XML 47 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
 6 Months Ended
Jun. 30, 2012
Related Party Transactions  
Related Party Transactions

(10)                            Related Party Transaction:  Effective upon the completion of the Separation, Matson ceased to be a related party of the Former Parent Company. Prior to the Separation, transactions with Former Parent Company  were considered related party transactions, as discussed below.

 

Historically, the Company provided vessel management services to A&B for its bulk sugar vessel, the MV Moku Pahu, the income of which is included in ocean transportation. Additionally, the Company expensed operating costs related to a lease for industrial warehouse space in Savannah, Georgia, that is leased from A&B. The Company also recognized the cost for equipment and repair services and other various services provided by A&B in operating costs.

 

The amounts of these related party transactions are as follows (in millions):

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

Vessel management services income

 

$

1.1

 

$

1.0

 

$

2.0

 

$

1.9

 

Lease expense to affiliate

 

 

(1.0

)

 

(1.2

)

 

(2.1

)

 

(2.1

)

Equipment and repair services expense and other

 

 

(0.9

)

 

(0.6

)

 

(1.4

)

 

(1.2

)

Related party expense, net

 

$

(0.8

)

$

(0.8

)

$

(1.5

)

$

(1.4

)

 

Distributions to A&B totaled $151.4 million for the six months ended June 30, 2012 which related to the Separation.  In connection with the Separation, a final net distribution of approximately $4.3 million is expected to occur in the second half of 2012 related to the settlement of certain liabilities of the Former Parent Company.  Proceeds from and distributions to A&B from the issuance of capital stock of $21.7 million for the six months ended June 30, 2012 have been included in the Condensed Consolidated Financial Statements due to Matson being the successor company of the Former Parent Company for accounting purposes.  Contributions from A&B of $26.7 million and $16.3 million for the six months ended June 30, 2012 and 2011, respectively, represent dividends paid by the Former Parent Company to its shareholders prior to the Separation and are reflected in the Condensed Consolidated Financial Statements due to Matson being the successor company of the Former Parent Company for accounting purposes.