Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Alexander & Baldwin, Inc. |
Entity Central Index Key | 1545654 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 48,853,198 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Revenue: | ||
Real estate leasing | $32.70 | $31 |
Real estate development and sales | 32.2 | 0.8 |
Materials and construction | 56.9 | 50.1 |
Agribusiness | 28.9 | 12.9 |
Total operating revenue | 150.7 | 94.8 |
Operating Costs and Expenses: | ||
Cost of real estate leasing | 19.6 | 19.6 |
Cost of real estate development and sales | 21.3 | -0.1 |
Cost of construction contracts and materials | 45.8 | 42.1 |
Costs of agribusiness revenues | 26.8 | 9.8 |
Selling, general and administrative | 14.6 | 13.4 |
Gain on the sale of improved property | -1.9 | 0 |
Total operating costs and expenses | 126.2 | 84.8 |
Operating Income | 24.5 | 10 |
Other Income and (Expense): | ||
Income related to joint ventures | 24 | -1.6 |
Reduction in KRS II carrying value | -0.1 | 0 |
Interest income and other | 0.2 | 0.7 |
Interest expense | -7.1 | -7.2 |
Income From Continuing Operations Before Income Taxes | 41.5 | 1.9 |
Income tax expense | 15.6 | 0.8 |
Income From Continuing Operations | 25.9 | 1.1 |
Income From Discontinued Operations (net of income taxes) | 0 | 34.3 |
Net Income | 25.9 | 35.4 |
Income attributable to noncontrolling interest | -0.6 | -0.4 |
Net Income Attributable to A&B Shareholders | 25.3 | 35 |
Basic Earnings Per Share: | ||
Continuing operations attributable to A&B shareholders (dollars per shares) | $0.52 | $0.01 |
Discontinued operations attributable to A&B shareholders (dollars per shares) | $0 | $0.71 |
Net income attributable to A&B shareholders (dollars per shares) | $0.52 | $0.72 |
Diluted Earnings Per Share: | ||
Continuing operations attributable to A&B shareholders (dollars per shares) | $0.51 | $0.01 |
Discontinued operations attributable to A&B shareholders (dollars per shares) | $0 | $0.70 |
Net income attributable to A&B shareholders (dollars per shares) | $0.51 | $0.71 |
Weighted Average Number of Shares Outstanding: | ||
Basic (in shares) | 48.8 | 48.7 |
Diluted (in shares) | 49.3 | 49.2 |
Amounts Attributable to A&B Shareholders: | ||
Income from continuing operations, net of tax | 25.3 | 0.7 |
Discontinued operations, net of tax | 0 | 34.3 |
Net Income Attributable to A&B | $25.30 | $35 |
Cash dividends declared per share (dollars per share) | $0.05 | $0.04 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $25.90 | $35.40 | ||
Defined benefit pension plans: | ||||
Amortization of prior service credit included in net periodic pension cost | -0.3 | [1] | -0.3 | [1] |
Amortization of net loss included in net periodic pension cost | 1.1 | [1] | 1.9 | [1] |
Income taxes related to other comprehensive income | -0.3 | -0.6 | ||
Other Comprehensive Income | 0.5 | 1 | ||
Comprehensive Income | 26.4 | 36.4 | ||
Comprehensive income attributable to noncontrolling interest | -0.6 | -0.4 | ||
Comprehensive income attributable to A&B | $25.80 | $36 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $3.40 | $2.80 |
Accounts and other notes receivable, net | 35.4 | 33.1 |
Contracts retention | 9.3 | 9.1 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 14.1 | 15.9 |
Inventories | 85.1 | 81.9 |
Real estate held for sale | 0 | 2.5 |
Deferred income taxes | 8.3 | 8.3 |
Income tax receivable | 2.8 | 6.7 |
Prepaid expenses and other assets | 20.8 | 15.6 |
Total current assets | 179.2 | 175.9 |
Investments in Affiliates | 403.4 | 418.6 |
Real Estate Developments | 199.1 | 224 |
Property – net | 1,296 | 1,301.70 |
Intangible Assets - net | 61.7 | 63.9 |
Goodwill | 102.3 | 102.3 |
Other Assets | 46.5 | 43.5 |
Total assets | 2,288.20 | 2,329.90 |
Current Liabilities: | ||
Notes payable and current portion of long-term debt | 71.1 | 74.5 |
Accounts payable | 32.4 | 37.6 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 2.1 | 3.6 |
Accrued interest | 3.3 | 5.7 |
Deferred revenue | 1.7 | 16.5 |
Indemnity holdback related to Grace acquisition | 9.3 | 9.3 |
Accrued and other liabilities | 28.6 | 35.8 |
Total current liabilities | 148.5 | 183 |
Long-term Liabilities: | ||
Long-term debt | 589.7 | 631.5 |
Deferred income taxes | 205.8 | 194 |
Accrued pension and postretirement benefits | 54.7 | 54.8 |
Other non-current liabilities | 50.5 | 51.8 |
Total long-term liabilities | 900.7 | 932.1 |
Commitments and Contingencies (Note 3) | ||
Equity: | ||
Common stock | 1,147.70 | 1,147.30 |
Accumulated other comprehensive loss | -43.9 | -44.4 |
Retained earnings | 123.7 | 101 |
Total A&B Shareholders' equity | 1,227.50 | 1,203.90 |
Noncontrolling interest | 11.5 | 10.9 |
Total equity | 1,239 | 1,214.80 |
Total liabilities and equity | $2,288.20 | $2,329.90 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Cash Flows [Abstract] | ||
Cash Flows from (used in) Operating Activities: | $26.80 | ($29.40) |
Cash Flows from Investing Activities: | ||
Capital expenditures for property, plant and equipment | -8.6 | -8.5 |
Proceeds from investment tax credits and grants related to Port Allen Solar Farm | 0 | 3.5 |
Proceeds from disposal of property and other assets | 5.1 | 0.4 |
Proceeds from disposals related to 1031 commercial property transactions | 4.6 | 69.4 |
Payments for purchases of investments in affiliates | -11.1 | -5 |
Proceeds from investments in affiliates | 33.4 | 0.5 |
Change in restricted cash associated with 1031 transactions | 0 | -2.8 |
Net cash provided by investing activities | 23.4 | 57.5 |
Cash Flows from Financing Activities: | ||
Proceeds from issuances of long-term debt | 20 | 45 |
Payments of long-term debt and deferred financing costs | -68.5 | -11 |
Proceeds (payments) from line-of-credit agreements, net | 3.3 | -58 |
Dividends paid | -3.6 | -1.9 |
Proceeds from issuance (repurchase) of capital stock and other, net | -0.8 | 0 |
Net cash used in financing activities | -49.6 | -25.9 |
Cash and Cash Equivalents: | ||
Net increase for the period | 0.6 | 2.2 |
Balance, beginning of period | 2.8 | 3.3 |
Balance, end of period | 3.4 | 5.5 |
Other Cash Flow Information: | ||
Interest paid | -9.7 | -9.8 |
Income taxes paid | 0 | -3.5 |
Other Non-cash Information: | ||
Capital expenditures included in accounts payable and accrued expenses | $4.20 | $1.20 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Equity (USD $) | Total | A&B Share- holders' Equity | Non- controlling interest |
In Millions, unless otherwise specified | |||
Beginning balance at Dec. 31, 2013 | $1,168.70 | $1,159.80 | $8.90 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | 35.4 | 35 | 0.4 |
Other comprehensive income, net of tax | 1 | 1 | |
Dividends paid on common stock | -1.9 | -1.9 | |
Share-based compensation | 1.2 | 1.2 | |
Shares issued or repurchased, net | -1.3 | -1.3 | |
Excess tax benefit from share-based awards | 1.2 | 1.2 | |
Ending balance at Mar. 31, 2014 | 1,204.30 | 1,195 | 9.3 |
Beginning balance at Dec. 31, 2014 | 1,214.80 | 1,203.90 | 10.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | 25.9 | 25.3 | 0.6 |
Other comprehensive income, net of tax | 0.5 | 0.5 | |
Dividends paid on common stock | -2.5 | -2.5 | |
Share-based compensation | 1.2 | 1.2 | |
Shares issued or repurchased, net | -1.1 | -1.1 | |
Excess tax benefit from share-based awards | 0.2 | 0.2 | |
Ending balance at Mar. 31, 2015 | $1,239 | $1,227.50 | $11.50 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business. A&B is headquartered in Honolulu and operates four segments: Real Estate Development and Sales; Real Estate Leasing; Agribusiness; and Materials and Construction. |
