INVESTMENT IN SSAT

3 Months Ended

Mar. 31, 2024

INVESTMENT IN SSAT

INVESTMENT IN SSAT

4.          INVESTMENT IN SSAT

The Company’s investment in SSAT is described in Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Condensed income statement information for SSAT for the three months ended March 31, 2024 and 2023 consisted of the following:

	Three Months Ended
	March 31,
(In millions)	2024		2023
Operating revenue	$	270.3	$	230.8
Operating costs and expenses		(278.4)		(235.9)
Operating loss		(8.1)		(5.1)
Net Loss (1)	$	(3.8)	$	(4.8)
Company Share of SSAT’s Net Income (Loss) (2)	$	0.4	$	(1.8)

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

(2) The Company records its share of net income (loss) from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations.

The Company’s investment in SSAT was $85.2 million and $85.5 million at March 31, 2024 and December 31, 2023, 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 approximately $13.2 million and increase in deferred income taxes of $3.1 million, and a corresponding increase in retained earnings of $10.1 million.