What changed in this filing

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Item 1. Financial Statements

2020-11-02 compared with 2020-08-05 · 107 added, 90 removed, 447 unchanged (31% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In millions, except per share amounts)

24 unchanged sentences

Condensed Consolidated Balance Sheets

September 30,

(In millions)

35 unchanged sentences

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

45 unchanged sentences

Capital expenditures included in accounts payable, accruals and other liabilities

Accrued dividends

See Notes to Condensed Consolidated Financial Statements.

16 unchanged sentences

Balance at June 30, 2020

Other comprehensive loss, net of tax

Share-based compensation

Shares issued, net of shares withheld for employee taxes

Balance at September 30, 2020

Comprehensive

13 unchanged sentences

Balance at June 30, 2019

Other comprehensive loss, net of tax

Share-based compensation

Shares issued, net of shares withheld for employee taxes

SSAT̕s adoption of new lease accounting standard

Balance at September 30, 2019

See Notes to Condensed Consolidated Financial Statements.

8 unchanged sentences

Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia.

MatNav also operates a premium, expedited service from China to Long Beach, California, and also provides services to Okinawa, Japan and various islands in the South Pacific.

MatNav also operates two premium, expedited services from China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia.

In addition, subsidiaries of MatNav provide container stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav and other ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in the Alaska locations of Anchorage, Kodiak and Dutch Harbor.

Matson has a 35 percent ownership interest in SSA Terminals, LLC, a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc.

SSAT provides terminal and stevedoring services to various carriers at eight terminal facilities on the U.S.

West Coast, including four facilities dedicated for MatNav’s use.

SSAT provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S.

West Coast, including three facilities dedicated for MatNav’s use.

Matson records its share of income from SSAT in Costs and Expenses in the Condensed Consolidated Statements of Income and Comprehensive Income, and within the Ocean Transportation segment due to the nature of SSAT’s operations.

17 unchanged sentences

Fiscal Period:

The period end for Matson covered by this report is June 30, 2020.

The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in June, or June 26, 2020.

The period end for Matson covered by this report is September 30, 2020.

The period end for MatNav and its subsidiaries covered by this report occurred on the last Friday in September, or September 25, 2020.

Significant Accounting Policies:

23 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Ocean Transportation (in millions) (1)

12 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Logistics (in millions) (1)

4 unchanged sentences

dollars except for less than 3 percent of transportation brokerage and freight forwarding services revenue, and supply chain management and other services revenue categories which are denominated in foreign currencies.

(2) The Company has reclassified $ 3.0 million and $ 6.1 million from transportation brokerage and freight forwarding services to warehouse and distribution services for the three and six months ended June 30, 2019, respectively, to be consistent with its current period presentation.

There was no change in total Logistics revenue for the three and six months ended June 30, 2019.

(2) The Company has reclassified $ 3.9 million and $ 10.0 million from transportation brokerage and freight forwarding services to warehouse and distribution services for the three and nine months ended September 30, 2019, respectively, to be consistent with its current period presentation.

There was no change in total Logistics revenue for the three and nine months ended September 30, 2019.

◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided.

15 unchanged sentences

The Company’s Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

As of June 30, 2020 and December 31, 2019, $ 1.7 million of eligible accounts receivable was assigned to the CCF.

As of September 30, 2020 and December 31, 2019, $ 1.7 million of eligible accounts receivable was assigned to the CCF.

Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets.

Cash on deposit in the CCF is held in a money market account and classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use qualified cash withdrawals to fund long-term investment in the construction of new vessels.

During the three and six months ended June 30, 2020, the Company deposited $ 26.7 million and $ 97.1 million into the CCF, and made qualifying cash withdrawals of $ 26.7 million and $ 97.1 million from the CCF, respectively.

The balance of cash on deposit at June 30, 2020 and December 31, 2019 was nominal.

During the nine months ended September 30, 2020, the Company deposited $ 97.1 million into the CCF, and made qualifying cash withdrawals of $ 97.1 million from the CCF, respectively.

The Company made no qualifying cash deposits or withdrawals during the three months ended September 30, 2020.

The balance of cash on deposit at September 30, 2020 and December 31, 2019 was nominal.

Investment in SSAT:

Condensed income statement information (unaudited) for SSAT for the three and six months ended June 30, 2020 and 2019 consisted of the following:

Condensed income statement information for SSAT for the three and nine months ended September 30, 2020 and 2019 consisted of the following:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In millions)

6 unchanged sentences

(2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations.

