CAPITAL CONSTRUCTION FUND

3 Months Ended

Mar. 31, 2026

7. CAPITAL CONSTRUCTION FUND

The Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. A summary of the activities within the CCF cash and cash equivalents, and investments account for the three months ended March 31, 2026 and 2025 consisted of the following:


		Three Months Ended
		March 31,
(In millions)		2026			2025
CCF Cash and Cash Equivalents:
CCF cash and cash equivalents balance at beginning of period		$	307.2		$	230.7
Proceeds from U.S. Treasury debt securities at maturity			54.9			20.3
Interest income on cash and cash equivalents, and CCF investments			3.8			4.1
Repurchase of assigned accounts receivable			1.2			100.7
Qualifying withdrawal payments for vessel construction expenditures			(17.4)			(65.0)
Total CCF cash and cash equivalents balance at end of period			349.7			290.8

CCF Investments:
CCF investments balance at beginning of period			225.5			411.9
Sale of U.S. Treasury debt securities at maturity			(54.9)			(20.3)
Accretion of CCF investments			1.2			3.0
Total CCF investments balance at end of period			171.8			394.6
Total CCF cash and cash equivalents, and investments balance at end of period		$	521.5		$	685.4

CCF Cash and Cash Equivalents: Cash on deposit in the CCF account is invested in a short-term U.S. Treasury obligations fund with daily liquidity. At March 31, 2026, these short-term securities had a weighted average life of 103 days.

CCF Investments: The cost of CCF investments accretes to face value on a straight-line basis until maturity. Such accretion is included in interest income in the Condensed Consolidated Statements of Income and Comprehensive Income.

As of March 31, 2026, CCF investments maturities are as follows:


		As of
		March 31, 2026
Year (in millions)		Cost		Fair Value
Remainder of 2026		$	119.3	$	119.5
2027			52.5		52.7
Total CCF investments		$	171.8	$	172.2

CCF cash and cash equivalents, and investments are classified as a long-term asset in 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.

CCF Assigned Accounts Receivable: As of March 31, 2026 and December 31, 2025, eligible accounts receivable of $82.0 million and $82.3 million were assigned to the CCF, respectively. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets.