INVESTMENT IN SSAT

12 Months Ended

Dec. 31, 2024

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 $84.1 million and $85.5 million at December 31, 2024 and 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, 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.

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 distributions received by the Company during the years ended December 31, 2024, 2023 and 2022 are as follows:

	Years Ended December 31,
(In millions)	2024		2023		2022
Company’s share of income from SSAT (1)	$	(1.0)	$	2.2	$	83.1
Distributions received from SSAT	$	14.0	$	—	$	47.3

(1) 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 which includes a terminal operating lease asset during the year ended December 31, 2024. No impairment charges were recorded during the years ended December 31, 2023 and 2022.

The Company’s Ocean Transportation segment operating costs for terminal services provided by SSAT include $320.9 million, $297.2 million and $308.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. Accounts payable and accrued liabilities in the Consolidated Balance Sheets for terminal services payable to SSAT include $34.4 million and $43.4 million at December 31, 2024 and 2023, respectively.

A summary of SSAT’s Condensed Balance Sheets at December 31, 2024 and 2023 are as follows:

	As of December 31,
Condensed Balance Sheets (in millions)	2024		2023
Current assets	$	305.7	$	304.0
Non-current assets		1,625.8		1,510.2
Total Assets	$	1,931.5	$	1,814.2
Current liabilities	$	271.9	$	271.8
Non-current liabilities		1,371.5		1,255.3
Equity		288.1		287.1
Total Liabilities and Equity	$	1,931.5	$	1,814.2

A summary of SSAT’s Condensed Statements of Operating Income and Net Income for the years ended December 31, 2024, 2023 and 2022 are as follows:

	Years Ended December 31,
Condensed Statements of Operating Income and Net Income (in millions)	2024		2023		2022
Operating revenue	$	1,193.3	$	1,025.1	$	1,466.9
Operating costs and expenses		1,162.6		1,019.6		1,168.8
Operating income		30.7		5.5		298.1
Net (Loss) Income (1)(2)	$	(6.4)	$	11.9	$	249.6

(1) Includes an impairment charge related to the write-down of an asset group which includes a terminal operating lease asset during the year ended December 31, 2024. No impairment amounts were recorded during the years ended December 31, 2023 and 2022.

(2) Includes earnings from equity method investments held by SSAT less earnings allocated to non-controlling interests and includes net income or loss attributable to noncontrolling interests.