The Company’s investment in SSAT was $ 77.5 million and $ 76.2 million at June 30, 2020 and December 31, 2019, respectively.

During the six months ended June 30, 2020, the Company recorded an increase of $ 2.2 million in its investment in SSAT and a corresponding increase in retained earnings related to the formation of a new subsidiary of SSAT, whose controlling interest is retained by SSAT.

The Company’s investment in SSAT was $ 55.2 million and $ 76.2 million at September 30, 2020 and December 31, 2019, respectively.

During the nine months ended September 30, 2020, the Company recorded an increase of $ 2.2 million in its investment in SSAT and a corresponding increase in retained earnings related to the formation of a new subsidiary of SSAT, whose controlling interest is retained by SSAT.

Deferred Loan Fees:

The Company records deferred loan fees, excluding those related to the revolving credit facility, as a reduction to Total Debt in the Company’s Condensed Consolidated Balance Sheets in accordance with Accounting Standards Update (“ASU”) 2015-03, Interest-Imputation of Interest (Subtopic 835-30):

Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”).

Simplifying the Presentation of Debt Issuance Costs .

These costs are being amortized over the life of the related debt using the effective interest method (see Note 6).

1 unchanged sentence

These deferred loan fees are being amortized using the straight-line method as the difference between that and the use of the effective interest method is not material.

These deferred loan fees were $ 2.8 million and $ 1.3 million at June 30, 2020 and December 31, 2019, respectively.

These deferred loan fees were $ 2.5 million and $ 1.3 million at September 30, 2020 and December 31, 2019, respectively.

Contingencies:

4 unchanged sentences

The Company and its subsidiaries are parties to, or may be contingently liable in connection with other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows.

The Company’s second quarter 2020 cash dividend of $ 0.22 per share was paid on June 4, 2020.

On June 25, 2020, the Company’s Board of Directors declared a cash dividend of $ 0.23 per share payable on September 3, 2020.

The Company’s third quarter 2020 cash dividend of $ 0.23 per share was paid on September 3, 2020.

On October 29, 2020, the Company’s Board of Directors declared a cash dividend of $ 0.23 per share payable on December 3, 2020.

New Accounting Pronouncements:

7 unchanged sentences

The impact of this change was not material to the Company’s allowance for doubtful accounts receivable in the Condensed Consolidated Financial Statements.

The Company will continue to monitor the impact of the recent COVID-19 pandemic on expected future credit losses.

The Company will continue to monitor the impact of COVID-19 pandemic on expected future credit losses.

The Company’s accounting policy related to allowance for doubtful accounts receivable is described above.

2 unchanged sentences

The Company adopted ASU 2018-15 on a prospective basis effective January 1, 2020.

During the six months ended June 30, 2020, the Company capitalized costs of $ 1.3 million related to cloud computing arrangements and which were included in other long-term assets on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2020.

During the nine months ended September 30, 2020, the Company capitalized costs of $ 1.9 million related to cloud computing arrangements and which were included in other long-term assets on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2020.

REPORTABLE SEGMENTS

6 unchanged sentences

The Company’s Ocean Transportation segment provides ocean transportation services to the Logistics segment, and the Logistics segment provides logistics services to the Ocean Transportation segment in certain transactions.

Accordingly, inter-segment revenue of $ 24.2 million and $ 25.3 million for the three months ended June 30, 2020 and 2019, and $ 43.6 million and $ 47.1 million for the six months ended June 30, 2020 and 2019, respectively, have been eliminated from operating revenues in the table below.

Reportable segment financial information for the three and six months ended June 30, 2020 and 2019 are as follows:

Accordingly, inter-segment revenue of $ 40.2 million and $ 28.2 million for the three months ended September 30, 2020 and 2019, and $ 83.8 million and $ 75.3 million for the nine months ended September 30, 2020 and 2019, respectively, have been eliminated from operating revenues in the table below.

Reportable segment financial information for the three and nine months ended September 30, 2020 and 2019 are as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In millions)

9 unchanged sentences

Income before Income Taxes

(1) Ocean Transportation operating revenue excludes inter-segment revenue of $ 11.9 million and $ 13.8 million for the three months ended June 30, 2020 and 2019, and $ 21.3 million and $ 25.2 million for the six months ended June 30, 2020 and 2019, respectively.

(2) Logistics operating revenue excludes inter-segment revenue of $ 12.3 million and $ 11.5 million for the three months ended June 30, 2020 and 2019, and $ 22.3 million and $ 21.9 million for the six months ended June 30, 2020 and 2019, respectively.

(3) Ocean Transportation segment information includes $ 3.7 million and $ 0.9 million of equity in income from the Company’s equity investment in SSAT for the three months ended June 30, 2020 and 2019, and $ 7.7 million and $ 9.4 million for the six months ended June 30, 2020 and 2019, respectively.

(1) Ocean Transportation operating revenue excludes inter-segment revenue of $ 22.4 million and $ 14.0 million for the three months ended September 30, 2020 and 2019, and $ 43.7 million and $ 39.2 million for the nine months ended September 30, 2020 and 2019, respectively.

(2) Logistics operating revenue excludes inter-segment revenue of $ 17.8 million and $ 14.2 million for the three months ended September 30, 2020 and 2019, and $ 40.1 million and $ 36.1 million for the nine months ended September 30, 2020 and 2019, respectively.

(3) Ocean Transportation segment information includes $ 7.7 million and $ 8.4 million of equity in income from the Company’s equity investment in SSAT for the three months ended September 30, 2020 and 2019, and $ 15.4 million and $ 17.8 million for the nine months ended September 30, 2020 and 2019, respectively.

PROPERTY AND EQUIPMENT

Property and equipment as of June 30, 2020 and December 31, 2019 consisted of the following:

Property and equipment as of September 30, 2020 and December 31, 2019 consisted of the following:

September 30,

(In millions)

7 unchanged sentences

Vessel construction in progress relates to progress payments for the construction of new vessels, capitalized owner’s items and capitalized interest.

During the six months ended June 30, 2020, the newly constructed vessel Lurline was placed into service resulting in $ 308.2 million, including $ 16.5 million of capitalized interest, being transferred from the Vessel construction in progress category to the Vessels category within Property and Equipment.

Capitalized interest included in Vessel construction in progress was $ 9.1 million and $ 22.0 million at June 30, 2020 and December 31, 2019, respectively.

During the nine months ended September 30, 2020, the newly constructed vessel Lurline was placed into service resulting in $ 308.2 million, including $ 16.5 million of capitalized interest, being transferred from the Vessel construction in progress category to the Vessels category within Property and Equipment.

Capitalized interest included in Vessel construction in progress was $ 11.0 million and $ 22.0 million at September 30, 2020 and December 31, 2019, respectively.

GOODWILL AND INTANGIBLES

Goodwill by segment as of June 30, 2020 and December 31, 2019 consisted of the following:

Goodwill by segment as of September 30, 2020 and December 31, 2019 consisted of the following:

(In millions)

Transportation

Intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following:

Intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following:

September 30,

(In millions)

8 unchanged sentences

The Company considered the deterioration in general economic and market conditions due to the COVID-19 pandemic and its impact on the performance of each of the Company’s reporting units.

Based on the Company’s assessment of its market capitalization, future forecasts and the amount of excess of fair value over the carrying value of the reporting units in the 2019 annual impairment tests, the Company concluded that an impairment triggering event did not occur during the quarter ended June 30, 2020.

The Company will monitor events and changes in circumstances that could negatively impact the key assumptions used in determining the fair value, including the amount and timing of estimated future cash flows generated by the reporting units, long-term growth and discount rates, comparable company market valuations, and industry and economic trends.

1 unchanged sentence

or future changes in the assumptions and estimates used in assessing the fair value of the reporting unit, could require the Company to record a non-cash impairment charge.

As of June 30, 2020 and December 31, 2019, the Company’s debt consisted of the following:

As of September 30, 2020 and December 31, 2019, the Company’s debt consisted of the following:

September 30,

(In millions)

18 unchanged sentences

Total Long-term Debt, net of deferred loan fees

Except as described below, the Company’s debt is described in Note 6 to the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020.

Private Placement Term Loans:

On May 12, 2020, the Company redeemed private placement term loans totaling $ 169.5 million at par out of proceeds from the Company’s revolving credit facility.

2020 Title XI Debt:

On April 27, 2020, MatNav issued $ 185.9 million in U.S.

Government guaranteed vessel financing bonds (Title XI) to partially refinance debt incurred in connection with the construction of Daniel K.

