XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.10.0.1

LEASES | 12 Months Ended
--- | ---
Dec. 31, 2018
LEASES |
LEASES | 9.LEASES The Company has a variety of different types of operating leases, the specific terms and conditions of which vary from lease to lease. Certain operating lease agreements include terms such as (i) renewal and early termination options; (ii) early buy-out and purchase options; and (iii) rent escalation clauses. The lease agreements also include provisions for the maintenance of the leased asset and payment of lease related costs. The Company reviews the specific terms and conditions of each lease and, as appropriate, notifies the lessor of any intent to exercise any option in accordance with the terms of the lease. In the normal course of business, the Company expects to be able to renew or replace most of its operating leases by other similar leases as they expire. Except for the vessel lease guaranty described below, the Company’s leases do not contain any residual value guarantees. The lease type and estimated maximum terms of the Company’s operating leases are as following:
Lease Type: |  | Life
Real estate and terminal leases |  | 65 years
Vessel charter leases |  | 10 years
Operations equipment and other leases |  | 8 years
Rent expense recorded in costs and expenses in the Consolidated Statements of Income and Comprehensive Income from operating leases and other non-lease agreements are as follows:
|  | Years Ended December 31, |
(In millions) |  | 2018 |  | 2017 |  | 2016 |
Real estate and terminal leases |  | $ | 25.6 |  | $ | 26.4 |  | $ | 25.4 |
Vessel charter leases |  |  | 21.4 |  |  | 21.4 |  |  | 16.4 |
Operations equipment and other leases |  |  | 26.8 |  |  | 26.0 |  |  | 27.9 |
Other rent expense |  |  | 68.1 |  |  | 54.9 |  |  | 49.9 |
Total |  | $ | 141.9 |  | $ | 128.7 |  | $ | 119.6 |
Future minimum payments under operating lease agreements at December 31, 2018 are as follows:
Year (in millions) |  | Total
2019 |  | $ | 68.3
2020 |  |  | 59.2
2021 |  |  | 44.8
2022 |  |  | 34.7
2023 |  |  | 30.5
Thereafter |  |  | 83.6
Total minimum lease payments |  | $ | 321.1
Vessel Charter and Buyer-Lessor Guaranty Vessel Charter: On November 26, 2018, a wholly-owned subsidiary of the Company entered into agreements whereby a vessel, MV Maunalei, owned by the subsidiary, was sold for $106.0 million and subsequently leased back from the buyer-lessor under a Bareboat Charter Agreement (the “Charter”). The transaction qualified for sale and leaseback treatment under ASC 840, Leases, with the Charter treated as an operating lease for accounting purposes. Lease payments are approximately $3.0 million per quarter, and the base term of the Charter is five years with a two year end-of-term renewal option. Total future minimum lease payments were $59.9 million at December 31, 2018, and are included in the future minimum payments table above. The Company recorded a net deferred gain of $2.3 million related to this sale and leaseback during the year ended December 31, 2018, and is included in other long-term liabilities in the Consolidated Balance Sheet. Prior to the expiration of the base term of the Charter, the subsidiary may, at its option, elect to: (i) purchase the vessel at the option price; (ii) exercise the option to renew the Charter for an additional two years; or (iii) remarket the vessel to sell to a third-party on behalf of the buyer-lessor. The purchase option price is $68.9 million after the base term and $58.3 million after the extended term. The Charter also includes a maximum residual value guarantee amount of $50.9 million after five years, or $47.7 million after the extended term. Proceeds from the sale of the vessel reduces the subsidiary’s residual value guarantee. Buyer-Lessor Guaranty: Matson, Inc. provided the buyer-lessor with a guaranty of all obligations of the wholly-owned subsidiary related to the Charter as defined in the guaranty agreement.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration