Hawaii
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45-4849780
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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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Real Estate Development and Sales Segment
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5
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(1)
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Landholdings
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5
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(2)
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Planning and Zoning
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7
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(3)
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Development Projects
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7
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B.
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Real Estate Leasing Segment
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12
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C.
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Agribusiness
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14
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(1)
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Production
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14
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(2)
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Marketing of Sugar
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15
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(3)
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Sugar Competition and Legislation
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15
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(4)
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Land Designations and Water
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16
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(5)
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Energy
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17
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Employees and Labor Relations
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17
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Available Information
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17
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Item 1A.
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Risk Factors
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18
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Item 1B.
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Unresolved Staff Comments
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28
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Item 3.
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Legal Proceedings
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28
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Item 4.
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Mine Safety Disclosures
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29
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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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30
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Item 6.
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Selected Financial Data
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32
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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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35
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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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53
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Item 8.
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Financial Statements and Supplementary Data
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54
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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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94
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Item 9A.
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Controls and Procedures
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94
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A.
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Disclosure Controls and Procedures
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94
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B.
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Internal Control over Financial Reporting
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94
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Item 9B.
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Other Information
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96
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Item 10.
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Directors, Executive Officers and Corporate Governance
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97
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A.
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Directors
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97
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B.
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Executive Officers
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97
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C.
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Corporate Governance
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98
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D.
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Code of Ethics
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98
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Item 11.
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Executive Compensation
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98
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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98
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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98
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Item 14.
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Principal Accounting Fees and Services
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98
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A.
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Real Estate
- The Real Estate Industry consists of two segments, both of which have operations in Hawaii and on the Mainland. The Real Estate Industry engages in real estate development and ownership activities, including planning, zoning, financing, constructing, purchasing, managing and leasing, selling and exchanging, and investing in real property. Real estate activities are conducted through A&B Properties, Inc. and other wholly owned subsidiaries of A&B.
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·
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Real Estate Development and Sales segment
- generates its revenues and creates value through an active and comprehensive program of land stewardship, planning, entitlement, development and sale of land and commercial and residential properties, principally in Hawaii.
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·
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Real Estate Leasing segment
- owns, operates, and manages a large portfolio of high-quality retail, office, and industrial properties in Hawaii and on the Mainland. The Company also leases land in Hawaii. The significant recurring cash flow generated by this portfolio serves as an important source of funding for A&B’s real estate development and sales activities.
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B.
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Agribusiness
- Agribusiness, which contains one segment, produces bulk raw sugar, specialty food grade sugars, and molasses; markets and distributes specialty food-grade sugars; provides general trucking services, mobile equipment maintenance, and repair services in Hawaii; leases agricultural land to third parties; and generates and sells electricity to the extent not used in A&B’s Agribusiness operations. A&B also is the member of Hawaiian Sugar & Transportation Cooperative (“HS&TC”), a cooperative that provides raw sugar marketing and transportation services.
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Segment
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2012 Revenue
(in millions)
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Percentage of
Total 2012
Revenue
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2012
Operating
Profit
(in millions)
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Percentage of
Total 2012
Operating
Profit
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Key Facts
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Real Estate Leasing
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$100.6
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32%
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$41.6
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72%
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High-quality commercial portfolio consisting of 45 improved properties in Hawaii and 8 Mainland states totaling nearly 8.0 million square feet.
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Real Estate Sales*
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$32.2
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10%
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$(4.4)
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(8)%
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Hawaii-focused, experienced developer with a large development pipeline encompassing over a dozen projects entitled for approximately 1,700 resort residential, 600 primary residential and 200 commercial units. Fourth largest private landowner in Hawaii with approximately 87,000 acres.
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Agribusiness
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$182.3
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58%
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$20.8
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36%
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Largest farmer in Hawaii and only producer of raw sugar in Hawaii, producing nearly 180,000 tons of sugar in 2012, and provider of approximately 6 percent of renewable energy on both Maui and Kauai.
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Total
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$315.1
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100%
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$58.0
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100%
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*
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Revenue includes $8.3 million on the sale of a 286-acre agricultural parcel in the third quarter of 2012 classified as “Gain on sale of agricultural parcel” in the consolidated statements of income, but reflected as revenue for segment reporting purposes. Additionally, operating profit includes impairment and equity losses of $9.8 million related to the Company’s change to its development strategy to focus on development projects in Hawaii.
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•
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Employing lands at their highest and best use:
A&B strives to employ the land it owns at its highest and best use, to the benefit of shareholders, employees, our communities and other key stakeholder groups. For a significant portion of A&B’s substantial Hawaii landholdings, this implies a wide range of non-development uses, ranging from conservation/watershed to pasture to active farming. While a material portion of A&B’s landholdings has limited or no long-term urban development potential, these landholdings remain valuable for other reasons, for example, providing access to natural resources or hydro-electric generation capability.
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•
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Focus on entitlement and development of core Hawaii lands:
A&B intends to focus on development of a portion of its core landholdings in Hawaii, pursuing appropriate entitlement and development projects that respond to market demand while meeting community needs.
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•
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Optimize returns of A&B’s diversified commercial portfolio:
A&B has a track record of increasing the value of its commercial property portfolio through active management of a comprehensive program designed to increase occupancy, secure quality tenants, and reduce costs, thereby maximizing the financial performance of these properties. Periodically, when A&B believes it has maximized the value of a select asset, it may market the asset for sale. Upon sale, A&B will seek to redeploy the proceeds on a 1031 tax-deferred basis into a new asset with a higher return potential, with a focus on opportunistically migrating the portfolio to Hawaii over time, while ensuring that the portfolio continues to serve as a stable source of cash flow for A&B’s investment activities.
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•
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Invest in high-returning real estate opportunities in Hawaii:
In addition to development of its own lands, A&B will continue to invest in attractive real estate opportunities elsewhere in Hawaii where it can leverage its market knowledge, relationships and financial strength to create significant value and, at the same time, diversify its current portfolio and pipeline.
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•
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Build a pipeline of development projects scaled to market opportunities and designed to optimize risk-adjusted returns:
A&B owns a valuable pipeline of development projects encompassing a wide-range of product types, from resort residential real estate, to industrial, to primary residential housing. A&B employs a disciplined approach to its investments and prudently invests capital to position select projects with ready inventory to meet market demand. A&B also will pursue joint ventures, where appropriate, to supplement its in-house capabilities, access third-party capital, gain access to new opportunities in the Hawaii market, diversify its pipeline, and optimize risk-adjusted returns.
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•
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De-risk agricultural operations:
A&B continuously seeks to stabilize and de-risk its agricultural operations. For example, the sale of A&B’s Kauai Coffee Company, Inc. assets to a global coffee manufacturer removed operational cost and product marketing risks and replaced volatile financial results with a stable lease income stream. In addition, A&B has enhanced the management of field and factory at its sugar operations, resulting in a greater than 40 percent increase in sugar yields per acre over the past three years. A&B intends to continue its focus on maximizing its returns from agricultural activities and assets while mitigating the volatility of those returns. To meet this objective, A&B employs a variety of risk-mitigation measures, including forward pricing of sugar sales and fixed-rate contracts for key inputs. Refer to the Company’s “Outlook” on page 51 for an updated discussion on the Company’s sugar pricing.
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•
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Grow renewable energy operations:
Due to the high cost of transporting fossil fuels to a remote island community, the economics of renewable energy in Hawaii are more favorable relative to other U.S. locations. In fact, Hawaii has mandated a shift to 40 percent clean energy by the year 2030. As a result, A&B expects to evaluate and further capitalize on opportunities to add additional renewable energy capacity to its portfolio through new projects, and to continue research on possible cultivation and conversion of feedstock from A&B’s sugar plantation for use in bio-fuel production.
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•
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A&B has a successful long-term track record of expanding into lines of businesses that complement its core land and agribusiness operations. Looking forward, A&B expects to continue its evaluation of Hawaii-centric business opportunities that complement its core land stewardship, agribusiness, property development and property management activities in the state, and leverage A&B’s competitive strengths and the long-term prospects for growth in Hawaii.
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•
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Extensive and irreplaceable landholdings:
A&B is the fourth largest private landowner in Hawaii, with approximately 87,000 acres, primarily on Maui and Kauai, including 750 acres fully entitled for urban use.
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•
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High-quality commercial real estate portfolio producing strong free cash flow:
A&B owns and manages a high-quality commercial portfolio of 45 properties in Hawaii and eight Mainland states that totals nearly 8.0 million square feet, which provides significant, stable, recurring cash flows that support A&B’s real estate investment activities.
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•
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Diverse pipeline of development projects:
A&B’s development pipeline encompasses over a dozen primary residential, resort residential and commercial projects comprising more than 2,500 units throughout the State of Hawaii, providing for substantial embedded growth opportunities.
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•
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Largest agricultural operation in Hawaii with upside in renewable energy:
A&B farms roughly 36,000 acres of mostly contiguous lands in Maui’s central valley with extensive infrastructure to meet water, power and transportation needs, consistent with large-scale agronomic activity. Additionally, A&B owns approximately 7,000 acres of high-quality agricultural land on Kauai’s sunny south shore, of which over 4,000 acres are leased to other parties for a variety of agricultural uses, including the cultivation of coffee and seed corn. A&B maintains a portfolio of renewable energy production facilities encompassing biomass combustion, hydro-electric and solar generation capabilities on Maui and Kauai. Total renewable energy production capacity exceeds 48 megawatts, which includes the recently completed six megawatt solar farm on the island of Kauai.
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•
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Deep local knowledge and expertise:
A&B has been in the development business in Hawaii since 1949 when it established Kahului Development Co., Ltd. to develop and market “Dream City,” which today is Kahului, Maui’s principal population center and commercial hub. In the ensuing decades, A&B has expanded and diversified its pipeline of development projects and broadened its development capabilities and expertise. For instance, A&B is the original developer of the world famous Wailea master-planned resort community on Maui’s south shore. The Company’s knowledge, expertise and relationships forged through over six decades of Hawaii development activity enable it to profitably pursue a wide range of long-term commercial and residential developments in a manner that is both responsive to market needs and sensitive to local concerns. This local knowledge and expertise, combined with the Company’s strong financial position, also serve to make A&B an ideal partner for landowners, developers and others seeking to participate in the Hawaii real estate sector.
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•
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Experienced management team:
A&B’s management team has considerable real estate and agribusiness experience, and a track record of conceptualizing, planning, entitling and developing a wide range of real property projects in Hawaii. The Company’s management team brings decades of Hawaii real estate and business experience, working on commercial and residential developments on every island.
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•
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Track record of success:
A&B has an extensive and long track record of investing in Hawaii real estate. Since 2000, A&B has invested approximately $500 million in Hawaii real estate outside of its legacy holdings—including four high-rise condominiums in urban Honolulu and premier resort destination communities in Hawaii, such as the Wailea Resort on Maui—and over $850 million in the acquisition of Hawaii and Mainland commercial properties, mainly through tax-deferred property exchanges.
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Location
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No. of Acres
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Maui
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66,800
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Kauai
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20,360
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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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87,240
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Location
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No. of Acres
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Texas
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150
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California
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96
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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 U.S. MAINLAND
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467
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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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744
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Agricultural, pasture and miscellaneous
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57,326
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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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467
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TOTAL
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87,707
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Project
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Original
Acres
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Acres at
12/31/12
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Kukui’ula (HI)
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1,000
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958
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Bakersfield (CA)
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57
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57
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Ka Milo (HI)
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31
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22
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Kai Malu (HI)
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25
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2
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Santa Barbara Ranch (CA)*
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22
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22
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Palmdale (CA)
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18
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18
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Crossroads (CA)
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7
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7
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Waihonua (HI)
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2
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2
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TOTAL
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1,162
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1,088
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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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(1)
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Brydeswood acreage is included in agricultural, pasture and miscellaneous landholdings.
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(2)
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Ten of the 55 acres are designated for parks and open space. In addition to the 55 acres, another eight acres are designated for drainage and a waste water treatment plant, and are included in the “Agricultural, pasture and miscellaneous” classification.
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(3)
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Kahului Town Center acreage is included in Hawaii-commercial improved properties fully entitled landholdings.
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(4)
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Includes adjacent bulk parcels
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(5)
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Gateway at Mililani Mauka South acres are included in Hawaii – commercial improved properties.
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(6)
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Includes land cost at book value and capitalized interest, but excludes sales commissions and closing costs.
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•
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The 7.4-acre MF-11 (Bluffs at Wailea) project was developed for the sale of 12 unimproved residential lots. Due to limited demand for unimproved lots, A&B is pursuing a joint venture development of 60 multi-family units, with construction projected to commence in 2014.
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•
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The 13.0-acre MF-7 parcel is fully designed and permitted for the development of a 75-unit multi-family project. The project has secured the required affordable housing credits and water meters. Depending on market conditions, construction could commence in 2014.
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•
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At the 11.0-acre B-I parcel, A&B is pursuing a joint venture development of a 60,000 square-foot retail facility. Planning and design work is underway and construction could commence in 2014.
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(square feet, in millions)
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Hawaii
(1)
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Mainland
(2)
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Total
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Industrial
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0.5
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4.5
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5.0
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Office
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0.2
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1.3
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1.5
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Retail
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0.7
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0.7
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1.4
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Total
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1.4
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6.5
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7.9
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(1)
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The number of commercial properties located in Hawaii by island are as follows: Oahu (9), Maui (8), Kauai (4), and Big Island of Hawaii (1).
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(2)
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The number of commercial properties located on the Mainland are as follows: California (6), Texas (5), Colorado (3), Utah (3), Arizona (2), Washington (2), Nevada (1), and Georgia (1).
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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 Building
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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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87,500
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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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46,400
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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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20,300
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Gateway at Mililani Mauka South
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Mililani, Oahu
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Office
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18,700
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Maui Clinic Building
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Kahului, Maui
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Office
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16,700
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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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216,500
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1800 and 1820 Preston Park
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Plano, TX
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Office
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198,700
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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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172,000
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Rancho Temecula Town Center
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Temecula, CA
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Retail
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165,600
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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
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141,600
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Concorde Commerce Center
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Phoenix, AZ
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Office
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137,500
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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
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119,500
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Broadlands Marketplace
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Broomfield, CO
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Retail
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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
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2890 Gateway Oaks
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Sacramento, CA
|
Office
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58,700
|
Wilshire Shopping Center
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Greeley, CO
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Retail
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46,500
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Royal MacArthur Center
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Dallas, TX
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Retail
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44,200
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Year of expiration
|
Number of
leases
|
Sq. ft. of
expiring
leases
|
Percentage
of total
leased GLA
(1)
|
Annual
gross rent
expiring
(2)
($ in millions)
|
Percentage
of total
annual gross
rent
(2)
|
|
2013
|
109
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699,317
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9.9%
|
7.4
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10.5%
|
|
2014
|
111
|
477,349
|
6.7%
|
6.9
|
9.8%
|
|
2015
|
129
|
1,197,584
|
16.9%
|
12.3
|
17.7%
|
|
2016
|
78
|
974,963
|
13.8%
|
10.6
|
15.1%
|
|
2017
|
72
|
2,007,353
|
28.3%
|
14.8
|
21.2%
|
|
2018
|
26
|
469,888
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6.6%
|
3.7
|
5.2%
|
|
2019
|
9
|
125,870
|
1.8%
|
2.0
|
2.8%
|
|
2020
|
15
|
197,154
|
2.8%
|
2.9
|
4.2%
|
|
2021
|
6
|
161,607
|
2.3%
|
1.5
|
2.2%
|
|
2022
|
11
|
97,839
|
1.4%
|
2.0
|
2.8%
|
|
2023
|
4
|
20,861
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0.3%
|
0.4
|
0.6%
|
|
Thereafter
|
21
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652,965
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9.2%
|
5.5
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7.9%
|
|
Total
|
591
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7,082,750
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100.0%
|
70.0
|
100.0%
|
|
(1)
|
Gross leasable area
|
|
(2)
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Annual gross rent means the annualized base rent amounts of expiring leases and includes improved properties only.
|
|
•
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an inability of A&B 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;
|
|
•
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an inability to obtain, or significant delay in obtaining, zoning, construction, 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;
|
|
•
|
an inability to have access to sufficient and reliable sources of water or to secure water service or meters for its projects;
|
|
•
|
an inability to secure tenants or buyers 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 A&B’s constructed inventory.
|
|
•
|
a significant number of A&B’s tenants are unable to meet their obligations;
|
|
•
|
increases in non-recoverable operating and ownership costs;
|
|
•
|
A&B 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.
|
|
•
|
A&B may not have voting control over the joint venture;
|
|
•
|
A&B may not be able to maintain good relationships with its venture partners;
|
|
•
|
the venture partner at any time may have economic or business interests that are inconsistent with A&B’s economic or business interests;
|
|
•
|
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 A&B;
|
|
•
|
the joint venture or venture partner could lose key personnel; and
|
|
•
|
the venture partner could become insolvent, requiring A&B to assume all risks and capital requirements related to the joint venture project, and any resulting bankruptcy proceedings could have an adverse impact on the operation of the project or the joint venture.
|
|
•
|
equipment accidents or failures in the factory or the power plant, particularly where equipment is old and difficult to repair or replace;
|
|
•
|
government restrictions on farming practices, including cane burning;
|
|
•
|
loss of A&B’s major customer;
|
|
•
|
weather and natural disasters;
|
|
•
|
increases in costs, including, but not limited to fuel, fertilizer, herbicide, and drip tubing;
|
|
•
|
labor, including labor availability (see risk factor above regarding labor disruptions) and loss of qualified personnel;
|
|
•
|
lack of demand for A&B’s production;
|
|
•
|
disease;
|
|
•
|
uncontrolled fires, including arson;
|
|
•
|
and weed control.
|
|
•
|
issuing equity securities to satisfy financing needs if the equity securities issued would represent a 50% or greater interest in A&B;
|
|
•
|
acquiring businesses or assets with equity securities if the equity securities issued would represent a 50% or greater interest in A&B; or
|
|
•
|
engaging in mergers or asset transfers that could jeopardize the tax-free status of the Separation or certain related transactions.
|
Market Price
|
||||||||||||
High
|
Low
|
Close
|
||||||||||
2012
|
||||||||||||
Third Quarter
|
$
|
36.43
|
$
|
23.50
|
$
|
29.53
|
||||||
Fourth Quarter
|
$
|
30.40
|
$
|
25.88
|
$
|
29.37
|
||||||
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
|
1,722,719
|
$19.41
|
1,558,616*
|
Equity compensation plans not approved by security holders
|
—
|
—
|
—
|
Total
|
1,722,719
|
$19.41
|
1,558,616
|
|
*
|
Under the 2012 Incentive Compensation Plan, 1,558,616 shares may be issued either as restricted stock grants, restricted stock units grants, or stock option grants.
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||
Revenue:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
$
|
100.6
|
$
|
99.7
|
$
|
93.8
|
$
|
102.5
|
$
|
107.0
|
||||||
Development and Sales
|
32.2
|
59.8
|
131.0
|
125.5
|
350.0
|
|||||||||||
Less amounts reported in discontinued operations
1
|
(10.1
|
)
|
(49.3
|
)
|
(128.6
|
)
|
(137.0
|
)
|
(164.7
|
)
|
||||||
Agribusiness
2
|
182.3
|
157.5
|
165.6
|
99.6
|
121.6
|
|||||||||||
Reconciling Items
3
|
(8.3
|
)
|
—
|
—
|
—
|
—
|
||||||||||
Total Revenue
|
$
|
296.7
|
$
|
267.7
|
$
|
261.8
|
190.5
|
$
|
413.9
|
|||||||
Operating Profit
:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
$
|
41.6
|
$
|
39.3
|
$
|
35.3
|
$
|
43.2
|
$
|
47.8
|
||||||
Development and Sales
4
|
(4.4
|
)
|
15.5
|
50.1
|
39.1
|
95.6
|
||||||||||
Less amounts reported in discontinued operations
1
|
(4.7
|
)
|
(24.8
|
)
|
(55.5
|
)
|
(59.5
|
)
|
(77.2
|
)
|
||||||
Agribusiness
2
|
20.8
|
22.2
|
6.1
|
(27.8
|
)
|
(12.9
|
)
|
|||||||||
Total operating profit (loss)
|
53.3
|
52.2
|
36.0
|
(5.0
|
)
|
53.3
|
||||||||||
Interest expense, net
|
(14.9
|
)
|
(17.1
|
)
|
(17.3
|
)
|
(17.0
|
)
|
(12.5
|
)
|
||||||
General corporate expenses
|
(15.1
|
)
|
(19.9
|
)
|
(22.7
|
)
|
(21.0
|
)
|
(20.5
|
)
|
||||||
Separation costs
|
(6.8
|
)
|
—
|
—
|
—
|
—
|
||||||||||
Income (loss) from continuing operations before income taxes
|
16.5
|
15.2
|
(4.0
|
)
|
(43.0
|
)
|
20.3
|
|||||||||
Income tax expense (benefit)
|
(1.2
|
)
|
6.6
|
(1.7
|
)
|
(17.2
|
)
|
8.1
|
||||||||
Income (loss) from continuing operations
|
17.7
|
8.6
|
(2.3
|
)
|
(25.8
|
)
|
12.2
|
|||||||||
Income from discontinued operations
|
2.8
|
14.9
|
35.4
|
36.7
|
47.7
|
|||||||||||
Net Income
|
$
|
20.5
|
$
|
23.5
|
$
|
33.1
|
$
|
10.9
|
$
|
59.9
|
1
|
Prior year amounts restated for amounts treated as discontinued operations.
|
2
|
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.
|
3
|
Represents the sale of a 286-acre agricultural parcel in the third quarter of 2012 classified as “Gain on sale of agricultural parcel” in the consolidated statements of income, but reflected as revenue for segment reporting purposes.
|
4
|
The Real Estate Development and Sales segment includes approximately $(8.3) million, ($7.9) million, $2.0 million, and $9.0 million in equity in (loss) earnings from its various real estate joint ventures for 2012, 2011, 2010, and 2008, respectively. Equity in earnings from joint ventures in 2009 was negligible. Included in operating profit are noncash impairment and equity losses of $9.8 million (Bakersfield joint venture and Santa Barbara real estate project) in 2012 and $6.4 million (Waiawa real estate joint venture) in 2011.
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||
Identifiable Assets:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
$
|
771.3
|
$
|
772.0
|
$
|
761.3
|
$
|
686.9
|
$
|
621.2
|
||||||
Development and Sales
5
|
504.8
|
451.5
|
420.3
|
349.0
|
347.4
|
|||||||||||
Agribusiness
|
149.9
|
157.8
|
153.3
|
169.6
|
196.2
|
|||||||||||
Other
|
11.3
|
5.3
|
6.6
|
30.2
|
10.8
|
|||||||||||
Total assets
|
$
|
1,437.3
|
$
|
1,386.6
|
$
|
1,341.5
|
$
|
1,235.7
|
$
|
1,175.6
|
||||||
Capital Expenditures:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
6
|
$
|
23.1
|
43.6
|
$
|
164.7
|
$
|
108.8
|
$
|
100.2
|
|||||||
Development and Sales
7
|
—
|
5.2
|
0.1
|
0.1
|
0.6
|
|||||||||||
Agribusiness
8
|
31.7
|
10.5
|
6.8
|
3.4
|
15.2
|
|||||||||||
Other
|
—
|
—
|
0.3
|
0.3
|
2.7
|
|||||||||||
Total capital expenditures
9
|
$
|
54.8
|
$
|
59.3
|
$
|
171.9
|
$
|
112.6
|
$
|
118.7
|
||||||
Depreciation and Amortization:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
1
|
$
|
22.0
|
$
|
21.6
|
$
|
20.3
|
$
|
19.5
|
$
|
17.9
|
||||||
Development and Sales
|
0.2
|
0.2
|
0.2
|
0.3
|
0.2
|
|||||||||||
Agribusiness
|
11.6
|
11.9
|
12.7
|
11.9
|
11.5
|
|||||||||||
Other
|
1.3
|
1.1
|
2.0
|
3.1
|
3.2
|
|||||||||||
Total depreciation and amortization
|
$
|
35.1
|
$
|
34.8
|
$
|
35.2
|
$
|
34.8
|
$
|
32.8
|
5
|
The Real Estate Development and Sales segment includes approximately $319.7 million, $290.1 million, $274.8 million, $193.3 million, and $162.1 million related to its investment in various real estate joint ventures as of December 31, 2012, 2011, 2010, 2009, and 2008, respectively.
|
6
|
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
|
7
|
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 and excludes investment in joint ventures classified as Cash Flows from Investing Activities. Operating cash flows for expenditures related to real estate developments were $37.2 million, $13.8 million, $21.6 million, $6.2 million, and $38.8 million for 2012, 2011, 2010, 2009, and 2008, respectively. Investments in joint ventures were $17.4 million, $27.9 million, $100.5 million, $46.4 million and $40.6 million in 2012, 2011, 2010, 2009, and 2008, respectively.
|
8
|
Includes $21.8 million of capital related to the Company’s Port Allen solar project before tax credits.
|
9
|
Total capital expenditures for segment disclosure purposes includes tax-deferred property purchases of $9.4 million, $39.1 million, $148.4 million, $94.1 million and $46.1 million for the years ended 2012, 2011, 2010, 2009, and 2008, respectively, that are treated as non-cash transactions, and therefore, not included in Capital Expenditures for properties and developments on the Consolidated Statements of Cash Flows.
|
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||
Earnings (loss) per share:
1
|
||||||||||||||||||||
Basic:
|
||||||||||||||||||||
Continuing operations
|
$
|
0.41
|
$
|
0.20
|
$
|
(0.05
|
)
|
$
|
(0.61
|
)
|
$
|
0.29
|
||||||||
Discontinued operations
|
0.07
|
0.35
|
0.83
|
0.87
|
1.12
|
|||||||||||||||
Basic earnings per share
|
$
|
0.48
|
$
|
0.55
|
$
|
0.78
|
$
|
0.26
|
$
|
1.41
|
||||||||||
Diluted:
|
||||||||||||||||||||
Continuing operations
|
$
|
0.41
|
$
|
0.20
|
$
|
(0.05
|
)
|
$
|
(0.61
|
)
|
$
|
0.29
|
||||||||
Discontinued operations
|
0.07
|
0.35
|
0.83
|
0.87
|
1.12
|
|||||||||||||||
Diluted earnings per share
|
$
|
0.48
|
$
|
0.55
|
$
|
0.78
|
$
|
0.26
|
$
|
1.41
|
||||||||||
Balance sheet data (in millions):
|
||||||||||||||||||||
Investment in real estate and joint ventures
|
$
|
1,203.4
|
$
|
1,165.0
|
$
|
1,123.8
|
$
|
916.8
|
$
|
841.2
|
||||||||||
Total assets
|
1,437.3
|
1,386.6
|
1,341.5
|
1,231.3
|
1,175.7
|
|||||||||||||||
Total liabilities
|
522.9
|
660.8
|
652.9
|
584.5
|
562.2
|
|||||||||||||||
Long-term debt – non-current
|
220.0
|
327.2
|
249.6
|
258.3
|
219.8
|
|||||||||||||||
Shareholders’ equity
|
914.4
|
725.8
|
688.6
|
646.8
|
613.5
|
1
|
The computation of basic and diluted earnings per common share for all periods prior to Separation is calculated using 42.4 million, the number of shares of A&B common stock outstanding on July 2, 2012, which was the first day of trading following the June 29, 2012 distribution of A&B common stock to Holdings shareholders, as if those shares were outstanding for those periods. For all periods prior to Separation, there were no dilutive shares because no actual A&B shares or share-based awards were outstanding prior to the Separation.
|
|
•
|
Basis of Presentation:
This section provides a discussion of the basis on which A&B’s consolidated financial statements were prepared, including A&B’s historical results of operations.
|
|
•
|
Business Overview:
This section provides a general description of A&B’s business, as well as recent developments that A&B believes are important in understanding its results of operations and financial condition or in understanding anticipated future trends.
|
|
•
|
Critical Accounting Estimates:
This section identifies and summarizes those accounting policies that significantly impact A&B’s reported results of operations and financial condition and require significant judgment or estimates on the part of management in their application.
|
|
•
|
Consolidated Results of Operations:
This section provides an analysis of A&B’s results of operations for the three years ended December 31, 2012, 2011 and 2010.
|
|
•
|
Analysis of Operating Revenue and Profit by Segment:
This section provides an analysis of A&B’s results of operations by business segment.
|
|
•
|
Liquidity and Capital Resources:
This section provides a discussion of A&B’s financial condition and an analysis of A&B’s cash flows for the years ended December 31, 2012, 2011, and 2010, as well as a discussion of A&B’s ability to fund the its future commitments and ongoing operating activities through internal and external sources of capital.
|
|
•
|
Contractual Obligations, Commitments, Contingencies and Off-Balance-Sheet Arrangements:
This section provides a discussion of A&B’s contractual obligations and other commitments and contingencies that existed at December 31, 2012.
|
|
•
|
Quantitative and Qualitative Disclosures about Market Risk:
This section discusses how A&B monitors and manages exposure to potential gains and losses associated with changes in interest rates.
|
|
•
|
Outlook:
This section provides a discussion of management’s general outlook about its markets and A&B’s competitive position.
|
|
•
|
Discount rates
|
|
•
|
Expected long-term rate of return on pension plan assets
|
|
•
|
Health care cost trend rates
|
|
•
|
Salary growth
|
|
•
|
Inflation
|
|
•
|
Retirement rates
|
|
•
|
Mortality rates
|
|
•
|
Expected contributions
|
(dollars in millions, except per-share amounts)
|
2012
|
Chg.
|
2011
|
Chg.
