XML 105 R35.htm IDEA: XBRL DOCUMENT

PENSION AND POST-RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of the Company's target and actual asset allocations


Asset Categories	Target		2019		2018
Domestic equity securities	53	%	59	%	57	%
International equity securities	15	%	17	%	16	%
Debt securities	22	%	17	%	19	%
Real estate	5	%	6	%	7	%
Other and cash	5	%	1	%	1	%
Total	100	%	100	%	100	%

Schedule of the Company's actual return on plan assets


Actual Return on Plan Assets	Returns
One-year return	22.5	%
Three-year return	9.5	%
Five-year return	6.9	%
Long-term average return (since plan inception in 1989)	8.4	%

Schedule of the fair values of the Company's pension plan assets, by asset category

The fair values of the Company’s pension plan assets at December 31, 2019 and 2018 by asset category, were as follows:


	Fair Value Measurements at December 31, 2019
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.3	$	6.3	$	—	$	—
Equity securities:
U.S. large-cap		62.4		23.7		38.7		—
U.S. mid- and small-cap		49.6		33.9		15.7		—
International large-cap		6.6		—		6.6		—
Fixed income securities:
U.S. Treasuries		14.1		—		14.1		—
Investment grade U.S. corporate bonds		18.2		—		18.2		—
High-yield U.S. corporate bonds		0.1		—		0.1		—
Total		157.3	$	63.9	$	93.4	$	—
Investment measured at NAV (1)		37.5
Total plan assets	$	194.8


	Fair Value Measurements at December 31, 2018
			Quoted Prices in		Significant		Significant
			Active Markets		Observable		Unobservable
Asset Category (in millions)	Total		(Level 1)		Inputs (Level 2)		Inputs (Level 3)
Cash	$	6.2	$	6.2	$	—	$	—
Equity securities:
U.S. large-cap		50.6		24.9		25.7		—
U.S. mid- and small-cap		38.4		25.8		12.6		—
International large-cap		5.5		—		5.5		—
Fixed income securities:
U.S. Treasuries		8.0		—		8.0		—
Municipal bonds		0.1		—		0.1		—
Investment grade U.S. corporate bonds		20.8		—		20.8		—
High-yield U.S. corporate bonds		0.5		—		0.5		—
Total		130.1	$	56.9	$	73.2	$	—
Investment measured at NAV (1)		32.2
Total plan assets	$	162.3

(1)	Real estate and private equity funds for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total plan assets.

Schedule of change in benefit obligation and plan assets

The status of the funded qualified defined benefit pension plans and the unfunded post-retirement benefit plans at December 31, 2019 and 2018 are shown below:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2019		2018		2019		2018
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	217.4	$	232.1	$	22.2	$	27.7
Service cost		4.7		4.4		0.4		0.6
Interest cost		9.3		8.6		0.9		1.0
Plan participants’ contributions		—		—		0.8		0.9
Actuarial (gain) loss		22.2		(14.1)		3.4		(6.2)
Benefits paid, net of subsidies received		(12.2)		(12.0)		(1.7)		(1.8)
Expenses paid		(1.5)		(1.6)		—		—
Benefit obligation at end of year		239.9		217.4		26.0		22.2

Change in Plan Assets:
Fair value of plan assets at beginning of year		162.2		186.7		—		—
Actual return on plan assets		36.3		(10.9)		—		—
Plan participants’ contributions		—		—		0.8		0.9
Employer contributions		10.0		—		0.9		0.9
Benefits paid, net of subsidies received		(12.2)		(12.0)		(1.7)		(1.8)
Expenses paid		(1.5)		(1.6)		—		—
Fair value of plan assets at end of year		194.8		162.2		—		—
Funded Status and Recognized Liability	$	(45.1)	$	(55.2)	$	(26.0)	$	(22.2)

Schedule of amounts recognized on the consolidated balance sheets and in accumulated other comprehensive loss

