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
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(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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6
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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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11
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C.
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Natural Materials and Construction
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14
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D.
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Agribusiness
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16
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(1)
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Production
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16
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(2)
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Marketing of Sugar
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16
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(3)
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Sugar Competition and Legislation
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16
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(4)
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Land Designations and Water
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17
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(5)
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Energy
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18
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Employees and Labor Relations
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18
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Available Information
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19
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Item 1A.
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Risk Factors
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19
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Item 1B.
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Unresolved Staff Comments
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32
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Item 3.
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Legal Proceedings
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32
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Item 4.
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Mine Safety Disclosures
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33
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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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34
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Item 6.
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Selected Financial Data
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36
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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38
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Items 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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58
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Item 8.
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Financial Statements and Supplementary Data
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60
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Page
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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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105
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Item 9A.
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Controls and Procedures
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105
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A.
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Disclosure Controls and Procedures
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105
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B.
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Internal Control over Financial Reporting
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105
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Item 9B.
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Other Information
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107
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Item 10.
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Directors, Executive Officers and Corporate Governance
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108
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A.
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Directors
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108
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B.
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Executive Officers
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108
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C.
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Corporate Governance
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109
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D.
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Code of Ethics
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109
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Item 11.
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Executive Compensation
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109
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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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109
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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109
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Item 14.
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Principal Accounting Fees and Services
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109
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Item 15.
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Exhibits and Financial Statement Schedules
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110
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A.
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Financial Statements
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110
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B.
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Financial Statement Schedules
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111
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C.
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Exhibits Required by Item 601 of Regulation S-K
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114
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Signatures
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118
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Consent of Independent Registered Public Accounting Firm
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119
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A.
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Real Estate
— The Real Estate Industry consists of two segments and engages in real estate development and ownership activities, including planning, zoning, financing, constructing, purchasing, managing, leasing, selling, 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 and ground leases 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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Natural Materials and Construction —
Grace, a wholly owned subsidiary of A&B, mines, processes, and sells basalt aggregate; imports sand and aggregates for sale and use; imports and markets liquid asphalt; manufactures and markets asphaltic concrete; performs asphalt paving as prime contractor and subcontractor; manufactures and supplies precast/prestressed concrete products; and provides and markets various construction- and traffic-control-related products and services.
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C.
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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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2013 Revenue
(in millions) |
Percentage of
Total 2013 Revenue |
2013
Operating Profit (in millions) |
Percentage of
Total 2013 Operating Profit |
Key Facts
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Real Estate Leasing
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$
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110.4
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15%
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$
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43.4
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43%
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High-quality commercial portfolio consisting of 60 improved properties in Hawaii and seven Mainland states, totaling 5.1 million square feet, and over 115 acres of commercial ground leases to third parties with improved GLA.
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Real Estate Development and Sales
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423.0
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58%
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44.4
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44%
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Hawaii-focused, experienced developer with a large development pipeline encompassing over a dozen projects entitled for approximately 3,500 units. Third largest private landowner in Hawaii with nearly 89,000 acres.
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Natural Materials and Construction
(results represent the period from October 1, 2013 through December 31, 2013)
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54.9
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7%
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2.9
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3%
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Holds a leading market position in asphalt paving and in the production of asphaltic concrete and is one of the largest producers of aggregate in the State of Hawaii. This segment was acquired on October 1, 2013.
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Agribusiness
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146.1
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20%
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10.7
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10%
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Largest farmer in Hawaii and only producer of raw sugar in Hawaii, producing over 190,000 tons of sugar in 2013, and provider of approximately 5 percent and 8 percent of renewable energy on Maui and Kauai, respectively.
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Total
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$
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734.4
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100%
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$
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101.4
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100%
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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, its 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 farming and other uses, such as providing access to natural resources or hydro-electric generation capability.
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Focus on entitlement and development of core Hawaii lands:
A&B continually focuses 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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Optimize returns of A&B’s 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 identifies superior financial return potential in a new commercial asset, it may market an existing asset for sale to facilitate a 1031 tax deferred exchange into the new property. A&B is focused on opportunistically migrating its Mainland portfolio to Hawaii over time, where it believes it can generate greater incremental shareholder value over the long run, while ensuring that the portfolio continues to serve as a stable source of cash flow for A&B’s other investment activities.
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Invest in high-returning real estate opportunities in Hawaii:
In addition to development of its own lands, A&B invests 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 existing portfolio and pipeline.
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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 to meet anticipated market demand. A&B pursues 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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Leverage Vertically Integrated Business Model to Lower Costs:
Grace maintains cost benefits through a vertically integrated business model that encompasses the production of aggregate and the importation of liquid asphalt and sand. These activities help ensure that Grace has adequate access to raw materials needed to produce asphaltic concrete and, therefore, also provides for a level of cost certainty that allows Grace to compete effectively on sealed bid contracts. In addition, Grace provides and markets various construction- and traffic-control-related products and services.
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Capitalize on Strategically Located Quarry Adjacent to Fast-Growing Area on Oahu:
Grace owns one of three operating quarries on the island of Oahu, and this quarry is one of only two quarries that has suitable grade A material required for the production of hot mix asphalt. Grace's quarry is also the only quarry located adjacent to the fast-growing region on the west side of Oahu. Approximately 15,000 residential units are projected in the future and
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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, A&B has enhanced the management of field and factory at its sugar operations, resulting in improved yields in recent years. However, notwithstanding yield improvements, fluctuating sugar prices generate significant earnings volatility, and therefore, A&B continues to evaluate alternative business models that could dampen this volatility. Refer to the Company’s “Outlook” in Part II, Item 7 on page 57 for an updated discussion on the Company’s sugar pricing.
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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 often more favorable relative to other U.S. locations. In addition, the State of 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.
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•
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Extensive and irreplaceable landholdings:
A&B is the third largest private landowner in Hawaii, with 88,755 acres, primarily on Maui and Kauai, including 855 acres fully entitled for urban use, including 206 acres under commercial properties.
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High-quality commercial real estate portfolio and ground leases producing strong free cash flow:
A&B owns and manages a high-quality commercial portfolio of 60 properties in Hawaii and seven Mainland states, totaling 5.1 million square feet, and has over 115 acres of commercial land ground leased to third parties, both of which provide 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 resort residential, primary residential and commercial projects comprising more than approximately 3,500 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:
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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Infrastructure-related assets:
Grace owns over 800 acres in the state related to its quarrying operations, including 541 acres on Oahu's growing west side. Grace's Makakilo, Oahu quarry facility is nearing completion of a muti-year, $40 million capital improvement program, including three new crushing and finishing plants, which is expected to result in greater operational efficiencies and lower costs going forward. Due to the high cost of transporting aggregate, Grace’s quarry is ideally situated on Oahu's west side, which is expected to see significant growth over the next two decades. Grace also owns strategically placed asphaltic concrete plants located throughout the state, including Oahu (three locations), Maui (one location), Kauai (one location), Hawaii island (one location), and Molokai (one location).
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Experienced management team with 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 developed the world famous Wailea master-planned resort community on Maui’s
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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 $650 million in Hawaii real estate development projects outside of its legacy holdings—including four high-rise condominiums in urban Honolulu—and over $1.4 billion in the acquisition of Hawaii and Mainland commercial properties, mainly through tax-deferred property exchanges.
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•
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Leading market position:
Grace holds a leading market position in asphalt paving and in the production of asphaltic concrete and is one of the largest producers of aggregate in the State of Hawaii. Due to relatively high capital requirements needed to compete in the market, Grace’s scale provides a cost advantage relative to other competitors in the state. Grace expects to benefit from the improving Hawaii economy and the positive impact that such improvement is expected to have on spending on infrastructure and private development. For example, the condition of Hawaii’s roads, in general, and Oahu’s roads, in particular, are consistently ranked near the bottom as compared to other states and metropolitan areas, and as a result, the City and County of Honolulu administration announced an intent to increase its road maintenance budget from $100 million in 2012 to a range of $120 million to $150 million in each of the following five years.
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•
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Experienced management team:
In addition to its unique tangible assets, Grace’s assets include an experienced management team with extensive expertise in quarry management and operations, asphaltic concrete production and asphalt paving.
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•
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Vertically integrated business model:
Grace’s vertically integrated business model, which includes the mining of basalt aggregate and the importation and distribution of liquid asphalt, provides it with cost benefits at higher throughput rates, while also increasing cost certainty due to the ability to manage costs throughout the supply chain. This cost certainty allows Grace to compete effectively as an efficient, high-quality, low-cost provider. In addition, Grace provides and markets various construction- and traffic-control-related products and services.
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Location
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No. of Acres
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Maui
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66,675
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Kauai
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20,365
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Oahu
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1,440
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Molokai
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265
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Big Island
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10
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TOTAL HAWAII
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88,755
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Location
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No. of Acres
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Texas
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24
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California
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53
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Utah
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40
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Colorado
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5
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Washington
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4
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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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166
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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*
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855
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Agricultural, pasture and miscellaneous
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58,065
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Watershed/conservation
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29,835
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U.S. Mainland
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Fully entitled Urban
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166
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TOTAL
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88,921
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*
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Land is designated "fully entitled urban" when all four land use approvals described in the "Planning and Zoning" section have been obtained also includes 206 acres under commercial properties.
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Project
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Original
Acres
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Acres at
12/31/13
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Kukui’ula (HI)
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1,000
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943
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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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20
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Kai Malu (HI)
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25
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1
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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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1,070
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*
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The Company consolidates Santa Barbara Ranch for financial reporting purposes because it has determined it has a controlling financial interest in the entity.
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•
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County amendment of the County General Plan to reflect residential use;
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•
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State Land Use Commission approval to reclassify the parcel from the Agricultural district to the Urban district;
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•
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County amendment of the County Community Plan to reflect residential use; and
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County approval to rezone the property to the precise residential use desired.
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(Dollars in millions)
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Project
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Location
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Product type
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Acres at
12/31/13 |
Original planned units, saleable acres or
gross leasable square feet |
Esti-mated
project cost (6) |
A&B
net investment as of 12/31/13 (including capitalized interest) |
Estimated
substantial completion of con-struction |
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Joint ventures
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Ka Milo at Mauna Lani
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Kona, Hawaii
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Resort residential
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20
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137 units
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120
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10
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2016
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Kukui’ula
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Koloa, Kauai
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Resort residential
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943
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up to 1,500 units on 640 saleable acres
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785
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259
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2030
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Kai Malu at Wailea
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Wailea, Maui
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Resort residential
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1
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150 units
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124
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1
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2008
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Waihonua at Kewalo
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Honolulu, Oahu
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Primary residential high-rise
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2
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341 units
(340 saleable)
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210
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33
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2014
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FUTURE DEVELOPMENT
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Wholly owned
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Aina ‘O Kane
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Kahului, Maui
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Primary res./commercial
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4
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103 units
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tbd
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1
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tbd
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Brydeswood
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Kalaheo, Kauai
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Agricultural lots
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336
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(4)
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24 lots
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tbd
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2
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tbd
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Kahului Town Center
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Kahului, Maui
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Primary res./commercial
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19
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(5)
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440 units 225,000 sf
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tbd
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2
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tbd
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Kai’Olino
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Port Allen, Kauai
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Primary residential
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4
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75 units
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tbd
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11
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tbd
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Wailea SF-8
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Kihei, Maui
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Primary residential
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13
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90 units
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tbd
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2
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tbd
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Wailea MF-6
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Wailea, Maui
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Resort residential lots
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23
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60 lots
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tbd
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6
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tbd
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Wailea MF-10
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Wailea, Maui
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Resort/Commercial
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14
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tbd
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tbd
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6
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tbd
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Wailea MF-16
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Wailea, Maui
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Resort residential lots
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7
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20 lots
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tbd
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3
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tbd
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Wailea, other
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Wailea, Maui
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Various
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71
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400 - 600 units
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tbd
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16
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tbd
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Total
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491
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||||
Joint ventures
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Bakersfield
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Bakersfield, CA
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Retail
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57
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—
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—
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7
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—
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Palmdale Center
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Palmdale, CA
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Office/Industrial
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18
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—
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—
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5
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—
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Santa Barbara Ranch
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Santa Barbara, CA
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Primary residential lots
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22
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—
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—
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6
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—
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Project
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Location
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Product type
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Acres at
12/31/13 |
Planned units,
saleable acres or gross leasable square feet |
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ENTITLEMENT
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Kihei Residential
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Kihei, Maui
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Primary residential
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95
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up to 600 units
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Waiale
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Kahului, Maui
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Primary residential
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545
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up to 2,550 units
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Eleele Community
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Eleele, Kauai
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Primary residential
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260-Ph. I
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tbd
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JOINT VENTURE DEVELOPMENTS HELD FOR LEASE
|
|
|
|
|
|
Crossroads Plaza
|
Valencia, CA
|
Office/Retail
|
7
|
56,000 sf
|
(1)
|
Seven acres for Gateway at Mililani Mauka and Mililani Mauka South are included in Hawaii – commercial improved properties.
|
(2)
|
Includes 24 acres of roadways and other infrastructure that are not saleable.
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(3)
|
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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(4)
|
Brydeswood acreage is included in agricultural, pasture and miscellaneous landholdings.
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(5)
|
Kahului Town Center acreage is included in Hawaii-commercial improved properties fully entitled landholdings.
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(6)
|
Includes land cost at book value and capitalized interest, but excludes sales commissions and closing costs.
|
•
|
At the 7.4-acre MF-11 (Keala ‘O Wailea) project, A&B continues to pursue approvals for a planned joint venture development of 70 multi-family units, with construction projected to commence in 2014.
|
•
|
The 7.0-acre MF-19 parcel (Ridge at Wailea) was developed into nine residential lots, which remain available for sale.
|
•
|
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, pre-sales could commence in 2014.
|
•
|
At the 16.0-acre B-I parcel and 13.7-acre MF-10 parcel, A&B is evaluating bulk sale or development options.
|
(1)
|
The number of commercial properties located in Hawaii by island are as follows: Oahu (32), Maui (9), Kauai (5), and Big Island of Hawaii (1).
|
(2)
|
The number of commercial properties located on the Mainland are as follows: California (3), Texas (3),Utah (2), Arizona (2), Colorado (1), Washington (1), and Nevada (1).
|
Property
|
Location
|
Type
|
Leasable Area
(sq. ft.)
|
|
|
|
|
Pearl Highlands
|
Pearl City, Oahu
|
Retail
|
415,400
|
Kailua-Retail (15 properties)
|
Kailua, Oahu
|
Retail
|
317,400
|
Kailua-Industrial (6 properties)
|
Kailua, Oahu
|
Industrial
|
68,800
|
Komohana Industrial Park
|
Kapolei, Oahu
|
Industrial
|
238,300
|
Maui Mall*
|
Kahului, Maui
|
Retail
|
185,700
|
Waianae Mall
|
Waianae, Oahu
|
Retail
|
170,300
|
Waipio Industrial
|
Waipahu, Oahu
|
Industrial
|
158,400
|
Kaneohe Bay Shopping Center
|
Kaneohe, Oahu
|
Retail
|
124,300
|
Waipio Shopping Center
|
Waipahu, Oahu
|
Retail
|
113,800
|
P&L Building
|
Kahului, Maui
|
Industrial
|
104,100
|
Lanihau Marketplace
|
Kailua-Kona, Hawaii
|
Retail
|
88,300
|
Port Allen (4 buildings)
|
Port Allen, Kauai
|
Industrial/Retail
|
87,400
|
Shops at Kukui’ula
|
Poipu, Kauai
|
Retail
|
78,900
|
Kunia Shopping Center
|
Waipahu, Oahu
|
Retail
|
60,400
|
Kahului Office Building
|
Kahului, Maui
|
Office
|
58,400
|
Lahaina Square
|
Lahaina, Maui
|
Retail
|
50,200
|
Kahului Shopping Center
|
Kahului, Maui
|
Retail
|
48,700
|
Napili Plaza
|
Napili, Maui
|
Retail
|
45,100
|
Kahului Office Center
|
Kahului, Maui
|
Office
|
32,900
|
Stangenwald Building
|
Honolulu, Oahu
|
Office
|
27,100
|
Judd Building
|
Honolulu, Oahu
|
Office
|
20,200
|
Gateway at Mililani Mauka
|
Mililani, Oahu
|
Retail
|
18,900
|
Gateway at Mililani Mauka South
|
Mililani, Oahu
|
Office
|
18,700
|
Maui Clinic Building
|
Kahului, Maui
|
Office
|
16,600
|
Lono Center
|
Kahului, Maui
|
Office
|
13,400
|
Total
|
|
|
2,561,700
|
*
|
Maui Mall was sold on January 6, 2014 and proceeds were used to fund the purchase of the Kailua Portfolio under a reverse 1031 transaction.
|
Property
|
Location
|
Type
|
Leasable Area
(sq. ft.)