|
2010
|
|||||||||||
Operating Revenue
|
$
|
296.7
|
11
|
%
|
$
|
267.7
|
2
|
%
|
$
|
261.8
|
||||||
Operating Costs and Expenses
|
256.3
|
10
|
%
|
233.9
|
-10
|
%
|
260.7
|
|||||||||
Operating Income
|
40.4
|
20
|
%
|
33.8
|
31
|
X
|
1.1
|
|||||||||
Other Income and (Expense)
|
(23.9
|
)
|
28
|
%
|
(18.6
|
)
|
4
|
X
|
(5.1
|
)
|
||||||
Income Taxes Expense (Benefit)
|
(1.2
|
)
|
NM
|
6.6
|
N
|
M
|
(1.7
|
)
|
||||||||
Income (Loss) From Continuing Operations
|
17.7
|
2
|
X
|
8.6
|
N
|
M
|
(2.3
|
)
|
||||||||
Discontinued Operations (net of taxes)
|
2.8
|
-81
|
%
|
14.9
|
-58
|
%
|
35.4
|
|||||||||
Net Income
|
$
|
20.5
|
-13
|
%
|
$
|
23.5
|
-29
|
%
|
$
|
33.1
|
||||||
Basic Earnings Per Share
|
$
|
0.48
|
-13
|
%
|
$
|
0.55
|
-29
|
%
|
$
|
0.78
|
||||||
Diluted Earnings Per Share
|
$
|
0.48
|
-13
|
%
|
$
|
0.55
|
-29
|
%
|
$
|
0.78
|
(dollars in millions)
|
2012
|
2011
|
Change
|
|||||||
Real estate leasing segment revenue
|
$
|
100.6
|
$
|
99.7
|
1
|
%
|
||||
Real estate leasing operating costs and expenses
|
57.2
|
58.7
|
-3
|
%
|
||||||
Selling, general and administrative expenses
|
1.7
|
1.8
|
-6
|
%
|
||||||
Other segment expense (income)
|
0.1
|
(0.1
|
)
|
N
|
M
|
|||||
Segment operating profit
|
41.6
|
39.3
|
6
|
%
|
||||||
Operating profit margin
|
41.4
|
%
|
39.4
|
%
|
||||||
Average Occupancy Rates:
|
||||||||||
Mainland
|
93
|
%
|
92
|
%
|
||||||
Hawaii
|
92
|
%
|
91
|
%
|
||||||
Leasable Space (million sq. ft.) - Improved
|
||||||||||
Mainland
|
6.5
|
6.5
|
—
|
%
|
||||||
Hawaii
|
1.4
|
1.4
|
—
|
%
|
Dispositions
|
Acquisitions
|
|||||
Date
|
Property
|
Leasable sq. ft
|
Date
|
Property
|
Leasable sq. ft
|
|
3-12
|
Firestone Boulevard Building (CA)
|
28,100
|
6-12
|
Gateway at Mililani Mauka South (HI)
|
18,700
|
|
Total Dispositions
|
28,100
|
Total Acquisitions
|
18,700
|
(dollars in millions)
|
2011
|
2010
|
Change
|
|||||||
Real estate leasing segment revenue
|
$
|
99.7
|
$
|
93.8
|
6
|
%
|
||||
Real estate leasing operating costs and expenses
|
58.7
|
56.6
|
4
|
%
|
||||||
Selling, general and administrative expenses
|
1.8
|
2.1
|
-14
|
%
|
||||||
Other segment income (expense)
|
0.1
|
0.2
|
-50
|
%
|
||||||
Segment operating profit
|
39.3
|
35.3
|
11
|
%
|
||||||
Operating profit margin
|
39.4
|
%
|
37.6
|
%
|
||||||
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 (HI)
|
28,100
|
6-11
|
Union Bank Office Building (WA)
|
84,000
|
6-11
|
Arbor Park Shopping Center (TX)
|
139,500
|
9-11
|
Issaquah Office Center (WA)
|
146,900
|
9-11 | Wakea Business Center II (HI) | 61,500 | 9-11 | Gateway at Mililani Mauka (HI) | 5,900 |
Total Dispositions
|
229,100
|
Total Acquisitions
|
236,800
|
(dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Hawaii improved
|
$
|
—
|
$
|
22.8
|
$
|
55.2
|
||||||
Mainland improved
|
5.0
|
22.4
|
58.5
|
|||||||||
Hawaii development sales
|
8.7
|
6.7
|
5.8
|
|||||||||
Hawaii unimproved/other
|
18.5
|
7.9
|
11.5
|
|||||||||
Total real estate sales segment revenue
|
32.2
|
59.8
|
131.0
|
|||||||||
Cost of real estate development and sales
|
(11.0
|
)
|
(31.6
|
)
|
(75.3
|
)
|
||||||
Operating expenses
|
(11.4
|
)
|
(11.1
|
)
|
(11.9
|
)
|
||||||
Impairment of Santa Barbara development project
|
(5.1
|
)
|
—
|
—
|
||||||||
Impairment and equity loss related to Bakersfield joint venture
|
(4.7
|
)
|
—
|
—
|
||||||||
Earnings (loss) from joint ventures
|
(4.4
|
)
|
(7.9
|
)
|
2.0
|
|||||||
Other income (loss)
|
—
|
6.3
|
4.3
|
|||||||||
Total real estate development and sales operating profit (loss)
|
$
|
(4.4
|
)
|
$
|
15.5
|
$
|
50.1
|
|||||
Operating profit margin
|
N
|
M
|
25.9
|
%
|
38.2
|
%
|
2012
|
2011
|
2010
|
||||||||||
Proceeds from the sale of income-producing properties
(Real Estate Sales Segment)
|
$
|
8.9
|
$
|
45.5
|
$
|
117.1
|
||||||
Real Estate Leasing revenue (Real Estate Leasing Segment)
|
1.2
|
3.8
|
11.5
|
|||||||||
Gain on sale of income-producing properties
|
$
|
4.0
|
$
|
22.5
|
$
|
48.6
|
||||||
Real Estate Leasing operating profit
|
0.7
|
2.3
|
6.9
|
|||||||||
Total operating profit before taxes
|
4.7
|
24.8
|
55.5
|
|||||||||
Income tax expense
|
1.9
|
9.9
|
20.1
|
|||||||||
Income from discontinued operations
|
$
|
2.8
|
$
|
14.9
|
$
|
35.4
|
(dollars in millions)
|
2012
|
2011
|
Change
|
|||||||
Revenue
|
$
|
182.3
|
$
|
157.5
|
16
|
%
|
||||
Operating profit (loss)
|
$
|
20.8
|
$
|
22.2
|
-6
|
%
|
||||
Operating profit margin
|
11.4
|
%
|
14.1
|
%
|
||||||
Tons sugar produced
|
178,300
|
182,800
|
-2
|
%
|
||||||
Tons sugar sold
|
198,200
|
163,100
|
22
|
%
|
(dollars in millions)
|
2011
|
2010
|
Change
|
|||||||
Revenue
|
$
|
157.5
|
$
|
165.6
|
-5
|
%
|
||||
Operating profit (loss)
|
$
|
22.2
|
$
|
6.1
|
4
|
X
|
||||
Operating profit margin
|
14.1
|
%
|
3.7
|
%
|
||||||
Tons sugar produced
|
182,800
|
171,800
|
6
|
%
|
||||||
Tons sugar sold
|
163,100
|
176,700
|
-8
|
%
|
Payment due by period
|
|||||||||||||||||||||
Contractual Obligations
|
Total
|
2013
|
2014-2015
|
2016-2017
|
Thereafter
|
||||||||||||||||
Long-term debt obligations
(including current portion)
|
(a)
|
$
|
235.5
|
$
|
15.5
|
$
|
28.3
|
$
|
43.5
|
$
|
148.2
|
||||||||||
Estimated interest on debt
|
(b)
|
95.2
|
13.9
|
24.6
|
20.6
|
36.1
|
|||||||||||||||
Purchase obligations
|
(c)
|
15.1
|
15.1
|
—
|
—-
|
—
|
|||||||||||||||
Post-retirement obligations
|
(d)
|
7.6
|
0.8
|
1.8
|
1.8
|
3.2
|
|||||||||||||||
Non-qualified benefit obligations
|
(e)
|
6.2
|
0.2
|
0.8
|
3.8
|
1.4
|
|||||||||||||||
Operating lease obligations
|
(f)
|
12.1
|
2.4
|
2.8
|
1.2
|
5.7
|
|||||||||||||||
Total
|
$
|
371.7
|
$
|
47.9
|
$
|
58.3
|
$
|
70.9
|
$
|
194.6
|
|
(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 2013.
|
|
(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, 2012 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 $3.2 million noted in the column labeled “Thereafter” comprises estimated benefit payments for 2018 through 2022. 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 three non-qualified plans. The $1.4 million noted in the column labeled “Thereafter” comprises estimated benefit payments for 2018 through 2022. 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 space and equipment under non-cancelable, long-term lease arrangements that do not transfer the rights and risks of ownership to A&B. These amounts are further described in Note 8 to the Consolidated Financial Statements.
|
Property Type
|
2012
Vacancy Rate
|
Average Asking Rent Per Square Foot Per Month (NNN)
at December 31, 2012
|
Retail
|
4.6%
|
$3.24
|
Industrial
|
3.8%
|
$0.96
|
Office
|
13.0%
|
$1.57
|
Expected Fiscal Year of Repayment as of December 31, 2012 (dollars in millions)
|
||||||||||||||||||||||
Fair Value at
|
||||||||||||||||||||||
December 31,
|
||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
Thereafter
|
Total
|
2012
|
|||||||||||||||
Fixed rate
|
$
|
15.5
|
$
|
14.3
|
$
|
14.0
|
$
|
14.0
|
$
|
24.5
|
$
|
148.2
|
$
|
230.5
|
244.0
|
|||||||
Average interest rate
|
6.14
|
%
|
6.12
|
%
|
6.12
|
%
|
6.09
|
%
|
6.01
|
%
|
5.67
|
%
|
5.93
|
%
|
||||||||
Variable rate
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
5.0
|
$
|
—
|
$
|
5.0
|
5.0
|
|||||||
Average interest rate*
|
—
|
%
|
—
|
—
|
—
|
1.92
|
%
|
—
|
1.92
|
%
|
Page
|
||||
Report of Independent Registered Public Accounting Firm
|
55
|
|||
Consolidated Statements of Income
|
56
|
|||
Consolidated Statements of Comprehensive Income
|
57
|
|||
Consolidated Balance Sheets
|
58
|
|||
Consolidated Statements of Cash Flows
|
59
|
|||
Consolidated Statements of Shareholders’ Equity
|
60
|
|||
Notes to Consolidated Financial Statements
|
61
|
|||
1.
|
Background and Basis of Presentation
|
61
|
||
2.
|
Significant Accounting Policies
|
62
|
||
3.
|
Related Party Transactions
|
68
|
||
4.
|
Discontinued Operations
|
69
|
||
5.
|
Investments in Affiliates
|
69
|
||
6.
|
Property
|
71
|
||
7.
|
Notes Payable and Long-Term Debt
|
72
|
||
8.
|
Leases – The Company as Lessee
|
73
|
||
9
|
Leases – The Company as Lessor
|
73
|
||
10.
|
Employee Benefit Plans
|
74
|
||
11.
|
Income Taxes
|
81
|
||
12.
|
Share-Based Awards
|
83
|
||
13.
|
Commitments and Contingencies
|
86
|
||
14.
|
Operating Segments
|
89
|
||
15.
|
Quarterly Information (Unaudited)
|
92
|
Year Ended December 31,
|
||||||||||
2012
|
2011
|
2010
|
||||||||
Operating Revenue:
|
||||||||||
Real estate leasing
|
$
|
99.4
|
$
|
95.9
|
$
|
82.4
|
||||
Real estate sales
|
15.0
|
14.3
|
13.8
|
|||||||
Agribusiness
|
182.3
|
157.5
|
165.6
|
|||||||
Total operating revenue
|
296.7
|
267.7
|
261.8
|
|||||||
Operating Costs and Expenses:
|
||||||||||
Cost of real estate leasing
|
57.2
|
57.5
|
52.4
|
|||||||
Cost of real estate sales
|
5.2
|
8.7
|
6.8
|
|||||||
Cost of agribusiness goods and services
|
161.0
|
135.0
|
164.2
|
|||||||
Selling, general and administrative
|
37.7
|
32.7
|
37.3
|
|||||||
Gain on sale of agricultural parcel
|
(7.3
|
)
|
—
|
—
|
||||||
Gain on charitable donation of appreciated land
|
(9.4
|
)
|
—
|
—
|
||||||
Impairment of real estate assets (Santa Barbara)
|
5.1
|
—
|
—
|
|||||||
Separation costs
|
6.8
|
—
|
—
|
|||||||
Total operating costs and expenses
|
256.3
|
233.9
|
260.7
|
|||||||
Operating Income
|
40.4
|
33.8
|
1.1
|
|||||||
Other Income and (Expense):
|
||||||||||
Agriculture disaster relief payment
|
—
|
—
|
4.9
|
|||||||
Income (loss) related to real estate and joint ventures
|
(4.4
|
)
|
(1.8
|
)
|
4.6
|
|||||
Impairment and equity losses related to Bakersfield joint venture
|
(4.7
|
)
|
—
|
—
|
||||||
Interest income and other
|
0.1
|
0.3
|
2.7
|
|||||||
Interest expense
|
(14.9
|
)
|
(17.1
|
)
|
(17.3
|
)
|
||||
Income (Loss) From Continuing Operations Before Income Taxes
|
16.5
|
15.2
|
(4.0
|
)
|
||||||
Income tax expense (benefit)
|
(1.2
|
)
|
6.6
|
(1.7
|
)
|
|||||
Income (Loss) From Continuing Operations
|
17.7
|
8.6
|
(2.3
|
)
|
||||||
Income from discontinued operations, net of income taxes (Note 4)
|
2.8
|
14.9
|
35.4
|
|||||||
Net Income
|
$
|
20.5
|
$
|
23.5
|
$
|
33.1
|
||||
Basic Earnings per Share of Common Stock:
|
||||||||||
Continuing operations
|
$
|
0.41
|
$
|
0.20
|
$
|
(0.05
|
)
|
|||
Discontinued operations
|
0.07
|
0.35
|
0.83
|
|||||||
Net income
|
$
|
0.48
|
$
|
0.55
|
$
|
0.78
|
||||
Diluted Earnings per Share of Common Stock:
|
||||||||||
Continuing operations
|
$
|
0.41
|
$
|
0.20
|
$
|
(0.05
|
)
|
|||
Discontinued operations
|
0.07
|
0.35
|
0.83
|
|||||||
Net income
|
$
|
0.48
|
$
|
0.55
|
$
|
0.78
|
||||
Weighted Average Number of Shares Outstanding:
|
||||||||||
Basic
|
42.6
|
42.4
|
42.4
|
|||||||
Diluted
|
42.9
|
42.4
|
42.4
|
Year Ended December 31,
|
||||||||||
2012
|
2011
|
2010
|
||||||||
Net Income
|
$
|
20.5
|
$
|
23.5
|
$
|
33.1
|
||||
Other Comprehensive Income (loss), Net of Tax:
|
||||||||||
Defined benefit pension plans:
|
|
|||||||||
Net gain/ prior service cost(a)
|
(3.7
|
)
|
(11.8
|
)
|
(3.6
|
)
|
||||
Less: amortization of net loss/prior service cost included in net periodic pension cost(a)
|
4.1
|
3.4
|
7.3
|
|||||||
Other Comprehensive Income (loss)
|
0.4
|
(8.4
|
)
|
3.7
|
||||||
Comprehensive Income
|
$
|
20.9
|
$
|
15.1
|
$
|
36.8
|
(a)
|
Net of taxes of $(2.3) million and $2.6 million for 2012, ($7.6) million and $2.4 million for 2011, and ($2.2) million and $3.6 million for 2010 in deferred taxes related to net gain/prior service cost and amortization of net loss/prior service cost, respectively.
