INVESTMENT IN TERMINAL JOINT VENTURE

12 Months Ended

Dec. 31, 2012

INVESTMENT IN TERMINAL JOINT VENTURE

INVESTMENT IN TERMINAL JOINT VENTURE

3.             INVESTMENT IN TERMINAL JOINT VENTURE

The Company has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”) through a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc.  SSAT provides terminal and stevedoring services to numerous international carriers at six terminal facilities on the U.S. Pacific Coast and to MatNav at several of those facilities.  Matson accounts for its interest in SSAT under the equity method of accounting.  Matson records its share of income in the joint venture in operating expenses within the ocean transportation segment, due to operations of the joint venture being an integral part of the Company’s business.

No dividends and distributions from the unconsolidated joint venture were received in 2012.  Dividends from the unconsolidated terminal venture totaled $5.3 million and $7.0 million for each of the years ended December 31, 2011 and 2010, respectively.   The cost of ocean transportation services included approximately $163.8 million, $175.2 million, and $157.3 million for 2012, 2011, and 2010, respectively, paid to SSAT for terminal services.

Operating results include the Company’s proportionate share of net income from SSAT. A summary of financial information for SSAT at December 31 is as follows (in millions):

	2012		2011
Current assets	$	90.8	$	90.0
Noncurrent assets	139.2		118.7
Total assets	$	230.0	$	208.7
Current liabilities	$	55.9	$	41.3
Noncurrent liabilities	14.7		17.3
Total liabilities	$	70.6	$	58.6

	Year Ended December 31,
	2012			2011		2010
Operating revenue	$	503.9		$	578.6	$	568.5
Operating costs and expenses	506.4			571.7		548.1
Operating (loss) income	$	(2.5	)	$	6.9	$	20.4
Income from continuing operations*	$	9.5		$	26.3	$	35.9
Net income	$	9.5		$	26.3	$	35.9
Company’s share of net income	$	3.2		$	8.6	$	12.8

* Includes earnings from equity method investments held by the investee