Inouye (the “DKI Title XI Debt”).

A fee of approximately $ 8.7 million was paid to the United States Maritime Administration (“MARAD”) out of the proceeds at closing.

The net proceeds of approximately $ 177 million were used to reduce outstanding debt.

The secured bonds mature on October 15, 2043 and have a cash interest rate of 1.22 percent, payable semi-annually in arrears on April 15 and October 15, commencing on October 15, 2020, together with a principal payment of approximately $ 4.0 million.

On June 22, 2020, MatNav issued $ 139.6 million in U.S.

Government guaranteed vessel financing bonds (Title XI) to partially refinance debt incurred in connection with the construction of Kaimana Hila (together with the DKI Title XI Debt, the “2020 Title XI Debt”).

A fee of approximately $ 6.7 million was paid to MARAD out of the proceeds at closing.

The net proceeds of approximately $ 132.9 million were used to reduce outstanding debt.

The secured bonds mature on March 15, 2044 and have a cash interest rate of 1.35 percent, payable semi-annually in arrears on March 15 and September 15, commencing on September 15, 2020, together with a principal payment of approximately $ 3.0 million.

Under the 2020 Title XI Debt agreements, MARAD has guaranteed the obligation of MatNav.

MatNav has agreed to reimburse MARAD for any payments it makes under the MARAD guarantees and MatNav’s obligations to MARAD are secured by mortgages on the vessels and certain other related assets.

The 2020 Title XI Debt is subject to the debt covenants as described in Note 6 to the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020.

The Company’s debt is described in Note 6 to the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2020 and in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2020.

Revolving Credit Facility:

As of June 30, 2020, the Company had $ 433.2 million of remaining borrowing availability under the revolving credit facility.

The Company used $ 8.1 million of the sublimit for letters of credit outstanding as of June 30, 2020.

Based on the Company’s consolidated net leverage ratio, which stipulates borrowing margins, the interest rate applicable to revolving credit facility was approximately 3.25 percent at June 30, 2020.

As of September 30, 2020, the Company had $ 518.9 million of remaining borrowing availability under the revolving credit facility.

The Company used $ 8.1 million of the sublimit for letters of credit outstanding as of September 30, 2020.

Borrowings under the revolving credit facility are classified as long-term debt in the Condensed Consolidated Balance Sheets, as principal payments are not required until the maturity date of June 29, 2022.

Debt Security and Guarantees:

All of the debt of the Company and MatNav, including related guarantees, as of June 30, 2020 was unsecured, except for the 2020 Title XI Debt and other Title XI debt.

All of the debt of the Company and MatNav, including related guarantees, as of September 30, 2020 was unsecured, except for the Title XI debt.

Debt Maturities:

As of June 30, 2020, debt maturities during the next five years and thereafter are as follows:

As of September 30, 2020, debt maturities during the next five years and thereafter are as follows:

Year (in millions)

June 30, 2020

September 30, 2020

Remainder of 2020

1 unchanged sentence

Deferred loan fees are recorded as a reduction of Total Debt in the Condensed Consolidated Balance Sheets in accordance with Accounting Standards Codification (“ASC”) 835, Imputation of Interest (“ASC 835”) .

Activity relating to deferred loan fees for the six months ended June 30, 2020 are as follows:

Activity relating to deferred loan fees for the nine months ended September 30, 2020 are as follows:

Deferred Loan Fees (in millions)

1 unchanged sentence

Deferred fees expensed related to the redemption of private placement debt

Amortization expense for the six months ended June 30, 2020

Balance at June 30, 2020

As of June 30, 2020, amortization expense relating to deferred loan fees during the next five years and thereafter are as follows:

Amortization expense for the nine months ended September 30, 2020

Balance at September 30, 2020

As of September 30, 2020, amortization expense relating to deferred loan fees during the next five years and thereafter are as follows:

Year (in millions)

3 unchanged sentences

Components of Lease Cost:

Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2020 and 2019 consisted of the following:

Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three and nine months ended September 30, 2020 and 2019 consisted of the following:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In millions)

7 unchanged sentences

The Company subsequently leased back the equipment under a five-year operating lease agreement that includes purchase options exercisable at fair market value.

There were no sale and leaseback transactions during the three months ended June 30, 2020, and during the six months ended June 30, 2019.

