 4.8 (1) Expense is shown net of amounts recovered from previously reserved doubtful accounts. Prepaid Expenses and Other Assets: As of December 31, Prepaid Expenses and Other Assets (in millions) 2020 2019 Prepaid fuel $ 10.8 $ 13.7 Prepaid insurance and insurance related receivables 7.5 13.4 Prepaid operating expenses 5.4 5.7 Restricted cash - vessel construction obligations 5.3 7.2 Income tax receivables 0.3 12.8 Other 8.8 9.7 Total $ 38.1 $ 62.5 Deferred Loan Fees: The Company records deferred loan fees, excluding those related to the revolving credit facility, as a reduction to Total Debt in the Company’s Consolidated Balance Sheets in accordance with Accounting Standards Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These costs are being amortized over the life of the related debt using the effective interest method (see Note 8). Deferred loan fees related to the Company’s revolving credit facility are recorded in other long-term assets in the Company’s Consolidated Balance Sheets, and are amortized using the straight-line method as the difference between that and the use of the effective interest method is not material. Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2020 and 2019: As of December 31, Other Long-Term Assets (in millions) 2020 2019 Vessel and equipment spare parts $ 11.5 $ 12.4 Insurance related receivables 10.5 10.6 Deferred loan fees 2.7 2.1 Cloud computing software costs 2.4 — Income tax receivables 2.1 11.5 Other 3.8 1.2 Total $ 33.0 $ 37.8 Property and Equipment: Property and equipment is stated at cost. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range up to the following maximum life: Classification Life Vessels 40 years Machinery and equipment 30 years Terminal facilities 35 years Capitalized Interest: The Company capitalizes interest costs during the period the qualified assets are being readied for their intended use. The Company determined that the vessel construction costs are considered qualifying assets for the purposes of capitalizing interest on these assets. The amount of capitalized interest is calculated based on the amount of payments incurred related to the construction of these vessels using a weighted average interest rate. The weighted average interest rate is determined using the Company’s average borrowings outstanding during the period. Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Consolidated Balance Sheets (see Note 5). During the years ended December 31, 2020, 2019 and 2018, the Company capitalized $7.4 million, $15.6 million and $18.7 million of interest related to the construction of new vessels, respectively. Leases: The Company adopted Accounting Standards Codification (“ASC”) 842, Leases 1, 2019. ASC 842 Deferred Dry-docking Costs: U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and classification society rules. These standards require U.S. flagged vessels to undergo between them. However, U.S. flagged vessels that are enrolled in the U.S. Coast Guard’s Underwater Survey in Lieu of Dry-docking (“UWILD”) program are allowed to have their Intermediate Survey dry-docking requirement met with a less costly underwater inspection. Non-U.S. flagged vessels are required to meet applicable classification society rules and their own local standards for seaworthiness, which also mandate vessels to undergo . The Company is responsible for maintaining its vessels in compliance with U.S. and international standards. As costs associated with dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the scheduled date of the next required dry-docking, which is usually over a two period. Amortization of deferred dry-docking costs are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income. Routine vessel maintenance and repairs are charged to expense as incurred. Goodwill and Intangible Assets: Goodwill and intangible assets arise as a result of acquisitions made by the Company (see Note 6). Intangible assets consist of customer relationships which are being amortized using the straight-line method over the expected useful lives ranging up to 21 years , and a trade name that has an indefinite life. Impairment Evaluation of Long-Lived Assets, Intangible Assets and Goodwill : The Company evaluates its long-lived assets, intangible assets and goodwill for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount. The Company has reporting units within the Ocean Transportation and Logistics reportable segments. Long-lived assets and finite-lived intangible assets are grouped at the lowest level reporting unit for which identifiable cash flows are available. In evaluating for impairment, the estimated future undiscounted cash flows generated by each of these asset groups are compared with the carrying value recorded for each asset group to determine if its carrying value is recoverable. If this review determines that the amount recorded will not be recovered, the amount recorded for the asset group is reduced to its estimated fair value. No impairment charges of long-lived assets and finite-lived intangible assets were recorded for the years ended December 31, 2020, 2019 and 2018. Indefinite-life intangible assets and goodwill are grouped at the lowest level reporting unit for which identifiable cash flows are available. In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, taxes, depreciation and amortization. Based upon the Company’s evaluation of its indefinite-life intangible assets and goodwill for impairment, the Company determined that the fair value of each reporting unit exceeds book value. No impairment charges of indefinite-life intangible assets and goodwill were recorded for the years ended December 31, 2020, 2019 and 2018. Impairment Evaluation of SSAT: The Company’s investment in SSAT, a related party, is evaluated for impairment whenever there is evidence of impairment during the reporting period. If any impairment is identified, the Company evaluates if the decrease in the fair value of the investment below its carrying value is other-than-temporary. No impairment was identified during the years ended December 31, 2020, 2019 and 2018. Other Liabilities: As of December 31, Other Liabilities (in millions) 2020 2019 Payroll and vacation $ 29.2 $ 28.5 Employee incentives and other 25.9 14.7 Multi-employer withdrawal liabilities - short term (see Note 12) 10.6 10.8 Income tax liabilities 11.7 2.3 Insurance reserves and other related liabilities - short term 7.0 12.6 Deferred revenues 4.2 6.9 Interest on debt 3.4 4.9 Pension and post-retirement liabilities - short term (see Note 11) 2.7 3.1 Other short-term liabilities 2.1 2.2 Total $ 96.8 $ 86.0 Other Long-Term Liabilities: Other long-term liabilities consist of the following at December 31, 2020 and 2019: As of December 31, Other Long-Term Liabilities (in millions) 2020 2019 Pension and post-retirement liabilities (see Note 11) $ 82.0 $ 73.4 Multi-employer withdrawal liability (see Note 12) 52.8 54.8 Insurance reserves and other related liabilities 25.4 26.6 Other long-term liabilities 5.6 2.6 Total $ 165.8 $ 157.4 Pension and Post-Retirement Plans: The Company is a member of the Pacific Maritime Association (“PMA”) and the Hawaii Stevedoring Industry Committee, which negotiate multi-employer pension plans covering certain shoreside bargaining unit personnel. The Company directly negotiates multi-employer pension plans covering other bargaining unit personnel. Pension costs are accrued in accordance with contribution rates established by the PMA, the parties to a plan or the trustees of a plan. Several trusteed, non-contributory, single-employer defined benefit plans and defined contribution plans cover substantially all other employees. The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires that the Company make various assumptions. These assumptions include factors such as discount rates, expected long-term rates of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates, and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results. Additional information about the Company’s pension and post-retirement plans is included in Note 11. Insurance Related Liabilities: The Company is uninsured for certain risks but when feasible, many of these risks are mitigated by insurance. The Company purchases insurance with deductibles or self-insured retentions. Such insurance includes, but is not limited to, employee health, workers’ compensation, marine liability, cybersecurity, auto liability and physical damage to property and equipment. For certain risks, the Company elects to not purchase insurance because of the excessive cost of insurance or the perceived remoteness of the risk. In addition, the Company retains all risk of loss that exceeds the limits of the Company’s insurance policies, or for other risks where insurance is not commercially available. When estimating its reserves for retained risks and related liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by independent third-parties. Periodically, management reviews its assumptions and estimates used to determine the adequacy of the Company’s reserves for retained risks and other related liabilities. Recognition of Revenues and Expenses: Revenue in the Company’s Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity for the periods presented: Year Ended December 31, Ocean Transportation (in millions) (1) 2020 2019 2018 Ocean Transportation services $ 1,821.7 $ 1,625.8 $ 1,599.3 Terminal and other related services 19.1 24.8 23.0 Fuel sales 7.3 10.1 12.2 Vessel management and related services 5.8 5.9 6.8 Total $ 1,853.9 $ 1,666.6 $ 1,641.3 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and selling, general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. Year Ended December 31, Logistics (in millions) (1) 2020 2019 (2) 2018 (2) Transportation Brokerage and Freight Forwarding services $ 477.0 $ 489.0 $ 532.5 Warehouse and distribution services 36.2 34.1 33.8 Supply chain management and other services 16.2 13.4 15.2 Total $ 529.4 $ 536.5 $ 581.5 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. (2) The Company has reclassified $15.8 million and $16.6 million from transportation brokerage and freight forwarding services to warehouse and distribution services, and supply chain management and other services for the years ended December 31, 2019 and 2018 , respectively, to be consistent with its current period presentation. There was no change in total Logistics revenue for the years ended December 31, 2019 and 2018. ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenue, and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Consolidated Statements of Income and Comprehensive Income. Customer Concentration: The Ocean Transportation segment serves customers in numerous industries and carries a wide variety of cargo, mitigating its dependence upon any single customer or single type of cargo. In 2020, 2019 and 2018, the percent of Ocean Transportation revenue, respectively. The Logistics segment serves customers in numerous industries and geographical locations. In 2020, 2019 and 2018, the percent of Logistics revenue, respectively. Dividends: Share-Based Compensation: The Company records compensation expense for all share-based awards made to employees and directors. The Company’s various stock-based compensation plans are more fully described in Note 15. Income Taxes: The estimate of the Company’s income tax expense requires the Company to make various estimates and judgments. These estimates and judgments are applied in the calculation of taxable income, tax credits, tax benefits and deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes. Deferred tax assets and liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse. The Company records a valuation allowance if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. The Company’s income taxes are more fully described in Note 10. Rounding: Amounts in the Consolidated Financial Statements and Notes to the Consolidated Financial Statements are rounded to millions, except for per share calculations and percentages which were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. New Accounting Pronouncements : Measurement of Credit Losses on Financial Instruments : In June 2016, the Financial Accounting Standards Board (“FASB”) 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 was effective for interim and annual periods beginning on or after December 15, 2019. The Company adopted ASU 2016- 13 effective January 1, 2020 using the modified retrospective approach. Upon adoption, the Company included an evaluation of expected future credit losses as part of its estimate for determining the allowance for doubtful accounts. The impact of this change was not material to the Company’s allowance for doubtful accounts receivable in the Consolidated Financial Statements. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”): In August 2018, FASB issued ASU 2018-15 which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 on a prospective basis effective January 1, 2020. During the year ended December 31, 2020, the Company capitalized costs of $2.4 million related to cloud computing arrangements and which were included in other long-term assets on the Company’s Consolidated Balance Sheets as of December 31, 2020. |
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS | 12 Months Ended |
Dec. 31, 2020 | |
REPORTABLE SEGMENTS | |
REPORTABLE SEGMENTS | 3. REPORTABLE SEGMENTS Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s chief operating decision maker is its Chief Executive Officer. The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s SSAT segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business (see Note 4). 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 $115.5 million, $102.3 million and $95.4 million for the years ended December 31, 2020, 2019 and 2018, respectively, have been eliminated from operating revenues in the table below. Reportable segment financial information for the years ended December 31, 2020, 2019 and 2018, and identifiable asset segment information at December 31, 2020 and 2019, are as follows: Years Ended December 31, (In millions) 2020 2019 2018 Operating Revenue: Ocean Transportation (1) $ 1,853.9 $ 1,666.6 $ 1,641.3 Logistics (2) 529.4 536.5 581.5 Total Operating Revenue $ 2,383.3 $ 2,203.1 $ 2,222.8 Operating Income: Ocean Transportation (3) $ 244.8 $ 90.8 $ 131.1 Logistics 35.5 38.3 32.7 Total Operating Income 280.3 129.1 163.8 Interest expense, net (27.4) (22.5) (18.7) Other income (expense), net 6.1 1.2 2.6 Income before Income Taxes 259.0 107.8 147.7 Income taxes (65.9) (25.1) (38.7) Net Income $ 193.1 $ 82.7 $ 109.0 Capital Expenditures: Ocean Transportation $ 190.0 $ 294.5 $ 385.4 Logistics 2.3 15.8 15.8 Total Capital Expenditures $ 192.3 $ 310.3 $ 401.2 Depreciation and Amortization: Ocean Transportation $ 107.4 $ 93.6 $ 87.0 Logistics 7.5 6.8 7.4 114.9 100.4 94.4 Deferred dry-docking amortization - Ocean Transportation 25.1 34.3 37.4 Total Depreciation and Amortization $ 140.0 $ 134.7 $ 131.8 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $59.1 million, $52.8 million and $51.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $56.4 million, $49.5 million and $43.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. (3) Ocean Transportation segment information includes $26.3 million, $20.8 million, and $36.8 million of equity in income from the Company’s equity investment in SSAT for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, (In millions) 2020 2019 Identifiable Assets: Ocean Transportation (1) $ 2,431.1 $ 2,424.5 Logistics 469.5 420.9 Total Assets $ 2,900.6 $ 2,845.4 (1) The Ocean Transportation segment includes $48.7 million and $76.2 million related to the Company’s equity investment in SSAT as of December 31, 2020 and 2019, respectively. |
INVESTMENT IN SSAT
INVESTMENT IN SSAT | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT IN SSAT | |
INVESTMENT IN SSAT | 4. INVESTMENT IN SSAT The Company accounts for its 35 percent ownership interest in SSAT using the equity method of accounting. The Company records its share of income from SSAT in costs and expenses within the Ocean Transportation segment due to operations of SSAT being an integral part of the Company’s Ocean Transportation business. The Company’s investment in SSAT was $48.7 million and $76.2 million at December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, the Company recorded an increase of $2.2 million in its investment in SSAT and a corresponding increase in retained earnings related to the formation of a new subsidiary of SSAT, whose controlling interest is retained by SSAT. The Company’s share of income recorded in the Consolidated Statements of Income and Comprehensive Income and dividends received by the Company during the years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended December 31, (In millions) 2020 2019 2018 Company's share of net income $ 26.3 $ 20.8 $ 36.8 Distributions received $ 55.4 $ 25.2 $ 42.0 The Company’s Ocean Transportation segment operating costs include $251.6 million, $218.7 million and $213.4 million for the years ended December 31, 2020, 2019 and 2018, respectively, for terminal services provided by SSAT. Accounts payable and accrued liabilities in the Consolidated Balance Sheets include $29.8 million and $63.6 million for terminal services payable to SSAT at December 31, 2020 and 2019, respectively. A summary of the condensed balance sheets of SSAT at December 31, 2020 and 2019 is as follows: As of December 31, Condensed Balance Sheets (in millions) 2020 2019 Current assets $ 294.3 $ 300.8 Non-current assets 1,249.5 1,283.0 Total Assets $ 1,543.8 $ 1,583.8 Current liabilities $ 238.2 $ 201.9 Non-current liabilities 1,179.9 1,179.2 Equity 125.7 202.7 Total Liabilities and Equity $ 1,543.8 $ 1,583.8 A summary of the condensed statements of operating income and net income of SSAT for years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended December 31, Condensed Statements of Operating Income and Net Income (in millions) 2020 2019 2018 Operating revenue $ 1,091.6 $ 1,098.3 $ 1,074.2 Operating costs and expenses 1,003.2 1,035.3 963.7 Operating income 88.4 63.0 110.5 Net Income (1) $ 76.6 $ 57.2 $ 104.9 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT Property and equipment at December 31, 2020 and 2019, and depreciation expense for the years ended December 31, 2020, 2019 and 2018 is as follows: As of December 31, 2020 As of December 31, 2019 Accumulated Accumulated (In millions) Cost Depreciation Net Book Value Cost Depreciation Net Book Value Vessels $ 2,191.6 $ 785.5 $ 1,406.1 $ 1,653.5 $ 818.5 $ 835.0 Containers and equipment 572.3 391.8 180.5 544.5 378.8 165.7 Terminal facilities and other property 119.8 45.1 74.7 114.4 41.3 73.1 Vessel construction in progress — — — 488.9 — 488.9 Other construction in progress 28.6 — 28.6 35.4 — 35.4 Total $ 2,912.3 $ 1,222.4 $ 1,689.9 $ 2,836.7 $ 1,238.6 $ 1,598.1 Years Ended December 31, (In millions) 2020 2019 2018 Depreciation expense $ 97.1 $ 86.3 $ 80.5 |
GOODWILL AND INTANGIBLES ASSETS
GOODWILL AND INTANGIBLES ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND INTANGIBLES ASSETS | |
GOODWILL AND INTANGIBLES ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill by segment as of December 31, 2020 and 2019 consists of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8 Logistics goodwill of $105.2 million includes $78.6 million acquired as part of the acquisition of Span Intermediate, LLC (“Span Alaska”) in August 2016 that was allocated to the Span Alaska reporting unit, and $26.6 million relates to other Logistics acquisitions that were allocated to the Logistics reporting unit. Intangible assets by segment as of December 31, 2020 and 2019 consist of the following: As of December 31, 2020 As of December 31, 2019 Gross Accumulated Gross Accumulated (In millions) Amount Amortization Net Book Value Amount Amortization Net Book Value Ocean Transportation - Customer relationships $ 140.6 $ 37.9 $ 102.7 $ 140.6 $ 31.2 $ 109.4 Logistics: Customer relationships 90.1 28.1 62.0 90.1 23.9 66.2 Trade name 27.3 — 27.3 27.3 — 27.3 Total Logistics 117.4 28.1 89.3 117.4 23.9 93.5 Total $ 258.0 $ 66.0 $ 192.0 $ 258.0 $ 55.1 $ 202.9 Ocean Transportation intangible assets of $140.6 million relate to customer relationships acquired as part of the acquisition of Horizon Lines, Inc. (“Horizon”) on May 29, 2015, and are being amortized over 21 years . Logistics intangible assets include $79.3 million of customer relationships which are being amortized over 20 years , and $27.3 million of an indefinite life trade name, both acquired as part of the Span Alaska acquisition. The remaining Logistics customer relationships of $10.8 million are being amortized over a period of up to 13 years . Intangible assets related amortization expense for 2020, 2019 and 2018, is as follows: Years Ended December 31, (In millions) 2020 2019 2018 Amortization expense $ 10.9 $ 11.1 $ 11.2 As of December 31, 2020, estimated amortization expense related to customer relationship intangible assets during the next five years and thereafter is as follows: Customer Year (in millions) Relationships 2021 $ 10.9 2022 10.7 2023 10.7 2024 10.7 2025 10.7 Thereafter 111.0 Total $ 164.7 |
CAPITAL CONSTRUCTION FUND
CAPITAL CONSTRUCTION FUND | 12 Months Ended |
Dec. 31, 2020 | |
CAPITAL CONSTRUCTION FUND. | |
CAPITAL CONSTRUCTION FUND | 7. CAPITAL CONSTRUCTION FUND The Company is party to an agreement with the U.S. Department of Transportation, Maritime Administration (“MARAD”) that established a Capital Construction Fund (“CCF”) program under provisions of the Merchant Marine Act of 1936, as amended (the “Merchant Marine Act”). The CCF program was created to assist owners and operators of U.S. flagged vessels in raising capital necessary for the modernization and expansion of the U.S. merchant marine fleet. CCF funds may be used for the acquisition, construction, or reconstruction of vessels, and for repayment of existing vessel indebtedness through the deferment of federal income taxes on certain deposits of monies and other property placed into the CCF. Qualified withdrawals from the CCF must be used for investment in vessels built in the U.S. and used between covered U.S. ports as described by the Merchant Marine Act, and for other qualifying expenditures (see Item 1 of Part 1 for additional information on Maritime Laws and the Jones Act). Participants of the CCF must also meet certain U.S. citizenship requirements. Deposits into the CCF are limited by certain applicable earnings and other conditions. Such deposits, once made, are available as tax deductions in the Company’s income tax provision. Qualified withdrawals from the CCF do not give rise to a current income tax liability, but reduce the depreciable basis of the vessels or certain related equipment for income tax purposes. However, if withdrawals are made from the CCF for general corporate purposes or other non-qualified purposes, or upon termination of the agreement, they are taxable with interest payable from the year of deposit. Deposits not committed for qualified purposes within 25 years from the date of deposit will be treated as non-qualified withdrawals over the subsequent five years . Under the terms of the CCF agreement, the Company may designate certain qualified earnings as “accrued deposits” or may designate, as obligations of the CCF, qualified withdrawals to reimburse qualified expenditures initially made with operating funds. Such accrued deposits to, and withdrawals from, the CCF are reflected in the Consolidated Balance Sheets either as obligations of the Company’s current assets or as receivables from the CCF. As of December 31, 2020 and 2019, $1.7 million of eligible accounts receivable were assigned to the CCF. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Consolidated Balance Sheets. At December 31, 2020 and 2019, the amounts on deposit in the CCF invested in a money market fund, which is classified as other long-term assets in the Company’s Consolidated Balance Sheets, were nominal. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
