Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HAWAIIAN ELECTRIC INDUSTRIES INC | ' |
Entity Central Index Key | '0000354707 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 99,605,735 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Total revenues | $831,229 | $867,720 | $2,412,023 | $2,536,848 |
Expenses | ' | ' | ' | ' |
Total expenses | 741,130 | 776,018 | 2,168,897 | 2,289,924 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | 90,099 | 91,702 | 243,126 | 246,924 |
Interest expense-other than on deposit liabilities and other bank borrowings | -20,304 | -20,020 | -59,705 | -58,758 |
Allowance for borrowed funds used during construction | 498 | 688 | 1,626 | 2,451 |
Allowance for equity funds used during construction | 1,255 | 1,611 | 4,030 | 5,548 |
Income before income taxes | 71,548 | 73,981 | 189,077 | 196,165 |
Income taxes | 22,841 | 25,804 | 65,157 | 69,926 |
Net income | 48,707 | 48,177 | 123,920 | 126,239 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | 48,236 | 47,706 | 122,503 | 124,822 |
Basic earnings per common share (in dollars per share) | $0.49 | $0.49 | $1.24 | $1.29 |
Diluted earnings per common share (in dollars per share) | $0.48 | $0.49 | $1.23 | $1.29 |
Dividends per common share (in dollars per share) | $0.31 | $0.31 | $0.93 | $0.93 |
Weighted-average number of common shares outstanding (in shares) | 99,204 | 97,157 | 98,670 | 96,674 |
Net effect of potentially dilutive shares (in shares) | 614 | 361 | 620 | 423 |
Adjusted weighted-average shares (in shares) | 99,818 | 97,518 | 99,290 | 97,097 |
Electric utility | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total revenues | 766,115 | 801,095 | 2,216,076 | 2,340,257 |
Expenses | ' | ' | ' | ' |
Total expenses | 694,201 | 726,276 | 2,030,071 | 2,146,688 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | 71,914 | 74,819 | 186,005 | 193,569 |
Income before income taxes | 57,373 | 61,268 | 144,212 | 154,976 |
Income taxes | 19,058 | 22,395 | 51,777 | 58,429 |
Net income | 38,315 | 38,873 | 92,435 | 96,547 |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 |
Net income for common stock | 37,817 | 38,375 | 90,939 | 95,051 |
Bank | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total revenues | 65,058 | 66,596 | 195,841 | 196,569 |
Expenses | ' | ' | ' | ' |
Total expenses | 42,223 | 44,974 | 126,550 | 130,161 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | 22,835 | 21,622 | 69,291 | 66,408 |
Income before income taxes | 22,808 | 21,627 | 69,265 | 66,964 |
Income taxes | 7,532 | 7,419 | 23,915 | 22,690 |
Net income | 15,276 | 14,208 | 45,350 | 44,274 |
Net income for common stock | 15,276 | 14,208 | 45,350 | 44,274 |
Other | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Total revenues | 56 | 29 | 106 | 22 |
Expenses | ' | ' | ' | ' |
Total expenses | 4,706 | 4,768 | 12,276 | 13,075 |
Operating income (loss) | ' | ' | ' | ' |
Total operating income | -4,650 | -4,739 | -12,170 | -13,053 |
Income before income taxes | -8,633 | -8,914 | -24,400 | -25,775 |
Income taxes | -3,749 | -4,010 | -10,535 | -11,193 |
Net income | -4,884 | -4,904 | -13,865 | -14,582 |
Preferred stock dividends of subsidiaries | -27 | -27 | -79 | -79 |
Net income for common stock | ($4,857) | ($4,877) | ($13,786) | ($14,503) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income for common stock | $48,236 | $47,706 | $122,503 | $124,822 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | -1,589 | 1,043 | -10,724 | 1,910 |
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | 0 | 0 | -738 | -81 |
Derivatives qualified as cash flow hedges: | ' | ' | ' | ' |
Less: reclassification adjustment to net income, net of tax benefits of $37 for the three months ended September 30, 2013 and 2012 and $112 for the nine months ended September 30, 2013 and 2012 | 59 | 59 | 177 | 177 |
Retirement benefit plans: | ' | ' | ' | ' |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,697 and $2,443 for the three months ended September 30, 2013 and 2012 and $11,173 and $7,321 for the nine months ended September 30, 2013 and 2012, respectively | 5,789 | 3,826 | 17,490 | 11,467 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $3,284 and $2,129 for the three months ended September 30, 2013 and 2012 and $9,852 and $6,386 for the nine months ended September 30, 2013 and 2012, respectively | -5,156 | -3,342 | -15,468 | -10,026 |
Other comprehensive income (loss), net of taxes | -897 | 1,586 | -9,263 | 3,447 |
Comprehensive income | $47,339 | $49,292 | $113,240 | $128,269 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, taxes | $1,049 | ($689) | $7,081 | ($1,261) |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 0 | 488 | 53 |
Less: reclassification adjustment to net income, tax benefits | 37 | 37 | 112 | 112 |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, tax benefits | 3,697 | 2,443 | 11,173 | 7,321 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | $3,284 | $2,129 | $9,852 | $6,386 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $215,042 | $219,662 |
Accounts receivable and unbilled revenues, net | 350,083 | 362,823 |
Available-for-sale investment and mortgage-related securities | 535,264 | 671,358 |
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | 96,022 |
Loans receivable held for investment, net | 4,005,132 | 3,737,233 |
Loans held for sale, at lower of cost or fair value | 5,829 | 26,005 |
Property, plant and equipment, net of accumulated depreciation of $2,173,583 in 2013 and $2,125,286 in 2012 | 3,776,305 | 3,594,829 |
Regulatory assets | 890,419 | 864,596 |
Other | 475,335 | 494,414 |
Goodwill | 82,190 | 82,190 |
Total assets | 10,429,012 | 10,149,132 |
Liabilities | ' | ' |
Accounts payable | 206,803 | 212,379 |
Interest and dividends payable | 27,232 | 26,258 |
Deposit liabilities | 4,310,842 | 4,229,916 |
Short-term borrowings-other than bank | 131,341 | 83,693 |
Other bank borrowings | 239,612 | 195,926 |
Long-term debt, net-other than bank | 1,422,880 | 1,422,872 |
Deferred income taxes | 493,662 | 439,329 |
Regulatory liabilities | 337,720 | 322,074 |
Contributions in aid of construction | 425,916 | 405,520 |
Defined benefit pension and other postretirement benefit plans liability | 630,904 | 656,394 |
Other | 512,342 | 526,613 |
Total liabilities | 8,739,254 | 8,520,974 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies (Note 8) | ' | ' |
Shareholders' equity | ' | ' |
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 |
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 99,541,518 shares in 2013 and 97,928,403 shares in 2012 | 1,443,583 | 1,403,484 |
Retained earnings | 247,568 | 216,804 |
Accumulated other comprehensive income (loss), net of taxes | ' | ' |
Net unrealized gains (losses) on securities | -701 | 10,761 |
Unrealized losses on derivatives | -583 | -760 |
Retirement benefit plans | -34,402 | -36,424 |
Accumulated other comprehensive income (loss), net of taxes | -35,686 | -26,423 |
Total shareholders' equity | 1,655,465 | 1,593,865 |
Total liabilities and shareholders' equity | $10,429,012 | $10,149,132 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Property, plant and equipment, accumulated depreciation (in dollars) | $2,173,583 | $2,125,286 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 99,541,518 | 97,928,403 |
Common stock, outstanding shares | 99,541,518 | 97,928,403 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common stock | Retained Earnings | Accumulated other comprehensive loss |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2011 | $1,528,706 | $1,349,446 | $198,397 | ($19,137) |
Balance (in shares) at Dec. 31, 2011 | ' | 96,038,000 | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' |
Net income for common stock | 124,822 | ' | 124,822 | ' |
Other comprehensive loss, net of tax benefits | 3,447 | ' | ' | 3,447 |
Issuance of common stock, net | 40,161 | 40,161 | ' | ' |
Issuance of common stock, net (in shares) | ' | 1,387,000 | ' | ' |
Dividend equivalents paid on equity-classified awards | -99 | ' | -99 | ' |
Common stock dividends ($0.93 per share) | -89,902 | ' | -89,902 | ' |
Balance at Sep. 30, 2012 | 1,607,135 | 1,389,607 | 233,218 | -15,690 |
Balance (in shares) at Sep. 30, 2012 | ' | 97,425,000 | ' | ' |
Balance at Dec. 31, 2012 | 1,593,865 | 1,403,484 | 216,804 | -26,423 |
Balance (in shares) at Dec. 31, 2012 | 97,928,403 | 97,928,000 | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' |
Net income for common stock | 122,503 | ' | 122,503 | ' |
Other comprehensive loss, net of tax benefits | -9,263 | ' | ' | -9,263 |
Issuance of common stock, net | 40,099 | 40,099 | ' | ' |
Issuance of common stock, net (in shares) | ' | 1,614,000 | ' | ' |
Common stock dividends ($0.93 per share) | -91,739 | ' | -91,739 | ' |
Balance at Sep. 30, 2013 | $1,655,465 | $1,443,583 | $247,568 | ($35,686) |
Balance (in shares) at Sep. 30, 2013 | 99,541,518 | 99,542,000 | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Common stock dividends (in dollars per share) | $0.31 | $0.31 | $0.93 | $0.93 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $123,920 | $126,239 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation of property, plant and equipment | 120,355 | 112,946 |
Other amortization | 2,352 | 4,811 |
Provision for loan losses | 953 | 9,504 |
Loans receivable originated and purchased, held for sale | -199,772 | -304,289 |
Proceeds from sale of loans receivable, held for sale | 223,221 | 302,844 |
Gain on sale of credit card portfolio | -2,251 | 0 |
Change in deferred income taxes | 60,580 | 82,582 |
Excess tax benefits from share-based payment arrangements | -469 | -65 |
Allowance for equity funds used during construction | -4,030 | -5,548 |
Changes in assets and liabilities | ' | ' |
Decrease (increase) in accounts receivable and unbilled revenues, net | 12,740 | -30,610 |
Decrease (increase) in fuel oil stock | 24,332 | -31,372 |
Increase in regulatory assets | -53,314 | -57,793 |
Decrease in accounts, interest and dividends payable | -21,708 | -5,905 |
Decrease in prepaid and accrued income taxes and utility revenue taxes | -19,212 | -5,121 |
Contributions to defined benefit pension and other postretirement benefit plans | -62,279 | -64,006 |
Other increase in defined benefit pension and other postretirement benefit plans liability | 61,770 | 49,950 |
Change in other assets and liabilities | -20,462 | -62,563 |
Net cash provided by (used in) operating activities | 246,726 | 121,604 |
Cash flows from investing activities | ' | ' |
Available-for-sale investment and mortgage-related securities purchased | -39,721 | -146,794 |
Principal repayments on available-for-sale investment and mortgage-related securities | 84,487 | 104,310 |
Proceeds from sale of available-for-sale investment and mortgage-related securities | 71,367 | 3,548 |
Net increase in loans held for investment | -293,996 | -75,982 |
Proceeds from sale of real estate acquired in settlement of loans | 8,777 | 9,659 |
Capital expenditures | -247,392 | -225,961 |
Contributions in aid of construction | 23,633 | 33,106 |
Proceeds from sale of credit card portfolio | 26,386 | 0 |
Other | 3,035 | 865 |
Net cash used in investing activities | -363,424 | -297,249 |
Cash flows from financing activities | ' | ' |
Net increase in deposit liabilities | 80,926 | 56,756 |
Net increase in short-term borrowings with original maturities of three months or less | 47,648 | 13,398 |
Net decrease in retail repurchase agreements | -6,314 | -22,011 |
Proceeds from other bank borrowings | 120,000 | 0 |
Repayments of other bank borrowings | -70,000 | 0 |
Proceeds from issuance of long-term debt | 50,000 | 457,000 |
Repayment of long-term debt | -50,000 | -368,500 |
Excess tax benefits from share-based payment arrangements | 469 | 65 |
Net proceeds from issuance of common stock | 18,383 | 16,881 |
Common stock dividends | -73,584 | -71,966 |
Preferred stock dividends of subsidiaries | -1,417 | -1,417 |
Other | -4,033 | -6,314 |
Net cash provided by (used in) financing activities | 112,078 | 73,892 |
Net decrease in cash and cash equivalents | -4,620 | -101,753 |
Cash and cash equivalents, beginning of period | 219,662 | 270,265 |
Cash and cash equivalents, end of period | $215,042 | $168,512 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating expenses | ' | ' | ' | ' |
Purchased power | $195,000 | $187,000 | $527,000 | $540,000 |
Other income | ' | ' | ' | ' |
Allowance for equity funds used during construction | 1,255 | 1,611 | 4,030 | 5,548 |
Interest and other charges | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | -498 | -688 | -1,626 | -2,451 |
Net income | 48,707 | 48,177 | 123,920 | 126,239 |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | 48,236 | 47,706 | 122,503 | 124,822 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Operating revenues | 763,933 | 799,203 | 2,208,923 | 2,334,826 |
Operating expenses | ' | ' | ' | ' |
Fuel oil | 283,360 | 327,173 | 877,738 | 986,076 |
Purchased power | 194,861 | 186,699 | 526,669 | 539,840 |
Other operation | 72,008 | 70,441 | 209,615 | 196,806 |
Maintenance | 31,513 | 30,368 | 88,555 | 91,641 |
Depreciation | 38,995 | 35,941 | 115,865 | 108,556 |
Taxes, other than income taxes | 72,382 | 74,850 | 208,828 | 222,149 |
Income taxes | 18,928 | 22,352 | 51,356 | 58,291 |
Total operating expenses | 712,047 | 747,824 | 2,078,626 | 2,203,359 |
Operating income | 51,886 | 51,379 | 130,297 | 131,467 |
Other income | ' | ' | ' | ' |
Allowance for equity funds used during construction | 1,255 | 1,611 | 4,030 | 5,548 |
Other, net | 1,099 | 1,087 | 4,351 | 3,810 |
Income tax expense | -129 | -42 | -420 | -137 |
Total other income | 2,225 | 2,656 | 7,961 | 9,221 |
Interest and other charges | ' | ' | ' | ' |
Interest on long-term debt | 14,615 | 14,694 | 43,843 | 44,400 |
Amortization of net bond premium and expense | 646 | 870 | 1,940 | 2,276 |
Other interest charges (credits) | 1,033 | 286 | 1,666 | -84 |
Allowance for borrowed funds used during construction | -498 | -688 | -1,626 | -2,451 |
Total interest and other charges | 15,796 | 15,162 | 45,823 | 44,141 |
Net income | 38,315 | 38,873 | 92,435 | 96,547 |
Preferred stock dividends of subsidiaries | 228 | 228 | 686 | 686 |
Net income attributable to HECO | 38,087 | 38,645 | 91,749 | 95,861 |
Preferred stock dividends of HECO | 270 | 270 | 810 | 810 |
Net income for common stock | $37,817 | $38,375 | $90,939 | $95,051 |
Consolidated_Statements_of_Com2
Consolidated Statements of Comprehensive Income - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income for common stock | $48,236 | $47,706 | $122,503 | $124,822 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,789 | 3,826 | 17,490 | 11,467 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -5,156 | -3,342 | -15,468 | -10,026 |
Other comprehensive income (loss), net of taxes | -897 | 1,586 | -9,263 | 3,447 |
Comprehensive income | 47,339 | 49,292 | 113,240 | 128,269 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Net income for common stock | 37,817 | 38,375 | 90,939 | 95,051 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 3,419 | 15,520 | 10,255 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -5,156 | -3,342 | -15,468 | -10,026 |
Other comprehensive income (loss), net of taxes | 17 | 77 | 52 | 229 |
Comprehensive income | $37,834 | $38,452 | $90,991 | $95,280 |
Consolidated_Statements_of_Com3
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | $3,697 | $2,443 | $11,173 | $7,321 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | 3,284 | 2,129 | 9,852 | 6,386 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 3,295 | 2,178 | 9,885 | 6,532 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, taxes | $3,284 | $2,129 | $9,852 | $6,386 |
Consolidated_Balance_Sheets_HE
Consolidated Balance Sheets - HECO (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other long-term assets | ' | ' |
Total assets | $10,429,012 | $10,149,132 |
Capitalization | ' | ' |
Retained earnings | 247,568 | 216,804 |
Accumulated other comprehensive loss, net of income tax benefits-retirement benefit plans | -34,402 | -36,424 |
Cumulative preferred stock - not subject to mandatory redemption | 0 | 0 |
Commitments and contingencies (Note 5) | ' | ' |
Current liabilities | ' | ' |
Interest and preferred dividends payable | 27,232 | 26,258 |
Deferred credits and other liabilities | ' | ' |
Deferred income taxes | 493,662 | 439,329 |
Contributions in aid of construction | 425,916 | 405,520 |
Total liabilities and shareholders' equity | 10,429,012 | 10,149,132 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Utility plant, at cost | ' | ' |
Land | 51,834 | 51,568 |
Plant and equipment | 5,593,801 | 5,364,400 |
Less accumulated depreciation | -2,093,575 | -2,040,789 |
Construction in progress | 151,077 | 151,378 |
Net utility plant | 3,703,137 | 3,526,557 |
Current assets | ' | ' |
Cash and cash equivalents | 25,185 | 17,159 |
Customer accounts receivable, net | 187,704 | 210,779 |
Accrued unbilled revenues, net | 139,901 | 134,298 |
Other accounts receivable, net | 9,174 | 28,176 |
Fuel oil stock, at average cost | 137,087 | 161,419 |
Materials and supplies, at average cost | 59,434 | 51,085 |
Prepayments and other | 45,376 | 32,865 |
Regulatory assets | 45,723 | 51,267 |
Total current assets | 649,584 | 687,048 |
Other long-term assets | ' | ' |
Regulatory assets | 844,696 | 813,329 |
Unamortized debt expense | 9,674 | 10,554 |
Other | 62,667 | 71,305 |
Total other long-term assets | 917,037 | 895,188 |
Total assets | 5,269,758 | 5,108,793 |
Capitalization | ' | ' |
Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 14,665,264 shares) | 97,788 | 97,788 |
Premium on capital stock | 468,045 | 468,045 |
Retained earnings | 937,029 | 907,273 |
Accumulated other comprehensive loss, net of income tax benefits-retirement benefit plans | -918 | -970 |
Common stock equity | 1,501,944 | 1,472,136 |
Cumulative preferred stock - not subject to mandatory redemption | 34,293 | 34,293 |
Long-term debt, net | 1,147,880 | 1,147,872 |
Total capitalization | 2,684,117 | 2,654,301 |
Commitments and contingencies (Note 5) | ' | ' |
Current liabilities | ' | ' |
Short-term borrowings from non-affiliates | 73,246 | 0 |
Accounts payable | 180,957 | 186,824 |
Interest and preferred dividends payable | 22,397 | 21,092 |
Taxes accrued | 233,453 | 251,066 |
Other | 78,534 | 62,879 |
Total current liabilities | 588,587 | 521,861 |
Deferred credits and other liabilities | ' | ' |
Deferred income taxes | 478,601 | 417,611 |
Regulatory liabilities | 329,131 | 322,074 |
Unamortized tax credits | 71,038 | 66,584 |
Defined benefit pension and other postretirement benefit plans liability | 596,240 | 620,205 |
Other | 96,128 | 100,637 |
Total deferred credits and other liabilities | 1,571,138 | 1,527,111 |
Contributions in aid of construction | 425,916 | 405,520 |
Total liabilities and shareholders' equity | $5,269,758 | $5,108,793 |
Consolidated_Balance_Sheets_Pa1
Consolidated Balance Sheets (Parenthetical) - HECO (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 99,541,518 | 97,928,403 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Common stock, par value (in dollars per share) | 6.67 | 6.67 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 14,665,264 | 14,665,264 |
Consolidated_Statements_of_Cha2
Consolidated Statements of Changes in Common Stock Equity - HECO (USD $) | Total | Hawaiian Electric Company, Inc. and Subsidiaries | Common stock | Premium on capital stock | Retained Earnings | Accumulated other comprehensive income (loss) |
In Thousands, except Share data, unless otherwise specified | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Balance at Dec. 31, 2011 | $1,528,706 | $1,402,841 | $94,911 | $426,921 | $881,041 | ($32) |
Balance (in shares) at Dec. 31, 2011 | ' | ' | 14,234,000 | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 124,822 | 95,051 | ' | ' | 95,051 | ' |
Other comprehensive income, net of taxes | 3,447 | 229 | ' | ' | ' | 229 |
Common stock dividends | -89,902 | -54,783 | ' | ' | -54,783 | ' |
Balance at Sep. 30, 2012 | 1,607,135 | 1,443,338 | 94,911 | 426,921 | 921,309 | 197 |
Balance (in shares) at Sep. 30, 2012 | ' | ' | 14,234,000 | ' | ' | ' |
Balance at Jun. 30, 2012 | ' | ' | ' | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 47,706 | 38,375 | ' | ' | ' | ' |
Other comprehensive income, net of taxes | 1,586 | 77 | ' | ' | ' | ' |
Balance at Sep. 30, 2012 | 1,607,135 | 1,443,338 | 94,911 | 426,921 | ' | ' |
Balance (in shares) at Sep. 30, 2012 | ' | ' | 14,234,000 | ' | ' | ' |
Balance at Dec. 31, 2012 | 1,593,865 | 1,472,136 | 97,788 | 468,045 | 907,273 | -970 |
Balance (in shares) at Dec. 31, 2012 | 97,928,403 | ' | 14,665,000 | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 122,503 | 90,939 | ' | ' | 90,939 | ' |
Other comprehensive income, net of taxes | -9,263 | 52 | ' | ' | ' | 52 |
Common stock dividends | -91,739 | -61,183 | ' | ' | -61,183 | ' |
Balance at Sep. 30, 2013 | 1,655,465 | 1,501,944 | 97,788 | 468,045 | 937,029 | -918 |
Balance (in shares) at Sep. 30, 2013 | 99,541,518 | ' | 14,665,000 | ' | ' | ' |
Balance at Jun. 30, 2013 | ' | ' | ' | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' |
Net income for common stock | 48,236 | 37,817 | ' | ' | ' | ' |
Other comprehensive income, net of taxes | -897 | 17 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $1,655,465 | $1,501,944 | $97,788 | $468,045 | ' | ' |
Balance (in shares) at Sep. 30, 2013 | 99,541,518 | ' | 14,665,000 | ' | ' | ' |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows - HECO (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $123,920 | $126,239 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation of property, plant and equipment | 120,355 | 112,946 |
Other amortization | 2,352 | 4,811 |
Change in deferred income taxes | 60,580 | 82,582 |
Allowance for equity funds used during construction | -4,030 | -5,548 |
Changes in assets and liabilities | ' | ' |
Decrease (increase) in fuel oil stock | 24,332 | -31,372 |
Increase in regulatory assets | -53,314 | -57,793 |
Decrease in prepaid and accrued income taxes and utility revenue taxes | -19,212 | -5,121 |
Contributions to defined benefit pension and other postretirement benefit plans | -62,279 | -64,006 |
Other increase in defined benefit pension and other postretirement benefit plans liability | 61,770 | 49,950 |
Change in other assets and liabilities | -20,462 | -62,563 |
Net cash provided by (used in) operating activities | 246,726 | 121,604 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -247,392 | -225,961 |
Contributions in aid of construction | 23,633 | 33,106 |
Other | 3,035 | 865 |
Net cash used in investing activities | -363,424 | -297,249 |
Cash flows from financing activities | ' | ' |
Common stock dividends | -73,584 | -71,966 |
Proceeds from issuance of long-term debt | 50,000 | 457,000 |
Repayment of long-term debt | -50,000 | -368,500 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 47,648 | 13,398 |
Other | -4,033 | -6,314 |
Net cash provided by (used in) financing activities | 112,078 | 73,892 |
Net decrease in cash and cash equivalents | -4,620 | -101,753 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Cash flows from operating activities | ' | ' |
Net income | 92,435 | 96,547 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation of property, plant and equipment | 115,865 | 108,556 |
Other amortization | 2,470 | 4,074 |
Change in deferred income taxes | 48,014 | 82,717 |
Change in tax credits, net | 4,510 | 3,642 |
Allowance for equity funds used during construction | -4,030 | -5,548 |
Changes in assets and liabilities | ' | ' |
Decrease (increase) in accounts receivable | 42,077 | -36,907 |
Decrease (increase) in accrued unbilled revenues | -5,603 | 5,736 |
Decrease (increase) in fuel oil stock | 24,332 | -31,372 |
Increase in materials and supplies | -8,349 | -7,305 |
Increase in regulatory assets | -53,314 | -57,793 |
Decrease in accounts payable | -22,974 | -3,481 |
Decrease in prepaid and accrued income taxes and utility revenue taxes | -15,416 | -20,665 |
Contributions to defined benefit pension and other postretirement benefit plans | -60,876 | -62,417 |
Other increase in defined benefit pension and other postretirement benefit plans liability | 62,364 | 49,861 |
Change in other assets and liabilities | -10,195 | -45,633 |
Net cash provided by (used in) operating activities | 211,310 | 80,012 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -237,869 | -220,970 |
Contributions in aid of construction | 23,633 | 33,106 |
Other | 427 | 0 |
Net cash used in investing activities | -213,809 | -187,864 |
Cash flows from financing activities | ' | ' |
Common stock dividends | -61,183 | -54,783 |
Preferred stock dividends of HECO and subsidiaries | -1,496 | -1,496 |
Proceeds from issuance of long-term debt | 0 | 457,000 |
Repayment of long-term debt | 0 | -368,500 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 73,246 | 44,719 |
Other | -42 | -2,172 |
Net cash provided by (used in) financing activities | 10,525 | 74,768 |
Net decrease in cash and cash equivalents | 8,026 | -33,084 |
Cash and cash equivalents, beginning of period | 17,159 | 48,806 |
Cash and cash equivalents, end of period | $25,185 | $15,722 |
Basis_of_presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
Basis of presentation | |
The accompanying unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s Form 10-K for the year ended December 31, 2012 and the unaudited consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | |
In the opinion of HEI’s management, the accompanying unaudited consolidated financial statements contain all material adjustments required by GAAP to fairly state the Company’s financial position as of September 30, 2013 and December 31, 2012, the results of its operations for the three and nine months ended September 30, 2013 and 2012 and its cash flows for the nine months ended September 30, 2013 and 2012. All such adjustments are of a normal recurring nature, unless otherwise disclosed in this Form 10-Q or other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. When required, certain reclassifications are made to the prior period’s consolidated financial statements to conform to the current presentation. |
Segment_financial_information
Segment financial information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment financial information | ' | ||||||||||||||||
Segment financial information | |||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 766,109 | $ | 65,058 | $ | 62 | $ | 831,229 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 766,115 | 65,058 | 56 | 831,229 | |||||||||||||
Income (loss) before income taxes | 57,373 | 22,808 | (8,633 | ) | 71,548 | ||||||||||||
Income taxes (benefit) | 19,058 | 7,532 | (3,749 | ) | 22,841 | ||||||||||||
Net income (loss) | 38,315 | 15,276 | (4,884 | ) | 48,707 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 37,817 | 15,276 | (4,857 | ) | 48,236 | ||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 2,216,058 | $ | 195,841 | $ | 124 | $ | 2,412,023 | |||||||||
Intersegment revenues (eliminations) | 18 | — | (18 | ) | — | ||||||||||||
Revenues | 2,216,076 | 195,841 | 106 | 2,412,023 | |||||||||||||
Income (loss) before income taxes | 144,212 | 69,265 | (24,400 | ) | 189,077 | ||||||||||||
Income taxes (benefit) | 51,777 | 23,915 | (10,535 | ) | 65,157 | ||||||||||||
Net income (loss) | 92,435 | 45,350 | (13,865 | ) | 123,920 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 90,939 | 45,350 | (13,786 | ) | 122,503 | ||||||||||||
Assets (at September 30, 2013) | 5,269,758 | 5,159,372 | (118 | ) | 10,429,012 | ||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||
Revenues from external customers | $ | 801,089 | $ | 66,596 | $ | 35 | $ | 867,720 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 801,095 | 66,596 | 29 | 867,720 | |||||||||||||
Income (loss) before income taxes | 61,268 | 21,627 | (8,914 | ) | 73,981 | ||||||||||||
Income taxes (benefit) | 22,395 | 7,419 | (4,010 | ) | 25,804 | ||||||||||||
Net income (loss) | 38,873 | 14,208 | (4,904 | ) | 48,177 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 38,375 | 14,208 | (4,877 | ) | 47,706 | ||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||
Revenues from external customers | $ | 2,340,202 | $ | 196,569 | $ | 77 | $ | 2,536,848 | |||||||||
Intersegment revenues (eliminations) | 55 | — | (55 | ) | — | ||||||||||||
Revenues | 2,340,257 | 196,569 | 22 | 2,536,848 | |||||||||||||
Income (loss) before income taxes | 154,976 | 66,964 | (25,775 | ) | 196,165 | ||||||||||||
Income taxes (benefit) | 58,429 | 22,690 | (11,193 | ) | 69,926 | ||||||||||||
Net income (loss) | 96,547 | 44,274 | (14,582 | ) | 126,239 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 95,051 | 44,274 | (14,503 | ) | 124,822 | ||||||||||||
Assets (at December 31, 2012) | 5,108,793 | 5,041,673 | (1,334 | ) | 10,149,132 | ||||||||||||
Intercompany electricity sales of the electric utilities to the bank and “other” segments are not eliminated because those segments would need to purchase electricity from another source if it were not provided by consolidated Hawaiian Electric, the profit on such sales is nominal and the elimination of electric sales revenues and expenses could distort segment operating income and net income for common stock. | |||||||||||||||||
Bank fees that ASB charges the electric utility and “other” segments are not eliminated because those segments would pay fees to another financial institution if they were to bank with another institution, the profit on such fees is nominal and the elimination of bank fee income and expenses could distort segment operating income and net income for common stock. |
Electric_utility_subsidiary
Electric utility subsidiary | 9 Months Ended |
Sep. 30, 2013 | |
Electric utility subsidiary | ' |
Electric utility subsidiary | ' |
Electric utility subsidiary | |
For consolidated Hawaiian Electric financial information, including its commitments and contingencies, see Hawaiian Electric’s consolidated financial statements beginning on page 33 through Note 10 on page 49. |
Bank_subsidiary
Bank subsidiary | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Bank subsidiary | ' | ||||||||||||||||||||||||||||||||||||||||
Bank subsidiary | ' | ||||||||||||||||||||||||||||||||||||||||
Bank subsidiary | |||||||||||||||||||||||||||||||||||||||||
Selected financial information | |||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 43,337 | $ | 43,880 | $ | 129,564 | $ | 133,241 | |||||||||||||||||||||||||||||||||
Interest and dividend on investment and mortgage-related securities | 3,025 | 3,432 | 9,723 | 10,534 | |||||||||||||||||||||||||||||||||||||
Total interest and dividend income | 46,362 | 47,312 | 139,287 | 143,775 | |||||||||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||||||
Interest on deposit liabilities | 1,262 | 1,540 | 3,870 | 5,015 | |||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 1,206 | 1,201 | 3,548 | 3,676 | |||||||||||||||||||||||||||||||||||||