Real Estate Development and Sales: The Real Estate Development and Sales segment generates its revenues through the investment in and development and sale of land and commercial and residential properties in Hawaii and through the sale of properties in the Company's Leasing portfolio. | |
Real Estate Leasing: The Real Estate Leasing segment owns, operates and manages retail, office and industrial properties in Hawaii and on the Mainland. The Real Estate Leasing segment also leases urban land in Hawaii to third-party lessees. | |
Agribusiness: The Agribusiness segment produces bulk raw sugar, specialty food grade sugars and molasses; produces and sells specialty food-grade sugars; provides general trucking services, equipment maintenance and repair services; leases agricultural land to third parties; and generates and sells electricity to the extent not used in A&B’s Agribusiness operations. | |
Materials and Construction: The Materials and Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate; produces and sells construction materials; provides and sells various construction- and traffic-control-related products. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation. The 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 U.S. generally accepted accounting principles (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, 2014 and 2013, and the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2014 and the notes thereto included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2014, and other subsequent filings with the SEC. |
Revisions of prior period financial statements: In the first quarter of 2014, the Company recorded an out-of-period 2013 adjustment to income taxes, which had the effect of increasing income tax expense and reducing net income and income from continuing operations by $1.6 million, or approximately $0.03 per diluted share. In the course of preparing the Company’s financial statements for the year ended December 31, 2014, the Company identified immaterial misstatements in certain deferred tax accounts related to prior periods. In connection with the correction of these misstatements, which were reflected in the Company's 2014 Form 10-K, the Company also corrected for the 2013 out-of-period income tax adjustment by retroactively adjusting income taxes for the first quarter of 2014, which increased net income and income from continuing operations by $1.6 million, or approximately $0.03 per diluted share, from the results previously reported in the Company's Form 10-Q for the quarter ended March 31, 2014. The impact of the adjustments had no impact on pre-tax income or cash flows from operating, investing or financing activities. | |
Rounding: Amounts in the condensed consolidated financial statement and Notes are rounded to the nearest tenth of a million, but per-share calculations and percentages were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments, Guarantees and Contingencies | Commitments, Guarantees and Contingencies: Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet, excluding lease commitments that are disclosed in Note 10 of the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2014, included the following (in millions) as of March 31, 2015: | |||
Standby letters of credit | $ | 12 | ||
Bonds related to real estate and construction* | $ | 339.1 | ||
* | Represents bonds related to construction and real estate activities in Hawaii, and include construction bonds issued by third party sureties (bid, performance, and payment bonds) and commercial bonds issued by third party sureties (permit, subdivision, license, and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds have been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. | |||
Indemnity Agreements: For certain real estate joint ventures, the Company may be obligated under bond indemnities to complete construction of the real estate development if the joint venture does not perform. These indemnities are designed to protect the surety in exchange for the issuance of surety bonds that cover joint venture construction activities, such as project amenities, roads, utilities, and other infrastructure, at its joint ventures. Under the indemnities, the Company and its joint venture partners agree to indemnify the surety bond issuer from all losses and expenses arising from the failure of the joint venture to complete the specified bonded construction. The maximum potential amount of aggregate future payments is a function of the amount covered by outstanding bonds at the time of default by the joint venture, reduced by the amount of work completed to date. The recorded amounts of the indemnity liabilities were not material individually or in the aggregate. | ||||
Other Obligations: In the first quarter of 2015, The Company's Club Villas joint venture (Kauai) amended its construction loan to increase the maximum commitment to $21 million to finance the construction of up to ten units, seven of which have been pre-sold under binding sales contracts. The Company and its joint venture partner each provided a separate limited loan guaranty of $7 million on a several basis, and a completion guaranty. The Company has determined that the fair value of its obligation under the guaranties is not material, and as of March 31, 2015, the Company had not paid or accrued any amounts under the guaranties. | ||||
Other than the obligation described above and those described in the Company's 2014 Form 10-K, obligations of the Company’s non-consolidated joint ventures do not have recourse to the Company and the Company’s “at-risk” amounts are limited to its investment. | ||||
Legal Proceedings and Other Contingencies: A&B owns 16,000 acres of watershed lands in East Maui that supply a significant portion of the irrigation water used by Hawaiian Commercial & Sugar Company (“HC&S”), a division of A&B that produces raw sugar. A&B also held four water licenses to another 30,000 acres owned by the State of Hawaii in East Maui which, over the last ten years, have supplied approximately 56 percent of the irrigation water used by HC&S. The last of these water license agreements expired in 1986, and all four agreements were then extended as revocable permits that were renewed annually. In 2001, a request was made to the State Board of Land and Natural Resources (the “BLNR”) to replace these revocable permits with a long-term water lease. Pending the conclusion by the BLNR of this contested case hearing on the request for the long-term lease, the BLNR has kept the existing permits on a holdover basis. A third party filed a lawsuit on April 10, 2015 alleging that the BLNR has been renewing the revocable permits annually rather than keeping them in holdover status, and that the BLNR unlawfully failed to conduct an environmental assessment for the renewals. The lawsuit seeks a court order voiding the revocable permits and requiring preparation of an environmental assessment of the renewals. If the Company is not permitted to utilize sufficient quantities of stream waters from State lands in East Maui, it could have a material adverse effect on the Company’s sugar-growing operations. | ||||