DEBT | |
DEBT | 8. DEBT At December 31, 2020 and 2019, the Company’s debt consisted of the following: As of December 31, (In millions) 2020 2019 Private Placement Term Loans: 5.79 %, payable through 2020 $ — $ 3.5 3.66 %, payable through 2023 22.8 31.9 4.16 %, payable through 2027 34.0 39.3 3.37 %, payable through 2027 75.0 75.0 3.14 %, payable through 2031 169.6 188.0 4.31 %, payable through 2032 27.9 30.3 4.35 %, payable through 2044 — 100.0 3.92 %, payable through 2045 — 69.5 Title XI Debt: 5.34 %, payable through 2028 17.6 19.8 5.27 %, payable through 2029 19.8 22.0 1.22 %, payable through 2043 182.0 — 1.35 %, payable through 2044 139.6 — Revolving credit facility, maturity date of June 29, 2022 71.8 379.1 Total Debt 760.1 958.4 Less: Current portion (59.2) (48.4) Total Long-term Debt 700.9 910.0 Less: Deferred loan fees (15.3) — Total Long-term Debt, net of deferred loan fees $ 685.6 $ 910.0 The following is a description of the Company’s debt: Private Placement Term Loans : The million plus interest. These notes were fully paid off during the year ended December 31, 2020. During the second quarter of 2012, the Company issued $170.0 million of unsecured notes, which funded in three tranches, $77.5 million at an interest rate of 3.66 percent, $55.0 million at an interest rate of 4.16 percent, and $37.5 million at an interest rate of 4.31 percent (the “2012 Notes”). Principal and interest are payable semi-annually. The 2012 Notes began to amortize in 2015 with aggregate semi-annual payments of $4.6 million which continued through 2016, followed by $8.4 million in 2017 through mid-year 2023, $3.8 million through mid-year 2027, and $1.2 million thereafter. In January 2014, the Company issued $100.0 million of 30 -year senior unsecured notes at an interest rate of 4.35 percent, payable semi-annually. These notes were fully paid off during the year ended December 31, 2020. In July 2015, the Company issued $75.0 million of 30 -year senior unsecured notes at an interest rate of 3.92 percent, payable semi-annually. These notes were fully paid off during the year ended December 31, 2020. In September 2016, the Company issued $200.0 million of 15-year senior unsecured notes (the “Series D Notes”) at an interest rate of 3.14 percent, payable semi-annually. The Series D Notes began to amortize in 2019, with semi-annual principal payments of million. During the years 2020 through 2023, semi-annual principal payments will be million. Starting in 2024, and in each year thereafter through maturity in 2031, the semi-annual principal payments will be In December 2016, the Company issued $75 million of 11-year senior unsecured notes at an interest rate of 3.37 percent, payable semi-annually (the “Series A Notes”). The Series A Notes will begin to amortize in 2021, with principal payments of Existing and 2020 Title XI Bonds: In September 2003, MatNav issued Manukai (the “Manukai Title XI Bonds”). The Manukai Title XI Bonds have a final maturity in September 2028 with a coupon rate of percent. The Manukai Title XI Bonds are amortized by semi-annual payments of million plus interest. In August 2004, MatNav issued Maunawili (the “Maunawili Title XI Bonds”, and together with the Manukai Title XI Bonds, the “Existing Title XI Bonds”). The Maunawili Title XI Bonds have a final maturity in July 2029 with a coupon rate of percent. The Maunawili Title XI Bonds are amortized by semi-annual payments of On April 27, 2020, MatNav issued $185.9 million in U.S. Government guaranteed vessel financing bonds to partially refinance debt incurred in connection with the construction of Daniel K. Inouye (the “DKI Title XI Debt”). A fee of approximately million was paid to MARAD out of the proceeds at closing. The secured DKI Title XI Debt matures on October 15, 2043 and has a cash interest rate of million. On June 22, 2020, MatNav issued $139.6 million in U.S. Government guaranteed vessel financing bonds to partially refinance debt incurred in connection with the construction of Kaimana Hila (the “KMH Title XI Debt”, and together with the DKI Title XI Debt, the “2020 Title XI Debt”). A fee of approximately million was paid to MARAD out of the proceeds at closing. The secured KMH Title XI Debt matures on March 15, 2044 and has a cash interest rate of million. MatNav may prepay any amounts outstanding under the 2020 Title XI Debt agreements subject to a potential prepayment premium or other adjustment, in accordance with the 2020 Title XI Debt agreements. Once amounts under the 2020 Title XI Debt are repaid, they may not be reborrowed. Mandatory prepayments are required under certain limited circumstances, including specified casualty events with respect to the vessels Daniel K. Inouye Kaimana Hila (the “Vessels”). Revolving Credit Facility: On June 29, 2017, the Company entered into an amended and restated credit agreement that provides the Company with additional sources of liquidity for working capital, capital expenditures and investment opportunities, and amends and restates the Company’s previously amended and restated credit agreement (the “Credit Agreement” or the “revolving credit facility”). The Credit Agreement expires on June 29, 2022, and provides for committed aggregate borrowing of up to million. The aggregate borrowing within the Credit Agreement includes a million sublimit for swing line loans. The Company may prepay any amounts outstanding under the Credit Agreement without premium or penalty. All obligations of the Company under the Credit Agreement are guaranteed by MatNav and certain other subsidiaries. On March 31, 2020, the Company entered into a First Amendment to Amended and Restated Credit Agreement (the “Credit Agreement Amendment”). The Credit Agreement Amendment provides for amendments to certain covenants and other terms, including increasing the permitted consolidated leverage ratio from March 31, 2020 to December 30, 2021, amending the pricing grid to provide for pricing ranging from, at the Company’s election, LIBOR plus a margin between 21, 2027. In addition, the Credit Agreement Amendment adds a “most favored lender” provision for the benefit of the lenders with respect to the Company’s Private Debt Agreements (as defined below). Pursuant to the Credit Agreement Amendment, commencing March 31, 2020, borrowings under the Credit Agreement bear interest at either LIBOR plus a margin of between percent. Letters of credit are subject to fees based on the Company’s consolidated net leverage ratio at a rate of between percent depending on the Company’s consolidated net leverage ratio. As of December 31, 2020, the Company had $570.1 million of remaining borrowing availability under the revolving credit facility. The Company had 31, 2020. Based on the Company’s consolidated net leverage ratio, which stipulates borrowing margins, the interest rate applicable to revolving credit facility was approximately 2.50 percent at December 31, 2020. Amendments to Existing Private Placement Term Loan Facilities and New Shelf Facilities (“Private Loan Facilities”): On June 29, 2017, the Company and the holders of the Company’s term loans entered into amendments (collectively, the “2017 Amendments”) to each of Company’s Private Loan Facilities. The 2017 Amendments provide for amendments to certain covenants and other terms, including (at the Company’s option under certain circumstances) adjustments to the required consolidated leverage ratio, and, in connection with the exercise of such option, the payment of additional interest for certain pre-defined periods. On March 31, 2020, the Company and the holders of notes party thereto entered into amendments (collectively, the “2020 Amendments”) to each of the Company’s Private Loan Facilities. The 2020 Amendments modify certain covenants and other terms, including increasing the permitted consolidated leverage ratio from March 31, 2020 to December 30, 2021; providing for additional quarterly interest enhancement payments based on the Company’s consolidated leverage ratio from the quarter ended March 31, 2020 through the quarters ending December 31, 2021; providing for an additional 30, 2021 and September 30, 2021; providing for prepayment at par at the option of the holders with proceeds of certain 2020 Title XI Debt and dispositions of capital assets; providing for additional limitations on stock redemptions and repurchases, sale leaseback transactions and asset sales during the period from March 31, 2020 through and including December 30, 2021; and providing for additional limitations on incurrence of priority debt through December 21, 2027. In addition, the 2020 Amendments add a “most favored lender” provision for the benefit of the noteholders with respect to the other Private Debt Agreements. Debt Maturities: At December 31, 2020, debt maturities during the next five years and thereafter are as follows: As of Year (in millions) December 31, 2020 2021 $ 59.2 2022 136.8 2023 60.4 2024 51.7 2025 51.7 Thereafter 400.3 Total Debt $ 760.1 Deferred Loan Fees: Activity relating to deferred loan fees for the year ended December 31, 2020 are as follows: Deferred Loan Fees (in millions) Amount Deferred financing costs related to Title XI bonds and private placement debt amendments $ 16.5 Deferred fees expensed related to the redemption of private placement debt (0.3) Amortization expense for the year ended December 31, 2020 (0.9) Balance at December 31, 2020 $ 15.3 As of December 31, 2020, amortization expense relating to deferred loan fees during the next five years and thereafter are as follows: Year (in millions) Amount 2021 $ 1.5 2022 1.2 2023 1.1 2024 1.1 2025 1.0 Thereafter 9.4 Total amortization expense of deferred loan fees $ 15.3 Debt Covenants in the Private Placement Term Loans and the Revolving Credit Facility : The Credit Agreement and Private term loan facilities (collectively, the “Private Debt Agreements”) contain affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, and transactions with affiliates as defined within the Private Debt Agreements. The Private Debt Agreements also contain customary events of default, including cross defaults to other material indebtedness, including the Existing Title XI Bonds and the 2020 Title XI Debt. A brief description of the principal covenants contained in the Private Debt Agreements includes, but is not limited to the following (as defined within the Private Debt Agreements): ◾ Minimum Consolidated Interest Coverage Ratio as of the end of any fiscal quarter is not permitted to be less than 3.50 to 1.0; ◾ Maximum Consolidated Leverage Ratio as of the end of any fiscal quarter is not permitted to exceed the ratios specified in the Private Debt Agreements for the applicable quarter; and ◾ No Priority Debt may be incurred other than: (i) an aggregate of $331,000,000 principal amount of Title XI Priority Debt and (ii) Priority Debt incurred by Foreign Subsidiaries in an aggregate principal amount not to exceed $20,000,000 . Principal covenants generally will restrict the incurrence of liens except for permitted liens, which include, without limitation, liens securing Title XI debt up to certain permitted amounts, as defined within the Private Debt Agreements. The Company was in compliance with these covenants as of December 31, 2020. Debt Covenants in Existing Title XI Bonds and 2020 Title XI Debt Agreements: The Existing Title XI Bonds contain customary representations and warranties as well as affirmative and negative covenants, defaults and other provisions typical for MARAD-guaranteed financings of this type, with definitions and limitations as defined within the Existing Title XI Bonds. These covenants include, among other things, minimum working capital and net worth requirements, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, sale and leaseback transactions, and transactions with affiliates as defined within the Existing Title XI Bonds. Certain of the covenants in the Existing Title XI Bonds are applicable only upon and during the continuance of either (i) an event of default or (ii) the failure of MatNav to meet certain financial requirements. The 2020 Title XI Debt agreements contain customary representations and warranties as well as affirmative and negative covenants, defaults and other provisions typical for MARAD-guaranteed financings of this type, with definitions, limitations and financial tests all as negotiated between MatNav and MARAD. As part of the 2020 Title XI Debt agreements, certain covenants contained in the Existing Title XI Bonds were eliminated. The covenants in the 2020 Title XI Debt agreements include, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, sale-leasebacks, and transactions with affiliates as defined within the 2020 Title XI Debt agreements. Certain of the covenants in the 2020 Title XI Debt agreements are applicable only upon and during the continuance of either (i) an event of default or (ii) the failure of either the Company or MatNav to meet certain supplemental financial tests. ● The supplemental financial tests applicable to MatNav include maintenance of a working capital minimum of $1 , and maintenance of a long term debt to net worth ratio of greater than or equal to 2.0 to 1.0; and ● The supplemental financial tests applicable to the Company include maintenance of a net worth greater than or equal to 90% of the net worth of the Company as set forth in the most recent audited financial statements prior to closing of the issuance of the 2020 Title XI Bonds and compliance with the leverage ratio set forth in the Company’s Credit Agreement. Debt Security and Guarantees: Under the 2020 Title XI Debt agreements, MARAD has guaranteed certain obligations of MatNav. MatNav has agreed to reimburse MARAD for any payments it makes under the MARAD guaranty, and MatNav’s obligations to MARAD with respect to the 2020 Title XI Debt are secured by a mortgage on the Vessels and certain other related assets (the “Collateral”), as well as the Existing Vessels (as defined below). In addition, MatNav’s obligations to MARAD with respect to the 2020 Title XI Debt are guaranteed by the Company under an Affiliate Guaranty (the “Guaranty”). The 2020 Title XI Debt agreements also provide that the two vessels securing MatNav’s Existing Title XI Bonds – Manukai Maunawili |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 9. LEASES The Company adopted the lease accounting standard ASC 842 on January 1, 2019. As part of the adoption, the Company recorded a net adjustment to retained earnings of $4.4 million at January 1, 2019. 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 Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2020 and 2019. The Company did not have any finance leases during the years ended December 31, 2020 and 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: Term 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 Consolidated Statement of Income and Comprehensive Income for the years ended December 31, 2020 and 2019 consisted of the following: Years Ended December 31, (In millions) 2020 2019 Operating lease cost $ 83.1 $ 71.4 Short-term lease cost 10.6 5.9 Variable lease cost 0.8 0.4 Total lease cost $ 94.5 $ 77.7 Other Lease Information: Other information related to the Company’s operating leases for the years ended December 31, 2020 and 2019 are as follows: Years Ended December 31, (In millions) 2020 2019 Cash paid for amounts included in operating lease liabilities $ 83.6 $ 71.3 Right of use assets obtained in the exchange for new operating lease liabilities $ 70.1 $ 65.3 As of December 31, 2020 2019 Weighted average remaining operating lease term 7.0 years 7.5 years Weighted average incremental borrowing rate 3.7% 4.2% Maturities of operating lease liabilities at December 31, 2020 are as follows: As of Year (in millions) December 31, 2020 2021 $ 80.5 2022 53.2 2023 47.3 2024 31.8 2025 23.9 Thereafter 65.6 Total lease payments 302.3 Less: Interest (43.0) Present value of operating lease liabilities 259.3 Less: Short-term portion (72.4) Long-term operating lease liabilities $ 186.9 Sale and Leaseback of Equipment: On March 25, 2020, the Company entered into an agreement for the sale and leaseback of multiple tranches of chassis and container equipment. The net proceeds from the sales were Vessel Charter and Buyer-Lessor Guaranty Vessel Charter: Maunalei million and subsequently leased back from the buyer-lessor under a Bareboat Charter Agreement (the “Charter”). The transaction qualified for sale and leaseback treatment under ASC 840, Leases , with the Charter treated as an operating lease for accounting purposes. Lease payments are approximately $3.0 million per quarter, and the base term of the Charter is five years with a two year end-of-term renewal option . Total future minimum lease payments were $36.0 million at December 31, 2020, and the obligations under the lease are included in the maturities of operating lease liabilities table above. Prior to the expiration of the base term of the Charter, the subsidiary may, at its option, elect to: (i) purchase the vessel at the option price; (ii) exercise the option to renew the Charter for an additional two years; or (iii) remarket the vessel to sell to a third-party on behalf of the buyer-lessor. The purchase option price is $68.9 million after the base term and $58.3 million after the extended term. 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. Proceeds from the sale of the vessel reduces the subsidiary’s residual value guarantee. Buyer-Lessor Guaranty: |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES Income Taxes: percent. The rate reduction and other changes took effect on January 1, 2018. Other changes such as remeasurement of deferred tax assets and liabilities were effective as of the fourth quarter of 2017. Income taxes for the years ended December 31, 2020, 2019 and 2018 consisted of the following: Years Ended December 31, (In millions) 2020 2019 2018 Current: Federal $ — $ 0.2 $ 1.5 State 8.7 3.2 2.1 Foreign 1.4 1.3 0.9 Discrete adjustments related to the Tax Act (1) — (2.9) 2.9 Total 10.1 1.8 7.4 Deferred: Deferred tax expense 55.8 23.3 31.3 Total income taxes $ 65.9 $ 25.1 $ 38.7 (1) Current income taxes for the years ended December 31, 2019 and 2018 include a non-cash income tax benefit of $2.9 million and a non-cash income tax expense of $2.9 million, respectively, which relates to discrete adjustments as a result of applying the provisions of the Tax Act. Income taxes for the years ended December 31, 2020, 2019 and 2018 differ from amounts computed by applying the statutory federal rate to income before income taxes for the following reasons: Years Ended December 31, 2020 2019 2018 Computed federal income tax expense 21.0 % 21.0 % 21.0 % State income tax 3.5 % 4.1 % 3.4 % Valuation allowance (0.2) % (0.3) % (0.7) % Foreign taxes 0.6 % 1.2 % 0.6 % Remeasurement and discrete adjustments related to the Tax Act (1) — % (2.7) % 2.0 % Share-based payments (0.5) % (0.1) % 0.1 % Other — net 1.0 % 0.1 % (0.2) % Effective income tax rate 25.4 % 23.3 % 26.2 % (1) Effective income tax rate for the years ended December 31, 2019 and 2018 includes the impact of a non-cash income tax benefit of $2.9 million, or 2.7 percent, and a non-cash income tax expense of $2.9 million, or 2.0 percent, respectively, which related to certain discrete adjustments as a result of applying the provisions of the Tax Act. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019, were as follows: As of December 31, (In millions) 2020 2019 Deferred tax assets: Operating lease liabilities $ 63.5 $ 63.1 Pension and post-retirement plans 21.7 19.2 Multi-employer withdrawal liabilities 15.6 16.1 Federal net operating losses 0.9 14.3 State net operating losses 7.5 7.3 U.S. State alternative minimum tax credits 4.4 6.7 Insurance reserves 5.3 5.9 Deferred compensation 8.2 5.8 Other 10.4 5.9 Total deferred tax assets 137.5 144.3 Valuation allowance (10.0) (10.6) Total deferred tax assets, net of valuation allowance 127.5 133.7 Deferred tax liabilities: Basis differences for property and equipment 372.4 319.2 Operating lease right of use assets 61.5 61.1 Intangibles 40.5 39.7 Lease financing 22.0 23.7 Capital Construction Fund 6.7 12.5 Investment in SSAT 7.4 7.4 Other 6.6 7.7 Total deferred tax liabilities 517.1 471.3 Deferred tax liability, net $ 389.6 $ 337.6 Valuation Allowance: million as of December 31, 2020 and 2019, respectively. The Company believes that it is more likely than not that the benefit from these amounts will not be realized. The Company recorded a decrease (increase) to its valuation allowance of $0.6 million, $0.9 million and ($1.1) million during the years ended December 31, 2020, 2019 and 2018, respectively. Net Operating Losses and Tax Credit Carryforwards: (In millions) Expiration Date 2020 2019 U.S. Federal income tax NOLs Various dates beginning in 2027 $ 7.6 $ 71.2 U.S. State income tax NOLs (1) Various dates beginning in 2032 $ 185.9 $ 184.5 U.S. State alternative minimum tax credit No expiration date $ 4.0 $ 6.7 Foreign income tax NOLs No expiration date $ 11.9 $ 14.0 (1) The Company does not expect to benefit from $157.9 million and $157.9 million of U.S. State income tax NOLs as of December 31, 2020 and 2019, respectively. The U.S. federal and state income tax NOLs in the Company’s filed income tax returns include unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits. As a result of changes in tax legislation, the use of a portion of the Company’s domestic NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the federal and state income tax NOLs and tax credit carryforwards may expire before being applied to reduce future income tax liabilities. Unrecognized Tax Benefits: Total unrecognized benefits represent the amount that, if recognized, would favorably affect the Company’s incomes taxes and effective tax rate in future periods. The Company does not expect a material change in gross unrecognized benefits in the next twelve months. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Unrecognized Tax Benefits (in millions) Amount Balance at December 31, 2017 $ 15.9 Changes in tax positions of prior years, net (0.3) Reductions for lapse of statute of limitations (0.5) Balance at December 31, 2018 15.1 Changes in tax positions of prior years, net 2.1 Reductions for lapse of statute of limitations (0.8) Balance at December 31, 2019 16.4 Changes in tax positions of prior years, net 2.1 Reductions for lapse of statute of limitations (0.2) Balance at December 31, 2020 $ 18.3 Included in the balance of unrecognized tax benefits at December 31, 2020 are potential benefits of $18.3 million that, if recognized, would affect the Company’s income taxes and effective tax rate. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income taxes. To the extent interest and penalties are not ultimately assessed with respect to the settlement of uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the Company’s income taxes. Interest accrued related to the balance of unrecognized tax benefits totaled $0.1 million as of December 31, 2020 and 2019. The Company is no longer subject to U.S. federal income tax audits for years before 2015. The Company is routinely involved in federal, state, local income and excise tax audits, and foreign tax audits. |
PENSION AND POST-RETIREMENT PLA
PENSION AND POST-RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
PENSION AND POST-RETIREMENT PLANS | |