Total interest expense | 2,468 | 2,741 | 7,418 | 8,691 | |||||||||||||||||||||||||||||||||||||
Net interest income | 43,894 | 44,571 | 131,869 | 135,084 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 54 | 3,580 | 953 | 9,504 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 43,840 | 40,991 | 130,916 | 125,580 | |||||||||||||||||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||||||||||||||
Fees from other financial services | 5,728 | 7,674 | 21,367 | 22,474 | |||||||||||||||||||||||||||||||||||||
Fee income on deposit liabilities | 4,819 | 4,527 | 13,566 | 13,127 | |||||||||||||||||||||||||||||||||||||
Fee income on other financial products | 2,714 | 1,660 | 6,288 | 4,741 | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | 1,547 | 4,077 | 6,896 | 8,297 | |||||||||||||||||||||||||||||||||||||
Gain on sale of securities | — | — | 1,226 | 134 | |||||||||||||||||||||||||||||||||||||
Other income | 3,888 | 1,346 | 7,211 | 4,021 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 18,696 | 19,284 | 56,554 | 52,794 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 20,564 | 18,684 | 60,715 | 56,026 | |||||||||||||||||||||||||||||||||||||
Occupancy | 4,208 | 4,400 | 12,550 | 12,866 | |||||||||||||||||||||||||||||||||||||
Data processing | 2,168 | 2,644 | 7,982 | 7,244 | |||||||||||||||||||||||||||||||||||||
Services | 2,424 | 3,062 | 6,855 | 7,066 | |||||||||||||||||||||||||||||||||||||
Equipment | 1,825 | 1,762 | 5,469 | 5,299 | |||||||||||||||||||||||||||||||||||||
Other expense | 8,539 | 8,096 | 24,634 | 22,909 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 39,728 | 38,648 | 118,205 | 111,410 | |||||||||||||||||||||||||||||||||||||
Income before income taxes | 22,808 | 21,627 | 69,265 | 66,964 | |||||||||||||||||||||||||||||||||||||
Income taxes | 7,532 | 7,419 | 23,915 | 22,690 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 15,276 | $ | 14,208 | $ | 45,350 | $ | 44,274 | |||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 15,276 | $ | 14,208 | $ | 45,350 | $ | 44,274 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | (1,589 | ) | 1,043 | (10,724 | ) | 1,910 | |||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | — | — | (738 | ) | (81 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||||||||||||||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $278 and $176 for the three months ended September 30, 2013 and 2012 and $2,010 and $508 for the nine months ended September 30, 2013 and 2012, respectively | 420 | 266 | 3,043 | 769 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (1,169 | ) | 1,309 | (8,419 | ) | 2,598 | |||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 14,107 | $ | 15,517 | $ | 36,931 | $ | 46,872 | |||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets Data | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 189,524 | $ | 184,430 | |||||||||||||||||||||||||||||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | 671,358 | |||||||||||||||||||||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | 96,022 | |||||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 4,046,184 | 3,779,218 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (41,052 | ) | (41,985 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable held for investment, net | 4,005,132 | 3,737,233 | |||||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 5,829 | 26,005 | |||||||||||||||||||||||||||||||||||||||
Other | 248,020 | 244,435 | |||||||||||||||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,159,372 | $ | 5,041,673 | |||||||||||||||||||||||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||||||||||||||||||||||
Deposit liabilities—noninterest-bearing | $ | 1,205,526 | $ | 1,164,308 | |||||||||||||||||||||||||||||||||||||
Deposit liabilities—interest-bearing | 3,105,316 | 3,065,608 | |||||||||||||||||||||||||||||||||||||||
Other borrowings | 239,612 | 195,926 | |||||||||||||||||||||||||||||||||||||||
Other | 102,172 | 117,752 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 4,652,626 | 4,543,594 | |||||||||||||||||||||||||||||||||||||||
Commitments and contingencies (see “Litigation” below) | |||||||||||||||||||||||||||||||||||||||||
Common stock | 335,448 | 333,712 | |||||||||||||||||||||||||||||||||||||||
Retained earnings | 195,113 | 179,763 | |||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), net of taxes | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | (701 | ) | $ | 10,761 | ||||||||||||||||||||||||||||||||||||
Retirement benefit plans | (23,114 | ) | (23,815 | ) | (26,157 | ) | (15,396 | ) | |||||||||||||||||||||||||||||||||
Total shareholder’s equity | 506,746 | 498,079 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,159,372 | $ | 5,041,673 | |||||||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | $ | 128,833 | $ | 125,726 | |||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 67,634 | 62,458 | |||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 4,394 | 13,199 | |||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,372 | 13,228 | |||||||||||||||||||||||||||||||||||||||
Mortgage-servicing rights | 11,806 | 10,818 | |||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans, net | 1,488 | 6,050 | |||||||||||||||||||||||||||||||||||||||
Other | 20,493 | 12,956 | |||||||||||||||||||||||||||||||||||||||
$ | 248,020 | $ | 244,435 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Accrued expenses | $ | 20,463 | $ | 17,103 | |||||||||||||||||||||||||||||||||||||
Federal and state income taxes payable | 30,249 | 35,408 | |||||||||||||||||||||||||||||||||||||||
Cashier’s checks | 24,183 | 23,478 | |||||||||||||||||||||||||||||||||||||||
Advance payments by borrowers | 5,694 | 9,685 | |||||||||||||||||||||||||||||||||||||||
Other | 21,583 | 32,078 | |||||||||||||||||||||||||||||||||||||||
$ | 102,172 | $ | 117,752 | ||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death. | |||||||||||||||||||||||||||||||||||||||||
Other borrowings consisted of securities sold under agreements to repurchase and advances from the Federal Home Loan Bank (FHLB) of Seattle of $140 million and $100 million, respectively, as of September 30, 2013 and $146 million and $50 million, respectively, as of December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the balance sheet. All such agreements are subject to master netting arrangements, which provide for conditional right of set-off in case of default by either party; however, ASB presents securities sold under agreements to repurchase on a gross basis in the balance sheet. The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Gross amount of | Gross amount offset in | Net amount of liabilities presented | ||||||||||||||||||||||||||||||||||||||
recognized liabilities | the Balance Sheet | in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | $ | 140 | $ | — | $ | 140 | |||||||||||||||||||||||||||||||||||
31-Dec-12 | 146 | — | 146 | ||||||||||||||||||||||||||||||||||||||
Gross amount not offset in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Net amount of | Financial | Cash | Net amount | |||||||||||||||||||||||||||||||||||||
liabilities presented | instruments | collateral | |||||||||||||||||||||||||||||||||||||||
in the Balance Sheet | pledged | ||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Commercial account holders | 90 | 90 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 140 | $ | 140 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Commercial account holders | 96 | 96 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 146 | $ | 146 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Investment and mortgage-related securities portfolio. | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities. The book value (amortized cost), gross unrealized gains and losses, estimated fair value and gross unrealized losses (fair value and amount by duration of time in which positions have been held in a continuous loss position) for securities held in ASB’s “available-for-sale” portfolio by major security type were as follows: | |||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair | Gross unrealized losses | |||||||||||||||||||||||||||||||||||||
value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Fair value | Amount | Fair value | Amount | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 99,812 | $ | 389 | $ | (1,936 | ) | $ | 98,265 | $ | 29,755 | $ | (1,936 | ) | $ | — | $ | — | |||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 359,437 | 6,308 | (7,768 | ) | 357,977 | 164,998 | (7,620 | ) | 3,910 | (148 | ) | ||||||||||||||||||||||||||||||
Municipal bonds | 77,181 | 2,034 | (193 | ) | 79,022 | 26,526 | (193 | ) | — | — | |||||||||||||||||||||||||||||||
$ | 536,430 | $ | 8,731 | $ | (9,897 | ) | $ | 535,264 | $ | 221,279 | $ | (9,749 | ) | $ | 3,910 | $ | (148 | ) | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 168,324 | $ | 3,167 | $ | — | $ | 171,491 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 407,175 | 10,412 | (204 | ) | 417,383 | 32,269 | (204 | ) | — | — | |||||||||||||||||||||||||||||||
Municipal bonds | 77,993 | 4,491 | — | 82,484 | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 653,492 | $ | 18,070 | $ | (204 | ) | $ | 671,358 | $ | 32,269 | $ | (204 | ) | $ | — | $ | — | ||||||||||||||||||||||||
The unrealized losses on ASB’s investments in mortgage-related securities and obligations issued by federal agencies were caused by interest rate movements. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because ASB does not intend to sell the securities and has determined it is more likely than not that it will not be required to sell the investments before recovery of their amortized costs basis, which may be at maturity, ASB did not consider these investments to be other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||||||||||||||||||
The fair values of ASB’s investment securities could decline if interest rates rise or spreads widen. | |||||||||||||||||||||||||||||||||||||||||
The following table details the contractual maturities of available-for-sale securities. All positions with variable maturities (e.g. callable debentures and mortgage-related securities) are disclosed based upon the bond’s contractual maturity. Actual maturities will likely differ from these contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Amortized cost | Fair value | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 28,120 | $ | 28,143 | |||||||||||||||||||||||||||||||||||||