In addition, on May 24, 2001, petitions were filed by a third party, requesting that the Commission on Water Resource Management of the State of Hawaii (“Water Commission”) establish interim instream flow standards (“IIFS”) in 27 East Maui streams that feed the Company’s irrigation system. On September 25, 2008, the Water Commission took action on eight of the petitions, resulting in some quantity of water being returned to the streams rather than being utilized for irrigation purposes. In May 2010, the Water Commission took action on the remaining 19 streams resulting in additional water being returned to the streams. A petition requesting a contested case hearing to challenge the Water Commission’s decisions was filed with the Commission by the opposing third party. On October 18, 2010, the Water Commission denied the petitioner’s request for a contested case hearing. On November 17, 2010, the petitioner filed an appeal of the Water Commission’s denial to the Hawaii Intermediate Court of Appeals. On August 31, 2011, the Hawaii Intermediate Court of Appeals dismissed the petitioner’s appeal. On November 29, 2011, the petitioner appealed the Hawaii Intermediate Court of Appeals’ dismissal to the Hawaii Supreme Court. On January 11, 2012, the Hawaii Supreme Court vacated the Hawaii Intermediate Court of Appeals’ dismissal of the petitioner’s appeal and remanded the appeal back to the Intermediate Court of Appeals. On November 30, 2012, the Intermediate Court of Appeals remanded the case back to the Water Commission, ordering the Commission to grant the petitioner’s request for a contested case hearing. On July 17, 2013, the Commission authorized the appointment of a hearings officer for the contested case hearing. On August 20, 2014, the Commission expanded the scope of the contested case hearing to encompass all 27 petitions for amendment of the IIFS for East Maui streams, including the eight petitions that the Commission previously acted upon in 2008. The evidentiary phase of the hearing before the Commission-appointed hearings officer was completed on April 2, 2015, and the final decision of the Commission is not expected until 2016. | ||||
Water loss that may result from the Water Commission’s future decisions will impose challenges to the Company’s sugar growing operations. Water loss will result in a combination of future suppression of sugar yields and negative financial impacts on the Company that will only be quantifiable over time. Accordingly, the Company is unable to predict, at this time, the total impact of the water proceedings. | ||||
On June 25, 2004, two organizations filed a petition with the Water Commission to establish IIFS for four streams in West Maui to increase the amount of water to be returned to these streams. The West Maui irrigation system provided approximately 14 percent of the irrigation water used by HC&S over the last ten years. The Water Commission issued a decision in June 2010, which required the return of water in two of the four streams. In July 2010, the two organizations appealed the Water Commission’s decision to the Hawaii Intermediate Court of Appeals. On June 23, 2011, the case was transferred to the Hawaii Supreme Court. On August 15, 2012, the Hawaii Supreme Court overturned the Water Commission's decision and remanded the case to the Water Commission for further consideration in connection with the establishment of the IIFS. On April 4, 2014, the parties entered into a settlement on the amount of water to be returned to the four streams, and the Water Commission approved the settlement on April 17, 2014. | ||||
In January 2013, the Environmental Protection Agency (“EPA”) finalized nationwide standards for controlling hazardous air pollutant emissions from industrial, commercial, institutional boilers and process heaters (the “Boiler MACT” rule), which apply to Hawaiian Commercial & Sugar Company's (“HC&S”) three boilers at the Puunene Sugar Mill. Compliance with the Boiler MACT rule is required by January 2016. The Company anticipates that the Puunene Mill boilers will be able to meet the new emissions limits without significant modifications and that compliance costs will be less than $1 million, based on currently available information. The Company is currently developing strategies for achieving compliance with the new regulations, including identifying required upgrades to boiler and air pollution control instrumentation and developing the complex compliance monitoring approaches necessary to accommodate the facility’s multi-fuel operations. There remains significant uncertainty as to the final requirements of the Boiler MACT rule, pending an EPA response to various petitions for reconsideration and ongoing litigation. Any resulting changes to the Boiler MACT rule could adversely impact the Company’s compliance schedule or cost of compliance. | ||||
On June 24, 2014, the Hawaii State Department of Health (“DOH”) Clean Air Branch issued a Notice and Finding of Violation and Order (“NFVO”) to HC&S alleging various violations relating to the operation of HC&S’s three boilers at its sugar mill. The DOH reviewed a five-year period (2009-2013) and alleged violations relating primarily to periods of excess visible emissions and operation of the wet scrubbers installed to control particulate matter emissions from the boiler stacks. All incidents were self-reported by HC&S to the DOH prior to the DOH’s review, and there is no indication that these deviations resulted in any violation of health-based air quality standards. The NFVO includes an administrative penalty of $1.3 million, which HC&S has contested. The Company is unable to predict, at this time, the outcome or financial impact of the NFVO, but does not believe that the financial impact of the NFVO will be material to its financial position, cash flows or results of operations. | ||||
A&B is a party to, or may be contingently liable in connection with, other legal actions arising in the normal conduct of its businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on A&B’s condensed consolidated financial statements as a whole. |
Earnings_Per_Share_EPS
Earnings Per Share (“EPSâ€) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share (“EPSâ€) | Earnings Per Share (“EPS”): The following table provides a reconciliation of income from continuing operations to income from continuing operations attributable to A&B (in millions): | |||||||
Quarter Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Income from continuing operations, net of tax | $ | 25.9 | $ | 1.1 | ||||
Noncontrolling interest | (0.6 | ) | (0.4 | ) | ||||
Income from continuing operations attributable to A&B shareholders, net of tax | $ | 25.3 | $ | 0.7 | ||||
The number of shares used to compute basic and diluted earnings per share is as follows (in millions): | ||||||||
Quarter Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Denominator for basic EPS – weighted average shares | 48.8 | 48.7 | ||||||
Effect of dilutive securities: | ||||||||
Employee/director stock options and restricted stock units | 0.5 | 0.5 | ||||||
Denominator for diluted EPS – weighted average shares | 49.3 | 49.2 | ||||||
Basic earnings per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares, if any, that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of common stock include non-qualified stock options, time-based restricted stock units and performance share units. The vesting of performance share units is contingent upon the achievement of relative total shareholder return metrics. Prior to vesting, if all necessary conditions would have been satisfied by the end of the reporting period (as if the end of the reporting period were deemed to be the end of the performance measurement period), the dilutive effect of the performance share units, if any, is included in the computation of diluted EPS using the treasury stock method. | ||||||||
During the three month period ended March 31, 2015 and 2014, there were no anti-dilutive securities outstanding. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The fair values of receivables and short-term borrowings approximate their carrying values due to the short-term nature of the instruments. The Company’s cash and cash equivalents, consisting principally of cash on deposit, may from time to time include short-term money markets funds. The fair values of these money market funds, based on market prices (level 2), approximate their carrying values due to their short-maturities. The carrying amount and fair value of the Company’s long-term debt at March 31, 2015 was $660.8 million and $681.5 million, respectively, and $706.0 million and $729.6 million at December 31, 2014, respectively. The fair value of long-term debt is calculated by discounting the future cash flows of the debt at rates based on instruments with similar risk, terms and maturities as compared to the Company’s existing debt arrangements (level 2). |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories. Sugar inventories are stated at the lower of cost (first-in, first-out basis) or market value. Materials and supplies and Materials and Construction segment inventory are stated at the lower of cost (principally average cost, first-in, first-out basis) or market value. | |||||||
Inventories at March 31, 2015 and December 31, 2014 were as follows (in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Sugar inventories | $ | 6.3 | $ | 23.3 | ||||
Work in process - sugar | 24.6 | — | ||||||
Asphalt | 20.4 | 21.3 | ||||||
Processed rock, portland cement, and sand | 14.6 | 15.7 | ||||||
Work in process | 3 | 2.8 | ||||||
Retail merchandise | 1.6 | 1.5 | ||||||
Parts, materials and supplies inventories | 14.6 | 17.3 | ||||||
Total | $ | 85.1 | $ | 81.9 | ||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Share-Based Compensation | Share-Based Compensation. Under the 2012 Plan, which provides for grants of equity-based incentive compensation, 4.3 million shares of common stock were initially reserved for issuance, and as of March 31, 2015, 1,292,362 shares of the Company’s common stock remained available for future issuance, which is reflective of a 2.7 million share reduction for outstanding equity awards replaced in the separation transaction from Matson, Inc. in 2012. 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 in private transactions. | ||||||||||||
Activity in the Company’s stock option plans in 2015 was as follows (in thousands, except weighted average exercise price and weighted average contractual life): | |||||||||||||
2012 | Weighted | Weighted | Aggregate | ||||||||||
Plan | Average | Average | Intrinsic | ||||||||||
Exercise | Contractual | Value | |||||||||||
Price | Life | ||||||||||||
Outstanding, January 1, 2015 | 1,124.60 | $ | 18.84 | ||||||||||
Exercised | (23.9 | ) | $ | 20.16 | |||||||||
Outstanding, March 31, 2015 | 1,100.70 | $ | 18.81 | 4.3 | $ | 26,600 | |||||||
Exercisable, March 31, 2015 | 1,100.70 | $ | 18.81 | 4.3 | $ | 26,600 | |||||||
The following table summarizes non-vested restricted stock unit activity through March 31, 2015 (in thousands, except weighted average grant-date fair value amounts): | |||||||||||||
2012 | Weighted | ||||||||||||
Plan | Average | ||||||||||||
Restricted | Grant-Date | ||||||||||||
Stock | Fair Value | ||||||||||||
Units | |||||||||||||
Outstanding, January 1, 2015 | 279 | $ | 33.76 | ||||||||||
Granted | 109.5 | $ | 40.76 | ||||||||||
Vested | (111.6 | ) | $ | 32.34 | |||||||||
Canceled | (0.3 | ) | $ | 39.59 | |||||||||
Outstanding, March 31, 2015 | 276.6 | $ | 37.1 | ||||||||||
A portion of the restricted stock unit awards are time-based awards that vest ratably over three years. The remaining portion of the awards represents market-based awards that cliff vest after two or three years, provided that the total shareholder return of the Company’s common stock over the relevant measurement period meets or exceeds pre-defined levels of relative total shareholder returns of the Standard & Poor’s MidCap 400 index and the Russell 2000 index. | |||||||||||||
The fair value of the Company’s time-based awards is determined using the Company’s stock price on the date of grant. The fair value of the Company’s market-based awards is estimated using the Company’s stock price on the date of grant and the probability of vesting using a Monte Carlo simulation with the following weighted average assumptions: | |||||||||||||
2015 Grants | 2014 Grants | ||||||||||||
Volatility of A&B common stock | 29.50% | 25.40% | |||||||||||
Average volatility of peer companies | 34.20% | 27.30% | |||||||||||
Risk-free interest rate | 0.70% | 0.40% | |||||||||||
A summary of compensation cost related to share-based payments is as follows (in millions): | |||||||||||||
Quarter Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Share-based expense (net of estimated forfeitures): | |||||||||||||
Stock options | $ | — | $ | 0.2 | |||||||||
Restricted stock units | 1.2 | 1 | |||||||||||
Total share-based expense | 1.2 | 1.2 | |||||||||||
Total recognized tax benefit | (0.3 | ) | (0.3 | ) | |||||||||
Share-based expense (net of tax) | $ | 0.9 | $ | 0.9 | |||||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Discontinued Operations | Discontinued Operations. In the first quarter of 2015, the Company sold a 46,500 square foot retail property in Colorado that was not classified as discontinued operations pursuant to Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). The Company sold a retail property on Maui whose revenues and expenses were classified as discontinued operations because the sale met the conditions for classification as discontinued operations for 2014. | |||||||
The revenue, operating profit, income tax expense and after-tax effects of sales treated as discontinued operations were as follows (in millions): | ||||||||
Quarter Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Proceeds from the sale of income-producing properties | $ | — | $ | 70.1 | ||||
Real estate leasing revenue | — | 0.3 | ||||||
$ | — | $ | 70.4 | |||||
Gain on sale of income-producing properties | $ | — | $ | 55.9 | ||||
Real estate leasing operating profit | — | 0.3 | ||||||
Total operating profit before taxes | — | 56.2 | ||||||
Income tax expense | — | 21.9 | ||||||
Income from discontinued operations | $ | — | $ | 34.3 | ||||
Pension_and_Postretirement_Pla
Pension and Post-retirement Plans | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Pension and Post-retirement Plans | Pension and Post-retirement Plans. The Company has defined benefit pension plans that cover substantially all non-bargaining unit and certain bargaining unit employees. The Company also has unfunded non-qualified plans that provide benefits in excess of the amounts permitted to be paid under the provisions of the tax law to participants in qualified plans. In 2007, the Company changed the traditional defined benefit pension plan formula for new non-bargaining unit employees hired after January 1, 2008 and replaced it with a cash balance defined benefit pension plan formula. Subsequently, effective January 1, 2012, the Company froze the benefits under its traditional defined benefit plans for non-bargaining unit employees hired before January 1, 2008 and replaced the benefit with the same cash balance defined benefit pension plan formula provided to those employees hired after January 1, 2008. Retirement benefits under the cash balance pension plan formula are based on a fixed percentage of employee eligible compensation, plus interest. The plan interest credit rate will vary from year-to-year based on the ten-year U.S. Treasury rate. | |||||||||||||||
The assumptions related to discount rates, expected long-term rates of return on invested plan assets, salary increases, age, mortality and health care cost trend rates, along with other factors, are used in determining the assets, liabilities and expenses associated with pension benefits. Management reviews the assumptions annually with its independent actuaries, taking into consideration existing and future economic conditions and the Company’s intentions with respect to these plans. Management believes that its assumptions and estimates are reasonable. Different assumptions, however, could result in material changes to the assets, obligations and costs associated with benefit plans. | ||||||||||||||||
