Hawaii
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99
-
0032630
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Name of each exchange
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Title of each class
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on which registered
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Common Stock, without par value
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NYSE
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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Items 1 & 2.
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Business and Properties
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1
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A.
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Transportation
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2
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(1)
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Freight Services
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2
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(2)
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Vessels
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3
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(3)
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Terminals
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3
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(4)
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Logistics and Other Services
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3
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(5)
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Competition
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4
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(6)
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Labor Relations
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7
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(7)
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Rate Regulation
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7
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B.
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Real Estate
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7
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(1)
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General
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7
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(2)
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Planning and Zoning
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8
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(3)
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Development Projects
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8
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(4)
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Leased Portfolio
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11
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C.
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Agribusiness
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13
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(1)
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Production
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13
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(2)
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Marketing of Sugar
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14
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(3)
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Sugar Competition and Legislation
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14
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(4)
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Land Designations and Water
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15
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D.
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Employees and Labor Relations
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16
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E.
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Energy
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17
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F.
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Available Information
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18
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Item 1A.
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Risk Factors
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19
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Item 1B.
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Unresolved Staff Comments
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29
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Item 3.
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Legal Proceedings
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29
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Item 4.
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Mine Safety Disclosures
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31
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Executive Officers of the Registrant
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31
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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32
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Item 6.
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Selected Financial Data
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35
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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38
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Page
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Items 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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60
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Item 8.
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Financial Statements and Supplementary Data
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61
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Item 9.
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Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
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111
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Item 9A.
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Controls and Procedures
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111
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A.
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Disclosure Controls and Procedures
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111
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B.
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Internal Control over Financial Reporting
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111
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Item 9B.
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Other Information
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111
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A.
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Transportation
- carrying freight, primarily between various U.S. Pacific Coast, Hawaii, Guam, China and other Pacific island ports; arranging domestic and international rail intermodal service, long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload, expedited/air freight services, and warehousing and distribution services; and providing terminal, stevedoring and container equipment maintenance services in Hawaii.
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B.
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Real Estate
- engaging in real estate development and ownership activities, including planning, zoning, financing, constructing, purchasing, managing and leasing, selling and exchanging, and investing in real property.
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C.
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Agribusiness
- growing sugar cane in Hawaii; producing bulk raw sugar, specialty food-grade sugars and molasses; marketing and distributing specialty food-grade sugars; generating and selling, to the extent not used in A&B’s operations, electricity; and providing general trucking services in Hawaii, including sugar and molasses hauling, and mobile equipment maintenance and repair services. In March 2011, the Company executed an agreement to lease land and sell coffee inventory and certain assets used in a coffee business it previously operated to Massimo Zanetti Beverage USA, Inc.
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·
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A Hawaii-based land company with interests in real estate development, commercial real estate and agriculture (composed of the Real Estate and Agribusiness segments described above), which will retain the Alexander & Baldwin, Inc. name; and
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·
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An ocean transportation company serving the U.S. West Coast, Hawaii, Guam, Micronesia and China, and a domestic logistics company under the Matson name (composed of the businesses in the Transportation segment described above).
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Usable Cargo Capacity
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||||||||||||||
Maximum
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Maximum
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Containers
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Vehicles
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Molassess
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||||||||||
Official
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Year
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Speed
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Deadweight
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Reefer
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||||||||||
Vessel Name
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Number
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Built
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Length
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(Knots)
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(Long Tons)
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20’
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24’
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40’
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45’
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Slots
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TEUs(1)
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Autos
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Trailers
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Short Tons
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Diesel-Powered Ships
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||||||||||||||
R. J. PFEIFFER
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979814
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1992
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713’ 6”
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23.0
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27,100
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107
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--
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1,069
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--
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300
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2,245
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--
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--
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--
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MOKIHANA
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655397
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1983
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860’ 2”
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23.0
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29,484
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52
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--
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950
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--
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342
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1,994
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1,323
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38
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--
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MANULANI
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1168529
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2005
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712’ 0”
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23.0
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29,517
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4
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--
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1,040
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128
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284
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2,372
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--
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--
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--
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MAHIMAHI
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653424
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1982
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860’ 2”
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23.0
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30,167
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150
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--
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1,494
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--
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408
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2,824
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--
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--
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--
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MANOA
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651627
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1982
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860’ 2”
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23.0
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30,187
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150
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--
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1,494
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--
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408
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2,824
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--
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--
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3,000
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MANUKAI
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1141163
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2003
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711’ 9”
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23.0
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29,517
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4
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--
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1,115
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64
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284
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2,378
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--
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--
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--
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MAUNAWILI
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1153166
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2004
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711’ 9”
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23.0
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29,517
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4
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--
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1,115
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64
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284
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2,378
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--
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--
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--
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MAUNALEI
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1181627
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2006
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681’ 1”
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22.1
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33,771
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424
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--
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984
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--
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328
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1,992
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--
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--
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--
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Steam-Powered Ships
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||||||||||||||
KAUAI
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621042
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1980
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720’ 5-1/2”
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22.5
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26,308
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74
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128
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708
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--
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270
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1,644
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44
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--
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2,600
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MAUI
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591709
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1978
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720’ 5-1/2”
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22.5
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26,623
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74
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128
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708
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--
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270
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1,644
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--
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--
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2,600
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MATSONIA
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553090
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1973
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760’ 0”
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21.5
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22,501
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36
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45
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789
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26
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258
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1,727
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450
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85
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4,300
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LURLINE
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549900
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1973
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826’ 6”
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21.5
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22,213
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6
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--
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777
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38
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246
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1,646
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761
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55
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2,100
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LIHUE
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530137
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1971
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787’ 8”
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21.0
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38,656
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296
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--
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861
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--
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188
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2,018
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--
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--
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--
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Barges
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||||||||||||||
WAIALEALE (2)
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978516
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1991
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345’ 0”
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--
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5,621
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--
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--
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--
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--
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36
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--
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230
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45
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--
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MAUNA KEA (3)
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933804
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1988
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372’ 0”
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--
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6,837
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--
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276
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24
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--
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70
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379
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--
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--
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--
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MAUNA LOA (3)
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676973
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1984
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350’ 0”
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--
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4,658
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24
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24
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124
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16
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78
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335
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--
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--
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2,100
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HALEAKALA (3)
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676972
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1984
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350’ 0”
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--
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4,658
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24
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24
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124
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16
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78
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335
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--
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--
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2,100
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(1)
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“Twenty-foot Equivalent Units” (including trailers). TEU is a standard measure of cargo volume correlated to the volume of a standard 20-foot dry cargo container.
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(2)
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Roll-on/Roll-off Barge.
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(3)
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Container Barge.
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Location
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No. of Acres
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Maui
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67,240
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Kauai
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20,375
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Oahu
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70
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Big Island
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10
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TOTAL HAWAII
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87,695
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Texas
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150
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California
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100
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Georgia
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63
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Utah
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55
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Colorado
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36
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Washington
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27
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Nevada
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21
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Arizona
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19
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TOTAL MAINLAND
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471
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Current Use
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No. of Acres
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Hawaii
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|||
Fully entitled Urban (defined below)
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750
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Agricultural, pasture and miscellaneous
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57,775
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Watershed/conservation
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29,170
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U.S. Mainland
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Fully entitled Urban
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471
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TOTAL
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88,166
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·
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amendment of the County general plan to reflect the desired residential use;
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·
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approval by the State Land Use Commission to reclassify the parcel from the Agricultural district to the Urban district;
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·
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amendment of the Community Plan; and
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·
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County approval to rezone the property to the precise residential use desired.
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Property
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Location
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Type
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Leasable Area
(sq. ft.)
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Komohana Industrial Park
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Kapolei, Oahu
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Industrial
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238,300
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Maui Mall
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Kahului, Maui
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Retail
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185,700
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Waipio Industrial
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Waipahu, Oahu
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Industrial
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158,400
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Kaneohe Bay Shopping Center
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Kaneohe, Oahu
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Retail
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123,900
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Waipio Shopping Center
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Waipahu, Oahu
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Retail
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113,800
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P&L Warehouse
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Kahului, Maui
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Industrial
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104,100
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Lanihau Marketplace
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Kailua-Kona, Hawaii
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Retail
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88,300
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Port Allen (4 buildings)
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Port Allen, Kauai
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Industrial/Retail
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87,400
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Kunia Shopping Center
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Waipahu, Oahu
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Retail
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60,400
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Kahului Office Building
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Kahului, Maui
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Office
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58,300
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Lahaina Square
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Lahaina, Maui
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Retail
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50,200
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Kahului Shopping Center
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Kahului, Maui
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Retail
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43,200
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Kahului Office Center
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Kahului, Maui
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Office
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32,900
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Stangenwald Building
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Honolulu, Oahu
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Office
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27,100
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Judd Building
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Honolulu, Oahu
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Office
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20,200
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Maui Clinic Building
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Kahului, Maui
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Office
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16,600
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Lono Center
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Kahului, Maui
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Office
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13,400
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Gateway at Mililani Mauka
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Mililani, Oahu
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Retail
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5,900
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Property
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Location
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Type
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Leasable Area
(sq. ft.)
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Heritage Business Park
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Dallas, TX
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Industrial
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1,316,400
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Savannah Logistics Park
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Savannah, GA
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Industrial
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1,035,700
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Midstate 99 Distribution Center
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Visalia, CA
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Industrial
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789,100
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Sparks Business Center
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Sparks, NV
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Industrial
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396,100
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Republic Distribution Center
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Pasadena, TX
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Industrial
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312,500
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Activity Distribution Center
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San Diego, CA
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Industrial
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252,300
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Centennial Plaza
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Salt Lake City, UT
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Industrial
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244,000
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Meadows on the Parkway
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Boulder, CO
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Retail
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216,400
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1800 and 1820 Preston Park
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Plano, TX
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Office
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198,800
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Ninigret Office Park X and XI
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Salt Lake City, UT
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Office
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185,500
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San Pedro Plaza
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San Antonio, TX
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Office/Retail
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171,900
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Rancho Temecula Town Center
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Temecula, CA
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Retail
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165,500
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2868 Prospect Park
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Sacramento, CA
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Office
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162,900
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Issaquah Office Center
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Issaquah, WA
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Office
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146,900
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Little Cottonwood Center
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Sandy, UT
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Retail
|
141,600
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Concorde Commerce Center
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Phoenix, AZ
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Office
|
140,700
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Deer Valley Financial Center
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Phoenix, AZ
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Office
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126,600
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Northpoint Industrial
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Fullerton, CA
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Industrial
|
119,400
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Broadlands Marketplace
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Broomfield, CO
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Retail
|
103,900
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Union Bank
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Everett, WA
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Office
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84,000
|
2890 Gateway Oaks
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Sacramento, CA
|
Office
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58,700
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Wilshire Shopping Center
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Greeley, CO
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Retail
|
46,500
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Royal MacArthur Center
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Dallas, TX
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Retail
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44,100
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Firestone Boulevard Building
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La Mirada, CA
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Office
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28,100
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|
•
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the Company may not have voting control over the joint venture;
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•
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the Company may not be able to maintain good relationships with its venture partners;
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•
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the venture partner at any time may have economic or business interests that are inconsistent with the Company’s;
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•
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the venture partner may fail to fund its share of capital for operations and development activities, or to fulfill its other commitments, including providing accurate and timely accounting and financial information to the Company;
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•
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the joint venture or venture partner could lose key personnel; and
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•
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the venture partner could become bankrupt, requiring the Company to assume all risks and capital requirements related to the joint venture project, and the related bankruptcy proceedings could have an adverse impact on the operation of the partnership or joint venture.
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|
•
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challenges in operating in a foreign country and doing business and developing relationships with foreign companies;
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•
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difficulties in staffing and managing foreign operations;
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|
•
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U.S. and foreign legal and regulatory restrictions, including compliance with the Foreign Corrupt Practices Act and foreign laws that prohibit corrupt payments to government officials;
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•
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global vessel overcapacity that may lead to decreases in volumes and shipping rates;
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|
•
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competition with established and new shippers;
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•
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currency exchange rate fluctuations;
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|
•
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political and economic instability;
|
|
•
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protectionist measures that may affect the Company’s operation of its wholly-owned foreign enterprise; and
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|
•
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challenges caused by cultural differences.
|
|
•
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an inability of the Company or buyers to secure sufficient financing or insurance on favorable terms, or at all;
|
|
•
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construction delays, defects, or cost overruns, which may increase project development costs;
|
|
•
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an increase in commodity or construction costs, including labor costs;
|
|
•
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the discovery of hazardous or toxic substances, or other environmental, culturally-sensitive, or related issues;
|
|
•
|
an inability to obtain, or significant delay in obtaining, zoning, occupancy and other required governmental permits and authorizations;
|
|
•
|
difficulty in complying with local, city, county and state rules and regulations regarding permitting, zoning, subdivision, utilities, affordable housing, and water quality as well as federal rules and regulations regarding air and water quality and protection of endangered species and their habitats;
|
|
•
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an inability to have access to sufficient and reliable sources of water or to secure water service or meters for its projects;
|
|
•
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an inability to secure tenants necessary to support the project or maintain compliance with debt covenants;
|
|
•
|
failure to achieve or sustain anticipated occupancy or sales levels;
|
|
•
|
buyer defaults, including defaults under executed or binding contracts;
|
|
•
|
condemnation of all or parts of development or operating properties, which could adversely affect the value or viability of such projects; and
|
|
•
|
an inability to sell the Company’s constructed inventory.
|
|
•
|
a significant number of the Company’s tenants are unable to meet their obligations;
|
|
•
|
increases in non-recoverable operating and ownership costs;
|
|
•
|
the Company is unable to lease space at its properties when the space becomes available;
|
|
•
|
the rental rates upon a renewal or a new lease are significantly lower than prior rents or do not increase sufficiently to cover increases in operating and ownership costs;
|
|
•
|
the providing of lease concessions, such as free or discounted rents and tenant improvement allowances; and
|
|
•
|
the discovery of hazardous or toxic substances, or other environmental, culturally-sensitive, or related issues at the property.
|
|
•
|
weather and natural disasters;
|
|
•
|
disease;
|
|
•
|
weed control;
|
|
•
|
uncontrolled fires, including arson;
|
|
•
|
government restrictions on farming practices due to cane burning;
|
|
•
|
increases in costs, including, but not limited to fuel, fertilizer, herbicide, and drip tubing;
|
|
•
|
water availability (see risk factor above regarding lack of water);
|
|
•
|
equipment failures in factory or power plant;
|
|
•
|
labor, including labor availability (see risk factor above regarding labor disruptions) and loss of qualified personnel; and
|
|
•
|
lack of demand for the Company’s production.
|
Dividends
|
Market Price
|
|||||||||||||||
Paid
|
High
|
Low
|
Close
|
|||||||||||||
2011
|
||||||||||||||||
First Quarter
|
$
|
0.315
|
$
|
46.00
|
$
|
39.18
|
$
|
45.65
|
||||||||
Second Quarter
|
$
|
0.315
|
$
|
55.50
|
$
|
44.50
|
$
|
48.16
|
||||||||
Third Quarter
|
$
|
0.315
|
$
|
51.66
|
$
|
36.48
|
$
|
36.53
|
||||||||
Fourth Quarter
|
$
|
0.315
|
$
|
45.53
|
$
|
33.09
|
$
|
40.82
|
||||||||
2010
|
||||||||||||||||
First Quarter
|
$
|
0.315
|
$
|
36.43
|
$
|
31.23
|
$
|
33.05
|
||||||||
Second Quarter
|
$
|
0.315
|
$
|
37.42
|
$
|
29.02
|
$
|
29.78
|
||||||||
Third Quarter
|
$
|
0.315
|
$
|
36.37
|
$
|
28.92
|
$
|
34.84
|
||||||||
Fourth Quarter
|
$
|
0.315
|
$
|
40.54
|
$
|
33.63
|
$
|
40.03
|
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
Weighted-average exercise price of outstanding options, warrants and rights
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
(a)
|
(b)
|
(c)
|
|
Equity compensation plans approved by security holders
|
2,553,667
|
$38.39
|
1,925,746*
|
Equity compensation plans not approved by security holders
|
--
|
--
|
--
|
Total
|
2,553,667
|
$38.39
|
1,925,746
|
|
*
|
Under the 2007 Incentive Compensation Plan, 1,925,746 shares may be issued either as restricted stock grants, restricted stock units grants, or stock option grants.
