INVESTMENT IN SSAT

12 Months Ended

Dec. 31, 2021

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 $58.7 million and $48.7 million at December 31, 2021 and 2020, respectively. During the year ended December 31, 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 share of income recorded in the Consolidated Statements of Income and Comprehensive Income and dividends received by the Company during the years ended December 31, 2021, 2020 and 2019 are as follows:

	Years Ended December 31,
(In millions)	2021		2020		2019
Company's share of net income	$	56.3	$	26.3	$	20.8
Distributions received	$	46.9	$	55.4	$	25.2

The Company’s Ocean Transportation segment operating costs include $284.9 million, $251.6 million and $218.7 million for the years ended December 31, 2021, 2020 and 2019, respectively, for terminal services provided by SSAT. Accounts payable and accrued liabilities in the Consolidated Balance Sheets include $38.8 million and $29.8 million for terminal services payable to SSAT at December 31, 2021 and 2020, respectively.

A summary of the condensed balance sheets of SSAT at December 31, 2021 and 2020 is as follows:

	As of December 31,
Condensed Balance Sheets (in millions)	2021		2020
Current assets	$	343.4	$	294.3
Non-current assets		1,239.7		1,249.5
Total Assets	$	1,583.1	$	1,543.8
Current liabilities	$	302.7	$	238.2
Non-current liabilities		1,125.5		1,179.9
Equity		154.9		125.7
Total Liabilities and Equity	$	1,583.1	$	1,543.8

A summary of the condensed statements of operating income and net income of SSAT for years ended December 31, 2021, 2020 and 2019 are as follows:

	Years Ended December 31,
Condensed Statements of Operating Income and Net Income (in millions)	2021		2020		2019
Operating revenue	$	1,297.5	$	1,091.6	$	1,098.3
Operating costs and expenses		1,113.8		1,003.2		1,035.3
Operating income		183.7		88.4		63.0
Net Income (1)	$	161.7	$	76.6	$	57.2

(1) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests.