8-K - MATX - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 15, 2022 ( November 15, 2022 )

Matson, Inc.

(Exact Name of Registrant as Specified in its Charter)

_____________________

Hawaii		001-34187		99-0032630
(State or Other Jurisdiction of<br>Incorporation)		(Commission File Number)		(I.R.S. Employer Identification<br>No.)


1411 Sand Island Parkway
Honolulu , Hawaii		96819
(Address of principal executive offices)		(zip code)

Registrant’s telephone number, including area code: ( 808 ) 848-1211

(Former Name or former address, if changed since last report)

_____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	MATX	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01.Regulation FD Disclosure.

Matson, Inc. (“Matson” or the “Company”) will present an overview of the Company and respond to questions at the Stephens Investment Conference in Nashville, Tennessee on November 15, 2022. Matson will be using the presentation materials attached as Exhibit 99.1 to this Form 8-K. Additionally, the presentation materials will be available on Matson’s website at www.matson.com under Investors on November 15, 2022. The information set forth in these materials speaks only as of the date of the materials.

Statements in this Form 8-K and the attached exhibit that are not historical facts are “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Factors that could cause actual results to differ materially from those contemplated in the statements include, without limitation, those described on pages 26-37 of the Form 10-Q filed by Matson on November 3, 2022. These forward-looking statements are not guarantees of future performance. Actual results could differ materially from those anticipated in the forward-looking statements and future results could differ materially from historical performance.

Item 9.01.Financial Statements and Exhibits.

(a) - (c) Not applicable.

(d) Exhibits.

The exhibit listed below is being furnished with this Form 8-K.

99.1	Investor Presentation

104	Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	MATSON, INC.


	/s/ Joel M. Wine
	Joel M. Wine
	Executive Vice President and Chief Financial Officer