Qualified pension and post-retirement benefits plans liabilities recognized in the Consolidated Balance Sheets and expenses recognized in accumulated other comprehensive income (loss) at December 31, 2019 and 2018 were as follows:


					Post-retirement
	Pension Benefits				Benefits
	December 31,				December 31,
(In millions)	2019		2018		2019		2018
Non-current assets	$	1.0	$	0.8	$	—	$	—
Current liabilities		—		—		(1.0)		(1.2)
Non-current liabilities, net		(46.1)		(56.0)		(25.0)		(21.0)
Total	$	(45.1)	$	(55.2)	$	(26.0)	$	(22.2)

Net loss, net of taxes	$	(56.2)	$	(61.8)	$	(2.8)	$	(0.1)
Prior service credit, net of taxes		4.3		6.0		19.1		21.8
Total	$	(51.9)	$	(55.8)	$	16.3	$	21.7

Schedule of information for qualified pension plans with an accumulated benefit obligation in excess of plan assets

The information for qualified defined benefit pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2019 and 2018 is shown below:


(In millions)	2019		2018
Projected benefit obligation	$	238.3	$	215.9
Accumulated benefit obligation	$	237.9	$	215.6
Fair value of plan assets	$	192.2	$	159.9

Schedule of components of the net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income

Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the qualified pension plans and the post-retirement benefit plans during 2019, 2018 and 2017 were as follows:


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
(In millions)	2019		2018		2017		2019		2018		2017
Components of Net Periodic Benefit Cost (Benefit):
Service cost	$	4.7	$	4.4	$	4.0	$	0.4	$	0.6	$	0.5
Interest cost		9.3		8.6		9.7		0.9		1.0		1.1
Expected return on plan assets		(11.9)		(13.5)		(13.5)		—		—		—
Amortization of net loss		5.2		4.6		5.1		(0.1)		1.5		1.2
Amortization of prior service credit		(2.3)		(2.3)		(2.3)		(3.8)		(3.8)		(3.8)
Net periodic benefit cost		5.0		1.8		3.0		(2.6)		(0.7)		(1.0)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, net of tax:
Net loss (gain)		(1.7)		7.8		0.8		2.5		(4.7)		1.1
Amortization of net (loss) gain		(3.9)		(3.5)		(3.1)		0.2		(1.1)		(0.7)
Amortization of prior service credit		1.7		1.7		1.4		2.8		2.8		2.3
Total recognized in other comprehensive (income) loss		(3.9)		6.0		(0.9)		5.5		(3.0)		2.7
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	1.1	$	7.8	$	2.1	$	2.9	$	(3.7)	$	1.7

Schedule of weighted average assumptions used to determine benefit information


	Pension Benefits						Post-retirement Benefits
	December 31,						December 31,
	2019		2018		2017		2019		2018		2017
Discount rate (1)	3.40	%	4.40	%	3.80	%	3.50	%	4.50	%	3.90	%
Expected return on plan assets	7.50	%	7.50	%	7.75	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%	3.00	%
Initial health care cost trend rate:
Pre-65 group							5.70	%	6.00	%	6.30	%
Post-65 group							5.90	%	6.30	%	6.80	%
Ultimate health care cost trend rate							4.40	%	4.40	%	4.40	%
Year ultimate health care cost trend rate is reached:
Pre-65 group							2037		2037		2037
Post-65 group							2036		2036		2036

(1)	The Company derives a single equivalent rate utilizing a yield curve constructed from a portfolio of high-quality corporate bonds with various maturities.

