INVESTMENT IN SSAT

12 Months Ended

Dec. 31, 2025

INVESTMENT IN SSAT

INVESTMENT IN SSAT

4. INVESTMENT IN SSAT

The Company accounts for its 35 percent ownership interest in SSAT using the equity method of accounting. The Company records its share of income from SSAT in costs and expenses within the Ocean Transportation segment due to operations of SSAT being an integral part of the Company’s Ocean Transportation business. The Company’s investment in SSAT was $96.2 million and $84.1 million at December 31, 2025 and 2024, respectively.

On March 1, 2024, SSAT completed the sale of 25 percent of its equity interest in SSA Terminals (Seattle Terminals), LLC (“SSAT ST”) to a third-party company. After the completion of this transaction, SSAT retains a 50 percent controlling interest in SSAT ST, while the third-party company increased its non-controlling interest to 50 percent in SSAT ST. As a result of this transaction, the Company recorded an increase in its investment in SSAT of $13.2 million, an increase in deferred income taxes of $3.1 million, and a corresponding increase in retained earnings of $10.1 million during the year ended December 31, 2024.

The Company’s share of income (loss) recorded in the Consolidated Statements of Income and Comprehensive Income and distributions received by the Company during the years ended December 31, 2025, 2024 and 2023 are as follows:

	Years Ended December 31,
(In millions)	2025		2024		2023
Company’s share of income (loss) from SSAT (1)	$	32.5	$	(1.0)	$	2.2
Distributions received from SSAT	$	21.0	$	14.0	$	—

(1) The Company’s share of income (loss) from SSAT includes an impairment charge of $18.4 million representing the Company’s portion of an impairment charge recorded by SSAT, which related to the write-down of an asset group with a terminal operating lease asset during the year ended December 31, 2024. No impairment charges were recorded by SSAT during the years ended December 31, 2025 and 2023.

The Company’s Ocean Transportation segment operating costs for terminal services provided by SSAT include $341.9 million, $320.9 million and $297.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. Accounts payable and accrued liabilities in the Consolidated Balance Sheets for terminal services payable to SSAT include $40.5 million and $34.4 million at December 31, 2025 and 2024, respectively. The Company leases a warehouse facility from SSAT under an agreement that expires in December 2027. Lease payments were $0.4 million for the years ended December 31, 2025 and 2024, respectively. Operating lease liabilities related to this lease were $0.8 million and $1.2 million as of December 31, 2025 and 2024, respectively.

A summary of SSAT’s Condensed Balance Sheets at December 31, 2025 and 2024 are as follows:

	As of December 31,
Condensed Balance Sheets (in millions)	2025		2024
Current assets	$	271.0	$	305.7
Non-current assets		1,491.1		1,625.8
Total Assets	$	1,762.1	$	1,931.5
Current liabilities	$	269.1	$	271.9
Non-current liabilities		1,166.9		1,371.5
Equity		326.1		288.1
Total Liabilities and Equity	$	1,762.1	$	1,931.5

A summary of SSAT’s Condensed Statements of Operating Income and Net Income for the years ended December 31, 2025, 2024 and 2023 are as follows:

	Years Ended December 31,
Condensed Statements of Operating Income and Net Income (in millions)	2025		2024		2023
Operating revenue	$	1,274.0	$	1,193.3	$	1,025.1
Operating costs and expenses (1)		1,209.3		1,162.6		1,019.6
Operating income		64.7		30.7		5.5
Net Income (Loss) (1)(2)	$	91.7	$	(6.4)	$	11.9

(1) Includes an impairment charge related to the write-down of an asset group with a terminal operating lease asset during the year ended December 31, 2024. No impairment charges were recorded by SSAT during the years ended December 31, 2025 and 2023.

(2) Includes earnings or losses from equity method investments held by SSAT, less earnings or losses allocated to non-controlling interests.