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||
Revenue:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
1,077.6
|
$
|
1,016.5
|
$
|
888.6
|
$
|
1,023.7
|
$
|
1,006.9
|
||||||
Logistics services
|
386.4
|
355.6
|
320.9
|
436.0
|
433.5
|
|||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
100.1
|
94.4
|
103.2
|
107.8
|
108.5
|
|||||||||||
Sales
|
66.2
|
136.1
|
125.6
|
350.2
|
117.8
|
|||||||||||
Less amounts reported in discontinued operations
1
|
(47.5
|
)
|
(126.7
|
)
|
(136.6
|
)
|
(164.6
|
)
|
(142.6
|
)
|
||||||
Agribusiness
5
|
161.7
|
163.9
|
107.0
|
124.3
|
123.7
|
|||||||||||
Reconciling Items
2
|
(22.1
|
)
|
(26.3
|
)
|
(16.3
|
)
|
(10.7
|
)
|
(9.2
|
)
|
||||||
Total Revenue
|
$
|
1,722.4
|
$
|
1,613.5
|
$
|
1,392.4
|
$
|
1,866.7
|
$
|
1,638.6
|
||||||
Operating Profit
:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
3
|
$
|
74.1
|
$
|
118.7
|
$
|
58.3
|
$
|
105.8
|
$
|
126.5
|
||||||
Logistics services
|
5.0
|
7.2
|
6.7
|
18.5
|
21.8
|
|||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
39.3
|
35.3
|
43.2
|
47.8
|
51.6
|
|||||||||||
Sales
3
|
15.5
|
50.1
|
39.1
|
95.6
|
74.4
|
|||||||||||
Less amounts reported in discontinued operations
1
|
(23.8
|
)
|
(54.5
|
)
|
(59.2
|
)
|
(77.1
|
)
|
(78.4
|
)
|
||||||
Agribusiness
5
|
22.2
|
6.1
|
(27.8
|
)
|
(12.9
|
)
|
0.2
|
|||||||||
Total operating profit
|
132.3
|
162.9
|
60.3
|
177.7
|
196.1
|
|||||||||||
Interest expense, net
4
|
(24.8
|
)
|
(25.5
|
)
|
(25.9
|
)
|
(23.7
|
)
|
(18.8
|
)
|
||||||
General corporate expenses
|
(20.3
|
)
|
(23.3
|
)
|
(21.8
|
)
|
(21.0
|
)
|
(27.3
|
)
|
||||||
Income from continuing operations before income taxes
|
87.2
|
114.1
|
12.6
|
133.0
|
150.0
|
|||||||||||
Income taxes
|
32.3
|
44.7
|
5.0
|
48.2
|
56.6
|
|||||||||||
Income from continuing operations
|
54.9
|
69.4
|
7.6
|
84.8
|
93.4
|
|||||||||||
Income (loss) from discontinued operations
|
(20.7
|
)
|
22.7
|
36.6
|
47.6
|
48.8
|
||||||||||
Net Income
|
$
|
34.2
|
$
|
92.1
|
$
|
44.2
|
$
|
132.4
|
$
|
142.2
|
1
|
Prior year amounts restated for amounts treated as discontinued operations.
|
2
|
Includes inter-segment revenue, interest income, and other income classified as revenue for segment reporting purposes.
|
3
|
The Ocean Transportation segment includes approximately $8.6 million, $12.8 million, $6.2 million, $5.2 million, and $10.7 million of equity in earnings from its investment in SSAT for 2011, 2010, 2009, 2008, and 2007, respectively. The Real Estate Sales segment includes approximately ($7.9) million, $2.0 million, $9.0 million, and $22.6 million in equity in (loss) earnings from its various real estate joint ventures for 2011, 2010, 2008, and 2007, respectively. Equity in earnings from joint ventures in 2009 was negligible.
|
4
|
Includes Ocean Transportation interest expense of $7.7 million for 2011, $8.2 million for 2010, $9.0 million for 2009, $11.6 million for 2008, and $13.9 million for 2007. Substantially all other interest expense was incurred at the parent company.
|
5
|
Includes a $4.9 million gain in 2010 related to an agriculture disaster relief payment for drought experienced in prior years and a $5.4 million gain recorded upon consolidation of HS&TC in 2009.
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||
Identifiable Assets:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
6
|
$
|
1,082.6
|
$
|
1,095.5
|
$
|
1,095.2
|
$
|
1,153.9
|
$
|
1,215.0
|
||||||
Logistics services
|
76.8
|
73.8
|
72.4
|
74.2
|
58.6
|
|||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
770.9
|
739.4
|
627.4
|
590.2
|
595.4
|
|||||||||||
Sales
6
|
451.4
|
420.8
|
415.6
|
344.6
|
408.9
|
|||||||||||
Agribusiness
|
157.8
|
150.3
|
156.8
|
172.2
|
174.6
|
|||||||||||
Other
|
4.8
|
14.8
|
12.2
|
15.1
|
26.6
|
|||||||||||
Total assets
|
$
|
2,544.3
|
$
|
2,494.6
|
$
|
2,379.6
|
$
|
2,350.2
|
$
|
2,479.1
|
||||||
Capital Expenditures:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
44.2
|
$
|
69.4
|
$
|
12.7
|
$
|
35.5
|
$
|
65.8
|
||||||
Logistics services
7
|
3.0
|
1.8
|
0.6
|
2.4
|
2.0
|
|||||||||||
Real Estate:
|
||||||||||||||||
Leasing
8
|
43.6
|
164.7
|
108.8
|
100.2
|
124.5
|
|||||||||||
Sales
9
|
5.2
|
0.1
|
0.1
|
0.6
|
0.3
|
|||||||||||
Agribusiness
|
10.5
|
6.8
|
3.4
|
15.2
|
20.5
|
|||||||||||
Other
|
--
|
0.3
|
0.3
|
0.8
|
0.3
|
|||||||||||
Total capital expenditures
|
$
|
106.5
|
$
|
243.1
|
$
|
125.9
|
$
|
154.7
|
$
|
213.4
|
||||||
Depreciation and Amortization:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
70.6
|
$
|
69.0
|
$
|
67.1
|
$
|
66.1
|
$
|
63.2
|
||||||
Logistics services
|
3.2
|
3.2
|
3.5
|
2.3
|
1.5
|
|||||||||||
Real Estate:
|
||||||||||||||||
Leasing
1
|
21.6
|
20.3
|
19.5
|
17.9
|
15.7
|
|||||||||||
Sales
|
0.2
|
0.2
|
0.3
|
0.2
|
0.2
|
|||||||||||
Agribusiness
|
11.9
|
12.7
|
11.9
|
11.5
|
10.7
|
|||||||||||
Other
|
1.1
|
1.9
|
3.1
|
2.7
|
1.3
|
|||||||||||
Total depreciation and amortization
|
$
|
108.6
|
$
|
107.3
|
$
|
105.4
|
$
|
100.7
|
$
|
92.6
|
6
|
The Ocean Transportation segment includes approximately $56.5 million, $52.9 million, $47.2 million, $44.6 million, and $48.6 million related to its investment in SSAT as of December 31, 2011, 2010, 2009, 2008, and 2007, respectively. The Real Estate Sales segment includes approximately $290.1 million, $274.8 million, $193.3 million, $162.1 million, and $134.1 million related to its investment in various real estate joint ventures as of December 31, 2011, 2010, 2009, 2008, and 2007, respectively.
|
7
|
Excludes expenditures related to Matson Logistics’ acquisitions, which are classified as acquisition of businesses in Cash Flows from Investing Activities within the Consolidated Statements of Cash Flows.
|
8
|
Represents gross capital additions to the leasing portfolio, including gross tax-deferred property purchases that are reflected as non-cash transactions in the Consolidated Statements of Cash Flows.
|
9
|
Excludes expenditures for real estate developments held for sale which are classified as Cash Flows from Operating Activities within the Consolidated Statements of Cash Flows. Operating cash flows for expenditures related to real estate developments were $14 million, $22 million, $6 million, $39 million, and $110 million for 2011, 2010, 2009, 2008, and 2007, respectively.
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
Earnings per share:
|
||||||||||||||||||||
From continuing operations:
|
||||||||||||||||||||
Basic
|
$
|
1.32
|
$
|
1.68
|
$
|
0.19
|
$
|
2.05
|
$
|
2.20
|
||||||||||
Diluted
|
$
|
1.31
|
$
|
1.67
|
$
|
0.19
|
$
|
2.04
|
$
|
2.17
|
||||||||||
Net income:
|
||||||||||||||||||||
Basic
|
$
|
0.82
|
$
|
2.23
|
$
|
1.08
|
$
|
3.21
|
$
|
3.34
|
||||||||||
Diluted
|
$
|
0.81
|
$
|
2.22
|
$
|
1.08
|
$
|
3.19
|
$
|
3.30
|
||||||||||
Return on beginning equity
|
3.0
|
%
|
8.5
|
%
|
4.1
|
%
|
11.7
|
%
|
13.8
|
%
|
||||||||||
Cash dividends per share
|
$
|
1.26
|
$
|
1.26
|
$
|
1.26
|
$
|
1.235
|
$
|
1.12
|
||||||||||
At Year End
|
||||||||||||||||||||
Shareholders of record
|
2,923
|
3,079
|
3,197
|
3,269
|
3,381
|
|||||||||||||||
Shares outstanding
|
41.7
|
41.3
|
41.0
|
41.0
|
42.4
|
|||||||||||||||
Long-term debt – non-current
|
$
|
507
|
$
|
386
|
$
|
406
|
$
|
452
|
$
|
452
|
|
•
|
Business Overview
|
|
•
|
Separation Transaction
|
|
•
|
Critical Accounting Estimates
|
|
•
|
Consolidated Results of Operations
|
|
•
|
Analysis of Operating Revenue and Profit by Segment
|
|
•
|
Liquidity and Capital Resources
|
|
•
|
Contractual Obligations, Commitments, Contingencies and Off-Balance-Sheet Arrangements
|
|
•
|
Business Outlook
|
|
•
|
Other Matters
|
·
|
A Hawaii-based land company with interests in real estate development, commercial real estate and agriculture (composed of the Real Estate and Agribusiness segments described above), which will retain the Alexander & Baldwin, Inc. name; and
|
·
|
An ocean transportation company serving the U.S. West Coast, Hawaii, Guam, Micronesia and China, and a domestic logistics company under the Matson name (composed of the businesses in the Transportation segment described above).
|
|
Original
Acquisition
Date
|
|
Purchase
Price (1)
|
|
Net Book Value
as of
December 31, 2011
|
|||||||
Maunalei
|
|
September 2006
|
|
|
$
|
158
|
|
|
$
|
130
|
|
|
Manulani
|
|
June 2005
|
|
|
152
|
|
|
119
|
|
|||
Maunawili
|
|
September 2004
|
|
|
103
|
|
|
79
|
|
|||
Manukai
|
|
September 2003
|
|
|
106
|
|
|
78
|
|
|||
RJ Pfieffer
|
|
August 1992
|
|
|
159
|
|
|
61
|
|
|||
Mokihana
|
|
January 1996
|
|
|
96
|
|
|
38
|
|
|||
Kauai
|
|
September 1980
|
|
|
91
|
|
|
20
|
|
|||
Mahimahi
|
|
January 1996
|
|
|
58
|
|
|
16
|
|
|||
Manoa
|
|
January 1996
|
|
|
59
|
|
|
16
|
|
|||
Maui
|
June 1978
|
78
|
14
|
|||||||||
Waialeale
|
November 1991
|
11
|
4
|
|||||||||
Lurline
|
August 1998
|
18
|
3
|
|||||||||
Mauna Kea
|
August 1988
|
10
|
3
|
|||||||||
Matsonia
|
|
October 1987
|
|
|
95
|
|
|
2
|
|
|||
Lihue
|
|
January 1996
|
|
|
8
|
|
|
2
|
|
|||
Haleakala
|
December 1984
|
13
|
1
|
|||||||||
Mauna Loa
|
December 1984
|
11
|
1
|
|||||||||
Moku Pahu
|
December 2009
|
6
|
4
|
|||||||||
Total vessels
|
|
|
$
|
1,232
|
|
|
$
|
591
|
|
(1)
|
Purchase price includes any subsequent improvements or modifications.
