Cover
Cover | 9 Months Ended |
Sep. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2022 |
Document Transition Report | false |
Entity File Number | 001-35492 |
Entity Registrant Information | ALEXANDER & BALDWIN, INC. |
Entity Incorporation, State or Country Code | HI |
Entity Tax Identification Number | 45-4849780 |
Entity Address, Address Line One | 822 Bishop Street |
Entity Address, Address Line Two | P. O. Box 3440, |
Entity Address, City or Town | Honolulu, |
Entity Address, State or Province | HI |
Entity Address, Postal Zip Code | 96801 |
City Area Code | 808 |
Local Phone Number | 525-6611 |
Title of 12(b) Security | Common Stock, without par value |
Trading Symbol | ALEX |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 72,544,235 |
Entity Central Index Key | 0001545654 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Real estate investments | ||
Real estate property | $ 1,598.3 | $ 1,588.2 |
Accumulated depreciation | (197.6) | (180.5) |
Real estate property, net | 1,400.7 | 1,407.7 |
Real estate developments | 64.8 | 65 |
Investments in real estate joint ventures and partnerships | 8.2 | 8.8 |
Real estate intangible assets, net | 45.4 | 51.6 |
Real estate investments, net | 1,519.1 | 1,533.1 |
Cash and cash equivalents | 7.3 | 70 |
Restricted cash | 0.2 | 1 |
Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts of $1.1 million and $1.3 million as of September 30, 2022, and December 31, 2021, respectively | 35.9 | 28.9 |
Inventories | 30.1 | 20.3 |
Other property, net | 69.6 | 83.5 |
Operating lease right-of-use assets | 37 | 20.1 |
Goodwill | 8.7 | 8.7 |
Other receivables, net of allowance for credit losses and allowance for doubtful accounts of $2.2 million and $2.5 million as of September 30, 2022, and December 31, 2021, respectively | 6.1 | 11.6 |
Prepaid expenses and other assets | 133.9 | 102.6 |
Total assets | 1,847.9 | 1,879.8 |
Liabilities: | ||
Notes payable and other debt | 469.7 | 532.7 |
Accounts payable | 18.5 | 9.9 |
Operating lease liabilities | 36.8 | 19.4 |
Accrued pension and post-retirement benefits | 10.4 | 56.3 |
Deferred revenue | 71.3 | 68.5 |
Accrued and other liabilities | 105.9 | 119.5 |
Total liabilities | 712.6 | 806.3 |
Commitments and Contingencies | ||
Redeemable Noncontrolling Interest | 8.1 | 6.9 |
Equity: | ||
Common stock - no par value; authorized, 150.0 million shares; outstanding, 72.5 million and 72.5 million shares at September 30, 2022 and December 31, 2021, respectively | 1,809.4 | 1,810.5 |
Accumulated other comprehensive income (loss) | 4.5 | (80.7) |
Distributions in excess of accumulated earnings | (686.7) | (663.2) |
Total equity | 1,127.2 | 1,066.6 |
Total liabilities and equity | $ 1,847.9 | $ 1,879.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses and allowance for doubtful accounts on Accounts receivable and retention | $ 1.1 | $ 1.3 |
Allowance for credit losses and allowance for doubtful accounts on Other receivables | $ 2.2 | $ 2.5 |
Common stock authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock outstanding (in shares) | 72,500,000 | 72,500,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Revenue: | ||||
Total operating revenue | $ 97.2 | $ 84.3 | $ 283.5 | $ 254.6 |
Operating Costs and Expenses: | ||||
Selling, general and administrative | 12.7 | 12.6 | 38.3 | 37.2 |
Total operating costs and expenses | 85.2 | 73.2 | 242.1 | 215.8 |
Gain (loss) on disposal of commercial real estate properties, net | 0 | 0 | 0 | 0.2 |
Gain (loss) on disposal of non-core assets, net | 0 | 0 | 54 | 0.2 |
Total gain (loss) on disposal of assets, net | 0 | 0 | 54 | 0.4 |
Operating Income (Loss) | 12 | 11.1 | 95.4 | 39.2 |
Other Income and (Expenses): | ||||
Income (loss) related to joint ventures | 0.4 | 2.7 | 1.8 | 12.2 |
Pension termination | 0 | 0 | (76.9) | 0 |
Interest and other income (expense), net | (0.1) | (0.2) | 0.7 | (1) |
Interest expense | (5.5) | (6.5) | (16.8) | (20.2) |
Income (Loss) from Continuing Operations Before Income Taxes | 6.8 | 7.1 | 4.2 | 30.2 |
Income tax benefit (expense) | 0 | 0 | 18.1 | (0.1) |
Income (Loss) from Continuing Operations | 6.8 | 7.1 | 22.3 | 30.1 |
Income (loss) from discontinued operations, net of income taxes | 0 | (0.6) | (0.1) | (0.7) |
Net Income (Loss) | 6.8 | 6.5 | 22.2 | 29.4 |
Loss (income) attributable to noncontrolling interest | (0.4) | (0.1) | (1.2) | (0.3) |
Net Income (Loss) Attributable to A&B Shareholders | $ 6.4 | $ 6.4 | $ 21 | $ 29.1 |
Basic Earnings (Loss) Per Share of Common Stock: | ||||
Continuing operations available to A&B shareholders (in dollars per share) | $ 0.09 | $ 0.10 | $ 0.29 | $ 0.41 |
Discontinued operations available to A&B shareholders (in dollars per share) | 0 | (0.01) | 0 | (0.01) |
Net income (loss) available to A&B shareholders (in dollars per share) | 0.09 | 0.09 | 0.29 | 0.40 |
Diluted Earnings (Loss) Per Share of Common Stock: | ||||
Continuing operations available to A&B shareholders (in dollars per share) | 0.09 | 0.10 | 0.29 | 0.41 |
Discontinued operations available to A&B shareholders (in dollars per share) | 0 | (0.01) | 0 | (0.01) |
Net income (loss) available to A&B shareholders (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.29 | $ 0.40 |
Weighted-Average Number of Shares Outstanding: | ||||
Basic (in shares) | 72.7 | 72.5 | 72.7 | 72.5 |
Diluted (in shares) | 72.8 | 72.7 | 72.8 | 72.6 |
Amounts Available to A&B Common Shareholders : | ||||
Continuing operations available to A&B common shareholders | $ 6.3 | $ 6.9 | $ 20.9 | $ 29.7 |
Discontinued operations available to A&B common shareholders | 0 | (0.6) | (0.1) | (0.7) |
Net income (loss) available to A&B common shareholders | 6.3 | 6.3 | 20.8 | 29 |
Commercial Real Estate | ||||
Operating Revenue: | ||||
Commercial Real Estate | 46.2 | 44 | 138.1 | 127.2 |
Operating Costs and Expenses: | ||||
Cost of Commercial Real Estate | 25 | 24.1 | 73.2 | 71 |
Land Operations | ||||
Operating Revenue: | ||||
Revenues | 2.9 | 5.4 | 20.9 | 38.5 |
Operating Costs and Expenses: | ||||
Operating costs | 4.2 | 4.7 | 19.1 | 23.4 |
Materials & Construction | ||||
Operating Revenue: | ||||
Revenues | 48.1 | 34.9 | 124.5 | 88.9 |
Operating Costs and Expenses: | ||||
Operating costs | $ 43.3 | $ 31.8 | $ 111.5 | $ 84.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 6.8 | $ 6.5 | $ 22.2 | $ 29.4 |
Cash flow hedges: | ||||
Unrealized interest rate hedging gain (loss) | 2.6 | 0.2 | 8 | 1.9 |
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | (0.1) | 0.4 | 0.5 | 1.2 |
Realized interest rate hedging gain (loss) | 0 | 0 | (0.5) | 0 |
Employee benefit plans: | ||||
Actuarial gain (loss) | 0 | (4.7) | 16.6 | (4.7) |
Amortization of net loss included in net periodic benefit cost | 0.1 | 0.5 | 1.9 | 1.9 |
Amortization of prior service cost included in net periodic benefit cost | 0 | 0 | 0.1 | 0 |
Pension termination | 0 | 0 | 76.9 | 0 |
Income taxes related to other comprehensive income (loss) | 0 | 0 | (18.3) | 0 |
Other comprehensive income (loss), net of tax | 2.6 | (3.6) | 85.2 | 0.3 |
Comprehensive Income (Loss) | 9.4 | 2.9 | 107.4 | 29.7 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.4) | (0.1) | (1.2) | (0.3) |
Comprehensive Income (Loss) Attributable to A&B Shareholders | $ 9 | $ 2.8 | $ 106.2 | $ 29.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 22.2 | $ 29.4 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||
Depreciation and amortization | 33.1 | 37.7 |
Income tax benefit related to pension termination and other, net | (18.3) | 0 |
Loss (gain) from disposals and asset transactions, net | (54) | (0.4) |
Share-based compensation expense | 4.6 | 4.4 |
Equity in (income) loss from affiliates, net of operating cash distributions | (1.1) | (10.1) |
Pension termination | 76.9 | 0 |
Changes in operating assets and liabilities: | ||
Trade, contracts retention, and other contract receivables | (8.7) | 9.5 |
Inventories | (9.8) | (3.8) |
Prepaid expenses, income tax receivable and other assets | (13.1) | 0.3 |
Development/other property inventory | 9.5 | 0.4 |
Accrued pension and post-retirement benefits | (31.3) | (4) |
Accounts payable | 5.7 | 2.9 |
Accrued and other liabilities | (6.7) | 0.9 |
Net cash provided by (used in) operations | 9 | 67.2 |
Cash Flows from Investing Activities: | ||
Capital expenditures for property, plant and equipment | (15.7) | (26.1) |
Proceeds from disposal of assets | 73.1 | 0.6 |
Payments for purchases of investments in affiliates and other investments | (1.5) | (0.8) |
Distributions of capital and other receipts from investments in affiliates and other investments | 0.1 | 40.2 |
Net cash provided by (used in) investing activities | 56 | 13.9 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of notes payable and other debt | 13.5 | 128 |
Payments of notes payable and other debt and deferred financing costs | (29.3) | (192.2) |
Borrowings (payments) on line-of-credit agreement, net | (50) | 0 |
Cash dividends paid | (57.7) | (46.5) |
Repurchases of common stock and other payments | (5) | (1.1) |
Net cash provided by (used in) financing activities | (128.5) | (111.8) |
Cash, Cash Equivalents and Restricted Cash | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (63.5) | (30.7) |
Balance, beginning of period | 71 | 57.4 |
Balance, end of period | 7.5 | 26.7 |
Other Cash Flow Information: | ||
Interest paid, net of capitalized interest | (15.8) | (18.4) |
Income tax (payments)/refunds, net | 0.1 | 0.4 |
Noncash Investing and Financing Activities: | ||
Capital expenditures included in accounts payable and accrued and other liabilities | 0.3 | 1.6 |
Operating lease liabilities arising from obtaining ROU assets | 20 | 5.5 |
Finance lease liabilities arising from obtaining ROU assets | 2.7 | 0.1 |
Dividends declared but unpaid at end of period | 0.3 | 0 |
Repurchases of capital stock in accrued and other liabilities | 0.9 | 0 |
Escrow receivable from disposal of assets | 0.9 | 0 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 70 | 57.2 |
Restricted cash, beginning of period | 1 | 0.2 |
Cash and cash equivalents, end of period | 7.3 | 26.5 |
Restricted cash, end of period | 0.2 | 0.2 |
Cash, cash equivalents and restricted cash | $ 7.5 | $ 26.7 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTEREST - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Accumulated Other Compre- hensive Income (Loss) | (Distribution in Excess of Accumulated Earnings) Earnings Surplus |
Beginning balance (in shares) at Dec. 31, 2020 | 72.4 | |||
Beginning balance at Dec. 31, 2020 | $ 1,096.1 | $ 1,805.5 | $ (60) | $ (649.4) |
Total Equity | ||||
Net income (loss) | 29.1 | 29.1 | ||
Other comprehensive income (loss), net of tax | 0.3 | 0.3 | ||
Dividend on common stock | (35.7) | (35.7) | ||
Share-based compensation | 4.4 | $ 4.4 | ||
Shares issued (repurchased), net (in shares) | 0.1 | |||
Shares issued (repurchased), net | (0.9) | $ (0.9) | ||
Ending balance (in shares) at Sep. 30, 2021 | 72.5 | |||
Ending balance at Sep. 30, 2021 | 1,093.3 | $ 1,809 | (59.7) | (656) |
Redeemable Non-Controlling Interest, beginning balance at Dec. 31, 2020 | 6.5 | |||
Redeemable Non- Controlling Interest | ||||
Net income (loss) | 0.3 | |||
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2021 | 6.8 | |||
Beginning balance (in shares) at Jun. 30, 2021 | 72.5 | |||
Beginning balance at Jun. 30, 2021 | 1,102.2 | $ 1,807.5 | (56.1) | (649.2) |
Total Equity | ||||
Net income (loss) | 6.4 | 6.4 | ||
Other comprehensive income (loss), net of tax | (3.6) | (3.6) | ||
Dividend on common stock | (13.2) | (13.2) | ||
Share-based compensation | 1.6 | 1.6 | ||
Shares issued (repurchased), net | (0.1) | $ (0.1) | ||
Ending balance (in shares) at Sep. 30, 2021 | 72.5 | |||
Ending balance at Sep. 30, 2021 | 1,093.3 | $ 1,809 | (59.7) | (656) |
Redeemable Non-Controlling Interest, beginning balance at Jun. 30, 2021 | 6.7 | |||
Redeemable Non- Controlling Interest | ||||
Net income (loss) | 0.1 | |||
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2021 | 6.8 | |||
