10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ to _________________

Commission file number 001-35492

ALEXANDER & BALDWIN, INC.

(Exact name of registrant as specified in its charter)

Hawaii			45-4849780
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
P. O. Box 3440,	Honolulu,	Hawaii	96801
(Address of principal executive offices)			(Zip Code)

(808) 525-6611

(Registrant's telephone number, including area code)

N/A

(Former name, former address, and former

fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	ALEX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding as of September 30, 2019: 72,258,124

ALEXANDER & BALDWIN, INC.

FORM 10-Q

For the Quarterly Period Ended September 30, 2019

TABLE OF CONTENTS

			Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements		1
		Condensed Consolidated Balance Sheets - As of September 30, 2019 and December 31, 2018	1
		Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2019 and 2018	2
		Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Nine Months Ended September 30, 2019 and 2018	3
		Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2019 and 2018	4
		Condensed Consolidated Statements of Equity - Three and Nine Months Ended September 30, 2019 and 2018	6
		Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		39
Item 4.	Controls and Procedures		39
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		40
Item 4.	Mine Safety Disclosures		40
Item 5.	Other Information		40
Item 6.	Exhibit Index		41
	Signature		42

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ALEXANDER & BALDWIN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions) (Unaudited)

	September 30, 2019			December 31, 2018
ASSETS
Real estate investments
Real estate property	$	1,531.4		$	1,293.7
Accumulated depreciation	(124.3		)	(107.2		)
Real estate property, net	1,407.1			1,186.5
Real estate developments	93.8			155.2
Investments in real estate joint ventures and partnerships	135.4			141.0
Real estate intangible assets, net	78.7			59.8
Real estate investments, net	1,715.0			1,542.5
Cash and cash equivalents	7.2			11.4
Restricted cash	0.2			223.5
Accounts receivable and retention, net	67.8			61.2
Inventories	23.9			26.5
Other property, net	131.4			135.5
Operating lease right-of-use assets	22.7			—
Goodwill	15.4			65.1
Other receivables	28.7			56.8
Prepaid expenses and other assets	109.4			102.7
Total assets	$	2,121.7		$	2,225.2
LIABILITIES AND EQUITY
Liabilities:
Notes payable and other debt	$	732.4		$	778.1
Accounts payable	15.0			34.2
Operating lease liabilities	23.0			—
Accrued pension and post-retirement benefits	31.4			29.4
Indemnity holdbacks	7.5			16.3
Deferred revenue	68.4			63.2
Accrued and other liabilities	107.7			87.8
Total liabilities	985.4			1,009.0
Commitments and Contingencies
Redeemable Noncontrolling Interest	7.9			7.9
Equity:
Common stock - no par value; authorized, 150 million shares; outstanding, 72.3 million and 72.0 million shares at September 30, 2019 and December 31, 2018, respectively	1,797.4			1,793.4
Accumulated other comprehensive income (loss)	(55.0		)	(51.9		)
Distributions in excess of accumulated earnings	(617.6		)	(538.9		)
Total A&B shareholders' equity	1,124.8			1,202.6
Noncontrolling interest	3.6			5.7
Total equity	1,128.4			1,208.3
Total liabilities and equity	$	2,121.7		$	2,225.2

See Notes to Condensed Consolidated Financial Statements.

1

ALEXANDER & BALDWIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts) (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Operating Revenue:
Commercial Real Estate	$	42.7		$	35.9		$	118.6		$	104.9
Land Operations	8.5			24.0			82.4			72.6
Materials & Construction	37.9			59.5			126.6			167.3
Total operating revenue	89.1			119.4			327.6			344.8
Operating Costs and Expenses:
Cost of Commercial Real Estate	23.8			19.2			64.3			57.0
Cost of Land Operations	5.9			17.4			68.5			67.0
Cost of Materials & Construction	42.0			50.5			127.2			143.5
Selling, general and administrative	13.3			14.6			45.1			44.7
Goodwill impairment	49.7			—			49.7			—
Total operating costs and expenses	134.7			101.7			354.8			312.2
Gain (loss) on the sale of commercial real estate properties	—			—			—			49.8
Operating Income (Loss)	(45.6		)	17.7			(27.2		)	82.4
Income (loss) related to joint ventures	2.4			4.5			6.1			6.3
Interest and other income (expense), net (Note 2)	0.6			3.7			2.8			2.1
Interest expense	(8.2		)	(9.1		)	(25.4		)	(26.4		)
Income (Loss) from Continuing Operations Before Income Taxes	(50.8		)	16.8			(43.7		)	64.4
Income tax benefit (expense)	—			(1.0		)	1.1			1.8
Income (Loss) from Continuing Operations	(50.8		)	15.8			(42.6		)	66.2
Income (loss) from discontinued operations, net of income taxes	(0.1		)	(0.2		)	(0.8		)	(0.2		)
Net Income (Loss)	(50.9		)	15.6			(43.4		)	66.0
Loss (income) attributable to noncontrolling interest	1.1			(0.8		)	1.8			(1.4		)
Net Income (Loss) Attributable to A&B Shareholders	$	(49.8	)	$	14.8		$	(41.6	)	$	64.6
Basic Earnings (Loss) Per Share of Common Stock:
Continuing operations available to A&B shareholders	$	(0.69	)	$	0.21		$	(0.57	)	$	0.92
Discontinued operations available to A&B shareholders	—			—			(0.01		)	—
Net income (loss) available to A&B shareholders	$	(0.69	)	$	0.21		$	(0.58	)	$	0.92
Diluted Earnings (Loss) Per Share of Common Stock:
Continuing operations available to A&B shareholders	$	(0.69	)	$	0.20		$	(0.57	)	$	0.89
Discontinued operations available to A&B shareholders	—			—			(0.01		)	—
Net income (loss) available to A&B shareholders	$	(0.69	)	$	0.20		$	(0.58	)	$	0.89
Weighted-Average Number of Shares Outstanding:
Basic	72.3			72.0			72.2			70.2
Diluted	72.3			72.4			72.2			72.4
Amounts Available to A&B Shareholders (Note 4):
Continuing operations available to A&B shareholders	$	(49.7	)	$	15.0		$	(40.8	)	$	64.8
Discontinued operations available to A&B shareholders	(0.1		)	(0.2		)	(0.8		)	(0.2		)
Net income (loss) available to A&B shareholders	$	(49.8	)	$	14.8		$	(41.6	)	$	64.6

See Notes to Condensed Consolidated Financial Statements.

2

ALEXANDER & BALDWIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions) (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net Income (Loss)	$	(50.9	)	$	15.6		$	(43.4	)	$	66.0
Other Comprehensive Income (Loss), net of tax:
Unrealized interest rate hedging gain (loss)	(2.0		)	0.6			(5.5		)	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2			—			(0.1		)	—
Defined benefit pension plans:
Amortization of net loss included in net periodic pension cost	0.9			1.1			2.9			3.3
Amortization of prior service credit included in net periodic pension cost	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss	—			—			—			(0.4		)
Income taxes related to other comprehensive income (loss)	—			(0.4		)	—			(1.4		)
Other comprehensive income (loss), net of tax	(1.0		)	1.1			(3.1		)	4.0
Comprehensive Income (Loss)	(51.9		)	16.7			(46.5		)	70.0
Comprehensive (income) loss attributable to noncontrolling interest	1.1			(0.8		)	1.8			(1.4		)
Comprehensive Income (Loss) Attributable to A&B Shareholders	$	(50.8	)	$	15.9		$	(44.7	)	$	68.6

See Notes to Condensed Consolidated Financial Statements.

3

ALEXANDER & BALDWIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions) (Unaudited)

	Nine Months Ended September 30,
	2019			2018
Cash Flows from Operating Activities:
Net income (loss)	$	(43.4	)	$	66.0
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Depreciation and amortization	36.6			31.6
Deferred income taxes	—			(2.4		)
Loss (gain) on asset transactions, net	(2.6		)	(62.1		)
Goodwill impairment	49.7			—
Share-based compensation expense	4.1			4.0
(Income) loss from affiliates, net of distributions of income	(3.5		)	2.0
Changes in operating assets and liabilities:
Trade, contracts retention, and other contract receivables	(6.9		)	(4.9		)
Inventories	2.6			(0.3		)
Prepaid expenses, income tax receivable and other assets	25.8			(4.1		)
Accrued pension and post-retirement benefits	4.6			2.5
Accounts payable	(10.3		)	(8.3		)
Accrued and other liabilities	6.6			(7.3		)
Real estate development for sale proceeds	48.5			41.0
Expenditures for real estate development for sale	(7.8		)	(20.0		)
Net cash provided by (used in) operations	104.0			37.7
Cash Flows from Investing Activities:
Capital expenditures for acquisitions	(218.4		)	(201.6		)
Capital expenditures for property, plant and equipment	(31.8		)	(40.0		)
Proceeds from disposal of property, investments and other assets	3.0			169.3
Payments for purchases of investments in affiliates and other investments	(3.3		)	(21.3		)
Distributions of capital from investments in affiliates and other investments	12.2			32.8
Net cash provided by (used in) investing activities	(238.3		)	(60.8		)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	111.8			533.5
Payments of long-term debt and deferred financing costs	(155.3		)	(433.6		)
Borrowings (payments) on line-of-credit agreement, net	(5.1		)	(14.2		)
Distribution to noncontrolling interests	(0.3		)	(0.2		)
Cash dividends paid	(36.2		)	(156.6		)
Proceeds from issuance (repurchase) of common stock and other, net	(1.0		)	(1.3		)
Payment of deferred acquisition holdback	(7.1		)	—
Net cash provided by (used in) financing activities	(93.2		)	(72.4		)
Cash, Cash Equivalents and Restricted Cash:
Net increase (decrease) in cash, cash equivalents, and restricted cash	(227.5		)	(95.5		)
Balance, beginning of period	234.9			103.2
Balance, end of period	$	7.4		$	7.7

4

Other Cash Flow Information:
Interest paid, net of capitalized interest	$	(25.2	)	$	(26.1	)
Income tax (payments)/refunds, net	$	25.8		$	1.9
Noncash Investing and Financing Activities:
Capital expenditures included in accounts payable and accrued expenses	$	2.6		$	2.0
Fair value of loan assumed in connection with acquisition	$	—		$	61.0
Issuance of shares for stock dividend	$	—		$	626.4
Right-of-use ("ROU") assets and corresponding lease liability recorded upon ASC 842 adoption	$	31.0		$	—
Lease liabilities arising from obtaining ROU assets	$	1.7		$	—
Reconciliation of cash, cash equivalents and restricted cash:
Beginning of the period
Cash and cash equivalents	$	11.4		$	68.9
Restricted cash	223.5			34.3
Cash, cash equivalents and restricted cash	$	234.9		$	103.2
End of the period
Cash and cash equivalents	$	7.2		$	7.5
Restricted cash	0.2			0.2
Cash, cash equivalents and restricted cash	$	7.4		$	7.7

See Notes to Condensed Consolidated Financial Statements.

5

ALEXANDER & BALDWIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Nine Months Ended September 30, 2019 and 2018

(In millions) (Unaudited)

	Total Equity
	Common Stock				Accumulated Other Compre- hensive Income (Loss)			(Distribution in Excess of Accumulated Earnings)			Non-Controlling Interest			Total			Redeem- able Non- Controlling Interest
	Shares	Stated Value
Balance, January 1, 2018	49.3	$	1,161.7		$	(42.3	)	$	(473.0	)	$	4.7		$	651.1		$	8.0
Net income (loss)	—	—			—			64.6			0.8			65.4			0.6
Impact of adoption of ASU 2014-09	—	—			—			(1.4		)	—			(1.4		)	—
Other comprehensive income (loss), net of tax	—	—			4.0			—			—			4.0			—
Stock dividend ($11.65 per share)	22.6	626.4			—			—			—			626.4			—
Distributions to noncontrolling interest	—	—			—			—			(0.2		)	(0.2		)	—
Adjustments to redemption value of redeemable noncontrolling interest	—	—			—			0.6			—			0.6			(0.6		)
Share-based compensation	—	4.0			—			—			—			4.0			—
Shares issued or repurchased, net	0.1	—			—			(1.3		)	—			(1.3		)	—
Balance, September 30, 2018	72.0	$	1,792.1		$	(38.3	)	$	(410.5	)	$	5.3		$	1,348.6		$	8.0
	Total Equity
	Common Stock				Accumulated Other Compre- hensive Income (Loss)			(Distribution in Excess of Accumulated Earnings)			Non-Controlling Interest			Total			Redeem- able Non- Controlling Interest
	Shares	Stated Value
Balance, January 1, 2019	72.0	$	1,793.4		$	(51.9	)	$	(538.9	)	$	5.7		$	1,208.3		$	7.9
Net income (loss)	—	—			—			(41.6		)	(1.8		)	(43.4		)	—
Other comprehensive income (loss), net of tax	—	—			(3.1		)	—			—			(3.1		)	—
Dividend on common stock ($0.50 per share)	—	—			—			(36.2		)	—			(36.2		)	—
Distributions to noncontrolling interest	—	—			—			—			(0.3		)	(0.3		)	—
Share-based compensation	—	4.1			—			—			—			4.1			—
Shares issued or repurchased, net	0.3	(0.1		)	—			(0.9		)	—			(1.0		)	—
Balance, September 30, 2019	72.3	$	1,797.4		$	(55.0	)	$	(617.6	)	$	3.6		$	1,128.4		$	7.9

See Notes to Condensed Consolidated Financial Statements.

6

ALEXANDER & BALDWIN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended September 30, 2019 and 2018

(In millions) (Unaudited)

	Total Equity
	Common Stock			Accumulated Other Compre- hensive Income (Loss)			(Distribution in Excess of Accumulated Earnings)			Non-Controlling Interest			Total			Redeem- able Non- Controlling Interest
	Shares	Stated Value
Balance, July 1, 2018	72.0	$	1,790.8	$	(39.4	)	$	(426.0	)	$	5.0		$	1,330.4		$	8.0
Net income (loss)	—	—		—			14.8			0.3			15.1			0.5
Other comprehensive income (loss), net of tax	—	—		1.1			—			—			1.1			—
Adjustments to redemption value of redeemable noncontrolling interest	—	—		—			0.5			—			0.5			(0.5		)
Share-based compensation	—	1.3		—			—			—			1.3			—
Shares issued or repurchased, net	—	—		—			0.2			—			0.2			—
Balance, September 30, 2018	72.0	$	1,792.1	$	(38.3	)	$	(410.5	)	$	5.3		$	1,348.6		$	8.0
	Total Equity
	Common Stock			Accumulated Other Compre- hensive Income (Loss)			(Distribution in Excess of Accumulated Earnings)			Non-Controlling Interest			Total			Redeem- able Non- Controlling Interest
	Shares	Stated Value
Balance, July 1, 2019	72.2	$	1,795.9	$	(54.0	)	$	(554.0	)	$	4.7		$	1,192.6		$	7.9
Net income (loss)	—	—		—			(49.8		)	(1.1		)	(50.9		)	—
Other comprehensive income (loss), net of tax	—	—		(1.0		)	—			—			(1.0		)	—
Dividend on common stock ($0.19 per share)	—	—		—			(13.8		)	—			(13.8		)	—
Share-based compensation	—	1.4		—			—			—			1.4			—
Shares issued or repurchased, net	0.1	0.1		—			—			—			0.1			—
Balance, September 30, 2019	72.3	$	1,797.4	$	(55.0	)	$	(617.6	)	$	3.6		$	1,128.4		$	7.9

See Notes to Condensed Consolidated Financial Statements.

7

Alexander & Baldwin, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. DESCRIPTION OF BUSINESS

Alexander & Baldwin, Inc. ("A&B" or the "Company") is a real estate investment trust ("REIT") headquartered in Honolulu, Hawai‘i. The Company operates three segments: Commercial Real Estate ("CRE"); Land Operations; and Materials & Construction ("M&C").  As of September 30, 2019, the Company's CRE improved real estate consisted of twenty-two retail centers, ten industrial assets and four office properties in Hawai‘i, representing a total of 3.9 million square feet of gross leasable area. The Company also owns a portfolio of ground leases in Hawai‘i that comprised 154 acres as of September 30, 2019.

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, 2018 and 2017, 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, 2018, 2017 and 2016, respectively, and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission ("SEC").

Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences.

Significant Accounting Policies: The Company's significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of the Company's 2018 Form 10-K. Changes to significant accounting policies are included herein.

Reclassifications

Unclassified Balance Sheet: During the first quarter of 2019, the Company changed the presentation of its balance sheet to be unclassified in order to be comparable with other REIT peers. The change was applied to all periods presented retrospectively.

Gain on Sale of Properties: In November 2018, the SEC finalized the Disclosure Update Simplification Project, which eliminated Rule 3-15(a)(1) reporting of Gain or Loss on Sale of Properties by REITs. To conform with Accounting Standards Codification ("ASC") 360 and the SEC rule change, the Company has classified the gain on dispositions of real estate assets in operating income in the Company's condensed consolidated statements of operations. The Company reclassified the prior period to conform to the current year presentation. This change resulted in an increase of $49.8 million in operating income during the nine months ended September 30, 2018.

Recently adopted accounting pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and should be implemented using a modified retrospective approach, with the option to apply the guidance at the effective date or the beginning of the earliest comparative period. The Company adopted the guidance on January 1, 2019 and elected to use the effective date as the date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. Additionally, the Company elected the "package of practical expedients," which permits the Company to not reassess prior conclusions about lease identification, lease classification and initial direct costs.

The new guidance did not have a material impact on the accounting treatment of the Company's triple-net tenant leases, which are the primary source of our CRE revenues. However, starting in the current year there were certain changes to the guidance under ASC 842 which will have an impact on future operating results, including initial direct costs associated with the execution

8

of lease agreements such as legal fees and certain transaction costs will no longer be capitalizable and instead are expensed in the period incurred.

The Company recorded right-of-use ("ROU") assets and corresponding lease liabilities of approximately $31.0 million on the condensed consolidated balance sheet for certain leases in which it is the lessee. The adoption of ASC 842 had no impact on the Company's lease expense.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the guidance on January 1, 2019. The guidance amends the hedge accounting model in ASC 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments expand an entity's ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness and requires the earnings effect of the hedging instrument to be presented in the same income statement line as the hedged item. The adoption of this standard did not have an impact on the Company's financial position or results of operations.

In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the guidance on January 1, 2019. The guidance expands the scope of ASC 718 to include share-based payment transactions with the exception of specific guidance related to the attribution of compensation cost. The guidance also clarifies that any share-based payment awards granted in conjunction with selling goods or services to customers should be evaluated under ASC 606. The adoption of this standard did not have an impact on the Company's financial position or results of operations.

Recently issued accounting pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. The guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The FASB has subsequently issued other related ASUs, which amend ASU 2016-13 to provide clarification and additional guidance. The Company is currently assessing the impact that adopting this new accounting standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement. The guidance amends and removes several disclosure requirements including the valuation processes for Level 3 fair value measurements. This ASU also modifies some disclosure requirements and requires additional disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and requires the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance clarifies current disclosures and removes several disclosure requirements including accumulated other comprehensive income expected to be recognized over the next fiscal year and amount and timing of plan assets expected to be returned to the employer. This ASU also requires additional disclosures as well as explanations for significant gains and losses related to changes in the benefit plan obligation. This ASU is effective for fiscal years beginning after December 15, 2020. The Company is currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. This ASU is effective for fiscal years beginning after December 15, 2019 and the amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is

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currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

Leases

Lessee: The Company determines if an arrangement is a lease at inception by considering whether that arrangement conveys the right to use an identified asset for a period of time in exchange for consideration. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company's condensed consolidated balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has also elected, for all classes of underlying assets, to not recognize lease liabilities and lease assets for leases with a term of 12 months or less.

Lessor: The Company reviews its contracts to determine if they qualify as a lease. A contract is determined to be a lease when the right to substantially all of the economic benefits and to direct the use of an identified asset is transferred to a customer over a defined period of time for consideration. During this review, the Company evaluates among other items, asset specification, substitution rights, purchase options, operating rights and control over the asset during the contract period.

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately under ASC 606, Revenue from Contracts with Customers. The Company has elected to not separate non-lease components from lease components for all classes of underlying assets where the component follows the same timing and pattern as the lease component. Non-lease components included in rental revenue primarily consist of tenant reimbursements for common area maintenance and other services paid for by the lessor and utilized by the lessee.

Rental revenue is primarily derived from operating leases and, therefore, is generally recognized on a straight-line basis over the term of the lease. Fixed contractual payments from the Company's leases are recognized on a straight-line basis over the terms of the respective leases. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Certain of the Company's lease agreements include terms for contingent rental revenue (e.g. percentage rents based on tenant sales volume) and tenant reimbursed property taxes, which are both accounted for as variable payments.

Certain of the Company's leases include termination and/or extension options. Termination options allow the customer to terminate the lease prior to the end of the lease term under specific circumstances. The Company's extension options generally require a re-negotiation with the customer at market rates. Initial direct costs, primarily commissions, related to the leasing of properties are capitalized on the balance sheet and amortized over the lease term. All other costs to negotiate or arrange a lease are expensed as incurred.

Accounts receivable related to leases are regularly evaluated for collectability, considering factors including, but not limited to, the credit quality of the customer, historical trends of the customer, and changes in customer payment terms. Upon determination that the collectability of a customer receivable is not probable, the Company will record an allowance for such receivable and a corresponding reduction to revenue previously recognized. Subsequent revenue is recorded on a cash basis until collectability on related billings becomes probable.

Changes in estimates on construction contracts

Revenue on the Company's long-term construction contracts are recognized using the percentage of completion, cost-to-cost, input method. Due to the nature of the work required to be performed, estimating total revenue and cost at completion of the contract is complex, subject to many variables and requires significant judgment. Such estimates of contract revenue and cost are dependent on a number of factors that may change during a contract performance period, resulting in changes to estimated contract profitability. These factors include, but are not limited to, the completeness and accuracy of the original bid; changes in the timing of scheduled work; change orders; unusual weather conditions; changes in costs of labor and/or materials; changes in productivity

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expectations; and the expected, or actual, resolution terms for claims. Management evaluates changes in estimates on a contract by contract basis and uses the cumulative catch-up method to account for the changes in the period in which they are determined.

Interest and other income (expense), net

Interest and other income (expense), net for the nine months ended September 30, 2019 was primarily composed of interest income of $2.9 million. Interest and other income (expense), net for the nine months ended September 30, 2018 was primarily composed of a $4.2 million net gain on the sale of the Company's joint venture interest in the Ka Milo real estate development-for-sale project. For the nine months ended September 30, 2019 and 2018, other expense was primarily composed of pension and postretirement benefit expense of $3.4 million and $2.2 million, respectively.

Discontinued operations

In December 2016, the Company completed its final sugar harvest and ceased its sugar operations. Costs related to the cessation of sugar operations are presented as discontinued operations in the condensed consolidated statements of operations. Liabilities related to the cessation of sugar operations are presented within Accrued and other liabilities in the condensed consolidated balance sheets. For the nine months ended September 30, 2019, the Company recorded a loss from discontinued operations of $0.8 million primarily related to an increase in cessation related accruals and a reserve for bad debt against outstanding receivables deemed uncollectible in the first quarter of 2019.

3. COMMITMENTS AND CONTINGENCIES

Commitments, Guarantees and Contingencies: Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet included standby letters of credit and bonds. As of September 30, 2019, standby letters of credit issued by the Company's lenders under the Company's revolving credit facilities totaled $1.7 million. These letters of credit primarily relate to the Company's real estate activities, and if drawn upon the Company would be obligated to reimburse the issuer.

As of September 30, 2019, bonds related to the Company's construction and real estate activities totaled $440.8 million. Approximately $421.7 million represents the face value of 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 for the amount of the bond, reduced for the work completed to date. As of September 30, 2019, the Company's estimated remaining exposure, assuming defaults on all existing contractual construction obligations, was approximately $79.8 million.

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 September 30, 2019, the Company's limited guarantees on indebtedness related to one of its unconsolidated joint ventures totaled $3.1 million.

Other than obligations described above and those described in the Company's 2018 Form 10-K, obligations of the Company's 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: Prior to the sale of approximately 41,000 acres of agricultural land on Maui to Mahi Pono Holdings, LLC ("Mahi Pono") in December 2018, A&B, through East Maui Irrigation Company, LLC ("EMI"), also owned approximately 16,000 acres of watershed lands in East Maui and also held four water licenses to approximately 30,000 acres owned by the State of Hawai‘i in East Maui. The sale to Mahi Pono includes the sale of a 50% interest in EMI (which closed February 1, 2019), and provides for A&B and Mahi Pono, through EMI, to jointly continue the existing process to secure long-term leases from the State for delivery of irrigation water to Mahi Pono for use in Central Maui.

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")

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to replace these revocable permits with a long-term water lease. Pending the completion by the BLNR of a contested case hearing it ordered to be held 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 asked 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 was challenged by the three parties. In January 2016, the court ruled in the 4/10/15 Lawsuit 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 decision was appealed to the Intermediate Court of Appeals ("ICA") of the State of Hawai‘i.

In May 2016, while the appeal of the 4/10/15 Lawsuit was pending, the Hawai‘i 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 annual authorization of the existing holdover permits was sought and granted by the BLNR in December 2016, November 2017 and November 2018 for calendar years 2017, 2018 and 2019. No extension of Act 126 was approved by the Hawai‘i State Legislature in 2019.

In June 2019, the ICA vacated the lower court’s ruling in the 4/10/15 Lawsuit that the BLNR lacked authority to keep the revocable permits in holdover status beyond one year and remanded the case to the trial court to determine whether the holdover status of the permits was both (a) "temporary" and (b) in the best interest of the State, as required by statute. The plaintiffs have filed a motion with the ICA for reconsideration of its decision, which was denied on July 5, 2019. On September 30, 2019, Plaintiffs filed a request with the Supreme Court of Hawai‘i to review and reverse the ICA’s ruling. On October 11, 2019, the BLNR took up the renewal of all the existing water revocable permits in the state, acting under the ICA's ruling, and approved the continuation of the four East Maui water revocable permits for another one-year period through December 31, 2020.

In a separate matter, on December 7, 2018, a contested case request filed by the Sierra Club contesting the BLNR's November 2018 approval of the 2019 revocable permits was denied by the BLNR. On January 7, 2019, Sierra Club filed a lawsuit in the circuit court of the first circuit in Hawai‘i against BLNR, A&B, and EMI, seeking to invalidate the extension of the revocable permits for, among other things, failure to perform an EA. The count alleging failure to perform an EA was recently ordered to be dismissed based on the ICA ruling in the 4/10/15 Lawsuit. The lawsuit also seeks to enjoin the diversion by EMI of more than 25 million gallons a day pending the imposition by BLNR of conditions that Sierra Club alleges should be imposed on the revocable permits. In connection with A&B’s obligation to continue the existing process to secure long-term water leases from the State, A&B and EMI will defend against the claims made by the Sierra Club.

