EMPLOYEE BENEFIT PLANS (Tables)

	Target		2012		2011

Domestic equity securities	53	%	56	%	59	%
International equity securities	15	%	14	%	14	%
Debt securities	22	%	19	%	17	%
Real estate	10	%	5	%	6	%
Other and cash	—		6	%	4	%
Total	100	%	100	%	100	%

The fair values of the Company’s pension plan assets at December 31, 2012 and 2011, by asset category, are as follows (in millions):

	Fair Value Measurements at
	December 31, 2012
Asset Category	Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	8.3	$	8.3	$	—	$	—
Equity securities:
U.S. large-cap	53.8		53.8		—		—
U.S. mid- and small-cap	29.8		29.8		—		—
International large-cap	16.7		16.7		—		—
International small-cap	4.3		4.3		—		—
Fixed income securities:
U.S. Treasuries	0.8		—		0.8		—
Municipal bonds	0.2		—		0.2		—
Investment grade U.S. corporate bonds	2.0		—		2.0		—
High-yield U.S. corporate bonds	6.4		—		6.4		—
Emerging markets fixed income	4.3		4.3		—		—
Mortgage-backed securities	14.0		—		14.0		—
Other types of investments:
Real estate partnership interests	7.8		—		—		7.8
Private equity partnership interests (a)	0.8		—		—		0.8
Insurance contracts	—		—		—		—
Total	$	149.2	$	117.2	$	23.4	$	8.6

	Fair Value Measurements at
	December 31, 2011
Asset Category	Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	5.1	$	5.1	$	—	$	—
Equity securities:
U.S. large-cap	50.2		50.2		—		—
U.S. mid- and small-cap	15.6		15.6		—		—
International large-cap	13.6		13.6		—		—
International mid-cap	11.2		11.2		—		—
Fixed income securities:
U.S. Treasuries	0.3		—		0.3		—
Municipal bonds	0.1		—		0.1		—
Investment grade U.S. corporate bonds	1.5		—		1.5		—
High-yield U.S. corporate bonds	4.7		—		4.7		—
Mortgage-backed securities	15.1		—		15.1		—
Other types of investments:
Real estate partnership interests	7.1		—		—		7.1
Private equity partnership interests (a)	0.8		—		—		0.8
Insurance contracts	0.7		—		—		0.7
Total	$	126.0	$	95.7	$	21.7	$	8.6

(a) This category represents private equity funds that invest principally in U.S. technology companies.

The table below presents a reconciliation of all pension plan investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2012 and 2011 (in millions):

	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Real Estate			Private Equity			Insurance			Total
Beginning balance, December 31, 2010	$	6.3		$	0.9		$	0.5		$	7.7
Actual return (loss) on plan assets:
Assets held at the reporting date	0.9			0.1			—			1.0
Assets sold during the period	0.2			—			—			0.2
Purchases, sales and settlements, net	(0.3		)	(0.2		)	0.2			(0.3		)
Beginning balance, December 31, 2011	7.1			0.8			0.7			8.6
Actual return (loss) on plan assets:
Assets held at the reporting date	1.6			0.1			—			1.7
Assets sold during the period	(0.2		)	0.3			—			0.1
Purchases, sales and settlements, net	(0.7		)	(0.4		)	(0.7		)	(1.8		)
Ending balance, December 31, 2012	$	7.8		$	0.8		$	—		$	8.6

The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2012 and 2011 are shown below (in millions):

	Pension Benefits						Other Post-retirement Benefits
	2012			2011			2012			2011

Change in Benefit Obligation
Benefit obligation at beginning of year	$	192.6		$	189.8		$	48.5		$	51.8
Service cost	2.7			5.4			1.0			0.9
Interest cost	9.0			10.7			2.3			3.0
Plan participants’ contributions	—			—			1.3			1.2
Actuarial (gain) loss	14.9			20.7			(0.6		)	(4.7		)
Benefits paid	(9.1		)	(9.2		)	(3.3		)	(3.7		)
Amendments/Curtailments	—			(24.8		)	—			—
Benefit obligation at end of year	$	210.1		$	192.6		$	49.2		$	48.5

Change in Plan Assets
Fair value of plan assets at beginning of year	$	126.0		$	137.9		$	—		$	—
Actual return on plan assets	19.0			(7.1		)	—			—
Employer contributions	13.3			4.4			—			—
Benefits paid	(9.1		)	(9.2		)	—			—
Fair value of plan assets at end of year	149.2			126.0			—			—
Funded Status and Recognized Liability	$	(60.9	)	$	(66.6	)	$	(49.2	)	$	(48.5	)

Amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss at December 31, 2012 and 2011 were as follows (in millions):

	Pension Benefits						Other Post-retirement Benefits
	2012			2011			2012			2011

Current liabilities	$	—		$	—		$	(2.1	)	$	(2.1	)
Non-current liabilities	(60.9		)	(66.6		)	(47.1		)	(46.4		)
Total	$	(60.9	)	$	(66.6	)	$	(49.2	)	$	(48.5	)

Net loss (gain) (net of taxes)	$	55.8		$	56.1		$	0.7		$	0.6
Prior service cost (net of taxes)	(13.4		)	(14.8		)	0.1			0.1
Total	$	42.4		$	41.3		$	0.8		$	0.7

The information for qualified pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2012 and 2011 is shown below (in millions):

	2012		2011
Projected benefit obligation	$	210.1	$	192.6
Accumulated benefit obligation	$	209.6	$	191.9
Fair value of plan assets	$	149.2	$	126.0

Components of the net periodic benefit cost and other amounts recognized in other comprehensive loss for the qualified pension plans and the post-retirement health care and life insurance benefit plans during 2012, 2011, and 2010, are shown below (in millions):

	Pension Benefits									Other Post-retirement Benefits
	2012			2011			2010			2012			2011			2010
Components of Net Periodic Benefit Cost
Service cost	$	2.7		$	5.4		$	4.6		$	1.0		$	0.9		$	0.7
Interest cost	9.0			10.7			10.3			2.3			3.0			2.6
Expected return on plan assets	(10.7		)	(11.1		)	(9.7		)	—			—			—
Amortization of net loss (gain)	7.0			4.0			3.5			0.6			1.9			0.4
Amortization of prior service cost	(2.3		)	0.1			0.1			0.1			0.2			0.2
Recognition of loss due to settlement	—			—			—			—			—			—
Net periodic benefit cost	$	5.7		$	9.1		$	8.8		$	4.0		$	6.0		$	3.9

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
Net loss (gain)	$	4.0		$	23.8		$	3.6		$	(0.4	)	$	(2.5	)	$	3.9
Amortization of unrecognized (loss) gain	(4.2		)	(2.4		)	(2.1		)	(0.3		)	(1.0		)	(0.2		)
Prior service (credit) cost	—			(15.1		)	—			—			—			—
Amortization of prior service cost	1.4			(0.1		)	(0.1		)	—			(0.1		)	(0.1		)
Total recognized in other comprehensive income	1.2			6.2			1.4			(0.7		)	(3.6		)	3.6
Total recognized in net periodic benefit cost and other comprehensive income	$	6.9		$	15.3		$	10.2		$	3.3		$	2.4		$	7.5

	Pension Benefits						Other Post-retirement Benefits
	2012		2011		2010		2012		2011		2010
Weighted Average Assumptions:
Discount rate	4.2	%	4.8	%	5.8	%	4.3	%	4.9	%	5.8	%
Expected return on plan assets	8.3	%	8.3	%	8.3	%
Rate of compensation increase	3.0	%	4.0	%	4.0	%	3.0	%	4.0	%	4.0	%
Initial health care cost trend rate							8.0	%	9.0	%	10.0	%
Ultimate rate							4.5	%	5.0	%	5.0	%
Year ultimate rate is reached							2020		2016		2016

If the assumed health care cost trend rate were increased or decreased by one percentage point, the accumulated post-retirement benefit obligation, as of December 31, 2012, 2011, and 2010 and the net periodic post-retirement benefit cost for 2012, 2011 and 2010, would have increased or decreased as follows (in millions):

	Other Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
	2012		2011		2010		2012			2011			2010

Effect on total of service and interest cost components	$	0.6	$	0.6	$	0.5	$	(0.4	)	$	(0.5	)	$	(0.4	)
Effect on post-retirement benefit obligation	$	6.5	$	6.6	$	7.1	$	(5.2	)	$	(5.3	)	$	(5.7	)

The estimated future benefit payments for the next ten years are as follows (in millions):

	Qualified
	Pension		Non-qualified		Post-retirement
Year	Benefits		Pension Benefits		Benefits (1)

2013	$	10.5	$	0.8	$	2.2
2014	11.0		3.3		2.3
2015	11.4		0.6		2.4
2016	11.7		0.8		2.4
2017	12.0		0.2		2.5
2018-2022	$	64.2	$	1.6	$	13.0

(1) Net of plan participants’ contributions and Medicare D subsidies.

The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.

Pension Protection Act
Zone Status as of December

FIP/RP
Status

Contributions of Matson

Expiration
Date of
Collective

EIN/Pension

31,

Pending/

($ in millions)

Surcharge

Bargaining

Pension Fund

Plan Number

2012

2011

Implemented

2012

2011

2010

Imposed

Agreement

Hawaii Stevedoring Multiemployer Retirement Plan

99-0314293/001

Yellow

Implemented

2.4

2.2

2.0

6/30/2014

Master, Mates and Pilots

13-6372630/001

Green

None

3.4

3.0

2.9

8/15/2023, 8/15/2018

Hawaii Terminals Multiemployer Pension Plan

20-0389370/001

Yellow

Implemented

5.1

5.2

6/30/2014

MEBA Pension Trust

51-6029896/001

Green

None

2.1

—

8/15/2018

OCU Trust Pension

26-1574440/001

Green

None

0.1

6/30/2013

Other Plans

Green

—

Total

13.1

10.5

10.2

Matson was listed in its plans’ Forms 5500 as providing more than five percent of the total contributions for the following plans and plan years:

Pension Plan		Exceeded More than 5 Percent of Total Contributions (as of December 31 of the Plan’s Year- End)
Hawaii Stevedoring Multiemployer Pension Plan		2012, 2011 and 2010
Hawaii Terminals Multiemployer Pension Plan		2012, 2011 and 2010
Masters, Mates and Pilots Pension Plan*		2011 and 2010

* As of the date the financial statements were issued, Form 5500s were not available for the plan years ending in 2012 for this and other plans.