Matson (MATX) 10-Q31 Oct 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
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	34,934,880
Entity Central Index Key	0000003453
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating Revenue:
Total Operating Revenue	$ 827.5	$ 1,114.8	$ 2,305.7	$ 3,541.4
Costs and Expenses:
Operating costs	(624.1)	(738.4)	(1,826.3)	(2,170.5)
Income (Loss) from SSAT	1.3	23.4	(1.9)	82.1
Selling, general and administrative	(72.6)	(64.5)	(210)	(192)
Total Costs and Expenses	(695.4)	(779.5)	(2,038.2)	(2,280.4)
Operating Income	132.1	335.3	267.5	1,261
Interest income	9.3	1.3	26.2	1.3
Interest expense	(2.4)	(5)	(9.8)	(14.3)
Other income (expense), net	1.2	2.5	4.8	6.3
Income before Taxes	140.2	334.1	288.7	1,254.3
Income taxes	(20.3)	(68.1)	(54)	(268.4)
Net Income	119.9	266	234.7	985.9
Other Comprehensive Income (Loss), Net of Income Taxes:
Net Income (Loss)	119.9	266	234.7	985.9
Other Comprehensive Income (Loss):
Net change in pension and post-retirement liabilities	(0.8)	(0.7)	(2.5)	0.3
Other adjustments	(0.6)	(1.9)	0.1	(3.5)
Total Other Comprehensive Income (Loss), Net of Income Taxes	(1.4)	(2.6)	(2.4)	(3.2)
Comprehensive Income	$ 118.5	$ 263.4	$ 232.3	$ 982.7
Basic Earnings Per Share (in dollars per share)	$ 3.42	$ 6.95	$ 6.59	$ 24.83
Diluted Earnings Per Share (in dollars per share)	$ 3.40	$ 6.89	$ 6.56	$ 24.65
Weighted Average Number of Shares Outstanding:
Basic (in shares)	35.1	38.3	35.6	39.7
Diluted (in shares)	35.3	38.6	35.8	40
Ocean. Transportation.
Operating Revenue:
Total Operating Revenue	$ 669.4	$ 918.5	$ 1,837.3	$ 2,911.6
Logistics.
Operating Revenue:
Total Operating Revenue	$ 158.1	$ 196.3	$ 468.4	$ 629.8

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 156.5	$ 249.8
Accounts receivable, net of allowance for credit losses of $11.4 million and $13.0 million, respectively	305.2	268.5
Prepaid expenses and other assets	174.1	241.3
Total current assets	635.8	759.6
Long-term Assets:
Investment in SSAT	81.4	81.2
Property and equipment, net	2,058.5	1,962.5
Operating lease right of use assets	306.2	396.9
Goodwill	327.8	327.8
Intangible assets, net	180.8	174.9
Capital Construction Fund	591.6	518.2
Deferred dry-docking costs, net	56.7	55.3
Other long-term assets	54	53.6
Total long-term assets	3,657	3,570.4
Total Assets	4,292.8	4,330
Current Liabilities:
Current portion of debt	39.7	76.9
Accounts payable and accruals	293.8	255.6
Operating lease liabilities	127.7	143.6
Other liabilities	109.4	105.5
Total current liabilities	570.6	581.6
Long-term Liabilities:
Long-term debt, net of deferred loan fees	398.7	427.7
Long-term operating lease liabilities	186.1	262.5
Deferred income taxes	639.3	646.5
Other long-term liabilities	107.8	114.8
Total long-term liabilities	1,331.9	1,451.5
Commitments and Contingencies (see Note 13)
Shareholders' Equity:
Common stock	26.2	27.2
Additional paid in capital	289.1	290.4
Accumulated other comprehensive loss, net	(9.3)	(6.9)
Retained earnings	2,084.3	1,986.2
Total shareholders' equity	2,390.3	2,296.9
Total Liabilities and Shareholders' Equity	$ 4,292.8	$ 4,330

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for credit loss	$ 11.4	$ 13

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows From Operating Activities:
Net income	$ 234.7	$ 985.9
Reconciling adjustments:
Depreciation and amortization	108.1	105.6
Amortization of operating lease right of use assets	108.2	113.9
Deferred income taxes	(9.3)	146.3
Share-based compensation expense	17.6	15.5
Loss (income) from SSAT	1.9	(82.1)
Distributions from SSAT		40.3
Other	(1.7)	(0.2)
Changes in assets and liabilities:
Accounts receivable, net	(37.1)	13.9
Deferred dry-docking payments	(17.3)	(16.7)
Deferred dry-docking amortization	18.6	18.6
Prepaid expenses and other assets	65.8	(110.2)
Accounts payable, accruals and other liabilities	34.4	(5)
Operating lease liabilities	(109.9)	(113.8)
Other long-term liabilities	(14.9)	(9.5)
Net cash provided by operating activities	399.1	1,102.5
Cash Flows From Investing Activities:
Capitalized vessel construction expenditures	(52.1)	(11.9)
Other capital expenditures	(135.4)	(113.4)
Proceeds from disposal of property and equipment	0.1	0.4
Payment for intangible asset acquisition	(12.4)	(3)
Cash deposits and interest into the Capital Construction Fund	(120.8)	(579.7)
Withdrawals from Capital Construction Fund	49.9	14.7
Net cash used in investing activities	(270.7)	(692.9)
Cash Flows From Financing Activities:
Repayments of debt	(67.2)	(97.2)
Dividends paid	(33.8)	(36.9)
Repurchase of Matson common stock	(108.2)	(296.9)
Tax withholding related to net share settlements of restricted stock units	(12.5)	(19.6)
Net cash used in financing activities	(221.7)	(450.6)
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(93.3)	(41)
Cash, Cash Equivalents and Restricted Cash, Beginning of the Period	253.7	287.7
Cash, Cash Equivalents and Restricted Cash, End of the Period	160.4	246.7
Reconciliation of Cash, Cash Equivalents, and Restricted Cash, at End of the Period:
Cash and Cash Equivalents	156.5	242.8
Restricted Cash	3.9	3.9
Total Cash, Cash Equivalents and Restricted Cash, End of the Period	160.4	246.7
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest (including debt prepaid fees)	9.6	13.6
Income tax payments (refunds), net	(5.3)	212.4
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities	7.8	3.9
Non-cash payment for intangible asset acquisition	$ 4.1	$ 2.2

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, 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)
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
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					985.9
Other comprehensive income (loss), net of tax					(3.2)
Balance at the end of the period at Sep. 30, 2022	$ 28.3	290.4	(34.1)	2,014	2,298.6
Balance (in shares) at Sep. 30, 2022	37.8
Balance at the beginning 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
Increase (Decrease) in Shareholders' Equity
Net income				380.7	380.7
Other comprehensive income (loss), net of tax			(0.8)		(0.8)
Share-based compensation		5.7			5.7
Shares issued, net of shares withheld for employee taxes		(0.2)			(0.2)
Shares issued, net of shares withheld for employee taxes (in shares)	0.1
Shares repurchased	$ (1.2)	(7)		(129.9)	(138.1)
Shares repurchased (in shares)	(1.6)
Dividends				(24.4)	(24.4)
Balance at the end of the period at Jun. 30, 2022	$ 29.2	294.7	(31.5)	1,841.2	2,133.6
Balance (in shares) at Jun. 30, 2022	39
Increase (Decrease) in Shareholders' Equity
Net income				266	266
Other comprehensive income (loss), net of tax			(2.6)		(2.6)
Share-based compensation		5.1			5.1
Shares repurchased	$ (0.9)	(9.4)		(77.7)	(88)
Shares repurchased (in shares)	(1.2)
Equity interest in SSAT				(15.5)	(15.5)
Balance at the end of the period at Sep. 30, 2022	$ 28.3	290.4	(34.1)	2,014	2,298.6
Balance (in shares) at Sep. 30, 2022	37.8
Balance at the beginning of the period at Dec. 31, 2022	$ 27.2	290.4	(6.9)	1,986.2	2,296.9
Balance (in shares) at Dec. 31, 2022	36.3
Increase (Decrease) in Shareholders' Equity
Net income				34	34
Other comprehensive income (loss), net of tax			0.6		0.6
Share-based compensation		4.6			4.6
Shares issued, net of shares withheld for employee taxes	$ 0.2	(12.6)			(12.4)
Shares issued, net of shares withheld for employee taxes (in shares)	0.3
Shares repurchased	$ (0.5)	(2.7)		(38.9)	(42.1)
Shares repurchased (in shares)	(0.7)
Dividends				(11.3)	(11.3)
Balance at the end of the period at Mar. 31, 2023	$ 26.9	279.7	(6.3)	1,970	2,270.3
Balance (in shares) at Mar. 31, 2023	35.9
Balance at the beginning of the period at Dec. 31, 2022	$ 27.2	290.4	(6.9)	1,986.2	2,296.9
Balance (in shares) at Dec. 31, 2022	36.3
Increase (Decrease) in Shareholders' Equity
Net income					234.7
Other comprehensive income (loss), net of tax					(2.4)
Balance at the end of the period at Sep. 30, 2023	$ 26.2	289.1	(9.3)	2,084.3	2,390.3
Balance (in shares) at Sep. 30, 2023	34.9
Balance at the beginning of the period at Mar. 31, 2023	$ 26.9	279.7	(6.3)	1,970	2,270.3
Balance (in shares) at Mar. 31, 2023	35.9
Increase (Decrease) in Shareholders' Equity
Net income				80.8	80.8
Other comprehensive income (loss), net of tax			(1.6)		(1.6)
Share-based compensation		5.2			5.2
Shares issued, net of shares withheld for employee taxes		0.1			0.1
Shares repurchased	$ (0.6)	(2.3)		(39.5)	(42.4)
Shares repurchased (in shares)	(0.6)
Dividends				(22.4)	(22.4)
Balance at the end of the period at Jun. 30, 2023	$ 26.3	282.7	(7.9)	1,988.9	2,290
Balance (in shares) at Jun. 30, 2023	35.3
Increase (Decrease) in Shareholders' Equity
Net income				119.9	119.9
Other comprehensive income (loss), net of tax			(1.4)		(1.4)
Share-based compensation		7.8			7.8
Shares issued, net of shares withheld for employee taxes		(0.2)			(0.2)
Shares repurchased	$ (0.1)	(1.2)		(24.5)	$ (25.8)
Shares repurchased (in shares)	(0.4)				(0.3)
Balance at the end of the period at Sep. 30, 2023	$ 26.2	$ 289.1	$ (9.3)	$ 2,084.3	$ 2,390.3
Balance (in shares) at Sep. 30, 2023	34.9

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares			3 Months Ended
	Oct. 26, 2023	Sep. 07, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Condensed Consolidated Statements of Shareholders' Equity
Dividends declared per share (in dollars per share)	$ 0.32		$ 0.32	$ 0.31	$ 0.31	$ 0.30
Dividends (in dollars per share)		$ 0.32	$ 0.31		$ 0.30

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS	9 Months Ended
DESCRIPTION OF THE BUSINESS	Sep. 30, 2023
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 from China to Long Beach, California, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from ports in Alaska to Asia. In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and for MatNav and other ocean carriers in Alaska. 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.

GENERAL AND SIGNIFICANT ACCOUNT

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
GENERAL AND SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2023
GENERAL AND SIGNIFICANT ACCOUNTING POLICIES
GENERAL AND SIGNIFICANT ACCOUNTING POLICIES	2. GENERAL AND 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 24, 2023. Fiscal Period: The period end for Matson covered by this report is September 30, 2023. The period end for MatNav and its subsidiaries covered by this report is September 29, 2023. 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, 2022. 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 other 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 (loss) from SSAT; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions. Prepaid Expenses and Other Assets: September 30, December 31, Prepaid Expenses and Other Assets (in millions) 2023 2022 Income tax receivables, net $ 105.2 $ 170.8 Prepaid fuel 26.7 26.3 Prepaid insurance and insurance related receivables 16.9 17.4 Prepaid operating expenses 8.3 9.0 Prepaid leases 5.4 4.8 Restricted cash - vessel construction obligations 3.9 3.9 Other 7.7 9.1 Total $ 174.1 $ 241.3 Income tax receivables include an expected federal income tax refund related to the Company’s 2021 federal tax return and other income tax receivables, offset by current federal income tax payables. 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 Nine Months Ended September 30, September 30, Ocean Transportation (in millions) (1) 2023 2022 2023 2022 Ocean Transportation services $ 654.3 $ 908.4 $ 1,799.6 $ 2,885.3 Terminal and other related services 10.8 5.4 24.3 13.8 Fuel sales 2.7 3.2 8.4 7.9 Vessel management and related services 1.6 1.5 5.0 4.6 Total $ 669.4 $ 918.5 $ 1,837.3 $ 2,911.6 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues 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 Nine Months Ended September 30, September 30, Logistics (in millions) (1) 2023 2022 2023 2022 Transportation Brokerage and Freight Forwarding services $ 138.6 $ 169.2 $ 415.8 $ 548.5 Warehousing and distribution services 11.9 15.5 31.5 41.4 Supply chain management and other services 7.6 11.6 21.1 39.9 Total $ 158.1 $ 196.3 $ 468.4 $ 629.8 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Logistics revenues 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 administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. Capital Construction Fund: 31, 2022. A summary of the CCF cash account for the nine months ended September 30, 2023 and 2022 consisted of the following: Nine Months Ended September 30, (In millions) 2023 2022 CCF balance at beginning of period $ 518.2 $ — Cash deposits into CCF 100.0 579.7 Interest earned on deposits 23.3 — Qualifying withdrawal payments (49.9) (14.7) CCF balance at end of period $ 591.6 $ 565.0 The Company had $591.6 million and $518.2 million on deposit in the CCF as of September 30, 2023, and December 31, 2022, respectively. Cash on deposit in the CCF is invested in a U.S. Treasury obligations fund with daily liquidity. At September 30, 2023, securities held within this fund had a weighted average life of 44 days . Cash on deposit in the CCF is classified as a long-term asset on the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use withdrawals to fund qualified milestone progress payments for the construction of new Jones Act vessels. During the nine months ended September 30, 2023, the Company pledged $200.0 million of accounts receivable into the CCF. There were 30, 2022. million of eligible accounts receivable were assigned to the CCF, respectively. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets. Investment in SSAT: Condensed income statement information for SSAT for the three and nine months ended September 30, 2023 and 2022 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating revenue $ 268.4 $ 369.8 $ 742.1 $ 1,191.3 Operating costs and expenses (269.4) (286.9) (754.2) (894.3) Operating (loss) income (1.0) 82.9 (12.1) 297.0 Net Income (Loss) (1) $ 1.5 $ 68.9 $ (7.4) $ 247.0 Company Share of SSAT’s Net Income (Loss) (2) $ 1.3 $ 23.4 $ (1.9) $ 82.1 (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 (loss) 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 $81.4 million and $81.2 million at September 30, 2023 and December 31, 2022, respectively. 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. Capitalized interest is determined based on the number 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 Condensed Consolidated Balance Sheets (see Note 4). During the three and nine months ended September 30, 2023, the Company capitalized million of interest related to the construction of new vessels, respectively. There was 30, 2022. During the nine months ended September 30, 2022, the Company capitalized Dividends: The Company’s third quarter 2023 cash dividend of 7, 2023. On October 26, 2023, the Company’s Board of Directors declared a cash dividend of Repurchase of Shares: million. As of September 30, 2023, the maximum number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS	9 Months Ended
REPORTABLE SEGMENTS	Sep. 30, 2023
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 $61.1 million and $78.2 million for the three months ended September 30, 2023 and 2022, and $155.6 million and $220.6 million for the nine months ended September 30, 2023 and 2022, respectively, have been eliminated from operating revenues in the table below. Reportable segment financial information for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating Revenue: Ocean Transportation (1) $ 669.4 $ 918.5 $ 1,837.3 $ 2,911.6 Logistics (2) 158.1 196.3 468.4 629.8 Total Operating Revenue $ 827.5 $ 1,114.8 $ 2,305.7 $ 3,541.4 Operating Income: Ocean Transportation (3) $ 118.2 $ 315.2 $ 228.4 $ 1,201.4 Logistics 13.9 20.1 39.1 59.6 Total Operating Income 132.1 335.3 267.5 1,261.0 Interest income 9.3 1.3 26.2 1.3 Interest expense (2.4) (5.0) (9.8) (14.3) Other income (expense), net 1.2 2.5 4.8 6.3 Income before Taxes 140.2 334.1 288.7 1,254.3 Income taxes (20.3) (68.1) (54.0) (268.4) Net Income $ 119.9 $ 266.0 $ 234.7 $ 985.9 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $22.5 million and $28.0 million for the three months ended September 30, 2023 and 2022, and $57.6 million and $73.8 million for the nine months ended September 30, 2023 and 2022, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $38.6 million and $50.2 million for the three months ended September 30, 2023 and 2022, and $98.0 million and $146.8 million for the nine months ended September 30, 2023 and 2022, respectively. (3) Ocean Transportation segment information includes $ 1.3 million and $23.4 million of income from the Company’s equity investment in SSAT for the three months ended September 30, 2023 and 2022, and $ (1.9) million and $82.1 million of (loss) income for the nine months ended September 30, 2023 and 2022, respectively.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
PROPERTY AND EQUIPMENT	Sep. 30, 2023
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Property and equipment as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, (In millions) 2023 2022 Cost: Vessels $ 2,260.4 $ 2,278.6 Containers and equipment 800.3 762.7 Terminal facilities and other property 147.7 131.5 New vessel construction in progress 102.3 50.2 Other construction in progress 117.4 65.7 Total Property and Equipment 3,428.1 3,288.7 Less: Accumulated Depreciation (1,369.6) (1,326.2) Total Property and Equipment, net $ 2,058.5 $ 1,962.5 New vessel construction in progress at September 30, 2023 and December 31, 2022 includes milestone progress payments, capitalized interest and other costs related to the construction of three new Jones Act vessels.

