Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Information | Alexander & Baldwin, Inc. |
Entity Central Index Key | 1,545,654 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 49,019,748 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Operating Revenue: | |||||
Commercial real estate | $ 32.9 | $ 33 | $ 102.3 | $ 100.5 | |
Real estate development and sales | 12.8 | 19.9 | 13.4 | 87.8 | |
Materials and construction | 52.1 | 51 | 144.8 | 165.3 | |
Agribusiness | 40.9 | 40.8 | 89.7 | 95.5 | |
Total operating revenue | 138.7 | 144.7 | 350.2 | 449.1 | |
Operating Costs and Expenses: | |||||
Cost of commercial real estate | 19.4 | 20.8 | 60.3 | 61.3 | |
Cost of real estate development and sales | 3.1 | 6.7 | 3.3 | 47.4 | |
Cost of construction contracts and materials | 41 | 40.7 | 114.9 | 134.1 | |
Cost of agribusiness revenue | 38.8 | 49.8 | 87.6 | 107.1 | |
Selling, general and administrative | 14.7 | 12.6 | 42.6 | 41.3 | |
REIT evaluation costs | 1.9 | 0 | 3.8 | 0 | |
HC&S cessation costs | 17.6 | 0 | 51.6 | 0 | |
Gain on the sale of improved property | 0 | 0 | (8) | (1.9) | |
Total operating costs and expenses | 136.5 | 130.6 | 356.1 | 389.3 | |
Operating Income (Loss) | 2.2 | 14.1 | (5.9) | 59.8 | |
Other Income and (Expense): | |||||
Income related to joint ventures | 0.1 | 2.9 | 3.5 | 30.7 | |
Reductions in solar investments | [1] | (0.2) | (0.1) | (9.7) | (1.7) |
Interest income and other | 0.5 | 0.4 | 1.6 | 0.8 | |
Interest expense | (6.4) | (6.5) | (20.1) | (20.2) | |
Income (Loss) Before Income Taxes | (3.8) | 10.8 | (30.6) | 69.4 | |
Income tax expense (benefit) | (2.4) | 3.8 | (21.6) | 26.4 | |
Net Income (Loss) | (1.4) | 7 | (9) | 43 | |
Income attributable to noncontrolling interest | (0.5) | (0.3) | (1.1) | (1.2) | |
Net Income (Loss) Attributable to A&B Shareholders | $ (1.9) | $ 6.7 | $ (10.1) | $ 41.8 | |
Earnings (Loss) Per Share (Note 4): | |||||
Basic - Net income (loss) available to A&B shareholders (in dollars per share) | $ (0.03) | $ 0.11 | $ (0.19) | $ 0.83 | |
Diluted - Net income (loss) available to A&B shareholders (in dollars per share) | $ (0.03) | $ 0.11 | $ (0.19) | $ 0.82 | |
Weighted Average Number of Shares Outstanding: | |||||
Basic (in shares) | 49 | 48.9 | 49 | 48.8 | |
Diluted (in shares) | 49 | 49.4 | 49 | 49.3 | |
Cash dividends per share (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.18 | $ 0.15 | |
[1] | Amounts represent reductions in the carrying values of the Company's solar investments. See Note 12. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (1.4) | $ 7 | $ (9) | $ 43 |
Other Comprehensive Income: | ||||
Unrealized interest rate hedging loss | 0 | 0 | (2.8) | 0 |
Reclassification adjustment for interest expense included in net loss | 0.2 | 0 | 0.2 | 0 |
Defined benefit pension plans: | ||||
Net gain (loss) and prior service cost | 0 | 0 | 0 | (0.8) |
Amortization of prior service credit included in net periodic pension cost | (0.3) | (0.4) | (0.8) | (1) |
Amortization of net loss included in net periodic pension cost | 1.9 | 1.8 | 5.6 | 5.4 |
Income taxes related to other comprehensive income | (0.8) | (0.5) | (0.7) | (1.4) |
Other Comprehensive Income | 1 | 0.9 | 1.5 | 2.2 |
Comprehensive Income (Loss) | (0.4) | 7.9 | (7.5) | 45.2 |
Comprehensive income attributable to noncontrolling interest | (0.5) | (0.3) | (1.1) | (1.2) |
Comprehensive income (loss) attributable to A&B shareholders | $ (0.9) | $ 7.6 | $ (8.6) | $ 44 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 5.8 | $ 1.3 |
Accounts and other notes receivable, net | 38.4 | 38.6 |
Contracts retention | 12.4 | 11.5 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 16.6 | 16.3 |
Inventories | 47.3 | 55.9 |
Income tax receivable | 11.5 | 14 |
Prepaid expenses and other assets | 12.6 | 14.9 |
Total current assets | 144.6 | 152.5 |
Investments in Affiliates | 430.8 | 416.4 |
Real Estate Developments | 192.6 | 183.5 |
Property – net | 1,256.1 | 1,269.4 |
Intangible Assets - net | 55.8 | 54.4 |
Goodwill | 102.3 | 102.3 |
Other Assets | 42 | 63.8 |
Total assets | 2,224.2 | 2,242.3 |
Current Liabilities: | ||
Notes payable and current portion of long-term debt | 82.4 | 90.4 |
Accounts payable | 30.1 | 35.5 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 2.7 | 2.6 |
Accrued interest | 3.9 | 5.5 |
Indemnity holdback related to Grace acquisition | 9.3 | 9.3 |
HC&S cessation related liabilities - current | 16.9 | 6.4 |
Accrued and other liabilities | 36.2 | 35 |
Total current liabilities | 181.5 | 184.7 |
Long-term Liabilities: | ||
Long-term debt | 523.9 | 496.6 |
Deferred income taxes | 184.2 | 202.1 |
Accrued pension and postretirement benefits | 58.6 | 59.7 |
Other non-current liabilities | 49.6 | 60.5 |
Total long-term liabilities | 816.3 | 818.9 |
Commitments and Contingencies (Note 3) | ||
Redeemable Noncontrolling Interest | 11.6 | 11.6 |
Equity: | ||
Common stock | 1,156.2 | 1,151.7 |
Accumulated other comprehensive loss | (43.8) | (45.3) |
Retained earnings | 98.7 | 117.2 |
Total A&B shareholders' equity | 1,211.1 | 1,223.6 |
Noncontrolling interest | 3.7 | 3.5 |
Total equity | 1,214.8 | 1,227.1 |
Total liabilities and equity | $ 2,224.2 | $ 2,242.3 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Cash Flows from Operating Activities: | $ 48.4 | $ 115.3 |
Cash Flows from Investing Activities: | ||
Capital expenditures for property, plant and equipment | (105.3) | (34.9) |
Capital expenditures related to 1031 commercial property transactions | (6.2) | (1.3) |
Proceeds from disposal of property and other assets | 11.4 | 5.1 |
Proceeds from disposals related to 1031 commercial property transactions | 59.3 | 25.2 |
Payments for purchases of investments in affiliates and investments | (36) | (22.5) |
Proceeds from investments in affiliates | 6 | 37.6 |
Change in restricted cash associated with 1031 transactions | 16.2 | (2.7) |
Net cash provided by (used in) investing activities | (54.6) | 6.5 |
Cash Flows from Financing Activities: | ||
Proceeds from issuances of long-term debt | 222 | 71 |
Payments of long-term debt and deferred financing charges | (191.1) | (182.1) |
Payments under line-of-credit, net | (11.8) | (0.4) |
Dividends paid | (8.8) | (7.4) |
Distributions to non-controlling interest | (0.5) | (1.1) |
(Tax withholding payments) proceeds from issuance of capital stock and other, net | 0.9 | (0.5) |
Net cash provided by (used in) financing activities | 10.7 | (120.5) |
Cash and Cash Equivalents: | ||
Net increase for the period | 4.5 | 1.3 |
Balance, beginning of period | 1.3 | 2.8 |
Balance, end of period | 5.8 | 4.1 |
Other Cash Flow Information: | ||
Interest paid | (22.1) | (23.3) |
Income taxes paid | 0 | (5.4) |
Non-cash Investing Activities: | ||
Land contributed into real estate joint venture | 0 | 9.6 |
Capital expenditures included in accounts payable and accrued expenses | $ 7.7 | $ 3.7 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | AOCI Attributable to Parent | Retained Earnings | Non- controlling interest |
Beginning balance, shares at Dec. 31, 2014 | 48.8 | ||||
Beginning balance at Dec. 31, 2014 | $ 1,214.8 | $ 1,147.3 | $ (44.4) | $ 101 | $ 10.9 |
Total Equity | |||||
Net (loss) income | 43 | 41.8 | 1.2 | ||
Other comprehensive income, net of tax | 2.2 | 2.2 | |||
Dividends paid on common stock | (7.4) | (7.4) | |||
Reclassification of redeemable noncontrolling interest | (8.5) | (8.5) | |||
Adjustments to redemption value of redeemable noncontrolling interest | (1.3) | (1.3) | |||
Share-based compensation | 3.4 | $ 3.4 | |||
Shares issued or repurchased, net, shares | 0.1 | ||||
Shares issued or repurchased, net | (0.4) | $ (0.4) | 0 | ||
Ending balance at Sep. 30, 2015 | 1,245.8 | $ 1,150.3 | (42.2) | 134.1 | 3.6 |
Ending balance, shares at Sep. 30, 2015 | 48.9 | ||||
Redeemable Non-Controlling Interest, beginning balance at Dec. 31, 2014 | 0 | ||||
Redeemable Non-Controlling Interest | |||||
Net (loss) income | 0 | ||||
Reclassification of redeemable noncontrolling interest | 8.5 | ||||
Adjustments to redemption value of redeemable noncontrolling interest | 1.3 | ||||
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2015 | 9.8 | ||||
Beginning balance, shares at Dec. 31, 2015 | 48.9 | ||||
Beginning balance at Dec. 31, 2015 | 1,227.1 | $ 1,151.7 | (45.3) | 117.2 | 3.5 |
Total Equity | |||||
Net (loss) income | (9.9) | (10.1) | 0.2 | ||
Other comprehensive income, net of tax | 1.5 | 1.5 | |||
Dividends paid on common stock | (8.8) | (8.8) | |||
Distributions to noncontrolling interest | 0 | ||||
Adjustments to redemption value of redeemable noncontrolling interest | 0.8 | 0.8 | |||
Share-based compensation | 3.1 | $ 3.1 | |||
Shares issued or repurchased, net, shares | 0.1 | ||||
Shares issued or repurchased, net | 1 | $ 1.4 | (0.4) | ||
Ending balance at Sep. 30, 2016 | 1,214.8 | $ 1,156.2 | $ (43.8) | $ 98.7 | $ 3.7 |
Ending balance, shares at Sep. 30, 2016 | 49 | ||||
Redeemable Non-Controlling Interest, beginning balance at Dec. 31, 2015 | 11.6 | ||||
Redeemable Non-Controlling Interest | |||||
Net (loss) income | 0.9 | ||||
Distributions to noncontrolling interest | (0.1) | ||||
Adjustments to redemption value of redeemable noncontrolling interest | (0.8) | ||||
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2016 | $ 11.6 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.18 | $ 0.15 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Alexander & Baldwin, Inc. ("A&B" or the "Company") is headquartered in Honolulu and operates four segments: Commercial Real Estate (formerly leasing); Real Estate Development and Sales; Agribusiness; and Materials and Construction. Commercial Real Estate: The Commercial Real Estate segment owns, operates and manages retail, office and industrial properties in Hawaii and on the Mainland. The Commercial Real Estate segment also leases urban land in Hawaii to third-party lessees. Real Estate Development and Sales: The Real Estate Development and Sales segment generates its revenue 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 Commercial Real Estate portfolio. Agribusiness: The Agribusiness segment produces bulk raw sugar, specialty food grade sugars and molasses; 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. On December 31, 2015, the Company determined it would cease its Hawaiian Commercial & Sugar Company ("HC&S") sugar operations on Maui upon completion of its final harvest in 2016. See Note 14, "Cessation of HC&S Operations" ("Cessation") for further discussion regarding the Cessation and the related costs associated with such exit and disposal activities. 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 rock and sand aggregate; produces and sells asphaltic concrete and ready-mix concrete; provides and sells various construction- and traffic-control-related products; and manufactures and sells precast concrete products. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The interim condensed consolidated financial statements are unaudited. Because of the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. While these condensed consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated balance sheets as of December 31, 2015 and 2014 , 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, 2015 and the notes thereto included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2015 (" 2015 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission. Rounding. Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million, but per-share calculations and percentages were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different. New Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 adopted this guidance in the first quarter of 2016. The impact of adopting the above guidance as of December 31, 2015 was as follows (in millions): Other assets Total assets Long-term debt Total liabilities and equity Previously reported $ 65.0 $ 2,243.5 $ 497.8 $ 2,243.5 Debt Issuance Costs (1.2 ) (1.2 ) (1.2 ) (1.2 ) Current presentation $ 63.8 $ 2,242.3 $ 496.6 $ 2,242.3 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, lease arrangements exceeding a twelve month term must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. ASU 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. ASU 2016-09 is effective for financial statements issued for fiscal years beginning after December 15, 2016. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) ("ASU 2016-15"). ASU 2016-15 is an update that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice of cash receipts and cash payments presentation and classification in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments, Guarantees and Contingencies: Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet, excluding lease commitments that are disclosed in Note 9 of the Company’s 2015 Form 10-K, included the following (in millions) as of September 30, 2016 : Standby letters of credit 1 $ 12.7 Bonds related to real estate and construction 2 $ 423.4 1 Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate primarily to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit has been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon. 2 Represents bonds related to construction and real estate activities in Hawaii. Approximately $401.0 million is related to construction bonds issued by third party sureties (bid, performance and payment bonds) and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. Indemnity Agreements: For certain real estate joint ventures, the Company may be obligated under bond indemnities to complete construction of the real estate development if the joint venture does not perform. These indemnities are designed to protect the surety in exchange for the issuance of surety bonds that cover joint venture construction activities, such as project amenities, roads, utilities, and other infrastructure, at its joint ventures. Under the indemnities, the Company and its joint venture partners agree to indemnify the surety bond issuer from all losses and expenses arising from the failure of the joint venture to complete the specified bonded construction. The maximum potential amount of aggregate future payments is a function of the amount covered by outstanding bonds at the time of default by the joint venture, reduced by the amount of work completed to date. The recorded amounts of the indemnity liabilities were not material individually or in the aggregate. Other than the above items and those described in the Company's 2015 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 by A&B to the State Board of Land and Natural Resources (the “BLNR”) to replace these revocable permits with a long-term water lease. Pending the conclusion by the BLNR of this contested case hearing on the request for the long-term lease, the BLNR has kept the existing permits on a holdover basis. Three parties filed a lawsuit on April 10, 2015 alleging that the BLNR has been unlawfully renewing the revocable permits on an annual basis. In January 2016, the court ruled that the BLNR lacked legal authority to keep the revocable permits in holdover status beyond one year. On June 27, 2016, legislation giving the BLNR authority to grant holdover status of the revocable permits previously issued for a period not to exceed three years was signed into law by Hawaii's governor. The Company will continue to pursue a long-term lease of the state lands. In addition to the above, on May 24, 2001, petitions were filed by a third party, requesting that the Commission on Water Resource Management of the State of Hawaii (“Water Commission”) establish interim instream flow standards (“IIFS”) in 27 East Maui streams that feed the Company’s irrigation system. The Water Commission initially took action on the petitions in 2008 and 2010, but the petitioners requested a contested case hearing to challenge the Water Commission's decisions on certain petitions. The Water Commission denied the contested case hearing request, but the petitioners successfully appealed the denial to the Hawaii Intermediate Court of Appeals, which ordered the Water Commission to grant the request. The Water Commission then authorized the appointment of a hearings officer for the contested case hearing, and on January 15, 2016, the hearings officer issued his recommended decision on the petitions. However, based on the announced closure of HC&S, the Water Commission has ordered the re-opening of the evidentiary portion of the hearing to address changes in the water needs of HC&S. The Water Commission has also ordered HC&S to refrain from diverting streams it is not currently diverting, and to work to remove diversions from the streams it has voluntarily committed to stop diverting. The Commission is not expected to issue a final decision on the petitions until at least the first quarter of 2017. On March 9, 2016, two organizations filed a petition with the Water Commission to reconsider the IIFS established in 2014 for the four streams in West Maui in light of the announced closure of HC&S's sugar operations. Previously, the parties involved in the petition, along with HC&S and the County of Maui, had entered into a settlement agreement on the IIFS for the four streams, and the Water Commission approved the settlement in 2014. The Water Commission’s decision on the 2016 petition could require A&B to return more water to West Maui streams than the amount agreed to by the parties in the 2014 settlement. In a related proceeding, HC&S has applied for a water use permit to continue its use of water from these four West Maui streams for agricultural irrigation. If the Company is not permitted to use sufficient quantities of stream waters, it could have a material adverse effect on the Company's pursuit of a diversified agricultural model in subsequent years. 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 HC&S's three boilers at the Puunene Sugar Mill. The initial deadline for compliance with the Boiler MACT rule was January 2016, with full compliance required by July 29, 2016. The Puunene Mill boilers have met the January compliance deadline, including applicable emissions limits and monitoring requirements. Due to the impending end to sugar operations, however, the Company entered into an Administrative Order on Consent with the EPA under which HC&S was able to forego certain remaining compliance obligations (specifically, requirements relating to initial performance testing) on the condition that the boilers are permanently shut down at the end of 2016. 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 (“EPS”) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (“EPS”) | EARNINGS PER SHARE ("EPS") Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table provides a reconciliation of net income (loss) to net income (loss) available to A&B shareholders (in millions): Quarter Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income (loss) $ (1.4 ) $ 7.0 $ (9.0 ) $ 43.0 Less: Income attributable to noncontrolling interest (0.5 ) (0.3 ) (1.1 ) (1.2 ) Net income (loss) attributable to A&B shareholders (1.9 ) 6.7 $ (10.1 ) $ 41.8 Less: Undistributed earnings (losses) allocated from redeemable noncontrolling interests 0.4 (1.3 ) 0.9 (1.3 ) Net income (loss) available to A&B shareholders $ (1.5 ) $ 5.4 $ (9.2 ) $ 40.5 The number of shares used to compute basic and diluted EPS is as follows (in millions): Quarter Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Denominator for basic EPS – weighted average shares 49.0 48.9 49.0 48.8 Effect of dilutive securities: Employee/director stock options and restricted stock units — 0.5 — 0.5 Denominator for diluted EPS – weighted average shares 49.0 49.4 49.0 49.3 During each of the quarter and nine months ended September 30, 2016 , anti-dilutive securities totaled 0.4 million shares. During the quarter and nine months ended September 30, 2015 there were no anti-dilutive securities outstanding. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of receivables and short-term borrowings approximate their carrying values due to the short-term nature of the instruments. The Company’s cash and cash equivalents, consisting principally of cash on deposit, may from time to time include short-term money market funds. The fair values of these money market funds, based on market prices (level 2), approximate their carrying values due to their short-maturities. The carrying amount and fair value of the Company’s long-term debt at September 30, 2016 was $606.3 million and $630.7 million , respectively, and $587.0 million and $597.0 million at December 31, 2015 , 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 | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 were as follows (in millions): September 30, 2016 December 31, 2015 Sugar inventories $ 14.9 $ 16.3 Asphalt 9.8 12.8 Processed rock, portland cement, and sand 12.3 12.2 Work in process 3.4 3.7 Retail merchandise 1.8 1.6 Parts, materials and supplies inventories 5.1 9.3 Total $ 47.3 $ 55.9 |
Share-Based Payment Awards
