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Item 8. Financial Statements and Supplementary Data

2026-02-27 compared with 2025-02-28 · 216 added, 192 removed, 1074 unchanged (28% of the section changed)

80 unchanged sentences

The Company has evaluated its goodwill for impairment as part of its annual assessment in fiscal year 2025 and determined that the fair value of the Span Alaska reporting unit exceeded the carrying amount as of the date of the impairment review.

We identified goodwill related to Span Alaska as a critical audit matter because of the significant estimates and assumptions management made to estimate the fair value of Span Alaska.

We identified goodwill related to Span Alaska as a critical audit matter because of the significant estimates and assumptions management made to estimate the fair value of the Span Alaska reporting unit .

Specifically, performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the selection of the discount rate required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

17 unchanged sentences

Operating costs

(Loss) Income from SSAT

Income (Loss) from SSAT

General and administrative

2 unchanged sentences

Interest income

Interest expense

Interest expense, net

Other income (expense), net

Income before Taxes

Other Comprehensive Income (Loss), Net of Income Taxes:

Comprehensive Income (Loss), Net of Income Taxes:

Other Comprehensive Income (Loss):

2 unchanged sentences

Total Other Comprehensive Income (Loss), Net of Income Taxes

Comprehensive Income

Total Comprehensive Income

Basic Earnings Per Share

1 unchanged sentence

Weighted Average Number of Shares Outstanding:

See Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

AND SUBSIDIARIES

26 unchanged sentences

Long-term operating lease liabilities

Deferred income taxes

Deferred income taxes, net

Other long-term liabilities

4 unchanged sentences

authorized, 150 million shares ($ 0.75 stated value per share):

outstanding, 33.0 million shares in 2024 and 34.4 million shares in 2023

30.4 million and 33.0 million shares outstanding at December 31, 2025 and 2024, respectively

Additional paid in capital

3 unchanged sentences

Total Liabilities and Shareholders’ Equity

See Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

AND SUBSIDIARIES

6 unchanged sentences

Amortization of operating lease right-of-use assets

Deferred income taxes

Deferred income taxes, net

(Gain) Loss on disposal of property and equipment

Share-based compensation expense

Loss (Income) from SSAT

(Income) Loss from SSAT

Distributions from SSAT

18 unchanged sentences

Repayments of debt

Payments of deferred loan fees

Dividends paid

2 unchanged sentences

Net cash used in financing activities

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash, Beginning of the Year

Cash, Cash Equivalents and Restricted Cash, End of the Year

Reconciliation of Cash, Cash Equivalents, and Restricted Cash, at End of the Year:

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash, Beginning of Year

Cash, Cash Equivalents and Restricted Cash, End of Year

Reconciliation of Cash, Cash Equivalents, and Restricted Cash, End of Year:

Cash and Cash Equivalents

Restricted Cash

Total Cash, Cash Equivalents and Restricted Cash, End of the Year

Total Cash, Cash Equivalents and Restricted Cash, End of Year

Supplemental Cash Flow Information:

Interest paid, net of capitalized interest

Income tax paid, net of income tax refunds

Income tax paid, net of income tax refunds (see Note 10)

Non-cash Information:

1 unchanged sentence

Non-cash payments for intangible asset acquisitions

See Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

AND SUBSIDIARIES

8 unchanged sentences

Shares issued, net of shares withheld for employee taxes

Share repurchase

Equity interest in SSAT (see Note 4)

Repurchase of Matson common stock

Dividends ($ 1.26 per share)

3 unchanged sentences

Shares issued, net of shares withheld for employee taxes

Share repurchase

Repurchase of Matson common stock

Equity interest in SSAT (see Note 4)

Dividends ($ 1.32 per share)

3 unchanged sentences

Shares issued, net of shares withheld for employee taxes

Share repurchase

Equity interest in SSAT (see Note 4)

Repurchase of Matson common stock

Dividends ($ 1.40 per share)

Balance at December 31, 2025

See Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

AND SUBSIDIARIES

8 unchanged sentences

Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia.

MatNav also operates premium, expedited services from China to Long Beach, California, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia.

In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in Alaska.

MatNav also operates premium, expedited services from China to Long Beach, California, which includes cargo from other Asia origins, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia.

In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav in Hawaii and Alaska.

Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”), a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc.

SSAT currently provides terminal and stevedoring services to various carriers at eight terminal facilities on the U.S.

SSAT currently provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S.

West Coast, including three facilities dedicated for MatNav’s use.

2 unchanged sentences

(“Matson Logistics”), a wholly-owned subsidiary of MatNav.

Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and is an asset-light business that provides a variety of logistics services to its customers including:

Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and provides a variety of logistics services to its customers including:

(i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services);

23 unchanged sentences

Estimates and assumptions are used for, but not limited to:

impairment of investments;

useful lives of property and equipment, impairment of investments;

impairment of long-lived assets, intangible assets and goodwill;

capitalized interest;

allowance for doubtful accounts and other receivables;

allowance for credit losses;

legal contingencies;

insurance reserves and other related liabilities;

contingent acquisition related consideration;

accrual estimates;

2 unchanged sentences

operating lease assets and liabilities;

income (loss) from SSAT including estimates for impairment charges;

and income taxes.

estimates of income (loss) from SSAT including estimates for impairment charges;

and income tax estimates.