Dated: November 15, 2022

Exhibit 99.1

1<br>Investor Presentation │November 2022<br>Investor Presentation<br>November 2022
2<br>Investor Presentation │November 2022<br>Forward<br>-<br>Looking Statements<br>Statements made during this presentation that set<br>forth expectations, predictions, projections or are<br>about future events are based on facts and situations<br>that are known to us as of November 15, 2022.<br>We believe that our expectations and assumptions are<br>reasonable. Actual results may differ materially, due<br>to risks and uncertainties, such as those described on<br>pages 26<br>-<br>37 of our Form 10<br>-<br>Q filed on November 3,<br>2022<br>and other subsequent filings by Matson with the<br>SEC. Statements made during this presentation are<br>not guarantees of future performance.<br>We do not undertake any obligation to update our<br>forward<br>-<br>looking statements.
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3<br>Investor Presentation │November 2022<br>Matson: At<br>-<br>a<br>-<br>Glance<br>OCEAN TRANSPORTATION<br>•<br>A leading U.S. carrier in the Pacific<br>•<br>Lifeline to economies of Hawaii, Alaska, Guam and other<br>Pacific islands<br>•<br>Niche, premium, expedited services from China to Southern<br>California<br>•<br>35% ownership in SSAT that operates 8 West Coast terminals<br>LOGISTICS<br>•<br>Top 10 integrated, asset<br>-<br>light logistics services<br>•<br>Freight forwarding, transportation brokerage, warehousing,<br>and supply chain management services<br>•<br>Leverages Matson and Span Alaska brands<br>•<br>Scalable model with high ROIC<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>2018<br>2019<br>2020<br>2021<br>LTM 3Q22<br>$ in millions<br>Operating Income<br>Net Income<br>EBITDA<br>Operating Income, Net Income and EBITDA<br>Financial Return Metrics<br>0%<br>10%<br>20%<br>30%<br>40%<br>50%<br>60%<br>70%<br>80%<br>2018<br>2019<br>2020<br>2021<br>LTM 3Q22<br>Return on Equity (ROE)<br>Return on Invested Capital (ROIC)
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4<br>Investor Presentation │November 2022<br>Matson Today: Connecting the Pacific
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5<br>Investor Presentation │November 2022<br>Investment Highlights<br>Unique Network<br>Connecting the Pacific<br>•<br>Providing critical supply lifelines to economies throughout the Pacific<br>•<br>Strong market positions in attractive niche markets with multi<br>-<br>decade customer relationships<br>•<br>Dual head<br>-<br>haul economics on China<br>-<br>to<br>-<br>Long Beach Express (CLX)<br>s<br>ervice<br>•<br>Logistics<br>’ business lines complement ocean services and drive high ROIC opportunities<br>World<br>-<br>Class Operator<br>and Premium Service<br>Provider<br>•<br>Fastest transit and cargo availability creates competitive advantage and premium rates for China service<br>‒<br>CLX and CLX+ are the fastest and second fastest ocean services in the Transpacific<br>tradelane<br>•<br>Fastest transit time to Guam from U.S. West Coast with superior on<br>-<br>time performance<br>•<br>Well<br>-<br>maintained fleet with industry<br>-<br>leading on<br>-<br>time performance<br>•<br>Dedicated terminals with best<br>-<br>in<br>-<br>class truck turns and unmatched cargo availability<br>•<br>Hawaii Neighbor Island barge fleet and Micronesia feeder vessels create hub<br>-<br>and<br>-<br>spoke efficiency<br>Increasingly<br>Diversified Cash Flows<br>•<br>Increasingly diversified cash flows from:<br>‒<br>Distinct<br>ocean<br>tradelane<br>service routes,<br>‒<br>A<br>niche provider of logistics services complementing the<br>tradelane<br>services, and<br>‒<br>An equity investment in SSAT, a leading U.S. West Coast terminal operator<br>Organic