SHARE-BASED AWARDS (Tables)

12 Months Ended

Dec. 31, 2013

	Years Ended December 31,
	2012		2011
Expected volatility (1)	31.8	%	29.2	%
Expected term (in years) (2)	6.1		6.0
Risk-free interest rate (3)	1.2	%	2.3	%
Dividend yield (4)	2.7	%	3.1	%

(1) Expected volatility was primarily determined using the historical volatility of the Company’s common stock over the expected term, but the Company could also consider future events and other factors that it reasonably concluded marketplace participants might consider.

(2) The expected term of the awards represents expectations of future employee exercise and post-vesting termination behavior and was primarily based on historical experience. The Company analyzed various groups of employees and considers expected or unusual trends that would likely affect this assumption.

(3) The risk free interest rate was based on U.S. Government treasury yields for periods equal to the expected term of the option on the grant date.

(4) The expected dividend yield was based on the Company’s current and historical dividend policy.

Stock Option Activity

Activity in the Company’s stock option plans for the year ended December 31, 2013, was as follows (in thousands, except weighted average exercise price and weighted average contractual life):

									Weighted		Weighted
					1998				Average		Average	Aggregate
	2007		1998		Director		Total		Exercise		Contractual	Intrinsic
	Plan		Plan		Plan		Shares		Price		Life	Value
Outstanding, January 1, 2013	954		253		146		1,353		$	21.15
Granted	—		—		—		—
Exercised	(106	)	(43	)	(6	)	(155	)	$	20.48
Forfeited and expired	(4	)	(2	)	—		(6	)	$	21.05
Outstanding, December 31, 2013	844		208		140		1,192		$	21.24	4.7	$	6,033

Exercisable, December 31, 2013	662		208		140		1,010		$	21.08	4.2	$	5,273

Non-Vested Restricted Stock Unit Activity

The following table summarizes non-vested restricted stock unit activity through December 31, 2013, (in thousands, except weighted average grant-date fair value amounts):

	2007 Plan Restricted Stock Units		Weighted Average Grant- Date Fair Value
Outstanding, January 1, 2013	356		$	17.97
Granted	370		26.66
Exercised	(166	)	21.09
Canceled	(5	)	27.24
Outstanding, December 31, 2013	555		$	25.61

Summary of Compensation Cost and Other Measures Related to Share-Based Payments

A summary of compensation cost related to share-based payments for each of the three years in the period ended December 31, 2013, exclusive of A&B related compensation prior to the Separation, is as follows (in millions):

	Years Ended December 31,
	2013			2012			2011
Share-based expense (net of estimated forfeitures):
Stock options	$	0.4		$	0.9		$	0.8
Non-vested stock and restricted stock units	5.5			3.1			1.9
Total share-based expense	5.9			4.0			2.7
Total recognized tax benefit	(2.2		)	(1.6		)	(0.9		)
Share-based expense (net of tax)	$	3.7		$	2.4		$	1.8

Cash received by Matson upon option exercise	$	1.7		$	3.5		$	2.0
Intrinsic value of options exercised	$	1.1		$	5.2		$	1.1
Tax benefit realized upon option exercise	$	1.7		$	1.5		$	0.4
Fair value of stock vested	$	4.4		$	3.8		$	2.5