Due after one year through five years | 37,922 | 38,324 | |||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 85,760 | 87,192 | |||||||||||||||||||||||||||||||||||||||
Due after ten years | 25,191 | 23,628 | |||||||||||||||||||||||||||||||||||||||
176,993 | 177,287 | ||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA,FHLMC and GNMA | 359,437 | 357,977 | |||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 536,430 | $ | 535,264 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses. ASB must maintain an allowance for loan losses that is adequate to absorb estimated probable credit losses associated with its loan portfolio. The allowance for loan losses consists of an allocated portion, which estimates credit losses for specifically identified loans and pools of loans, and an unallocated portion. | |||||||||||||||||||||||||||||||||||||||||
The allowance for loan losses (balances and changes) and financing receivables were as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Residential | Commercial real | Home | Residential land | Commercial construction | Residential construction | Commercial loans | Consumer loans | Unallocated | Total | |||||||||||||||||||||||||||||||
1-4 family | estate | equity line of credit | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,357 | $ | 4,117 | $ | 5,009 | $ | 2,187 | $ | 2,305 | $ | 14 | $ | 16,307 | $ | 2,399 | $ | 2,309 | $ | 41,004 | |||||||||||||||||||||
Charge-offs | (106 | ) | — | (44 | ) | (3 | ) | — | — | (305 | ) | (407 | ) | — | (865 | ) | |||||||||||||||||||||||||
Recoveries | 157 | — | 78 | 282 | — | — | 166 | 176 | — | 859 | |||||||||||||||||||||||||||||||
Provision | (604 | ) | 204 | 12 | (361 | ) | 44 | 2 | (361 | ) | 42 | 1,076 | 54 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 7,212 | $ | 2,078 | $ | 4,843 | $ | 3,340 | $ | 2,255 | $ | 3 | $ | 13,961 | $ | 3,797 | $ | 1,974 | $ | 39,463 | |||||||||||||||||||||
Charge-offs | (964 | ) | — | (363 | ) | (1,093 | ) | — | — | (1,130 | ) | (601 | ) | — | (4,151 | ) | |||||||||||||||||||||||||
Recoveries | 379 | — | 7 | 226 | — | — | 155 | 151 | — | 918 | |||||||||||||||||||||||||||||||
Provision | 100 | 4 | 378 | 1,324 | (324 | ) | 5 | 1,344 | 462 | 287 | 3,580 | ||||||||||||||||||||||||||||||
Ending balance | $ | 6,727 | $ | 2,082 | $ | 4,865 | $ | 3,797 | $ | 1,931 | $ | 8 | $ | 14,330 | $ | 3,809 | $ | 2,261 | $ | 39,810 | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,068 | $ | 2,965 | $ | 4,493 | $ | 4,275 | $ | 2,023 | $ | 9 | $ | 15,931 | $ | 4,019 | $ | 2,202 | $ | 41,985 | |||||||||||||||||||||
Charge-offs | (1,162 | ) | — | (782 | ) | (238 | ) | — | — | (1,655 | ) | (1,811 | ) | — | (5,648 | ) | |||||||||||||||||||||||||
Recoveries | 1,382 | — | 334 | 782 | — | — | 778 | 486 | — | 3,762 | |||||||||||||||||||||||||||||||
Provision | (484 | ) | 1,356 | 1,010 | (2,714 | ) | 326 | 7 | 753 | (484 | ) | 1,183 | 953 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 944 | $ | 888 | $ | — | $ | 1,585 | $ | — | $ | — | $ | 2,679 | $ | — | $ | — | $ | 6,096 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,860 | $ | 3,433 | $ | 5,055 | $ | 520 | $ | 2,349 | $ | 16 | $ | 13,128 | $ | 2,210 | $ | 3,385 | $ | 34,956 | |||||||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,015,082 | $ | 405,037 | $ | 703,210 | $ | 18,400 | $ | 51,067 | $ | 10,460 | $ | 749,733 | $ | 102,400 | $ | — | $ | 4,055,389 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 22,123 | $ | 4,484 | $ | 960 | $ | 12,747 | $ | — | $ | — | $ | 22,777 | $ | 19 | $ | — | $ | 63,110 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,992,959 | $ | 400,553 | $ | 702,250 | $ | 5,653 | $ | 51,067 | $ | 10,460 | $ | 726,956 | $ | 102,381 | $ | — | $ | 3,992,279 | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,500 | $ | 1,688 | $ | 4,354 | $ | 3,795 | $ | 1,888 | $ | 4 | $ | 14,867 | $ | 3,806 | $ | 1,004 | $ | 37,906 | |||||||||||||||||||||
Charge-offs | (2,476 | ) | — | (402 | ) | (2,340 | ) | — | — | (2,964 | ) | (1,853 | ) | — | (10,035 | ) | |||||||||||||||||||||||||
Recoveries | 974 | — | 95 | 471 | — | — | 511 | 384 | — | 2,435 | |||||||||||||||||||||||||||||||
Provision | 1,729 | 394 | 818 | 1,871 | 43 | 4 | 1,916 | 1,472 | 1,257 | 9,504 | |||||||||||||||||||||||||||||||
Ending balance | $ | 6,727 | $ | 2,082 | $ | 4,865 | $ | 3,797 | $ | 1,931 | $ | 8 | $ | 14,330 | $ | 3,809 | $ | 2,261 | $ | 39,810 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 324 | $ | 7 | $ | 313 | $ | 2,321 | $ | — | $ | — | $ | 1,656 | $ | — | $ | — | $ | 4,621 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 6,403 | $ | 2,075 | $ | 4,552 | $ | 1,476 | $ | 1,931 | $ | 8 | $ | 12,674 | $ | 3,809 | $ | 2,261 | $ | 35,189 | |||||||||||||||||||||
Financing Receivables: | 0 | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 1,899,580 | $ | 367,765 | $ | 604,279 | $ | 29,280 | $ | 42,913 | $ | 5,648 | $ | 704,100 | $ | 104,338 | $ | — | $ | 3,757,903 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 26,912 | $ | 2,929 | $ | 1,913 | $ | 25,146 | $ | — | $ | — | $ | 17,956 | $ | 22 | $ | — | $ | 74,878 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,872,668 | $ | 364,836 | $ | 602,366 | $ | 4,134 | $ | 42,913 | $ | 5,648 | $ | 686,144 | $ | 104,316 | $ | — | $ | 3,683,025 | |||||||||||||||||||||
The reversal of provision for loan losses for the 1-4 family, residential land and commercial loan portfolios in the third quarter of 2013 was due to lower loss rates as a result of improving charge-off and credit trends, as well as declining balances in the higher risk purchased mortgage and land loan portfolios. The increase in the unallocated allowance for loan losses in the third quarter of 2013 was primarily due to uncertainty over the impact of the possible U.S. debt default and the federal government shutdown in the first half of October 2013 that could affect the credit quality of the loan portfolios as individuals and businesses struggling with loan payments are pushed into delinquency or default. | |||||||||||||||||||||||||||||||||||||||||
Credit quality. ASB performs an internal loan review and grading on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of its lending policies and procedures. The objectives of the loan review and grading procedures are to identify, in a timely manner, existing or emerging credit trends so that appropriate steps can be initiated to manage risk and avoid or minimize future losses. Loans subject to grading include commercial and industrial, commercial real estate and commercial construction loans. | |||||||||||||||||||||||||||||||||||||||||
A dual ten-point risk rating system is used to reflect the probability of default (borrower risk rating) and loss given default (transaction risk rating). The borrower risk rating addresses risk presented by the individual borrower and is based on the overall assessment of the borrower’s financial and operating strength including earnings, operating cash flow, debt service capacity, asset and liability structure, competitive issues, experience and quality of management, financial reporting quality and industry/economic factors. Separately, the transaction risk rating addresses risk in the transaction and is a function of the type of collateral control exercised over the collateral, loan structure, guarantees, and other structural support or enhancements to the loan. | |||||||||||||||||||||||||||||||||||||||||
The numerical representation of the risk categories are: | |||||||||||||||||||||||||||||||||||||||||
1- Substantially risk free | 6- Acceptable risk | ||||||||||||||||||||||||||||||||||||||||
2- Minimal risk | 7- Special mention | ||||||||||||||||||||||||||||||||||||||||
3- Modest risk | 8- Substandard | ||||||||||||||||||||||||||||||||||||||||
4- Better than average risk | 9- Doubtful | ||||||||||||||||||||||||||||||||||||||||
5- Average risk | 10- Loss | ||||||||||||||||||||||||||||||||||||||||
Grades 1 through 6 are considered pass grades. Pass exposures generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral. | |||||||||||||||||||||||||||||||||||||||||
The credit risk profile by internally assigned grade for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | |||||||||||||||||||||||||||||||||||
real estate | construction | real estate | construction | ||||||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 332,407 | $ | 51,067 | $ | 661,720 | $ | 314,182 | $ | 39,063 | $ | 638,854 | |||||||||||||||||||||||||||||
Special mention | 40,437 | — | 18,948 | 25,437 | 4,925 | 24,511 | |||||||||||||||||||||||||||||||||||
Substandard | 28,403 | — | 65,571 | 29,308 | — | 53,538 | |||||||||||||||||||||||||||||||||||
Doubtful | 3,790 | — | 3,494 | 6,750 | — | 4,446 | |||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 405,037 | $ | 51,067 | $ | 749,733 | $ | 375,677 | $ | 43,988 | $ | 721,349 | |||||||||||||||||||||||||||||
The credit risk profile based on payment activity for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||||||||||
days | days | than | past due | financing | investment> | ||||||||||||||||||||||||||||||||||||
past due | past due | 90 days | receivables | 90 days and | |||||||||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 3,026 | $ | 1,599 | $ | 15,060 | $ | 19,685 | $ | 1,995,397 | $ | 2,015,082 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | 3,790 | 3,790 | 401,247 | 405,037 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 658 | 373 | 880 | 1,911 | 701,299 | 703,210 | — | ||||||||||||||||||||||||||||||||||
Residential land | 684 | 80 | 5,352 | 6,116 | 12,284 | 18,400 | 1,746 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 51,067 | 51,067 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 10,460 | 10,460 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 1,026 | 166 | 4,105 | 5,297 | 744,436 | 749,733 | — | ||||||||||||||||||||||||||||||||||
Consumer loans | 420 | 212 | 182 | 814 | 101,586 | 102,400 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 5,814 | $ | 2,430 | $ | 29,369 | $ | 37,613 | $ | 4,017,776 | $ | 4,055,389 | $ | 1,746 | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,353 | $ | 1,741 | $ | 24,054 | $ | 32,148 | $ | 1,834,302 | $ | 1,866,450 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | 85 | — | 6,750 | 6,835 | 368,842 | 375,677 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,077 | 142 | 1,319 | 2,538 | 627,637 | 630,175 | — | ||||||||||||||||||||||||||||||||||