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES	9 Months Ended
GOODWILL AND INTANGIBLES	Sep. 30, 2023
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES	5. GOODWILL AND INTANGIBLES Goodwill by segment as of September 30, 2023 and December 31, 2022 consisted of the following: Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8 Intangible assets as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, (In millions) 2023 2022 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 111.8 95.3 Total 252.4 235.9 Less: Accumulated Amortization (98.9) (88.3) Total Customer Relationships, net 153.5 147.6 Trade name – Logistics 27.3 27.3 Total Intangible Assets, net $ 180.8 $ 174.9 On February 27, 2023, the Company completed an asset acquisition consisting of customer relationship intangible assets for $16.5 million, which are being amortized over seven years. 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 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 2022 annual impairment tests, the Company concluded that an impairment triggering event did not occur during the three months ended September 30, 2023. 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	9 Months Ended
DEBT	Sep. 30, 2023
DEBT
DEBT	6. DEBT As of September 30, 2023 and December 31, 2022, the Company’s debt consisted of the following: September 30, December 31, (In millions) 2023 2022 Private Placement Term Loans: 3.66 %, payable through 2023 $ — $ 4.5 3.37 %, payable through 2027 51.9 57.7 3.14 %, payable through 2031 114.4 132.8 Title XI Debt: 5.34 %, payable through 2028 — 13.2 5.27 %, payable through 2029 — 15.4 1.22 %, payable through 2043 162.2 166.2 1.35 %, payable through 2044 121.8 127.7 Total Debt 450.3 517.5 Less: Current portion (39.7) (76.9) Total Long-term Debt 410.6 440.6 Less: Deferred loan fees (11.9) (12.9) Total Long-term Debt, net of deferred loan fees $ 398.7 $ 427.7 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, 2022. Revolving Credit Facility: The Company’s revolving credit facility has committed available borrowing of up to 31, 2026. As of September 30, 2023, the Company had borrowing availability under the revolving credit facility. 30, 2023. There were On February 9, 2023, the Company amended the revolving credit facility to replace LIBOR with a new benchmark interest rate, the Secured Overnight Financing Rate (“SOFR”). There were no other significant changes to the revolving credit facility as a result of this amendment. Title XI Bonds: On January 27, 2023, the Company prepaid percent Title XI Bond representing all of the remaining outstanding principal for this bond. On March 3, 2023, the Company also prepaid Debt Security and Guarantees: All of the debt of the Company and MatNav, including related guarantees, as of September 30, 2023 was unsecured, except for the Title XI debt. Debt Maturities: As of September 30, 2023, debt maturities during the next five years and thereafter are as follows: As of Year (in millions) September 30, 2023 Remainder of 2023 $ 9.7 2024 39.7 2025 39.7 2026 39.7 2027 39.7 Thereafter 281.8 Total Debt $ 450.3

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2023
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, 2022. Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three and nine months ended September 30, 2023 and 2022 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating lease cost $ 34.7 $ 40.8 $ 114.8 $ 120.8 Short-term lease cost 3.8 0.2 5.5 0.4 Variable lease cost 0.1 0.2 0.5 0.6 Total lease cost $ 38.6 $ 41.2 $ 120.8 $ 121.8 Maturities of operating lease liabilities at September 30, 2023 are as follows: As of Year (in millions) September 30, 2023 Remainder of 2023 $ 35.2 2024 131.4 2025 75.8 2026 32.7 2027 15.6 Thereafter 57.7 Total lease payments 348.4 Less: Interest (34.6) Present value of operating lease liabilities 313.8 Less: Short-term portion (127.7) Long-term operating lease liabilities $ 186.1

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Sep. 30, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2023 consisted of the following: Accumulated Post- Non- Other Pension Retirement Qualified Comprehensive (In millions) Benefits Benefits Plans Other Income (Loss) Balance at December 31, 2022 $ (25.8) $ 18.7 $ 0.1 $ 0.1 $ (6.9) Amortization of prior service cost — (0.7) — — (0.7) Amortization of net gain (loss) 0.3 (0.4) — — (0.1) Foreign currency exchange — — — (0.3) (0.3) Other — — — 1.7 1.7 Balance at March 31, 2023 (25.5) 17.6 0.1 1.5 (6.3) Amortization of prior service cost — (0.7) — — (0.7) Amortization of net gain (loss) 0.2 (0.4) — — (0.2) Foreign currency exchange — — — (0.7) (0.7) Balance at June 30, 2023 (25.3) 16.5 0.1 0.8 (7.9) Amortization of prior service cost — (0.7) — — (0.7) Amortization of net gain (loss) 0.2 (0.3) — — (0.1) Foreign currency exchange — — — (0.6) (0.6) Balance at September 30, 2023 $ (25.1) $ 15.5 $ 0.1 $ 0.2 $ (9.3) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 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 gain (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) Amortization of prior service cost (0.2) (0.7) — — (0.9) Amortization of net gain (loss) 0.7 0.2 — 1.1 2.0 Foreign currency exchange — — — (2.3) (2.3) Other adjustments — — — 0.4 0.4 Balance at June 30, 2022 (38.2) 9.1 (0.7) (1.7) (31.5) Amortization of prior service cost (0.1) (0.7) — — (0.8) Amortization of net gain (loss) — 0.1 — — 0.1 Foreign currency exchange — — — (2.0) (2.0) Other adjustments — — — 0.1 0.1 Balance at September 30, 2022 $ (38.3) $ 8.5 $ (0.7) $ (3.6) $ (34.1)