|
Year Ended December 31,
|
||||||||||
2012
|
2011
|
2010
|
||||||||
Cash Flows from Operating Activities:
|
||||||||||
Net income
|
$
|
20.5
|
$
|
23.5
|
$
|
33.1
|
||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||||
Depreciation and amortization
|
35.1
|
34.8
|
35.2
|
|||||||
Deferred income taxes
|
(6.3
|
)
|
(0.9
|
)
|
2.1
|
|||||
Gains on asset transactions, net of impairment losses
|
(14.8
|
)
|
(33.2
|
)
|
(54.4
|
)
|
||||
Gain from receipt of insurance proceeds
|
—
|
—
|
(1.1
|
)
|
||||||
Share-based expense
|
5.4
|
4.8
|
4.9
|
|||||||
Equity in (income) loss of affiliates, net of distributions
|
8.4
|
8.4
|
(2.0
|
)
|
||||||
Changes in operating assets and liabilities:
|
||||||||||
Accounts receivable
|
0.1
|
3.7
|
(1.9
|
)
|
||||||
Inventories
|
12.8
|
(6.2
|
)
|
5.9
|
||||||
Prepaid expenses and other assets
|
(10.0
|
)
|
(4.3
|
)
|
(8.2
|
)
|
||||
Accrued pension and postretirement benefits
|
4.2
|
6.4
|
14.0
|
|||||||
Accounts payable
|
(1.5
|
)
|
(2.6
|
)
|
0.3
|
|||||
Accrued and other liabilities
|
(14.2
|
)
|
(16.6
|
)
|
(10.2
|
)
|
||||
Real estate developments held for sale:
|
||||||||||
Real estate inventory sales
|
8.4
|
6.4
|
5.5
|
|||||||
Expenditures for real estate inventory
|
(37.2
|
)
|
(13.8
|
)
|
(21.6
|
)
|
||||
Net cash provided by operations
|
10.9
|
10.4
|
1.6
|
|||||||
Cash Flows from Investing Activities:
|
||||||||||
Capital expenditures for property and developments
|
(45.4
|
)
|
(20.2
|
)
|
(23.5
|
)
|
||||
Proceeds from investment tax credits and grants related to renewable energy projects
|
7.5
|
—
|
—
|
|||||||
Proceeds from disposal of income-producing property and other assets
|
2.4
|
14.2
|
32.5
|
|||||||
Loans to affiliate
|
—
|
—
|
20.0
|
|||||||
Payments for purchases of investments in affiliates
|
(17.5
|
)
|
(28.0
|
)
|
(100.7
|
)
|
||||
Proceeds from investments in affiliates
|
2.9
|
7.9
|
12.9
|
|||||||
Net cash used in investing activities
|
(50.1
|
)
|
(26.1
|
)
|
(58.8
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||||
Proceeds from issuance of long-term debt
|
134.0
|
147.0
|
134.0
|
|||||||
Payments of long-term debt and deferred financing costs
|
(257.2
|
)
|
(145.9
|
)
|
(78.7
|
)
|
||||
Proceeds from (payments on) line-of-credit agreement, net
|
(6.0
|
)
|
1.1
|
(3.6
|
)
|
|||||
Distributions to Alexander & Baldwin Holdings, Inc.(a)
|
(26.7
|
)
|
(53.1
|
)
|
(52.2
|
)
|
||||
Contributions from Alexander & Baldwin Holdings, Inc.(a)
|
172.7
|
72.8
|
54.2
|
|||||||
Proceeds from issuance of capital stock and other
|
11.8
|
—
|
—
|
|||||||
Net cash provided by financing activities
|
28.6
|
21.9
|
53.7
|
|||||||
Cash and Cash Equivalents:
|
||||||||||
Net increase (decrease) for the year
|
(10.6
|
)
|
6.2
|
(3.5
|
)
|
|||||
Balance, beginning of year
|
11.7
|
5.5
|
9.0
|
|||||||
Balance, end of year
|
$
|
1.1
|
$
|
11.7
|
$
|
5.5
|
||||
Other Cash Flow Information:
|
||||||||||
Interest paid, net of amounts capitalized
|
$
|
14.9
|
$
|
16.9
|
$
|
16.8
|
||||
Income taxes paid
|
$
|
(2.0
|
)
|
$
|
(26.0
|
)
|
$
|
(3.8
|
)
|
|
Non-cash Activities:
|
||||||||||
Contribution of land and development assets to Waihonua joint venture
|
$
|
24.2
|
$
|
—
|
$
|
—
|
||||
Debt assumed in real estate purchase
|
$
|
—
|
$
|
—
|
$
|
6.7
|
||||
Real estate received in settlement of a mortgage note
|
$
|
—
|
$
|
—
|
$
|
8.4
|
||||
Capital expenditures included in accounts payable and accrued expenses
|
$
|
12.2
|
$
|
6.8
|
$
|
4.2
|
||||
Tax-deferred property sales
|
$
|
18.8
|
$
|
44.7
|
$
|
120.0
|
||||
Tax-deferred property purchases
|
$
|
(9.4
|
)
|
$
|
(39.1
|
)
|
$
|
(148.4
|
)
|
|
Conversion of net investment of A&B Holdings into common stock
|
$
|
926.3
|
$
|
—
|
$
|
—
|
Accumulated
|
||||||||||||||||||||||||
Common
|
Other
|
|||||||||||||||||||||||
Stock
|
Compre-
|
|||||||||||||||||||||||
Stated
|
Net
|
hensive
|
Retained
|
|||||||||||||||||||||
Shares
|
Value
|
Investment
|
Loss
|
Earnings
|
Total
|
|||||||||||||||||||
Balance, January 1, 2010
|
—
|
$
|
—
|
$
|
689.7
|
$
|
(42.9
|
)
|
$
|
—
|
$
|
646.8
|
||||||||||||
Net income
|
—
|
—
|
33.1
|
—
|
—
|
33.1
|
||||||||||||||||||
Other comprehensive income, net of tax (a):
|
||||||||||||||||||||||||
Defined benefit plans:
|
||||||||||||||||||||||||
Net gain/prior service (cost)
|
—
|
—
|
—
|
(3.6
|
)
|
—
|
(3.6
|
)
|
||||||||||||||||
Less: Amortization of net loss/prior service cost
|
—
|
—
|
—
|
7.3
|
—
|
7.3
|
||||||||||||||||||
Contribution from Alexander & Baldwin Holdings, Inc.-net
|
—
|
—
|
5.0
|
—
|
—
|
5.0
|
||||||||||||||||||
Balance, December 31, 2010
|
—
|
—
|
727.8
|
(39.2
|
)
|
—
|
688.6
|
|||||||||||||||||
Net income
|
—
|
—
|
23.5
|
—
|
—
|
23.5
|
||||||||||||||||||
Other comprehensive income, net of tax (a):
|
||||||||||||||||||||||||
Defined benefit plans:
|
||||||||||||||||||||||||
Net gain/prior service (cost)
|
—
|
—
|
—
|
(11.8
|
)
|
—
|
(11.8
|
)
|
||||||||||||||||
Less: Amortization of net loss/prior service cost
|
—
|
—
|
—
|
3.4
|
—
|
3.4
|
||||||||||||||||||
Contribution from Alexander & Baldwin Holdings, Inc.-net
|
—
|
—
|
22.1
|
—
|
—
|
22.1
|
||||||||||||||||||
Balance, December 31, 2011
|
—
|
—
|
773.4
|
(47.6
|
)
|
—
|
725.8
|
|||||||||||||||||
Net income
|
—
|
—
|
(1.6
|
)
|
—
|
22.1
|
20.5
|
|||||||||||||||||
Other comprehensive income, net of tax (a):
|
||||||||||||||||||||||||
Defined benefit plans:
|
||||||||||||||||||||||||
Net gain/prior service (cost)
|
—
|
—
|
—
|
(3.7
|
)
|
—
|
(3.7
|
)
|
||||||||||||||||
Less: Amortization of net loss/prior service cost
|
—
|
—
|
—
|
4.1
|
—
|
4.1
|
||||||||||||||||||
Contribution from Alexander & Baldwin Holdings, Inc.-net
|
—
|
—
|
154.5
|
—
|
—
|
154.5
|
||||||||||||||||||
Conversion of net investment of Alexander & Baldwin Holdings, Inc. into common stock
|
42.4
|
926.3
|
(926.3
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Share-based compensation
|
—
|
2.1
|
—
|
—
|
—
|
2.1
|
||||||||||||||||||
Shares issued, net
|
0.5
|
10.2
|
—
|
—
|
(0.3
|
)
|
9.9
|
|||||||||||||||||
Excess tax benefit from share-based awards
|
—
|
1.2
|
—
|
—
|
—
|
1.2
|
||||||||||||||||||
Balance, December 31, 2012
|
42.9
|
$
|
939.8
|
$
|
—
|
$
|
(47.2
|
)
|
$
|
21.8
|
$
|
914.4
|
(a)
|
Net of $(2.3) million and $2.6 million for 2012, ($7.6) million and $2.4 million for 2011, ($2.2) million and $3.6 million for 2010, in deferred taxes related to net gain/prior service cost and amortization of net loss/prior service cost, respectively.
|
Balance at
Beginning of year
|
Provision for bad debt
|
Write-offs
and
Other
|
Balance at
End of Year
|
|
2012
|
$1.7
|
$0.2
|
$(0.3)
|
$1.6
|
2011
|
$1.4
|
$0.9
|
$(0.6)
|
$1.7
|
2010
|
$1.7
|
$0.5
|
$(0.8)
|
$1.4
|
2012
|
2011
|
||||||||
Sugar inventories
|
$
|
3.9
|
$
|
16.1
|
|||||
Materials and supplies inventories
|
19.6
|
20.2
|
|||||||
Total
|
$
|
23.5
|
$
|
36.3
|
Classification
|
Range of Life (in years)
|
Buildings
|
10 to 40
|
Water, power and sewer systems
|
5 to 50
|
Machinery and equipment
|
2 to 35
|
Other property improvements
|
3 to 35
|
2012
|
2011
|
|||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Cost
|
Amortization
|
Cost
|
Amortization
|
|||||||||||||||||||||
Amortized intangible assets:
|
||||||||||||||||||||||||
In-place leases
|
$
|
18.7
|
$
|
(11.8
|
)
|
$
|
18.4
|
$
|
(9.3
|
)
|
||||||||||||||
Other
|
7.2
|
(5.3
|
)
|
7.1
|
(4.4
|
)
|
||||||||||||||||||
Total assets
|
$
|
25.9
|
$
|
(17.1
|
)
|
$
|
25.5
|
$
|
(13.7
|
)
|
Estimated
Amortization
|
|||
2013
|
$
|
2.3
|
|
2014
|
1.7
|
||
2015
|
1.2
|
||
2016
|
1.0
|
||
2017
|
0.6
|
2012
|
2011
|
2010
|
|||||
Denominator for basic EPS - weighted average shares outstanding
|
42.6
|
42.4
|
42.4
|
||||
Effect of dilutive securities:
|
|||||||
Outstanding stock options and restricted stock units
|
0.3
|
—
|
—
|
||||
Denominator for diluted EPS - weighted average shares outstanding
|
42.9
|
42.4
|
42.4
|
2012
|
2011
|
2010
|
||||||||||
Unrealized components of benefit plans:
|
||||||||||||
Pension plans
|
$
|
(48.6
|
)
|
$
|
(48.7
|
)
|
$
|
(37.7
|
)
|
|||
Postretirement plans
|
1.4
|
1.4
|
0.6
|
|||||||||
Non-qualified benefit plans
|
—
|
(0.3
|
)
|
(2.1
|
)
|
|||||||
Accumulated other comprehensive loss
|
$
|
(47.2
|
)
|
$
|
(47.6
|
)
|
$
|
(39.2
|
)
|
2012
|
2011
|
2010
|
||||||||||
Vessel management services expenses
|
$
|
(2.0
|
)
|
$
|
(4.0
|
)
|
$
|
(3.8
|
)
|
|||
Lease income from affiliate
|
2.1
|
4.4
|
3.8
|
|||||||||
Equipment and repair services income and other
|
1.4
|
2.7
|
2.7
|
|||||||||
Related party revenue, net
|
$
|
1.5
|
$
|
3.1
|
$
|
2.7
|
2012
|
2011
|
2010
|
||||||||||
Proceeds from the sale of income-producing properties
(Real Estate Sales Segment)
|
$
|
8.9
|
$
|
45.5
|
$
|
117.1
|
||||||
Real Estate Leasing revenue (Real Estate Leasing Segment)
|
1.2
|
3.8
|
11.5
|
|||||||||
Gain on sale of income-producing properties
|
$
|
4.0
|
$
|
22.5
|
$
|
48.6
|
||||||
Real Estate Leasing operating profit
|
0.7
|
2.3
|
6.9
|
|||||||||
Total operating profit before taxes
|
4.7
|
24.8
|
55.5
|
|||||||||
Income tax expense
|
1.9
|
9.9
|
20.1
|
|||||||||
Income from discontinued operations
|
$
|
2.8
|
$
|
14.9
|
$
|
35.4
|
||||||
Basic earnings per share
|
$
|
0.07
|
$
|
0.35
|
$
|
0.83
|
||||||
Diluted earnings per share
|
$
|
0.07
|
$
|
0.35
|
$
|
0.83
|
2012
|
2011
|
||||||||||||
Current assets
|
$
|
23.7
|
$
|
21.3
|
|||||||||
Noncurrent assets
|
600.9
|
611.7
|
|||||||||||
Total assets
|
$
|
624.6
|
$
|
633.0
|
|||||||||
|
|||||||||||||
Current liabilities
|
$
|
9.3
|
$
|
17.7
|
|||||||||
Noncurrent liabilities
|
120.2
|
111.7
|
|||||||||||
Total liabilities
|
$
|
129.5
|
$
|
129.4
|
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating revenue
|
$
|
29.8
|
$
|
20.1
|
$
|
29.7
|
||||||
Operating costs and expenses
|
32.5
|
32.5
|
23.2
|
|||||||||
Operating (loss) income
|
$
|
(2.7
|
)
|
$
|
(12.4
|
)
|
$
|
6.5
|
||||
Income (loss) from continuing operations
|
$
|
(11.5
|
)
|
$
|
(15.1
|
)
|
$
|
6.7
|
||||
Net income (loss)
|
$
|
(11.5
|
)
|
$
|
(15.1
|
)
|
$
|
6.7
|
Total Fair Value Measurement as of Year End
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Other Observable Inputs (Level 2)
|
Significant Un-observable Inputs
(Level 3)
|
Total Loss for the Year
|
||||||||||||||
Year Ended December 31, 2012:
|
||||||||||||||||||
Santa Barbara landholdings
|
$
|
5.9
|
$
|
—
|
$
|
—
|
$
|
5.9
|
$
|
5.1
|
||||||||
Bakersfield (CA) joint venture*
|
7.0
|
—
|
—
|
7.0
|
4.7
|
|||||||||||||
Total
|
$
|
12.9
|
$
|
—
|
$
|
—
|
$
|
12.9
|
$
|
9.8
|
||||||||
Year Ended December 31, 2011:
|
||||||||||||||||||
Waiawa joint venture
|
$
|
1.6
|
$
|
—
|
$
|
—
|
$
|
1.6
|
$
|
6.4
|
||||||||
Year Ended December 31, 2010
|
||||||||||||||||||
Santa Barbara landholdings
|
$
|
11.0
|
$
|
—
|
$
|
—
|
$
|
11.0
|
$
|
1.9
|
December 31,
|
|||||||||
|
2012
|
|
2011
|
||||||
Buildings
|
|
$
|
553.5
|
|
|
$
|
556.1
|
||
Land
|
|
254.8
|
|
|
253.5
|
||||
Machinery and equipment
|
|
200.2
|
|
|
193.7
|
||||
Water, power and sewer systems
|
|
134.9
|
|
|
121.1
|
||||
Other property improvements
|
|
83.0
|
|
|
67.6
|
||||
Vessel
|
|
7.1
|
|
|
6.3
|
||||
Subtotal
|
1,233.5
|
1,198.3
|
|||||||
Accumulated depreciation
|
(394.8
|
)
|
(367.7
|
)
|
|||||
Property - net
|
|
$
|
838.7
|
|
|
$
|
830.6
|
2012
|
2011
|
|||||||
Revolving Credit loans, (2.07% for 2012 and 1.24% for 2011)
|
$
|
5.0
|
$
|
112.0
|
||||
Term Loans:
|
||||||||
6.90%, payable through 2020
|
90.0
|
100.0
|
||||||
5.55%, payable through 2017
|
50.0
|
50.0
|
||||||
5.53%, payable through 2016
|
37.5
|
41.7
|
||||||
5.56%, payable through 2016
|
25.0
|
25.0
|
||||||
4.10%, payable through 2012
|
—
|
4.0
|
||||||
6.20%, payable through 2013, secured by Deere Valley Center
|
10.1
|
10.3
|
||||||
6.38%, payable through 2017, secured by Midstate 99 Distribution Ctr.