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 consolidated financial statements as a whole.

4. 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 as well as adjusted by the number of additional shares, if any, that would have been outstanding had the potentially dilutive common shares been issued.

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The following table provides a reconciliation of income (loss) from continuing operations to income (loss) from continuing operations available to A&B shareholders and net income (loss) available to A&B shareholders (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Income (loss) from Continuing Operations	$	(50.8	)	$	15.8		$	(42.6	)	$	66.2
Less: (Income) loss attributable to noncontrolling interest	1.1			(0.8		)	1.8			(1.4		)
Income (loss) from continuing operations attributable to A&B shareholders	(49.7		)	15.0			(40.8		)	64.8
Income (loss) from discontinued operations available to A&B shareholders, net of income taxes	(0.1		)	(0.2		)	(0.8		)	(0.2		)
Net income (loss) available to A&B shareholders	$	(49.8	)	$	14.8		$	(41.6	)	$	64.6

The number of shares used to compute basic and diluted earnings per share is as follows (in millions):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Denominator for basic EPS - weighted average shares outstanding	72.3	72.0	72.2	70.2
Effect of dilutive securities:
Non-participating stock options and restricted stock unit awards	—	0.4	—	0.4
Special Distribution	—	—	—	1.8
Denominator for diluted EPS - weighted average shares outstanding	72.3	72.4	72.2	72.4

There were 0.4 million shares of anti-dilutive securities outstanding during the three and nine months ended September 30, 2019. There were 0.1 million shares of anti-dilutive securities outstanding during the three and nine months ended September 30, 2018.

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of the Company's cash and cash equivalents, accounts receivable, and notes receivable with remaining terms less than 12 months approximate their carrying values due to the short-term nature of the instruments. The fair value of the Company's notes receivable with remaining terms greater than 12 months is estimated using a discounted cash flow analysis in which the Company uses unobservable inputs such as market interest rates determined by the loan to value and market capitalization rates related to the underlying collateral at which management believes similar loans would be made and classified as Level 3 in the fair value hierarchy. The fair value of these notes approximates the carrying amount of $15.7 million at September 30, 2019. The fair value and carrying value of these notes was $16.3 million at December 31, 2018.

The carrying amount and fair value of the Company's debt at September 30, 2019 was $732.4 million and $753.8 million, respectively, and $778.1 million and $758.0 million at December 31, 2018, respectively. The fair value of 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).

The Company carries its interest rate swaps at fair value. See Note 15 for fair value information regarding the Company's derivative instruments.

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6. INVENTORIES

Inventories are stated at the lower of cost (principally first-in, first-out basis) or net realizable value. Inventories as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019		December 31, 2018
Asphalt	$	9.7	$	9.4
Processed rock and sand	7.5		9.5
Work in progress	3.2		4.0
Retail merchandise	2.1		2.0
Parts, materials and supplies inventories	1.4		1.6
Total	$	23.9	$	26.5

7. SHARE-BASED PAYMENT AWARDS

The 2012 Incentive Compensation Plan ("2012 Plan") allows for the granting of stock options, restricted stock units and common stock. The shares of common stock authorized to be issued under the 2012 Plan may be drawn from the shares of the Company's authorized but unissued common stock or from shares of its common stock that the Company acquires, including shares purchased on the open market or private transactions.

The following table summarizes the Company's stock option activity for the nine months ended September 30, 2019 (in thousands, except weighted-average exercise price and weighted-average contractual life):

	2012 Plan Stock Options	Weighted- Average Exercise Price		Weighted- Average Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2019	580.1	$	12.91
Exercised	(225.8)	$	11.29
Canceled	(2.0)	$	13.11
Outstanding, September 30, 2019	352.3	$	13.95	1.8 years	$	3,756
Vested or expected to vest	352.3	$	13.95	1.8 years	$	3,756
Exercisable, September 30, 2019	352.3	$	13.95	1.8 years	$	3,756

The following table summarizes non-vested restricted stock unit activity for the nine months ended September 30, 2019 (in thousands, except weighted-average grant-date fair value amounts):

	2012 Plan Restricted Stock Units		Weighted- Average Grant-date Fair Value
Outstanding, January 1, 2019	421.3		$	25.91
Granted	264.0		$	20.05
Vested	(149.5	)	$	23.72
Canceled	(78.8	)	$	22.07
Outstanding, September 30, 2019	457.0		$	23.90

The time-based restricted stock units granted to employees vest ratably over a period of three years. The time-based restricted stock units granted to non-employee directors prior to 2018 vest ratably over a period of three years, and commencing in 2018, the time-based restricted stock units granted to non-employee directors vest over one year. The market-based performance share units cliff vest over 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 total shareholder returns relative to indices, as defined.

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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:

	2019 Grants		2018 Grants
Volatility of A&B common stock	23.8	%	22.7	%
Average volatility of peer companies	23.8	%	21.6	%
Risk-free interest rate	1.8	%	2.3	%

The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018
Share-based expense:
Time-based and market-based restricted stock units	$	1.4	$	1.3		$	4.1	$	4.0
Total recognized tax benefit	—		(0.1		)	—		(0.4		)
Share-based expense (net of tax)	$	1.4	$	1.2		$	4.1	$	3.6

8. 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 were $2.8 million and $4.5 million for the three months ended September 30, 2019 and 2018, respectively. Revenues earned from transactions with affiliates were $9.6 million and $10.8 million for the nine months ended September 30, 2019 and 2018, respectively. Receivables from these affiliates were $1.5 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively. Amounts due to these affiliates were $0.7 million and $0.6 million as of September 30, 2019 and December 31, 2018.

Commercial Real Estate. The Company entered into contracts in the ordinary course of business, as a lessor of property, with certain affiliates that are partially owned by a former director of the Company. There was no recorded revenue earned from transactions with affiliates for the three months ended September 30, 2019. For the three months ended September 30, 2018, revenues earned from transactions with affiliates were $1.2 million. Revenues earned from transactions with affiliates were $1.3 million and $3.5 million for the nine months ended September 30, 2019 and 2018, respectively. There were no receivables from these affiliates as of September 30, 2019 and less than $0.1 million as of December 31, 2018.

Land Operations. During the three months ended September 30, 2019 and 2018, the Company recognized $1.1 million and less than $0.1 million, respectively, related to revenue for services provided to certain unconsolidated investments in affiliates and interest earned on notes receivables from related parties. Service revenues and interest recorded during the nine months ended September 30, 2019 and 2018 were $1.7 million and $0.1 million, respectively. Receivables from these affiliates were less than $0.1 million as of September 30, 2019 and December 31, 2018.

During the year ended December 31, 2017, the Company extended a five-year construction loan secured by a mortgage on real property to one of its joint ventures. Receivables from this affiliate were $13.1 million and $13.5 million as of September 30, 2019 and December 31, 2018, respectively.

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9. EMPLOYEE BENEFIT PLANS

Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2019 and 2018 are shown below (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Service cost	$	0.7		$	0.5		$	1.8		$	1.6
Interest cost	2.1			2.0			6.3			6.0
Expected return on plan assets	(1.8		)	(2.1		)	(5.4		)	(6.2		)
Amortization of net loss	0.9			1.1			2.9			3.3
Amortization of prior service credit	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss	—			—			—			(0.4		)
Net periodic benefit cost	$	1.8		$	1.3		$	5.2		$	3.8

10. REAL ESTATE ASSET ACQUISITIONS

During the nine months ended September 30, 2019, the Company acquired five commercial real estate assets for $218.4 million.

The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):

Fair value of assets acquired and liabilities assumed
Assets acquired:
Land	$	106.9
Property and improvements	91.3
In-place leases	23.2
Favorable leases	4.3
Total assets acquired	$	225.7
Liabilities assumed:
Unfavorable leases	$	7.3
Total liabilities assumed	7.3
Net assets acquired	$	218.4

As of the acquisition date, the weighted-average amortization periods of the in-place and favorable leases were approximately 8.2 years and 4.7 years, respectively. The weighted-average amortization period of the unfavorable leases was approximately 18.6 years.

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11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2019 were as follows (in millions):

	Employee Benefit Plans			Interest Rate Swap			Total
Balance, January 1, 2019	$	(55.2	)	$	3.3		$	(51.9	)
Other comprehensive income (loss) before reclassifications, net of taxes of $0 for interest rate swap	—			(5.5		)	(5.5		)
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0 for employee benefit plans	2.5			—			2.5
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0 for interest rate swap	—			(0.1		)	(0.1		)
Balance, September 30, 2019	$	(52.7	)	$	(2.3	)	$	(55.0	)

The details of the changes in accumulated other comprehensive income (loss), including reclassifications out of accumulated other comprehensive income (loss), by component for the three and nine months ended September 30, 2019 and 2018, respectively, were as follows (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Unrealized interest rate hedging gain (loss)	$	(2.0	)	$	0.6		$	(5.5	)	$	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2			—			(0.1		)	—
Amortization of defined benefit pension items reclassified to net periodic pension cost:
Actuarial loss1	0.9			1.1			2.9			3.3
Prior service credit1	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss1	—			—			—			(0.4		)
Total before income tax	(1.0		)	1.5			(3.1		)	5.4
Income taxes	—			(0.4		)	—			(1.4		)
Other comprehensive income (loss), net of tax	$	(1.0	)	$	1.1		$	(3.1	)	$	4.0

¹ This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (see Note 9 for additional details).

12. INCOME TAXES

The Company has been organized and operates in a manner that enables it to qualify, and believes it will continue to qualify, as a REIT for federal income tax purposes. The Company’s effective tax rate for the three and nine months ended September 30, 2019 differed from the effective tax rate for the same periods in 2018, primarily due to the full valuation allowance recorded on the net deferred tax assets at the end of 2018.

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13. NOTES PAYABLE AND TOTAL DEBT

At September 30, 2019 and December 31, 2018, notes payable and total debt consisted of the following (in millions):

			Principal Outstanding
Debt	Interest Rate (%)	Maturity Date	September 30, 2019			December 31, 2018
Secured:
Kailua Town Center	(1)	2021	$	10.3		$	10.5
Kailua Town Center #2	3.15%	2021	4.7			4.7
Heavy equipment financing	(2)	2023	2.0			—
Laulani Village	3.93%	2024	62.0			62.0
Pearl Highlands	4.15%	2024	84.0			85.3
Manoa Marketplace	(3)	2029	59.8			60.0
Subtotal			$	222.8		$	222.5
Unsecured:
Term Loan 3	5.19%	2019	0.7			2.3
Term Loan 4	(4)	2019	—			9.4
Series D Note	6.90%	2020	16.2			32.5
Bank syndicated loan	(5)	2023	50.0			50.0
Series A Note	5.53%	2024	28.5			28.5
Series J Note	4.66%	2025	10.0			10.0
Series B Note	5.55%	2026	46.0			46.0
Series C Note	5.56%	2026	23.0			24.0
Series F Note	4.35%	2026	22.0			22.0
Series H Note	4.04%	2026	50.0			50.0
Series K Note	4.81%	2027	34.5			34.5
Series G Note	3.88%	2027	42.5			42.5
Series L Note	4.89%	2028	18.0			18.0
Series I Note	4.16%	2028	25.0			25.0
Term Loan 5	4.30%	2029	25.0			25.0
Subtotal			$	391.4		$	419.7
Revolving Credit Facilities:
GLP Asphalt revolving credit facility	(6)	2020	0.5			0.4
Revolving credit facility	(7)	2022	118.4			136.6
Subtotal			$	118.9		$	137.0
Total debt (contractual)			$	733.1		$	779.2
Unamortized debt premium (discount)			(0.1		)	(0.2		)
Unamortized debt issuance costs			(0.6		)	(0.9		)
Total debt (carrying value)			$	732.4		$	778.1

(1) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate.

(2) Loans have a stated rate ranging from 4.08% to 5.00%

(3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate.

(4) Loan has a stated interest rate of LIBOR plus 2.00%, and is secured by a letter of credit.

(5) Loan has a stated interest rate of LIBOR plus 1.60%, based on pricing grid.

(6) Loan has a stated interest rate of LIBOR plus 1.25%.

(7) Loan has a stated interest rate of LIBOR plus 1.65%, based on pricing grid.

The Company believes that funds generated from results of operations, available cash and cash equivalents, and available borrowings under credit facilities will be sufficient to satisfy any maturities of debt due in the next twelve months.

Interest costs are capitalized for certain development and redevelopment projects that have not yet been placed into service. Capitalization of interest commences when development activities and expenditures begin and end upon completion, which is when the asset is ready for its intended use. Capitalized interest costs related to development activities were $0.8 million for the nine months ended September 30, 2019. There were $0.4 million of capitalized interest costs for the nine months ended September 30, 2018.

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14.    INVESTMENTS IN AFFILIATES

The Company's investments in affiliates principally consist 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 (loss) from its equity method investments. Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues	$	44.7	$	78.0	$	143.1	$	202.6
Operating costs and expenses	35.6		64.8		127.6		172.5
Gross Profit (Loss)	$	9.1	$	13.2	$	15.5	$	30.1
Income (Loss) from Continuing Operations1	$	5.5	$	9.9	$	6.6	$	14.3
Net Income (Loss)1	$	5.4	$	9.8	$	6.4	$	14.0
1 Includes earnings from equity method investments held by the investee.

15.    DERIVATIVE INSTRUMENTS

The Company is exposed to interest rate risk related to its variable rate interest debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed and variable 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

As of September 30, 2019, the Company has one interest rate swap agreement designated as a cash flow hedge whose key terms are as follows (dollars in millions):

Effective	Maturity	Fixed Interest	Notional Amount at		Fair Value at
Date	Date	Rate	September 30, 2019		September 30, 2019			December 31, 2018
4/7/2016	8/1/2029	3.14%	$	60.0	$	(1.7	)	$	3.9

The liability related to the interest rate swap as of September 30, 2019 is presented within Accrued and other liabilities in the condensed consolidated balance sheet. The asset related to the interest swap at December 31, 2018 was presented within Prepaid expenses and other assets. The changes in fair value of the cash flow hedge are recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related-variable rate debt.

Non-designated Hedges

As of September 30, 2019, the Company has one interest rate swap that has not been designated as a cash flow hedge whose key terms are as follows (dollars in millions):

Effective	Maturity	Fixed Interest	Notional Amount at		Fair Value at						Classification on
Date	Date	Rate	September 30, 2019		September 30, 2019			December 31, 2018			Balance Sheet
1/1/2014	9/1/2021	5.95%	$	10.3	$	(0.6	)	$	(0.5	)	Accrued and other liabilities

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The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statement of comprehensive income (loss) (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Derivatives in Designated Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in OCI on derivatives	$	(2.0	)	$	0.6	$	(5.5	)	$	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	$	0.2		$	—	$	(0.1	)	$	—

The Company records gains or losses related to interest rate swaps that have not been designated as cash flow hedges in Interest and other income in its condensed consolidated statements of operations, and the amounts were immaterial during the three and nine months ended September 30, 2019 and 2018.

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.

16.    SEGMENT RESULTS

Operating segment information for the three and nine months ended September 30, 2019 and 2018 is summarized below (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Operating Revenue:
Commercial Real Estate	$	42.7		$	35.9		$	118.6		$	104.9
Land Operations	8.5			24.0			82.4			72.6
Materials & Construction	37.9			59.5			126.6			167.3
Total operating revenue	89.1			119.4			327.6			344.8
Operating Profit (Loss):
Commercial Real Estate1	18.0			15.9			50.6			45.0
Land Operations2	2.8			13.1			15.9			9.3
Materials & Construction	(57.9		)	3.4			(66.7		)	7.2
Total operating profit (loss)	(37.1		)	32.4			(0.2		)	61.5
Gain (loss) on the sale of commercial real estate properties	—			—			—			49.8
Interest expense	(8.2		)	(9.1		)	(25.4		)	(26.4		)
General corporate expenses	(5.5		)	(6.5		)	(18.1		)	(20.5		)
Income (Loss) from Continuing Operations Before Income Taxes	$	(50.8	)	$	16.8		$	(43.7	)	$	64.4

¹ Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the condensed consolidated results of operations.

² Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various real estate joint ventures and non-cash reductions related to the Company's solar tax equity investments.

Segment balance sheet information as of September 30, 2019 and December 31, 2018 is summarized below (in millions):

	September 30, 2019		December 31, 2018
Identifiable Assets:
Commercial Real Estate	$	1,539.2	$	1,530.4
Land Operations	300.9		350.0
Materials & Construction	259.0		297.1
Other	22.6		47.7
Total assets	$	2,121.7	$	2,225.2

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17.    REVENUE AND CONTRACT BALANCES

The Company disaggregates revenue from contracts with customers by revenue type as the Company believes it best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues:
Commercial Real Estate	$	42.7	$	35.9	$	118.6	$	104.9
Land Operations:
Development sales revenue	0.8		9.0		31.2		42.8
Unimproved/other property sales revenue	1.5		9.1		32.4		11.5
Other operating revenue	6.2		5.9		18.8		18.3
Land Operations	8.5		24.0		82.4		72.6
Materials & Construction	37.9		59.5		126.6		167.3
Total revenues	$	89.1	$	119.4	$	327.6	$	344.8

The total amount of contract consideration allocated to either wholly unsatisfied or partially satisfied performance obligations was $86.6 million as of September 30, 2019. The Company expects to recognize as revenue approximately 30% - 35% of the remaining contract consideration allocated to either wholly unsatisfied or partially satisfied performance obligations in 2019, with the remaining recognized thereafter.

Certain construction contracts include retainage provisions that are included in Accounts receivable and retention, net in the condensed consolidated balance sheets. The balances billed but not paid by customers pursuant to these provisions generally become due upon completion and acceptance of the project work or products by the owners.

Costs and estimated earnings in excess of billings represent amounts earned and reimbursable under contracts but have a conditional right for billing and payment such as achievement of milestones or completion of the project. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Costs and estimated earnings in excess of billings are presented within Prepaid expenses and other assets in the condensed consolidated balance sheets.

Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. Billings in excess of costs and estimated earnings are presented within Accrued and other liabilities in the condensed consolidated balance sheets.

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:

(in millions)	September 30, 2019		January 1, 2019
Accounts receivable, net	$	58.2	$	49.6
Contracts retention	$	9.6	$	11.6
Costs and estimated earnings in excess of billings on uncompleted contracts	$	9.5	$	9.2
Billings in excess of costs and estimated earnings on uncompleted contracts	$	9.7	$	5.9
Variable consideration	$	62.0	$	62.0
Deferred revenue	$	6.4	$	1.2

For the nine months ended September 30, 2019, the Company recognized revenue of $4.6 million related to the Company's contract liabilities reported as of January 1, 2019.

18.    LEASES

The Company as Lessee: Principal non-cancelable operating leases include land, office space, harbors and equipment leased for periods that expire through 2031. Management expects that in the normal course of business, most operating leases will be renewed or replaced by other similar leases. The Company has equipment under finance leases with periods that expire through

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2023. ROU assets and lease liabilities related to these finance leases are presented within Other property, net and Notes payable and other debt, respectively, in the condensed consolidated balance sheets.

Lease expense for operating leases that provide for future escalations are accounted for on a straight-line basis. For the three and nine months ended September 30, 2019, lease expense under operating and finance leases was as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Operating lease cost	$	1.9	$	5.2
Finance lease cost:
Amortization of right-of-use assets	0.2		0.4
Interest on lease liabilities	0.1		0.1
Total lease cost	$	2.2	$	5.7

Supplemental balance sheet information related to operating and finance leases as of September 30, 2019 was as follows:

Weighted-average remaining lease term (years) - operating leases	9.3
Weighted-average remaining lease term (years) - finance leases	2.7
Weighted-average discount rate - operating leases	4.4	%
Weighted-average discount rate - finance leases	4.5	%

Supplemental cash flow information related to operating and finance leases for the nine months ended September 30, 2019 was as follows (in millions):

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4.4
Operating cash outflows from financing leases	$	0.1
Financing cash flows from finance leases	$	0.4

Future lease payments under non-cancelable operating and finance leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
	Operating Leases			Finance Leases
2019	$	1.3		$	0.2
2020	5.2			0.8
2021	5.1			0.7
2022	5.0			0.3
2023	3.9			0.1
2024	2.2			—
Thereafter	8.4			—
Total lease payments	$	31.1		$	2.1
Less: Interest	(8.1		)	(0.1		)
Total lease liabilities	$	23.0		$	2.0

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Future lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	5.5
2020	5.4
2021	5.3
2022	5.3
2023	4.5
Thereafter	13.9
	$	39.9

The Company as Lessor: The Company leases land and buildings to third parties under operating leases. The historical cost of, and accumulated depreciation on, leased property as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019			December 31, 2018
Leased property - real estate	$	1,501.2		$	1,263.0
Less: Accumulated depreciation	(115.2		)	(104.4		)
Property under operating leases, net	$	1,386.0		$	1,158.6

Total rental income under these operating leases were as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Lease payments	$	54.0	$	80.4
Variable lease payments	2.5		3.6
Total	$	56.5	$	84.0

Future lease payments to be received on non-cancelable operating leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
2019	$	32.3
2020	115.0
2021	102.1
2022	90.0
2023	79.9
2024	68.0
Thereafter	485.6
Total lease receivables	$	972.9

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Future lease payments to be received on non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	97.6
2020	96.2
2021	78.2
2022	69.3
2023	59.9
Thereafter	407.8
	$	809.0

The Company's leases have remaining lease terms of 1 year to 45 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year.

19.    GOODWILL IMPAIRMENT

The Company's goodwill balance as of December 31, 2018 and September 30, 2019 was $65.1 million and $15.4 million, respectively, and is attributable to the M&C and CRE segments. The goodwill related to the M&C segment was assigned to three reporting units: GPC (primarily consisting of the Grace Pacific’s quarry, paving, and liquid asphalt operations), GPRS (primarily consisting of Grace Pacific’s roadway and maintenance solutions operations) and GPRM (primarily consisting of Grace Pacific’s prestressed and precast concrete operations).

During the quarter ended September 30, 2019, the Company was required to perform an interim impairment test for the goodwill in each of its three M&C reporting units due to the continued decline in M&C sales and margins in 2019, which resulted from continued, adverse market conditions.

The Company's goodwill and impairment test estimated the fair value of the M&C reporting units using various methodologies, including a market approach that involves the application of market-derived multiples and an income approach that was based on a discounted cash flow analysis. The Company classified these fair value measurements as Level 3. Under the market multiple methodology, the estimate of fair value is based on market multiples of EBITDA (earnings before interest, taxes, depreciation and amortization) or revenues. The discounted cash flow approach relies on a number of assumptions, including future macroeconomic conditions, market factors specific to the reporting unit, the amount and timing of estimated future cash flows to be generated by the business over an extended period of time, and a discount rate that considers the risks related to the amount and timing of the cash flows, among others. The weighted average discount rate used in the discounted cash flow approach of the valuation was 12.7%.

Changes in the carrying amount of goodwill allocated to the Company's reportable segments for the nine months ended September 30, 2019 consisted of the following (in millions):

	Materials & Construction			Commercial Real Estate		Total
Balance, January 1, 2019	$	56.4		$	8.7	$	65.1
Goodwill Impairment	(49.7		)	—		(49.7		)
Balance, September 30, 2019	$	6.7		$	8.7	$	15.4

20.    SUBSEQUENT EVENTS

On October 22, 2019, the Company's Board of Directors declared a cash dividend of $0.19 per share of outstanding common stock, payable on December 5, 2019 to shareholders of record as of the close of business on November 12, 2019.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following analysis of the consolidated financial condition and results of operations of Alexander & Baldwin, Inc. and its subsidiaries should be read in conjunction with the condensed consolidated financial statements and related notes thereto included in Item 1 of this Form 10-Q and the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the U.S. Securities and Exchange Commission ("SEC").

FORWARD-LOOKING STATEMENTS

Statements in this Form 10-Q that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding possible or assumed future results of operations, business strategies, growth opportunities and competitive positions. Such forward-looking statements speak only as of the date the statements were made and are not guarantees of future performance. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from those expressed in or implied by the forward-looking statements. These factors include, but are not limited to, prevailing market conditions and other factors related to the Company's REIT status and the Company's business, as well as the evaluation of alternatives by the Company related to its materials and construction business and by the Company's joint venture related to the development of Kukui‘ula, generally discussed in the Company's most recent Form 10-K, Form 10-Q and other filings with the SEC. The information in this Form 10-Q should be evaluated in light of these important risk factors. We do not undertake any obligation to update the Company's forward-looking statements.

INTRODUCTION

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is a supplement to the accompanying condensed consolidated financial statements and provides additional information about A&B's business, recent developments, financial condition, liquidity and capital resources, cash flows, results of operations and how certain accounting principles, policies and estimates affect A&B’s financial statements. MD&A is organized as follows:

• 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.

• Consolidated Results of Operations: This section provides an analysis of A&B's consolidated results of operations for the three and nine months ended September 30, 2019.

• 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 nine months ended September 30, 2019 and 2018, 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.

• 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.

• Rounding: Amounts in the MD&A are rounded to the nearest tenth of a million. Accordingly, a recalculation of totals and percentages, if based on the reported data, may be slightly different.

BUSINESS OVERVIEW

A&B, whose history dates back to 1870, is a REIT headquartered in Honolulu, Hawai'i and operates through three reportable segments: Commercial Real Estate; Land Operations; and Materials & Construction.

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Commercial Real Estate

Commercial Real Estate ("CRE"): includes leasing, property management, redevelopment and development-for-hold activities. Significant assets include improved commercial real estate and urban ground leases. Income from this segment is principally generated by leasing and operating real estate assets.

Land Operations

Land Operations: involves the management and optimization of A&B's land and related assets primarily through the following activities: developing land for sale; leasing agricultural land; and renewable energy. Primary assets include landholdings, renewable energy assets (investments in hydroelectric and solar facilities and power purchase agreements) and development-for-sale projects and investments. Financial results from this segment are principally derived from renewable energy operations, income/loss from real estate joint ventures, real estate development sales and fees, and land parcel sales.

Materials & Construction

Materials & Construction ("M&C"): performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate; produces and sells asphaltic concrete; provides and sells various construction- and traffic-control-related products and services; and manufactures and sells precast concrete products. Assets include two grade-A (prime) rock quarries, a liquid asphalt storage terminal, hot mix asphalt plants, and quarry and paving equipment. Income is generated principally by materials supply and paving construction.

As a result of its conversion to a REIT and consequent de-emphasis of non-REIT operating businesses, the Company is evaluating strategic options for the eventual monetization of some or all of its Materials & Construction businesses.