Future results could be materially affected if actual results differ from these estimates and assumptions.

2 unchanged sentences

The Company carries these investments at cost, which approximates fair value.

Restricted cash relates to amounts that are subject to contractual restrictions and are not readily available.

Restricted cash was $ 2.3 million at December 31, 2023 and was included in prepaid expenses and other assets in the Consolidated Balance Sheets.

The Company did not have any restricted cash at December 31, 2024.

Cash is restricted when there is a contractual agreement that governs the use of or withdrawal of these funds.

Accounts Receivable, net:

Accounts receivable represent amounts due from trade customers arising in the normal course of business.

Accounts receivable are shown net of allowance for doubtful accounts receivable in the Consolidated Balance Sheets.

Allowance for doubtful accounts receivable is established by management based on estimates of collectability.

Accounts receivable represent amounts due from customers arising in the normal course of business, and are shown net of allowance for credit losses in the Consolidated Balance Sheets.

Allowance for credit losses is established by management based on estimates of collectability.

Estimates of collectability are principally based on an evaluation of the current financial condition of the customer and the potential risks to collection, the customer’s payment history, expected future credit losses and other factors which are regularly monitored by the Company.

Changes in the allowance for doubtful accounts receivable for the three years ended December 31, 2024, 2023 and 2022 were as follows:

Changes in the allowance for credit losses for the three years ended December 31, 2025, 2024 and 2023 were as follows:

Year (in millions)

Beginning of Year

(1) Expense is shown net of amounts recovered from previously reserved doubtful accounts receivable.

(1) Expense is shown net of amounts recovered from previously reserved credit losses.

Prepaid Expenses and Other Assets:

4 unchanged sentences

Prepaid operating expenses

Income tax receivables, net

Restricted cash - vessel construction obligations

Income tax receivables for the year ended December 31, 2023 included a 2021 federal tax return refund of $ 118.6 million.

On April 19, 2024, the Company received the federal income tax refund of $ 118.6 million and interest of $ 10.2 million earned on the federal income tax refund.

Other prepaid expenses

Deferred Loan Fees:

The Company records deferred loan fees, excluding those related to the revolving credit facility, as a reduction to Total Debt in the Company’s Consolidated Balance Sheets.

These costs are being amortized over the life of the related debt using the effective interest method (see Note 8).

These costs are being amortized over the life of the related debt using the effective interest method.

Deferred loan fees related to the Company’s revolving credit facility are recorded in other long-term assets in the Company’s Consolidated Balance Sheets and are amortized using the straight-line method, as the difference between that method and the use of the effective interest method is not material.

Additional information on the Company’s deferred loan fees is included in Note 8.

Other Long-Term Assets:

6 unchanged sentences

Property and Equipment:

Property and equipment is stated at cost.

Property and equipment is stated at cost, less accumulated depreciation and amortization.

Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets.

Leasehold improvements are amortized over the useful life of the asset or the applicable minimum term of the lease, whichever is shortest.

The estimated useful lives of property and equipment range up to the following maximum lives:

8 unchanged sentences

The weighted average interest rate is determined using the Company’s average borrowings outstanding during the period.

Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Consolidated Balance Sheets (see Note 5).

Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Consolidated Balance Sheets.

During the years ended December 31, 2025, 2024 and 2023, the Company capitalized $ 4.0 million, $ 4.4 million and $ 2.6 million of interest related to the construction of new vessels, respectively.

1 unchanged sentence

ASC 842 states that a lessee would recognize a lease liability for the obligation to make lease payments, and a right-of-use asset for the underlying leased asset for the period of the lease term.

Refer to Note 9 for additional information on the Company’s lease related disclosures.

Additional information on the Company’s leases is included in Note 9.

Deferred Dry-docking Costs:

9 unchanged sentences

and international standards.

As costs associated with dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the scheduled date of the next required dry-docking, which is usually over a two to five-year period.

As costs associated with dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the estimated date of the next required dry-docking, which is usually over a two to five-year period.

Amortization of deferred dry-docking costs are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income.

1 unchanged sentence

Goodwill and Intangible Assets:

Goodwill and intangible assets arise as a result of acquisitions made by the Company (see Note 6).

Goodwill and intangible assets arise as a result of acquisitions made by the Company.

Intangible assets consist of customer relationships which are being amortized using the straight-line method over the expected useful lives ranging up to 21 years , and a trade name that has an indefinite life.

Additional information on the Company’s goodwill and intangible assets is included in Note 6.

Impairment Evaluation of Long-Lived Assets, Intangible Assets and Goodwill :

4 unchanged sentences

If this review determines that the amount recorded will not be recovered, the amount recorded for the asset group is reduced to its estimated fair value.

No impairment charges of long-lived assets and finite-lived intangible assets were recorded for the years ended December 31, 2024, 2023 and 2022.

The Company did no t identify any impairment of its long-lived assets and finite-lived intangible assets during the years ended December 31, 2025, 2024 and 2023.

Indefinite-life intangible assets and goodwill are grouped at the lowest level reporting unit for which identifiable cash flows are available.

1 unchanged sentence

Based upon the Company’s evaluation of its indefinite-life intangible assets and goodwill for impairment, the Company determined that the fair value of each reporting unit exceeds book value.

No impairment charges of indefinite-life intangible assets and goodwill were recorded for the years ended December 31, 2024, 2023 and 2022.

