Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Recurring Fair Value Measurements

The Company records its interest rate swaps at fair value. The fair values of the Company's interest rate swaps are classified as Level 2 measurements in the fair value hierarchy and are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs (refer to Note 9 – Derivative Instruments for fair value information regarding the Company's derivative instruments).

The following tables present the fair value of those assets and (liabilities) measured on a recurring basis as of December 31, 2023 and 2022, (in millions):


		Fair Value Measurements at
		December 31, 2023
	Consolidated Balance Sheet Location	Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivative financial instruments - interest rate swaps	Prepaid expenses and other assets	$	4.1	$	—	$	4.1	$	—
Liabilities
Derivative financial instruments - interest rate swaps	Accrued and other liabilities	$	(2.7)	$	—	$	(2.7)	$	—


		Fair Value Measurements at
		December 31, 2022
	Consolidated Balance Sheet Location	Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivative financial instruments - interest rate swaps	Prepaid expenses and other assets	$	5.5	$	—	$	5.5	$	—
Liabilities
Derivative financial instruments - interest rate swaps	Accrued and other liabilities	$	(2.8)	$	—	$	(2.8)	$	—

Non-Recurring Fair Value

Certain financial and nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The Company’s process for identifying and recording impairment is discussed in Note 2 – Significant Accounting Policies.

Impairment of Long-lived Assets Held and Used and Finite-Lived Intangible Assets: During the year ended December 31, 2023, the Company did not recognize any impairment of long-lived assets held and used or finite-lived intangible assets. During the year ended December 31, 2022, the Company recognized an impairment charge of $5.0 million related to related to parcels of conservation and agriculture zoned land on Oahu. The Company classifies these fair value measurements as Level 3 in the fair value hierarchy because they involve significant unobservable inputs such as cash flow projections, discount rates, and management assumptions.

Impairment of Assets Held for Sale: As of December 31, 2023, one CRE improved property met the criteria for classification as held for sale and accordingly, was measured at its fair value less costs to sell, resulting in an impairment charge of $2.2 million for the year ended December 31, 2023. As of December 31, 2022, as a result of the Grace Disposal Group's classification as held for sale, the Company measured the Grace Disposal Group at its fair value less costs to sell and recorded impairment of $89.8 million for the year ended December 31, 2022. The Company classifies these fair value measurements as Level 3 in the fair value hierarchy because it is determined using significant unobservable inputs such as management assumptions about expected sales proceeds from third parties.

The following tables present quantitative information about the significant unobservable inputs used to determine the fair value of long-lived assets held and used and assets held for sale, net for the years ended December 31, 2023 and 2022, (in millions):


					Level 3 Fair Value Measurements
	Total		Total Gains (Losses)		Valuation Technique/ Unobservable Inputs	Weighted Average Discount Rate
December 31, 2023
Assets held for sale, net1,2	$	14.2	$	(2.2)	Contract value	N/A

Total	$	14.2	$	(2.2)

December 31, 2022
Assets held for sale, net1,3	$	50.0	$	(89.8)	Indicative bids	N/A
Long-lived assets4	—		(5.0)		Discounted cash flows	16%

Total	$	50.0	$	(94.8)

1 Assets or liabilities are presented in Assets held for sale or Liabilities associated with assets held for sale, respectively, in the Consolidated Balance Sheets. Impairment loss related to the CRE improved property recognized in 2023 is presented in Impairment of Assets in the Consolidated Statements of Operations. Impairment loss related to the Grace Disposal Group recognized in 2022 is presented in Income (loss) from discontinued operations, net of income taxes in the Consolidated Statements of Operations.
2 Consists of assets held for sale related to the CRE improved property of $14.0 million, net of liabilities associated with assets held for sale of $0.1 million, and excludes estimated selling costs of $0.3 million.
3 Consists of assets held for sale related to the Grace Disposal Group of $126.8 million, net of liabilities associated with assets held for sale of $81.0 million, and excludes estimated selling costs of $4.2 million.
4 Included in Real estate property in the Consolidated Balance Sheets. Impairment loss is presented in Cost of Land Operations in the Consolidated Statements of Operations.

Abandoned development costs: During the year ended December 31, 2023, the Company recorded an impairment charge of $2.6 million related to the abandonment of potential CRE development projects, which is presented in Impairment of assets in the Consolidated Statements of Operations.

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts and notes receivable, net and notes payable and other debt. The fair value of the Company's cash and cash equivalents, restricted cash, accounts receivable, net and short-term borrowings approximate their carrying values due to the short-term nature of the instruments, which is classified as Level 1 measurement in the fair value hierarchy.

The fair value of the Company's notes receivable approximated the carrying amount of $20.8 million and $1.9 million as of December 31, 2023 and 2022. The fair value of these notes is estimated using a discounted cash flow analysis in which the Company uses unobservable inputs such as market interest rates determined by the loan-to-value and market capitalization rates related to the underlying collateral at which management believes similar loans would be made, and is classified as a Level 3 measurement in the fair value hierarchy.

At December 31, 2023, the carrying amount of the Company's notes payable and other debt was $464.0 million and the corresponding fair value was $452.5 million. At December 31, 2022, the carrying amount of the Company's notes payable and other debt was $472.2 million and the corresponding fair value was $449.2 million. The fair value of debt is calculated by discounting the future cash flows of the debt at rates based on instruments with similar risk, terms and maturities as compared to the Company's existing debt arrangements, and is classified as a Level 3 measurement in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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