The components of net periodic benefit cost recorded for the three months ended March 31, 2015 and 2014 were as follows (in millions): | ||||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 0.8 | $ | 0.7 | $ | — | $ | 0.1 | ||||||||
Interest cost | 2.3 | 1.9 | 0.2 | 0.1 | ||||||||||||
Expected return on plan assets | (2.7 | ) | (2.7 | ) | — | — | ||||||||||
Amortization of prior service credit | (0.2 | ) | (0.2 | ) | — | — | ||||||||||
Amortization of net loss | 1 | 1.9 | 0.1 | 0.1 | ||||||||||||
Net periodic benefit cost | $ | 1.2 | $ | 1.6 | $ | 0.3 | $ | 0.3 | ||||||||
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements. |
In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in ASU 2015-03 are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income. The changes in accumulated other comprehensive income by component for the three months ended March 31, 2015 were as follows (in millions, net of tax): | ||||||||
Pension and Postretirement Plans | |||||||||
Three Months Ended March 31, 2015 | |||||||||
Beginning balance | $ | 44.4 | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | (0.5 | ) | |||||||
Ending balance | $ | 43.9 | |||||||
The reclassifications of other comprehensive income components out of accumulated other comprehensive income for the three and three months ended March 31, 2015 and 2014 were as follows (in millions): | |||||||||
Three Months Ended March 31, | |||||||||
Details about Accumulated Other Comprehensive Income Components | 2015 | 2014 | |||||||
Amortization of defined benefit pension items reclassified to net periodic pension cost: | |||||||||
Net loss* | $ | 1.1 | 1.9 | ||||||
Prior service credit* | (0.3 | ) | (0.3 | ) | |||||
Total before income tax | 0.8 | 1.6 | |||||||
Income taxes | (0.3 | ) | (0.6 | ) | |||||
Other comprehensive income net of tax | $ | 0.5 | $ | 1 | |||||
* | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes. The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments are applied in the calculation of tax credits, tax benefits and deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse. Adjustments may be required to deferred tax assets and deferred tax liabilities due to changes in tax laws and audit adjustments by tax authorities. To the extent adjustments are required in any given period, the adjustments would be included within the tax provision in the condensed consolidated statements of income or balance sheet. |
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Application of these provisions will require the Company to file a tax accounting method change with the IRS and record a cumulative adjustment. | |
The company is subject to taxation by the United States and various state and local jurisdictions. As of March 31, 2015, the Company’s tax years 2012 and 2013 are open to examination by the tax authorities. In addition, tax years 2011 and 2012, for which the Company was included in the consolidated tax group with Matson, are open to examination by the tax authorities in the company’s material jurisdictions. In addition, the 2010 tax year is also open to examination by California. The Company is not currently under examination by any tax authorities. |
Investment_in_Affiliates
Investment in Affiliates | 3 Months Ended |
Mar. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates | Investment in Affiliates. At March 31, 2015, investments in affiliates consisted principally of equity investments in limited liability companies. The Company has the ability to exercise significant influence over the operating and financial policies of these investments and, accordingly, accounts for its investments using the equity method of accounting. The Company’s operating results include its share of net earnings from its equity method investments. For the three months ended March 31, 2015, the financial results reported by a significant joint venture were $242.3 million for operating revenue and $32.2 million for operating income, income from continuing operations, and net income. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Derivative Instruments | Derivative Instruments. The Company is exposed to interest rate risk related to its floating rate debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed and floating rate debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk. | |||||||
The Company measures its interest rate swaps at fair value. The fair values of the Company's interest rate swaps (Level 2) are determined based on discounted cash flow analysis, reflecting the terms of the contracts, and utilize observable inputs such as interest rates and yield curves. | ||||||||
As of March 31, 2015, the Company had a gross notional amount of $19.9 million related to interest rate swaps that were assumed in connection with 2013 acquisitions, in which the floating rates were swapped for fixed rates. The table below presents the fair value of derivative financial instruments, which are included in Other non-current liabilities in the condensed consolidated balance sheets (in millions): | ||||||||
As of March 31, | As of December 31, | |||||||
2015 | 2014 | |||||||
Interest rate swap liability - floating to fixed rate | $ | 3 | $ | 2.9 | ||||
The amount of expense the Company recorded in Interest income and other in the condensed consolidated statements of income for the change in the fair values of the interest rate swaps was not material in 2014 or 2015. |
Segment_Results
Segment Results | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Results | Segment Results. Segment results for the three months ended March 31, 2015 and 2014 were as follows (in millions): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Real Estate1: | ||||||||
Leasing | $ | 32.7 | $ | 31.2 | ||||
Development and sales | 36.5 | 71 | ||||||
Less amounts reported in discontinued operations | — | (70.4 | ) | |||||
Materials and construction | 56.9 | 50.1 | ||||||
Agribusiness | 28.9 | 12.9 | ||||||
Reconciling item2 | (4.3 | ) | — | |||||
Total revenue | $ | 150.7 | $ | 94.8 | ||||
Operating Profit, Net Income: | ||||||||
Real Estate1: | ||||||||
Leasing | $ | 13.2 | $ | 11.8 | ||||
Development and sales | 32 | 52.3 | ||||||
Less amounts reported in discontinued operations | — | (56.2 | ) | |||||
Materials and construction | 7.2 | 3.4 | ||||||
Agribusiness | 1.9 | 3 | ||||||
Total operating profit | 54.3 | 14.3 | ||||||
Interest expense | (7.1 | ) | (7.2 | ) | ||||
General corporate expenses | (5.6 | ) | (5.2 | ) | ||||
Reduction in KRS II carrying value | (0.1 | ) | — | |||||
Income from continuing operations before income taxes | 41.5 | 1.9 | ||||||
Income tax expense | 15.6 | 0.8 | ||||||
Income from continuing operations | 25.9 | 1.1 | ||||||
Income from discontinued operations (net of income taxes) | — | 34.3 | ||||||
Net income | 25.9 | 35.4 | ||||||
Income attributable to noncontrolling interest | (0.6 | ) | (0.4 | ) | ||||
Net income attributable to A&B | $ | 25.3 | $ | 35 | ||||
1 | Prior year amounts recast for amounts treated as discontinued operations. | |||||||
2 | Represents the deduction of revenue from the sale of a 46,500 square foot retail property in Colorado that is classified as "Gain on sale of improved property" in the Condensed Consolidated Statements of Income, but reflected as revenue for segment reporting purposes. |
Commitments_Guarantees_and_Con1
