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Segment Results (Notes)
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Results
Operating segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s chief operating decision maker is its Chief Executive Officer. Based on the foregoing, the Company has four segments that operate in three industries: Real Estate, Natural Materials and Construction and Agribusiness.
The Real Estate Industry consists of two operating segments. The Real Estate Development and Sales segment generates its revenues through the investment in and development and sale of land and commercial and residential properties. The Real Estate Leasing segment owns, operates, and manages retail, office, and industrial properties in Hawaii and on the Mainland. When property that was previously leased is sold, the sales revenue and operating profit are included with the Real Estate Sales segment.
Natural Materials and Construction, which contains one segment and includes the results of Grace from the date of acquisition, mines, processes, and sells basalt aggregate; imports sand and aggregates for sale and use; imports and markets liquid asphalt; manufactures and markets asphaltic concrete; performs asphalt paving as prime contractor and subcontractor; manufactures and supplies precast/prestressed concrete products; and provides various construction- and traffic-control- related products and services.
Agribusiness, which consists of one segment, grows sugar cane; produces bulk raw sugar, specialty food-grade sugars, and molasses; markets and distributes specialty food-grade sugars; provides general trucking services, mobile equipment maintenance and repair services in Hawaii; and generates and sells, to the extent not used in the Company’s operations, electricity.
The accounting policies of the operating segments are described in the summary of significant accounting policies. Reportable segments are measured based on operating profit, exclusive of interest expense, general corporate expenses, and income taxes. Transactions between reportable segments are accounted for on the same basis as transactions with unrelated third parties.
Raw sugar revenues from the Company’s largest customer, C&H Sugar Company, Inc., exceeded 10 percent of total consolidated revenues and totaled $87.6 million, $117.5 million, and $93.2 million in 2013, 2012, and 2011, respectively.


Operating segment information for 2013, 2012, and 2011 is summarized as below (in millions):
 
 
For the Year Ended December 31,
2013
 
2012
 
2011
Revenue:
 
 
 
 
 
Real Estate:
 
 
 
 
 
Leasing
$
110.4

 
$
100.6

 
$
99.7

Development and Sales
423.0

 
32.2

 
59.8

Less amounts reported in discontinued operations1
(369.2
)
 
(45.3
)
 
(81.9
)
Natural materials and construction
54.9

 
—

 
—

Agribusiness
146.1

 
182.3

 
157.5

Reconciling items2
—

 
(8.3
)
 
—

Total revenue
$
365.2

 
$
261.5

 
$
235.1

Operating Profit (Loss)
 
 
 
 
 
Real Estate1:
 
 
 
 
 
Leasing
$
43.4

 
$
41.6

 
$
39.3

Development and Sales3
44.4

 
(4.4
)
 
15.5

Less amounts reported in discontinued operations1
(36.7
)
 
(21.1
)
 
(38.8
)
Natural materials and construction4
2.9

 
—

 
—

Agribusiness
10.7

 
20.8

 
22.2

Total operating profit
64.7

 
36.9

 
38.2

Interest Expense
(19.1
)
 
(14.9
)
 
(17.1
)
General Corporate Expenses
(17.4
)
 
(15.1
)
 
(19.9
)
Separation/Acquisition Costs
(4.6
)
 
(6.8
)
 
—

Income From Continuing Operations Before Income Taxes
23.6

 
0.1

 
1.2

Income Tax Expense (benefit)
8.5

 
(7.6
)
 
1.0

Income From Continuing Operations
15.1

 
7.7

 
0.2

Income From Discontinued Operations (net of income taxes)
22.3

 
12.8

 
23.3

Net Income
37.4

 
20.5

 
23.5

Income Attributable to Noncontrolling Interest
(0.5
)
 
—

 
—

Net Income Attributable to A&B
$
36.9

 
$
20.5

 
$
23.5

1 
Amounts recast to reflect discontinued operations.
2 
Represents the sale of a 286-acre parcel in 2012 classified as "Gain on sale of agricultural parcel" in the consolidated statements of income, but reflected as revenue for segment reporting purposes.
3 
The Real Estate Development and Sales segment includes approximately $4.2 million, $(8.3) million, and ($7.9) million in equity in (loss) earnings from its various real estate joint ventures for 2013, 2012, and 2011, respectively. Included in operating profit are non-cash impairment and equity losses of $6.3 million related to the consolidation of The Shops at Kukui'ula in 2013, $9.8 million (Bakersfield joint venture and Santa Barbara real estate project) in 2012 and $6.4 million (Waiawa real estate joint venture) in 2011.
4 
Includes the results of Grace from the acquisition date of October 1, 2013 through December 31, 2013.

As of December 31,
2013
 
2012
 
2011
Identifiable Assets:
 
 
 
 
 
Real Estate:
 
 
 
 
 
Leasing
$
1,113.4

 
$
771.3

 
$
772.0

Development and Sales5
640.9

 
504.8

 
451.5

Agribusiness
160.0

 
149.9

 
157.8

Natural materials and construction
358.7

 
—

 
—

Other
12.2

 
11.3

 
5.3

Total assets
$
2,285.2

 
$
1,437.3

 
$
1,386.6

 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
Real Estate:
 
 
 
 
 
Leasing6
$
488.5

 
$
23.1

 
$
43.6

Development and Sales7
0.1

 
—

 
5.2

Agribusiness8
11.8

 
31.7

 
10.5

Natural materials and construction
4.8

 
—

 
—

Other
0.1

 
—

 
—

Total capital expenditures
$
505.3

 
$
54.8

 
$
59.3

 
 
 
 
 
 
Depreciation and Amortization:
 
 
 
 
 
Real Estate:
 
 
 
 
 
Leasing1
$
24.3

 
$
22.0

 
$
21.6

Development and Sales
0.2

 
0.2

 
0.2

Agribusiness
11.7

 
11.6

 
11.9

Natural materials and construction
4.4

 
—

 
—

Other
1.1

 
1.3

 
1.1

Total depreciation and amortization
$
41.7

 
$
35.1

 
$
34.8

5 
The Real Estate Development and Sales segment includes approximately $335.0 million, $319.7 million, and $290.1 million related to its investment in various real estate joint ventures as of December 31, 2013, 2012, and 2011, respectively.
6 
Represents gross capital additions to the leasing portfolio, including gross tax-deferred property purchases, but excluding the assumption of debt, that are reflected as non-cash transactions in the Consolidated Statements of Cash Flows.
7 
Excludes expenditures for real estate developments held for sale which are classified as Cash Flows from Operating Activities within the Consolidated Statements of Cash Flows and excludes investment in joint ventures classified as Cash Flows from Investing Activities. Operating cash flows for expenditures related to real estate developments were $150.6 million, $37.2 million, and $13.8 million for 2013, 2012, and 2011, respectively. Investments in joint ventures were $22.2 million, $17.4 million, and $27.9 million in 2013, 2012, and 2011, respectively.
8 Includes $21.8 million of capital in 2012 related to the Company’s Port Allen solar project before tax credits.
Unaudited quarterly segment results for the years ended December 31, 2013 and 2012 were as follows (in millions):

2013
(Unaudited)
Q1

Q2

Q3

Q4
Revenue:







Real Estate:







Leasing
$
26.3


$
26.2


$
27.5


$
30.4

Development and Sales
15.4


1.4


47.4


358.8

Less amounts reported in discontinued operations1
(23.6
)

(8.4
)

(45.9
)

(291.3
)
Natural materials and construction
—


—


—


54.9

Agribusiness
14.7


43.5


35.9


52.0

Reconciling items
—


—


—


—

Total revenue
$
32.8

 
$
62.7

 
$
64.9

 
$
204.8

Operating Profit (Loss)







Real Estate1:







Leasing
$
10.9


$
10.6


$
11.2


$
10.7

Development and Sales3
2.4


(0.7
)

4.6


38.1

Less amounts reported in discontinued operations1
(8.2
)

(3.8
)

(11.8
)

(12.9
)
Natural materials and construction
—


—


—


2.9

Agribusiness
3.8


8.3


2.2


(3.6
)
Total operating profit
8.9

 
14.4

 
6.2

 
35.2

Interest Expense
(3.6
)

(3.9
)

(4.2
)

(7.4
)
General Corporate Expenses
(4.4
)

(3.7
)

(3.4
)

(5.9
)
Grace Acquisition Costs
(1.0
)

(1.5
)

(2.0
)

(0.1
)
Income (Loss) From Continuing Operations Before Income Taxes
(0.1
)
 
5.3

 
(3.4
)
 
21.8

Income Tax Expense (Benefit)
(0.1
)