Schedule of effect of one percentage point increase or decrease in other post-retirement benefits


	Post-retirement Benefits
	One Percentage Point
	Increase						Decrease
(In millions)	2019		2018		2017		2019		2018		2017
Effect on total of service cost and interest cost components	$	0.2	$	0.3	$	0.3	$	(0.2)	$	(0.2)	$	(0.2)
Effect on post-retirement benefit obligation	$	3.3	$	2.6	$	4.0	$	(2.6)	$	(2.0)	$	(3.0)

Schedule of amounts recognized on balance sheet and accumulated comprehensive income


	Non-qualified
	Pension Benefits
	December 31,
(In millions)	2019		2018
Current liabilities	$	(2.1)	$	(1.8)
Non-current liabilities, net		(2.3)		(2.4)
Total	$	(4.4)	$	(4.2)

Net loss, net of taxes	$	(0.6)	$	(0.4)
Prior service credit, net of taxes		0.2		0.3
Total	$	(0.4)	$	(0.1)

Schedule of estimated benefit payments



			Non-qualified
	Pension		Pension		Post-retirement
Year (in millions)	Benefits		Benefits		Benefits (1)
2020	$	13.6	$	2.2	$	1.0
2021		13.9		—		1.0
2022		14.2		—		1.1
2023		14.6		2.1		1.2
2024		14.7		—		1.2
2025-2029		76.2		0.5		5.7
Total	$	147.2	$	4.8	$	11.2

(1)	Net of plan participants’ contributions and Medicare Part D subsidies.

Schedule of information regarding the entity's participation in the multi-employer pension plans

Pension

Protection Act

Zone as of

FIP/RP Status

Contributions of Matson

EIN/Pension

December 31,

Pending/

(in millions)

Surcharge

Expiration

Pension Funds

Plan Number

Notes

2019

2018

Implemented

Contributor

2019

2018

2017

Imposed

Date (3)

American Radio Association Pension Fund

13-6161999-001

Green

Implemented

Yes

1.1

1.0

6/15/2028

Hawaii Terminals Multiemployer Pension Plan

20-0389370-001

Orange

Yellow

Implemented

Yes

5.7

6/30/2022

Hawaii Stevedoring Multiemployer Retirement Plan

99-0314293-001

Yellow

Implemented

Yes

4.4

4.3

3.8

6/30/2022

Master, Mates and Pilots Pension Plan

13-6372630-001

Green

Yes

3.4

3.0

6/15/2027,

6/15/2028

Masters, Mates and Pilots Adjustable Pension Plan

37-1719247-001

(1)

Yes

1.9

1.7

6/15/2027,

6/15/2028

MEBA Pension Trust - Defined Benefit Plan

51-6029896-001

Green

Yes

4.3

4.0

4.4

6/15/2022,

6/15/2028

OCU Trust Pension Plan

26-1574440-001

Green

0.2

6/30/2023

MFOW Supplementary Pension Plan

94-6201677-001

Green

Yes

0.1

—

6/30/2021

SIU Pacific District Pension Plan

94-6061923-001

Green

Yes

1.5

1.2

0.7

6/30/2021

Alaska Teamster - Employer Pension Plan

92-6003463-024

Red

Implemented

Yes

1.9

2.4

Yes

6/30/2020,

6/30/2021,

6/30/2022,

6/30/2023

All Alaska Longshore Pension Plan

91-6085352-001

Green

Yes

1.2

1.0

0.1

6/30/2020

Western Conference of Teamsters Pension Plan

91-6145047-001

Green

1.5

1.4

1.3

3/31/2023

Western Conference of Teamsters Supplemental Benefit Trust

95-3746907-001

Green

—

3/31/2023

OPEIU Local 153 Pension Plan

13-2864289-001

Red

Implemented

0.1

11/09/2020

Seafarers Pension Trust

13-6100329-001

(2)

Green

—

6/30/2022

Total

27.3

25.5

24.4

(1)	The Plan is not subject to the PPA funding requirements under IRS Section 432 as the Plan was not in effect on July 16, 2006.

(2)	The Company does not make contributions directly to the Seafarers Pension Plan. Instead, contributions are made to the Seafarers Health and Benefits Plan, and are subsequently re-allocated to the Seafarers Pension Plan at the discretion of the plan Trustee.

(3)	Represents the expiration date of the collective bargaining agreement.