Commitments, Guarantees and Contingencies:

3 Months Ended

Mar. 31, 2013

Commitments, Guarantees and Contingencies:

Commitments, Guarantees and Contingencies:

(4) Commitments, Guarantees and Contingencies:  Commitments and financial arrangements at March 31, 2013, included the following (in millions):

Standby letters of credit (a)	$	6.8
Performance and customs bonds (b)	$	20.5
Benefit plan withdrawal obligations (c)	$	102.1

These amounts are not recorded on the Company’s Condensed Consolidated Balance Sheet and it is not expected that the Company or its subsidiaries will be called upon to advance funds under these commitments.

(a) Includes approximately $5.6 million in letters of credit which are required for the Company’s self-insured workers’ compensation programs and its other insurance programs, and approximately $1.2 million in letters of credit used to support various credit enhancement needs.

(b) Consists of approximately $19.3 million in U.S. Customs bonds, and approximately $1.2 million related to transportation and other matters.

(c) Represents the withdrawal liabilities as of the most recent valuation dates for multiemployer pension plans, in which Matson is a participant. Management has no present intention of withdrawing from, and does not anticipate the termination of, any of the aforementioned plans.

Environmental Matters:  As with most transportation companies of its size, the Company’s shipping 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 in compliance, in all material respects, with applicable environmental laws and regulations.

Other Contingencies:  On April 21, 2008, Matson was served with a grand jury subpoena from the U.S. District Court for the Middle District of Florida for documents and information relating to water carriage in connection with the Department of Justice’s investigation into the pricing and other competitive practices of carriers operating in the domestic trades.  Matson understands that while the investigation originally was focused on the Puerto Rico trade, it also includes pricing and other competitive practices in all domestic trades, including the Alaska, Hawaii and Guam trades.  Matson does not operate vessels in the Puerto Rico and Alaska trades.  It does operate vessels in the Hawaii and Guam trades.  Matson cooperated fully with the Department of Justice.  On March 28, 2013, the Department of Justice notified Matson that the Company is no longer under investigation.

Matson and its subsidiaries are parties to, or may be contingently liable in connection with, other legal actions arising in the normal conduct of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on Matson’s consolidated financial statements.