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Sep. 30, 2023
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, restricted cash and cash in the CCF, and Level 2 inputs for its variable and fixed rate debt. The fair values of cash, cash equivalents, restricted cash and cash on deposit in the CCF, 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 September 30, 2023 and December 31, 2022 are as follows: Quoted Prices in Significant Significant Total Active Markets Observable Unobservable Carrying Value Total (Level 1) Inputs (Level 2) Inputs (Level 3) (In millions) September 30, 2023 Fair Value Measurements at September 30, 2023 Cash and cash equivalents $ 156.5 $ 156.5 $ 156.5 $ — $ — Restricted cash $ 3.9 $ 3.9 $ 3.9 $ — $ — Capital Construction Fund $ 591.6 $ 591.6 $ 591.6 $ — $ — Fixed rate debt $ 450.3 $ 351.7 $ — $ 351.7 $ — (In millions) December 31, 2022 Fair Value Measurements at December 31, 2022 Cash and cash equivalents $ 249.8 $ 249.8 $ 249.8 $ — $ — Restricted cash $ 3.9 $ 3.9 $ 3.9 $ — $ — Capital Construction Fund $ 518.2 $ 518.2 $ 518.2 $ — $ — Fixed rate debt $ 517.5 $ 427.3 $ — $ 427.3 $ —

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 30, 2023
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 September 30, 2023 and 2022. The computations for basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 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 $ 119.9 35.1 $ 3.42 $ 234.7 35.6 $ 6.59 Effect of Dilutive Securities 0.2 (0.02) 0.2 (0.03) Diluted $ 119.9 35.3 $ 3.40 $ 234.7 35.8 $ 6.56 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 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 $ 266.0 38.3 $ 6.95 $ 985.9 39.7 $ 24.83 Effect of Dilutive Securities 0.3 (0.06) 0.3 (0.18) Diluted $ 266.0 38.6 $ 6.89 $ 985.9 40.0 $ 24.65

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
SHARE-BASED COMPENSATION	Sep. 30, 2023
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION	11. SHARE-BASED COMPENSATION The Company granted time-based restricted stock units and performance-based shares to certain of its employees totaling approximately 1,100 and 267,100 shares with a weighted average grant date fair value of $76.50 and $65.89 per share during the three and nine months ended September 30, 2023, respectively. Total share-based compensation cost recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of selling, general and administrative expenses was $7.8 million and $5.0 million for the three months ended September 30, 2023 and 2022, and $17.6 million and $15.5 million for the nine months ended September 30, 2023 and 2022, respectively. Total unrecognized compensation cost related to unvested share-based compensation arrangements was years. Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

PENSION AND POST-RETIREMENT PLA

PENSION AND POST-RETIREMENT PLANS	9 Months Ended
PENSION AND POST-RETIREMENT PLANS	Sep. 30, 2023
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, 2022 . 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 and nine months ended September 30, 2023 and 2022 consisted of the following: Pension Benefits Post-retirement Benefits Three Months Ended September 30, Three Months Ended September 30, (In millions) 2023 2022 2023 2022 Components of net periodic benefit cost (credit): Service cost $ 0.3 $ 1.2 $ 0.1 $ 0.2 Interest cost 2.5 1.9 0.3 0.3 Expected return on plan assets (3.0) (4.0) — — Amortization of net loss (gain) 0.2 0.1 (0.5) 0.2 Amortization of prior service credit — (0.3) (1.0) (1.0) Net periodic benefit cost (credit) $ (0.0) $ (1.1) $ (1.1) $ (0.3) Pension Benefits Post-retirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Components of net periodic benefit cost (credit): Service cost $ 2.3 $ 3.6 $ 0.2 $ 0.5 Interest cost 7.5 5.2 0.7 0.7 Expected return on plan assets (10.4) (11.9) — — Amortization of net loss (gain) 0.9 1.8 (1.5) 0.6 Amortization of prior service credit — (0.8) (2.8) (2.8) Net periodic benefit cost (credit) $ 0.3 $ (2.1) $ (3.4) $ (1.0)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES Environmental Matters: The Company’s Ocean Transportation business has certain risks that could result in expenditures for environmental remediation. The Company believes that based on all information available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations. Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.

GENERAL AND SIGNIFICANT ACCOU_2

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
GENERAL AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2023
GENERAL AND 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 24, 2023.
Fiscal Period	Fiscal Period: The period end for Matson covered by this report is September 30, 2023. The period end for MatNav and its subsidiaries covered by this report is September 29, 2023.
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, 2022.
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 other 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 (loss) from SSAT; and income taxes. Future results could be materially affected if actual results differ from these estimates and assumptions.
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets: September 30, December 31, Prepaid Expenses and Other Assets (in millions) 2023 2022 Income tax receivables, net $ 105.2 $ 170.8 Prepaid fuel 26.7 26.3 Prepaid insurance and insurance related receivables 16.9 17.4 Prepaid operating expenses 8.3 9.0 Prepaid leases 5.4 4.8 Restricted cash - vessel construction obligations 3.9 3.9 Other 7.7 9.1 Total $ 174.1 $ 241.3 Income tax receivables include an expected federal income tax refund related to the Company’s 2021 federal tax return and other income tax receivables, offset by current federal income tax payables.
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 Nine Months Ended September 30, September 30, Ocean Transportation (in millions) (1) 2023 2022 2023 2022 Ocean Transportation services $ 654.3 $ 908.4 $ 1,799.6 $ 2,885.3 Terminal and other related services 10.8 5.4 24.3 13.8 Fuel sales 2.7 3.2 8.4 7.9 Vessel management and related services 1.6 1.5 5.0 4.6 Total $ 669.4 $ 918.5 $ 1,837.3 $ 2,911.6 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues 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 Nine Months Ended September 30, September 30, Logistics (in millions) (1) 2023 2022 2023 2022 Transportation Brokerage and Freight Forwarding services $ 138.6 $ 169.2 $ 415.8 $ 548.5 Warehousing and distribution services 11.9 15.5 31.5 41.4 Supply chain management and other services 7.6 11.6 21.1 39.9 Total $ 158.1 $ 196.3 $ 468.4 $ 629.8 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Logistics revenues 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 administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.
Capital Construction Fund	Capital Construction Fund: 31, 2022. A summary of the CCF cash account for the nine months ended September 30, 2023 and 2022 consisted of the following: Nine Months Ended September 30, (In millions) 2023 2022 CCF balance at beginning of period $ 518.2 $ — Cash deposits into CCF 100.0 579.7 Interest earned on deposits 23.3 — Qualifying withdrawal payments (49.9) (14.7) CCF balance at end of period $ 591.6 $ 565.0 The Company had $591.6 million and $518.2 million on deposit in the CCF as of September 30, 2023, and December 31, 2022, respectively. Cash on deposit in the CCF is invested in a U.S. Treasury obligations fund with daily liquidity. At September 30, 2023, securities held within this fund had a weighted average life of 44 days . Cash on deposit in the CCF is classified as a long-term asset on the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use withdrawals to fund qualified milestone progress payments for the construction of new Jones Act vessels. During the nine months ended September 30, 2023, the Company pledged $200.0 million of accounts receivable into the CCF. There were 30, 2022. million of eligible accounts receivable were assigned to the CCF, respectively. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets.
Investment in SSAT	Investment in SSAT: Condensed income statement information for SSAT for the three and nine months ended September 30, 2023 and 2022 consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating revenue $ 268.4 $ 369.8 $ 742.1 $ 1,191.3 Operating costs and expenses (269.4) (286.9) (754.2) (894.3) Operating (loss) income (1.0) 82.9 (12.1) 297.0 Net Income (Loss) (1) $ 1.5 $ 68.9 $ (7.4) $ 247.0 Company Share of SSAT’s Net Income (Loss) (2) $ 1.3 $ 23.4 $ (1.9) $ 82.1 (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 (loss) 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 $81.4 million and $81.2 million at September 30, 2023 and December 31, 2022, respectively.
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. Capitalized interest is determined based on the number 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 Condensed Consolidated Balance Sheets (see Note 4). During the three and nine months ended September 30, 2023, the Company capitalized million of interest related to the construction of new vessels, respectively. There was 30, 2022. During the nine months ended September 30, 2022, the Company capitalized
Dividends	Dividends: The Company’s third quarter 2023 cash dividend of 7, 2023. On October 26, 2023, the Company’s Board of Directors declared a cash dividend of
Repurchase of Shares	Repurchase of Shares: million. As of September 30, 2023, the maximum number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately

GENERAL AND SIGNIFICANT ACCOU_3

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
GENERAL AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2023
Schedule of prepaid expenses and other assets	September 30, December 31, Prepaid Expenses and Other Assets (in millions) 2023 2022 Income tax receivables, net $ 105.2 $ 170.8 Prepaid fuel 26.7 26.3 Prepaid insurance and insurance related receivables 16.9 17.4 Prepaid operating expenses 8.3 9.0 Prepaid leases 5.4 4.8 Restricted cash - vessel construction obligations 3.9 3.9 Other 7.7 9.1 Total $ 174.1 $ 241.3
Summary of the CCF cash account	Nine Months Ended September 30, (In millions) 2023 2022 CCF balance at beginning of period $ 518.2 $ — Cash deposits into CCF 100.0 579.7 Interest earned on deposits 23.3 — Qualifying withdrawal payments (49.9) (14.7) CCF balance at end of period $ 591.6 $ 565.0
Schedule of condensed income statement information for SSAT	Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating revenue $ 268.4 $ 369.8 $ 742.1 $ 1,191.3 Operating costs and expenses (269.4) (286.9) (754.2) (894.3) Operating (loss) income (1.0) 82.9 (12.1) 297.0 Net Income (Loss) (1) $ 1.5 $ 68.9 $ (7.4) $ 247.0 Company Share of SSAT’s Net Income (Loss) (2) $ 1.3 $ 23.4 $ (1.9) $ 82.1 (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 (loss) 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 Nine Months Ended September 30, September 30, Ocean Transportation (in millions) (1) 2023 2022 2023 2022 Ocean Transportation services $ 654.3 $ 908.4 $ 1,799.6 $ 2,885.3 Terminal and other related services 10.8 5.4 24.3 13.8 Fuel sales 2.7 3.2 8.4 7.9 Vessel management and related services 1.6 1.5 5.0 4.6 Total $ 669.4 $ 918.5 $ 1,837.3 $ 2,911.6 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation revenues 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 Nine Months Ended September 30, September 30, Logistics (in millions) (1) 2023 2022 2023 2022 Transportation Brokerage and Freight Forwarding services $ 138.6 $ 169.2 $ 415.8 $ 548.5 Warehousing and distribution services 11.9 15.5 31.5 41.4 Supply chain management and other services 7.6 11.6 21.1 39.9 Total $ 158.1 $ 196.3 $ 468.4 $ 629.8 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Logistics revenues 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)	9 Months Ended
REPORTABLE SEGMENTS (Tables)	Sep. 30, 2023
REPORTABLE SEGMENTS
Schedule of reportable segment financial information	Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating Revenue: Ocean Transportation (1) $ 669.4 $ 918.5 $ 1,837.3 $ 2,911.6 Logistics (2) 158.1 196.3 468.4 629.8 Total Operating Revenue $ 827.5 $ 1,114.8 $ 2,305.7 $ 3,541.4 Operating Income: Ocean Transportation (3) $ 118.2 $ 315.2 $ 228.4 $ 1,201.4 Logistics 13.9 20.1 39.1 59.6 Total Operating Income 132.1 335.3 267.5 1,261.0 Interest income 9.3 1.3 26.2 1.3 Interest expense (2.4) (5.0) (9.8) (14.3) Other income (expense), net 1.2 2.5 4.8 6.3 Income before Taxes 140.2 334.1 288.7 1,254.3 Income taxes (20.3) (68.1) (54.0) (268.4) Net Income $ 119.9 $ 266.0 $ 234.7 $ 985.9 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $22.5 million and $28.0 million for the three months ended September 30, 2023 and 2022, and $57.6 million and $73.8 million for the nine months ended September 30, 2023 and 2022, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $38.6 million and $50.2 million for the three months ended September 30, 2023 and 2022, and $98.0 million and $146.8 million for the nine months ended September 30, 2023 and 2022, respectively. (3) Ocean Transportation segment information includes $ 1.3 million and $23.4 million of income from the Company’s equity investment in SSAT for the three months ended September 30, 2023 and 2022, and $ (1.9) million and $82.1 million of (loss) income for the nine months ended September 30, 2023 and 2022, respectively.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Sep. 30, 2023
PROPERTY AND EQUIPMENT
Schedule of property and equipment	September 30, December 31, (In millions) 2023 2022 Cost: Vessels $ 2,260.4 $ 2,278.6 Containers and equipment 800.3 762.7 Terminal facilities and other property 147.7 131.5 New vessel construction in progress 102.3 50.2 Other construction in progress 117.4 65.7 Total Property and Equipment 3,428.1 3,288.7 Less: Accumulated Depreciation (1,369.6) (1,326.2) Total Property and Equipment, net $ 2,058.5 $ 1,962.5

GOODWILL AND INTANGIBLES (Table

GOODWILL AND INTANGIBLES (Tables)	9 Months Ended
GOODWILL AND INTANGIBLES (Tables)	Sep. 30, 2023
GOODWILL AND INTANGIBLES
Schedule of goodwill	Ocean (In millions) Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8
Schedule of intangible assets	September 30, December 31, (In millions) 2023 2022 Customer Relationships: Ocean Transportation $ 140.6 $ 140.6 Logistics 111.8 95.3 Total 252.4 235.9 Less: Accumulated Amortization (98.9) (88.3) Total Customer Relationships, net 153.5 147.6 Trade name – Logistics 27.3 27.3 Total Intangible Assets, net $ 180.8 $ 174.9

DEBT (Tables)

DEBT (Tables)	9 Months Ended
DEBT (Tables)	Sep. 30, 2023
DEBT
Schedule of debt	September 30, December 31, (In millions) 2023 2022 Private Placement Term Loans: 3.66 %, payable through 2023 $ — $ 4.5 3.37 %, payable through 2027 51.9 57.7 3.14 %, payable through 2031 114.4 132.8 Title XI Debt: 5.34 %, payable through 2028 — 13.2 5.27 %, payable through 2029 — 15.4 1.22 %, payable through 2043 162.2 166.2 1.35 %, payable through 2044 121.8 127.7 Total Debt 450.3 517.5 Less: Current portion (39.7) (76.9) Total Long-term Debt 410.6 440.6 Less: Deferred loan fees (11.9) (12.9) Total Long-term Debt, net of deferred loan fees $ 398.7 $ 427.7
Schedule of maturities of debt	As of Year (in millions) September 30, 2023 Remainder of 2023 $ 9.7 2024 39.7 2025 39.7 2026 39.7 2027 39.7 Thereafter 281.8 Total Debt $ 450.3

LEASES (Tables)