Share-Based Payment Awards | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payment Awards | SHARE-BASED PAYMENT AWARDS The following table summarizes the Company's stock option activity during 2016 (in thousands, except weighted average exercise price and weighted average contractual life): Options Weighted Average Exercise Price Weighted Average Contractual Life Aggregate Intrinsic Value Outstanding, January 1, 2016 1,098.6 $ 18.81 Exercised (172.1 ) $ 23.68 Outstanding, September 30, 2016 926.5 $ 17.91 3.3 $ 18,788 Exercisable, September 30, 2016 926.5 $ 17.91 3.3 $ 18,788 The following table summarizes non-vested restricted stock unit activity during 2016 (in thousands, except weighted average grant-date fair value amounts): 2012 Plan Restricted Stock Units Weighted Average Grant-Date Fair Value Outstanding, January 1, 2016 271.9 $ 37.74 Granted 154.3 $ 31.04 Vested (69.0 ) $ 38.00 Canceled (56.3 ) $ 39.28 Outstanding, September 30, 2016 300.9 $ 33.96 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: 2016 Grants 2015 Grants Volatility of A&B common stock 26.3% 29.5% Average volatility of peer companies 27.7% 34.2% Risk-free interest rate 1.1% 0.7% A summary of compensation cost related to share-based payments is as follows (in millions): Quarter Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Share-based compensation expense (net of estimated forfeitures): Restricted stock units $ 1.0 $ 1.1 3.1 3.4 Total share-based compensation expense 1.0 1.1 3.1 3.4 Total recognized tax benefit (0.5 ) (0.4 ) (1.1 ) (1.1 ) Share-based compensation expense (net of tax) $ 0.5 $ 0.7 $ 2.0 $ 2.3 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Construction Contracts and Material Sales. The Company has contracts in the ordinary course of business, as a supplier, with members in entities in which the Company also is a member. Revenues earned from transactions with affiliates totaled approximately $1.8 million and $4.1 million for the quarters ended September 30, 2016 and 2015 , respectively. Revenues earned from transactions with affiliates totaled approximately $6.0 million and $13.9 million for the nine months ended September 30, 2016 and 2015 , respectively. Receivables from these affiliates were $0.5 million and $1.5 million at September 30, 2016 and 2015 , respectively. Amounts due to these affiliates were $0.3 million and $0.1 million at September 30, 2016 and 2015 , respectively. Commercial Real Estate and Development. The Company has contracts in the ordinary course of business, as a lessor of property, with unconsolidated affiliates in which the Company has an interest, as well as with certain entities that are owned by a director of the Company. Revenues earned from these transactions were immaterial for each of the quarters and nine months ended September 30, 2016 and 2015 . Receivables from these affiliates were immaterial as of September 30, 2016 and 2015 . During the quarter ended September 30, 2016 and 2015 , the Company recorded developer fee revenues of approximately $0.2 million and $0.2 million related to management and administrative services provided to certain unconsolidated investments in affiliates. Developer fee revenues recorded for the nine months ended September 30, 2016 and 2015 were $0.7 million and $2.7 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost recorded for the three months ended September 30, 2016 and 2015 were as follows (in millions): Pension Benefits Post-retirement Benefits 2016 2015 2016 2015 Service cost $ 0.8 $ 0.8 $ — $ — Interest cost 2.2 2.0 0.2 0.1 Expected return on plan assets (2.5 ) (2.8 ) — — Curtailment (0.2 ) — — — Amortization of prior service credit (0.3 ) (0.2 ) — — Amortization of net loss 1.9 1.0 — — Net periodic benefit cost $ 1.9 $ 0.8 $ 0.2 $ 0.1 The components of net periodic benefit cost recorded for the nine months ended September 30, 2016 and 2015 were as follows (in millions): Pension Benefits Post-retirement Benefits 2016 2015 2016 2015 Service cost $ 2.4 $ 2.3 $ 0.1 $ 0.1 Interest cost 6.7 6.0 0.4 0.3 Expected return on plan assets (7.5 ) (8.3 ) — — Curtailment (0.7 ) — — — Amortization of prior service credit (0.8 ) (0.6 ) — — Amortization of net loss 5.5 4.5 0.1 0.1 Net periodic benefit cost $ 5.6 $ 3.9 $ 0.6 $ 0.5 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Manoa Marketplace Acquisition. The Company applies the provisions of FASB ASC Topic No. 805, Business Combinations, ("ASC 805") to acquisitions. Under ASC 805, assets acquired and liabilities assumed are recorded at fair value. The excess of the purchase price over the net fair value of assets acquired and liabilities assumed is recorded as goodwill. The fair values of assets acquired and liabilities assumed are determined through the market, income or cost approaches, and the valuation approach is generally based on the specific characteristics of the asset or liability. Under the market approach, value is estimated using information from transactions in which other participants in the market have paid for reasonably similar assets that have been sold within a reasonable period from the valuation date. Adjustments are made to compensate for differences between reasonably similar assets and the item being valued. Under the income approach, the future cash flows expected to be received over the life of the asset, taking into account a variety of factors, such as long-term growth rates and the amount and timing of cash flows, are discounted to present value using a rate of return that accounts for the time value of money and investment risk factors. Under the cost approach, the Company estimates the cost to replace the asset with a new asset taking into consideration a variety of factors such as age, physical condition, functional obsolescence and economic obsolescence. The fair value of liabilities assumed is calculated as the net present value of estimated payments using prevailing market interest rates for liabilities with similar credit risk and terms. On January 29, 2016 the Company consummated the purchase of the leasehold and leased fee interests in Manoa Marketplace, a multi-tenant neighborhood shopping center in Honolulu for $82.4 million through a 1031 transaction. The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions): Assets acquired: Land $ 40.5 Building 36.8 In-place leases 7.0 Favorable leases 1.3 Total assets acquired 85.6 Total liabilities assumed 3.2 Net assets acquired $ 82.4 The finite-lived intangible assets related to in-place leases and favorable leases are amortized over their respective lease terms. As of the acquisition date, the weighted-average remaining lives of the in-place leases and favorable leases were approximately 5 and 3 years, respectively. In connection with the Manoa Marketplace transaction, the Company incurred approximately $1.1 million of acquisition-related expenses during the nine months ended September 30, 2016 . The costs are included in selling, general and administrative costs in the accompanying condensed consolidated statements of operations and are reported in the Development and Sales segment for segment reporting purposes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2016 were as follows (in millions, net of tax): Employee Benefit Plans Interest Rate Swap Total Beginning balance, January 1, 2016 $ (45.3 ) $ — $ (45.3 ) Other comprehensive loss before reclassifications, net of tax — (1.6 ) (1.6 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 3.0 0.1 3.1 Ending balance, September 30, 2016 $ (42.3 ) $ (1.5 ) $ (43.8 ) The reclassifications of other comprehensive income components out of accumulated other comprehensive loss for the quarter and nine months ended September 30, 2016 and 2015 were as follows (in millions): Quarter Ended September 30, Nine Months Ended September 30, Details about Other Comprehensive Income Components 2016 2015 2016 2015 Amounts reclassified for interest expense included in net loss $ 0.2 $ — $ 0.2 $ — Actuarial gain (loss)* — — — (0.8 ) Amortization of defined benefit pension items reclassified to net periodic pension cost: Net loss* 1.9 1.8 5.6 5.4 Prior service credit* (0.3 ) (0.4 ) (0.8 ) (1.0 ) Total before income tax 1.8 1.4 5.0 3.6 Income taxes (0.8 ) (0.5 ) (1.9 ) (1.4 ) Other comprehensive income net of tax $ 1.0 $ 0.9 $ 3.1 $ 2.2 * These other comprehensive income components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
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 operations or balance sheet. During the second quarter, A&B invested $15.4 million in Waihonu Equity Holdings, LLC (“Waihonu”), an entity that operates two photovoltaic facilities with a combined capacity of 6.5 megawatts in Mililani, Oahu. The Company accounts for its investment in Waihonu under the equity method. The investment return from the Company's investment in Waihonu is principally composed of non-refundable federal and refundable state tax credits. The federal tax credits are accounted for using the flow through method, which reduces the provision for income taxes in the year that the federal tax credits first become available. During the second quarter of 2016, the Company recognized income tax benefits of approximately $8.7 million related to the non-refundable federal tax credits. During the quarter ended September 30, 2016, the Company recorded $2.9 million related to the refundable state tax credits in Income Tax Receivable, as well as a corresponding reduction to the carrying amount of its investment in Waihonu, in the condensed consolidated balance sheet. For the quarter and nine month periods ended September 30, 2016 and 2015, the Company recorded non-cash reductions related to the Company's investments in Waihonu and KIUC Renewable Solutions Two ("KRS II"), a 12 -megawatt solar farm on Kauai, in Reduction in Solar Investments in the accompanying condensed consolidated statement of operations as follows (in millions): Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Waihonu $ — $ — $ 8.7 $ — KRS II 0.2 0.1 1.0 1.7 Total $ 0.2 $ 0.1 $ 9.7 $ 1.7 The Company expects that future reductions to its investments in Waihonu and KRS II will be recognized as tax benefits are realized. The Company's effective income tax rate for the nine months ended September 30, 2016 differed from the statutory rate primarily due to the non-refundable federal tax credits related to the Company's investment in Waihonu. Subsequent to the separation from Matson, Inc. (formerly "Alexander & Baldwin Holding, Inc.") on June 30, 2012, the Company began reporting as a separate taxpayer. Upon separation, the Company's unrecognized tax benefits were reflected on Matson Inc.'s ("Matson") financial statements because Matson is considered the successor parent to the former Alexander & Baldwin, Inc. affiliated tax group. In connection with the separation, the Company entered into a Tax Sharing Agreement with Matson. As of September 30, 2016, the Company's liability for the indemnity to Matson in the event the Company's pre-separation unrecognized tax benefits are not realized was $0.1 million . As of September 30, 2016, the Company has not identified any material unrecognized tax positions. The Company is subject to taxation by the United States and various state and local jurisdictions. As of September 30, 2016 , the Company’s tax years 2012, 2013 and 2014 are open to examination by the tax authorities. In addition, tax year 2012, for which the Company was included in the consolidated tax group with Matson, is open to examination by the tax authorities in the Company's material jurisdictions. In addition, the 2011 tax year is also open to examination by California. The 2012 tax return for the Company on a standalone basis and the 2012 tax return for which the Company was included in the consolidated tax group with Matson are currently under examination by the Internal Revenue Service. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt: At September 30, 2016 and December 31, 2015 , notes payable and long-term debt consisted of the following (in millions): 2016 2015 Revolving Credit Loans, (2.2% for 2016 and 2.10% for 2015) $ 68.0 $ 77.8 Term Loans: 3.90%, payable through 2024 71.5 75.0 6.90%, payable through 2020 65.0 75.0 3.88%, payable through 2027 50.0 50.0 5.55%, payable through 2026 46.0 47.0 5.53%, payable through 2024 28.5 31.5 5.56%, payable through 2026 25.0 25.0 4.35%, payable through 2026 22.0 23.4 4.15%, payable through 2024, secured by Pearl Highlands Center (a) 90.5 91.9 LIBOR plus 1.5%, payable through 2021, secured by Kailua Town Center III (b) 10.8 11.0 LIBOR plus 2.66%, payable through 2016, secured by The Shops at Kukui'ula (c) 35.2 37.0 LIBOR plus 2.63%, payable through 2016, secured by Kahala Estate Properties (d) 6.3 8.2 LIBOR plus 1.35%, payable through 2029, secured by Manoa Marketplace (f) 60.0 — 5.19%, payable through 2019 6.9 8.4 6.38%, payable through 2017, secured by Midstate Hayes 8.2 8.2 LIBOR plus 1.0%, payable through 2021, secured by asphalt terminal (e) 6.0 6.9 1.85%, payable through 2017 3.2 5.2 3.31%, payable through 2018 3.3 4.6 2.00%, payable through 2018 1.0 1.5 2.65%, payable through 2016 0.1 0.6 Subtotal 607.5 588.2 Less debt issuance costs (1.2 ) (1.2 ) Total debt 606.3 587.0 Less current portion (82.4 ) (90.4 ) Long-term debt $ 523.9 $ 496.6 (a) On December 1, 2014, the Company refinanced and increased the amount of the loan secured by Pearl Highlands Center. (b) Loan has a stated interest rate of LIBOR plus 1.5% , but is swapped through maturity to a 5.95% fixed rate. (c) Loan has an effective interest rate of 2.52% for 2016 and 2.83% for 2015. (d) Loan has an effective interest rate of 3.15% for 2016 and 2.82% for 2015. (e) Loan has a stated interest rate of LIBOR plus 1.0% , but is swapped through maturity to a 5.98% fixed rate. (f) Loan has a stated interest rate of LIBOR plus 1.35% , but is swapped through maturity to a 3.135% fixed rate. On August 1, 2016, ABL Manoa Marketplace LF LLC, A&B Manoa LLC, ABL Manoa Marketplace LH LLC, and ABP Manoa Marketplace LH LLC (the "Borrowers"), wholly owned subsidiaries of the Company, entered into a $60 million mortgage loan agreement ("Loan") with First Hawaiian Bank ("FHB"). The Loan bears interest at LIBOR plus 1.35 percent and matures on August 1, 2029. The Loan requires interest-only payments for the first 36 months and principal and interest payments for the remaining 120 month term using a 25 -year amortization period. A final principal payment of $41.7 million is due on August 1, 2029. The Company had previously entered into an interest rate swap with a notional amount of $60 million to fix the floating interest rate of a portion of the debt at an effective rate of 3.135 percent (see Note 16). The Loan is secured by Manoa Marketplace under a Mortgage, Security Agreement and Fixture Filing between the Borrowers and FHB, dated August 1, 2016. |
Cessation of HC&S Sugar Operati
Cessation of HC&S Sugar Operations | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Cessation of HC&S Sugar Operations | CESSATION OF HC&S SUGAR OPERATIONS A summary of the pre-tax costs and remaining costs associated with the cessation is as follows (in millions): Charges Recognized During Quarter Charges Recognized During YTD 2016 Cumulative Amount Recognized as of September 30, 2016 Range of Expected Remaining Cessation Charges Total Low High Low High Employee severance benefits and related costs $ 1.7 $ 6.7 $ 20.1 $ 2.9 $ 7.4 $ 23.0 $ 27.5 Asset write-offs and accelerated depreciation 14.5 40.6 49.8 10.2 17.2 59.0 66.0 Property removal, restoration and other exit-related costs 1.4 4.3 4.3 9.7 14.2 15.0 19.5 Total cessation costs $ 17.6 $ 51.6 $ 74.2 $ 22.8 $ 38.8 $ 97.0 $ 113.0 A rollforward of the Cessation-related liabilities during the nine months ended September 30, 2016 is as follows (in millions): Employee Severance Benefits and Related Costs Other Exit Costs 1 Total Balance at December 31, 2015 $ 13.4 $ 4.1 $ 17.5 Expense 7.1 1.2 8.3 Cash payments (6.9 ) (1.2 ) (8.1 ) Change in estimates 2 (0.5 ) — (0.5 ) Balance at September 30, 2016 $ 13.1 $ 4.1 $ 17.2 1 Includes asset retirement obligations of $4.1 million . 2 Changes in estimates primarily related to voluntary employee attrition which resulted in the forfeiture of severance and related benefits. The Cessation-related liabilities were included in the accompanying condensed consolidated balance sheets as follows (in millions): Classification on Balance Sheet September 30, 2016 December 31, 2015 Current: Employee severance benefits and related costs HC&S Cessation Related Liabilities - Current $ 13.1 $ 5.8 Other exit costs HC&S Cessation Related Liabilities - Current 3.8 0.6 Total current portion 16.9 6.4 Long-term: Employee severance benefits and related costs Other Non-Current Liabilities — 7.6 Other exit costs Other Non-Current Liabilities 0.3 3.5 Total long-term portion 0.3 11.1 Total Cessation-related liabilities $ 17.2 $ 17.5 The Company expects that the activities related to the Cessation will be substantially completed by the end of 2016. |
Investment in Affiliates
Investment in Affiliates | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates | INVESTMENT IN AFFILIATES The Company's investments in affiliates consisted 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. During 2015, the Company's Waihonua joint venture closed the remaining units and completed its project which resulted in $32.3 million of operating income and net income for the joint venture. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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. Cash Flow Hedges of Interest Rate Risk During the second quarter of 2016, the Company entered into an interest rate swap agreement with a notional amount of $60.0 million which was designated as a cash flow hedge. The Company structured the interest rate swap agreement to hedge the variability of future interest payments due to changes in interest rates with regards to the Company's long-term debt. A summary of the key terms related to the Company's outstanding cash flow hedge as of September 30, 2016 is as follows (dollars in millions): Notional Amount Fair Value at Effective Date Maturity Date Interest Rate September 30, 2016 September 30, 2016 December 31, 2015 Balance Sheet Classification April 7, 2016 August 1, 2029 3.135% $ 60.0 $ (2.7 ) $ — Other non-current liabilities The Company assessed the effectiveness of the cash flow hedge at inception and will continue to do so on an ongoing basis. The effective portion of the changes in fair value of the cash flow hedge is recorded in accumulated other comprehensive loss and subsequently reclassified into interest expense as interest is incurred on the related-variable rate debt. When ineffectiveness exists, the ineffective portion of changes in fair value of the cash flow hedge is recognized in earnings in the period affected. Non-designated Hedges As of September 30, 2016 , the Company has two interest rate swaps that have not been designated as cash flow hedges whose key terms are as follows (dollars in millions): Effective Notional Amount Fair Value at Balance Sheet Date Maturity Date Interest Rate September 30, 2016 September 30, 2016 December 31, 2015 Classification January 1, 2014 September 1, 2021 5.95% $ 11.3 $ (1.8 ) $ (1.7 ) Other non-current liabilities June 8, 2008 March 1, 2021 5.98% $ 6.4 $ (0.6 ) $ (0.8 ) Other non-current liabilities Total $ 17.7 $ (2.4 ) $ (2.5 ) The following table represents the effect of the derivative instruments in the Company's condensed consolidated statements of operations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Derivatives in Designated Cash Flow Hedging Relationships: Amount of (gain) loss recognized in OCI on derivatives (effective portion) $ — $ — $ 2.8 $ — Amount of (gain) loss reclassified from accumulated OCI into earnings under "interest expense" (ineffective portion and amount excluded from effectiveness testing) (0.2 ) — (0.2 ) — Amount of (gain) loss on derivatives recognized in earnings under "interest expense" (ineffective portion and amount excluded from effectiveness testing) — — — — Derivatives Not Designated as Cash Flow Hedges: Amount of realized and unrealized loss on derivatives recognized in earnings under "interest income and other" $ — $ 0.5 $ 0.7 $ 0.9 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 we 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. |
Segment Results
Segment Results | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Results | SEGMENT RESULTS Segment results were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue: Real Estate: Commercial real estate 1 $ 32.9 $ 33.0 $ 102.3 $ 100.5 Development and sales 12.8 19.9 74.1 108.8 Reconciling item 2 — — (60.7 ) (21.0 ) Materials and construction 1 52.1 51.0 144.8 165.3 Agribusiness 1 40.9 40.8 89.7 95.5 Total revenue $ 138.7 $ 144.7 $ 350.2 $ 449.1 Operating Profit (Loss): Real Estate: Commercial real estate $ 13.7 $ 12.5 $ 42.6 $ 39.6 Development and sales 6.6 11.2 7.8 57.5 Materials and construction 5.6 7.5 18.5 21.7 Agribusiness operations 1.9 (9.0 ) 1.7 (11.8 ) HC&S cessation costs 3 (17.6 ) — (51.6 ) — Total operating profit 10.2 22.2 19.0 107.0 Interest expense (6.4 ) (6.5 ) (20.1 ) (20.2 ) General corporate expenses (5.5 ) (4.8 ) (16.0 ) (15.7 ) REIT evaluation costs (1.9 ) — (3.8 ) — Reduction in solar investments 4 (0.2 ) (0.1 ) (9.7 ) (1.7 ) Income (loss) before income taxes (3.8 ) 10.8 (30.6 ) 69.4 Income tax expense (benefit) (2.4 ) 3.8 (21.6 ) 26.4 Net income (loss) (1.4 ) 7.0 (9.0 ) 43.0 Income attributable to noncontrolling interest (0.5 ) (0.3 ) (1.1 ) (1.2 ) Net income (loss) attributable to A&B $ (1.9 ) $ 6.7 $ (10.1 ) $ 41.8 1 Inter-segment revenue during the each of the three and nine month periods ended September 30, 2016 and 2015 were immaterial. 2 Represents the sales of two California and one Utah property in June 2016 and a Colorado retail property in March 2015 and a Texas office building in June 2015 that are classified as "Gain on the sale of improved property" in the Condensed Consolidated Statements of Operations, but reflected as revenue for segment reporting purposes. 3 Costs related to the cessation of HC&S sugar operations. See Note 14. 4 Amounts represent reductions in the carrying values of the Company's solar investments. See Note 12. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On October 25, 2016, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per share of outstanding common stock, which will be paid on December 1, 2016 to shareholders of record as of November 7, 2016. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Schedule of Impact of Adopting New Accounting Guidance, ASU 2015-03 | The impact of adopting the above guidance as of December 31, 2015 was as follows (in millions): Other assets Total assets Long-term debt Total liabilities and equity Previously reported $ 65.0 $ 2,243.5 $ 497.8 $ 2,243.5 Debt Issuance Costs (1.2 ) (1.2 ) (1.2 ) (1.2 ) Current presentation $ 63.8 $ 2,242.3 $ 496.6 $ 2,242.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments and Financial Arrangements | Commitments and financial arrangements not recorded on the Company's condensed consolidated balance sheet, excluding lease commitments that are disclosed in Note 9 of the Company’s 2015 Form 10-K, included the following (in millions) as of September 30, 2016 : Standby letters of credit 1 $ 12.7 Bonds related to real estate and construction 2 $ 423.4 1 Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate primarily to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit has been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon. 2 Represents bonds related to construction and real estate activities in Hawaii. Approximately $401.0 million is related to construction bonds issued by third party sureties (bid, performance and payment bonds) and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. |