The Company did no t identify any impairment of its indefinite-life intangible assets and goodwill during the years ended December 31, 2025, 2024 and 2023.

Impairment Evaluation of SSAT:

1 unchanged sentence

If any impairment is identified, the Company evaluates if the decrease in the fair value of the investment below its carrying value is other-than-temporary.

The Company did not identify any impairment of its equity investment in SSAT during the years ended December 31, 2024, 2023 and 2022.

The Company did no t identify any impairment of its equity investment in SSAT during the years ended December 31, 2025, 2024 and 2023.

Insurance Related Liabilities:

The Company purchases insurance with deductibles or self-insured retentions to mitigate significant risks that it is exposed to.

Such insurance includes, but is not limited to, employee health, workers’ compensation, marine liability, cybersecurity, auto liability and physical damage to property and equipment.

For certain risks, the Company elects to not purchase insurance because of the excessive cost of insurance, the perceived remoteness of the risk or insurance coverage is not commercially available.

The Company retains the risk of loss for insurance deductibles and self-insured retentions, for amounts that exceed the limits of the Company’s insurance policies, and for other risks not covered by insurance.

When estimating its reserves for retained risks and related liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by independent third parties.

Periodically, management reviews its assumptions and estimates used to determine the adequacy of the Company’s reserves for retained risks and other related liabilities.

Other Liabilities:

16 unchanged sentences

Pension and post-retirement liabilities

Long-term tax liabilities

Income tax liabilities

Other long-term liabilities

8 unchanged sentences

Additional information about the Company’s pension and post-retirement plans is included in Note 11.

Insurance Related Liabilities:

The Company purchases insurance with deductibles or self-insured retentions to mitigate significant risks that it is exposed to.

Such insurance includes, but is not limited to, employee health, workers’ compensation, marine liability, cybersecurity, auto liability and physical damage to property and equipment.

For certain risks, the Company elects to not purchase insurance because of the excessive cost of insurance, the perceived remoteness of the risk or insurance coverage is not commercially available.

Periodically, management reviews its assumptions and estimates used to determine the adequacy of the Company’s reserves for retained risks and other related liabilities.

Recognition of Revenues and Expenses:

Revenue in the Company’s Consolidated Financial Statements is presented net of elimination of intercompany transactions.

The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue recognition policy for each activity for the periods presented:

Revenue and expenses in the Company’s Consolidated Financial Statements are presented net after the elimination of intercompany amounts and transactions.

The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue and expense recognition policy for each activity for the periods presented:

Years Ended December 31,

8 unchanged sentences

● Terminal and other related services revenue is recognized as the services are performed.

Related costs are recognized as incurred.

Terminal and other related service costs are recognized as incurred.

● Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract.

15 unchanged sentences

● Warehousing services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise.

Storage revenue is recognized in the month the service is provided to the

Storage revenue is recognized in the month the service is provided to the customer.

Storage related costs are recognized as incurred.

4 unchanged sentences

The Company’s receivables are classified as short-term as collection terms are for periods of less than one year.

The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial.

These expenses are included in general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income.

Sales commissions and contract acquisition costs are expensed as incurred because the amounts are generally immaterial, and are included in general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income.

The Company recognizes dividends as a liability when approved by the Board of Directors.

Repurchase of Shares:

During the years ended December 31, 2024, 2023 and 2022, the Company repurchased approximately 1.6 million, 2.1 million and 5.0 million shares, respectively, for $ 201.0 million, $ 158.2 million and $ 397.0 million, respectively.

As of December 31, 2024, the number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately 0.8 million shares.

On February 27, 2025, the Company’s Board of Directors approved an additional 3.0 million shares of common stock to be added to the Company’s existing share repurchase program and extended the program’s expiration date to December 31, 2027.

During the years ended December 31, 2025, 2024 and 2023, the Company repurchased approximately 2.7 million, 1.6 million and 2.1 million shares, for $ 307.4 million, $ 201.0 million and $ 158.2 million, respectively.

As of December 31, 2025, the number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately 1.1 million shares.

Shares may be repurchased in the open market from time to time, and may be made pursuant to a trading plan in accordance with Rule 10b5-1 of the Security Exchange Act of 1934.

1 unchanged sentence

The Company records compensation expense for all share-based awards made to employees and directors.

The Company’s various stock-based compensation plans are more fully described in Note 15.

Stock based awards made under the Company’s stock plans are measured at fair value on the date of the grant and the cost for all grants is generally recognized ratably over the vesting period of the restricted stock unit (“RSU”) or restricted stock award.

The Company accounts for forfeitures as they occur.

The Company’s share-based awards are more fully described in Note 15.

Income Taxes:

The estimate of the Company’s income tax expense requires the Company to make various estimates and judgments.

These estimates and judgments are applied in the calculation of taxable income, tax credits, tax benefits, CCF and other tax deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes.

The Company’s income tax expense requires the Company to make various judgments and estimates.

These judgments and estimates are applied in the calculation of taxable income, tax credits, tax benefits, CCF related tax deductions, foreign-derived deduction eligible income and other tax deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes.

The Company also considers the impact of expected future events such as changes in tax rates, changes in tax laws, regulations and rulings.

4 unchanged sentences

Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different.