|
|
•
|
Discount rates
|
|
•
|
Expected long-term rate of return on pension plan assets
|
|
•
|
Salary growth
|
|
•
|
Health care cost trend rates
|
|
•
|
Inflation
|
|
•
|
Retirement rates
|
|
•
|
Mortality rates
|
|
•
|
Expected contributions
|
(dollars in millions, except per-share amounts)
|
2011
|
Chg.
|
2010
|
Chg.
|
2009
|
|||||||||||
Operating Revenue
|
$
|
1,722
|
7
|
%
|
$
|
1,614
|
16
|
%
|
$
|
1,392
|
||||||
Operating Costs and Expenses
|
1,608
|
8
|
%
|
1,488
|
10
|
%
|
1,358
|
|||||||||
Operating Income
|
114
|
-10
|
%
|
126
|
4
|
X
|
34
|
|||||||||
Other Income and (Expense)
|
(27
|
)
|
2
|
X
|
(12
|
)
|
-45
|
%
|
(22
|
)
|
||||||
Income Taxes
|
32
|
-29
|
%
|
45
|
9
|
X
|
5
|
|||||||||
Income From Continuing Operations
|
55
|
-20
|
%
|
69
|
10
|
X
|
7
|
|||||||||
Discontinued Operations (net of taxes)
|
(21
|
)
|
N
|
M
|
23
|
-38
|
%
|
37
|
||||||||
Net Income
|
$
|
34
|
-63
|
%
|
$
|
92
|
2
|
X
|
$
|
44
|
||||||
Basic Earnings Per Share
|
$
|
0.82
|
-63
|
%
|
$
|
2.23
|
2
|
X
|
$
|
1.08
|
||||||
Diluted Earnings Per Share
|
$
|
0.81
|
-64
|
%
|
$
|
2.22
|
2
|
X
|
$
|
1.08
|
(dollars in millions)
|
2011
|
2010
|
Change
|
||||||||
Revenue
|
$
|
1,077.6
|
$
|
1,016.5
|
6
|
%
|
|||||
Operating profit
|
$
|
74.1
|
$
|
118.7
|
-38
|
%
|
|||||
Operating profit margin
|
6.9
|
%
|
11.7
|
%
|
|||||||
Volume* (units):
|
|||||||||||
Hawaii containers
|
140,000
|
136,700
|
2
|
%
|
|||||||
Hawaii automobiles
|
81,000
|
81,800
|
-1
|
%
|
|||||||
China containers – CLX1
|
59,000
|
60,000
|
-2
|
%
|
|||||||
Guam containers
|
15,200
|
15,200
|
--
|
%
|
(dollars in millions)
|
2010
|
2009
|
Change
|
|||||||
Revenue
|
$
|
1,016.5
|
$
|
888.6
|
14
|
%
|
||||
Operating profit
|
$
|
118.7
|
$
|
58.3
|
2
|
X
|
||||
Operating profit margin
|
11.7
|
%
|
6.6
|
%
|
||||||
Volume* (units):
|
||||||||||
Hawaii containers
|
136,700
|
136,100
|
--
|
|||||||
Hawaii automobiles
|
81,800
|
83,400
|
-2
|
%
|
||||||
China containers – CLX1
|
60,000
|
46,600
|
29
|
%
|
||||||
Guam containers
|
15,200
|
14,100
|
8
|
%
|
(dollars in millions)
|
2011
|
2010
|
Change
|
|||||||
Intermodal revenue
|
$
|
234.5
|
$
|
204.1
|
15
|
%
|
||||
Highway revenue
|
151.9
|
151.5
|
--
|
|||||||
Total Revenue
|
$
|
386.4
|
$
|
355.6
|
9
|
%
|
||||
Operating profit
|
$
|
5.0
|
$
|
7.2
|
-31
|
%
|
||||
Operating profit margin
|
1.3
|
%
|
2.0
|
%
|
(dollars in millions)
|
2010
|
2009
|
Change
|
|||||||
Intermodal revenue
|
$
|
204.1
|
$
|
188.0
|
9
|
%
|
||||
Highway revenue
|
151.5
|
132.9
|
14
|
%
|
||||||
Total Revenue
|
$
|
355.6
|
$
|
320.9
|
11
|
%
|
||||
Operating profit
|
$
|
7.2
|
$
|
6.7
|
7
|
%
|
||||
Operating profit margin
|
2.0
|
%
|
2.1
|
%
|
(dollars in millions)
|
2011
|
2010
|
Change
|
|||||||
Revenue
|
$
|
100.1
|
$
|
94.4
|
6
|
%
|
||||
Operating profit
|
$
|
39.3
|
$
|
35.3
|
11
|
%
|
||||
Operating profit margin
|
39.3
|
%
|
37.4
|
%
|
||||||
Average Occupancy Rates:
|
||||||||||
Mainland
|
92
|
%
|
85
|
%
|
||||||
Hawaii
|
91
|
%
|
92
|
%
|
||||||
Leasable Space (million sq. ft.) - Improved
|
||||||||||
Mainland
|
6.5
|
6.4
|
2
|
%
|
||||||
Hawaii
|
1.4
|
1.5
|
-7
|
%
|
Dispositions
|
Acquisitions
|
|||||
Date
|
Property
|
Leasable sq. ft
|
Date
|
Property
|
Leasable sq. ft
|
|
1-11
|
Apex Building
|
28,100
|
6-11
|
Union Bank Office Building
|
84,000
|
|
6-11
|
Arbor Park Shopping Center
|
139,500
|
9-11
|
Issaquah Office Center
|
146,900
|
|
9-11
|
Wakea Business Center II
|
61,500
|
12-11
|
Gateway at Mililani Mauka
|
5,900
|
|
|
||||||
Total Dispositions
|
229,100
|
Total Acquisitions
|
236,800
|
(dollars in millions)
|
2010
|
2009
|
Change
|
|||||||
Revenue
|
$
|
94.4
|
$
|
103.2
|
-9
|
%
|
||||
Operating profit
|
$
|
35.3
|
$
|
43.2
|
-18
|
%
|
||||
Operating profit margin
|
37.4
|
%
|
41.9
|
%
|
||||||
Average Occupancy Rates:
|
||||||||||
Mainland
|
85
|
%
|
85
|
%
|
||||||
Hawaii
|
92
|
%
|
95
|
%
|
||||||
Leasable Space (million sq. ft.) - Improved
|
||||||||||
Mainland
|
6.4
|
7.0
|
-9
|
%
|
||||||
Hawaii
|
1.5
|
1.3
|
15
|
%
|
Dispositions
|
Acquisitions
|
|||||
Date
|
Property
|
Leasable sq. ft
|
Date
|
Property
|
Leasable sq. ft
|
|
10-10
|
Ontario Distribution Center (CA)
|
898,400
|
11-10
|
Rancho Temecula (CA)
|
165,500
|
|
5-10
|
Valley Freeway (WA)
|
228,200
|
11-10
|
Lahaina Square (HI)
|
50,200
|
|
2-10
|
Kele Center (HI)
|
14,800
|
10-10
|
Little Cottonwood (UT)
|
141,600
|
|
1-10
|
Mililani Shopping Center (HI)
|
180,300
|
7-10
|
Komohana (HI)
|
238,300
|
|
4-10
|
Lanihau Marketplace (HI)
|
88,300
|
||||
1-10
|
Meadows on the Parkway (CO)
|
216,400
|
||||
|
||||||
Total Dispositions
|
1,321,700
|
Total Acquisitions
|
900,300
|
(dollars in millions)
|
2011
|
2010
|
2009
|
|||||||||
Hawaii improved
|
$
|
22.8
|
$
|
55.2
|
$
|
50.9
|
||||||
Mainland improved
|
22.4
|
58.5
|
48.7
|
|||||||||
Hawaii development sales
|
6.7
|
5.8
|
6.0
|
|||||||||
Hawaii unimproved/other
|
14.3
|
16.6
|
20.0
|
|||||||||
Total Revenue
|
$
|
66.2
|
$
|
136.1
|
$
|
125.6
|
||||||
Operating profit before joint ventures
|
$
|
23.4
|
$
|
48.1
|
$
|
39.1
|
||||||
Earnings (loss) from joint ventures/other
|
(7.9
|
)
|
2.0
|
NM
|
||||||||
Total Operating Profit
|
$
|
15.5
|
$
|
50.1
|
$
|
39.1
|
||||||
Operating profit margin
|
23.4
|
%
|
36.8
|
%
|
31.1
|
%
|
2011
|
2010
|
2009
|
||||||||||
Real Estate Sales Revenue*
|
$
|
45.5
|
$
|
117.1
|
$
|
109.6
|
||||||
Real Estate Leasing Revenue
|
2.0
|
9.6
|
27.0
|
|||||||||
CLX2 Revenue
|
92.7
|
28.5
|
--
|
|||||||||
Real Estate Sales Operating Profit*
|
$
|
22.5
|
$
|
48.6
|
$
|
44.3
|
||||||
Real Estate Leasing Operating Profit
|
1.3
|
5.9
|
14.9
|
|||||||||
CLX2 Loss from Operations
|
(56.6
|
)
|
(19.3
|
)
|
--
|
|||||||
Total Operating Profit (Loss) Before Taxes
|
(32.8
|
)
|
35.2
|
59.2
|
||||||||
Income Tax Expense (Benefit)
|
(12.1
|
)
|
12.5
|
22.6
|
||||||||
Income (Loss) from Discontinued Operations
|
$
|
(20.7
|
)
|
$
|
22.7
|
$
|
36.6
|
|||||
Basic Earnings Per Share
|
$
|
(0.50
|
)
|
$
|
0.55
|
$
|
0.89
|
|||||
Diluted Earnings Per Share
|
$
|
(0.50
|
)
|
$
|
0.55
|
$
|
0.89
|
|
*
|
Represents the sales proceeds and the gain on sale of income producing properties that are classified as discontinued operations.
|
(dollars in millions)
|
2011
|
2010
|
Change
|
|||||||
Revenue
|
$
|
161.7
|
$
|
163.9
|
-1
|
%
|
||||
Operating profit (loss)
|
$
|
22.2
|
$
|
6.1
|
4
|
X
|
||||
Operating profit margin
|
13.8
|
%
|
3.7
|
%
|
||||||
Tons sugar produced
|
182,800
|
171,800
|
6
|
%
|
||||||
Tons sugar sold
|
163,100
|
176,700
|
-8
|
%
|
(dollars in millions)
|
2010
|
2009
|
Change
|
|||||||
Revenue
|
$
|
163.9
|
$
|
107.0
|
53
|
%
|
||||
Operating profit (loss)
|
$
|
6.1
|
$
|
(27.8
|
)
|
NM
|
||||
Operating profit margin
|
3.7
|
%
|
-26.0
|
%
|
||||||
Tons sugar produced
|
171,800
|
126,800
|
35
|
%
|
||||||
Tons sugar sold
|
176,700
|
124,000
|
43
|
%
|
Payment due by period
|
|||||||||||||||||||||
Contractual Obligations
|
Total
|
2012
|
2013-2014
|
2015-2016
|
Thereafter
|
||||||||||||||||
Long-term debt obligations
(including current portion)
|
(a)
|
$
|
559
|
$
|
52
|
$
|
99
|
$
|
251
|
$
|
157
|
||||||||||
Estimated interest on debt
|
(b)
|
110
|
23
|
35
|
24
|
28
|
|||||||||||||||
Purchase obligations
|
(c)
|
39
|
39
|
--
|
--
|
--
|
|||||||||||||||
Post-retirement obligations
|
(d)
|
34
|
3
|
6
|
7
|
18
|
|||||||||||||||
Non-qualified benefit obligations
|
(e)
|
14
|
4
|
2
|
6
|
2
|
|||||||||||||||
Operating lease obligations
|
(f)
|
91
|
26
|
32
|
17
|
16
|
|||||||||||||||
Total
|
$
|
847
|
$
|
147
|
$
|
174
|
$
|
305
|
$
|
221
|
|
(a)
|
Long-term debt obligations (including current portion) include principal repayments of short-term and long-term debt for the respective period(s) described (see Note 7 to the Consolidated Financial Statements for principal repayments for each of the next five years). Short-term debt includes amounts borrowed under revolving credit facilities and have been reflected as payments due in 2012.
|
|
(b)
|
Estimated cash paid for interest on debt is determined based on (1) the stated interest rate for fixed debt and (2) the rate in effect on December 31, 2011 for variable rate debt. Because the Company’s variable rate date may be rolled over, actual interest may be greater or less than the amounts indicated.
|
|
(c)
|
Purchase obligations include only non-cancellable contractual obligations for the purchases of goods and services. Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure and approximate timing of the transaction. Any amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities are excluded from the table above.
|
|
(d)
|
Post-retirement obligations include expected payments to medical service providers in connection with providing benefits to the Company’s employees and retirees. The $18 million noted in the column labeled “Thereafter” comprises estimated benefit payments for 2017 through 2021. Post-retirement obligations are described further in Note 10 to the Consolidated Financial Statements. The obligation for pensions reflected on the Company’s consolidated balance sheet is excluded from the table above because the Company is unable to reliably estimate the timing and amount of contributions.
|
|
(e)
|
Non-qualified benefit obligations include estimated payments to executives and directors under the Company’s four non-qualified plans. The $2 million noted in the column labeled “Thereafter” comprises estimated benefit payments for 2017 through 2021. Additional information about the Company’s non-qualified plans is included in Note 10 to the Consolidated Financial Statements.
|
|
(f)
|
Operating lease obligations include principally land, office and terminal facilities, containers and equipment under non-cancelable, long-term lease arrangements that do not transfer the rights and risks of ownership to the Company. These amounts are further described in Note 8 to the Consolidated Financial Statements.
|
Expected Fiscal Year of Repayment as of December 31, 2011 (dollars in millions)
|
||||||||||||||||||||||
Fair Value at
|
||||||||||||||||||||||
December 31,
|
||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
Thereafter
|
Total
|
2011
|
|||||||||||||||
Fixed rate
|
$
|
40
|
$
|
45
|
$
|
54
|
$
|
45
|
$
|
45
|
$
|
157
|
$
|
386
|
414
|
|||||||
Average interest rate
|
5.76
|
%
|
5.78
|
%
|
5.80
|
%
|
5.85
|
%
|
5.89
|
%
|
4.11
|
%
|
5.76
|
%
|
||||||||
Variable rate
|
$
|
12
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
161
|
$
|
--
|
$
|
173
|
173
|
|||||||
Average interest rate*
|
1.29
|
%
|
--
|
--
|
--
|
1.29
|
%
|
--
|
4.37
|
%
|
Page
|
||||
Management’s Annual Report on Internal Control Over Financial Reporting
|
62
|
|||
Report of Independent Registered Public Accounting Firm
|
63
|
|||
Consolidated Statements of Income
|
64
|
|||
Consolidated Statements of Cash Flows
|
65
|
|||
Consolidated Balance Sheets
|
66
|
|||
Consolidated Statements of Shareholders’ Equity
|
67
|
|||
Notes to Consolidated Financial Statements
|
68
|
|||
1.
|
Summary of Significant Accounting Policies
|
68
|
||
2.
|
Discontinued Operations
|
77
|
||
3.
|
Exit Activities
|
77
|
||
4.
|
Investments in Affiliates
|
78
|
||
5.
|
Property
|
80
|
||
6.
|
Capital Construction Fund
|
80
|
||
7.
|
Notes Payable and Long-Term Debt
|
81
|
||
8.
|
Leases – The Company as Lessee
|
82
|
||
9
|
Leases – The Company as Lessor
|
83
|
||
10.
|
Employee Benefit Plans
|
84
|
||
11.
|
Income Taxes
|
92
|
||
12.
|
Share-Based Awards
|
94
|
||
13.
|
Commitments, Guarantees and Contingencies
|
97
|
||
14.
|
Industry Segments
|
101
|
||
15.
|
Quarterly Information (Unaudited)
|
104
|
||
16.
|
Parent Company Condensed Financial Information
|
106
|
||
17.
|
Subsequent Events
|
110
|
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the company;
|
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
|
Stanley M. Kuriyama
|
Joel M. Wine
|
President and Chief Executive Officer
|
Senior Vice President, Chief Financial Officer and Treasurer
|
February 28, 2012
|
February 28, 2012
|
Year Ended December 31,
|
||||||||||
2011
|
2010
|
2009
|
||||||||
Operating Revenue:
|
||||||||||
Ocean transportation
|
$
|
1,074
|
$
|
1,012
|
$
|
887
|
||||
Logistics services
|
386
|
355
|
321
|
|||||||
Real estate leasing
|
93
|
81
|
71
|
|||||||
Real estate sales
|
14
|
14
|
16
|
|||||||
Agribusiness
|
155
|
152
|
97
|
|||||||
Total operating revenue
|
1,722
|
1,614
|
1,392
|
|||||||
Operating Costs and Expenses:
|
||||||||||
Cost of ocean transportation services
|
908
|
806
|
740
|
|||||||
Cost of logistics services
|
348
|
314
|
280
|
|||||||
Cost of real estate sales and leasing
|
67
|
60
|
54
|
|||||||
Cost of agribusiness goods and services
|
131
|
150
|
130
|
|||||||
Selling, general and administrative
|
154
|
158
|
154
|
|||||||
Total operating costs and expenses
|
1,608
|
1,488
|
1,358
|
|||||||
Operating Income
|
114
|
126
|
34
|
|||||||
Other Income and (Expense):
|
||||||||||
Gain on insurance settlement
|
--
|
2
|
--
|
|||||||
Agriculture disaster relief payment
|
--
|
5
|
--
|
|||||||
Gain on consolidation of HS&TC
|
--
|
--
|
5
|
|||||||
Income (loss) related to real estate joint ventures
|
(2
|
)
|
5
|
(2
|
)
|
|||||
Interest income
|
--
|
2
|
--
|
|||||||
Interest expense
|
(25
|
)
|
(26
|
)
|
(25
|
)
|
||||
Income From Continuing Operations Before Income Taxes
|
87
|
114
|
12
|
|||||||
Income taxes
|
32
|
45
|
5
|
|||||||
Income From Continuing Operations
|
55
|
69
|
7
|
|||||||
Income from discontinued operations, net of income taxes (Note 2)
|
(21
|
)
|
23
|
37
|
||||||
Net Income
|
$
|
34
|
$
|
92
|
$
|
44
|
||||
Basic Earnings per Share of Common Stock:
|
||||||||||
Continuing operations
|
$
|
1.32
|
$
|
1.68
|
$
|
0.19
|
||||
Discontinued operations
|
(0.50
|
)
|
0.55
|
0.89
|
||||||
Net income
|
$
|
0.82
|
$
|
2.23
|
$
|
1.08
|
||||
Diluted Earnings per Share of Common Stock:
|
||||||||||
Continuing operations
|
$
|
1.31
|
$
|
1.67
|
$
|
0.19
|
||||
Discontinued operations
|
(0.50
|
)
|
0.55
|
0.89
|
||||||
Net income
|
$
|
0.81
|
$
|
2.22
|
$
|
1.08
|
||||
Weighted Average Number of Shares Outstanding:
|
||||||||||
Basic
|
41.6
|
41.2
|
41.0
|
|||||||
Diluted
|
42.0
|
41.5
|
41.1
|
Year Ended December 31,
|
||||||||||
2011
|
2010
|
2009
|
||||||||
Cash Flows from Operating Activities:
|
||||||||||
Net income
|
$
|
34
|
$
|
92
|
$
|
44
|
||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||||
Depreciation and amortization
|
109
|
107
|
105
|
|||||||
Deferred income taxes
|
(5
|
)
|
5
|
1
|
||||||
Gains on asset transactions, net of impairment losses
|
(34
|
)
|
(51
|
)
|
(51
|
)
|
||||
Gain from receipt of insurance proceeds
|
--
|
(1
|
)
|
--
|
||||||
Gain on consolidation of HS&TC
|
--
|
--
|
(5
|
)
|
||||||
Share-based expense
|
8
|
8
|
9
|
|||||||
Equity in (income) loss of affiliates, net of distributions
|
5
|
(8
|
)
|
(1
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||||
Accounts and notes receivable
|
(13
|
)
|
8
|
(16
|
)
|
|||||
Inventories
|
(6
|
)
|
6
|
(6
|
)
|
|||||
Prepaid expenses and other assets
|
(4
|
)
|
(18
|
)
|
(5
|
)
|
||||
Deferred dry-docking costs
|
(13
|
)
|
9
|
10
|
||||||
Liability for employee benefit plans
|
11
|
15
|
--
|
|||||||
Accounts and income taxes payable
|
14
|
9
|
20
|
|||||||
Other liabilities
|
(12
|
)
|
(15
|
)
|
11
|
|||||
Real estate developments held for sale:
|
||||||||||
Real estate inventory sales
|
6
|
6
|
5
|
|||||||
Expenditures for real estate inventory
|
(14
|
)
|
(22
|
)
|
(6
|
)
|
||||
Net cash provided by operations
|
86
|
150
|
115
|
|||||||
Cash Flows from Investing Activities:
|
||||||||||
Capital expenditures for property and developments
|
(67
|
)
|
(95
|
)
|
(31
|
)
|
||||
Proceeds from disposal of income-producing property, investments and other assets
|
16
|
34
|
32
|
|||||||
Deposits into Capital Construction Fund
|
(4
|
)
|
(4
|
)
|
(4
|
)
|
||||
Withdrawals from Capital Construction Fund
|
4
|
4
|
4
|
|||||||
Acquisition of businesses, net of cash acquired
|
--
|
--
|
10
|
|||||||
Payments for purchases of investments
|
(28
|
)
|
(102
|
)
|
(48
|
)
|
||||
Proceeds from investments
|
8
|
13
|
6
|
|||||||
Net cash used in investing activities
|
(71
|
)
|
(150
|
)
|
(31
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||||
Proceeds from issuance of debt
|
256
|
245
|
241
|
|||||||
Payments of debt and deferred financing costs
|
(215
|
)
|
(198
|
)
|
(288
|
)
|
||||
Proceeds from (payments on) line-of-credit agreement, net
|
(5
|
)
|
(4
|
)
|
13
|
|||||
Proceeds from issuance of capital stock and other
|
10
|
7
|
(1
|
)
|
||||||
Dividends paid
|
(53
|
)
|
(52
|
)
|
(52
|
)
|
||||
Net cash used in financing activities
|
(7
|
)
|
(2
|
)
|
(87
|
)
|
||||
Cash and Cash Equivalents:
|
||||||||||
Net increase (decrease) for the year
|
8
|
(2
|
)
|
(3
|
)
|
|||||
Balance, beginning of year
|
14
|
16
|
19
|
|||||||
Balance, end of year
|
$
|
22
|
$
|
14
|
$
|
16
|
||||
Other Cash Flow Information:
|
||||||||||
Interest paid, net of amounts capitalized
|
$
|
(24
|
)
|
$
|
(25
|
)
|
$
|
(24
|
)
|
|
Income taxes paid
|
$
|
(25
|
)
|
$
|
(46
|
)
|
$
|
(38
|
)
|
|
Non-cash Activities:
|
||||||||||
Debt assumed in real estate purchase
|
$
|
--
|
$
|
8
|
$
|
--
|
||||
Real estate received in settlement of a mortgage note
|
$
|
--
|
$
|
8
|
$
|
--
|
||||
Capital expenditures included in accounts payable and accrued expenses
|
$
|
11
|
$
|
7
|
$
|
5
|
||||
Tax-deferred property sales
|
$
|
45
|
$
|
120
|
$
|
109
|
||||
Tax-deferred property purchases
|
$
|
(39
|
)
|
$
|
(148
|
)
|
$
|
(95
|
)
|
Accumulated
|
|||||||||||||||||||||||||||||
Capital Stock
|
Other
|
||||||||||||||||||||||||||||
Issued
|
In Treasury
|
Compre-
|
|||||||||||||||||||||||||||
Stated
|
Additional
|
hensive
|
Retained
|
||||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Cost
|
Capital
|
Loss
|
Earnings
|
Total
|
||||||||||||||||||||||
Balance, December 31, 2008
|
44.6
|
$
|
33
|
3.6
|
$
|
(11
|
)
|
$
|
204
|
$
|
(96
|
)
|
$
|
942
|
$
|
1,072
|
|||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
44
|
44
|
|||||||||||||||||||||
Other comprehensive income, net of tax*:
|
|||||||||||||||||||||||||||||
Defined benefit plans:
|
|||||||||||||||||||||||||||||
Net gain/prior service (cost)
|
—
|
—
|
—
|
—
|
—
|
7
|
—
|
7
|
|||||||||||||||||||||
Less: Amortization of net loss/prior service cost
|
—
|
—
|
—
|
—
|
—
|
8
|
—
|
8
|
|||||||||||||||||||||
Total comprehensive income
|
59
|
||||||||||||||||||||||||||||
Excess tax benefit and share withholding
|
—
|
—
|
—
|
—
|
(3
|
)
|
—
|
—
|
(3
|
)
|
|||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
9
|
—
|
—
|
9
|
|||||||||||||||||||||
Dividends ($1.26 per share)
|
—
|
—
|
—
|
—
|
—
|
—
|
(52
|
)
|
(52
|
)
|
|||||||||||||||||||
Balance, December 31, 2009
|
44.6
|
33
|
3.6
|
$
|
(11
|
)
|
210
|
(81
|
)
|
934
|
1,085
|
||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
92
|
92
|
|||||||||||||||||||||
Other comprehensive income, net of tax*:
|
|||||||||||||||||||||||||||||
Defined benefit plans:
|
|||||||||||||||||||||||||||||
Net gain/prior service (cost)
|
—
|
—
|
—
|
—
|
—
|
(13
|
)
|
—
|
(13
|
)
|
|||||||||||||||||||
Less: Amortization of net loss/prior service cost
|
—
|
—
|
—
|
—
|
—
|
12
|
—
|
12
|
|||||||||||||||||||||
Total comprehensive income
|
91
|
||||||||||||||||||||||||||||
Excess tax benefit and share withholding
|
—
|
—
|
—
|
—
|
(1
|
)
|
—
|
(2
|
)
|
(3
|
)
|
||||||||||||||||||
Shares issued
|
0.3
|
1
|
—
|
—
|
6
|
—
|
—
|
7
|
|||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
8
|
—
|
—
|
8
|
|||||||||||||||||||||
Dividends ($1.26 per share)
|
—
|
—
|
—
|
—
|
—
|
—
|
(52
|
)
|
(52
|
)
|
|||||||||||||||||||
Balance, December 31, 2010
|
44.9
|
34
|
3.6
|
(11
|
)
|
223
|
(82
|
)
|
972
|
1,136
|
|||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
34
|
34
|
|||||||||||||||||||||
Other comprehensive income, net of tax*:
|
|||||||||||||||||||||||||||||
Defined benefit plans:
|
|||||||||||||||||||||||||||||
Net gain/prior service (cost)
|
—
|
—
|
—
|
—
|
—
|
(17
|
)
|
—
|
(17
|
)
|
|||||||||||||||||||
Less: Amortization of net loss/prior service cost
|
—
|
—
|
—
|
—
|
—
|
7
|
—
|
7
|
|||||||||||||||||||||
Total comprehensive income
|
24
|
||||||||||||||||||||||||||||
Excess tax benefit and share withholding
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Shares issued
|
0.4
|
—
|
—
|
—
|
8
|
—
|
—
|
8
|
|||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
8
|
—
|
—
|
8
|
|||||||||||||||||||||
Dividends ($1.26 per share)
|
—
|
—
|
—
|
—
|
—
|
—
|
(53
|
)
|
(53
|
)
|
|||||||||||||||||||
Balance, December 31, 2011
|
45.3
|
$
|
34
|
3.6
|
$
|
(11
|
)
|
$
|
239
|
$
|
(92
|
)
|
$
|
953
|
$
|
1,123
|
·
|
A Hawaii-based land company with interests in real estate development, commercial real estate and agriculture (composed of the Real Estate and Agribusiness segments described above), which will retain the Alexander & Baldwin, Inc. name; and
|
·
|
An ocean transportation company serving the U.S. West Coast, Hawaii, Guam, Micronesia and China, and a domestic logistics company under the Matson name (composed of the businesses in the Transportation segment described above).
|
Balance at
Beginning of year
|
Expense
|
Write-offs
and
Other
|
Balance at
End of Year
|
|
2011
|
$8
|
$--
|
$(1)
|
$7
|
2010
|
$10
|
--
|
$(2)
|
$8
|
2009
|
$8
|
$3
|
$(1)
|
$10
|
2011
|
2010
|
||||||||
Sugar inventories
|
$
|
16
|
$
|
16
|
|||||
Materials and supplies inventories
|
24
|
19
|
|||||||
Total
|
$
|
40
|
$
|
35
|
Classification
|
Range of Life (in years)
|
Vessels
|
10 to 40
|
Buildings
|
10 to 40
|
Water, power and sewer systems
|
5 to 50
|
Machinery and equipment
|
2 to 35
|
Other property improvements
|
3 to 35
|
Goodwill
|
||||
Balance, December 31, 2009
|
$
|
27
|
||
Additions
|
--
|
|||
Balance, December 31, 2010
|
27
|
|||
Additions
|
--
|
|||
Balance, December 31, 2011
|
$
|
27
|
2011
|
2010
|
|||||||||||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
|||||||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||||||||||
Amortized intangible assets:
|
||||||||||||||||||||||||
Customer lists
|
$
|
12
|
$
|
(6
|
)
|
$
|
12
|
$
|
(5
|
)
|
||||||||||||||
In-place leases
|
15
|
(9
|
)
|
15
|
(7
|
)
|
||||||||||||||||||
Other
|
11
|
(8
|
)
|
11
|
(5
|
)
|
||||||||||||||||||
Total assets
|
$
|
38
|
$
|
(23
|
)
|
$
|
38
|
$
|
(17
|
)
|
Estimated
Amortization
|
||
2012
|
$
|
3
|
2013
|
3
|
|
2014
|
2
|
|
2015
|
2
|
|
2016
|
1
|
2011
|
2010
|
2009
|
|||||
Denominator for basic EPS: weighted average shares outstanding
|
41.6
|
41.2
|
41.0
|
||||
Effect of dilutive securities:
|
|||||||
Outstanding stock options and non-vested stock units
|
0.4
|
0.3
|
0.1
|
||||
Denominator for diluted EPS: weighted average shares outstanding
|
42.0
|
41.5
|
41.1
|
2011
|
2010
|
2009
|
||||||||||
Unrealized components of benefit plans:
|
||||||||||||
Pension plans
|
$
|
(90
|
)
|
$
|
(73
|
)
|
$
|
(73
|
)
|
|||
Postretirement plans
|
1
|
(4
|
)
|
--
|
||||||||
Non-qualified benefit plans
|
(1
|
)
|
(4
|
)
|
(6
|
)
|
||||||
SSAT pension plan and other
|
(2
|
)
|
(1
|
)
|
(2
|
)
|
||||||
Accumulated other comprehensive loss
|
$
|
(92
|
)
|
$
|
(82
|
)
|
$
|
(81
|
)
|
2011
|
2010
|
2009
|
||||||||||
Real Estate Sales Revenue (Real Estate Sales Segment)*
|
$
|
46
|
$
|
117
|
$
|
110
|
||||||
Real Estate Leasing Revenue (Real Estate Leasing Segment)
|
2
|
10
|
27
|
|||||||||
CLX2 Revenue (Transportation segment)
|
93
|
28
|
--
|
|||||||||
Real Estate Sales Operating Profit*
|
$
|
23
|
$
|
49
|
$
|
44
|
||||||
Real Estate Leasing Operating Profit
|
1
|
6
|
15
|
|||||||||
CLX2 Operating Loss
|
(57
|
)
|
(19
|
)
|
--
|
|||||||
Total Operating Profit (Loss) Before Taxes
|
(33
|
)
|
36
|
59
|
||||||||
Income Tax Expense (Benefit)
|
(12
|
)
|
13
|
22
|
||||||||
Income (Loss) from Discontinued Operations
|
$
|
(21
|
)
|
$
|
23
|
$
|
37
|
|||||
Basic Earnings Per Share
|
$
|
(0.50
|
)
|
$
|
0.55
|
$
|
0.89
|
|||||
Diluted Earnings Per Share
|
$
|
(0.50
|
)
|
$
|
0.55
|
$
|
0.89
|
|
*
|
Represents the sales proceeds and the gain on sale of income producing properties that are classified as discontinued operations.
|
Container and Charter Liabilities
|
Other Contractual Liabilities
|
Total
|
||||||||||
Balance at June 30, 2011
|
$
|
--
|
$
|
--
|
$
|
--
|
||||||
Expenses incurred
|
11.8
|
0.7
|
12.5
|
|||||||||
Amounts paid
|
(7.0
|
)
|
(0.6
|
)
|
(7.5
|
)
|
||||||
Balance at December 31, 2011
|
$
|
4.8
|
$
|
0.1
|
$
|
5.0
|
2011
|
2010
|
|||||||
Investment in Unconsolidated Affiliated Companies:
|
||||||||
Real Estate and Other
|
$
|
291
|
$
|
276
|
||||
Transportation
|
56
|
53
|
||||||
Total Investments
|
$
|
347
|
$
|
329
|
2011
|
2010
|
|||||||||||||||||||||||
Real Estate
|
Transportation
|
Real Estate
|
Transportation
|
|||||||||||||||||||||
Current assets
|
$
|
21
|
$
|
90
|
$
|
42
|
$
|
88
|
||||||||||||||||
Noncurrent assets
|
612
|
119
|
623
|
111
|
||||||||||||||||||||
Total assets
|
$
|
633
|
$
|
209
|
$
|
665
|
$
|
199
|
||||||||||||||||
|
||||||||||||||||||||||||
Current liabilities
|
$
|
17
|
$
|
42
|
$
|
15
|
$
|
39
|
||||||||||||||||
Noncurrent liabilities
|
112
|
17
|
164
|
22
|
||||||||||||||||||||
Total liabilities
|
$
|
129
|
$
|
59
|
$
|
179
|
$
|
61
|
Year Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Real Estate:
|
||||||||||||
Operating revenue
|
$
|
20
|
$
|
30
|
$
|
14
|
||||||
Operating costs and expenses
|
32
|
23
|
9
|
|||||||||
Operating (loss) income
|
$
|
(12
|
)
|
$
|
7
|
$
|
5
|
|||||
Income (loss) from continuing operations
|
$
|
(15
|
)
|
$
|
7
|
$
|
1
|
|||||
Net income (loss)
|
$
|
(15
|
)
|
$
|
7
|
$
|
1
|
|||||
Transportation:
|
||||||||||||
Operating revenue
|
$
|
579
|
$
|
568
|
$
|
476
|
||||||
Operating costs and expenses
|
572
|
548
|
470
|
|||||||||
Operating income
|
$
|
7
|
$
|
20
|
$
|
6
|
||||||
Income from continuing operations*
|
$
|
26
|
$
|
36
|
$
|
20
|
||||||
Net income
|
$
|
26
|
$
|
36
|
$
|
20
|
|
As of December 31, 2011
|
|||||||||||
($ in millions)
|
|
Cost
|
|
Accumulated
Depreciation
|
Net Book
Value
|
|||||||
Vessels
|
|
$
|
1,232
|
|
|
$
|
(641
|
)
|
$
|
591
|
|
|
Machinery and equipment
|
|
675
|
|
|
(444
|
)
|
231
|
|
||||
Buildings
|
|
564
|
|
|
(95
|
)
|
469
|
|
||||
Land
|
|
248
|
|
|
-
|
248
|
|
|||||
Water, power and sewer systems
|
|
121
|
|
|
(87
|
)
|
34
|
|
||||
Other property improvements
|
|
122
|
|
|
(61
|
)
|
61
|
|
||||
Total
|
|
$
|
2,962
|
|
|
$
|
(1,328
|
)
|
$
|
1,634
|
|
|
As of December 31, 2010
|
|||||||||||
($ in millions)
|
|
Cost
|
|
Accumulated
Depreciation
|
Net Book
Value
|
|||||||
Vessels
|
|
$
|
1,220
|
|
|
$
|
(600
|
)
|
$
|
620
|
|
|
Machinery and equipment
|
|
661
|
|
|
(425
|
)
|
236
|
|
||||
Buildings
|
|
557
|
|
|
(86
|
)
|
471
|
|
||||
Land
|
|
236
|
|
|
-
|
236
|
|
|||||
Water, power and sewer systems
|
|
119
|
|
|
(84
|
)
|
35
|
|
||||
Other property improvements
|
|
108
|
|
|
(55
|
)
|
53
|
|
||||
Total
|
|
$
|
2,901
|
|
|
$
|
(1,250
|
)
|
$
|
1,651
|
|
2011
|
2010
|
|||||||
Revolving Credit loans, (1.29% for 2011 and 0.64% for 2010)
|
$
|
173
|
$
|
108
|
||||
Title XI Bonds:
|
||||||||
5.27%, payable through 2029, secured by
MV Maunawili
|
40
|
42
|
||||||
5.34%, payable through 2028, secured by
MV Manukai
|
37
|
40
|
||||||
Term Loans:
|
||||||||
6.90%, payable through 2020
|
100
|
100
|
||||||
4.79%, payable through 2020, secured by
MV Manulani
|
60
|
66
|
||||||
5.55%, payable through 2017
|
50
|
50
|
||||||
5.53%, payable through 2016
|
42
|
50
|
||||||
5.56%, payable through 2016
|
25
|
25
|
||||||
4.10%, payable through 2012
|
4
|
12
|
||||||
6.20%, payable through 2013, secured by Deere Valley Center
|
10
|
11
|
||||||
6.38%, payable through 2017, secured by Midstate 99 Distribution Ctr.
|
8
|
8
|
||||||
5.50%, payable through 2014, secured by Little Cottonwood Center
|
6
|
6
|
||||||
5.88%, payable through 2014, secured by Midstate 99 Distribution Ctr.
|
3
|
3
|
||||||
0.00%, payable through 2012
|
1
|
1
|
||||||
Total debt
|
559
|
522
|
||||||
Less current portion
|
(52
|
)
|
(136
|
)
|
||||
Long-term debt
|
$
|
507
|
$
|
386
|
Operating
Leases
|
||||
2012
|
$
|
26
|
||
2013
|
17
|
|||
2014
|
15
|
|||
2015
|
11
|
|||
2016
|
6
|
|||
Thereafter
|
16
|
|||
Total minimum lease payments
|
$
|
91
|
2011
|
2010
|
|||||||
Leased property - real estate
|
$
|
844
|
$
|
820
|
||||
Less accumulated depreciation
|
(114
|
)
|
(103
|
)
|
||||
Property under operating leases - net
|
$
|
730
|
$
|
717
|
2011
|
2010
|
2009
|
||||||||||
Minimum rentals
|
$
|
74
|
$
|
70
|
$
|
78
|
||||||
Contingent rentals (based on sales volume)
|
2
|
2
|
3
|
|||||||||
Total
|
$
|
76
|
$
|
72
|
$
|
81
|
Operating
Leases
|
||||
2012
|
$
|
69
|
||
2013
|
60
|
|||
2014
|
50
|
|||
2015
|
41
|
|||
2016
|
28
|
|||
Thereafter
|
110
|
|||
Total
|
$
|
358
|
Target
|
2011
|
2010
|
|||||||
Domestic equity securities
|
53
|
%
|
59
|
%
|
62
|
%
|
|||
International equity securities
|
15
|
%
|
14
|
%
|
11
|
%
|
|||
Debt securities
|
22
|
%
|
17
|
%
|
16
|
%
|
|||
Real estate
|
10
|
%
|
6
|
%
|
4
|
%
|
|||
Other and cash
|
-
|
-
|
4
|
%
|
7
|
%
|
|||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
Fair Value Measurements as of
|
|||||||||||||||
December 31, 2011
|
|||||||||||||||
Total
|
Quoted Prices in Active Markets (Level 1)
|
Significant Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
||||||||||||
Asset Category
|
|||||||||||||||
Cash
|
$
|
10
|
$
|
10
|
$
|
--
|
$
|
--
|
|||||||
Equity securities:
|
|||||||||||||||
U.S. large-cap
|
102
|
102
|
--
|
--
|
|||||||||||
U.S. mid- and small-cap
|
32
|
32
|
--
|
--
|
|||||||||||
International large-cap
|
28
|
28
|
--
|
--
|
|||||||||||
International mid-cap
|
23
|
23
|
--
|
--
|
|||||||||||
Fixed income securities:
|
|||||||||||||||
U.S. Treasuries
|
1
|
--
|
1
|
--
|
|||||||||||
Investment grade U.S. corporate bonds
|
3
|
--
|
3
|
--
|
|||||||||||
High-yield U.S. corporate bonds
|
10
|
--
|
10
|
--
|
|||||||||||
Mortgage-backed securities
|
31
|
--
|
31
|
--
|
|||||||||||
Other types of investments:
|
|||||||||||||||
Real estate partnerships interests
|
14
|
--
|
--
|
14
|
|||||||||||
Private equity partnership interests (a)
|
2
|
--
|
--
|
2
|
|||||||||||
Insurance contracts
|
1
|
--
|
--
|
1
|
|||||||||||
Total
|
$
|
257
|
$
|
195
|
$
|
45
|
$
|
17
|
Fair Value Measurements as of
|
|||||||||||||||
December 31, 2010
|
|||||||||||||||
Total
|
Quoted Prices in Active Markets (Level 1)
|
Significant Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
||||||||||||
Asset Category
|
|||||||||||||||
Cash
|
$
|
17
|
$
|
17
|
$
|
--
|
$
|
--
|
|||||||
Equity securities:
|
|||||||||||||||
U.S. large-cap
|
136
|
136
|
--
|
--
|
|||||||||||
U.S. mid- and small-cap
|
40
|
40
|
--
|
--
|
|||||||||||
International large-cap
|
31
|
31
|
--
|
--
|
|||||||||||
Fixed income securities:
|
|||||||||||||||
U.S. Treasuries
|
1
|
--
|
1
|
--
|
|||||||||||
Investment grade U.S. corporate bonds
|
3
|
--
|
3
|
--
|
|||||||||||
High-yield U.S. corporate bonds
|
8
|
--
|
8
|
--
|
|||||||||||
Mortgage-backed securities
|
33
|
--
|
33
|
--
|
|||||||||||
Other types of investments:
|
|||||||||||||||
Real estate partnerships interests
|
13
|
--
|
--
|
13
|
|||||||||||
Private equity partnership interests (a)
|
2
|
--
|
--
|
2
|
|||||||||||
Insurance contracts
|
1
|
--
|
--
|
1
|
|||||||||||
Total
|
$
|
285
|
$
|
224
|
$
|
45
|
$
|
16
|
(a)
|
This category represents private equity funds that invest principally in U.S. technology companies.
|
Fair Value Measurements Using Significant
|
|||||||||||||||
Unobservable Inputs (Level 3)
|
|||||||||||||||
Real
Estate
|
Private Equity
|
Insurance
|
Total
|
||||||||||||
Beginning balance, January 1, 2010
|
$
|
23
|
$
|
3
|
$
|
1
|
$
|
27
|
|||||||
Actual return on plan assets:
|
|||||||||||||||
Assets held at the reporting date
|
3
|
--
|
--
|
3
|
|||||||||||
Assets sold during the period
|
(1
|
)
|
--
|
--
|
(1
|
)
|
|||||||||
Purchases, sales and settlements
|
(12
|
)
|
(1
|
)
|
--
|
(13
|
)
|
||||||||
Ending balance, December 31, 2010
|
13
|
2
|
1
|
16
|
|||||||||||
Actual return on plan assets:
|
|||||||||||||||
Assets held at the reporting date
|
2
|
--
|
--
|
2
|
|||||||||||
Assets sold during the period
|
--
|
--
|
--
|
--
|
|||||||||||
Purchases, sales and settlements
|
(1
|
)
|
--
|
--
|
(1
|
)
|
|||||||||
Ending balance, December 31, 2011
|
$
|
14
|
$
|
2
|
1
|
$
|
17
|
Pension Benefits
|
Other Post-retirement Benefits
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Change in Benefit Obligation
|
||||||||||||||||
Benefit obligation at beginning of year
|
$
|
355
|
$
|
322
|
$
|
65
|
$
|
54
|
||||||||
Service cost
|
9
|
8
|
1
|
1
|
||||||||||||
Interest cost
|
20
|
19
|
4
|
3
|
||||||||||||
Plan participants’ contributions
|
--
|
--
|
2
|
3
|
||||||||||||
Actuarial (gain) loss
|
36
|
24
|
(6
|
)
|
10
|
|||||||||||
Benefits paid
|
(18
|
)
|
(18
|
)
|
(6
|
)
|
(6
|
)
|
||||||||
Amendments
|
(36
|
)
|
--
|
--
|
--
|
|||||||||||
Benefit obligation at end of year
|
$
|
366
|
$
|
355
|
$
|
60
|
$
|
65
|
||||||||
Change in Plan Assets
|
||||||||||||||||
Fair value of plan assets at beginning of year
|
285
|
260
|
--
|
--
|
||||||||||||
Actual return on plan assets
|
(15
|
)
|
37
|
--
|
--
|
|||||||||||
Employer contributions
|
5
|
6
|
--
|
--
|
||||||||||||
Benefits paid
|
(18
|
)
|
(18
|
)
|
--
|
--
|
||||||||||
Fair value of plan assets at end of year
|
$
|
257
|
$
|
285
|
$
|
--
|
$
|
--
|
||||||||
Funded Status and Recognized Liability
|
$
|
(109
|
)
|
$
|
(70
|
)
|
$
|
(60
|
)
|
$
|
(65
|
)
|
Pension Benefits
|
Other Post-retirement Benefits
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Non-current assets
|
$
|
1
|
$
|
3
|
$
|
--
|
$
|
--
|
||||||||
Current liabilities
|
--
|
--
|
(3
|
)
|
(4
|
)
|
||||||||||
Non-current liabilities
|
(110
|
)
|
(73
|
)
|
(57
|
)
|
(61
|
)
|
||||||||
Total
|
$
|
(109
|
)
|
$
|
(70
|
)
|
$
|
(60
|
)
|
$
|
(65
|
)
|
||||
Net loss (net of taxes)
|
$
|
110
|
$
|
70
|
$
|
(1
|
)
|
$
|
6
|
|||||||
Unrecognized prior service (credit) cost (net of taxes)
|
(20
|
)
|
3
|
--
|
--
|
|||||||||||
Total
|
$
|
90
|
$
|
73
|
$
|
(1
|
)
|
$
|
6
|
2011
|
2010
|
|||||||
Projected benefit obligation
|
$
|
358
|
$
|
349
|
||||
Accumulated benefit obligation
|
$
|
355
|
$
|
319
|
||||
Fair value of plan assets
|
$
|
248
|
$
|
275
|
Pension Benefits
|
Other Post-retirement Benefits
|
||||||||||||||||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
||||||||||||||||||
Components of Net Periodic Benefit Cost
|
|||||||||||||||||||||||
Service cost
|
$
|
9
|
$
|
8
|
$
|
8
|
$
|
1
|
$
|
1
|
$
|
1
|
|||||||||||
Interest cost
|
20
|
19
|
19
|
4
|
3
|
3
|
|||||||||||||||||
Expected return on plan assets
|
(23
|
)
|
(21
|
)
|
(20
|
)
|
--
|
--
|
--
|
||||||||||||||
Amortization of net loss
|
9
|
8
|
12
|
2
|
--
|
--
|
|||||||||||||||||
Amortization of prior service cost
|
1
|
1
|
1
|
--
|
--
|
--
|
|||||||||||||||||
Net periodic benefit cost
|
16
|
15
|
20
|
7
|
4
|
4
|
|||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
|
|||||||||||||||||||||||
Net loss (gain)
|
45
|
5
|
(10
|
)
|
(4
|
)
|
6
|
1
|
|||||||||||||||
Amortization of unrecognized (loss) gain
|
(5
|
)
|
(5
|
)
|
(7
|
)
|
(1
|
)
|
(2
|
)
|
--
|
||||||||||||
Prior service (credit) cost
|
(22
|
)
|
--
|
1
|
--
|
--
|
--
|
||||||||||||||||
Amortization of prior service cost
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
--
|
--
|
--
|
||||||||||||||
Total recognized in other comprehensive income
|
17
|
(1
|
)
|
(17
|
)
|
(5
|
)
|
4
|
1
|
||||||||||||||
Total recognized in net periodic benefit cost and
|
|||||||||||||||||||||||
other comprehensive income
|
$
|
33
|
$
|
14
|
$
|
3
|
$
|
2
|
$
|
8
|
$
|
5
|
|||||||||||
Pension Benefits
|
Other Post-retirement Benefits
|
||||||||||||||||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
||||||||||||||||||
Weighted Average Assumptions:
|
|||||||||||||||||||||||
Discount rate
|
4.80
|
%
|
5.75
|
%
|
6.25
|
%
|
4.90
|
%
|
5.75
|
%
|
6.25
|
%
|
|||||||||||
Expected return on plan assets
|
8.25
|
%
|
8.25
|
%
|
8.50
|
%
|
|||||||||||||||||
Rate of compensation increase
|
4.00
|
%
|
4.00
|
%
|
4.00
|
%
|
4.00
|
%
|
4.00
|
%
|
4.00
|
%
|
|||||||||||
Initial health care cost trend rate
|
9.00
|
%
|
10.00
|
%
|
9.00
|
%
|
|||||||||||||||||
Ultimate rate
|
5.00
|
%
|
5.00
|
%
|
5.00
|
%
|
|||||||||||||||||
Year ultimate rate is reached
|
201
|
6
|
201
|
6
|
201
|
4
|
Other Post-retirement Benefits
|
|||||||||||||||||||||||
One Percentage Point
|
|||||||||||||||||||||||
Increase
|
Decrease
|
||||||||||||||||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
||||||||||||||||||
Effect on total of service and interest cost components
|
$
|
1
|
$
|
1
|
$
|
--
|
$
|
(1
|
)
|
$
|
--
|
$
|
--
|
||||||||||
Effect on post-retirement benefit obligation
|
$
|
7
|
$
|
8
|
$
|
5
|
$
|
(6
|
)
|
$
|
(6
|
)
|
$
|
(4
|
)
|
Pension
|
Non-qualified
|
Post-retirement
|
||||||||||||||||
Year
|
Benefits
|
Plan Benefits
|
Benefits
|
|||||||||||||||
2012
|
$
|
19
|
$
|
4
|
$
|
3
|
||||||||||||
2013
|
20
|
1
|
3
|
|||||||||||||||
2014
|
21
|
1
|
3
|
|||||||||||||||
2015
|
21
|
1
|
3
|
|||||||||||||||
2016
|
22
|
5
|
4
|
|||||||||||||||
2017-2021
|
118
|
2
|
18
|
Pension Protection Act Zone Status as of December 31,
|
FIP/RP Status
|
Contributions of Matson
($ in millions)
|
Expiration Date of Collective
|
||||||||||||||||||
Pension Fund
|
EIN/Pension Plan Number
|
2011
|
2010
|
Pending/
Implemented
|
2011
|
2010
|
2009
|
Surcharge Imposed
|
Bargaining Agreement
|
||||||||||||
Hawaii Stevedoring Multiemployer Retirement Plan
|
99-0314293/001
|
Yellow
|
Yellow
|
Implemented
|
$
|
2.2
|
$
|
2.0
|
$
|
2.0
|
No
|
6/30/2014
|
|||||||||
Master, Mates and Pilots
|
13-6372630/001
|
Green
|
Red
|
None
|
3.0
|
2.9
|
2.6
|
No
|
6/15/2012-8/15/2013
|
||||||||||||
Hawaii Terminals Multiemployer Pension Plan
|
20-0389370/001
|
Yellow
|
Yellow
|
Implemented
|
5.2
|
5.2
|
5.0
|
No
|
6/30/2014
|
||||||||||||
OCU Trust Pension
|
26-1574440/001
|
Green
|
Green
|
None
|
0.1
|
0.1
|
0.1
|
No
|
6/30/2010
|
||||||||||||
Other Plans
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
10.5
|
$
|
10.2
|
$
|
9.7
|
Pension Plan
|
Year Contributions to Plan Exceeded More than 5 Percent of Total Contributions (as of December 31 of the Plan’s Year-End)
|
||
Hawaii Stevedoring Multiemployer Pension Plan
|
2011, 2010 and 2009
|
||
Hawaii Terminals Multiemployer Pension Plan
|
2011, 2010 and 2009
|
||
Masters, Mates and Pilots Pension Plan
|
2010 and 2009*
|
2011
|
2010
|
2009
|
||||||||||
Current:
|
||||||||||||
Federal
|
$
|
40
|
$
|
43
|
$
|
24
|
||||||
State and foreign
|
4
|
6
|
2
|
|||||||||
Current
|
44
|
49
|
26
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
(10
|
)
|
(3
|
)
|
(23
|
)
|
||||||
State and foreign
|
(2
|
)
|
(1
|
)
|
2
|
|||||||
Deferred
|
(12
|
)
|
(4
|
)
|
(21
|
)
|
||||||
Total continuing operations tax expense
|
$
|
32
|
$
|
45
|
$
|
5
|
2011
|
2010
|
2009
|
||||||||||
Computed federal income tax expense
|
$
|
30
|
$
|
40
|
$
|
4
|
||||||
State income taxes
|
2
|
5
|
4
|
|||||||||
Tax effect of HS&TC consolidation
|
--
|
--
|
(2
|
)
|
||||||||
Other—net
|
--
|
--
|
(1
|
)
|
||||||||
Income tax expense
|
$
|
32
|
$
|
45
|
$
|
5
|
2011
|
2010
|
|||||||
Deferred tax assets:
|
||||||||
Benefit plans
|
$
|
82
|
$
|
77
|
||||
Insurance reserves
|
10
|
10
|
||||||
Capitalized development costs
|
16
|
14
|
||||||
Other
|
10
|
6
|
||||||
Total deferred tax assets
|
118
|
107
|
||||||
Deferred tax liabilities:
|
||||||||
Basis differences for property and equipment
|
293
|
287
|
||||||
Tax-deferred gains on real estate transactions
|
213
|
216
|
||||||
Capital Construction Fund
|
3
|
3
|
||||||
Joint ventures and other investments
|
1
|
7
|
||||||
Other
|
21
|
17
|
||||||
Total deferred tax liabilities
|
531
|
530
|
||||||
Net deferred tax liability
|
$
|
413
|
$
|
423
|
Balance at January 1, 2009
|
$
|
6
|
||
Additions for tax positions of prior years
|
--
|
|||
Additions for tax positions of current year
|
3
|
|||
Reductions for tax positions of prior years
|
--
|
|||
Reductions for lapse of statute of limitations
|
(1
|
)
|
||
Balance at December 31, 2009
|
8
|
|||
Additions for tax positions of prior years
|
--
|
|||
Additions for tax positions of current year
|
2
|
|||
Reductions for tax positions of prior years
|
(1
|
)
|
||
Reductions for lapse of statute of limitations
|
(1
|
)
|
||
Balance at December 31, 2010
|
8
|
|||
Additions for tax positions of prior years
|
1
|
|||
Additions for tax positions of current year
|
(1
|
)
|
||
Reductions for tax positions of prior years
|
|
--
|
||
Reductions for lapse of statute of limitations
|
(1
|
)
|
||
Balance at December 31, 2011
|
$
|
7
|
2011
|
2010
|
2008
|
||||
Expected volatility
|
29.2%
|
28.8%
|
24.8%
|
|||
Expected term (in years)
|
6.0
|
5.8
|
5.8
|
|||
Risk-free interest rate
|
2.3%
|
2.7%
|
1.9%
|
|||
Dividend yield
|
3.1%
|
3.8%
|
5.4%
|
|
•
|
Expected volatility was primarily determined using the historical volatility of A&B common stock over the expected term, but the Company may also consider future events and other factors that it reasonably concludes marketplace participants might consider.
|
|
•
|
The expected term of the awards represents expectations of future employee exercise and post-vesting termination behavior and was primarily based on historical experience. The Company analyzed various groups of employees and considers expected or unusual trends that would likely affect this assumption.
|
|
|
•
|
The risk free interest rate was based on U.S. Government treasury yields for periods equal to the expected term of the option on the grant date.
|
|
•
|
The expected dividend yield is based on the Company’s current and historical dividend policy.
|
Weighted
|
Weighted
|
||||||||||||||
1998
|
1998
|
Average
|
Average
|
Aggregate
|
|||||||||||
2007
|
Employee
|
Director
|
Total
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||
Plan
|
Plan
|
Plan
|
Shares
|
Price
|
Life
|
Value
|
|||||||||
Outstanding January 1, 2011
|
1,332
|
1,055
|
190
|
2,577
|
$37.10
|
||||||||||
Granted
|
317
|
--
|
--
|
317
|
$40.75
|
||||||||||
Exercised
|
(86
|
)
|
(208
|
)
|
(17
|
)
|
(311
|
)
|
$29.59
|
||||||
Forfeited and expired
|
(18
|
)
|
(11
|
)
|
--
|
(29
|
)
|
$43.83
|
|||||||
Outstanding December 31, 2011
|
1,545
|
836
|
173
|
2,554
|
$38.39
|
5.4
|
$13,595
|
||||||||
Vested or expected to vest
|
1,530
|
836
|
173
|
2,539
|
$40.10
|
5.4
|
$13,459
|
||||||||
Exercisable December 31, 2011
|
805
|
836
|
173
|
1,814
|
$40.10
|
4.3
|
$8,434
|
2007
|
|||||||||||
Plan
|
Weighted
|
||||||||||
Restricted
|
Average
|
||||||||||
Stock
|
Grant-Date
|
||||||||||
Units
|
Fair Value
|
||||||||||
January 1, 2011
|
330
|
$31.15
|
|||||||||
Granted
|
259
|
$38.78
|
|||||||||
Vested
|
(175
|
)
|
$32.24
|
||||||||
Forfeited
|
(5
|
)
|
$34.85
|
||||||||
Outstanding December 31, 2011
|
409
|
$35.48
|
2011
|
2010
|
2009
|
||||||||||
Share-based expense (net of estimated forfeitures):
|
||||||||||||
Stock options
|
$
|
2
|
$
|
2
|
$
|
4
|
||||||
Non-vested stock & restricted stock units
|
6
|
6
|
5
|
|||||||||
Total share-based expense
|
8
|
8
|
9
|
|||||||||
Total recognized tax benefit
|
(2
|
)
|
(3
|
)
|
(3
|
)
|
||||||
Share-based expense (net of tax)
|
$
|
6
|
$
|
5
|
$
|
6
|
||||||
Cash received upon option exercise
|
$
|
9
|
$
|
7
|
$
|
--
|
||||||
Intrinsic value of options exercised
|
$
|
5
|
$
|
2
|
$
|
--
|
||||||
Tax benefit realized upon option exercise
|
$
|
2
|
$
|
1
|
$
|
--
|
||||||
Fair value of stock vested
|
$
|
7
|
$
|
4
|
$
|
3
|
Standby letters of credit
|
(a)
|
$
|
19
|
|
Bonds
|
(b)
|
$
|
30
|
|
Benefit plan withdrawal obligations
|
(c)
|
$
|
87
|
|
(a)
|
Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities. Approximately $8 million of the letters of credit are related to transportation matters and principally relate to self-insured workers compensation arrangements and collateral agreements with insurance companies for retentions, deductibles and premium payments. The balance includes approximately $11 million related to the Company’s real estate business. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit has been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon.
|
|
(b)
|
Consists of approximately $16 million of construction bonds related to real estate projects in Hawaii, approximately $13 million in U.S. customs bonds, and approximately $1 million related to transportation and other matters. In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon.
|
|
(c)
|
Represents the withdrawal liabilities for multiemployer pension plans, in which Matson is a participant. Management has no present intention of withdrawing from and does not anticipate termination of any of the aforementioned plans.
|
For the Year
|
2011
|
2010
|
2009
|
|||||||||
Revenue:
|
||||||||||||
Transportation:
|
||||||||||||
Ocean transportation
|
$
|
1,077.6
|
$
|
1,016.5
|
$
|
888.6
|
||||||
Logistics services
|
386.4
|
355.6
|
320.9
|
|||||||||
Real Estate:
|
||||||||||||
Leasing
|
100.1
|
94.4
|
103.2
|
|||||||||
Sales
|
66.2
|
136.1
|
125.6
|
|||||||||
Less amounts reported in discontinued operations
1
|
(47.5
|
)
|
(126.7
|
)
|
(136.6
|
)
|
||||||
Agribusiness
5
|
161.7
|
163.9
|
107.0
|
|||||||||
Reconciling Items
2
|
(22.1
|
)
|
(26.3
|
)
|
(16.3
|
)
|
||||||
Total revenue
|
$
|
1,722.4
|
$
|
1,613.5
|
$
|
1,392.4
|
||||||
Operating Profit
:
|
||||||||||||
Transportation:
|
||||||||||||
Ocean transportation
3
|
$
|
74.1
|
$
|
118.7
|
$
|
58.3
|
||||||
Logistics services
|
5.0
|
7.2
|
6.7
|
|||||||||
Real Estate:
|
||||||||||||
Leasing
|
39.3
|
35.3
|
43.2
|
|||||||||
Sales
3
|
15.5
|
50.1
|
39.1
|
|||||||||
Less amounts reported in discontinued operations
1
|
(23.8
|
)
|
(54.5
|
)
|
(59.2
|
)
|
||||||
Agribusiness
5
|
22.2
|
6.1
|
(27.8
|
)
|
||||||||
Total operating profit
|
132.3
|
162.9
|
60.3
|
|||||||||
Interest expense, net
4
|
(24.8
|
)
|
(25.5
|
)
|
(25.9
|
)
|
||||||
General corporate expenses
|
(20.3
|
)
|
(23.3
|
)
|
(21.8
|
)
|
||||||
Income from continuing operations before income taxes
|
87.2
|
114.1
|
12.6
|
|||||||||
Income taxes
|
32.3
|
44.7
|
5.0
|
|||||||||
Income from continuing operations
|
54.9
|
69.4
|
7.6
|
|||||||||
Discontinued operations
|
(20.7
|
)
|
22.7
|
36.6
|
||||||||
Net income
|
$
|
34.2
|
$
|
92.1
|
$
|
44.2
|
||||||
1
|
Prior year amounts restated for amounts treated as discontinued operations.
|
2
|
Includes inter-segment revenue, interest income, and other income classified as revenue for segment reporting purposes.
|
3
|
The Ocean Transportation segment includes approximately $8.6 million, $12.8 million, and $6.2 million of equity in earnings from its investment in SSAT for 2011, 2010, and 2009, respectively. The Real Estate Sales segment includes approximately $7.9 million equity in loss and $2.0 million in equity in earnings from its various real estate joint ventures for 2011 and 2010, respectively. Equity in earnings from joint ventures in 2009 was negligible.
|
4
|
Includes Ocean Transportation interest expense of $7.7 million, $8.2 million, and $9.0 million for 2011, 2010, and 2009, respectively. Substantially all other interest expense was at the parent company.
|
5
|
Includes a $4.9 million gain in 2010 related to an agriculture disaster relief payment for drought experienced in prior years and a $5.4 million gain recorded upon consolidation of HS&TC in 2009.
|
As of December 31:
|
2011
|
2010
|
2009
|
|||||||||
Identifiable Assets:
|
||||||||||||
Ocean transportation
6
|
$
|
1,082.6
|
$
|
1,095.5
|
$
|
1,095.2
|
||||||
Logistics services
|
76.8
|
73.8
|
72.4
|
|||||||||
Real estate leasing
|
770.9
|
739.4
|
627.4
|
|||||||||
Real estate sales
6
|
451.4
|
420.8
|
415.6
|
|||||||||
Agribusiness
|
157.8
|
150.3
|
156.8
|
|||||||||
Other
|
4.8
|
14.8
|
12.2
|
|||||||||
Total assets
|
$
|
2,544.3
|
$
|
2,494.6
|
$
|
2,379.6
|
||||||
Capital Expenditures:
|
||||||||||||
Ocean transportation
|
$
|
44.2
|
$
|
69.4
|
$
|
12.7
|
||||||
Logistics services
7
|
3.0
|
1.8
|
0.6
|
|||||||||
Real estate leasing
8
|
43.6
|
164.7
|
108.8
|
|||||||||
Real estate sales
9
|
5.2
|
0.1
|
0.1
|
|||||||||
Agribusiness
|
10.5
|
6.8
|
3.4
|
|||||||||
Other
|
--
|
0.3
|
0.3
|
|||||||||
Total capital expenditures
|
$
|
106.5
|
$
|
243.1
|
$
|
125.9
|
||||||
Depreciation and Amortization:
|
||||||||||||
Ocean transportation
|
$
|
70.6
|
$
|
69.0
|
$
|
67.1
|
||||||
Logistics services
|
3.2
|
3.2
|
3.5
|
|||||||||
Real estate leasing
1
|
21.6
|
20.3
|
19.5
|
|||||||||
Real estate sales
|
0.2
|
0.2
|
0.3
|
|||||||||
Agribusiness
|
11.9
|
12.7
|
11.9
|
|||||||||
Other
|
1.1
|
1.9
|
3.1
|
|||||||||
Total depreciation and amortization
|
$
|
108.6
|
$
|
107.3
|
$
|
105.4
|
6
|
The Ocean Transportation segment includes approximately $56.5 million, $52.9 million, and $47.2 million related to its investment in SSAT as of December 31, 2011, 2010, and 2009, respectively. The Real Estate Sales segment includes approximately $290.1 million, $274.8 million, and $193.3 million related to its investment in various real estate joint ventures as of December 31, 2011, 2010, and 2009, respectively.
|
7
|
Excludes expenditures related to Matson Logistics’ acquisitions, which are classified as acquisition of businesses in Cash Flows from Investing Activities within the Consolidated Statements of Cash Flows.
|
8
|
Represents gross capital additions to the leasing portfolio, including gross tax-deferred property purchases that are reflected as non-cash transactions in the Consolidated Statements of Cash Flows.
|
9
|
Excludes expenditures for real estate developments held for sale which are classified as Cash Flows from Operating Activities within the Consolidated Statements of Cash Flows. Operating cash flows for expenditures related to real estate developments were $14 million, $22 million, and $6 million for 2011, 2010, and 2009, respectively.
|
2011
|
||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
|||||||||||||
Revenue:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
238.4
|
$
|
274.8
|
$
|
281.8
|
$
|
282.6
|
||||||||
Logistics services
|
91.3
|
103.1
|
99.2
|
92.8
|
||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
26.0
|
25.2
|
24.5
|
24.4
|
||||||||||||
Sales
|
23.4
|
30.7
|
9.3
|
2.8
|
||||||||||||
Less amounts reported in discontinued operations
1
|
(15.2
|
)
|
(23.1
|
)
|
(8.8
|
)
|
(0.4
|
)
|
||||||||
Agribusiness
|
16.1
|
44.7
|
38.5
|
62.4
|
||||||||||||
Reconciling Items
2
|
(6.5
|
)
|
(6.9
|
)
|
(4.3
|
)
|
(4.4
|
)
|
||||||||
Total Revenue
|
$
|
373.5
|
$
|
448.5
|
$
|
440.2
|
$
|
460.2
|
||||||||
Operating Profit (Loss):
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
5.4
|
$
|
27.1
|
$
|
28.6
|
$
|
13.0
|
||||||||
Logistics services
|
1.5
|
2.1
|
2.0
|
(0.6
|
)
|
|||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
10.6
|
10.4
|
9.2
|
9.1
|
||||||||||||
Sales
|
12.0
|
10.6
|
3.5
|
(10.6
|
)
|
|||||||||||
Less amounts reported in discontinued operations
1
|
(7.2
|
)
|
(9.2
|
)
|
(7.0
|
)
|
(0.4
|
)
|
||||||||
Agribusiness
|
2.6
|
8.5
|
3.8
|
7.3
|
||||||||||||
Total operating profit
|
24.9
|
49.5
|
40.1
|
17.8
|
||||||||||||
Interest Expense
|
(6.2
|
)
|
(6.1
|
)
|
(6.3
|
)
|
(6.2
|
)
|
||||||||
General Corporate Expenses
|
(4.2
|
)
|
(4.2
|
)
|
(4.8
|
)
|
(7.1
|
)
|
||||||||
Income From Continuing Operations before Income Taxes
|
14.5
|
39.2
|
29.0
|
4.5
|
||||||||||||
Income taxes
|
5.8
|
15.1
|
10.6
|
0.8
|
||||||||||||
Income From Continuing Operations
|
8.7
|
24.1
|
18.4
|
3.7
|
||||||||||||
Discontinued Operations
1
|
(3.5
|
)
|
(5.4
|
)
|
(9.7
|
)
|
(2.1
|
)
|
||||||||
Net Income
|
$
|
5.2
|
$
|
18.7
|
$
|
8.7
|
$
|
1.6
|
||||||||
Earnings Per Share:
|
||||||||||||||||
Basic
|
$
|
0.13
|
$
|
0.45
|
$
|
0.21
|
$
|
0.04
|
||||||||
Diluted
|
$
|
0.12
|
$
|
0.44
|
$
|
0.21
|
$
|
0.04
|
1
|
See Note 2 for discussion of discontinued operations
.
|
2
|
Includes inter-segment revenue, interest income, and other income classified as revenue for segment reporting purposes.