Beginning balance (in shares) at Dec. 31, 2021 | 72.5 | |||
Beginning balance at Dec. 31, 2021 | 1,066.6 | $ 1,810.5 | (80.7) | (663.2) |
Total Equity | ||||
Net income (loss) | 21 | 21 | ||
Other comprehensive income (loss), net of tax | 85.2 | 85.2 | ||
Dividend on common stock | (44.8) | (44.8) | ||
Share-based compensation | 4.6 | $ 4.6 | ||
Shares issued (repurchased), net (in shares) | 0 | |||
Shares issued (repurchased), net | (5.4) | $ (5.7) | 0.3 | |
Ending balance (in shares) at Sep. 30, 2022 | 72.5 | |||
Ending balance at Sep. 30, 2022 | 1,127.2 | $ 1,809.4 | 4.5 | (686.7) |
Redeemable Non-Controlling Interest, beginning balance at Dec. 31, 2021 | 6.9 | |||
Redeemable Non- Controlling Interest | ||||
Net income (loss) | 1.2 | |||
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2022 | 8.1 | |||
Beginning balance (in shares) at Jun. 30, 2022 | 72.7 | |||
Beginning balance at Jun. 30, 2022 | 1,136 | $ 1,811.2 | 1.9 | (677.1) |
Total Equity | ||||
Net income (loss) | 6.4 | 6.4 | ||
Other comprehensive income (loss), net of tax | 2.6 | 2.6 | ||
Dividend on common stock | (16.2) | (16.2) | ||
Share-based compensation | 1.6 | $ 1.6 | ||
Shares issued (repurchased), net (in shares) | (0.2) | |||
Shares issued (repurchased), net | (3.2) | $ (3.4) | 0.2 | |
Ending balance (in shares) at Sep. 30, 2022 | 72.5 | |||
Ending balance at Sep. 30, 2022 | 1,127.2 | $ 1,809.4 | $ 4.5 | $ (686.7) |
Redeemable Non-Controlling Interest, beginning balance at Jun. 30, 2022 | 7.7 | |||
Redeemable Non- Controlling Interest | ||||
Net income (loss) | 0.4 | |||
Redeemable Non-Controlling Interest, ending balance at Sep. 30, 2022 | $ 8.1 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTEREST (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.20 | $ 0.18 | $ 0.61 | $ 0.49 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Description of Business: Alexander & Baldwin, Inc. ("A&B" or the "Company") is a real estate investment trust ("REIT") headquartered in Honolulu, Hawai‘i. The Company operates in three segments: Commercial Real Estate ("CRE"); Land Operations; and Materials & Construction ("M&C"). As of September 30, 2022, the Company owns a portfolio of commercial real estate improved properties in Hawai‘i consisting of 22 retail centers, 12 industrial assets, and four office properties, representing a total of 3.9 million square feet of gross leasable area, as well as a portfolio of ground leases in Hawai‘i representing 140.8 acres. Throughout this quarterly report on Form 10-Q, references to "we," "our," "us" and "our Company" refer to Alexander & Baldwin, Inc., together with its consolidated subsidiaries. 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, 2021 and 2020, and the related consolidated statements of operations, comprehensive income (loss), cash flows, and equity and redeemable noncontrolling interest for each of the three years ended December 31, 2021, 2020, and 2019, respectively, and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2021 ("2021 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission ("SEC"). Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2 to the consolidated financial statements included in Item 8 of the Company's 2021 Form 10-K. There have not been any changes to the Company's significant accounting policies as described in the Company's 2021 Form 10-K. Recently issued accounting pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform , establishing ASC Topic 848, and amended the standard thereafter through ASU No. 2021-01 (collectively, "ASC 848"). ASC 848 provides optional practical expedients and exceptions related to the impacts of reference rate reform that affect certain debt, leases, derivatives and other contracts if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Reference rate reform has not had a material impact on any of the Company's existing contracts. Therefore, the Company has not elected to apply any of the optional practical expedients and exceptions under ASC 848 as of the current date. The Company will assess future changes in its contracts and the impact of electing to apply the optional practical expedients and exceptions provided by ASC 848 as they occur, but expects their application will not have a material effect on its financial position or results of operations. Interest and other income (expense), net Interest and other income (expense), net for the three and nine months ended September 30, 2022 and 2021, included the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Interest income $ — $ 0.2 $ 0.2 $ 0.8 Pension and post-retirement benefit (expense) (0.1) (0.7) (0.6) (2.1) Other income (expense), net — 0.3 1.1 0.3 Interest and other income (expense), net $ (0.1) $ (0.2) $ 0.7 $ (1.0) |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENTS IN AFFILIATES The Company's investments in affiliates principally consist of equity investments in limited liability companies in which the Company has the ability to exercise significant influence over the operating and financial policies of these investments. Accordingly, the Company accounts for its investments using the equity method of accounting. Operating results presented in the Company's condensed consolidated financial statements include the Company's proportionate share of net income (loss) from its equity method investments. Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2022 and 2021, is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues $ 46.8 $ 60.6 $ 120.9 $ 188.9 Operating costs and expenses 41.4 58.3 111.6 167.2 Gross Profit (Loss) $ 5.4 $ 2.3 $ 9.3 $ 21.7 Income (Loss) from Continuing Operations 1 $ 1.2 $ 1.0 $ (3.5) $ 10.0 Net Income (Loss) 1 $ 1.3 $ (0.5) $ 2.0 $ 9.1 1 Includes earnings from equity method investments held by the investee. During the nine months ended September 30, 2022 and 2021, Income (loss) related to joint ventures was $1.8 million and $12.2 million, respectively, and return on investment operating cash distributions was $0.7 million and $2.1 million, respectively. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost (principally first-in, first-out basis) or net realizable value. Inventories as of September 30, 2022, and December 31, 2021, were as follows (in millions): September 30, December 31, 2022 2021 Asphalt $ 9.0 $ 4.7 Processed rock and sand 12.5 8.1 Retail merchandise 2.4 2.1 Parts, materials and supplies inventories 6.2 5.4 Total $ 30.1 $ 20.3 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value of the Company's cash and cash equivalents, accounts receivable and retention, net and short-term borrowings approximate their carrying values due to the short-term nature of the instruments. The fair value of the Company's notes receivable approximated the carrying amount of $1.9 million as of September 30, 2022, and $8.4 million as of December 31, 2021. The fair value of these notes is estimated using a discounted cash flow analysis in which the Company uses unobservable inputs such as market interest rates determined by the loan-to-value and market capitalization rates related to the underlying collateral at which management believes similar loans would be made and classified as a Level 3 measurement in the fair value hierarchy. As of September 30, 2022, the carrying amount of the Company's notes payable and other debt was $469.7 million and the corresponding fair value was $442.3 million. As of December 31, 2021, the carrying amount of the Company's notes payable and other debt was $532.7 million, and the corresponding fair value was $554.3 million. The fair value of debt is calculated by discounting the future cash flows of the debt at market rates for instruments with similar risk, terms and maturities as compared to the Company's existing debt arrangements and classified as a Level 3 measurement in the fair value hierarchy. The Company records its interest rate swaps at fair value. The fair values of the Company's interest rate swaps are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs (refer to Note 7 for fair value information regarding the Company's derivative instruments). The fair values of the Company's interest rate swaps are classified as a Level 2 measurement in the fair value hierarchy. |
NOTES PAYABLE AND OTHER DEBT
NOTES PAYABLE AND OTHER DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND OTHER DEBT | NOTES PAYABLE AND OTHER DEBT As of September 30, 2022, and December 31, 2021, notes payable and other debt consisted of the following (dollars in millions): Interest Rate (%) Maturity Date Principal Outstanding September 30, 2022 December 31, 2021 Secured: Heavy Equipment Financing (1) (1) $ 1.3 $ 1.9 Laulani Village 3.93% 2024 59.4 60.2 Pearl Highlands 4.15% 2024 77.9 79.4 Photovoltaic Financing (2) 2027 2.6 — Manoa Marketplace (3) 2029 54.9 56.3 Subtotal $ 196.1 $ 197.8 Unsecured: Series A Note 5.53% 2024 $ 14.2 $ 21.3 Series J Note 4.66% 2025 10.0 10.0 Series B Note 5.55% 2026 36.0 45.0 Series C Note 5.56% 2026 11.0 13.0 Series F Note 4.35% 2026 15.2 15.2 Series H Note 4.04% 2026 50.0 50.0 Series K Note 4.81% 2027 34.5 34.5 Series G Note 3.88% 2027 28.1 28.1 Series L Note 4.89% 2028 18.0 18.0 Series I Note 4.16% 2028 25.0 25.0 Term Loan 5 4.30% 2029 25.0 25.0 Subtotal $ 267.0 $ 285.1 Revolving Credit Facilities: GLP Asphalt Wells Fargo revolving credit facility (4) 2022 $ — $ — GLP Asphalt FHB revolving credit facility (5) 2024 6.8 — A&B Revolver (6) 2025 — 50.0 Subtotal $ 6.8 $ 50.0 Total debt (contractual) $ 469.9 $ 532.9 Unamortized debt issuance costs (0.2) (0.2) Total debt (carrying value) $ 469.7 $ 532.7 (1) Financing leases have a weighted average stated interest rate of approximately 2.90% and stated maturity dates ranging from 2022 to 2027. (2) Financing lease has a discount rate of 4.14%. (3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. (4) Loan had a stated interest rate of SOFR plus 1.75%. Credit agreement terminated on June 15, 2022. (5) Loan has a stated interest rate of BSBY plus 1.25%. (6) Loan has a stated interest rate of LIBOR plus 1.05% based on a pricing grid. $50.0 million was swapped through June 2022 to a 2.40% fixed rate. On March 5, 2021, the Financial Conduct Authority announced a timeline for the phase-out of the London Interbank Offered Rate ("LIBOR"). The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency subsequently issued a joint statement saying that banks should stop entering into new contracts with LIBOR as soon as possible but at least by December 31, 2021. As of January 1, 2022, LIBOR can only be used for legacy LIBOR obligations entered into prior to December 31, 2021. In addition, LIBOR will cease to be available after June 30, 2023. The Secured Overnight Financing Rate ("SOFR") and Bloomberg Short Term Bank Yield Index ("BSBY") have been identified as replacements to LIBOR, with the former being recommended by the Federal Reserve-formed Alternative Reference Rates Committee. As of March 31, 2022, the GLP Asphalt Wells Fargo Revolving Credit Facility had transitioned from LIBOR to a benchmark based on SOFR. On April 29, 2022, the Company entered into a Sixth Amendment to this credit agreement with Wells Fargo Bank, NA, extending the maturity date by 45 days from May 1, 2022, to June 15, 2022. The credit agreement terminated on June 15, 2022. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company is exposed to interest rate risk related to its variable-rate interest debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed-rate and variable-rate debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk. Cash Flow Hedges of Interest Rate Risk As of September 30, 2022, the Company had one interest rate swap agreement designated as a cash flow hedge, while as of December 31, 2021, there were two such swaps, whose key terms are as follows (dollars in millions): Effective Maturity Fixed Interest Notional Amount at Asset (Liability) Fair Value at Date Date Rate September 30, 2022 September 30, 2022 December 31, 2021 4/7/2016 8/1/2029 3.14% $ 54.9 $ 5.9 $ (1.7) 2/13/2020 2/27/2023 (1) $ — $ — $ (0.5) (1) $50.0 million in notional interest rate swap was terminated on June 30, 2022, resulting in a realized gain of $0.5 million included within Interest and other income (expense), net . The asset related to the interest rate swap as of September 30, 2022, is presented within Prepaid expenses and other assets in the condensed consolidated balance sheet. The liability related to the interest rate swaps as of December 31, 2021, is presented within Accrued and other liabilities . The changes in fair value of the cash flow hedges are recorded in Accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related variable-rate debt. The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statement of comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021, (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Derivatives in Designated Cash Flow Hedging Relationships: Amount of gain (loss) recognized in OCI on derivatives $ 2.6 $ 0.2 $ 8.0 $ 1.9 Impact of reclassification adjustment to interest expense included in Net Income (Loss) $ (0.1) $ 0.4 $ 0.5 $ 1.2 Realized interest rate hedging gain (loss) $ — $ — $ (0.5) $ — As of September 30, 2022, the Company expects to reclassify $0.3 million of net gains (losses) on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and other financial arrangements The Company has various financial commitments and other arrangements including standby letters of credit and bonds that are not recorded as liabilities on the Company's condensed consolidated balance sheet as of September 30, 2022: • Standby letters of credit issued by the Company's lenders under the Company's revolving credit facilities totaled $1.1 million as of September 30, 2022. These letters of credit primarily relate to the Company's workers' compensation plans and construction activities; if drawn upon, the Company would be obligated to reimburse the issuer. • Bonds related to the Company's construction and real estate activities totaled $332.3 million as of September 30, 2022. Approximately $313.7 million represents the face value of construction bonds issued by third party sureties (bid, performance and payment bonds), and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license and notary bonds); if drawn upon, the Company would be obligated to reimburse the surety that issued the bond for the amount of the bond, reduced for the work completed to date. As of September 30, 2022, the Company's maximum remaining exposure, in the event of defaults on all existing contractual construction obligations, was approximately $128.1 million. The Company also provides certain bond indemnities and guarantees of indebtedness for certain of its unconsolidated affiliates that it accounts for as equity method investments (e.g., real estate joint ventures). • Bond indemnities are provided for the benefit of the surety in exchange for the issuance of surety bonds and cover joint venture construction activities (such as project amenities, roads, utilities, and other infrastructure). Under such bond indemnities, the Company and the 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 Company may be obligated to complete construction of the joint ventures' construction projects if the joint venture does not perform. 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. • Guarantees of indebtedness may be provided by the Company for the benefit of financial institutions providing credit to unconsolidated equity method investees. As of September 30, 2022, the Company had one arrangement with third party lenders that provided for a limited guarantee on any outstanding amounts related to an unconsolidated equity method investee's line of credit; related to borrowings on such line of credit by the equity method investee, there was $0.5 million outstanding as of September 30, 2022. The recorded amounts of the bond indemnities and guarantee of indebtedness were not material individually or in the aggregate. Other than those described above, obligations of the Company's joint ventures do not have recourse to the Company, and the Company's "at-risk" amounts are limited to its investment. Legal proceedings and other contingencies Prior to the sale of approximately 41,000 acres of agricultural land on Maui to Mahi Pono Holdings, LLC ("Mahi Pono") in December 2018, the Company, through East Maui Irrigation Company, LLC ("EMI"), also owned approximately 16,000 acres of watershed lands in East Maui and held four water licenses to approximately 30,000 acres owned by the State of Hawai‘i in East Maui. The sale to Mahi Pono included the sale of a 50% interest in EMI (which closed February 1, 2019), and provided for the Company and Mahi Pono, through EMI, to jointly continue the existing process to secure a long-term lease from the State for delivery of irrigation water to Mahi Pono for use in Central Maui. The last of these water license agreements expired in 1986, and all four agreements were then extended as revocable permits that were renewed annually. In 2001, a request was made to the State Board of Land and Natural Resources (the "BLNR") to replace these revocable permits with a long-term water lease. Pending the completion by the BLNR of a contested case hearing it ordered to be held on the request for the long-term lease, the BLNR has kept the existing permits on a holdover basis. Three parties (Healoha Carmichael; Lezley Jacintho; and Na Moku Aupuni O Ko‘olau Hui) filed a lawsuit on April 10, 2015, (the "Initial Lawsuit") alleging that the BLNR has been renewing the revocable permits annually rather than keeping them in holdover status. The lawsuit challenged the BLNR’s decision to continue the revocable permits for calendar year 2015 and asked the court to void the revocable permits and to declare that the renewals were illegally issued without preparation of an environmental assessment ("EA"). In December 2015, the BLNR decided to reaffirm its prior decisions to keep the permits in holdover status. This decision by the BLNR was challenged by the three parties. In January 2016, the court ruled in the Initial Lawsuit that the renewals were not subject to the EA requirement, but that the BLNR lacked legal authority to keep the revocable permits in holdover status beyond one year (the "Initial Ruling"). The Initial Ruling was appealed to the Intermediate Court of Appeals ("ICA") of the State of Hawai‘i. In May 2016, while the appeal of the Initial Ruling was pending, the Hawai‘i State Legislature passed House Bill 2501, which specified that the BLNR has the legal authority to issue holdover revocable permits for the disposition of water rights for a period not to exceed three years. The governor signed this bill into law as Act 126 in June 2016. Pursuant to Act 126, the annual authorization of the existing holdover permits was sought and granted by the BLNR in December 2016, November 2017 and November 2018 for calendar years 2017, 2018, and 2019. No extension of Act 126 was approved by the Hawai‘i State Legislature in 2019. In June 2019, the ICA vacated the Initial Ruling, effectively reversing the determination that the BLNR lacked authority to keep the revocable permits in holdover status beyond one year (the "ICA Ruling"). The ICA remanded the case back to the trial court to determine whether the holdover status of the permits was both (a) "temporary" and (b) in the best interest of the State, as required by statute. The plaintiffs filed a motion with the ICA for reconsideration of its decision, which was denied on July 5, 2019. On September 30, 2019, the plaintiffs filed a request with the Supreme Court of Hawai‘i to review and reverse the ICA Ruling. On November 25, 2019, the Supreme Court of Hawai‘i granted the plaintiffs' request to review the ICA Ruling and, on May 5, 2020, oral argument was held. On October 11, 2019, the BLNR took up the renewal of all the existing water revocable permits in the state, acting under the ICA Ruling, and approved the continuation of the four East Maui water revocable permits for another one-year period through December 31, 2020. On November 13, 2020, the BLNR approved another renewal of such permits through December 31, 2021. On March 2, 2022, the Supreme Court of Hawai’i vacated the ICA’s ruling relating to the BLNR's decision to continue the revocable permits for the calendar year 2015, holding that Hawaii Revised Statutes Chapter 343 (the Hawaii Environmental Policy Act) did apply to the permits. The court remanded the matter back to the Circuit Court to determine if any exceptions would apply and, if not, how HRS Chapter 343 should be applied in light of the steps taken by A&B/EMI toward the long-term water lease. The Supreme Court of Hawai’i also determined that the BLNR had the statutory authority to continue the permits for more than one year, but required BLNR to make findings of fact and conclusions of law determining that the action would serve the best interests of the State. A&B/EMI will continue to defend against the plaintiffs’ claims on remand. In a separate matter, on December 7, 2018, a contested case request filed by the Sierra Club (contesting the BLNR's November 2018 approval of the 2019 revocable permits) was denied by the BLNR. On January 7, 2019, the Sierra Club filed a lawsuit in the circuit court of the first circuit in Hawai‘i against BLNR, A&B and EMI, seeking to invalidate the 2019 and 2020 holdovers of the revocable permits for, among other things, failure to perform an EA. The lawsuit also sought to enjoin A&B/EMI from diverting more than 25 million gallons a day until a permit or lease is properly issued by the BLNR, and for the imposition of certain conditions on the revocable permits by the BLNR. The count seeking to invalidate the revocable permits based on the failure to perform an EA was dismissed by the court, based on the ICA Ruling in the Initial Lawsuit. The Sierra Club’s lawsuit was amended to include a challenge to the BLNR’s renewal of the revocable permits for calendar year 2020. After a full trial on the merits held beginning in August of 2020, the court ruled, on April 6, 2021, against the Sierra Club on its lawsuit challenging the 2019 and 2020 revocable permits. On February 17, 2022, the Sierra Club filed its notice of appeal challenging the decision on the August 2020 trial. The court is separately considering a lawsuit filed by the Sierra Club appealing the BLNR’s decision to deny them a contested case hearing on the 2021 revocable permits, which were granted by the BLNR on or about November 13, 2020. On May 28, 2021, the court issued an interim decision that the Sierra Club’s due process rights were violated and ordered the BLNR to hold a contested case hearing on the 2021 permits, and that the permits should be vacated. On July 30, 2021, the court modified its ruling to say that the permits would not be invalidated, but left in place pending the outcome of the contested case hearing. The contested case hearing was held by the BLNR in December 2021 to address the continuation of the revocable permits for both calendar years 2021 and 2022 and a decision is pending. On December 27, 2021, the court, in the meantime, further modified its ruling to say that the permits will remain in place until the earlier of May 1, 2022, the date on which the BLNR renders a substantive decision on the continuation of the permits for calendar year 2022, or further order of the court. On April 26, 2022, the court granted an extension of the May 1, 2022 deadline to the earlier of June 15, 2022, or the date on which the BLNR renders a substantive decision on the continuation of the permits for calendar year 2022, or as may be further ordered by the court. On June 1, 2022, the court granted an extension of the June 15, 2022 deadline to the earlier of July 15, 2022 or the date on which the BLNR renders a substantive decision on the continuation of the permits for calendar year 2022 or as may be further ordered by the court. On June 30, 2022, the BLNR issued its final decision on the contested case hearing on the permits for calendar years 2021 and 2022, approving the continuation of the permits through the end of calendar year 2022. The Sierra Club has filed a notice of appeal of that decision to the Circuit Court of the First Circuit in Hawai‘i. The BLNR’s decision to continue the permits through the end of calendar year 2022 will stand unless overturned on appeal or the Sierra Club obtains a preliminary injunction to prevent the decision from remaining in place. In connection with A&B’s obligation to continue the existing process to secure a long-term water lease from the State, A&B and EMI will defend against the remaining claims made by the Sierra Club. The Company 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 the Company's consolidated financial statements as a whole. Further note that certain of the Company's properties and assets may become the subject of other types of claims and assessments at various times (e.g., environmental matters based on normal operations of such assets). Depending on the facts and circumstances surrounding such potential claims and assessments, the Company records an accrual if it is deemed probable that a liability has been incurred and the amount of loss can be reasonably estimated/valued as of the date of the financial statements. |