Reclassifications:

The Company reclassified amortization of deferred loan fees of $ 2.2 million and $ 2.1 million from Depreciation and amortization to Other within cash flows from operating activities in the Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022, respectively, to conform to current year cash flow presentation.

There were no changes in Net cash provided by operating activities as a result of this reclassification for the years ended December 31, 2023 and 2022.

Recently adopted accounting pronouncements:

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

ASU 2023-07 requires companies to disclose on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker.

The Company adopted ASU 2023-07 during the year ended December 31, 2024 (see Note 3).

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”).

ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025.

The Company adopted ASU 2023-09 during the year ended December 31, 2025 and applied it retrospectively (see Note 10).

New Accounting Pronouncements:

7 unchanged sentences

The Company is currently evaluating the effects of adopting ASU 2024-03 but does not expect it will have a material impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”).

ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets .

ASU 2025-05 provides optional simplified methods for estimating credit losses on current accounts receivable.

ASU 2025-05 is effective for interim and annual periods beginning after December 15, 2025.

The Company is currently evaluating the effects of adopting ASU 2025-05 but does not expect it to have a material impact on the Company’s consolidated financial statements.

28 unchanged sentences

Total operating costs

Loss (Income) from SSAT

Income (Loss) from SSAT

General and administrative

9 unchanged sentences

(3) Ocean Transportation operating overhead includes dry-docking amortization of $ 28.9 million, $ 27.2 million and $ 25.3 million for the year ended December 31, 2025, 2024 and 2023, respectively.

(4) Capital expenditures exclude accrued capital expenditures of $ 7.9 million, $ 10.8 million and $ 5.5 million as of December 31, 2024, 2023 and 2022, respectively.

(4) Capital expenditures represent amounts included in cash flows from investing activities in the Company’s Consolidated Statement of Cash Flows for the years presented.

These amounts exclude the impact of accrued capital expenditures of $ 2.3 million, $ 7.9 million and $ 10.8 million as of December 31, 2025, 2024 and 2023, respectively.

Ocean Transportation’s operating expenses includes the following:

5 unchanged sentences

and other vessel operating related expenses.

o Operating Overhead Expense includes vessel repair and maintenance costs, inactive vessel costs, dry-docking amortization, equipment lease costs, equipment repair costs, insurance, port engineers and other maintenance costs, other vessel and shoreside related overhead and other indirect costs.

o Operating Overhead Expense includes vessel repair and maintenance costs, inactive vessel costs, dry-docking amortization, equipment lease costs, equipment repair costs, vessel insurance, port engineers and other maintenance costs, other vessel and shoreside related overhead and other indirect costs.

o Depreciation and Amortization Expense includes depreciation of property and equipment and amortization of intangible assets.

● Income from SSAT includes the Company’s share of income from its equity investment in SSAT and has been aggregated into the Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business (see Note 4).

● Income (Loss) from SSAT includes the Company’s share of income from its equity investment in SSAT and has been aggregated into the Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business (see Note 4).

● General and Administrative Expense includes employee salaries, wages and other related costs, equipment maintenance, computer hardware and software, professional fees and other general and administrative expenses.

17 unchanged sentences

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:

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 $ 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.

The Company’s share of income (loss) recorded in the Consolidated Statements of Income and Comprehensive Income and distributions received by the Company during the years ended December 31, 2025, 2024 and 2023 are as follows:

Years Ended December 31,

(In millions)

Company’s share of income from SSAT (1)

Company’s share of income (loss) from SSAT (1)

Distributions received from SSAT

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 share of income (loss) from SSAT 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 with a terminal operating lease asset during the year ended December 31, 2024.

No impairment charges were recorded by SSAT during the years ended December 31, 2025 and 2023.

The Company’s Ocean Transportation segment operating costs for terminal services provided by SSAT include $ 341.9 million, $ 320.9 million and $ 297.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Accounts payable and accrued liabilities in the Consolidated Balance Sheets for terminal services payable to SSAT include $ 40.5 million and $ 34.4 million at December 31, 2025 and 2024, respectively.

The Company leases a warehouse facility from SSAT under an agreement that expires in December 2027.

Lease payments were $ 0.4 million for the years ended December 31, 2025 and 2024, respectively.

Operating lease liabilities related to this lease were $ 0.8 million and $ 1.2 million as of December 31, 2025 and 2024, respectively.

A summary of SSAT’s Condensed Balance Sheets at December 31, 2025 and 2024 are as follows:

12 unchanged sentences

Operating income

Net (Loss) Income (1)(2)

(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.

Net Income (Loss) (1)(2)

(1) Includes an impairment charge related to the write-down of an asset group with a terminal operating lease asset during the year ended December 31, 2024.

No impairment charges were recorded by SSAT during the years ended December 31, 2025 and 2023.

(2) Includes earnings or losses from equity method investments held by SSAT, less earnings or losses allocated to non-controlling interests.

PROPERTY AND EQUIPMENT

9 unchanged sentences

Other construction in progress

New vessel construction in progress at December 31, 2024 and 2023 includes milestone progress payments, capitalized interest and other costs related to the construction of three new Jones Act vessels.

Delivery of the first vessel is currently anticipated to be in the first quarter 2027, with subsequent deliveries expected in the third quarter 2027 and second quarter 2028.

New vessel construction in progress at December 31, 2025 and 2024 includes milestone progress payments, capitalized interest and other costs related to the construction of three new Aloha Class vessels.