PENSION AND POST-RETIREMENT PLANS | 11. PENSION AND POST-RETIREMENT PLANS Non-bargaining Plans: The Company has two funded qualified single-employer defined benefit pension plans that cover certain non- bargaining unit employees and bargaining unit employees. In addition, the Company has plans that provide certain retiree health care and life insurance benefits to substantially all salaried, non-bargaining employees hired before 2008 and to certain bargaining unit employees. Employees are generally eligible for such benefits upon retirement and completion of a specified number of years of service. The Company does not pre-fund these health care and life insurance benefits, and has the right to modify or terminate certain of these plans in the future. Most non-bargaining retirees pay a portion of the benefit costs. Plan Administration, Investments and Asset Allocations: The Company has a Benefits Investment Committee that meets regularly with investment advisors to establish investment policies, direct investments and select investment options for the qualified plans. The Benefits Investment Committee is also responsible for appointing investment managers and monitoring their performance. The Company’s investment policy permits investments in marketable equity securities, such as domestic and foreign stocks, domestic and foreign bonds, venture capital, real estate investments, and cash equivalents. The Company’s investment policy does not permit direct investment in certain types of assets, such as options or commodities, or the use of certain strategies, such as short selling or the purchase of securities on margin. The Company’s investment strategy for its qualified pension plan assets is to achieve a diversified mix of investments that provides for long-term growth at an acceptable level of risk, and to provide sufficient liquidity to fund ongoing benefit payments. The Company has engaged a number of investment managers to implement various investment strategies to achieve the desired asset class mix, liquidity and risk diversification objectives. The Company’s target and actual asset allocations at December 31, 2020 and 2019 were as follows: Asset Categories Target 2020 2019 Domestic equity securities 53 % 60 % 59 % International equity securities 15 % 17 % 17 % Debt securities 22 % 17 % 17 % Real estate 5 % 5 % 6 % Other and cash 5 % 1 % 1 % Total 100 % 100 % 100 % The Company’s investments in equity securities primarily include domestic large-cap and mid-cap companies, but also includes an allocation to small-cap and international equity securities. Equity investments do not include any direct holdings of the Company’s stock but may include such holdings to the extent that the stock is included as part of certain mutual fund holdings. Debt securities include investment-grade and high-yield corporate bonds from diversified industries, mortgage-backed securities, and U.S. Treasuries. Other types of investments include funds that invest in commercial real estate assets. All assets within specific funds are allocated to the target asset allocation of the fund. The expected return on plan assets is principally based on the Company’s historical returns combined with the Company’s long-term future expectations regarding asset class returns, the mix of plan assets, and inflation assumptions. Actual return on plan assets for the periods presented are as follows: Actual Return on Plan Assets Returns One-year return 12.0 % Three-year return 8.7 % Five-year return 9.8 % Long-term average return (since plan inception in 1989) 8.5 % The Company’s pension plan assets are held in a master trust and are stated at estimated fair values of the underlying investments. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Equity Securities: Domestic and international common stocks are valued by obtaining quoted prices on recognized and highly liquid exchanges. Fixed Income Securities: Corporate bonds and U.S. government treasury and agency securities are valued based upon the closing price reported in the market in which the security is traded. U.S. government agency and corporate asset-backed securities may utilize models, such as a matrix pricing model, that incorporate other observable inputs when broker/dealer quotes are not available, such as cash flow, security structure, or market information. Real Estate Funds: The fair value of real estate funds is determined by the issuer based on their net asset value (“NAV”). NAV is determined by dividing the fund’s net assets, as recorded in the fund’s audited financial statements, by the number of units outstanding at the valuation date. Fair value for underlying investments in real estate is determined through independent property appraisals. The fair values of the Company’s pension plan assets at December 31, 2020 and 2019 by asset category were as follows: Fair Value Measurements at December 31, 2020 Quoted Prices in Significant Significant Active Markets Observable Unobservable Asset Category (in millions) Total (Level 1) Inputs (Level 2) Inputs (Level 3) Cash $ 3.8 $ 3.8 $ — $ — Equity securities: U.S. large-cap 71.3 28.9 42.4 — U.S. mid- and small-cap 54.3 36.2 18.1 — International large-cap 7.0 — 7.0 — Fixed income securities: U.S. Treasuries 12.0 — 12.0 — Investment grade U.S. corporate bonds 22.5 — 22.5 — Total 170.9 $ 68.9 $ 102.0 $ — Investment measured at NAV (1) 41.9 Total plan assets $ 212.8 Fair Value Measurements at December 31, 2019 Quoted Prices in Significant Significant Active Markets Observable Unobservable Asset Category (in millions) Total (Level 1) Inputs (Level 2) Inputs (Level 3) Cash $ 6.3 $ 6.3 $ — $ — Equity securities: U.S. large-cap 62.4 23.7 38.7 — U.S. mid- and small-cap 49.6 33.9 15.7 — International large-cap 6.6 — 6.6 — Fixed income securities: U.S. Treasuries 14.1 — 14.1 — Investment grade U.S. corporate bonds 18.2 — 18.2 — High-yield U.S. corporate bonds 0.1 — 0.1 — Total 157.3 $ 63.9 $ 93.4 $ — Investment measured at NAV (1) 37.5 Total plan assets $ 194.8 (1) Real estate funds for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total plan assets. Contributions to each of the qualified single-employer defined benefit pension plans are determined annually by the Company’s pension administrative committee, based upon the actuarially determined minimum required contribution under the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, the Pension Protection Act of 2006, and the maximum deductible contribution allowed for tax purposes. The Company’s funding policy is to contribute cash to its pension plans so that it meets at least the minimum contribution requirements. In 2020 and 2019, the Company contributed $9.0 million and $10.0 million, respectively, in pension contributions in these plans. There were no contributions to the plans in 2018. The benefit formulas for employees who are members of collective bargaining units are determined according to the collective bargaining agreements, either using final average pay as the base or a flat dollar amount per year of service. Effective December 31, 2011, the Company froze benefit accruals under the final average pay formula for salaried, non-bargaining unit employees hired before January 1, 2008 and transitioned them to the same cash balance formula for employees hired on or after January 1, 2008. Retirement benefits under the cash balance formula are based on a fixed percentage of employee eligible compensation, plus interest. The plan interest credit rate will vary from year to year based on the ten-year U.S. Treasury rate. Benefit Plan Assets and Obligations: The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2020 and 2019 are shown below: Post-retirement Pension Benefits Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Change in Benefit Obligation: Benefit obligation at beginning of year $ 239.9 $ 217.4 $ 26.0 $ 22.2 Service cost 5.1 4.7 0.5 0.4 Interest cost 7.9 9.3 0.8 0.9 Plan participants’ contributions — — 0.8 0.8 Actuarial loss 23.9 22.2 2.7 3.4 Benefits paid, net of subsidies received (12.5) (12.2) (1.7) (1.7) Expenses paid (1.2) (1.5) — — Benefit obligation at end of year 263.1 239.9 29.1 26.0 Change in Plan Assets: Fair value of plan assets at beginning of year 194.8 162.2 — — Actual return on plan assets 22.7 36.3 — — Plan participants’ contributions — — 0.8 0.8 Employer contributions 9.0 10.0 0.9 0.9 Benefits paid, net of subsidies received (12.5) (12.2) (1.7) (1.7) Expenses paid (1.2) (1.5) — — Fair value of plan assets at end of year 212.8 194.8 — — Funded Status and Recognized Liability $ (50.3) $ (45.1) $ (29.1) $ (26.0) Qualified pension and post-retirement benefits plans liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2020 and 2019 were as follows: Post-retirement Pension Benefits Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Non-current assets $ 1.0 $ 1.0 $ — $ — Current liabilities — — (1.0) (1.0) Non-current liabilities, net (51.3) (46.1) (28.1) (25.0) Total $ (50.3) $ (45.1) $ (29.1) $ (26.0) Net loss, net of taxes $ (64.2) $ (56.2) $ (4.4) $ (2.8) Prior service credit, net of taxes 2.5 4.3 16.6 19.1 Total $ (61.7) $ (51.9) $ 12.2 $ 16.3 The information for qualified defined benefit pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2020 and 2019 are shown below: (In millions) 2020 2019 Projected benefit obligation $ 261.4 $ 238.3 Accumulated benefit obligation $ 260.9 $ 237.9 Fair value of plan assets $ 210.0 $ 192.2 Unrecognized gains and losses of the post-retirement benefit plans are amortized over five years . Although current health care costs are expected to increase, the Company attempts to mitigate these increases by maintaining caps on certain of its benefit plans, using lower cost health care plan options where possible, requiring that certain groups of employees pay a portion of their benefit costs, self-insuring for certain insurance plans, encouraging wellness programs for employees, and implementing measures to mitigate future benefit cost increases. Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the qualified pension plans and the post-retirement benefit plans during 2020, 2019 and 2018 were as follows: Pension Benefits Post-retirement Benefits December 31, December 31, (In millions) 2020 2019 2018 2020 2019 2018 Components of Net Periodic Benefit Cost (Benefit): Service cost $ 5.1 $ 4.7 $ 4.4 $ 0.5 $ 0.4 $ 0.6 Interest cost 7.9 9.3 8.6 0.8 0.9 1.0 Expected return on plan assets (14.0) (11.9) (13.5) — — — Amortization of net loss (gain) 4.5 5.2 4.6 0.5 (0.1) 1.5 Amortization of prior service credit (2.3) (2.3) (2.3) (3.7) (3.8) (3.8) Net periodic benefit cost 1.2 5.0 1.8 (1.9) (2.6) (0.7) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax: Net loss (gain) 11.4 (1.7) 7.8 2.0 2.5 (4.7) Amortization of net (loss) gain (3.4) (3.9) (3.5) (0.3) 0.2 (1.1) Amortization of prior service credit 1.7 1.7 1.7 2.8 2.8 2.8 Total recognized in other comprehensive loss (income) 9.7 (3.9) 6.0 4.5 5.5 (3.0) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 10.9 $ 1.1 $ 7.8 $ 2.6 $ 2.9 $ (3.7) The weighted average assumptions used to determine benefit information during 2020, 2019 and 2018 were as follows: Pension Benefits Post-retirement Benefits December 31, December 31, 2020 2019 2018 2020 2019 2018 Discount rate (1) 2.50 % 3.40 % 4.40 % 2.70 % 3.50 % 4.50 % Expected return on plan assets 7.25 % 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Cash balance interest credit rate 0.75 - 3.25 % 1.75 - 3.75 % 3.01 % Initial health care cost trend rate: Pre-65 group 5.30 % 5.70 % 6.00 % Post-65 group 5.40 % 5.90 % 6.30 % Ultimate health care cost trend rate 4.40 % 4.40 % 4.40 % Year ultimate health care cost trend rate is reached: Pre-65 group 2037 2037 2037 Post-65 group 2036 2036 2036 (1) The Company derives a single equivalent rate utilizing a yield curve constructed from a portfolio of high-quality corporate bonds with various maturities. Non-qualified Pension Plans: The Company has non-qualified supplemental pension plans covering certain employees and retirees, which provide for incremental pension payments from the Company’s general funds so that total pension benefits would be substantially equal to amounts that would have been payable from the Company’s qualified pension plans if it were not for limitations imposed by income tax law. A few employees and retirees receive additional supplemental pension benefits. Non-qualified pension plan liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2020 and 2019 are as follows: Non-qualified Pension Benefits December 31, (In millions) 2020 2019 Current liabilities $ (1.7) $ (2.1) Non-current liabilities, net (2.6) (2.3) Total $ (4.3) $ (4.4) Net loss, net of taxes $ (0.8) $ (0.6) Prior service credit, net of taxes 0.1 0.2 Total $ (0.7) $ (0.4) Discount rates of 1.8 percent and 2.8 percent were used in determining the 2020 and 2019 non-qualified pension plan obligations, respectively. Estimated Benefit Payments: Non-qualified Pension Pension Post-retirement Year (in millions) Benefits Benefits Benefits (1) 2021 $ 14.0 $ 1.7 $ 1.0 2022 14.4 — 1.0 2023 14.6 2.2 1.0 2024 14.7 — 1.1 2025 14.9 — 1.1 2026-2030 76.2 0.6 5.5 Total $ 148.8 $ 4.5 $ 10.7 (1) Net of plan participants’ contributions and Medicare Part D subsidies. Defined Contribution Plans: The Company sponsors defined contribution plans that qualify under Sections 401(a) and 401(k) of the Internal Revenue Code. The Company may make discretionary matching contributions equal to a specified percentage of each participant’s 401(k) contributions and makes other non-discretionary contributions. For the year ended December 31, 2020, the Company provided discretionary matching contributions of up to 3 percent of eligible employee compensation. The Company’s matching contributions expensed in 2020, 2019 and 2018 were $3.0 million, $2.9 million and $2.4 million, respectively. The Company may also provide a discretionary profit sharing contribution under the qualified defined contribution plans, to salaried, non-bargaining unit employees, if both a minimum threshold of Company performance is achieved and the Board has approved the profit sharing contribution. For certain eligible employees, supplemental profit sharing contributions are credited under a non-qualified plan to be paid after separation from service from the Company’s general funds so that total profit sharing contributions would be substantially equal to amounts that would have been contributed to the Company’s qualified defined contribution plans if it were not for limitations imposed by income tax law. Discretionary profit sharing contributions expensed in 2020, 2019 and 2018 were $2.2 million, $0.5 million and $1.4 million, respectively. Multi-employer Bargaining Plans: The Company contributes to multi-employer defined benefit pension plans under the terms of collective-bargaining agreements that cover its bargaining unit employees. Contributions are generally based on amounts paid for union labor or cargo volume. The risks of participating in multi-employer plans are different from single-employer plans because assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. Additionally, if one employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. The multi-employer pension plans are subject to the plan termination insurance provisions of ERISA and are paying premiums to the Pension Benefit Guaranty Corporation (“PBGC”). The statutes provide that an employer who withdraws from, or significantly reduces its contribution obligation to, a multi-employer plan generally will be required to continue funding its proportional share of the plan’s unfunded vested benefits. As of December 31, 2020, the Company’s estimated benefit plan withdrawal obligations were $260.0 million. Except as described in Note 12, no withdrawal obligations have been recorded by the Company in the Consolidated Balance Sheets at December 31, 2020 and 2019, as the Company has no present intention of withdrawing from and does not anticipate termination of any of these plans. Information regarding the Company’s participation in multi-employer pension plans is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2020 and 2019 is for the plan’s year-end at December 31, 2020 and 2019, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded; plans in the orange zone are both a) less than 80 percent funded and b) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80 percent funded. The funding improvement plan (“FIP”) or rehabilitation plan (“RP”) column indicates the status which is either pending or has been implemented. The last column lists the expiration dates of the collective-bargaining agreements to which the plans are subject. Pension Protection Act Zone as of FIP/RP Status Contributions of Matson EIN/Pension December 31, Pending/ 5% (in millions) Surcharge Expiration Pension Funds Plan Number Notes 2020 2019 Implemented Contributor 2020 2019 2018 Imposed Date (2) American Radio Association Pension Fund 13-6161999-001 Green Green Implemented Yes $ 1.0 $ 1.1 $ 1.0 No 6/15/2028 Hawaii Terminals Multiemployer Pension Plan 20-0389370-001 (1) Yellow Orange Implemented Yes 5.8 5.7 5.7 No 6/30/2022 Hawaii Stevedoring Multiemployer Retirement Plan 99-0314293-001 (1) Green Yellow Implemented Yes 4.6 4.4 4.3 No 6/30/2022 Master, Mates and Pilots Pension Plan 13-6372630-001 Green Green No Yes 3.2 3.4 3.0 No 6/15/2027, 6/15/2028 Masters, Mates and Pilots Adjustable Pension Plan 37-1719247-001 Green Green No Yes 1.8 1.9 1.7 No 6/15/2027, 6/15/2028 MEBA Pension Trust - Defined Benefit Plan 51-6029896-001 Green Green No Yes 4.1 4.3 4.0 No 6/15/2022, 6/15/2028 OCU Pension Trust Plan 26-1574440-001 Green Green No No 0.2 0.2 0.2 No 6/30/2023 MFOW Supplementary Pension Plan 94-6201677-001 Yellow Green No Yes 0.1 0.1 — No 6/30/2021 SIU Pacific District Pension Plan 94-6061923-001 Green Green No Yes 1.3 1.5 1.2 No 6/30/2021 Alaska Teamster - Employer Pension Plan 92-6003463-024 Red Red Implemented Yes 3.3 1.9 1.9 Yes 6/30/2021, 6/30/2022, 6/30/2023, 6/30/2024 All Alaska Longshore Pension Plan 91-6085352-001 Green Green No Yes 1.3 1.2 1.0 No 6/30/2022 Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green No No 1.6 1.5 1.4 No 3/31/2023 Western Conference of Teamsters Supplemental Benefit Trust 95-3746907-001 Green Green No No — — — No 3/31/2023 OPEIU Local 153 Pension Plan 13-2864289-001 Red Red Implemented No 0.1 0.1 0.1 No 11/9/2023 Seafarers Pension Plan 13-6100329-001 (3) Green Green No No — — — No 6/30/2022 Total $ 28.4 $ 27.3 $ 25.5 (1) The Hawaii Terminals Multiemployer Pension Plan merged into the Hawaii Stevedoring Multiemployer Retirement Plan effective January 1, 2021 and formally known as the Hawaii Longshore Pension Plan. (2) Represents the expiration date of the collective bargaining agreement. (3) The Company does not make contributions directly to the Seafarers Pension Plan. Instead, contributions are made to the Seafarers Health and Benefits Plan, and are subsequently re-allocated to the Seafarers Pension Plan at the discretion of the plan Trustee. The Company also contributes to multi-employer plans that provide post-retirement health and other benefits other than pensions under the terms of collective-bargaining agreements. Benefits provided to active and retired employees and their eligible dependents under these plans include medical, dental, vision and prescription drug. These plans are not subject to the PBGC plan termination and withdrawal liability provisions of ERISA applicable to multi-employer defined benefit pension plans. Contributions for these multi-employer postretirement health and other benefits were $32.5 million, $32.8 million and $30.0 million in 2020, 2019 and 2018, respectively. Multi-employer Defined Contribution Plans: multi-employer defined contribution pension plans. These plans are not subject to the withdrawal liability provisions of ERISA or the PBGC applicable to multi-employer defined benefit pension plans. Contributions made to these plans by the Company were $5.1 million, $5.3 million and $4.8 million in 2020, 2019 and 2018, respectively. |
MULTI-EMPLOYER WITHDRAWAL LIABI
MULTI-EMPLOYER WITHDRAWAL LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
MULTI-EMPLOYER WITHDRAWAL LIABILITIES | |
MULTI-EMPLOYER WITHDRAWAL LIABILITIES | 12. MULTI-EMPLOYER WITHDRAWAL LIABILITIES Horizon ceased all of its operations in Puerto Rico during the first quarter of 2015, which resulted in a mass withdrawal from its multi-employer ILA-PRSSA pension fund. The Company assumed this liability as part of the acquisition of Horizon on May 29, 2015. The Company estimated the mass withdrawal liability based upon the required undiscounted quarterly payment of approximately $1.0 million to be paid to the ILA-PRSSA pension fund over a period which ends in March 2040, discounted to present value using the Company’s incremental borrowing rate. Future estimated annual payments to be paid to the ILA-PRSSA pension fund as of December 31, 2020 were as follows: Year (in millions) Total 2021 $ 4.1 2022 4.1 2023 4.1 2024 4.1 2025 4.1 Thereafter 59.7 Total remaining future undiscounted payments due to the ILA-PRSSA pension fund 80.2 Less: amount representing interest (23.3) Present value of multi-employer withdrawal liability 56.9 Current portion of multi-employer withdrawal liability (see Note 2) (4.1) Long-term portion of multi-employer withdrawal liability (see Note 2) $ 52.8 Furthermore, the Company assumed a partial withdrawal liability related to the Local 153 Fund of the OPEIU. The partial withdrawal liability resulted from a decline in the number of contribution base units related to the Local 153 Fund caused by Horizon terminating all of its operations in Puerto Rico during the first quarter of 2015. The Company included the partial withdrawal liability of |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: Non- Accumulated Post- Qualified Other Pension Retirement Pension Comprehensive (In millions) Benefits Benefits Benefits Other Income (Loss) Balance at December 31, 2018 $ (55.8) $ 21.7 $ (0.1) $ (0.3) $ (34.5) Amortization of prior service cost (1.7) (2.6) (0.1) (0.1) (4.5) Amortization of net loss (gain) 5.6 (2.8) (0.2) 0.1 2.7 Other adjustments — — — (0.6) (0.6) Balance at December 31, 2019 (51.9) 16.3 (0.4) (0.9) (36.9) Amortization of prior service cost (1.8) (2.8) (0.1) — (4.7) Amortization of net loss (gain) (8.0) (1.3) (0.1) — (9.4) Foreign currency exchange — — — 0.5 0.5 Other adjustments — — — (0.3) (0.3) Balance at December 31, 2020 $ (61.7) $ 12.2 $ (0.6) $ (0.7) $ (50.8) Other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income is shown net of tax benefit (expense) of $4.2 million, $(0.3) million and $0.2 million for the years ended December 2020, 2019 and 2018, respectively. |
EARNINGS PER-SHARE
EARNINGS PER-SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER-SHARE | |
EARNINGS PER-SHARE | 14. EARNINGS PER SHARE Basic earnings per share are determined by dividing net income by the weighted-average common shares outstanding during the year. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested stock units. The computation of weighted average dilutive shares outstanding excluded a nominal amount of anti-dilutive non-qualified stock options for each of the years 2020, 2019 and 2018. The denominators used to compute basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 are as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Per Weighted Per Weighted Per Average Common Average Common Average Common Net Common Share Net Common Share Net Common Share (In millions, except per share amounts) Income Shares Amount Income Shares Amount Income Shares Amount Basic: $ 193.1 43.1 $ 4.48 $ 82.7 42.8 $ 1.93 $ 109.0 42.7 $ 2.55 Effect of Dilutive Securities: 0.4 (0.04) 0.5 (0.02) 0.3 (0.02) Diluted: $ 193.1 43.5 $ 4.44 $ 82.7 43.3 $ 1.91 $ 109.0 43.0 $ 2.53 |
SHARE-BASED AWARDS
SHARE-BASED AWARDS | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED AWARDS | |
