Accounting for and Classification of Discontinued Operations:

3 Months Ended

Mar. 31, 2013

Accounting for and Classification of Discontinued Operations:

Accounting for and Classification of Discontinued Operations:

(3) Accounting for and Classification of Discontinued Operations: As required by the Financial Accounting Standards Board (“FASB”) ASC Subtopic 205-20, Discontinued Operations, the termination of certain income-producing assets are classified as discontinued operations if (i) the operations and cash flows of the component have been, or will be, eliminated from the ongoing operations of the Company as a result of the disposal transaction, and (ii) the Company will not have any significant continuing involvement in the operations of the component after the disposal transaction.  Discontinued operations include the results for the business lines that were terminated through March 31, 2013.  Operating results included in the Consolidated Statements of Income and Comprehensive Income, Statement of Cash Flows and the segment results (Note 12) for the three months ended March 31, 2012, have been restated to reflect the termination of segments that were classified as discontinued operations.

The Separation was completed on June 29, 2012.  In the Separation, the shareholders of Holdings received one share of common stock of A&B for every share of Holdings held of record as of June 18, 2012.  Immediately following the Separation, Alexander & Baldwin Holdings, Inc. changed its name to Matson, Inc.  Refer to Note 1 for further description of the Separation Transaction.

In the third quarter of 2011, the Company terminated its second China Long Beach Express Service (“CLX2”), due to the longer-term outlook for sustained high fuel prices and increasingly volatile Transpacific rates.  As of the termination date, the Company had established and approved plans to (i) return to the lessors or sub-charter the five vessels used in the service (ii) off-hire or dispose of certain excess container equipment and (iii) terminate office contracts and employees. These plans were substantially completed as of September 30, 2011; however, the off-hiring of excess leased containers continued through 2012 and into 2013, and two of the five ships were offered for sub-charter until they were returned to the lessors in July 2012.  The remaining three ships were returned to the lessors as of September 30, 2011 pursuant to the terms of the one-year charter contracts.  The Company does not expect to incur any additional material losses from the discontinued operations of CLX2 and as of March 31, 2013, had no future liability. Income (losses) from discontinued operations consisted of the following (in millions):

	Three Months Ended
	March 31,
	2013		2012
Discontinued operations, net of tax:
Income from A&B	$	—	$	41.1
Expenses from A&B	—		(38.2		)
Tax benefit from A&B	—		0.3
Income from A&B	—		3.2
Expenses from CLX2	—		(2.2		)
Tax benefit from CLX2	—		0.8
Income from discontinued operations, net of tax	$	—	$	1.8