Delivery of the vessels are expected during the first quarter 2027, the third quarter 2027 and the second quarter 2028.

Depreciation expense for the years ended December 31, 2025, 2024 and 2023 are as follows:

4 unchanged sentences

Goodwill by segment consists of the following as of December 31, 2025 and 2024:

As of December 31, 2025

As of December 31, 2024

(In millions)

Transportation

Ocean Transportation goodwill of $ 222.6 million includes $ 221.8 million related to the acquisition of Horizon Lines, Inc.

10 unchanged sentences

Total Logistics

In February 2023, the Company completed an asset acquisition consisting of customer relationship intangible assets for $ 16.5 million, which are being amortized over seven years .

Ocean Transportation intangible assets of $ 140.6 million relate to customer relationships acquired as part of the acquisition of Horizon, and are being amortized over 21 years .

5 unchanged sentences

Amortization expense

As of December 31, 2024, estimated amortization expense related to customer relationship intangible assets during the next five years and thereafter are as follows:

As of December 31, 2025, estimated amortization expense related to customer relationship intangible assets are as follows:

Year (in millions)

21 unchanged sentences

Treasury Obligation Funds or other eligible credit-based investments for maturities of up to 3 years.

Assigned receivables in the CCF represent non-cash pledged deposits made by the Company into the CCF that are supported by qualifying assets such as accounts receivable.

Such assigned receivables in the CCF qualify as deposits for tax deduction purposes.

Assigned receivables in the CCF accrue interest based upon terms as defined within the CCF agreement with MARAD.

Assigned account receivables can be repurchased by the Company by making cash deposits into the CCF.

A summary of the activities within the CCF cash and cash equivalents, and investment accounts for the years ended December 31, 2025 and 2024 consists of the following:

3 unchanged sentences

Cash deposits into the CCF

Cash paid for purchase of U.S.

Cash withdrawal for the purchase of U.S.

Treasury debt securities and accrued interest

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Treasury debt securities at maturity

Interest income deposited into the CCF

Interest income on cash and cash equivalents, and CCF investments

Repurchase of assigned accounts receivable

Qualifying withdrawal payments out of the CCF

Qualifying withdrawal payments for vessel construction expenditures

Total CCF cash and cash equivalents balance at end of period

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Treasury debt securities

Withdrawals of U.S.

Treasury debt securities at maturity

Accretion of investments

Accretion of CCF investments

Total CCF investments balance at end of period

Total CCF cash and cash equivalents, and investments balance at end of period

Cash on deposit and assigned accounts receivables in the CCF as of December 31, 2024 and 2023 are as follows:

As of December 31,

(In millions)

Capital Construction Fund:

Cash and cash equivalents, and investments account

Assigned accounts receivables

Cash on deposit in the CCF is invested in a U.S.

CCF Cash and Equivalents:

Cash on deposit in the CCF is invested in short-term U.S.

Treasury obligations fund with daily liquidity.

At December 31, 2024, securities held within the U.S.

Treasury obligations fund had a weighted average life of 96 days .

The Company’s CCF investments are in fixed-rate U.S.

Treasury obligations with various maturity dates of up to 3 years.

Cash on deposit and investment in the CCF are classified as a long-term asset on the Company’s Condensed Consolidated Balance Sheets, as the Company intends to use withdrawals to fund qualified milestone progress payments for the construction of three new Jones Act vessels.

At December 31, 2025, these short-term securities had a weighted average life of 95 days .

CCF Investments:

In February 2024, the Company purchased $ 448.1 million of fixed-rate U.S.

Treasuries debt securities with accrued interest of $ 1.7 million using CCF cash.

These securities were purchased at a discount and have various maturity dates of less than 2 years.

The value of these investments accretes to the face value of the securities on a straight-line basis until maturity.

Such accretion is included in interest income in the Company’s Consolidated Statement of Income and Comprehensive Income.

As of December 31, 2025, CCF investment maturities are as follows:

December 31, 2025

Year (in millions)

Total CCF investments

Cash on deposit and investment in the CCF are classified as a long-term asset on the Company’s Consolidated Balance Sheets, as the Company intends to use withdrawals to fund qualified milestone progress payments for the construction of three new Jones Act vessels.

CCF Assigned Accounts Receivables:

Assigned accounts receivable in the CCF was $ 82.3 million and $ 178.1 million as of December 31, 2025 and 2024, respectively.

During the year ended December 31, 2025 and 2024, the Company deposited cash into the CCF and repurchased assigned accounts receivables of $ 100.7 million and $ 53.8 million, respectively.

Assigned accounts receivable in the CCF are classified as part of accounts receivable on the Company’s Consolidated Balance Sheets due to the nature of the assignment.

During the year ended December 31, 2024, the Company repurchased assigned accounts receivables of $ 53.8 million.

During the year ended December 31, 2023, the Company assigned $ 200.0 million of accounts receivables into the CCF.

The Company’s debt consists of the following as of December 31, 2025 and 2024:

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1.35 %, payable through 2044

Revolving credit facility, maturity date of July 23, 2030

Current portion

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The secured KMH Title XI Debt matures in March 2044 and has a cash interest rate of 1.35 percent, payable semi-annually in arrears.

MatNav may prepay any amounts outstanding under the Title XI Debt agreements subject to a potential prepayment premium or other adjustment, in accordance with the Title XI Debt agreements.

Once amounts under the Title XI Debt are repaid, they may not be reborrowed.

MatNav may prepay any amounts outstanding under the Title XI Debt subject to a potential prepayment premium or other adjustment, in accordance with the Title XI Debt agreements.

Once the Title XI Debt amounts are repaid, they may not be reborrowed.

Mandatory prepayments are required under certain limited circumstances, including specified casualty events with respect to Daniel K.

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Revolving Credit Facility:

In March 2021, the Company entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”), which extended the maturity date to March 31, 2026, and retained the committed aggregate borrowings of up to $ 650 million.

The Credit Agreement amended certain covenants and other terms including (i) amending the pricing grid to provide for pricing ranging from, at the Company’s election, LIBOR plus a margin between 1.00 percent and 1.75 percent depending on the Company’s consolidated net leverage ratio, or base rate plus a margin between 0.00 percent and 0.75 percent depending on the Company’s consolidated net leverage ratio;

and (ii) reducing the maximum permitted consolidated leverage ratio to 3.50 to 1.0, with an option for a one-time increase to 4.0 to 1.0 in connection with a material acquisition.

The Company may prepay any amounts outstanding under the Credit Agreement without premium or penalty.

On July 23, 2025, the Company entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”), which provides for a five-year revolving credit facility, and $ 550 million in loan commitments, with an uncommitted $ 300 million increase option.

The Credit Agreement also amended certain covenants and other terms including (i) amending the pricing grid to provide for pricing ranging from, at the Company’s election, Secured Overnight Financing Rate (“SOFR”) plus a margin between 1.125 percent and 1.75 percent depending on the Company’s consolidated net leverage ratio, or base rate plus a margin between 0.125 percent and 0.75 percent depending on the Company’s consolidated net leverage ratio;

and (ii) eliminating the minimum consolidated interest coverage ratio financial covenant.

The Company may prepay any amounts outstanding under the Credit Agreement without premium or penalty, in accordance with the terms of the Credit Agreement.

The Credit Agreement contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, and transactions with affiliates.

The Credit Agreement also contains customary events of default.

In February 2023, the Company further amended the Credit Agreement to replace LIBOR with a new benchmark interest rate, the Secured Overnight Financing Rate (“SOFR”).

There were no other significant changes to the Credit Agreement as a result of this amendment.

As of December 31, 2025, the Company had $ 544.3 million of remaining borrowing availability under the revolving credit facility.

The Company used $ 6.1 million of the revolving credit facility for letters of credit outstanding as of

December 31, 2024.

The Company used $ 5.7 million of the revolving credit facility for letters of credit outstanding as of December 31, 2025.

Borrowings under the revolving credit facility are classified as long-term debt in the Company’s Consolidated Balance Sheets, as principal payments are not required until the maturity date.

Amendments to Existing Private Placement Term Loan Facilities and New Shelf Facilities (“Private Loan Facilities”):

In March 2021, the Company and the holders of the notes party thereto entered into amendments (collectively, the “2021 Note Amendments”) to each of (i) the Third Amended and Restated Note Purchase Agreement and Private Shelf Agreement dated as of September 14, 2016, among the Company and the holders of the notes issued thereunder, as amended;

On July 23, 2025, the Company and the holders of the Private Loan Facilities entered into amendments (collectively, the “2025 Note Amendments”) to each of (i) the Third Amended and Restated Note Purchase Agreement and Private Shelf Agreement dated as of September 14, 2016, among the Company and the holders of the notes issued thereunder, as amended;

and (ii) the Note Purchase Agreement dated December 21, 2016 among the Company and the holders of the notes issued thereunder, in each case as amended prior to such date.

The 2021 Note Amendments amended certain covenants and other terms, including the reduction of the maximum permitted consolidated leverage ratio to 3.50 to 1.0, with an option for a one-time increase to 4.0 to 1.0 in connection with a material acquisition, with potential interest enhancement payments if leverage is over 3.25 to 1.0.

The Company paid fees of approximately $ 0.8 million related to the 2021 Note Amendments which is included in deferred loan fees in debt in the Company’s Consolidated Balance Sheets.

The 2025 Note Amendments provide for amendments to certain covenants and other terms, including eliminating the minimum consolidated interest coverage ratio financial covenant.

Debt Maturities:

At December 31, 2024, debt maturities during the next five years and thereafter are as follows:

At December 31, 2025, debt maturities are as follows:

Year (in millions)

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Deferred Loan Fees:

Activity relating to deferred loan fees for the year ended December 31, 2024 are as follows:

Activities relating to deferred loan fees for the year ended December 31, 2025 are as follows:

Deferred Loan Fees (in millions)

Balance at December 31, 2024

Amortization expense for the year ended December 31, 2024

Payment of deferred loan fees

Amortization expense

Balance at December 31, 2025

As of December 31, 2024, amortization expense relating to deferred loan fees during the next five years and thereafter are as follows:

As of December 31, 2025, amortization expense relating to deferred loan fees excluding those related to the Company’s revolving credit facility are as follows:

Year (in millions)

Total amortization expense of deferred loan fees

Revolving Credit Facility Deferred Loan Fees:

Deferred loan fees related to the Company’s revolving credit facility are recorded in other long-term assets in the Company’s Consolidated Balance Sheets and are amortized using the straight-line method, as the difference between the straight-line method and the effective interest method is not material.

Activities relating to deferred loan fees for the year ended December 31, 2025 are as follows:

Revolving Credit Facility Deferred Loan Fees (in millions)

Balance at December 31, 2024

Payment of deferred loan fees

Amortization expense

Balance at December 31, 2025

As of December 31, 2025, amortization expense relating to revolving credit facility deferred loan fees are as follows:

Year (in millions)

Total amortization expense of revolving credit facility deferred loan fees

Title XI Debt Covenants:

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The Company’s leases do not contain any residual value guarantees.

The Company’s sub-lease income was nominal to the Company’s Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2024 and 2023.

The Company did not have any finance leases during the years ended December 31, 2025 and 2024.

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Incremental Borrowing Rate:

As most of the Company’s operating leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate based on information available at the date of adoption and subsequent lease commencement dates in calculating the present value of its operating lease liabilities.

As most of the Company’s operating leases do not provide an implicit rate of interest associated with the lease, the Company uses an estimated incremental borrowing rate based on information available at the date of adoption and subsequent lease commencement dates in calculating the present value of its operating lease liabilities.

The incremental borrowing rate is determined using the U.S.

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Variable lease cost

Total lease cost

Sublease income

Total lease cost, net

Other Lease Information:

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Weighted average incremental borrowing rate

Maturities of operating lease liabilities consist of the following at December 31, 2024:

Future minimum lease payments of operating lease liabilities that have non-cancelable lease terms in excess of one year consist of the following at December 31, 2025:

Year (in millions)

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Years Ended December 31,

federal income tax rate

State and local taxes, net of federal benefit

Income Taxes and Effective Income Tax Rate (Dollars in millions)

federal statutory tax and rate

State and local taxes, net of federal income tax effect (1)(2)

Foreign tax effects

Enactment of new tax laws or rates enacted in the current period

Effect of cross-border tax laws:

Foreign-derived intangible income (“FDII”)

Foreign taxes

Share-based payments

Return to provision true-ups

Effective income tax rate

Valuation allowances

Nontaxable or nondeductible items:

Share-based payment awards

Changes in unrecognized tax benefits

Other adjustments

Income taxes and effective income tax rate (3)

(1) In 2025, State and local income taxes in California and Alaska comprise the majority of this category.

In 2024 and 2023, State and local income taxes in California and Hawaii comprise the majority of this category.

(2) State and local taxes, net of federal income tax effect for the year ended December 31, 2025 is presented net of the impact of a one-time positive tax adjustment of approximately $ 18.5 million or 3.5 percent.

(3) Excluding the one-time positive tax adjustment described above, the effective income tax rate would have been 20.1 percent for the year ended December 31, 2025.

The tax effects of temporary differences that gave rise to significant positions of deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024, were as follows:

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Operating lease liabilities

Deferred compensation

Multi-employer withdrawal liabilities

Deferred compensation

Insurance reserves

state alternative minimum tax credits

Total deferred tax assets

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Total deferred tax liabilities

Deferred tax liability, net

Income Tax Receivables:

The Company had income tax receivables of approximately $ 2.0 million and $ 125.2 million at December 31, 2024 and 2023, respectively.

The income tax receivable for the year ended December 31, 2023 included a 2021 federal income tax refund of approximately $ 118.6 million.

On April 19, 2024, the Company received the federal income tax refund of $ 118.6 million and interest of $ 10.2 million earned on the federal income tax refund.

These income tax receivable amounts have been included in prepaid expenses and other assets in the Company’s Consolidated Balance Sheets (see Note 2).

Deferred income taxes, net

Income Taxes Paid, Net of Income Tax Refunds:

Income tax paid, net of income tax refunds by jurisdiction for the years ended December 31, 2025, 2024 and 2023 consist of the following:

Income Taxes Paid, Net of Income Tax Refunds by Jurisdiction (in millions)

Federal income taxes (1)

State income taxes

California (2)

Wisconsin (2)

Foreign income taxes

Total income taxes paid, net (1)

(1) Federal income taxes paid, net of income tax refunds includes a 2021 federal income tax refund of $ 118.6 million received during the year ended December 31, 2024.

(2) California, Hawaii, Alaska and Wisconsin state income taxes paid, net of income tax refunds, include state income tax refunds of $ 14.9 million, $ 7.5 million, $ 4.5 million, and $ 0.7 million received, respectively, during the year ended December 31, 2023.

State Income Tax Operating Losses, State Tax Credit and Valuation Allowance:

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No expiration date

State income tax NOLs were acquired as part of the Horizon acquisition and are presented on a gross tax basis.

state income tax NOLs are excluded from the Company’s deferred tax assets and deferred tax liabilities above as the Company does not expect to benefit from any of the $ 136.5 million and $ 152.3 million balance as of December 31, 2024 and 2023, respectively.

State income tax NOLs are presented on a gross basis and represent U.S.

State income tax NOLs acquired as part of the Horizon acquisition.

The Company has recorded a full valuation allowance against these U.S.

State income tax NOLs as the Company does not expect to benefit from any of these deferred tax assets.

The Company recorded a valuation allowance against its unusable portion of U.S.