Growth<br>Opportunities<br>•<br>Significant organic growth in the last 2 years through addition of CLX+ and AAX services<br>•<br>Announced ~$1 billion new vessel program on November 2, 2022<br>–<br>new Aloha Class vessels in CLX to provide meaningful<br>lift to net income, operating income and EBITDA<br>•<br>Pursue<br>opportunities that l<br>everage the combined services of Ocean Transportation and Logistics<br>Stable, Growing<br>and Defensible<br>Cash Flow Generation<br>•<br>Financial strength to invest to grow the core businesses, pursue strategic opportunities and return<br>capital to shareholders<br>•<br>Since 2015, approximately $700 million in investments<br>for Alaska entry<br>Commitment to<br>Returning Cash<br>to Shareholders<br>•<br>As of September 30, 2022<br>, over<br>$900 million returned to shareholders through share repurchases and dividends since<br>becoming public in 2012<br>•<br>Repurchased ~5.9 million shares from August 3,<br>2021<br>through September 30,<br>2022<br>for a total cost of ~$495 million<br>•<br>Compelling dividend yield with dividend growth history<br>Strong<br>Balance Sheet<br>•<br>Investment grade credit metrics<br>•<br>Balance sheet strength leads to low cost of capital
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6<br>Investor Presentation │November 2022<br>Hawaii Service<br>•<br>5 U.S. West Coast departures and 3<br>arrivals in Honolulu per week<br>•<br>Dedicated neighbor island barge<br>service<br>Overview of Service<br>Matson’s Focus<br>•<br>Maintain best<br>-<br>in<br>-<br>class on<br>-<br>time arrival<br>and cargo availability<br>•<br>Dedicated terminals and fully<br>-<br>integrated cargo delivery to major<br>neighbor islands<br>Market Overview<br>•<br>Competitors:<br>–<br>Pasha<br>–<br>Barges<br>–<br>Air freight<br>9<br>-<br>ship deployment
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7<br>Investor Presentation │November 2022<br>China Service<br>•<br>Feeder services from other Asian port origins<br>•<br>CLX and CLX+ are premium services providing an<br>alternative to deferred air freight and other ocean carriers<br>•<br>Dedicated terminal space in Long Beach with off<br>-<br>dock<br>container yard<br>•<br>Door<br>-<br>to<br>-<br>door services in coordination with Matson Logistics<br>Overview of Service<br>Matson’s Focus<br>•<br>Continue to differentiate services with reliability as a premium<br>service provider<br>•<br>Attract new customers away from air freight<br>•<br>Continue to find opportunities to lower breakeven cost on CLX+<br>Market Overview<br>•<br>Competitors:<br>–<br>Other transpacific carriers<br>–<br>Air freight carriers<br>CLX is the #1 Transpacific Service and CLX+ is #2<br>•<br>Expedited, 10<br>-<br>day transit from Shanghai<br>•<br>Exclusive terminal (for CLX)<br>–<br>unrivaled speed<br>•<br>Next day cargo availability at off<br>-<br>dock facility<br>Port of Long Beach<br>Service<br>Frequency<br>Destination<br>CLX<br>(started 2005)<br>Weekly from<br>Ningbo/Shanghai<br>Long<br>Beach<br>CLX+<br>(started May 2020)<br>Weekly from<br>Ningbo/Shanghai<br>Long Beach<br>CAX<br>(started June 2021)<br>Fortnightly from<br>Shanghai<br>Auckland
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8<br>Investor Presentation │November 2022<br>Alaska Service<br>•<br>Twice weekly service to Anchorage and Kodiak<br>•<br>Weekly service into Dutch Harbor<br>•<br>Matson is the only U.S. containership operator serving<br>Kodiak and Dutch Harbor<br>Overview of Service<br>Matson’s Focus<br>Current 3<br>-<br>Ship Deployment<br>•<br>Maintain excellence in on<br>-<br>time cargo availability<br>•<br>Expand premium SB service differentiation<br>•<br>Market AAX service for upcoming fishing season<br>Market Overview<br>•<br>Competitors: TOTE, barges, air freight and OTR trucking<br>•<br>Air freight rates are very high relative to the cost of goods<br>being shipped<br>•<br>NB volume growth tied to Alaska’s economy<br>•<br>SB and Alaska<br>-<br>to<br>-<br>Asia Express (AAX) volume tied to<br>seasonality of seafood harvests<br>Note: Picture excludes AAX service from Dutch Harbor as backhaul service on the<br>CLX+.
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9<br>Investor Presentation │November 2022<br>Guam Service<br>•<br>Weekly service to Guam as part of CLX<br>service<br>•<br>3<br>-<br>to<br>-<br>5 day<br>ocean transit advantage from U.S.<br>West Coast<br>Overview of Service<br>Matson’s Focus<br>•<br>Maintain superior service and on<br>-<br>time<br>performance<br>•<br>Fight for every piece of freight<br>Market Overview<br>•<br>Competitors:<br>–<br>APL (U.S. flagged service)<br>•<br>Trans<br>-<br>ships in Yokohama, Japan and<br>Busan, South Korea to Guam via a 2<br>-<br>ship<br>feeder service<br>–<br>International carriers with Asia direct<br>services<br>–<br>Air freight
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10<br>Investor Presentation │November 2022<br>SSAT Joint Venture<br>•<br>Matson owns a 35% interest in SSA<br>Terminals, LLC (SSAT), the leading U.S.<br>West Coast terminal operator<br>–<br>SSAT currently provides terminal and<br>stevedoring services to carriers at 8<br>terminal facilities<br>Overview<br>SSAT is the best operator on the U.S. West Coast.<br>$0<br>$20<br>$40<br>$60<br>$80<br>$100<br>$120<br>2018<br>2019<br>2020<br>2021<br>LTM 3Q22<br>$ in millions<br>SSAT JV Equity Income<br>Port<br>Terminal<br>Acreage<br>Long<br>Beach<br>Pier A<br>196<br>C60<br>68<br>Tacoma<br>West<br>Sitcum<br>123<br>Oakland<br>OICT<br>270<br>B63<br>80<br>Seattle<br>T<br>-<br>5<br>65<br>T<br>-<br>18<br>196<br>T<br>-<br>30<br>70<br> Further redevelopment of site could bring terminal to potentially<br>~143 acres.
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11<br>Investor Presentation │November 2022<br>0%<br>1%<br>2%<br>3%<br>4%<br>5%<br>6%<br>7%<br>8%<br>9%<br>10%<br>$0<br>$10<br>$20<br>$30<br>$40<br>$50<br>$60<br>$70<br>$80<br>2018<br>2019<br>2020<br>2021<br>LTM<br>3Q22<br>Operating Income Margin<br>Operating Income ($ in millions)<br>Operating Income<br>Operating Income Margin<br>Matson Logistics<br>Transportation<br>Brokerage<br>•<br>Domestic and international rail intermodal<br>•<br>Long<br>-<br>haul and regional highway trucking<br>•<br>Less<br>-<br>than<br>-<br>truckload and expedited freight<br>•<br>Over 1.5 million sq. ft. across 4 buildings in<br>attractive port<br>-<br>based locations<br>•<br>Mix of contract and public warehouses<br>Supply Chain<br>Mgmt. and<br>Other<br>•<br>PO management, freight forwarding and<br>NVOCC services<br>•<br>Organically grown from Matson’s CLX<br>service<br>Warehousing<br>and Distribution<br>Overview of Services<br>Operating Income and Margin<br>Freight<br>Forwarding<br>•<br>LCL consolidation and freight forwarding<br>primarily to the Alaska market through<br>Span Alaska
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12<br>Investor Presentation │November 2022<br>Appendix
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13<br>Investor Presentation │November 2022<br>Appendix<br>–<br>Update on New Vessel and LNG Projects<br>•<br>On November 1<br>st<br>, signed agreements with Philly Shipyard,<br>Inc. for construction of three new LNG<br>-<br>ready Aloha Class<br>vessels<br>–<br>New vessels for CLX service; will move three existing CLX<br>vessels into Alaska service after new vessels placed into<br>service<br>•<br>Overview of new Aloha Class vessels<br>–<br>LNG<br>-<br>ready; dual<br>-<br>fuel engines<br>–<br>State<br>-<br>of<br>-<br>the<br>-<br>art