Matson (MATX) 10-Q4 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2022shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Entity File Number	001-34187
Entity Registrant Name	Matson, Inc.
Entity Incorporation, State or Country Code	HI
Entity Tax Identification Number	99-0032630
Entity Address, Address Line One	1411 Sand Island Parkway
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96819
City Area Code	808
Local Phone Number	848-1211
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	MATX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	40,541,412
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000003453
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Revenue:
Total Operating Revenue	$ 1,165.5	$ 711.8
Costs and Expenses:
Operating costs	(703.7)	(544.7)
Income from SSAT	34	9.2
Selling, general and administrative	(63.2)	(56.1)
Total Costs and Expenses	(732.9)	(591.6)
Operating Income	432.6	120.2
Interest expense	(4.8)	(7.3)
Other income (expense), net	2	1.4
Income before Income Taxes	429.8	114.3
Income taxes	(90.6)	(27.1)
Net Income	339.2	87.2
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income	339.2	87.2
Other Comprehensive Income (Loss):
Amortization of prior service cost	(0.9)	(1.1)
Amortization of net loss	0.8	1.2
Other adjustments	0.3	(0.2)
Total Other Comprehensive Income (Loss)	0.2	(0.1)
Comprehensive Income	$ 339.4	$ 87.1
Basic Earnings Per Share (in dollars per share)	$ 8.29	$ 2.01
Diluted Earnings Per Share (in dollars per share)	$ 8.23	$ 1.99
Weighted Average Number of Shares Outstanding:
Basic (in shares)	40.9	43.4
Diluted (in shares)	41.2	43.8
Ocean. Transportation.
Operating Revenue:
Total Operating Revenue	$ 943.9	$ 560.5
Logistics.
Operating Revenue:
Total Operating Revenue	$ 221.6	$ 151.3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 392.8	$ 282.4
Accounts receivable, net of allowance for credit losses of $11.4 million and $10.1 million, respectively	371.4	343.7
Prepaid expenses and other assets	110.6	78.4
Total current assets	874.8	704.5
Long-term Assets:
Investment in SSAT	92.7	58.7
Property and equipment, net	1,894.6	1,878.3
Operating lease right of use assets	506.7	434.6
Goodwill	327.8	327.8
Intangible assets, net	178.5	181.1
Deferred dry-docking costs, net	64.7	68.7
Other long-term assets	37.7	39.4
Total long-term assets	3,102.7	2,988.6
Total Assets	3,977.5	3,693.1
Current Liabilities:
Current portion of debt	65	65
Accounts payable and accruals	301.6	308.4
Operating lease liabilities	158.5	137.6
Other liabilities	85.1	101.4
Total current liabilities	610.2	612.4
Long-term Liabilities:
Long-term debt, net of deferred loan fees	535.7	549.7
Long-term operating lease liabilities	359.5	307.4
Deferred income taxes	431.1	425.2
Other long-term liabilities	130.3	131
Total long-term liabilities	1,456.6	1,413.3
Commitments and Contingencies (see Note 13)
Shareholders' Equity:
Common stock	30.4	30.7
Additional paid in capital	296.2	314.1
Accumulated other comprehensive loss, net	(30.7)	(30.9)
Retained earnings	1,614.8	1,353.5
Total shareholders' equity	1,910.7	1,667.4
Total Liabilities and Shareholders' Equity	$ 3,977.5	$ 3,693.1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for credit loss	$ 11.4	$ 10.1

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows From Operating Activities:
Net income	$ 339.2	$ 87.2
Reconciling adjustments:
Depreciation and amortization	35.6	34.5
Amortization of operating lease right of use assets	36.2	23.9
Deferred income taxes	6.6	6.5
Share-based compensation expense	4.7	4.8
Income from SSAT	(34)	(9.2)
Distribution from SSAT		10.5
Other	(0.2)	(1.1)
Changes in assets and liabilities:
Accounts receivable, net	(27.7)	(7.7)
Deferred dry-docking payments	(8.6)	(9.5)
Deferred dry-docking amortization	6.7	6.6
Prepaid expenses and other assets	(31.5)	(4.8)
Accounts payable, accruals and other liabilities	(16.2)	5.6
Operating lease liabilities	(35.4)	(22.5)
Other long-term liabilities	(1.5)	(1.9)
Net cash provided by operating activities	273.9	122.9
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(9.4)
Other capital expenditures	(37.4)	(38.5)
Proceeds from disposal of property and equipment	0.4	1.4
Cash deposits into Capital Construction Fund	(10.7)
Withdrawals from Capital Construction Fund	10.7
Net cash used in investing activities	(46.4)	(37.1)
Cash Flows From Financing Activities:
Repayments of debt	(14.4)	(14.4)
Proceeds from revolving credit facility		108.1
Repayments of revolving credit facility		(154.9)
Payment of financing costs		(3)
Dividends paid	(12.9)	(10.1)
Repurchase of Matson common stock	(70.4)
Tax withholding related to net share settlements of restricted stock units	(19.4)	(14.1)
Net cash used in financing activities	(117.1)	(88.4)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	110.4	(2.6)
Cash, Cash Equivalents and Restricted Cash, Beginning of the Period	287.7	19.7
Cash, Cash Equivalents and Restricted Cash, End of the Period	398.1	17.1
Reconciliation of Cash, Cash Equivalents and Restricted Cash, End of the Period:
Cash and Cash Equivalents	392.8	11.8
Restricted Cash	5.3	5.3
Total Cash, Cash Equivalents and Restricted Cash, End of the Period	398.1	17.1
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest	4.5	5.7
Income tax payments and (refunds), net	103.1	(0.4)
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	$ 7.1	$ 8.8