Residential land | 2,851 | 75 | 7,788 | 10,714 | 15,101 | 25,815 | — | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 43,988 | 43,988 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 6,171 | 6,171 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 3,052 | 2,814 | 1,098 | 6,964 | 714,385 | 721,349 | 131 | ||||||||||||||||||||||||||||||||||
Consumer loans | 598 | 348 | 424 | 1,370 | 119,861 | 121,231 | 242 | ||||||||||||||||||||||||||||||||||
Total loans | $ | 14,016 | $ | 5,120 | $ | 41,433 | $ | 60,569 | $ | 3,730,287 | $ | 3,790,856 | $ | 373 | |||||||||||||||||||||||||||
The credit risk profile based on nonaccrual loans and accruing loans 90 days or more past due was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Nonaccrual | Accruing loans | Nonaccrual | Accruing loans | |||||||||||||||||||||||||||||||||||||
loans | 90 days or | loans | 90 days or | ||||||||||||||||||||||||||||||||||||||
more past due | more past due | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 18,908 | $ | — | $ | 26,721 | $ | — | |||||||||||||||||||||||||||||||||
Commercial real estate | 4,483 | — | 6,750 | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,948 | — | 2,349 | — | |||||||||||||||||||||||||||||||||||||
Residential land | 3,606 | 1,746 | 8,561 | — | |||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 21,308 | — | 20,222 | 131 | |||||||||||||||||||||||||||||||||||||
Consumer loans | 519 | — | 284 | 242 | |||||||||||||||||||||||||||||||||||||
Total | $ | 50,772 | $ | 1,746 | $ | 64,887 | $ | 373 | |||||||||||||||||||||||||||||||||
The total carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loan losses and combined, were as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||
investment | principal | Allowance | recorded | income | recorded | income | |||||||||||||||||||||||||||||||||||
balance | investment | recognized* | investment | recognized* | |||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 10,121 | $ | 13,122 | $ | — | $ | 9,777 | $ | 62 | $ | 12,304 | $ | 294 | |||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | 1,069 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 523 | 1,068 | — | 526 | — | 606 | — | ||||||||||||||||||||||||||||||||||
Residential land | 5,734 | 6,712 | — | 6,095 | 216 | 7,477 | 435 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 6,311 | 8,624 | — | 4,941 | 7 | 4,518 | 8 | ||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | 20 | — | ||||||||||||||||||||||||||||||||||
22,708 | 29,545 | — | 21,359 | 285 | 25,994 | 737 | |||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 7,147 | 7,167 | 943 | 7,155 | 83 | 6,411 | 259 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 4,484 | 4,536 | 888 | 4,028 | — | 6,157 | 151 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential land | 6,101 | 6,228 | 1,585 | 6,105 | 102 | 7,123 | 304 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 16,466 | 17,978 | 2,679 | 16,524 | 67 | 15,606 | 72 | ||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
34,198 | 35,909 | 6,095 | 33,812 | 252 | 35,297 | 786 | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 17,268 | 20,289 | 943 | 16,932 | 145 | 18,715 | 553 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 4,484 | 4,536 | 888 | 4,028 | — | 7,226 | 151 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 523 | 1,068 | — | 526 | — | 606 | — | ||||||||||||||||||||||||||||||||||
Residential land | 11,835 | 12,940 | 1,585 | 12,200 | 318 | 14,600 | 739 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 22,777 | 26,602 | 2,679 | 21,465 | 74 | 20,124 | 80 | ||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | 20 | — | ||||||||||||||||||||||||||||||||||
$ | 56,906 | $ | 65,454 | $ | 6,095 | $ | 55,171 | $ | 537 | $ | 61,291 | $ | 1,523 | ||||||||||||||||||||||||||||
31-Dec-12 | Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||
investment | principal | allowance | recorded | income | |||||||||||||||||||||||||||||||||||||
balance | investment | recognized* | |||||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 14,633 | $ | 20,247 | $ | — | $ | 16,688 | $ | 294 | |||||||||||||||||||||||||||||||
Commercial real estate | 2,929 | 2,929 | — | 7,771 | 237 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 581 | 1,374 | — | 632 | 1 | ||||||||||||||||||||||||||||||||||||
Residential land | 7,691 | 10,624 | — | 21,589 | 1,185 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 4,265 | 6,994 | — | 24,605 | 986 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 21 | 21 | — | 23 | — | ||||||||||||||||||||||||||||||||||||
30,120 | 42,189 | — | 71,308 | 2,703 | |||||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 4,803 | 4,803 | 384 | 4,204 | 250 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 3,821 | 3,840 | 535 | 1,295 | — | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | 26 | — | ||||||||||||||||||||||||||||||||||||
Residential land | 9,984 | 10,364 | 3,221 | 7,428 | 575 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 16,033 | 16,912 | 2,659 | 8,429 | 23 | ||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
34,641 | 35,919 | 6,799 | 21,382 | 848 | |||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 19,436 | 25,050 | 384 | 20,892 | 544 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 6,750 | 6,769 | 535 | 9,066 | 237 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 581 | 1,374 | — | 658 | 1 | ||||||||||||||||||||||||||||||||||||
Residential land | 17,675 | 20,988 | 3,221 | 29,017 | 1,760 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 20,298 | 23,906 | 2,659 | 33,034 | 1,009 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 21 | 21 | — | 23 | — | ||||||||||||||||||||||||||||||||||||
$ | 64,761 | $ | 78,108 | $ | 6,799 | $ | 92,690 | $ | 3,551 | ||||||||||||||||||||||||||||||||
___________________________________________ | |||||||||||||||||||||||||||||||||||||||||
* Since loan was classified as impaired. | |||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings. A loan modification is deemed to be a troubled debt restructuring (TDR) when ASB grants a concession it would not otherwise consider were it not for the borrower’s financial difficulty. When a borrower experiencing financial difficulty fails to make a required payment on a loan or is in imminent default, ASB takes a number of steps to improve the collectability of the loan and maximize the likelihood of full repayment. At times, ASB may modify or restructure a loan to help a distressed borrower improve its financial position to eventually be able to fully repay the loan, provided the borrower has demonstrated both the willingness and the ability to fulfill the modified terms. TDR loans are considered an alternative to foreclosure or liquidation with the goal of minimizing losses to ASB and maximizing recovery. | |||||||||||||||||||||||||||||||||||||||||
ASB may consider various types of concessions in granting a TDR including maturity date extensions, extended amortization of principal, temporary deferral of principal payments, and temporary interest rate reductions. ASB rarely grants principal forgiveness in its TDR modifications. Residential loan modifications generally involve interest rate reduction, extending the amortization period, or capitalizing certain delinquent amounts owed not to exceed the original loan balance. Land loans at origination are typically structured as a three-year term, interest-only monthly payment with a balloon payment due at maturity. Land loan TDR modifications typically involve extending the maturity date up to five years and converting the payments from interest-only to principal and interest monthly, at the same or higher interest rate. Commercial loan modifications generally involve extensions of maturity dates, extending the amortization period, and temporary deferral of principal payments. ASB does not reduce the interest rate on commercial loan TDR modifications. Occasionally, additional collateral and/or guaranties are obtained. | |||||||||||||||||||||||||||||||||||||||||
All TDR loans are classified as impaired and are segregated and reviewed separately when assessing the adequacy of the allowance for loan losses based on the appropriate method of measuring impairment: (1) present value of expected future cash flows discounted at the loan’s effective original contractual rate, (2) fair value of collateral less cost to sell, or (3) observable market price. The financial impact of the calculated impairment amount is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
Loan modifications that occurred were as follows for the indicated periods: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 14 | $ | 2,864 | $ | 2,874 | 32 | $ | 8,631 | $ | 8,712 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | 4 | 462 | 215 | |||||||||||||||||||||||||||||||||||
Residential land | 9 | 2,943 | 2,943 | 16 | 4,983 | 4,974 | |||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 2,076 | 2,076 | 6 | 2,790 | 2,790 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
26 | $ | 7,883 | $ | 7,893 | 58 | $ | 16,866 | $ | 16,691 | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 4 | $ | 1,415 | $ | 1,332 | 26 | $ | 5,884 | $ | 5,614 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Residential land | 6 | 1,168 | 1,001 | 21 | 4,676 | 4,022 | |||||||||||||||||||||||||||||||||||
Commercial loans | 4 | 517 | 517 | 18 | 2,546 | 2,546 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
14 | $ | 3,100 | $ | 2,850 | 65 | $ | 13,106 | $ | 12,182 | ||||||||||||||||||||||||||||||||
Loans modified in TDRs that experienced a payment default of 90 days or more in 2013 and 2012, and for which the payment default occurred within one year of the modification, were as follows: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1 | 67 | 1 | 67 | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 669 | 3 | 669 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
4 | $ | 736 | 4 | $ | 736 | ||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | — | — | 1 | 488 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | $ | — | 1 | $ | 488 | ||||||||||||||||||||||||||||||||||||
If loans modified in a TDR subsequently default, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. Commitments to lend additional funds to borrowers whose loan terms have been impaired or modified in TDRs totaled $0.3 million as of September 30, 2013. | |||||||||||||||||||||||||||||||||||||||||
Litigation. In March 2011, a purported class action lawsuit was filed in the First Circuit Court of the State of Hawaii by a customer who claimed that ASB had improperly charged overdraft fees on debit card transactions. The lawsuit is still in its preliminary stage, thus, the probable outcome and range of reasonably possible loss are not determinable at this time. | |||||||||||||||||||||||||||||||||||||||||
ASB is subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, ASB cannot rule out the possibility that such outcomes could have a material adverse effect on the results of operations or liquidity for a particular reporting period in the future. |
Retirement_benefits
Retirement benefits | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | |||||||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2013, the Company contributed $62 million (primarily by the Utilities) to its pension and other postretirement benefit plans, compared to $64 million (primarily by the Utilities) in the first nine months of 2012. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2013 is $83 million ($81 million by the Utilities, $2 million by HEI and nil by ASB), compared to $78 million ($63 million by the Utilities, $2 million by HEI and $13 million by ASB) in 2012. In addition, the Company expects to pay directly $2 million ($1 million each by the Utilities and HEI) of benefits in 2013, compared to $1 million paid in 2012. | |||||||||||||||||||||||||||||||||
On July 6, 2012, President Obama signed the Moving Ahead for Progress in the 21st Century Act (MAP-21), which included provisions related to the funding and administration of pension plans. This law does not affect the Company’s accounting for pension benefits; therefore, the net periodic benefit costs disclosed for the plans were not affected. The Company elected to apply MAP-21 for 2012, which improved the plans’ Adjusted Funding Target Attainment Percentage (AFTAP) for funding and benefit distribution purposes and thereby reduced the 2012 minimum funding requirement and lifted the restrictions on accelerated distribution options (which restrictions were in effect from April 1, 2011 to September 30, 2012) for HEI and Hawaiian Electric and its subsidiaries. The effects of MAP-21 are expected to cause the minimum required funding under the Employee Retirement Income Security Act of 1974, as amended (ERISA) to be less than the net periodic cost for 2013 and 2014; therefore, to satisfy the requirements of the Utilities pension and other postretirement benefits (OPEB) tracking mechanisms, the Utilities expect to contribute the net periodic cost for these years. | |||||||||||||||||||||||||||||||||
The Pension Protection Act provides that if a pension plan’s funded status falls below certain levels, more conservative assumptions must be used to value obligations under the pension plan. The HEI Retirement Plan fell below these thresholds in 2011 and the minimum required contribution for 2012 incorporated the more conservative assumptions required. However, the HEI Retirement Plan met the threshold requirements in each of 2012 and 2013 so that the more conservative assumptions do not apply for either the 2013 or 2014 valuation of plan liabilities for purposes of calculating the minimum required contribution. Other factors could cause changes to the required contribution levels. | |||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for consolidated HEI were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 14,097 | $ | 10,816 | $ | 1,077 | $ | 1,054 | $ | 42,307 | $ | 32,404 | $ | 3,229 | $ | 3,158 | |||||||||||||||||
Interest cost | 16,187 | 16,868 | 1,891 | 2,252 | 48,600 | 50,612 | 5,677 | 6,756 | |||||||||||||||||||||||||
Expected return on plan assets | (18,134 | ) | (17,796 | ) | (2,531 | ) | (2,579 | ) | (54,401 | ) | (53,388 | ) | (7,614 | ) | (7,757 | ) | |||||||||||||||||
Amortization of net transition obligation | — | 1 | — | — | — | 1 | — | — | |||||||||||||||||||||||||
Amortization of net prior service gain | (24 | ) | (81 | ) | (448 | ) | (448 | ) | (73 | ) | (244 | ) | (1,345 | ) | (1,345 | ) | |||||||||||||||||
Amortization of net actuarial loss | 9,560 | 6,425 | 398 | 373 | 28,878 | 19,251 | 1,203 | 1,125 | |||||||||||||||||||||||||
Net periodic benefit cost | 21,686 | 16,233 | 387 | 652 | 65,311 | 48,636 | 1,150 | 1,937 | |||||||||||||||||||||||||
Impact of PUC D&Os | (9,257 | ) | (3,460 | ) | (332 | ) | (552 | ) | (28,847 | ) | (12,294 | ) | (1,018 | ) | (1,648 | ) | |||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 12,429 | $ | 12,773 | $ | 55 | $ | 100 | $ | 36,464 | $ | 36,342 | $ | 132 | $ | 289 | |||||||||||||||||
Consolidated HEI recorded retirement benefits expense of $24 million and $27 million in the first nine months of 2013 and 2012, respectively, and charged the remaining amounts primarily to electric utility plant. | |||||||||||||||||||||||||||||||||
The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the respective utility’s next rate case. | |||||||||||||||||||||||||||||||||
Defined contribution plans information. For the first nine months of 2013 and 2012, the Company’s expense for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan was $3.1 million and $2.7 million, respectively, and cash contributions were $3.7 million and $3.2 million, respectively. |
Sharebased_compensation
Share-based compensation | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||||
Share-based compensation | ' | |||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||
Under the 2010 Equity and Incentive Plan (EIP), HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. | ||||||||||||||||||||||||||||||||
As of September 30, 2013, there were 3.6 million shares remaining available for future issuance under the EIP of which an estimated 2.6 million shares could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals under long-term incentive plans (based on the assumption that long-term incentive plan (LTIP) awards are achieved at maximum levels). | ||||||||||||||||||||||||||||||||
Under the 1987 Stock Option and Incentive Plan, as amended (SOIP), there are possible future issuances upon the exercise of outstanding stock appreciation rights (SARs) and dividend equivalents; however, based on the market price of shares on September 30, 2013, the SARS had no intrinsic value. As of May 11, 2010 (when the EIP became effective), no new awards may be granted under the SOIP. After the shares of common stock for the outstanding SOIP grants and awards are issued or such grants and awards expire, the remaining shares registered under the SOIP will be deregistered and delisted. | ||||||||||||||||||||||||||||||||
Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors. As of September 30, 2013, there were 202,460 shares remaining available for future issuance. | ||||||||||||||||||||||||||||||||
The Company’s share-based compensation expense and related income tax benefit were as follows: | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Share-based compensation expense (1) | $ | 2.5 | $ | 1.4 | $ | 6 | $ | 5.4 | ||||||||||||||||||||||||
Income tax benefit | 0.9 | 0.5 | 2.2 | 1.9 | ||||||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | The Company has not capitalized any share-based compensation cost. | |||||||||||||||||||||||||||||||
Stock awards. On June 28, 2013 and June 29, 2012, HEI granted 33,184 shares and 29,448 shares, respectively, with a fair value of $0.8 million and $0.8 million and related tax benefits of $0.3 million and $0.3 million, respectively, to HEI nonemployee directors under the 2011 Director Plan. The number of shares issued to each HEI nonemployee director is determined based on the closing price of HEI Common Stock on grant date. | ||||||||||||||||||||||||||||||||
Nonqualified stock options. As of December 31, 2012, nonqualified stock options (NQSOs) outstanding totaled 14,000 (representing the same number of underlying shares), with a weighted-average exercise price of $20.49. As of September 30, 2013, there were no NQSOs outstanding. | ||||||||||||||||||||||||||||||||
NQSO activity and statistics were as follows: | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
(dollars in thousands, except prices) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Shares exercised | — | 8,000 | 14,000 | 41,500 | ||||||||||||||||||||||||||||
Weighted-average exercise price | $ | — | $ | 20.49 | $ | 20.49 | $ | 21.06 | ||||||||||||||||||||||||
Cash received from exercise | $ | — | $ | 164 | $ | 287 | $ | 874 | ||||||||||||||||||||||||
Intrinsic value of shares exercised (1) | $ | — | $ | 89 | $ | 128 | $ | 354 | ||||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | $ | — | $ | 35 | $ | 50 | $ | 138 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
(1) Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option. | ||||||||||||||||||||||||||||||||
Stock appreciation rights. Information about HEI’s SARs was as follows: | ||||||||||||||||||||||||||||||||
30-Sep-13 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||||||||||
Year of | Range of | Number of shares | Weighted-average | Weighted-average | ||||||||||||||||||||||||||||
grant | exercise prices | underlying SARs | remaining | exercise price | ||||||||||||||||||||||||||||
contractual life | ||||||||||||||||||||||||||||||||
2004 | $26.02 | 62,000 | 0.6 | $ | 26.02 | |||||||||||||||||||||||||||
2005 | 26.18 | 102,000 | 1.5 | 26.18 | ||||||||||||||||||||||||||||
$26.02-26.18 | 164,000 | 1.2 | $ | 26.12 | ||||||||||||||||||||||||||||
As of December 31, 2012, the shares underlying SARs outstanding totaled 164,000, with a weighted-average exercise price of $26.12. As of September 30, 2013, all SARs outstanding were exercisable and had no aggregate intrinsic value. | ||||||||||||||||||||||||||||||||
SARs activity and statistics were as follows: | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
(dollars in thousands, except prices) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Shares underlying SARS exercised | — | 2,000 | — | 114,000 | ||||||||||||||||||||||||||||