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CONSOLIDATED RESULTS OF OPERATIONS

The following analysis of the consolidated financial condition and results of operations of Alexander & Baldwin, Inc. and its subsidiaries should be read in conjunction with the condensed consolidated financial statements and related notes thereto. Amounts in this narrative are rounded to millions, but per-share calculations and percentages were calculated based on thousands. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different than the amounts included herein. The financial information included in the following table and narrative reflects the presentation of the Company's former sugar operations as discontinued operations for all periods presented.

Consolidated - Third quarter of 2019 compared with 2018

	Three Months Ended September 30,
(dollars in millions, except per share amounts, unaudited)	2019			2018			$ Change			Change
Operating revenue	$	89.1		$	119.4		$	(30.3	)	(25.4	)%
Cost of operations	(71.7		)	(87.1		)	15.4			17.7	%
Selling, general and administrative	(13.3		)	(14.6		)	1.3			8.9	%
Goodwill impairment	(49.7		)	—			(49.7		)	—	%
Operating income (loss)	(45.6		)	17.7			(63.3		)	NM
Income (loss) related to joint ventures	2.4			4.5			(2.1		)	(46.7	)%
Interest and other income (expense), net	0.6			3.7			(3.1		)	(83.8	)%
Interest expense	(8.2		)	(9.1		)	0.9			9.9	%
Income tax benefit (expense)	—			(1.0		)	1.0			100.0	%
Income (loss) from continuing operations	(50.8		)	15.8			(66.6		)	NM
Discontinued operations (net of income taxes)	(0.1		)	(0.2		)	0.1			50.0	%
Net income (loss)	(50.9		)	15.6			(66.5		)	NM
(Income) loss attributable to noncontrolling interest	1.1			(0.8		)	1.9			NM
Net income (loss) attributable to A&B	$	(49.8	)	$	14.8		$	(64.6	)	NM
Basic earnings (loss) per share - continuing operations	$	(0.69	)	$	0.21		(0.90		)	NM
Basic earnings (loss) per share - discontinued operations	—			—			—			—	%
Net income (loss) available to A&B shareholders	$	(0.69	)	$	0.21		(0.90		)	NM
Diluted earnings (loss) per share - continuing operations	$	(0.69	)	$	0.20		(0.89		)	NM
Diluted earnings (loss) per share - discontinued operations	—			—			—			—	%
Net income (loss) available to A&B shareholders	$	(0.69	)	$	0.20		(0.89		)	NM

Operating revenue for the third quarter ended September 30, 2019 decreased 25.4%, or $30.3 million, to $89.1 million, primarily due to lower revenue from each of the Land Operations and Materials & Construction segment partially offset by higher revenue from the Commercial Real Estate segment. The reasons for business and segment-specific fluctuations in revenue are further described below in the Analysis of Operating Revenue and Profit by Segment.

Cost of operations for the third quarter ended September 30, 2019 decreased 17.7%, or $15.4 million, to $71.7 million, primarily due to decreases in costs incurred by each of the Materials & Construction and Land Operations segments partially offset by an increase in costs incurred by the Commercial Real Estate segment. The reasons for the cost of operations changes are described below, by business segment, in the Analysis of Operating Revenue and Profit by Segment.

Selling, general and administrative for the third quarter ended September 30, 2019 decreased 8.9%, or $1.3 million, to $13.3 million, primarily due to lower costs incurred in the Materials & Construction segment and at Corporate, partially offset by higher costs of the Commercial Real Estate segment. Corporate expenses decreased primarily due to lower management consulting expenses in the current quarter as compared to those incurred in the third quarter of 2018. The reasons for business and segment-specific fluctuations in selling, general and administrative expenses are further described below in the Analysis of Operating Revenue and Profit by Segment.

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Goodwill impairment for the third quarter ended September 30, 2019 was $49.7 million due to asset impairments incurred in the Materials & Construction segment. There were no asset impairments incurred during the third quarter ended September 30, 2018. The reasons for business and segment specific asset impairments are further described in the Analysis of Operating Revenue and Profit by Segment.

Income (loss) related to joint ventures for the third quarter ended September 30, 2019 decreased $2.1 million, to $2.4 million, due primarily to lower income related to real estate development joint ventures, as compared to the third quarter ended September 30, 2018. Additional discussion of business and segment-specific fluctuations related to income (loss) related to joint ventures is further described in the Analysis of Operating Revenue and Profit by Segment.

Interest and other income (expense), net was a net income of $0.6 million in the third quarter ended September 30, 2019 compared to a net income of $3.7 million in the third quarter ended September 30, 2018. Other income for the third quarter ended September 30, 2018 included a gain of $4.2 million related to the sale of the Company's joint venture interest in the Ka Milo real estate development-for-sale.

Interest expense for the third quarter ended September 30, 2019 decreased $0.9 million, to $8.2 million, due to lower average debt levels during the period.

Discontinued operations (net of income taxes) was a net expense of $0.1 million in the third quarter ended September 30, 2019 compared to a net expense of $0.2 million in the third quarter ended September 30, 2018.

(Income) Loss attributable to noncontrolling interest during the third quarter ended September 30, 2019 was a loss of $1.1 million compared to income of $0.8 million during the third quarter ended September 30, 2018. The noncontrolling interest represents third-party noncontrolling interests in two entities consolidated within the Materials & Construction segment, and in which Grace Pacific owns a 70 percent and 51 percent share in each. The loss in the third quarter ended September 30, 2019 was primarily driven by asset impairments incurred in the Materials & Construction segment in the reporting units which involve the noncontrolling interest.

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Consolidated - First nine months of 2019 compared with 2018

	Nine Months Ended September 30,
(dollars in millions, except per share amounts, unaudited)	2019			2018			$ Change			Change
Operating revenue	$	327.6		$	344.8		$	(17.2	)	(5.0	)%
Cost of operations	(260.0		)	(267.5		)	7.5			2.8	%
Selling, general and administrative	(45.1		)	(44.7		)	(0.4		)	(0.9	)%
Goodwill impairment	(49.7		)	—			(49.7		)	—	%
Gain (loss) on the sale of commercial real estate properties	—			49.8			(49.8		)	(100.0	)%
Operating income (loss)	(27.2		)	82.4			(109.6		)	NM
Income (loss) related to joint ventures	6.1			6.3			(0.2		)	(3.2	)%
Interest and other income (expense), net	2.8			2.1			0.7			33.3	%
Interest expense	(25.4		)	(26.4		)	1.0			3.8	%
Income tax benefit (expense)	1.1			1.8			(0.7		)	(38.9	)%
Income (loss) from continuing operations	(42.6		)	66.2			(108.8		)	NM
Discontinued operations (net of income taxes)	(0.8		)	(0.2		)	(0.6		)	3X
Net income (loss)	(43.4		)	66.0			(109.4		)	NM
(Income) loss attributable to noncontrolling interest	1.8			(1.4		)	3.2			NM
Net income (loss) attributable to A&B	$	(41.6	)	$	64.6		$	(106.2	)	NM
Basic earnings (loss) per share - continuing operations	$	(0.57	)	$	0.92		(1.49		)	(162.0	)%
Basic earnings (loss) per share - discontinued operations	(0.01		)	—			(0.01		)	—	%
Net income (loss) available to A&B shareholders	$	(0.58	)	$	0.92		(1.50		)	(163.0	)%
Diluted earnings (loss) per share - continuing operations	$	(0.57	)	$	0.89		(1.46		)	(164.0	)%
Diluted earnings (loss) per share - discontinued operations	(0.01		)	—			(0.01		)	—	%
Net income (loss) available to A&B shareholders	$	(0.58	)	$	0.89		(1.47		)	(165.2	)%

Operating revenue for the nine months ended September 30, 2019 decreased 5.0%, or $17.2 million, to $327.6 million, primarily due to lower revenue from the Materials & Construction segment partially offset by higher revenue from each of the Commercial Real Estate and Land Operations segments. The reasons for business and segment-specific fluctuations in revenue are further described below in the Analysis of Operating Revenue and Profit by Segment.

Cost of operations for the nine months ended September 30, 2019 decreased 2.8%, or $7.5 million, to $260.0 million, primarily due to a decrease in costs by the Materials & Construction segment partially offset by an increase in costs incurred by the Commercial Real Estate segment. The reasons for the cost of operations changes are described below, by business segment, in the Analysis of Operating Revenue and Profit by Segment.

Selling, general and administrative for the nine months ended September 30, 2019 increased 0.9%, or $0.4 million, to $45.1 million, primarily due to an increase in each of the Commercial Real Estate and Materials & Construction segments. The reasons for business and segment-specific fluctuations in selling, general and administrative expenses are further described below in the Analysis of Operating Revenue and Profit by Segment.

Goodwill impairment for the nine months ended September 30, 2019 was $49.7 million due to asset impairments incurred in the Materials & Construction segment. There were no asset impairments incurred during the nine months ended September 30, 2018. The reasons for business and segment specific asset impairments are further described in the Analysis of Operating Revenue and Profit by Segment.

Gain (loss) on the sale of commercial real estate properties during the nine months ended September 30, 2018 was $49.8 million due to the aggregate gain realized on the sales of six mainland properties (Concorde Commerce Center, Deer Valley Financial Center, 1800 and 1820 Preston Park, Little Cottonwood Center, Royal MacArthur Center, and Sparks Business Center) and three Hawai‘i assets (Stangenwald Building, Judd Building and land underlying a ground lease). There were no sales of commercial real estate assets during the nine months ended September 30, 2019.

29

Interest and other income (expense), net was a net income of $2.8 million in the nine months ended September 30, 2019 compared to a net income of $2.1 million in the nine months ended September 30, 2018. The change from the prior year was primarily due to higher interest income on the Company's notes receivable, partially offset by an increase in pension expense.

Interest expense for the nine months ended September 30, 2019 decreased $1.0 to $25.4 million, due to lower average debt levels during the period.

Income tax benefit (expense) was a benefit of $1.1 million during the nine months ended September 30, 2019 primarily due to a tax benefit related to interest income on IRS income tax refunds. Income tax benefit (expense) was a benefit of $1.8 million during the nine months ended September 30, 2018, due to a taxable loss incurred in the operations of the Company's taxable REIT subsidiary.

Discontinued operations (net of income taxes) was a net expense of $0.8 million during the nine months ended September 30, 2019 and was not significant during the nine months ended September 30, 2018.

(Income) Loss attributable to noncontrolling interest during the nine months ended September 30, 2019 was a loss of $1.8 million as compared to income of $1.4 million during the nine months ended September 30, 2018. The noncontrolling interest represents third-party noncontrolling interests in two entities consolidated within the Materials & Construction segment, and in which Grace Pacific owns a 70 percent and 51 percent share in each. The loss in the nine months ended September 30, 2019 was primarily driven by asset impairments incurred in the Materials & Construction segment in the reporting units which involve the noncontrolling interest.

ANALYSIS OF OPERATING REVENUE AND PROFIT BY SEGMENT

Commercial Real Estate - Third quarter of 2019 compared with 2018

	Three Months Ended September 30,
(dollars in millions, unaudited)	2019			2018			$ Change			Change
Commercial Real Estate operating revenue	$	42.7		$	35.9		$	6.8		18.9	%
Commercial Real Estate operating costs and expenses	(23.8		)	(19.2		)	(4.6		)	(24.0	)%
Selling, general and administrative	(2.3		)	(1.4		)	(0.9		)	(64.3	)%
Intersegment operating revenue, net1	0.7			0.6			0.1			16.7	%
Other income/(expense), net	0.7			—			0.7			—	%
Commercial Real Estate operating profit (loss)	$	18.0		$	15.9		$	2.1		13.2	%
Operating profit (loss) margin	42.2		%	44.3		%
Cash Net Operating Income ("Cash NOI")2
Hawai‘i	$	27.2		$	22.0
Mainland	—			—
Total	$	27.2		$	22.0
Same-Store Cash Net Operating Income ("Same-Store Cash NOI")2	$	19.3		$	18.9
Gross Leasable Area ("GLA") (million sq. ft.) - Improved (end of period)	3.9			3.4
Ground leases (acres at end of period)	154			109

¹ Intersegment operating revenue, net for Commercial Real Estate is primarily from the Materials & Construction segment and is eliminated in the consolidated results of operations.

² Refer to page 33 for a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures.

Commercial Real Estate operating revenue increased 18.9%, or $6.8 million, to $42.7 million for the third quarter ended September 30, 2019, as compared to the third quarter ended September 30, 2018. Operating profit increased 13.2%, or $2.1 million, to $18.0 million for the third quarter ended September 30, 2019, as compared to the third quarter ended September 30, 2018. The variance in operating profit from the prior year is due primarily to the impact of acquired properties/development/redevelopment projects commencing operations and new tenant leases, as well as an increase in same-store rents.

30

Acquired properties contributing to the increase in operating profit in the third quarter of 2019 compared with 2018 include (i) current year retail portfolio acquisitions of Queens' Marketplace on the island of Hawai‘i in May 2019 and Waipouli Town Center on Kauai in May 2019, (ii) current year acquisitions of ground lease interests in the land under the Home Depot warehouse store in the Iwilei submarket of Honolulu in March 2019 and land in Kapolei Business Park West commonly known as the Honolulu Authority of Rapid Transportation (HART) precast yard in April 2019, and (iii) current/prior year industrial acquisitions of three Class-A warehouse buildings in Kapolei on Oahu in April 2019/December 2018.

Redevelopment/new development projects impacting current year operating profit due to the commencement of operations include Lau Hala Shops in Kailua on Oahu (commenced operations in the fourth quarter of 2018) and Ho‘okele Shopping Center on Maui (commenced operations in the third quarter of 2019).

Growth in same-store rents in the third quarter of 2019 compared with 2018 was primarily driven by Pearl Highlands Center and Kailua Retail on Oahu resulting from higher occupancy and strong comparable leasing spreads, respectively.

The increase in operating profit from these drivers was partially offset by higher general and administrative expense related to growth in the overall segment portfolio driven, in part, by an increase in personnel-related costs in the segment operations to support such growth.

"Same-store" refers to properties that were owned and operated for the entirety of the prior calendar year. The same-store pool excludes properties under development or redevelopment, properties held for sale and also excludes properties acquired or sold during the comparable reporting periods, including stabilized properties. New developments and redevelopments are moved into the same-store pool upon one full calendar year of stabilized operation. New developments and redevelopments are generally considered stabilized upon the initial attainment of 90% occupancy.

Occupancy represents the percentage of square footage leased and commenced to gross leasable space at the end of the period reported. The Company's commercial portfolio's occupancy and same-store occupancy percentage summarized by property type as of September 30, 2019 and 2018 was as follows:

Occupancy
	As of	As of	Percentage Point Change
	September 30, 2019	September 30, 2018
Retail	94.9%	92.7%	2.2
Industrial	95.4%	90.2%	5.2
Office	92.6%	91.7%	0.9
Total	95.0%	91.9%	3.1

Same-Store Occupancy
	As of	As of	Percentage Point Change
	September 30, 2019	September 30, 2018
Retail	94.3%	92.7%	1.6
Industrial	94.2%	90.2%	4.0
Office	92.6%	91.7%	0.9
Total	94.2%	91.8%	2.4

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GLA related to improved properties was 3.9 million square feet at September 30, 2019 and 3.5 million square feet at December 31, 2018. The fluctuation in GLA from December 31, 2018 was due primarily to the following current year asset acquisitions (excluding ground leases, which have no impact on GLA):

Acquisitions
Date	Property	GLA (SF)
5/19	Queens' Marketplace	135,000
5/19	Waipouli Town Center	56,500
4/19	Kapolei Enterprise Center	93,000
	Total improved acquisitions	284,500

Commercial Real Estate - First nine months of 2019 compared with 2018

	Nine Months Ended September 30,
(dollars in millions, unaudited)	2019			2018			$ Change			Change
Commercial Real Estate operating revenue	$	118.6		$	104.9		$	13.7		13.1	%
Commercial Real Estate operating costs and expenses	(64.3		)	(57.0		)	7.3			(12.8	)%
Selling, general and administrative	(7.8		)	(4.7		)	(3.1		)	(66.0	)%
Intersegment operating revenue, net1	1.9			1.9			—			—	%
Other income/(expense), net	2.2			(0.1		)	2.3			NM
Commercial Real Estate operating profit (loss)	$	50.6		$	45.0		$	5.6		12.4	%
Operating profit (loss) margin	42.7		%	42.9		%
Cash Net Operating Income ("Cash NOI")2
Hawai‘i	$	76.8		$	63.1
Mainland	—			1.5
Total	$	76.8		$	64.6
Same-Store Cash Net Operating Income ("Same-Store Cash NOI")2	$	59.2		$	56.2

¹ Intersegment operating revenue, net for Commercial Real Estate is primarily from the Materials & Construction segment and is eliminated in the condensed consolidated results of operations.

² Refer to page 33 for a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures.

Commercial Real Estate operating revenue increased 13.1%, or $13.7 million, to $118.6 million for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. Operating profit increased 12.4%, or $5.6 million, to $50.6 million for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. The variance in operating profit from the prior year is due primarily to the impact of acquired properties/development/redevelopment projects commencing operations and new tenant leases, as well as an increase in same-store rents.

Acquired properties contributing to the increase in operating profit in the first nine months of 2019 compared with 2018 include (i) current year retail portfolio acquisitions of Queens' Marketplace on the island of Hawai‘i in May 2019 and Waipouli Town Center on Kauai in May 2019, as well as the continued stabilization of February 2018 acquisitions of three Hawai‘i retail centers (Pu‘unene Shopping Center, Laulani Village Shopping Center, and Hokulei Village Shopping Center), (ii) current year acquisitions of ground lease interests in the land under the Home Depot warehouse store in the Iwilei submarket of Honolulu in March 2019 and land in Kapolei Business Park West commonly known as the Honolulu Authority of Rapid Transportation (HART) precast yard in April 2019, and (iii) current/prior year industrial acquisitions of three Class-A warehouse buildings in Kapolei on Oahu in April 2019/December 2018.

Redevelopment/new development projects impacting the current year operating profit due to the commencement of operations include Lau Hala Shops in Kailua on Oahu (commenced operations in the fourth quarter of 2018) and Ho‘okele Shopping Center on Maui (commenced operations in the third quarter of 2019).

32

Growth in same-store rents in the first nine months of 2019 compared with 2018 was primarily driven by Pearl Highlands Center and Kailua Retail on Oahu resulting from higher occupancy and strong comparable leasing spreads, respectively.

The increase in operating profit from these drivers was partially offset by higher general and administrative expense related to growth in the overall segment portfolio driven, in part, by an increase in personnel-related costs in the segment operations to support such growth.

"Same-store" refers to properties that were owned and operated for the entirety of the prior calendar year. The same-store pool excludes properties under development or redevelopment, properties held for sale and also excludes properties acquired or sold during the comparable reporting periods, including stabilized properties. New developments and redevelopments are moved into the same-store pool upon one full calendar year of stabilized operation. New developments and redevelopments are generally considered stabilized upon the initial attainment of 90% occupancy.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures when evaluating operating performance because management believes that they provide additional insight into the Company's and segments' core operating results, and/or the underlying business trends affecting performance on a consistent and comparable basis from period to period. These measures generally are provided to investors as an additional means of evaluating the performance of ongoing core operations.

Cash Net Operating Income ("Cash NOI") is a non-GAAP measure used internally in evaluating the unlevered performance of the Company's Commercial Real Estate portfolio. The Company believes Cash NOI provides useful information to investors regarding the Company's financial condition and results of operations because it reflects only those cash income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of the Company's properties as this measure is not affected by non-cash revenue and expense recognition items, the impact of depreciation and amortization expenses or other gains or losses that relate to the Company's ownership of properties. The Company believes the exclusion of these items from operating profit (loss) is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating the Company's Commercial Real Estate portfolio as well as trends in occupancy rates, rental rates, and operating costs. Cash NOI should not be viewed as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Cash NOI is calculated as total Commercial Real Estate operating revenues less direct property-related operating expenses. Cash NOI excludes straight-line lease adjustments, amortization of favorable/unfavorable leases, amortization of lease incentives, selling, general and administrative expenses, impairment of commercial real estate assets, lease termination income, other income and expense, net, and depreciation and amortization (including amortization of maintenance capital, tenant improvements and leasing commissions).

The Company's methods of calculating non-GAAP measures may differ from methods employed by other companies and thus may not be comparable to such other companies.

33

A reconciliation of Commercial Real Estate operating profit (loss) to Commercial Real Estate Cash NOI for the three and nine months ended September 30, 2019 and 2018 are as follows (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, unaudited)	2019			2018			2019			2018
Commercial Real Estate Operating Profit (Loss)	$	18.0		$	15.9		$	50.6		$	45.0
Plus: Depreciation and amortization	9.8			7.2			26.3			20.5
Less: Straight-line lease adjustments	(1.9		)	(2.0		)	(4.6		)	(2.7		)
Less: Favorable/(unfavorable) lease amortization	(0.1		)	(0.4		)	(1.1		)	(1.4		)
Less: Termination income	(0.1		)	—			(0.1		)	(1.1		)
Plus: Other (income)/expense, net	(0.7		)	—			(2.2		)	0.1
Plus: Selling, general, administrative and other expenses	2.3			1.4			7.8			4.7
Less: Impact of adoption of ASU 2016-021	—			(0.2		)	—			(0.5		)
Commercial Real Estate Cash NOI	$	27.3		$	21.9		$	76.7		$	64.6
1 Represents legal costs related to leasing activity that were previously capitalized when incurred and recognized as amortization expense over the term of the lease contract. Upon the Company's adoption of ASU 2016-02, Leases, on January 1, 2019, such legal costs are directly expensed as operating costs and are included in Cash NOI. For comparability purposes, Cash NOI for the 2018 periods presented have been adjusted to include legal fees in conformity with Cash NOI for the 2019 periods presented.

Land Operations - Third quarter of 2019 compared with 2018

The asset class mix of real estate sales in any given year or quarter can be diverse and may include developed residential real estate, developable subdivision lots, undeveloped land, or property sold under threat of condemnation. Further, the timing of property or parcel sales can significantly affect operating results in a given period.

Additionally, the operating profit reported in each quarter does not necessarily follow a percentage of sales trend because the cost basis of property sold can differ significantly between transactions. For example, the sale of undeveloped land and vacant parcels in Hawai‘i generally provides higher margins than does the sale of developed property, due to the low historical cost basis of the Company's land owned in Hawai‘i.

As a result, direct year-over-year comparison of the Land Operations segment results may not provide a consistent, measurable indicator of future performance. Further, Land Operations revenue trends, cash flows from the sales of real estate, and the amount of real estate held for sale on the Company's balance sheet do not necessarily indicate future profitability trends for this segment.

	Three Months Ended September 30,
(in millions, unaudited)	2019			2018
Development sales revenue	$	0.8		$	9.0
Unimproved/other property sales revenue	1.5			9.1
Other operating revenue1	6.2			5.9
Total Land Operations operating revenue	8.5			24.0
Land Operations costs and operating expenses	(7.4		)	(19.3		)
Earnings (loss) from joint ventures	1.9			4.5
Interest and other income (expense), net	(0.2		)	3.9
Land Operations operating profit (loss)	$	2.8		$	13.1

¹ Other operating revenue includes revenue related to trucking, renewable energy and diversified agriculture.

Third quarter of 2019: Land Operations revenue was $8.5 million and included the impact of sales of 0.5 acres at Maui Business Park II and a 1-acre unimproved parcel on the island of Kauai. Revenue also included other operating revenues related to the Company's trucking service, renewable energy, and diversified agribusiness operations.

34

Land Operations operating profit of $2.8 million during the third quarter ended September 30, 2019 was composed of the margins on the Maui Business Park II development lot and Kauai unimproved property, as well as income from the operations of the Company's trucking service and renewable energy businesses. The Land Operations segment results also included $0.2 million of other net expense primarily consisting of other pension expense.

Third quarter of 2018: Land Operations revenue was $24.0 million and included sales of 22 units at the Company's Kamalani project in Kihei, Maui, the sale of 313 acres to the State of Hawai‘i for the expansion of the Kahului airport on Maui, and trucking service, renewable energy, and diversified agribusiness operations.

The Land Operations segment incurred an operating profit of $13.1 million during the third quarter ended September 30, 2018 that primarily resulted from the Kahului airport expansion sale and earnings from the Company's real estate development-related joint ventures and investments. The Land Operations segment results also included $4.2 million of other net income primarily resulting from the sale of the Company's equity investment in a real estate development-related joint venture.

Land Operations - First nine months of 2019 compared with 2018

	Nine Months Ended September 30,
(in millions, unaudited)	2019			2018
Development sales revenue	$	31.2		$	42.8
Unimproved/other property sales revenue	32.4			11.5
Other operating revenue1	18.8			18.3
Total Land Operations operating revenue	82.4			72.6
Land Operations costs and operating expenses	(72.6		)	(71.8		)
Earnings (loss) from joint ventures	5.3			6.0
Interest and other income (expense), net	0.8			2.5
Land Operations operating profit (loss)	$	15.9		$	9.3

¹Other operating revenue includes revenue related to trucking, renewable energy and diversified agriculture.

First nine months of 2019: Land Operations revenue was $82.4 million and included the impact of the sales of 42 acres of land and related improvements in Wailea, the remaining 44 units in Increment 1 of the Kamalani planned community, two Kahala lots, approximately 800 acres of agricultural land on Maui, two Maui Business Park lots, and a 1-acre parcel on the island of Kauai. Revenue also included other operating revenues related to the Company's trucking service, renewable energy, and diversified agribusiness operations.

Operating profit for the nine months ended September 30, 2019 of $15.9 million was primarily driven by the sales of land and related improvements mentioned above and also included real estate development joint venture earnings of $5.3 million, a gain of $2.6 million related to the sale of 50% interest in EMI, and $2.2 million in pension related expenses.

First nine months of 2018: Land Operations revenue was $72.6 million and included sales of 68 units for the Company's Kamalani project in Kihei, Maui, the sale of one Kahala Avenue parcel, the sale of 313 acres to the State of Hawai‘i for the expansion of the Kahului airport on Maui, and trucking service and power sales revenues. The Land Operations segment incurred an operating profit of $9.3 million during the nine months ended September 30, 2018 that primarily resulted from the Kahului airport expansion sale and earnings from the Company's real estate development-related joint ventures and investments. The Land Operations segment results also included $2.9 million from other net income primarily resulting from the sale of the Company's equity investment in a real estate development-related joint venture offset by other pension expense.

35

Materials & Construction - Third quarter of 2019 compared with 2018

	Three Months Ended September 30,
(in millions, unaudited)	2019			2018			$ Change			Change
Materials & Construction operating revenue	$	37.9		$	59.5		$	(21.6	)	(36.3)%
Operating Profit (Loss)	$	(57.9	)	$	3.4		$	(61.3	)	NM
Operating margin percentage	(152.8		)%	5.7		%
Depreciation and amortization	$	2.7		$	3.0		$	(0.3	)	(10.0)%
Aggregate tons delivered (tons in thousands)	209.9			191.2			18.7			9.8%
Asphalt tons delivered (tons in thousands)	68.3			152.3			(84.0		)	(55.2)%
Backlog1 at period end	$	93.9		$	157.4		$	(63.5	)	(40.3)%

¹ Backlog represents the total amount of revenue that Grace Pacific and Maui Paving, LLC, a 50-percent-owned unconsolidated affiliate, expect to realize on contracts awarded. 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. As of September 30, 2019 and 2018, these amounts include $17.0 million and $12.2 million of opportunity backlog consisting of government contracts in which Grace Pacific has been confirmed to be the lowest bidder and formal communication of the award is perfunctory at the time of this disclosure. Circumstances outside the Company's control such as procurement or technical protests may arise that prevent the finalization of such contracts. Maui Paving's backlog at September 30, 2019 and 2018 was $7.2 million and $4.0 million, respectively.

Materials & Construction revenue was $37.9 million for the third quarter ended September 30, 2019, compared to $59.5 million for the third quarter ended September 30, 2018. Operating loss was $57.9 million for the third quarter ended September 30, 2019, compared to operating profit of $3.4 million for the third quarter ended September 30, 2018. During the quarter ended September 30, 2019, the Company recorded a non-cash impairment of $49.7 million to the carrying value of its goodwill balance due to continued, adverse market conditions. In addition to the goodwill impairment, the segment operating loss was impacted by lower paving volume and margins. Earnings from joint venture investments are not included in segment revenue but are included in operating profit (loss).

Backlog at the end of September 30, 2019 was $93.9 million, compared to $157.4 million as of September 30, 2018 and $128.7 million as of December 31, 2018. The decrease in backlog from the comparable prior year period reflects both a decline in recent government contracts that have been put out to bid, as well as a change in the nature of government contracting that precludes certain contracts from being included in backlog. Certain agencies are now awarding "maintenance contracts" under which a contractor can secure all paving work within a certain geographic area, but jobs are not identified in advance, meeting the requirement for inclusion in backlog.

Materials & Construction - First nine months of 2019 compared with 2018

	Nine Months Ended September 30,
(in millions, unaudited)	2019			2018			$ Change			Change
Materials & Construction operating revenue	$	126.6		$	167.3		$	(40.7	)	(24.3)%
Operating Profit (Loss)	$	(66.7	)	$	7.2		$	(73.9	)	NM
Operating margin percentage	(52.7		)%	4.3		%
Depreciation and amortization	$	8.5		$	9.1		$	(0.6	)	(6.6)%
Aggregate tons delivered (tons in thousands)	620.5			542.0			78.5			14.5%
Asphalt tons delivered (tons in thousands)	238.0			412.6			(174.6		)	(42.3)%

Materials & Construction revenue was $126.6 million for the nine months ended September 30, 2019, compared to $167.3 million for the nine months ended September 30, 2018.

Operating loss was $66.7 million for the nine months ended September 30, 2019, compared to operating profit of $7.2 million for the nine months ended September 30, 2018. The decline in the segment results of operations from the nine months of 2018 to the nine months of 2019 was due primarily to a non-cash impairment charge related to goodwill and lower paving volume and margins. Earnings from joint venture investments are not included in segment revenue but are included in operating loss.

36

LIQUIDITY AND CAPITAL RESOURCES

Overview: A&B's primary liquidity needs have historically been to support working capital requirements and fund capital expenditures, commercial real estate acquisitions and real estate developments. A&B's principal sources of liquidity have been cash flows provided by operating activities, available cash and cash equivalent balances, and borrowing capacity under its various credit facilities.

A&B's operating income (loss) is generated by its subsidiaries. There are no material restrictions on the ability of A&B's wholly owned subsidiaries to pay dividends or make other distributions to A&B. A&B regularly evaluates investment opportunities, including development-for-hold projects, commercial real estate acquisitions, joint venture investments, share repurchases, business acquisitions and other strategic transactions to increase shareholder value. A&B cannot predict whether or when it may make investments or what impact any such transactions could have on A&B's results of operations, cash flows or financial condition.

Cash Flows: Cash flows provided by operations were $104.0 million and $37.7 million for the nine months ended September 30, 2019 and 2018, respectively. The change in cash flows from operating activities is primarily attributable to cash receipts of $24.6 million related to Federal Income Tax receivables as well as an increase in cash generated from the Company's CRE segment and Land Operations segment as compared to the prior year's nine months ended September 30, 2018.

Cash flows used in investing activities was $238.3 million and $60.8 million for the nine months ended September 30, 2019 and 2018, respectively. During the nine months ended September 30, 2019, the net cash used in investing activities included cash outlays of $250.2 million related to capital expenditures, which included cash outflows of $218.4 million related to the Company's acquisitions of five commercial real estate assets. Cash used in investing activities during the nine months ended September 30, 2019 also included $3.3 million related to capital contributions with respect to its investments in unconsolidated affiliates. Cash flows used in investing activities during the nine months ended September 30, 2019 included $12.2 million related to distributions from joint ventures and other investments and $2.7 million of proceeds related to the sale of 50% of the Company's interests in a joint venture.

Net cash flows used in investing activities for capital expenditures were as follows:

	Three Months Ended September 30,
(in millions, unaudited)	2019		2018		Change
Commercial real estate property acquisitions/improvements	$	2.7	$	16.8	(83.9)%
Tenant improvements	1.2		1.9		(36.8)%
Quarrying and paving	0.1		1.9		(94.7)%
Agribusiness and other	0.4		1.0		(60.0)%
Total capital expenditures¹	$	4.4	$	21.6	(79.6)%

	Nine Months Ended September 30,
(in millions, unaudited)	2019		2018		Change
Commercial real estate property acquisitions/improvements	$	242.7	$	226.8	7.0%
Tenant improvements	2.6		6.7		(61.2)%
Quarrying and paving	3.6		6.0		(40.0)%
Agribusiness and other	1.3		2.1		(38.1)%
Total capital expenditures¹	$	250.2	$	241.6	3.6%

¹   Excludes capital expenditures for real estate developments to be held and sold as real estate development inventory, which are classified in the condensed consolidated statement of cash flows as operating activities and are excluded from the tables above.

Net cash flows used in financing activities was $93.2 million for the nine months ended September 30, 2019, as compared to net cash used in financing activities for the nine months ended September 30, 2018 of $72.4 million. The change in cash flows used in financing activities in 2019 as compared to 2018 was due primarily to higher net payments on debt (i.e., debt payments net of additional borrowings) as compared to net borrowings in the prior period partially offset by lower cash dividend payments as compared to the prior period.

The Company believes that funds generated from results of operations, available cash and cash equivalents, and available borrowings under credit facilities will be sufficient to finance the Company's business requirements for the next fiscal year, including working capital, capital expenditures, potential acquisitions and stock repurchases. There can be no assurance, however, that the

37

Company will continue to generate cash flows at or above current levels or that it will be able to maintain its ability to borrow under its available credit facilities.

Other Sources of Liquidity: Additional sources of liquidity for the Company include trade receivables, contracts retention, and inventories, totaling $91.0 million at September 30, 2019, a decrease of $20.5 million from December 31, 2018.

The Company also has revolving credit and term facilities that provide additional sources of liquidity for working capital requirements or investment opportunities on a short-term as well as longer-term basis. At September 30, 2019, the Company had $118.4 million of revolving credit borrowings outstanding, $1.7 million in letters of credit had been issued against the facility, and $329.9 million remained unused.

Tax-Deferred Real Estate Exchanges:

Sales: During the third quarter ended September 30, 2019, there were no cash proceeds from sales activity that qualified for potential tax-deferral treatment under Internal Revenue Code §1031 or §1033.

Purchases: During the third quarter ended September 30, 2019, there were no acquisitions utilizing proceeds from tax-deferred sales or condemnations.

Proceeds from §1031 tax-deferred sales are held in escrow pending future use to purchase new real estate assets. The proceeds from §1033 condemnations are held by the Company until the funds are redeployed. As of September 30, 2019, there were no cash proceeds from tax-deferred sales and approximately $14.5 million from tax-deferred condemnations that had not yet been reinvested.

Commitments, Contingencies and Off-balance Sheet Arrangements: A description of other commitments, contingencies, and off-balance sheet arrangements at September 30, 2019, and herein incorporated by reference, is included in Note 3 to the condensed consolidated financial statements of Item 1 in this Form 10-Q.

OTHER MATTERS

Critical Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, upon which the Management's Discussion and Analysis is based, requires that management exercise judgment when making estimates and assumptions about future events that may affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty and actual results will, inevitably, differ from those critical accounting estimates. These differences could be material. The most significant accounting estimates inherent in the preparation of A&B's financial statements were described in Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Company's 2018 Form 10-K.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information concerning market risk is incorporated herein by reference to Item 7A of the Company's Form 10-K for the fiscal year ended December 31, 2018. There has been no material change in the quantitative and qualitative disclosures about market risk since December 31, 2018.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2019, the Company’s disclosure controls and procedures were effective.

Internal Control Over Financial Reporting

There have not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company's fiscal third quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information set forth under the "Legal Proceedings and Other Contingencies" section in Note 3 of Notes to Condensed Consolidated Financial Statements, included in Part I, Item 1 of this report, is incorporated herein by reference.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities
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
July 1-31, 2019	—	$	—	—	—
August 1-31, 2019	90	$	22.70	—	—
September 1-30, 2019	2,616	$	22.70	—	—

¹Represents shares accepted in satisfaction of tax withholding obligations arising upon the vesting of restricted stock unit awards.

ITEM 4. MINE SAFETY DISCLOSURES

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulations S-K (17 CFR 229.104) is included in Exhibit 95 to this periodic report on Form 10-Q.

ITEM 5. OTHER INFORMATION

On October 30, 2019, the Company hosted a live webcast of its conference call with financial analysts and institutional investors. In response to a question during the call, the Company inadvertently stated that the carrying value of Grace Pacific LLC was approximately $217 million. The actual carrying value of equity on a cash-free, debt-free basis for the Company's Materials & Construction segment was approximately $208 million as of September 30, 2019, of which approximately $183 million related to Grace Pacific LLC and the remainder of which related to the Company's minority interest in a materials business.

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ITEM 6. EXHIBITS

EXHIBIT INDEX

10.b.1.(xxvi) Alexander & Baldwin, Inc. Executive Severance Plan, amended and restated as of July 29, 2019.

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.

95 Mine Safety Disclosure

101 The following information from Alexander & Baldwin, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018, (ii) Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2019 and 2018, (iii) Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, (iv) Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2019 and 2018, (v) Condensed Consolidated Statements of Equity for the three and nine months ended September 30, 2019 and 2018, and (vi) the Notes to the Condensed Consolidated Financial Statements.

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SIGNATURES

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.
November 1, 2019	By: /s/ Brett A. Brown
	Brett A. Brown
	Executive Vice President and Chief Financial Officer
November 1, 2019	By: /s/ Clayton K.Y. Chun
	Clayton K.Y. Chun
	Senior Vice President, Chief Accounting Officer and Controller

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EX-10.B.1.(XXVI)

ALEXANDER & BALDWIN, INC.

EXECUTIVE SEVERANCE PLAN

(Amended and Restated as of July 29, 2019)

INTRODUCTION

The purpose of the Alexander & Baldwin, Inc. Executive Severance Plan (the “Plan”) is to retain key employees and to encourage such employees to use their best business judgment in managing the affairs of Alexander & Baldwin, Inc. (the “Company”) and its divisions and subsidiaries. Therefore, the Company is willing to provide the severance benefits described below to protect these employees if involuntarily terminated without cause or laid off from employment as part of a job elimination/restructuring or reduction in force. It is further intended that this Plan will complement other compensation program components to assure a sound basis upon which the Company will retain key employees.

Article 1

Definitions and Exclusions

Whenever used in this Plan, the following words and phrases shall have the meanings set forth below. When the defined meaning is intended, the term is capitalized:

1.1“Base Salary” means the total amount of base salary payable to the participant at the salary rate in effect on the last day of the participant’s employment with the Employer. Base Salary does not include bonuses, reimbursed expenses, credits or benefits under any plan of deferred compensation, to which the Employer contributes, or any additional cash compensation or compensation payable in a form other than cash.

1.2“Board of Directors” shall mean the Board of Directors of the Company.

1.3“Cause” means termination from employment with the Employer upon:

1.3(a)the willful and continued failure by the participant substantially to perform the participant’s duties with the Employer (other than any such failure resulting from the participant’s incapacity due to physical or mental Disability). For the purposes of this subsection and subsection 1.3(b), no act, or failure to act, on the participant’s part shall be considered “willful” unless done, or omitted to be done, by the participant not in good faith and without reasonable belief by the participant that his action or omission was in the best interest of the Employer; or

1.3(b)the willful engaging by the participant in conduct that is demonstrably and materially injurious to the Employer, monetarily or otherwise.

1.4 “Disability” shall mean that an individual is deemed to be totally disabled by the Social Security Administration.

1.5 “Employer” shall mean the Company or the entity for whom services are performed and with respect to whom the legally binding right to compensation arises, and all entities

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with whom the Company would be considered a single employer under Section 414(b) of the Internal Revenue Code of 1986, as amended (the “Code”); provided that in applying Section 1563(a)(1), (2), and (3) of the Code for purposes of determining a controlled group of corporations under Section 414(b) of the Code, the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Section 1563(a)(1), (2), and (3) of the Code, and in applying Treasury Regulation § 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Section 414(c) of the Code, “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Treasury Regulation § 1.414(c)-2; provided, however, “at least 20 percent” shall replace “at least 50 percent” in the preceding clause if there is a legitimate business criteria for using such lower percentage.

1.6“Identification Date” means each December 31.

1.7“Key Employee” means a participant who, on an Identification Date, is:

1.7(a)An officer of the Company of having annual compensation greater than the compensation limit in Section 416(i)(1)(A)(i) of the Code, provided that no more than fifty officers of the Company shall be determined to be Key Employees as of the Identification Date;

1.7(b)A five percent owner of the Company; or

1.7(c)A one percent owner of the Company having annual compensation from the Company of more than $150,000.

If a participant is identified as a Key Employee on an Identification Date, then such participant shall be considered a Key Employee for purposes of the Plan during the period beginning on the first April 1 following the Identification Date and ending on the next March 31. For purposes of this Section 1.7 only and for determining whether a participant is a Key Employee, the “Company” shall mean the Company and its affiliates that are treated as a single employer under Section 414(b) or (c) of the Code, and for purposes of determining whether a participant is a Key Employee, Treasury Regulation § 1.415(c)-2(d)(4) shall be used to calculate compensation.

1.8“Layoff” means the elimination of a job due to economic reasons, whether or not as part of job elimination or restructuring, or as a reduction-in-force affecting one or more positions. Layoff does not include resignation from employment or Separation from Service by reason of death, Disability, or discharge for Cause. A participant is not considered to have been laid off, and will not be entitled to severance benefits described in Article 3, if the Plan Administrator determines, in its discretion, that either the Employer or a purchaser or other successor has offered comparable employment to the participant to commence after the participant’s Separation from Service, whether or not the participant accepts the position offered.

1.9 “Separation from Service” shall mean termination of employment with the Employer, other than due to death. A participant shall be deemed to have experienced a Separation from Service if the participant’s service with the Employer is reduced to an annual rate that is less than fifty percent of the services rendered, on average, during the immediately preceding three full

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years of employment with the Employer (or if employed by the Employer less than three years, such lesser period).

Article 2

Eligibility for Benefits

2.1Eligibility. To be eligible for Plan benefits, employees must serve in a job categorized as the Chief Executive Officer, Band A, or Band B under the Company’s job evaluation program. Exceptions (additions or deletions) to the eligibility requirements can be made only by the Alexander & Baldwin, Inc. Chief Executive Officer, with the approval of the Compensation Committee of the Board of Directors (the “Committee”).

2.2Benefits. Except as provided in Section 2.3, if the participant experiences an involuntary Separation from Service without Cause or a Separation from Service because of a Layoff, the Employer shall pay to the participant the severance benefits described in, and subject to, Section 3.1. (For the purposes of this section, “involuntary” means a Separation from Service that is due to the independent exercise of the unilateral authority of the Employer, other than due to the participant’s request, and where the participant was willing and able to continue to perform services.) A participant eligible to receive benefits under this Plan shall not be eligible for benefits under any other severance plan, policy or arrangement sponsored by the Employer.

2.3Change in Control. In the event the Employer experiences a “change in control”, as defined in section 409A of the Code and the final regulations and any guidance promulgated thereunder, and the Employer and a participant have entered into an agreement concerning a change in control of the Employer, the terms of such agreement, and not this Plan, shall govern. In such case, no benefits shall be payable to the participant under this Plan.

2.4Plan Administration. The Administrative Committee appointed by the Board of Directors, or such other committee as may be appointed by the Board of Directors from time to time, shall serve as the Plan Administrator. The Plan Administrator is responsible for the general administration and management of this Plan and shall have all powers and duties necessary to fulfill its responsibilities, including, but not limited to, the discretion to interpret and apply this Plan and to determine all questions relating to eligibility for benefits. This Plan shall be interpreted in accordance with its terms and their intended meanings. However, the Plan Administrator and all plan fiduciaries shall have the discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion they deem to be appropriate in their sole discretion, and to make any findings of fact needed in the administration of this Plan. The validity of any such interpretation, construction, decision, or finding of fact shall not be given de novo review if challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly arbitrary or capricious.

Article 3

Severance Benefits

3.1Type and Amount of Benefits. If severance benefits become payable under this Plan, benefits shall consist of the following:

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3.1(a)Monetary Payments/Reimbursement. Should the participant, prior to his Separation from Service, execute (and later not revoke, if applicable) a release agreement prepared by the Plan Administrator, the participant shall receive amounts as follows: (i) an amount equal to twelve (12) months of the participant’s Base Salary, one-twelfth of which shall be paid each month for a period of one year, beginning in the first month following the date of the participant’s Separation from Service; (ii) reimbursement for expenses arising from individual outplacement counseling services (in an amount not to exceed ten thousand dollars ($10,000.00)) that are incurred no later than 2 years after the date of the participant’s Separation from Service, and are reimbursed by the Employer no later than 3 years after the date of the participant’s Separation from Service; and, (iii) a pro rated share of the award opportunity at “Target” under the Alexander & Baldwin, Inc. One-Year Performance Improvement Incentive Plan that otherwise would have been payable to the participant had the participant remained employed until the end of the applicable performance period(s) of such plans. If the release is not revoked (if applicable), the payments under subsections 3.1(a)(i) and (iii) shall be payable no later than 60 days following the date of the participant’s Separation from Service. If the release is timely revoked (if applicable), the participant shall not be entitled to any benefit under Section 3.1(a)(i), (ii) and (iii). The Plan Administrator retains the sole discretion to determine when during the 60-day period the payment will be made.

3.1(b)(i)Benefits. For the period that separation payments are made under subsection 3.1(a) above, or until the participant becomes employed with another employer offering any such benefits (whichever is earlier), subject to the terms of the applicable insurance policies, the Employer shall continue to pay the premiums for Basic Group Life Insurance and Basic Accidental Death & Dismemberment Insurance at the level such coverage was in effect for the participant on the date of the participant’s Separation from Service.

3.1(b)(ii)Group Medical, Dental, Drug and Vision Coverage. If separation payments are made under subsection 3.1(a) above, then for a maximum period of twelve (12) months following Separation from Service, or until the participant becomes employed with another employer offering any such benefits (whichever is earlier), the Employer shall reimburse the participant for the amount of the premiums paid by the participant for post-termination continuation coverage under the Employer’s group health insurance in accordance with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). In order to receive reimbursement, the participant must submit proof of payment to the Plan Administrator within 90 days of the payment date and the Employer will remit a check for reimbursement as soon as practicable. Notwithstanding the foregoing, in the event that such reimbursement by the Employer for the above COBRA continuation coverage is discriminatory pursuant to Code Section 105(h) or Section 2716 to the Public Health Service Act, then such reimbursements shall be taxable income to the participant reportable annually on a Form W-2 or as otherwise required by applicable federal and state law. Payment of premiums for COBRA coverage beyond twelve (12) months following Separation from Service is the sole responsibility of the participant and such payment shall not be reimbursable.

3.1(b)(iii)Death Benefits. If the participant dies during the severance benefit period, the severance benefits as described in Section 3.1(a) that have not yet been paid shall be paid to the participant’s designated beneficiary in a lump sum within 60 days

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following the participant’s death and if the designated beneficiary is entitled pursuant to COBRA to continuation coverage, then the designated beneficiary shall have the right to continued reimbursement for the remainder of the period under Section 3.1(b)(ii) for premiums paid for COBRA continuation coverage. In order to receive reimbursement, the beneficiary must submit proof of payment to the Plan Administrator within 90 days of the payment date and the Employer will remit a check for reimbursement as soon as practicable. Any beneficiary designation must be provided to the Plan Administrator in writing by the participant, prior to his death.

3.1(b)(iv)Reimbursements and In-Kind Benefits. To the extent that a right to reimbursement or an in-kind benefit under this Section 3.1 is subject to Code Section 409A, then (A) the amount eligible for reimbursement, or the in-kind benefit provided, during a participant’s taxable year may not affect the amount reimbursable, or the in-kind benefits provided, in any other taxable year; (B) any reimbursement must be made no later than the taxable year following the taxable year in which the expenses was incurred; and (C) the right to reimbursement or the in-kind benefit cannot be liquidated or exchanged for another benefit.

3.2Committee Discretion. The severance benefits as described in this Article 3 may be increased or decreased by the Committee in its absolute discretion. Such adjustments may be applied selectively with respect to one or more individual participants.

3.3Code Section 409A. This Plan is drafted with the intent that all payments or benefits provided hereunder will be exempt from Code Section 409A to the maximum extent possible under the law, and the Plan shall be construed and operated as necessary to comply with such intent. For purposes of Code Section 409A, all payments under the Plan shall be deemed separate payments and shall not be aggregated with any other payment. This Plan shall be administered and interpreted to maximize the short-term deferral exemption to Section 409A. The portion of any payment under this Plan that is paid within the short-term deferral period (within the meaning of Code Section 409A) shall be treated as a short-term deferral. Any other portion of a payment that does not meet the short-term deferral requirement shall, to the maximum extent possible, be deemed to satisfy the exception from Code Section 409A for involuntary separation pay. A participant shall not, directly or indirectly, designate the taxable year of a payment made under this Plan. Notwithstanding anything to the contrary in this Plan, if any payment or benefit is deferred compensation subject to Section 409A, and solely to the extent required by Section 409A, if a participant is a Key Employee, then any such payments shall be delayed by six (6) months and paid on the first business day of the seventh month following the participant’s Separation from Service or, if earlier, his date of death, and the amount of such accumulated delayed payments shall be credited with interest during such six-month period at a rate computed using 120% of the short-term applicable federal rate for a semi-annual compounding period under Code Section 1274(d), applicable for the month in which the participant’s Separation from Service occurs, provided that such interest rate shall not exceed 120% of the long-term applicable federal interest rate under Code Section 1274(d). The identification of a participant as a Key Employee shall be made by the Company in accordance with Section 1.7 of the Plan and sections 416(i) and 409A of the Code and the regulations promulgated thereunder. Any provision of the Plan that is noncompliant with Code Section 409A shall be deemed to be amended to comply with Code Section 409A, or if it cannot be so amended, shall be void. The

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Employer does not guarantee or warrant the tax consequences of the Plan, and the participants shall in all cases be liable for any taxes due with respect to Plan.

Article 4

Employment Status

4.1Right to Terminate Employment. This Plan shall not be deemed to constitute an employment contract between the Employer and the participant. Nothing contained herein shall give the participant the right to be retained in the employ of the Employer or to interfere with the right of the Employer to discharge the participant at any time, nor shall it give the Employer the right to require the participant to remain in its employ or to interfere with the participant’s right to terminate employment at any time.

4.2Status During Benefit Period. Commencing upon the date of the participant’s Separation from Service, the participant shall cease to be an employee of the Employer for any purpose. The payment of severance benefits under this Plan shall be payments to a former employee.

Article 5

Claims and Review Procedures

5.1 Claims Procedure. Any individual (“claimant”) who has not received benefits under the Plan that he believes should be paid shall make a claim for such benefits as follows:

5.1(a) Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.

5.1 (b) Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension must set forth the date by which the Plan Administrator expects to render its decision.

5.1(c) Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

5.1(c)(i) The specific reason for the denial,

5.1(c)(ii) A reference to the specific provisions of the Plan on which the denial is based,

5.1(c)(iii)A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed,

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5.1(c)(iv) An explanation of the Plan’s review procedures and the time limits applicable to such procedures, and

5.1(c)(v) A statement of the claimant’s right to bring a civil action under the Employee Retirement Income Security Act of 1974 (“ERISA”) Section 502(a) following an adverse benefit determination on review.

5.2Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:

5.2(a) Initiation - Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review.

5.2(b) Additional Submissions - Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

5.2(c) Timing of Plan Administrator Response. The Plan Administrator shall respond to the claimant’s request for review within 60 days after receiving the request. If the Plan Administrator determines that special circumstances require additional time for processing the request, the Plan Administrator can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period, which an additional period is required. The notice of extension must set forth the date by which the Plan Administrator expects to render its decision.

5.2(d) Notice of Decision. If the Plan Administrator affirms the denial of part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth the specific reason for the denial and a reference to the specific provisions of the Plan on which the denial is based.

5.3Authority. In determining whether to approve or deny any claim or any appeal from a denied claim, the Plan Administrator shall exercise its discretionary authority to interpret the Plan and the facts presented with respect to the claim, and its discretionary authority to determine eligibility for benefits under the Plan. Any approval or denial shall be final and conclusive upon all persons.

5.4 Exhaustion of Remedies. Except as required by applicable law, no action at law or equity shall be brought to recover a benefit under the Plan unless and until the claimant has: (a) submitted a claim for benefits, (b) been notified by the Plan Administrator that the benefits (or

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a portion thereof) are denied, (c) filed a written request for a review of denial with the Plan Administrator, and (d) been notified in writing that the denial has been affirmed.

Article 6

Amendment and Termination

It is intended that the Plan shall continue from year to year, subject to an annual review by the Board of Directors. However, the Board of Directors reserves the right to modify, amend or terminate the Plan at any time; provided, that no amendment or termination shall affect the rights of participants to receive Plan benefits finally determined by the Plan Administrator but unpaid at the time of such termination or amendment.

Article 7

Miscellaneous

7.1Not an Employment Contract. The adoption and maintenance of this Plan shall not be deemed to confer on any participant any right to continue in the employ of the Employer, and shall not be deemed to interfere with the right of the Employer to discharge any person, with or without cause, or treat any person without regard to the effect that such treatment might have on the person as a Plan participant.

