BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2015

BUSINESS COMBINATION

Schedule of total consideration paid

(in millions)	Total Consideration
Common shares	$	29.4
Warrants	37.1
Horizon’s debt (including accrued interest and breakage fees)	428.9
Total	$	495.4

Schedule of purchase price allocation

Purchase Price Allocation (in millions)	Total
Cash and cash equivalents	$	0.8
Accounts receivable	31.7
Other current assets	7.2
Deferred tax assets, net	45.6
Property and equipment	170.4
Intangibles - Customer relationships	140.0
Other long-term assets	4.1
Accounts payable	(22.8		)
Accruals and other current liabilities	(32.1		)
Multi-employer withdrawal liability	(60.6		)
Capital lease obligations	(1.6		)
Horizon’s debt and warrants	(467.5		)
Total identifiable assets less liabilities	(184.8		)
Total cash paid for common shares	(29.4		)
Goodwill	$	214.2

Schedule of pro forma financial information

	(Unaudited)
	Year Ended
	December 31,
(in millions, except per-share amount)	2015		2014
Pro Forma Combined:
Operating revenue	$	2,019.7	$	2,045.1
Net income from continuing operations	$	100.2	$	61.7
Basic Earnings Per Share:	$	2.30	$	1.43
Diluted Earnings Per Share:	$	2.28	$	1.42
Weighted Average Number of Shares Outstanding:
Basic	43.5		43.0
Diluted	44.0		43.4

The following is a summary of the pro-forma adjustments to the Combined Consolidated Statement of Operations:

(1) Eliminate operating revenue and net income related to Horizon’s Hawaii operations to reflect the Pasha Transaction.

(2) Eliminate Horizon’s interest expense due to the repayment of Horizon’s debt, and record interest expense based upon an estimated Company borrowings.

(3) Record additional depreciation and amortization expense due to increase in fair value of the acquired tangible and intangible assets.

(4) Record adjustment to income tax expense based upon Matson’s estimated income tax rate.

(5) Record adjustments for certain acquisition related expenses.