SHARE-BASED AWARDS | 15. SHARE-BASED AWARDS The Company has share-based compensation plans which are described as follows: 2016 Incentive Compensation Plan: The 2016 Incentive Compensation Plan (the “2016 Plan”) serves as a successor to the 2007 Incentive Compensation Plan and all other predecessor plans. No further grants will be made under the predecessor stock option plans. Under the 2016 Plan, 2.5 million shares of common stock were reserved for issuance. Shareholders approved the 2016 Plan at the 2016 Annual Meeting of Shareholders. The 2016 Plan consists of four separate incentive compensation programs: (i) the discretionary grant program, (ii) the stock issuance program, (iii) the incentive bonus program, and (iv) the automatic grant program for the non- employee members of the Company’s Board of Directors. Share-based compensation is generally awarded under three of the four programs, as more fully described below. Discretionary Grant Program percent of the fair market value (defined as the closing market price) of the Company’s common stock on the date of the grant. Options generally become exercisable ratably over three years and have a maximum contractual term of 10 years . Stock Issuance Program — Under the Stock Issuance Program, shares of common stock, restricted stock units or performance shares may be granted. Time-based equity awards generally vest ratably over three years . Provided certain three-year performance targets are achieved, performance-based equity awards generally vest on the three-year anniversary date of the grant. Automatic Grant Program — At each annual shareholder meeting, non-employee directors will receive an award of restricted stock units that entitle the holder to an equivalent number of shares of common stock upon vesting, under the automatic grant program. Awards of restricted stock units granted under the program generally vest on the one-year anniversary of the grant date. The shares of common stock authorized to be issued under the 2016 Plan may be drawn from shares of the Company’s authorized but unissued common stock or from shares of its common stock that the Company acquires, including shares purchased on the open market or in private transactions. Share-based compensation expense and other information related to share-based awards for the years ended December 31, 2020, 2019 and 2018 are as follows: Years Ended December 31, Share-based compensation expense, net of estimated forfeitures (in millions) 2020 2019 2018 Share-based compensation expense $ 18.8 $ 11.3 $ 12.1 Intrinsic value of options exercised $ 5.8 $ 0.5 $ 0.5 Tax benefit realized upon stock vesting $ 3.3 $ 2.0 $ 2.7 Fair value of stock vested $ 13.1 $ 8.2 $ 10.8 As of December 31, 2020, there was no unrecognized compensation cost related to non-vested stock options. As of December 31, 2020, unrecognized compensation cost related to non-vested restricted stock units and performance-based equity awards was $17.7 million. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 1.7 years. Stock option activity for the year ended December 31, 2020 was as follows (in thousands, except weighted average exercise price and weighted average contractual life): Weighted Weighted Average Average Aggregate 2007 Plan Exercise Contractual Intrinsic Shares Price Life Value Outstanding at December 31, 2019 173 $ 22.30 Exercised (172) $ 22.31 Outstanding at December 31, 2020 1 $ 20.84 0.1 $ 35 Exercisable at December 31, 2020 1 $ 20.84 0.1 $ 35 The following table summarizes non-vested restricted stock unit activity through December 31, 2020 (in thousands, except weighted average grant-date fair value amounts): 2007 Plan 2016 Plan Total Weighted Restricted Restricted Restricted Average Grant- Stock Units Stock Units Stock Units Date Fair Value Outstanding at December 31, 2019 8 770 778 $ 33.39 Granted — 341 341 38.68 Settlement of Performance Shares (1) — 38 38 36.55 Vested (5) (339) (344) 34.86 Canceled — (21) (21) 34.59 Outstanding at December 31, 2020 3 789 792 $ 35.14 (1) Represents shares paid out above target. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 16. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The Company uses Level 1 inputs for the fair values of its cash, cash equivalents and restricted cash, and Level 2 inputs for its variable and fixed rate debt. The fair values of cash, cash equivalents and restricted cash, and variable rate debt approximate their carrying values due to the nature of the instruments. The fair value of fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. The carrying value and fair value of the Company’s financial instruments as of December 31, 2020 and 2019 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) December 31, 2020 Fair Value Measurements at December 31, 2020 Cash and cash equivalents $ 14.4 $ 14.4 $ 14.4 $ — $ — Restricted cash $ 5.3 $ 5.3 $ 5.3 $ — $ — Variable rate debt $ 71.8 $ 71.8 $ — $ 71.8 $ — Fixed rate debt $ 688.3 $ 686.7 $ — $ 686.7 $ — (In millions) December 31, 2019 Fair Value Measurements at December 31, 2019 Cash and cash equivalents $ 21.2 $ 21.2 $ 21.2 $ — $ — Restricted cash $ 7.2 $ 7.2 $ 7.2 $ — $ — Variable rate debt $ 379.1 $ 379.1 $ — $ 379.1 $ — Fixed rate debt $ 579.3 $ 585.9 $ — $ 585.9 $ — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Commitments and contractual obligations, excluding debt obligations (see Note 8), lease commitments (see Note 9), pension and post-retirement plan commitments, and multi-employer bargaining plan withdrawal obligations (see Note 11 and 12), are as follows as of December 31, 2020: Commitments and Contractual Obligations (in millions) Total Standby letters of credit (1) $ 8.1 Bonds (2) $ 33.2 Vendor and other obligations (3) $ 69.1 (1) Standby letters of credit are required for the Company’s uninsured workers’ compensation and other insurance programs, and other needs. (2) Bonds are required for U.S. Customs and other related matters. (3) Vendor and other obligations include: (i) non-cancellable contractual capital project obligations; (ii) dry-docking related obligations; and (iii) other contractual obligations. Amounts are considered obligations if a contract has been agreed to specifying significant terms of the contract, and the amounts are not reflected in the Consolidated Balance Sheets. These amounts are not recorded on the Company’s Consolidated Balance Sheets and it is not expected that the Company or its subsidiaries will be called upon to advance funds under these commitments. Contingencies: Contingencies and other litigation related matters are described as follows: Environmental Matters: The Company’s Ocean Transportation segment has certain risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations. Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows. |
QUARTERLY INFORMATION (Unaudite
QUARTERLY INFORMATION (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY INFORMATION (Unaudited) | |
QUARTERLY INFORMATION (Unaudited) | 18. QUARTERLY INFORMATION (Unaudited) Segment results by quarter for 2020 and 2019 are as follows: Quarters in the Year Ended December 31, 2020 (In millions, except per share amounts) Q1 Q2 Q3 Q4 Operating Revenue: Ocean Transportation $ 400.9 $ 410.8 $ 498.3 $ 543.9 Logistics 113.0 113.3 146.9 156.2 Total Operating Revenue $ 513.9 $ 524.1 $ 645.2 $ 700.1 Operating Income: Ocean Transportation $ 7.9 $ 42.3 $ 86.5 $ 108.1 Logistics 5.1 8.9 11.9 9.6 Total Operating Income 13.0 51.2 98.4 117.7 Interest expense, net (8.6) (8.2) (5.7) (4.9) Other income (expense), net 0.6 1.5 2.4 1.6 Income before Income Taxes 5.0 44.5 95.1 114.4 Income Taxes (1.2) (11.7) (24.2) (28.8) Net Income $ 3.8 $ 32.8 $ 70.9 $ 85.6 Basic Earnings Per Share: $ 0.09 $ 0.76 $ 1.65 $ 1.99 Diluted Earnings Per Share: $ 0.09 $ 0.76 $ 1.63 $ 1.96 Quarters in the Year Ended December 31, 2019 (In millions, except per share amounts) Q1 Q2 Q3 Q4 Operating Revenue: Ocean Transportation $ 397.9 $ 415.4 $ 437.2 $ 416.1 Logistics 134.5 142.5 134.9 124.6 Total Operating Revenue $ 532.4 $ 557.9 $ 572.1 $ 540.7 Operating Income: Ocean Transportation $ 9.4 $ 19.7 $ 43.9 $ 17.8 Logistics 8.1 11.3 11.3 7.6 Total Operating Income 17.5 31.0 55.2 25.4 Interest expense, net (4.6) (6.1) (6.2) (5.6) Other income (expense), net 0.6 0.8 (0.5) 0.3 Income before Income Taxes 13.5 25.7 48.5 20.1 Income Taxes (1.0) (7.3) (12.3) (4.5) Net Income $ 12.5 $ 18.4 $ 36.2 $ 15.6 Basic Earnings Per Share: $ 0.29 $ 0.43 $ 0.84 $ 0.36 Diluted Earnings Per Share: $ 0.29 $ 0.43 $ 0.84 $ 0.36 The following infrequent transactions impacted the Company’s quarterly segment results during the year ended December 31, 2019. There were no infrequent transactions recorded during the year ended December 31, 2020. Quarters in the Year Ended December 31, 2019 (In millions) Q1 Q2 Q3 Q4 Income taxes - Discrete adjustments related to the Tax Act (1) $ 2.9 $ — $ — $ — (1) Amounts relate to discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2019. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation: The Consolidated Financial Statements include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. The Company accounts for its investment in SSAT using the equity method of accounting (see Note 4). |
Fiscal Year | Fiscal Year: The year end for Matson is December 31. The period end for MatNav occurred on the last Friday in December, except for Matson Logistics Warehousing, Inc. and Matson South Pacific Holdco Limited whose period closed on December 31. Included in these Consolidated Financial Statements are 52 weeks in the 2020, 2019 and 2018 fiscal years for MatNav. |
Foreign Currency Transactions | Foreign Currency Transactions: The United States (U.S.) dollar is the functional currency for substantially all of the financial statements of the Company’s foreign subsidiaries. Foreign currency denominated assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a component of accumulated other comprehensive loss (gain) within shareholders’ equity. The Company translates the result of operations of its foreign subsidiaries at the average exchange rate during the respective periods. Gains and losses resulting from foreign currency transactions are included in Costs and Expenses in the Consolidated Statements of Income and Comprehensive Income. |
Use of Estimates | Use of Estimates: The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for doubtful accounts; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash: Cash equivalents consist of highly-liquid investments with original maturities of three months or less. The Company carries these investments at cost, which approximates fair value. Outstanding checks in excess of funds on deposit totaled $19.9 million and $13.8 million at December 31, 2020 and 2019, respectively, and are included in current liabilities in the Consolidated Balance Sheets. Restricted cash relates to amounts that are subject to contractual restrictions and are not readily available. At December 31, 2020 and 2019, restricted cash was $5.3 million and $7.2 million, respectively, and are included in prepaid expenses and other assets in the Consolidated Balance Sheets. |
Accounts Receivable, net | Accounts Receivable, net: Accounts receivable represent amounts due from trade customers arising in the normal course of business. Accounts receivable are shown net of allowance for doubtful accounts receivable in the Consolidated Balance Sheets. Allowance for doubtful accounts receivable is established by management based on estimates of collectability. Estimates of collectability are principally based on an evaluation of the current financial condition of the customer and the potential risks to collection, the customer’s payment history, expected future credit losses and other factors which are regularly monitored by the Company. Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2020, 2019 and 2018 were as follows: Balance at Write-offs Balance at Year (in millions) Beginning of Year Expense (1) and Other End of Year 2020 $ 4.3 $ 2.9 $ (0.9) $ 6.3 2019 $ 4.8 $ 0.6 $ (1.1) $ 4.3 2018 $ 4.6 $ 0.8 $ (0.6) $ 4.8 (1) Expense is shown net of amounts recovered from previously reserved doubtful accounts. |
Allowance for Doubtful Accounts Receivable | Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2020, 2019 and 2018 were as follows: Balance at Write-offs Balance at Year (in millions) Beginning of Year Expense (1) and Other End of Year 2020 $ 4.3 $ 2.9 $ (0.9) $ 6.3 2019 $ 4.8 $ 0.6 $ (1.1) $ 4.3 2018 $ 4.6 $ 0.8 $ (0.6) $ 4.8 (1) Expense is shown net of amounts recovered from previously reserved doubtful accounts. |
Prepaid expenses and Other Assets | Prepaid Expenses and Other Assets: As of December 31, Prepaid Expenses and Other Assets (in millions) 2020 2019 Prepaid fuel $ 10.8 $ 13.7 Prepaid insurance and insurance related receivables 7.5 13.4 Prepaid operating expenses 5.4 5.7 Restricted cash - vessel construction obligations 5.3 7.2 Income tax receivables 0.3 12.8 Other 8.8 9.7 Total $ 38.1 $ 62.5 |
Deferred Loan Fees | Deferred Loan Fees: The Company records deferred loan fees, excluding those related to the revolving credit facility, as a reduction to Total Debt in the Company’s Consolidated Balance Sheets in accordance with Accounting Standards Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These costs are being amortized over the life of the related debt using the effective interest method (see Note 8). Deferred loan fees related to the Company’s revolving credit facility are recorded in other long-term assets in the Company’s Consolidated Balance Sheets, and are amortized using the straight-line method as the difference between that and the use of the effective interest method is not material. |
Other Long-Term Assets | Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2020 and 2019: As of December 31, Other Long-Term Assets (in millions) 2020 2019 Vessel and equipment spare parts $ 11.5 $ 12.4 Insurance related receivables 10.5 10.6 Deferred loan fees 2.7 2.1 Cloud computing software costs 2.4 — Income tax receivables 2.1 11.5 Other 3.8 1.2 Total $ 33.0 $ 37.8 |
Property and Equipment | Property and Equipment: Property and equipment is stated at cost. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range up to the following maximum life: Classification Life Vessels 40 years Machinery and equipment 30 years Terminal facilities 35 years |
Capitalized Interest | Capitalized Interest: The Company capitalizes interest costs during the period the qualified assets are being readied for their intended use. The Company determined that the vessel construction costs are considered qualifying assets for the purposes of capitalizing interest on these assets. The amount of capitalized interest is calculated based on the amount of payments incurred related to the construction of these vessels using a weighted average interest rate. The weighted average interest rate is determined using the Company’s average borrowings outstanding during the period. Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Consolidated Balance Sheets (see Note 5). During the years ended December 31, 2020, 2019 and 2018, the Company capitalized $7.4 million, $15.6 million and $18.7 million of interest related to the construction of new vessels, respectively. |
Leases | Leases: The Company adopted Accounting Standards Codification (“ASC”) 842, Leases 1, 2019. ASC 842 |
Deferred Dry-docking Costs | Deferred Dry-docking Costs: U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and classification society rules. These standards require U.S. flagged vessels to undergo between them. However, U.S. flagged vessels that are enrolled in the U.S. Coast Guard’s Underwater Survey in Lieu of Dry-docking (“UWILD”) program are allowed to have their Intermediate Survey dry-docking requirement met with a less costly underwater inspection. Non-U.S. flagged vessels are required to meet applicable classification society rules and their own local standards for seaworthiness, which also mandate vessels to undergo . The Company is responsible for maintaining its vessels in compliance with U.S. and international standards. As costs associated with dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the scheduled date of the next required dry-docking, which is usually over a two period. Amortization of deferred dry-docking costs are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income. Routine vessel maintenance and repairs are charged to expense as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill and intangible assets arise as a result of acquisitions made by the Company (see Note 6). Intangible assets consist of customer relationships which are being amortized using the straight-line method over the expected useful lives ranging up to 21 years , and a trade name that has an indefinite life. |
Impairment Evaluation of Long-Lived Assets, Intangible Assets and Goodwill | Impairment Evaluation of Long-Lived Assets, Intangible Assets and Goodwill : The Company evaluates its long-lived assets, intangible assets and goodwill for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount. The Company has reporting units within the Ocean Transportation and Logistics reportable segments. Long-lived assets and finite-lived intangible assets are grouped at the lowest level reporting unit for which identifiable cash flows are available. In evaluating for impairment, the estimated future undiscounted cash flows generated by each of these asset groups are compared with the carrying value recorded for each asset group to determine if its carrying value is recoverable. If this review determines that the amount recorded will not be recovered, the amount recorded for the asset group is reduced to its estimated fair value. No impairment charges of long-lived assets and finite-lived intangible assets were recorded for the years ended December 31, 2020, 2019 and 2018. Indefinite-life intangible assets and goodwill are grouped at the lowest level reporting unit for which identifiable cash flows are available. In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, taxes, depreciation and amortization. Based upon the Company’s evaluation of its indefinite-life intangible assets and goodwill for impairment, the Company determined that the fair value of each reporting unit exceeds book value. No impairment charges of indefinite-life intangible assets and goodwill were recorded for the years ended December 31, 2020, 2019 and 2018. |
Impairment Evaluation of SSAT | Impairment Evaluation of SSAT: The Company’s investment in SSAT, a related party, is evaluated for impairment whenever there is evidence of impairment during the reporting period. If any impairment is identified, the Company evaluates if the decrease in the fair value of the investment below its carrying value is other-than-temporary. No impairment was identified during the years ended December 31, 2020, 2019 and 2018. |
Other liabilities | Other Liabilities: As of December 31, Other Liabilities (in millions) 2020 2019 Payroll and vacation $ 29.2 $ 28.5 Employee incentives and other 25.9 14.7 Multi-employer withdrawal liabilities - short term (see Note 12) 10.6 10.8 Income tax liabilities 11.7 2.3 Insurance reserves and other related liabilities - short term 7.0 12.6 Deferred revenues 4.2 6.9 Interest on debt 3.4 4.9 Pension and post-retirement liabilities - short term (see Note 11) 2.7 3.1 Other short-term liabilities 2.1 2.2 Total $ 96.8 $ 86.0 |
Other long-term liabilities | Other Long-Term Liabilities: Other long-term liabilities consist of the following at December 31, 2020 and 2019: As of December 31, Other Long-Term Liabilities (in millions) 2020 2019 Pension and post-retirement liabilities (see Note 11) $ 82.0 $ 73.4 Multi-employer withdrawal liability (see Note 12) 52.8 54.8 Insurance reserves and other related liabilities 25.4 26.6 Other long-term liabilities 5.6 2.6 Total $ 165.8 $ 157.4 |
Pension and Post-Retirement Plans | Pension and Post-Retirement Plans: The Company is a member of the Pacific Maritime Association (“PMA”) and the Hawaii Stevedoring Industry Committee, which negotiate multi-employer pension plans covering certain shoreside bargaining unit personnel. The Company directly negotiates multi-employer pension plans covering other bargaining unit personnel. Pension costs are accrued in accordance with contribution rates established by the PMA, the parties to a plan or the trustees of a plan. Several trusteed, non-contributory, single-employer defined benefit plans and defined contribution plans cover substantially all other employees. The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires that the Company make various assumptions. These assumptions include factors such as discount rates, expected long-term rates of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates, and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results. Additional information about the Company’s pension and post-retirement plans is included in Note 11. |
Insurance Related Liabilities | Insurance Related Liabilities: The Company is uninsured for certain risks but when feasible, many of these risks are mitigated by insurance. The Company purchases insurance with deductibles or self-insured retentions. Such insurance includes, but is not limited to, employee health, workers’ compensation, marine liability, cybersecurity, auto liability and physical damage to property and equipment. For certain risks, the Company elects to not purchase insurance because of the excessive cost of insurance or the perceived remoteness of the risk. In addition, the Company retains all risk of loss that exceeds the limits of the Company’s insurance policies, or for other risks where insurance is not commercially available. When estimating its reserves for retained risks and related liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by independent third-parties. Periodically, management reviews its assumptions and estimates used to determine the adequacy of the Company’s reserves for retained risks and other related liabilities. |
Recognition of Revenues and Expenses | Recognition of Revenues and Expenses: Revenue in the Company’s Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity for the periods presented: Year Ended December 31, Ocean Transportation (in millions) (1) 2020 2019 2018 Ocean Transportation services $ 1,821.7 $ 1,625.8 $ 1,599.3 Terminal and other related services 19.1 24.8 23.0 Fuel sales 7.3 10.1 12.2 Vessel management and related services 5.8 5.9 6.8 Total $ 1,853.9 $ 1,666.6 $ 1,641.3 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and selling, general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. Year Ended December 31, Logistics (in millions) (1) 2020 2019 (2) 2018 (2) Transportation Brokerage and Freight Forwarding services $ 477.0 $ 489.0 $ 532.5 Warehouse and distribution services 36.2 34.1 33.8 Supply chain management and other services 16.2 13.4 15.2 Total $ 529.4 $ 536.5 $ 581.5 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. (2) The Company has reclassified $15.8 million and $16.6 million from transportation brokerage and freight forwarding services to warehouse and distribution services, and supply chain management and other services for the years ended December 31, 2019 and 2018 , respectively, to be consistent with its current period presentation. There was no change in total Logistics revenue for the years ended December 31, 2019 and 2018. ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenue, and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Consolidated Statements of Income and Comprehensive Income. |
Customer Concentration | Customer Concentration: The Ocean Transportation segment serves customers in numerous industries and carries a wide variety of cargo, mitigating its dependence upon any single customer or single type of cargo. In 2020, 2019 and 2018, the percent of Ocean Transportation revenue, respectively. The Logistics segment serves customers in numerous industries and geographical locations. In 2020, 2019 and 2018, the percent of Logistics revenue, respectively. |
Dividends | Dividends: |
Share-Based Compensation | Share-Based Compensation: The Company records compensation expense for all share-based awards made to employees and directors. The Company’s various stock-based compensation plans are more fully described in Note 15. |
Income Taxes | Income Taxes: The estimate of the Company’s income tax expense requires the Company to make various estimates and judgments. These estimates and judgments are applied in the calculation of taxable income, tax credits, tax benefits and deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes. Deferred tax assets and liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse. The Company records a valuation allowance if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. The Company’s income taxes are more fully described in Note 10. |
Rounding | Rounding: Amounts in the Consolidated Financial Statements and Notes to the Consolidated Financial Statements are rounded to millions, except for per share calculations and percentages which were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. |
New Accounting Pronouncements | New Accounting Pronouncements : Measurement of Credit Losses on Financial Instruments : In June 2016, the Financial Accounting Standards Board (“FASB”) 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 was effective for interim and annual periods beginning on or after December 15, 2019. The Company adopted ASU 2016- 13 effective January 1, 2020 using the modified retrospective approach. Upon adoption, the Company included an evaluation of expected future credit losses as part of its estimate for determining the allowance for doubtful accounts. The impact of this change was not material to the Company’s allowance for doubtful accounts receivable in the Consolidated Financial Statements. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”): In August 2018, FASB issued ASU 2018-15 which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 on a prospective basis effective January 1, 2020. During the year ended December 31, 2020, the Company capitalized costs of $2.4 million related to cloud computing arrangements and which were included in other long-term assets on the Company’s Consolidated Balance Sheets as of December 31, 2020. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of changes in the allowance for doubtful accounts receivable | Balance at Write-offs Balance at Year (in millions) Beginning of Year Expense (1) and Other End of Year 2020 $ 4.3 $ 2.9 $ (0.9) $ 6.3 2019 $ 4.8 $ 0.6 $ (1.1) $ 4.3 2018 $ 4.6 $ 0.8 $ (0.6) $ 4.8 (1) Expense is shown net of amounts recovered from previously reserved doubtful accounts. |
Schedule of prepaid expenses and other assets | As of December 31, Prepaid Expenses and Other Assets (in millions) 2020 2019 Prepaid fuel $ 10.8 $ 13.7 Prepaid insurance and insurance related receivables 7.5 13.4 Prepaid operating expenses 5.4 5.7 Restricted cash - vessel construction obligations 5.3 7.2 Income tax receivables 0.3 12.8 Other 8.8 9.7 Total $ 38.1 $ 62.5 |
Schedule of other long-term assets | As of December 31, Other Long-Term Assets (in millions) 2020 2019 Vessel and equipment spare parts $ 11.5 $ 12.4 Insurance related receivables 10.5 10.6 Deferred loan fees 2.7 2.1 Cloud computing software costs 2.4 — Income tax receivables 2.1 11.5 Other 3.8 1.2 Total $ 33.0 $ 37.8 |
Schedule of estimated useful lives of property and equipment | Classification Life Vessels 40 years Machinery and equipment 30 years Terminal facilities 35 years |
Schedule other liabilities | As of December 31, Other Liabilities (in millions) 2020 2019 Payroll and vacation $ 29.2 $ 28.5 Employee incentives and other 25.9 14.7 Multi-employer withdrawal liabilities - short term (see Note 12) 10.6 10.8 Income tax liabilities 11.7 2.3 Insurance reserves and other related liabilities - short term 7.0 12.6 Deferred revenues 4.2 6.9 Interest on debt 3.4 4.9 Pension and post-retirement liabilities - short term (see Note 11) 2.7 3.1 Other short-term liabilities 2.1 2.2 Total $ 96.8 $ 86.0 |
Schedule of other long-term liabilities | As of December 31, Other Long-Term Liabilities (in millions) 2020 2019 Pension and post-retirement liabilities (see Note 11) $ 82.0 $ 73.4 Multi-employer withdrawal liability (see Note 12) 52.8 54.8 Insurance reserves and other related liabilities 25.4 26.6 Other long-term liabilities 5.6 2.6 Total $ 165.8 $ 157.4 |
Ocean Transportation | |
Schedule of principal revenue generating activities by segment | Year Ended December 31, Ocean Transportation (in millions) (1) 2020 2019 2018 Ocean Transportation services $ 1,821.7 $ 1,625.8 $ 1,599.3 Terminal and other related services 19.1 24.8 23.0 Fuel sales 7.3 10.1 12.2 Vessel management and related services 5.8 5.9 6.8 Total $ 1,853.9 $ 1,666.6 $ 1,641.3 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and selling, general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. |
Logistics | |
Schedule of principal revenue generating activities by segment | Year Ended December 31, Logistics (in millions) (1) 2020 2019 (2) 2018 (2) Transportation Brokerage and Freight Forwarding services $ 477.0 $ 489.0 $ 532.5 Warehouse and distribution services 36.2 34.1 33.8 Supply chain management and other services 16.2 13.4 15.2 Total $ 529.4 $ 536.5 $ 581.5 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. (2) The Company has reclassified $15.8 million and $16.6 million from transportation brokerage and freight forwarding services to warehouse and distribution services, and supply chain management and other services for the years ended December 31, 2019 and 2018 , respectively, to be consistent with its current period presentation. There was no change in total Logistics revenue for the years ended December 31, 2019 and 2018. ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenue, and related costs are recognized in proportion to the services performed. |
REPORTABLE SEGMENTS (Tables)
REPORTABLE SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REPORTABLE SEGMENTS | |
Schedule of reportable segment information | Years Ended December 31, (In millions) 2020 2019 2018 Operating Revenue: Ocean Transportation (1) $ 1,853.9 $ 1,666.6 $ 1,641.3 Logistics (2) 529.4 536.5 581.5 Total Operating Revenue $ 2,383.3 $ 2,203.1 $ 2,222.8 Operating Income: Ocean Transportation (3) $ 244.8 $ 90.8 $ 131.1 Logistics 35.5 38.3 32.7 Total Operating Income 280.3 129.1 163.8 Interest expense, net (27.4) (22.5) (18.7) Other income (expense), net 6.1 1.2 2.6 Income before Income Taxes 259.0 107.8 147.7 Income taxes (65.9) (25.1) (38.7) Net Income $ 193.1 $ 82.7 $ 109.0 Capital Expenditures: Ocean Transportation $ 190.0 $ 294.5 $ 385.4 Logistics 2.3 15.8 15.8 Total Capital Expenditures $ 192.3 $ 310.3 $ 401.2 Depreciation and Amortization: Ocean Transportation $ 107.4 $ 93.6 $ 87.0 Logistics 7.5 6.8 7.4 114.9 100.4 94.4 Deferred dry-docking amortization - Ocean Transportation 25.1 34.3 37.4 Total Depreciation and Amortization $ 140.0 $ 134.7 $ 131.8 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $59.1 million, $52.8 million and $51.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $56.4 million, $49.5 million and $43.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. (3) Ocean Transportation segment information includes $26.3 million, $20.8 million, and $36.8 million of equity in income from the Company’s equity investment in SSAT for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, (In millions) 2020 2019 Identifiable Assets: Ocean Transportation (1) $ 2,431.1 $ 2,424.5 Logistics 469.5 420.9 Total Assets $ 2,900.6 $ 2,845.4 (1) The Ocean Transportation segment includes $48.7 million and $76.2 million related to the Company’s equity investment in SSAT as of December 31, 2020 and 2019, respectively. |
INVESTMENT IN SSAT (Tables)
INVESTMENT IN SSAT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT IN SSAT | |
Schedule of condensed income statement information for SSAT | Years Ended December 31, (In millions) 2020 2019 2018 Company's share of net income $ 26.3 $ 20.8 $ 36.8 Distributions received $ 55.4 $ 25.2 $ 42.0 |
Unaudited condensed financial information for SSAT - Balance Sheet | As of December 31, Condensed Balance Sheets (in millions) 2020 2019 Current assets $ 294.3 $ 300.8 Non-current assets 1,249.5 1,283.0 Total Assets $ 1,543.8 $ 1,583.8 Current liabilities $ 238.2 $ 201.9 Non-current liabilities 1,179.9 1,179.2 Equity 125.7 202.7 Total Liabilities and Equity $ 1,543.8 $ 1,583.8 |
Unaudited financial information for SSAT - Statement of Operating Income and Net Income | Years Ended December 31, Condensed Statements of Operating Income and Net Income (in millions) 2020 2019 2018 Operating revenue $ 1,091.6 $ 1,098.3 $ 1,074.2 Operating costs and expenses 1,003.2 1,035.3 963.7 Operating income 88.4 63.0 110.5 Net Income (1) $ 76.6 $ 57.2 $ 104.9 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | As of December 31, 2020 As of December 31, 2019 Accumulated Accumulated (In millions) Cost Depreciation Net Book Value Cost Depreciation Net Book Value Vessels $ 2,191.6 $ 785.5 $ 1,406.1 $ 1,653.5 $ 818.5 $ 835.0 Containers and equipment 572.3 391.8 180.5 544.5 378.8 165.7 Terminal facilities and other property 119.8 45.1 74.7 114.4 41.3 73.1 Vessel construction in progress — — — 488.9 — 488.9 Other construction in progress 28.6 — 28.6 35.4 — 35.4 Total $ 2,912.3 $ 1,222.4 $ 1,689.9 $ 2,836.7 $ 1,238.6 $ 1,598.1 |
Schedule of depreciation expense | Years Ended December 31, (In millions) 2020 2019 2018 Depreciation expense $ 97.1 $ 86.3 $ 80.5 |
GOODWILL AND INTANGIBLES ASSE_2
GOODWILL AND INTANGIBLES ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND INTANGIBLES ASSETS | |
Schedule of goodwill | Goodwill by segment as of December 31, 2020 and 2019 consists of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8 |
Schedule of intangible assets | As of December 31, 2020 As of December 31, 2019 Gross Accumulated Gross Accumulated (In millions) Amount Amortization Net Book Value Amount Amortization Net Book Value Ocean Transportation - Customer relationships $ 140.6 $ 37.9 $ 102.7 $ 140.6 $ 31.2 $ 109.4 Logistics: Customer relationships 90.1 28.1 62.0 90.1 23.9 66.2 Trade name 27.3 — 27.3 27.3 — 27.3 Total Logistics 117.4 28.1 89.3 117.4 23.9 93.5 Total $ 258.0 $ 66.0 $ 192.0 $ 258.0 $ 55.1 $ 202.9 |
Schedule of intangible asset related amortization expense | Years Ended December 31, (In millions) 2020 2019 2018 Amortization expense $ 10.9 $ 11.1 $ 11.2 |
Schedule of estimated amortization expenses related to intangible assets | As of December 31, 2020, estimated amortization expense related to customer relationship intangible assets during the next five years and thereafter is as follows: Customer Year (in millions) Relationships 2021 $ 10.9 2022 10.7 2023 10.7 2024 10.7 2025 10.7 Thereafter 111.0 Total $ 164.7 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEBT | |
Schedule of debt | At December 31, 2020 and 2019, the Company’s debt consisted of the following: As of December 31, (In millions) 2020 2019 Private Placement Term Loans: 5.79 %, payable through 2020 $ — $ 3.5 3.66 %, payable through 2023 22.8 31.9 4.16 %, payable through 2027 34.0 39.3 3.37 %, payable through 2027 75.0 75.0 3.14 %, payable through 2031 169.6 188.0 4.31 %, payable through 2032 27.9 30.3 4.35 %, payable through 2044 — 100.0 3.92 %, payable through 2045 — 69.5 Title XI Debt: 5.34 %, payable through 2028 17.6 19.8 5.27 %, payable through 2029 19.8 22.0 1.22 %, payable through 2043 182.0 — 1.35 %, payable through 2044 139.6 — Revolving credit facility, maturity date of June 29, 2022 71.8 379.1 Total Debt 760.1 958.4 Less: Current portion (59.2) (48.4) Total Long-term Debt 700.9 910.0 Less: Deferred loan fees (15.3) — Total Long-term Debt, net of deferred loan fees $ 685.6 $ 910.0 |
Schedule of maturities of debt | As of Year (in millions) December 31, 2020 2021 $ 59.2 2022 136.8 2023 60.4 2024 51.7 2025 51.7 Thereafter 400.3 Total Debt $ 760.1 |
Schedule of deferred loan fees | Deferred Loan Fees (in millions) Amount Deferred financing costs related to Title XI bonds and private placement debt amendments $ 16.5 Deferred fees expensed related to the redemption of private placement debt (0.3) Amortization expense for the year ended December 31, 2020 (0.9) Balance at December 31, 2020 $ 15.3 |
Schedule of estimated amortization expense relating to deferred laon fees | Year (in millions) Amount 2021 $ 1.5 2022 1.2 2023 1.1 2024 1.1 2025 1.0 Thereafter 9.4 Total amortization expense of deferred loan fees $ 15.3 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Summary of underlying asset class and maximum terms | Lease Type: Term 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 Consolidated Statement of Income and Comprehensive Income for the years ended December 31, 2020 and 2019 consisted of the following: Years Ended December 31, (In millions) 2020 2019 Operating lease cost $ 83.1 $ 71.4 Short-term lease cost 10.6 5.9 Variable lease cost 0.8 0.4 Total lease cost $ 94.5 $ 77.7 Other Lease Information: Other information related to the Company’s operating leases for the years ended December 31, 2020 and 2019 are as follows: Years Ended December 31, (In millions) 2020 2019 Cash paid for amounts included in operating lease liabilities $ 83.6 $ 71.3 Right of use assets obtained in the exchange for new operating lease liabilities $ 70.1 $ 65.3 As of December 31, 2020 2019 Weighted average remaining operating lease term 7.0 years 7.5 years Weighted average incremental borrowing rate 3.7% 4.2% |
Summary of maturities of operating lease liabilities at December 31, 2020 | As of Year (in millions) December 31, 2020 2021 $ 80.5 2022 53.2 2023 47.3 2024 31.8 2025 23.9 Thereafter 65.6 Total lease payments 302.3 Less: Interest (43.0) Present value of operating lease liabilities 259.3 Less: Short-term portion (72.4) Long-term operating lease liabilities $ 186.9 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of income tax expense | Years Ended December 31, (In millions) 2020 2019 2018 Current: Federal $ — $ 0.2 $ 1.5 State 8.7 3.2 2.1 Foreign 1.4 1.3 0.9 Discrete adjustments related to the Tax Act (1) — (2.9) 2.9 Total 10.1 1.8 7.4 Deferred: Deferred tax expense 55.8 23.3 31.3 Total income taxes $ 65.9 $ 25.1 $ 38.7 (1) Current income taxes for the years ended December 31, 2019 and 2018 include a non-cash income tax benefit of $2.9 million and a non-cash income tax expense of $2.9 million, respectively, which relates to discrete adjustments as a result of applying the provisions of the Tax Act. |
Schedule of effective income tax rate | Years Ended December 31, 2020 2019 2018 Computed federal income tax expense 21.0 % 21.0 % 21.0 % State income tax 3.5 % 4.1 % 3.4 % Valuation allowance (0.2) % (0.3) % (0.7) % Foreign taxes 0.6 % 1.2 % 0.6 % Remeasurement and discrete adjustments related to the Tax Act (1) — % (2.7) % 2.0 % Share-based payments (0.5) % (0.1) % 0.1 % Other — net 1.0 % 0.1 % (0.2) % Effective income tax rate 25.4 % 23.3 % 26.2 % (1) Effective income tax rate for the years ended December 31, 2019 and 2018 includes the impact of a non-cash income tax benefit of $2.9 million, or 2.7 percent, and a non-cash income tax expense of $2.9 million, or 2.0 percent, respectively, which related to certain discrete adjustments as a result of applying the provisions of the Tax Act. |
Schedule of tax effects of temporary differences | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019, were as follows: As of December 31, (In millions) 2020 2019 Deferred tax assets: Operating lease liabilities $ 63.5 $ 63.1 Pension and post-retirement plans 21.7 19.2 Multi-employer withdrawal liabilities 15.6 16.1 Federal net operating losses 0.9 14.3 State net operating losses 7.5 7.3 U.S. State alternative minimum tax credits 4.4 6.7 Insurance reserves 5.3 5.9 Deferred compensation 8.2 5.8 Other 10.4 5.9 Total deferred tax assets 137.5 144.3 Valuation allowance (10.0) (10.6) Total deferred tax assets, net of valuation allowance 127.5 133.7 Deferred tax liabilities: Basis differences for property and equipment 372.4 319.2 Operating lease right of use assets 61.5 61.1 Intangibles 40.5 39.7 Lease financing 22.0 23.7 Capital Construction Fund 6.7 12.5 Investment in SSAT 7.4 7.4 Other 6.6 7.7 Total deferred tax liabilities 517.1 471.3 Deferred tax liability, net $ 389.6 $ 337.6 |
Schedule of company's net operating losses ("NOLs") and tax credit carryforwards | (In millions) Expiration Date 2020 2019 U.S. Federal income tax NOLs Various dates beginning in 2027 $ 7.6 $ 71.2 U.S. State income tax NOLs (1) Various dates beginning in 2032 $ 185.9 $ 184.5 U.S. State alternative minimum tax credit No expiration date $ 4.0 $ 6.7 Foreign income tax NOLs No expiration date $ 11.9 $ 14.0 (1) The Company does not expect to benefit from $157.9 million and $157.9 million of U.S. State income tax NOLs as of December 31, 2020 and 2019, respectively. |
Reconciliation of unrecognized tax benefits | Unrecognized Tax Benefits (in millions) Amount Balance at December 31, 2017 $ 15.9 Changes in tax positions of prior years, net (0.3) Reductions for lapse of statute of limitations (0.5) Balance at December 31, 2018 15.1 Changes in tax positions of prior years, net 2.1 Reductions for lapse of statute of limitations (0.8) Balance at December 31, 2019 16.4 Changes in tax positions of prior years, net 2.1 Reductions for lapse of statute of limitations (0.2) Balance at December 31, 2020 $ 18.3 |
PENSION AND POST-RETIREMENT P_2
PENSION AND POST-RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PENSION AND POST-RETIREMENT PLANS | |
Schedule of the Company's target and actual asset allocations | Asset Categories Target 2020 2019 Domestic equity securities 53 % 60 % 59 % International equity securities 15 % 17 % 17 % Debt securities 22 % 17 % 17 % Real estate 5 % 5 % 6 % Other and cash 5 % 1 % 1 % Total 100 % 100 % 100 % |
Schedule of the Company's actual return on plan assets | Actual Return on Plan Assets Returns One-year return 12.0 % Three-year return 8.7 % Five-year return 9.8 % Long-term average return (since plan inception in 1989) 8.5 % |
Schedule of the fair values of the Company's pension plan assets, by asset category | The fair values of the Company’s pension plan assets at December 31, 2020 and 2019 by asset category were as follows: Fair Value Measurements at December 31, 2020 Quoted Prices in Significant Significant Active Markets Observable Unobservable Asset Category (in millions) Total (Level 1) Inputs (Level 2) Inputs (Level 3) Cash $ 3.8 $ 3.8 $ — $ — Equity securities: U.S. large-cap 71.3 28.9 42.4 — U.S. mid- and small-cap 54.3 36.2 18.1 — International large-cap 7.0 — 7.0 — Fixed income securities: U.S. Treasuries 12.0 — 12.0 — Investment grade U.S. corporate bonds 22.5 — 22.5 — Total 170.9 $ 68.9 $ 102.0 $ — Investment measured at NAV (1) 41.9 Total plan assets $ 212.8 Fair Value Measurements at December 31, 2019 Quoted Prices in Significant Significant Active Markets Observable Unobservable Asset Category (in millions) Total (Level 1) Inputs (Level 2) Inputs (Level 3) Cash $ 6.3 $ 6.3 $ — $ — Equity securities: U.S. large-cap 62.4 23.7 38.7 — U.S. mid- and small-cap 49.6 33.9 15.7 — International large-cap 6.6 — 6.6 — Fixed income securities: U.S. Treasuries 14.1 — 14.1 — Investment grade U.S. corporate bonds 18.2 — 18.2 — High-yield U.S. corporate bonds 0.1 — 0.1 — Total 157.3 $ 63.9 $ 93.4 $ — Investment measured at NAV (1) 37.5 Total plan assets $ 194.8 (1) Real estate funds for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total plan assets. |
Schedule of change in benefit obligation and plan assets | The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2020 and 2019 are shown below: Post-retirement Pension Benefits Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Change in Benefit Obligation: Benefit obligation at beginning of year $ 239.9 $ 217.4 $ 26.0 $ 22.2 Service cost 5.1 4.7 0.5 0.4 Interest cost 7.9 9.3 0.8 0.9 Plan participants’ contributions — — 0.8 0.8 Actuarial loss 23.9 22.2 2.7 3.4 Benefits paid, net of subsidies received (12.5) (12.2) (1.7) (1.7) Expenses paid (1.2) (1.5) — — Benefit obligation at end of year 263.1 239.9 29.1 26.0 Change in Plan Assets: Fair value of plan assets at beginning of year 194.8 162.2 — — Actual return on plan assets 22.7 36.3 — — Plan participants’ contributions — — 0.8 0.8 Employer contributions 9.0 10.0 0.9 0.9 Benefits paid, net of subsidies received (12.5) (12.2) (1.7) (1.7) Expenses paid (1.2) (1.5) — — Fair value of plan assets at end of year 212.8 194.8 — — Funded Status and Recognized Liability $ (50.3) $ (45.1) $ (29.1) $ (26.0) |
Schedule of amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss | Qualified pension and post-retirement benefits plans liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2020 and 2019 were as follows: Post-retirement Pension Benefits Benefits December 31, December 31, (In millions) 2020 2019 2020 2019 Non-current assets $ 1.0 $ 1.0 $ — $ — Current liabilities — — (1.0) (1.0) Non-current liabilities, net (51.3) (46.1) (28.1) (25.0) Total $ (50.3) $ (45.1) $ (29.1) $ (26.0) Net loss, net of taxes $ (64.2) $ (56.2) $ (4.4) $ (2.8) Prior service credit, net of taxes 2.5 4.3 16.6 19.1 Total $ (61.7) $ (51.9) $ 12.2 $ 16.3 |
Schedule of information for qualified pension plans with an accumulated benefit obligation in excess of plan assets | The information for qualified defined benefit pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2020 and 2019 are shown below: (In millions) 2020 2019 Projected benefit obligation $ 261.4 $ 238.3 Accumulated benefit obligation $ 260.9 $ 237.9 Fair value of plan assets $ 210.0 $ 192.2 |
Schedule of components of the net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income | Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the qualified pension plans and the post-retirement benefit plans during 2020, 2019 and 2018 were as follows: Pension Benefits Post-retirement Benefits December 31, December 31, (In millions) 2020 2019 2018 2020 2019 2018 Components of Net Periodic Benefit Cost (Benefit): Service cost $ 5.1 $ 4.7 $ 4.4 $ 0.5 $ 0.4 $ 0.6 Interest cost 7.9 9.3 8.6 0.8 0.9 1.0 Expected return on plan assets (14.0) (11.9) (13.5) — — — Amortization of net loss (gain) 4.5 5.2 4.6 0.5 (0.1) 1.5 Amortization of prior service credit (2.3) (2.3) (2.3) (3.7) (3.8) (3.8) Net periodic benefit cost 1.2 5.0 1.8 (1.9) (2.6) (0.7) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax: Net loss (gain) 11.4 (1.7) 7.8 2.0 2.5 (4.7) Amortization of net (loss) gain (3.4) (3.9) (3.5) (0.3) 0.2 (1.1) Amortization of prior service credit 1.7 1.7 1.7 2.8 2.8 2.8 Total recognized in other comprehensive loss (income) 9.7 (3.9) 6.0 4.5 5.5 (3.0) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 10.9 $ 1.1 $ 7.8 $ 2.6 $ 2.9 $ (3.7) |
Schedule of weighted average assumptions used to determine benefit information | Pension Benefits Post-retirement Benefits December 31, December 31, 2020 2019 2018 2020 2019 2018 Discount rate (1) 2.50 % 3.40 % 4.40 % 2.70 % 3.50 % 4.50 % Expected return on plan assets 7.25 % 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Cash balance interest credit rate 0.75 - 3.25 % 1.75 - 3.75 % 3.01 % Initial health care cost trend rate: Pre-65 group 5.30 % 5.70 % 6.00 % Post-65 group 5.40 % 5.90 % 6.30 % Ultimate health care cost trend rate 4.40 % 4.40 % 4.40 % Year ultimate health care cost trend rate is reached: Pre-65 group 2037 2037 2037 Post-65 group 2036 2036 2036 (1) The Company derives a single equivalent rate utilizing a yield curve constructed from a portfolio of high-quality corporate bonds with various maturities. |
Schedule of amounts recognized on balance sheet and accumulated comprehensive income | Non-qualified Pension Benefits December 31, (In millions) 2020 2019 Current liabilities $ (1.7) $ (2.1) Non-current liabilities, net (2.6) (2.3) Total $ (4.3) $ (4.4) Net loss, net of taxes $ (0.8) $ (0.6) Prior service credit, net of taxes 0.1 0.2 Total $ (0.7) $ (0.4) |
Schedule of estimated benefit payments | Non-qualified Pension Pension Post-retirement Year (in millions) Benefits Benefits Benefits (1) 2021 $ 14.0 $ 1.7 $ 1.0 2022 14.4 — 1.0 2023 14.6 2.2 1.0 2024 14.7 — 1.1 2025 14.9 — 1.1 2026-2030 76.2 0.6 5.5 Total $ 148.8 $ 4.5 $ 10.7 (1) Net of plan participants’ contributions and Medicare Part D subsidies. |