|
8.3
|
8.2
|
||||||
5.50%, payable through 2014, secured by Little Cottonwood Center
|
6.3
|
6.5
|
||||||
5.88%, payable through 2014, secured by Midstate 99 Distribution Ctr.
|
3.3
|
3.3
|
||||||
0.00%, payable through 2012
|
—
|
0.7
|
||||||
Total debt
|
235.5
|
361.7
|
||||||
Less current portion
|
(15.5
|
)
|
(34.5
|
)
|
||||
Long-term debt
|
$
|
220.0
|
$
|
327.2
|
Operating
Leases
|
||||
2013
|
$
|
2.4
|
||
2014
|
2.1
|
|||
2015
|
0.7
|
|||
2016
|
0.6
|
|||
2017
|
0.6
|
|||
Thereafter
|
5.7
|
|||
Total minimum lease payments
|
$
|
12.1
|
2012
|
2011
|
|||||||
Leased property - real estate
|
$
|
844.3
|
$
|
843.9
|
||||
Less accumulated depreciation
|
(130.8
|
)
|
(114.2
|
)
|
||||
Property under operating leases - net
|
$
|
713.5
|
$
|
729.7
|
2012
|
2011
|
2010
|
||||||||||
Minimum rentals
|
$
|
74.3
|
$
|
74.3
|
$
|
70.3
|
||||||
Contingent rentals (based on sales volume)
|
2.8
|
2.0
|
1.9
|
|||||||||
Total
|
$
|
77.1
|
$
|
76.3
|
$
|
72.2
|
Operating
Leases
|
||||
2013
|
$
|
71.3
|
||
2014
|
67.0
|
|||
2015
|
56.9
|
|||
2016
|
44.4
|
|||
2017
|
30.6
|
|||
Thereafter
|
125.6
|
|||
Total
|
$
|
395.8
|
Target
|
2012
|
2011
|
|||||||
Domestic equity securities
|
53
|
%
|
50
|
%
|
59
|
%
|
|||
International equity securities
|
15
|
%
|
14
|
%
|
14
|
%
|
|||
Debt securities
|
22
|
%
|
18
|
%
|
17
|
%
|
|||
Real estate
|
10
|
%
|
5
|
%
|
6
|
%
|
|||
Other and cash
|
-
|
-
|
13
|
%
|
4
|
%
|
|||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
Fair Value Measurements as of
|
|||||||||||||||
December 31, 2012
|
|||||||||||||||
Total
|
Quoted Prices in Active Markets (Level 1)
|
Significant Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
||||||||||||
Asset Category
|
|||||||||||||||
Cash
|
$
|
12.7
|
$
|
12.7
|
$
|
—
|
$
|
—
|
|||||||
Equity securities:
|
|||||||||||||||
U.S. large-cap
|
47.6
|
47.6
|
—
|
—
|
|||||||||||
U.S. mid- and small-cap
|
23.6
|
23.6
|
—
|
—
|
|||||||||||
International large-cap
|
16.0
|
5.8
|
10.2
|
—
|
|||||||||||
Emerging market equity
|
4.1
|
—
|
4.1
|
—
|
|||||||||||
Fixed income securities:
|
|||||||||||||||
U.S. Treasuries
|
0.8
|
—
|
0.8
|
—
|
|||||||||||
Investment grade U.S. corporate bonds
|
1.9
|
—
|
1.9
|
—
|
|||||||||||
High-yield U.S. corporate bonds
|
6.1
|
—
|
6.1
|
—
|
|||||||||||
Emerging market bonds
|
4.1
|
—
|
4.1
|
—
|
|||||||||||
Mortgage-backed securities and other
|
12.5
|
—
|
12.5
|
—
|
|||||||||||
Other types of investments:
|
|||||||||||||||
Real estate partnership interests
|
7.8
|
—
|
—
|
7.8
|
|||||||||||
Private equity partnership interests (a)
|
0.7
|
—
|
—
|
0.7
|
|||||||||||
Managed futures fund
|
3.5
|
—
|
3.5
|
—
|
|||||||||||
Insurance contracts
|
0.9
|
—
|
—
|
0.9
|
|||||||||||
Total
|
$
|
142.3
|
$
|
89.7
|
$
|
43.2
|
$
|
9.4
|
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
|
$
|
5.3
|
$
|
5.3
|
$
|
—
|
$
|
—
|
|||||||
Equity securities:
|
|||||||||||||||
U.S. large-cap
|
52.1
|
52.1
|
—
|
—
|
|||||||||||
U.S. mid- and small-cap
|
24.1
|
24.1
|
—
|
—
|
|||||||||||
International large-cap
|
14.1
|
14.1
|
—
|
—
|
|||||||||||
Emerging market equity
|
3.8
|
3.8
|
—
|
—
|
|||||||||||
Fixed income securities:
|
|||||||||||||||
U.S. Treasuries
|
0.3
|
—
|
0.3
|
—
|
|||||||||||
Municipal bonds
|
0.1
|
—
|
0.1
|
—
|
|||||||||||
Investment grade U.S. corporate bonds
|
1.5
|
—
|
1.5
|
—
|
|||||||||||
High-yield U.S. corporate bonds
|
4.9
|
—
|
4.9
|
—
|
|||||||||||
Mortgage-backed securities and other
|
15.7
|
—
|
15.7
|
—
|
|||||||||||
Other types of investments:
|
|||||||||||||||
Real estate partnership interests
|
7.4
|
—
|
—
|
7.4
|
|||||||||||
Private equity partnership interests (a)
|
0.8
|
—
|
—
|
0.8
|
|||||||||||
Insurance contracts
|
0.7
|
—
|
—
|
0.7
|
|||||||||||
Total
|
$
|
130.8
|
$
|
99.4
|
$
|
22.5
|
$
|
8.9
|
(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, 2011
|
$
|
6.6
|
$
|
1.1
|
$
|
0.7
|
$
|
8.4
|
|||||||
Actual return on plan assets:
|
|||||||||||||||
Assets held at the reporting date
|
1.0
|
—
|
—
|
1.0
|
|||||||||||
Assets sold during the period
|
0.2
|
—
|
—
|
0.2
|
|||||||||||
Purchases, sales and settlements
|
(0.4
|
)
|
(0.3
|
)
|
—
|
(0.7
|
)
|
||||||||
Ending balance, December 31, 2011
|
7.4
|
0.8
|
0.7
|
8.9
|
|||||||||||
Actual return on plan assets:
|
|||||||||||||||
Assets held at the reporting date
|
0.7
|
—
|
—
|
0.7
|
|||||||||||
Assets sold during the period
|
0.3
|
0.3
|
—
|
0.6
|
|||||||||||
Purchases, sales and settlements
|
(0.6
|
)
|
(0.4
|
)
|
0.2
|
(0.8
|
)
|
||||||||
Ending balance, December 31, 2012
|
$
|
7.8
|
$
|
0.7
|
$
|
0.9
|
$
|
9.4
|
Pension Benefits
|
Other Post-retirement Benefits
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Change in Benefit Obligation
|
||||||||||||||||
Benefit obligation at beginning of year
|
$
|
173.6
|
$
|
165.8
|
$
|
11.4
|
$
|
12.8
|
||||||||
Service cost
|
2.4
|
3.4
|
0.1
|
0.2
|
||||||||||||
Interest cost
|
8.2
|
9.3
|
0.5
|
0.7
|
||||||||||||
Plan participants’ contributions
|
—
|
—
|
1.0
|
1.0
|
||||||||||||
Actuarial (gain) loss
|
15.4
|
15.2
|
(0.3
|
)
|
(1.3
|
)
|
||||||||||
Benefits paid
|
(10.0
|
)
|
(9.2
|
)
|
(1.8
|
)
|
(2.0
|
)
|
||||||||
Special or contractual termination benefits
|
0.1
|
— |
—
|
—
|
||||||||||||
Amendments
|
—
|
(10.9
|
)
|
—
|
—
|
|||||||||||
Benefit obligation at end of year
|
$
|
189.7
|
$
|
173.6
|
$
|
10.9
|
$
|
11.4
|
||||||||
Change in Plan Assets
|
||||||||||||||||
Fair value of plan assets at beginning of year
|
$
|
130.8
|
$
|
147.4
|
$
|
—
|
$
|
—
|
||||||||
Actual return on plan assets
|
18.9
|
(7.4
|
)
|
—
|
—
|
|||||||||||
Employer contributions
|
2.6
|
—
|
—
|
—
|
||||||||||||
Benefits paid
|
(10.0
|
)
|
(9.2
|
)
|
—
|
—
|
||||||||||
Fair value of plan assets at end of year
|
$
|
142.3
|
$
|
130.8
|
$
|
—
|
$
|
—
|
||||||||
Funded Status and Recognized Liability
|
$
|
(47.4
|
)
|
$
|
(42.8
|
)
|
$
|
(10.9
|
)
|
$
|
(11.4
|
)
|
Pension Benefits
|
Other Post-retirement Benefits
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Non-current assets
|
$
|
1.4
|
$
|
1.4
|
$
|
—
|
$
|
—
|
||||||||
Current liabilities
|
—
|
—
|
(0.8
|
)
|
(1.0
|
)
|
||||||||||
Non-current liabilities
|
(48.8
|
)
|
(44.2
|
)
|
(10.1
|
)
|
(10.4
|
)
|
||||||||
Total
|
$
|
(47.4
|
)
|
$
|
(42.8
|
)
|
$
|
(10.9
|
)
|
$
|
(11.4
|
)
|
||||
Net loss (gain) (net of taxes)
|
$
|
53.0
|
$
|
53.6
|
$
|
(1.4
|
)
|
$
|
(0.8
|
)
|
||||||
Unrecognized prior service credit (net of taxes)
|
(4.4
|
)
|
(4.9
|
)
|
—
|
—
|
||||||||||
Total
|
$
|
48.6
|
$
|
48.7
|
$
|
(1.4
|
)
|
$
|
(0.8
|
)
|
2012
|
2011
|
|||||||
Projected benefit obligation
|
$
|
181.0
|
$
|
165.9
|
||||
Accumulated benefit obligation
|
$
|
178.4
|
$
|
163.5
|
||||
Fair value of plan assets
|
$
|
132.2
|
$
|
121.7
|
Pension Benefits
|
Other Post-retirement Benefits
|
||||||||||||||||||||||
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
||||||||||||||||||
Components of Net Periodic Benefit Cost
|
|||||||||||||||||||||||
Service cost
|
$
|
2.4
|
$
|
3.4
|
$
|
3.0
|
$
|
0.1
|
$
|
0.2
|
$
|
0.2
|
|||||||||||
Interest cost
|
8.2
|
9.3
|
9.2
|
0.5
|
0.7
|
0.7
|
|||||||||||||||||
Expected return on plan assets
|
(10.5
|
)
|
(11.7
|
)
|
(10.8
|
)
|
—
|
—
|
—
|
||||||||||||||
Amortization of net loss (gain)
|
7.9
|
4.8
|
4.6
|
(0.2
|
)
|
—
|
(0.2
|
)
|
|||||||||||||||
Amortization of prior service cost (credit)
|
(0.8
|
)
|
0.6
|
0.6
|
—
|
—
|
—
|
||||||||||||||||
Recognition of loss on special termination benefit
|
0.1
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net periodic benefit cost
|
7.3
|
6.4
|
6.6
|
0.4
|
0.9
|
0.7
|
|||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (net of tax)
|
|||||||||||||||||||||||
Net loss (gain)
|
7.0
|
21.0
|
1.2
|
(0.4
|
)
|
(0.8
|
)
|
0.7
|
|||||||||||||||
Amortization of unrecognized (loss) gain
|
(7.9
|
)
|
(3.0
|
)
|
(2.8
|
)
|
0.3
|
—
|
(0.5
|
)
|
|||||||||||||
Prior service credit
|
—
|
(6.7
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Amortization of prior service cost (credit)
|
0.8
|
(0.3
|
)
|
(0.4
|
)
|
—
|
—
|
—
|
|||||||||||||||
Total recognized in other comprehensive income
|
(0.1
|
)
|
11.0
|
(2.0
|
)
|
(0.1
|
)
|
(0.8
|
)
|
0.2
|
|||||||||||||
Total recognized in net periodic benefit cost and
|
|||||||||||||||||||||||
other comprehensive income
|
$
|
7.2
|
$
|
17.4
|
$
|
4.6
|
$
|
0.3
|
$
|
0.1
|
$
|
0.9
|
|||||||||||
Pension Benefits
|
Other Post-retirement Benefits
|
||||||||||||||||||||||
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
||||||||||||||||||
Weighted Average Assumptions:
|
|||||||||||||||||||||||
Discount rate
|
4.10
|
%
|
4.80
|
%
|
5.75
|
%
|
4.10
|
%
|
4.90
|
%
|
5.75
|
%
|
|||||||||||
Expected return on plan assets
|
8.25
|
%
|
8.25
|
%
|
8.25
|
%
|
—
|
—
|
—
|
||||||||||||||
Rate of compensation increase
|
3.00
|
%
|
4.00
|
%
|
4.00
|
%
|
3.00
|
%
|
4.00
|
%
|
4.00
|
%
|
|||||||||||
Initial health care cost trend rate
|
8.00
|
%
|
9.00
|
%
|
10.00
|
%
|
|||||||||||||||||
Ultimate rate
|
4.50
|
%
|
5.00
|
%
|
5.00
|
%
|
|||||||||||||||||
Year ultimate rate is reached
|
202
|
0
|
201
|
6
|
201
|
6
|
Other Post-retirement Benefits
|
|||||||||||||||||||||||
One Percentage Point
|
|||||||||||||||||||||||
Increase
|
Decrease
|
||||||||||||||||||||||
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
||||||||||||||||||
Effect on total of service and interest cost components
|
$
|
—
|
$
|
—
|
$
|
0.1
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||||
Effect on post-retirement benefit obligation
|
$
|
0.6
|
$
|
0.5
|
$
|
0.7
|
$
|
(0.5
|
)
|
$
|
(0.5
|
)
|
$
|
(0.6
|
)
|
Pension
|
Non-qualified
|
Post-retirement
|
||||||||||||||||
Year
|
Benefits
|
Plan Benefits
|
Benefits
|
|||||||||||||||
2013
|
$
|
9.8
|
$
|
0.2
|
$
|
0.8
|
||||||||||||
2014
|
10.0
|
0.1
|
0.9
|
|||||||||||||||
2015
|
10.2
|
0.7
|
0.9
|
|||||||||||||||
2016
|
10.5
|
3.7
|
0.9
|
|||||||||||||||
2017
|
10.7
|
0.1
|
0.9
|
|||||||||||||||
2018-2022
|
58.0
|
1.4
|
3.2
|
2012
|
2011
|
2010
|
||||||||||
Current:
|
||||||||||||
Federal
|
$
|
9.8
|
$
|
12.8
|
$
|
5.5
|
||||||
State
|
1.8
|
3.0
|
1.1
|
|||||||||
Current
|
11.6
|
15.8
|
6.6
|
|||||||||
Deferred:
|
||||||||||||
Federal
|
(10.6
|
)
|
(6.4
|
)
|
(7.1
|
)
|
||||||
State
|
(2.2
|
)
|
(2.8
|
)
|
(1.2
|
)
|
||||||
Deferred
|
(12.8
|
)
|
(9.2
|
)
|
(8.3
|
)
|
||||||
Total continuing operations tax expense (benefit)
|
$
|
(1.2
|
)
|
$
|
6.6
|
$
|
(1.7
|
)
|
2012
|
2011
|
2010
|
||||||||||
Computed federal income tax expense
|
$
|
5.8
|
$
|
5.3
|
$
|
(1.4
|
)
|
|||||
State income taxes
|
0.3
|
1.1
|
(0.3
|
)
|
||||||||
Charitable contribution
|
(3.5
|
)
|
—
|
(0.8
|
)
|
|||||||
Solar tax credits
|
(2.9
|
)
|
—
|
—
|
||||||||
Other—net
|
(0.9
|
)
|
0.2
|
0.8
|
||||||||
Income tax expense (benefit)
|
$
|
(1.2
|
)
|
$
|
6.6
|
$
|
(1.7
|
)
|
2012
|
2011
|
|||||||
Deferred tax assets:
|
||||||||
Benefit plans
|
$
|
32.2
|
$
|
29.5
|
||||
Capitalized costs
|
17.8
|
15.8
|
||||||
Charitable contribution
|
4.0
|
0.6
|
||||||
Basis differences for property and equipment
|
3.6
|
8.0
|
||||||
Joint ventures and other investments
|
5.5
|
4.7
|
||||||
Impairment and amortization
|
4.1
|
—
|
||||||
Insurance and other reserves
|
5.4
|
5.7
|
||||||
Other
|
3.7
|
1.1
|
||||||
Total deferred tax assets
|
76.3
|
65.4
|
||||||
Deferred tax liabilities:
|
||||||||
Tax-deferred gains on real estate transactions
|
211.4
|
213.0
|
||||||
FASB 13 rent income and advanced rent
|
8.1
|
6.9
|
||||||
Other
|
1.9
|
6.1
|
||||||
Total deferred tax liabilities
|
221.4
|
226.0
|
||||||
Net deferred tax liability
|
$
|
145.1
|
$
|
160.6
|
Balance at January 1, 2010
|
$
|
2.7
|
||
Additions for tax positions of prior years
|
—
|
|||
Additions for tax positions of current year
|
—
|
|||
Reductions for tax positions of prior years
|
(0.2
|
)
|
||
Reductions for lapse of statute of limitations
|
—
|
|||
Balance at December 31, 2010
|
2.5
|
|||
Additions for tax positions of prior years
|
—
|
|||
Additions for tax positions of current year
|
—
|
|||
Reductions for tax positions of prior years
|
—
|
|||
Reductions for lapse of statute of limitations
|
—
|
|||
Balance at December 31, 2011
|
2.5
|
|||
Additions for tax positions of prior years
|
—
|
|||
Additions for tax positions of current year
|
—
|
|||
Reductions for tax positions of prior years
|
|
(2.5
|
)
|
|
Reductions for lapse of statute of limitations
|
—
|
|||
Balance at December 31, 2012
|
$
|
—
|
Stock price
|
$25.17
|
||
Expected volatility
|
38.6%
|
||
Expected term (in years)
|
1.5
|
||
Risk-free interest rate
|
0.3%
|
||
Dividend yield
|
—
|
|
•
|
Expected volatility was primarily determined using the historical volatility of A&B peers’ common stock over the expected term.
|
|
•
|
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.
|
|
•
|
The expected dividend yield is based on the Company’s current dividend policy.
|
Weighted
|
Weighted
|
|||||||||
Average
|
Average
|
Aggregate
|
||||||||
2012
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||
Plan
|
Price
|
Life
|
Value
|
|||||||
Outstanding, January 1, 2012
|
—
|
—
|
||||||||
Replacement awards granted upon Separation
|
2,410.1
|
$20.01
|
||||||||
Exercised
|
(687.4
|
)
|
$21.51
|
|||||||
Forfeited and expired
|
—
|
—
|
||||||||
Outstanding, December 31, 2012
|
1,722.7
|
$19.41
|
5.8
|
$16,419
|
||||||
Vested or expected to vest
|
1,705.5
|
$19.41
|
5.8
|
$16,255
|
||||||
Exercisable, December 31, 2012
|
1,231.8
|
$19.36
|
4.9
|
$11,806
|
2012
|
||||||||
Plan
|
Weighted
|
|||||||
Restricted
|
Average
|
|||||||
Stock
|
Grant-Date
|
|||||||
Units
|
Fair Value
|
|||||||
Outstanding, January 1, 2012
|
—
|
—
|
||||||
Replacement awards granted upon Separation
|
316.8
|
$20.23
|
||||||
Granted
|
13.2
|
$25.30
|
||||||
Vested
|
—
|
—
|
||||||
Canceled
|
—
|
—
|
||||||
Outstanding, December 31, 2012
|
330.0
|
$20.43
|
2012
|
2011
|
2010
|
||||||||||
Share-based expense (net of estimated forfeitures):
|
||||||||||||
Stock options
|
$
|
1.1
|
$
|
1.2
|
$
|
1.0
|
||||||
Incremental share-based compensation cost related to Separation
|
1.2
|
—
|
—
|
|||||||||
Non-vested stock & restricted stock units
|
3.1
|
3.6
|
3.9
|
|||||||||
Total share-based expense
|
5.4
|
4.8
|
4.9
|
|||||||||
Total recognized tax benefit
|
(1.8
|
)
|
(1.2
|
)
|
(1.6
|
)
|
||||||
Share-based expense (net of tax)
|
$
|
3.6
|
$
|
3.6
|
$
|
3.3
|
||||||
Cash received upon option exercise
|
$
|
20.9
|
$
|
6.1
|
$
|
6.0
|
||||||
Intrinsic value of options exercised
|
$
|
13.4
|
$
|
3.5
|
$
|
1.9
|
||||||
Tax benefit realized upon option exercise
|
$
|
2.3
|
$
|
1.3
|
$
|
0.7
|
||||||
Fair value of stock vested
|
$
|
4.2
|
$
|
5.5
|
$
|
3.3
|
Standby letters of credit
|
(a)
|
$
|
12.8
|
||
Bonds
|
(b)
|
$
|
36.1
|
|
(a)
|
Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit has been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon.
|
|
(b)
|
Represents construction bonds related to real estate projects in Hawaii. 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.
|
For the Year
|
2012
|
2011
|
2010
|
|||||||||
Revenue:
|
||||||||||||
Real Estate:
|
||||||||||||
Leasing
|
$
|
100.6
|
$
|
99.7
|
$
|
93.8
|
||||||
Development and Sales
|
32.2
|
59.8
|
131.0
|
|||||||||
Less amounts reported in discontinued operations
1
|
(10.1
|
)
|
(49.3
|
)
|
(128.6
|
)
|
||||||
Agribusiness
2
|
182.3
|
157.5
|
165.6
|
|||||||||
Reconciling Items
3
|
(8.3
|
)
|
—
|
—
|
||||||||
Total revenue
|
$
|
296.7
|
$
|
267.7
|
$
|
261.8
|
||||||
Operating Profit
:
|
||||||||||||
Real Estate:
|
||||||||||||
Leasing
|
$
|
41.6
|
$
|
39.3
|
$
|
35.3
|
||||||
Development and Sales
4
|
(4.4
|
)
|
15.5
|
50.1
|
||||||||
Less amounts reported in discontinued operations
1
|
(4.7
|
)
|
(24.8
|
)
|
(55.5
|
)
|
||||||
Agribusiness
2
|
20.8
|
22.2
|
6.1
|
|||||||||
Total operating profit
|
53.3
|
52.2
|
36.0
|
|||||||||
Interest expense, net
|
(14.9
|
)
|
(17.1
|
)
|
(17.3
|
)
|
||||||
General corporate expenses
|
(15.1
|
)
|
(19.9
|
)
|
(22.7
|
)
|
||||||
Separation costs
|
(6.8
|
)
|
—
|
—
|
||||||||
Income from continuing operations before income taxes
|
16.5
|
15.2
|
(4.0
|
)
|
||||||||
Income taxes
|
(1.2
|
)
|
6.6
|
(1.7
|
)
|
|||||||
Income from continuing operations
|
17.7
|
8.6
|
(2.3
|
)
|
||||||||
Discontinued operations
|
2.8
|
14.9
|
35.4
|
|||||||||
Net income
|
$
|
20.5
|
$
|
23.5
|
$
|
33.1
|
||||||
|
1
|
Prior year amounts restated for amounts treated as discontinued operations.
|
|
2
|
Includes a $4.9 million gain in 2010 related to an agriculture disaster relief payment for drought experienced in prior years.
|
|
|
3
|
Represent the sale of a 286-acre agricultural parcel in the third quarter of 2012 classified as “Gain on sale of agricultural parcel” in the consolidated statement of income, but reflected as revenue for segment reporting purposes.
|
|
4
|
The Real Estate Development and Sales segment includes approximately ($8.3) million equity in loss, ($7.9) million equity in loss and $2.0 million in equity in earnings from its various real estate joint ventures for 2012, 2011 and 2010, respectively. Included in operating profit are noncash impairment and equity losses of $9.8 million (Bakersfield joint venture and Santa Barbara real estate project) in 2012 and $6.4 million (Waiawa real estate joint venture) in 2011.
|
As of December 31:
|
2012
|
2011
|
2010
|
|||||||||
Identifiable Assets:
|
||||||||||||
Real Estate:
|
||||||||||||
Real estate leasing
|
$
|
771.3
|
$
|
772.0
|
$
|
761.3
|
||||||
Real estate development and sales
5
|
504.8
|
451.5
|
420.3
|
|||||||||
Agribusiness
|
149.9
|
157.8
|
153.3
|
|||||||||
Other
|
11.3
|
5.3
|
6.6
|
|||||||||
Total assets
|
$
|
1,437.3
|
$
|
1,386.6
|
$
|
1,341.5
|
||||||
Capital Expenditures:
|
||||||||||||
Real Estate:
|
||||||||||||
Real estate leasing
6
|
$
|
23.1
|
$
|
43.6
|
$
|
164.7
|
||||||
Real estate development and sales
7
|
—
|
5.2
|
0.1
|
|||||||||
Agribusiness
8
|
31.7
|
10.5
|
6.8
|
|||||||||
Other
|
—
|
—
|
0.3
|
|||||||||
Total capital expenditures
9
|
$
|
54.8
|
$
|
59.3
|
$
|
171.9
|
||||||
Depreciation and Amortization:
|
||||||||||||
Real Estate:
|
||||||||||||
Real estate leasing
1
|
$
|
22.0
|
$
|
21.6
|
$
|
20.3
|
||||||
Real estate development and sales
|
0.2
|
0.2
|
0.2
|
|||||||||
Agribusiness
|
11.6
|
11.9
|
12.7
|
|||||||||
Other
|
1.3
|
1.1
|
2.0
|
|||||||||
Total depreciation and amortization
|
$
|
35.1
|
$
|
34.8
|
$
|
35.2
|
|
5
|
The Real Estate Development and Sales segment includes approximately $319.7 million, $290.1 million, and $274.8 million related to its investment in various real estate joint ventures as of December 31, 2012, 2011, and 2010, respectively.
|
|
6
|
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.
|
|
7
|
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 and excludes investment in joint ventures classified as Cash Flows from Investing Activities. Operating cash flows for expenditures related to real estate developments were $37.2 million, $13.8 million, and $21.6 million for 2012, 2011, and 2010, respectively.
Investments in joint ventures were $17.4 million, $27.9 million, and $100.5 million in 2012, 2011, and 2010, respectively.
|
|
8
|
Includes $21.8 million of capital related to the Company’s Port Allen solar project before tax credits.
|
|
9
|
Total capital expenditures for segment disclosure purposes includes tax-deferred property purchases of $9.4 million, $39.1 million, and $148.4 million for the years ended 2012, 2011, and 2010, respectively, that are treated as non-cash transactions, and therefore, not included in Capital Expenditures for properties and developments on the Consolidated Statements of Cash Flows.
|
2012
|
||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
|||||||||||||
Revenue:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
$
|
25.5
|
$
|
25.5
|
$
|
24.9
|
$
|
24.7
|
||||||||
Sales
|
11.4
|
7.0
|
8.4
|
5.4
|
||||||||||||
Less amounts reported in discontinued operations
1
|
(9.3
|
)
|
(0.3
|
)
|
(0.3
|
)
|
(0.2
|
)
|
||||||||
Agribusiness
|
13.6
|
39.9
|
67.9
|
60.9
|
||||||||||||
Reconciling Items
2
|
—
|
—
|
(8.3
|
)
|
—
|
|||||||||||
Total Revenue
|
$
|
41.2
|
$
|
72.1
|
$
|
92.6
|
$
|
90.8
|
||||||||
Operating Profit (Loss):
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
10.7
|
10.5
|
10.2
|
10.2
|
||||||||||||
Sales
3
|
0.9
|
(9.9
|
)
|
3.3
|
1.3
|
|||||||||||
Less amounts reported in discontinued operations
1
|
(4.1
|
)
|
(0.2
|
)
|
(0.2
|
)
|
(0.2
|
)
|
||||||||
Agribusiness
|
3.5
|
7.0
|
9.1
|
1.2
|
||||||||||||
Total operating profit
|
11.0
|
7.4
|
22.4
|
12.5
|
||||||||||||
Interest Expense
|
(4.1
|
)
|
(4.0
|
)
|
(3.6
|
)
|
(3.2
|
)
|
||||||||
General Corporate Expenses
|
(4.7
|
)
|
(4.0
|
)
|
(3.0
|
)
|
(3.4
|
)
|
||||||||
Separation costs
|
(1.7
|
)
|
(4.4
|
)
|
(0.7
|
)
|
—
|
|||||||||
Income (Loss) From Continuing Operations before
Income Taxes
|
0.5
|
(5.0
|
)
|
15.1
|
5.9
|
|||||||||||
Income tax expense (benefit)
|
0.2
|
(0.5
|
)
|
1.8
|
(2.7
|
)
|
||||||||||
Income (Loss) From Continuing Operations
|
0.3
|
(4.5
|
)
|
13.3
|
8.6
|
|||||||||||
Discontinued Operations
1
|
2.5
|
0.1
|
0.1
|
0.1
|
||||||||||||
Net Income
|
$
|
2.8
|
$
|
(4.4
|
)
|
$
|
13.4
|
$
|
8.7
|
|||||||
Earnings Per Share:
|
||||||||||||||||
Basic
|
$
|
0.07
|
$
|
(0.10
|
)
|
$
|
0.31
|
$
|
0.20
|
|||||||
Diluted
|
$
|
0.07
|
$
|
(0.10
|
)
|
$
|
0.31
|
$
|
0.20
|
1
|
See Note 4 for discussion of discontinued operations
.
|
2
|
Represent the sale of a 286-acre agricultural parcel in the third quarter of 2012 classified as “Gain on sale of agricultural parcel” in the consolidated statement of income, but reflected as revenue for segment reporting purposes.
|
3
|
The Real Estate Development and Sales segment operating profit for the second quarter of 2012 includes noncash impairment and equity losses of $9.8 million related to the Company’s Bakersfield and Santa Barbara real estate projects.
|
2011
|
||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
|||||||||||||
Revenue:
|
||||||||||||||||
Real Estate:
|
||||||||||||||||
Leasing
|
$
|
26.0
|
$
|
25.1
|
$
|
24.4
|
$
|
24.2
|
||||||||
Sales
|
19.7
|
28.0
|
9.3
|
2.8
|
||||||||||||
Less amounts reported in discontinued operations
1
|
(15.7
|
)
|
(23.5
|
)
|
(9.2
|
)
|
(0.9
|
)
|
||||||||
Agribusiness
|
15.8
|
43.4
|
37.1
|
61.2
|
||||||||||||
Reconciling Items
|
—
|
—
|
—
|
—
|
||||||||||||
Total Revenue
|
$
|
45.8
|
$
|
73.0
|
$
|
61.6
|
$
|
87.3
|
||||||||
Operating Profit (Loss):
|
||||||||||||||||
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
|
(7.4
|
)
|
(9.4
|
)
|
(7.3
|
)
|
(0.7
|
)
|
||||||||
Agribusiness
|
2.6
|
8.5
|
3.8
|
7.3
|
||||||||||||
Total operating profit
|
17.8
|
20.1
|
9.2
|
5.1
|
||||||||||||
Interest Expense
|
(4.3
|
)
|
(4.2
|
)
|
(4.4
|
)
|
(4.2
|
)
|
||||||||
General Corporate Expenses
|
(4.1
|
)
|
(4.1
|
)
|
(4.7
|
)
|
(7.0
|
)
|
||||||||
Income (Loss) From Continuing Operations before
Income Taxes
|
9.4
|
11.8
|
0.1
|
(6.1
|
)
|
|||||||||||
Income tax expense (benefit)
|
4.1
|
5.1
|
—
|
(2.6
|
)
|
|||||||||||
Income (Loss) From Continuing Operations
|
5.3
|
6.7
|
0.1
|
(3.5
|
)
|
|||||||||||
Discontinued Operations
1
|
4.5
|
5.6
|
4.4
|
0.4
|
||||||||||||
Net Income
|
$
|
9.8
|
$
|
12.3
|
$
|
4.5
|
$
|
(3.1
|
)
|
|||||||
Earnings Per Share:
|
||||||||||||||||
Basic
|
$
|
0.23
|
$
|
0.29
|
$
|
0.10
|
$
|
(0.07
|
)
|
|||||||
Diluted
|
$
|
0.23
|
$
|
0.29
|
$
|
0.10
|
$
|
(0.07
|
)
|
1
|
See Note 4 for discussion of discontinued operations
.
|
|
•
|
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.
|
Initial Cost
|
Costs Capitalized
Subsequent
to Acquisition
|
Gross Amounts at
Which Carried at
Close of Period
|
||||||||||||||||||||||||||||||||||||||
Description
|
Encum-
brances (1)
|
Land
|
Buildings
and
Improve-
ments
|
Improve-
ments
|
Carrying Costs
|
Land
|
Buildings
and
Improve-ments
|
Total
|
Accumulated
Depreciation (2)
|
Date of
Construction
|
Date
Acquired/
Completed
|
|||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Real Estate Leasing Segment
|
||||||||||||||||||||||||||||||||||||||||
Industrial
|
||||||||||||||||||||||||||||||||||||||||
Komohana Industrial Park (HI)
|
$
|
—
|
|
$
|
25.2
|
|
$
|
10.8
|
|
$
|
0.4
|
$
|
—
|
|
$
|
25.2
|
|
$
|
11.2
|
|
$
|
36.4
|
|
$
|
(0.8
|
)
|
1990
|
2010
|
||||||||||||
P&L Warehouse (HI)
|
—
|
—
|
—
|
1.0
|
—
|
—
|
1.0
|
1.0
|
(0.6
|
)
|
1970
|
|||||||||||||||||||||||||||||
Port Allen (HI)
|
—
|
—
|
0.7
|
1.9
|
—
|
—
|
2.6
|
2.6
|
(3.2
|
)
|
1985, 1993
|
|||||||||||||||||||||||||||||
Waipio Industrial (HI)
|
—
|
19.6
|
7.7
|
0.3
|
—
|
19.6
|
8.0
|
27.6
|
(1.0
|
)
|
1988-1989
|
2009
|
||||||||||||||||||||||||||||
Activity Distribution Center (CA)
|
—
|
9.9
|
15.1
|
1.0
|
—
|
9.9
|
16.1
|
26.0
|
(1.9
|
)
|
1991
|
2009
|
||||||||||||||||||||||||||||
Centennial Plaza (UT)
|
—
|
2.1
|
5.6
|
1.3
|
—
|
2.1
|
6.9
|
9.0
|
(1.7
|
)
|
1979
|
2003
|
||||||||||||||||||||||||||||
Heritage Business Park (TX)
|
—
|
18.8
|
74.8
|
9.5
|
—
|
18.8
|
84.3
|
103.1
|
(12.1
|
)
|
1997-2002
|
2007
|
||||||||||||||||||||||||||||
Midstate 99 Distribution Ctr. (CA)
|
11.5
|
2.7
|
29.6
|
1.1
|
—
|
2.7
|
30.7
|
33.4
|
(3.4
|
)
|
2002-2008
|
2008
|
||||||||||||||||||||||||||||
Northpoint Industrial (CA)
|
—
|
3.5
|
6.9
|
0.8
|
—
|
3.5
|
7.7
|
11.2
|
(1.1
|
)
|
1991
|
2009
|
||||||||||||||||||||||||||||
Republic Distribution Center (TX)
|
—
|
0.3
|
15.8
|
2.7
|
—
|
0.3
|
18.5
|
18.8
|
(2.1
|
)
|
2007
|
2008
|
||||||||||||||||||||||||||||
Savannah Logistics Park (GA)
|
—
|
7.1
|
37.9
|
8.4
|
—
|
7.1
|
46.3
|
53.4
|
(5.0
|
)
|
2008
|
2008
|
||||||||||||||||||||||||||||
Sparks Business Center (NV)
|
—
|
3.2
|
17.2
|
2.8
|
—
|
3.2
|
20.0
|
23.2
|
(5.9
|
)
|
1996-1998
|
2002
|
||||||||||||||||||||||||||||
Office :
|
||||||||||||||||||||||||||||||||||||||||
Mililani South (HI)
|
—
|
7.5
|
3.5
|
0.1
|
—
|
7.5
|
3.6
|
11.1
|
(0.1
|
)
|
1992 & 2006
|
2012
|
||||||||||||||||||||||||||||
Judd Building (HI)
|
—
|
1.0
|
2.1
|
1.0
|
—
|
1.0
|
3.1
|
4.1
|
(1.5
|
)
|
1898/1979
|
2000
|
||||||||||||||||||||||||||||
Kahului Office Building (HI)
|
—
|
1.0
|
0.4
|
3.4
|
—
|
1.0
|
3.8
|
4.8
|
(6.1
|
)
|
1974
|
|||||||||||||||||||||||||||||
Kahului Office Center (HI)
|
—
|
—
|
—
|
5.0
|
—
|
—
|
5.0
|
5.0
|
(3.0
|
)
|
1991
|
|||||||||||||||||||||||||||||
Lono Center (HI)
|
—
|
—
|
1.4
|
0.8
|
—
|
—
|
2.2
|
2.2
|
(1.1
|
)
|
1973
|
1991
|
||||||||||||||||||||||||||||
Maui Clinic Building (HI)
|
—
|
—
|
—
|
0.5
|
—
|
—
|
0.5
|
0.5
|
(0.1
|
)
|
1958
|
2008
|
||||||||||||||||||||||||||||
Stangenwald Building (HI)
|
—
|
1.8
|
1.0
|
1.1
|
—
|
1.8
|
2.1
|
3.9
|
(1.1
|
)
|
1901/1980
|
1996
|
||||||||||||||||||||||||||||
Concorde Commerce Center (AZ)
|
—
|
3.9
|
20.9
|
3.1
|
—
|
3.9
|
24.0
|
27.9
|
(3.6
|
)
|
1998
|
2006
|
||||||||||||||||||||||||||||
Deer Valley Financial Center (AZ)
|
10.1
|
3.4
|
19.2
|
2.6
|
—
|
3.4
|
21.8
|
25.2
|
(4.5
|
)
|
2001
|
2005
|
||||||||||||||||||||||||||||
2890 Gateway Oaks (CA)
|
—
|
1.7
|
10.8
|
1.1
|
—
|
1.7
|
11.9
|
13.6
|
(2.1
|
)
|
1999
|
2006
|
||||||||||||||||||||||||||||
Issaquah Office Center (WA)
|
—
|
11.6
|
9.9
|
—
|
—
|
11.6
|
9.9
|
21.5
|
(0.3
|
)
|
1994
|
2011
|
||||||||||||||||||||||||||||
Ninigret Office X and XI (TX)
|
—
|
3.1
|
17.7
|
2.6
|
—
|
3.1
|
20.3
|
23.4
|
(4.5
|
)
|
1999 & 2002
|
2006
|
||||||||||||||||||||||||||||
1800/ 1820 Preston Park (TX)
|
—
|
4.5
|
19.9
|
3.3
|
—
|
4.5
|
23.2
|
27.7
|
(4.2
|
)
|
1997-1998
|
2006
|
||||||||||||||||||||||||||||
2868 Prospect Park (CA)
|
—
|
2.9
|
18.1
|
7.2
|
—
|
2.9
|
25.3
|
28.2
|
(10.7
|
)
|
1998
|
1998
|
||||||||||||||||||||||||||||
San Pedro Plaza (TX)
|
—
|
4.6
|
11.9
|
7.4
|
—
|
4.6
|
19.3
|
23.9
|
(8.2
|
)
|
1985
|
1998, 2000
|
||||||||||||||||||||||||||||
Union Bank (WA)
|
—
|
3.4
|
10.5
|
0.4
|
—
|
3.4
|
10.9
|
14.3
|
(0.5
|
)
|
1993 & 2008
|
2011
|
||||||||||||||||||||||||||||
Retail :
|
||||||||||||||||||||||||||||||||||||||||
Gateway at Mililani Mauka N. (HI)
|
—
|
3.2
|
0.8
|
7.0
|
—
|
3.2
|
7.8
|
11.0
|
—
|
2008
|
2011
|
|||||||||||||||||||||||||||||
Gateway at Mililani Mauka S. (HI)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1992 & 2006
|
2012
|
|||||||||||||||||||||||||||||
Kahului Shopping Center (HI)
|
—
|
—
|
—
|
2.4
|
—
|
—
|
2.4
|
2.4
|
(1.3
|
)
|
1951
|
|||||||||||||||||||||||||||||
Kaneohe Bay Shopping Ctr. (HI)
|
—
|
—
|
13.4
|
1.7
|
—
|
—
|
15.1
|
15.1
|
(4.3
|
)
|
1971
|
2001
|
||||||||||||||||||||||||||||
Kunia Shopping Center (HI)
|
—
|
2.7
|
10.6
|
1.4
|
—
|
2.7
|
12.0
|
14.7
|
(2.7
|
)
|
2004
|
2002
|
||||||||||||||||||||||||||||
Lahaina Square (HI)
|
—
|
4.6
|
3.7
|
0.2
|
—
|
4.6
|
3.9
|
8.5
|
(0.2
|
)
|
1973
|
2010
|
||||||||||||||||||||||||||||
Lanihau Marketplace (HI)
|
—
|
9.4
|
13.2
|
0.4
|
—
|
9.4
|
13.6
|
23.0
|
(0.9
|
)
|
1987
|
2010
|
||||||||||||||||||||||||||||
Maui Mall (HI)
|
—
|
|
0.1
|
|
9.2
|
|
16.6
|
—
|
|
0.1
|
|
25.8
|
|
25.9
|
|
(14.9
|
)
|
1971
|
||||||||||||||||||||||
Port Allen Marina Ctr. (HI)
|
—
|
—
|
3.4
|
1.0
|
—
|
—
|
4.4
|
4.4
|
(1.6
|
)
|
2002
|
|||||||||||||||||||||||||||||
Waipio Shopping Center (HI)
|
—
|
24.0
|
7.6
|
0.3
|
—
|
24.0
|
7.9
|
31.9
|
(0.7
|
)
|
1986-2004
|
2009
|
||||||||||||||||||||||||||||
Broadlands Marketplace (CO)
|
—
|
5.9
|
4.7
|
1.3
|
—
|
5.9
|
6.0
|
11.9
|
(1.6
|
)
|
2002
|
2003
|
||||||||||||||||||||||||||||
Little Cottonwood Center (UT)
|
6.3
|
12.2
|
9.2
|
0.7
|
—
|
12.2
|
9.9
|
22.1
|
(0.7
|
)
|
1998-2008
|
2010
|
||||||||||||||||||||||||||||
Meadows on the Parkway (CO)
|
—
|
15.1
|
14.9
|
1.1
|
—
|
15.1
|
16.0
|
31.1
|
(1.4
|
)
|
1989
|
2010
|
||||||||||||||||||||||||||||
Rancho Temecula Town Ctr (CA)
|
—
|
18.4
|
25.1
|
3.1
|
—
|
18.4
|
28.2
|
46.6
|
(1.9
|
)
|
2007
|
2010
|
||||||||||||||||||||||||||||
Royal MacArthur Center (TX)
|
—
|
3.5
|
10.1
|
1.3
|
—
|
3.5
|
11.4
|
14.9
|
(1.8
|
)
|
2006
|
2007
|
||||||||||||||||||||||||||||
Wilshire Shopping Center (CO)
|
—
|
1.3
|
1.3
|
0.4
|
—
|
1.3
|
1.7
|
3.0
|
(0.9
|
)
|
1970
|
1997
|
||||||||||||||||||||||||||||
Other Miscellaneous
|
—
|
13.1
|
1.4
|
12.5
|
—
|
13.1
|
13.9
|
27.0
|
(8.5
|
)
|
||||||||||||||||||||||||||||||
Total
|
$
|
27.9
|
|
$
|
256.3
|
|
$
|
498.0
|
|
$
|
122.2
|
$
|
—
|
|
$
|
256.3
|
|
$
|
620.2
|
|
$
|
876.5
|
|
$
|
(133.8
|
)
|
||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Description
|
Encum-berances
|
Land
|
Buildings and Improve-ments
|
Improve-
ments
|
Carrying Costs
|
Land
|
Buildings and Improve-ments
|
Total
|
Accumulated Depreciation
|
|||||||||||||||||||||||
Real Estate Sales Segment
|
||||||||||||||||||||||||||||||||
Brydeswood
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2.0
|
$
|
—
|
|
$
|
—
|
|
$
|
2.0
|
|
$
|
2.0
|
$
|
—
|
||||||||
Maui Business Park II
|
—
|
—
|
—
|
56.1
|
—
|
—
|
56.1
|
56.1
|
—
|
|||||||||||||||||||||||
The Bluffs at Wailea (MF-11)
|
—
|
2.7
|
—
|
6.3
|
—
|
2.7
|
6.3
|
9.0
|
—
|
|||||||||||||||||||||||
The Ridge at Wailea (MF-19)