Earnings Per Share (_EPS_) (Tab
Earnings Per Share (“EPS”) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Income and Computation of Earnings per Share | The following table provides a reconciliation of net income (loss) to net income (loss) available to A&B shareholders (in millions): Quarter Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income (loss) $ (1.4 ) $ 7.0 $ (9.0 ) $ 43.0 Less: Income attributable to noncontrolling interest (0.5 ) (0.3 ) (1.1 ) (1.2 ) Net income (loss) attributable to A&B shareholders (1.9 ) 6.7 $ (10.1 ) $ 41.8 Less: Undistributed earnings (losses) allocated from redeemable noncontrolling interests 0.4 (1.3 ) 0.9 (1.3 ) Net income (loss) available to A&B shareholders $ (1.5 ) $ 5.4 $ (9.2 ) $ 40.5 The number of shares used to compute basic and diluted EPS is as follows (in millions): Quarter Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Denominator for basic EPS – weighted average shares 49.0 48.9 49.0 48.8 Effect of dilutive securities: Employee/director stock options and restricted stock units — 0.5 — 0.5 Denominator for diluted EPS – weighted average shares 49.0 49.4 49.0 49.3 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at September 30, 2016 and December 31, 2015 were as follows (in millions): September 30, 2016 December 31, 2015 Sugar inventories $ 14.9 $ 16.3 Asphalt 9.8 12.8 Processed rock, portland cement, and sand 12.3 12.2 Work in process 3.4 3.7 Retail merchandise 1.8 1.6 Parts, materials and supplies inventories 5.1 9.3 Total $ 47.3 $ 55.9 |
Share-Based Payment Awards (Tab
Share-Based Payment Awards (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the Company's stock option activity during 2016 (in thousands, except weighted average exercise price and weighted average contractual life): Options Weighted Average Exercise Price Weighted Average Contractual Life Aggregate Intrinsic Value Outstanding, January 1, 2016 1,098.6 $ 18.81 Exercised (172.1 ) $ 23.68 Outstanding, September 30, 2016 926.5 $ 17.91 3.3 $ 18,788 Exercisable, September 30, 2016 926.5 $ 17.91 3.3 $ 18,788 |
Summary of Non-vested Restricted Stock Unit Activity | The following table summarizes non-vested restricted stock unit activity during 2016 (in thousands, except weighted average grant-date fair value amounts): 2012 Plan Restricted Stock Units Weighted Average Grant-Date Fair Value Outstanding, January 1, 2016 271.9 $ 37.74 Granted 154.3 $ 31.04 Vested (69.0 ) $ 38.00 Canceled (56.3 ) $ 39.28 Outstanding, September 30, 2016 300.9 $ 33.96 |
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: 2016 Grants 2015 Grants Volatility of A&B common stock 26.3% 29.5% Average volatility of peer companies 27.7% 34.2% Risk-free interest rate 1.1% 0.7% |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Share-based compensation expense (net of estimated forfeitures): Restricted stock units $ 1.0 $ 1.1 3.1 3.4 Total share-based compensation expense 1.0 1.1 3.1 3.4 Total recognized tax benefit (0.5 ) (0.4 ) (1.1 ) (1.1 ) Share-based compensation expense (net of tax) $ 0.5 $ 0.7 $ 2.0 $ 2.3 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost recorded for the three months ended September 30, 2016 and 2015 were as follows (in millions): Pension Benefits Post-retirement Benefits 2016 2015 2016 2015 Service cost $ 0.8 $ 0.8 $ — $ — Interest cost 2.2 2.0 0.2 0.1 Expected return on plan assets (2.5 ) (2.8 ) — — Curtailment (0.2 ) — — — Amortization of prior service credit (0.3 ) (0.2 ) — — Amortization of net loss 1.9 1.0 — — Net periodic benefit cost $ 1.9 $ 0.8 $ 0.2 $ 0.1 The components of net periodic benefit cost recorded for the nine months ended September 30, 2016 and 2015 were as follows (in millions): Pension Benefits Post-retirement Benefits 2016 2015 2016 2015 Service cost $ 2.4 $ 2.3 $ 0.1 $ 0.1 Interest cost 6.7 6.0 0.4 0.3 Expected return on plan assets (7.5 ) (8.3 ) — — Curtailment (0.7 ) — — — Amortization of prior service credit (0.8 ) (0.6 ) — — Amortization of net loss 5.5 4.5 0.1 0.1 Net periodic benefit cost $ 5.6 $ 3.9 $ 0.6 $ 0.5 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions): Assets acquired: Land $ 40.5 Building 36.8 In-place leases 7.0 Favorable leases 1.3 Total assets acquired 85.6 Total liabilities assumed 3.2 Net assets acquired $ 82.4 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2016 were as follows (in millions, net of tax): Employee Benefit Plans Interest Rate Swap Total Beginning balance, January 1, 2016 $ (45.3 ) $ — $ (45.3 ) Other comprehensive loss before reclassifications, net of tax — (1.6 ) (1.6 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 3.0 0.1 3.1 Ending balance, September 30, 2016 $ (42.3 ) $ (1.5 ) $ (43.8 ) |
Summary of Reclassifications of Other Comprehensive Income | The reclassifications of other comprehensive income components out of accumulated other comprehensive loss for the quarter and nine months ended September 30, 2016 and 2015 were as follows (in millions): Quarter Ended September 30, Nine Months Ended September 30, Details about Other Comprehensive Income Components 2016 2015 2016 2015 Amounts reclassified for interest expense included in net loss $ 0.2 $ — $ 0.2 $ — Actuarial gain (loss)* — — — (0.8 ) Amortization of defined benefit pension items reclassified to net periodic pension cost: Net loss* 1.9 1.8 5.6 5.4 Prior service credit* (0.3 ) (0.4 ) (0.8 ) (1.0 ) Total before income tax 1.8 1.4 5.0 3.6 Income taxes (0.8 ) (0.5 ) (1.9 ) (1.4 ) Other comprehensive income net of tax $ 1.0 $ 0.9 $ 3.1 $ 2.2 * These other comprehensive income components are included in the computation of net periodic pension cost (see Note 9 for additional details). |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Investments | For the quarter and nine month periods ended September 30, 2016 and 2015, the Company recorded non-cash reductions related to the Company's investments in Waihonu and KIUC Renewable Solutions Two ("KRS II"), a 12 -megawatt solar farm on Kauai, in Reduction in Solar Investments in the accompanying condensed consolidated statement of operations as follows (in millions): Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Waihonu $ — $ — $ 8.7 $ — KRS II 0.2 0.1 1.0 1.7 Total $ 0.2 $ 0.1 $ 9.7 $ 1.7 |
Notes Payable and Long-Term D35
Notes Payable and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Long-term Debt | At September 30, 2016 and December 31, 2015 , notes payable and long-term debt consisted of the following (in millions): 2016 2015 Revolving Credit Loans, (2.2% for 2016 and 2.10% for 2015) $ 68.0 $ 77.8 Term Loans: 3.90%, payable through 2024 71.5 75.0 6.90%, payable through 2020 65.0 75.0 3.88%, payable through 2027 50.0 50.0 5.55%, payable through 2026 46.0 47.0 5.53%, payable through 2024 28.5 31.5 5.56%, payable through 2026 25.0 25.0 4.35%, payable through 2026 22.0 23.4 4.15%, payable through 2024, secured by Pearl Highlands Center (a) 90.5 91.9 LIBOR plus 1.5%, payable through 2021, secured by Kailua Town Center III (b) 10.8 11.0 LIBOR plus 2.66%, payable through 2016, secured by The Shops at Kukui'ula (c) 35.2 37.0 LIBOR plus 2.63%, payable through 2016, secured by Kahala Estate Properties (d) 6.3 8.2 LIBOR plus 1.35%, payable through 2029, secured by Manoa Marketplace (f) 60.0 — 5.19%, payable through 2019 6.9 8.4 6.38%, payable through 2017, secured by Midstate Hayes 8.2 8.2 LIBOR plus 1.0%, payable through 2021, secured by asphalt terminal (e) 6.0 6.9 1.85%, payable through 2017 3.2 5.2 3.31%, payable through 2018 3.3 4.6 2.00%, payable through 2018 1.0 1.5 2.65%, payable through 2016 0.1 0.6 Subtotal 607.5 588.2 Less debt issuance costs (1.2 ) (1.2 ) Total debt 606.3 587.0 Less current portion (82.4 ) (90.4 ) Long-term debt $ 523.9 $ 496.6 (a) On December 1, 2014, the Company refinanced and increased the amount of the loan secured by Pearl Highlands Center. (b) Loan has a stated interest rate of LIBOR plus 1.5% , but is swapped through maturity to a 5.95% fixed rate. (c) Loan has an effective interest rate of 2.52% for 2016 and 2.83% for 2015. (d) Loan has an effective interest rate of 3.15% for 2016 and 2.82% for 2015. (e) Loan has a stated interest rate of LIBOR plus 1.0% , but is swapped through maturity to a 5.98% fixed rate. (f) Loan has a stated interest rate of LIBOR plus 1.35% , but is swapped through maturity to a 3.135% fixed rate. |
Cessation of HC&S Sugar Opera36
Cessation of HC&S Sugar Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Pre-tax Costs and Remaining Costs Associated with Restructuring and Summary of Activity Related to Cessation Accruals | A summary of the pre-tax costs and remaining costs associated with the cessation is as follows (in millions): Charges Recognized During Quarter Charges Recognized During YTD 2016 Cumulative Amount Recognized as of September 30, 2016 Range of Expected Remaining Cessation Charges Total Low High Low High Employee severance benefits and related costs $ 1.7 $ 6.7 $ 20.1 $ 2.9 $ 7.4 $ 23.0 $ 27.5 Asset write-offs and accelerated depreciation 14.5 40.6 49.8 10.2 17.2 59.0 66.0 Property removal, restoration and other exit-related costs 1.4 4.3 4.3 9.7 14.2 15.0 19.5 Total cessation costs $ 17.6 $ 51.6 $ 74.2 $ 22.8 $ 38.8 $ 97.0 $ 113.0 A rollforward of the Cessation-related liabilities during the nine months ended September 30, 2016 is as follows (in millions): Employee Severance Benefits and Related Costs Other Exit Costs 1 Total Balance at December 31, 2015 $ 13.4 $ 4.1 $ 17.5 Expense 7.1 1.2 8.3 Cash payments (6.9 ) (1.2 ) (8.1 ) Change in estimates 2 (0.5 ) — (0.5 ) Balance at September 30, 2016 $ 13.1 $ 4.1 $ 17.2 1 Includes asset retirement obligations of $4.1 million . 2 Changes in estimates primarily related to voluntary employee attrition which resulted in the forfeiture of severance and related benefits. The Cessation-related liabilities were included in the accompanying condensed consolidated balance sheets as follows (in millions): Classification on Balance Sheet September 30, 2016 December 31, 2015 Current: Employee severance benefits and related costs HC&S Cessation Related Liabilities - Current $ 13.1 $ 5.8 Other exit costs HC&S Cessation Related Liabilities - Current 3.8 0.6 Total current portion 16.9 6.4 Long-term: Employee severance benefits and related costs Other Non-Current Liabilities — 7.6 Other exit costs Other Non-Current Liabilities 0.3 3.5 Total long-term portion 0.3 11.1 Total Cessation-related liabilities $ 17.2 $ 17.5 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap | A summary of the key terms related to the Company's outstanding cash flow hedge as of September 30, 2016 is as follows (dollars in millions): Notional Amount Fair Value at Effective Date Maturity Date Interest Rate September 30, 2016 September 30, 2016 December 31, 2015 Balance Sheet Classification April 7, 2016 August 1, 2029 3.135% $ 60.0 $ (2.7 ) $ — Other non-current liabilities As of September 30, 2016 , the Company has two interest rate swaps that have not been designated as cash flow hedges whose key terms are as follows (dollars in millions): Effective Notional Amount Fair Value at Balance Sheet Date Maturity Date Interest Rate September 30, 2016 September 30, 2016 December 31, 2015 Classification January 1, 2014 September 1, 2021 5.95% $ 11.3 $ (1.8 ) $ (1.7 ) Other non-current liabilities June 8, 2008 March 1, 2021 5.98% $ 6.4 $ (0.6 ) $ (0.8 ) Other non-current liabilities Total $ 17.7 $ (2.4 ) $ (2.5 ) |