LEASES (Tables)	9 Months Ended
LEASES (Tables)	Sep. 30, 2023
LEASES
Components of Lease Cost	Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2023 2022 2023 2022 Operating lease cost $ 34.7 $ 40.8 $ 114.8 $ 120.8 Short-term lease cost 3.8 0.2 5.5 0.4 Variable lease cost 0.1 0.2 0.5 0.6 Total lease cost $ 38.6 $ 41.2 $ 120.8 $ 121.8
Summary of maturities of operating lease liabilities	As of Year (in millions) September 30, 2023 Remainder of 2023 $ 35.2 2024 131.4 2025 75.8 2026 32.7 2027 15.6 Thereafter 57.7 Total lease payments 348.4 Less: Interest (34.6) Present value of operating lease liabilities 313.8 Less: Short-term portion (127.7) Long-term operating lease liabilities $ 186.1

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Sep. 30, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax	Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2023 consisted of the following: Accumulated Post- Non- Other Pension Retirement Qualified Comprehensive (In millions) Benefits Benefits Plans Other Income (Loss) Balance at December 31, 2022 $ (25.8) $ 18.7 $ 0.1 $ 0.1 $ (6.9) Amortization of prior service cost — (0.7) — — (0.7) Amortization of net gain (loss) 0.3 (0.4) — — (0.1) Foreign currency exchange — — — (0.3) (0.3) Other — — — 1.7 1.7 Balance at March 31, 2023 (25.5) 17.6 0.1 1.5 (6.3) Amortization of prior service cost — (0.7) — — (0.7) Amortization of net gain (loss) 0.2 (0.4) — — (0.2) Foreign currency exchange — — — (0.7) (0.7) Balance at June 30, 2023 (25.3) 16.5 0.1 0.8 (7.9) Amortization of prior service cost — (0.7) — — (0.7) Amortization of net gain (loss) 0.2 (0.3) — — (0.1) Foreign currency exchange — — — (0.6) (0.6) Balance at September 30, 2023 $ (25.1) $ 15.5 $ 0.1 $ 0.2 $ (9.3) Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 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 gain (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) Amortization of prior service cost (0.2) (0.7) — — (0.9) Amortization of net gain (loss) 0.7 0.2 — 1.1 2.0 Foreign currency exchange — — — (2.3) (2.3) Other adjustments — — — 0.4 0.4 Balance at June 30, 2022 (38.2) 9.1 (0.7) (1.7) (31.5) Amortization of prior service cost (0.1) (0.7) — — (0.8) Amortization of net gain (loss) — 0.1 — — 0.1 Foreign currency exchange — — — (2.0) (2.0) Other adjustments — — — 0.1 0.1 Balance at September 30, 2022 $ (38.3) $ 8.5 $ (0.7) $ (3.6) $ (34.1)

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2023
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) September 30, 2023 Fair Value Measurements at September 30, 2023 Cash and cash equivalents $ 156.5 $ 156.5 $ 156.5 $ — $ — Restricted cash $ 3.9 $ 3.9 $ 3.9 $ — $ — Capital Construction Fund $ 591.6 $ 591.6 $ 591.6 $ — $ — Fixed rate debt $ 450.3 $ 351.7 $ — $ 351.7 $ — (In millions) December 31, 2022 Fair Value Measurements at December 31, 2022 Cash and cash equivalents $ 249.8 $ 249.8 $ 249.8 $ — $ — Restricted cash $ 3.9 $ 3.9 $ 3.9 $ — $ — Capital Construction Fund $ 518.2 $ 518.2 $ 518.2 $ — $ — Fixed rate debt $ 517.5 $ 427.3 $ — $ 427.3 $ —

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2023
EARNINGS PER SHARE
Schedule of basic and diluted earnings per share	The computations for basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 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 $ 119.9 35.1 $ 3.42 $ 234.7 35.6 $ 6.59 Effect of Dilutive Securities 0.2 (0.02) 0.2 (0.03) Diluted $ 119.9 35.3 $ 3.40 $ 234.7 35.8 $ 6.56 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 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 $ 266.0 38.3 $ 6.95 $ 985.9 39.7 $ 24.83 Effect of Dilutive Securities 0.3 (0.06) 0.3 (0.18) Diluted $ 266.0 38.6 $ 6.89 $ 985.9 40.0 $ 24.65

PENSION AND POST-RETIREMENT P_2

PENSION AND POST-RETIREMENT PLANS (Tables)	9 Months Ended
PENSION AND POST-RETIREMENT PLANS (Tables)	Sep. 30, 2023
PENSION AND POST-RETIREMENT PLANS
Components of net periodic benefit cost (benefit)	Pension Benefits Post-retirement Benefits Three Months Ended September 30, Three Months Ended September 30, (In millions) 2023 2022 2023 2022 Components of net periodic benefit cost (credit): Service cost $ 0.3 $ 1.2 $ 0.1 $ 0.2 Interest cost 2.5 1.9 0.3 0.3 Expected return on plan assets (3.0) (4.0) — — Amortization of net loss (gain) 0.2 0.1 (0.5) 0.2 Amortization of prior service credit — (0.3) (1.0) (1.0) Net periodic benefit cost (credit) $ (0.0) $ (1.1) $ (1.1) $ (0.3) Pension Benefits Post-retirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Components of net periodic benefit cost (credit): Service cost $ 2.3 $ 3.6 $ 0.2 $ 0.5 Interest cost 7.5 5.2 0.7 0.7 Expected return on plan assets (10.4) (11.9) — — Amortization of net loss (gain) 0.9 1.8 (1.5) 0.6 Amortization of prior service credit — (0.8) (2.8) (2.8) Net periodic benefit cost (credit) $ 0.3 $ (2.1) $ (3.4) $ (1.0)

DESCRIPTION OF THE BUSINESS (De

DESCRIPTION OF THE BUSINESS (Details)	9 Months Ended
DESCRIPTION OF THE BUSINESS (Details)	Sep. 30, 2023 facility segment
DESCRIPTION OF THE BUSINESS
Number of reportable segments \| segment	2
Ocean Transportation \| SSAT
DESCRIPTION OF THE BUSINESS
Ownership interest in SSAT (as a percent)	35%
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

GENERAL AND SIGNIFICANT ACCOU_4

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Prepaid Expenses and Other Assets:
Income tax receivables, net	$ 105.2	$ 170.8
Prepaid fuel	26.7	26.3
Prepaid insurance and insurance related receivables	16.9	17.4
Prepaid operating expenses	8.3	9
Prepaid leases	5.4	4.8
Restricted cash - vessel construction obligations	3.9	3.9
Other	7.7	9.1
Total	$ 174.1	$ 241.3

GENERAL AND SIGNIFICANT ACCOU_5

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - RECOGNITION OF REVENUES AND EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total	$ 827.5	$ 1,114.8	$ 2,305.7	$ 3,541.4
Ocean. Transportation.
Ocean Transportation services	654.3	908.4	1,799.6	2,885.3
Terminal and other related services	10.8	5.4	24.3	13.8
Fuel sales	2.7	3.2	8.4	7.9
Vessel management and related services	1.6	1.5	5	4.6
Total	669.4	918.5	$ 1,837.3	$ 2,911.6
Percentage of ocean transportation revenues and fuel sales denominated in foreign currency			3%	3%
Logistics.
Transportation Brokerage and Freight Forwarding services	138.6	169.2	$ 415.8	$ 548.5
Warehousing and distribution services	11.9	15.5	31.5	41.4
Supply chain management and other services	7.6	11.6	21.1	39.9
Total	$ 158.1	$ 196.3	$ 468.4	$ 629.8
Percentage of transportation brokerage and freight forwarding services revenue denominated in foreign currency			3%	3%