|
Midstate 99 Distribution Center
|
Visalia, CA
|
Industrial
|
789,100
|
Sparks Business Center
|
Sparks, NV
|
Industrial
|
396,100
|
1800 and 1820 Preston Park
|
Plano, TX
|
Office
|
198,800
|
Ninigret Office Park X and XI
|
Salt Lake City, UT
|
Office
|
185,500
|
San Pedro Plaza
|
San Antonio, TX
|
Office/Retail
|
172,000
|
2868 Prospect Park
|
Sacramento, CA
|
Office
|
162,900
|
Little Cottonwood Center
|
Sandy, UT
|
Retail
|
141,500
|
Concorde Commerce Center
|
Phoenix, AZ
|
Office
|
137,200
|
Deer Valley Financial Center
|
Phoenix, AZ
|
Office
|
126,600
|
Union Bank
|
Everett, WA
|
Office
|
84,000
|
2890 Gateway Oaks
|
Sacramento, CA
|
Office
|
58,700
|
Wilshire Shopping Center
|
Greeley, CO
|
Retail
|
46,500
|
Royal MacArthur Center
|
Dallas, TX
|
Retail
|
44,400
|
Total
|
|
|
2,543,300
|
Year of expiration
|
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) |
||||
2014
|
369,088
|
|
8.4
|
%
|
7.0
|
|
9.6
|
%
|
2015
|
751,061
|
|
17.0
|
%
|
10.8
|
|
14.8
|
%
|
2016
|
828,337
|
|
18.7
|
%
|
10.4
|
|
14.2
|
%
|
2017
|
610,490
|
|
13.8
|
%
|
10.6
|
|
14.5
|
%
|
2018
|
571,623
|
|
12.9
|
%
|
7.2
|
|
9.9
|
%
|
2019
|
361,383
|
|
8.2
|
%
|
8.5
|
|
11.6
|
%
|
2020
|
191,885
|
|
4.3
|
%
|
3.4
|
|
4.7
|
%
|
2021
|
219,403
|
|
5.0
|
%
|
4.5
|
|
6.2
|
%
|
2022
|
66,682
|
|
1.5
|
%
|
1.7
|
|
2.3
|
%
|
2023
|
123,343
|
|
2.8
|
%
|
1.9
|
|
2.6
|
%
|
2024
|
107,032
|
|
2.4
|
%
|
2.5
|
|
3.4
|
%
|
Thereafter
|
221,349
|
|
5.0
|
%
|
4.5
|
|
6.2
|
%
|
Total
|
4,421,676
|
|
100.0
|
%
|
73.0
|
|
100.0
|
%
|
(1)
|
Gross leasable area
|
(2)
|
Annual gross rent means the annualized base rent amounts of expiring leases and includes improved properties only and excludes 0.1 million square feet of month-to-month leases.
|
Year of expiration
|
Annual
gross rent expiring ($ in millions) |
Percentage
of total annual gross rent(2) |
||
Month-to-month
|
0.8
|
|
5.3
|
%
|
2014
|
1.9
|
|
12.7
|
%
|
2015
|
0.7
|
|
4.7
|
%
|
2016
|
0.8
|
|
5.3
|
%
|
2017
|
0.1
|
|
0.7
|
%
|
2018
|
0.4
|
|
2.7
|
%
|
2019
|
0.3
|
|
2.0
|
%
|
2020
|
0.8
|
|
5.3
|
%
|
2021
|
0.7
|
|
4.7
|
%
|
2022
|
0.3
|
|
2.0
|
%
|
2023
|
0.5
|
|
3.3
|
%
|
2024
|
—
|
|
0.0
|
%
|
Thereafter
|
7.7
|
|
51.3
|
%
|
Total
|
15.0
|
|
100.0
|
%
|
•
|
an inability of A&B or buyers to secure sufficient financing or insurance on favorable terms, or at all;
|
•
|
construction delays, defects, or cost overruns, which may increase project development costs;
|
•
|
an increase in commodity or construction costs, including labor costs;
|
•
|
the discovery of hazardous or toxic substances, or other environmental, culturally-sensitive, or related issues;
|
•
|
an inability to obtain, or significant delay in obtaining, zoning, 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 and pesticide use;
|
•
|
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;
|
•
|
failure to comply with food quality and safety requirements;
|
•
|
disease;
|
•
|
uncontrolled fires, including arson;
|
•
|
and weed control.
|
•
|
issuing equity securities to satisfy financing needs if the equity securities issued would represent a 50 percent or greater interest in A&B;
|
•
|
acquiring businesses or assets with equity securities if the equity securities issued would represent a 50 percent 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.
|
|
Dividends paid per share
|
|
Market Price
|
||||||||||||
|
|
|
High
|
|
Low
|
|
Close
|
||||||||
2012
|
|
|
|
|
|
|
|
||||||||
Third Quarter
|
|
|
$
|
36.43
|
|
|
$
|
23.50
|
|
|
$
|
29.53
|
|
||
Fourth Quarter
|
|
|
$
|
30.40
|
|
|
$
|
25.88
|
|
|
$
|
29.37
|
|
||
|
|
|
|
|
|
|
|
||||||||
2013
|
|
|
|
|
|
|
|
||||||||
First Quarter
|
|
|
$
|
36.86
|
|
|
$
|
28.82
|
|
|
$
|
35.75
|
|
||
Second Quarter
|
|
|
$
|
40.95
|
|
|
$
|
32.55
|
|
|
$
|
39.75
|
|
||
Third Quarter
|
|
|
$
|
46.23
|
|
|
$
|
34.32
|
|
|
$
|
36.02
|
|
||
Fourth Quarter
|
$
|
0.04
|
|
|
$
|
41.97
|
|
|
$
|
35.71
|
|
|
$
|
41.73
|
|
*
|
Under the 2013 Incentive Compensation Plan, 1,499,502 shares may be issued either as restricted stock grants, restricted stock unit grants, or stock option grants.
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Leasing
|
$
|
110.4
|
|
|
$
|
100.6
|
|
|
$
|
99.7
|
|
|
$
|
93.8
|
|
|
$
|
102.5
|
|
Development and Sales
|
423.0
|
|
|
32.2
|
|
|
59.8
|
|
|
131.0
|
|
|
125.5
|
|
|||||
Less amounts reported in discontinued operations
1
|
(369.2
|
)
|
|
(45.3
|
)
|
|
(81.9
|
)
|
|
(154.0
|
)
|
|
(159.0
|
)
|
|||||
Natural materials and construction
|
54.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Agribusiness
2
|
146.1
|
|
|
182.3
|
|
|
157.5
|
|
|
165.6
|
|
|
99.6
|
|
|||||
Reconciling Items
3
|
—
|
|
|
(8.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Revenue
|
$
|
365.2
|
|
|
$
|
261.5
|
|
|
$
|
235.1
|
|
|
$
|
236.4
|
|
|
$
|
168.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Profit (Loss)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Leasing
|
$
|
43.4
|
|
|
$
|
41.6
|
|
|
$
|
39.3
|
|
|
$
|
35.3
|
|
|
$
|
43.2
|
|
Development and Sales
4
|
44.4
|
|
|
(4.4
|
)
|
|
15.5
|
|
|
50.1
|
|
|
39.1
|
|
|||||
Less amounts reported in discontinued operations
1
|
(36.7
|
)
|
|
(21.1
|
)
|
|
(38.8
|
)
|
|
(64.6
|
)
|
|
(67.6
|
)
|
|||||
Natural materials and construction
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Agribusiness
2
|
10.7
|
|
|
20.8
|
|
|
22.2
|
|
|
6.1
|
|
|
(27.8
|
)
|
|||||
Total operating profit (loss)
|
64.7
|
|
|
36.9
|
|
|
38.2
|
|
|
26.9
|
|
|
(13.1
|
)
|
|||||
Interest expense
|
(19.1
|
)
|
|
(14.9
|
)
|
|
(17.1
|
)
|
|
(17.3
|
)
|
|
(17.0
|
)
|
|||||
General corporate expenses
|
(17.4
|
)
|
|
(15.1
|
)
|
|
(19.9
|
)
|
|
(22.7
|
)
|
|
(21.0
|
)
|
|||||
Acquisition/Separation costs
|
(4.6
|
)
|
|
(6.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Income (loss) from continuing operations before income taxes
|
23.6
|
|
|
0.1
|
|
|
1.2
|
|
|
(13.1
|
)
|
|
(51.1
|
)
|
|||||
Income tax expense (benefit)
|
8.5
|
|
|
(7.6
|
)
|
|
1.0
|
|
|
(5.0
|
)
|
|
(20.2
|
)
|
|||||
Income (loss) from continuing operations
|
15.1
|
|
|
7.7
|
|
|
0.2
|
|
|
(8.1
|
)
|
|
(30.9
|
)
|
|||||
Income from discontinued operations
|
22.3
|
|
|
12.8
|
|
|
23.3
|
|
|
41.2
|
|
|
41.8
|
|
|||||
Net Income
|
37.4
|
|
|
20.5
|
|
|
23.5
|
|
|
33.1
|
|
|
10.9
|
|
|||||
Income attributable to noncontrolling interest
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income attributable to A&B
|
$
|
36.9
|
|
|
$
|
20.5
|
|
|
$
|
23.5
|
|
|
$
|
33.1
|
|
|
$
|
10.9
|
|
1
|
Amounts recast to reflect 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 $4.2 million, $(8.3) million, ($7.9) million, and $2.0 million in equity in (loss) earnings from its various real estate joint ventures for 2013, 2012, 2011, and 2010, respectively. Equity in earnings from joint ventures in 2009 was negligible. Included in operating profit are noncash impairment and equity losses of $6.3 million related to the consolidation of The Shops at Kukui'ula in 2013, $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.
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
Identifiable Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Leasing
|
$
|
1,113.4
|
|
|
$
|
771.3
|
|
|
$
|
772.0
|
|
|
$
|
761.3
|
|
|
$
|
686.9
|
|
Development and Sales
5
|
640.9
|
|
|
504.8
|
|
|
451.5
|
|
|
420.3
|
|
|
349.0
|
|
|||||
Agribusiness
|
160.0
|
|
|
149.9
|
|
|
157.8
|
|
|
153.3
|
|
|
169.6
|
|
|||||
Natural materials and construction
|
358.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
12.2
|
|
|
11.3
|
|
|
5.3
|
|
|
6.6
|
|
|
30.2
|
|
|||||
Total assets
|
$
|
2,285.2
|
|
|
$
|
1,437.3
|
|
|
$
|
1,386.6
|
|
|
$
|
1,341.5
|
|
|
$
|
1,235.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Leasing
6
|
$
|
488.5
|
|
|
$
|
23.1
|
|
|
$
|
43.6
|
|
|
$
|
164.7
|
|
|
$
|
108.8
|
|
Development and Sales
7
|
0.1
|
|
|
—
|
|
|
5.2
|
|
|
0.1
|
|
|
0.1
|
|
|||||
Agribusiness
8
|
11.8
|
|
|
31.7
|
|
|
10.5
|
|
|
6.8
|
|
|
3.4
|
|
|||||
Natural materials and construction
|
4.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Total capital expenditures
|
$
|
505.3
|
|
|
$
|
54.8
|
|
|
$
|
59.3
|
|
|
$
|
171.9
|
|
|
$
|
112.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and Amortization:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Leasing
1
|
$
|
24.3
|
|
|
$
|
22.0
|
|
|
$
|
21.6
|
|
|
$
|
20.3
|
|
|
$
|
19.5
|
|
Development and Sales
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|||||
Agribusiness
|
11.7
|
|
|
11.6
|
|
|
11.9
|
|
|
12.7
|
|
|
11.9
|
|
|||||
Natural materials and construction
|
4.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
1.1
|
|
|
1.3
|
|
|
1.1
|
|
|
2.0
|
|
|
3.1
|
|
|||||
Total depreciation and amortization
|
$
|
41.7
|
|
|
$
|
35.1
|
|
|
$
|
34.8
|
|
|
$
|
35.2
|
|
|
$
|
34.8
|
|
5
|
The Real Estate Development and Sales segment includes approximately $335.0 million, $319.7 million, $290.1 million, $274.8 million, and $193.3 million related to its investment in various real estate joint ventures as of December 31, 2013, 2012, 2011, 2010, and 2009, respectively.
|
6
|
Represents gross capital additions to the leasing portfolio, including gross tax-deferred property purchases, but excluding the assumption of debt, 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 $150.6 million, $37.2 million, $13.8 million, $21.6 million, and $6.2 million for 2013, 2012, 2011, 2010, and 2009, respectively. Investments in joint ventures were $22.2 million, $17.4 million, $27.9 million, $100.5 million, and $46.4 million in 2013, 2012, 2011, 2010, and 2009, respectively.
|
8
|
Includes $21.8 million of capital in 2012 related to the Company’s Port Allen solar project before tax credits.
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
Earnings (loss) per share:
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Continuing operations attributable to A&B
|
$
|
0.33
|
|
|
$
|
0.18
|
|
|
$
|
—
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.73
|
)
|
Discontinued operations attributable to A&B
|
0.50
|
|
|
0.30
|
|
|
0.55
|
|
|
0.97
|
|
|
0.99
|
|
|||||
Basic earnings per share attributable to A&B
|
$
|
0.83
|
|
|
$
|
0.48
|
|
|
$
|
0.55
|
|
|
$
|
0.78
|
|
|
$
|
0.26
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations attributable to A&B
|
$
|
0.32
|
|
|
$
|
0.18
|
|
|
$
|
—
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.73
|
)
|
Discontinued operations attributable to A&B
|
0.50
|
|
|
0.30
|
|
|
0.55
|
|
|
0.97
|
|
|
0.99
|
|
|||||
Diluted earnings per share attributable to A&B
|
$
|
0.82
|
|
|
$
|
0.48
|
|
|
$
|
0.55
|
|
|
$
|
0.78
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared per common share
|
$
|
0.04
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance sheet data (in millions):
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in real estate and joint ventures
|
$
|
1,606.8
|
|
|
$
|
1,203.4
|
|
|
$
|
1,165.0
|
|
|
$
|
1,123.8
|
|
|
$
|
916.8
|
|
Total assets
|
$
|
2,285.2
|
|
|
$
|
1,437.3
|
|
|
$
|
1,386.6
|
|
|
$
|
1,341.5
|
|
|
$
|
1,231.3
|
|
Total liabilities
|
$
|
1,110.4
|
|
|
$
|
522.9
|
|
|
$
|
660.8
|
|
|
$
|
652.9
|
|
|
$
|
584.5
|
|
Long-term debt – non-current
|
$
|
605.5
|
|
|
$
|
220.0
|
|
|
$
|
327.2
|
|
|
$
|
249.6
|
|
|
$
|
258.3
|
|
Total equity
|
$
|
1,174.8
|
|
|
$
|
914.4
|
|
|
$
|
725.8
|
|
|
$
|
688.6
|
|
|
$
|
646.8
|
|
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, 2013
,
2012
and
2011
.
|
•
|
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, 2013
,
2012
and
2011
, 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, 2013
.
|
•
|
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)
|
2013
|
|
Chg.
|
|
2012
|
|
Chg.
|
|
2011
|
||||||
Operating Revenue
|
$
|
365.2
|
|
|
40%
|
|
$
|
261.5
|
|
|
11%
|
|
$
|
235.1
|
|
Operating Costs and Expenses
|
325.3
|
|
|
37%
|
|
237.5
|
|
|
10%
|
|
215.3
|
|
|||
Operating Income
|
39.9
|
|
|
66%
|
|
24.0
|
|
|
21%
|
|
19.8
|
|
|||
Other Income and (Expense)
|
(16.3
|
)
|
|
(32)%
|
|
(23.9
|
)
|
|
28%
|
|
(18.6
|
)
|
|||
Income Taxes Expense (Benefit)
|
8.5
|
|
|
NM
|
|
(7.6
|
)
|
|
NM
|
|
1.0
|
|
|||
Income From Continuing Operations
|
15.1
|
|
|
96%
|
|
7.7
|
|
|
39X
|
|
0.2
|
|
|||
Discontinued Operations (net of taxes)
|
22.3
|
|
|
74%
|
|
12.8
|
|
|
(45)%
|
|
23.3
|
|
|||
Net Income
|
37.4
|
|
|
82%
|
|
20.5
|
|
|
(13)%
|
|
23.5
|
|
|||
Income attributable to noncontrolling interest
|
(0.5
|
)
|
|
—%
|
|
—
|
|
|
—%
|
|
—
|
|
|||
Net income attributable to A&B
|
$
|
36.9
|
|
|
80%
|
|
$
|
20.5
|
|
|
(13)%
|
|
$
|
23.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic Earnings Per Share
|
$
|
0.83
|
|
|
73%
|
|
$
|
0.48
|
|
|
(13)%
|
|
$
|
0.55
|
|
Diluted Earnings Per Share
|
$
|
0.82
|
|
|
71%
|
|
$
|
0.48
|
|
|
(13)%
|
|
$
|
0.55
|
|
(dollars in millions)
|
2013
|
|
2012
|
|
Change
|
|||||
Real estate leasing segment revenue
|
$
|
110.4
|
|
|
$
|
100.6
|
|
|
10
|
%
|
Real estate leasing operating costs and expenses
|
64.4
|
|
|
57.2
|
|
|
13
|
%
|
||
Selling, general and administrative expenses
|
2.3
|
|
|
1.7
|
|
|
35
|
%
|
||
Other segment expense (income)
|
0.3
|
|
|
0.1
|
|
|
3X
|
|
||
Segment operating profit
|
$
|
43.4
|
|
|
$
|
41.6
|
|
|
4
|
%
|
Operating profit margin
|
39.3
|
%
|
|
41.4
|
%
|
|
|
|||
Net Operating Income*
|
$
|
68.8
|
|
|
$
|
63.1
|
|
|
9
|
%
|
Leasable Space (million sq. ft.) - Improved
|
|
|
|
|
|
|||||
Mainland
|
2.5
|
|
|
6.5
|
|
|
|
|||
Hawaii
|
2.6
|
|
|
1.4
|
|
|
|
*
|
Refer to page 48 for a discussion of management's use of a non-GAAP financial measure and the required reconciliation of non-GAAP measures to GAAP measures.
|
Dispositions
|
|
Acquisitions*
|
||||||||
Date
|
|
Property
|
|
Leasable sq. ft
|
|
Date
|
|
Property
|
|
Leasable sq. ft
|
1-13
|
|
Northpoint Industrial
|
|
119,400
|
|
1-13
|
|
Waianae Shopping Center
|
|
170,300
|
9-13
|
|
Centennial Plaza
|
|
244,000
|
|
5-13
|
|
Napili Plaza
|
|
45,100
|
9-13
|
|
Issaquah Office Center
|
|
146,900
|
|
9-13
|
|
Pearl Highlands
|
|
415,400
|
10-13
|
|
Republic Distribution Center
|
|
312,500
|
|
9-13
|
|
Shops at Kukui’ula
|
|
78,900
|
12-13
|
|
Activity Distribution Center
|
|
252,300
|
|
12-13
|
|
Kailua Portfolio
|
|
386,200
|
12-13
|
|
Heritage Business Park
|
|
1,316,400
|
|
|
|
|
|
|
12-13
|
|
Savannah Logistics Park
|
|
1,035,700
|
|
|
|
|
|
|
12-13
|
|
Broadlands Marketplace
|
|
103,900
|
|
|
|
|
|
|
12-13
|
|
Meadows on the Parkway
|
|
216,400
|
|
|
|
|
|
|
12-13
|
|
Rancho Temecula Town Center
|
|
165,500
|
|
|
|
|
|
|
|
|
Total Dispositions
|
|
3,913,000
|
|
|
|
Total Acquisitions
|
|
1,095,900
|
*
|
Excludes 51 acres ground leased to third-parties and improved with 760,000 square feet of retail and other commercial space that was acquired as part of the Kailua Portfolio.
|
(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 income (expense)
|
0.1
|
|
|
(0.1
|
)
|
|
NM
|
|
||
Segment operating profit
|
$
|
41.6
|
|
|
$
|
39.3
|
|
|
6
|
%
|
Operating profit margin
|
41.4
|
%
|
|
39.4
|
%
|
|
|
|||
Net Operating Income*
|
$
|
63.1
|
|
|
$
|
60.8
|
|
|
4
|
%
|
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
|
|
2013
|
|
2012
|
|
2011
|
||||||
Real estate leasing segment operating profit before discontinued operations
|
$
|
43.4
|
|
|
$
|
41.6
|
|
|
$
|
39.3
|
|
Less amounts reported in discontinued operations (pre-tax)
|
(14.6
|
)
|
|
(17.1
|
)
|
|
(16.3
|
)
|
|||
Real estate leasing segment operating profit after subtracting discontinued operations
|
28.8
|
|
|
24.5
|
|
|
23.0
|
|
|||
|
|
|
|
|
|
||||||
Depreciation and amortization
|
24.8
|
|
|
22.2
|
|
|
21.7
|
|
|||
Straight-line lease adjustments
|
(2.9
|
)
|
|
(3.6
|
)
|
|
(3.8
|
)
|
|||
General and administrative expenses
|
3.5
|
|
|
2.9
|
|
|
3.6
|
|
|||
Discontinued operations
|
14.6
|
|
|
17.1
|
|
|
16.3
|
|
|||
Real estate leasing segment NOI
|
$
|
68.8
|
|
|
$
|
63.1
|
|
|
$
|
60.8
|
|
(dollars in millions)
|
2013
|
|
2012
|
|
2011
|
||||||
Improved property sales revenue
|
$
|
331.6
|
|
|
$
|
5.0
|
|
|
$
|
45.2
|
|
Development sales revenue
|
41.8
|
|
|
8.7
|
|
|
6.7
|
|
|||
Unimproved/other property sales revenue
|
49.6
|
|
|
18.5
|
|
|
7.9
|
|
|||
Total real estate development and sales segment revenue
|
423.0
|
|
|
32.2
|
|
|
59.8
|
|
|||
Cost of real estate development and sales
|
(362.3
|
)
|
|
(11.0
|
)
|
|
(31.6
|
)
|
|||
Operating expenses
|
(16.0
|
)
|
|
(11.4
|
)
|
|
(11.1
|
)
|
|||
Write down of The Shops at Kukui'ula joint venture investment
|
(6.3
|
)
|
|
—
|
|
|
—
|
|
|||
Write down of Santa Barbara
|
—
|
|
|
(5.1
|
)
|
|
—
|
|
|||
Impairment of Bakersfield
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|||
Earnings (loss) from joint ventures
|
4.3
|
|
|
(4.4
|
)
|
|
(7.9
|
)
|
|||
Other income
|
1.7
|
|
|
—
|
|
|
6.3
|
|
|||
Total real estate development and sales operating profit (loss)
|
$
|
44.4
|
|
|
$
|
(4.4
|
)
|
|
$
|
15.5
|
|
Real estate development and sales operating profit margin
|
10.5
|
%
|
|
NM
|
|
|
25.9
|
%
|
|
2013
|
|
2012
|
|
2011
|
||||||
Proceeds from the sale of income-producing properties (Real Estate Sales Segment)
|
$
|
337.6
|
|
|
$
|
8.9
|
|
|
$
|
45.5
|
|
Real Estate Leasing revenue (Real Estate Leasing Segment)
|
31.6
|
|
|
36.4
|
|
|
36.4
|
|
|||
|
|
|
|
|
|
||||||
Gain on sale of income-producing properties
|
$
|
22.1
|
|
|
$
|
4.0
|
|
|
$
|
22.5
|
|
Real Estate Leasing operating profit
|
14.6
|
|
|
17.1
|
|
|
16.3
|
|
|||
Total operating profit before taxes
|
36.7
|
|
|
21.1
|
|
|
38.8
|
|
|||
Income tax expense
|
14.4
|
|
|
8.3
|
|
|
15.5
|
|
|||
Income from discontinued operations
|
$
|
22.3
|
|
|
$
|
12.8
|
|
|
$
|
23.3
|
|
(dollars in millions)
|
2013
|
||
Revenue
|
$
|
54.9
|
|
Operating profit
|
$
|
2.9
|
|
Operating profit margin
|
5.3
|
%
|
|
Depreciation and amortization
|
$
|
4.4
|
|
Aggregate produced (tons in thousands)
|
193.1
|
|
|
Aggregate used and sold (tons in thousands)
|
112.3
|
|
|
Asphaltic concrete placed (tons in thousands)
|
114.5
|
|
|
Backlog
|
$
|
218.1
|
|
(dollars in millions)
|
2013
|
|
2012
|
|
Change
|
|||||
Revenue
|
$
|
146.1
|
|
|
$
|
182.3
|
|
|
(20
|
)%
|
Operating profit
|
$
|
10.7
|
|
|
$
|
20.8
|
|
|
(49
|
)%
|
Operating profit margin
|
7.3
|
%
|
|
11.4
|
%
|
|
|
|||
Tons sugar produced
|
191,500
|
|
|
178,300
|
|
|
7
|
%
|
||
Tons sugar sold (raw and specialty sugar)
|
159,600
|
|
|
198,200
|
|
|
(19
|
)%
|
(dollars in millions)
|
2012
|
|
2011
|
|
Change
|
|||||
Revenue
|
$
|
182.3
|
|
|
$
|
157.5
|
|
|
16
|
%
|
Operating profit
|
$
|
20.8
|
|
|
$
|
22.2
|
|
|
(6
|
)%
|
Operating profit margin
|
11.4
|
%
|
|
14.1
|
%
|
|
|
|||
Tons sugar produced
|
178,300
|
|
|
182,800
|
|
|
(2
|
)%
|
||
Tons sugar sold (raw and specialty sugar)
|
198,200
|
|
|
163,100
|
|
|
22
|
%
|
|
|
Twelve months ended December 31,
|
|||||||||
(dollars in millions)
|
|
2013
|
|
2012
|
|
Change
|
|||||
Acquisition of property
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
(100.0
|
)%
|
Real estate redevelopment/renovations
|
|
7.7
|
|
|
6.9
|
|
|
11.6
|
%
|
||
Tenant improvements
|
|
8.0
|
|
|
4.8
|
|
|
66.7
|
%
|
||
Quarrying and paving
|
|
4.9
|
|
|
—
|
|
|
—
|
%
|
||
Agribusiness and other
|
|
11.9
|
|
|
31.7
|
|
|
(62.5
|
)%
|
||
Total capital expenditures*
|
|
$
|
32.5
|
|
|
$
|
45.4
|
|
|
(28.4
|
)%
|
*
|
Capital expenditures for real estate developments to be held and sold as real estate development inventory are classified in condensed consolidated statement of cash flows as operating activities.
|
|
|
|
|
Payment due by period
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contractual Obligations
|
|
Total
|
|
2014
|
|
2015-2016
|
|
2017-2018
|
|
Thereafter
|
||||||||||
Long-term debt obligations
(including current portion)
|
(a)
|
$
|
708.9
|
|
|
$
|
105.2
|
|
|
$
|
211.8
|
|
|
$
|
165.8
|
|
|
$
|
226.1
|
|
Estimated interest on debt
|
(b)
|
145.2
|
|
|
29.1
|
|
|
50.2
|
|
|
26.7
|
|
|
39.2
|
|
|||||
Purchase obligations
|
(c)
|
25.3
|
|
|
25.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Post-retirement obligations
|
(d)
|
6.4
|
|
|
0.8
|
|
|
1.6
|
|
|
1.5
|
|
|
2.5
|
|
|||||
Non-qualified benefit obligations
|
(e)
|
5.9
|
|
|
0.1
|
|
|
4.2
|
|
|
1.1
|
|
|
0.5
|
|
|||||
Operating lease obligations
|
(f)
|
27.9
|
|
|
4.7
|
|
|
5.7
|
|
|
5.2
|
|
|
12.3
|
|
|||||
Total
|
|
$
|
919.6
|
|
|
$
|
165.2
|
|
|
$
|
273.5
|
|
|
$
|
200.3
|
|
|
$
|
280.6
|
|
(a)
|
Long-term debt obligations (including current portion, but excluding debt premium or discount) include principal repayments of short-term and long-term debt for the respective period(s) described (see Note 9 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 2014.
|
(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, 2013
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. Estimated interest on debt also includes swap payments on the Company's interest rate swaps.
|
(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
$2.5 million
noted in the column labeled “Thereafter” comprises estimated benefit payments for 2019 through 2023. Post-retirement obligations are described further in Note 12 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
$0.5 million
noted in the column labeled “Thereafter” comprises estimated benefit payments for 2019 through 2023. Additional information about the Company’s non-qualified plans is included in Note 12 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 10 to the Consolidated Financial Statements.
|
Property Type
|
2013
Vacancy Rate |
Average Asking Rent Per Square Foot Per Month (NNN)
at December 31, 2013 |
Retail
|
4.2%
|
$3.35
|
Industrial
|
2.7%
|
$0.99
|
Office
|
12.2%
|
$1.55
|
|
Expected Fiscal Year of Repayment as of December 31, 2013 (dollars in millions)
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value at
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
Thereafter
|
|
Total
|
|
2013
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed rate
|
$
|
23.3
|
|
|
$
|
40.2
|
|
|
$
|
86.2
|
|
|
$
|
37.3
|
|
|
$
|
30.2
|
|
|
$
|
212.1
|
|
|
$
|
429.3
|
|
|
$
|
452.3
|
|
Average interest rate
|
5.63
|
%
|
|
5.65
|
%
|
|
5.53
|
%
|
|
5.25
|
%
|
|
5.20
|
%
|
|
5.09
|
%
|
|
5.36
|
%
|
|
|
|||||||||
Variable rate
|
$
|
81.9
|
|
|
$
|
4.9
|
|
|
$
|
80.6
|
|
|
$
|
96.6
|
|
|
$
|
1.7
|
|
|
$
|
13.9
|
|
|
$
|
279.6
|
|
|
$
|
270.9
|
|
Average interest rate*
|
2.44
|
%
|
|
2.60
|
%
|
|
2.59
|
%
|
|
2.23
|
%
|
|
0.74
|
%
|
|
1.27
|
%
|
|
2.44
|
%
|
|
|
*
|
Estimated interest rates on variable debt are determined based on the rate in effect on
December 31, 2013
. Actual interest rates may be greater or less than the amounts indicated when variable rate debt is rolled over.
|
|
|
|
Page
|
|
|
|
|||
Report of Independent Registered Public Accounting Firm
|
61
|
|||
Consolidated Statements of Income
|
62
|
|||
Consolidated Statements of Comprehensive Income
|
63
|
|||
Consolidated Balance Sheets
|
64
|
|||
Consolidated Statements of Cash Flows
|
65
|
|||
Consolidated Statements of Equity
|
66
|
|||
Notes to Consolidated Financial Statements
|
67
|
|||
|
1.
|
Background and Basis of Presentation
|
67
|
|
|
2.
|
Significant Accounting Policies
|
68
|
|
|
3.
|
Acquisitions
|
75
|
|
|
4.
|
Related Party Transactions
|
78
|
|
|
5.
|
Discontinued Operations
|
79
|
|
|
6.
|
Investments in Affiliates
|
79
|
|
|
7.
|
Uncompleted Contracts
|
81
|
|
|
8.
|
Property
|
82
|
|
|
9.
|
Notes Payable and Long-Term Debt
|
83
|
|
|
10.
|
Leases – The Company as Lessee
|
85
|
|
|
11
|
Leases – The Company as Lessor
|
85
|
|
|
12.
|
Employee Benefit Plans
|
86
|
|
|
13.
|
Income Taxes
|
94
|
|
|
14.
|
Share-Based Awards
|
95
|
|
|
15.
|
Commitments and Contingencies
|
97
|
|
|
16.
|
Derivative Instruments
|
99
|
|
|
17.
|
Segment Results
|
100
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Operating Revenue:
|
|
|
|
|
|
||||||
Real estate leasing
|
$
|
78.8
|
|
|
$
|
64.2
|
|
|
$
|
63.3
|
|
Real estate sales
|
85.4
|
|
|
15.0
|
|
|
14.3
|
|
|||
Construction and natural materials
|
54.9
|
|
|
—
|
|
|
—
|
|
|||
Agribusiness
|
146.1
|
|
|
182.3
|
|
|
157.5
|
|
|||
Total operating revenue
|
365.2
|
|
|
261.5
|
|
|
235.1
|
|
|||
Operating Costs and Expenses:
|
|
|
|
|
|
||||||
Cost of real estate leasing
|
48.4
|
|
|
38.4
|
|
|
38.9
|
|
|||
Cost of real estate sales
|
46.7
|
|
|
5.2
|
|
|
8.7
|
|
|||
Cost of construction contracts and natural materials
|
47.6
|
|
|
—
|
|
|
—
|
|
|||
Cost of agribusiness goods and services
|
136.8
|
|
|
161.0
|
|
|
135.0
|
|
|||
Selling, general and administrative
|
41.2
|
|
|
37.7
|
|
|
32.7
|
|
|||
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/acquisition costs
|
4.6
|
|
|
6.8
|
|
|
—
|
|
|||
Total operating costs and expenses
|
325.3
|
|
|
237.5
|
|
|
215.3
|
|
|||
Operating Income
|
39.9
|
|
|
24.0
|
|
|
19.8
|
|
|||
Other Income and (Expense):
|
|
|
|
|
|
||||||
Income (loss) related to joint ventures
|
4.3
|
|
|
(4.4
|
)
|
|
(1.8
|
)
|
|||
Gain on insurance proceeds
|
2.4
|
|
|
—
|
|
|
—
|
|
|||
Impairment and equity losses related to joint ventures
|
(6.6
|
)
|
|
(4.7
|
)
|
|
—
|
|
|||
Interest income and other
|
2.7
|
|
|
0.1
|
|
|
0.3
|
|
|||
Interest expense
|
(19.1
|
)
|
|
(14.9
|
)
|
|
(17.1
|
)
|
|||
Income From Continuing Operations Before Income Taxes
|
23.6
|
|
|
0.1
|
|
|
1.2
|
|
|||
Income tax expense (benefit)
|
8.5
|
|
|
(7.6
|
)
|
|
1.0
|
|
|||
Income From Continuing Operations
|
15.1
|
|
|
7.7
|
|
|
0.2
|
|
|||
Income from discontinued operations, net of income taxes (Note 5)
|
22.3
|
|
|
12.8
|
|
|
23.3
|
|
|||
Net Income
|
37.4
|
|
|
20.5
|
|
|
23.5
|
|
|||
Income attributable to noncontrolling interest
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|||
Net Income Attributable to A&B
|
$
|
36.9
|
|
|
$
|
20.5
|
|
|
$
|
23.5
|
|
|
|
|
|
|
|
||||||
Basic Earnings per Share of Common Stock:
|
|
|
|
|
|
||||||
Continuing operations attributable to A&B shareholders
|
$
|
0.33
|
|
|
$
|
0.18
|
|
|
$
|
—
|
|
Discontinued operations attributable to A&B shareholders
|
0.50
|
|
|
0.30
|
|
|
0.55
|
|
|||
Net income attributable to A&B shareholders
|
$
|
0.83
|
|
|
$
|
0.48
|
|
|
$
|
0.55
|
|
Diluted Earnings per Share of Common Stock:
|
|
|
|
|
|
||||||
Continuing operations attributable to A&B shareholders
|
$
|
0.32
|
|
|
$
|
0.18
|
|
|
$
|
—
|
|
Discontinued operations attributable to A&B shareholders
|
0.50
|
|
|
0.30
|
|
|
0.55
|
|
|||
Net income attributable to A&B shareholders
|
$
|
0.82
|
|
|
$
|
0.48
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
||||||
Weighted Average Number of Shares Outstanding:
|
|
|
|
|
|
||||||
Basic
|
44.4
|
|
|
42.6
|
|
|
42.4
|
|
|||
Diluted
|
45.1
|
|
|
42.9
|
|
|
42.4
|
|
|||
|
|
|
|
|
|
||||||
Amounts Attributable to A&B Shareholders:
|
|
|
|
|
|
||||||
Income from continuing operations, net of tax
|
$
|
14.6
|
|
|
$
|
7.7
|
|
|
$
|
0.2
|
|
Discontinued operations, net of tax
|
22.3
|
|
|
12.8
|
|
|
23.3
|
|
|||
Net income
|
$
|
36.9
|
|
|
$
|
20.5
|
|
|
$
|
23.5
|
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Net Income
|
$
|
37.4
|
|
|
$
|
20.5
|
|
|
$
|
23.5
|
|
Other Comprehensive Income (loss), Net of Tax:
|
|
|
|
|
|
||||||
Defined benefit pension plans:
|
|
|
|
|
|
||||||
Net gain (loss) / prior service credit (cost)
|
22.4
|
|
|
(6.0
|
)
|
|
(19.4
|
)
|
|||
Amortization of net loss included in net periodic pension cost
|
7.7
|
|
|
8.0
|
|
|
5.2
|
|
|||
Amortization of prior service credit (cost) included in net periodic pension cost
|
(1.3
|
)
|
|
(1.3
|
)
|
|
0.6
|
|
|||
Income taxes related to other comprehensive income
|
(11.7
|
)
|
|
(0.3
|
)
|
|
5.2
|
|
|||
Other Comprehensive Income (loss)
|
17.1
|
|
|
0.4
|
|
|
(8.4
|
)
|
|||
Comprehensive Income
|
54.5
|
|
|
20.9
|
|
|
15.1
|
|
|||
Comprehensive income attributable to noncontrolling interest
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|||
Comprehensive income attributable to A&B
|
$
|
54.0
|
|
|
$
|
20.9
|
|
|
$
|
15.1
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
ASSETS
|
|
|
|
|
|
||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3.3
|
|
|
$
|
1.1
|
|
Accounts receivable, less allowances of $1.3 for 2013 and $1.6 for 2012
|
36.5
|
|
|
8.2
|
|
||
Contracts retention
|
9.3
|
|
|
—
|
|
||
Costs and estimated earnings in excess of billings on uncompleted contracts
|
10.5
|
|
|
—
|
|
||
Inventories
|
68.1
|
|
|
23.5
|
|
||
Real estate held for sale
|
15.9
|
|
|
11.5
|
|
||
Deferred income taxes
|
7.8
|
|
|
7.8
|
|
||
Income tax receivable
|
3.0
|
|
|
4.4
|
|
||
Prepaid expenses and other assets
|
17.0
|
|
|
6.9
|
|
||
Total current assets
|
171.4
|
|
|
63.4
|
|
||
Investments in Affiliates
|
341.4
|
|
|
319.9
|
|
||
Real Estate Developments
|
249.1
|
|
|
144.0
|
|
||
Property – net
|
1,273.7
|
|
|
838.7
|
|
||
Intangible assets - net
|
74.1
|
|
|
8.3
|
|
||
Goodwill
|
99.6
|
|
|
—
|
|
||
Other Assets
|
75.9
|
|
|
63.0
|
|
||
Total Assets
|
$
|
2,285.2
|
|
|
$
|
1,437.3
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Notes payable and current portion of long-term debt
|
$
|
105.2
|
|
|
$
|
15.5
|
|
Accounts payable
|
32.6
|
|
|
26.2
|
|
||
Billings in excess of costs and estimated earnings on uncompleted contracts
|
4.4
|
|
|
—
|
|
||
Accrued interest
|
5.9
|
|
|
5.2
|
|
||
Deferred revenue
|
17.8
|
|
|
—
|
|
||
Indemnity holdback related to Grace acquisition
|
18.8
|
|
|
—
|
|
||
Accrued and other liabilities
|
33.5
|
|
|
22.7
|
|
||
Total current liabilities
|
218.2
|
|
|
69.6
|
|
||
Long-term Liabilities
|
|
|
|
||||
Long-term debt
|
605.5
|
|
|
220.0
|
|
||
Deferred income taxes
|
188.7
|
|
|
152.9
|
|
||
Accrued pension and post-retirement benefits
|
37.3
|
|
|
58.9
|
|
||
Other non-current liabilities
|
60.7
|
|
|
21.5
|
|
||
Total long-term liabilities
|
892.2
|
|
|
453.3
|
|
||
Commitments and Contingencies (Note 15)
|
|
|
|
|
|
||
Equity
|
|
|
|
||||
Common stock – no par value; authorized, 150 million shares; outstanding, 48.6 million and 42.9 million shares at December 31, 2013 and 2012, respectively
|
1,142.3
|
|
|
939.8
|
|
||
Accumulated other comprehensive loss
|
(30.1
|
)
|
|
(47.2
|
)
|
||
Retained earnings
|
53.7
|
|
|
21.8
|
|
||
Total A&B shareholders' equity
|
1,165.9
|
|
|
914.4
|
|
||
Noncontrolling interest
|
8.9
|
|
|
—
|
|
||
Total equity
|
1,174.8
|
|
|
914.4
|
|
||
Total liabilities and equity
|
$
|
2,285.2
|
|
|
$
|
1,437.3
|
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
37.4
|
|
|
$
|
20.5
|
|
|
$
|
23.5
|
|
Adjustments to reconcile net income to net cash provided by (used in) operations:
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
41.7
|
|
|
35.1
|
|
|
34.8
|
|
|||
Deferred income taxes
|
(1.6
|
)
|
|
(6.3
|
)
|
|
(0.9
|
)
|
|||
Gains on asset transactions, net of impairment losses
|
(52.8
|
)
|
|
(14.8
|
)
|
|
(33.2
|
)
|
|||
Share-based expense
|
4.2
|
|
|
5.4
|
|
|
4.8
|
|
|||
Equity in (income) loss of affiliates, net of distributions
|
(2.9
|
)
|
|
8.4
|
|
|
8.4
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|||
Trade, contracts retention, and other receivables
|
3.3
|
|
|
0.1
|
|
|
3.7
|
|
|||
Costs and estimated earnings in excess of billings on uncompleted contracts - net
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|||
Inventories
|
(2.7
|
)
|
|
12.8
|
|
|
(6.2
|
)
|
|||
Prepaid expenses and other assets
|
(0.4
|
)
|
|
(10.0
|
)
|
|
(4.3
|
)
|
|||
Accrued pension and post-retirement benefits
|
5.2
|
|
|
4.2
|
|
|
6.4
|
|
|||
Accounts payable, contracts retention, and accrued liabilities
|
(6.5
|
)
|
|
(1.5
|
)
|
|
(2.6
|
)
|
|||
Accrued and other liabilities
|
7.6
|
|
|
(14.2
|
)
|
|
(16.6
|
)
|
|||
Real estate inventory sales (real estate developments held for sale)
|
81.7
|
|
|
8.4
|
|
|
6.4
|
|
|||
Expenditures for real estate inventory (real estate developments held for sale)
|
(150.6
|
)
|
|
(37.2
|
)
|
|
(13.8
|
)
|
|||
Net cash provided by (used in) operations
|
(38.3
|
)
|
|
10.9
|
|
|
10.4
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|||
Capital expenditures for property, plant and equipment
|
(32.5
|
)
|
|
(45.4
|
)
|
|
(20.2
|
)
|
|||
Capital expenditures related to 1031 commercial property transactions
|
(472.8
|
)
|
|
(9.4
|
)
|
|
(39.1
|
)
|
|||
Proceeds from investment tax credits and grants related to renewable energy projects
|
2.4
|
|
|
7.5
|
|
|
—
|
|
|||
Proceeds from disposal of property and other assets
|
1.2
|
|
|
2.2
|
|
|
8.4
|
|
|||
Proceeds from disposals related to 1031 commercial property transactions
|
330.8
|
|
|
18.8
|
|
|
44.7
|
|
|||
Payments for purchases of investments in affiliates and preferred investment
|
(43.4
|
)
|
|
(17.5
|
)
|
|
(28.0
|
)
|
|||
Proceeds from investments in affiliates
|
5.1
|
|
|
2.9
|
|
|
7.9
|
|
|||
Change in restricted cash associated with 1031 transactions
|
3.2
|
|
|
(9.2
|
)
|
|
0.2
|
|
|||
Acquisition of business, net of cash
|
(5.7
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(211.7
|
)
|
|
(50.1
|
)
|
|
(26.1
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from issuance of long-term debt
|
585.0
|
|
|
134.0
|
|
|
147.0
|
|
|||
Payments of long-term debt and deferred financing costs
|
(380.3
|
)
|
|
(257.2
|
)
|
|
(145.9
|
)
|
|||
Proceeds from (payments on) line-of-credit agreement, net
|
51.6
|
|
|
(6.0
|
)
|
|
1.1
|
|
|||
Distributions to Alexander & Baldwin Holdings, Inc.(a)
|
—
|
|
|
(26.7
|
)
|
|
(53.1
|
)
|
|||
Contributions from Alexander & Baldwin Holdings, Inc.(a)
|
—
|
|
|
172.7
|
|
|
72.8
|
|
|||
Distribution to non controlling interests
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
(2.0
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance (repurchase) of capital stock and other, net
|
(1.0
|
)
|
|
11.8
|
|
|
—
|
|
|||
Net cash provided by financing activities
|
252.2
|
|
|
28.6
|
|
|
21.9
|
|
|||
Cash and Cash Equivalents:
|
|
|
|
|
|
|
|
|
|||
Net increase (decrease) for the year
|
2.2
|
|
|
(10.6
|
)
|
|
6.2
|
|
|||
Balance, beginning of year
|
1.1
|
|
|
11.7
|
|
|
5.5
|
|
|||
Balance, end of year
|
$
|
3.3
|
|
|
$
|
1.1
|
|
|
$
|
11.7
|
|
Other Cash Flow Information:
|
|
|
|
|
|
|
|
|
|||
Interest paid, net of amounts capitalized
|
$
|
(19.1
|
)
|
|
$
|
(14.9
|
)
|
|
$
|
(16.9
|
)
|
Income taxes paid
|
$
|
(12.0
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
(26.0
|
)
|
Non-cash Activities:
|
|
|
|
|
|
|
|
|
|||
Acquisition of Grace (issuance of equity and indemnity holdback)
|
$
|
219.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mortgage debt assumed at fair value in real estate acquisitions
|
$
|
142.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Property (net) acquired in connection with the consolidation of The Shops at Kukui'ula
|
$
|
39.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Capital expenditures included in accounts payable and accrued expenses
|
$
|
6.6
|
|
|
$
|
12.2
|
|
|
$
|
6.8
|
|
Contribution of land and development assets to Waihonua joint venture
|
$
|
—
|
|
|
$
|
24.2
|
|
|
$
|
—
|
|
Conversion of net investment of A&B Holdings into common stock
|
$
|
—
|
|
|
$
|
926.3
|
|
|
$
|
—
|
|
(a)
|
Refer to Note 4, “Related Party Transactions.”
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|||||||||||||||
|
Common
|
|
|
Other
|
|
|
|
|
|
|||||||||||||||||
|
Stock
|
|
Net
|
Compre-
|
|
|
Non-
|
|
|
|||||||||||||||||
|
|
|
Stated
|
|
Invest-
|
hensive
|
Retained
|
|
Controlling
|
|
|
|||||||||||||||
|
Shares
|
|
Value
|
|
ment
|
|
Loss
|
|
Earnings
|
|
interest
|
|
Total
|
|||||||||||||
Balance, January 1, 2011
|
—
|
|
|
$
|
—
|
|
|
$
|
727.8
|
|
|
$
|
(39.2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
688.6
|
|
Net income
|
|
|
|
|
23.5
|
|
|
|
|
|
|
|
|
23.5
|
|
|||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
(8.4
|
)
|
|
|
|
|
|
(8.4
|
)
|
|||||||||||
Contribution from Alexander & Baldwin Holdings, Inc.-net
|
|
|
|
|
22.1
|
|
|
|
|
|
|
|
|
22.1
|
|
|||||||||||
Conversion of net investment of Alexander & Baldwin Holdings, Inc. into common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Balance, December 31, 2011
|
—
|
|
|
—
|
|
|
773.4
|
|
|
(47.6
|
)
|
|
—
|
|
|
—
|
|
|
725.8
|
|
||||||
Net income
|
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
22.1
|
|
|
|
|
20.5
|
|
||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
0.4
|
|
|
|
|
|
|
0.4
|
|
|||||||||||
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
|
|
||||||
Net income
|
|
|
|
|
|
|
|
|
36.9
|
|
|
0.5
|
|
|
37.4
|
|
||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
17.1
|
|
|
|
|
|
|
17.1
|
|
|||||||||||
Dividends paid on common stock
|
|
|
|
|
|
|
|
|
(2.0
|
)
|
|
|
|
(2.0
|
)
|
|||||||||||
Distributions to noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|||||||||||
Share-based compensation
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|||||||||||
Grace acquisition
|
5.4
|
|
|
196.3
|
|
|
|
|
|
|
|
|
9.1
|
|
|
205.4
|
|
|||||||||
Shares issued or repurchased, net
|
0.3
|
|
|
0.4
|
|
|
|
|
|
|
(3.0
|
)
|
|
|
|
(2.6
|
)
|
|||||||||
Excess tax benefit from share-based awards
|
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
1.6
|
|
|||||||||||
Balance, December 31, 2013
|
48.6
|
|
|
$
|
1,142.3
|
|
|
$
|
—
|
|
|
$
|
(30.1
|
)
|
|
$
|
53.7
|
|
|
$
|
8.9
|
|
|
$
|
1,174.8
|
|
1.
|
BACKGROUND AND BASIS OF PRESENTATION
|
2.
|
SIGNIFICANT ACCOUNTING POLICIES
|
|
2013
|
|
2012
|
||||
Sugar inventories
|
$
|
16.8
|
|
|
$
|
3.9
|
|
Asphalt
|
17.9
|
|
|
—
|
|
||
Processed rock, portland cement, and sand
|
12.9
|
|
|
—
|
|
||
Work in progress
|
2.7
|
|
|
—
|
|
||
Retail merchandise
|
1.8
|
|
|
—
|
|
||
Parts, materials and supplies inventories
|
16.0
|
|
|
19.6
|
|
||
Total
|
$
|
68.1
|
|
|
$
|
23.5
|
|
Classification
|
Range of Life (in years)
|
Buildings
|
10 to 40
|
Water, power and sewer systems
|
5 to 50
|
Rock crushing and asphalt plants
|
25 to 35
|
Machinery and equipment
|
2 to 35
|
Other property improvements
|
3 to 35
|
|
2013
|
|
2012
|
||||||||||||
|
|
|
Accumulated
|
|
|
|
Accumulated
|
||||||||
|
Cost
|
|
Amortization
|
|
Cost
|
|
Amortization
|
||||||||
Amortized intangible assets:
|
|
|
|
|
|
|
|
||||||||
In-place leases
|
$
|
59.6
|
|
|
$
|
(18.6
|
)
|
|
$
|
18.7
|
|
|
$
|
(11.8
|
)
|
Permitted quarry rights
|
18.0
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||
Other
|
22.3
|
|
|
(7.1
|
)
|
|
6.1
|
|
|
(4.7
|
)
|
||||
Total assets
|
$
|
99.9
|
|
|
$
|
(25.8
|
)
|
|
$
|
24.8
|
|
|
$
|
(16.5
|
)
|
|
Goodwill
|
||
Balance, January 1, 2012
|
$
|
—
|
|
Additions
|
—
|
|
|
Balance, December 31, 2012
|
—
|
|
|
Goodwill acquired during the year
|
99.6
|
|
|
Balance, December 31, 2013
|
$
|
99.6
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Income from continuing operations
|
$
|
15.1
|
|
|
$
|
7.7
|
|
|
$
|
0.2
|
|
Noncontrolling interest
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|||
Income from continuing operations attributable to A&B
|
$
|
14.6
|
|
|
$
|
7.7
|
|
|
$
|
0.2
|
|
3.
|
ACQUISITIONS
|
Cash consideration
|
$
|
35.3
|
|
Common stock issued as consideration
|
196.3
|
|
|
Noncontrolling interest
|
9.1
|
|
|
Fair value of consideration transferred
|
240.7
|
|
|
|
|
||
Fair value of assets acquired and liabilities assumed
|
|||
Assets acquired:
|
|
||
Cash and cash equivalents
|
5.7
|
|
|
Accounts receivable
|
37.1
|
|
|
Contracts retention
|
9.6
|
|
|
Costs and estimated earnings in excess of billings on uncompleted contracts
|
11.7
|
|
|
Inventories
|
42.0
|
|
|
Property, plant and equipment
|
148.6
|
|
|
Mineral rights
|
18.0
|
|
|
Intangible assets
|
5.8
|
|
|
All other, net
|
10.4
|
|
|
Total assets acquired
|
288.9
|
|
|
|
|
||
Liabilities assumed:
|
|
||
Accounts payable and accrued liabilities
|
26.3
|
|
|
Billings in excess of cost and estimated earnings on uncompleted contracts
|
7.5
|
|
|
Deferred tax liability, long-term
|
27.1
|
|
|
Long-term debt, including current portion
|
72.7
|
|
|
All other, net
|
4.9
|
|
|
Total liabilities assumed
|
138.5
|
|
|
|
|
||
Excess of purchase price over net assets acquired
|
$
|
90.3
|
|
|
Year Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
Operating revenue
|
$
|
539.1
|
|
|
$
|
454.1
|
|
Income from continuing operations, after tax
|
$
|
31.7
|
|
|
$
|
14.8
|
|
|
Year Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
Operating revenue
|
$
|
391.0
|
|
|
$
|
285.5
|
|
Income from continuing operations, after tax
|
$
|
23.3
|
|
|
$
|
14.2
|
|
4.
|
RELATED PARTY TRANSACTIONS
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Vessel management services expenses
|
|
$
|
—
|
|
|
$
|
(2.0
|
)
|
|
$
|
(4.0
|
)
|
Lease income from affiliate
|
|
—
|
|
|
2.1
|
|
|
4.4
|
|
|||
Equipment and repair services income and other
|
|
—
|
|
|
1.4
|
|
|
2.7
|
|
|||
Related party revenue, net
|
|
$
|
—
|
|
|
$
|
1.5
|
|
|
$
|
3.1
|
|
5.
|
DISCONTINUED OPERATIONS
|
|
2013
|
|
2012
|
|
2011
|
||||||
Proceeds from the sale of income-producing properties
|
$
|
337.6
|
|
|
$
|
8.9
|
|
|
$
|
45.5
|
|
Real estate leasing revenue
|
31.6
|
|
|
36.4
|
|
|
36.4
|
|
|||
|
|
|
|
|
|
||||||
Gain on sale of income-producing properties, net
|
$
|
22.1
|
|
|
$
|
4.0
|
|
|
$
|
22.5
|
|
Real estate leasing operating profit
|
14.6
|
|
|
17.1
|
|
|
16.3
|
|
|||
Total operating profit before taxes
|
36.7
|
|
|
21.1
|
|
|
38.8
|
|
|||
Income tax expense
|
14.4
|
|
|
8.3
|
|
|
15.5
|
|
|||
Income from discontinued operations
|
$
|
22.3
|
|
|
$
|
12.8
|
|
|
$
|
23.3
|
|
Basic Earnings Per Share
|
$
|
0.50
|
|
|
$
|
0.30
|
|
|
$
|
0.55
|
|
Diluted Earnings Per Share
|
$
|
0.50
|
|
|
$
|
0.30
|
|
|
$
|
0.55
|
|
6.
|
INVESTMENTS IN AFFILIATES
|
|
2013
|
|
2012
|
||||
Current assets
|
$
|
43.5
|
|
|
$
|
23.7
|
|
Noncurrent assets
|
673.2
|
|
|
600.9
|
|
||
Total assets
|
$
|
716.7
|
|
|
$
|
624.6
|
|
|
|
|
|
||||
Current liabilities
|
$
|
44.2
|
|
|
$
|
9.3
|
|
Noncurrent liabilities
|
107.9
|
|
|
120.2
|
|
||
Total liabilities
|
$
|
152.1
|
|
|
$
|
129.5
|
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Operating revenue
|
$
|
37.8
|
|
|
$
|
29.8
|
|
|
$
|
20.1
|
|
Operating costs and expenses
|
31.1
|
|
|
32.5
|
|
|
32.5
|
|
|||
Operating (loss) income
|
$
|
6.7
|
|
|
$
|
(2.7
|
)
|
|
$
|
(12.4
|
)
|
Income (loss) from continuing operations
|
$
|
6.8
|
|
|
$
|
(11.5
|
)
|
|
$
|
(15.1
|
)
|
Net income (loss)
|
$
|
6.8
|
|
|
$
|
(11.5
|
)
|
|
$
|
(15.1
|
)
|
|
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, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
The Shops at Kukui'ula Investment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6.3
|
|
|
$
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
|
*
|
The Total Loss for the Year includes equity in losses of
$3.9 million
related to the write down of landholdings owned by the joint venture.
|
|
2013
|
||
Costs incurred on uncompleted contracts
|
$
|
135.8
|
|
Estimated earnings
|
26.6
|
|
|
Subtotal
|
162.4
|
|
|
Less: billings to date
|
156.3
|
|
|
Total
|
$
|
6.1
|
|
|
|
||
Included in accompanying balance sheet under the following captions:
|
|
|
|
Costs and estimated earnings in excess of billings on uncompleted contracts
|
$
|
10.5
|
|
Estimated billings in excess of costs and estimated earnings on uncompleted contracts
|
(4.4
|
)
|
|
Total
|
$
|
6.1
|
|
8.
|
PROPERTY
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
Buildings
|
$
|
560.0
|
|
|
$
|
553.5
|
|
Land
|
572.7
|
|
|
254.8
|
|
||
Machinery and equipment
|
230.9
|
|
|
200.2
|
|
||
Asphalt plants
|
48.0
|
|
|
—
|
|
||
Water, power and sewer systems
|
138.8
|
|
|
134.9
|
|
||
Other property improvements
|
90.2
|
|
|
83.0
|
|
||
Vessel
|
7.2
|
|
|
7.1
|
|
||
Subtotal
|
1,647.8
|
|
|
1,233.5
|
|
||
Accumulated depreciation
|
(374.1
|
)
|
|
(394.8
|
)
|
||
Property - net
|
$
|
1,273.7
|
|
|
$
|
838.7
|
|
|
2013
|
|
2012
|
||||
Revolving Credit loans, (2.53% for 2013 and 2.07% for 2012)
|
$
|
112.1
|
|
|
$
|
5.0
|
|
Term Loans:
|
|
|
|
||||
6.90%, payable through 2020
|
85.0
|
|
|
90.0
|
|
||
5.55%, payable through 2026
|
50.0
|
|
|
50.0
|
|
||
5.53%, payable through 2024
|
37.5
|
|
|
37.5
|
|
||
5.56%, payable through 2026
|
25.0
|
|
|
25.0
|
|
||
3.90%, payable through 2024
|
75.0
|
|
|
—
|
|
||
4.35%, payable through 2026
|
25.0
|
|
|
—
|
|
||
6.20%, payable through 2013, secured by Deere Valley Center
|
—
|
|
|
10.1
|
|
||
6.38%, payable through 2017, secured by Midstate 99 Distribution Ctr.
|
8.3
|
|
|
8.3
|
|
||
5.50%, payable through 2014, secured by Little Cottonwood Center
|
6.1
|
|
|
6.3
|
|
||
5.88%, payable through 2014, secured by Midstate 99 Distribution Ctr.
|
3.2
|
|
|
3.3
|
|
||
5.39%, payable through 2015, secured by Waianae Mall
|
19.9
|
|
|
—
|
|
||
5.89%, payable through 2016, secured by Pearl Highlands Center
|
61.8
|
|
|
—
|
|
||
2.08%, payable through 2021, secured by Kailua Town Center III (a)
|
11.3
|
|
|
—
|
|
||
2.84%, payable through 2016, secured by Kukui'ula Village (b)
|
44.0
|
|
|
—
|
|
||
2.80%, payable through 2016, secured by Kahala Estate Properties (c)
|
42.0
|
|
|
—
|
|
||
3.05%, payable through 2014, secured by Maui Mall (d)
|
60.0
|
|
|
—
|
|
||
3.31%, payable through 2018
|
8.0
|
|
|
—
|
|
||
2.00%, payable through 2018
|
2.9
|
|
|
—
|
|
||
2.65%, payable through 2016
|
1.8
|
|
|
—
|
|
||
5.00%, payable through 2014
|
0.3
|
|
|
—
|
|
||
5.19%, payable through 2019
|
11.9
|
|
|
—
|
|
||
1.17%, payable through 2021, secured by asphalt plant (e)
|
8.9
|
|
|
—
|
|
||
1.85%, payable through 2017
|
10.7
|
|
|
—
|
|
||
Total debt
|
710.7
|
|
|
235.5
|
|
||
Less debt (premium) discount
|
(1.8
|
)
|
|
—
|
|
||
Total debt (contractual)
|
708.9
|
|
|
235.5
|
|
||
Less current portion
|
(105.2
|
)
|
|
(15.5
|
)
|
||
Add debt premium (discount)
|
1.8
|
|
|
—
|
|
||
Long-term debt
|
$
|
605.5
|
|
|
$
|
220.0
|
|
(a)
|
Loan has a stated interest rate of
LIBOR
plus
1.5%
, but is swapped through maturity to a
5.95%
fixed rate.
|
(b)
|
Loan has a stated interest rate of
LIBOR
plus
2.66%
.
|
(c)
|
Loan has a stated interest rate of
LIBOR
plus
2.63%
.
|
(d)
|
Loan has a stated interest rate of
LIBOR
plus
3.00%
. The loan was used as temporary financing for the acquisition of the Kailua Portfolio in December 2013. The loan was paid off with reverse 1031 proceeds from Maui Mall on January 6, 2014.
|
(e)
|
Loan has a stated interest rate of
LIBOR
plus
1.0%
, but is swapped through maturity to a
5.98%
fixed rate.
|
Years Ending December 31,
|
|
Minimum Lease Payments
|
||
2014
|
|
$
|
4.7
|
|
2015
|
|
3.0
|
|
|
2016
|
|
2.7
|
|
|
2017
|
|
2.7
|
|
|
2018
|
|
2.5
|
|
|
Thereafter
|
|
12.3
|
|
|
Total
|
|
$
|
27.9
|
|
|
2013
|
|
2012
|
||||
Leased property - real estate
|
$
|
1,100.0
|
|
|
$
|
844.3
|
|
Less accumulated depreciation
|
(99.5
|
)
|
|
(130.8
|
)
|
||
Property under operating leases - net
|
$
|
1,000.5
|
|
|
$
|
713.5
|
|
Years Ending December 31,
|
2013
|
|
2012
|
|
2011
|
||||||
Minimum rentals
|
$
|
80.5
|
|
|
$
|
74.3
|
|
|
$
|
74.3
|
|
Contingent rentals (based on sales volume)
|
3.0
|
|
|
2.8
|
|
|
2.0
|
|
|||
Total
|
$
|
83.5
|
|
|
$
|
77.1
|
|
|
$
|
76.3
|
|
|
OperatingLeases
|
||
2014
|
$
|
82.8
|
|
2015
|
$
|
75.1
|
|
2016
|
$
|
63.6
|
|
2017
|
$
|
53.9
|
|
2018
|
$
|
43.8
|
|
Thereafter
|
$
|
329.6
|
|
Total
|
$
|
648.8
|
|
|
Target
|
|
2013
|
|
2012
|
|||
Domestic equity securities
|
28
|
%
|
|
29
|
%
|
|
50
|
%
|
International equity securities
|
15
|
%
|
|
16
|
%
|
|
14
|
%
|
Debt securities
|
46
|
%
|
|
44
|
%
|
|
18
|
%
|
Real estate
|
7
|
%
|
|
5
|
%
|
|
5
|
%
|
Other and cash
|
4
|
%
|
|
6
|
%
|
|
13
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Fair Value Measurements as of
|
||||||||||||||
|
December 31, 2013
|
||||||||||||||
|
Total
|
|
Quoted Prices in Active Markets (Level 1)
|
|
Significant Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
5.2
|
|
|
$
|
5.2
|
|
|
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. large-cap
|
24.4
|
|
|
24.4
|
|
|
|
|
|
||||||
U.S. mid- and small-cap
|
20.4
|
|
|
20.4
|
|
|
|
|
|
||||||
International large-cap
|
16.3
|
|
|
16.3
|
|
|
|
|
|
||||||
International mid-cap
|
8.1
|
|
|
8.1
|
|
|
|
|
|
||||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Exchange traded funds - U.S. Treasuries
|
16.3
|
|
|
16.3
|
|
|
|
|
|
||||||
Exchange traded funds - Investment grade U.S. corporate bonds
|
45.0
|
|
|
45.0
|
|
|
|
|
|
||||||
Limited partnership investment in high-yield U.S. corporate bonds
|
6.4
|
|
|
|
|
|
|
6.4
|
|
||||||
Other types of investments:
|
|
|
|
|
|
|
|
||||||||
Real estate partnership interests
|
7.5
|
|
|
|
|
|
|
7.5
|
|
||||||
Private equity partnership interests (a)
|
0.3
|
|
|
|
|
|
|
0.3
|
|
||||||
Exchange traded fund - commodities
|
2.5
|
|
|
2.5
|
|
|
|
|
|
||||||
Insurance contracts
|
1.0
|
|
|
|
|
|
|
1.0
|
|
||||||
Total
|
$
|
153.4
|
|
|
$
|
138.2
|
|
|
$
|
—
|
|
|
$
|
15.2
|
|
|
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
|
|
|
|
||||||
Municipal bonds
|
1.9
|
|
|
|
|
1.9
|
|
|
|
||||||
Investment grade U.S. corporate bonds
|
6.1
|
|
|
|
|
6.1
|
|
|
|
||||||
High-yield U.S. corporate 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 Using Significant
|
||||||||||||||||||
|
Unobservable Inputs (Level 3)
|
||||||||||||||||||
|
Real Estate
|
|
Private Equity
|
|
Insurance
|
|
Limited Partnership
|
|
Total
|
||||||||||
Beginning balance, January 1, 2012
|
$
|
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
|
|
|||||
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets held at the reporting date
|
1.1
|
|
|
(0.2
|
)
|
|
0.1
|
|
|
0.3
|
|
|
1.3
|
|
|||||
Assets sold during the period
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||||
Purchases, sales and settlements
|
(1.7
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
6.1
|
|
|
4.1
|
|
|||||
Ending balance, December 31, 2013
|
$
|
7.5
|
|
|
$
|
0.3
|
|
|
$
|
1.0
|
|
|
$
|
6.4
|
|
|
$
|
15.2
|
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
189.7
|
|
|
$
|
173.6
|
|
|
$
|
10.9
|
|
|
$
|
11.4
|
|
Service cost
|
2.6
|
|
|
2.4
|
|
|
0.1
|
|
|
0.1
|
|
||||
Interest cost
|
7.6
|
|
|
8.2
|
|
|
0.4
|
|
|
0.5
|
|
||||
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
0.9
|
|
|
1.0
|
|
||||
Actuarial (gain) loss
|
(13.2
|
)
|
|
15.4
|
|
|
3.0
|
|
|
(0.3
|
)
|
||||
Benefits paid
|
(11.1
|
)
|
|
(10.0
|
)
|
|
(1.8
|
)
|
|
(1.8
|
)
|
||||
Special or contractual termination benefits
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||
Curtailment
|
(0.2
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
|
|||||
Amendments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Benefit obligation at end of year
|
$
|
175.4
|
|
|
$
|
189.7
|
|
|
$
|
12.9
|
|
|
$
|
10.9
|
|
Change in Plan Assets
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
142.3
|
|
|
130.8
|
|
|
—
|
|
|
—
|
|
||||
Actual return on plan assets
|
22.1
|
|
|
18.9
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
0.1
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(11.1
|
)
|
|
(10.0
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
$
|
153.4
|
|
|
$
|
142.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Funded Status and Recognized Liability
|
$
|
(22.0
|
)
|
|
$
|
(47.4
|
)
|
|
$
|
(12.9
|
)
|
|
$
|
(10.9
|
)
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Non-current assets
|
$
|
3.3
|
|
|
$
|
1.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
(0.8
|
)
|
||||
Non-current liabilities
|
(25.3
|
)
|
|
(48.8
|
)
|
|
(12.0
|
)
|
|
(10.1
|
)
|
||||
Total
|
$
|
(22.0
|
)
|
|
$
|
(47.4
|
)
|
|
$
|
(12.9
|
)
|
|
$
|
(10.9
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net loss (gain) (net of taxes)
|
$
|
33.2
|
|
|
$
|
53.0
|
|
|
$
|
1.1
|
|
|
$
|
(1.4
|
)
|
Unrecognized prior service credit (net of taxes)
|
(3.9
|
)
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
29.3
|
|
|
$
|
48.6
|
|
|
$
|
1.1
|
|
|
$
|
(1.4
|
)
|
|
2013
|
|
2012
|
||||
Projected benefit obligation
|
$
|
167.7
|
|
|
$
|
181.0
|
|
Accumulated benefit obligation
|
$
|
166.0
|
|
|
$
|
178.4
|
|
Fair value of plan assets
|
$
|
142.4
|
|
|
$
|
132.2
|
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
2.6
|
|
|
$
|
2.4
|
|
|
$
|
3.4
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
Interest cost
|
7.6
|
|
|
8.2
|
|
|
9.3
|
|
|
0.4
|
|
|
0.5
|
|
|
0.7
|
|
||||||
Expected return on plan assets
|
(10.9
|
)
|
|
(10.5
|
)
|
|
(11.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss (gain)
|
7.7
|
|
|
7.9
|
|
|
4.8
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
||||||
Amortization of prior service cost (credit)
|
(0.8
|
)
|
|
(0.8
|
)
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Curtailment gain
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
||||||
Recognition of loss on special termination benefit
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|||||||
Net periodic benefit cost
|
6.2
|
|
|
7.3
|
|
|
6.4
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
0.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss (gain)
|
(24.7
|
)
|
|
7.0
|
|
|
21.0
|
|
|
3.0
|
|
|
(0.4
|
)
|
|
(0.8
|
)
|
||||||
Amortization of unrecognized (loss) gain
|
(7.7
|
)
|
|
(7.9
|
)
|
|
(3.0
|
)
|
|
0.2
|
|
|
0.3
|
|
|
—
|
|
||||||
Prior service credit
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost (credit)
|
0.8
|
|
|
0.8
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total recognized in other comprehensive income
|
(31.6
|
)
|
|
(0.1
|
)
|
|
11.0
|
|
|
3.2
|
|
|
(0.1
|
)
|
|
(0.8
|
)
|
||||||
Total recognized in net periodic benefit cost and
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
other comprehensive income
|
$
|
(25.4
|
)
|
|
$
|
7.2
|
|
|
$
|
17.4
|
|
|
$
|
3.0
|
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||
Weighted Average Assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
4.90
|
%
|
|
4.10
|
%
|
|
4.80
|
%
|
|
4.90
|
%
|
|
4.10
|
%
|
|
4.90
|
%
|
Expected return on plan assets
|
8.00
|
%
|
|
8.25
|
%
|
|
8.25
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Rate of compensation increase
|
3.00
|
%
|
|
3.00
|
%
|
|
4.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
|
4.00
|
%
|
Initial health care cost trend rate
|
|
|
|
|
|
|
7.50
|
%
|
|
8.00
|
%
|
|
9.00
|
%
|
|||
Ultimate rate
|
|
|
|
|
|
|
4.50
|
%
|
|
4.50
|
%
|
|
5.00
|
%
|
|||
Year ultimate rate is reached
|
|
|
|
|
|
|
2028
|
|
|
2020
|
|
2016
|
|
Other Post-retirement Benefits
|
||||||||||||||||||||||
|
One Percentage Point
|
||||||||||||||||||||||
|
Increase
|
|
Decrease
|
||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
Effect on total of service and interest cost components
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Effect on post-retirement benefit obligation
|
$
|
1.2
|
|
|
$
|
0.6
|
|
|
$
|
0.5
|
|
|
$
|
(1.0
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(0.5
|
)
|
|
|
Pension
|
|
Non-qualified
|
|
Post-retirement
|
||||||
Year
|
|
Benefits
|
|
Plan Benefits
|
|
Benefits
|
||||||
2014
|
|
$
|
10.4
|
|
|
$
|
0.1
|
|
|
$
|
0.8
|
|
2015
|
|
$
|
10.6
|
|
|
$
|
0.7
|
|
|
$
|
0.8
|
|
2016
|
|
$
|
10.9
|
|
|
$
|
3.5
|
|
|
$
|
0.8
|
|
2017
|
|
$
|
11.0
|
|
|
$
|
0.1
|
|
|
$
|
0.8
|
|
2018
|
|
$
|
11.2
|
|
|
$
|
1.0
|
|
|
$
|
0.7
|
|
2019-2023
|
|
$
|
60.1
|
|
|
$
|
0.5
|
|
|
$
|
2.5
|
|
a.
|
Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
|
b.
|
If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
|
c.
|
If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
|
|
|
Pension Protection Act Zone Status
|
FIP/RP Status
|
Contribution by Entity
|
Surcharge Imposed
|
Expiration Date
|
Current Plan Year End
|
||
|
EIN Plan No.
|
2013
|
Pending/Implemented
|
Oct. 1 - Dec. 31, 2013
|
|||||
Fund
|
|
|
|
|
|
|
|
||
Operating Engineers
|
94-6090764; 001
|
Red
|
Yes
|
$
|
1.0
|
|
No
|
8/31/14
|
12/31/13
|
Laborers National
|
52-6074345; 001
|
Red
|
Yes
|
—
|
|
No
|
8/31/15
|
12/31/13
|
|
Hawaii Laborers
|
99-6012128; 001
|
Green
|
No
|
0.1
|
|
No
|
8/1/15
|
2/28/13
|
|
Hawaii Laborers
|
99-6012128; 001
|
Green
|
No
|
—
|
|
No
|
9/30/14
|
2/28/13
|
|
|
|
|
|
$
|
1.1
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
17.1
|
|
|
$
|
4.3
|
|
|
$
|
8.0
|
|
State
|
2.1
|
|
|
0.8
|
|
|
2.1
|
|
|||
Current
|
19.2
|
|
|
5.1
|
|
|
10.1
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
Federal
|
(8.0
|
)
|
|
(10.5
|
)
|
|
(6.3
|
)
|
|||
State
|
(2.7
|
)
|
|
(2.2
|
)
|
|
(2.8
|
)
|
|||
Deferred
|
(10.7
|
)
|
|
(12.7
|
)
|
|
(9.1
|
)
|
|||
Total continuing operations tax expense (benefit)
|
$
|
8.5
|
|
|
$
|
(7.6
|
)
|
|
$
|
1.0
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
Computed federal income tax expense
|
$
|
8.3
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
State income taxes
|
1.0
|
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|||
Non-deductible transaction costs
|
1.6
|
|
|
1.7
|
|
|
0.8
|
|
|||
Charitable contribution
|
(0.2
|
)
|
|
(3.5
|
)
|
|
—
|
|
|||
Solar tax credits
|
—
|
|
|
(2.9
|
)
|
|
—
|
|
|||
Other—net
|
(2.2
|
)
|
|
(2.6
|
)
|
|
0.4
|
|
|||
Income tax expense (benefit)
|
$
|
8.5
|
|
|
$
|
(7.6
|
)
|
|
$
|
1.0
|
|
|
2013
|
|
2012
|
||||
Deferred tax assets:
|
|
|
|
||||
Benefit plans
|
$
|
23.6
|
|
|
$
|
32.2
|
|
Capitalized costs
|
24.1
|
|
|
17.8
|
|
||
Charitable contribution
|
1.5
|
|
|
4.0
|
|
||
Basis differences for property and equipment
|
—
|
|
|
3.6
|
|
||
Joint ventures and other investments
|
15.0
|
|
|
5.5
|
|
||
Impairment and amortization
|
0.5
|
|
|
4.1
|
|
||
Insurance and other reserves
|
6.7
|
|
|
5.4
|
|
||
Solar credit
|
3.5
|
|
|
2.9
|
|
||
Other
|
5.4
|
|
|
0.8
|
|
||
Total deferred tax assets
|
80.3
|
|
|
76.3
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
|
|
||
Tax-deferred gains on real estate transactions
|
225.4
|
|
|
211.4
|
|
||
Basis differences for property and equipment
|
23.4
|
|
|
—
|
|
||
Straight-line rental income and advanced rent
|
7.2
|
|
|
8.1
|
|
||
Other
|
5.2
|
|
|
1.9
|
|
||
Total deferred tax liabilities
|
261.2
|
|
|
221.4
|
|
||
|
|
|
|
||||
Net deferred tax liability
|
$
|
180.9
|
|
|
$
|
145.1
|
|
Balance at January 1, 2011
|
$
|
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
|
—
|
|
|
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, 2013
|
$
|
—
|
|
|
2012
Plan
Restricted
Stock
Units
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Outstanding, January 1, 2013
|
330.0
|
|
|
$20.43
|
Granted
|
121.1
|
|
|
$34.12
|
Vested
|
(156.5
|
)
|
|
$18.57
|
Canceled
|
(52.3
|
)
|
|
$22.96
|
Outstanding, December 31, 2013
|
242.3
|
|
|
$27.92
|
|
2013
|
|
2012
|
|
2011
|
||||||
Share-based expense (net of estimated forfeitures):
|
|
|
|
|
|
||||||
Stock options
|
$
|
0.7
|
|
|
$
|
1.1
|
|
|
$
|
1.2
|
|
Incremental share-based compensation cost related to separation
|
0.5
|
|
|
1.2
|
|
|
—
|
|
|||
Non-vested stock & restricted stock units
|
3.0
|
|
|
3.1
|
|
|
3.6
|
|
|||
Total share-based expense
|
4.2
|
|
|
5.4
|
|
|
4.8
|
|
|||
Total recognized tax benefit
|
(1.3
|
)
|
|
(1.8
|
)
|
|
(1.2
|
)
|
|||
Share-based expense (net of tax)
|
$
|
2.9
|
|
|
$
|
3.6
|
|
|
$
|
3.6
|
|
|
|
|
|
|
|
||||||
Cash received upon option exercise
|
$
|
7.6
|
|
|
$
|
20.9
|
|
|
$
|
6.1
|
|
Intrinsic value of options exercised
|
$
|
6.7
|
|
|
$
|
13.4
|
|
|
$
|
3.5
|
|
Tax benefit realized upon option exercise
|
$
|
2.5
|
|
|
$
|
2.3
|
|
|
$
|
1.3
|
|
Fair value of stock vested
|
$
|
5.2
|
|
|
$
|
4.2
|
|
|
$
|
5.5
|
|
Standby letters of credit
|
(a)
|
$
|
11.4
|
|
Bonds
|
(b)
|
$
|
404.1
|
|
(a)
|
Consists of standby letters of credit, issued by the Company’s lenders under the Company’s revolving credit facilities, and relate primarily to the Company’s real estate activities. In the event the letters of credit are drawn upon, the Company would be obligated to reimburse the issuer of the letter of credit. None of the letters of credit has been drawn upon to date, and the Company believes it is unlikely that any of these letters of credit will be drawn upon.
|
(b)
|
Represents bonds related to construction and real estate activities in Hawaii. Approximately
$380.5 million
is related to construction bonds issued by third party sureties (bid, performance, and payment bonds) and the remainder is related to commercial bonds issued by third party sureties (permit, subdivision, license, and notary bonds). In the event the bonds are drawn upon, the Company would be obligated to reimburse the surety that issued the bond. None of the bonds has been drawn upon to date, and the Company believes it is unlikely that any of these bonds will be drawn upon.
|
|
As of December 31,
|
||||||
|
2013
|
|
2012
|
||||
Interest rate swap liability - floating to fixed rate
|
$
|
2.8
|
|
|
$
|
—
|
|
|
|
||||||||||
For the Year Ended December 31,
|
2013
|
|
2012
|
|
2011
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Real Estate:
|
|
|
|
|
|
||||||
Leasing
|
$
|
110.4
|
|
|
$
|
100.6
|
|
|
$
|
99.7
|
|
Development and Sales
|
423.0
|
|
|
32.2
|
|
|
59.8
|
|
|||
Less amounts reported in discontinued operations
1
|
(369.2
|
)
|
|
(45.3
|
)
|
|
(81.9
|
)
|
|||
Natural materials and construction
|
54.9
|
|
|
—
|
|
|
—
|
|
|||
Agribusiness
|
146.1
|
|
|
182.3
|
|
|
157.5
|
|
|||
Reconciling items
2
|
—
|
|
|
(8.3
|
)
|
|
—
|
|
|||
Total revenue
|
$
|
365.2
|
|
|
$
|
261.5
|
|
|
$
|
235.1
|
|
Operating Profit (Loss)
|
|
|
|
|
|
||||||
Real Estate
1
:
|
|
|
|
|
|
||||||
Leasing
|
$
|
43.4
|
|
|
$
|
41.6
|
|
|
$
|
39.3
|
|
Development and Sales
3
|
44.4
|
|
|
(4.4
|
)
|
|
15.5
|
|
|||
Less amounts reported in discontinued operations
1
|
(36.7
|
)
|
|
(21.1
|
)
|
|
(38.8
|
)
|
|||
Natural materials and construction
4
|
2.9
|
|
|
—
|
|
|
—
|
|
|||
Agribusiness
|
10.7
|
|
|
20.8
|
|
|
22.2
|
|
|||
Total operating profit
|
64.7
|
|
|
36.9
|
|
|
38.2
|
|
|||
Interest Expense
|
(19.1
|
)
|
|
(14.9
|
)
|
|
(17.1
|
)
|
|||
General Corporate Expenses
|
(17.4
|
)
|
|
(15.1
|
)
|
|
(19.9
|
)
|
|||
Separation/Acquisition Costs
|
(4.6
|
)
|
|
(6.8
|
)
|
|
—
|
|
|||
Income From Continuing Operations Before Income Taxes
|
23.6
|
|
|
0.1
|
|
|
1.2
|
|
|||
Income Tax Expense (benefit)
|
8.5
|
|
|
(7.6
|
)
|
|
1.0
|
|
|||
Income From Continuing Operations
|
15.1
|
|
|
7.7
|
|
|
0.2
|
|
|||
Income From Discontinued Operations (net of income taxes)
|
22.3
|
|
|
12.8
|
|
|
23.3
|
|
|||
Net Income
|
37.4
|
|
|
20.5
|
|
|
23.5
|
|
|||
Income Attributable to Noncontrolling Interest
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|||
Net Income Attributable to A&B
|
$
|
36.9
|
|
|
$
|
20.5
|
|
|
$
|
23.5
|
|
1
|
Amounts recast to reflect discontinued operations.
|
2
|
Represents the sale of a 286-acre parcel in 2012 classified as "Gain on sale of agricultural parcel" in the consolidated statements of income, but reflected as revenue for segment reporting purposes.
|
3
|
The Real Estate Development and Sales segment includes approximately
$4.2 million
,
$(8.3) million
, and
($7.9) million
in equity in (loss) earnings from its various real estate joint ventures for 2013, 2012, and 2011, respectively. Included in operating profit are non-cash impairment and equity losses of
$6.3 million
related to the consolidation of The Shops at Kukui'ula in 2013,
$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.
|
4
|
Includes the results of Grace from the acquisition date of October 1, 2013 through December 31, 2013.
|
As of December 31,
|
2013
|
|
2012
|
|
2011
|
||||||
Identifiable Assets:
|
|
|
|
|
|
||||||
Real Estate:
|
|
|
|
|
|
||||||
Leasing
|
$
|
1,113.4
|
|
|
$
|
771.3
|
|
|
$
|
772.0
|
|
Development and Sales
5
|
640.9
|
|
|
504.8
|
|
|
451.5
|
|
|||
Agribusiness
|
160.0
|
|
|
149.9
|
|
|
157.8
|
|
|||
Natural materials and construction
|
358.7
|
|
|
—
|
|
|
—
|
|
|||
Other
|
12.2
|
|
|
11.3
|
|
|
5.3
|
|
|||
Total assets
|
$
|
2,285.2
|
|
|
$
|
1,437.3
|
|
|
$
|
1,386.6
|
|
|
|
|
|
|
|
||||||
Capital Expenditures:
|
|
|
|
|
|
||||||
Real Estate:
|
|
|
|
|
|
||||||
Leasing
6
|
$
|
488.5
|
|
|
$
|
23.1
|
|
|
$
|
43.6
|
|
Development and Sales
7
|
0.1
|
|
|
—
|
|
|
5.2
|
|
|||
Agribusiness
8
|
11.8
|
|
|
31.7
|
|
|
10.5
|
|
|||
Natural materials and construction
|
4.8
|
|
|
—
|
|
|
—
|
|
|||
Other
|
0.1
|
|
|
—
|
|
|
—
|
|
|||
Total capital expenditures
|
$
|
505.3
|
|
|
$
|
54.8
|
|
|
$
|
59.3
|
|
|
|
|
|
|
|
||||||
Depreciation and Amortization:
|
|
|
|
|
|
||||||
Real Estate:
|
|
|
|
|
|
||||||
Leasing
1
|
$
|
24.3
|
|
|
$
|
22.0
|
|
|
$
|
21.6
|
|
Development and Sales
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|||
Agribusiness
|
11.7
|
|
|
11.6
|
|
|
11.9
|
|
|||
Natural materials and construction
|
4.4
|
|
|
—
|
|
|
—
|
|
|||
Other
|
1.1
|
|
|
1.3
|
|
|
1.1
|
|
|||
Total depreciation and amortization
|
$
|
41.7
|
|
|
$
|
35.1
|
|
|
$
|
34.8
|
|
5
|
The Real Estate Development and Sales segment includes approximately
$335.0 million
,
$319.7 million
, and
$290.1 million
related to its investment in various real estate joint ventures as of December 31, 2013, 2012, and 2011, respectively.
|
6
|
Represents gross capital additions to the leasing portfolio, including gross tax-deferred property purchases, but excluding the assumption of debt, 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
$150.6 million
,
$37.2 million
, and
$13.8 million
for 2013, 2012, and 2011, respectively. Investments in joint ventures were
$22.2 million
,
$17.4 million
, and
$27.9 million
in 2013, 2012, and 2011, respectively.
|
|
2013
|
||||||||||||||
(Unaudited)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Leasing
|
$
|
26.3
|
|
|
$
|
26.2
|
|
|
$
|
27.5
|
|
|
$
|
30.4
|
|
Development and Sales
|
15.4
|
|
|
1.4
|
|
|
47.4
|
|
|
358.8
|
|
||||
Less amounts reported in discontinued operations
1
|
(23.6
|
)
|
|
(8.4
|
)
|
|
(45.9
|
)
|
|
(291.3
|
)
|
||||
Natural materials and construction
|
—
|
|
|
—
|
|
|
—
|
|
|
54.9
|
|
||||
Agribusiness
|
14.7
|
|
|
43.5
|
|
|
35.9
|
|
|
52.0
|
|
||||
Reconciling items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total revenue
|
$
|
32.8
|
|
|
$
|
62.7
|
|
|
$
|
64.9
|
|
|
$
|
204.8
|
|
Operating Profit (Loss)
|
|
|
|
|
|
|
|
||||||||
Real Estate
1
:
|
|
|
|
|
|
|
|
||||||||
Leasing
|
$
|
10.9
|
|
|
$
|
10.6
|
|
|
$
|
11.2
|
|
|
$
|
10.7
|
|
Development and Sales
3
|
2.4
|
|
|
(0.7
|
)
|
|
4.6
|
|
|
38.1
|
|
||||
Less amounts reported in discontinued operations
1
|
(8.2
|
)
|
|
(3.8
|
)
|
|
(11.8
|
)
|
|
(12.9
|
)
|
||||
Natural materials and construction
|
—
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
||||
Agribusiness
|
3.8
|
|
|
8.3
|
|
|
2.2
|
|
|
(3.6
|
)
|
||||
Total operating profit
|
8.9
|
|
|
14.4
|
|
|
6.2
|
|
|
35.2
|
|
||||
Interest Expense
|
(3.6
|
)
|
|
(3.9
|
)
|
|
(4.2
|
)
|
|
(7.4
|
)
|
||||
General Corporate Expenses
|
(4.4
|
)
|
|
(3.7
|
)
|
|
(3.4
|
)
|
|
(5.9
|
)
|
||||
Grace Acquisition Costs
|
(1.0
|
)
|
|
(1.5
|
)
|
|
(2.0
|
)
|
|
(0.1
|
)
|
||||
Income (Loss) From Continuing Operations Before Income Taxes
|
(0.1
|
)
|
|
5.3
|
|
|
(3.4
|
)
|
|
21.8
|
|
||||
Income Tax Expense (Benefit)
|
(0.1
|
)
|
|
2.6
|
|
|
(0.6
|
)
|
|
6.6
|
|
||||
Income (Loss) From Continuing Operations
|
—
|
|
|
2.7
|
|
|
(2.8
|
)
|
|
15.2
|
|
||||
Income From Discontinued Operations (net of income taxes)
|
5.0
|
|
|
2.3
|
|
|
7.2
|
|
|
7.8
|
|
||||
Net Income
|
5.0
|
|
|
5.0
|
|
|
4.4
|
|
|
23.0
|
|
||||
Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||
Net Income Attributable to A&B
|
$
|
5.0
|
|
|
$
|
5.0
|
|
|
$
|
4.4
|
|
|
$
|
22.5
|
|
Earnings Per Share Attributable to A&B:
|
|
|
|
|
|
|
|
|||||||||
|
Basic
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
|
$
|
0.46
|
|
|
Diluted
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
|
$
|
0.46
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|||||||||
|
Basic
|
43.0
|
|
|
43.1
|
|
|
43.1
|
|
|
48.6
|
|
||||
|
Diluted
|
43.6
|
|
|
43.7
|
|
|
43.8
|
|
|
49.2
|
|
|
2012
|
||||||||||||||
(Unaudited)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Leasing
|
$
|
25.5
|
|
|
$
|
25.5
|
|
|
$
|
24.9
|
|
|
$
|
24.7
|
|
Development and Sales
|
11.4
|
|
|
7.0
|
|
|
8.4
|
|
|
5.4
|
|
||||
Less amounts reported in discontinued operations
1
|
(18.3
|
)
|
|
(9.1
|
)
|
|
(9.0
|
)
|
|
(8.9
|
)
|
||||
Agribusiness
|
13.6
|
|
|
39.9
|
|
|
67.9
|
|
|
60.9
|
|
||||
Reconciling items
2
|
—
|
|
|
—
|
|
|
(8.3
|
)
|
|
—
|
|
||||
Total revenue
|
$
|
32.2
|
|
|
$
|
63.3
|
|
|
$
|
83.9
|
|
|
$
|
82.1
|
|
Operating Profit (Loss)
|
|
|
|
|
|
|
|
||||||||
Real Estate
1
:
|
|
|
|
|
|
|
|
||||||||
Leasing
|
$
|
10.7
|
|
|
$
|
10.5
|
|
|
$
|
10.2
|
|
|
$
|
10.2
|
|
Development and Sales
3
|
0.9
|
|
|
(9.9
|
)
|
|
3.3
|
|
|
1.3
|
|
||||
Less amounts reported in discontinued operations
1
|
(8.4
|
)
|
|
(4.3
|
)
|
|
(4.2
|
)
|
|
(4.2
|
)
|
||||
Natural materials and construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Agribusiness
|
3.5
|
|
|
7.0
|
|
|
9.1
|
|
|
1.2
|
|
||||
Total operating profit
|
6.7
|
|
|
3.3
|
|
|
18.4
|
|
|
8.5
|
|
||||
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
|
(3.8
|
)
|
|
(9.1
|
)
|
|
11.1
|
|
|
1.9
|
|
||||
Income Tax Expense (benefit)
|
(1.5
|
)
|
|
(2.1
|
)
|
|
0.3
|
|
|
(4.3
|
)
|
||||
Income (Loss) From Continuing Operations
|
(2.3
|
)
|
|
(7.0
|
)
|
|
10.8
|
|
|
6.2
|
|
||||
Income From Discontinued Operations (net of income taxes)
|
5.1
|
|
|
2.6
|
|
|
2.6
|
|
|
2.5
|
|
||||
Net Income (Loss)
|
2.8
|
|
|
(4.4
|
)
|
|
13.4
|
|
|
8.7
|
|
||||
Income Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net Income (Loss) Attributable to A&B
|
$
|
2.8
|
|
|
$
|
(4.4
|
)
|
|
$
|
13.4
|
|
|
$
|
8.7
|
|
Earnings Per Share Attributable to A&B:
|
|
|
|
|
|
|
|
|||||||||
|
Basic
|
$
|
0.07
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.31
|
|
|
$
|
0.20
|
|
|
Diluted
|
$
|
0.07
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.31
|
|
|
$
|
0.20
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|||||||||
|
Basic
|
42.4
|
|
|
42.4
|
|
|
42.6
|
|
|
42.9
|
|
||||
|
Diluted
|
42.4
|
|
|
42.4
|
|
|
43.3
|
|
|
43.5
|
|
1
|
Amounts recast to reflect discontinued operations.
|
2
|
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.
|
3
|
The Real Estate Development and Sales segment operating profit includes non-cash impairment loss on consolidation of
$6.3 million
in the third quarter of 2013 related to the consolidation of The Shops at Kukui'ula and non-cash impairment and equity losses of
$9.8 million
in the second quarter of 2012 related to the Company’s Bakersfield and Santa Barbara real estate projects.
|
•
|
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.
|
(in millions)
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Kailua Industrial/Other (HI)
|
$
|
—
|
|
$
|
10.5
|
|
$
|
2.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10.5
|
|
$
|
2.0
|
|
$
|
12.5
|
|
$
|
—
|
|
Various
|
2013
|
||
Komohana Industrial Park (HI)
|
—
|
|
25.2
|
|
10.8
|
|
0.4
|
|
—
|
|
25.2
|
|
11.2
|
|
36.4
|
|
(1.1
|
)
|
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
|
|
(1.7
|
)
|
1985, 1993
|
|
|||||||||||
Waipio Industrial (HI)
|
—
|
|
19.6
|
|
7.7
|
|
0.2
|
|
—
|
|
19.6
|
|
7.9
|
|
27.5
|
|
(1.1
|
)
|
1988-1989
|
2009
|
|||||||||||
Midstate 99 Distribution Ctr. (CA)
|
11.5
|
|
2.7
|
|
29.6
|
|
1.1
|
|
—
|
|
2.7
|
|
30.7
|
|
33.4
|
|
(4.3
|
)
|
2002-2008
|
2008
|
|||||||||||
Sparks Business Center (NV)
|
—
|
|
3.2
|
|
17.2
|
|
3.0
|
|
—
|
|
3.2
|
|
20.2
|
|
23.4
|
|
(6.6
|
)
|
1996-1998
|
2002
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Office :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Mililani South (HI)
|
—
|
|
7.0
|
|
3.5
|
|
0.1
|
|
—
|
|
7.0
|
|
3.6
|
|
10.6
|
|
(0.2
|
)
|
1992 & 2006
|
2012
|
|||||||||||
Judd Building (HI)
|
—
|
|
1.0
|
|
2.1
|
|
0.8
|
|
—
|
|
1.0
|
|
2.9
|
|
3.9
|
|
(1.2
|
)
|
1898/1979
|
2000
|
|||||||||||
Kahului Office Building (HI)
|
—
|
|
1.0
|
|
0.4
|
|
5.3
|
|
—
|
|
1.0
|
|
5.7
|
|
6.7
|
|
(6.3
|
)
|
1974
|
|
|||||||||||
Kahului Office Center (HI)
|
—
|
|
—
|
|
—
|
|
5.3
|
|
—
|
|
—
|
|
5.3
|
|
5.3
|
|
(3.2
|
)
|
1991
|
|
|||||||||||
Lono Center (HI)
|
—
|
|
—
|
|
1.4
|
|
0.8
|
|
—
|
|
—
|
|
2.2
|
|
2.2
|
|
(1.2
|
)
|
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
|
|
(0.6
|
)
|
1901/1980
|
1996
|
|||||||||||
Concorde Commerce Center (AZ)
|
—
|
|
3.9
|
|
20.9
|
|
5.8
|
|
—
|
|
3.9
|
|
26.7
|
|
30.6
|
|
(4.2
|
)
|
1998
|
2006
|
|||||||||||
Deer Valley Financial Center (AZ)
|
—
|
|
3.4
|
|
19.2
|
|
2.7
|
|
—
|
|
3.4
|
|
21.9
|
|
25.3
|
|
(5.3
|
)
|
2001
|
2005
|
|||||||||||
2890 Gateway Oaks (CA)
|
—
|
|
1.7
|
|
10.8
|
|
1.0
|
|
—
|
|
1.7
|
|
11.8
|
|
13.5
|
|
(2.5
|
)
|
1999
|
2006
|
|||||||||||
Ninigret Office X and XI (UT)
|
—
|
|
3.1
|
|
17.7
|
|
3.0
|
|
—
|
|
3.1
|
|
20.7
|
|
23.8
|
|
(5.3
|
)
|
1999 & 2002
|
2006
|
|||||||||||
1800/ 1820 Preston Park (TX)
|
—
|
|
4.5
|
|
19.9
|
|
4.4
|
|
—
|
|
4.5
|
|
24.3
|
|
28.8
|
|
(5.1
|
)
|
1997-1998
|
2006
|
|||||||||||
2868 Prospect Park (CA)
|
—
|
|
2.9
|
|
18.1
|
|
8.1
|
|
—
|
|
2.9
|
|
26.2
|
|
29.1
|
|
(11.6
|
)
|
1998
|
1998
|
|||||||||||
San Pedro Plaza (TX)
|
—
|
|
4.6
|
|
11.9
|
|
7.3
|
|
—
|
|
4.6
|
|
19.2
|
|
23.8
|
|
(9.0
|
)
|
1985
|
1998, 2000
|
|||||||||||
Union Bank (WA)
|
—
|
|
3.4
|
|
10.5
|
|
0.4
|
|
—
|
|
3.4
|
|
10.9
|
|
14.3
|
|
(0.9
|
)
|
1993 & 2008
|
2011
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Retail :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gateway at Mililani Mauka (HI)
|
—
|
|
5.0
|
|
4.7
|
|
0.2
|
|
—
|
|
5.0
|
|
4.9
|
|
9.9
|
|
(0.3
|
)
|
2006 & 2013
|
2011
|
|||||||||||
Kahului Shopping Center (HI)
|
—
|
|
—
|
|
—
|
|
2.4
|
|
—
|
|
—
|
|
2.4
|
|
2.4
|
|
(1.4
|
)
|
1951
|
|
|||||||||||
Kailua Grocery Anchored (HI)
|
11.3
|
|
54.4
|
|
49.3
|
|
—
|
|
—
|
|
54.4
|
|
49.3
|
|
103.7
|
|
(0.1
|
)
|
Various
|
2013
|
|||||||||||
Kailua Retail Other (HI)
|
—
|
|
29.6
|
|
26.7
|
|
—
|
|
—
|
|
29.6
|
|
26.7
|
|
56.3
|
|
—
|
|
Various
|
2013
|
|||||||||||
Kaneohe Bay Shopping Ctr. (HI)
|
—
|
|
—
|
|
13.4
|
|
1.8
|
|
—
|
|
—
|
|
15.2
|
|
15.2
|
|
(4.6
|
)
|
1971
|
2001
|
|||||||||||
Kunia Shopping Center (HI)
|
—
|
|
2.7
|
|
10.6
|
|
1.3
|
|
—
|
|
2.7
|
|
11.9
|
|
14.6
|
|
(3.0
|
)
|
2004
|
2002
|
|||||||||||
Lahaina Square (HI)
|
—
|
|
4.6
|
|
3.7
|
|
0.3
|
|
—
|
|
4.6
|
|
4.0
|
|
8.6
|
|
(0.3
|
)
|
1973
|
2010
|
|||||||||||
Lanihau Marketplace (HI)
|
—
|
|
9.4
|
|
13.2
|
|
0.4
|
|
—
|
|
9.4
|
|
13.6
|
|
23.0
|
|
(1.3
|
)
|
1987
|
2010
|
|||||||||||
Maui Mall (HI)
|
—
|
|
0.1
|
|
9.2
|
|
16.6
|
|
—
|
|
0.1
|
|
25.8
|
|
25.9
|
|
(15.4
|
)
|
1971
|
|
|||||||||||
Napili Plaza (HI)
|
—
|
|
9.4
|
|
8.0
|
|
—
|
|
—
|
|
9.4
|
|
8.0
|
|
17.4
|
|
(0.2
|
)
|
1991
|
2013
|
|||||||||||
Pearl Highlands Center (HI)
|
61.8
|
|
43.4
|
|
96.2
|
|
—
|
|
—
|
|
43.4
|
|
96.2
|
|
139.6
|
|
(0.9
|
)
|
1993
|
2013
|
|||||||||||
Port Allen Marina Ctr. (HI)
|
—
|
|
—
|
|
3.4
|
|
1.0
|
|
—
|
|
—
|
|
4.4
|
|
4.4
|
|
(1.7
|
)
|
2002
|
|
|||||||||||
Waipio Shopping Center (HI)
|
—
|
|
24.0
|
|
7.6
|
|
0.3
|
|
—
|
|
24.0
|
|
7.9
|
|
31.9
|
|
(0.9
|
)
|
1986-2004
|
2009
|
|||||||||||
Little Cottonwood Center (UT)
|
6.1
|
|
12.2
|
|
9.1
|
|
0.9
|
|
—
|
|
12.2
|
|
10.0
|
|
22.2
|
|
(1.0
|
)
|
1998-2008
|
2010
|
|||||||||||
Royal MacArthur Center (TX)
|
—
|
|
3.5
|
|
10.1
|
|
1.5
|
|
—
|
|
3.5
|
|
11.6
|
|
15.1
|
|
(2.2
|
)
|
2006
|
2007
|
|||||||||||
The Shops at Kuiui'ula (HI)
|
44.0
|
|
8.9
|
|
30.1
|
|
—
|
|
—
|
|
8.9
|
|
30.1
|
|
39.0
|
|
(0.2
|
)
|
2009
|
2013
|
|||||||||||
Waianae Mall (HI)
|
19.9
|
|
17.4
|
|
10.1
|
|
0.7
|
|
—
|
|
17.4
|
|
10.8
|
|
28.2
|
|
(0.3
|
)
|
0.0
|
|
—
|
|
|||||||||
Wilshire Shopping Center (CO)
|
—
|
|
1.3
|
|
1.3
|
|
0.4
|
|
—
|
|
1.3
|
|
1.7
|
|
3.0
|
|
(0.9
|
)
|
0.0
|
|
—
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Oahu Ground Leases (HI)
|
—
|
|
187.7
|
|
0.6
|
|
—
|
|
—
|
|
187.7
|
|
0.6
|
|
188.3
|
|
—
|
|
N/A
|
2013
|
|||||||||||
Other miscellaneous investments
|
—
|
|
19.5
|
|
0.3
|
|
20.0
|
|
—
|
|
19.5
|
|
20.3
|
|
39.8
|
|
(10.1
|
)
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total
|
$
|
154.6
|
|
$
|
532.6
|
|
$
|
513.0
|
|
$
|
102.0
|
|
$
|
—
|
|
$
|
532.6
|
|
$
|
615.0
|
|
$
|
1,147.6
|
|
$
|
(116.9
|
)
|
|
|
(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
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2.4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2.4
|
|
$
|
2.4
|
|
$
|
—
|
|
The Collection
|
—
|
|
—
|
|
—
|
|
4.5
|
|
—
|
|
—
|
|
4.5
|
|
4.5
|
|
—
|
|
|||||||||
Maui Business Park II
|
—
|
|
—
|
|
—
|
|
53.6
|
|
—
|
|
—
|
|
53.6
|
|
53.6
|
|
—
|
|
|||||||||
Keola 'O 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 B-1
|
—
|
|
4.6
|
|
—
|
|
—
|
|
—
|
|
4.6
|
|
—
|
|
4.6
|
|
—
|
|
|||||||||
Wailea MF-7
|
—
|
|
2.9
|
|
—
|
|
5.9
|
|
—
|
|
2.9
|
|
5.9
|
|
8.8
|
|
—
|
|
|||||||||
Aina ‘O Kane
|
—
|
|
—
|
|
—
|
|
1.2
|
|
—
|
|
—
|
|
1.2
|
|
1.2
|
|
—
|
|
|||||||||
Haliimaile
|
—
|
|
—
|
|
—
|
|
0.9
|
|
—
|
|
—
|
|
0.9
|
|
0.9
|
|
—
|
|
|||||||||
Kahala Portfolio
|
42.0
|
|
104.1
|
|
—
|
|
—
|
|
—
|
|
104.1
|
|
—
|
|
104.1
|
|
—
|
|
|||||||||
Kahului Town Center
|
—
|
|
—
|
|
—
|
|
2.2
|
|
—
|
|
—
|
|
2.2
|
|
2.2
|
|
—
|
|
|||||||||
Wailea SF-8
|
—
|
|
1.3
|
|
—
|
|
—
|
|
—
|
|
1.3
|
|
—
|
|
1.3
|
|
—
|
|
|||||||||
Wailea MF-6
|
—
|
|
5.8
|
|
—
|
|
—
|
|
—
|
|
5.8
|
|
—
|
|
5.8
|
|
—
|
|
|||||||||
Wailea MF-10
|
—
|
|
3.8
|
|
—
|
|
0.5
|
|
—
|
|
3.8
|
|
0.5
|
|
4.3
|
|
—
|
|
|||||||||
Wailea MF-16
|
—
|
|
2.7
|
|
—
|
|
—
|
|
—
|
|
2.7
|
|
—
|
|
2.7
|
|
—
|
|
|||||||||
Wailea, other
|
—
|
|
15.3
|
|
—
|
|
1.4
|
|
—
|
|
15.3
|
|
1.4
|
|
16.7
|
|
—
|
|
|||||||||
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
|
—
|
|
—
|
|
—
|
|
1.3
|
|
—
|
|
—
|
|
1.3
|
|
1.3
|
|
—
|
|
|||||||||
Other Maui landholdings
|
—
|
|
—
|
|
—
|
|
2.5
|
|
—
|
|
—
|
|
2.5
|
|
2.5
|
|
—
|
|
|||||||||
Other Kauai landholdings
|
—
|
|
—
|
|
—
|
|
1.4
|
|
—
|
|
—
|
|
1.4
|
|
1.4
|
|
—
|
|
|||||||||
Total
|
$
|
42.0
|
|
$
|
151.0
|
|
$
|
—
|
|
$
|
103.5
|
|
$
|
—
|
|
$
|
151.0
|
|
$
|
103.5
|
|
$
|
254.5
|
|
$
|
—
|
|
(1)
|
See Note 9 to consolidated financial statements.
|
(2)
|
Depreciation is computed based upon the following estimated useful lives:
|
Reconciliation of Real Estate (in millions)
|
2013
|
|
2012
|
|
2011
|
||||||
Balance at beginning of year
|
$
|
1,022.0
|
|
|
$
|
998.5
|
|
|
$
|
964.1
|
|
Additions and improvements
|
758.5
|
|
|
63.2
|
|
|
70.7
|
|
|||
Impairments
|
—
|
|
|
(5.1
|
)
|
|
—
|
|
|||
Dispositions, retirements and other adjustments
|
(378.4
|
)
|
|
(34.6
|
)
|
|
(36.3
|
)
|
|||
Balance at end of year
|
$
|
1,402.1
|
|
|
$
|
1,022.0
|
|
|
$
|
998.5
|
|
Reconciliation of Accumulated Depreciation (in millions)
|
2013
|
|
2012
|
|
2011
|
||||||
Balance at beginning of year
|
$
|
133.8
|
|
|
$
|
115.9
|
|
|
$
|
107.2
|
|
Depreciation expense
|
19.5
|
|
|
18.3
|
|
|
17.9
|
|
|||
Dispositions, retirements and other adjustments
|
(36.4
|
)
|
|
(0.4
|
)
|
|
(9.2
|
)
|
|||
Balance at end of year
|
$
|
116.9
|
|
|
$
|
133.8
|
|
|
$
|
115.9
|
|
21.
|
Subsidiaries.
|
23.
|
Consent of Deloitte & Touche LLP dated March 3, 2014.
|
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.
|
95.
|
Mine Safety Disclosure
|
|
|
ALEXANDER & BALDWIN, INC.
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date: March 3, 2014
|
|
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
|
|
March 3, 2014
|
Stanley M. Kuriyama
|
|
and Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Paul K. Ito
|
|
Senior Vice President,
|
|
March 3, 2014
|
Paul K. Ito
|
|
Chief Financial Officer, Treasurer and Controller
|
|
|
|
|
|
|
|
/s/ W. Allen Doane
|
|
Director
|
|
March 3, 2014
|
W. Allen Doane
|
|
|
|
|
|
|
|
|
|
/s/ Walter A. Dods, Jr.
|
|
Director
|
|
March 3, 2014
|
Walter A. Dods, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ Robert S. Harrison
|
|
Director
|
|
March 3, 2014
|
Robert S. Harrison
|
|
|
|
|
|
|
|
|
|
/s/ David C. Hulihee
|
|
Director
|
|
March 3, 2014
|
David C. Hulihee
|
|
|
|
|
|
|
|
|
|
/s/ Charles G. King
|
|
Director
|
|
March 3, 2014
|
Charles G. King
|
|
|
|
|
|
|
|
|
|
/s/ Douglas M. Pasquale
|
|
Director
|
|
March 3, 2014
|
Douglas M. Pasquale
|
|
|
|
|
|
|
|
|
|
/s/ Michele K. Saito
|
|
Director
|
|
March 3, 2014
|
Michele K. Saito
|
|
|
|
|
|
|
|
|
|
/s/ Jeffrey N. Watanabe
|
|
Lead Director
|
|
March 3, 2014
|
Jeffrey N. Watanabe
|
|
|
|
|
|
|
|
|
|
/s/ Eric K. Yeaman
|
|
Director
|
|
March 3, 2014
|
Eric K. Yeaman
|
|
|
|
|
Exhibit A
|
Legal Description of the Land
|
Exhibit B
|
Definitions
|
Exhibit C
|
Conditions Precedent to Recording of the Mortgages
|
Exhibit D
|
Survey Requirements
|
Exhibit E
|
Leasing and Tenant Matters and attached Schedule 1
|
Exhibit F
|
Assignment and Assumption
|
Exhibit G
|
Mortgage Note
|
Exhibit H
|
Schedule of Lenders
|
Exhibit I
|
Post-Closing Obligations
|
Exhibit J
|
Compliance Certificate
|
Exhibit K
|
Swap Contracts
|
|
KUKUIʻULA VILLAGE LLC
, a Delaware limited liability company
By: KKV Management LLC, a Hawaii limited liability company, its Manager
By: A & B Properties, Inc., a Hawaii corporation, its Manager
By
/ s / Paul W. Hallin
Name: Paul W. Hallin
Its: Executive Vice President
By
/ s / Alyson J. Nakamura
Name: Alyson J. Nakamura
Its: Secretary
|
Borrower’s Address for Notices:
Kukui‘ula Village LLC
c/o A & B Properties, Inc.
822 Bishop Street
Honolulu, Hawaii 96813
Attention: Paul K. Ito
Telephone: (808) 525-8415
Telecopier: (808) 525-6651
Electronic Mail: pito@abinc.com
|
|
The Federal Tax Identification Number
of Borrower: 26-0535997 |
|
|
KUKUIʻULA DEVELOPMENT COMPANY (HAWAII), LLC
, a Hawaii limited liability company
By: KDC, LLC, a Hawaii limited liability company, its Managing Member
By: A & B Properties, Inc., a Hawaii corporation, its Manager
By
/ s / Paul W. Hallin
Name: Paul W. Hallin
Its: Executive Vice President
By
/ s / Alyson J. Nakamura
Name: Alyson J. Nakamura
Its: Secretary
|
Development’s Address for Notices:
Kukui‘ula Development Company (Hawaii), LLC
c/o A & B Properties, Inc.
822 Bishop Street
Honolulu, Hawaii 96813
Attention: Paul K. Ito
Telephone: (808) 525-8415
Telecopier: (808) 525-6651
Electronic Mail: pito@abinc.com
|
|
The Federal Tax Identification Number
of Development: 04-3654195 |
|
|
BANK OF AMERICA, N.A.
, as Administrative Agent
By:
/ s / Krista Knutson
Name:
Krista Knutson
Title:
Vice President
|
BANK OF AMERICA, N.A.
, as a Lender
By:
/ s / Krista Knutson___
Name:
Krista Knutson
Title:
Vice President_______
|
1.
|
By KUKUI`ULA VILLAGE LLC, a Delaware limited liability company, by DEED WITH COVENANTS of KUKUI`ULA DEVELOPMENT COMPANY (HAWAII), LLC, a Hawaii limited liability company, dated October 31, 2011, recorded as Document No. 2007-194398.
|
2.
|
By KUKUI'ULA VILLAGE LLC, a Delaware limited liability company, by QUITCLAIM DEED of KUKUI'ULA DEVELOPMENT COMPANY (HAWAII), LLC, a Hawaii limited liability company, June 28, 2012, recorded as Document No. A-46190940.
|
1.
|
By KUKUI`ULA DEVELOPMENT COMPANY (HAWAII), LLC, a Hawaii limited liability company, by (a) LIMITED WARRANTY DEED of KDC, LLC, a Hawaii limited liability company, dated March 31, 2003, recorded as Document No. 2003-058405, and (b) LIMITED WARRANTY DEED of McBRYDE SUGAR COMPANY, LIMITED, a Hawaii corporation and ALEXANDER & BALDWIN, INC., dated March 31, 2005, recorded as Document No. 2005-062345.
|
2.
|
By KUKUI`ULA DEVELOPMENT COMPANY (HAWAII), LLC, a Hawaii limited liability company, by QUITCLAIM DEED of KUKUI'ULA VILLAGE LLC, a Delaware limited liability company, dated June 28, 2012 and recorded as Document No. A-46190939.
|
Exhibit A
|
Definitions
|
Exhibit B
|
Conditions Precedent to Closing
|
Exhibit C
|
Letters of Credit
|
Exhibit D
|
Assignment and Assumption
|
Exhibit E
|
Note
|
Exhibit F
|
Schedule of Lenders
|
Exhibit G
|
Post-Closing Obligations
|
Exhibit H
|
Compliance Certificate
|
Exhibit I
|
Swap Contracts
|
|
|
|
KUKUIʻULA VILLAGE LLC
, a Delaware limited liability company
By: KKV Management LLC, a Hawaii limited liability company, its Manager
By: A & B Properties, Inc., a Hawaii corporation, its Manager
By
__/ s / Paul W. Hallin_________
Name: Paul W. Hallin
Its: Executive Vice President
By
/ s / Alyson J. Nakamura__
Name: Alyson J. Nakamura
Its: Secretary
|
Borrower’s Address for Notices:
Kukui‘ula Village LLC
c/o A & B Properties, Inc.
822 Bishop Street
Honolulu, Hawaii 96813
Attention: Paul K. Ito
Telephone: (808) 525-8415
Telecopier: (808) 525-6651
Electronic Mail: pito@abinc.com
|
|
The Federal Tax Identification Number
of Borrower: 26-0535997 |
|
|
BANK OF AMERICA, N.A.
, as a Lender
By:
/ s / Krista Knutson
Name:
Krista Knutson
Title:
Vice President
|
Name of Subsidiary
|
State or Other Jurisdiction
Under Which Organized
|
Name of Subsidiary
|
State or Other Jurisdiction
Under Which Organized
|
SUBSIDIARIES AND RELATED ENTITIES
*
A&B II, LLC
Grace Pacific LLC
G P Maintenance Solutions, Inc.
G P Roadway Solutions, Inc.
Grace Pacific Precast, Inc.
Niu Construction, Inc.
Oahu Paving Company, Inc.
Entities in which Grace Pacific LLC is involved as a member and/or manager:
GLP Asphalt LLC**
GP/RM Prestress, LLC**
Maui Paving, LLC**
Alexander & Baldwin, LLC
Entities in which Alexander & Baldwin, LLC is involved as a member and/or manager:
A&B Gateway LLC
A&B Little Cottonwood LLC
A&B Lot 100 LLC
A&B Mililani Investment LLC
A&B Napili LLC
AB Hawaii Royal MacArthur LLC
ABI Concorde LLC
ABI Mililani Gateway South LLC
ABL Ag. LLC
ABL Exchange LLC***
ABL Hamakua LLC
ABL Kelo LLC
|
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Delaware
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
|
Name of Subsidiary
|
State or Other Jurisdiction
Under Which Organized
|
McBryde Sugar Company, LLC
McBryde Resources, Inc.
Entities in which McBryde Sugar Company, LLC is involved as a member and/or manager:
McBryde Concorde LLC
A & B Properties, Inc.
Entities in which A & B Properties, Inc. is involved as a member and/or manager:
A&B Airport Hotel LLC
A&B Alakea LLC
A&B Deer Valley LLC
A&B Guam LLC
A&B Hokua LLC
A&B Ka Milo LLC
A&B Kakaako LLC
A&B Kane LLC
A&B Kukui’ula Fairway Homes LLC
ABP-EWP Development LLC**
A&B Lanihau LLC
A&B MLR LLC
MLR Golf Partners LLC**
A&B Ninigret LLC
A&B P&L LLC
A&B Pearl Highlands LLC***
A&B Riverside LLC
A&B Santa Barbara LLC
Santa Barbara Land and Ranching
Company, LLC**
A&B Visalia 1 LLC
A&B Visalia 3 LLC
A&B Waianae LLC
A&B Waiawa LLC
A&B Waikiki LLC
A&B Wailea LLC
Wailea MF-7 LLC
Wailea MF-8 LLC
Kai Malu Wailea LLC**
A&B Waipio 100 LLC
A&B Waipio Shopping Center LLC
A&B Westridge LLC**
AB Properties Concorde LLC
ABP Deer Valley LLC
ABP Hahani LLC***
ABP Kailua Road LLC
ABP Komohana LLC
ABP Mililani Gateway LLC
ABP Mililani Gateway South LLC
ABP Napili LLC
ABP Pearl Highlands LLC
ABP Residuary LLC***
ABP Savannah-A LLC
ABP Savannah-B LLC
ABP Ulupuni LLC***
ABP Windward LLC
ABX Napili LLC
Avenue Penn LLC
Blacksand Hawaii Investment LLC
Brydeswood Water Company
Centre Pointe Marketplace, LLC**
Crossroads Plaza Development
Partners, LLC**
Estates of Kahala LLC
Hokua Development Group LLC**
Kahului Town Center LLC
Kai Lani Company, LLC**
Kamuela Associates LLC**
KDC, LLC
BKDC Kauai Estates LLC**
Kukui’ula Development Company
(Hawaii), LLC**
KDCH Workforce Housing LLC**
Koloa Housing I LLC**
Kukui’ula South Shore Community
Services, LLC**
Makai Cottage Model, LLC**
Kukui’ula Housing Development LLC**
Kukui’ula Model Home LLC**
Lodge Hale Development, LLC**
Kukui’ula Village LLC**
Keawe Development, LLC
Kewalo Development LLC**
KKV Management LLC
Kona Development Group LLC**
Mahina Ka Milo LLC**
Palmdale Trade & Commerce Center, LLC**
Panama and Gosford Retail, LLC**
Port Allen Residential LLC
Rye Canyon Office Partners, LLC**
Square One Lahaina LLC
The Collection LLC
Wailea Estates LLC
Wailea Water Services LLC
Waimanu Development LLC
WDCI Deer Valley LLC
WDCI Heritage LLC
WDCI Komohana LLC
Agri-Quest Development Company, Inc.
East Maui Irrigation Company, Limited
Entities in which East Maui Irrigation
Company, Limited is involved as a member
and/or manager:
|
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Delaware
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Delaware
Hawaii
Delaware
Delaware
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
California
Hawaii
Delaware
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
California
California
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Delaware
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
California
California
Hawaii
California
Hawaii
Hawaii
Hawaii
Hawaii
Hawaii
Delaware
Hawaii
Hawaii
Hawaii
Hawaii
|
Name of Subsidiary
|
State or Other Jurisdiction
Under Which Organized
|
EMI Residuary LLC
|
Hawaii
|
Hawaiian DuraGreen, Inc.
|
Hawaii
|
Kahului Trucking & Storage, Inc.
|
Hawaii
|
Kauai Commercial Company, Incorporated
|
Hawaii
|
Kukui’ula Development Company, Inc.
|
Hawaii
|
Entities in which Kukui’ula Development Company, Inc. is involved as a member and/or manager:
South Shore Resources LLC
|
Hawaii
|
Ohanui Corporation
|
Hawaii
|
Division
:
|
|
Hawaiian Commercial & Sugar Company
|
Hawaii
|
OTHER RELATED ENTITIES
Alexander & Baldwin Foundation
Alexander & Baldwin Sugar Museum
Hawaiian Sugar & Transportation Cooperative
|
Hawaii
Hawaii
Hawaii
|
(a Hawaii agricultural cooperative association)
|
|
INACTIVE SUBSIDIARIES
*
A & B Inc.
|
Hawaii
|
/s/ Stanley M. Kuriyama
|
|
Name:
|
Stanley M. Kuriyama
|
Title:
|
President and Chief Executive Officer
|
Date:
|
March 3, 2014
|
/s/ Paul K. Ito
|
|
Name:
|
Paul K. Ito
|
Title:
|
Senior Vice President, Chief Financial Officer, Controller and Treasurer
|
Date:
|
March 3, 2014
|
Total Number of S&S Citations
|
1
|
Mine Act § 104(b) Orders
|
0
|
Mine Act § 104(d) Citations and Orders
|
0
|
Mine Act § 110(b)(2) Violations
|
0
|
Mine Act § 107(a) Orders
|
0
|
Total Dollar Value of Proposed MSHA Assessments
|
$1,894
|
Total Number of Mining Related Fatalities
|
0
|
Received Written Notice of Pattern of Violation under Mine Act §104(e) (yes/no)
|
No
|
Received Written Notice of Potential to Have Pattern under Mine Act §104(e) (yes/no)
|
No
|