REVENUE AND CONTRACT BALANCES
REVENUE AND CONTRACT BALANCES | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CONTRACT BALANCES | REVENUE AND CONTRACT BALANCES The Company generates revenue through its Commercial Real Estate, Land Operations, and Materials & Construction segments. Through its Commercial Real Estate segment, the Company owns and operates a portfolio of commercial real estate properties and generates income (i.e., revenue) as a lessor through leases of such assets. Refer to Note 10 for further discussion of lessor income recognition. The Land Operations and Materials & Construction segments generate revenue from contracts with customers. The Company further disaggregates revenue from contracts with customers by revenue type when appropriate if the Company believes disaggregation best depicts how the nature, amount, timing, and uncertainty of the Company's revenue and cash flows are affected by economic factors. Revenue by type for the three and nine months ended September 30, 2022 and 2021, was as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: Commercial Real Estate $ 46.2 $ 44.0 $ 138.1 $ 127.2 Land Operations: Development sales revenue — — 6.3 11.2 Unimproved/other property sales revenue — 0.6 2.0 11.9 Other operating revenue 2.9 4.8 12.6 15.4 Land Operations 2.9 5.4 20.9 38.5 Materials & Construction 48.1 34.9 124.5 88.9 Total revenues $ 97.2 $ 84.3 $ 283.5 $ 254.6 Timing of revenue recognition may differ from the timing of invoicing to customers. Certain construction contracts include retainage provisions that are customary in the industry (i.e., are not for financing purposes) and are included in Accounts receivable and contracts retention, net. The balances billed but not paid by customers pursuant to these provisions generally become due upon completion and acceptance of the project work or products by the customers. Within Prepaid expenses and other assets, the Company records assets for "costs and estimated earnings in excess of billings on uncompleted contracts" which represent amounts earned and reimbursable under contracts, but have a conditional right for billing and payment, such as achievement of milestones or completion of the project. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Within Accrued and other liabilities, the Company records liabilities for "billings in excess of costs and estimated earnings on uncompleted contracts" which represent billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in millions): September 30, 2022 December 31, 2021 Accounts receivable $ 31.7 $ 25.1 Contracts retention 5.3 5.1 Allowances (credit losses and doubtful accounts) (1.1) (1.3) Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts $ 35.9 $ 28.9 Costs and estimated earnings in excess of billings on uncompleted contracts $ 13.8 $ 10.4 Billings in excess of costs and estimated earnings on uncompleted contracts $ 8.5 $ 6.8 Variable consideration 1 $ 62.0 $ 62.0 Other deferred revenue $ 9.3 $ 6.5 1 Variable consideration deferred as of the end of the periods related to amounts received in the sale of agricultural land on Maui in 2018 that, under revenue recognition guidance, could not be included in the transaction price. For the three and nine months ended September 30, 2022, the Company recognized revenue of approximately $0.5 million and $2.9 million, respectively, related to the Company's contract liabilities reported as of January 1, 2022. For the three and nine months ended September 30, 2021, the Company recognized revenue of approximately $0.7 million and $7.2 million, respectively, related to the Company's contract liabilities reported as of January 1, 2021. Regarding other information related to the Company's contracts with customers, the amount of revenue recognized from performance obligations satisfied in prior periods (e.g., due to changes in transaction price) was not material in any of the periods presented. Further, the total amount of the transaction price allocated to either wholly unsatisfied or partially satisfied performance obligations was $181.1 million and $140.5 million as of September 30, 2022 and December 31, 2021, respectively. Of the amount presented as of September 30, 2022, the Company expects to recognize as revenue approximately 80% to 85% of the remaining contract consideration allocated to either wholly unsatisfied or partially satisfied performance obligations over the next twelve months, with the remaining recognized thereafter. |
LEASES - THE COMPANY AS LESSOR
LEASES - THE COMPANY AS LESSOR | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES - THE COMPANY AS LESSOR | LEASES - THE COMPANY AS LESSOR The Company leases land and buildings to third parties under operating leases. Such activity is primarily composed of operating leases within its CRE segment. The historical cost of, and accumulated depreciation on, leased property as of September 30, 2022, and December 31, 2021, were as follows (in millions): September 30, 2022 December 31, 2021 Leased property - real estate $ 1,573.5 $ 1,563.2 Less: Accumulated depreciation (197.0) (182.2) Property under operating leases, net $ 1,376.5 $ 1,381.0 Total rental income (i.e., revenue) under these operating leases during the three and nine months ended September 30, 2022 and 2021, relating to lease payments and variable lease payments were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Lease payments $ 32.8 $ 30.7 $ 97.1 $ 89.6 Variable lease payments 14.0 14.8 45.3 41.3 Total rental income $ 46.8 $ 45.5 $ 142.4 $ 130.9 Contractual future lease payments to be received on non-cancelable operating leases as of September 30, 2022, were as follows (in millions): September 30, 2022 2022 $ 31.5 2023 120.7 2024 108.3 2025 91.8 2026 80.0 2027 69.6 Thereafter 542.6 Total future lease payments to be received $ 1,044.5 |
LEASES - THE COMPANY AS LESSEE
LEASES - THE COMPANY AS LESSEE | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES - THE COMPANY AS LESSEE | LEASES - THE COMPANY AS LESSEE There have been no material changes from the Company's leasing activities as a lessee described in Note 15 to the consolidated financial statements included in Item 8 of the Company's 2021 Form 10-K. The following table provides information about the Company's operating lease costs and finance lease costs recognized during the three and nine months ended September 30, 2022 and 2021, (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 1.6 $ 1.2 $ 4.2 $ 3.5 Finance lease cost $ 0.3 $ 0.5 $ 0.8 $ 1.1 |
LEASES - THE COMPANY AS LESSEE | LEASES - THE COMPANY AS LESSEE There have been no material changes from the Company's leasing activities as a lessee described in Note 15 to the consolidated financial statements included in Item 8 of the Company's 2021 Form 10-K. The following table provides information about the Company's operating lease costs and finance lease costs recognized during the three and nine months ended September 30, 2022 and 2021, (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 1.6 $ 1.2 $ 4.2 $ 3.5 Finance lease cost $ 0.3 $ 0.5 $ 0.8 $ 1.1 |
SHARE-BASED PAYMENT AWARDS
SHARE-BASED PAYMENT AWARDS | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENT AWARDS | SHARE-BASED PAYMENT AWARDS On April 26, 2022, stockholders approved the Alexander & Baldwin, Inc. 2022 Omnibus Incentive Plan ("2022 Plan"). The 2022 Plan serves as the successor to the 2012 Incentive Compensation Plan ("2012 Plan") and allows for the granting of stock options, stock appreciation rights, stock awards, restricted stock units, dividend equivalent rights, and other awards. The 2012 Plan allowed for the granting of stock options, restricted stock units, and common stock. All awards outstanding under the 2012 Plan remain subject to the terms of the 2012 Plan. Effective April 26, 2022, no additional shares will be issued under the 2012 Plan. The shares of common stock authorized to be issued under the 2022 Plan are to be drawn from the shares of the Company's authorized but unissued common stock or from shares of its common stock that the Company acquired, including shares purchased on the open market or private transactions. During the nine months ended September 30, 2022 and 2021, the Company granted approximately 306,300 and 376,600 of restricted stock unit awards, respectively. The weighted-average grant date fair value of the time-based and market-based performance share units granted under the plans during the nine months ended September 30, 2022 and 2021, was $25.56 and $16.63, respectively. 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: 2022 Grants 2021 Grants Volatility of A&B common stock 47.7% 47.2% Average volatility of peer companies 49.5% 49.6% Risk-free interest rate 1.4% 0.2% The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Share-based expense: Time-based and market-based restricted stock units $ 1.6 $ 1.6 $ 4.6 $ 4.4 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS On February 23, 2021, the Company’s Board of Directors approved a plan to effect the termination of the A&B Retirement Plan for Salaried Employees of Alexander & Baldwin, LLC and the Pension Plan for Employees of A&B Agricultural Companies (collectively, the “Defined Benefit Plans”), which became effective on May 31, 2021. The Company recognizes a gain/loss upon settlement of the Defined Benefit Plans when the following three criteria have been met: (1) an irrevocable action to terminate the Defined Benefit Plans has occurred, (2) the Company is relieved of the primary responsibility of the Defined Benefit Plans, and (3) the significant risks related to the obligations of the Defined Benefit Plans and the assets used to effect the settlement is eliminated for the Company. During the second quarter of 2022, the Company completed the termination of the Defined Benefit Plans. For the three and nine months ended September 30, 2022, the Company contributed cash of $0.9 million and $29.9 million, respectively. For the nine months ended September 30, 2022, the Company recorded a pre-tax settlement charge of $76.9 million within Pension termination in the condensed consolidated statements of operations in connection with the Defined Benefit Plans termination process, which represents the acceleration of deferred charges previously included within accumulated other comprehensive loss and the impact of remeasuring the plan assets and obligations at termination. In addition, the Company recorded an income tax benefit of $18.3 million for the nine months ended September 30, 2022, to reclassify the tax effects in accumulated other comprehensive loss upon completion of the termination of the Defined Benefit Plans. The Company did not record any pension termination charges or associated income tax benefit or expense during the three months ended September 30, 2022. Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2022 and 2021, are shown below (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service cost $ 0.1 $ 0.4 $ 1.5 $ 1.0 Interest cost — 1.5 0.9 4.1 Expected return on plan assets — (1.3) (2.5) (3.8) Amortization of net loss 0.1 0.5 1.9 1.9 Amortization of prior service credit — — 0.1 — Pension termination — — 76.9 — Net periodic benefit cost $ 0.2 $ 1.1 $ 78.8 $ 3.2 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company has been organized and operates in a manner that enables it to qualify, and believes it will continue to qualify, as a REIT for federal income tax purposes. The Company’s effective tax rate for the nine months ended September 30, 2022, differed from the effective tax rate for the same period in 2021, due primarily to the 2022 tax benefit recognized on the termination of the Company’s Defined Benefit Plans. As of September 30, 2022, tax years 2018 and later are open to audit by the tax authorities. The Company believes the result of any potential audits will not have a material adverse effect on its results of operations, financial condition, or liquidity. |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE ("EPS") | EARNINGS PER SHARE ("EPS")Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards as well as adjusted by the number of additional shares, if any, that would have been outstanding had the potentially dilutive common shares been issued. The following table provides a reconciliation of income (loss) from continuing operations to net income (loss) from continuing operations available to A&B common shareholders and net income (loss) available to A&B common shareholders (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Income (loss) from continuing operations $ 6.8 $ 7.1 $ 22.3 $ 30.1 Exclude: (Income) loss attributable to noncontrolling interest (0.4) (0.1) (1.2) (0.3) Income (loss) from continuing operations attributable to A&B shareholders 6.4 7.0 21.1 29.8 Distributions and allocations to participating securities (0.1) (0.1) (0.2) (0.1) Income (loss) from continuing operations available to A&B common shareholders 6.3 6.9 20.9 29.7 Income (loss) from discontinued operations available to A&B common shareholders — (0.6) (0.1) (0.7) Net income (loss) available to A&B common shareholders $ 6.3 $ 6.3 $ 20.8 $ 29.0 The number of shares used to compute basic and diluted earnings per share is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Denominator for basic EPS - weighted average shares outstanding 72.7 72.5 72.7 72.5 Effect of dilutive securities: Stock options and restricted stock unit awards 0.1 0.2 0.1 0.1 Denominator for diluted EPS - weighted average shares outstanding 72.8 72.7 72.8 72.6 The number of anti-dilutive securities, excluded from the calculation of diluted earnings per common share, consisted of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Number of anti-dilutive securities 0.1 — 0.1 — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) principally includes amortization of deferred pension and post-retirement costs. The components of Accumulated other comprehensive loss, net of taxes, were as follows as of September 30, 2022, and December 31, 2021, (in millions): September 30, 2022 December 31, 2021 Employee benefit plans: Pension plans $ — $ (74.6) Post-retirement plans — (2.6) Non-qualified benefit plans (0.7) (0.7) Total employee benefit plans (0.7) (77.9) Interest rate swap 5.2 (2.8) Accumulated other comprehensive income (loss) $ 4.5 $ (80.7) The changes in Accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2022, were as follows (in millions, net of taxes): Employee Benefit Plans Interest Rate Swap Total Balance, January 1, 2022 $ (77.9) $ (2.8) $ (80.7) Other comprehensive income (loss) before reclassifications 16.6 8.0 24.6 Amounts reclassified from accumulated other comprehensive income (loss) 1 78.9 — 78.9 Taxes on other comprehensive income (loss) (18.3) — (18.3) Other comprehensive income (loss), net of taxes 77.2 8.0 85.2 Balance, September 30, 2022 $ (0.7) $ 5.2 $ 4.5 1 Amounts reclassified from Accumulated other comprehensive income related to interest rate swap settlements are presented as an adjustment to Interest expense in the condensed consolidated statements of operations. Amounts reclassified from Accumulated other comprehensive income related to employee benefit plan items are presented as part of Interest and other income (expense), net and Pension termination in the condensed consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Construction Contracts and Material Sales. The Company entered into contracts in the ordinary course of business, as a supplier, with affiliate entities that require accounting under the equity method due to the Company's financial interests in such entities (refer to Note 3) and also with affiliate parties that are members in entities in which the Company also is a member and holds a controlling financial interest. Related to the periods during which the relationship existed, revenues earned from transactions with such affiliates were $9.0 million and $2.8 million for the three months ended September 30, 2022 and 2021, respectively, and $12.9 million and $7.5 million for the nine months ended September 30, 2022 and 2021, respectively. Expenses recognized from transactions with such affiliates were $1.6 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $4.0 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively. Receivables from these affiliates were $4.5 million and $1.1 million as of September 30, 2022 and December 31, 2021, respectively. Amounts due to these affiliates were $0.7 million and $0.3 million as of September 30, 2022 and December 31, 2021, respectively. Land Operations. The Company provided materials and services to certain unconsolidated investments in affiliates and recognized interest earned on notes receivable from such related parties. Revenues earned from transactions with these affiliates were zero and $0.3 million for the three months ended September 30, 2022 and 2021, respectively. During the nine months ended September 30, 2022 and 2021, revenues earned from transactions with these affiliates were $0.2 million and $1.8 million, respectively. There were no receivables from service arrangements or notes receivable with these affiliates as of September 30, 2022 and December 31, 2021. |
SEGMENT RESULTS
SEGMENT RESULTS | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | SEGMENT RESULTS Operating segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (its Chief Executive Officer) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. As noted above, the Company operates and reports on three segments: Commercial Real Estate; Land Operations; and Materials & Construction. Reportable segment information for the three and nine months ended September 30, 2022 and 2021, is summarized below (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating Revenue: Commercial Real Estate $ 46.2 $ 44.0 $ 138.1 $ 127.2 Land Operations 2.9 5.4 20.9 38.5 Materials & Construction 48.1 34.9 124.5 88.9 Total operating revenue 97.2 84.3 283.5 254.6 Operating Profit (Loss): Commercial Real Estate 1 20.3 19.0 60.3 53.0 Land Operations 2,3 (2.2) 1.7 (10.0) 22.3 Materials & Construction 1.8 (0.3) 4.4 (6.2) Total operating profit (loss) 19.9 20.4 54.7 69.1 Gain (loss) on disposal of commercial real estate properties, net — — — 0.2 Interest expense (5.5) (6.5) (16.8) (20.2) Corporate and other expense 4 (7.6) (6.8) (33.7) (18.9) Income (Loss) from Continuing Operations Before Income Taxes $ 6.8 $ 7.1 $ 4.2 $ 30.2 1 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the consolidated results of operations and pension termination charges of zero and $0.7 million for the three and nine months ended September 30, 2022, respectively. 2 Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various equity method investments (primarily real estate joint ventures). 3 Land Operations segment operating profit (loss) includes pension termination charges of zero and $62.2 million for the three and nine months ended September 30, 2022, respectively, related to the termination of the defined benefit plans, as well as a gain on sale of non-core assets, net, of $54.0 million for the nine months ended September 30, 2022, related to the McBryde transaction (Note 19 ) . 4 Corporate and other expense includes pension termination charges of zero and $14.0 million for the three and nine months ended September 30, 2022, respectively. |
SALE OF BUSINESS
SALE OF BUSINESS | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SALE OF BUSINESS | SALE OF BUSINESS On May 31, 2022, the Company entered into Purchase and Sale Agreements (collectively, the "PSA") with Brue Baukol Capital Partners (the "Buyer"), an unrelated third party, which resulted in the sale of approximately 18,900 acres of primarily conservation and agricultural land on the island of Kauai and 100% of the Company's ownership interest in McBryde Resources, Inc., the operator of hydroelectric power facilities on Kauai, in exchange for cash proceeds and escrow receivables of $73.9 million and $0.9 million, respectively. The sale closed on June 30, 2022. In connection with the sale, the Company recognized a net gain of $54.0 million for the nine months ended September 30, 2022, which is presented within Gain (loss) on disposal of non-core assets, net in the accompanying condensed consolidated statement of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [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, 2021 and 2020, and the related consolidated statements of operations, comprehensive income (loss), cash flows, and equity and redeemable noncontrolling interest for each of the three years ended December 31, 2021, 2020, and 2019, respectively, and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2021 ("2021 Form 10-K"), and other subsequent filings with the U.S. Securities and Exchange Commission ("SEC"). |
Rounding | Rounding: Amounts in the condensed consolidated financial statements and notes are rounded to the nearest tenth of a million. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may result in differences. |
Recently issued accounts pronouncements | Recently issued accounting pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform , establishing ASC Topic 848, and amended the standard thereafter through ASU No. 2021-01 (collectively, "ASC 848"). ASC 848 provides optional practical expedients and exceptions related to the impacts of reference rate reform that affect certain debt, leases, derivatives and other contracts if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Reference rate reform has not had a material impact on any of the Company's existing contracts. Therefore, the Company has not elected to apply any of the optional practical expedients and exceptions under ASC 848 as of the current date. The Company will assess future changes in its contracts and the impact of electing to apply the optional practical expedients and exceptions provided by ASC 848 as they occur, but expects their application will not have a material effect on its financial position or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Interest and Other Income (Expense), Net | Interest and other income (expense), net for the three and nine months ended September 30, 2022 and 2021, included the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Interest income $ — $ 0.2 $ 0.2 $ 0.8 Pension and post-retirement benefit (expense) (0.1) (0.7) (0.6) (2.1) Other income (expense), net — 0.3 1.1 0.3 Interest and other income (expense), net $ (0.1) $ (0.2) $ 0.7 $ (1.0) |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Operating results presented in the Company's condensed consolidated financial statements include the Company's proportionate share of net income (loss) from its equity method investments. Summarized financial information of entities accounted for by the equity method on a combined basis for the three and nine months ended September 30, 2022 and 2021, is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues $ 46.8 $ 60.6 $ 120.9 $ 188.9 Operating costs and expenses 41.4 58.3 111.6 167.2 Gross Profit (Loss) $ 5.4 $ 2.3 $ 9.3 $ 21.7 Income (Loss) from Continuing Operations 1 $ 1.2 $ 1.0 $ (3.5) $ 10.0 Net Income (Loss) 1 $ 1.3 $ (0.5) $ 2.0 $ 9.1 1 Includes earnings from equity method investments held by the investee. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are stated at the lower of cost (principally first-in, first-out basis) or net realizable value. Inventories as of September 30, 2022, and December 31, 2021, were as follows (in millions): September 30, December 31, 2022 2021 Asphalt $ 9.0 $ 4.7 Processed rock and sand 12.5 8.1 Retail merchandise 2.4 2.1 Parts, materials and supplies inventories 6.2 5.4 Total $ 30.1 $ 20.3 |
