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Segment Results
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Results Segment Results
Operating segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company operates and reports on three segments: Commercial Real Estate; Land Operations; and Materials & Construction.
The Commercial Real Estate segment owns, operates and manages a portfolio of retail, industrial and office properties in Hawai‘i totaling 3.9 million square feet of gross leasable area. The Company also leases approximately 153.8 acres of commercial land in Hawai‘i to third-party lessees under ground leases.
The Land Operations segment generates its revenues from real estate development and land sales, income/loss from real estate joint ventures, hydroelectric energy and other legacy business activities in Hawai‘i.
The Materials & Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells rock and sand aggregates; produces and sells asphaltic concrete; provides and sells various construction- and traffic-control-related products and, historically, manufactured and sold precast concrete products through GPRM (until GPRM's disposal in the year ended December 31, 2020).
The accounting policies of the operating segments are described in Note 2. Reportable segments are measured based on operating profit, exclusive of interest expense, general corporate expenses and income taxes. Revenues related to transactions between reportable segments have been eliminated in consolidation. Transactions between reportable segments are accounted for on the same basis as transactions with unrelated third parties.
A significant portion of Materials & Construction revenue and accounts receivable is generated directly and indirectly from projects administered by the City and County of Honolulu and from the State of Hawai‘i. Reductions in funding of infrastructure projects by these government agencies could reduce revenue and profits from the M&C segment. Further, although the customer mix of real estate sales in our Land Operations segment may be diverse in any given period, during the years ended December 31, 2018 and December 31, 2019, the Land Operations segment recognized gross profits of $162.2 million and $6.7 million, respectively, from the Agricultural Land Sale to Mahi Pono.
Operating segment information for the years ended December 31, 2020, 2019 and 2018 is summarized below (in millions):
202020192018
Operating Revenue:
Commercial Real Estate$150.0 $160.6 $140.3 
Land Operations40.6 114.1 289.5 
Materials & Construction114.7 160.5 214.6 
Total operating revenue305.3 435.2 644.4 
Operating Profit (Loss):
Commercial Real Estate1
49.8 66.2 58.5 
Land Operations2
17.3 20.8 (26.7)
Materials & Construction3
(12.4)(69.2)(73.2)
Total operating profit (loss)54.7 17.8 (41.4)
Gain (loss) on disposal of commercial real estate properties, net0.5 — 51.4 
Interest expense(30.3)(33.1)(35.3)
General corporate expenses(19.3)(23.6)(27.6)
Income (Loss) from Continuing Operations Before Income Taxes$5.6 $(38.9)$(52.9)
Identifiable Assets:
Commercial Real Estate$1,499.9 $1,532.6 $1,530.4 
Land Operations4
258.4 282.5 350.0 
Materials & Construction211.9 243.0 297.1 
Other65.8 26.2 47.7 
Total assets$2,036.0 $2,084.3 $2,225.2 
Capital Expenditures:
Commercial Real Estate5
$18.8 $250.5 $282.7 
Land Operations6
1.4 2.3 1.4 
Materials & Construction4.5 1.9 11.0 
Other0.4 0.4 1.0 
Total capital expenditures$25.1 $255.1 $296.1 
Depreciation and Amortization:
Commercial Real Estate$40.1 $36.7 $28.0 
Land Operations1.5 1.6 1.9 
Materials & Construction10.8 11.4 12.1 
Other0.9 0.8 0.8 
Total depreciation and amortization$53.3 $50.5 $42.8 
1 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Materials & Construction segment, and is eliminated in the consolidated results of operations.
2 Land Operations segment operating profit (loss) includes equity in earnings (losses) from the Company's various real estate joint ventures and non-cash reductions related to the Company's solar tax equity investments. The year ended December 31, 2018 also includes a non-cash, other-than-temporary impairment of $186.8 million recorded against the Company's investment in Kukui‘ula.
3 Materials & Construction segment operating profit (loss) for the year ended December 31, 2020 includes an impairment charge of $5.6 million related to its disposal of GPRM. Materials & Construction segment operating profit (loss) for the December 31, 2019 includes an impairment charge related to its goodwill of $49.7 million. Materials & Construction segment operating profit (loss) for the December 31, 2018 includes cumulative impairment charges related to long-lived assets, finite-lived intangible assets and goodwill of $77.8 million.
4 The Land Operations segment includes assets related to its investment in various real estate joint ventures.
5 Represents gross capital additions to the commercial real estate 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.
6 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.