Schedule of Derivative Instruments in Consolidated Statements of Operations | The following table represents the effect of the derivative instruments in the Company's condensed consolidated statements of operations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Derivatives in Designated Cash Flow Hedging Relationships: Amount of (gain) loss recognized in OCI on derivatives (effective portion) $ — $ — $ 2.8 $ — Amount of (gain) loss reclassified from accumulated OCI into earnings under "interest expense" (ineffective portion and amount excluded from effectiveness testing) (0.2 ) — (0.2 ) — Amount of (gain) loss on derivatives recognized in earnings under "interest expense" (ineffective portion and amount excluded from effectiveness testing) — — — — Derivatives Not Designated as Cash Flow Hedges: Amount of realized and unrealized loss on derivatives recognized in earnings under "interest income and other" $ — $ 0.5 $ 0.7 $ 0.9 |
Segment Results (Tables)
Segment Results (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Results | Segment results were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue: Real Estate: Commercial real estate 1 $ 32.9 $ 33.0 $ 102.3 $ 100.5 Development and sales 12.8 19.9 74.1 108.8 Reconciling item 2 — — (60.7 ) (21.0 ) Materials and construction 1 52.1 51.0 144.8 165.3 Agribusiness 1 40.9 40.8 89.7 95.5 Total revenue $ 138.7 $ 144.7 $ 350.2 $ 449.1 Operating Profit (Loss): Real Estate: Commercial real estate $ 13.7 $ 12.5 $ 42.6 $ 39.6 Development and sales 6.6 11.2 7.8 57.5 Materials and construction 5.6 7.5 18.5 21.7 Agribusiness operations 1.9 (9.0 ) 1.7 (11.8 ) HC&S cessation costs 3 (17.6 ) — (51.6 ) — Total operating profit 10.2 22.2 19.0 107.0 Interest expense (6.4 ) (6.5 ) (20.1 ) (20.2 ) General corporate expenses (5.5 ) (4.8 ) (16.0 ) (15.7 ) REIT evaluation costs (1.9 ) — (3.8 ) — Reduction in solar investments 4 (0.2 ) (0.1 ) (9.7 ) (1.7 ) Income (loss) before income taxes (3.8 ) 10.8 (30.6 ) 69.4 Income tax expense (benefit) (2.4 ) 3.8 (21.6 ) 26.4 Net income (loss) (1.4 ) 7.0 (9.0 ) 43.0 Income attributable to noncontrolling interest (0.5 ) (0.3 ) (1.1 ) (1.2 ) Net income (loss) attributable to A&B $ (1.9 ) $ 6.7 $ (10.1 ) $ 41.8 1 Inter-segment revenue during the each of the three and nine month periods ended September 30, 2016 and 2015 were immaterial. 2 Represents the sales of two California and one Utah property in June 2016 and a Colorado retail property in March 2015 and a Texas office building in June 2015 that are classified as "Gain on the sale of improved property" in the Condensed Consolidated Statements of Operations, but reflected as revenue for segment reporting purposes. 3 Costs related to the cessation of HC&S sugar operations. See Note 14. 4 Amounts represent reductions in the carrying values of the Company's solar investments. See Note 12. |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2016Segment | |
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 |
Commercial Real Estate | |
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 ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 42 | $ 63.8 |
Total assets | 2,224.2 | 2,242.3 |
Long-term debt | 523.9 | 496.6 |
Total liabilities and equity | 2,224.2 | 2,242.3 |
Debt Issuance Costs | $ 1.2 | 1.2 |
ASU 2015-03 | Other assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt Issuance Costs | (1.2) | |
ASU 2015-03 | Total assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt Issuance Costs | (1.2) | |
ASU 2015-03 | Long-term debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt Issuance Costs | 1.2 | |
ASU 2015-03 | Total liabilities and equity | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt Issuance Costs | 1.2 | |
Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | 65 | |
Total assets | 2,243.5 | |
Long-term debt | 497.8 | |
Total liabilities and equity | $ 2,243.5 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Commitments, Guarantees and Contingencies (Details) - Maximum $ in Millions | Sep. 30, 2016USD ($) | |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Maximum amount of possible loss contingency | $ 12.7 | [1] |
Bonds related to real estate and construction | ||
Loss Contingencies [Line Items] | ||
Maximum amount of possible loss contingency | 423.4 | [2] |
Performance Bond | ||
Loss Contingencies [Line Items] | ||
Maximum amount of possible loss contingency | $ 401 | |
[1] | Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate primarily to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit has been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon. | |
[2] | Represents bonds related to construction and real estate activities in Hawaii. Approximately $401.0 million is related to construction bonds issued by third party sureties (bid, performance and payment bonds) and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon. |
Commitments and Contingencies42
Commitments and Contingencies - Narrative (Details) | Apr. 10, 2015plaintiff | Sep. 30, 2016aLicense | May 24, 2001Stream |
Petitions Filed Requesting IIFS In West Maui Streams | |||
Loss Contingencies [Line Items] | |||
Period provided by irrigation system | 10 years | ||
Number of parties filed lawsuit | plaintiff | 3 | ||
Long Term Water Lease Request | |||
Loss Contingencies [Line Items] | |||
Number of water licenses held and extended as revocable permits | License | 4 | ||
Additional watershed lands accessible by licenses (in acres) | 30,000 | ||
Capacity of irrigation water supplied by additional watershed lands (in percent) | 56.00% | ||
Long Term Water Lease Request | East Maui | |||
Loss Contingencies [Line Items] | |||
Watershed lands owned (in acres) | 16,000 | ||
Petitions Filed Requesting IIFS In East Maui Streams | |||
Loss Contingencies [Line Items] | |||
Number of streams for which IIFS was requested | Stream | 27 |
Earnings Per Share (_EPS_) - Sc
Earnings Per Share (“EPS”) - Schedule of Reconciliation of Income from Continuing Operations and Computation of Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (1.4) | $ 7 | $ (9) | $ 43 |
Less: Income attributable to noncontrolling interest | (0.5) | (0.3) | (1.1) | (1.2) |
Net Income (Loss) Attributable to A&B Shareholders | (1.9) | 6.7 | (10.1) | 41.8 |
Less: Undistributed earnings (losses) allocated from redeemable noncontrolling interests | 0.4 | (1.3) | 0.9 | (1.3) |
Net income (loss) available to A&B shareholders | $ (1.5) | $ 5.4 | $ (9.2) | $ 40.5 |
Shares used to compute basic and diluted earnings per share [Abstract] | ||||
Denominator for basic EPS - weighted average shares (in shares) | 49 | 48.9 | 49 | 48.8 |
Effect of dilutive securities: | ||||
Employee/director stock options and restricted stock units (in shares) | 0 | 0.5 | 0 | 0.5 |
Denominator for diluted EPS - weighted average shares (in shares) | 49 | 49.4 | 49 | 49.3 |
Earnings Per Share (_EPS_) - Na
Earnings Per Share (“EPS”) - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from the computation of weighted average dilutive shares outstanding (in shares) | 400,000 | 0 | 400,000 | 0 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Fair Value Measuremnt of Long-term Debt [Line Items] | ||
Long-term debt value | $ 606.3 | $ 587 |
Fair Value | ||
Fair Value Measuremnt of Long-term Debt [Line Items] | ||
Long-term debt value | $ 630.7 | $ 597 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Inventories | $ 47.3 | $ 55.9 |
Sugar inventories | ||
Inventory [Line Items] | ||
Inventories | 14.9 | 16.3 |
Asphalt | ||
Inventory [Line Items] | ||
Inventories | 9.8 | 12.8 |
Processed rock, portland cement, and sand | ||
Inventory [Line Items] | ||
Inventories | 12.3 | 12.2 |
Work in process | ||
Inventory [Line Items] | ||
Inventories | 3.4 | 3.7 |
Retail merchandise | ||
Inventory [Line Items] | ||
Inventories | 1.8 | 1.6 |
Parts, materials and supplies inventories | ||
Inventory [Line Items] | ||
Inventories | $ 5.1 | $ 9.3 |
Share-Based Payment Awards - Na
Share-Based Payment Awards - Narrative (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Performance Shares | Two years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Performance Shares | Three years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
2012 Plan | Restricted Stock Units (RSUs) | Time-Based Vesting | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Share-Based Payment Awards - Sc
Share-Based Payment Awards - Schedule of Stock Option Activity (Details) - Stock Options - 2012 Plan $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Options | |
Outstanding, beginning balance (in shares) | shares | 1,098,600 |
Exercised (in shares) | shares | (172,100) |
Outstanding, ending balance (in shares) | shares | 926,500 |
Exercisable (in shares) | shares | 926,500 |
Weighted Average Exercise Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 18.81 |
Exercised (in dollars per share) | $ / shares | 23.68 |
Outstanding, ending balance (in dollars per share) | $ / shares | 17.91 |
Exercisable (in dollars per share) | $ / shares | $ 17.91 |
Weighted Average Contractual Life | |
Outstanding weighted average contractual life | 3 years 4 months |
Exercisable weighted average contractual life | 3 years 4 months |
Aggregate Intrinsic Value | |
Outstanding aggregate intrinsic value | $ | $ 18,788 |
Exercisable intrinsic value | $ | $ 18,788 |
Share-Based Payment Awards - Su
Share-Based Payment Awards - Summary of Non-vested Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - 2012 Plan | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
2012 Plan Restricted Stock Units | |
Outstanding, beginning balance (in shares) | shares | 271,900 |
Granted (in shares) | shares | 154,300 |
Vested (in shares) | shares | (69,000) |
Canceled (in shares) | shares | (56,300) |
Outstanding, ending balance (in shares) | shares | 300,900 |
Weighted Average Grant-Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 37.74 |
Granted (in dollars per share) | $ / shares | 31.04 |
Vested (in dollars per share) | $ / shares | 38 |