NOTES PAYABLE AND OTHER DEBT (T
NOTES PAYABLE AND OTHER DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Other Debt | As of September 30, 2022, and December 31, 2021, notes payable and other debt consisted of the following (dollars in millions): Interest Rate (%) Maturity Date Principal Outstanding September 30, 2022 December 31, 2021 Secured: Heavy Equipment Financing (1) (1) $ 1.3 $ 1.9 Laulani Village 3.93% 2024 59.4 60.2 Pearl Highlands 4.15% 2024 77.9 79.4 Photovoltaic Financing (2) 2027 2.6 — Manoa Marketplace (3) 2029 54.9 56.3 Subtotal $ 196.1 $ 197.8 Unsecured: Series A Note 5.53% 2024 $ 14.2 $ 21.3 Series J Note 4.66% 2025 10.0 10.0 Series B Note 5.55% 2026 36.0 45.0 Series C Note 5.56% 2026 11.0 13.0 Series F Note 4.35% 2026 15.2 15.2 Series H Note 4.04% 2026 50.0 50.0 Series K Note 4.81% 2027 34.5 34.5 Series G Note 3.88% 2027 28.1 28.1 Series L Note 4.89% 2028 18.0 18.0 Series I Note 4.16% 2028 25.0 25.0 Term Loan 5 4.30% 2029 25.0 25.0 Subtotal $ 267.0 $ 285.1 Revolving Credit Facilities: GLP Asphalt Wells Fargo revolving credit facility (4) 2022 $ — $ — GLP Asphalt FHB revolving credit facility (5) 2024 6.8 — A&B Revolver (6) 2025 — 50.0 Subtotal $ 6.8 $ 50.0 Total debt (contractual) $ 469.9 $ 532.9 Unamortized debt issuance costs (0.2) (0.2) Total debt (carrying value) $ 469.7 $ 532.7 (1) Financing leases have a weighted average stated interest rate of approximately 2.90% and stated maturity dates ranging from 2022 to 2027. (2) Financing lease has a discount rate of 4.14%. (3) Loan has a stated interest rate of LIBOR plus 1.35%, but is swapped through maturity to a 3.14% fixed rate. (4) Loan had a stated interest rate of SOFR plus 1.75%. Credit agreement terminated on June 15, 2022. (5) Loan has a stated interest rate of BSBY plus 1.25%. (6) Loan has a stated interest rate of LIBOR plus 1.05% based on a pricing grid. $50.0 million was swapped through June 2022 to a 2.40% fixed rate. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap | As of September 30, 2022, the Company had one interest rate swap agreement designated as a cash flow hedge, while as of December 31, 2021, there were two such swaps, whose key terms are as follows (dollars in millions): Effective Maturity Fixed Interest Notional Amount at Asset (Liability) Fair Value at Date Date Rate September 30, 2022 September 30, 2022 December 31, 2021 4/7/2016 8/1/2029 3.14% $ 54.9 $ 5.9 $ (1.7) 2/13/2020 2/27/2023 (1) $ — $ — $ (0.5) (1) $50.0 million in notional interest rate swap was terminated on June 30, 2022, resulting in a realized gain of $0.5 million included within Interest and other income (expense), net . |
Schedule of Derivative Instruments in Consolidated Statements of Comprehensive Income (Loss) | The following table represents the pre-tax effect of the derivative instruments in the Company's condensed consolidated statement of comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021, (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Derivatives in Designated Cash Flow Hedging Relationships: Amount of gain (loss) recognized in OCI on derivatives $ 2.6 $ 0.2 $ 8.0 $ 1.9 Impact of reclassification adjustment to interest expense included in Net Income (Loss) $ (0.1) $ 0.4 $ 0.5 $ 1.2 Realized interest rate hedging gain (loss) $ — $ — $ (0.5) $ — |
REVENUE AND CONTRACT BALANCES (
REVENUE AND CONTRACT BALANCES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue by type for the three and nine months ended September 30, 2022 and 2021, was as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: Commercial Real Estate $ 46.2 $ 44.0 $ 138.1 $ 127.2 Land Operations: Development sales revenue — — 6.3 11.2 Unimproved/other property sales revenue — 0.6 2.0 11.9 Other operating revenue 2.9 4.8 12.6 15.4 Land Operations 2.9 5.4 20.9 38.5 Materials & Construction 48.1 34.9 124.5 88.9 Total revenues $ 97.2 $ 84.3 $ 283.5 $ 254.6 |
Schedule of Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in millions): September 30, 2022 December 31, 2021 Accounts receivable $ 31.7 $ 25.1 Contracts retention 5.3 5.1 Allowances (credit losses and doubtful accounts) (1.1) (1.3) Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts $ 35.9 $ 28.9 Costs and estimated earnings in excess of billings on uncompleted contracts $ 13.8 $ 10.4 Billings in excess of costs and estimated earnings on uncompleted contracts $ 8.5 $ 6.8 Variable consideration 1 $ 62.0 $ 62.0 Other deferred revenue $ 9.3 $ 6.5 1 Variable consideration deferred as of the end of the periods related to amounts received in the sale of agricultural land on Maui in 2018 that, under revenue recognition guidance, could not be included in the transaction price. |
LEASES - THE COMPANY AS LESSOR
LEASES - THE COMPANY AS LESSOR (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Historical Cost, and Accumulated Depreciation on Leased Property | The historical cost of, and accumulated depreciation on, leased property as of September 30, 2022, and December 31, 2021, were as follows (in millions): September 30, 2022 December 31, 2021 Leased property - real estate $ 1,573.5 $ 1,563.2 Less: Accumulated depreciation (197.0) (182.2) Property under operating leases, net $ 1,376.5 $ 1,381.0 |
Schedule of Rental Income Under Non-cancelable Operating Leases | Total rental income (i.e., revenue) under these operating leases during the three and nine months ended September 30, 2022 and 2021, relating to lease payments and variable lease payments were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Lease payments $ 32.8 $ 30.7 $ 97.1 $ 89.6 Variable lease payments 14.0 14.8 45.3 41.3 Total rental income $ 46.8 $ 45.5 $ 142.4 $ 130.9 |
Schedule of Future Minimum Rentals on Non-cancelable Operating Leases | Contractual future lease payments to be received on non-cancelable operating leases as of September 30, 2022, were as follows (in millions): September 30, 2022 2022 $ 31.5 2023 120.7 2024 108.3 2025 91.8 2026 80.0 2027 69.6 Thereafter 542.6 Total future lease payments to be received $ 1,044.5 |
LEASES - THE COMPANY AS LESSEE
LEASES - THE COMPANY AS LESSEE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost and Other Amounts Relating to Finance and Operating Leases | The following table provides information about the Company's operating lease costs and finance lease costs recognized during the three and nine months ended September 30, 2022 and 2021, (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 1.6 $ 1.2 $ 4.2 $ 3.5 Finance lease cost $ 0.3 $ 0.5 $ 0.8 $ 1.1 |
SHARE-BASED PAYMENT AWARDS (Tab
SHARE-BASED PAYMENT AWARDS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
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: 2022 Grants 2021 Grants Volatility of A&B common stock 47.7% 47.2% Average volatility of peer companies 49.5% 49.6% Risk-free interest rate 1.4% 0.2% |
Summary of Compensation Cost related to Share-based Payments | The Company recognizes compensation cost net of actual forfeitures of time-based or market-based awards. A summary of compensation cost related to share-based payments is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Share-based expense: Time-based and market-based restricted stock units $ 1.6 $ 1.6 $ 4.6 $ 4.4 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss | Components of the net periodic benefit cost for the Company's pension and post-retirement plans for the three and nine months ended September 30, 2022 and 2021, are shown below (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service cost $ 0.1 $ 0.4 $ 1.5 $ 1.0 Interest cost — 1.5 0.9 4.1 Expected return on plan assets — (1.3) (2.5) (3.8) Amortization of net loss 0.1 0.5 1.9 1.9 Amortization of prior service credit — — 0.1 — Pension termination — — 76.9 — Net periodic benefit cost $ 0.2 $ 1.1 $ 78.8 $ 3.2 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Income and Computation of Earnings per Share | The following table provides a reconciliation of income (loss) from continuing operations to net income (loss) from continuing operations available to A&B common shareholders and net income (loss) available to A&B common shareholders (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Income (loss) from continuing operations $ 6.8 $ 7.1 $ 22.3 $ 30.1 Exclude: (Income) loss attributable to noncontrolling interest (0.4) (0.1) (1.2) (0.3) Income (loss) from continuing operations attributable to A&B shareholders 6.4 7.0 21.1 29.8 Distributions and allocations to participating securities (0.1) (0.1) (0.2) (0.1) Income (loss) from continuing operations available to A&B common shareholders 6.3 6.9 20.9 29.7 Income (loss) from discontinued operations available to A&B common shareholders — (0.6) (0.1) (0.7) Net income (loss) available to A&B common shareholders $ 6.3 $ 6.3 $ 20.8 $ 29.0 The number of shares used to compute basic and diluted earnings per share is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Denominator for basic EPS - weighted average shares outstanding 72.7 72.5 72.7 72.5 Effect of dilutive securities: Stock options and restricted stock unit awards 0.1 0.2 0.1 0.1 Denominator for diluted EPS - weighted average shares outstanding 72.8 72.7 72.8 72.6 |
Schedule of Antidilutive Securities Outstanding | The number of anti-dilutive securities, excluded from the calculation of diluted earnings per common share, consisted of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Number of anti-dilutive securities 0.1 — 0.1 — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of Accumulated other comprehensive loss, net of taxes, were as follows as of September 30, 2022, and December 31, 2021, (in millions): September 30, 2022 December 31, 2021 Employee benefit plans: Pension plans $ — $ (74.6) Post-retirement plans — (2.6) Non-qualified benefit plans (0.7) (0.7) Total employee benefit plans (0.7) (77.9) Interest rate swap 5.2 (2.8) Accumulated other comprehensive income (loss) $ 4.5 $ (80.7) The changes in Accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2022, were as follows (in millions, net of taxes): Employee Benefit Plans Interest Rate Swap Total Balance, January 1, 2022 $ (77.9) $ (2.8) $ (80.7) Other comprehensive income (loss) before reclassifications 16.6 8.0 24.6 Amounts reclassified from accumulated other comprehensive income (loss) 1 78.9 — 78.9 Taxes on other comprehensive income (loss) (18.3) — (18.3) Other comprehensive income (loss), net of taxes 77.2 8.0 85.2 Balance, September 30, 2022 $ (0.7) $ 5.2 $ 4.5 1 Amounts reclassified from Accumulated other comprehensive income related to interest rate swap settlements are presented as an adjustment to Interest expense in the condensed consolidated statements of operations. Amounts reclassified from Accumulated other comprehensive income related to employee benefit plan items are presented as part of Interest and other income (expense), net and Pension termination in the condensed consolidated statements of operations. |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | Reportable segment information for the three and nine months ended September 30, 2022 and 2021, is summarized below (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating Revenue: Commercial Real Estate $ 46.2 $ 44.0 $ 138.1 $ 127.2 Land Operations 2.9 5.4 20.9 38.5 Materials & Construction 48.1 34.9 124.5 88.9 Total operating revenue 97.2 84.3 283.5 254.6 Operating Profit (Loss): Commercial Real Estate 1 20.3 19.0 60.3 53.0 Land Operations 2,3 (2.2) 1.7 (10.0) 22.3 Materials & Construction 1.8 (0.3) 4.4 (6.2) Total operating profit (loss) 19.9 20.4 54.7 69.1 Gain (loss) on disposal of commercial real estate properties, net — — — 0.2 Interest expense (5.5) (6.5) (16.8) (20.2) Corporate and other expense 4 (7.6) (6.8) (33.7) (18.9) Income (Loss) from Continuing Operations Before Income Taxes $ 6.8 $ 7.1 $ 4.2 $ 30.2 1 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the consolidated results of operations and pension termination charges of zero and $0.7 million for the three and nine months ended September 30, 2022, respectively. 2 Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various equity method investments (primarily real estate joint ventures). 3 Land Operations segment operating profit (loss) includes pension termination charges of zero and $62.2 million for the three and nine months ended September 30, 2022, respectively, related to the termination of the defined benefit plans, as well as a gain on sale of non-core assets, net, of $54.0 million for the nine months ended September 30, 2022, related to the McBryde transaction (Note 19 ) . 4 Corporate and other expense includes pension termination charges of zero and $14.0 million for the three and nine months ended September 30, 2022, respectively. |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION (Details) ft² in Millions | 9 Months Ended |
Sep. 30, 2022 ft² a property segment | |
Property, Plant and Equipment [Line Items] | |
Number of operating segments | segment | 3 |
Gross leasable area (in sqft) | ft² | 3.9 |
Area of ground leases owned (acres) | a | 140.8 |
Retail centers | |
Property, Plant and Equipment [Line Items] | |
Number of properties | 22 |
Industrial assets | |
Property, Plant and Equipment [Line Items] | |
Number of properties | 12 |
Office properties | |
Property, Plant and Equipment [Line Items] | |
Number of properties | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Interest and Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Interest income | $ 0 | $ 0.2 | $ 0.2 | $ 0.8 |
Pension and post-retirement benefit (expense) | (0.1) | (0.7) | (0.6) | (2.1) |
Other income (expense), net | 0 | 0.3 | 1.1 | 0.3 |
Interest and other income (expense), net | $ (0.1) | $ (0.2) | $ 0.7 | $ (1) |
INVESTMENTS IN AFFILIATES - Sum
INVESTMENTS IN AFFILIATES - Summary of Financial Information for Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement | ||||
Revenues | $ 97.2 | $ 84.3 | $ 283.5 | $ 254.6 |
Operating costs and expenses | 85.2 | 73.2 | 242.1 | 215.8 |
Income (Loss) from Continuing Operations | 6.8 | 7.1 | 4.2 | 30.2 |
Net Income (Loss) | 6.4 | 6.4 | 21 | 29.1 |
Equity Method Investments | ||||
Income Statement | ||||
Revenues | 46.8 | 60.6 | 120.9 | 188.9 |
Operating costs and expenses | 41.4 | 58.3 | 111.6 | 167.2 |
Gross Profit (Loss) | 5.4 | 2.3 | 9.3 | 21.7 |
Income (Loss) from Continuing Operations | 1.2 | 1 | (3.5) | 10 |
Net Income (Loss) | $ 1.3 | $ (0.5) | $ 2 | $ 9.1 |
INVESTMENTS IN AFFILIATES - Nar
INVESTMENTS IN AFFILIATES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Income (loss) related to joint ventures | $ 0.4 | $ 2.7 | $ 1.8 | $ 12.2 |
Dividends and distributions from unconsolidated affiliates | $ 0.7 | $ 2.1 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Inventories | $ 30.1 | $ 20.3 |
Asphalt | ||
Inventory [Line Items] | ||
Inventories | 9 | 4.7 |
Processed rock and sand | ||
Inventory [Line Items] | ||
Inventories | 12.5 | 8.1 |
Retail merchandise | ||
Inventory [Line Items] | ||
Inventories | 2.4 | 2.1 |
Parts, materials and supplies inventories | ||
Inventory [Line Items] | ||
Inventories | $ 6.2 | $ 5.4 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term notes receivable | $ 1.9 | $ 8.4 |
Company's debt | 469.7 | 532.7 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Company's debt | $ 442.3 | $ 554.3 |
NOTES PAYABLE AND OTHER DEBT -
NOTES PAYABLE AND OTHER DEBT - Schedule of Notes Payable and Long-term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total debt (contractual) | $ 469.9 | $ 532.9 |
Unamortized debt issuance costs | (0.2) | (0.2) |
Total debt (carrying value) | 469.7 | 532.7 |
Secured: | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | 196.1 | 197.8 |
Secured: | Heavy Equipment Financing | ||
Debt Instrument [Line Items] | ||
Financing leases | $ 1.3 | 1.9 |
Weighted average stated interest rate (percent) | 2.90% | |
Secured: | Laulani Village | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.93% | |
Total debt (contractual) | $ 59.4 | 60.2 |
Secured: | Pearl Highlands | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.15% | |
Total debt (contractual) | $ 77.9 | 79.4 |
Secured: | Photovoltaic Financing | ||
Debt Instrument [Line Items] | ||
Financing leases | $ 2.6 | 0 |
Lessee, finance lease, discount rate | 4.14% | |
Secured: | Manoa Marketplace | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | $ 54.9 | 56.3 |
Secured: | Manoa Marketplace | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.35% | |
Fixed interest rate | 3.14% | |
Unsecured: | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | $ 267 | 285.1 |
Unsecured: | Series A Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.53% | |
Total debt (contractual) | $ 14.2 | 21.3 |
Unsecured: | Series J Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.66% | |
Total debt (contractual) | $ 10 | 10 |
Unsecured: | Series B Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.55% | |
Total debt (contractual) | $ 36 | 45 |
Unsecured: | Series C Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.56% | |
Total debt (contractual) | $ 11 | 13 |
Unsecured: | Series F Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.35% | |
Total debt (contractual) | $ 15.2 | 15.2 |
Unsecured: | Series H Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.04% | |
Total debt (contractual) | $ 50 | 50 |
Unsecured: | Series K Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.81% | |
Total debt (contractual) | $ 34.5 | 34.5 |
Unsecured: | Series G Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.88% | |
Total debt (contractual) | $ 28.1 | 28.1 |
Unsecured: | Series L Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.89% | |
Total debt (contractual) | $ 18 | 18 |
Unsecured: | Series I Note | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.16% | |
Total debt (contractual) | $ 25 | 25 |
Unsecured: | Term Loan 5 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.30% | |
Total debt (contractual) | $ 25 | 25 |
Revolving Credit Facilities: | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | 6.8 | 50 |
Revolving Credit Facilities: | GLP Asphalt Wells Fargo revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | $ 0 | 0 |
Revolving Credit Facilities: | GLP Asphalt Wells Fargo revolving credit facility | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Revolving Credit Facilities: | GLP Asphalt FHB revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | $ 6.8 | 0 |
Revolving Credit Facilities: | GLP Asphalt FHB revolving credit facility | BSBY | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Revolving Credit Facilities: | A&B Revolver | ||
Debt Instrument [Line Items] | ||
Total debt (contractual) | $ 0 | $ 50 |
Revolving Credit Facilities: | A&B Revolver | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.05% | |
Fixed interest rate | 2.40% | |
Notional amount | $ 50 |
NOTES PAYABLE AND OTHER DEBT _2
NOTES PAYABLE AND OTHER DEBT - Narrative (Details) - Revolving Credit Facilities: - GLP Asphalt FHB revolving credit facility - USD ($) $ in Millions | Jun. 15, 2022 | Apr. 29, 2022 |
Debt Instrument [Line Items] | ||
Extending maturity period | 45 days | |
Borrowing capacity | $ 20 | |
Debt instrument, term | 2 years |
DERIVATIVE INSTRUMENTS - Cash F
DERIVATIVE INSTRUMENTS - Cash Flow Hedges of Interest Rate Swaps (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) swap_agreement | Dec. 31, 2021 USD ($) swap_agreement | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate swap agreements | swap_agreement | 1 | 2 |
Notional amount | $ 50 | |
Realized gain | $ 0.5 | |
Accrued And Other Liabilities | Interest Rate Swap, Effective 04/07/2016 | ||
Derivative [Line Items] | ||
Fixed interest rate | 3.14% | |
Notional amount | $ 54.9 | |
Interest rate derivative, at fair value | 5.9 | |
Fair value of interest rate swap liability | $ (1.7) | |
Accrued And Other Liabilities | Interest Rate Swap, Effective 02/13/2020 | ||
Derivative [Line Items] | ||
Notional amount | 0 | |
Interest rate derivative, at fair value | $ 0 | |
Fair value of interest rate swap liability | $ (0.5) |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivative Instruments in Designated Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives | $ 2.6 | $ 0.2 | $ 8 | $ 1.9 |
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | 0.1 | (0.4) | (0.5) | (1.2) |
Realized interest rate hedging gain (loss) | 0 | 0 | (0.5) | 0 |
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Net gains (losses) on derivative instruments expected to be reclassified from accumulated other comprehensive income in next 12 months | 0.3 | |||
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) recognized in OCI on derivatives | 2.6 | 0.2 | 8 | 1.9 |
Impact of reclassification adjustment to interest expense included in Net Income (Loss) | (0.1) | 0.4 | 0.5 | 1.2 |
Realized interest rate hedging gain (loss) | $ 0 | $ 0 | $ (0.5) | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - (Details) a in Thousands, gal in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | ||||||
Nov. 13, 2020 license | Oct. 11, 2019 license | Jan. 07, 2019 gal | Apr. 10, 2015 plaintiff | May 31, 2016 | Feb. 01, 2019 | Sep. 30, 2022 USD ($) arrangement | Dec. 31, 2018 a license | |
East Maui Irrigation Company, LLC (EMI) | ||||||||
Loss Contingencies [Line Items] | ||||||||
Interest held in EMI | 50% | |||||||
East Maui Irrigation Company, LLC (EMI) | Maui | ||||||||
Loss Contingencies [Line Items] | ||||||||
Area of land sold (in acres) | a | 41 | |||||||
East Maui Irrigation Company, LLC (EMI) | East Maui | ||||||||
Loss Contingencies [Line Items] | ||||||||
Watershed lands owned (in acres) | a | 16 | |||||||
State of Hawai'i | East Maui | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of water licenses held and extended as revocable permits | license | 4 | |||||||
Additional watershed lands accessible by licenses (in acres) | a | 30 | |||||||
Financial Guarantee | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of arrangement with third party lenders | arrangement | 1 | |||||||
Guarantor obligations, current carrying value | $ 0.5 | |||||||
Bid, Performance and Payment Bonds and Commercial Bonds | ||||||||
Loss Contingencies [Line Items] | ||||||||
Possible administrative penalty | 332.3 | |||||||
Estimated remaining exposure | 128.1 | |||||||
Performance Bond | ||||||||
Loss Contingencies [Line Items] | ||||||||
Possible administrative penalty | 313.7 | |||||||
Long Term Water Lease Request | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of water licenses held and extended as revocable permits | license | 4 | 4 | ||||||
Number of parties filed lawsuit | plaintiff | 3 | |||||||
Duration of revocable permits for disposition of water rights | 1 year | 1 year | 3 years | |||||
Sierra Club Lawsuit Against BLNR, A&B, and EMI | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of gallons per day sought to be enjoined (in gallons) | gal | 25 | |||||||