GENERAL SIGNIFICANT ACCOUNTING

GENERAL SIGNIFICANT ACCOUNTING POLICIES - CAPITAL CONSTRUCTION FUND (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) item	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Cash deposits	$ 120.8	$ 579.7
Qualifying cash withdrawal payments	49.9	14.7
Accounts receivable, net	$ 305.2		$ 268.5
Number of vessels under agreements for construction \| item	3
Eligible Accounts Receivable Assigned to CCF
Capital construction fund	$ 591.6	565	518.2
Cash deposits	100	579.7
Interest earned	23.3
Qualifying cash withdrawal payments	(49.9)	(14.7)
Amount pledged to capital construction fund	200	$ 0
Accounts receivable, net	$ 213.2		$ 9.9
Weighted average life of securities held within the fund	44 days

GENERAL AND SIGNIFICANT ACCOU_6

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - INVESTMENT IN SSAT (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Investments in affiliates
Investment in SSAT	$ 81.4		$ 81.4		$ 81.2
Financial information for equity method investment
Company Share of Net Income (Loss)	1.3	$ 23.4	(1.9)	$ 82.1
SSAT
Financial information for equity method investment
Company Share of Net Income (Loss)	1.3	23.4
SSAT
Investments in affiliates
Investment in SSAT	81.4		81.4		$ 81.2
Financial information for equity method investment
Operating revenue	268.4	369.8	742.1	1,191.3
Operating costs and expenses	(269.4)	(286.9)	(754.2)	(894.3)
Operating (loss) income	(1)	82.9	(12.1)	297
Net Income (Loss)	$ 1.5	$ 68.9	$ (7.4)	$ 247

GENERAL AND SIGNIFICANT ACCOU_7

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - CAPITALIZED INTEREST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Vessels
Capitalized Interest
Interest Costs Capitalized	$ 0.8	$ 0	$ 1.7	$ 0.4

GENERAL AND SIGNIFICANT ACCOU_8

GENERAL AND SIGNIFICANT ACCOUNTING POLICIES - DIVIDENDS AND OTHERS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended
	Oct. 26, 2023	Sep. 07, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Per Common Share Amount
Dividends (in dollars per share)		$ 0.32		$ 0.31			$ 0.30
Dividends declared per share (in dollars per share)	$ 0.32			$ 0.32	$ 0.31		$ 0.31	$ 0.30
Shares repurchased (in shares)			0.3
Shares repurchased			$ 25.8	$ 42.4	$ 42.1	$ 88	$ 138.1	$ 68.6
Maximum number of shares remaining to be repurchased			3

REPORTABLE SEGMENTS (Details)

REPORTABLE SEGMENTS (Details) $ in Millions	3 Months Ended						9 Months Ended
REPORTABLE SEGMENTS (Details) $ in Millions	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment results
Number of segments \| segment							2
Total Operating Revenue	$ 827.5			$ 1,114.8			$ 2,305.7	$ 3,541.4
Total Operating Income	132.1			335.3			267.5	1,261
Interest income	9.3			1.3			26.2	1.3
Interest expense	(2.4)			(5)			(9.8)	(14.3)
Other income (expense), net	1.2			2.5			4.8	6.3
Income before Taxes	140.2			334.1			288.7	1,254.3
Income taxes	(20.3)			(68.1)			(54)	(268.4)
Net Income	119.9	$ 80.8	$ 34	266	$ 380.7	$ 339.2	234.7	985.9
Deferred dry-docking amortization							18.6	18.6
Total Assets	4,292.8						4,292.8		$ 4,330
Income (Loss) from SSAT	1.3			23.4			(1.9)	82.1
SSAT
Segment results
Income (Loss) from SSAT	1.3			23.4
Intersegment Eliminations
Segment results
Total Operating Revenue	61.1			78.2			155.6	220.6
Ocean Transportation
Segment results
Income (Loss) from SSAT	1.3			23.4			(1.9)	82.1
Ocean Transportation \| Operating segments
Segment results
Total Operating Revenue	669.4			918.5			1,837.3	2,911.6
Total Operating Income	118.2			315.2			228.4	1,201.4
Ocean Transportation \| Intersegment Eliminations
Segment results
Total Operating Revenue	22.5			28			57.6	73.8
Logistics \| Operating segments
Segment results
Total Operating Revenue	158.1			196.3			468.4	629.8
Total Operating Income	13.9			20.1			39.1	59.6
Logistics \| Intersegment Eliminations
Segment results
Total Operating Revenue	$ 38.6			$ 50.2			$ 98	$ 146.8

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) $ in Millions	Sep. 30, 2023 USD ($) item	Dec. 31, 2022 USD ($) item
Property and equipment
Property and Equipment	$ 3,428.1	$ 3,288.7
Less: Accumulated Depreciation	(1,369.6)	(1,326.2)
Property and equipment, net	$ 2,058.5	1,962.5
Number of vessels under agreements for construction \| item	3
Vessels
Property and equipment
Property and Equipment	$ 2,260.4	2,278.6
Containers and equipment
Property and equipment
Property and Equipment	800.3	762.7
Terminal facilities and other property
Property and equipment
Property and Equipment	147.7	131.5
Vessel construction in progress
Property and equipment
Property and Equipment	$ 102.3	$ 50.2
Number of vessels under agreements for construction \| item	3	3
Other construction in progress
Property and equipment
Property and Equipment	$ 117.4	$ 65.7

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS - GOODWILL (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Goodwill [Line Items]
Total Goodwill	$ 327.8	$ 327.8
Ocean Transportation
Goodwill [Line Items]
Total Goodwill	222.6
Logistics
Goodwill [Line Items]
Total Goodwill	$ 105.2

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	Feb. 27, 2023	Sep. 30, 2023	Dec. 31, 2022
Intangible assets
Total Intangible Assets, net		$ 180.8	$ 174.9
Trade Names
Intangible assets
Indefinite-Lived intangible asset		27.3	27.3
Customer Relationships
Intangible assets
Expected useful life	7 years
Finite-Lived intangible assets acquired	$ 16.5
Total		252.4	235.9
Less: Accumulated Amortization		(98.9)	(88.3)
Total estimated amortization expense related to intangibles		153.5	147.6
Ocean Transportation \| Customer Relationships
Intangible assets
Total		140.6	140.6
Logistics \| Customer Relationships
Intangible assets
Total		$ 111.8	$ 95.3

DEBT - SUMMARY (Details)

DEBT - SUMMARY (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 03, 2023	Jan. 27, 2023	Dec. 31, 2022
Debt
Total Debt	$ 450.3			$ 517.5
Less: Current portion	(39.7)			(76.9)
Total Long-term Debt	410.6			440.6
Less: Deferred loan fees	(11.9)			(12.9)
Total Long-term Debt, net of deferred loan fees	$ 398.7			427.7
3.66 %, payable through 2023
Debt
Total Debt				4.5
Interest rate (as a percent)	3.66%
3.37 %, payable through 2027
Debt
Total Debt	$ 51.9			57.7
Interest rate (as a percent)	3.37%
3.14%, payable through 2031
Debt
Total Debt	$ 114.4			132.8
Interest rate (as a percent)	3.14%
5.34 %, payable through 2028
Debt
Total Debt				13.2
Interest rate (as a percent)	5.34%	5.34%
5.27 %, payable through 2029
Debt
Total Debt				15.4
Interest rate (as a percent)	5.27%		5.27%
1.22 %, payable through 2043
Debt
Total Debt	$ 162.2			166.2
Interest rate (as a percent)	1.22%
1.35 %, payable through 2044
Debt
Total Debt	$ 121.8			$ 127.7
Interest rate (as a percent)	1.35%