Canceled (in dollars per share) | $ / shares | 39.28 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 33.96 |
Share-Based Payment Awards - 50
Share-Based Payment Awards - Schedule of Fair Value Assumptions of Market-based Awards (Details) - Restricted Stock Units (RSUs) - 2012 Plan - Time-Based Vesting | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of A&B common stock | 26.30% | 29.50% |
Average volatility of peer companies | 27.70% | 34.20% |
Risk-free interest rate | 1.10% | 0.70% |
Share-Based Payment Awards - 51
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1 | $ 1.1 | $ 3.1 | $ 3.4 |
Total recognized tax benefit | (0.5) | (0.4) | (1.1) | (1.1) |
Share-based compensation expense (net of tax) | 0.5 | 0.7 | 2 | 2.3 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1 | $ 1.1 | $ 3.1 | $ 3.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Materials and Construction | Supplier Contracts | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 1.8 | $ 4.1 | $ 6 | $ 13.9 |
Receivables from related parties | 0.5 | 1.5 | 0.5 | 1.5 |
Due to related parties | 0.3 | 0.1 | 0.3 | 0.1 |
Real estate leasing and development | Management And Administrative Services, Developer Fee Revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 0.2 | $ 0.2 | $ 0.7 | $ 2.7 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 0.8 | $ 0.8 | $ 2.4 | $ 2.3 |
Interest cost | 2.2 | 2 | 6.7 | 6 |
Expected return on plan assets | (2.5) | (2.8) | (7.5) | (8.3) |
Curtailment | (0.2) | 0 | (0.7) | 0 |
Amortization of prior service credit | (0.3) | (0.2) | (0.8) | (0.6) |
Amortization of net loss | 1.9 | 1 | 5.5 | 4.5 |
Net periodic benefit cost | 1.9 | 0.8 | 5.6 | 3.9 |
Post-retirement Benefits | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 0 | 0 | 0.1 | 0.1 |
Interest cost | 0.2 | 0.1 | 0.4 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Curtailment | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0.1 | 0.1 |
Net periodic benefit cost | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.5 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Manoa Marketplace - USD ($) $ in Millions | Jan. 29, 2016 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||
Consideration transferred | $ 82.4 | |
Leases, Acquired-in-Place | ||
Business Acquisition [Line Items] | ||
Weighted-average remaining lives of acquired finite-lived intangible assets | 5 years | |
Above Market Leases | ||
Business Acquisition [Line Items] | ||
Weighted-average remaining lives of acquired finite-lived intangible assets | 3 years | |
Selling, General and Administrative Expenses | ||
Business Acquisition [Line Items] | ||
Business acquisition related expenses | $ 1.1 |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price (Details) - Manoa Marketplace $ in Millions | Jan. 29, 2016USD ($) |
Assets acquired: | |
Land | $ 40.5 |
Building | 36.8 |
Total assets acquired | 85.6 |
Total liabilities assumed | 3.2 |
Net assets acquired | 82.4 |
Leases, Acquired-in-Place | |
Assets acquired: | |
Finite-lived intangibles | 7 |
Above Market Leases | |
Assets acquired: | |
Finite-lived intangibles | $ 1.3 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance, January 1, 2016 | $ 1,223.6 | |||
Ending balance, September 30, 2016 | $ 1,211.1 | 1,211.1 | ||
Employee Benefit Plans | ||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance, January 1, 2016 | (45.3) | |||
Other comprehensive loss before reclassifications, net of tax | 0 | |||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 3 | |||
Ending balance, September 30, 2016 | (42.3) | (42.3) | ||
Interest Rate Swap | ||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance, January 1, 2016 | 0 | |||
Other comprehensive loss before reclassifications, net of tax | (1.6) | |||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0.1 | |||
Ending balance, September 30, 2016 | (1.5) | (1.5) | ||
Total | ||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance, January 1, 2016 | (45.3) | |||
Other comprehensive loss before reclassifications, net of tax | (1.6) | |||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 1 | $ 0.9 | 3.1 | $ 2.2 |
Ending balance, September 30, 2016 | $ (43.8) | $ (43.8) |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss - Summary of Reclassifications of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amounts reclassified for interest expense included in net loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before tax | $ 0.2 | $ 0 | $ 0.2 | $ 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0.1 | |||
Actuarial Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before tax | 0 | 0 | 0 | (0.8) |
Net Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before tax | 1.9 | 1.8 | 5.6 | 5.4 |
Prior Service Credit | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before tax | (0.3) | (0.4) | (0.8) | (1) |
Employee Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before tax | 1.8 | 1.4 | 5 | 3.6 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 3 | |||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, tax | (0.8) | (0.5) | (1.9) | (1.4) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | $ 1 | $ 0.9 | $ 3.1 | $ 2.2 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($)photovoltaic_facilityMW | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)MW | Sep. 30, 2015USD ($) | ||
Income Tax Contingency [Line Items] | ||||||
Reductions in solar investments | [1] | $ 0.2 | $ 0.1 | $ 9.7 | $ 1.7 | |
Matson, Inc. | ||||||
Income Tax Contingency [Line Items] | ||||||
Liability for unrecognized tax benefits not realized | 0.1 | 0.1 | ||||
Waihonu Equity Holdings, LLC | ||||||
Income Tax Contingency [Line Items] | ||||||
Amount invested in equity method investments | $ 15.4 | |||||
Number of photovoltaic facilities constructing | photovoltaic_facility | 2 | |||||
Power capacity (in megawatts) | MW | 6.5 | |||||
Tax benefits recognized related to non-refundable federal tax credits | 2.9 | $ 8.7 | ||||
Reductions in solar investments | 0 | 0 | $ 8.7 | 0 | ||
KRS II | ||||||
Income Tax Contingency [Line Items] | ||||||
Power capacity (in megawatts) | MW | 12 | |||||
Reductions in solar investments | $ 0.2 | $ 0.1 | $ 1 | $ 1.7 | ||
[1] | Amounts represent reductions in the carrying values of the Company's solar investments. See Note 12. |
Notes Payable and Long-Term D59
Notes Payable and Long-Term Debt (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 607,500,000 | $ 588,200,000 | ||
Less debt issuance costs | (1,200,000) | (1,200,000) | ||
Total debt | 606,300,000 | 587,000,000 | ||
Less current portion | (82,400,000) | (90,400,000) | ||
Long-term debt | 523,900,000 | 496,600,000 | ||
Interest Rate Swap | ||||
Debt Instrument [Line Items] | ||||
Interest rate swap notional amount | $ 60,000,000 | |||
Swapped maturity fixed interest rate | 3.135% | |||
Revolving Credit Loans, (2.2% for 2016 and 2.10% for 2015) | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 68,000,000 | $ 77,800,000 | ||
Stated interest rate | 2.20% | 2.10% | ||
3.90%, payable through 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 71,500,000 | $ 75,000,000 | ||
Stated interest rate | 3.90% | |||
6.90%, payable through 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 65,000,000 | 75,000,000 | ||
Stated interest rate | 6.90% | |||
3.88%, payable through 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 50,000,000 | 50,000,000 | ||
Stated interest rate | 3.88% | |||
5.55%, payable through 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 46,000,000 | 47,000,000 | ||
Stated interest rate | 5.55% | |||
5.53%, payable through 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 28,500,000 | 31,500,000 | ||
Stated interest rate | 5.53% | |||
5.56%, payable through 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 25,000,000 | 25,000,000 | ||
Stated interest rate | 5.56% | |||
4.35%, payable through 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 22,000,000 | 23,400,000 | ||
Stated interest rate | 4.35% | |||
4.15%, payable through 2024, secured by Pearl Highlands Center | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | [1] | $ 90,500,000 | 91,900,000 | |
Stated interest rate | 4.15% | |||
LIBOR plus 1.5%, payable through 2021, secured by Kailua Town Center III | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | [2] | $ 10,800,000 | 11,000,000 | |
Basis spread on variable rate | 1.50% | |||
Swapped maturity fixed interest rate | 5.95% | |||
LIBOR plus 1.5%, payable through 2021, secured by Kailua Town Center III | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
LIBOR plus 2.66%, payable through 2016, secured by The Shops at Kukui'ula | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | [3] | $ 35,200,000 | $ 37,000,000 | |
Basis spread on variable rate | 2.66% | |||
Effective interest rate | 2.52% | 2.83% | ||
LIBOR plus 2.63%, payable through 2016, secured by Kahala Estate Properties | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | [4] | $ 6,300,000 | $ 8,200,000 | |
Basis spread on variable rate | 2.63% | |||
Effective interest rate | 3.15% | 2.82% | ||
LIBOR plus 1.35%, payable through 2029, secured by Manoa Marketplace | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | [5] | $ 60,000,000 | $ 0 | |
Basis spread on variable rate | 1.35% | |||
Debt instrument, face amount | [5] | $ 60,000,000 | ||
Interest only payment term | 36 months | |||
Principal and interest payment term | 120 months | |||
Debt instrument, amortization period | 25 years | |||
Final principal payment amount | $ 41,700,000 | |||
Swapped maturity fixed interest rate | 3.135% | |||
LIBOR plus 1.35%, payable through 2029, secured by Manoa Marketplace | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.35% | |||
5.19%, payable through 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 6,900,000 | 8,400,000 | ||
Stated interest rate | 5.19% | |||
6.38%, payable through 2017, secured by Midstate Hayes | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 8,200,000 | 8,200,000 | ||
Stated interest rate | 6.38% | |||
LIBOR plus 1.0%, payable through 2021, secured by asphalt terminal | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | [6] | $ 6,000,000 | 6,900,000 | |
Basis spread on variable rate | 1.00% | |||
Swapped maturity fixed interest rate | 5.98% | |||
LIBOR plus 1.0%, payable through 2021, secured by asphalt terminal | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
1.85%, payable through 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 3,200,000 | 5,200,000 | ||
Stated interest rate | 1.85% | |||
3.31%, payable through 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 3,300,000 | 4,600,000 | ||
Stated interest rate | 3.31% | |||
2.00%, payable through 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 1,000,000 | 1,500,000 | ||
Stated interest rate | 2.00% | |||
2.65%, payable through 2016 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 100,000 | $ 600,000 | ||
Stated interest rate | 2.65% | |||
[1] | On December 1, 2014, the Company refinanced and increased the amount of the loan secured by Pearl Highlands Center. | |||
[2] | Loan has a stated interest rate of LIBOR plus 1.5%, but is swapped through maturity to a 5.95% fixed rate. | |||
[3] | Loan has an effective interest rate of 2.52% for 2016 and 2.83% for 2015. | |||
[4] | Loan has an effective interest rate of 3.15% for 2016 and 2.82% for 2015. | |||
[5] | Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.135% fixed rate. | |||
[6] | Loan has a stated interest rate of LIBOR plus 1.0%, but is swapped through maturity to a 5.98% fixed rate. |
Cessation of HC&S Sugar Opera60
Cessation of HC&S Sugar Operations - Summary of Pre-tax Costs and Remaining Costs Associated with Restructuring (Details) - HC&S $ in Millions | 3 Months Ended | 9 Months Ended | 21 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Total cessation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges Incurred | $ 17.6 | $ 51.6 | $ 74.2 |
Total cessation costs | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 22.8 | 22.8 | 22.8 |
Total Expected Cost | 97 | 97 | 97 |
Total cessation costs | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 38.8 | 38.8 | 38.8 |
Total Expected Cost | 113 | 113 | 113 |
Employee severance benefits and related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges Incurred | 1.7 | 6.7 | 20.1 |
Employee severance benefits and related costs | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 2.9 | 2.9 | 2.9 |
Total Expected Cost | 23 | 23 | 23 |
Employee severance benefits and related costs | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 7.4 | 7.4 | 7.4 |
Total Expected Cost | 27.5 | 27.5 | 27.5 |
Asset write-offs and accelerated depreciation | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges Incurred | 14.5 | 40.6 | 49.8 |
Asset write-offs and accelerated depreciation | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 10.2 | 10.2 | 10.2 |
Total Expected Cost | 59 | 59 | 59 |
Asset write-offs and accelerated depreciation | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 17.2 | 17.2 | 17.2 |
Total Expected Cost | 66 | 66 | 66 |
Property removal, restoration and other exit-related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges Incurred | 1.4 | 4.3 | 4.3 |
Property removal, restoration and other exit-related costs | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 9.7 | 9.7 | 9.7 |
Total Expected Cost | 15 | 15 | 15 |
Property removal, restoration and other exit-related costs | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Range of Expected Remaining Cessation Charges | 14.2 | 14.2 | 14.2 |
Total Expected Cost | $ 19.5 | $ 19.5 | $ 19.5 |
Cessation of HC&S Sugar Opera61
Cessation of HC&S Sugar Operations - Rollforward of Restructuring Liabilities (Details) - HC&S $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 17.5 | |
Expense | 8.3 | |
Cash payments | (8.1) | |
Change in estimates | (0.5) | [1] |
Restructuring reserve, ending balance | 17.2 | |
Employee severance benefits and related costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 13.4 | |
Expense | 7.1 | |
Cash payments | (6.9) | |
Change in estimates | (0.5) | [1] |
Restructuring reserve, ending balance | 13.1 | |
Property removal, restoration and other exit-related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset retirement obligations | 4.1 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 4.1 | [2] |
Expense | 1.2 | [2] |
Cash payments | (1.2) | [2] |
Change in estimates | 0 | [1],[2] |
Restructuring reserve, ending balance | $ 4.1 | [2] |
[1] | Changes in estimates primarily related to voluntary employee attrition which resulted in the forfeiture of severance and related benefits. | |
[2] | Includes asset retirement obligations of $4.1 million. |
Cessation of HC&S Sugar Opera62
Cessation of HC&S Sugar Operations - Cessation-related Liabilities Included in the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Total current portion | $ 16.9 | $ 6.4 | |
HC&S | |||
Restructuring Cost and Reserve [Line Items] | |||
Total current portion | 16.9 | 6.4 | |
Total long-term portion | 0.3 | 11.1 | |
Total Cessation-related liabilities | 17.2 | 17.5 | |
HC&S | Employee severance benefits and related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Cessation-related liabilities | 13.1 | 13.4 | |
HC&S | Other exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Cessation-related liabilities | [1] | 4.1 | 4.1 |
HC&S Cessation Related Liabilities - Current | HC&S | Employee severance benefits and related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total current portion | 13.1 | 5.8 | |
HC&S Cessation Related Liabilities - Current | HC&S | Other exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total current portion | 3.8 | 0.6 | |
Other Non-Current Liabilities | HC&S | Employee severance benefits and related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total long-term portion | 0 | 7.6 | |
Other Non-Current Liabilities | HC&S | Other exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total long-term portion | $ 0.3 | $ 3.5 | |
[1] | Includes asset retirement obligations of $4.1 million. |
Investment in Affiliates (Detai
Investment in Affiliates (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Operating income | $ 32.3 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges of Interest Rate Swaps (Details) - Interest Rate Swap - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Interest Rate | 3.135% | |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | $ 60,000,000 | |
Other Non-Current Liabilities | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Interest Rate | 3.135% | |
Notional Amount | $ 60,000,000 | |
Fair value of interest rate swap liability | $ (2,700,000) | $ 0 |
Derivative Instruments - Non-de
Derivative Instruments - Non-designated Hedges Interest Rate Swaps (Details) | Sep. 30, 2016USD ($)interest_rate_swap | Dec. 31, 2015USD ($) |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Interest Rate | 3.135% | |
Not Designated as Hedging Instrument | September 1, 2021 | Other Non-Current Liabilities | ||
Derivative [Line Items] | ||
Interest Rate | 5.95% | |
Notional Amount | $ 11,300,000 | |
Fair value of interest rate swap liability | $ (1,800,000) | $ (1,700,000) |
Not Designated as Hedging Instrument | March 1, 2021 | Other Non-Current Liabilities | ||
Derivative [Line Items] | ||
Interest Rate | 5.98% | |
Notional Amount | $ 6,400,000 | |
Fair value of interest rate swap liability | $ (600,000) | (800,000) |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate swap agreements | interest_rate_swap | 2 | |
Not Designated as Hedging Instrument | Interest Rate Swap | Other Non-Current Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | $ 17,700,000 | |
Fair value of interest rate swap liability | $ (2,400,000) | $ (2,500,000) |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments in Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount of (gain) loss recognized in OCI on derivatives (effective portion) | $ 0 | $ 0 | $ 2.8 | $ 0 |
Interest Expense | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount of (gain) loss reclassified from accumulated OCI into earnings under interest expense (ineffective portion and amount excluded from effectiveness testing) | (0.2) | 0 | (0.2) | 0 |
Amount of (gain) loss on derivatives recognized in earnings under interest expense (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 |
Other Nonoperating Income (Expense) | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount of realized and unrealized loss on derivatives recognized in earnings under interest income and other | $ 0 | $ 0.5 | $ 0.7 | $ 0.9 |
Segment Results - Schedule of S
Segment Results - Schedule of Segment Results (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2016Property | Jun. 30, 2015Property | Mar. 31, 2015Property | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||
Revenue | $ 138.7 | $ 144.7 | $ 350.2 | $ 449.1 | ||||
Operating profit | 10.2 | 22.2 | 19 | 107 | ||||
HC&S cessation costs | (17.6) | 0 | (51.6) | 0 | ||||
Interest expense | (6.4) | (6.5) | (20.1) | (20.2) | ||||
General corporate expenses | (5.5) | (4.8) | (16) | (15.7) | ||||
REIT evaluation costs | 1.9 | 0 | 3.8 | 0 | ||||
Reductions in solar investments | [1] | (0.2) | (0.1) | (9.7) | (1.7) | |||
Income (Loss) Before Income Taxes | (3.8) | 10.8 | (30.6) | 69.4 | ||||
Income tax expense (benefit) | (2.4) | 3.8 | (21.6) | 26.4 | ||||
Net Income (Loss) | (1.4) | 7 | (9) | 43 | ||||
Income attributable to noncontrolling interest | (0.5) | (0.3) | (1.1) | (1.2) | ||||
Net Income (Loss) Attributable to A&B Shareholders | (1.9) | 6.7 | (10.1) | 41.8 | ||||
COLORADO | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of properties sold | Property | 1 | |||||||
CALIFORNIA | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of properties sold | Property | 2 | |||||||
UTAH | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of properties sold | Property | 1 | |||||||
TEXAS | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of properties sold | Property | 1 | |||||||
Operating Segments | Commercial Real Estate | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | [2] | 32.9 | 33 | 102.3 | 100.5 | |||
Operating profit | 13.7 | 12.5 | 42.6 | 39.6 | ||||
Operating Segments | Development and sales | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 12.8 | 19.9 | 74.1 | 108.8 | ||||
Operating profit | 6.6 | 11.2 | 7.8 | 57.5 | ||||
Operating Segments | Materials and Construction | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | [2] | 52.1 | 51 | 144.8 | 165.3 | |||
Operating profit | 5.6 | 7.5 | 18.5 | 21.7 | ||||
Operating Segments | Agribusiness | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | [2] | 40.9 | 40.8 | 89.7 | 95.5 | |||
Operating profit | 1.9 | (9) | 1.7 | (11.8) | ||||
HC&S cessation costs | [3] | (17.6) | 0 | (51.6) | 0 | |||
Reconciling item | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | [4] | $ 0 | $ 0 | $ (60.7) | $ (21) | |||
[1] | Amounts represent reductions in the carrying values of the Company's solar investments. See Note 12. | |||||||
[2] | Inter-segment revenue during the each of the three and nine month periods ended September 30, 2016 and 2015 were immaterial. | |||||||
[3] | Costs related to the cessation of HC&S sugar operations. See Note 14. | |||||||
[4] | Represents the sales of two California and one Utah property in June 2016 and a Colorado retail property in March 2015 and a Texas office building in June 2015 that are classified as "Gain on the sale of improved property" in the Condensed Consolidated Statements of Operations, but reflected as revenue for segment reporting purposes. |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Oct. 25, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Subsequent Event [Line Items] | |||||
Cash dividends per share (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.18 | $ 0.15 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends per share (in dollars per share) | $ 0.07 |