Schedule of information regarding the entity's participation in the multi-employer pension plans | Pension Protection Act Zone as of FIP/RP Status Contributions of Matson EIN/Pension December 31, Pending/ 5% (in millions) Surcharge Expiration Pension Funds Plan Number Notes 2020 2019 Implemented Contributor 2020 2019 2018 Imposed Date (2) American Radio Association Pension Fund 13-6161999-001 Green Green Implemented Yes $ 1.0 $ 1.1 $ 1.0 No 6/15/2028 Hawaii Terminals Multiemployer Pension Plan 20-0389370-001 (1) Yellow Orange Implemented Yes 5.8 5.7 5.7 No 6/30/2022 Hawaii Stevedoring Multiemployer Retirement Plan 99-0314293-001 (1) Green Yellow Implemented Yes 4.6 4.4 4.3 No 6/30/2022 Master, Mates and Pilots Pension Plan 13-6372630-001 Green Green No Yes 3.2 3.4 3.0 No 6/15/2027, 6/15/2028 Masters, Mates and Pilots Adjustable Pension Plan 37-1719247-001 Green Green No Yes 1.8 1.9 1.7 No 6/15/2027, 6/15/2028 MEBA Pension Trust - Defined Benefit Plan 51-6029896-001 Green Green No Yes 4.1 4.3 4.0 No 6/15/2022, 6/15/2028 OCU Pension Trust Plan 26-1574440-001 Green Green No No 0.2 0.2 0.2 No 6/30/2023 MFOW Supplementary Pension Plan 94-6201677-001 Yellow Green No Yes 0.1 0.1 — No 6/30/2021 SIU Pacific District Pension Plan 94-6061923-001 Green Green No Yes 1.3 1.5 1.2 No 6/30/2021 Alaska Teamster - Employer Pension Plan 92-6003463-024 Red Red Implemented Yes 3.3 1.9 1.9 Yes 6/30/2021, 6/30/2022, 6/30/2023, 6/30/2024 All Alaska Longshore Pension Plan 91-6085352-001 Green Green No Yes 1.3 1.2 1.0 No 6/30/2022 Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green No No 1.6 1.5 1.4 No 3/31/2023 Western Conference of Teamsters Supplemental Benefit Trust 95-3746907-001 Green Green No No — — — No 3/31/2023 OPEIU Local 153 Pension Plan 13-2864289-001 Red Red Implemented No 0.1 0.1 0.1 No 11/9/2023 Seafarers Pension Plan 13-6100329-001 (3) Green Green No No — — — No 6/30/2022 Total $ 28.4 $ 27.3 $ 25.5 (1) The Hawaii Terminals Multiemployer Pension Plan merged into the Hawaii Stevedoring Multiemployer Retirement Plan effective January 1, 2021 and formally known as the Hawaii Longshore Pension Plan. (2) Represents the expiration date of the collective bargaining agreement. (3) The Company does not make contributions directly to the Seafarers Pension Plan. Instead, contributions are made to the Seafarers Health and Benefits Plan, and are subsequently re-allocated to the Seafarers Pension Plan at the discretion of the plan Trustee. |
MULTI-EMPLOYER WITHDRAWAL LIA_2
MULTI-EMPLOYER WITHDRAWAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
MULTI-EMPLOYER WITHDRAWAL LIABILITIES | |
Schedule of future estimated annual payments to the multi-employer pension plan | Year (in millions) Total 2021 $ 4.1 2022 4.1 2023 4.1 2024 4.1 2025 4.1 Thereafter 59.7 Total remaining future undiscounted payments due to the ILA-PRSSA pension fund 80.2 Less: amount representing interest (23.3) Present value of multi-employer withdrawal liability 56.9 Current portion of multi-employer withdrawal liability (see Note 2) (4.1) Long-term portion of multi-employer withdrawal liability (see Note 2) $ 52.8 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax | Non- Accumulated Post- Qualified Other Pension Retirement Pension Comprehensive (In millions) Benefits Benefits Benefits Other Income (Loss) Balance at December 31, 2018 $ (55.8) $ 21.7 $ (0.1) $ (0.3) $ (34.5) Amortization of prior service cost (1.7) (2.6) (0.1) (0.1) (4.5) Amortization of net loss (gain) 5.6 (2.8) (0.2) 0.1 2.7 Other adjustments — — — (0.6) (0.6) Balance at December 31, 2019 (51.9) 16.3 (0.4) (0.9) (36.9) Amortization of prior service cost (1.8) (2.8) (0.1) — (4.7) Amortization of net loss (gain) (8.0) (1.3) (0.1) — (9.4) Foreign currency exchange — — — 0.5 0.5 Other adjustments — — — (0.3) (0.3) Balance at December 31, 2020 $ (61.7) $ 12.2 $ (0.6) $ (0.7) $ (50.8) |
EARNINGS PER-SHARE (Tables)
EARNINGS PER-SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER-SHARE | |
Schedule of basic and diluted earnings per share | Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Per Weighted Per Weighted Per Average Common Average Common Average Common Net Common Share Net Common Share Net Common Share (In millions, except per share amounts) Income Shares Amount Income Shares Amount Income Shares Amount Basic: $ 193.1 43.1 $ 4.48 $ 82.7 42.8 $ 1.93 $ 109.0 42.7 $ 2.55 Effect of Dilutive Securities: 0.4 (0.04) 0.5 (0.02) 0.3 (0.02) Diluted: $ 193.1 43.5 $ 4.44 $ 82.7 43.3 $ 1.91 $ 109.0 43.0 $ 2.53 |
SHARE-BASED AWARDS (Tables)
SHARE-BASED AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED AWARDS | |
Summary of Compensation expense and Other Measures Related to Share-Based awards | Years Ended December 31, Share-based compensation expense, net of estimated forfeitures (in millions) 2020 2019 2018 Share-based compensation expense $ 18.8 $ 11.3 $ 12.1 Intrinsic value of options exercised $ 5.8 $ 0.5 $ 0.5 Tax benefit realized upon stock vesting $ 3.3 $ 2.0 $ 2.7 Fair value of stock vested $ 13.1 $ 8.2 $ 10.8 |
Stock Option Activity | Stock option activity for the year ended December 31, 2020 was as follows (in thousands, except weighted average exercise price and weighted average contractual life): Weighted Weighted Average Average Aggregate 2007 Plan Exercise Contractual Intrinsic Shares Price Life Value Outstanding at December 31, 2019 173 $ 22.30 Exercised (172) $ 22.31 Outstanding at December 31, 2020 1 $ 20.84 0.1 $ 35 Exercisable at December 31, 2020 1 $ 20.84 0.1 $ 35 |
Non-Vested Restricted Stock Unit Activity | The following table summarizes non-vested restricted stock unit activity through December 31, 2020 (in thousands, except weighted average grant-date fair value amounts): 2007 Plan 2016 Plan Total Weighted Restricted Restricted Restricted Average Grant- Stock Units Stock Units Stock Units Date Fair Value Outstanding at December 31, 2019 8 770 778 $ 33.39 Granted — 341 341 38.68 Settlement of Performance Shares (1) — 38 38 36.55 Vested (5) (339) (344) 34.86 Canceled — (21) (21) 34.59 Outstanding at December 31, 2020 3 789 792 $ 35.14 (1) Represents shares paid out above target. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of fair value measurement | Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) December 31, 2020 Fair Value Measurements at December 31, 2020 Cash and cash equivalents $ 14.4 $ 14.4 $ 14.4 $ — $ — Restricted cash $ 5.3 $ 5.3 $ 5.3 $ — $ — Variable rate debt $ 71.8 $ 71.8 $ — $ 71.8 $ — Fixed rate debt $ 688.3 $ 686.7 $ — $ 686.7 $ — (In millions) December 31, 2019 Fair Value Measurements at December 31, 2019 Cash and cash equivalents $ 21.2 $ 21.2 $ 21.2 $ — $ — Restricted cash $ 7.2 $ 7.2 $ 7.2 $ — $ — Variable rate debt $ 379.1 $ 379.1 $ — $ 379.1 $ — Fixed rate debt $ 579.3 $ 585.9 $ — $ 585.9 $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments and Contractual Obligations | Commitments and contractual obligations, excluding debt obligations (see Note 8), lease commitments (see Note 9), pension and post-retirement plan commitments, and multi-employer bargaining plan withdrawal obligations (see Note 11 and 12), are as follows as of December 31, 2020: Commitments and Contractual Obligations (in millions) Total Standby letters of credit (1) $ 8.1 Bonds (2) $ 33.2 Vendor and other obligations (3) $ 69.1 (1) Standby letters of credit are required for the Company’s uninsured workers’ compensation and other insurance programs, and other needs. (2) Bonds are required for U.S. Customs and other related matters. (3) Vendor and other obligations include: (i) non-cancellable contractual capital project obligations; (ii) dry-docking related obligations; and (iii) other contractual obligations. Amounts are considered obligations if a contract has been agreed to specifying significant terms of the contract, and the amounts are not reflected in the Consolidated Balance Sheets. |
QUARTERLY INFORMATION (Unaudi_2
QUARTERLY INFORMATION (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY INFORMATION (Unaudited) | |
Schedule of quarterly financial information | Quarters in the Year Ended December 31, 2020 (In millions, except per share amounts) Q1 Q2 Q3 Q4 Operating Revenue: Ocean Transportation $ 400.9 $ 410.8 $ 498.3 $ 543.9 Logistics 113.0 113.3 146.9 156.2 Total Operating Revenue $ 513.9 $ 524.1 $ 645.2 $ 700.1 Operating Income: Ocean Transportation $ 7.9 $ 42.3 $ 86.5 $ 108.1 Logistics 5.1 8.9 11.9 9.6 Total Operating Income 13.0 51.2 98.4 117.7 Interest expense, net (8.6) (8.2) (5.7) (4.9) Other income (expense), net 0.6 1.5 2.4 1.6 Income before Income Taxes 5.0 44.5 95.1 114.4 Income Taxes (1.2) (11.7) (24.2) (28.8) Net Income $ 3.8 $ 32.8 $ 70.9 $ 85.6 Basic Earnings Per Share: $ 0.09 $ 0.76 $ 1.65 $ 1.99 Diluted Earnings Per Share: $ 0.09 $ 0.76 $ 1.63 $ 1.96 Quarters in the Year Ended December 31, 2019 (In millions, except per share amounts) Q1 Q2 Q3 Q4 Operating Revenue: Ocean Transportation $ 397.9 $ 415.4 $ 437.2 $ 416.1 Logistics 134.5 142.5 134.9 124.6 Total Operating Revenue $ 532.4 $ 557.9 $ 572.1 $ 540.7 Operating Income: Ocean Transportation $ 9.4 $ 19.7 $ 43.9 $ 17.8 Logistics 8.1 11.3 11.3 7.6 Total Operating Income 17.5 31.0 55.2 25.4 Interest expense, net (4.6) (6.1) (6.2) (5.6) Other income (expense), net 0.6 0.8 (0.5) 0.3 Income before Income Taxes 13.5 25.7 48.5 20.1 Income Taxes (1.0) (7.3) (12.3) (4.5) Net Income $ 12.5 $ 18.4 $ 36.2 $ 15.6 Basic Earnings Per Share: $ 0.29 $ 0.43 $ 0.84 $ 0.36 Diluted Earnings Per Share: $ 0.29 $ 0.43 $ 0.84 $ 0.36 |
Schedule of infrequent transactions impacting the segment results | The following infrequent transactions impacted the Company’s quarterly segment results during the year ended December 31, 2019. There were no infrequent transactions recorded during the year ended December 31, 2020. Quarters in the Year Ended December 31, 2019 (In millions) Q1 Q2 Q3 Q4 Income taxes - Discrete adjustments related to the Tax Act (1) $ 2.9 $ — $ — $ — (1) Amounts relate to discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2019. |
DESCRIPTION OF THE BUSINESS (De
DESCRIPTION OF THE BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2020facilitysegment | |
DESCRIPTION OF THE BUSINESS | |
Number of reportable segments | segment | 2 |
SSAT | |
DESCRIPTION OF THE BUSINESS | |
Number of terminal facilities on which SSAT provided terminal and stevedoring services on the U.S. West Coast | 7 |
Ocean Transportation | SSAT | |
DESCRIPTION OF THE BUSINESS | |
Ownership interest in SSAT (as a percent) | 35.00% |
MatNav | SSAT | |
DESCRIPTION OF THE BUSINESS | |
Number of terminal facilities on which SSAT provided terminal and stevedoring services on the U.S. West Coast | 3 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - FISCAL YEAR (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Fiscal Period Duration | 364 days | 364 days |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - CASH AND ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents | |||
Outstanding checks in excess of funds on deposits | $ 19.9 | $ 13.8 | |
Restricted cash | 5.3 | 7.2 | |
Allowance for doubtful accounts | |||
Balance at Beginning of year | 4.3 | 4.8 | $ 4.6 |
Expense | 2.9 | 0.6 | 0.8 |
Write-offs and Other | (0.9) | (1.1) | (0.6) |
Balance at End of Year | 6.3 | 4.3 | $ 4.8 |
Prepaid and Other Assets: | |||
Prepaid fuel | 10.8 | 13.7 | |
Prepaid insurance and insurance related receivables | 7.5 | 13.4 | |
Prepaid operating expenses | 5.4 | 5.7 | |
Restricted cash - vessel construction obligations | 5.3 | 7.2 | |
Income tax receivables | 0.3 | 12.8 | |
Other | 8.8 | 9.7 | |
Total | 38.1 | 62.5 | |
Other Long-term Assets | |||
Vessel and equipment spare parts | 11.5 | 12.4 | |
Insurance related receivables | 10.5 | 10.6 | |
Deferred loan fees | 2.7 | 2.1 | |
Cloud computing software costs | 2.4 | ||
Income tax receivables | 2.1 | 11.5 | |
Other | 3.8 | 1.2 | |
Total | $ 33 | $ 37.8 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - PROPERTY AND EQUIPMENT AND OTHER (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Impairment of Investment | |||
Impairment charges related to investment in SSAT | $ 0 | $ 0 | $ 0 |
Capitalized Interest | |||
Interest Costs Capitalized | $ 7.4 | $ 15.6 | $ 18.7 |
Dry-docking | |||
Number of dry-docking inspections to be made within a specified period | item | 2 | ||
Dry-dock inspections interval, minimum | 36 months | ||
Minimum | |||
Dry-docking | |||
Period within which number of specified dry-docking inspections to be made | 2 years | ||
Maximum | |||
Dry-docking | |||
Period within which number of specified dry-docking inspections to be made | 5 years | ||
Vessels | |||
Depreciation | |||
Useful life | 40 years | ||
Machinery And Equipment | |||
Depreciation | |||
Useful life | 30 years | ||
Terminal Facilities | |||
Depreciation | |||
Useful life | 35 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - DEFERRED LOAN, DIVIDENDS AND OTHER (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends | |||
Dividends (per share) | $ 0.90 | $ 0.86 | $ 0.82 |
Capitalized Computer Software Costs | |||
Cloud computing software costs | $ 2.4 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets | |||
Impairment charges related to finite-lived intangible assets | $ 0 | $ 0 | $ 0 |
Impairment charges related to indefinite-lived intangible assets and goodwill for impairment | 0 | 0 | $ 0 |
Accrued and other liabilities | |||
Payroll and vacation | 29.2 | 28.5 | |
Employee incentives and other | 25.9 | 14.7 | |
Uninsured risks and related liabilities - short term | 7 | 12.6 | |
Multi-employer withdrawal liability - short-term (see Note 12) | 10.6 | 10.8 | |
Income tax liabilities | 11.7 | 2.3 | |
Deferred revenues | 4.2 | 6.9 | |
Interest on debt | 3.4 | 4.9 | |
Pension and post-retirement liabilities - short term (see Note 11) | 2.7 | 3.1 | |
Other short-term liabilities | 2.1 | 2.2 | |
Total | 96.8 | 86 | |
Other long-term liabilities | |||
Pension and post-retirement liabilities (see Note 11) | 82 | 73.4 | |
Multi-employer withdrawal liability (see Note 12) | 52.8 | 54.8 | |
Uninsured risks and related liabilities | 25.4 | 26.6 | |
Other long-term liabilities | 5.6 | 2.6 | |
Total | $ 165.8 | $ 157.4 | |
Customer Relationships. | Maximum | |||
Intangible assets | |||
Expected useful lives | 21 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - CUSTOMER CONCENTRATION (Details) - Serves customers - customer | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Ocean Transportation | |||
Number of largest customers | 10 | 10 | 10 |
Number of customers | 0 | ||
Ocean Transportation | Revenue | |||
Concentration percentage | 22.00% | 23.00% | 24.00% |
Logistics | |||
Number of largest customers | 10 | 10 | 10 |
Number of customers | 0 | ||
Logistics | Revenue | |||
Concentration percentage | 19.00% | 21.00% | 23.00% |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total | $ 700.1 | $ 645.2 | $ 524.1 | $ 513.9 | $ 540.7 | $ 572.1 | $ 557.9 | $ 532.4 | $ 2,383.3 | $ 2,203.1 | $ 2,222.8 |
Ocean Transportation | |||||||||||
Total | 543.9 | 498.3 | 410.8 | 400.9 | 416.1 | 437.2 | 415.4 | 397.9 | |||
Logistics | |||||||||||
Total | $ 156.2 | $ 146.9 | $ 113.3 | $ 113 | $ 124.6 | $ 134.9 | $ 142.5 | $ 134.5 | |||
Ocean Transportation | |||||||||||
Ocean Transportation services | 1,821.7 | 1,625.8 | 1,599.3 | ||||||||
Terminal and other related services | 19.1 | 24.8 | 23 | ||||||||
Fuel sales | 7.3 | 10.1 | 12.2 | ||||||||
Vessel management and related services | $ 5.8 | $ 5.9 | $ 6.8 | ||||||||
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency | 3.00% | 3.00% | 3.00% | ||||||||
Total | $ 1,853.9 | $ 1,666.6 | $ 1,641.3 | ||||||||
Logistics | |||||||||||
Transportation Brokerage and Freight Forwarding Services | 477 | 489 | 532.5 | ||||||||
Warehouse and distribution services | 36.2 | 34.1 | 33.8 | ||||||||
Supply chain management and other services | 16.2 | 13.4 | 15.2 | ||||||||
Total | $ 529.4 | $ 536.5 | $ 581.5 | ||||||||
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency | 3.00% | 3.00% | 3.00% | ||||||||
Reclassify Transportation Brokerage and Freight Forwarding Services | Logistics | |||||||||||
Transportation Brokerage and Freight Forwarding Services | $ (15.8) | $ (16.6) | |||||||||
Warehouse and distribution services | $ 15.8 | $ 16.6 |
REPORTABLE SEGMENTS (Details)
REPORTABLE SEGMENTS (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment results | |||||||||||
Number of segments | segment | 2 | ||||||||||
Fiscal Period Duration | 364 days | 364 days | |||||||||
Total Operating Revenue | $ 700.1 | $ 645.2 | $ 524.1 | $ 513.9 | $ 540.7 | $ 572.1 | $ 557.9 | $ 532.4 | $ 2,383.3 | $ 2,203.1 | $ 2,222.8 |
Operating Income | 117.7 | 98.4 | 51.2 | 13 | 25.4 | 55.2 | 31 | 17.5 | 280.3 | 129.1 | 163.8 |
Interest expense, net | (4.9) | (5.7) | (8.2) | (8.6) | (5.6) | (6.2) | (6.1) | (4.6) | (27.4) | (22.5) | (18.7) |
Other income (expense), net | 1.6 | 2.4 | 1.5 | 0.6 | 0.3 | (0.5) | 0.8 | 0.6 | 6.1 | 1.2 | 2.6 |
Income before Income Taxes | 114.4 | 95.1 | 44.5 | 5 | 20.1 | 48.5 | 25.7 | 13.5 | 259 | 107.8 | 147.7 |
Income taxes | (28.8) | (24.2) | (11.7) | (1.2) | (4.5) | (12.3) | (7.3) | (1) | (65.9) | (25.1) | (38.7) |
Net Income | 85.6 | 70.9 | 32.8 | 3.8 | 15.6 | 36.2 | 18.4 | 12.5 | 193.1 | 82.7 | 109 |
Depreciation and Amortization | 114.9 | 100.4 | 94.4 | ||||||||
Deferred dry-docking amortization | 25.1 | 34.3 | 37.4 | ||||||||
Total Depreciation and Amortization | 140 | 134.7 | 131.8 | ||||||||
Assets | 2,900.6 | 2,845.4 | 2,900.6 | 2,845.4 | |||||||
Income from SSAT | 26.3 | 20.8 | 36.8 | ||||||||
Ocean Transportation | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 543.9 | 498.3 | 410.8 | 400.9 | 416.1 | 437.2 | 415.4 | 397.9 | |||
Operating Income | 108.1 | 86.5 | 42.3 | 7.9 | 17.8 | 43.9 | 19.7 | 9.4 | |||
Ocean Transportation | SSAT | |||||||||||
Segment results | |||||||||||
Assets | 1,543.8 | 1,583.8 | 1,543.8 | 1,583.8 | |||||||
Income from SSAT | 26.3 | 20.8 | 36.8 | ||||||||
Equity method investments | 48.7 | 76.2 | 48.7 | 76.2 | |||||||
Logistics | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 156.2 | 146.9 | 113.3 | 113 | 124.6 | 134.9 | 142.5 | 134.5 | |||
Operating Income | 9.6 | $ 11.9 | $ 8.9 | $ 5.1 | 7.6 | $ 11.3 | $ 11.3 | $ 8.1 | |||
Operating segments | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 2,383.3 | 2,203.1 | 2,222.8 | ||||||||
Operating Income | 280.3 | 129.1 | 163.8 | ||||||||
Capital Expenditures | 192.3 | 310.3 | 401.2 | ||||||||
Depreciation and Amortization | 114.9 | 100.4 | 94.4 | ||||||||
Assets | 2,900.6 | 2,845.4 | 2,900.6 | 2,845.4 | |||||||
Operating segments | Ocean Transportation | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 1,853.9 | 1,666.6 | 1,641.3 | ||||||||
Operating Income | 244.8 | 90.8 | 131.1 | ||||||||
Capital Expenditures | 190 | 294.5 | 385.4 | ||||||||
Depreciation and Amortization | 107.4 | 93.6 | 87 | ||||||||
Deferred dry-docking amortization | 25.1 | 34.3 | 37.4 | ||||||||
Assets | 2,431.1 | 2,424.5 | 2,431.1 | 2,424.5 | |||||||
Operating segments | Logistics | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 529.4 | 536.5 | 581.5 | ||||||||
Operating Income | 35.5 | 38.3 | 32.7 | ||||||||
Capital Expenditures | 2.3 | 15.8 | 15.8 | ||||||||
Depreciation and Amortization | 7.5 | 6.8 | 7.4 | ||||||||
Assets | $ 469.5 | $ 420.9 | 469.5 | 420.9 | |||||||
Intersegment Eliminations | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 115.5 | 102.3 | 95.4 | ||||||||
Intersegment Eliminations | Ocean Transportation | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | 59.1 | 52.8 | 51.7 | ||||||||
Intersegment Eliminations | Logistics | |||||||||||
Segment results | |||||||||||
Total Operating Revenue | $ 56.4 | $ 49.5 | $ 43.7 |
INVESTMENT IN SSAT (Details)
INVESTMENT IN SSAT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in affiliates | |||
Investment in Terminal Joint Venture | $ 48.7 | $ 76.2 | |
Financial information for equity method investment | |||
Company's share of net income | 26.3 | 20.8 | $ 36.8 |
Distributions Received | 55.4 | 25.2 | 42 |
Current assets | 305.9 | 289.6 | |
Non-current assets | 2,594.7 | 2,555.8 | |
Total Assets | 2,900.6 | 2,845.4 | |
Current liabilities | 511.5 | 436.7 | |
Non-current liabilities | 1,427.9 | 1,603 | |
Total Liabilities and Equity | 2,900.6 | 2,845.4 | |
SSAT | |||
Investments in affiliates | |||
Increase in investment in SSAT | $ 2.2 | ||
Ocean Transportation | SSAT | |||
Investments in affiliates | |||
Ownership interest accounted in the related party terminal joint venture (as a percent) | 35.00% | ||
Cost of services from transactions with unconsolidated affiliate | $ 251.6 | 218.7 | 213.4 |
Accounts payable and accrued liabilities | 29.8 | 63.6 | |
Financial information for equity method investment | |||
Company's share of net income | 26.3 | 20.8 | 36.8 |
Current assets | 294.3 | 300.8 | |
Non-current assets | 1,249.5 | 1,283 | |
Total Assets | 1,543.8 | 1,583.8 | |
Current liabilities | 238.2 | 201.9 | |
Non-current liabilities | 1,179.9 | 1,179.2 | |
Equity | 125.7 | 202.7 | |
Total Liabilities and Equity | 1,543.8 | 1,583.8 | |
Operating revenue | 1,091.6 | 1,098.3 | 1,074.2 |
Operating costs and expenses | 1,003.2 | 1,035.3 | 963.7 |
Operating Income | 88.4 | 63 | 110.5 |
Net Income | $ 76.6 | $ 57.2 | $ 104.9 |
PROPERTY AND EQUIPMENT - SUMMAR
PROPERTY AND EQUIPMENT - SUMMARY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and equipment | |||
Cost | $ 2,912.3 | $ 2,836.7 | |
Accumulated depreciation | 1,222.4 | 1,238.6 | |
Property and equipment, net | 1,689.9 | 1,598.1 | |
Depreciation Expense | 97.1 | 86.3 | $ 80.5 |
Vessels | |||
Property and equipment | |||
Cost | 2,191.6 | 1,653.5 | |
Accumulated depreciation | 785.5 | 818.5 | |
Property and equipment, net | 1,406.1 | 835 | |
Containers and equipment | |||
Property and equipment | |||
Cost | 572.3 | 544.5 | |
Accumulated depreciation | 391.8 | 378.8 | |
Property and equipment, net | 180.5 | 165.7 | |
Terminal facilities and other property | |||
Property and equipment | |||
Cost | 119.8 | 114.4 | |
Accumulated depreciation | 45.1 | 41.3 | |
Property and equipment, net | 74.7 | 73.1 | |
Vessel construction in progress | |||
Property and equipment | |||
Cost | 488.9 | ||
Property and equipment, net | 488.9 | ||
Other construction in progress | |||
Property and equipment | |||
Cost | 28.6 | 35.4 | |
Property and equipment, net | $ 28.6 | $ 35.4 |
GOODWILL AND INTANGIBLES ASSE_3
GOODWILL AND INTANGIBLES ASSETS - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | ||
Goodwill | $ 327.8 | $ 327.8 |
Ocean Transportation | ||
Goodwill [Line Items] | ||
Goodwill | 222.6 | |
Logistics | ||
Goodwill [Line Items] | ||
Goodwill | 105.2 | |
Logistics | Span Alaska | ||
Goodwill [Line Items] | ||
Goodwill | 78.6 | |
Logistics | Other Acquisitions | ||
Goodwill [Line Items] | ||
Goodwill | $ 26.6 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets | |||
Gross Amount | $ 258 | $ 258 | |
Accumulated Amortization | (66) | (55.1) | |
Net Amount | 192 | 202.9 | |
Aggregate intangible asset amortization | 10.9 | 11.1 | $ 11.2 |
Estimated amortization expenses related to intangibles | |||
2021 | 10.9 | ||
2022 | 10.7 | ||
2023 | 10.7 | ||
2024 | 10.7 | ||
2025 | 10.7 | ||
Thereafter | 111 | ||
Total | 164.7 | ||
Ocean Transportation | Customer Relationships. | |||
Intangible assets | |||
Gross Amount | 140.6 | 140.6 | |
Accumulated Amortization | (37.9) | (31.2) | |
Net Amount | $ 102.7 | 109.4 | |
Ocean Transportation | Customer Relationships. | Horizon | |||
Intangible assets | |||
Expected useful life | 21 years | ||
Finite-Lived intangible assets acquired | $ 140.6 | ||
Logistics | |||
Intangible assets | |||
Gross Amount | 117.4 | 117.4 | |
Accumulated Amortization | (28.1) | (23.9) | |
Net Amount | 89.3 | 93.5 | |
Logistics | Trade Names | |||
Intangible assets | |||
Indefinite-Lived intangible asset | 27.3 | 27.3 | |
Logistics | Span Alaska | Trade Names | |||
Intangible assets | |||
Indefinite-Lived intangible asset acquired | 27.3 | ||
Logistics | Customer Relationships. | |||
Intangible assets | |||
Gross Amount | 90.1 | 90.1 | |
Accumulated Amortization | (28.1) | (23.9) | |
Net Amount | 62 | $ 66.2 | |
Net Remaining Amount | $ 10.8 | ||
Expected useful life | 13 years | ||
Logistics | Customer Relationships. | Span Alaska | |||
Intangible assets | |||
Net Amount | $ 79.3 | ||
Expected useful life | 20 years |
CAPITAL CONSTRUCTION FUND (Deta
CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maximum period to commit fund deposits for qualified purposes | 25 years | |