|
2010
|
||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
|||||||||||||
Revenue:
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
229.5
|
$
|
257.2
|
$
|
261.8
|
$
|
268.0
|
||||||||
Logistics services
|
77.1
|
88.6
|
92.4
|
97.5
|
||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
23.6
|
23.2
|
24.4
|
23.2
|
||||||||||||
Sales
|
60.3
|
22.0
|
4.3
|
49.5
|
||||||||||||
Less amounts reported in discontinued operations
1
|
(58.4
|
)
|
(20.7
|
)
|
(3.3
|
)
|
(44.3
|
)
|
||||||||
Agribusiness
2
|
14.2
|
29.8
|
60.4
|
59.5
|
||||||||||||
Reconciling Items
3
|
(4.2
|
)
|
(3.6
|
)
|
(2.7
|
)
|
(15.8
|
)
|
||||||||
Total Revenue
|
$
|
342.1
|
$
|
396.5
|
$
|
437.3
|
$
|
437.6
|
||||||||
Operating Profit (Loss):
|
||||||||||||||||
Transportation:
|
||||||||||||||||
Ocean transportation
|
$
|
10.4
|
$
|
37.0
|
$
|
42.5
|
$
|
28.8
|
||||||||
Logistics services
|
1.9
|
1.5
|
1.8
|
2.0
|
||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
9.1
|
8.5
|
9.3
|
8.4
|
||||||||||||
Sales
|
21.4
|
8.0
|
2.9
|
17.8
|
||||||||||||
Less amounts reported in discontinued operations
1
|
(22.8
|
)
|
(10.6
|
)
|
(2.1
|
)
|
(19.0
|
)
|
||||||||
Agribusiness
2
|
(1.1
|
)
|
1.8
|
0.8
|
4.6
|
|||||||||||
Total operating profit
|
18.9
|
46.2
|
55.2
|
42.6
|
||||||||||||
Interest Expense
|
(6.5
|
)
|
(6.5
|
)
|
(6.3
|
)
|
(6.2
|
)
|
||||||||
General Corporate Expenses
|
(6.6
|
)
|
(4.5
|
)
|
(7.7
|
)
|
(4.5
|
)
|
||||||||
Income From Continuing Operations before Income Taxes
|
5.8
|
35.2
|
41.2
|
31.9
|
||||||||||||
Income taxes
|
3.0
|
13.1
|
15.5
|
13.1
|
||||||||||||
Income From Continuing Operations
|
2.8
|
22.1
|
25.7
|
18.8
|
||||||||||||
Discontinued Operations
1
|
14.5
|
6.8
|
--
|
1.4
|
||||||||||||
Net Income
|
$
|
17.3
|
$
|
28.9
|
$
|
25.7
|
$
|
20.2
|
||||||||
Earnings Per Share:
|
||||||||||||||||
Basic
|
$
|
0.42
|
$
|
0.70
|
$
|
0.62
|
$
|
0.49
|
||||||||
Diluted
|
$
|
0.42
|
$
|
0.70
|
$
|
0.62
|
$
|
0.48
|
1
|
See Note 2 for discussion of discontinued operations
.
|
2
|
Includes a $4.9 million gain in the fourth quarter of 2010 related to a agriculture disaster relief payment for drought experienced in prior years.
|
3
|
Includes inter-segment revenue, interest income, and other income classified as revenue for segment reporting purposes.
|
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
1
|
$
|
-
|
||||
Accounts and other receivables, net
|
3
|
5
|
||||||
Inventories
|
24
|
16
|
||||||
Real estate held for sale
|
--
|
3
|
||||||
Prepaid expenses and other
|
5
|
6
|
||||||
Total current assets
|
33
|
30
|
||||||
Investments:
|
||||||||
Subsidiaries consolidated, at equity
|
1,313
|
1,299
|
||||||
Property, at Cost
|
518
|
501
|
||||||
Less accumulated depreciation and amortization
|
237
|
225
|
||||||
Property – net
|
281
|
276
|
||||||
Other Assets
|
16
|
17
|
||||||
Total
|
$
|
1,643
|
$
|
1,622
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
34
|
$
|
108
|
||||
Accounts payable
|
6
|
8
|
||||||
Income taxes payable
|
22
|
2
|
||||||
Non-qualified benefit plans
|
1
|
1
|
||||||
Other
|
17
|
17
|
||||||
Total current liabilities
|
80
|
136
|
||||||
Long-term Debt
|
308
|
230
|
||||||
Employee Benefit Plans
|
41
|
27
|
||||||
Non-qualified Benefit Plans
|
8
|
10
|
||||||
Other Long-term Liabilities
|
19
|
11
|
||||||
Deferred Income Taxes
|
50
|
50
|
||||||
Due to Subsidiaries
|
14
|
22
|
||||||
Shareholders’ Equity:
|
||||||||
Capital stock
|
34
|
34
|
||||||
Additional capital
|
239
|
223
|
||||||
Accumulated other comprehensive loss
|
(92
|
)
|
(82
|
)
|
||||
Retained earnings
|
953
|
972
|
||||||
Cost of treasury stock
|
(11
|
)
|
(11
|
)
|
||||
Total shareholders’ equity
|
1,123
|
1,136
|
||||||
Total
|
$
|
1,643
|
$
|
1,622
|
2011
|
2010
|
2009
|
||||||||||
Revenue:
|
||||||||||||
Agribusiness
|
$
|
128
|
$
|
117
|
$
|
73
|
||||||
Real estate leasing
|
24
|
16
|
13
|
|||||||||
Real estate sales
|
15
|
2
|
8
|
|||||||||
Interest and other
|
3
|
6
|
2
|
|||||||||
Total revenue
|
170
|
141
|
96
|
|||||||||
Costs and Expenses:
|
||||||||||||
Cost of agribusiness goods and services
|
113
|
114
|
109
|
|||||||||
Cost of real estate sales and leasing
|
21
|
11
|
9
|
|||||||||
Selling, general and administrative
|
21
|
24
|
21
|
|||||||||
Interest and other
|
16
|
16
|
16
|
|||||||||
Income tax benefit (expense)
|
2
|
(12
|
)
|
(22
|
)
|
|||||||
Total costs and expenses
|
173
|
153
|
133
|
|||||||||
Loss from Continuing Operations
|
(3
|
)
|
(12
|
)
|
(37
|
)
|
||||||
Discontinued Operations, net of income taxes
|
2
|
24
|
11
|
|||||||||
Income (Loss) Before Equity in Income of Subsidiaries Consolidated
|
(1
|
)
|
12
|
(26
|
)
|
|||||||
Equity in Income from Continuing Operations of Subsidiaries Consolidated
|
58
|
81
|
44
|
|||||||||
Equity in Income (Loss) from Discontinued Operations of Subsidiaries Consolidated
|
(23
|
)
|
(1
|
)
|
26
|
|||||||
Net Income
|
34
|
92
|
44
|
|||||||||
Other Comprehensive Income (Loss), net of income taxes
|
(10
|
)
|
(1
|
)
|
15
|
|||||||
Comprehensive Income
|
$
|
24
|
$
|
91
|
$
|
59
|
2011
|
2010
|
2009
|
||||||||||
Cash Flows from Operations (including dividends received from subsidiaries)
|
$
|
96
|
$
|
37
|
$
|
90
|
||||||
Cash Flows from Investing Activities:
|
||||||||||||
Capital expenditures
|
(10
|
)
|
(14
|
)
|
(6
|
)
|
||||||
Purchase of investments
|
(58
|
)
|
(67
|
)
|
(96
|
)
|
||||||
Proceeds from disposal of property and sale of investments
|
12
|
36
|
28
|
|||||||||
Net cash used in investing activities
|
(55
|
)
|
(45
|
)
|
(74
|
)
|
||||||
Cash Flows from Financing Activities:
|
||||||||||||
Change in intercompany payables/receivables
|
--
|
--
|
(13
|
)
|
||||||||
Proceeds from (repayments of) long-term debt, net
|
3
|
52
|
51
|
|||||||||
Proceeds from issuance of capital stock and other
|
10
|
7
|
(1
|
)
|
||||||||
Repurchases of capital stock
|
--
|
--
|
--
|
|||||||||
Dividends paid
|
(53
|
)
|
(52
|
)
|
(52
|
)
|
||||||
Net cash used in financing activities
|
(40
|
)
|
7
|
(15
|
)
|
|||||||
Cash and Cash Equivalents:
|
||||||||||||
Net increase (decrease) for the year
|
1
|
(1
|
)
|
1
|
||||||||
Balance, beginning of year
|
--
|
1
|
--
|
|||||||||
Balance, end of year
|
$
|
1
|
$
|
--
|
$
|
1
|
||||||
Other Cash Flow Information:
|
||||||||||||
Interest paid
|
$
|
(16
|
)
|
$
|
(15
|
)
|
$
|
(13
|
)
|
|||
Income taxes paid, net of refunds
|
$
|
(25
|
)
|
$
|
(46
|
)
|
$
|
(38
|
)
|
|||
Other Non-cash Information:
|
||||||||||||
Depreciation expense
|
$
|
16
|
$
|
16
|
$
|
17
|
||||||
Tax-deferred property sales
|
$
|
16
|
$
|
65
|
$
|
29
|
||||||
Tax-deferred property purchases
|
$
|
(12
|
)
|
$
|
(78
|
)
|
$
|
(40
|
)
|
2011
|
2010
|
|||||||
Revolving Credit loans (1.24% for 2011 and 0.57% for 2010)
|
$
|
113
|
$
|
93
|
||||
Term Loans:
|
||||||||
6.90%, payable through 2020
|
100
|
100
|
||||||
5.53%, payable through 2016
|
42
|
50
|
||||||
5.55%, payable through 2017
|
50
|
50
|
||||||
5.56%, payable through 2016
|
25
|
25
|
||||||
4.10%, payable through 2012
|
4
|
12
|
||||||
6.20%, payable through 2013, secured by Deere Valley Center
|
2
|
2
|
||||||
5.50%, payable through 2014, secured by Little Cottonwood Center
|
6
|
6
|
||||||
Total
|
342
|
338
|
||||||
Less current portion
|
(34
|
)
|
(108
|
)
|
||||
Long-term debt
|
$
|
308
|
$
|
230
|
21.
|
Subsidiaries.
|
23.
|
Consent of Deloitte & Touche LLP dated February 28, 2012.
|
31.1
|
Certification of Chief Executive Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
ALEXANDER & BALDWIN, INC.
|
||
(Registrant)
|
||
Date: February 28, 2012
|
By: /s/ Stanley M. Kuriyama
|
|
Stanley M. Kuriyama, President and
|
||
Chief Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ Stanley M. Kuriyama
|
President,
|
February 28, 2012
|
||
Stanley M. Kuriyama
|
Chief Executive Officer and Director
|
|||
/s/ Joel M. Wine
|
Senior Vice President,
|
February 28, 2012
|
||
Joel M. Wine
|
Chief Financial Officer and Treasurer
|
|||
/s/ Paul K. Ito
|
Vice President, Controller
|
February 28, 2012
|
||
Paul K. Ito
|
and Assistant Treasurer
|
|||
/s/ Walter A. Dods, Jr.
|
Chairman of the Board
|
February 28, 2012
|
||
Walter A. Dods, Jr.
|
and Director
|
|||
/s/ W. Blake Baird
|
Director
|
February 28, 2012
|
||
W. Blake Baird
|
||||
/s/ Michael J. Chun
|
Director
|
February 28, 2012
|
||
Michael J. Chun
|
||||
/s/ W. Allen Doane
|
Director
|
February 28, 2012
|
||
W. Allen Doane
|
||||
/s/ Thomas B. Fargo
|
Director
|
February 28, 2012
|
||
Thomas B. Fargo
|
||||
/s/ Charles G. King
|
Director
|
February 28, 2012
|
||
Charles G. King
|
||||
/s/ Constance H. Lau
|
Director
|
February 28, 2012
|
||
Constance H. Lau
|
||||
/s/ Douglas M. Pasquale
|
Director
|
February 28, 2012
|
||
Douglas M. Pasquale
|
||||
/s/ Jeffrey N. Watanabe
|
Director
|
February 28, 2012
|
||
Jeffrey N. Watanabe
|
||||
/s/ Stanley M. Kuriyama
|
|
Name:
|
Stanley M. Kuriyama
|
Title:
|
President and Chief Executive Officer
|
Date:
|
February 28, 2012
|
/s/ Joel M. Wine
|
|
Name:
|
Joel M. Wine
|
Title:
|
Senior Vice President, Chief Financial Officer and Treasurer
|
Date:
|
February 28, 2012
|
1.
|
Section 1.02 is amended in its entirety to read as follows:
|
|
“It is the purpose of this Plan to provide certain eligible executives with benefits equal to the benefits they would receive under the A&B Retirement Plan for Salaried Employees (and each constituent qualified pension plan), the Pension Plan for Employees of A&B Agricultural Companies, the Retirement Plan for Employees of Matson, and the A&B Individual Deferred Compensation and Profit Sharing Plan for Salaried Non-Bargaining Employees if amendments to those plans did not apply to certain Participants, and certain limitations under the Internal Revenue Code of 1986, as amended, did not apply. The Plan is intended to be exempt from the participation, vesting, funding, and fiduciary requirements of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), pursuant to Sections 201(2), 301(3) and 401(1) of ERISA.”
|
2.
|
Section 2.03 is amended in its entirety to read as follows:
|
3.
|
Section 2.04 is amended in its entirety to read as follows:
|
5.
|
Section 4.01(a) is amended in its entirety to read as follows:
|
6.
|
Section 4.01(b)(1) is amended in its entirety to read as follows:
|
7.
|
Section 4.01(b)(2) is amended in its entirety to read as follows:
|
8.
|
Section 4.01(d)(2) is amended in its entirety to read as follows:
|
9.
|
Section 4.03(a) is amended to change the subheading title “Cash Balance” to “Profit Sharing Cash Account”.
|
10.
|
Section 6.02(a) is amended in its entirety to read as follows:
|
11.
|
The introductory paragraph of Appendix C is amended in its entirety to read as follows:
|
12.
|
Except as modified by this Amendment, all terms and provisions of the Plan shall continue in full force and effect.
|
2.
|
Section 4.01(a) is amended in its entirety to read as follows:
|
3.
|
Section 4.01(b) is amended in its entirety to read as follows:
|
4.
|
Section 4.01(d)(2) is amended in its entirety to read as follows:
|
5.
|
Section 4.03 is amended by adding a new sentence at the end of the first paragraph thereof to read as follows:
|
6.
|
Section 6.02(a) is amended in its entirety to read as follows:
|
7.
|
Except as modified by this Amendment, all terms and provisions of the Plan shall continue in full force and effect.
|
1.
|
Section 1.02 is amended in its entirety as follows:
|
2.
|
A new Section 1.03 is added to the Plan, to read as follows:
|
4.
|
Section 2.29 is amended to add a new paragraph (d) to read as follows:
|
|
“(d)
|
Notwithstanding the foregoing, Retirement Income shall reflect neither years of credited service accrued after December 31, 2011, nor compensation earned after December 31, 2011, and for any date of determination on or after December 31, 2011, Retirement Income shall be the Participant’s Retirement Income computed as of December 31, 2011.”
|
5.
|
Appendix C shall be amended to add a new paragraph 5 to read as follows:
|
|
“5.
|
As part of the ceasing of benefit accruals effective December 31, 2011, Other Benefits payable under the A&B Retirement Plan and the defined benefit provisions of the A&B Excess Benefits Plan shall be computed based on the benefits accrued as of December 31, 2011.”
|
6.
|
Except as modified by this Amendment, all terms and provisions of the Plan shall continue in full force and effect.
|
1.
|
Section 4.00 is amended in its entirety as follows:
|
2.
|
Except as modified by this Amendment, all terms and provisions of the Plan shall continue in full force and effect.
|