INVESTMENT IN SSAT

12 Months Ended

Dec. 31, 2023

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 $85.5 million and $81.2 million at December 31, 2023 and 2022, respectively. On September 16, 2022, SSAT completed the purchase of a 20 percent equity interest in SSAT Terminals (Oakland), LLC (“SSAT Oakland”) from a third-party company. After completion of this transaction, SSAT Oakland became a wholly owned subsidiary of SSAT. The operating results of SSAT Oakland consolidate into the operating results of SSAT. As a result of this transaction, the Company recorded a decrease of $15.5 million in its investment in SSAT, an increase in deferred tax assets of $3.9 million, and a corresponding decrease in retained earnings of $11.6 million during the year ended December 31, 2022.

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, 2023, 2022 and 2021 are as follows:

	Years Ended December 31,
(In millions)	2023		2022		2021
Company’s share of income from SSAT	$	2.2	$	83.1	$	56.3
Distributions received from SSAT	$	—	$	47.3	$	46.9

The Company’s Ocean Transportation segment operating costs for terminal services provided by SSAT include $297.2 million, $308.3 million and $284.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. Accounts payable and accrued liabilities in the Consolidated Balance Sheets for terminal services payable to SSAT include $43.4 million and $43.6 million at December 31, 2023 and 2022, respectively.

A summary of the Condensed Balance Sheets of SSAT at December 31, 2023 and 2022 are as follows:

	As of December 31,
Condensed Balance Sheets (in millions)	2023		2022
Current assets	$	304.0	$	324.7
Non-current assets		1,510.2		1,436.0
Total Assets	$	1,814.2	$	1,760.7
Current liabilities	$	271.8	$	342.1
Non-current liabilities		1,255.3		1,199.5
Equity		287.1		219.1
Total Liabilities and Equity	$	1,814.2	$	1,760.7

A summary of the Condensed Statements of Operating Income and Net Income of SSAT for the years ended December 31, 2023, 2022 and 2021 are as follows:

	Years Ended December 31,
Condensed Statements of Operating Income and Net Income (in millions)	2023		2022		2021
Operating revenue	$	1,025.1	$	1,466.9	$	1,297.5
Operating costs and expenses		1,019.6		1,168.8		1,113.8
Operating income		5.5		298.1		183.7
Net Income (1)(2)	$	11.9	$	249.6	$	161.7

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

(2) Includes net income or loss attributable to noncontrolling interests.