7.2Benefits Non‑Assignable. No right or interest of a participant in this Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including but not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy, assignments for the benefit of creditors, receiverships, or in any other manner, excluding transfer by operation of law as a result solely of mental incompetency.

7.3Tax Withholding. The Employer shall withhold any applicable income or employment taxes that are required to be withheld from the severance benefits payable under this Plan.

7.4Applicable Law. This Plan is a welfare plan subject to ERISA and it shall be interpreted, administered, and enforced in accordance with that law.

7.5Gender and Number. Any masculine pronouns used herein shall refer to both men and women, and the use of any term herein in the singular may also include the plural unless otherwise indicated by context.

7.6Severability. If any provision of this Plan is held invalid or unenforceable by a court of competent jurisdiction, all remaining provisions shall continue to be fully effective.

7.7Binding Agreement. This Plan shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the participants and their heirs, executors, administrators and legal representatives.

IN WITNESS WHEREOF, Alexander & Baldwin, Inc. has caused this Plan to be executed by its duly authorized officers effective as of the 29^th day of July, 2019.

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ALEXANDER & BALDWIN, INC.

By: /s/ Nelson N. S. Chun

Its EVP and Chief Legal Officer

By: /s/ Alyson J. Nakamura

Its Vice President and Secretary

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Christopher J. Benjamin, certify that:

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:	November 1, 2019

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Brett A. Brown, certify that:

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/ Brett A. Brown
		Brett A. Brown
		Executive Vice President and Chief Financial Officer
Date:	November 1, 2019

EX-32

EXHIBIT 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

In connection with the Quarterly Report on Form 10-Q of Alexander & Baldwin, Inc. (the "Company") for the quarterly period ended September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Christopher J. Benjamin, as President and Chief Executive Officer of the Company, and Brett A. Brown, as Executive Vice President and Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to their knowledge:

(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:	November 1, 2019

/s/ Brett A. Brown
Name:	Brett A. Brown
Title:	Executive Vice President and Chief Financial Officer
Date:	November 1, 2019

EX-95

EXHIBIT 95

MINE SAFETY DISCLOSURE

The operation of Grace Pacific LLC’s Makakilo Quarry (the “Quarry”) is subject to regulation by the federal Mine Safety and Health Administration (MSHA) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Quarry on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Company is required to present information regarding certain mining safety and health citations which MSHA has issued with respect to its mining operation in its periodic reports filed with the Securities and Exchange Commission (the “SEC”). We have provided information below in response to the rules and regulations of the SEC issued under Section 1503(a) of the Dodd-Frank Act.

The Dodd-Frank Act and the subsequent implementing regulation issued by the SEC require disclosure of the following categories of violations, orders and citations: (1) Section 104 S&S Citations, which are citations issued for violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard; (2) Section 104(b) Orders, which are orders issued upon a follow up inspection where the inspector finds the violation previously cited has not been totally abated in the prescribed time period; (3) Section 104(d) Citations and Orders, which are issued upon violations of mandatory health or safety standards caused by an unwarrantable failure of the operator to comply with the standards; (4) Section 110(b)(2) Violations, which result from the reckless and repeated failure to eliminate a known violation; (5) Section 107(a) Orders, which are given when MSHA determines that an imminent danger exists and results in an order of immediate withdrawal from the area of the mine affected by the condition; and (6) written notices from MSHA of a pattern of violations-or the potential to have such pattern-of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of mine health or safety hazards under Section 104(e). In addition, the Dodd-Frank Act requires the disclosure of the total dollar value of proposed assessments from MSHA under the Mine Act and the total number of mining related fatalities. This information for the Quarry for the quarter ended September 30, 2019 is as follows:

Total Number of S&S Citations	0
Mine Act § 104(b) Orders	0
Mine Act § 104(d) Citations and Orders	0
Mine Act § 110(b)(2) Violations	0
Mine Act § 107(a) Orders	0
Total Dollar Value of Proposed MSHA Assessments	$—
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

As of September 30, 2019, there were no pending legal actions before the Federal Mine Safety and Health Review Commission involving the Quarry. No legal actions were instituted during the quarter ended September 30, 2019 and no legal actions were resolved during the quarter ended September 30, 2019.

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Related Party Transactions (Details) - Affiliated Entity - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2018
Materials & Construction | Supplier Contracts
Related Party Transaction [Line Items]
Revenue from related parties	$ 2,800,000	$ 4,500,000	$ 9,600,000	$ 10,800,000
Receivables from related parties	1,500,000		1,500,000			$ 2,200,000
Payables to related parties	700,000		700,000			600,000
Real estate leasing and development | Lease Agreements
Related Party Transaction [Line Items]
Revenue from related parties	0	1,200,000	1,300,000	3,500,000
Receivables from related parties	0		0			100,000
Land Operations | Service revenues and Interest
Related Party Transaction [Line Items]
Revenue from related parties	1,100,000	$ 100,000	1,700,000	$ 100,000
Receivables from related parties	100,000		100,000			100,000
Land Operations | Extension of Secured Note Receivable
Related Party Transaction [Line Items]
Term of construction loan					5 years
Receivable from affiliate	$ 13,100,000		$ 13,100,000			$ 13,500,000

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Share-Based Payment Awards - Summary of Non-vested Restricted Stock Unit Activity (Details) - Time-based and market-based restricted stock units - 2012 Plan	9 Months Ended
	Sep. 30, 2019 $ / shares shares
2012 Plan Restricted Stock Units
Outstanding, beginning balance (in shares) | shares	421,300
Granted (in shares) | shares	264,000.0
Vested (in shares) | shares	(149,500)
Canceled (in shares) | shares	(78,800)
Outstanding, ending balance (in shares) | shares	457,000.0
Weighted- Average Grant-date Fair Value
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 25.91
Granted (in dollars per share) | $ / shares	20.05
Vested (in dollars per share) | $ / shares	23.72
Canceled (in dollars per share) | $ / shares	22.07
Outstanding, ending balance (in dollars per share) | $ / shares	$ 23.90

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Accumulated Other Comprehensive Income (Loss) - Reclassification of Other Comprehensive Income (Loss) Components (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Unrealized interest rate hedging gain (loss)	$ (2.0)	$ 0.6	$ (5.5)	$ 3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2	0.0	(0.1)	0.0
Actuarial loss	0.9	1.1	2.9	3.3
Prior service credit	(0.1)	(0.2)	(0.4)	(0.5)
Curtailment (gain)/loss	0.0	0.0	0.0	(0.4)
Total before income tax	(1.0)	1.5	(3.1)	5.4
Income taxes	0.0	(0.4)	0.0	(1.4)
Other comprehensive income (loss), net of tax	$ (1.0)	$ 1.1	$ (3.1)	$ 4.0

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Leases - Lessor Lease Cost and Lease Income (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Leased property - real estate			$ 1,263.0
Less: Accumulated depreciation			(104.4)
Property under operating leases, net			$ 1,158.6
Lease payments	$ 54.0	$ 80.4
Variable lease payments	2.5	3.6
Total	56.5	84.0
Leased property
Property, Plant and Equipment [Line Items]
Leased property - real estate	1,501.2	1,501.2
Less: Accumulated depreciation	(115.2)	(115.2)
Property, net	$ 1,386.0	$ 1,386.0

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Goodwill Impairment - Narrative (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) reporting_unit	Dec. 31, 2018 USD ($) reporting_unit
Goodwill [Line Items]
Goodwill | $	$ 15.4	$ 65.1
Number of reporting units | reporting_unit		3
Materials & Construction
Goodwill [Line Items]
Goodwill | $	$ 6.7	$ 56.4
Number of reporting units | reporting_unit	3
Discounted Cash Flow | Weighted-average Discount Rate
Goodwill [Line Items]
Weighted average discount rate (percent)	12.70%

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2019 and 2018 are shown below (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Service cost	$	0.7		$	0.5		$	1.8		$	1.6
Interest cost	2.1			2.0			6.3			6.0
Expected return on plan assets	(1.8		)	(2.1		)	(5.4		)	(6.2		)
Amortization of net loss	0.9			1.1			2.9			3.3
Amortization of prior service credit	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss	—			—			—			(0.4		)
Net periodic benefit cost	$	1.8		$	1.3		$	5.2		$	3.8

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of the Company's cash and cash equivalents, accounts receivable, and notes receivable with remaining terms less than 12 months approximate their carrying values due to the short-term nature of the instruments. The fair value of the Company's notes receivable with remaining terms greater than 12 months is estimated using a discounted cash flow analysis in which the Company uses unobservable inputs such as market interest rates determined by the loan to value and market capitalization rates related to the underlying collateral at which management believes similar loans would be made and classified as Level 3 in the fair value hierarchy. The fair value of these notes approximates the carrying amount of $15.7 million at September 30, 2019. The fair value and carrying value of these notes was $16.3 million at December 31, 2018.

The carrying amount and fair value of the Company's debt at September 30, 2019 was $732.4 million and $753.8 million, respectively, and $778.1 million and $758.0 million at December 31, 2018, respectively. The fair value of 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).

The Company carries its interest rate swaps at fair value. See Note 15 for fair value information regarding the Company's derivative instruments.

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Swap

As of September 30, 2019, the Company has one interest rate swap that has not been designated as a cash flow hedge whose key terms are as follows (dollars in millions):

Effective	Maturity	Fixed Interest	Notional Amount at		Fair Value at						Classification on
Date	Date	Rate	September 30, 2019		September 30, 2019			December 31, 2018			Balance Sheet
1/1/2014	9/1/2021	5.95%	$	10.3	$	(0.6	)	$	(0.5	)	Accrued and other liabilities

As of September 30, 2019, the Company has one interest rate swap agreement designated as a cash flow hedge whose key terms are as follows (dollars in millions):

Effective	Maturity	Fixed Interest	Notional Amount at		Fair Value at
Date	Date	Rate	September 30, 2019		September 30, 2019			December 31, 2018
4/7/2016	8/1/2029	3.14%	$	60.0	$	(1.7	)	$	3.9

Schedule of Derivative Instruments in Consolidated Statements of Operations

The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statement of comprehensive income (loss) (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Derivatives in Designated Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in OCI on derivatives	$	(2.0	)	$	0.6	$	(5.5	)	$	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	$	0.2		$	—	$	(0.1	)	$	—

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Earnings Per Share (“EPS”) (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of Reconciliation of Income and Computation of Earnings per Share

The following table provides a reconciliation of income (loss) from continuing operations to income (loss) from continuing operations available to A&B shareholders and net income (loss) available to A&B shareholders (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Income (loss) from Continuing Operations	$	(50.8	)	$	15.8		$	(42.6	)	$	66.2
Less: (Income) loss attributable to noncontrolling interest	1.1			(0.8		)	1.8			(1.4		)
Income (loss) from continuing operations attributable to A&B shareholders	(49.7		)	15.0			(40.8		)	64.8
Income (loss) from discontinued operations available to A&B shareholders, net of income taxes	(0.1		)	(0.2		)	(0.8		)	(0.2		)
Net income (loss) available to A&B shareholders	$	(49.8	)	$	14.8		$	(41.6	)	$	64.6

The number of shares used to compute basic and diluted earnings per share is as follows (in millions):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Denominator for basic EPS - weighted average shares outstanding	72.3	72.0	72.2	70.2
Effect of dilutive securities:
Non-participating stock options and restricted stock unit awards	—	0.4	—	0.4
Special Distribution	—	—	—	1.8
Denominator for diluted EPS - weighted average shares outstanding	72.3	72.4	72.2	72.4

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Real Estate Asset Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):

Fair value of assets acquired and liabilities assumed
Assets acquired:
Land	$	106.9
Property and improvements	91.3
In-place leases	23.2
Favorable leases	4.3
Total assets acquired	$	225.7
Liabilities assumed:
Unfavorable leases	$	7.3
Total liabilities assumed	7.3
Net assets acquired	$	218.4

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Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.19	$ 0.50	$ 11.65

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Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating Revenue:
Total operating revenue	$ 89.1	$ 119.4	$ 327.6	$ 344.8
Operating Costs and Expenses:
Selling, general and administrative	13.3	14.6	45.1	44.7
Goodwill impairment	49.7	0.0	49.7	0.0
Total operating costs and expenses	134.7	101.7	354.8	312.2
Gain (loss) on the sale of commercial real estate properties	0.0	0.0	0.0	49.8
Operating Income (Loss)	(45.6)	17.7	(27.2)	82.4
Other Income and (Expenses):
Income (loss) related to joint ventures	2.4	4.5	6.1	6.3
Interest and other income (expense), net (Note 2)	0.6	3.7	2.8	2.1
Interest expense	(8.2)	(9.1)	(25.4)	(26.4)
Income (Loss) from Continuing Operations Before Income Taxes	(50.8)	16.8	(43.7)	64.4
Income tax benefit (expense)	0.0	(1.0)	1.1	1.8
Income (Loss) from Continuing Operations	(50.8)	15.8	(42.6)	66.2
Income (loss) from discontinued operations, net of income taxes	(0.1)	(0.2)	(0.8)	(0.2)
Net Income (Loss)	(50.9)	15.6	(43.4)	66.0
Loss (income) attributable to noncontrolling interest	1.1	(0.8)	1.8	(1.4)
Net Income (Loss) Attributable to A&B Shareholders	$ (49.8)	$ 14.8	$ (41.6)	$ 64.6
Basic Earnings (Loss) Per Share of Common Stock:
Continuing operations available to A&B shareholders (in dollars per share)	$ (0.69)	$ 0.21	$ (0.57)	$ 0.92
Discontinued operations available to A&B shareholders (in dollars per share)	0	0	(0.01)	0
Net income (loss) available to A&B shareholders (in dollars per share)	(0.69)	0.21	(0.58)	0.92
Diluted Earnings (Loss) Per Share of Common Stock:
Continuing operations available to A&B shareholders (in dollars per share)	(0.69)	0.20	(0.57)	0.89
Discontinued operations available to A&B shareholders (in dollars per share)	0	0	(0.01)	0
Net income (loss) available to A&B shareholders (in dollars per share)	$ (0.69)	$ 0.20	$ (0.58)	$ 0.89
Weighted-Average Number of Shares Outstanding:
Basic (in shares)	72.3	72.0	72.2	70.2
Diluted (in shares)	72.3	72.4	72.2	72.4
Amounts Available to A&B Shareholders (Note 4):
Continuing operations available to A&B shareholders	$ (49.7)	$ 15.0	$ (40.8)	$ 64.8
Discontinued operations available to A&B shareholders	(0.1)	(0.2)	(0.8)	(0.2)
Net income (loss) available to A&B shareholders	(49.8)	14.8	(41.6)	64.6
Commercial Real Estate
Operating Revenue:
Commercial Real Estate	42.7	35.9	118.6	104.9
Operating Costs and Expenses:
Cost of Commercial Real Estate	23.8	19.2	64.3	57.0
Land Operations
Operating Revenue:
Revenues	8.5	24.0	82.4	72.6
Operating Costs and Expenses:
Operating costs	5.9	17.4	68.5	67.0
Materials & Construction
Operating Revenue:
Revenues	37.9	59.5	126.6	167.3
Operating Costs and Expenses:
Operating costs	$ 42.0	$ 50.5	$ 127.2	$ 143.5

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Revenue and Contract Balances

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue and Contract Balances

REVENUE AND CONTRACT BALANCES

The Company disaggregates revenue from contracts with customers by revenue type as the Company believes it best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues:
Commercial Real Estate	$	42.7	$	35.9	$	118.6	$	104.9
Land Operations:
Development sales revenue	0.8		9.0		31.2		42.8
Unimproved/other property sales revenue	1.5		9.1		32.4		11.5
Other operating revenue	6.2		5.9		18.8		18.3
Land Operations	8.5		24.0		82.4		72.6
Materials & Construction	37.9		59.5		126.6		167.3
Total revenues	$	89.1	$	119.4	$	327.6	$	344.8

The total amount of contract consideration allocated to either wholly unsatisfied or partially satisfied performance obligations was $86.6 million as of September 30, 2019. The Company expects to recognize as revenue approximately 30% - 35% of the remaining contract consideration allocated to either wholly unsatisfied or partially satisfied performance obligations in 2019, with the remaining recognized thereafter.

Certain construction contracts include retainage provisions that are included in Accounts receivable and retention, net in the condensed consolidated balance sheets. The balances billed but not paid by customers pursuant to these provisions generally become due upon completion and acceptance of the project work or products by the owners.

Costs and estimated earnings in excess of billings represent amounts earned and reimbursable under contracts but have a conditional right for billing and payment such as achievement of milestones or completion of the project. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Costs and estimated earnings in excess of billings are presented within Prepaid expenses and other assets in the condensed consolidated balance sheets.

Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. Billings in excess of costs and estimated earnings are presented within Accrued and other liabilities in the condensed consolidated balance sheets.

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:

(in millions)	September 30, 2019		January 1, 2019
Accounts receivable, net	$	58.2	$	49.6
Contracts retention	$	9.6	$	11.6
Costs and estimated earnings in excess of billings on uncompleted contracts	$	9.5	$	9.2
Billings in excess of costs and estimated earnings on uncompleted contracts	$	9.7	$	5.9
Variable consideration	$	62.0	$	62.0
Deferred revenue	$	6.4	$	1.2

For the nine months ended September 30, 2019, the Company recognized revenue of $4.6 million related to the Company's contract liabilities reported as of January 1, 2019.

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Notes Payable and Total Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Notes Payable and Total Debt

NOTES PAYABLE AND TOTAL DEBT

At September 30, 2019 and December 31, 2018, notes payable and total debt consisted of the following (in millions):

			Principal Outstanding
Debt	Interest Rate (%)	Maturity Date	September 30, 2019			December 31, 2018
Secured:
Kailua Town Center	(1)	2021	$	10.3		$	10.5
Kailua Town Center #2	3.15%	2021	4.7			4.7
Heavy equipment financing	(2)	2023	2.0			—
Laulani Village	3.93%	2024	62.0			62.0
Pearl Highlands	4.15%	2024	84.0			85.3
Manoa Marketplace	(3)	2029	59.8			60.0
Subtotal			$	222.8		$	222.5
Unsecured:
Term Loan 3	5.19%	2019	0.7			2.3
Term Loan 4	(4)	2019	—			9.4
Series D Note	6.90%	2020	16.2			32.5
Bank syndicated loan	(5)	2023	50.0			50.0
Series A Note	5.53%	2024	28.5			28.5
Series J Note	4.66%	2025	10.0			10.0
Series B Note	5.55%	2026	46.0			46.0
Series C Note	5.56%	2026	23.0			24.0
Series F Note	4.35%	2026	22.0			22.0
Series H Note	4.04%	2026	50.0			50.0
Series K Note	4.81%	2027	34.5			34.5
Series G Note	3.88%	2027	42.5			42.5
Series L Note	4.89%	2028	18.0			18.0
Series I Note	4.16%	2028	25.0			25.0
Term Loan 5	4.30%	2029	25.0			25.0
Subtotal			$	391.4		$	419.7
Revolving Credit Facilities:
GLP Asphalt revolving credit facility	(6)	2020	0.5			0.4
Revolving credit facility	(7)	2022	118.4			136.6
Subtotal			$	118.9		$	137.0
Total debt (contractual)			$	733.1		$	779.2
Unamortized debt premium (discount)			(0.1		)	(0.2		)
Unamortized debt issuance costs			(0.6		)	(0.9		)
Total debt (carrying value)			$	732.4		$	778.1

(1) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate.

(2) Loans have a stated rate ranging from 4.08% to 5.00%

(3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate.

(4) Loan has a stated interest rate of LIBOR plus 2.00%, and is secured by a letter of credit.

(5) Loan has a stated interest rate of LIBOR plus 1.60%, based on pricing grid.

(6) Loan has a stated interest rate of LIBOR plus 1.25%.

(7) Loan has a stated interest rate of LIBOR plus 1.65%, based on pricing grid.

The Company believes that funds generated from results of operations, available cash and cash equivalents, and available borrowings under credit facilities will be sufficient to satisfy any maturities of debt due in the next twelve months.

Interest costs are capitalized for certain development and redevelopment projects that have not yet been placed into service. Capitalization of interest commences when development activities and expenditures begin and end upon completion, which is when the asset is ready for its intended use. Capitalized interest costs related to development activities were $0.8 million for the nine months ended September 30, 2019. There were $0.4 million of capitalized interest costs for the nine months ended September 30, 2018.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Rounding

Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences.

Reclassifications

Unclassified Balance Sheet: During the first quarter of 2019, the Company changed the presentation of its balance sheet to be unclassified in order to be comparable with other REIT peers. The change was applied to all periods presented retrospectively.

Gain on Sale of Properties: In November 2018, the SEC finalized the Disclosure Update Simplification Project, which eliminated Rule 3-15(a)(1) reporting of Gain or Loss on Sale of Properties by REITs. To conform with Accounting Standards Codification ("ASC") 360 and the SEC rule change, the Company has classified the gain on dispositions of real estate assets in operating income in the Company's condensed consolidated statements of operations. The Company reclassified the prior period to conform to the current year presentation. This change resulted in an increase of $49.8 million in operating income during the nine months ended September 30, 2018.

Recently adopted accounting pronouncements/Recently issued accounts pronouncements

Recently adopted accounting pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and should be implemented using a modified retrospective approach, with the option to apply the guidance at the effective date or the beginning of the earliest comparative period. The Company adopted the guidance on January 1, 2019 and elected to use the effective date as the date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. Additionally, the Company elected the "package of practical expedients," which permits the Company to not reassess prior conclusions about lease identification, lease classification and initial direct costs.

The new guidance did not have a material impact on the accounting treatment of the Company's triple-net tenant leases, which are the primary source of our CRE revenues. However, starting in the current year there were certain changes to the guidance under ASC 842 which will have an impact on future operating results, including initial direct costs associated with the execution

of lease agreements such as legal fees and certain transaction costs will no longer be capitalizable and instead are expensed in the period incurred.

The Company recorded right-of-use ("ROU") assets and corresponding lease liabilities of approximately $31.0 million on the condensed consolidated balance sheet for certain leases in which it is the lessee. The adoption of ASC 842 had no impact on the Company's lease expense.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the guidance on January 1, 2019. The guidance amends the hedge accounting model in ASC 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments expand an entity's ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness and requires the earnings effect of the hedging instrument to be presented in the same income statement line as the hedged item. The adoption of this standard did not have an impact on the Company's financial position or results of operations.

In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the guidance on January 1, 2019. The guidance expands the scope of ASC 718 to include share-based payment transactions with the exception of specific guidance related to the attribution of compensation cost. The guidance also clarifies that any share-based payment awards granted in conjunction with selling goods or services to customers should be evaluated under ASC 606. The adoption of this standard did not have an impact on the Company's financial position or results of operations.

Recently issued accounting pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. The guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The FASB has subsequently issued other related ASUs, which amend ASU 2016-13 to provide clarification and additional guidance. The Company is currently assessing the impact that adopting this new accounting standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement. The guidance amends and removes several disclosure requirements including the valuation processes for Level 3 fair value measurements. This ASU also modifies some disclosure requirements and requires additional disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and requires the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance clarifies current disclosures and removes several disclosure requirements including accumulated other comprehensive income expected to be recognized over the next fiscal year and amount and timing of plan assets expected to be returned to the employer. This ASU also requires additional disclosures as well as explanations for significant gains and losses related to changes in the benefit plan obligation. This ASU is effective for fiscal years beginning after December 15, 2020. The Company is currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. This ASU is effective for fiscal years beginning after December 15, 2019 and the amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is

currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

Leases - Lessee

Lessee: The Company determines if an arrangement is a lease at inception by considering whether that arrangement conveys the right to use an identified asset for a period of time in exchange for consideration. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company's condensed consolidated balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has also elected, for all classes of underlying assets, to not recognize lease liabilities and lease assets for leases with a term of 12 months or less.

Leases - Lessor

Lessor: The Company reviews its contracts to determine if they qualify as a lease. A contract is determined to be a lease when the right to substantially all of the economic benefits and to direct the use of an identified asset is transferred to a customer over a defined period of time for consideration. During this review, the Company evaluates among other items, asset specification, substitution rights, purchase options, operating rights and control over the asset during the contract period.

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately under ASC 606, Revenue from Contracts with Customers. The Company has elected to not separate non-lease components from lease components for all classes of underlying assets where the component follows the same timing and pattern as the lease component. Non-lease components included in rental revenue primarily consist of tenant reimbursements for common area maintenance and other services paid for by the lessor and utilized by the lessee.

Rental revenue is primarily derived from operating leases and, therefore, is generally recognized on a straight-line basis over the term of the lease. Fixed contractual payments from the Company's leases are recognized on a straight-line basis over the terms of the respective leases. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Certain of the Company's lease agreements include terms for contingent rental revenue (e.g. percentage rents based on tenant sales volume) and tenant reimbursed property taxes, which are both accounted for as variable payments.

Certain of the Company's leases include termination and/or extension options. Termination options allow the customer to terminate the lease prior to the end of the lease term under specific circumstances. The Company's extension options generally require a re-negotiation with the customer at market rates. Initial direct costs, primarily commissions, related to the leasing of properties are capitalized on the balance sheet and amortized over the lease term. All other costs to negotiate or arrange a lease are expensed as incurred.

Accounts receivable related to leases are regularly evaluated for collectability, considering factors including, but not limited to, the credit quality of the customer, historical trends of the customer, and changes in customer payment terms. Upon determination that the collectability of a customer receivable is not probable, the Company will record an allowance for such receivable and a corresponding reduction to revenue previously recognized. Subsequent revenue is recorded on a cash basis until collectability on related billings becomes probable.

Changes in estimates on construction contracts

Changes in estimates on construction contracts

Revenue on the Company's long-term construction contracts are recognized using the percentage of completion, cost-to-cost, input method. Due to the nature of the work required to be performed, estimating total revenue and cost at completion of the contract is complex, subject to many variables and requires significant judgment. Such estimates of contract revenue and cost are dependent on a number of factors that may change during a contract performance period, resulting in changes to estimated contract profitability. These factors include, but are not limited to, the completeness and accuracy of the original bid; changes in the timing of scheduled work; change orders; unusual weather conditions; changes in costs of labor and/or materials; changes in productivity

expectations; and the expected, or actual, resolution terms for claims. Management evaluates changes in estimates on a contract by contract basis and uses the cumulative catch-up method to account for the changes in the period in which they are determined.

Discontinued Operations

Discontinued operations

In December 2016, the Company completed its final sugar harvest and ceased its sugar operations. Costs related to the cessation of sugar operations are presented as discontinued operations in the condensed consolidated statements of operations. Liabilities related to the cessation of sugar operations are presented within Accrued and other liabilities in the condensed consolidated balance sheets.

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Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term notes receivable	$ 15.7	$ 16.3
Company's debt	732.4	778.1
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term notes receivable	15.7	16.3
Company's debt	$ 753.8	$ 758.0

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Revenue and Contract Balances (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers by revenue type as the Company believes it best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues:
Commercial Real Estate	$	42.7	$	35.9	$	118.6	$	104.9
Land Operations:
Development sales revenue	0.8		9.0		31.2		42.8
Unimproved/other property sales revenue	1.5		9.1		32.4		11.5
Other operating revenue	6.2		5.9		18.8		18.3
Land Operations	8.5		24.0		82.4		72.6
Materials & Construction	37.9		59.5		126.6		167.3
Total revenues	$	89.1	$	119.4	$	327.6	$	344.8

Schedule of Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:

(in millions)	September 30, 2019		January 1, 2019
Accounts receivable, net	$	58.2	$	49.6
Contracts retention	$	9.6	$	11.6
Costs and estimated earnings in excess of billings on uncompleted contracts	$	9.5	$	9.2
Billings in excess of costs and estimated earnings on uncompleted contracts	$	9.7	$	5.9
Variable consideration	$	62.0	$	62.0
Deferred revenue	$	6.4	$	1.2

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Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Increase to operating income	$ (45.6)	$ 17.7	$ (27.2)	$ 82.4
Operating lease liabilities	23.0		23.0
Operating lease right-of-use assets	22.7		22.7
Interest income			2.9
Pension and postretirement benefit expense			3.4	2.2
Discontinued operations available to A&B shareholders	$ 0.1	$ 0.2	0.8	0.2
ASU 2018-17
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Increase to operating income				$ 49.8
ASU 2016-02
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Operating lease liabilities					$ 31.0
Operating lease right-of-use assets					$ 31.0
Ka Milo
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net gain on the sale of the Company's joint venture			$ 4.2

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Revenue and Contract Balances - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 86.6
Revenue recognized related to contract liabilities	$ 4.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation satisfaction period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation satisfaction period
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining obligation expected to be satisfied (percent)	30.00%
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining obligation expected to be satisfied (percent)	35.00%

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Derivative Instruments - Non-designated Hedges Interest Rate Swaps (Details) - Not Designated as Hedging Instrument - Interest Rate Swap $ in Millions	Sep. 30, 2019 USD ($) interest_rate_swap	Dec. 31, 2018 USD ($)
Derivative [Line Items]
Number of interest rate swap agreements | interest_rate_swap	1
Other Non-Current Liabilities
Derivative [Line Items]
Fixed Interest Rate (percent)	5.95%
Notional Amount	$ 10.3
Fair value of interest rate swap liability	$ (0.6)	$ (0.5)

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Cover Page	9 Months Ended
	Sep. 30, 2019 shares
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-35492
Entity Registrant Information	ALEXANDER & BALDWIN, INC.
Entity Incorporation, State or Country Code	HI
Entity Tax Identification Number	45-4849780
Entity Address, Address Line One	P. O. Box 3440,
Entity Address, City or Town	Honolulu,
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96801
City Area Code	808
Local Phone Number	525-6611
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	ALEX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)	72,258,124
Entity Central Index Key	0001545654
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ (50.9)	$ 15.6	$ (43.4)	$ 66.0
Other Comprehensive Income (Loss), net of tax:
Unrealized interest rate hedging gain (loss)	(2.0)	0.6	(5.5)	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2	0.0	(0.1)	0.0
Defined benefit pension plans:
Amortization of net loss included in net periodic pension cost	0.9	1.1	2.9	3.3
Amortization of prior service credit included in net periodic pension cost	(0.1)	(0.2)	(0.4)	(0.5)
Curtailment (gain)/loss	0.0	0.0	0.0	(0.4)
Income taxes related to other comprehensive income (loss)	0.0	(0.4)	0.0	(1.4)
Other comprehensive income (loss), net of tax	(1.0)	1.1	(3.1)	4.0
Comprehensive Income (Loss)	(51.9)	16.7	(46.5)	70.0
Comprehensive (income) loss attributable to noncontrolling interest	1.1	(0.8)	1.8	(1.4)
Comprehensive Income (Loss) Attributable to A&B Shareholders	$ (50.8)	$ 15.9	$ (44.7)	$ 68.6

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Description of Business

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

DESCRIPTION OF BUSINESS

Alexander & Baldwin, Inc. ("A&B" or the "Company") is a real estate investment trust ("REIT") headquartered in Honolulu, Hawai‘i. The Company operates three segments: Commercial Real Estate ("CRE"); Land Operations; and Materials & Construction ("M&C").  As of September 30, 2019, the Company's CRE improved real estate consisted of twenty-two retail centers, ten industrial assets and four office properties in Hawai‘i, representing a total of 3.9 million square feet of gross leasable area. The Company also owns a portfolio of ground leases in Hawai‘i that comprised 154 acres as of September 30, 2019.

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Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On October 22, 2019, the Company's Board of Directors declared a cash dividend of $0.19 per share of outstanding common stock, payable on December 5, 2019 to shareholders of record as of the close of business on November 12, 2019.

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Segment Results

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Results

SEGMENT RESULTS

Operating segment information for the three and nine months ended September 30, 2019 and 2018 is summarized below (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Operating Revenue:
Commercial Real Estate	$	42.7		$	35.9		$	118.6		$	104.9
Land Operations	8.5			24.0			82.4			72.6
Materials & Construction	37.9			59.5			126.6			167.3
Total operating revenue	89.1			119.4			327.6			344.8
Operating Profit (Loss):
Commercial Real Estate1	18.0			15.9			50.6			45.0
Land Operations2	2.8			13.1			15.9			9.3
Materials & Construction	(57.9		)	3.4			(66.7		)	7.2
Total operating profit (loss)	(37.1		)	32.4			(0.2		)	61.5
Gain (loss) on the sale of commercial real estate properties	—			—			—			49.8
Interest expense	(8.2		)	(9.1		)	(25.4		)	(26.4		)
General corporate expenses	(5.5		)	(6.5		)	(18.1		)	(20.5		)
Income (Loss) from Continuing Operations Before Income Taxes	$	(50.8	)	$	16.8		$	(43.7	)	$	64.4

¹ Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the condensed consolidated results of operations.

² Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various real estate joint ventures and non-cash reductions related to the Company's solar tax equity investments.

Segment balance sheet information as of September 30, 2019 and December 31, 2018 is summarized below (in millions):

	September 30, 2019		December 31, 2018
Identifiable Assets:
Commercial Real Estate	$	1,539.2	$	1,530.4
Land Operations	300.9		350.0
Materials & Construction	259.0		297.1
Other	22.6		47.7
Total assets	$	2,121.7	$	2,225.2

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Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company has been organized and operates in a manner that enables it to qualify, and believes it will continue to qualify, as a REIT for federal income tax purposes. The Company’s effective tax rate for the three and nine months ended September 30, 2019 differed from the effective tax rate for the same periods in 2018, primarily due to the full valuation allowance recorded on the net deferred tax assets at the end of 2018.

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Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Lease Expenses and Supplemental Information

Lease expense for operating leases that provide for future escalations are accounted for on a straight-line basis. For the three and nine months ended September 30, 2019, lease expense under operating and finance leases was as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Operating lease cost	$	1.9	$	5.2
Finance lease cost:
Amortization of right-of-use assets	0.2		0.4
Interest on lease liabilities	0.1		0.1
Total lease cost	$	2.2	$	5.7

Supplemental cash flow information related to operating and finance leases for the nine months ended September 30, 2019 was as follows (in millions):

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4.4
Operating cash outflows from financing leases	$	0.1
Financing cash flows from finance leases	$	0.4

Supplemental Balance Sheet information Related to Operating and Finance Leases

Supplemental balance sheet information related to operating and finance leases as of September 30, 2019 was as follows:

Weighted-average remaining lease term (years) - operating leases	9.3
Weighted-average remaining lease term (years) - finance leases	2.7
Weighted-average discount rate - operating leases	4.4	%
Weighted-average discount rate - finance leases	4.5	%

Future Lease Payments Under Non-cancelable Operating and Finance Leases

Future lease payments under non-cancelable operating and finance leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
	Operating Leases			Finance Leases
2019	$	1.3		$	0.2
2020	5.2			0.8
2021	5.1			0.7
2022	5.0			0.3
2023	3.9			0.1
2024	2.2			—
Thereafter	8.4			—
Total lease payments	$	31.1		$	2.1
Less: Interest	(8.1		)	(0.1		)
Total lease liabilities	$	23.0		$	2.0

Schedule of Lessee Future Payments Under Non-cancelable Operating Leases

Future lease payments under non-cancelable operating and finance leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
	Operating Leases			Finance Leases
2019	$	1.3		$	0.2
2020	5.2			0.8
2021	5.1			0.7
2022	5.0			0.3
2023	3.9			0.1
2024	2.2			—
Thereafter	8.4			—
Total lease payments	$	31.1		$	2.1
Less: Interest	(8.1		)	(0.1		)
Total lease liabilities	$	23.0		$	2.0

Schedule of Future Minimum Payments under Non-cancelable Operating Leases

Future lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	5.5
2020	5.4
2021	5.3
2022	5.3
2023	4.5
Thereafter	13.9
	$	39.9

Future lease payments to be received on non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	97.6
2020	96.2
2021	78.2
2022	69.3
2023	59.9
Thereafter	407.8
	$	809.0

Schedule of Historical Cost, and Accumulated Depreciation on Leased Property

The historical cost of, and accumulated depreciation on, leased property as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019			December 31, 2018
Leased property - real estate	$	1,501.2		$	1,263.0
Less: Accumulated depreciation	(115.2		)	(104.4		)
Property under operating leases, net	$	1,386.0		$	1,158.6

Schedule of Rental Income Under Non-cancelable Operating Leases

Total rental income under these operating leases were as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Lease payments	$	54.0	$	80.4
Variable lease payments	2.5		3.6
Total	$	56.5	$	84.0

Schedule of Lessor Future Rentals on Non-cancelable Operating Leases

Future lease payments to be received on non-cancelable operating leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
2019	$	32.3
2020	115.0
2021	102.1
2022	90.0
2023	79.9
2024	68.0
Thereafter	485.6
Total lease receivables	$	972.9

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Commitments and Contingencies - Narrative (Details) $ in Millions				1 Months Ended
	Feb. 01, 2019	Jan. 07, 2019 gal	Apr. 10, 2015 plaintiff	May 31, 2016	Dec. 31, 2015 plaintiff	Oct. 11, 2019 License	Sep. 30, 2019 USD ($) joint_venture	Dec. 31, 2018 a License	Dec. 31, 1986 License
Loss Contingencies [Line Items]
Number of water licenses held and extended as revocable permits | License								4	4
Interest held in EMI (percent)	50.00%
Maui
Loss Contingencies [Line Items]
Area of land sold (acres) | a								41,000
Bid, Performance and Payment Bonds and Commercial Bonds
Loss Contingencies [Line Items]
Possible administrative penalty							$ 440.8
Estimated remaining exposure							79.8
Performance Bond
Loss Contingencies [Line Items]
Possible administrative penalty							$ 421.7
Long Term Water Lease Request
Loss Contingencies [Line Items]
Number of parties filed lawsuit | plaintiff			3		3
Duration of revocable permits for disposition of water rights				3 years
Sierra Club Lawsuit Against BLNR, A&B, and EMI
Loss Contingencies [Line Items]
Number of gallons per day sought to be enjoined (gallons) | gal		25,000,000
Financial Guarantee
Loss Contingencies [Line Items]
Number of joint ventures | joint_venture							1
Guarantor obligations, current carrying value							$ 3.1
East Maui Irrigation Company, LLC (EMI) | East Maui
Loss Contingencies [Line Items]
Watershed lands owned (in acres) | a								16,000
State of Hawai'i | East Maui
Loss Contingencies [Line Items]
Additional watershed lands accessible by licenses (in acres) | a								30,000
Letters of Credit
Loss Contingencies [Line Items]
Standby letters of credit outstanding							$ 1.7
Subsequent Event | East Maui
Loss Contingencies [Line Items]
Number of water licenses held and extended as revocable permits | License						4

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Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Inventory [Line Items]
Inventories	$ 23.9	$ 26.5
Asphalt
Inventory [Line Items]
Inventories	9.7	9.4
Processed rock and sand
Inventory [Line Items]
Inventories	7.5	9.5
Work in progress
Inventory [Line Items]
Inventories	3.2	4.0
Retail merchandise
Inventory [Line Items]
Inventories	2.1	2.0
Parts, materials and supplies inventories
Inventory [Line Items]
Inventories	$ 1.4	$ 1.6

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Revenue and Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total operating revenue	$ 89.1	$ 119.4	$ 327.6	$ 344.8
Development sales revenue
Disaggregation of Revenue [Line Items]
Revenues	0.8	9.0	31.2	42.8
Unimproved/other property sales revenue
Disaggregation of Revenue [Line Items]
Revenues	1.5	9.1	32.4	11.5
Other operating revenue
Disaggregation of Revenue [Line Items]
Revenues	6.2	5.9	18.8	18.3
Commercial Real Estate
Disaggregation of Revenue [Line Items]
Commercial Real Estate	42.7	35.9	118.6	104.9
Land Operations
Disaggregation of Revenue [Line Items]
Revenues	8.5	24.0	82.4	72.6
Materials & Construction
Disaggregation of Revenue [Line Items]
Revenues	$ 37.9	$ 59.5	$ 126.6	$ 167.3

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Derivative Instruments - Cash Flow Hedges of Interest Rate Swaps (Details) - Interest Rate Swap - Designated as Hedging Instrument $ in Millions	Sep. 30, 2019 USD ($) interest_rate_swap	Dec. 31, 2018 USD ($)
Derivative [Line Items]
Number of interest rate swap agreements | interest_rate_swap	1
Other Assets | Cash Flow Hedging
Derivative [Line Items]
Fixed Interest Rate (percent)	3.14%
Notional Amount	$ 60.0
Fair value of interest rate swap liability	$ (1.7)
Interest rate derivative, at fair value		$ 3.9

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Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Total Equity
Beginning balance	$ 1,208.3
Ending balance	1,128.4
Other comprehensive loss before reclassifications, tax	0.0
Accumulated Other Compre- hensive Income (Loss)
Total Equity
Beginning balance	(51.9)
Ending balance	(55.0)
Employee Benefit Plans
Total Equity
Beginning balance	(55.2)
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0	2.5
Ending balance	(52.7)
Amounts reclassified from accumulated other comprehensive loss, tax	0.0
Interest Rate Swap
Total Equity
Beginning balance	3.3
Other comprehensive income (loss) before reclassifications, net of taxes of $0 for interest rate swap	(5.5)
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0	(0.1)
Ending balance	(2.3)
Amounts reclassified from accumulated other comprehensive loss, tax	$ 0.0

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Share-Based Payment Awards - Summary of Compensation Cost related to Share-based Payments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total recognized tax benefit	$ 0.0	$ (0.1)	$ 0.0	$ (0.4)
Share-based expense (net of tax)	1.4	1.2	4.1	3.6
Time-based and market-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Time-based and market-based restricted stock units	$ 1.4	$ 1.3	$ 4.1	$ 4.0

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Share-Based Payment Awards - Schedule of Stock Option Activity (Details) - Stock Options - 2012 Plan $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
2012 Plan Stock Options
Outstanding, beginning balance (in shares) | shares	580,100
Exercised (in shares) | shares	(225,800)
Canceled (in shares) | shares	(2,000.0)
Outstanding, ending balance (in shares) | shares	352,300
Vested or expected to vest (in shares) | shares	352,300
Exercisable (in shares) | shares	352,300
Weighted- Average Exercise Price
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 12.91
Exercised (in dollars per share) | $ / shares	11.29
Canceled (in dollars per share) | $ / shares	13.11
Outstanding, ending balance (in dollars per share) | $ / shares	13.95
Vested or expected to vest (in dollars per share) | $ / shares	13.95
Exercisable (in dollars per share) | $ / shares	$ 13.95
Weighted- average contractual life
Outstanding	1 year 9 months 18 days
Vested or expected to vest	1 year 9 months 18 days
Exercisable	1 year 9 months 18 days
Aggregate intrinsic value
Outstanding | $	$ 3,756
Vested or expected to vest | $	3,756
Exercisable | $	$ 3,756

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Leases - Future Minimum Rentals on Non-cancelable Operating Leases as Lessor (Details) $ in Millions	Sep. 30, 2019 USD ($)
Future minimum rentals on non-cancelable leases
2019	$ 32.3
2020	115.0
2021	102.1
2022	90.0
2023	79.9
2024	68.0
Thereafter	485.6
Total lease receivables	$ 972.9

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Goodwill Impairment - Changes in the carrying amount of goodwill (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill [Roll Forward]
Balance, January 1, 2019			$ 65.1
Goodwill Impairment	$ (49.7)	$ 0.0	(49.7)	$ 0.0
Balance, September 30, 2019	15.4		15.4
Materials & Construction
Goodwill [Roll Forward]
Balance, January 1, 2019			56.4
Goodwill Impairment			(49.7)
Balance, September 30, 2019	6.7		6.7
Commercial Real Estate
Goodwill [Roll Forward]
Balance, January 1, 2019			8.7
Goodwill Impairment			0.0
Balance, September 30, 2019	$ 8.7		$ 8.7

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Related Party Transactions

9 Months Ended

Sep. 30, 2019

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 were $2.8 million and $4.5 million for the three months ended September 30, 2019 and 2018, respectively. Revenues earned from transactions with affiliates were $9.6 million and $10.8 million for the nine months ended September 30, 2019 and 2018, respectively. Receivables from these affiliates were $1.5 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively. Amounts due to these affiliates were $0.7 million and $0.6 million as of September 30, 2019 and December 31, 2018.

Commercial Real Estate. The Company entered into contracts in the ordinary course of business, as a lessor of property, with certain affiliates that are partially owned by a former director of the Company. There was no recorded revenue earned from transactions with affiliates for the three months ended September 30, 2019. For the three months ended September 30, 2018, revenues earned from transactions with affiliates were $1.2 million. Revenues earned from transactions with affiliates were $1.3 million and $3.5 million for the nine months ended September 30, 2019 and 2018, respectively. There were no receivables from these affiliates as of September 30, 2019 and less than $0.1 million as of December 31, 2018.

Land Operations. During the three months ended September 30, 2019 and 2018, the Company recognized $1.1 million and less than $0.1 million, respectively, related to revenue for services provided to certain unconsolidated investments in affiliates and interest earned on notes receivables from related parties. Service revenues and interest recorded during the nine months ended September 30, 2019 and 2018 were $1.7 million and $0.1 million, respectively. Receivables from these affiliates were less than $0.1 million as of September 30, 2019 and December 31, 2018.

During the year ended December 31, 2017, the Company extended a five-year construction loan secured by a mortgage on real property to one of its joint ventures. Receivables from this affiliate were $13.1 million and $13.5 million as of September 30, 2019 and December 31, 2018, respectively.

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Earnings Per Share (“EPS”)

9 Months Ended

Sep. 30, 2019

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 as well as adjusted by the number of additional shares, if any, that would have been outstanding had the potentially dilutive common shares been issued.

The following table provides a reconciliation of income (loss) from continuing operations to income (loss) from continuing operations available to A&B shareholders and net income (loss) available to A&B shareholders (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Income (loss) from Continuing Operations	$	(50.8	)	$	15.8		$	(42.6	)	$	66.2
Less: (Income) loss attributable to noncontrolling interest	1.1			(0.8		)	1.8			(1.4		)
Income (loss) from continuing operations attributable to A&B shareholders	(49.7		)	15.0			(40.8		)	64.8
Income (loss) from discontinued operations available to A&B shareholders, net of income taxes	(0.1		)	(0.2		)	(0.8		)	(0.2		)
Net income (loss) available to A&B shareholders	$	(49.8	)	$	14.8		$	(41.6	)	$	64.6

The number of shares used to compute basic and diluted earnings per share is as follows (in millions):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Denominator for basic EPS - weighted average shares outstanding	72.3	72.0	72.2	70.2
Effect of dilutive securities:
Non-participating stock options and restricted stock unit awards	—	0.4	—	0.4
Special Distribution	—	—	—	1.8
Denominator for diluted EPS - weighted average shares outstanding	72.3	72.4	72.2	72.4

There were 0.4 million shares of anti-dilutive securities outstanding during the three and nine months ended September 30, 2019. There were 0.1 million shares of anti-dilutive securities outstanding during the three and nine months ended September 30, 2018.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories are stated at the lower of cost (principally first-in, first-out basis) or net realizable value. Inventories as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019		December 31, 2018
Asphalt	$	9.7	$	9.4
Processed rock and sand	7.5		9.5
Work in progress	3.2		4.0
Retail merchandise	2.1		2.0
Parts, materials and supplies inventories	1.4		1.6
Total	$	23.9	$	26.5

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2019 were as follows (in millions):

	Employee Benefit Plans			Interest Rate Swap			Total
Balance, January 1, 2019	$	(55.2	)	$	3.3		$	(51.9	)
Other comprehensive income (loss) before reclassifications, net of taxes of $0 for interest rate swap	—			(5.5		)	(5.5		)
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0 for employee benefit plans	2.5			—			2.5
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0 for interest rate swap	—			(0.1		)	(0.1		)
Balance, September 30, 2019	$	(52.7	)	$	(2.3	)	$	(55.0	)

Summary of Reclassifications of Other Comprehensive Income (Loss)

The details of the changes in accumulated other comprehensive income (loss), including reclassifications out of accumulated other comprehensive income (loss), by component for the three and nine months ended September 30, 2019 and 2018, respectively, were as follows (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Unrealized interest rate hedging gain (loss)	$	(2.0	)	$	0.6		$	(5.5	)	$	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2			—			(0.1		)	—
Amortization of defined benefit pension items reclassified to net periodic pension cost:
Actuarial loss1	0.9			1.1			2.9			3.3
Prior service credit1	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss1	—			—			—			(0.4		)
Total before income tax	(1.0		)	1.5			(3.1		)	5.4
Income taxes	—			(0.4		)	—			(1.4		)
Other comprehensive income (loss), net of tax	$	(1.0	)	$	1.1		$	(3.1	)	$	4.0

¹ This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (see Note 9 for additional details).

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Segment Results (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Operating Segment Information

Operating segment information for the three and nine months ended September 30, 2019 and 2018 is summarized below (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Operating Revenue:
Commercial Real Estate	$	42.7		$	35.9		$	118.6		$	104.9
Land Operations	8.5			24.0			82.4			72.6
Materials & Construction	37.9			59.5			126.6			167.3
Total operating revenue	89.1			119.4			327.6			344.8
Operating Profit (Loss):
Commercial Real Estate1	18.0			15.9			50.6			45.0
Land Operations2	2.8			13.1			15.9			9.3
Materials & Construction	(57.9		)	3.4			(66.7		)	7.2
Total operating profit (loss)	(37.1		)	32.4			(0.2		)	61.5
Gain (loss) on the sale of commercial real estate properties	—			—			—			49.8
Interest expense	(8.2		)	(9.1		)	(25.4		)	(26.4		)
General corporate expenses	(5.5		)	(6.5		)	(18.1		)	(20.5		)
Income (Loss) from Continuing Operations Before Income Taxes	$	(50.8	)	$	16.8		$	(43.7	)	$	64.4

¹ Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the condensed consolidated results of operations.

² Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various real estate joint ventures and non-cash reductions related to the Company's solar tax equity investments.

Segment balance sheet information as of September 30, 2019 and December 31, 2018 is summarized below (in millions):

	September 30, 2019		December 31, 2018
Identifiable Assets:
Commercial Real Estate	$	1,539.2	$	1,530.4
Land Operations	300.9		350.0
Materials & Construction	259.0		297.1
Other	22.6		47.7
Total assets	$	2,121.7	$	2,225.2

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Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

LEASES

The Company as Lessee: Principal non-cancelable operating leases include land, office space, harbors and equipment leased for periods that expire through 2031. Management expects that in the normal course of business, most operating leases will be renewed or replaced by other similar leases. The Company has equipment under finance leases with periods that expire through

2023. ROU assets and lease liabilities related to these finance leases are presented within Other property, net and Notes payable and other debt, respectively, in the condensed consolidated balance sheets.

Lease expense for operating leases that provide for future escalations are accounted for on a straight-line basis. For the three and nine months ended September 30, 2019, lease expense under operating and finance leases was as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Operating lease cost	$	1.9	$	5.2
Finance lease cost:
Amortization of right-of-use assets	0.2		0.4
Interest on lease liabilities	0.1		0.1
Total lease cost	$	2.2	$	5.7

Supplemental balance sheet information related to operating and finance leases as of September 30, 2019 was as follows:

Weighted-average remaining lease term (years) - operating leases	9.3
Weighted-average remaining lease term (years) - finance leases	2.7
Weighted-average discount rate - operating leases	4.4	%
Weighted-average discount rate - finance leases	4.5	%

Supplemental cash flow information related to operating and finance leases for the nine months ended September 30, 2019 was as follows (in millions):

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4.4
Operating cash outflows from financing leases	$	0.1
Financing cash flows from finance leases	$	0.4

Future lease payments under non-cancelable operating and finance leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
	Operating Leases			Finance Leases
2019	$	1.3		$	0.2
2020	5.2			0.8
2021	5.1			0.7
2022	5.0			0.3
2023	3.9			0.1
2024	2.2			—
Thereafter	8.4			—
Total lease payments	$	31.1		$	2.1
Less: Interest	(8.1		)	(0.1		)
Total lease liabilities	$	23.0		$	2.0

Future lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	5.5
2020	5.4
2021	5.3
2022	5.3
2023	4.5
Thereafter	13.9
	$	39.9

The Company as Lessor: The Company leases land and buildings to third parties under operating leases. The historical cost of, and accumulated depreciation on, leased property as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019			December 31, 2018
Leased property - real estate	$	1,501.2		$	1,263.0
Less: Accumulated depreciation	(115.2		)	(104.4		)
Property under operating leases, net	$	1,386.0		$	1,158.6

Total rental income under these operating leases were as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Lease payments	$	54.0	$	80.4
Variable lease payments	2.5		3.6
Total	$	56.5	$	84.0

Future lease payments to be received on non-cancelable operating leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
2019	$	32.3
2020	115.0
2021	102.1
2022	90.0
2023	79.9
2024	68.0
Thereafter	485.6
Total lease receivables	$	972.9

Future lease payments to be received on non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	97.6
2020	96.2
2021	78.2
2022	69.3
2023	59.9
Thereafter	407.8
	$	809.0

The Company's leases have remaining lease terms of 1 year to 45 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year.

Leases

LEASES

The Company as Lessee: Principal non-cancelable operating leases include land, office space, harbors and equipment leased for periods that expire through 2031. Management expects that in the normal course of business, most operating leases will be renewed or replaced by other similar leases. The Company has equipment under finance leases with periods that expire through

2023. ROU assets and lease liabilities related to these finance leases are presented within Other property, net and Notes payable and other debt, respectively, in the condensed consolidated balance sheets.

Lease expense for operating leases that provide for future escalations are accounted for on a straight-line basis. For the three and nine months ended September 30, 2019, lease expense under operating and finance leases was as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Operating lease cost	$	1.9	$	5.2
Finance lease cost:
Amortization of right-of-use assets	0.2		0.4
Interest on lease liabilities	0.1		0.1
Total lease cost	$	2.2	$	5.7

Supplemental balance sheet information related to operating and finance leases as of September 30, 2019 was as follows:

Weighted-average remaining lease term (years) - operating leases	9.3
Weighted-average remaining lease term (years) - finance leases	2.7
Weighted-average discount rate - operating leases	4.4	%
Weighted-average discount rate - finance leases	4.5	%

Supplemental cash flow information related to operating and finance leases for the nine months ended September 30, 2019 was as follows (in millions):

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4.4
Operating cash outflows from financing leases	$	0.1
Financing cash flows from finance leases	$	0.4

Future lease payments under non-cancelable operating and finance leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
	Operating Leases			Finance Leases
2019	$	1.3		$	0.2
2020	5.2			0.8
2021	5.1			0.7
2022	5.0			0.3
2023	3.9			0.1
2024	2.2			—
Thereafter	8.4			—
Total lease payments	$	31.1		$	2.1
Less: Interest	(8.1		)	(0.1		)
Total lease liabilities	$	23.0		$	2.0

Future lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	5.5
2020	5.4
2021	5.3
2022	5.3
2023	4.5
Thereafter	13.9
	$	39.9

The Company as Lessor: The Company leases land and buildings to third parties under operating leases. The historical cost of, and accumulated depreciation on, leased property as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019			December 31, 2018
Leased property - real estate	$	1,501.2		$	1,263.0
Less: Accumulated depreciation	(115.2		)	(104.4		)
Property under operating leases, net	$	1,386.0		$	1,158.6

Total rental income under these operating leases were as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Lease payments	$	54.0	$	80.4
Variable lease payments	2.5		3.6
Total	$	56.5	$	84.0

Future lease payments to be received on non-cancelable operating leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
2019	$	32.3
2020	115.0
2021	102.1
2022	90.0
2023	79.9
2024	68.0
Thereafter	485.6
Total lease receivables	$	972.9

Future lease payments to be received on non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	97.6
2020	96.2
2021	78.2
2022	69.3
2023	59.9
Thereafter	407.8
	$	809.0

The Company's leases have remaining lease terms of 1 year to 45 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year.

Leases

LEASES

The Company as Lessee: Principal non-cancelable operating leases include land, office space, harbors and equipment leased for periods that expire through 2031. Management expects that in the normal course of business, most operating leases will be renewed or replaced by other similar leases. The Company has equipment under finance leases with periods that expire through

2023. ROU assets and lease liabilities related to these finance leases are presented within Other property, net and Notes payable and other debt, respectively, in the condensed consolidated balance sheets.

Lease expense for operating leases that provide for future escalations are accounted for on a straight-line basis. For the three and nine months ended September 30, 2019, lease expense under operating and finance leases was as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Operating lease cost	$	1.9	$	5.2
Finance lease cost:
Amortization of right-of-use assets	0.2		0.4
Interest on lease liabilities	0.1		0.1
Total lease cost	$	2.2	$	5.7

Supplemental balance sheet information related to operating and finance leases as of September 30, 2019 was as follows:

Weighted-average remaining lease term (years) - operating leases	9.3
Weighted-average remaining lease term (years) - finance leases	2.7
Weighted-average discount rate - operating leases	4.4	%
Weighted-average discount rate - finance leases	4.5	%

Supplemental cash flow information related to operating and finance leases for the nine months ended September 30, 2019 was as follows (in millions):

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	4.4
Operating cash outflows from financing leases	$	0.1
Financing cash flows from finance leases	$	0.4

Future lease payments under non-cancelable operating and finance leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
	Operating Leases			Finance Leases
2019	$	1.3		$	0.2
2020	5.2			0.8
2021	5.1			0.7
2022	5.0			0.3
2023	3.9			0.1
2024	2.2			—
Thereafter	8.4			—
Total lease payments	$	31.1		$	2.1
Less: Interest	(8.1		)	(0.1		)
Total lease liabilities	$	23.0		$	2.0

Future lease payments under non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	5.5
2020	5.4
2021	5.3
2022	5.3
2023	4.5
Thereafter	13.9
	$	39.9

The Company as Lessor: The Company leases land and buildings to third parties under operating leases. The historical cost of, and accumulated depreciation on, leased property as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019			December 31, 2018
Leased property - real estate	$	1,501.2		$	1,263.0
Less: Accumulated depreciation	(115.2		)	(104.4		)
Property under operating leases, net	$	1,386.0		$	1,158.6

Total rental income under these operating leases were as follows (in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2019
Lease payments	$	54.0	$	80.4
Variable lease payments	2.5		3.6
Total	$	56.5	$	84.0

Future lease payments to be received on non-cancelable operating leases as of September 30, 2019 were as follows (in millions):

	September 30, 2019
2019	$	32.3
2020	115.0
2021	102.1
2022	90.0
2023	79.9
2024	68.0
Thereafter	485.6
Total lease receivables	$	972.9

Future lease payments to be received on non-cancelable operating leases as of December 31, 2018 were as follows (in millions):

	December 31, 2018
2019	$	97.6
2020	96.2
2021	78.2
2022	69.3
2023	59.9
Thereafter	407.8
	$	809.0

The Company's leases have remaining lease terms of 1 year to 45 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year.

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Investments in Affiliates

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates

INVESTMENTS IN AFFILIATES

The Company's investments in affiliates principally consist 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 (loss) from its equity method investments. Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues	$	44.7	$	78.0	$	143.1	$	202.6
Operating costs and expenses	35.6		64.8		127.6		172.5
Gross Profit (Loss)	$	9.1	$	13.2	$	15.5	$	30.1
Income (Loss) from Continuing Operations1	$	5.5	$	9.9	$	6.6	$	14.3
Net Income (Loss)1	$	5.4	$	9.8	$	6.4	$	14.0
1 Includes earnings from equity method investments held by the investee.

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Condensed Consolidated Balance Sheets (Parenthetical) - shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock authorized (shares)	150,000,000	150,000,000
Common stock outstanding (shares)	72,300,000	72,000,000

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Condensed Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Accumulated Other Compre- hensive Income (Loss)	(Distribution in Excess of Accumulated Earnings)	Non-Controlling Interest	Redeem- able Non- Controlling Interest
Beginning balance (in shares) at Dec. 31, 2017		49,300,000
Beginning balance at Dec. 31, 2017	$ 651.1	$ 1,161.7	$ (42.3)	$ (473.0)	$ 4.7
Total Equity
Net income (loss)	65.4			64.6	0.8
Other comprehensive income (loss), net of tax	4.0		4.0
Stock dividend (in shares)		22,600,000
Stock dividend	626.4	$ 626.4
Distributions to noncontrolling interest	(0.2)				(0.2)
Share-based compensation	4.0	$ 4.0
Shares issued or repurchased, net (in shares)		100,000
Shares issued or repurchased, net	(1.3)			(1.3)
Ending balance (in shares) at Sep. 30, 2018		72,000,000.0
Ending balance at Sep. 30, 2018	1,348.6	$ 1,792.1	(38.3)	(410.5)	5.3
Redeemable Non-Controlling Interest, beginning balance at Dec. 31, 2017						$ 8.0
Redeemable Non-Controlling Interest
Net income (loss)						0.6
Adjustments to redemption value of redeemable noncontrolling interest	0.6			0.6		(0.6)
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2018						8.0
Beginning balance (in shares) at Jun. 30, 2018		72,000,000.0
Beginning balance at Jun. 30, 2018	1,330.4	$ 1,790.8	(39.4)	(426.0)	5.0
Total Equity
Net income (loss)	15.1			14.8	0.3
Other comprehensive income (loss), net of tax	1.1		1.1
Share-based compensation	1.3	$ 1.3
Shares issued or repurchased, net	0.2			0.2
Ending balance (in shares) at Sep. 30, 2018		72,000,000.0
Ending balance at Sep. 30, 2018	1,348.6	$ 1,792.1	(38.3)	(410.5)	5.3
Redeemable Non-Controlling Interest, beginning balance at Jun. 30, 2018						8.0
Redeemable Non-Controlling Interest
Net income (loss)						0.5
Adjustments to redemption value of redeemable noncontrolling interest	0.5			0.5		(0.5)
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2018						8.0
Beginning balance (in shares) at Dec. 31, 2018		72,000,000.0
Beginning balance at Dec. 31, 2018	1,208.3	$ 1,793.4	(51.9)	(538.9)	5.7
Total Equity
Net income (loss)	(43.4)			(41.6)	(1.8)
Other comprehensive income (loss), net of tax	(3.1)		(3.1)
Dividend on common stock	(36.2)			(36.2)
Distributions to noncontrolling interest	(0.3)				(0.3)
Share-based compensation	4.1	$ 4.1
Shares issued or repurchased, net (in shares)		300,000
Shares issued or repurchased, net	(1.0)	$ (0.1)		(0.9)
Ending balance (in shares) at Sep. 30, 2019		72,300,000
Ending balance at Sep. 30, 2019	1,128.4	$ 1,797.4	(55.0)	(617.6)	3.6
Redeemable Non-Controlling Interest, beginning balance at Dec. 31, 2018	7.9					7.9
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2019	7.9					7.9
Beginning balance (in shares) at Jun. 30, 2019		72,200,000
Beginning balance at Jun. 30, 2019	1,192.6	$ 1,795.9	(54.0)	(554.0)	4.7
Total Equity
Net income (loss)	(50.9)			(49.8)	(1.1)
Other comprehensive income (loss), net of tax	(1.0)		(1.0)
Dividend on common stock	(13.8)			(13.8)
Share-based compensation	1.4	$ 1.4
Shares issued or repurchased, net (in shares)		100,000
Shares issued or repurchased, net	0.1	$ 0.1
Ending balance (in shares) at Sep. 30, 2019		72,300,000
Ending balance at Sep. 30, 2019	1,128.4	$ 1,797.4	$ (55.0)	$ (617.6)	$ 3.6
Redeemable Non-Controlling Interest, beginning balance at Jun. 30, 2019						7.9
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2019	$ 7.9					$ 7.9

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Derivative Instruments - Derivative Instruments in Designated Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivatives	$ (2.0)	$ 0.6	$ (5.5)	$ 3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2	0.0	(0.1)	0.0
Cash Flow Hedging | Designated as Hedging Instrument
Derivative [Line Items]
Amount of gain (loss) recognized in OCI on derivatives	(2.0)	0.6	(5.5)	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	$ 0.2	$ 0.0	$ (0.1)	$ 0.0

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Notes Payable and Total Debt - Schedule of Notes Payable and Long-term Debt (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt, gross	$ 733.1		$ 779.2
Unamortized debt premium (discount)	(0.1)		(0.2)
Unamortized debt issuance costs	(0.6)		(0.9)
Total debt (carrying value)	732.4		778.1
Capitalized interest costs	0.8	$ 0.4
Secured debt
Debt Instrument [Line Items]
Long-term debt, gross	222.8		222.5
Secured debt | Kailua Town Center
Debt Instrument [Line Items]
Long-term debt, gross	$ 10.3		10.5
Swapped maturity fixed interest rate	5.95%
Secured debt | Kailua Town Center 2
Debt Instrument [Line Items]
Long-term debt, gross	$ 4.7		4.7
Stated interest rate	3.15%
Secured debt | Heavy equipment financing
Debt Instrument [Line Items]
Long-term debt, gross	$ 2.0		0.0
Secured debt | Laulani Village
Debt Instrument [Line Items]
Long-term debt, gross	$ 62.0		62.0
Stated interest rate	3.93%
Secured debt | Pearl Highlands
Debt Instrument [Line Items]
Long-term debt, gross	$ 84.0		85.3
Stated interest rate	4.15%
Secured debt | Manoa Marketplace
Debt Instrument [Line Items]
Long-term debt, gross	$ 59.8		60.0
Swapped maturity fixed interest rate	3.14%
Secured debt | Minimum | Heavy equipment financing
Debt Instrument [Line Items]
Stated interest rate	4.08%
Secured debt | Maximum | Heavy equipment financing
Debt Instrument [Line Items]
Stated interest rate	5.00%
Unsecured debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 391.4		419.7
Unsecured debt | Term Loan 3
Debt Instrument [Line Items]
Long-term debt, gross	$ 0.7		2.3
Stated interest rate	5.19%
Unsecured debt | Term Loan 4
Debt Instrument [Line Items]
Long-term debt, gross	$ 0.0		9.4
Unsecured debt | Series D Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 16.2		32.5
Stated interest rate	6.90%
Unsecured debt | Bank syndicated loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 50.0		50.0
Unsecured debt | Series A Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 28.5		28.5
Stated interest rate	5.53%
Unsecured debt | Series J Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 10.0		10.0
Stated interest rate	4.66%
Unsecured debt | Series B Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 46.0		46.0
Stated interest rate	5.55%
Unsecured debt | Series C Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 23.0		24.0
Stated interest rate	5.56%
Unsecured debt | Series F Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 22.0		22.0
Stated interest rate	4.35%
Unsecured debt | Series H Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 50.0		50.0
Stated interest rate	4.04%
Unsecured debt | Series K Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 34.5		34.5
Stated interest rate	4.81%
Unsecured debt | Series G Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 42.5		42.5
Stated interest rate	3.88%
Unsecured debt | Series L Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 18.0		18.0
Stated interest rate	4.89%
Unsecured debt | Series I Note
Debt Instrument [Line Items]
Long-term debt, gross	$ 25.0		25.0
Stated interest rate	4.16%
Unsecured debt | Term Loan 5
Debt Instrument [Line Items]
Long-term debt, gross	$ 25.0		25.0
Stated interest rate	4.30%
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 118.9		137.0
Revolving Credit Facility | GLP Asphalt revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross	0.5		0.4
Revolving Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 118.4		$ 136.6
LIBOR | Secured debt | Kailua Town Center
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
LIBOR | Secured debt | Manoa Marketplace
Debt Instrument [Line Items]
Basis spread on variable rate	1.35%
LIBOR | Unsecured debt | Term Loan 4
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
LIBOR | Unsecured debt | Bank syndicated loan
Debt Instrument [Line Items]
Basis spread on variable rate	1.60%
LIBOR | Revolving Credit Facility | GLP Asphalt revolving credit facility
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
LIBOR | Revolving Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%

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Revenue and Contract Balances - Schedule of Contract Balances (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 58.2	$ 49.6
Contracts retention	9.6	11.6
Costs and estimated earnings in excess of billings on uncompleted contracts	9.5	9.2
Billings in excess of costs and estimated earnings on uncompleted contracts	9.7	5.9
Variable consideration	62.0	62.0
Deferred revenue	$ 6.4	$ 1.2

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Description of Business (Details) ft² in Millions	9 Months Ended
	Sep. 30, 2019 a ft² Property Segment
Property, Plant and Equipment [Line Items]
Number of segments | Segment	3
Gross leasable area (in sq.ft) | ft²	3.9
Area of ground leases owned (acres) | a	154
Retail centers
Property, Plant and Equipment [Line Items]
Number of properties	22
Industrial assets
Property, Plant and Equipment [Line Items]
Number of properties	10
Office properties
Property, Plant and Equipment [Line Items]
Number of properties	4

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Earnings Per Share (“EPS”) - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Anti-dilutive securities outstanding (in shares)	0.4	0.1	0.4	0.1

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Leases - Lessee Future Lease Payments to be Received (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 5.5
2020	5.4
2021	5.3
2022	5.3
2023	4.5
Thereafter	13.9
Total	$ 39.9

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Leases - Narrative (Details)	9 Months Ended
	Sep. 30, 2019
Lessor, Lease, Description [Line Items]
Optional lease extension term	10 years
Optional lease termination timeframe	1 year
Minimum
Lessor, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum
Lessor, Lease, Description [Line Items]
Remaining lease terms	45 years

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Employee Benefit Plans - Summary of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss (Details) - Pension and Post-retirement Plan - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Components of Net Periodic Benefit Cost
Service cost	$ 0.7	$ 0.5	$ 1.8	$ 1.6
Interest cost	2.1	2.0	6.3	6.0
Expected return on plan assets	(1.8)	(2.1)	(5.4)	(6.2)
Amortization of net loss	0.9	1.1	2.9	3.3
Amortization of prior service credit	(0.1)	(0.2)	(0.4)	(0.5)
Curtailment (gain)/loss	0.0	0.0	0.0	(0.4)
Net periodic benefit cost	$ 1.8	$ 1.3	$ 5.2	$ 3.8

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Share-Based Payment Awards - Narrative (Details) - 2012 Plan	9 Months Ended
	Sep. 30, 2019
Performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Employee | Time-based and market-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Granted prior to 2018 | Non-employee Director | Time-based and market-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
2018 Grants | Non-employee Director | Time-based and market-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Summary of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss

Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2019 and 2018 are shown below (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Service cost	$	0.7		$	0.5		$	1.8		$	1.6
Interest cost	2.1			2.0			6.3			6.0
Expected return on plan assets	(1.8		)	(2.1		)	(5.4		)	(6.2		)
Amortization of net loss	0.9			1.1			2.9			3.3
Amortization of prior service credit	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss	—			—			—			(0.4		)
Net periodic benefit cost	$	1.8		$	1.3		$	5.2		$	3.8

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Investments in Affiliates (Tables)

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2019 and 2018 is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues	$	44.7	$	78.0	$	143.1	$	202.6
Operating costs and expenses	35.6		64.8		127.6		172.5
Gross Profit (Loss)	$	9.1	$	13.2	$	15.5	$	30.1
Income (Loss) from Continuing Operations1	$	5.5	$	9.9	$	6.6	$	14.3
Net Income (Loss)1	$	5.4	$	9.8	$	6.4	$	14.0
1 Includes earnings from equity method investments held by the investee.

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Inventories

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories are stated at the lower of cost (principally first-in, first-out basis) or net realizable value. Inventories as of September 30, 2019 and December 31, 2018 were as follows (in millions):

	September 30, 2019		December 31, 2018
Asphalt	$	9.7	$	9.4
Processed rock and sand	7.5		9.5
Work in progress	3.2		4.0
Retail merchandise	2.1		2.0
Parts, materials and supplies inventories	1.4		1.6
Total	$	23.9	$	26.5

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, 2018 and 2017, 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, 2018, 2017 and 2016, respectively, and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission ("SEC").

Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences.

Significant Accounting Policies: The Company's significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of the Company's 2018 Form 10-K. Changes to significant accounting policies are included herein.

Reclassifications

Unclassified Balance Sheet: During the first quarter of 2019, the Company changed the presentation of its balance sheet to be unclassified in order to be comparable with other REIT peers. The change was applied to all periods presented retrospectively.

Gain on Sale of Properties: In November 2018, the SEC finalized the Disclosure Update Simplification Project, which eliminated Rule 3-15(a)(1) reporting of Gain or Loss on Sale of Properties by REITs. To conform with Accounting Standards Codification ("ASC") 360 and the SEC rule change, the Company has classified the gain on dispositions of real estate assets in operating income in the Company's condensed consolidated statements of operations. The Company reclassified the prior period to conform to the current year presentation. This change resulted in an increase of $49.8 million in operating income during the nine months ended September 30, 2018.

Recently adopted accounting pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and should be implemented using a modified retrospective approach, with the option to apply the guidance at the effective date or the beginning of the earliest comparative period. The Company adopted the guidance on January 1, 2019 and elected to use the effective date as the date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. Additionally, the Company elected the "package of practical expedients," which permits the Company to not reassess prior conclusions about lease identification, lease classification and initial direct costs.

The new guidance did not have a material impact on the accounting treatment of the Company's triple-net tenant leases, which are the primary source of our CRE revenues. However, starting in the current year there were certain changes to the guidance under ASC 842 which will have an impact on future operating results, including initial direct costs associated with the execution

of lease agreements such as legal fees and certain transaction costs will no longer be capitalizable and instead are expensed in the period incurred.

The Company recorded right-of-use ("ROU") assets and corresponding lease liabilities of approximately $31.0 million on the condensed consolidated balance sheet for certain leases in which it is the lessee. The adoption of ASC 842 had no impact on the Company's lease expense.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the guidance on January 1, 2019. The guidance amends the hedge accounting model in ASC 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments expand an entity's ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness and requires the earnings effect of the hedging instrument to be presented in the same income statement line as the hedged item. The adoption of this standard did not have an impact on the Company's financial position or results of operations.

In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the guidance on January 1, 2019. The guidance expands the scope of ASC 718 to include share-based payment transactions with the exception of specific guidance related to the attribution of compensation cost. The guidance also clarifies that any share-based payment awards granted in conjunction with selling goods or services to customers should be evaluated under ASC 606. The adoption of this standard did not have an impact on the Company's financial position or results of operations.

Recently issued accounting pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. The guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The FASB has subsequently issued other related ASUs, which amend ASU 2016-13 to provide clarification and additional guidance. The Company is currently assessing the impact that adopting this new accounting standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement. The guidance amends and removes several disclosure requirements including the valuation processes for Level 3 fair value measurements. This ASU also modifies some disclosure requirements and requires additional disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and requires the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance clarifies current disclosures and removes several disclosure requirements including accumulated other comprehensive income expected to be recognized over the next fiscal year and amount and timing of plan assets expected to be returned to the employer. This ASU also requires additional disclosures as well as explanations for significant gains and losses related to changes in the benefit plan obligation. This ASU is effective for fiscal years beginning after December 15, 2020. The Company is currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. This ASU is effective for fiscal years beginning after December 15, 2019 and the amendments can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is

currently assessing the impact that adopting this new standard will have on its condensed consolidated financial statements and footnote disclosures.

Leases

Lessee: The Company determines if an arrangement is a lease at inception by considering whether that arrangement conveys the right to use an identified asset for a period of time in exchange for consideration. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company's condensed consolidated balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has also elected, for all classes of underlying assets, to not recognize lease liabilities and lease assets for leases with a term of 12 months or less.

Lessor: The Company reviews its contracts to determine if they qualify as a lease. A contract is determined to be a lease when the right to substantially all of the economic benefits and to direct the use of an identified asset is transferred to a customer over a defined period of time for consideration. During this review, the Company evaluates among other items, asset specification, substitution rights, purchase options, operating rights and control over the asset during the contract period.

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately under ASC 606, Revenue from Contracts with Customers. The Company has elected to not separate non-lease components from lease components for all classes of underlying assets where the component follows the same timing and pattern as the lease component. Non-lease components included in rental revenue primarily consist of tenant reimbursements for common area maintenance and other services paid for by the lessor and utilized by the lessee.

Rental revenue is primarily derived from operating leases and, therefore, is generally recognized on a straight-line basis over the term of the lease. Fixed contractual payments from the Company's leases are recognized on a straight-line basis over the terms of the respective leases. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. Certain of the Company's lease agreements include terms for contingent rental revenue (e.g. percentage rents based on tenant sales volume) and tenant reimbursed property taxes, which are both accounted for as variable payments.

Certain of the Company's leases include termination and/or extension options. Termination options allow the customer to terminate the lease prior to the end of the lease term under specific circumstances. The Company's extension options generally require a re-negotiation with the customer at market rates. Initial direct costs, primarily commissions, related to the leasing of properties are capitalized on the balance sheet and amortized over the lease term. All other costs to negotiate or arrange a lease are expensed as incurred.

Accounts receivable related to leases are regularly evaluated for collectability, considering factors including, but not limited to, the credit quality of the customer, historical trends of the customer, and changes in customer payment terms. Upon determination that the collectability of a customer receivable is not probable, the Company will record an allowance for such receivable and a corresponding reduction to revenue previously recognized. Subsequent revenue is recorded on a cash basis until collectability on related billings becomes probable.

Changes in estimates on construction contracts

Revenue on the Company's long-term construction contracts are recognized using the percentage of completion, cost-to-cost, input method. Due to the nature of the work required to be performed, estimating total revenue and cost at completion of the contract is complex, subject to many variables and requires significant judgment. Such estimates of contract revenue and cost are dependent on a number of factors that may change during a contract performance period, resulting in changes to estimated contract profitability. These factors include, but are not limited to, the completeness and accuracy of the original bid; changes in the timing of scheduled work; change orders; unusual weather conditions; changes in costs of labor and/or materials; changes in productivity

expectations; and the expected, or actual, resolution terms for claims. Management evaluates changes in estimates on a contract by contract basis and uses the cumulative catch-up method to account for the changes in the period in which they are determined.

Interest and other income (expense), net

Interest and other income (expense), net for the nine months ended September 30, 2019 was primarily composed of interest income of $2.9 million. Interest and other income (expense), net for the nine months ended September 30, 2018 was primarily composed of a $4.2 million net gain on the sale of the Company's joint venture interest in the Ka Milo real estate development-for-sale project. For the nine months ended September 30, 2019 and 2018, other expense was primarily composed of pension and postretirement benefit expense of $3.4 million and $2.2 million, respectively.

Discontinued operations

In December 2016, the Company completed its final sugar harvest and ceased its sugar operations. Costs related to the cessation of sugar operations are presented as discontinued operations in the condensed consolidated statements of operations. Liabilities related to the cessation of sugar operations are presented within Accrued and other liabilities in the condensed consolidated balance sheets. For the nine months ended September 30, 2019, the Company recorded a loss from discontinued operations of $0.8 million primarily related to an increase in cessation related accruals and a reserve for bad debt against outstanding receivables deemed uncollectible in the first quarter of 2019.

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Real Estate Asset Acquisitions

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Real Estate Asset Acquisitions

REAL ESTATE ASSET ACQUISITIONS

During the nine months ended September 30, 2019, the Company acquired five commercial real estate assets for $218.4 million.

The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):

Fair value of assets acquired and liabilities assumed
Assets acquired:
Land	$	106.9
Property and improvements	91.3
In-place leases	23.2
Favorable leases	4.3
Total assets acquired	$	225.7
Liabilities assumed:
Unfavorable leases	$	7.3
Total liabilities assumed	7.3
Net assets acquired	$	218.4

As of the acquisition date, the weighted-average amortization periods of the in-place and favorable leases were approximately 8.2 years and 4.7 years, respectively. The weighted-average amortization period of the unfavorable leases was approximately 18.6 years.