Period over which deposits will be treated as non-qualified withdrawals | 5 years | |
Accounts receivable, net | $ 253.4 | $ 205.9 |
Eligible Accounts Receivable Assigned to CCF | ||
Accounts receivable, net | $ 1.7 |
DEBT - SUMMARY (Details)
DEBT - SUMMARY (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt | ||
Total Debt | $ 760.1 | $ 958.4 |
Less current portion | (59.2) | (48.4) |
Total Long-term Debt | 700.9 | 910 |
Less: Deferred loan fees | (15.3) | |
Total Long-term Debt, net of deferred loan fees | $ 685.6 | 910 |
5.79%, payable through 2020 | ||
Debt | ||
Total Debt | 3.5 | |
Interest rate (as a percent) | 5.79% | |
3.66%, payable through 2023 | ||
Debt | ||
Total Debt | $ 22.8 | 31.9 |
Interest rate (as a percent) | 3.66% | |
4.16%, payable through 2027 | ||
Debt | ||
Total Debt | $ 34 | 39.3 |
Interest rate (as a percent) | 4.16% | |
3.37 %, payable through 2027 | ||
Debt | ||
Total Debt | $ 75 | 75 |
Interest rate (as a percent) | 3.37% | |
3.14%, payable through 2031 | ||
Debt | ||
Total Debt | $ 169.6 | 188 |
Interest rate (as a percent) | 3.14% | |
4.31%, payable through 2032 | ||
Debt | ||
Total Debt | $ 27.9 | 30.3 |
Interest rate (as a percent) | 4.31% | |
4.35%, payable through 2044 | ||
Debt | ||
Total Debt | 100 | |
Interest rate (as a percent) | 4.35% | |
3.92%, payable through 2045 | ||
Debt | ||
Total Debt | 69.5 | |
Interest rate (as a percent) | 3.92% | |
5.34%, payable through 2028 | ||
Debt | ||
Total Debt | $ 17.6 | 19.8 |
Interest rate (as a percent) | 5.34% | |
5.27%, payable through 2029 | ||
Debt | ||
Total Debt | $ 19.8 | 22 |
Interest rate (as a percent) | 5.27% | |
1.22 %, payable through 2043 | ||
Debt | ||
Total Debt | $ 182 | |
Interest rate (as a percent) | 1.22% | |
1.35 %, payable through 2044 | ||
Debt | ||
Total Debt | $ 139.6 | |
Interest rate (as a percent) | 1.35% | |
Revolving Credit Facility | ||
Debt | ||
Total Debt | $ 71.8 | $ 379.1 |
Funds available under the revolving credit facility | $ 570.1 | |
Interest rate during period (as a percent) | 2.50% |
DEBT - DESCRIPTION (Details)
DEBT - DESCRIPTION (Details) | Jun. 22, 2020USD ($) | Apr. 27, 2020USD ($) | Mar. 31, 2020 | Dec. 21, 2016USD ($) | Sep. 14, 2016USD ($) | Jul. 31, 2015USD ($) | Jan. 31, 2014USD ($) | Aug. 31, 2004USD ($) | Sep. 30, 2003USD ($) | Jun. 30, 2012USD ($)item | Dec. 31, 2020USD ($) | Jul. 15, 2015 |
Debt | ||||||||||||
Payment of debt financing costs | $ 18,500,000 | |||||||||||
Proceeds from issuance of debt | 325,500,000 | |||||||||||
Letters of credit | $ 8,100,000 | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt | ||||||||||||
Interest rate during period (as a percent) | 2.50% | |||||||||||
Maximum borrowing capacity under revolving credit facility | $ 650,000,000 | |||||||||||
Uncommitted option to increase credit facility | 250,000,000 | |||||||||||
Unused portion of credit facility | 570,100,000 | |||||||||||
Debt covenant, maximum priority debt to be incurred by Foreign Subsidiaries | $ 20,000,000 | |||||||||||
Revolving Credit Facility | Minimum | ||||||||||||
Debt | ||||||||||||
Ratio of consolidated EBITDA to interest expense | 3.50 | |||||||||||
Credit facility commitment fee percentage | 0.25% | |||||||||||
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt | ||||||||||||
Variable rate margin | 1.75% | |||||||||||
Revolving Credit Facility | Minimum | Base rate | ||||||||||||
Debt | ||||||||||||
Variable rate margin | 0.75% | |||||||||||
Revolving Credit Facility | Maximum | ||||||||||||
Debt | ||||||||||||
Credit facility commitment fee percentage | 0.55% | |||||||||||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt | ||||||||||||
Variable rate margin | 3.50% | |||||||||||
Revolving Credit Facility | Maximum | Base rate | ||||||||||||
Debt | ||||||||||||
Variable rate margin | 2.50% | |||||||||||
Standby and commercial letters of credit | ||||||||||||
Debt | ||||||||||||
Standby letters of credit | $ 8,100,000 | |||||||||||
Maximum borrowing capacity under revolving credit facility | 100,000,000 | |||||||||||
Standby and commercial letters of credit | Minimum | ||||||||||||
Debt | ||||||||||||
Line of credit fees percentage | 1.75% | |||||||||||
Standby and commercial letters of credit | Maximum | ||||||||||||
Debt | ||||||||||||
Line of credit fees percentage | 3.50% | |||||||||||
Swing Line Loans | ||||||||||||
Debt | ||||||||||||
Maximum borrowing capacity under revolving credit facility | $ 50,000,000 | |||||||||||
5.34%, payable through 2028 | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 5.34% | |||||||||||
5.34%, payable through 2028 | MatNav | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 55,000,000 | |||||||||||
Interest rate (as a percent) | 5.34% | |||||||||||
Semi-annual payments | $ 1,100,000 | |||||||||||
5.79%, payable through 2020 | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 5.79% | |||||||||||
Annual principal payments | $ 3,500,000 | |||||||||||
5.27%, payable through 2029 | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 5.27% | |||||||||||
5.27%, payable through 2029 | MatNav | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 55,000,000 | |||||||||||
Interest rate (as a percent) | 5.27% | |||||||||||
Semi-annual payments | $ 1,100,000 | |||||||||||
Senior Unsecured Long Term Debt | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 100,000,000 | |||||||||||
Debt instrument term | 30 years | |||||||||||
Interest rate (as a percent) | 4.35% | |||||||||||
4.35%, payable through 2044 | ||||||||||||
Debt | ||||||||||||
Interest rate (as a percent) | 4.35% | |||||||||||
Unsecured debt | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 170,000,000 | |||||||||||
Number of tranches | item | 3 | |||||||||||
Unsecured debt | Debt Instrument Redemption 2015 through 2016 | ||||||||||||
Debt | ||||||||||||
Semi-annual payments | $ 4,600,000 | |||||||||||
Unsecured debt | Debt Instrument Redemption 2017 through mid-year 2023 | ||||||||||||
Debt | ||||||||||||
Semi-annual payments | 8,400,000 | |||||||||||
Unsecured debt | Debt Instrument Redemption Mid-year 2023 through mid-year 2027 | ||||||||||||
Debt | ||||||||||||
Semi-annual payments | 3,800,000 | |||||||||||
Unsecured debt | Debt Instrument Redemption After mid-year 2027 | ||||||||||||
Debt | ||||||||||||
Semi-annual payments | 1,200,000 | |||||||||||
Unsecured debt, tranche maturing in 2023 | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 77,500,000 | |||||||||||
Interest rate (as a percent) | 3.66% | |||||||||||
Unsecured debt, tranche maturing in 2027 | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 55,000,000 | |||||||||||
Interest rate (as a percent) | 4.16% | |||||||||||
Unsecured debt, tranche maturing in 2032 | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 37,500,000 | |||||||||||
Interest rate (as a percent) | 4.31% | |||||||||||
Notes 30 years | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 75,000,000 | |||||||||||
Debt instrument term | 30 years | |||||||||||
Interest rate (as a percent) | 3.92% | |||||||||||
Senior Unsecured Series A Notes | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 75,000,000 | |||||||||||
Debt instrument term | 11 years | |||||||||||
Interest rate (as a percent) | 3.37% | |||||||||||
Senior Unsecured Series A Notes | Debt Instrument Redemption 2021 | ||||||||||||
Debt | ||||||||||||
Semi-annual payments | $ 5,800,000 | |||||||||||
Senior Unsecured Series A Notes | Debt Instrument Redemption 2022 through 2027 | ||||||||||||
Debt | ||||||||||||
Semi-annual payments | $ 11,500,000 | |||||||||||
Title XI Notes | MatNav | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 139,600,000 | $ 185,900,000 | ||||||||||
Interest rate (as a percent) | 1.35% | 1.22% | ||||||||||
Annual principal payments | $ 3,000,000 | $ 4,000,000 | ||||||||||
Payment of debt financing costs | $ 6,700,000 | $ 8,700,000 | ||||||||||
The Senior Unsecured Notes (The "Series D Notes") | ||||||||||||
Debt | ||||||||||||
Debt issued | $ 200,000,000 | |||||||||||
Debt instrument term | 15 years | |||||||||||
Interest rate (as a percent) | 3.14% | |||||||||||
Maturities of Long-term Debt | ||||||||||||
Semi-annual principal payments in year 2019 | $ 6,000,000 | |||||||||||
Semi-annual principal payments in 2020 to 2023 | 9,200,000 | |||||||||||
Semi-annual principal payments in 2024 to 2031 | $ 7,150,000 |
DEBT - REVOLVING CREDIT FACILIT
DEBT - REVOLVING CREDIT FACILITY (Details) | Jun. 22, 2020USD ($) | Apr. 27, 2020USD ($) | Mar. 31, 2020item | Sep. 14, 2016USD ($) | Dec. 31, 2020USD ($)item |
Debt | |||||
Payment of debt financing costs | $ 18,500,000 | ||||
Title XI Notes | |||||
Debt | |||||
The number of vessels committed to securing debt | item | 2 | ||||
Revolving Credit Facility | |||||
Debt | |||||
Maximum borrowing capacity under revolving credit facility | $ 650,000,000 | ||||
Uncommitted option to increase credit facility | 250,000,000 | ||||
Funds available under the revolving credit facility | $ 570,100,000 | ||||
Interest rate during period (as a percent) | 2.50% | ||||
Covenant threshold for debt incurred | $ 331,000,000 | ||||
Revolving Credit Facility | Minimum | |||||
Debt | |||||
Credit facility commitment fee percentage | 0.25% | ||||
Ratio of consolidated EBITDA to interest expense | 3.50 | ||||
Revolving Credit Facility | Maximum | |||||
Debt | |||||
Credit facility commitment fee percentage | 0.55% | ||||
Standby and commercial letters of credit | |||||
Debt | |||||
Maximum borrowing capacity under revolving credit facility | $ 100,000,000 | ||||
Standby letters of credit | 8,100,000 | ||||
Standby and commercial letters of credit | Minimum | |||||
Debt | |||||
Line of credit fees percentage | 1.75% | ||||
Standby and commercial letters of credit | Maximum | |||||
Debt | |||||
Line of credit fees percentage | 3.50% | ||||
Swing Line Loans | |||||
Debt | |||||
Maximum borrowing capacity under revolving credit facility | 50,000,000 | ||||
The Senior Unsecured Notes (The "Series D Notes") | |||||
Debt | |||||
Debt issued | $ 200,000,000 | ||||
Interest rate (as a percent) | 3.14% | ||||
Debt instrument term | 15 years | ||||
Maturities of Long-term Debt | |||||
Semi-annual principal payments in year 2019 | $ 6,000,000 | ||||
Semi-annual principal payments in 2020 to 2023 | 9,200,000 | ||||
Semi-annual principal payments in 2024 to 2031 | $ 7,150,000 | ||||
Private Loan Facilities | |||||
Debt | |||||
Number of consecutive quarters | item | 2 | ||||
Additional interest rate based on the entity's consolidated leverage ratio | 25.00% | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Minimum | |||||
Debt | |||||
Variable rate margin | 1.75% | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Maximum | |||||
Debt | |||||
Variable rate margin | 3.50% | ||||
Base rate | Revolving Credit Facility | Minimum | |||||
Debt | |||||
Variable rate margin | 0.75% | ||||
Base rate | Revolving Credit Facility | Maximum | |||||
Debt | |||||
Variable rate margin | 2.50% | ||||
MatNav | Title XI Notes | |||||
Debt | |||||
Minimum working capital covenant | $ 1 | ||||
Debt instrument covenant ratio, maintenance of net worth | 90.00% | ||||
Payment of debt financing costs | $ 6,700,000 | $ 8,700,000 | |||
Debt issued | $ 139,600,000 | $ 185,900,000 | |||
Interest rate (as a percent) | 1.35% | 1.22% | |||
Annual principal payments | $ 3,000,000 | $ 4,000,000 | |||
MatNav | Minimum | Title XI Notes | |||||
Debt | |||||
Debt instrument covenant, long-term debt to net worth | 2.00% |
DEBT - MATURITIES (Details)
DEBT - MATURITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt maturities | ||
2021 | $ 59.2 | |
2022 | 136.8 | |
2023 | 60.4 | |
2024 | 51.7 | |
2025 | 51.7 | |
Thereafter | 400.3 | |
Total Debt | $ 760.1 | $ 958.4 |
DEBT - DEFERRED LOAN FEES (Deta
DEBT - DEFERRED LOAN FEES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
DEBT | |
Deferred financing costs related to Title XI bonds and private placement debt amendments | $ 16.5 |
Deferred fees expensed related to the redemption of private placement debt | (0.3) |
Amortization expense | (0.9) |
Ending Balance | $ 15.3 |
DEBT - AMORTIZATION EXPENSE (De
DEBT - AMORTIZATION EXPENSE (Details) $ in Millions | Dec. 31, 2020USD ($) |
DEBT | |
2021 | $ 1.5 |
2022 | 1.2 |
2023 | 1.1 |
2024 | 1.1 |
2025 | 1 |
Thereafter | 9.4 |
Total amortization expense of deferred loan fees | $ 15.3 |
LEASES - LEASE TERM (Details)
LEASES - LEASE TERM (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Retained earnings | $ 658.1 | $ 504.2 | |
Adjustment | ASC 842 | |||
Lessee, Lease, Description [Line Items] | |||
Retained earnings | $ 4.4 | ||
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 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost | ||
Operating lease cost | $ 83.1 | $ 71.4 |
Short-term lease cost | 10.6 | 5.9 |
Variable lease cost | 0.8 | 0.4 |
Total lease cost | $ 94.5 | $ 77.7 |
LEASE - OTHER INFORMATION (Deta
LEASE - OTHER INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost | ||
Cash paid for amounts included in operating lease liabilities | $ 83.6 | $ 71.3 |
Right of use assets obtained in the exchange for new operating lease liabilities | $ 70.1 | $ 65.3 |
Weighted-average remaining operating lease term | 7 years | 7 years 6 months |
Weighted-average incremental borrowing rate | 3.70% | 4.20% |
LEASE - MATURITIES OF OPERATING
LEASE - MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of operating lease liabilities | ||
2021 | $ 80.5 | |
2022 | 53.2 | |
2023 | 47.3 | |
2024 | 31.8 | |
2024 | 23.9 | |
Thereafter | 65.6 | |
Total lease payments | 302.3 | |
Less: Interest | (43) | |
Present value of operating lease liabilities | 259.3 | |
Less: Short-term portion | (72.4) | $ (66.6) |
Long-term operating lease liabilities | $ 186.9 | $ 198 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Liabilities, Current |
LEASE - SALE AND LEASEBACK OF E
LEASE - SALE AND LEASEBACK OF EQUIPMENT (Details) - Multiple Tranches of Chassis and Container Equipment $ in Millions | Mar. 25, 2020USD ($) |
Sale Leaseback Transaction [Line Items] | |
Net proceeds | $ 14.3 |
Base term | 5 years |
LEASES - Vessel Charter and Buy
LEASES - Vessel Charter and Buyer Lessor Guaranty (Details) - USD ($) $ in Millions | Nov. 26, 2018 | Dec. 31, 2020 |
Sale Leaseback Transaction [Line Items] | ||
Operating lease liability | $ 259.3 | |
Vessel Charter, Sale and Leaseback Transaction | ||
Sale Leaseback Transaction [Line Items] | ||
Renewal option | true | |
Vessel Charter, Sale and Leaseback Transaction | Bareboat Charter Agreement | ||
Sale Leaseback Transaction [Line Items] | ||
Sale of subsequently leased back | $ 106 | |
Rent payments per quarter | $ 3 | |
Base term | 5 years | |
Renewal term | 2 years | |
Residual value guarantee option | true | |
Operating lease liability | $ 36 | |
Purchase option price | $ 68.9 | |
Purchase option price extended term | 58.3 | |
Maximum residual value guarantee amount | 50.9 | |
Maximum residual value guarantee amount extended term | $ 47.7 |
INCOME TAXES - SUMMARY (Details
INCOME TAXES - SUMMARY (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | ||||||||||||
Income taxes - Discrete adjustments related to the Tax Act (1) | $ 2.9 | $ (2.9) | $ 2.9 | |||||||||
Current: | ||||||||||||
Federal | 0.2 | 1.5 | ||||||||||
State | $ 8.7 | 3.2 | 2.1 | |||||||||
Foreign | 1.4 | 1.3 | 0.9 | |||||||||
Discrete adjustments related to the Tax Act | 2.9 | (2.9) | 2.9 | |||||||||
Total | 10.1 | 1.8 | 7.4 | |||||||||
Deferred: | ||||||||||||
Deferred tax expense | 55.8 | 23.3 | 31.3 | |||||||||
Total income taxes | $ 28.8 | $ 24.2 | $ 11.7 | $ 1.2 | $ 4.5 | $ 12.3 | $ 7.3 | $ 1 | $ 65.9 | $ 25.1 | $ 38.7 | |
Difference of Income tax expense from amounts computed by applying the statutory federal rate to income from continuing operations before income taxes | ||||||||||||
Computed federal income tax expense (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% | ||||||||
State income tax (as a percent) | 3.50% | 4.10% | 3.40% | |||||||||
Valuation allowance (as a percent) | (0.20%) | (0.30%) | (0.70%) | |||||||||
Foreign taxes (as a percent) | 0.60% | 1.20% | 0.60% | |||||||||
Remeasurement and discrete adjustments related to Tax Act (as a percent) | (2.70%) | 2.00% | ||||||||||
Share-based payments (as a percent) | (0.50%) | (0.10%) | 0.10% | |||||||||
Other-net (as a percent) | 1.00% | 0.10% | (0.20%) | |||||||||
Effective income tax rate , Percent, Total | 25.40% | 23.30% | 26.20% | |||||||||
Valuation allowance related to foreign subsidiary losses | $ 0.6 | $ 0.9 | $ (1.1) | |||||||||
Valuation allowances | 10 | 10.6 | 10 | 10.6 | ||||||||
Deferred tax assets: | ||||||||||||
Operating lease liabilities | 63.5 | 63.1 | 63.5 | 63.1 | ||||||||
Pension and post-retirement plans | 21.7 | 19.2 | 21.7 | 19.2 | ||||||||
Multi-employer withdrawal liabilities | 15.6 | 16.1 | 15.6 | 16.1 | ||||||||
Federal net operating losses | 0.9 | 14.3 | 0.9 | 14.3 | ||||||||
State net operating losses | 7.5 | 7.3 | 7.5 | 7.3 | ||||||||
U.S. State alternative minimum tax credits | 4.4 | 6.7 | 4.4 | 6.7 | ||||||||
Insurance reserves | 5.3 | 5.9 | 5.3 | 5.9 | ||||||||
Deferred compensation | 8.2 | 5.8 | 8.2 | 5.8 | ||||||||
Other | 10.4 | 5.9 | 10.4 | 5.9 | ||||||||
Total deferred tax assets | 137.5 | 144.3 | 137.5 | 144.3 | ||||||||
Valuation allowance | (10) | (10.6) | (10) | (10.6) | ||||||||
Total Deferred tax assets, net of valuation allowance | 127.5 | 133.7 | 127.5 | 133.7 | ||||||||
Deferred tax liabilities: | ||||||||||||
Basis differences for property and equipment | 372.4 | 319.2 | 372.4 | 319.2 | ||||||||
Operating lease right of use assets | 61.5 | 61.1 | 61.5 | 61.1 | ||||||||
Intangibles | 40.5 | 39.7 | 40.5 | 39.7 | ||||||||
Lease financing | 22 | 23.7 | 22 | 23.7 | ||||||||
Capital Construction Fund | 6.7 | 12.5 | 6.7 | 12.5 | ||||||||
Investment in SSAT | 7.4 | 7.4 | 7.4 | 7.4 | ||||||||
Other | 6.6 | 7.7 | 6.6 | 7.7 | ||||||||
Total deferred tax liabilities | 517.1 | 471.3 | 517.1 | 471.3 | ||||||||
Deferred tax liability, net , Total | $ 389.6 | $ 337.6 | $ 389.6 | $ 337.6 |
INCOME TAXES - OPERATING LOSS A
INCOME TAXES - OPERATING LOSS AND TAX CREDIT CARRYFORWARDS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss and Tax Credit Carryforwards | ||
Valuation allowances | $ 10 | $ 10.6 |
Operating loss carryforwards, not expected to benefit the entity | 157.9 | 157.9 |
U.S. Federal Income Tax | ||
Operating Loss and Tax Credit Carryforwards | ||
Net operating losses carryforwards | 7.6 | 71.2 |
State Income Tax | ||
Operating Loss and Tax Credit Carryforwards | ||
Net operating losses carryforwards | 185.9 | 184.5 |
Alternative minimum tax credit carryforwards | 4 | 6.7 |
Foreign Income Tax | ||
Operating Loss and Tax Credit Carryforwards | ||
Net operating losses carryforwards | $ 11.9 | $ 14 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Balance at beginning of the period | $ 16.4 | $ 15.1 | $ 15.9 |
Changes in tax positions of prior years, net | (0.3) | ||
Changes in tax positions of prior years, net | 2.1 | 2.1 | |
Reductions for lapse of statute of limitations | (0.2) | (0.8) | (0.5) |
Balance at the end | 18.3 | 16.4 | $ 15.1 |
Unrecognized tax benefits that, if recognized, would impact the effective rate | 18.3 | ||
Interest accrued related to unrecognized tax benefits | $ 0.1 | $ 0.1 |
PENSION AND POST-RETIREMENT P_3
PENSION AND POST-RETIREMENT PLANS - ASSET ALLOCATION (Details) - plan | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee benefit plans | ||
Number of single-employer defined benefit pension funded plans | 2 | |
Pension Benefits | ||
Employee benefit plans | ||
Target allocation (as a percent) | 100.00% | |
Asset allocations (as a percent) | 100.00% | 100.00% |
One year returns (losses) on plan assets (as a percent) | 12.00% | |
Three year returns (losses) on plan assets (as a percent) | 8.70% | |
Five year returns (losses) on plan assets (as a percent) | 9.80% | |
Long-term average return on plan assets since inception (as a percent) | 8.50% | |
Pension Benefits | Domestic equity securities | ||
Employee benefit plans | ||
Target allocation (as a percent) | 53.00% | |
Asset allocations (as a percent) | 60.00% | 59.00% |
Pension Benefits | International equity securities | ||
Employee benefit plans | ||
Target allocation (as a percent) | 15.00% | |
Asset allocations (as a percent) | 17.00% | 17.00% |
Pension Benefits | Debt securities | ||
Employee benefit plans | ||
Target allocation (as a percent) | 22.00% | |
Asset allocations (as a percent) | 17.00% | 17.00% |
Pension Benefits | Real estate | ||
Employee benefit plans | ||
Target allocation (as a percent) | 5.00% | |
Asset allocations (as a percent) | 5.00% | 6.00% |
Pension Benefits | Other and cash | ||
Employee benefit plans | ||
Target allocation (as a percent) | 5.00% | |
Asset allocations (as a percent) | 1.00% | 1.00% |
PENSION AND POST-RETIREMENT P_4
PENSION AND POST-RETIREMENT PLANS - FAIR VALUE (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension and Post-retirement Plans | |||
Total | $ 212.8 | $ 194.8 | $ 162.2 |
Fair Value Measurement | |||
Pension and Post-retirement Plans | |||
Total | 170.9 | 157.3 | |
Total plan assets | 212.8 | 194.8 | |
Fair Value Measurement | Cash | |||
Pension and Post-retirement Plans | |||
Total | 3.8 | 6.3 | |
Fair Value Measurement | U.S. large-cap | |||
Pension and Post-retirement Plans | |||
Total | 71.3 | 62.4 | |
Fair Value Measurement | U.S. mid- and small-cap | |||
Pension and Post-retirement Plans | |||
Total | 54.3 | 49.6 | |
Fair Value Measurement | International large-cap | |||
Pension and Post-retirement Plans | |||
Total | 7 | 6.6 | |
Fair Value Measurement | U.S. Treasuries | |||
Pension and Post-retirement Plans | |||
Total | 12 | 14.1 | |
Fair Value Measurement | Investment grade U.S. corporate bonds | |||
Pension and Post-retirement Plans | |||
Total | 22.5 | 18.2 | |
Fair Value Measurement | High-yield U.S. corporate bonds | |||
Pension and Post-retirement Plans | |||
Total | 0.1 | ||
Fair Value Measurement | Quoted Prices in Active Markets (Level 1) | |||
Pension and Post-retirement Plans | |||
Total | 68.9 | 63.9 | |
Fair Value Measurement | Quoted Prices in Active Markets (Level 1) | Cash | |||
Pension and Post-retirement Plans | |||
Total | 3.8 | 6.3 | |
Fair Value Measurement | Quoted Prices in Active Markets (Level 1) | U.S. large-cap | |||
Pension and Post-retirement Plans | |||
Total | 28.9 | 23.7 | |
Fair Value Measurement | Quoted Prices in Active Markets (Level 1) | U.S. mid- and small-cap | |||
Pension and Post-retirement Plans | |||
Total | 36.2 | 33.9 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | |||
Pension and Post-retirement Plans | |||
Total | 102 | 93.4 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | U.S. large-cap | |||
Pension and Post-retirement Plans | |||
Total | 42.4 | 38.7 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | U.S. mid- and small-cap | |||
Pension and Post-retirement Plans | |||
Total | 18.1 | 15.7 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | International large-cap | |||
Pension and Post-retirement Plans | |||
Total | 7 | 6.6 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | U.S. Treasuries | |||
Pension and Post-retirement Plans | |||
Total | 12 | 14.1 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | Investment grade U.S. corporate bonds | |||
Pension and Post-retirement Plans | |||
Total | 22.5 | 18.2 | |
Fair Value Measurement | Significant Observable Inputs (Level 2) | High-yield U.S. corporate bonds | |||
Pension and Post-retirement Plans | |||
Total | 0.1 | ||
Fair Value Measurement | Investment measured at NAV | |||
Pension and Post-retirement Plans | |||
Total | $ 41.9 | $ 37.5 |
PENSION AND POST-RETIREMENT P_5
PENSION AND POST-RETIREMENT PLANS - STATUS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 239.9 | $ 217.4 | |
Service cost | 5.1 | 4.7 | $ 4.4 |
Interest cost | 7.9 | 9.3 | 8.6 |
Actuarial (gain) loss | 23.9 | 22.2 | |
Benefits paid, net of subsidies received | (12.5) | (12.2) | |
Expenses paid | (1.2) | (1.5) | |
Benefit obligation at end of year | 263.1 | 239.9 | 217.4 |
Change in Plan Assets: | |||
Balance at the beginning of the period | 194.8 | 162.2 | |
Actual return on plan assets | 22.7 | 36.3 | |
Employer contribution | 9 | 10 | 0 |
Benefits paid, net of subsidies received | (12.5) | (12.2) | |
Expenses paid | (1.2) | (1.5) | |
Balance at the end of the period | 212.8 | 194.8 | 162.2 |
Funded Status and Recognized Liability | (50.3) | (45.1) | |
Post-retirement Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 26 | 22.2 | |
Service cost | 0.5 | 0.4 | 0.6 |
Interest cost | 0.8 | 0.9 | 1 |
Plan participants' contributions | 0.8 | 0.8 | |
Actuarial (gain) loss | 2.7 | 3.4 | |
Benefits paid, net of subsidies received | (1.7) | (1.7) | |
Benefit obligation at end of year | 29.1 | 26 | $ 22.2 |
Change in Plan Assets: | |||
Plan participants' contributions | 0.8 | 0.8 | |
Employer contribution | 0.9 | 0.9 | |
Benefits paid, net of subsidies received | (1.7) | (1.7) | |
Funded Status and Recognized Liability | (29.1) | (26) | |
Qualified Plan | Pension Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 238.3 | ||
Benefit obligation at end of year | 261.4 | 238.3 | |
Change in Plan Assets: | |||
Balance at the beginning of the period | 192.2 | ||
Balance at the end of the period | $ 210 | $ 192.2 |
PENSION AND POST-RETIREMENT P_6
PENSION AND POST-RETIREMENT PLANS - AMOUNTS INCLUDED IN FINANCIAL STATEMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit plans | |||
Current liabilities | $ (2.7) | $ (3.1) | |
Non-current liabilities, net | (82) | (73.4) | |
Pension Benefits | |||
Employee benefit plans | |||
Projected benefit obligations | 263.1 | 239.9 | $ 217.4 |
Fair value of plan assets at end of year | 212.8 | 194.8 | 162.2 |
Pension Benefits | Qualified Plan | |||
Employee benefit plans | |||
Non-current assets | 1 | 1 | |
Non-current liabilities, net | (51.3) | (46.1) | |
Total | (50.3) | (45.1) | |
Net loss, net of taxes | (64.2) | (56.2) | |
Prior service credit, net of taxes | 2.5 | 4.3 | |
Total | (61.7) | (51.9) | |
Projected benefit obligations | 261.4 | 238.3 | |
Accumulated benefit obligation | 260.9 | 237.9 | |
Fair value of plan assets at end of year | 210 | 192.2 | |
Pension Benefits | Nonqualified Plan | |||
Employee benefit plans | |||
Current liabilities | (1.7) | (2.1) | |
Non-current liabilities, net | (2.6) | (2.3) | |
Total | (4.3) | (4.4) | |
Net loss, net of taxes | (0.8) | (0.6) | |
Prior service credit, net of taxes | 0.1 | 0.2 | |
Total | (0.7) | (0.4) | |
Post-retirement Benefits | |||
Employee benefit plans | |||
Projected benefit obligations | $ 29.1 | 26 | $ 22.2 |
Amortization period of unrecognized gains and losses | 5 years | ||
Post-retirement Benefits | Qualified Plan | |||
Employee benefit plans | |||
Current liabilities | $ (1) | (1) | |
Non-current liabilities, net | (28.1) | (25) | |
Total | (29.1) | (26) | |
Net loss, net of taxes | (4.4) | (2.8) | |
Prior service credit, net of taxes | 16.6 | 19.1 | |
Total | $ 12.2 | $ 16.3 |
PENSION AND POST-RETIREMENT P_7
PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Net Periodic Benefit Cost (Benefit): | |||
Current liabilities | $ 2.7 | $ 3.1 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax: | |||
Amortization of net loss | 9.4 | (2.7) | $ (1.1) |
Amortization of prior service cost | $ 4.7 | $ 4.5 | 4.7 |
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans | |||
Discount rate used to determine obligation (as a percent) | 1.80% | 2.80% | |
Pension Benefits | |||
Components of Net Periodic Benefit Cost (Benefit): | |||
Service cost | $ 5.1 | $ 4.7 | 4.4 |
Interest cost | 7.9 | 9.3 | 8.6 |
Expected return on plan assets | (14) | (11.9) | (13.5) |
Amortization of net loss | 4.5 | 5.2 | 4.6 |
Amortization of prior service credit | (2.3) | (2.3) | (2.3) |
Net periodic benefit cost (benefit) | 1.2 | 5 | 1.8 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax: | |||
Net loss (gain) | 11.4 | (1.7) | 7.8 |
Amortization of net loss | (3.4) | (3.9) | (3.5) |
Amortization of prior service cost | 1.7 | 1.7 | 1.7 |
Total recognized in other comprehensive (income) loss | 9.7 | (3.9) | 6 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 10.9 | $ 1.1 | $ 7.8 |
Weighted Average Assumptions: | |||
Discount rate (as a percent) | 2.50% | 3.40% | 4.40% |
Expected return plan assets (as a percent) | 7.25% | 7.50% | 7.50% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Cash balance interest credit rate | 3.01% | ||
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans | |||
Total obligation | $ 263.1 | $ 239.9 | $ 217.4 |
Pension Benefits | Minimum | |||
Weighted Average Assumptions: | |||
Cash balance interest credit rate | 0.75% | 1.75% | |
Pension Benefits | Maximum | |||
Weighted Average Assumptions: | |||
Cash balance interest credit rate | 3.25% | 3.75% | |
Post-retirement Benefits | |||
Components of Net Periodic Benefit Cost (Benefit): | |||
Service cost | $ 0.5 | $ 0.4 | 0.6 |
Interest cost | 0.8 | 0.9 | 1 |
Amortization of net loss | 0.5 | (0.1) | 1.5 |
Amortization of prior service credit | (3.7) | (3.8) | (3.8) |
Net periodic benefit cost (benefit) | (1.9) | (2.6) | (0.7) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax: | |||
Net loss (gain) | 2 | 2.5 | (4.7) |
Amortization of net loss | (0.3) | 0.2 | (1.1) |
Amortization of prior service cost | 2.8 | 2.8 | 2.8 |
Total recognized in other comprehensive (income) loss | 4.5 | 5.5 | (3) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 2.6 | $ 2.9 | $ (3.7) |
Weighted Average Assumptions: | |||
Discount rate (as a percent) | 2.70% | 3.50% | 4.50% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.00% |
Initial health care cost trend rate, Pre-65 group (as a percent) | 5.30% | 5.70% | 6.00% |
Initial health care cost trend rate, Post-65 group (as a percent) | 5.40% | 5.90% | 6.30% |
Ultimate health care cost trend rate (as a percent) | 4.40% | 4.40% | 4.40% |
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans | |||
Total obligation | $ 29.1 | $ 26 | $ 22.2 |
Qualified Plan | Pension Benefits | |||
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans | |||
Total obligation | 261.4 | 238.3 | |
Amounts recognized in accumulated other comprehensive income for net loss, net of tax | (64.2) | (56.2) | |
Amount recognized as prior service credit, net of tax | 2.5 | 4.3 | |
Total | (61.7) | (51.9) | |
Qualified Plan | Post-retirement Benefits | |||
Components of Net Periodic Benefit Cost (Benefit): | |||
Current liabilities | 1 | 1 | |
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans | |||
Amounts recognized in accumulated other comprehensive income for net loss, net of tax | (4.4) | (2.8) | |
Amount recognized as prior service credit, net of tax | 16.6 | 19.1 | |
Total | 12.2 | 16.3 | |
Nonqualified Plan | Pension Benefits | |||
Components of Net Periodic Benefit Cost (Benefit): | |||
Current liabilities | 1.7 | 2.1 | |
Qualified Pension Plans, Non-qualified Pension Plans and Post-retirement Plans | |||
Amounts recognized in accumulated other comprehensive income for net loss, net of tax | (0.8) | (0.6) | |
Amount recognized as prior service credit, net of tax | 0.1 | 0.2 | |
Total | $ (0.7) | $ (0.4) |
PENSION AND POST-RETIREMENT P_8
PENSION AND POST-RETIREMENT PLANS - ESTIMATED BENEFIT PAYMENTS (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2021 | $ 14 |
2022 | 14.4 |
2023 | 14.6 |
2024 | 14.7 |
2025 | 14.9 |
2026-2030 | 76.2 |
Total remaining future undiscounted payments due | 148.8 |
Post-retirement Benefits | |
Estimated future benefit payments | |
2021 | 1 |
2022 | 1 |
2023 | 1 |
2024 | 1.1 |
2025 | 1.1 |
2026-2030 | 5.5 |
Total remaining future undiscounted payments due | 10.7 |
Nonqualified Plan | Pension Benefits | |
Estimated future benefit payments | |
2021 | 1.7 |
2023 | 2.2 |
2026-2030 | 0.6 |
Total remaining future undiscounted payments due | $ 4.5 |
PENSION AND POST-RETIREMENT P_9
PENSION AND POST-RETIREMENT PLANS - DEFINED CONTRIBUTION PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
401(K) plan | |||
Defined Contribution Plans | |||
Employer matching contribution (as a percent) | 3.00% | ||
Employer matching contribution expenses | $ 3 | $ 2.9 | $ 2.4 |
Profit sharing plan | |||
Defined Contribution Plans | |||
Profit sharing expense recorded | $ 2.2 | $ 0.5 | $ 1.4 |
PENSION AND POST-RETIREMENT _10
PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plans | |||
Estimated benefit plan withdrawal obligations | $ 260 | ||
Multiemployer Health and Benefit Plans | |||
Multiemployer Plans | |||
Contributions of Matson | 32.5 | $ 32.8 | $ 30 |
Multi-employer defined contribution pension plans | |||
Multiemployer Plans | |||
Contributions of Matson | $ 28.4 | 27.3 | 25.5 |
Multi-employer defined contribution pension plans | Orange Zone | |||
Multiemployer Plans | |||
Expected funding deficiency period | 6 years | ||
Multi-employer defined contribution pension plans | Minimum | Green Zone | |||
Multiemployer Plans | |||
Funded status of multiemployer plan (as a percent) | 80.00% | ||
Multi-employer defined contribution pension plans | Maximum | Red Zone | |||
Multiemployer Plans | |||
Funded status of multiemployer plan (as a percent) | 65.00% | ||
Multi-employer defined contribution pension plans | Maximum | Yellow Zone | |||
Multiemployer Plans | |||
Funded status of multiemployer plan (as a percent) | 80.00% | ||
Multi-employer defined contribution pension plans | Maximum | Orange Zone | |||
Multiemployer Plans | |||
Funded status of multiemployer plan (as a percent) | 80.00% | ||
Multi-employer defined contribution pension plans | American Radio Association Pension Fund | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | $ 1 | 1.1 | 1 |
Multi-employer defined contribution pension plans | Hawaii Terminals Multiemployer Pension Plan | Yellow Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 5.8 | 5.7 | |
Multi-employer defined contribution pension plans | Hawaii Terminals Multiemployer Pension Plan | Orange Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 5.7 | ||
Multi-employer defined contribution pension plans | Hawaii Stevedoring Multiemployer Retirement Plan | Yellow Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 4.4 | 4.3 | |
Multi-employer defined contribution pension plans | Hawaii Stevedoring Multiemployer Retirement Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 4.6 | ||
Multi-employer defined contribution pension plans | Master Mates And Pilots Pension Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 3.2 | 3.4 | 3 |
Multi-employer defined contribution pension plans | Masters, Mates and Pilots Adjustable Pension Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 1.8 | 1.9 | 1.7 |
Multi-employer defined contribution pension plans | M E B A Pension Trust - Defined Benefit Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 4.1 | 4.3 | 4 |
Multi-employer defined contribution pension plans | OCU Pension Trust Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 0.2 | 0.2 | 0.2 |
Multi-employer defined contribution pension plans | M F O W Supplementary Pension Plan | Yellow Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 0.1 | ||
Multi-employer defined contribution pension plans | M F O W Supplementary Pension Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 0.1 | ||
Multi-employer defined contribution pension plans | SIU Pacific District Pension Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 1.3 | 1.5 | 1.2 |
Multi-employer defined contribution pension plans | Alaska Teamster - Employer Pension Plan | Red Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 3.3 | 1.9 | 1.9 |
Multi-employer defined contribution pension plans | All Alaska Longshore Pension Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 1.3 | 1.2 | 1 |
Multi-employer defined contribution pension plans | Western Conference of Teamsters Pension Plan | Green Zone | |||
Multiemployer Plans | |||
Contributions of Matson | 1.6 | 1.5 | 1.4 |
Multi-employer defined contribution pension plans | O P E I U Local 153 Pension Plan | Red Zone | |||
Multiemployer Plans | |||
Contributions of Matson | $ 0.1 | $ 0.1 | $ 0.1 |
PENSION AND POST-RETIREMENT _11
PENSION AND POST-RETIREMENT PLANS - MULTI-EMPLOYER DEFINED CONTRIBUTION PLANS (Details) - Multi-employer defined contribution pension plans $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Contribution Plans | |||
Number of Multiemployer Plans | plan | 6 | ||
Employer contributions | $ | $ 5.1 | $ 5.3 | $ 4.8 |
MULTI-EMPLOYER WITHDRAWAL LIA_3
MULTI-EMPLOYER WITHDRAWAL LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Multiemployer withdrawal liability | ||
Quarterly payments to ILA-PRSSA over an estimated period | $ 1 | |
Estimated future benefit payments | ||
Current portion of withdrawal liability | (10.6) | $ (10.8) |
Long-term portion of withdrawal liability | 52.8 | 54.8 |
Horizon | ILA-PRSSA Pension Fund | ||
Estimated future benefit payments | ||
2021 | 4.1 | |
2022 | 4.1 | |
2023 | 4.1 | |
2024 | 4.1 | |
2025 | 4.1 | |
Thereafter | 59.7 | |
Total remaining future undiscounted payments due | 80.2 | |
Less: amount representing interest | (23.3) | |
Present value of remaining withdrawal liability | 56.9 | |
Current portion of withdrawal liability | (4.1) | |
Long-term portion of withdrawal liability | 52.8 | |
Horizon | Local 153 Fund of the OPEIU | ||
Estimated future benefit payments | ||
Present value of remaining withdrawal liability | $ 6.5 | $ 6.7 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in accumulated other comprehensive income (loss) by component, net of taxes | |||
Balance at the beginning of the period | $ 805.7 | $ 755.3 | $ 677.2 |
Amortization of prior service cost | (4.7) | (4.5) | (4.7) |
Amortization of net loss (gain) | (9.4) | 2.7 | 1.1 |
Other adjustments | 0.2 | (0.6) | |
Balance at the end of the period | 961.2 | 805.7 | 755.3 |
Comprehensive Income (Loss): | |||
Tax benefit (expense) on other comprehensive income (loss) | 4.2 | (0.3) | 0.2 |
Pensions | |||
Changes in accumulated other comprehensive income (loss) by component, net of taxes | |||
Balance at the beginning of the period | (51.9) | (55.8) | |
Amortization of prior service cost | (1.8) | (1.7) | |
Amortization of net loss (gain) | (8) | 5.6 | |
Balance at the end of the period | (61.7) | (51.9) | (55.8) |
Post Retirement | |||
Changes in accumulated other comprehensive income (loss) by component, net of taxes | |||
Balance at the beginning of the period | 16.3 | 21.7 | |
Amortization of prior service cost | (2.8) | (2.6) | |
Amortization of net loss (gain) | (1.3) | (2.8) | |
Balance at the end of the period | 12.2 | 16.3 | 21.7 |
Non-Qualified Plans | |||
Changes in accumulated other comprehensive income (loss) by component, net of taxes | |||
Balance at the beginning of the period | (0.4) | (0.1) | |
Amortization of prior service cost | (0.1) | (0.1) | |
Amortization of net loss (gain) | (0.1) | (0.2) | |
Balance at the end of the period | (0.6) | (0.4) | (0.1) |
Other | |||
Changes in accumulated other comprehensive income (loss) by component, net of taxes | |||
Balance at the beginning of the period | (0.9) | (0.3) | |
Amortization of prior service cost | (0.1) | ||
Amortization of net loss (gain) | 0.1 | ||
Foreign currency exchange | 0.5 | ||
Other adjustments | (0.3) | (0.6) | |
Balance at the end of the period | (0.7) | (0.9) | (0.3) |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income (loss) by component, net of taxes | |||
Balance at the beginning of the period | (36.9) | (34.5) | (24.9) |
Amortization of prior service cost | (4.7) | (4.5) | |
Amortization of net loss (gain) | (9.4) | 2.7 | |
Foreign currency exchange | 0.5 | ||
Other adjustments | (0.3) | (0.6) | |
Balance at the end of the period | $ (50.8) | $ (36.9) | $ (34.5) |
EARNINGS PER-SHARE (Details)
EARNINGS PER-SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income | |||||||||||
Net Income, Basic | $ 193.1 | $ 82.7 | $ 109 | ||||||||
Net Income, Diluted | $ 193.1 | $ 82.7 | $ 109 | ||||||||
Weighted Average Common Shares | |||||||||||
Basic | 43.1 | 42.8 | 42.7 | ||||||||
Effect of Dilutive Securities (in shares) | 0.4 | 0.5 | 0.3 | ||||||||
Diluted (in shares) | 43.5 | 43.3 | 43 | ||||||||
Per Common Share Amount | |||||||||||
Net income, Basic (in dollars per share) | $ 1.99 | $ 1.65 | $ 0.76 | $ 0.09 | $ 0.36 | $ 0.84 | $ 0.43 | $ 0.29 | $ 4.48 | $ 1.93 | $ 2.55 |
Effect of Dilutive Securities (in dollars per shares) | (0.04) | (0.02) | (0.02) | ||||||||
Net income, Diluted (in dollars per share) | $ 1.96 | $ 1.63 | $ 0.76 | $ 0.09 | $ 0.36 | $ 0.84 | $ 0.43 | $ 0.29 | $ 4.44 | $ 1.91 | $ 2.53 |
SHARE-BASED AWARDS - SUMMARY (D
SHARE-BASED AWARDS - SUMMARY (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | |
Share-based expense (net of estimated forfeitures) | |||
Total share-based expense | $ 18,800 | $ 11,300 | $ 12,100 |
Intrinsic value of options exercised | 5,800 | 500 | 500 |
Tax benefit realized upon option exercise | 3,300 | 2,000 | 2,700 |
Fair value of stock vested | 13,100 | $ 8,200 | $ 10,800 |
Stock options | |||
Share-based expense (net of estimated forfeitures) | |||
Unrecognized compensation cost | $ 0 | ||
Weighted average exercise price | |||
Outstanding, weighted average exercise price, beginning of period (in dollars per share) | $ / shares | $ 22.30 | ||
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 22.31 | ||
Outstanding, weighted average exercise price, end of period (in dollars per share) | $ / shares | 20.84 | $ 22.30 | |
Exercisable, weighted average exercise price, end of period (in dollars per share) | $ / shares | $ 20.84 | ||
Outstanding, weighted average contractual life, end of period | 1 month 6 days | ||
Exercisable, weighted average contractual life, end of period | 1 month 6 days | ||
Outstanding, aggregate intrinsic value, end of period (in dollars) | $ 35 | ||
Exercisable, aggregate intrinsic value, end of period (in dollars) | 35 | ||
Non-vested restricted stock units and performance-based equity awards | |||
Share-based expense (net of estimated forfeitures) | |||
Unrecognized compensation cost | $ 17,700 | ||
Unrecognized compensation cost, weighted average period for recognition | 1 year 8 months 12 days | ||
Restricted Stock Units | |||
Share-based compensation | |||
Options granted, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 38.68 | ||
2016 Plan | |||
Share-based compensation | |||
Common stock initially available for future issuance (in shares) | shares | 2,500 | ||
Additional shares authorized for issuance | shares | 0 | ||
Number of separate incentive compensation programs | plan | 4 | ||
Number of share based compensation plans within the entity's incentive compensation programs | plan | 3 | ||
2016 Plan | Discretionary Grant Program | |||
Share-based compensation | |||
Minimum exercise price as a percentage of fair market value of common stock | 100.00% | ||
Exercisable period | 3 years | ||
Expiration Term | 10 years | ||
2016 Plan | Time-Based Restricted Stock Units | Stock Issuance Program | |||
Share-based compensation | |||
Vesting period of awards granted | 3 years | ||
2016 Plan | Time-Based Restricted Stock Units | Automatic Grant Program | |||
Share-based compensation | |||
Vesting period of awards granted | 1 year | ||
2016 Plan | Performance-Based Restricted Stock Units | Stock Issuance Program | |||
Share-based compensation | |||
Vesting period of awards granted | 3 years | ||
2007 Plan | Stock options | |||
Activity in the entity's stock option plans | |||
Outstanding, beginning of period (in shares) | shares | 173 | ||
Exercised (in shares) | shares | (172) | ||
Outstanding, end of period (in shares) | shares | 1 | 173 | |
Exercisable, end of period (in shares) | shares | 1 |
SHARE-BASED AWARDS - RESTRICTED
SHARE-BASED AWARDS - RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Non-vested restricted stock unit activity | |
Outstanding, beginning of period (in shares) | 778 |
Granted (in shares) | 341 |
Settlement of Performance Shares (in shares) | 38 |
Vested (in shares) | (344) |
Cancelled (in shares) | (21) |
Outstanding, end of period (in shares) | 792 |
Weighted Average Grant-Date Fair Value | |
Outstanding, weighted average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 33.39 |
Granted, weighted average grant-date fair value (in dollars per share) | $ / shares | 38.68 |
Settlement of Performance Shares, weighted average grant-date fair value (in dollars per share) | $ / shares | 36.55 |
Vested, weighted average grant-date fair value (in dollars per share) | $ / shares | 34.86 |
Cancelled, weighted average grant-date fair value (in dollars per shares) | $ / shares | 34.59 |
Outstanding, weighted average grant-date fair value, end of period (in dollars per shares) | $ / shares | $ 35.14 |
2007 Plan | |
Non-vested restricted stock unit activity | |
Outstanding, beginning of period (in shares) | 8 |
Vested (in shares) | (5) |
Outstanding, end of period (in shares) | 3 |
2016 Plan | |
Non-vested restricted stock unit activity | |
Outstanding, beginning of period (in shares) | 770 |
Granted (in shares) | 341 |
Settlement of Performance Shares (in shares) | 38 |
Vested (in shares) | (339) |
Cancelled (in shares) | (21) |
Outstanding, end of period (in shares) | 789 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | |||
Restricted Cash | $ 5.3 | $ 7.2 | $ 4.9 |
Carrying value | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents | 14.4 | 21.2 | |
Restricted Cash | 5.3 | 7.2 | |
Variable rate debt | 71.8 | 379.1 | |
Fixed rate debt | 688.3 | 579.3 | |
Fair Value Measurement | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents | 14.4 | 21.2 | |
Restricted Cash | 5.3 | 7.2 | |
Variable rate debt | 71.8 | 379.1 | |
Fixed rate debt | 686.7 | 585.9 | |
Quoted Prices in Active Markets (Level 1) | Fair Value Measurement | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents | 14.4 | 21.2 | |
Restricted Cash | 5.3 | 7.2 | |
Significant Observable Inputs (Level 2) | Fair Value Measurement | |||
Cash and Cash Equivalents | |||
Variable rate debt | 71.8 | 379.1 | |
Fixed rate debt | $ 686.7 | $ 585.9 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commitments, Guarantees and Contingencies | |
Standby letters of credit | $ 8.1 |
Vendor and other obligations | 69.1 |
U.S. Customs bond | |
Commitments, Guarantees and Contingencies | |
Bonds | $ 33.2 |
QUARTERLY INFORMATION (Unaudi_3
QUARTERLY INFORMATION (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly information by segments | |||||||||||
Total Operating Revenue | $ 700.1 | $ 645.2 | $ 524.1 | $ 513.9 | $ 540.7 | $ 572.1 | $ 557.9 | $ 532.4 | $ 2,383.3 | $ 2,203.1 | $ 2,222.8 |
Operating Income | 117.7 | 98.4 | 51.2 | 13 | 25.4 | 55.2 | 31 | 17.5 | 280.3 | 129.1 | 163.8 |
Interest expense, net | (4.9) | (5.7) | (8.2) | (8.6) | (5.6) | (6.2) | (6.1) | (4.6) | (27.4) | (22.5) | (18.7) |
Other income (expense), net | 1.6 | 2.4 | 1.5 | 0.6 | 0.3 | (0.5) | 0.8 | 0.6 | 6.1 | 1.2 | 2.6 |
Income before Income Taxes | 114.4 | 95.1 | 44.5 | 5 | 20.1 | 48.5 | 25.7 | 13.5 | 259 | 107.8 | 147.7 |
Income tax expense | (28.8) | (24.2) | (11.7) | (1.2) | (4.5) | (12.3) | (7.3) | (1) | (65.9) | (25.1) | (38.7) |
Net Income | $ 85.6 | $ 70.9 | $ 32.8 | $ 3.8 | $ 15.6 | $ 36.2 | $ 18.4 | 12.5 | $ 193.1 | 82.7 | 109 |
Income taxes - Discrete adjustments related to the Tax Act (1) | $ 2.9 | $ (2.9) | $ 2.9 | ||||||||
Net Income, Earnings Per Share: | |||||||||||
Basic Earnings Per-Share: (in dollars per share) | $ 1.99 | $ 1.65 | $ 0.76 | $ 0.09 | $ 0.36 | $ 0.84 | $ 0.43 | $ 0.29 | $ 4.48 | $ 1.93 | $ 2.55 |
Diluted Earnings Per-Share: (in dollars per share) | $ 1.96 | $ 1.63 | $ 0.76 | $ 0.09 | $ 0.36 | $ 0.84 | $ 0.43 | $ 0.29 | $ 4.44 | $ 1.91 | $ 2.53 |
Ocean Transportation | |||||||||||
Quarterly information by segments | |||||||||||
Total Operating Revenue | $ 543.9 | $ 498.3 | $ 410.8 | $ 400.9 | $ 416.1 | $ 437.2 | $ 415.4 | $ 397.9 | |||
Operating Income | 108.1 | 86.5 | 42.3 | 7.9 | 17.8 | 43.9 | 19.7 | 9.4 | |||
Logistics | |||||||||||
Quarterly information by segments | |||||||||||
Total Operating Revenue | 156.2 | 146.9 | 113.3 | 113 | 124.6 | 134.9 | 142.5 | 134.5 | |||
Operating Income | $ 9.6 | $ 11.9 | $ 8.9 | $ 5.1 | $ 7.6 | $ 11.3 | $ 11.3 | $ 8.1 |