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Asset Categories

Domestic equity securities

International equity securities

Debt securities

Other and cash

Domestic equities

International equities

Alternatives (including real estate)

Cash and cash equivalents

The Company’s investments in equity securities primarily include domestic large-cap and mid-cap companies, but also includes an allocation to small-cap and international equity securities.

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Fixed income securities:

Municipal bonds

Short-term TIPS

Investment grade U.S.

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Rate of compensation increase

4.00 % - 3.50

Cash balance interest credit rate

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MULTI-EMPLOYER WITHDRAWAL LIABILITIES

Horizon ceased all of its operations in Puerto Rico during the first quarter of 2015, which resulted in a mass withdrawal from its multi-employer ILA-PRSSA pension fund.

The Company assumed this liability as part of the acquisition of Horizon on May 29, 2015.

The Company acquired Horizon on May 29, 2015.

Prior to this acquisition, Horizon had ceased all of its operations in Puerto Rico during the first quarter of 2015, which resulted in a mass withdrawal from its multi-employer ILA-PRSSA pension fund.

The Company assumed this liability as part of the acquisition.

The Company estimated the mass withdrawal liability based upon the required undiscounted quarterly payment of approximately $ 1.0 million to be paid to the ILA-PRSSA pension fund over a period which ends in March 2040, discounted to present value using the Company’s incremental borrowing rate.

4 unchanged sentences

Present value of multi-employer withdrawal liability

Current portion of multi-employer withdrawal liability (see Note 2)

Long-term portion of multi-employer withdrawal liability (see Note 2)

Current portion of multi-employer withdrawal liability

Long-term portion of multi-employer withdrawal liability

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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Amortization of prior service cost

Amortization of net gain (loss)

Amortization of net actuarial gain (loss)

Foreign currency exchange

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Amortization of prior service cost

Amortization of net gain (loss)

Amortization of net actuarial gain (loss)

Foreign currency exchange

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Basic earnings per share are determined by dividing net income by the weighted-average common shares outstanding during the year.

The calculation of diluted earnings per share includes the dilutive effect of unvested restricted stock units.

The computation of weighted average common shares excluded a nominal amount of anti-dilutive restricted stock units for each of the years 2024, 2023 and 2022.

The calculation of diluted earnings per share includes the dilutive effect of non-vested restricted stock units.

The computation of weighted average common shares outstanding excluded a nominal amount of anti-dilutive restricted stock units for each of the years ended December 31, 2025, 2024 and 2023.

The computations for basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023 are as follows:

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SHARE-BASED AWARDS

The Company has share-based compensation plans which are described as follows:

2016 Incentive Compensation Plan:

The Amended and Restated Matson, Inc.

2016 Incentive Compensation Plan (the “2016 Plan”) serves as a successor to the 2007 Incentive Compensation Plan and all other predecessor plans.

No further grants were made under the predecessor stock option plans.

Effective April 24, 2025, the shareholders of the Company adopted and approved the Matson, Inc.

2025 Incentive Compensation Plan (the “2025 Plan”) which serves as a successor to the Amended and Restated 2016 Plan.

Under the 2025 Plan, 1.4 million shares of common stock were reserved for issuance.

The 2016 Plan consists of four separate incentive compensation programs:

(i) the discretionary grant program, (ii) the stock issuance program, (iii) the incentive bonus program, and (iv) the automatic grant program for the non- employee members of the Company’s Board of Directors.

Share-based compensation is generally awarded under three of the four programs, as more fully described below.

The 2025 Plan consists of three separate incentive compensation programs:

(i) the discretionary grant program, (ii) the stock issuance program, and (iii) the automatic grant program for the non-employee members of the Company’s Board of Directors, which are described as follows.

Discretionary Grant Program — Under the Discretionary Grant Program, stock options may be granted with an exercise price no less than 100 percent of the fair market value (defined as the closing market price) of the Company’s common stock on the date of the grant.

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If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The Company uses Level 1 inputs for the fair values of its cash and cash equivalents, restricted cash and cash on deposit, and investments in the CCF, and Level 2 inputs for its fixed rate debt.

The fair values of cash and cash equivalents, restricted cash and cash on deposit in the CCF approximate their carrying values due to the nature of the instruments.

The Company uses Level 1 inputs for the fair values of its cash and cash equivalents, and CCF cash and cash equivalent and investments, and Level 2 inputs for its fixed rate debt.

The fair values of cash and cash equivalents, and CCF cash and cash equivalents approximate their carrying values due to the nature of the instruments.

The fair value of CCF investments is calculated based upon quoted prices available in active markets.

The fair value of fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.

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Carrying Value

Total

Inputs (Level 2)

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Cash and cash equivalents

Restricted cash

CCF - Cash and cash equivalent

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Cash and cash equivalents

Restricted cash

CCF - Cash and cash equivalent

CCF - Investments

Fixed rate debt

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(1) Standby letters of credit are required for the Company’s uninsured workers’ compensation and other insurance programs, and other needs.

(2) Bonds are required for U.S.

Customs and other related matters.

(3) Vessel construction obligations represent remaining contractual obligations entered into for the construction of three new Jones Act vessels.

(2) Bonds represent U.S.

Customs bonds, contract guarantee related performance bonds, and bonds related to other matters.

(3) Vessel construction obligations represent remaining contractual obligations (excluding owner’s items and change orders) entered into for the construction of three new Jones Act vessels.

(4) Vendor and other obligations include:

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data