American Bureau of Shipping

“The Company recognizes interest and penalties related to its expected tax adjustments in current income tax expense. The Company recognized a net decrease in income tax expense in respect of uncertain tax provisions of $0.8 million due to items falling out of statute, increased by additional taxes, interest and penalties of $0.6 million for the year ended December 31, 2023. The Company recognized an increase in income tax expense for interest and penalties of $0.3 million for the year ended December 31, 2024. None of the audit adjustments, if assessed, are expected to be individually material to the Company's financial position, results of operations or cash flows. The Company is subject to income tax in many jurisdictions, including the U.S. The Company has tax years open to examination for the years 2020-23 in the U.S. and 2014-2023 in various foreign locations. While the outcome of tax audits is uncertain, the Company believes that adequate amounts of tax, interest and penalties have been provided for any adjustments that are expected to arise. In 2021 Pillar 2 tax reform was endorsed by over 130 countries and jurisdictions, constituting the vast majority of the Organization for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). Pillar 2 requires companies to pay a top-up tax for the difference between their effective tax rate per jurisdiction and a 15% minimum rate subject to certain exceptions. Certain jurisdictions that the Company operates in endorsed Pillar 2 and are implementing conforming tax laws. The Company is assessing the potential impact, if any, of Pillar 2.”

“Reclass of Income to Expenses for Audited Financial Statements Revenue Related to Non-includable Affiliates”

“Net Unrealized gains on investments Reclass of Income to Expenses for Audited Financial Statements Expenses Related to Non-includable Affiliates”

“The Company recognizes interest and penalties related to its expected tax adjustments in current income tax expense. The Company recognized a net decrease in income tax expense in respect of uncertain tax provisions of $0.4 million due to items falling out of statute, increased by additional taxes, interest, and penalties of $1.2 million for the year ended December 31, 2024. The Company recognized an increase in income tax expense for interest and penalties of $0.3 million for the year ended December 31, 2023. Furthermore, none of the tax audit adjustments, if assessed, are expected to be individually material to the Company's financial positions, results of operations or cash flows. The Company is subject to income tax in many jurisdictions, including the U.S.. The Company has tax years open to examination for the years 2020-24 in the U.S. and 2014-2024 in various foreign locations. While the outcome of tax audits is uncertain, The Company believes that adequate amounts of tax, interest, and penalities have been provided for any adjustments that are expected to arise. The Organization for Economic Co-operation and Development (OECD) introduced Base Erosion and Profit Shifting (BEPS) rules that impose a global minimum tax rate of 15% (referred to as "Pillar 2") for companies with global revenues and profits above certain thresholds. While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which the Company operates have adopted the legislation, and other countries are in the process of introducing legislation to implement Pillar 2. The Company is continuing to evaluate and monitor the impact of Pillar 2. To date, Pillar 2 has not had a material impact on the effective tax rate or the financial statements.”