Commitments, Guarantees and Contingencies (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments, guarantees and contingencies | Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet, excluding lease commitments that are disclosed in Note 10 of the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2014, included the following (in millions) as of March 31, 2015: | |||
Standby letters of credit | $ | 12 | ||
Bonds related to real estate and construction* | $ | 339.1 | ||
* | Represents bonds related to construction and real estate activities in Hawaii, and include construction bonds issued by third party sureties (bid, performance, and payment bonds) and commercial bonds issued by third party sureties (permit, subdivision, license, and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds have been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. |
Earnings_Per_Share_EPS_Tables
Earnings Per Share (“EPSâ€) (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of calculation of numerator and denominator in earnings per share | The following table provides a reconciliation of income from continuing operations to income from continuing operations attributable to A&B (in millions): | |||||||
Quarter Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Income from continuing operations, net of tax | $ | 25.9 | $ | 1.1 | ||||
Noncontrolling interest | (0.6 | ) | (0.4 | ) | ||||
Income from continuing operations attributable to A&B shareholders, net of tax | $ | 25.3 | $ | 0.7 | ||||
The number of shares used to compute basic and diluted earnings per share is as follows (in millions): | ||||||||
Quarter Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Denominator for basic EPS – weighted average shares | 48.8 | 48.7 | ||||||
Effect of dilutive securities: | ||||||||
Employee/director stock options and restricted stock units | 0.5 | 0.5 | ||||||
Denominator for diluted EPS – weighted average shares | 49.3 | 49.2 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventory | Inventories at March 31, 2015 and December 31, 2014 were as follows (in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Sugar inventories | $ | 6.3 | $ | 23.3 | ||||
Work in process - sugar | 24.6 | — | ||||||
Asphalt | 20.4 | 21.3 | ||||||
Processed rock, portland cement, and sand | 14.6 | 15.7 | ||||||
Work in process | 3 | 2.8 | ||||||
Retail merchandise | 1.6 | 1.5 | ||||||
Parts, materials and supplies inventories | 14.6 | 17.3 | ||||||
Total | $ | 85.1 | $ | 81.9 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of stock option activity | Activity in the Company’s stock option plans in 2015 was as follows (in thousands, except weighted average exercise price and weighted average contractual life): | ||||||||||||
2012 | Weighted | Weighted | Aggregate | ||||||||||
Plan | Average | Average | Intrinsic | ||||||||||
Exercise | Contractual | Value | |||||||||||
Price | Life | ||||||||||||
Outstanding, January 1, 2015 | 1,124.60 | $ | 18.84 | ||||||||||
Exercised | (23.9 | ) | $ | 20.16 | |||||||||
Outstanding, March 31, 2015 | 1,100.70 | $ | 18.81 | 4.3 | $ | 26,600 | |||||||
Exercisable, March 31, 2015 | 1,100.70 | $ | 18.81 | 4.3 | $ | 26,600 | |||||||
Summarizes non-vested restricted stock unit activity | The following table summarizes non-vested restricted stock unit activity through March 31, 2015 (in thousands, except weighted average grant-date fair value amounts): | ||||||||||||
2012 | Weighted | ||||||||||||
Plan | Average | ||||||||||||
Restricted | Grant-Date | ||||||||||||
Stock | Fair Value | ||||||||||||
Units | |||||||||||||
Outstanding, January 1, 2015 | 279 | $ | 33.76 | ||||||||||
Granted | 109.5 | $ | 40.76 | ||||||||||
Vested | (111.6 | ) | $ | 32.34 | |||||||||
Canceled | (0.3 | ) | $ | 39.59 | |||||||||
Outstanding, March 31, 2015 | 276.6 | $ | 37.1 | ||||||||||
Schedule of fair value assumptions for RSU's | 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: | ||||||||||||
2015 Grants | 2014 Grants | ||||||||||||
Volatility of A&B common stock | 29.50% | 25.40% | |||||||||||
Average volatility of peer companies | 34.20% | 27.30% | |||||||||||
Risk-free interest rate | 0.70% | 0.40% | |||||||||||
Summary of compensation cost related to share-based payments | A summary of compensation cost related to share-based payments is as follows (in millions): | ||||||||||||
Quarter Ended | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Share-based expense (net of estimated forfeitures): | |||||||||||||
Stock options | $ | — | $ | 0.2 | |||||||||
Restricted stock units | 1.2 | 1 | |||||||||||
Total share-based expense | 1.2 | 1.2 | |||||||||||
Total recognized tax benefit | (0.3 | ) | (0.3 | ) | |||||||||
Share-based expense (net of tax) | $ | 0.9 | $ | 0.9 | |||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Summary of revenue, operating profit, income tax expense and after-tax effects of these transactions | The revenue, operating profit, income tax expense and after-tax effects of sales treated as discontinued operations were as follows (in millions): | |||||||
Quarter Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Proceeds from the sale of income-producing properties | $ | — | $ | 70.1 | ||||
Real estate leasing revenue | — | 0.3 | ||||||
$ | — | $ | 70.4 | |||||
Gain on sale of income-producing properties | $ | — | $ | 55.9 | ||||
Real estate leasing operating profit | — | 0.3 | ||||||
Total operating profit before taxes | — | 56.2 | ||||||
Income tax expense | — | 21.9 | ||||||
Income from discontinued operations | $ | — | $ | 34.3 | ||||
Pension_and_Postretirement_Pla1
Pension and Post-retirement Plans (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Components of net periodic benefit cost | The components of net periodic benefit cost recorded for the three months ended March 31, 2015 and 2014 were as follows (in millions): | |||||||||||||||
Pension Benefits | Post-retirement Benefits | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 0.8 | $ | 0.7 | $ | — | $ | 0.1 | ||||||||
Interest cost | 2.3 | 1.9 | 0.2 | 0.1 | ||||||||||||
Expected return on plan assets | (2.7 | ) | (2.7 | ) | — | — | ||||||||||
Amortization of prior service credit | (0.2 | ) | (0.2 | ) | — | — | ||||||||||
Amortization of net loss | 1 | 1.9 | 0.1 | 0.1 | ||||||||||||
Net periodic benefit cost | $ | 1.2 | $ | 1.6 | $ | 0.3 | $ | 0.3 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Changes in accumulated other comprehensive income | The changes in accumulated other comprehensive income by component for the three months ended March 31, 2015 were as follows (in millions, net of tax): | ||||||||
Pension and Postretirement Plans | |||||||||
Three Months Ended March 31, 2015 | |||||||||
Beginning balance | $ | 44.4 | |||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | (0.5 | ) | |||||||
Ending balance | $ | 43.9 | |||||||
Reclassifications of other comprehensive income | The reclassifications of other comprehensive income components out of accumulated other comprehensive income for the three and three months ended March 31, 2015 and 2014 were as follows (in millions): | ||||||||
Three Months Ended March 31, | |||||||||
Details about Accumulated Other Comprehensive Income Components | 2015 | 2014 | |||||||
Amortization of defined benefit pension items reclassified to net periodic pension cost: | |||||||||
Net loss* | $ | 1.1 | 1.9 | ||||||
Prior service credit* | (0.3 | ) | (0.3 | ) | |||||
Total before income tax | 0.8 | 1.6 | |||||||
Income taxes | (0.3 | ) | (0.6 | ) | |||||
Other comprehensive income net of tax | $ | 0.5 | $ | 1 | |||||
* | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Fair value of derivative financial instruments | The table below presents the fair value of derivative financial instruments, which are included in Other non-current liabilities in the condensed consolidated balance sheets (in millions): | |||||||
As of March 31, | As of December 31, | |||||||
2015 | 2014 | |||||||
Interest rate swap liability - floating to fixed rate | $ | 3 | $ | 2.9 | ||||
Segment_Results_Tables
Segment Results (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment results | Segment results for the three months ended March 31, 2015 and 2014 were as follows (in millions): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Real Estate1: | ||||||||
Leasing | $ | 32.7 | $ | 31.2 | ||||
Development and sales | 36.5 | 71 | ||||||
Less amounts reported in discontinued operations | — | (70.4 | ) | |||||
Materials and construction | 56.9 | 50.1 | ||||||
Agribusiness | 28.9 | 12.9 | ||||||
Reconciling item2 | (4.3 | ) | — | |||||
Total revenue | $ | 150.7 | $ | 94.8 | ||||
Operating Profit, Net Income: | ||||||||
Real Estate1: | ||||||||
Leasing | $ | 13.2 | $ | 11.8 | ||||
Development and sales | 32 | 52.3 | ||||||
Less amounts reported in discontinued operations | — | (56.2 | ) | |||||
Materials and construction | 7.2 | 3.4 | ||||||
Agribusiness | 1.9 | 3 | ||||||
Total operating profit | 54.3 | 14.3 | ||||||
Interest expense | (7.1 | ) | (7.2 | ) | ||||
General corporate expenses | (5.6 | ) | (5.2 | ) | ||||
Reduction in KRS II carrying value | (0.1 | ) | — | |||||
Income from continuing operations before income taxes | 41.5 | 1.9 | ||||||
Income tax expense | 15.6 | 0.8 | ||||||
Income from continuing operations | 25.9 | 1.1 | ||||||
Income from discontinued operations (net of income taxes) | — | 34.3 | ||||||
Net income | 25.9 | 35.4 | ||||||
Income attributable to noncontrolling interest | (0.6 | ) | (0.4 | ) | ||||
Net income attributable to A&B | $ | 25.3 | $ | 35 | ||||
1 | Prior year amounts recast for amounts treated as discontinued operations. |
Description_of_Business_Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
Real Estate Development and Sales | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Real Estate Leasing | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Agribusiness | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Materials and Construction | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
The effect to current period income tax expense and net income due to out of period adjustment | $1.60 | |
Tax effect per diluted share (in dollars per share) | $0.03 | |
Income from continuing operations, net of tax | 25.9 | 1.1 |
Out of Period Tax Adjustments | ||
Income from continuing operations, net of tax | $1.60 |
Commitments_Guarantees_and_Con2
Commitments, Guarantees and Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2015 | Jun. 24, 2014 | Jul. 31, 2010 | Jun. 30, 2010 | Jun. 25, 2004 | Aug. 20, 2014 | 31-May-10 | Sep. 25, 2008 | 24-May-01 | ||
Boiler | Organization | Petition | Stream | Petition | Petition | Petition | Stream | |||
Organization | ||||||||||
Petitions Filed Requesting IIFS In West Maui Streams | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Period provided by irrigation system | 10 years | |||||||||
Number of streams for which IIFS was requested | 4 | |||||||||
Number of petitions on which the Water Commission took action | 2 | |||||||||
Number of organizations that filed a petition to establish IIFS | 2 | 2 | ||||||||
Approximate percentage of irrigation water provided by the West Maui irrigation system (in percent) | 14.00% | |||||||||
Standby letters of credit | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Maximum amount of possible loss contingency | 12,000,000 | |||||||||
Performance and customs bonds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Maximum amount of possible loss contingency | 339,100,000 | [1] | ||||||||
Long Term Water Lease Request | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Watershed lands in East Maui owned (in acres) | 16,000 | |||||||||
Number of water licenses held and extended as revocable permits | 4 | |||||||||
Additional watershed lands accessible by licenses (in acres) | 30,000 | |||||||||
Capacity of irrigation water supplied by additional watershed lands (in percent) | 56.00% | |||||||||
Petitions Filed Requesting IIFS In East Maui Streams | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of streams for which IIFS was requested | 27 | |||||||||
Number of petitions on which the Water Commission took action | 27 | 19 | 8 | |||||||
Environmental Protection Agency | Unfavorable Regulatory Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Maximum amount of possible loss contingency | 1,000,000 | |||||||||
Hawaii State Department of Health | Unfavorable Regulatory Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of boilers not compliant | 3 | |||||||||
Number of periods of alleged violations | 5 years | |||||||||
Possible administrative penalty | 1,300,000 | |||||||||
Club Villas Joint Venture | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Construction loan amount | 21,000,000 | |||||||||
Number of units in real estate property | 10 | |||||||||
Number of units pre-sold | 7 | |||||||||
Payment Guarantee | Club Villas Joint Venture | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Guarantor obligations, maximum exposure amount | 7,000,000 | |||||||||
[1] | Represents bonds related to construction and real estate activities in Hawaii, and include construction bonds issued by third party sureties (bid, performance, and payment bonds) and commercial bonds issued by third party sureties (permit, subdivision, license, and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds have been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. |
Earnings_Per_Share_EPS_Details
Earnings Per Share (“EPSâ€) (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Income from continuing operations, net of tax | $25.90 | $1.10 |
Income attributable to noncontrolling interest | -0.6 | -0.4 |
Income from continuing operations attributable to A&B shareholders, net of tax | $25.30 | $0.70 |
Shares used to compute basic and diluted earnings per share [Abstract] | ||
Denominator for basic EPS - weighted average shares (in shares) | 48,800,000 | 48,700,000 |
Effect of dilutive securities [Abstract] | ||
Employee/director stock options and restricted stock units (in shares) | 500,000 | 500,000 |
Denominator for diluted EPS - weighted average shares (in shares) | 49,300,000 | 49,200,000 |
Anti-dilutive securities excluded from the computation of weighted average dilutive shares outstanding (in shares) | 0 | 0 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Carrying Amount | ||
Fair Value Measuremnt of Long-term Debt [Line Items] | ||
Long-term debt value | $660.80 | $706 |
Fair Value | ||
Fair Value Measuremnt of Long-term Debt [Line Items] | ||
Long-term debt value | $681.50 | $729.60 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Inventories | $85.10 | $81.90 |
Sugar inventories | ||
Inventory [Line Items] | ||
Inventories | 6.3 | 23.3 |
Work in process - sugar | ||
Inventory [Line Items] | ||
Inventories | 24.6 | 0 |
Asphalt | ||
Inventory [Line Items] | ||
Inventories | 20.4 | 21.3 |
Processed rock, portland cement, and sand | ||
Inventory [Line Items] | ||
Inventories | 14.6 | 15.7 |
Work in process | ||
Inventory [Line Items] | ||
Inventories | 3 | 2.8 |
Retail merchandise | ||
Inventory [Line Items] | ||
Inventories | 1.6 | 1.5 |
Parts, materials and supplies inventories | ||
Inventory [Line Items] | ||
Inventories | $14.60 | $17.30 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) | 3 Months Ended |
Mar. 31, 2015 | |
2012 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance (in shares) | 4,300,000 |
Stock available for future issuance (in shares) | 1,292,362 |
Options granted in period (in shares) | 2,700,000 |
Time-Based Vesting | Restricted Stock Units (RSUs) | 2012 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Two years | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Three years | Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
ShareBased_Compensation_Activi
Share-Based Compensation - Activity of stock option plans (Details) (Stock Options, 2012 Plan, USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Stock Options | 2012 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, beginning balance (in shares) | 1,124,600 |
Exercised (in shares) | -23,900 |
Outstanding, ending balance (in shares) | 1,100,700 |
Exercisable (in shares) | 1,100,700 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, beginning balance (in dollars per share) | $18.84 |
Exercised (in dollars per share) | $20.16 |
Outstanding, ending balance (in dollars per share) | $18.81 |
Exercisable (in dollars per share) | $18.81 |
Weighted Average Contractual Life [Abstract] | |
Outstanding weighted average contractual life (in years) | 4 years 3 months 12 days |
Exercisable weighted average contractual life (in years) | 4 years 3 months 0 days |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Aggregate Intrinsic Value [Abstract] | |
Outstanding aggregate intrinsic value | $26.60 |
Exercisable intrinsic value | $26.60 |
ShareBased_Compensation_Activi1
Share-Based Compensation - Activity of non-vested restricted stock units (Details) (Restricted Stock Units (RSUs), 2012 Plan, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock Units (RSUs) | 2012 Plan | |
2012 Plan Restricted Stock Units [Roll Forward] | |
Outstanding, beginning balance (in shares) | 279,000 |
Granted (in shares) | 109,500 |
Vested (in shares) | -111,600 |
Canceled (in shares) | -300 |
Outstanding, ending balance (in shares) | 276,600 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding, beginning balance (in dollars per share) | $33.76 |
Granted (in dollars per share) | $40.76 |
Vested (in dollars per share) | $32.34 |
Canceled (in dollars per share) | $39.59 |
Outstanding, ending balance (in dollars per share) | $37.10 |
ShareBased_Compensation_Fair_v
Share-Based Compensation - Fair value measurement assumptions (Details) (2012 Plan, Restricted Stock Units (RSUs), Time-Based Vesting) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
2012 Plan | Restricted Stock Units (RSUs) | Time-Based Vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of A&B common stock | 29.50% | 25.40% |
Average volatility of peer companies | 34.20% | 27.30% |
Risk-free interest rate | 0.70% | 0.40% |
ShareBased_Compensation_Shareb
Share-Based Compensation - Share-based expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based expense | $1.20 | $1.20 |
Total recognized tax benefit | -0.3 | -0.3 |
Share-based expense (net of tax) | 0.9 | 0.9 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based expense | 0 | 0.2 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based expense | $1.20 | $1 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on sale of income-producing properties | $1.90 | $0 |
Income from discontinued operations | 0 | 34.3 |
Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Retail Site | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Area of real estate property sold | 46,500 | |
Discontinued Operations | Real Estate Leasing | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from the sale of income-producing properties | 0 | 70.1 |
Real estate leasing revenue | 0 | 0.3 |
Revenue from discontinued operations | 0 | 70.4 |
Gain on sale of income-producing properties | 0 | 55.9 |
Real estate leasing operating profit | 0 | 0.3 |
Total operating profit before taxes | 0 | 56.2 |
Income tax expense | 0 | 21.9 |
Income from discontinued operations | $0 | $34.30 |
Pension_and_Postretirement_Pla2
Pension and Post-retirement Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Benefits | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | $0.80 | $0.70 |
Interest cost | 2.3 | 1.9 |
Expected return on plan assets | -2.7 | -2.7 |
Amortization of prior service credit | -0.2 | -0.2 |
Amortization of net loss | 1 | 1.9 |
Net periodic benefit cost | 1.2 | 1.6 |
United States Postretirement Benefit Plans of US Entity, Defined Benefit | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 0 | 0.1 |
Interest cost | 0.2 | 0.1 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service credit | 0 | 0 |
Amortization of net loss | 0.1 | 0.1 |
Net periodic benefit cost | $0.30 | $0.30 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||
Pension and postretirement plans, Beginning balance | $44.40 | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | -0.5 | |||
Pension and postretirement plans, Ending balance | 43.9 | |||
Amortization of defined benefit pension items reclassified to net periodic pension cost: | ||||
Net loss | 1.1 | [1] | 1.9 | [1] |
Prior service credit | -0.3 | [1] | -0.3 | [1] |
Total before income tax | 0.8 | 1.6 | ||
Income taxes | -0.3 | -0.6 | ||
Other Comprehensive Income | $0.50 | $1 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
Investment_in_Affiliates_Detai
Investment in Affiliates (Details) (Waihonua Joint Venture, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Waihonua Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Operating revenue | $242.30 |
Operating income | 32.2 |
Income from continuing operations | 32.2 |
Net income | $32.20 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Gross notional amount related to interest rate swaps | $19,900,000 | |
Other Liabilities | ||
Derivative [Line Items] | ||
Fair value of interest rate swap | $3,000,000 | $2,900,000 |
Segment_Results_Details
Segment Results (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | $150.70 | $94.80 | ||
Operating profit | 54.3 | 14.3 | ||
Interest expense | -7.1 | -7.2 | ||
General corporate expenses | 5.6 | 5.2 | ||
Reduction in KRS II carrying value | -0.1 | 0 | ||
Income From Continuing Operations Before Income Taxes | 41.5 | 1.9 | ||
Income tax expense | 15.6 | 0.8 | ||
Income From Continuing Operations | 25.9 | 1.1 | ||
Income From Discontinued Operations (net of income taxes) | 0 | 34.3 | ||
Net Income | 25.9 | 35.4 | ||
Income attributable to noncontrolling interest | -0.6 | -0.4 | ||
Net Income Attributable to A&B Shareholders | 25.3 | 35 | ||
Leasing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 32.7 | [1] | 31.2 | [1] |
Operating profit | 13.2 | [1] | 11.8 | [1] |
Development and sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 36.5 | [1] | 71 | [1] |
Operating profit | 32 | [1] | 52.3 | [1] |
Less amounts reported in discontinued operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | [1] | 70.4 | [1] |
Operating profit | 0 | [1] | 56.2 | [1] |
Materials and construction | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 56.9 | 50.1 | ||
Operating profit | 7.2 | 3.4 | ||
Agribusiness | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 28.9 | 12.9 | ||
Operating profit | 1.9 | 3 | ||
Reconciling item | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | ($4.30) | [2] | $0 | [2] |
COLORADO | Retail Site | ||||
Segment Reporting Information [Line Items] | ||||
Area of real estate property sold | 46,500 | |||
[1] | Prior year amounts recast for amounts treated as discontinued operations. | |||
[2] | Represents the deduction of revenue from the sale of a 46,500 square foot retail property in Colorado that is classified as "Gain on sale of improved property" in the Condensed Consolidated Statements of Income, but reflected as revenue for segment reporting purposes. |