green technology features and a fuel<br>-<br>efficient<br>hull design<br>–<br>500 containers of additional capacity per voyage versus<br>existing CLX vessels<br>•<br>Expect the additional capacity to be a meaningful net income,<br>operating income and EBITDA contributor<br>–<br>Vessel deliveries expected in 4Q26, 2Q27 and 4Q27<br>•<br>Contract cost of ~$1 billion<br>–<br>Made first milestone payment of ~$50 million from the CCF<br>Year<br>Payment<br>2022<br>~$ 50<br>2023<br>50<br>2024<br>71<br>2025<br>351<br>2026<br>307<br>2027<br>157<br>2028<br>10<br>2029<br>3<br>TOTAL<br>~$ 999<br>Current Expected<br>Milestone Payments<br>($ in millions)
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14<br>Investor Presentation │November 2022<br>Appendix<br>–<br>Update on New Vessel and LNG Projects<br>(continued)<br>•<br>Three new Aloha Class vessels and LNG projects are important steps<br>towards achieving Matson’s 2030 greenhouse emissions goal<br>–<br>Reduce Scope 1 greenhouse gas emissions from owned fleet by 40% by<br>2030 using a 2016 baseline<br>•<br>LNG installation projects on<br>Daniel K. Inouye (DKI)<br>and<br>Manukai<br>remain<br>on track<br>–<br>Daniel K. Inouye<br>: current estimated total cost ~$35 million<br>–<br>Manukai<br>: current estimated total cost ~$60 million<br>•<br>Moving forward with LNG installation project on<br>Kaimana<br>Hila (KMH)<br>–<br>Current estimated total cost on KMH is ~$35 million<br>–<br>Currently scheduled to enter dry<br>-<br>dock in 2Q24 and for install work to last<br>~5 months<br>•<br>Continue to evaluate LNG installation projects on<br>Lurline<br>and<br>Matsonia<br>–<br>If move forward, installations would be in 2024 and 2025<br>–<br>Current estimated total cost on both Kanaloa Class vessels is ~$85 million
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15<br>Investor Presentation │November 2022<br>Appendix<br>–<br>Non<br>-<br>GAAP Measures<br>Matson reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company also<br>co<br>nsiders other non<br>-<br>GAAP measures to<br>evaluate performance, make day<br>-<br>to<br>-<br>day operating decisions, help investors understand our ability to incur and service debt and t<br>o make capital expenditures, and to<br>understand period<br>-<br>over<br>-<br>period operating results separate and apart from items that may, or could, have a disproportional positiv<br>e or negative impact on results in any<br>particular period<br>.. These non<br>-<br>GAAP measures include, but are not limited to, Earnings Before Interest Expense, Interest Income, Income Taxes, Dep<br>reciation and<br>Amortization (“EBITDA”), Return on Invested Capital (“ROIC”), Return on Equity (“ROE”), Total Debt<br>-<br>to<br>-<br>EBITDA and Net Debt<br>-<br>to<br>-<br>EBI<br>TDA.<br>For the years ended December 31,<br>($ in millions, except ROIC and ROE)<br>2021<br>2020<br>2019<br>2018<br>2017<br>2016<br>2015<br>2014<br>2013<br>2012<br>Total debt<br> (6)<br>$ 531.8<br>$ 629.0<br>$ 760.1<br>$ 958.4<br>$ 856.4<br>$ 857.1<br>$ 738.9<br>$ 429.9<br>$ 373.6<br>$ 286.1<br>$ 319.1<br>Less: total cash and cash equivalents<br>(242.8)<br><br><br>(282.4)<br><br><br>(14.4)<br><br><br>(21.2)<br><br><br>(19.6)<br><br><br>(19.8)<br><br><br>(13.9)<br><br><br>(25.5)<br><br><br>(293.4)<br><br><br>(114.5)<br><br><br>(19.9)<br><br><br>Net debt<br>289.0<br><br><br>346.6<br><br><br>745.7<br><br><br>937.2<br><br><br>836.8<br><br><br>837.3<br><br><br>725.0<br><br><br>404.4<br><br><br>80.2<br><br><br>171.6<br><br><br>299.2<br><br><br>Net income<br>$ 1,380.4<br>$ 927.4<br>$ 193.1<br>$ 82.7<br>$ 109.0<br>$ 231.0<br>$ 81.4<br>$ 103.0<br>$ 70.8<br>$ 53.7<br>$ 45.9<br>Add: loss from discontinued