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Segment Results
 12 Months Ended
Dec. 31, 2023
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 ("CODM") to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
The accounting policies of the operating segments are described in Note 2 – Significant Accounting Policies. The Company measures and evaluates operating segments 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.
Prior to December 31, 2022, the Company operated and reported on three segments: Commercial Real Estate; Land Operations; and Materials & Construction. During the fourth quarter of 2022, the Company progressed on its simplification efforts related to the divestiture of its materials & construction business. The Grace Disposal Group, which was reclassified as held for sale and discontinued operations as of December 31, 2022, made up the majority of activity in the Company’s former M&C segment. Accordingly, the former M&C segment was eliminated and the segment information presented herein excludes the results of the Grace Disposal Group for all periods presented. All comparable information for the historical periods was restated to reflect the impact of these changes. As a result of these changes, the Company now operates and reports on two segments: Commercial Real Estate and Land Operations.
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 owns approximately 142.0 acres of commercial land in Hawai‘i, of which substantially all is leased pursuant to urban ground leases.
The Land Operations segment generates its revenues from real estate development and land sales, income/loss from joint ventures, and other legacy business activities in Hawai‘i. Historically, this segment also generated revenues from the sale of hydroelectric energy until the disposal of McBryde Resources Inc. during 2022, and trucking and storage services until the disposal of Kahului Trucking & Storage, Inc. during 2023.
Operating segment information for the years ended December 31, 2023, 2022, and 2021 is summarized below (in millions):
202320222021
Operating Revenue:
Commercial Real Estate$194.0 $187.2 $174.1 
Land Operations1
14.9 43.3 79.9 
Total operating revenue208.9 230.5 254.0 
Operating Profit (Loss):
Commercial Real Estate2
81.2 81.5 72.6 
Land Operations1,3,4
10.8 (1.4)53.2 
Total operating profit (loss)1
92.0 80.1 125.8 
Gain (loss) on disposal of commercial real estate properties, net— — 2.8 
Interest expense(23.0)(22.0)(26.2)
Corporate and other expense5
(28.2)(39.3)(27.0)
Income (Loss) from Continuing Operations Before Income Taxes$40.8 $18.8 $75.4 
Identifiable Assets:
Commercial Real Estate$1,479.8 $1,499.9 $1,499.5 
Land Operations6
112.4 112.0 144.5 
Other40.0 48.6 81.1 
Assets Held for Sale14.0 126.8 154.7 
Total assets$1,646.2 $1,787.3 $1,879.8 
Capital Expenditures:
Commercial Real Estate7
$31.2 $21.4 $39.6 
Land Operations8
— 0.2 7.4 
Other— 0.1 0.2 
Total capital expenditures$31.2 $21.7 $47.2 
Depreciation and Amortization:
Commercial Real Estate$36.5 $36.5 $37.7 
Land Operations— 1.2 1.1 
Other0.3 0.3 0.8 
Total depreciation and amortization$36.8 $38.0 $39.6 
1 In 2022, as a result of the Grace Disposal Group's classification as held for sale and discontinued operations, the Company changed the composition of its reportable segments based on how the CODM assesses the Company's performance, which caused reported amounts (i.e. operating profit) related to one joint venture in the historical period to be reclassified from the former M&C segment to Land Operations, which changed Land Operations Operating Profit (Loss) by $(2.5) million and Total operating profit (loss) by $38.3 million for the year ended December 31, 2021. All comparable information for the historical periods has been restated to reflect the impact of these changes.
2 Commercial Real Estate segment operating profit (loss) includes intersegment operating revenue, primarily from the Land Operations segment, as well as pension termination charges of $0.7 million for the year ended December 31, 2022.
3 Land Operations segment operating profit (loss) includes $1.9 million, $1.6 million, and $17.9 million of equity in earnings (losses) from the Company's various joint ventures for the years ended December 31, 2023, 2022, and 2021, respectively.
4 Land Operations segment operating profit (loss) includes pension termination charges of $62.2 million for the year ended December 31, 2022, as well as a gain on sale of non-core assets, net, of $54.0 million for the year ended December 31, 2022, related to the McBryde transaction (Note 20 – Sale of Business).
5 Corporate and other expense includes pension termination charges of $14.0 million for the year ended December 31, 2022, related to the 2022 termination of the defined benefit plans.
6 The Land Operations segment includes assets related to its investment in various joint ventures. As a result of the change in the composition of the Land Operations segment in 2022, as noted above, total identifiable assets increased $23.4 million as of December 31, 2021.
7 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.                
8 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.