|
—
|
1.9
|
—
|
6.6
|
—
|
1.9
|
6.6
|
8.5
|
—
|
|||||||||||||||||||||||
Wailea, other
|
—
|
36.2
|
—
|
6.4
|
—
|
36.2
|
6.4
|
42.6
|
—
|
|||||||||||||||||||||||
Aina ‘O Kane
|
—
|
—
|
—
|
1.2
|
—
|
—
|
1.2
|
1.2
|
—
|
|||||||||||||||||||||||
Haliimaile
|
—
|
—
|
—
|
0.8
|
—
|
—
|
0.8
|
0.8
|
—
|
|||||||||||||||||||||||
Kahului Town Center
|
—
|
—
|
—
|
2.2
|
—
|
—
|
2.2
|
2.2
|
—
|
|||||||||||||||||||||||
Santa Barbara
|
—
|
5.9
|
—
|
—
|
—
|
5.9
|
—
|
|
5.9
|
—
|
||||||||||||||||||||||
Kai Olino
|
—
|
—
|
—
|
11.3
|
—
|
—
|
11.3
|
11.3
|
—
|
|||||||||||||||||||||||
Grove Ranch
|
—
|
—
|
—
|
1.5
|
—
|
—
|
1.5
|
1.5
|
—
|
|||||||||||||||||||||||
Waiale Community
|
—
|
—
|
—
|
1.2
|
—
|
—
|
1.2
|
1.2
|
—
|
|||||||||||||||||||||||
Other Maui landholdings
|
—
|
|
—
|
|
—
|
|
1.9
|
—
|
—
|
1.9
|
|
1.9
|
—
|
|||||||||||||||||||
Other Kauai landholdings
|
—
|
|
—
|
|
—
|
|
1.3
|
—
|
—
|
1.3
|
|
1.3
|
—
|
|||||||||||||||||||
Other Oahu landholdings
|
—
|
|
—
|
|
—
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Total
|
$
|
—
|
|
$
|
46.7
|
|
$
|
—
|
|
$
|
98.8
|
$
|
—
|
$
|
46.7
|
$
|
98.8
|
|
$
|
145.5
|
$
|
—
|
Reconciliation of Real Estate (in millions)
|
2012
|
2011
|
2010
|
|||||||||
Balance at beginning of year
|
$
|
998.5
|
$
|
964.1
|
$
|
804.4
|
||||||
Additions and improvements
|
63.2
|
70.7
|
202.9
|
|||||||||
Impairments
|
(5.1
|
)
|
—
|
—
|
||||||||
Dispositions, retirements and other adjustments
|
(34.6
|
)
|
(36.3
|
)
|
(43.2
|
)
|
||||||
Balance at end of year
|
$
|
1,022.0
|
$
|
998.5
|
$
|
964.1
|
Reconciliation of Accumulated Depreciation (in millions)
|
2012
|
2011
|
2010
|
|||||||||
Balance at beginning of year
|
$
|
115.9
|
$
|
107.2
|
$
|
102.7
|
||||||
Depreciation expense
|
18.3
|
17.9
|
16.8
|
|||||||||
Dispositions, retirements and other adjustments
|
(0.4
|
)
|
(9.2
|
)
|
(12.3
|
)
|
||||||
Balance at end of year
|
$
|
133.8
|
$
|
115.9
|
$
|
107.2
|
21.
|
Subsidiaries.
|
23.
|
Consent of Deloitte & Touche LLP dated February 28, 2013.
|
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, 2013
|
By: /s/ Stanley M. Kuriyama
|
|
Stanley M. Kuriyama, Chairman of the Board
|
||
and Chief Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ Stanley M. Kuriyama
|
Chairman of the Board
|
February 28, 2013
|
||
Stanley M. Kuriyama
|
and Chief Executive Officer
|
|||
/s/ Paul K. Ito
|
Senior Vice President,
|
February 28, 2013
|
||
Paul K. Ito
|
Chief Financial Officer, Treasurer and Controller
|
|||
/s/ W. Allen Doane
|
Director
|
February 28, 2013
|
||
W. Allen Doane
|
||||
/s/ Walter A. Dods, Jr.
|
Director
|
February 28, 2013
|
||
Walter A. Dods, Jr.
|
||||
/s/ Robert S. Harrison
|
Director
|
February 28, 2013
|
||
Robert S. Harrison
|
||||
/s/ Charles G. King
|
Director
|
February 28, 2013
|
||
Charles G. King
|
||||
/s/ Douglas M. Pasquale
|
Director
|
February 28, 2013
|
||
Douglas M. Pasquale
|
||||
/s/ Michele K. Saito
|
Director
|
February 28, 2013
|
||
Michele K. Saito
|
||||
/s/ Jeffrey N. Watanabe
|
Lead Director
|
February 28, 2013
|
||
Jeffrey N. Watanabe
|
||||
/s/ Eric K. Yeaman
|
Director
|
February 28, 2013
|
||
Eric K. Yeaman
|
Return by Mail ( x ) Pickup ( ) To:
Bilzin Sumberg Baena Price & Axelrod LLP
200 South Biscayne Boulevard, Suite 2500
Miami, Florida 33131-5340
Attn: Post-Closing Department
This document contains
47
pages
|
U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE
c/o Wells Fargo Bank, N.A.
Wells Fargo Commercial Mortgage Servicing
1901 Harrison Street, 7th Floor
Oakland, California 94612
Re: MSCI 2006-IQ11; Loan No.: 710202870
|
TNP SRT WAIANAE MALL, LLC
1900 Main Street, Suite 700
Irvine, California 92614
Attn: Tim O'Brien
Facsimile: (949) 252-0212
|
Kaplan Voekler Cunningham & Frank PLC
7 East Second Street
Richmond, Virginia 23224
Attn: D. Zachary Grabill
Facsimile: (804) 525-1798
|
A&B WAIANAE LLC
822 Bishop Street
Honolulu, Hawaii 96813
Attn: Lance Parker
Facsimile: (808) 525-8447
|
Alexander & Baldwin, LLC
822 Bishop Street
Honolulu, Hawaii 96813
Attn: Charles Loomis, Esq.
Facsimile: (808) 525-6678
|
U.S. BANK NATIONAL ASSOCIATION, A NATIONAL BANKING ASSOCIATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE UNITED STATES OF AMERICA, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY IN ITS CAPACITY AS TRUSTEE FOR MORGAN STANLEY CAPITAL I INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-IQ11
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By:
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LNR Partners, LLC, a Florida limited liability company, successor by statutory conversion to
LNR Partners, Inc., a Florida corporation, as attorney-in-fact
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TNP SRT WAIANAE MALL, LLC,
a Delaware limited liability company
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By:
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TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership, its Member
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By:
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Alexander & Baldwin, LLC,
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a Hawaii limited liability company
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Its Sole Member/Manager
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/s/ Leimomi Clark
Notary Public, State of Hawaii
Printed Name: Leimomi Clark
My commission expires: 01/30/2016
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NOTARY CERTIFICATION STATEMENT
Document Identification or Description: Note and Mortgage Assumption Agreement
Doc. Date: ___________________ or
x
Undated at time of notarization.
No. of Pages:
43
Jurisdiction: First Circuit
(in which notarial act is performed)
/s/ Leimomi Clark January 14, 2013
Signature of Notary Date of Notarization and
Certification Statement
Leimomi Clark
(Official Stamp or Seal)
Printed Name of Notary
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/s/ Leimomi Clark
Notary Public, State of Hawaii
Printed Name: Leimomi Clark
My commission expires: 01/30/2016
|
NOTARY CERTIFICATION STATEMENT
Document Identification or Description: Note and Mortgage Assumption Agreement
No. of Pages:
43
Jurisdiction: First Circuit
(in which notarial act is performed)
/s/ Leimomi Clark January 14, 2013
Signature of Notary Date of Notarization and
Certification Statement
Leimomi Clark
(Official Stamp or Seal)
Printed Name of Notary
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TNP STRATEGIC RETAIL OPERATING PARTNERSHIP, L.P.
, a Delaware limited partnership
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By:
TNP Strategic Retail Trust, Inc.,
a Maryland corporation,
its General Partner
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By:
/s/ Dee Balch
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Name:
Dee Balch
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Title:
CFO
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TNP STRATEGIC RETAIL TRUST, INC.
, a Maryland corporation
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By:
/s/ Dee Balch
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Name:
Dee Balch
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Title:
CFO
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TNP PROPERTY MANAGER, LLC
,
a Delaware limited liability company
By: Thompson National Properties, LLC,
its sole member
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By:
/s/ Anthony Thompson
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Name:
Anthony Thompson
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Title:
CEO
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/s/ Anthony Thompson
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ANTHONY THOMPSON
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ALEXANDER & BALDWIN, INC.
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822 Bishop Street
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Honolulu, Hawaii 96813
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Attn: Lance Parker
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Facsimile: (808) 525-8447
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/s/ Leimomi Clark
Notary Public, State of Hawaii
Printed Name: Leimomi Clark
My commission expires: 1/30/2016
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NOTARY CERTIFICATION STATEMENT
Document Identification or Description: Joinder By and Agreement of New Indemnitor
Doc. Date: ___________________ or
x
Undated at time of notarization.
No. of Pages: 6 Jurisdiction: First Circuit
(in which notarial act is performed)
/s/ Leimomi Clark January 14, 2013
Signature of Notary Date of Notarization and
Certification Statement
Leimomi Clark
(Official Stamp or Seal)
Printed Name of Notary
|
/s/ Leimomi Clark
Notary Public, State of Hawaii
Printed Name: Leimomi Clark
My commission expires: 01/30/2016
|
NOTARY CERTIFICATION STATEMENT
Document Identification or Description: Joinder By and Agreement of New Indemnitor
Doc. Date: ___________________ or
x
Undated at time of notarization.
No. of Pages: __
6
_
_______ Jurisdiction: First Circuit
(in which notarial act is performed)
/s/ Leimomi Clark January 14, 2013
Signature of Notary Date of Notarization and
Certification Statement
Leimomi Clark
(Official Stamp or Seal)
Printed Name of Notary
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Participant
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_______________________________________
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Award Date:
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_____________, 201___
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Number of Shares Subject to Award:
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________________ shares of Common Stock (the “Shares”)
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Vesting Schedule:
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The Shares shall vest in a series of three (3) successive equal annual installments upon Participant’s completion of each successive year of Service over the three (3)-year period measured from the Award Date. Each such installment vesting date is hereby designated a “Vesting and Issuance Date.” However, one or more Shares may be subject to accelerated vesting in accordance with the provisions of Paragraph 3 or Paragraph 5 of the form Time-Based Restricted Stock Unit Award Agreement.
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ALEXANDER & BALDWIN, INC.
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By:
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Title:
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PARTICIPANT |
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Address:
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/s/ Stanley M. Kuriyama
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Name:
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Stanley M. Kuriyama
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Title:
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President and Chief Executive Officer
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Date:
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February 28, 2013
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/s/ Paul K. Ito
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Name:
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Paul K. Ito
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Title:
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Senior Vice President, Chief Financial Officer, Controller and Treasurer
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Date:
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February 28, 2013
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