Letters of Credit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Standby letters of credit outstanding | $ 1.1 |
REVENUE AND CONTRACT BALANCES_2
REVENUE AND CONTRACT BALANCES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 97.2 | $ 84.3 | $ 283.5 | $ 254.6 |
Commercial Real Estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Commercial Real Estate | 46.2 | 44 | 138.1 | 127.2 |
Land Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2.9 | 5.4 | 20.9 | 38.5 |
Land Operations | Development sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 6.3 | 11.2 |
Land Operations | Unimproved/other property sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0.6 | 2 | 11.9 |
Land Operations | Other operating revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2.9 | 4.8 | 12.6 | 15.4 |
Materials & Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 48.1 | $ 34.9 | $ 124.5 | $ 88.9 |
REVENUE AND CONTRACT BALANCES -
REVENUE AND CONTRACT BALANCES - Schedule of Contract Balances (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 31.7 | $ 25.1 |
Contracts retention | 5.3 | 5.1 |
Allowances (credit losses and doubtful accounts) | (1.1) | (1.3) |
Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts | 35.9 | 28.9 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 13.8 | 10.4 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 8.5 | 6.8 |
Variable consideration | 62 | 62 |
Other deferred revenue | $ 9.3 | $ 6.5 |
REVENUE AND CONTRACT BALANCES_3
REVENUE AND CONTRACT BALANCES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue recognized related to contract liabilities | $ 0.5 | $ 0.7 | $ 2.9 | $ 7.2 | |
Remaining performance obligation | $ 181.1 | $ 181.1 | $ 140.5 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Performance obligation satisfaction period | 3 months | 3 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Performance obligation satisfaction period | |||||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Percentage of remaining obligation expected to be satisfied | 80% | 80% | |||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Percentage of remaining obligation expected to be satisfied | 85% | 85% |
LEASES - THE COMPANY AS LESSO_2
LEASES - THE COMPANY AS LESSOR - Summary of Historical Cost and Accumulated Depreciation of Leased Property (Details) - Leased property - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Lessor, Lease, Description [Line Items] | ||
Leased property - real estate | $ 1,573.5 | $ 1,563.2 |
Less: Accumulated depreciation | (197) | (182.2) |
Property under operating leases, net | $ 1,376.5 | $ 1,381 |
LEASES - THE COMPANY AS LESSO_3
LEASES - THE COMPANY AS LESSOR - Schedule of Total Rental Income Under Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Lease payments | $ 32.8 | $ 30.7 | $ 97.1 | $ 89.6 |
Variable lease payments | 14 | 14.8 | 45.3 | 41.3 |
Total rental income | $ 46.8 | $ 45.5 | $ 142.4 | $ 130.9 |
LEASES - THE COMPANY AS LESSO_4
LEASES - THE COMPANY AS LESSOR - Future Minimum Rentals on Non-cancelable Operating Leases as Lessor (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Future minimum rentals on non-cancelable leases | |
2022 | $ 31.5 |
2023 | 120.7 |
2024 | 108.3 |
2025 | 91.8 |
2026 | 80 |
2027 | 69.6 |
Thereafter | 542.6 |
Total future lease payments to be received | $ 1,044.5 |
LEASES - THE COMPANY AS LESSE_2
LEASES - THE COMPANY AS LESSEE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1.6 | $ 1.2 | $ 4.2 | $ 3.5 |
Finance lease cost | $ 0.3 | $ 0.5 | $ 0.8 | $ 1.1 |
SHARE-BASED PAYMENT AWARDS - Na
SHARE-BASED PAYMENT AWARDS - Narrative (Details) - 2012 Plan - Time-based and market-based restricted stock units - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 306,300 | 376,600 |
Granted (in dollars per share) | $ 25.56 | $ 16.63 |
SHARE-BASED PAYMENT AWARDS - Sc
SHARE-BASED PAYMENT AWARDS - Schedule of Fair Value Assumptions of Market-based Awards (Details) - Time-based and market-based restricted stock units - 2012 Plan - Time-Based Vesting | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of A&B common stock (percent) | 47.70% | 47.20% |
Average volatility of peer companies (percent) | 49.50% | 49.60% |
Risk-free interest rate (percent) | 1.40% | 0.20% |
SHARE-BASED PAYMENT AWARDS - Su
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Time-based and market-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Time-based and market-based restricted stock units | $ 1.6 | $ 1.6 | $ 4.6 | $ 4.4 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pre-tax settlement charge | $ 76.9 | $ 0 | ||
Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | $ 0.9 | 29.9 | ||
Pre-tax settlement charge | $ 0 | $ 0 | 76.9 | $ 0 |
Income tax benefit to reclassify tax effects of benefit plan termination | $ 18.3 |
EMPLOYEE BENEFIT PLANS - Summar
EMPLOYEE BENEFIT PLANS - Summary of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Components of Net Periodic Benefit Cost | ||||
Pension termination | $ 76.9 | $ 0 | ||
Pension and Post-retirement Plan | ||||
Components of Net Periodic Benefit Cost | ||||
Service cost | $ 0.1 | $ 0.4 | 1.5 | 1 |
Interest cost | 0 | 1.5 | 0.9 | 4.1 |
Expected return on plan assets | 0 | (1.3) | (2.5) | (3.8) |
Amortization of net loss | 0.1 | 0.5 | 1.9 | 1.9 |
Amortization of prior service credit | 0 | 0 | 0.1 | 0 |
Pension termination | 0 | 0 | 76.9 | 0 |
Net periodic benefit cost | $ 0.2 | $ 1.1 | $ 78.8 | $ 3.2 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations | $ 6.8 | $ 7.1 | $ 22.3 | $ 30.1 |
Exclude: (Income) loss attributable to noncontrolling interest | (0.4) | (0.1) | (1.2) | (0.3) |
Income (loss) from continuing operations attributable to A&B shareholders | 6.4 | 7 | 21.1 | 29.8 |
Distributions and allocations to participating securities | (0.1) | (0.1) | (0.2) | (0.1) |
Income (loss) from continuing operations available to A&B shareholders | 6.3 | 6.9 | 20.9 | 29.7 |
Income (loss) from discontinued operations available to A&B common shareholders | 0 | (0.6) | (0.1) | (0.7) |
Net income (loss) available to A&B common shareholders | $ 6.3 | $ 6.3 | $ 20.8 | $ 29 |
Number of shares used to compute basic and diluted earnings per share [Abstract] | ||||
Denominator for basic EPS – weighted-average shares outstanding (in shares) | 72.7 | 72.5 | 72.7 | 72.5 |
Effect of dilutive securities: | ||||
Stock options and restricted stock unit awards (in shares) | 0.1 | 0.2 | 0.1 | 0.1 |
Denominator for diluted EPS - weighted average shares outstanding (in shares) | 72.8 | 72.7 | 72.8 | 72.6 |
EARNINGS PER SHARE ("EPS") - _2
EARNINGS PER SHARE ("EPS") - Schedule of Antidilutive Securities Outstanding (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Number of anti-dilutive securities (in shares) | 0.1 | 0 | 0.1 | 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | $ 1,127.2 | $ 1,093.3 | $ 1,127.2 | $ 1,093.3 |
Beginning balance | 1,136 | 1,102.2 | 1,066.6 | 1,096.1 |
Other comprehensive income (loss) before reclassifications | 24.6 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 78.9 | |||
Taxes on other comprehensive income (loss) | 0 | 0 | (18.3) | 0 |
Other comprehensive income (loss), net of tax | 2.6 | (3.6) | 85.2 | 0.3 |
Ending balance | 1,127.2 | 1,093.3 | 1,127.2 | 1,093.3 |
Accumulated Other Compre- hensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | 4.5 | (59.7) | 4.5 | (59.7) |
Beginning balance | 1.9 | (56.1) | (80.7) | (60) |
Other comprehensive income (loss), net of tax | 2.6 | (3.6) | 85.2 | 0.3 |
Ending balance | 4.5 | $ (59.7) | 4.5 | $ (59.7) |
Employee Benefit Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | (0.7) | (0.7) | ||
Beginning balance | (77.9) | |||
Other comprehensive income (loss) before reclassifications | 16.6 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 78.9 | |||
Taxes on other comprehensive income (loss) | (18.3) | |||
Other comprehensive income (loss), net of tax | 77.2 | |||
Ending balance | (0.7) | (0.7) | ||
Employee Benefit Plans | Qualified Plans | Pension plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Beginning balance | (74.6) | |||
Ending balance | 0 | 0 | ||
Employee Benefit Plans | Qualified Plans | Post-retirement plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Beginning balance | (2.6) | |||
Ending balance | 0 | 0 | ||
Employee Benefit Plans | Non-qualified benefit plans | Non-qualified benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | (0.7) | (0.7) | ||
Beginning balance | (0.7) | |||
Ending balance | (0.7) | (0.7) | ||
Interest Rate Swap | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) | 5.2 | 5.2 | ||
Beginning balance | (2.8) | |||
Other comprehensive income (loss) before reclassifications | 8 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Taxes on other comprehensive income (loss) | 0 | |||
Other comprehensive income (loss), net of tax | 8 | |||
Ending balance | $ 5.2 | $ 5.2 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Materials & Construction | Supplier Contracts | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 9 | $ 2.8 | $ 12.9 | $ 7.5 | |
Receivables from related parties | 4.5 | 4.5 | $ 1.1 | ||
Payables to related parties | 0.7 | 0.7 | 0.3 | ||
Real estate leasing and development | Lease Agreements | |||||
Related Party Transaction [Line Items] | |||||
Expenses related to affiliates | 1.6 | 0.3 | 4 | 0.9 | |
Land Operations | Land Operations | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 0 | $ 0.3 | 0.2 | $ 1.8 | |
Receivables from related parties | $ 0 | $ 0 | $ 0 |
SEGMENT RESULTS - Narrative (De
SEGMENT RESULTS - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
SEGMENT RESULTS - Schedule of O
SEGMENT RESULTS - Schedule of Operating Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Total operating revenue | $ 97.2 | $ 84.3 | $ 283.5 | $ 254.6 |
Total operating profit (loss) | 19.9 | 20.4 | 54.7 | 69.1 |
Gain (loss) on disposal of commercial real estate properties, net | 0 | 0 | 0 | 0.2 |
Interest expense | (5.5) | (6.5) | (16.8) | (20.2) |
Corporate and other expense | (7.6) | (6.8) | (33.7) | (18.9) |
Income (Loss) from Continuing Operations Before Income Taxes | 6.8 | 7.1 | 4.2 | 30.2 |
Pension termination charges | 0 | 0 | 76.9 | 0 |
Gain on disposal of non-core assets, net | 0 | 0 | 54 | 0.2 |
Corporate and other expense | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Pension termination charges | 0 | 14 | ||
Commercial Real Estate | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Commercial Real Estate | 46.2 | 44 | 138.1 | 127.2 |
Total operating profit (loss) | 20.3 | 19 | 60.3 | 53 |
Commercial Real Estate | Operating Segments | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Pension termination charges | 0 | 0.7 | ||
Land Operations | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Revenues | 2.9 | 5.4 | 20.9 | 38.5 |
Total operating profit (loss) | (2.2) | 1.7 | (10) | 22.3 |
Land Operations | Operating Segments | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Pension termination charges | 0 | 62.2 | ||
Gain on disposal of non-core assets, net | 54 | |||
Materials & Construction | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Revenues | 48.1 | 34.9 | 124.5 | 88.9 |
Total operating profit (loss) | $ 1.8 | $ (0.3) | $ 4.4 | $ (6.2) |
SALE OF BUSINESS (Details)
SALE OF BUSINESS (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 USD ($) a | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Area of land | a | 18,900 | ||||
Proceeds from disposal of assets | $ 73.1 | $ 0.6 | |||
Gain (loss) on disposal of non-core assets, net | $ 0 | $ 0 | $ 54 | $ 0.2 | |
McBryde Resources, Inc., | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from disposal of assets | $ 73.9 | ||||
Brue Baukol Capital Partners | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from disposal of assets | $ 0.9 | ||||
Disposal Group, Not Discontinued Operations | McBryde Resources, Inc., | McBryde Resources, Inc., | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership interest percentage in subsidiaries | 100% |