Matson Inc
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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6. Goodwill and Intangible Assets
| 6. | GOODWILL AND INTANGIBLE ASSETS |
Goodwill by segment consists of the following as of December 31, 2023 and 2022:
| · · · · · · · · · | ||||||
|---|---|---|---|---|---|---|
| · · Ocean · · · · · · | ||||||
| (In millions) · Transportation · Logistics · Total | ||||||
| Goodwill | | $222.6 | | $105.2 | | $327.8 |
Ocean Transportation goodwill of $222.6 million includes $221.8 million related to the acquisition of Horizon Lines, Inc. (“Horizon”) in May 2015. Logistics goodwill of$105.2 million includes $78.6 million related to the acquisition of Span Intermediate, LLC (“Span Alaska”) in August 2016 that was allocated to the Span Alaska reporting unit, and $26.6 million of other Logistics acquisitions that were allocated to the Logistics reporting unit.
Intangible assets by segment consist of the following as of December 31, 2023 and 2022:
| | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · As of December 31, 2023 · · As of December 31, 2022 | ||||||||||||||||||||
| · · Gross · · Accumulated · · · · · Gross · · Accumulated · · · | ||||||||||||||||||||
| (In millions) · Amount · Amortization · Net Book Value · Amount · Amortization · Net Book Value | ||||||||||||||||||||
| Ocean Transportation - Customer relationships | | $140.6 | | $57.9 | | $82.7 | | | $140.6 | | $51.2 | | $89.4 | | ||||||
| Logistics: | | | | | | | | | | | | | | | | | | | | |
| Customer relationships | | | 110.4 | | | 44.0 | | | 66.4 | | | | 95.3 | | | 37.1 | | | 58.2 | |
| Trade name | | 27.3 | | | — | | | 27.3 | | | 27.3 | | | — | | | 27.3 | | ||
| Total Logistics | | 137.7 | | | 44.0 | | | 93.7 | | | 122.6 | | | 37.1 | | | 85.5 | | ||
| Total | | $278.3 | | $101.9 | | $176.4 | | | $263.2 | | $88.3 | | $174.9 | | ||||||
In February 2023, the Company completed an asset acquisition consisting of customer relationship intangible assets for $16.5 million, which are being amortized over seven years.
Ocean Transportation intangible assets of $140.6 million relate to customer relationships acquired as part of the acquisition of Horizon, and are being amortized over 21 years. Logistics intangible assets include$79.3 million of customer relationships which are being amortized over 20 years, and $27.3 million of an indefinite life trade name, both
acquired as part of the Span Alaska acquisition. The remaining Logistics customer relationships relate to various acquisitions and are being amortized over a period of 3 to 13 years.
Intangible assets related amortization expense for the years ended December 31, 2023, 2022 and 2021, are as follows:
| · · · · · · · · · · | |||||||
|---|---|---|---|---|---|---|---|
| · · Years Ended December 31, | |||||||
| (In millions) · 2023 · 2022 · 2021 | |||||||
| Amortization expense | | $13.6 | | $11.4 | | $10.9 | |
As of December 31, 2023, estimated amortization expense related to customer relationship intangible assets during the next five years and thereafter are as follows:
| · · · · | |||
|---|---|---|---|
| | | Customer | |
| Year (in millions) · · Relationships | |||
| 2024 | | $14.3 | |
| 2025 | | 13.6 | |
| 2026 | | 13.0 | |
| 2027 | | 13.0 | |
| 2028 | | 13.0 | |
| Thereafter | | 82.2 | |
| Total | | $149.1 | |
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