There were no sale and leaseback transactions during the second and third quarter of 2020, and during the nine months ended September 30, 2019.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2020 are as follows:

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2020 are as follows:

Comprehensive

12 unchanged sentences

Balance at June 30, 2020

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the six months ended June 30, 2019 consisted of the following:

Amortization of prior service cost

Amortization of net loss (gain)

Foreign currency exchange

Other adjustments

Balance at September 30, 2020

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2019 consisted of the following:

Comprehensive

9 unchanged sentences

Balance at June 30, 2019

Amortization of prior service cost

Amortization of net loss (gain)

Other adjustments

Balance at September 30, 2019

FAIR VALUE OF FINANCIAL INSTRUMENTS

7 unchanged sentences

The fair value of fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.

The carrying value and fair value of the Company’s financial instruments as of June 30, 2020 and December 31, 2019 are as follows:

The carrying value and fair value of the Company’s financial instruments as of September 30, 2020 and December 31, 2019 are as follows:

Quoted Prices in

4 unchanged sentences

(In millions)

June 30, 2020

Fair Value Measurements at June 30, 2020

September 30, 2020

Fair Value Measurements at September 30, 2020

Cash and cash equivalents

12 unchanged sentences

The calculation of diluted earnings per share includes the dilutive effect of unexercised non-qualified stock options and non-vested restricted stock units.

The computation of weighted average common shares outstanding excluded a nominal amount of anti-dilutive non-qualified stock options for each period ended June 30, 2020 and 2019.

The denominators used to compute basic and diluted earnings per share for the three and six months ended June 30, 2020 and 2019 are as follows:

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

The computation of weighted average common shares outstanding excluded a nominal amount of anti-dilutive non-qualified stock options for each period ended September 30, 2020 and 2019.

The denominators used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 are as follows:

Three Months Ended September 30, 2020

Nine Months Ended September 30, 2020

(In millions, except per share amounts)

Effect of Dilutive Securities

Three Months Ended June 30, 2019

Six Months Ended June 30, 2019

Three Months Ended September 30, 2019

Nine Months Ended September 30, 2019

(In millions, except per share amounts)

1 unchanged sentence

SHARE-BASED COMPENSATION

During the three and six months ended June 30, 2020, the Company granted approximately 22,000 and 338,200 in total of time-based restricted stock units and performance-based shares to certain of its employees at a weighted average grant date fair value of $ 27.30 and $ 38.64 , respectively.

Total share-based compensation cost recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of selling, general and administrative expenses was $ 3.0 million and $ 3.0 million for the three months ended June 30, 2020 and 2019, and $ 6.1 million and $ 6.2 million for the six months ended June 30, 2020 and 2019, respectively.

Total unrecognized compensation cost related to unvested share-based compensation arrangements was $ 17.5 million at June 30, 2020, and is expected to be recognized over a weighted average period of approximately 2.0 years.

During the three and nine months ended September 30, 2020, the Company granted approximately 3,000 and 341,200 in total of time-based restricted stock units and performance-based shares to certain of its employees at a weighted average grant date fair value of $ 41.82 and $ 38.67 , respectively.

Total share-based compensation cost recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of selling, general and administrative expenses was $ 5.9 million and $ 2.5 million for the three months ended September 30, 2020 and 2019, and $ 12.0 million and $ 8.7 million for the nine months ended September 30, 2020 and 2019, respectively.

Total unrecognized compensation cost related to unvested share-based compensation arrangements was $ 17.3 million at September 30, 2020, and is expected to be recognized over a weighted average period of approximately 1.9 years.

Total unrecognized compensation cost may be adjusted for any unearned performance shares or forfeited shares.

1 unchanged sentence

The Company’s pension and post-retirement plans are described in Note 11 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 .

Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income (Loss) for the qualified pension plans and the post-retirement benefit plans for the three and six months ended June 30, 2020 and 2019 consisted of the following:

Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income (Loss) for the qualified pension plans and the post-retirement benefit plans for the three and nine months ended September 30, 2020 and 2019 consisted of the following:

Pension Benefits

Post-retirement Benefits

Three Months Ended June 30,

Three Months Ended September 30,

(In millions)

2 unchanged sentences

Expected return on plan assets

Amortization of net loss

Amortization of net loss (gain)

Amortization of prior service credit

2 unchanged sentences

Post-retirement Benefits

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

2 unchanged sentences

Expected return on plan assets

Amortization of net loss

Amortization of net loss (gain)

Amortization of prior service credit

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements