x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2017 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ______________________ to _________________ |
Hawaii | 45-4849780 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
P. O. Box 3440, Honolulu, Hawaii 822 Bishop Street, Honolulu, Hawaii (Address of principal executive offices) | 9680l 96813 (Zip Code) |
Large accelerated filer x | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Emerging growth company o |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Revenue: | |||||||
Commercial Real Estate | $ | 33.7 | $ | 34.8 | |||
Land Operations | 11.0 | 6.0 | |||||
Materials & Construction | 48.5 | 50.6 | |||||
Total operating revenue | 93.2 | 91.4 | |||||
Operating Costs and Expenses: | |||||||
Cost of Commercial Real Estate | 18.8 | 20.7 | |||||
Cost of Land Operations | 8.4 | 6.2 | |||||
Cost of Materials & Construction | 39.1 | 39.4 | |||||
Selling, general and administrative | 15.4 | 16.6 | |||||
REIT evaluation costs | 4.8 | — | |||||
Total operating costs and expenses | 86.5 | 82.9 | |||||
Operating Income | 6.7 | 8.5 | |||||
Other Income and (Expenses): | |||||||
Income related to joint ventures | 1.3 | 2.1 | |||||
Gain on the sale of improved property | 3.0 | — | |||||
Reductions in solar investments, net | (2.0 | ) | — | ||||
Interest and other income | 1.0 | 0.4 | |||||
Interest expense | (6.2 | ) | (6.9 | ) | |||
Total other income and (expenses) | (2.9 | ) | (4.4 | ) | |||
Income from Continuing Operations Before Income Taxes | 3.8 | 4.1 | |||||
Income tax benefit (expense) | 0.8 | (0.3 | ) | ||||
Income from Continuing Operations | 4.6 | 3.8 | |||||
Income (loss) from discontinued operations, net of income taxes | 2.4 | (10.8 | ) | ||||
Net Income (Loss) | 7.0 | (7.0 | ) | ||||
Income attributable to noncontrolling interest | (0.7 | ) | (0.5 | ) | |||
Net Income (Loss) Attributable to A&B Shareholders | $ | 6.3 | $ | (7.5 | ) | ||
Basic Earnings (Loss) Per Share of Common Stock: | |||||||
Continuing operations available to A&B shareholders | $ | 0.09 | $ | 0.08 | |||
Discontinued operations available to A&B shareholders | 0.05 | (0.23 | ) | ||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | (0.15 | ) | ||
Diluted Earnings (Loss) Per Share of Common Stock: | |||||||
Continuing operations available to A&B shareholders | $ | 0.09 | $ | 0.08 | |||
Discontinued operations available to A&B shareholders | 0.05 | (0.22 | ) | ||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | (0.14 | ) | ||
Weighted Average Number of Shares Outstanding: | |||||||
Basic | 49.1 | 48.9 | |||||
Diluted | 49.6 | 49.3 | |||||
Amounts Available to A&B Shareholders (Note 4): | |||||||
Continuing operations available to A&B shareholders, net of income taxes | $ | 4.4 | $ | 3.7 | |||
Discontinued operations available to A&B shareholders, net of income taxes | 2.4 | (10.8 | ) | ||||
Net income (loss) available to A&B shareholders | $ | 6.8 | $ | (7.1 | ) |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net Income (Loss) | $ | 7.0 | $ | (7.0 | ) | ||
Other Comprehensive Income: | |||||||
Reclassification adjustment for interest expense included in net income | 0.2 | — | |||||
Defined benefit pension plans: | |||||||
Amortization of prior service credit included in net periodic pension cost | (0.3 | ) | (0.3 | ) | |||
Amortization of net loss included in net periodic pension cost | 1.2 | 1.8 | |||||
Income taxes related to other comprehensive income | (0.4 | ) | (0.5 | ) | |||
Other Comprehensive Income | 0.7 | 1.0 | |||||
Comprehensive Income (Loss) | 7.7 | (6.0 | ) | ||||
Comprehensive income attributable to noncontrolling interest | (0.7 | ) | (0.5 | ) | |||
Comprehensive Income (Loss) Attributable to A&B Shareholders | $ | 7.0 | $ | (6.5 | ) |
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 15.3 | $ | 2.2 | |||
Accounts receivable, net | 30.0 | 32.1 | |||||
Contracts retention | 12.6 | 13.1 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 18.5 | 16.4 | |||||
Inventories | 28.0 | 43.3 | |||||
Real estate held for sale | — | 1.0 | |||||
Income tax receivable | 10.3 | 10.6 | |||||
Prepaid expenses and other assets | 15.9 | 19.6 | |||||
Total current assets | 130.6 | 138.3 | |||||
Investments in Affiliates | 395.3 | 390.8 | |||||
Real Estate Developments | 184.0 | 179.5 | |||||
Property – Net | 1,226.1 | 1,231.6 | |||||
Intangible Assets – Net | 51.9 | 53.8 | |||||
Goodwill | 102.3 | 102.3 | |||||
Other Assets | 70.4 | 60.0 | |||||
Total assets | $ | 2,160.6 | $ | 2,156.3 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Notes payable and current portion of long-term debt | $ | 48.8 | $ | 42.4 | |||
Accounts payable | 31.6 | 35.2 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 2.7 | 3.5 | |||||
Accrued interest | 3.7 | 6.3 | |||||
Deferred revenue | 1.9 | 17.6 | |||||
Indemnity holdback related to Grace acquisition | 9.3 | 9.3 | |||||
HC&S cessation-related liabilities | 6.4 | 19.1 | |||||
Accrued and other liabilities | 26.5 | 31.7 | |||||
Total current liabilities | 130.9 | 165.1 | |||||
Long-term Liabilities: | |||||||
Long-term debt | 511.2 | 472.7 | |||||
Deferred income taxes | 182.5 | 182.0 | |||||
Accrued pension and post-retirement benefits | 64.9 | 64.8 | |||||
Other non-current liabilities | 45.8 | 47.7 | |||||
Total long-term liabilities | 804.4 | 767.2 | |||||
Commitments and Contingencies | |||||||
Redeemable Noncontrolling Interest | 10.8 | 10.8 | |||||
Equity: | |||||||
Common stock - no par value; authorized, 150 million shares; outstanding, 49.1 million and 49.0 million shares at March 31, 2017 and December 31, 2016, respectively | 1,157.7 | 1,157.3 | |||||
Accumulated other comprehensive loss | (42.5 | ) | (43.2 | ) | |||
Retained earnings | 95.4 | 95.2 | |||||
Total A&B shareholders' equity | 1,210.6 | 1,209.3 | |||||
Noncontrolling interest | 3.9 | 3.9 | |||||
Total equity | 1,214.5 | 1,213.2 | |||||
Total liabilities and equity | $ | 2,160.6 | $ | 2,156.3 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Cash Flows from Operating Activities: | $ | (10.6 | ) | $ | 5.5 | ||
Cash Flows from Investing Activities: | |||||||
Capital expenditures for property, plant and equipment | (6.1 | ) | (92.1 | ) | |||
Capital expenditures related to 1031 commercial property transactions | — | (6.3 | ) | ||||
Proceeds from disposal of property and other assets | 4.7 | — | |||||
Proceeds from disposals related to 1031 commercial property transactions | 3.3 | — | |||||
Payments for purchases of investments in affiliates and other investments | (14.5 | ) | (5.4 | ) | |||
Proceeds from investments in affiliates and other investments | 0.6 | 0.3 | |||||
Change in restricted cash associated with 1031 transactions | (1.6 | ) | 6.3 | ||||
Net cash used in investing activities | (13.6 | ) | (97.2 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | 57.0 | 122.0 | |||||
Payments of long-term debt and deferred financing costs | (19.0 | ) | (22.6 | ) | |||
Borrowings (payments) on line-of-credit agreement, net | 6.9 | (2.9 | ) | ||||
Distribution to noncontrolling interests | (0.2 | ) | (0.5 | ) | |||
Dividends paid | (3.4 | ) | (2.9 | ) | |||
Proceeds from issuance and (payments) for repurchase of capital stock and other, net | (4.0 | ) | 0.8 | ||||
Net cash provided by financing activities | 37.3 | 93.9 | |||||
Cash and Cash Equivalents: | |||||||
Net increase in cash and cash equivalents | 13.1 | 2.2 | |||||
Balance, beginning of period | 2.2 | 1.3 | |||||
Balance, end of period | $ | 15.3 | $ | 3.5 | |||
Other Cash Flow Information: | |||||||
Interest paid, net of amounts capitalized | $ | 8.6 | $ | 8.6 | |||
Income taxes paid | 0.3 | — | |||||
Noncash Investing and Financing Activities: | |||||||
Uncollected proceeds from disposal of mobile equipment | $ | 4.4 | $ | — | |||
Capital expenditures included in accounts payable and accrued expenses | 1.5 | 4.5 |
Total Equity | |||||||||||||||||||||||||||
Accumulated | Redeem- | ||||||||||||||||||||||||||
Common | Other | able | |||||||||||||||||||||||||
Stock | Compre- | Non- | Non- | ||||||||||||||||||||||||
Stated | hensive | Retained | Controlling | Controlling | |||||||||||||||||||||||
Shares | Value | Loss | Earnings | interest | Total | interest | |||||||||||||||||||||
Balance, January 1, 2016 | 48.9 | $ | 1,151.7 | $ | (45.3 | ) | $ | 117.2 | $ | 3.5 | $ | 1,227.1 | $ | 11.6 | |||||||||||||
Net income (loss) | — | — | — | (7.5 | ) | 0.1 | (7.4 | ) | 0.4 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | 1.0 | — | — | 1.0 | — | ||||||||||||||||||||
Dividends paid on common stock ($0.06 per share) | — | — | — | (3.0 | ) | — | (3.0 | ) | — | ||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | (0.1 | ) | |||||||||||||||||||
Adjustments to redemption value of redeemable noncontrolling interest | — | — | — | 0.3 | — | 0.3 | (0.3 | ) | |||||||||||||||||||
Share-based compensation | — | 1.1 | — | — | — | 1.1 | — | ||||||||||||||||||||
Shares issued or repurchased, net | 0.1 | 1.0 | — | (0.2 | ) | — | 0.8 | — | |||||||||||||||||||
Balance, March 31, 2016 | 49.0 | $ | 1,153.8 | $ | (44.3 | ) | $ | 106.8 | $ | 3.6 | $ | 1,219.9 | $ | 11.6 |
Total Equity | |||||||||||||||||||||||||||
Accumulated | Redeem- | ||||||||||||||||||||||||||
Common | Other | able | |||||||||||||||||||||||||
Stock | Compre- | Non- | Non- | ||||||||||||||||||||||||
Stated | hensive | Retained | Controlling | Controlling | |||||||||||||||||||||||
Shares | Value | Loss | Earnings | interest | Total | interest | |||||||||||||||||||||
Balance, January 1, 2017 | 49.0 | $ | 1,157.3 | $ | (43.2 | ) | $ | 95.2 | $ | 3.9 | $ | 1,213.2 | $ | 10.8 | |||||||||||||
Net income | — | — | — | 6.3 | 0.2 | 6.5 | 0.5 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | 0.7 | — | — | 0.7 | — | ||||||||||||||||||||
Dividends paid on common stock ($0.07 per share) | — | — | — | (3.4 | ) | — | (3.4 | ) | — | ||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | (0.2 | ) | (0.2 | ) | — | ||||||||||||||||||
Adjustments to redemption value of redeemable noncontrolling interest | — | — | — | 0.5 | — | 0.5 | (0.5 | ) | |||||||||||||||||||
Share-based compensation | — | 1.1 | — | — | — | 1.1 | — | ||||||||||||||||||||
Shares issued or repurchased, net | 0.1 | (0.7 | ) | — | (3.2 | ) | — | (3.9 | ) | — | |||||||||||||||||
Balance, March 31, 2017 | 49.1 | $ | 1,157.7 | $ | (42.5 | ) | $ | 95.4 | $ | 3.9 | $ | 1,214.5 | $ | 10.8 |
1. | DESCRIPTION OF BUSINESS |
3. | COMMITMENTS AND CONTINGENCIES |
Standby letters of credit(a) | $ | 12.7 | |
Bonds(b) | $ | 414.1 |
4. | EARNINGS PER SHARE ("EPS") |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Income from Continuing Operations | $ | 4.6 | $ | 3.8 | |||
Less: Income attributable to noncontrolling interest | (0.7 | ) | (0.5 | ) | |||
Income from continuing operations attributable to A&B shareholders, net of income taxes | 3.9 | 3.3 | |||||
Less: Undistributed earnings allocated from redeemable noncontrolling interest | 0.5 | 0.4 | |||||
Income from continuing operations available to A&B shareholders, net of income taxes | $ | 4.4 | $ | 3.7 | |||
Income (loss) from discontinued operations available to A&B shareholders, net of income taxes | 2.4 | (10.8 | ) | ||||
Net income (loss) available to A&B shareholders | $ | 6.8 | $ | (7.1 | ) |
Three Months Ended | |||||
March 31, | |||||
2017 | 2016 | ||||
Denominator for basic EPS – weighted average shares outstanding | 49.1 | 48.9 | |||
Effect of dilutive securities: | |||||
Non-participating stock options and restricted stock unit awards | 0.5 | 0.4 | |||
Denominator for diluted EPS – weighted average shares outstanding | 49.6 | 49.3 |
5. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
6. | INVENTORIES |
March 31, 2017 | December 31, 2016 | ||||||
Sugar inventories | $ | 0.3 | $ | 17.5 | |||
Asphalt | 8.4 | 7.4 | |||||
Processed rock, Portland cement, and sand | 12.4 | 12.6 | |||||
Work in progress | 3.4 | 3.0 | |||||
Retail merchandise | 1.7 | 1.7 | |||||
Parts, materials and supplies inventories | 1.8 | 1.1 | |||||
Total | $ | 28.0 | $ | 43.3 |
7. | SHARE-BASED PAYMENT AWARDS |
2012 plan | Weighted average exercise price | Weighted average contractual life | Aggregate intrinsic value | |||||||||
Outstanding, January 1, 2017 | 903.5 | $ | 17.78 | |||||||||
Exercised | (196.3 | ) | $ | 15.62 | ||||||||
Outstanding, March 31, 2017 | 707.2 | $ | 18.38 | 3.2 years | $ | 18,406 | ||||||
Vested or expected to vest | 707.2 | $ | 18.38 | 3.2 years | $ | 18,406 | ||||||
Exercisable, March 31, 2017 | 707.2 | $ | 18.38 | 3.2 years | $ | 18,406 |
2012 plan restricted stock units | Weighted average grant-date fair value | |||||
Outstanding, January 1, 2017 | 293.5 | $ | 33.81 | |||
Granted | 99.0 | $ | 43.93 | |||
Vested | (82.3 | ) | $ | 36.92 | ||
Canceled | (3.6 | ) | $ | 39.43 | ||
Outstanding, March 31, 2017 | 306.6 | $ | 36.18 |
2017 Grants | 2016 Grants | ||
Volatility of A&B common stock | 25.4% | 26.3% | |
Average volatility of peer companies | 25.7% | 27.7% | |
Risk-free interest rate | 1.5% | 1.1% |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Share-based expense: | |||||||
Time-based and market-based restricted stock units | $ | 1.1 | $ | 1.1 | |||
Total share-based expense | 1.1 | 1.1 | |||||
Total recognized tax benefit | (0.4 | ) | (0.3 | ) | |||
Share-based expense (net of tax) | $ | 0.7 | $ | 0.8 |
8. | RELATED PARTY TRANSACTIONS |
9. | EMPLOYEE BENEFIT PLANS |
Pension Benefits | Post-retirement Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 0.8 | $ | 0.8 | $ | 0.1 | $ | — | |||||||
Interest cost | 2.1 | 2.3 | 0.1 | 0.1 | |||||||||||
Expected return on plan assets | (2.4 | ) | (2.5 | ) | — | — | |||||||||
Amortization of net loss included in net periodic pension cost | 1.2 | 1.8 | — | — | |||||||||||
Amortization of prior service credit included in net periodic pension cost | (0.3 | ) | (0.3 | ) | — | — | |||||||||
Curtailment gain | — | (0.2 | ) | — | — | ||||||||||
Net periodic benefit cost | $ | 1.4 | $ | 1.9 | $ | 0.2 | $ | 0.1 |
10. | ACQUISITIONS |
Assets acquired: | |||
Land | $ | 40.5 | |
Building | 36.8 | ||
In-place leases | 7.0 | ||
Favorable leases | 1.3 | ||
Total assets acquired | 85.6 | ||
Total liabilities assumed | 3.2 | ||
Net assets acquired | $ | 82.4 |
11. | ACCUMULATED OTHER COMPREHENSIVE LOSS |
Employee benefit plans | Interest rate swap | Total | |||||||||
Beginning balance, January 1, 2017 | $ | (45.0 | ) | $ | 1.8 | $ | (43.2 | ) | |||
Amounts reclassified from accumulated other comprehensive loss, net of taxes of $0.3 and $0.1 for employee benefit plans and interest rate swap, respectively | 0.6 | 0.1 | 0.7 | ||||||||
Ending balance, March 31, 2017 | $ | (44.4 | ) | $ | 1.9 | $ | (42.5 | ) |
Three Months Ended March 31, | ||||||||
Details about Other Comprehensive Income (Loss) Components: | 2017 | 2016 | ||||||
Reclassification adjustment for interest expense included in net income (loss) | $ | 0.2 | $ | — | ||||
Amortization of defined benefit pension items reclassified to net periodic pension cost: | ||||||||
Prior service credit | (0.3 | ) | (0.3 | ) | ||||
Net loss | 1.2 | 1.8 | ||||||
Total before income tax | 1.1 | 1.5 | ||||||
Income taxes | (0.4 | ) | (0.5 | ) | ||||
Other comprehensive income, net of tax | $ | 0.7 | $ | 1.0 |
12. | INCOME TAXES |
13. | NOTES PAYABLE AND LONG-TERM DEBT |
2017 | 2016 | ||||||
Revolving credit loans (2.60% for 2017 and 2.42% for 2016) | $ | 73.8 | $ | 14.9 | |||
Term loans: | |||||||
3.90%, payable through 2024, unsecured | 68.1 | 68.1 | |||||
6.90%, payable through 2020, unsecured | 48.8 | 65.0 | |||||
3.88%, payable through 2027, unsecured | 50.0 | 50.0 | |||||
5.55%, payable through 2026, unsecured | 46.0 | 46.0 | |||||
5.53%, payable through 2024, unsecured | 28.5 | 28.5 | |||||
5.56%, payable through 2026, unsecured | 25.0 | 25.0 | |||||
4.35%, payable through 2026, unsecured | 22.0 | 22.0 | |||||
4.15%, payable through 2024, secured by Pearl Highlands Center | 88.4 | 88.8 | |||||
LIBOR plus 1.50%, payable through 2021, secured by Kailua Town Center III (a) | 11.1 | 11.2 | |||||
LIBOR plus 2.00%, payable through 2021, secured by letter of credit (b) | 9.4 | 9.4 | |||||
LIBOR plus 1.35%, payable through 2029, secured by Manoa Marketplace (d) | 60.0 | 60.0 | |||||
3.15%, payable through 2021, second mortgage secured by Kailua Town Center III | 5.0 | — | |||||
6.38%, payable through 2017, secured by Midstate Hayes | 8.2 | 8.2 | |||||
LIBOR plus 1.00%, payable through 2021, secured by asphalt terminal (c) | 5.8 | 6.1 | |||||
5.19%, payable through 2019, unsecured | 5.9 | 6.5 | |||||
1.85%, payable through 2017, unsecured | 1.9 | 2.5 | |||||
3.31%, payable through 2018, unsecured | 2.4 | 2.8 | |||||
2.00%, payable through 2018, unsecured | 0.6 | 0.8 | |||||
Total debt (contractual) | 560.9 | 515.8 | |||||
Add debt premium (discount) | 0.3 | 0.5 | |||||
Adjustment for debt issuance costs | (1.2 | ) | (1.2 | ) | |||
Total debt (carrying value) | 560.0 | 515.1 | |||||
Less current portion | (48.8 | ) | (42.4 | ) | |||
Long-term debt | $ | 511.2 | $ | 472.7 |
14. | CESSATION OF SUGAR OPERATIONS |
Three Months Ended March 31, 2017 | Cumulative amount recognized as of March 31, 2017 | Remaining to be recognized | Total | |||||||||||||
Employee severance benefits and related costs | $ | 0.3 | $ | 22.1 | $ | — | $ | 22.1 | ||||||||
Asset write-offs and accelerated depreciation | — | 71.3 | — | 71.3 | ||||||||||||
Property removal, restoration and other exit-related costs | 1.0 | 8.1 | 2.3 | 10.4 | ||||||||||||
Total Cessation-related costs | $ | 1.3 | $ | 101.5 | $ | 2.3 | $ | 103.8 |
Employee severance benefits and related costs | Other exit costs1 | Total | ||||||||||
Balance at December 31, 2016 | $ | 13.7 | $ | 5.4 | $ | 19.1 | ||||||
Expense | 0.3 | 1.0 | 1.3 | |||||||||
Cash payments | (13.1 | ) | (0.9 | ) | (14.0 | ) | ||||||
Balance at March 31, 2017 | $ | 0.9 | $ | 5.5 | $ | 6.4 |
Classification on balance sheet | March 31, 2017 | December 31, 2016 | ||||||||
Employee severance benefits and related costs | HC&S cessation-related liabilities | $ | 0.9 | $ | 13.7 | |||||
Other exit costs | HC&S cessation-related liabilities | 5.5 | 5.4 | |||||||
Total Cessation-related liabilities | $ | 6.4 | $ | 19.1 |
15. | INVESTMENTS IN AFFILIATES |
2017 | 2016 | ||||||
Revenues | $ | 40.6 | $ | 47.2 | |||
Gross Profit | $ | 7.0 | $ | 8.5 | |||
Income from continuing operations* | $ | 3.3 | $ | 4.6 | |||
Net Income | $ | 3.3 | $ | 4.6 | |||
* Includes earnings from equity method investments held by the investee. |
16. | DERIVATIVE INSTRUMENTS |
Notional amount at | Fair value at | ||||||||||||||
Effective date | Maturity date | Interest rate | March 31, 2017 | March 31, 2017 | December 31, 2016 | Classification on balance sheet | |||||||||
4/7/2016 | 8/1/2029 | 3.14% | $ | 60.0 | $ | 3.0 | $ | 2.8 | Other assets |
Notional amount at | Fair value at | ||||||||||||||
Effective date | Maturity date | Interest rate | March 31, 2017 | March 31, 2017 | December 31, 2016 | Classification on balance sheet | |||||||||
1/1/2014 | 9/1/2021 | 5.95% | $ | 11.1 | $ | (1.2 | ) | $ | (1.3 | ) | Other non-current liabilities | ||||
6/18/2008 | 3/1/2021 | 5.98% | $ | 5.8 | $ | (0.4 | ) | $ | (0.5 | ) | Other non-current liabilities | ||||
Total | $ | 16.9 | $ | (1.6 | ) | $ | (1.8 | ) |
Three Months Ended March 31, | ||||||||
Derivatives in Designated Cash Flow Hedging Relationships: | 2017 | 2016 | ||||||
Amounts reclassified from accumulated OCI into earnings under "interest expense" | $ | (0.2 | ) | $ | — |
17. | DISCONTINUED OPERATIONS |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Sugar operations revenue (Land Operations) | $ | 22.1 | $ | 17.4 | |||
Operating loss before income taxes | $ | (0.2 | ) | $ | (13.7 | ) | |
Gain on asset dispositions, net | 4.1 | — | |||||
Income (loss) from discontinued operations before income taxes | 3.9 | (13.7 | ) | ||||
Income tax (expense) benefit | (1.5 | ) | 2.9 | ||||
Income (loss) from discontinued operations | $ | 2.4 | $ | (10.8 | ) | ||
Basic earnings (loss) per share | $ | 0.05 | $ | (0.23 | ) | ||
Diluted earnings (loss) per share | $ | 0.05 | $ | (0.22 | ) |
18. | SEGMENT RESULTS |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenue: | |||||||
Commercial Real Estate | $ | 33.7 | $ | 34.8 | |||
Land Operations | 11.0 | 6.0 | |||||
Materials & Construction | 48.5 | 50.6 | |||||
Total revenue | 93.2 | 91.4 | |||||
Operating Profit (Loss): | |||||||
Commercial Real Estate | 14.3 | 13.1 | |||||
Land Operations1 | (2.4 | ) | (3.2 | ) | |||
Materials & Construction | 5.6 | 8.0 | |||||
Total operating profit | 17.5 | 17.9 | |||||
Interest expense | (6.2 | ) | (6.9 | ) | |||
Gain on the sale of improved property | 3.0 | — | |||||
General corporate expenses | (5.7 | ) | (6.9 | ) | |||
REIT evaluation costs2 | (4.8 | ) | — | ||||
Income From Continuing Operations Before Income Taxes | 3.8 | 4.1 | |||||
Income tax benefit (expense) | 0.8 | (0.3 | ) | ||||
Income From Continuing Operations | 4.6 | 3.8 | |||||
Income (loss) from discontinued operations, net of income tax | 2.4 | (10.8 | ) | ||||
Net Income (Loss) | 7.0 | (7.0 | ) | ||||
Income attributable to noncontrolling interest | (0.7 | ) | (0.5 | ) | |||
Net Income (Loss) Attributable to A&B | $ | 6.3 | $ | (7.5 | ) |
1 | For the quarter ended March 31, 2017, the Company recorded a non-cash reduction of $2.0 million related to the Company's investment in Waihonu in Reductions in solar investments, net. |
2 | Costs related to the Company's in-depth evaluation of a REIT conversion. |
19. | SUBSEQUENT EVENTS |
• | Business Overview: This section provides a general description of A&B’s business, as well as recent developments that A&B believes are important in understanding its results of operations and financial condition or in understanding anticipated future trends. |
• | Critical Accounting Estimates: This section identifies and summarizes those accounting policies that significantly impact A&B’s reported results of operations and financial condition and require significant judgment or estimates on the part of management in their application. |
• | Consolidated Results of Operations: This section provides an analysis of A&B’s consolidated results of operations for the quarters ended March 31, 2017 and 2016. |
• | Analysis of Operating Revenue and Profit by Segment: This section provides an analysis of A&B’s results of operations by business segment. |
• | Liquidity and Capital Resources: This section provides a discussion of A&B’s financial condition and an analysis of A&B’s cash flows for the quarters ended March 31, 2017 and 2016, as well as a discussion of A&B’s ability to fund its future commitments and ongoing operating activities through internal and external sources of capital. |
• | Quantitative and Qualitative Disclosures about Market Risk: This section discusses how A&B monitors and manages exposure to potential gains and losses associated with changes in interest rates. |
• | Outlook: This section provides a discussion of management’s general outlook about its markets and A&B's competitive position. |
Three Months Ended March 31, | |||||||||||||
(dollars in millions, except per-share amounts) | 2017 | 2016 | $ Change | % Change | |||||||||
Operating revenue | $ | 93.2 | $ | 91.4 | $ | 1.8 | 2.0% | ||||||
Operating costs and expenses | 86.5 | 82.9 | $ | 3.6 | 4.3% | ||||||||
Operating income | 6.7 | 8.5 | $ | (1.8 | ) | (21.2)% | |||||||
Other expense, net | (2.9 | ) | (4.4 | ) | $ | 1.5 | (34.1)% | ||||||
Income tax benefit (expense) | 0.8 | (0.3 | ) | $ | 1.1 | NM | |||||||
Income from continuing operations | 4.6 | 3.8 | $ | 0.8 | 21.1% | ||||||||
Discontinued operations (net of income taxes) | 2.4 | (10.8 | ) | $ | 13.2 | NM | |||||||
Net income (loss) | 7.0 | (7.0 | ) | $ | 14.0 | NM | |||||||
Income attributable to noncontrolling interest | (0.7 | ) | (0.5 | ) | $ | (0.2 | ) | 40.0% | |||||
Net income (loss) attributable to A&B | $ | 6.3 | $ | (7.5 | ) | $ | 13.8 | NM | |||||
Basic earnings per share - continuing operations | $ | 0.09 | $ | 0.08 | $ | 0.01 | 12.5% | ||||||
Basic earnings (loss) per share - discontinued operations | $ | 0.05 | $ | (0.23 | ) | $ | 0.28 | NM | |||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | (0.15 | ) | $ | 0.29 | NM | |||||
Diluted earnings per share - continuing operations | $ | 0.09 | $ | 0.08 | $ | 0.01 | 12.5% | ||||||
Diluted earnings (loss) per share - discontinued operations | $ | 0.05 | $ | (0.22 | ) | $ | 0.27 | NM | |||||
Net income (loss) available to A&B shareholders | $ | 0.14 | $ | (0.14 | ) | $ | 0.28 | NM |
Three Months Ended March 31, | |||||||||
(dollars in millions) | 2017 | 2016 | Change | ||||||
Commercial Real Estate segment operating revenue | $ | 33.7 | $ | 34.8 | (3.2)% | ||||
Commercial Real Estate segment operating costs and expenses | 18.8 | 20.7 | (9.2)% | ||||||
Selling, general and administrative | 1.2 | 1.5 | (20.0)% | ||||||
Other segment income | (0.6 | ) | (0.5 | ) | 20.0% | ||||
Commercial Real Estate operating profit | $ | 14.3 | $ | 13.1 | 9.2% | ||||
Operating profit margin | 42.4 | % | 37.6 | % | |||||
Operating profit by location | |||||||||
Hawaii | $ | 13.2 | $ | 11.6 | 13.8% | ||||
Mainland | 1.1 | 1.5 | (26.7)% | ||||||
Total | $ | 14.3 | $ | 13.1 | 9.2% | ||||
Net Operating Income ("NOI")1 | |||||||||
Hawaii | $ | 19.4 | $ | 18.5 | 4.9% | ||||
Mainland | 2.8 | 3.9 | (28.2)% | ||||||
Total | $ | 22.2 | $ | 22.4 | (0.9)% | ||||
Gross Leasable Area ("GLA") (million sq. ft.) - Improved, end of period | |||||||||
Hawaii | 2.9 | 2.9 | |||||||
Mainland | 1.8 | 2.2 | |||||||
Total improved | 4.7 | 5.1 | |||||||
Hawaii urban ground leases (acres) | 106 | 106 |
Percent occupancy | Hawaii | Mainland | Total |
Retail | 93 | 95 | 93 |
Industrial | 96 | 97 | 97 |
Office | 90 | 87 | 88 |
Total | 94 | 94 | 94 |
Dispositions | Acquisitions | |||||||||||
Date | Property | Leasable sq. ft. | Date | Property | Leasable sq. ft. | |||||||
1/17 | The Maui Clinic Building | 16,600 | — | |||||||||
Total dispositions | 16,600 | Total improved acquisitions | — |
Dispositions | Acquisitions | |||||||||||
Date | Property | Leasable sq. ft. | Date | Property | Leasable sq. ft. | |||||||
6/16 | Ninigret Office Park | 185,500 | 12/16 | 2927 East Manoa Road (Ground Lease) | N/A | |||||||
6/16 | Gateway Oaks | 59,700 | 1/16 | Manoa Marketplace | 139,300 | |||||||
6/16 | Prospect Park | 163,300 | ||||||||||
Total dispositions | 408,500 | Total improved acquisitions | 139,300 |
Three Months Ended March 31, | ||||||||||||||||||||||
(dollars in millions) | 2017 | 2016 | ||||||||||||||||||||
Hawaii | Mainland | Total | Hawaii | Mainland | Total | % Change | ||||||||||||||||
Commercial Real Estate Operating Profit | $ | 13.2 | $ | 1.1 | $ | 14.3 | $ | 11.6 | $ | 1.5 | $ | 13.1 | 9.2% | |||||||||
Adjustments: | ||||||||||||||||||||||
Depreciation and amortization | 5.1 | 1.5 | 6.6 | 5.2 | 2.2 | 7.4 | (10.8)% | |||||||||||||||
Straight-line lease adjustments | (0.5 | ) | — | (0.5 | ) | (0.5 | ) | — | (0.5 | ) | —% | |||||||||||
General, administrative and other expenses | 1.6 | 0.2 | 1.8 | 2.2 | 0.2 | 2.4 | (25.0)% | |||||||||||||||
Commercial Real Estate NOI | 19.4 | 2.8 | 22.2 | 18.5 | 3.9 | 22.4 | (0.9)% | |||||||||||||||
Acquisitions/disposition and other adjustments | (1.6 | ) | — | (1.6 | ) | (1.1 | ) | (1.2 | ) | (2.3 | ) | (30.4)% | ||||||||||
Commercial Real Estate Same-Store NOI | $ | 17.8 | $ | 2.8 | $ | 20.6 | $ | 17.4 | $ | 2.7 | $ | 20.1 | 2.5% |
Three Months Ended March 31, | |||||||
(dollars in millions) | 2017 | 2016 | |||||
Development sales revenue | $ | 2.4 | $ | — | |||
Unimproved/other property sales revenue | 1.6 | — | |||||
Agribusiness revenue | 6.2 | 5.7 | |||||
Other operating revenues | 0.8 | 0.3 | |||||
Total Land Operations segment revenue | $ | 11.0 | $ | 6.0 | |||
Operating expenses | (12.5 | ) | (9.8 | ) | |||
Earnings from joint ventures | 0.1 | 0.5 | |||||
Reductions in solar investments, net | (2.0 | ) | — | ||||
Interest and other income | 1.0 | 0.1 | |||||
Total Land Operations operating loss | $ | (2.4 | ) | $ | (3.2 | ) | |
Land Operations operating profit margin | NM | NM |
Quarter Ended March 31, | |||||||
2017 | 2016 | ||||||
Sugar operations revenue (Land Operations) | $ | 22.1 | $ | 17.4 | |||
Operating loss before income taxes | $ | (0.2 | ) | $ | (13.7 | ) | |
Gain on asset dispositions | 4.1 | — | |||||
Income (loss) from discontinued operations before income taxes | 3.9 | (13.7 | ) | ||||
Income tax (expense) benefit | (1.5 | ) | 2.9 | ||||
Income (loss) from discontinued operations | $ | 2.4 | $ | (10.8 | ) | ||
Basic earnings (loss) per share | $ | 0.05 | $ | (0.23 | ) | ||
Diluted earnings (loss) per share | $ | 0.05 | $ | (0.22 | ) |
Three Months Ended March 31, | |||||||||
(dollars in millions) | 2017 | 2016 | Change | ||||||
Revenue | $ | 48.5 | $ | 50.6 | (4.2)% | ||||
Operating profit | $ | 5.6 | $ | 8.0 | (30.0)% | ||||
Operating profit margin | 11.5 | % | 15.8 | % | |||||
Depreciation and amortization | $ | 3.0 | $ | 2.9 | 3.4% | ||||
Aggregate used and sold (tons in thousands) | 165.3 | 183.2 | (9.8)% | ||||||
Asphaltic concrete placed (tons in thousands) | 134.7 | 117.9 | 14.2% | ||||||
Backlog1,2 at period end | $ | 213.2 | $ | 225.7 | (5.5)% |
1 | Backlog represents the amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded or government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory ($5.0 million as of March 31, 2017). Backlog primarily consists of asphalt paving and, to a lesser extent, Grace Pacific’s consolidated revenue from its Prestress and construction-and traffic control-related products. Backlog includes estimated revenue from the remaining portion of contracts not yet completed, as well as revenue from approved change orders. The length of time that projects remain in backlog can span from a few days for a small volume of work to 36 months for large paving contracts and contracts performed in phases. Maui Paving's backlog at March 31, 2017 and 2016 was $13.3 million and $12.3 million, respectively. |
2 | As of March 31, 2017 and 2016, the backlog included contractual revenue with related parties of $0.8 million and $1.9 million, respectively. |
Three Months Ended March 31, | ||||||||||
(dollars in millions) | 2017 | 2016 | Change | |||||||
Commercial real estate property acquisitions/improvements | $ | 2.6 | $ | 84.2 | (96.9 | )% | ||||
Tenant improvements | 0.6 | 1.4 | (57.1 | )% | ||||||
Quarrying and paving | 2.3 | 2.8 | (17.9 | )% | ||||||
Agribusiness and other | 0.6 | 3.7 | (83.8 | )% | ||||||
Total capital expenditures1 | $ | 6.1 | $ | 92.1 | (93.4 | )% |
Property Type | Vacancy rate for the quarter ended March 31, 2017 | Vacancy rate for the quarter ended March 31, 2016 | Percentage point change | Average asking rent per square foot per month for the quarter ended March 31, 2017 | Average asking rent per square foot per month for the quarter ended March 31, 2016 | Percent change | |||||||||||
Retail | 9.2% | 4.6% | 4.6% | $ | 4.07 | $ | 3.93 | 3.6 | % | ||||||||
Industrial | 1.5% | 1.5% | —% | $ | 1.19 | $ | 1.17 | 1.7 | % | ||||||||
Office | 12.4% | 12.2% | 0.2% | $ | 1.70 | $ | 1.67 | 1.8 | % |
(a) | Disclosure Controls and Procedures |
Period | Total number of shares purchased1 | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs |
January 1-31, 2017 | 31,262 | $44.72 | — | — |
February 1-28, 2017 | — | $— | — | — |
March 1-31, 2017 | 126,272 | $44.53 | — | — |
1 | Represents shares accepted in satisfaction of tax withholding obligations arising upon option exercises. |
31.1 | Certification of Chief Executive Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following information from Alexander & Baldwin, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the quarter ended March 31, 2017 and March 31, 2016, (ii) Condensed Consolidated Statement of Comprehensive Income (Loss) for the quarter ended March 31, 2017 and March 31, 2016, (iii) Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016, (iv) Condensed Consolidated Statement of Cash Flows for the quarter ended March 31, 2017 and March 31, 2016, (v) Condensed Consolidated Statements of Equity for the quarter ended March 31, 2017 and March 31, 2016, and (vi) the Notes to the Condensed Consolidated Financial Statements. |
95 | Mine Safety Disclosure |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. | |||
ALEXANDER & BALDWIN, INC. | |||
(Registrant) | |||
Date: | May 5, 2017 | /s/ Paul K. Ito | |
Paul K. Ito | |||
Senior Vice President, | |||
Chief Financial Officer and Treasurer | |||
31.1 | Certification of Chief Executive Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following information from Alexander & Baldwin, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the quarter ended March 31, 2017 and March 31, 2016, (ii) Condensed Consolidated Statement of Comprehensive Income (Loss) for the quarter ended March 31, 2017 and March 31, 2016, (iii) Condensed Consolidated Balance Sheets at March 31, 2017 and December 31, 2016, (iv) Condensed Consolidated Statement of Cash Flows for the quarter ended March 31, 2017 and March 31, 2016, (v) Condensed Consolidated Statements of Equity for the quarter ended March 31, 2017 and March 31, 2016 and (vi) the Notes to the Condensed Consolidated Financial Statements. |
95 | Mine Safety Disclosure |
1. | I have reviewed this quarterly report on Form 10-Q of Alexander & Baldwin, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By /s/ Christopher J. Benjamin | ||
Christopher J. Benjamin | ||
President and Chief Executive Officer | ||
Date: | May 5, 2017 |
1. | I have reviewed this quarterly report on Form 10-Q of Alexander & Baldwin, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By /s/ Paul K. Ito | ||
Paul K. Ito, Senior Vice President, | ||
Chief Financial Officer and Treasurer | ||
Date: | May 5, 2017 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Christopher J. Benjamin | |
Name: | Christopher J. Benjamin |
Title: | President and Chief Executive Officer |
Date: | May 5, 2017 |
/s/ Paul K. Ito | |
Name: | Paul K. Ito |
Title: | Senior Vice President, Chief Financial Officer and Treasurer |
Date: | May 5, 2017 |
Total Number of S&S Citations | 0 |
Mine Act § 104(b) Orders | 0 |
Mine Act § 104(d) Citations and Orders | 5 |
Mine Act § 110(b)(2) Violations | 0 |
Mine Act § 107(a) Orders | 0 |
Total Dollar Value of Proposed MSHA Assessments | $580* |
Total Number of Mining Related Fatalities | 0 |
Received Written Notice of Pattern of Violation under Mine Act §104(e) (yes/no) | no |
Received Written Notice of Potential to Have Pattern under Mine Act §104(e) (yes/no) | no |
Document and Entity Information |
3 Months Ended |
---|---|
Mar. 31, 2017
shares
| |
Document and Entity Information [Abstract] | |
Entity Registrant Information | Alexander & Baldwin, Inc. |
Entity Central Index Key | 0001545654 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 49,147,711 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 7.0 | $ (7.0) |
Other Comprehensive Income: | ||
Reclassification adjustment for interest expense included in net income | 0.2 | 0.0 |
Defined benefit pension plans: | ||
Amortization of prior service credit included in net periodic pension cost | (0.3) | (0.3) |
Amortization of net loss included in net periodic pension cost | 1.2 | 1.8 |
Income taxes related to other comprehensive income | (0.4) | (0.5) |
Other Comprehensive Income | 0.7 | 1.0 |
Comprehensive Income (Loss) | 7.7 | (6.0) |
Comprehensive income attributable to noncontrolling interest | (0.7) | (0.5) |
Comprehensive Income (Loss) Attributable to A&B Shareholders | $ 7.0 | $ (6.5) |
Condensed Consolidated Balance Sheets - Parenthetical - $ / shares |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Par value | $ 0 | $ 0 |
Shares authorized | 150,000,000.0 | 150,000,000 |
Shares outstanding | 49,100,000 | 49,000,000 |
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.07 | $ 0.06 |
Description of Business |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Alexander & Baldwin, Inc. ("A&B" or the "Company") is headquartered in Honolulu and operates three segments: Commercial Real Estate (formerly Leasing); Land Operations (formerly Real Estate Development and Sales and Agribusiness); and Materials & Construction. On October 25, 2016, the Company's Board of Directors approved a plan to perform an in-depth exploration of a potential conversion of the Company to a real estate investment trust ("REIT"). Commercial Real Estate: The Commercial Real Estate segment owns, operates and manages retail, office and industrial properties in Hawaii and on the mainland. The Commercial Real Estate segment also leases urban land in Hawaii to third-party lessees. Land Operations: Primary activities of the Land Operations segment include planning, zoning, financing, constructing, purchasing, managing, selling, and investing in real property; renewable energy; and diversified agribusiness activities. The Land Operations segment also provides general trucking services, equipment maintenance and repair services, and generates and sells electricity to the extent not used elsewhere in the Company's operations. In December 2016, the Company's sugar plantation on Maui, Hawaiian Commercial & Sugar Company ("HC&S") completed its final harvest and ceased operations (the "Cessation"). See Note 14, "Cessation of Sugar Operations" for further discussion regarding the Cessation and the related costs associated with such exit and disposal activities. Materials & Construction: The Materials & Construction segment, which primarily includes the results of Grace Pacific ("Grace"), performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells rock and sand aggregate; produces and sells asphaltic concrete and ready-mix concrete; provides and sells various construction- and traffic-control-related products; and manufactures and sells precast concrete products. |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The interim condensed consolidated financial statements are unaudited. Because of the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. While these condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated balance sheets as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended December 31, 2016 and the notes thereto included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2016 ("2016 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission. Reclassifications: Prior year financial statement amounts are reclassified as necessary to conform to the current year presentation, including presentation of results of discontinued operations and reportable operating segments. There was no impact on net income, retained earnings or cash flows as a result of the reclassifications. See Note 17 "Discontinued Operations" and Note 18 "Segment Results" in the accompanying condensed consolidated financial statements for additional information. Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million, but per-share calculations and percentages were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. New Accounting Pronouncements: In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. This ASU is to be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB reached a decision to defer the effective date of the amended guidance. In August 2015, ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, was issued which defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of adopting this new accounting standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, lease arrangements exceeding a twelve month term must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. ASU 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) ("ASU 2016-15"). ASU 2016-15 is an update that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice of cash receipts and cash payments presentation and classification in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 provides guidance regarding the definition of a business with the objective of providing guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. ASU 2017-01 should be applied prospectively and early adoption is permitted. The new guidance will result in many real estate transactions being classified as an asset acquisition and transaction costs being capitalized. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years or interim periods beginning after December 15, 2019. ASU 2017-04 should be applied prospectively and early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). ASU 2017-07 provides that entities will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. In addition, entities will present the other components of net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. These components will not be eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years or interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments, Guarantees and Contingencies: Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet, excluding lease commitments that are disclosed in Note 9 of the Company’s 2016 Form 10-K, included the following (in millions) as of March 31, 2017:
(a) Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate primarily to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit have been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon. (b) Represents bonds related to construction and real estate activities in Hawaii. Approximately $391.7 million is related to construction bonds issued by third party sureties (bid, performance and payment bonds) and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. Indemnity Agreements: For certain real estate joint ventures, the Company may be obligated under bond indemnities to complete construction of the real estate development if the joint venture does not perform. These indemnities are designed to protect the surety in exchange for the issuance of surety bonds that cover joint venture construction activities, such as project amenities, roads, utilities, and other infrastructure, at its joint ventures. Under the indemnities, the Company and its joint venture partners agree to indemnify the surety bond issuer from all losses and expenses arising from the failure of the joint venture to complete the specified bonded construction. The maximum potential amount of aggregate future payments is a function of the amount covered by outstanding bonds at the time of default by the joint venture, reduced by the amount of work completed to date. The recorded amounts of the indemnity liabilities were not material individually or in the aggregate. The Company is a guarantor of indebtedness for certain of its unconsolidated joint ventures' borrowings with third party lenders, relating to the repayment of construction loans and performance of construction for the underlying project. As of March 31, 2017, the Company's limited guarantees on indebtedness related to five of its unconsolidated joint ventures totaled $7.7 million. The Company has not incurred any significant historical losses related to guarantees on its joint venture indebtedness. Other than the obligations described above and those described in the Company's 2016 Form 10-K, obligations of the Company’s non-consolidated joint ventures do not have recourse to the Company and the Company’s "at-risk" amounts are limited to its investment. Legal Proceedings and Other Contingencies: A&B owns 16,000 acres of watershed lands in East Maui that supply a significant portion of the irrigation water used by HC&S. A&B also held four water licenses to another 30,000 acres owned by the State of Hawaii in East Maui which, over the last ten years, have supplied approximately 56 percent of the irrigation water used by HC&S. The last of these water license agreements expired in 1986, and all four agreements were then extended as revocable permits that were renewed annually. In 2001, a request was made to the State Board of Land and Natural Resources (the "BLNR") to replace these revocable permits with a long-term water lease. Pending the conclusion by the BLNR of this contested case hearing on the request for the long-term lease, the BLNR has kept the existing permits on a holdover basis. Three parties filed a lawsuit on April 10, 2015 (the "4/10/15 Lawsuit") alleging that the BLNR has been renewing the revocable permits annually rather than keeping them in holdover status. The lawsuit asks the court to void the revocable permits and to declare that the renewals were illegally issued without preparation of an environmental assessment ("EA"). In December 2015, the BLNR decided to reaffirm its prior decisions to keep the permits in holdover status. This decision by the BLNR is being challenged by the three parties. In January 2016, the court ruled in the 4/10/15 Lawsuit ruled that the renewals were not subject to the EA requirement, but that the BLNR lacked legal authority to keep the revocable permits in holdover status beyond one year. The court has allowed the parties to take an immediate appeal of this ruling. In May 2016, the Hawaii State Legislature passed House Bill 2501, which specified that the BLNR has the legal authority to issue holdover revocable permits for the disposition of water rights for a period not to exceed three years. The governor signed this bill into law as Act 126 in June 2016. Pursuant to Act 126, the first annual authorization of the existing holdover permits was sought and granted by the BLNR in December 2016. In addition, on May 24, 2001, petitions were filed by a third party, requesting that the Commission on Water Resource Management of the State of Hawaii ("Water Commission") establish interim instream flow standards ("IIFS") in 27 East Maui streams that feed the Company's irrigation system. The Water Commission initially took action on the petitions in 2008 and 2010, but the petitioners requested a contested case hearing to challenge the Water Commission's decisions on certain petitions. The Water Commission denied the contested case hearing request, but the petitioners successfully appealed the denial to the Hawaii Intermediate Court of Appeals, which ordered the Water Commission to grant the request. The Commission then authorized the appointment of a hearings officer for the contested case hearing and expanded the scope of the contested case hearing to encompass all 27 petitions for amendment of the IIFS for East Maui streams in 23 hydrologic units. The evidentiary phase of the hearing before the Commission-appointed hearings officer was completed on April 2, 2015. On January 15, 2016, the Commission-appointed hearings officer issued his recommended decision on the petitions. The recommended decision would restore water to streams in 11 of the 23 hydrologic units. In March 2016, the hearings officer ordered a reopening of the contested case proceedings in light of the Company’s January 2016 announcement to cease sugar operations at HC&S by the end of the year and to transition to a new diversified agricultural model on the former sugar lands. In April 2016, the Company announced its commitment to fully and permanently restore the priority taro streams identified by the petitioners. Re-opened evidentiary hearings occurred in the first quarter of 2017 and a decision is pending. HC&S also used water from four streams in Central Maui ("Na Wai Eha") to irrigate its agricultural lands in Central Maui. Beginning in 2004, the Water Commission began proceedings to establish interim instream flow standards (IIFS) for the Na Wai Eha streams. Before the IIFS proceedings were concluded, the Water Commission designated Na Wai Eha as a surface water management area, meaning that all uses of water from these streams required water use permits issued by the Water Commission. Following contested case proceedings, the Water Commission established IIFS in 2010, but that decision was appealed, and the Hawaii Supreme Court remanded the case to the Water Commission for further proceedings. The parties to the IIFS contested case settled the case in 2014. Thereafter, proceedings for the issuance of water use permits commenced with over 100 applicants, including HC&S, vying for permits. While the water use permit proceedings were ongoing, A&B announced the cessation of sugar cane cultivation at the end of 2016. This announcement triggered a re-opening and reconsideration of the 2014 IIFS decision. Reconsideration of the IIFS is taking place simultaneously with consideration of the applications for water use permits. If the Company is not permitted to use sufficient quantities of stream waters, it would have a material adverse effect on the Company’s pursuit of a diversified agribusiness model in subsequent years and the value of the Company’s agricultural lands. A&B is a party to, or may be contingently liable in connection with, other legal actions arising in the normal conduct of its businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on A&B’s condensed consolidated financial statements as a whole. |
Earnings Per Share (“EPS”) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share (“EPS”) | EARNINGS PER SHARE ("EPS") Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table provides a reconciliation of income from continuing operations to income from continuing operations available to A&B shareholders (in millions):
The number of shares used to compute basic and diluted earnings per share is as follows (in millions):
Basic earnings per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares, if any, that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of common stock include non-qualified stock options and restricted stock units. There were no anti-dilutive securities outstanding during the three months ended March 31, 2017. During the three months ended March 31, 2016, anti-dilutive securities totaled 0.3 million shares. In January 2017, the Company granted to employees 61,733 shares of time-based restricted stock units, and 37,244 shares of market-based performance share units. The time-based restricted stock units vest ratably over 3 years and the performance share units cliff vest over 3 years, provided that the minimum level of the 3-year performance objectives is achieved. |
Fair Value of Financial Instruments |
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Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of receivables and short-term borrowings approximate their carrying values due to the short-term nature of the instruments. The Company’s cash and cash equivalents, consisting principally of cash on deposit, may from time to time include short-term money market funds. The fair values of these money market funds, based on market prices (Level 2), approximate their carrying values due to their short-maturities. The carrying amount and fair value of the Company’s long-term debt at March 31, 2017 was $560.0 million and $566.7 million, respectively, and $515.1 million and $529.3 million at December 31, 2016, respectively. The fair value of long-term debt is calculated by discounting the future cash flows of the debt at rates based on instruments with similar risk, terms and maturities as compared to the Company’s existing debt arrangements (Level 2). |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Sugar inventories are stated at the lower of cost (first-in, first-out basis) or market value. Materials and supplies and Materials & Construction segment inventory are stated at the lower of cost (principally average cost, first-in, first-out basis) or market value. Inventories at March 31, 2017 and December 31, 2016 were as follows (in millions):
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Share-Based Payment Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Awards | SHARE-BASED PAYMENT AWARDS The following table summarizes the Company's stock option activity during 2017 (in thousands, except weighted average exercise price and weighted average contractual life):
The following table summarizes 2017 non-vested restricted stock unit activity (in thousands, except weighted average grant-date fair value amounts):
A portion of the restricted stock unit awards are time-based awards that vest ratably over three years. The remaining portion of the awards represents market-based awards that cliff vest after two or three years, provided that the total shareholder return of the Company’s common stock over the relevant period meets or exceeds pre-defined levels of relative total shareholder returns of the Standard & Poor’s MidCap 400 Index, the Russell 2000 index, and the Dow Jones U.S. Real Estate Index. The fair value of the Company’s time-based awards is determined using the Company's stock price on the date of grant. The fair value of the Company's market-based awards is estimated using the Company's stock price on the date of grant and the probability of vesting using a Monte Carlo simulation with the following weighted average assumptions:
A summary of compensation cost related to share-based payments is as follows (in millions):
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Related Party Transactions |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Construction Contracts and Material Sales. The Company entered into contracts in the ordinary course of business, as a supplier, with affiliates that are members in entities in which the Company also is a member. Revenues earned from transactions with affiliates totaled approximately $3.9 million and $2.1 million for the quarters ended March 31, 2017 and 2016, respectively. Receivables from these affiliates were $3.2 million and $1.6 million at March 31, 2017 and 2016, respectively. Amounts due to these affiliates were $0.2 million and $0.5 million at March 31, 2017 and 2016, respectively. Commercial Real Estate. The Company entered into contracts in the ordinary course of business, as a lessor of property, with unconsolidated affiliates in which the Company has an interest, as well as with certain entities that are owned by a director of the Company. Revenues earned from these transactions were $1.4 million as of March 31, 2017 and immaterial as of March 31, 2016. Receivables from these affiliates were immaterial as of March 31, 2017 and 2016. During the quarters ended March 31, 2017 and 2016, the Company recorded developer fee revenues of approximately $0.7 million and $0.2 million related to management and administrative services provided to certain unconsolidated investments in affiliates. Receivables from these affiliates were immaterial as of March 31, 2017 and 2016. |
Employee Benefit Plans |
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Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost recorded for the quarters ended March 31, 2017 and 2016 were as follows (in millions):
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Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS Manoa Marketplace Acquisition. The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations, ("ASC 805") to acquisitions that constitute a business, as defined. Under ASC 805, assets acquired and liabilities assumed are recorded at fair value. The excess of the purchase price over the net fair value of assets acquired and liabilities assumed is recorded as goodwill. The fair values of assets acquired and liabilities assumed are determined through the market, income or cost approaches, and the valuation approach is generally based on the specific characteristics of the asset or liability. Under the market approach, value is estimated using information from transactions in which other participants in the market have paid for reasonably similar assets that have been sold within a reasonable period from the valuation date. Adjustments are made to compensate for differences between reasonably similar assets and the item being valued. Under the income approach, the future cash flows expected to be received over the life of the asset, taking into account a variety of factors, such as long-term growth rates and the amount and timing of cash flows, are discounted to present value using a rate of return that accounts for the time value of money and investment risk factors. Under the cost approach, the Company estimates the cost to replace the asset with a new asset taking into consideration a variety of factors such as age, physical condition, functional obsolescence and economic obsolescence. The fair value of liabilities assumed is calculated as the net present value of estimated payments using prevailing market interest rates for liabilities with similar credit risk and terms. On January 29, 2016 the Company consummated the purchase of the leasehold and leased fee interests in Manoa Marketplace, a multi-tenant neighborhood shopping center in Honolulu for $82.4 million through a 1031 transaction. The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):
The finite-lived intangible assets related to in-place leases and favorable leases are amortized over their respective lease terms. As of the acquisition date, the weighted-average remaining lives of the in-place leases and favorable leases were approximately 5 and 3 years, respectively. In connection with the Manoa Marketplace transaction, the Company incurred approximately $1.1 million of acquisition-related expenses during the three months ended March 31, 2016. The costs are included in selling, general and administrative costs in the accompanying condensed consolidated statements of operations and are reported in the Commercial Real Estate segment for segment reporting purposes. |
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component for the quarter ended March 31, 2017 were as follows (in millions, net of tax):
The reclassifications of other comprehensive income components out of accumulated other comprehensive loss for the quarters ended March 31, 2017 and 2016 were as follows (in millions):
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Income Taxes |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company's effective tax rate was lower for the quarter ended March 31, 2017 compared to the same period in 2016 due primarily to the inclusion of excess tax benefits related to share-based compensation in income taxes. These excess tax benefits were included in paid-in capital in 2016. The Company recognizes accrued interest on income taxes in income tax expense. As of March 31, 2017, accrued interest was not material. As of March 31, 2017, the Company has not identified any material unrecognized tax positions. In 2016, the Company invested $15.4 million in Waihonu Equity Holdings, LLC ("Waihonu"), an entity that operates two photovoltaic facilities with a combined capacity of 6.5 megawatts in Mililani, Oahu. The Company accounts for its investment in Waihonu under the equity method. The investment return from the Company's investment in Waihonu is principally composed of non-refundable federal and refundable state tax credits. The federal tax credits are accounted for using the flow through method, which reduces the provision for income taxes in the year that the federal tax credits first become available. During 2016, the Company recognized income tax benefits of approximately $8.7 million related to the non-refundable tax credits, $2.9 million related to the refundable state tax credits in Income Tax Receivable, as well as a corresponding reduction to the carrying amount of its investment in Waihonu, recorded in Investments in Affiliates in the accompanying condensed consolidated balance sheets. For the quarter ended March 31, 2017, the Company recorded a reduction to the carrying value of its Waihonu solar investment of $2.0 million in Reduction in Solar Investments, net in the accompanying condensed consolidated statements of operations. |
Notes Payable and Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable and Long-Term Debt | NOTES PAYABLE AND LONG-TERM DEBT At March 31, 2017 and December 31, 2016, notes payable and long-term debt consisted of the following (in millions):
(a) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate. (b) Loan has an effective interest rate of 2.82% for 2017 and 2.82% for 2016. (c) Loan has a stated interest rate of LIBOR plus 1.00%, but is swapped through maturity to a 5.98% fixed rate. (d) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. |
Cessation of Sugar Operations |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cessation of Sugar Operations | CESSATION OF SUGAR OPERATIONS A summary of the pre-tax costs and remaining costs associated with the Cessation is as follows (in millions):
A rollforward of the Cessation-related liabilities during the quarter ended March 31, 2017 is as follows (in millions):
1 Includes asset retirement obligations. The Cessation-related liabilities were included in the accompanying condensed consolidated balance sheets as follows (in millions):
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Investments in Affiliates |
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Investments in and Advances to Affiliates, Balance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Affiliates | INVESTMENTS IN AFFILIATES The Company's investments in affiliates consist principally of equity investments in limited liability companies in which the Company has the ability to exercise significant influence over the operating and financial policies of these investments. Accordingly, the Company accounts for its investments using the equity method of accounting. Operating results include the Company's proportionate share of net income from its equity method investments. A summary of combined financial information related to the Company's equity method investments for the three months ended March 31 is as follows (in millions):
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company is exposed to interest rate risk related to its floating rate interest debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed and floating rate debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk. Cash Flow Hedges of Interest Rate Risk During 2016, the Company entered into an interest rate swap agreement with a notional amount of $60.0 million which was designated as a cash flow hedge. The Company structured the interest rate swap agreement to hedge the variability of future interest payments due to changes in interest rates with regards to the Company's long-term debt. A summary of the key terms related to the Company's outstanding cash flow hedge as of March 31, 2017 is as follows (dollars in millions):
The Company assessed the effectiveness of the cash flow hedge at inception and will continue to do so on an ongoing basis. The effective portion of the changes in fair value of the cash flow hedge is recorded in accumulated other comprehensive loss and subsequently reclassified into interest expense as interest is incurred on the related-variable rate debt. When ineffectiveness exists, the ineffective portion of changes in fair value of the cash flow hedge is recognized in earnings in the period affected. Non-designated Hedges As of March 31, 2017, the Company has two interest rate swaps that have not been designated as cash flow hedges whose key terms are as follows (dollars in millions):
The following table represents the effect of the derivative instruments in the Company's condensed consolidated statements of operations and of comprehensive income (loss) (in millions):
The Company records gains or losses related to interest rate swaps that have not been designated as cash flow hedges in interest expense in its condensed consolidated statements of operations, and the amounts were immaterial during each of the quarters ended March 31, 2017 and 2016. The Company measures all of its interest rate swaps at fair value. The fair values of the Company's interest rate swaps (Level 2) are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS In December 2016, HC&S completed its final harvest and the Company ceased its sugar operations. The historical results of operations have been presented as discontinued operations in the condensed consolidated financial statements and prior periods have been recast. The revenue, operating profit, gain on asset dispositions, income tax (expense) benefit and after-tax effects of these transactions for the quarters ended March 31, 2017 and 2016 were as follows (in millions):
There was no depreciation and amortization related to discontinued operations during the quarter ended March 31, 2017. Depreciation and amortization related to discontinued operations was $16.6 million for the quarter ended March 31, 2016. |
Segment Results |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | SEGMENT RESULTS Segment results were as follows (in millions):
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 25, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per share of outstanding common stock, which will be paid on June 1, 2017 to shareholders of record as of May 8, 2017. |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2017 | |
Basis of Presentation [Abstract] | |
Reclassifications | Reclassifications: Prior year financial statement amounts are reclassified as necessary to conform to the current year presentation, including presentation of results of discontinued operations and reportable operating segments. There was no impact on net income, retained earnings or cash flows as a result of the reclassifications. See Note 17 "Discontinued Operations" and Note 18 "Segment Results" in the accompanying condensed consolidated financial statements for additional information. |
Rounding | Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million, but per-share calculations and percentages were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. |
New Accounting Pronouncements | New Accounting Pronouncements: In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. This ASU is to be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB reached a decision to defer the effective date of the amended guidance. In August 2015, ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, was issued which defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of adopting this new accounting standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, lease arrangements exceeding a twelve month term must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. ASU 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) ("ASU 2016-15"). ASU 2016-15 is an update that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice of cash receipts and cash payments presentation and classification in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017-01 provides guidance regarding the definition of a business with the objective of providing guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. ASU 2017-01 should be applied prospectively and early adoption is permitted. The new guidance will result in many real estate transactions being classified as an asset acquisition and transaction costs being capitalized. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years or interim periods beginning after December 15, 2019. ASU 2017-04 should be applied prospectively and early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). ASU 2017-07 provides that entities will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. In addition, entities will present the other components of net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. These components will not be eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years or interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
Commitments and Contingencies (Tables) |
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Mar. 31, 2017 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Summary of Commitments and Financial Arrangements | Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet, excluding lease commitments that are disclosed in Note 9 of the Company’s 2016 Form 10-K, included the following (in millions) as of March 31, 2017:
(a) Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate primarily to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit have been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon. (b) Represents bonds related to construction and real estate activities in Hawaii. Approximately $391.7 million is related to construction bonds issued by third party sureties (bid, performance and payment bonds) and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. |
Earnings Per Share (“EPS”) (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Income and Computation of Earnings per Share | The following table provides a reconciliation of income from continuing operations to income from continuing operations available to A&B shareholders (in millions):
The number of shares used to compute basic and diluted earnings per share is as follows (in millions):
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Inventories (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories at March 31, 2017 and December 31, 2016 were as follows (in millions):
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Share-Based Payment Awards (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes the Company's stock option activity during 2017 (in thousands, except weighted average exercise price and weighted average contractual life):
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Summary of Non-vested Restricted Stock Unit Activity | The following table summarizes 2017 non-vested restricted stock unit activity (in thousands, except weighted average grant-date fair value amounts):
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Schedule of Fair Value Assumptions of Market-based Awards | The fair value of the Company's market-based awards is estimated using the Company's stock price on the date of grant and the probability of vesting using a Monte Carlo simulation with the following weighted average assumptions:
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Summary of Compensation Cost related to Share-based Payments | A summary of compensation cost related to share-based payments is as follows (in millions):
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Employee Benefit Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost recorded for the quarters ended March 31, 2017 and 2016 were as follows (in millions):
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Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss by component for the quarter ended March 31, 2017 were as follows (in millions, net of tax):
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Summary of Reclassifications of Other Comprehensive Income | The reclassifications of other comprehensive income components out of accumulated other comprehensive loss for the quarters ended March 31, 2017 and 2016 were as follows (in millions):
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Notes Payable and Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable and Long-term Debt | At March 31, 2017 and December 31, 2016, notes payable and long-term debt consisted of the following (in millions):
(a) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate. (b) Loan has an effective interest rate of 2.82% for 2017 and 2.82% for 2016. (c) Loan has a stated interest rate of LIBOR plus 1.00%, but is swapped through maturity to a 5.98% fixed rate. (d) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. |
Cessation of Sugar Operations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Pre-tax Costs and Remaining Costs Associated with Restructuring and Summary of Activity Related to Cessation Accruals | A summary of the pre-tax costs and remaining costs associated with the Cessation is as follows (in millions):
A rollforward of the Cessation-related liabilities during the quarter ended March 31, 2017 is as follows (in millions):
1 Includes asset retirement obligations. The Cessation-related liabilities were included in the accompanying condensed consolidated balance sheets as follows (in millions):
|
Investments in Affiliates (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advances to Affiliates, Balance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Financial Information Related to Equity Method Investments | A summary of combined financial information related to the Company's equity method investments for the three months ended March 31 is as follows (in millions):
|
Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Swap | A summary of the key terms related to the Company's outstanding cash flow hedge as of March 31, 2017 is as follows (dollars in millions):
As of March 31, 2017, the Company has two interest rate swaps that have not been designated as cash flow hedges whose key terms are as follows (dollars in millions):
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Schedule of Derivative Instruments in Consolidated Statements of Operations | The following table represents the effect of the derivative instruments in the Company's condensed consolidated statements of operations and of comprehensive income (loss) (in millions):
|
Discontinued Operations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revenue, Operating Profit, Income Tax Expense and After-tax Effects of Sales Treated as Discontinued Operations | The revenue, operating profit, gain on asset dispositions, income tax (expense) benefit and after-tax effects of these transactions for the quarters ended March 31, 2017 and 2016 were as follows (in millions):
|
Segment Results (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Results | Segment results were as follows (in millions):
|
Description of Business (Details) |
3 Months Ended |
---|---|
Mar. 31, 2017
Segment
| |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Commercial Real Estate | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Land Operations | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Materials and Construction | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Commitments and Contingencies - Summary of Commitments, Guarantees and Contingencies (Details) - Maximum $ in Millions |
Mar. 31, 2017
USD ($)
|
|||||
---|---|---|---|---|---|---|
Standby letters of credit | ||||||
Loss Contingencies [Line Items] | ||||||
Maximum amount of possible loss contingency | $ 12.7 | [1] | ||||
Bonds related to real estate and construction | ||||||
Loss Contingencies [Line Items] | ||||||
Maximum amount of possible loss contingency | 414.1 | [2] | ||||
Performance Bond | ||||||
Loss Contingencies [Line Items] | ||||||
Maximum amount of possible loss contingency | $ 391.7 | |||||
|
Earnings Per Share (“EPS”) - Narrative (Details) - shares |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jan. 31, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Anti-dilutive securities excluded from the computation of weighted average dilutive shares outstanding (in shares) | 0 | 300,000 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 61,733 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 37,244 | ||
Vesting period | 3 years |
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Carrying Amount | ||
Fair Value Measuremnt of Long-term Debt [Line Items] | ||
Long-term debt value | $ 560.0 | $ 515.1 |
Fair Value | ||
Fair Value Measuremnt of Long-term Debt [Line Items] | ||
Long-term debt value | $ 566.7 | $ 529.3 |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory [Line Items] | ||
Inventories | $ 28.0 | $ 43.3 |
Sugar inventories | ||
Inventory [Line Items] | ||
Inventories | 0.3 | 17.5 |
Asphalt | ||
Inventory [Line Items] | ||
Inventories | 8.4 | 7.4 |
Processed rock, Portland cement, and sand | ||
Inventory [Line Items] | ||
Inventories | 12.4 | 12.6 |
Work in progress | ||
Inventory [Line Items] | ||
Inventories | 3.4 | 3.0 |
Retail merchandise | ||
Inventory [Line Items] | ||
Inventories | 1.7 | 1.7 |
Parts, materials and supplies inventories | ||
Inventory [Line Items] | ||
Inventories | $ 1.8 | $ 1.1 |
Share-Based Payment Awards - Narrative (Details) |
1 Months Ended | 3 Months Ended |
---|---|---|
Jan. 31, 2017 |
Mar. 31, 2017 |
|
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Shares | Two years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Performance Shares | Three years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
2012 Plan | Restricted Stock Units (RSUs) | Time-Based Vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
Share-Based Payment Awards - Summary of Non-vested Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - $ / shares |
1 Months Ended | 3 Months Ended |
---|---|---|
Jan. 31, 2017 |
Mar. 31, 2017 |
|
2012 plan restricted stock units | ||
Granted (in shares) | 61,733 | |
2012 Plan | ||
2012 plan restricted stock units | ||
Outstanding, beginning balance (in shares) | 293,500 | 293,500 |
Granted (in shares) | 99,000 | |
Vested (in shares) | (82,300) | |
Canceled (in shares) | (3,600) | |
Outstanding, ending balance (in shares) | 306,600 | |
Weighted average grant-date fair value | ||
Outstanding, beginning balance (in dollars per share) | $ 33.81 | $ 33.81 |
Granted (in dollars per share) | 43.93 | |
Vested (in dollars per share) | 36.92 | |
Canceled (in dollars per share) | 39.43 | |
Outstanding, ending balance (in dollars per share) | $ 36.18 |
Share-Based Payment Awards - Schedule of Fair Value Assumptions of Market-based Awards (Details) - Restricted Stock Units (RSUs) - 2012 Plan - Time-Based Vesting |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of A&B common stock | 25.40% | 26.30% |
Average volatility of peer companies | 25.70% | 27.70% |
Risk-free interest rate | 1.50% | 1.10% |
Share-Based Payment Awards - Summary of Compensation Cost related to Share-based Payments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based expense | $ 1.1 | $ 1.1 |
Total recognized tax benefit | (0.4) | (0.3) |
Share-based expense (net of tax) | 0.7 | 0.8 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based expense | $ 1.1 | $ 1.1 |
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Materials and Construction | Supplier Contracts | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 3.9 | $ 2.1 |
Receivables from related parties | 3.2 | 1.6 |
Due to related parties | 0.2 | 0.5 |
Real estate leasing and development | Management And Administrative Services, Developer Fee Revenue | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 0.7 | $ 0.2 |
Real estate leasing and development | Lease Agreements | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 1.4 |
Employee Benefit Plans - Summary of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Pension Benefits | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | $ 0.8 | $ 0.8 |
Interest cost | 2.1 | 2.3 |
Expected return on plan assets | (2.4) | (2.5) |
Amortization of net loss included in net periodic pension cost | 1.2 | 1.8 |
Amortization of prior service credit | (0.3) | (0.3) |
Curtailment gain | 0.0 | (0.2) |
Net periodic benefit cost | 1.4 | 1.9 |
Post-retirement Benefits | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 0.1 | 0.0 |
Interest cost | 0.1 | 0.1 |
Expected return on plan assets | 0.0 | 0.0 |
Amortization of net loss included in net periodic pension cost | 0.0 | 0.0 |
Amortization of prior service credit | 0.0 | 0.0 |
Curtailment gain | 0.0 | 0.0 |
Net periodic benefit cost | $ 0.2 | $ 0.1 |
Acquisitions - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 29, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Business Acquisition [Line Items] | |||
Reduction in investment | $ 2.0 | $ 0.0 | |
Manoa Marketplace | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 82.4 | ||
Leases, Acquired-in-Place | Manoa Marketplace | |||
Business Acquisition [Line Items] | |||
Weighted-average remaining lives of acquired finite-lived intangible assets | 5 years | ||
Above Market Leases | Manoa Marketplace | |||
Business Acquisition [Line Items] | |||
Weighted-average remaining lives of acquired finite-lived intangible assets | 3 years | ||
Selling, General and Administrative Expenses | Manoa Marketplace | |||
Business Acquisition [Line Items] | |||
Business acquisition related expenses | $ 1.1 | ||
Waihonu Equity Holdings, LLC | |||
Business Acquisition [Line Items] | |||
Reduction in investment | $ 2.0 |
Acquisitions - Allocation of Purchase Price (Details) - Manoa Marketplace $ in Millions |
Jan. 29, 2016
USD ($)
|
---|---|
Assets acquired: | |
Land | $ 40.5 |
Building | 36.8 |
Total assets acquired | 85.6 |
Total liabilities assumed | 3.2 |
Net assets acquired | 82.4 |
Leases, Acquired-in-Place | |
Assets acquired: | |
Finite-lived intangibles | 7.0 |
Above Market Leases | |
Assets acquired: | |
Finite-lived intangibles | $ 1.3 |
Accumulated Other Comprehensive Loss - Summary of Reclassifications of Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Reclassification adjustment for interest expense included in net income (loss) | $ (0.2) | $ 0.0 |
Amortization of prior service credit included in net periodic pension cost | (0.3) | (0.3) |
Net loss | 1.2 | 1.8 |
Total before income tax | 1.1 | 1.5 |
Income taxes | (0.4) | (0.5) |
Other Comprehensive Income | $ 0.7 | $ 1.0 |
Income Taxes (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
photovoltaic_facility
MW
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Income Tax Contingency [Line Items] | ||||
Reductions in solar investments | $ 2.0 | $ 0.0 | ||
Waihonu Equity Holdings, LLC | ||||
Income Tax Contingency [Line Items] | ||||
Amount invested in equity method investments | $ 15.4 | |||
Number of photovoltaic facilities constructing | photovoltaic_facility | 2 | |||
Power capacity (in megawatts) | MW | 6.5 | |||
Reductions in solar investments | $ 2.0 | |||
Federal Tax Authority [Member] | Income Tax Receivable [Member] | Waihonu Equity Holdings, LLC | ||||
Income Tax Contingency [Line Items] | ||||
Tax benefits recognized related to non-refundable tax credits | $ 8.7 | |||
State Tax Authority [Member] | Income Tax Receivable [Member] | Waihonu Equity Holdings, LLC | ||||
Income Tax Contingency [Line Items] | ||||
Tax benefits recognized related to non-refundable tax credits | $ 2.9 |
Cessation of Sugar Operations - Summary of Pre-tax Costs and Remaining Costs Associated with Restructuring (Details) - HC&S - USD ($) $ in Millions |
3 Months Ended | 21 Months Ended |
---|---|---|
Mar. 31, 2017 |
Sep. 30, 2016 |
|
Total Cessation-related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges Incurred | $ 1.3 | $ 101.5 |
Total Cessation-related costs | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining to be recognized | 2.3 | |
Total Expected Cost | 103.8 | |
Employee severance benefits and related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges Incurred | 0.3 | 22.1 |
Employee severance benefits and related costs | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining to be recognized | 0.0 | |
Total Expected Cost | 22.1 | |
Asset write-offs and accelerated depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges Incurred | 0.0 | 71.3 |
Asset write-offs and accelerated depreciation | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining to be recognized | 0.0 | |
Total Expected Cost | 71.3 | |
Property removal, restoration and other exit-related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges Incurred | 1.0 | $ 8.1 |
Property removal, restoration and other exit-related costs | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining to be recognized | 2.3 | |
Total Expected Cost | $ 10.4 |
Cessation of Sugar Operations - Rollforward of Restructuring Liabilities (Details) - HC&S $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
| ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 19.1 | |||
Expense | 1.3 | |||
Cash payments | (14.0) | |||
Restructuring reserve, ending balance | 6.4 | |||
Employee severance benefits and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 13.7 | |||
Expense | 0.3 | |||
Cash payments | (13.1) | |||
Restructuring reserve, ending balance | 0.9 | |||
Property removal, restoration and other exit-related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 5.4 | [1] | ||
Expense | 1.0 | [1] | ||
Cash payments | (0.9) | [1] | ||
Restructuring reserve, ending balance | $ 5.5 | [1] | ||
|
Cessation of Sugar Operations - Cessation-related Liabilities Included in the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Restructuring Cost and Reserve [Line Items] | ||
Total Cessation-related liabilities | $ 6.4 | $ 19.1 |
HC&S | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Cessation-related liabilities | 6.4 | 19.1 |
HC&S | HC&S cessation-related liabilities | Employee severance benefits and related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Cessation-related liabilities | 0.9 | 13.7 |
HC&S | HC&S cessation-related liabilities | Other exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Cessation-related liabilities | $ 5.5 | $ 5.4 |
Investments in Affiliates (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Investments in and Advances to Affiliates, Balance [Abstract] | ||
Revenues | $ 40.6 | $ 47.2 |
Gross Profit | 7.0 | 8.5 |
Income from continuing operations | 3.3 | 4.6 |
Net Income | $ 3.3 | $ 4.6 |
Derivative Instruments - Cash Flow Hedges of Interest Rate Swaps (Details) - Cash Flow Hedging - Interest Rate Swap - Designated as Hedging Instrument - USD ($) |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative [Line Items] | ||
Notional amount at | $ 60,000,000.0 | |
Other Assets | ||
Derivative [Line Items] | ||
Interest rate | 3.135% | |
Notional amount at | $ 60,000,000 | |
Fair value of interest rate swap liability | $ (3,000,000) | $ (2,800,000) |
Derivative Instruments - Non-designated Hedges Interest Rate Swaps (Details) - Not Designated as Hedging Instrument |
Mar. 31, 2017
USD ($)
interest_rate_swap
|
Dec. 31, 2016
USD ($)
|
---|---|---|
9/1/2021 | Other Non-Current Liabilities | ||
Derivative [Line Items] | ||
Interest rate | 5.95% | |
Notional amount at | $ 11,100,000 | |
Fair value of interest rate swap liability | $ (1,200,000) | $ (1,300,000) |
3/1/2021 | Other Non-Current Liabilities | ||
Derivative [Line Items] | ||
Interest rate | 5.98% | |
Notional amount at | $ 5,800,000 | |
Fair value of interest rate swap liability | $ (400,000) | (500,000) |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate swap agreements | interest_rate_swap | 2 | |
Interest Rate Swap | Other Non-Current Liabilities | ||
Derivative [Line Items] | ||
Notional amount at | $ 16,900,000.0 | |
Fair value of interest rate swap liability | $ (1,600,000) | $ (1,800,000) |
Derivative Instruments - Derivative Instruments in Consolidated Statement of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Interest Expense | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Amounts reclassified from accumulated OCI into earnings under interest expense | $ 0.2 | $ 0.0 |
Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Operating loss before income taxes | $ (0.2) | $ (13.7) |
Income (loss) from discontinued operations before income taxes | 3.9 | (13.7) |
Income tax (expense) benefit | (1.5) | 2.9 |
Income (loss) from discontinued operations | $ 2.4 | $ (10.8) |
Basic earnings (loss) per share (in dollars per share) | $ 0.05 | $ (0.23) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.05 | $ (0.22) |
Depreciation and amortization related to discontinued Operations | $ 0.0 | $ 16.6 |
Land Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sugar operations revenue (Land Operations) | 22.1 | 17.4 |
Gain on asset dispositions, net | $ 4.1 | $ 0.0 |
Segment Results - Schedule of Segment Results (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||
Reduction in investment | $ 2.0 | $ 0.0 |
Revenue | 93.2 | 91.4 |
Operating profit | 17.5 | 17.9 |
Interest expense | (6.2) | (6.9) |
Gain on the sale of improved property | 3.0 | 0.0 |
General corporate expenses | (5.7) | (6.9) |
REIT evaluation costs2 | (4.8) | 0.0 |
Income from Continuing Operations Before Income Taxes | 3.8 | 4.1 |
Income tax benefit (expense) | 0.8 | (0.3) |
Income from Continuing Operations | 4.6 | 3.8 |
Income (loss) from discontinued operations, net of income taxes | 2.4 | (10.8) |
Net Income (Loss) | 7.0 | (7.0) |
Income attributable to noncontrolling interest | (0.7) | (0.5) |
Net income | 6.5 | (7.4) |
Net Income (Loss) Attributable to A&B Shareholders | 6.3 | (7.5) |
Commercial Real Estate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33.7 | 34.8 |
Operating profit | 14.3 | 13.1 |
Land Operations | ||
Segment Reporting Information [Line Items] | ||
Revenue | 11.0 | 6.0 |
Operating profit | (2.4) | (3.2) |
Materials and Construction | ||
Segment Reporting Information [Line Items] | ||
Revenue | 48.5 | 50.6 |
Operating profit | 5.6 | $ 8.0 |
Waihonu Equity Holdings, LLC | ||
Segment Reporting Information [Line Items] | ||
Reduction in investment | $ 2.0 |
Subsequent Events (Details) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Apr. 25, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Subsequent Event [Line Items] | |||
Cash dividends per share (in dollars per share) | $ 0.07 | $ 0.06 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividends per share (in dollars per share) | $ 0.07 |
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