2.6


(0.6
)

6.6

Income (Loss) From Continuing Operations
—

 
2.7

 
(2.8
)
 
15.2

Income From Discontinued Operations (net of income taxes)
5.0


2.3


7.2


7.8

Net Income
5.0

 
5.0

 
4.4

 
23.0

Income Attributable to Noncontrolling Interest
—


—


—


(0.5
)
Net Income Attributable to A&B
$
5.0

 
$
5.0

 
$
4.4

 
$
22.5

Earnings Per Share Attributable to A&B:

 

 

 


Basic
$
0.12

 
$
0.11

 
$
0.10

 
$
0.46


Diluted
$
0.12

 
$
0.11

 
$
0.10

 
$
0.46

Weighted average shares:
 
 
 
 
 
 
 
 
Basic
43.0

 
43.1

 
43.1

 
48.6

 
Diluted
43.6

 
43.7

 
43.8

 
49.2

         

 
2012
(Unaudited)
Q1
 
Q2
 
Q3
 
Q4
Revenue:
 
 
 
 
 
 
 
Real Estate:
 
 
 
 
 
 
 
Leasing
$
25.5

 
$
25.5

 
$
24.9

 
$
24.7

Development and Sales
11.4

 
7.0

 
8.4

 
5.4

Less amounts reported in discontinued operations1
(18.3
)
 
(9.1
)
 
(9.0
)
 
(8.9
)
Agribusiness
13.6

 
39.9

 
67.9

 
60.9

Reconciling items2
—

 
—

 
(8.3
)
 
—

Total revenue
$
32.2

 
$
63.3

 
$
83.9

 
$
82.1

Operating Profit (Loss)

 

 

 

Real Estate1:

 

 

 

Leasing
$
10.7

 
$
10.5

 
$
10.2

 
$
10.2

Development and Sales3
0.9

 
(9.9
)
 
3.3

 
1.3

Less amounts reported in discontinued operations1
(8.4
)
 
(4.3
)
 
(4.2
)
 
(4.2
)
Natural materials and construction
—

 
—

 
—

 
—

Agribusiness
3.5

 
7.0

 
9.1

 
1.2

Total operating profit
6.7

 
3.3

 
18.4

 
8.5

Interest Expense
(4.1
)
 
(4.0
)
 
(3.6
)
 
(3.2
)
General Corporate Expenses
(4.7
)
 
(4.0
)
 
(3.0
)
 
(3.4
)
Separation Costs
(1.7
)
 
(4.4
)
 
(0.7
)
 
—

Income (Loss) From Continuing Operations Before Income Taxes
(3.8
)
 
(9.1
)
 
11.1

 
1.9

Income Tax Expense (benefit)
(1.5
)
 
(2.1
)
 
0.3

 
(4.3
)
Income (Loss) From Continuing Operations
(2.3
)
 
(7.0
)
 
10.8

 
6.2

Income From Discontinued Operations (net of income taxes)
5.1

 
2.6

 
2.6

 
2.5

Net Income (Loss)
2.8

 
(4.4
)
 
13.4

 
8.7

Income Attributable to Noncontrolling Interest
—

 
—

 
—

 
—

Net Income (Loss) Attributable to A&B
$
2.8

 
$
(4.4
)
 
$
13.4

 
$
8.7

Earnings Per Share Attributable to A&B:
 
 
 
 
 
 
 
 
Basic
$
0.07

 
$
(0.10
)
 
$
0.31

 
$
0.20

 
Diluted
$
0.07

 
$
(0.10
)
 
$
0.31

 
$
0.20

Weighted average shares:
 
 
 
 
 
 
 
 
Basic
42.4

 
42.4

 
42.6

 
42.9

 
Diluted
42.4

 
42.4

 
43.3

 
43.5

1 
Amounts recast to reflect discontinued operations.
2 
Represents the sale of a 286-acre agricultural parcel in the third quarter of 2012 classified as "Gain on sale of agricultural parcel" in the consolidated statements of income, but reflected as revenue for segment reporting purposes.
3 
The Real Estate Development and Sales segment operating profit includes non-cash impairment loss on consolidation of $6.3 million in the third quarter of 2013 related to the consolidation of The Shops at Kukui'ula and non-cash impairment and equity losses of $9.8 million in the second quarter of 2012 related to the Company’s Bakersfield and Santa Barbara real estate projects.