REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2023

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

3.REPORTABLE SEGMENTS

Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s chief operating decision maker is its Chief Executive Officer.

The Company consists of two reportable segments, Ocean Transportation and Logistics, which are further described in Note 1. Reportable segments are measured based on operating income. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. The Company’s SSAT segment has been aggregated into the Company’s Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business (see Note 4).

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 $208.7 million, $270.9 million and $213.8 million for the years ended December 31, 2023, 2022 and 2021, respectively, have been eliminated from operating revenues in the table below.

Reportable segment financial information for the years ended December 31, 2023, 2022 and 2021, are as follows:

	Years Ended December 31,
(In millions)	2023		2022		2021
Operating Revenue:
Ocean Transportation (1)	$	2,477.0	$	3,544.6	$	3,132.8
Logistics (2)		617.6		798.4		792.5
Total Operating Revenue	$	3,094.6	$	4,343.0	$	3,925.3
Operating Income:
Ocean Transportation (3)	$	294.8	$	1,281.2	$	1,137.7
Logistics		48.0		72.4		49.8
Total Operating Income		342.8		1,353.6		1,187.5
Interest income		36.0		8.2		—
Interest expense		(12.2)		(18.0)		(22.6)
Other income (expense), net		6.4		8.5		6.4
Income before Taxes		373.0		1,352.3		1,171.3
Income taxes		(75.9)		(288.4)		(243.9)
Net Income	$	297.1	$	1,063.9	$	927.4
Capital Expenditures:
Ocean Transportation	$	240.2	$	190.9	$	322.4
Logistics		8.2		18.4		2.9
Total Capital Expenditures	$	248.4	$	209.3	$	325.3
Depreciation and Amortization:
Ocean Transportation	$	132.8	$	133.2	$	128.6
Logistics		11.6		8.1		7.3
		144.4		141.3		135.9
Deferred dry-docking amortization - Ocean Transportation		25.3		24.9		24.3
Total Depreciation and Amortization	$	169.7	$	166.2	$	160.2

(1) Ocean Transportation operating revenue excludes inter-segment revenue of $76.5 million, $93.6 million and $81.0 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(2) Logistics operating revenue excludes inter-segment revenue of $132.2 million, $177.3 million and $132.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(3) Ocean Transportation segment information includes $2.2 million, $83.1 million, and $56.3 million of income from the Company’s investment in SSAT for the years ended December 31, 2023, 2022 and 2021, respectively.

	As of December 31,
(In millions)	2023		2022
Identifiable Assets:
Ocean Transportation (1)	$	3,645.3	$	3,705.2
Logistics		649.3		624.8
Total Assets	$	4,294.6	$	4,330.0

(1) The Ocean Transportation segment includes $85.5 million and $81.2 million related to the Company’s investment in SSAT as of December 31, 2023 and 2022, respectively.