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at the beginning of the period at Dec. 31, 2020	$ 32.4	$ 321.5	$ (50.8)	$ 658.1	$ 961.2
Balance (in shares) at Dec. 31, 2020	43.2
Increase (Decrease) in Shareholders' Equity
Net income				87.2	87.2
Other comprehensive income (loss), net of tax			(0.1)		(0.1)
Share-based compensation		4.8			4.8
Shares issued, net of shares withheld for employee taxes	$ 0.2	(14.3)			(14.1)
Shares issued, net of shares withheld for employee taxes (in shares)	0.2
Dividends				(10.1)	(10.1)
Balance at the end of the period at Mar. 31, 2021	$ 32.6	312	(50.9)	735.2	1,028.9
Balance (in shares) at Mar. 31, 2021	43.4
Balance at the beginning of the period at Dec. 31, 2021	$ 30.7	314.1	(30.9)	1,353.5	1,667.4
Balance (in shares) at Dec. 31, 2021	41
Increase (Decrease) in Shareholders' Equity
Net income				339.2	339.2
Other comprehensive income (loss), net of tax			0.2		0.2
Share-based compensation		4.7			4.7
Shares issued, net of shares withheld for employee taxes	$ 0.2	(19.5)			(19.3)
Shares issued, net of shares withheld for employee taxes (in shares)	0.2
Shares repurchased	$ (0.5)	(3.1)		(65)	$ (68.6)
Shares repurchased (in shares)	(0.7)				(0.7)
Dividends				(12.9)	$ (12.9)
Balance at the end of the period at Mar. 31, 2022	$ 30.4	$ 296.2	$ (30.7)	$ 1,614.8	$ 1,910.7
Balance (in shares) at Mar. 31, 2022	40.5

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	Mar. 03, 2022	Mar. 31, 2022	Mar. 31, 2021
Condensed Consolidated Statements of Shareholders' Equity
Dividends (per share)	$ 0.30	$ 0.30	$ 0.23

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS	3 Months Ended
DESCRIPTION OF THE BUSINESS	Mar. 31, 2022
DESCRIPTION OF THE BUSINESS
DESCRIPTION OF THE BUSINESS	1. DESCRIPTION OF THE BUSINESS Matson, Inc., a holding company incorporated in the State of Hawaii, and its subsidiaries (“Matson” or the “Company”), is a leading provider of ocean transportation and logistics services. The Company consists of Ocean Transportation: Matson’s Ocean Transportation business is conducted through Matson Navigation Company, Inc. (“MatNav”), a wholly-owned subsidiary of Matson, Inc. Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia. MatNav also operates premium, expedited services primarily from China to Long Beach, California, and provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor, Alaska to Asia. In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav and other ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in the Alaska locations of Anchorage, Kodiak and Dutch Harbor. Matson has a 35 percent ownership interest in SSA Terminals, LLC, a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc. (“SSAT”). SSAT currently provides terminal and stevedoring services to various carriers at facilities dedicated for MatNav’s use. Matson records its share of income from SSAT in costs and expenses in the Condensed Consolidated Statements of Income and Comprehensive Income, and within the Ocean Transportation segment due to the nature of SSAT’s operations. Logistics: Matson’s Logistics business is conducted through Matson Logistics, Inc. (“Matson Logistics”), a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and is an asset-light business that provides a variety of logistics services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services); (ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively, “Freight Forwarding” services); (iii) warehousing, trans-loading, value-added packaging and distribution services (collectively, “Warehousing” services); and (iv) supply chain management, non-vessel operating common carrier (“NVOCC”) freight forwarding and other services.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2022
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The Condensed Consolidated Financial Statements are unaudited, and include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. The Company accounts for its investment in SSAT using the equity method of accounting. Due to the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim periods, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete consolidated financial statements. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022. Fiscal Period: The period end for Matson covered by this report is March 31, 2022. The period end for MatNav and its subsidiaries covered by this report occurred on April 1, 2022. Significant Accounting Policies: The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Use of Estimates: The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for doubtful accounts and note receivables; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; income from SSAT; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions. Recognition of Revenues and Expenses: Revenue in the Company’s Condensed Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity for the periods presented: Three Months Ended March 31, Ocean Transportation (in millions) (1) 2022 2021 Ocean Transportation services $ 936.7 $ 554.2 Terminal and other related services 3.7 2.8 Fuel sales 1.9 1.4 Vessel management and related services 1.6 2.1 Total $ 943.9 $ 560.5 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and selling, general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. Three Months Ended March 31, Logistics (in millions) (1) 2022 2021 Transportation Brokerage and Freight Forwarding services $ 194.9 $ 135.3 Warehousing and distribution services 12.1 9.2 Supply chain management and other services 14.6 6.8 Total $ 221.6 $ 151.3 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 6.5 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenue, and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. Capital Construction Fund: 31, 2021. million of eligible accounts receivable was assigned to the CCF. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets. Cash on deposit in the CCF is held in a money market account and classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the three months ended March 31, 2022, the Company deposited million from the CCF. The balance of cash on deposit at March 31, 2022 and December 31, 2021 was nominal. Investment in SSAT: Condensed income statement information for SSAT for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, (In millions) 2022 2021 Operating revenue $ 430.4 $ 306.1 Operating costs and expenses (306.9) (273.1) Operating income 123.5 33.0 Net Income (1) $ 100.1 $ 28.9 Company Share of SSAT’s Net Income (2) $ 34.0 $ 9.2 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations. The Company’s investment in SSAT was $92.7 million and $58.7 million at March 31, 2022 and December 31, 2021, respectively. Dividends: The Company’s first quarter 2022 cash dividend of $0.30 3, 2022. On April 28, 2022, the Company’s Board of Directors declared a cash dividend of $0.30 per share payable on June 2, 2022 to shareholders of record on May 12, 2022. Repurchase of Shares: million. On January 27, 2022 the Company announced an increase of three million shares in its existing share repurchase program. As of March 31, 2022, the maximum number of remaining shares that may be repurchased under the Company’s stock repurchase program was approximately 2.8 million shares.