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Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,400,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,400,000)

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Leases - Future Minimum Payments Under Non-cancelable Operating Leases as Lessee (Details) $ in Millions	Sep. 30, 2019 USD ($)
Operating Leases
2019	$ 1.3
2020	5.2
2021	5.1
2022	5.0
2023	3.9
2024	2.2
Thereafter	8.4
Total lease payments	31.1
Less: Interest	(8.1)
Total lease liabilities	23.0
Finance Leases
2019	0.2
2020	0.8
2021	0.7
2022	0.3
2023	0.1
2024	0.0
Thereafter	0.0
Total lease payments	2.1
Less: Interest	(0.1)
Total lease liabilities	$ 2.0

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Leases - Lessor Future Minimum Lease Payments to be Received (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 97.6
2020	96.2
2021	78.2
2022	69.3
2023	59.9
Thereafter	407.8
Total	$ 809.0

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Subsequent Events (Details) - $ / shares		3 Months Ended	9 Months Ended
	Oct. 22, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Subsequent Event [Line Items]
Dividends declared (in dollars per share)		$ 0.19	$ 0.50	$ 11.65
Subsequent Event
Subsequent Event [Line Items]
Dividends declared (in dollars per share)	$ 0.19

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Real Estate Asset Acquisitions (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) Property	Dec. 31, 2018 USD ($)
Real Estate [Line Items]
Total assets	$ 2,121.7	$ 2,225.2
Total liabilities	$ 985.4	$ 1,009.0
Weighted average amortization period of unfavorable leases	18 years 7 months 6 days
In-place lease
Real Estate [Line Items]
Weighted-average amortization period of in-place/favorable leases	8 years 2 months 12 days
Unfavorable leases
Real Estate [Line Items]
Weighted-average amortization period of in-place/favorable leases	4 years 8 months 12 days
2019 Acquisitions
Real Estate [Line Items]
Number of commercial real estate assets purchased | Property	5
Purchase consideration	$ 218.4
Land	106.9
Property and improvements	91.3
In-place leases	23.2
Favorable leases	4.3
Total assets	225.7
Unfavorable leases	7.3
Total liabilities	7.3
Net assets acquired	$ 218.4

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Share-Based Payment Awards - Schedule of Fair Value Assumptions of Market-based Awards (Details) - Time-based and market-based restricted stock units - 2012 Plan - Time-Based Vesting	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility of A&B common stock (percent)	23.80%	22.70%
Average volatility of peer companies (percent)	23.80%	21.60%
Risk-free interest rate (percent)	1.80%	2.30%

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Share-Based Payment Awards (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following table summarizes the Company's stock option activity for the nine months ended September 30, 2019 (in thousands, except weighted-average exercise price and weighted-average contractual life):

	2012 Plan Stock Options	Weighted- Average Exercise Price		Weighted- Average Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2019	580.1	$	12.91
Exercised	(225.8)	$	11.29
Canceled	(2.0)	$	13.11
Outstanding, September 30, 2019	352.3	$	13.95	1.8 years	$	3,756
Vested or expected to vest	352.3	$	13.95	1.8 years	$	3,756
Exercisable, September 30, 2019	352.3	$	13.95	1.8 years	$	3,756

Summary of Non-vested Restricted Stock Unit Activity

The following table summarizes non-vested restricted stock unit activity for the nine months ended September 30, 2019 (in thousands, except weighted-average grant-date fair value amounts):

	2012 Plan Restricted Stock Units		Weighted- Average Grant-date Fair Value
Outstanding, January 1, 2019	421.3		$	25.91
Granted	264.0		$	20.05
Vested	(149.5	)	$	23.72
Canceled	(78.8	)	$	22.07
Outstanding, September 30, 2019	457.0		$	23.90

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:

	2019 Grants		2018 Grants
Volatility of A&B common stock	23.8	%	22.7	%
Average volatility of peer companies	23.8	%	21.6	%
Risk-free interest rate	1.8	%	2.3	%

Summary of Compensation Cost related to Share-based Payments

A summary of compensation cost related to share-based payments is as follows (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018
Share-based expense:
Time-based and market-based restricted stock units	$	1.4	$	1.3		$	4.1	$	4.0
Total recognized tax benefit	—		(0.1		)	—		(0.4		)
Share-based expense (net of tax)	$	1.4	$	1.2		$	4.1	$	3.6

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Notes Payable and Total Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Notes Payable and Long-term Debt

At September 30, 2019 and December 31, 2018, notes payable and total debt consisted of the following (in millions):

			Principal Outstanding
Debt	Interest Rate (%)	Maturity Date	September 30, 2019			December 31, 2018
Secured:
Kailua Town Center	(1)	2021	$	10.3		$	10.5
Kailua Town Center #2	3.15%	2021	4.7			4.7
Heavy equipment financing	(2)	2023	2.0			—
Laulani Village	3.93%	2024	62.0			62.0
Pearl Highlands	4.15%	2024	84.0			85.3
Manoa Marketplace	(3)	2029	59.8			60.0
Subtotal			$	222.8		$	222.5
Unsecured:
Term Loan 3	5.19%	2019	0.7			2.3
Term Loan 4	(4)	2019	—			9.4
Series D Note	6.90%	2020	16.2			32.5
Bank syndicated loan	(5)	2023	50.0			50.0
Series A Note	5.53%	2024	28.5			28.5
Series J Note	4.66%	2025	10.0			10.0
Series B Note	5.55%	2026	46.0			46.0
Series C Note	5.56%	2026	23.0			24.0
Series F Note	4.35%	2026	22.0			22.0
Series H Note	4.04%	2026	50.0			50.0
Series K Note	4.81%	2027	34.5			34.5
Series G Note	3.88%	2027	42.5			42.5
Series L Note	4.89%	2028	18.0			18.0
Series I Note	4.16%	2028	25.0			25.0
Term Loan 5	4.30%	2029	25.0			25.0
Subtotal			$	391.4		$	419.7
Revolving Credit Facilities:
GLP Asphalt revolving credit facility	(6)	2020	0.5			0.4
Revolving credit facility	(7)	2022	118.4			136.6
Subtotal			$	118.9		$	137.0
Total debt (contractual)			$	733.1		$	779.2
Unamortized debt premium (discount)			(0.1		)	(0.2		)
Unamortized debt issuance costs			(0.6		)	(0.9		)
Total debt (carrying value)			$	732.4		$	778.1

(1) Loan has a stated interest rate of LIBOR plus 1.50%, but is swapped through maturity to a 5.95% fixed rate.

(2) Loans have a stated rate ranging from 4.08% to 5.00%

(3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate.

(4) Loan has a stated interest rate of LIBOR plus 2.00%, and is secured by a letter of credit.

(5) Loan has a stated interest rate of LIBOR plus 1.60%, based on pricing grid.

(6) Loan has a stated interest rate of LIBOR plus 1.25%.

(7) Loan has a stated interest rate of LIBOR plus 1.65%, based on pricing grid.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2019 were as follows (in millions):

	Employee Benefit Plans			Interest Rate Swap			Total
Balance, January 1, 2019	$	(55.2	)	$	3.3		$	(51.9	)
Other comprehensive income (loss) before reclassifications, net of taxes of $0 for interest rate swap	—			(5.5		)	(5.5		)
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0 for employee benefit plans	2.5			—			2.5
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes of $0 for interest rate swap	—			(0.1		)	(0.1		)
Balance, September 30, 2019	$	(52.7	)	$	(2.3	)	$	(55.0	)

The details of the changes in accumulated other comprehensive income (loss), including reclassifications out of accumulated other comprehensive income (loss), by component for the three and nine months ended September 30, 2019 and 2018, respectively, were as follows (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Unrealized interest rate hedging gain (loss)	$	(2.0	)	$	0.6		$	(5.5	)	$	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	0.2			—			(0.1		)	—
Amortization of defined benefit pension items reclassified to net periodic pension cost:
Actuarial loss1	0.9			1.1			2.9			3.3
Prior service credit1	(0.1		)	(0.2		)	(0.4		)	(0.5		)
Curtailment (gain)/loss1	—			—			—			(0.4		)
Total before income tax	(1.0		)	1.5			(3.1		)	5.4
Income taxes	—			(0.4		)	—			(1.4		)
Other comprehensive income (loss), net of tax	$	(1.0	)	$	1.1		$	(3.1	)	$	4.0

¹ This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (see Note 9 for additional details).

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Share-Based Payment Awards

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Payment Awards

SHARE-BASED PAYMENT AWARDS

The 2012 Incentive Compensation Plan ("2012 Plan") allows for the granting of stock options, restricted stock units and common stock. The shares of common stock authorized to be issued under the 2012 Plan may be drawn from the shares of the Company's authorized but unissued common stock or from shares of its common stock that the Company acquires, including shares purchased on the open market or private transactions.

The following table summarizes the Company's stock option activity for the nine months ended September 30, 2019 (in thousands, except weighted-average exercise price and weighted-average contractual life):

	2012 Plan Stock Options	Weighted- Average Exercise Price		Weighted- Average Contractual Life	Aggregate Intrinsic Value
Outstanding, January 1, 2019	580.1	$	12.91
Exercised	(225.8)	$	11.29
Canceled	(2.0)	$	13.11
Outstanding, September 30, 2019	352.3	$	13.95	1.8 years	$	3,756
Vested or expected to vest	352.3	$	13.95	1.8 years	$	3,756
Exercisable, September 30, 2019	352.3	$	13.95	1.8 years	$	3,756

The following table summarizes non-vested restricted stock unit activity for the nine months ended September 30, 2019 (in thousands, except weighted-average grant-date fair value amounts):

	2012 Plan Restricted Stock Units		Weighted- Average Grant-date Fair Value
Outstanding, January 1, 2019	421.3		$	25.91
Granted	264.0		$	20.05
Vested	(149.5	)	$	23.72
Canceled	(78.8	)	$	22.07
Outstanding, September 30, 2019	457.0		$	23.90

The time-based restricted stock units granted to employees vest ratably over a period of three years. The time-based restricted stock units granted to non-employee directors prior to 2018 vest ratably over a period of three years, and commencing in 2018, the time-based restricted stock units granted to non-employee directors vest over one year. The market-based performance share units cliff vest over 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 total shareholder returns relative to indices, as defined.

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:

	2019 Grants		2018 Grants
Volatility of A&B common stock	23.8	%	22.7	%
Average volatility of peer companies	23.8	%	21.6	%
Risk-free interest rate	1.8	%	2.3	%

The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018
Share-based expense:
Time-based and market-based restricted stock units	$	1.4	$	1.3		$	4.1	$	4.0
Total recognized tax benefit	—		(0.1		)	—		(0.4		)
Share-based expense (net of tax)	$	1.4	$	1.2		$	4.1	$	3.6

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

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 included standby letters of credit and bonds. As of September 30, 2019, standby letters of credit issued by the Company's lenders under the Company's revolving credit facilities totaled $1.7 million. These letters of credit primarily relate to the Company's real estate activities, and if drawn upon the Company would be obligated to reimburse the issuer.

As of September 30, 2019, bonds related to the Company's construction and real estate activities totaled $440.8 million. Approximately $421.7 million represents the face value of 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 for the amount of the bond, reduced for the work completed to date. As of September 30, 2019, the Company's estimated remaining exposure, assuming defaults on all existing contractual construction obligations, was approximately $79.8 million.

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 September 30, 2019, the Company's limited guarantees on indebtedness related to one of its unconsolidated joint ventures totaled $3.1 million.

Other than obligations described above and those described in the Company's 2018 Form 10-K, obligations of the Company's 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: Prior to the sale of approximately 41,000 acres of agricultural land on Maui to Mahi Pono Holdings, LLC ("Mahi Pono") in December 2018, A&B, through East Maui Irrigation Company, LLC ("EMI"), also owned approximately 16,000 acres of watershed lands in East Maui and also held four water licenses to approximately 30,000 acres owned by the State of Hawai‘i in East Maui. The sale to Mahi Pono includes the sale of a 50% interest in EMI (which closed February 1, 2019), and provides for A&B and Mahi Pono, through EMI, to jointly continue the existing process to secure long-term leases from the State for delivery of irrigation water to Mahi Pono for use in Central Maui.

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 completion by the BLNR of a contested case hearing it ordered to be held 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 asked 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 was challenged by the three parties. In January 2016, the court ruled in the 4/10/15 Lawsuit 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 decision was appealed to the Intermediate Court of Appeals ("ICA") of the State of Hawai‘i.

In May 2016, while the appeal of the 4/10/15 Lawsuit was pending, the Hawai‘i 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 annual authorization of the existing holdover permits was sought and granted by the BLNR in December 2016, November 2017 and November 2018 for calendar years 2017, 2018 and 2019. No extension of Act 126 was approved by the Hawai‘i State Legislature in 2019.

In June 2019, the ICA vacated the lower court’s ruling in the 4/10/15 Lawsuit that the BLNR lacked authority to keep the revocable permits in holdover status beyond one year and remanded the case to the trial court to determine whether the holdover status of the permits was both (a) "temporary" and (b) in the best interest of the State, as required by statute. The plaintiffs have filed a motion with the ICA for reconsideration of its decision, which was denied on July 5, 2019. On September 30, 2019, Plaintiffs filed a request with the Supreme Court of Hawai‘i to review and reverse the ICA’s ruling. On October 11, 2019, the BLNR took up the renewal of all the existing water revocable permits in the state, acting under the ICA's ruling, and approved the continuation of the four East Maui water revocable permits for another one-year period through December 31, 2020.

In a separate matter, on December 7, 2018, a contested case request filed by the Sierra Club contesting the BLNR's November 2018 approval of the 2019 revocable permits was denied by the BLNR. On January 7, 2019, Sierra Club filed a lawsuit in the circuit court of the first circuit in Hawai‘i against BLNR, A&B, and EMI, seeking to invalidate the extension of the revocable permits for, among other things, failure to perform an EA. The count alleging failure to perform an EA was recently ordered to be dismissed based on the ICA ruling in the 4/10/15 Lawsuit. The lawsuit also seeks to enjoin the diversion by EMI of more than 25 million gallons a day pending the imposition by BLNR of conditions that Sierra Club alleges should be imposed on the revocable permits. In connection with A&B’s obligation to continue the existing process to secure long-term water leases from the State, A&B and EMI will defend against the claims made by the Sierra Club.

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 consolidated financial statements as a whole.

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Goodwill Impairment

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Impairment

GOODWILL IMPAIRMENT

The Company's goodwill balance as of December 31, 2018 and September 30, 2019 was $65.1 million and $15.4 million, respectively, and is attributable to the M&C and CRE segments. The goodwill related to the M&C segment was assigned to three reporting units: GPC (primarily consisting of the Grace Pacific’s quarry, paving, and liquid asphalt operations), GPRS (primarily consisting of Grace Pacific’s roadway and maintenance solutions operations) and GPRM (primarily consisting of Grace Pacific’s prestressed and precast concrete operations).

During the quarter ended September 30, 2019, the Company was required to perform an interim impairment test for the goodwill in each of its three M&C reporting units due to the continued decline in M&C sales and margins in 2019, which resulted from continued, adverse market conditions.

The Company's goodwill and impairment test estimated the fair value of the M&C reporting units using various methodologies, including a market approach that involves the application of market-derived multiples and an income approach that was based on a discounted cash flow analysis. The Company classified these fair value measurements as Level 3. Under the market multiple methodology, the estimate of fair value is based on market multiples of EBITDA (earnings before interest, taxes, depreciation and amortization) or revenues. The discounted cash flow approach relies on a number of assumptions, including future macroeconomic conditions, market factors specific to the reporting unit, the amount and timing of estimated future cash flows to be generated by the business over an extended period of time, and a discount rate that considers the risks related to the amount and timing of the cash flows, among others. The weighted average discount rate used in the discounted cash flow approach of the valuation was 12.7%.

Changes in the carrying amount of goodwill allocated to the Company's reportable segments for the nine months ended September 30, 2019 consisted of the following (in millions):

	Materials & Construction			Commercial Real Estate		Total
Balance, January 1, 2019	$	56.4		$	8.7	$	65.1
Goodwill Impairment	(49.7		)	—		(49.7		)
Balance, September 30, 2019	$	6.7		$	8.7	$	15.4

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Derivative Instruments

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

The Company is exposed to interest rate risk related to its variable rate interest debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed and variable 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

As of September 30, 2019, the Company has one interest rate swap agreement designated as a cash flow hedge whose key terms are as follows (dollars in millions):

Effective	Maturity	Fixed Interest	Notional Amount at		Fair Value at
Date	Date	Rate	September 30, 2019		September 30, 2019			December 31, 2018
4/7/2016	8/1/2029	3.14%	$	60.0	$	(1.7	)	$	3.9

The liability related to the interest rate swap as of September 30, 2019 is presented within Accrued and other liabilities in the condensed consolidated balance sheet. The asset related to the interest swap at December 31, 2018 was presented within Prepaid expenses and other assets. The changes in fair value of the cash flow hedge are recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related-variable rate debt.

Non-designated Hedges

As of September 30, 2019, the Company has one interest rate swap that has not been designated as a cash flow hedge whose key terms are as follows (dollars in millions):

Effective	Maturity	Fixed Interest	Notional Amount at		Fair Value at						Classification on
Date	Date	Rate	September 30, 2019		September 30, 2019			December 31, 2018			Balance Sheet
1/1/2014	9/1/2021	5.95%	$	10.3	$	(0.6	)	$	(0.5	)	Accrued and other liabilities

The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statement of comprehensive income (loss) (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Derivatives in Designated Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in OCI on derivatives	$	(2.0	)	$	0.6	$	(5.5	)	$	3.0
Impact of reclassification adjustment to interest expense included in Net Income (Loss)	$	0.2		$	—	$	(0.1	)	$	—

The Company records gains or losses related to interest rate swaps that have not been designated as cash flow hedges in Interest and other income in its condensed consolidated statements of operations, and the amounts were immaterial during the three and nine months ended September 30, 2019 and 2018.

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.

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Real estate investments
Real estate property	$ 1,531.4	$ 1,293.7
Accumulated depreciation	(124.3)	(107.2)
Real estate property, net	1,407.1	1,186.5
Real Estate Developments	93.8	155.2
Investments in real estate joint ventures and partnerships	135.4	141.0
Real estate intangible assets, net	78.7	59.8
Real estate investments, net	1,715.0	1,542.5
Cash and cash equivalents	7.2	11.4
Restricted cash	0.2	223.5
Accounts receivable and retention, net	67.8	61.2
Inventories	23.9	26.5
Other property, net	131.4	135.5
Operating lease right-of-use assets	22.7
Goodwill	15.4	65.1
Other receivables	28.7	56.8
Prepaid expenses and other assets	109.4	102.7
Total assets	2,121.7	2,225.2
Liabilities:
Notes payable and other debt	732.4	778.1
Accounts payable	15.0	34.2
Operating lease liabilities	23.0
Accrued pension and post-retirement benefits	31.4	29.4
Indemnity holdbacks	7.5	16.3
Deferred revenue	68.4	63.2
Accrued and other liabilities	107.7	87.8
Total liabilities	985.4	1,009.0
Commitments and Contingencies
Redeemable Noncontrolling Interest	7.9	7.9
Equity:
Common stock - no par value; authorized, 150 million shares; outstanding, 72.3 million and 72.0 million shares at September 30, 2019 and December 31, 2018, respectively	1,797.4	1,793.4
Accumulated other comprehensive income (loss)	(55.0)	(51.9)
Distributions in excess of accumulated earnings	(617.6)	(538.9)
Total A&B shareholders' equity	1,124.8	1,202.6
Noncontrolling interest	3.6	5.7
Total equity	1,128.4	1,208.3
Total liabilities and equity	$ 2,121.7	$ 2,225.2

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows from Operating Activities:
Net Income (Loss)	$ (43.4)	$ 66.0
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Depreciation and amortization	36.6	31.6
Deferred income taxes	0.0	(2.4)
Loss (gain) on asset transactions, net	(2.6)	(62.1)
Goodwill impairment	49.7	0.0
Share-based compensation expense	4.1	4.0
(Income) loss from affiliates, net of distributions of income	(3.5)	2.0
Changes in operating assets and liabilities:
Trade, contracts retention, and other contract receivables	(6.9)	(4.9)
Inventories	2.6	(0.3)
Prepaid expenses, income tax receivable and other assets	25.8	(4.1)
Accrued pension and post-retirement benefits	4.6	2.5
Accounts payable	(10.3)	(8.3)
Accrued and other liabilities	6.6	(7.3)
Real estate development for sale proceeds	48.5	41.0
Expenditures for real estate development for sale	(7.8)	(20.0)
Net cash provided by (used in) operations	104.0	37.7
Cash Flows from Investing Activities:
Capital expenditures for acquisitions	(218.4)	(201.6)
Capital expenditures for property, plant and equipment	(31.8)	(40.0)
Proceeds from disposal of property, investments and other assets	3.0	169.3
Payments for purchases of investments in affiliates and other investments	(3.3)	(21.3)
Distributions of capital from investments in affiliates and other investments	12.2	32.8
Net cash provided by (used in) investing activities	(238.3)	(60.8)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	111.8	533.5
Payments of long-term debt and deferred financing costs	(155.3)	(433.6)
Borrowings (payments) on line-of-credit agreement, net	(5.1)	(14.2)
Distribution to noncontrolling interests	(0.3)	(0.2)
Cash dividends paid	(36.2)	(156.6)
Proceeds from issuance (repurchase) of common stock and other, net	(1.0)	(1.3)
Payment of deferred acquisition holdback	(7.1)	0.0
Net cash provided by (used in) financing activities	(93.2)	(72.4)
Cash, Cash Equivalents and Restricted Cash:
Net increase (decrease) in cash, cash equivalents, and restricted cash	(227.5)	(95.5)
Balance, beginning of period	234.9	103.2
Balance, end of period	7.4	7.7
Other Cash Flow Information:
Interest paid, net of capitalized interest	(25.2)	(26.1)
Income tax (payments)/refunds, net	25.8	1.9
Noncash Investing and Financing Activities:
Capital expenditures included in accounts payable and accrued expenses	2.6	2.0
Fair value of loan assumed in connection with acquisition	0.0	61.0
Issuance of shares for stock dividend	0.0	626.4
Right-of-use (ROU) assets and corresponding lease liability recorded upon ASC 842 adoption	31.0
Lease liabilities arising from obtaining ROU assets	1.7
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	11.4	68.9
Restricted cash, beginning of period	223.5	34.3
Cash and cash equivalents, end of period	7.2	7.5
Restricted cash, end of period	0.2	0.2
Cash, cash equivalents and restricted cash	$ 234.9	$ 103.2

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Leases - Lessee Lease Expenses and Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 1.9	$ 5.2
Amortization of right-of-use assets	0.2	0.4
Interest on lease liabilities	0.1	0.1
Total lease cost	$ 2.2	$ 5.7
Weighted-average remaining lease term (years) - operating leases	9 years 3 months 18 days	9 years 3 months 18 days
Weighted-average remaining lease term (years) - finance leases	2 years 8 months 12 days	2 years 8 months 12 days
Weighted-average discount rate - operating leases (percent)	4.40%	4.40%
Weighted-average discount rate - finance leases (percent)	4.50%	4.50%
Operating cash outflows from operating leases		$ 4.4
Operating cash outflows from financing leases		0.1
Financing cash flows from finance leases		$ 0.4

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Segment Results - Schedule of Operating Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting Information, Profit (Loss) [Abstract]
Total operating revenue	$ 89.1	$ 119.4	$ 327.6	$ 344.8
Total operating profit (loss)	(37.1)	32.4	(0.2)	61.5
Gain (loss) on the sale of commercial real estate properties	0.0	0.0	0.0	49.8
Interest expense	(8.2)	(9.1)	(25.4)	(26.4)
General corporate expenses	(5.5)	(6.5)	(18.1)	(20.5)
Income (Loss) from Continuing Operations Before Income Taxes	(50.8)	16.8	(43.7)	64.4
Identifiable Assets:
Total assets	2,121.7		2,121.7		$ 2,225.2
Commercial Real Estate
Segment Reporting Information, Profit (Loss) [Abstract]
Commercial Real Estate	42.7	35.9	118.6	104.9
Total operating profit (loss)	18.0	15.9	50.6	45.0
Land Operations
Segment Reporting Information, Profit (Loss) [Abstract]
Revenues	8.5	24.0	82.4	72.6
Total operating profit (loss)	2.8	13.1	15.9	9.3
Materials & Construction
Segment Reporting Information, Profit (Loss) [Abstract]
Revenues	37.9	59.5	126.6	167.3
Total operating profit (loss)	(57.9)	$ 3.4	(66.7)	$ 7.2
Operating Segments | Commercial Real Estate
Identifiable Assets:
Total assets	1,539.2		1,539.2		1,530.4
Operating Segments | Land Operations
Identifiable Assets:
Total assets	300.9		300.9		350.0
Operating Segments | Materials & Construction
Identifiable Assets:
Total assets	259.0		259.0		297.1
Other
Identifiable Assets:
Total assets	$ 22.6		$ 22.6		$ 47.7

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Investments in Affiliates - Summary of Financial Information for Equity Method Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement
Revenues	$ 44.7	$ 78.0	$ 143.1	$ 202.6
Operating costs and expenses	35.6	64.8	127.6	172.5
Gross Profit (Loss)	9.1	13.2	15.5	30.1
Income (Loss) from Continuing Operations	5.5	9.9	6.6	14.3
Net Income (Loss)	$ 5.4	$ 9.8	$ 6.4	$ 14.0

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Goodwill Impairment (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Amount of Goodwill

Changes in the carrying amount of goodwill allocated to the Company's reportable segments for the nine months ended September 30, 2019 consisted of the following (in millions):

	Materials & Construction			Commercial Real Estate		Total
Balance, January 1, 2019	$	56.4		$	8.7	$	65.1
Goodwill Impairment	(49.7		)	—		(49.7		)
Balance, September 30, 2019	$	6.7		$	8.7	$	15.4

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Earnings Per Share (“EPS”) - Schedule of Reconciliation of Income from Continuing Operations and Computation of Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Income (loss) from Continuing Operations	$ (50.8)	$ 15.8	$ (42.6)	$ 66.2
Less: (Income) loss attributable to noncontrolling interest	1.1	(0.8)	1.8	(1.4)
Income (loss) from continuing operations attributable to A&B shareholders	(49.7)	15.0	(40.8)	64.8
Income (loss) from discontinued operations available to A&B shareholders, net of income taxes	(0.1)	(0.2)	(0.8)	(0.2)
Net income (loss) available to A&B shareholders	$ (49.8)	$ 14.8	$ (41.6)	$ 64.6
Number of shares used to compute basic and diluted earnings per share [Abstract]
Denominator for basic EPS – weighted-average shares outstanding (in shares)	72.3	72.0	72.2	70.2
Effect of dilutive securities:
Non-participating stock options and restricted stock unit awards (in shares)	0.0	0.4	0.0	0.4
Special Distribution (in shares)	0.0	0.0	0.0	1.8
Denominator for diluted EPS – weighted average shares outstanding (in shares)	72.3	72.4	72.2	72.4