DEBT - REVOLVING CREDIT FACILIT

DEBT - REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Millions	Mar. 03, 2023	Jan. 27, 2023	Sep. 30, 2023	Sep. 30, 2022
Standby commercial letters of credit
Debt
Used portion of revolving credit facility			$ 7.4
Revolving Credit Facility
Debt
Maximum borrowing capacity under revolving credit facility			650
Funds available under the revolving credit facility			642.6
Used portion of revolving credit facility			$ 0	$ 0
5.34 %, payable through 2028
Debt
Repayment of debt	$ 12.1
Interest rate (as a percent)	5.34%		5.34%
5.27 %, payable through 2029
Debt
Repayment of debt		$ 14.3
Interest rate (as a percent)		5.27%	5.27%

DEBT - MATURITIES (Details)

DEBT - MATURITIES (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Debt maturities
Remainder of 2023	$ 9.7
2024	39.7
2025	39.7
2026	39.7
2027	39.7
Thereafter	281.8
Total Debt	$ 450.3	$ 517.5

LEASES - COMPONENTS OF LEASE CO

LEASES - COMPONENTS OF LEASE COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Components of Lease Cost
Operating lease cost	$ 34.7	$ 40.8	$ 114.8	$ 120.8
Short-term lease cost	3.8	0.2	5.5	0.4
Variable lease cost	0.1	0.2	0.5	0.6
Total lease cost	$ 38.6	$ 41.2	$ 120.8	$ 121.8

LEASES - MATURITIES OF OPERATIN

LEASES - MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Maturities of operating lease liabilities
Remainder of 2023	$ 35.2
2024	131.4
2025	75.8
2026	32.7
2027	15.6
Thereafter	57.7
Total lease payments	348.4
Less: Interest	(34.6)
Present value of operating lease liabilities	313.8
Less: Short-term portion	(127.7)	$ (143.6)
Long-term operating lease liabilities	$ 186.1	$ 262.5

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	$ 2,290	$ 2,270.3	$ 2,296.9	$ 2,133.6	$ 1,910.7	$ 1,667.4	$ 2,296.9	$ 1,667.4
Other adjustments	(0.6)			(1.9)			0.1	(3.5)
Balance at the end of the period	2,390.3	2,290	2,270.3	2,298.6	2,133.6	1,910.7	2,390.3	2,298.6
Pensions
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(25.3)	(25.5)	(25.8)	(38.2)	(38.7)	(39.1)	(25.8)	(39.1)
Amortization of prior service cost				(0.1)	(0.2)	(0.2)
Amortization of net gain (loss)	0.2	0.2	0.3		0.7	0.6
Balance at the end of the period	(25.1)	(25.3)	(25.5)	(38.3)	(38.2)	(38.7)	(25.1)	(38.3)
Post Retirement
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	16.5	17.6	18.7	9.1	9.6	10.1	18.7	10.1
Amortization of prior service cost	(0.7)	(0.7)	(0.7)	(0.7)	(0.7)	(0.7)
Amortization of net gain (loss)	(0.3)	(0.4)	(0.4)	0.1	0.2	0.2
Balance at the end of the period	15.5	16.5	17.6	8.5	9.1	9.6	15.5	8.5
Non-Qualified Plans
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	0.1	0.1	0.1	(0.7)	(0.7)	(0.7)	0.1	(0.7)
Balance at the end of the period	0.1	0.1	0.1	(0.7)	(0.7)	(0.7)	0.1	(0.7)
Other
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	0.8	1.5	0.1	(1.7)	(0.9)	(1.2)	0.1	(1.2)
Amortization of net gain (loss)					1.1
Foreign currency exchange	(0.6)	(0.7)	(0.3)	(2)	(2.3)	0.3
Other adjustments			1.7	0.1	0.4
Balance at the end of the period	0.2	0.8	1.5	(3.6)	(1.7)	(0.9)	0.2	(3.6)
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component, net of taxes
Balance at the beginning of the period	(7.9)	(6.3)	(6.9)	(31.5)	(30.7)	(30.9)	(6.9)	(30.9)
Amortization of prior service cost	(0.7)	(0.7)	(0.7)	(0.8)	(0.9)	(0.9)
Amortization of net gain (loss)	(0.1)	(0.2)	(0.1)	0.1	2	0.8
Foreign currency exchange	(0.6)	(0.7)	(0.3)	(2)	(2.3)	0.3
Other adjustments			1.7	0.1	0.4
Balance at the end of the period	$ (9.3)	$ (7.9)	$ (6.3)	$ (34.1)	$ (31.5)	$ (30.7)	$ (9.3)	$ (34.1)

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Fair value of financial instruments
Restricted Cash	$ 3.9		$ 3.9
Carrying value
Fair value of financial instruments
Cash and cash equivalents	156.5	$ 249.8
Restricted Cash	3.9	3.9
Capital construction fund	591.6	518.2
Fixed rate debt	450.3	517.5
Fair Value Measurement
Fair value of financial instruments
Cash and cash equivalents	156.5	249.8
Restricted Cash	3.9	3.9
Capital construction fund	591.6	518.2
Fixed rate debt	351.7	427.3
Fair Value Measurement \| Quoted Prices in Active Markets (Level 1)
Fair value of financial instruments
Cash and cash equivalents	156.5	249.8
Restricted Cash	3.9	3.9
Capital construction fund	591.6	518.2
Fair Value Measurement \| Significant Observable Inputs (Level 2)
Fair value of financial instruments
Fixed rate debt	$ 351.7	$ 427.3

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Income
Net Income, Basic	$ 119.9	$ 266	$ 234.7	$ 985.9
Net Income, Diluted	$ 119.9	$ 266	$ 234.7	$ 985.9
Weighted Average Common Shares
Basic (in shares)	35.1	38.3	35.6	39.7
Effect of Dilutive Securities (in shares)	0.2	0.3	0.2	0.3
Diluted (in shares)	35.3	38.6	35.8	40
Per Common Share Amount
Net income, Basic (in dollars per share)	$ 3.42	$ 6.95	$ 6.59	$ 24.83
Effect of dilutive securities (in dollars per shares)	(0.02)	(0.06)	(0.03)	(0.18)
Net income, Diluted (in dollars per share)	$ 3.40	$ 6.89	$ 6.56	$ 24.65

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Time Based And Performance Based Shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based compensation
Shares granted	1,100		267,100
Weighted average grant date fair value (in dollars per share)	$ 76.50		$ 65.89
Total unrecognized compensation cost	$ 30.2		$ 30.2
Unrecognized compensation cost over weighted average period to be recognized			1 year 9 months 18 days
Selling, general and administrative expenses
Share-based compensation
Total stock-based compensation cost	$ 7.8	$ 5	$ 17.6	$ 15.5

PENSION AND POST-RETIREMENT P_3

PENSION AND POST-RETIREMENT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pension Benefits
Components of Net Periodic Benefit Cost (Credit):
Service cost	$ 0.3	$ 1.2	$ 2.3	$ 3.6
Interest cost	2.5	1.9	7.5	5.2
Expected return on plan assets	(3)	(4)	(10.4)	(11.9)
Amortization of net loss (gain)	0.2	0.1	0.9	1.8
Amortization of prior service credit		(0.3)		(0.8)
Net periodic benefit cost (credit)	0	(1.1)	0.3	(2.1)
Post-retirement benefits
Components of Net Periodic Benefit Cost (Credit):
Service cost	0.1	0.2	0.2	0.5
Interest cost	0.3	0.3	0.7	0.7
Amortization of net loss (gain)	(0.5)	0.2	(1.5)	0.6
Amortization of prior service credit	(1)	(1)	(2.8)	(2.8)
Net periodic benefit cost (credit)	$ (1.1)	$ (0.3)	$ (3.4)	$ (1)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 119.9	$ 80.8	$ 34	$ 266	$ 380.7	$ 339.2	$ 234.7	$ 985.9

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false