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS	3 Months Ended
REPORTABLE SEGMENTS	Mar. 31, 2022
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS	3. REPORTABLE SEGMENTS Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s chief operating decision maker is its Chief Executive Officer. The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s SSAT segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business. The Company’s Ocean Transportation segment provides ocean transportation services to the Logistics segment, and the Logistics segment provides logistics services to the Ocean Transportation segment in certain transactions. Accordingly, inter-segment revenue of $73.2 million and $33.7 million for the three months ended March 31, 2022 and 2021, respectively, have been eliminated from operating revenues in the table below. Reportable segment financial information for the three months ended March 31, 2022 and 2021 are as follows: Three Months Ended March 31, (In millions) 2022 2021 Operating Revenue: Ocean Transportation (1) $ 943.9 $ 560.5 Logistics (2) 221.6 151.3 Total Operating Revenue $ 1,165.5 $ 711.8 Operating Income: Ocean Transportation (3) $ 416.2 $ 114.1 Logistics 16.4 6.1 Total Operating Income 432.6 120.2 Interest expense, net (4.8) (7.3) Other income (expense), net 2.0 1.4 Income before Income Taxes 429.8 114.3 Income taxes (90.6) (27.1) Net Income $ 339.2 $ 87.2 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $21.8 million and $15.1 million for the three months ended March 31, 2022 and 2021, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $51.4 million and $18.6 million for the three months ended March 31, 2022 and 2021, respectively. (3) Ocean Transportation segment information includes $34.0 million and $9.2 million of equity in income from the Company’s equity investment in SSAT for the three months ended March 31, 2022 and 2021, respectively.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
PROPERTY AND EQUIPMENT	Mar. 31, 2022
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Property and equipment as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, December 31, (In millions) 2022 2021 Cost: Vessels $ 2,245.2 $ 2,243.8 Containers and equipment 697.3 680.9 Terminal facilities and other property 131.4 128.3 Vessel construction in progress 24.2 14.9 Other construction in progress 36.3 19.5 Total Property and Equipment 3,134.4 3,087.4 Less: Accumulated Depreciation (1,239.8) (1,209.1) Total Property and Equipment, net $ 1,894.6 $ 1,878.3

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES	3 Months Ended
GOODWILL AND INTANGIBLES	Mar. 31, 2022
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES	5. GOODWILL AND INTANGIBLES Goodwill by segment as of March 31, 2022 and December 31, 2021 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8 Intangible assets as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, December 31, (In millions) 2022 2021 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 90.1 90.1 Total 230.7 230.7 Less: Accumulated Amortization (79.5) (76.9) Total Customer Relationships, net 151.2 153.8 Trade name – Logistics 27.3 27.3 Total Intangible Assets, net $ 178.5 $ 181.1 The Company evaluates its goodwill and intangible assets for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount. The Company has reporting units within the Ocean Transportation and Logistics reportable segments. The Company considered the general economic and market conditions due to COVID-19 and its impact on the performance of each of the Company’s reporting units. Based on the Company’s assessment of its market capitalization, future forecasts and the amount of excess of fair value over the carrying value of the reporting units in the 2021 annual impairment tests, the Company concluded that an impairment triggering event did not occur during the three months ended March 31, 2022. The Company will monitor events and changes in circumstances that could negatively impact the key assumptions used in determining the fair value, including the amount and timing of estimated future cash flows generated by the reporting units, long-term growth and discount rates, comparable company market valuations, and industry and economic trends. It is possible that future changes in such circumstances, including future changes in the assumptions and estimates used in assessing the fair value of the reporting unit, could require the Company to record a non-cash impairment charge.

DEBT

DEBT	3 Months Ended
DEBT	Mar. 31, 2022
DEBT
DEBT	6. DEBT As of March 31, 2022 and December 31, 2021, the Company’s debt consisted of the following: March 31, December 31, (In millions) 2022 2021 Private Placement Term Loans: 3.66 %, payable through 2023 $ 13.7 $ 13.7 4.16 %, payable through 2027 28.8 28.8 3.37 %, payable through 2027 69.2 69.2 3.14 %, payable through 2031 142.0 151.2 4.31 %, payable through 2032 25.4 25.4 Title XI Debt: 5.34 %, payable through 2028 14.3 15.4 5.27 %, payable through 2029 16.5 17.6 1.22 %, payable through 2043 174.1 174.1 1.35 %, payable through 2044 130.7 133.6 Total Debt 614.7 629.0 Less: Current portion (65.0) (65.0) Total Long-term Debt 549.7 564.0 Less: Deferred loan fees (14.0) (14.3) Total Long-term Debt, net of deferred loan fees $ 535.7 $ 549.7 Except as described below, the Company’s debt is described in Note 8 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Revolving Credit Facility: The Company’s revolving credit facility has committed available borrowing of up to 31, 2026. As of March 31, 2022, the Company had million of remaining borrowing availability under the revolving credit facility. 31, 2022. There were Debt Security and Guarantees: All of the debt of the Company and MatNav, including related guarantees, as of March 31, 2022 was unsecured, except for the Title XI debt. Debt Maturities: As of March 31, 2022, debt maturities during the next five years and thereafter are as follows: As of Year (in millions) March 31, 2022 Remainder of 2022 $ 50.6 2023 60.4 2024 51.7 2025 51.7 2026 51.7 Thereafter 348.6 Total Debt $ 614.7

LEASES

LEASES	3 Months Ended
LEASES	Mar. 31, 2022
LEASES
LEASES	7. LEASES The Company’s leases are described in Note 9 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, (In millions) 2022 2021 Operating lease cost $ 38.4 $ 25.3 Short-term lease cost 0.1 2.0 Variable lease cost 0.2 0.2 Total lease cost $ 38.7 $ 27.5 Maturities of operating lease liabilities at March 31, 2022 are as follows: As of Year (in millions) March 31, 2022 Remainder of 2022 $ 126.4 2023 144.5 2024 124.2 2025 73.5 2026 31.1 Thereafter 59.0 Total lease payments 558.7 Less: Interest (40.7) Present value of operating lease liabilities 518.0 Less: Short-term portion (158.5) Long-term operating lease liabilities $ 359.5

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Mar. 31, 2022
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2022 consisted of the following: Accumulated Post- Non- Other Pension Retirement Qualified Comprehensive (In millions) Benefits Benefits Plans Other Income (Loss) Balance at December 31, 2021 $ (39.1) $ 10.1 $ (0.7) $ (1.2) $ (30.9) Amortization of prior service cost (0.2) (0.7) — — (0.9) Amortization of net loss 0.6 0.2 — — 0.8 Foreign currency exchange — — — 0.3 0.3 Balance at March 31, 2022 $ (38.7) $ 9.6 $ (0.7) $ (0.9) $ (30.7) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2021 consisted of the following: Accumulated Post- Non- Other Pension Retirement Qualified Comprehensive (In millions) Benefits Benefits Plans Other Income (Loss) Balance at December 31, 2020 $ (61.7) $ 12.2 $ (0.6) $ (0.7) $ (50.8) Amortization of prior service cost (0.4) (0.7) — — (1.1) Amortization of net loss 0.9 0.2 0.1 — 1.2 Foreign currency exchange — — — (0.2) (0.2) Balance at March 31, 2021 $ (61.2) $ 11.7 $ (0.5) $ (0.9) $ (50.9)

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Mar. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	9. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. The Company uses Level 1 inputs for the fair values of its cash, cash equivalents 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 March 31, 2022 and December 31, 2021 are as follows: Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) March 31, 2022 Fair Value Measurements at March 31, 2022 Cash and cash equivalents $ 392.8 $ 392.8 $ 392.8 $ — $ — Restricted cash $ 5.3 $ 5.3 $ 5.3 $ — $ — Fixed rate debt $ 614.7 $ 565.3 $ — $ 565.3 $ — (In millions) December 31, 2021 Fair Value Measurements at December 31, 2021 Cash and cash equivalents $ 282.4 $ 282.4 $ 282.4 $ — $ — Restricted cash $ 5.3 $ 5.3 $ 5.3 $ — $ — Fixed rate debt $ 629.0 $ 615.1 $ — $ 615.1 $ —

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Mar. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	10. EARNINGS PER SHARE Basic earnings per share is determined by dividing net income by the weighted average common shares outstanding during the period. The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested restricted stock units. The computation of weighted average common shares outstanding excluded a nominal amount of anti-dilutive non-qualified stock options for each period ended March 31, 2022 and 2021. The computations for basic and diluted earnings per share for the three months ended March 31, 2022 and 2021 are as follows: Year Ended March 31, 2022 Year Ended March 31, 2021 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per share amounts) Income Shares Amount Income Shares Amount Basic: $ 339.2 40.9 $ 8.29 $ 87.2 43.4 $ 2.01 Effect of Dilutive Securities: — 0.3 (0.06) — 0.4 (0.02) Diluted: $ 339.2 41.2 $ 8.23 $ 87.2 43.8 $ 1.99

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
SHARE-BASED COMPENSATION	Mar. 31, 2022
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	11. SHARE-BASED COMPENSATION During the three months ended March 31, 2022, the Company granted approximately 168,100 in total of time-based restricted stock units and performance-based shares to certain of its employees at a weighted average grant date fair value of $101.38 per share. Total share-based compensation cost recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of selling, general and administrative expenses was $4.7 million and $4.8 million for the three months ended March 31, 2022 and 2021, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was years. Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

PENSION AND POST-RETIREMENT PLA

PENSION AND POST-RETIREMENT PLANS	3 Months Ended
PENSION AND POST-RETIREMENT PLANS	Mar. 31, 2022
PENSION AND POST-RETIREMENT PLANS
PENSION AND POST-RETIREMENT PLANS	12. PENSION AND POST-RETIREMENT PLANS The Company’s pension and post-retirement plans are described in Note 11 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 . Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income (Loss) for the qualified pension plans and the post-retirement benefit plans for the three months ended March 31, 2022 and 2021 consisted of the following: Pension Benefits Post-retirement Benefits Three Months Ended March 31, Three Months Ended March 31, (In millions) 2022 2021 2022 2021 Components of net periodic benefit cost (benefit): Service cost $ 1.2 $ 1.2 $ 0.2 $ 0.2 Interest cost 1.7 1.5 0.2 0.2 Expected return on plan assets (3.9) (3.6) — — Amortization of net loss 0.8 1.3 0.2 0.3 Amortization of prior service credit (0.3) (0.6) (0.9) (0.9) Net periodic benefit cost (benefit) $ (0.5) $ (0.2) $ (0.3) $ (0.2)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES Environmental Matters: On November 10, 2021, the California Air Resources Board (“CARB”) issued a Notice of Violation (the “NOV”) to Matson for alleged violations of the Airborne Toxic Control Measure for Auxiliary Diesel Engines Operated on Ocean-Going Vessels At-Berth in a California Port pursuant to California Code of Regulations, title 17, section 93118.3. CARB regulations require that a company’s fleet plug into shore power for at least 80 percent of visits at California ports and reduce auxiliary engine power generation by at least 80 percent. The NOV alleges that Matson’s fleet did not meet the 80 percent thresholds during visits to the Port of Long Beach in 2020. The violations were alleged to have been incurred by chartered vessels in the CLX+ service. These chartered vessels were not outfitted with alternative maritime power (“AMP”) capability which would have allowed them to plug into the shore power grid and shut down the vessel diesel generators when at dock. The Company has presented mitigating factors for consideration in settlement discussions with CARB, as well as plans to achieve compliance in 2022. Although potential penalties for 2020, 2021 and 2022 violations could, in the aggregate, reasonably be expected to exceed $1 million, they are not expected to be material to the Company’s financial condition, results of operations, or cash flows. Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2022
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation: The Condensed Consolidated Financial Statements are unaudited, and include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. The Company accounts for its investment in SSAT using the equity method of accounting. Due to the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim periods, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete consolidated financial statements. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022.
Fiscal Period	Fiscal Period: The period end for Matson covered by this report is March 31, 2022. The period end for MatNav and its subsidiaries covered by this report occurred on April 1, 2022.
Significant Accounting Policies	Significant Accounting Policies: The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Use of Estimates	Use of Estimates: The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: impairment of investments; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for doubtful accounts and note receivables; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; income from SSAT; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions.
Recognition of Revenues and Expenses	Recognition of Revenues and Expenses: Revenue in the Company’s Condensed Consolidated Financial Statements is presented net of elimination of intercompany transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity for the periods presented: Three Months Ended March 31, Ocean Transportation (in millions) (1) 2022 2021 Ocean Transportation services $ 936.7 $ 554.2 Terminal and other related services 3.7 2.8 Fuel sales 1.9 1.4 Vessel management and related services 1.6 2.1 Total $ 943.9 $ 560.5 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies. ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and selling, general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Related costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ◾ Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. Three Months Ended March 31, Logistics (in millions) (1) 2022 2021 Transportation Brokerage and Freight Forwarding services $ 194.9 $ 135.3 Warehousing and distribution services 12.1 9.2 Supply chain management and other services 14.6 6.8 Total $ 221.6 $ 151.3 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 6.5 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenue, and related costs are recognized in proportion to the services performed. The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in selling, general and administration expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.
Capital Construction Fund	Capital Construction Fund: 31, 2021. million of eligible accounts receivable was assigned to the CCF. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets. Cash on deposit in the CCF is held in a money market account and classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels. During the three months ended March 31, 2022, the Company deposited million from the CCF. The balance of cash on deposit at March 31, 2022 and December 31, 2021 was nominal.
Investment in SSAT	Investment in SSAT: Condensed income statement information for SSAT for the three months ended March 31, 2022 and 2021 consisted of the following: Three Months Ended March 31, (In millions) 2022 2021 Operating revenue $ 430.4 $ 306.1 Operating costs and expenses (306.9) (273.1) Operating income 123.5 33.0 Net Income (1) $ 100.1 $ 28.9 Company Share of SSAT’s Net Income (2) $ 34.0 $ 9.2 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations. The Company’s investment in SSAT was $92.7 million and $58.7 million at March 31, 2022 and December 31, 2021, respectively.
Dividends	Dividends: The Company’s first quarter 2022 cash dividend of $0.30 3, 2022. On April 28, 2022, the Company’s Board of Directors declared a cash dividend of $0.30 per share payable on June 2, 2022 to shareholders of record on May 12, 2022.
Repurchase of Shares	Repurchase of Shares: million. On January 27, 2022 the Company announced an increase of three million shares in its existing share repurchase program. As of March 31, 2022, the maximum number of remaining shares that may be repurchased under the Company’s stock repurchase program was approximately 2.8 million shares.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Tables)	Mar. 31, 2022
Schedule of condensed income statement information for SSAT	Three Months Ended March 31, (In millions) 2022 2021 Operating revenue $ 430.4 $ 306.1 Operating costs and expenses (306.9) (273.1) Operating income 123.5 33.0 Net Income (1) $ 100.1 $ 28.9 Company Share of SSAT’s Net Income (2) $ 34.0 $ 9.2 (1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations.
Ocean Transportation
Schedule of principal revenue generating activities by segment	Three Months Ended March 31, Ocean Transportation (in millions) (1) 2022 2021 Ocean Transportation services $ 936.7 $ 554.2 Terminal and other related services 3.7 2.8 Fuel sales 1.9 1.4 Vessel management and related services 1.6 2.1 Total $ 943.9 $ 560.5 (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	Three Months Ended March 31, Logistics (in millions) (1) 2022 2021 Transportation Brokerage and Freight Forwarding services $ 194.9 $ 135.3 Warehousing and distribution services 12.1 9.2 Supply chain management and other services 14.6 6.8 Total $ 221.6 $ 151.3 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for approximately 6.5 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies. ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing and distribution services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other warehousing and distribution services revenue and related costs are recognized in proportion to the services performed. ◾ Supply chain management and other services revenue, and related costs are recognized in proportion to the services performed.

REPORTABLE SEGMENTS (Tables)

REPORTABLE SEGMENTS (Tables)	3 Months Ended
REPORTABLE SEGMENTS (Tables)	Mar. 31, 2022
REPORTABLE SEGMENTS
Schedule of reportable segment information	Three Months Ended March 31, (In millions) 2022 2021 Operating Revenue: Ocean Transportation (1) $ 943.9 $ 560.5 Logistics (2) 221.6 151.3 Total Operating Revenue $ 1,165.5 $ 711.8 Operating Income: Ocean Transportation (3) $ 416.2 $ 114.1 Logistics 16.4 6.1 Total Operating Income 432.6 120.2 Interest expense, net (4.8) (7.3) Other income (expense), net 2.0 1.4 Income before Income Taxes 429.8 114.3 Income taxes (90.6) (27.1) Net Income $ 339.2 $ 87.2 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $21.8 million and $15.1 million for the three months ended March 31, 2022 and 2021, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $51.4 million and $18.6 million for the three months ended March 31, 2022 and 2021, respectively. (3) Ocean Transportation segment information includes $34.0 million and $9.2 million of equity in income from the Company’s equity investment in SSAT for the three months ended March 31, 2022 and 2021, respectively.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Mar. 31, 2022
PROPERTY AND EQUIPMENT
Schedule of property and equipment	March 31, December 31, (In millions) 2022 2021 Cost: Vessels $ 2,245.2 $ 2,243.8 Containers and equipment 697.3 680.9 Terminal facilities and other property 131.4 128.3 Vessel construction in progress 24.2 14.9 Other construction in progress 36.3 19.5 Total Property and Equipment 3,134.4 3,087.4 Less: Accumulated Depreciation (1,239.8) (1,209.1) Total Property and Equipment, net $ 1,894.6 $ 1,878.3

GOODWILL AND INTANGIBLES (Table

GOODWILL AND INTANGIBLES (Tables)	3 Months Ended
GOODWILL AND INTANGIBLES (Tables)	Mar. 31, 2022
GOODWILL AND INTANGIBLES
Schedule of goodwill	Goodwill by segment as of March 31, 2022 and December 31, 2021 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8
Schedule of intangible assets	March 31, December 31, (In millions) 2022 2021 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 90.1 90.1 Total 230.7 230.7 Less: Accumulated Amortization (79.5) (76.9) Total Customer Relationships, net 151.2 153.8 Trade name – Logistics 27.3 27.3 Total Intangible Assets, net $ 178.5 $ 181.1

DEBT (Tables)

DEBT (Tables)	3 Months Ended
DEBT (Tables)	Mar. 31, 2022
DEBT
Schedule of debt	March 31, December 31, (In millions) 2022 2021 Private Placement Term Loans: 3.66 %, payable through 2023 $ 13.7 $ 13.7 4.16 %, payable through 2027 28.8 28.8 3.37 %, payable through 2027 69.2 69.2 3.14 %, payable through 2031 142.0 151.2 4.31 %, payable through 2032 25.4 25.4 Title XI Debt: 5.34 %, payable through 2028 14.3 15.4 5.27 %, payable through 2029 16.5 17.6 1.22 %, payable through 2043 174.1 174.1 1.35 %, payable through 2044 130.7 133.6 Total Debt 614.7 629.0 Less: Current portion (65.0) (65.0) Total Long-term Debt 549.7 564.0 Less: Deferred loan fees (14.0) (14.3) Total Long-term Debt, net of deferred loan fees $ 535.7 $ 549.7
Schedule of maturities of debt	As of Year (in millions) March 31, 2022 Remainder of 2022 $ 50.6 2023 60.4 2024 51.7 2025 51.7 2026 51.7 Thereafter 348.6 Total Debt $ 614.7

LEASES (Tables)

LEASES (Tables)	3 Months Ended
LEASES (Tables)	Mar. 31, 2022
LEASES
Summary of lease cost	Three Months Ended March 31, (In millions) 2022 2021 Operating lease cost $ 38.4 $ 25.3 Short-term lease cost 0.1 2.0 Variable lease cost 0.2 0.2 Total lease cost $ 38.7 $ 27.5
Summary of maturities of operating lease liabilities at March 31, 2022	As of Year (in millions) March 31, 2022 Remainder of 2022 $ 126.4 2023 144.5 2024 124.2 2025 73.5 2026 31.1 Thereafter 59.0 Total lease payments 558.7 Less: Interest (40.7) Present value of operating lease liabilities 518.0 Less: Short-term portion (158.5) Long-term operating lease liabilities $ 359.5

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Mar. 31, 2022
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax	Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2022 consisted of the following: Accumulated Post- Non- Other Pension Retirement Qualified Comprehensive (In millions) Benefits Benefits Plans Other Income (Loss) Balance at December 31, 2021 $ (39.1) $ 10.1 $ (0.7) $ (1.2) $ (30.9) Amortization of prior service cost (0.2) (0.7) — — (0.9) Amortization of net loss 0.6 0.2 — — 0.8 Foreign currency exchange — — — 0.3 0.3 Balance at March 31, 2022 $ (38.7) $ 9.6 $ (0.7) $ (0.9) $ (30.7) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2021 consisted of the following: Accumulated Post- Non- Other Pension Retirement Qualified Comprehensive (In millions) Benefits Benefits Plans Other Income (Loss) Balance at December 31, 2020 $ (61.7) $ 12.2 $ (0.6) $ (0.7) $ (50.8) Amortization of prior service cost (0.4) (0.7) — — (1.1) Amortization of net loss 0.9 0.2 0.1 — 1.2 Foreign currency exchange — — — (0.2) (0.2) Balance at March 31, 2021 $ (61.2) $ 11.7 $ (0.5) $ (0.9) $ (50.9)

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Mar. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Schedule of fair value measurement	Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) March 31, 2022 Fair Value Measurements at March 31, 2022 Cash and cash equivalents $ 392.8 $ 392.8 $ 392.8 $ — $ — Restricted cash $ 5.3 $ 5.3 $ 5.3 $ — $ — Fixed rate debt $ 614.7 $ 565.3 $ — $ 565.3 $ — (In millions) December 31, 2021 Fair Value Measurements at December 31, 2021 Cash and cash equivalents $ 282.4 $ 282.4 $ 282.4 $ — $ — Restricted cash $ 5.3 $ 5.3 $ 5.3 $ — $ — Fixed rate debt $ 629.0 $ 615.1 $ — $ 615.1 $ —

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Mar. 31, 2022
EARNINGS PER SHARE
Schedule of basic and diluted earnings per share	Year Ended March 31, 2022 Year Ended March 31, 2021 Weighted Per Weighted Per Average Common Average Common Net Common Share Net Common Share (In millions, except per share amounts) Income Shares Amount Income Shares Amount Basic: $ 339.2 40.9 $ 8.29 $ 87.2 43.4 $ 2.01 Effect of Dilutive Securities: — 0.3 (0.06) — 0.4 (0.02) Diluted: $ 339.2 41.2 $ 8.23 $ 87.2 43.8 $ 1.99

PENSION AND POST-RETIREMENT P_2

PENSION AND POST-RETIREMENT PLANS (Tables)	3 Months Ended
PENSION AND POST-RETIREMENT PLANS (Tables)	Mar. 31, 2022
PENSION AND POST-RETIREMENT PLANS
Components of net periodic benefit cost (benefit)	Pension Benefits Post-retirement Benefits Three Months Ended March 31, Three Months Ended March 31, (In millions) 2022 2021 2022 2021 Components of net periodic benefit cost (benefit): Service cost $ 1.2 $ 1.2 $ 0.2 $ 0.2 Interest cost 1.7 1.5 0.2 0.2 Expected return on plan assets (3.9) (3.6) — — Amortization of net loss 0.8 1.3 0.2 0.3 Amortization of prior service credit (0.3) (0.6) (0.9) (0.9) Net periodic benefit cost (benefit) $ (0.5) $ (0.2) $ (0.3) $ (0.2)

DESCRIPTION OF THE BUSINESS (De

DESCRIPTION OF THE BUSINESS (Details)	Mar. 31, 2022segment	Mar. 31, 2022segmentfacility
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2	2
Ocean Transportation \| SSAT
DESCRIPTION OF THE BUSINESS
Ownership interest in SSAT (as a percent)	35.00%	35.00%
Number of terminal facilities on which SSAT provides terminal and stevedoring services on the U.S. West Coast		8
MatNav \| SSAT
DESCRIPTION OF THE BUSINESS
Number of terminal facilities on which SSAT provides terminal and stevedoring services on the U.S. West Coast		3

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total	$ 1,165.5	$ 711.8
Ocean Transportation
Total	943.9	560.5
Logistics
Total	221.6	151.3
Ocean. Transportation.
Ocean Transportation services	936.7	554.2
Terminal and other related services	3.7	2.8
Fuel sales	1.9	1.4
Vessel management and related services	1.6	2.1
Total	$ 943.9	$ 560.5
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency	3.00%	3.00%
Logistics.
Transportation Brokerage and Freight Forwarding Services	$ 194.9	$ 135.3
Warehousing and distribution services	12.1	9.2
Supply chain management and other services	14.6	6.8
Total	$ 221.6	$ 151.3
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency	6.50%	6.50%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Accounts receivable, net	$ 371.4	$ 343.7
Cash Deposits Into CCF	10.7
Withdrawals from CCF	10.7
Eligible Accounts Receivable Assigned to CCF
Accounts receivable, net	9.8	$ 9.8
Cash Deposits Into CCF	10.7
Withdrawals from CCF	$ 10.7

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN SSAT (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Investments in affiliates
Investment in Terminal Joint Venture	$ 92.7		$ 58.7
Financial information for equity method investment
Company Share of Net Income	34	$ 9.2
Ocean Transportation
Financial information for equity method investment
Company Share of Net Income	34	9.2
SSAT
Investments in affiliates
Investment in Terminal Joint Venture	92.7		$ 58.7
Financial information for equity method investment
Operating revenue	430.4	306.1
Operating costs and expenses	(306.9)	(273.1)
Operating Income	123.5	33
Net Income	100.1	28.9
Company Share of Net Income	$ 34	$ 9.2

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - DIVIDENDS AND REPURCHASE OF SHARES (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Apr. 28, 2022	Mar. 03, 2022	Jan. 27, 2022	Mar. 31, 2022	Mar. 31, 2021
Dividends
Dividends (per share)		$ 0.30		$ 0.30	$ 0.23
Cash dividends declared per share (in dollars per share)	$ 0.30
Shares repurchased (in shares)				0.7
Shares repurchased				$ 68.6
Increase in number of shares for repurchase program (in shares)			3
Maximum number of shares remaining to be repurchased				2.8

REPORTABLE SEGMENTS (Details)

REPORTABLE SEGMENTS (Details) $ in Millions	Mar. 31, 2022USD ($)segment	Mar. 31, 2022USD ($)segment	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Segment results
Number of segments \| segment	2	2
Total Operating Revenue		$ 1,165.5	$ 711.8
Operating Income		432.6	120.2
Interest expense, net		(4.8)	(7.3)
Other income (expense), net		2	1.4
Income before Income Taxes		429.8	114.3
Income taxes		(90.6)	(27.1)
Net Income		339.2	87.2
Deferred dry-docking amortization		6.7	6.6
Assets	$ 3,977.5	3,977.5		$ 3,693.1
Income from SSAT		34	9.2
SSAT
Segment results
Income from SSAT		34	9.2
Intersegment Eliminations
Segment results
Total Operating Revenue		73.2	33.7
Ocean Transportation
Segment results
Total Operating Revenue		943.9	560.5
Operating Income		416.2	114.1
Income from SSAT		34	9.2
Ocean Transportation \| Intersegment Eliminations
Segment results
Total Operating Revenue		21.8	15.1
Logistics
Segment results
Total Operating Revenue		221.6	151.3
Operating Income		16.4	6.1
Logistics \| Intersegment Eliminations
Segment results
Total Operating Revenue		$ 51.4	$ 18.6

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Property and equipment
Property and Equipment	$ 3,134.4	$ 3,087.4
Less: Accumulated Depreciation	(1,239.8)	(1,209.1)
Property and equipment, net	1,894.6	1,878.3
Vessels
Property and equipment
Property and Equipment	2,245.2	2,243.8
Containers and equipment
Property and equipment
Property and Equipment	697.3	680.9
Terminal facilities and other property
Property and equipment
Property and Equipment	131.4	128.3
Vessel construction in progress
Property and equipment
Property and Equipment	24.2	14.9
Other construction in progress
Property and equipment
Property and Equipment	$ 36.3	$ 19.5

GOODWILL AND INTANGIBLES - CHAN

GOODWILL AND INTANGIBLES - CHANGES IN GOODWILL (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 327.8	$ 327.8
Ocean Transportation
Goodwill [Line Items]
Goodwill	222.6
Logistics
Goodwill [Line Items]
Goodwill	$ 105.2

GOODWILL AND INTANGIBLES - INTA

GOODWILL AND INTANGIBLES - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Intangible assets
Total Intangible Assets, net	$ 178.5	$ 181.1
Trade Names
Intangible assets
Indefinite-Lived intangible asset	27.3	27.3
Customer Relationships
Intangible assets
Total	230.7	230.7
Less: Accumulated Amortization	(79.5)	(76.9)
Total	151.2	153.8
Ocean Transportation \| Customer Relationships
Intangible assets
Total	140.6	140.6
Logistics \| Customer Relationships
Intangible assets
Total	$ 90.1	$ 90.1

DEBT - SUMMARY (Details)

DEBT - SUMMARY (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt
Total Debt	$ 614.7	$ 629
Less: Current portion	(65)	(65)
Total Long-term Debt	549.7	564
Less: Deferred loan fees	(14)	(14.3)
Total Long-term Debt, net of deferred loan fees	535.7	549.7
3.66 %, payable through 2023
Debt
Total Debt	$ 13.7	13.7
Interest rate (as a percent)	3.66%
4.16 %, payable through 2027
Debt
Total Debt	$ 28.8	28.8
Interest rate (as a percent)	4.16%
3.37 %, payable through 2027
Debt
Total Debt	$ 69.2	69.2
Interest rate (as a percent)	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 142	151.2
Interest rate (as a percent)	3.14%
4.31 %, payable through 2032
Debt
Total Debt	$ 25.4	25.4
Interest rate (as a percent)	4.31%
5.34 %, payable through 2028
Debt
Total Debt	$ 14.3	15.4
Interest rate (as a percent)	5.34%
5.27 %, payable through 2029
Debt
Total Debt	$ 16.5	17.6
Interest rate (as a percent)	5.27%
1.22 %, payable through 2043
Debt
Total Debt	$ 174.1	174.1
Interest rate (as a percent)	1.22%
1.35 %, payable through 2044
Debt
Total Debt	$ 130.7	$ 133.6
Interest rate (as a percent)	1.35%
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility	$ 650

DEBT - REVOLVING CREDIT FACILIT

DEBT - REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility	$ 650
Funds available under the revolving credit facility	642
Used portion of revolving credit facility	0	$ 0
Standby commercial letters of credit
Debt
Used portion of revolving credit facility	$ 8

DEBT - MATURITIES (Details)

DEBT - MATURITIES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt maturities
Remainder of 2022	$ 50.6
2023	60.4
2024	51.7
2025	51.7
2026	51.7
Thereafter	348.6
Total Debt	$ 614.7	$ 629

LEASES - COMPONENTS OF LEASE CO

LEASES - COMPONENTS OF LEASE COST (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Lease Cost
Operating lease cost	$ 38.4	$ 25.3
Short-term lease cost	0.1	2
Variable lease cost	0.2	0.2
Total lease cost	$ 38.7	$ 27.5

LEASES - MATURITIES OF OPERATIN

LEASES - MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Maturities of operating lease liabilities
Remainder of 2022	$ 126.4
2023	144.5
2024	124.2
2025	73.5
2026	31.1
Thereafter	59
Total lease payments	558.7
Less: Interest	(40.7)
Present value of operating lease liabilities	518
Less: Short-term portion	(158.5)	$ (137.6)
Long-term operating lease liabilities	$ 359.5	$ 307.4

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	$ 1,667.4	$ 961.2
Amortization of prior service cost	(0.9)	(1.1)
Amortization of net loss	0.8	1.2
Other adjustments	0.3	(0.2)
Balance at the end of the period	1,910.7	1,028.9
Pensions
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(39.1)	(61.7)
Amortization of prior service cost	(0.2)	(0.4)
Amortization of net loss	0.6	0.9
Balance at the end of the period	(38.7)	(61.2)
Post Retirement
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	10.1	12.2
Amortization of prior service cost	(0.7)	(0.7)
Amortization of net loss	0.2	0.2
Balance at the end of the period	9.6	11.7
Non-Qualified Plans
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(0.7)	(0.6)
Amortization of net loss		0.1
Balance at the end of the period	(0.7)	(0.5)
Other
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(1.2)	(0.7)
Foreign currency exchange	0.3	(0.2)
Balance at the end of the period	(0.9)	(0.9)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(30.9)	(50.8)
Amortization of prior service cost	(0.9)	(1.1)
Amortization of net loss	0.8	1.2
Foreign currency exchange	0.3	(0.2)
Balance at the end of the period	$ (30.7)	$ (50.9)

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Fair value of financial instruments
Restricted Cash	$ 5.3		$ 5.3
Carrying value
Fair value of financial instruments
Cash and cash equivalents	392.8	$ 282.4
Restricted Cash	5.3	5.3
Fixed rate debt	614.7	629
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	392.8	282.4
Restricted Cash	5.3	5.3
Fixed rate debt	565.3	615.1
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	392.8	282.4
Restricted Cash	5.3	5.3
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Fair value of financial instruments
Fixed rate debt	$ 565.3	$ 615.1

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net Income
Net Income, Basic	$ 339.2	$ 87.2
Net Income, Diluted	$ 339.2	$ 87.2
Weighted Average Common Shares
Basic (in shares)	40.9	43.4
Effect of Dilutive Securities (in shares)	0.3	0.4
Diluted (in shares)	41.2	43.8
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 8.29	$ 2.01
Effect of Dilutive Securities (in dollars per shares)	(0.06)	(0.02)
Net income, Diluted (in dollars per share)	$ 8.23	$ 1.99

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Time Based And Performance Based Shares [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based compensation
Shares granted	168,100
Weighted-average grant date fair value (in dollars per share)	$ 101.38
Total unrecognized compensation cost	$ 33.1
Unrecognized compensation cost over weighted-average period to be recognized	2 years 3 months 18 days
Selling, general and administrative expenses
Share-based compensation
Total stock-based compensation cost	$ 4.7	$ 4.8

PENSION AND POST-RETIREMENT P_3

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Amortization of net loss (gain)	$ (0.8)	$ (1.2)
Amortization of prior service credit	0.9	1.1
Pension Benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	1.2	1.2
Interest cost	1.7	1.5
Expected return on plan assets	(3.9)	(3.6)
Amortization of net loss	0.8	1.3
Amortization of prior service credit	(0.3)	(0.6)
Net periodic benefit cost (benefit)	(0.5)	(0.2)
Post-retirement benefits
Components of Net Periodic Benefit Cost (Benefit):
Service cost	0.2	0.2
Interest cost	0.2	0.2
Amortization of net loss	0.2	0.3
Amortization of prior service credit	(0.9)	(0.9)
Net periodic benefit cost (benefit)	$ (0.3)	$ (0.2)