operations<br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>6.1<br><br><br>Add: income tax expense<br>346.4<br><br><br>243.9<br><br><br>65.9<br><br><br>25.1<br><br><br>38.7<br><br><br>(105.8)<br><br><br>49.1<br><br><br>74.8<br><br><br>51.9<br><br><br>32.2<br><br><br>33.0<br><br><br>Add: interest expense<br>19.0<br><br><br>22.6<br><br><br>27.4<br><br><br>22.5<br><br><br>18.7<br><br><br>24.2<br><br><br>24.1<br><br><br>18.5<br><br><br>17.3<br><br><br>14.4<br><br><br>11.7<br><br><br>Subtract: interest income<br>(1.3)<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Add: depreciation and amortization<br>163.0<br><br><br>156.4<br><br><br>137.3<br><br><br>134.0<br><br><br>130.9<br><br><br>146.6<br><br><br>135.4<br><br><br>105.8<br><br><br>90.1<br><br><br>91.0<br><br><br>95.4<br><br><br>EBITDA<br>1,907.5<br><br><br>1,350.3<br><br><br>423.7<br><br><br>264.3<br><br><br>297.3<br><br><br>296.0<br><br><br>290.0<br><br><br>302.1<br><br><br>230.1<br><br><br>191.3<br><br><br>192.1<br><br><br>Net income (A)<br>$ 1,380.4<br>$ 927.4<br>$ 193.1<br>$ 82.7<br>$ 109.0<br>$ 231.0<br>$ 81.4<br>$ 103.0<br>$ 70.8<br>$ 53.7<br>$ 45.9<br>Add: loss from discontinued operations<br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>6.1<br><br><br>Subtract: interest income (tax-effected)<br>(4)<br>(1.0)<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Add: interest expense (tax-effected)<br>(4)<br>15.2<br><br><br>17.9<br><br><br>20.4<br><br><br>16.7<br><br><br>14.2<br><br><br>14.9<br><br><br>15.1<br><br><br>10.7<br><br><br>10.0<br><br><br>9.0<br><br><br>7.2<br><br><br>Total return (B)<br>1,394.6<br><br><br>945.3<br><br><br>213.5<br><br><br>99.4<br><br><br>123.2<br><br><br>245.9<br><br><br>96.5<br><br><br>113.7<br><br><br>80.8<br><br><br>62.7<br><br><br>59.2<br><br><br>Average total debt<br>(6)<br>$ 589.5<br>$ 694.6<br>$ 859.3<br>$ 907.4<br>$ 856.8<br>$ 798.0<br>$ 584.4<br>$ 401.8<br>$ 329.9<br>$ 302.6<br>$ 319.1<br>Average shareholders' equity (C)<br>1,821.7<br><br><br>1,314.3<br><br><br>883.5<br><br><br>780.5<br><br><br>716.3<br><br><br>586.1<br><br><br>472.8<br><br><br>407.1<br><br><br>351.0<br><br><br>309.1<br><br><br>279.9<br><br><br>Total invested capital (D)<br>2,411.2<br><br><br>2,008.9<br><br><br>1,742.8<br><br><br>1,687.9<br><br><br>1,573.1<br><br><br>1,384.1<br><br><br>1,057.2<br><br><br>808.9<br><br><br>680.9<br><br><br>611.7<br><br><br>599.0<br><br><br>ROIC = (B)/(D)<br>57.8%<br>47.1%<br>12.3%<br>5.9%<br>7.8%<br>17.8%<br>9.1%<br>14.1%<br>11.9%<br>10.3%<br>9.9%<br>ROE = (A)/(C)<br>75.8%<br>70.6%<br>21.9%<br>10.6%<br>15.2%<br>39.4%<br>17.2%<br>25.3%<br>20.2%<br>17.4%<br>16.4%<br>(6) Total debt is presented before any reduction for deferred loan fees as required by U.S. GAAP.<br>(5) The 2012 calculation is based on total invested capital as of December 31, 2012 due to the timing of the separation from Alexander & Baldwin.<br>LTM as of<br>09/30/22<br>(1) Includes a non-cash tax benefit of $2.9 million related to discrete adjustments as a result of applying the provisions of the Tax Cuts and Jobs Act (the "Tax Act").<br>(2) Includes a non-cash tax expense of $2.9 million related to discrete adjustments as a result of applying the provisions of the Tax Act.<br>(3) Includes the benefit of a one-time, non-cash adjustment of $154.0 million related to the enactment of the Tax Act.<br>(4) The effective tax rates each year in the period 2012-2021 and LTM 3Q22 were 38.8%, 37.5%, 42.3%, 42.1%, 37.6%, (84.5%), 26.2%, 23.3%, 25.4%, 20.8% and 20.1%, respectively. The<br>effective tax rates for 2017, 2018 and 2019 excluding adjustments related to the Tax Act, would have been 38.5%, 24.2% and 26.0%, respectively.<br>(2)<br>(3)<br>(3)<br>(2)<br>(5)<br>(5)<br>(5)<br>(1)<br>(1)
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