Weighted-average price of shares exercised | — | $ | 26.18 | — | $ | 26.17 | ||||||||||||||||||||||||||
Intrinsic value of shares exercised (1) | — | $ | 3 | — | $ | 197 | ||||||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | — | $ | 1 | — | $ | 77 | ||||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalent rights exceeds the exercise price of the right. | |||||||||||||||||||||||||||||||
Restricted shares and restricted stock awards. Information about HEI’s grants of restricted shares and restricted stock awards was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 9,005 | $ | 22.21 | 14,807 | $ | 22.45 | 9,005 | $ | 22.21 | 46,807 | $ | 24.45 | ||||||||||||||||||||
Granted | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Vested | — | — | (1,000 | ) | 24.68 | — | — | (33,000 | ) | 25.35 | ||||||||||||||||||||||
Forfeited | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Outstanding, end of period | 9,005 | $ | 22.21 | 13,807 | $ | 22.29 | 9,005 | $ | 22.21 | 13,807 | $ | 22.29 | ||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the closing or average price of HEI common stock on the date of grant. | |||||||||||||||||||||||||||||||
As of September 30, 2013, there was $0.1 million of total unrecognized compensation cost related to nonvested restricted shares and restricted stock awards. The cost is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||||||||||||||||||||||||||
For the first nine months of 2012, total restricted stock vested had a grant-date fair value of $0.8 million and the tax benefits realized for tax deductions related to restricted stock awards were $0.2 million. | ||||||||||||||||||||||||||||||||
Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 300,313 | $ | 25.15 | 319,071 | $ | 22.81 | 315,094 | $ | 22.82 | 247,286 | $ | 21.8 | ||||||||||||||||||||
Granted | 4,000 | 26.48 | — | — | 111,231 | 26.88 | 94,846 | 26 | ||||||||||||||||||||||||
Vested | (2,500 | ) | 22.31 | (2,500 | ) | 22.31 | (116,544 | ) | 20.39 | (23,997 | ) | 24.69 | ||||||||||||||||||||
Forfeited | (11,321 | ) | 25.88 | (3,346 | ) | 24.63 | (19,289 | ) | 25.62 | (4,910 | ) | 24.92 | ||||||||||||||||||||
Outstanding, end of period | 290,492 | $ | 25.16 | 313,225 | $ | 22.8 | 290,492 | $ | 25.16 | 313,225 | $ | 22.8 | ||||||||||||||||||||
$ millions | $ millions | $ millions | $ millions | |||||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted | $ | 0.1 | $ | — | $ | 3 | $ | 2.5 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. | |||||||||||||||||||||||||||||||
As of September 30, 2013, there was $4.2 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.5 years. | ||||||||||||||||||||||||||||||||
For the first nine months of 2013 and 2012, total restricted stock units that vested and related dividends had a grant-date fair value of $3.6 million and $0.7 million, respectively, and the related tax benefits were $1.0 million and $0.2 million, respectively. | ||||||||||||||||||||||||||||||||
LTIP payable in stock. The 2011-2013 LTIP, 2012-2014 LTIP and the 2013-2015 LTIP provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals and service conditions. The number of shares of HEI common stock that may be awarded is fixed on the date the grants are made subject to the achievement of specified performance levels. The potential payout varies from 0% to 200% of the number of target shares depending on achievement of the goals. The LTIP performance goals for the LTIP periods include awards with a market goal based on total return to shareholders (TRS) of HEI stock as a percentile to the Edison Electric Institute Index over the applicable three-year period. In addition, the 2011-2013 LTIP, the 2012-2014 LTIP and the 2013-2015 LTIP have performance goals related to levels of HEI consolidated net income, HEI consolidated return on common equity (ROACE), Hawaiian Electric consolidated net income, Hawaiian Electric consolidated ROACE, ASB net income and ASB return on assets — all based on the applicable three-year averages. | ||||||||||||||||||||||||||||||||
LTIP linked to TRS. Information about HEI’s LTIP grants linked to TRS was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 235,064 | $ | 32.87 | 239,407 | $ | 29.12 | 239,256 | $ | 29.12 | 197,385 | $ | 25.94 | ||||||||||||||||||||
Granted | 1,505 | 32.69 | 1,723 | 30.71 | 91,038 | 32.69 | 80,647 | 30.71 | ||||||||||||||||||||||||
Vested (settled or lapsed) | — | — | — | — | (87,753 | ) | 22.45 | (35,397 | ) | 14.85 | ||||||||||||||||||||||
Forfeited | (4,442 | ) | 32.4 | (2,450 | ) | 31.09 | (10,414 | ) | 32.72 | (3,955 | ) | 30.82 | ||||||||||||||||||||
Outstanding, end of period | 232,127 | $ | 32.88 | 238,680 | $ | 29.11 | 232,127 | $ | 32.88 | 238,680 | $ | 29.11 | ||||||||||||||||||||
$ millions | $ millions | $ millions | $ millions | |||||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted | $ | — | $ | 0.1 | $ | 3 | $ | 2.5 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. | |||||||||||||||||||||||||||||||
The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TRS and the resulting fair value of LTIP awards granted: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Risk-free interest rate | 0.38 | % | 0.33 | % | ||||||||||||||||||||||||||||
Expected life in years | 3 | 3 | ||||||||||||||||||||||||||||||
Expected volatility | 19.4 | % | 25.3 | % | ||||||||||||||||||||||||||||
Range of expected volatility for Peer Group | 12.4% to 25.3% | 15.5% to 34.5% | ||||||||||||||||||||||||||||||
Grant date fair value (per share) | $ | 32.69 | $ | 30.71 | ||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 and 2012, total vested LTIP awards linked to TRS and related dividends had a fair value of $2.2 million and $0.6 million, respectively, and the related tax benefits were $0.9 million and $0.2 million, respectively. Of the 87,753 shares vested and granted (at target level based on the satisfaction of TRS performance) for the 2010-2012 LTIP, the HEI Compensation Committee approved settlement of 70,205 shares of HEI common stock in February 2013 (17,548 of the vested shares lapsed). | ||||||||||||||||||||||||||||||||
As of September 30, 2013, there was $2.9 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TRS. The cost is expected to be recognized over a weighted-average period of 1.3 years. | ||||||||||||||||||||||||||||||||
LTIP awards linked to other performance conditions. Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 304,473 | $ | 26.12 | 295,184 | $ | 23.95 | 247,175 | $ | 25.04 | 182,498 | $ | 22.63 | ||||||||||||||||||||
Granted | 1,504 | 27.11 | 4,148 | 27.3 | 120,399 | 26.89 | 122,852 | 26.05 | ||||||||||||||||||||||||
Vested and settled | — | — | — | — | (18,280 | ) | 18.95 | — | — | |||||||||||||||||||||||
Cancelled | — | — | (17,911 | ) | 18.95 | (37,346 | ) | 24.96 | (17,911 | ) | 18.95 | |||||||||||||||||||||
Forfeited | (4,881 | ) | 26.53 | (3,676 | ) | 24.78 | (10,852 | ) | 26.2 | (9,694 | ) | 24.44 | ||||||||||||||||||||
Outstanding, end of period | 301,096 | $ | 26.12 | 277,745 | $ | 24.31 | 301,096 | $ | 26.12 | 277,745 | $ | 24.31 | ||||||||||||||||||||
$ millions | $ millions | $ millions | $ millions | |||||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) | $ | — | $ | 0.1 | $ | 3.2 | $ | 3.2 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. | |||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $0.6 million and the related tax benefits were $0.2 million. | ||||||||||||||||||||||||||||||||
As of September 30, 2013, there was $3.7 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TRS. The cost is expected to be recognized over a weighted-average period of 1.4 years. |
Earnings_per_share_and_shareho
Earnings per share and shareholders' equity | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Earnings per share and shareholders' equity | ' | ||||||||||||||||||||||
Earnings per share and shareholders' equity | ' | ||||||||||||||||||||||
Earnings per share and shareholders’ equity | |||||||||||||||||||||||
Earnings per share. Under the two-class method of computing earnings per share (EPS), EPS was comprised as follows for both participating securities and unrestricted common stock: | |||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Basic | Diluted | Basic and | Basic | Diluted | Basic and | ||||||||||||||||||
diluted | diluted | ||||||||||||||||||||||
Distributed earnings | $ | 0.31 | 0.31 | $ | 0.31 | $ | 0.93 | $ | 0.93 | $ | 0.93 | ||||||||||||
Undistributed earnings | 0.18 | 0.17 | 0.18 | 0.31 | 0.3 | 0.36 | |||||||||||||||||
$ | 0.49 | 0.48 | $ | 0.49 | $ | 1.24 | $ | 1.23 | $ | 1.29 | |||||||||||||
As of September 30, 2013, the antidilutive effects of SARs of 164,000 shares of HEI common stock for which the exercise prices were greater than the closing market price of HEI’s common stock were not included in the computation of dilutive EPS. As of September 30, 2012, there were no shares that were antidilutive. | |||||||||||||||||||||||
Shareholders’ equity. | |||||||||||||||||||||||
Equity forward transaction. On March 19, 2013, HEI entered into an equity forward transaction in connection with a public offering on that date of 6.1 million shares of HEI common stock at $26.75 per share. On March 19, 2013, HEI common stock closed at $27.01 per share. On March 20, 2013, the underwriters exercised their over-allotment option in full and HEI entered into an equity forward transaction in connection with the resulting additional 0.9 million shares of HEI common stock. | |||||||||||||||||||||||
The use of an equity forward transaction substantially eliminates future equity market price risk by fixing a common equity offering sales price under the then existing market conditions, while mitigating immediate share dilution resulting from the offering by postponing the actual issuance of common stock until funds are needed in accordance with the Company’s capital investment plans. Pursuant to the terms of these transactions, a forward counterparty borrowed 7 million shares of HEI’s common stock from third parties and sold them to a group of underwriters for $26.75 per share, less an underwriting discount equal to $1.00312 per share. Under the terms of the equity forward transactions, to the extent that the transactions are physically settled, HEI would be required to issue and deliver shares of HEI common stock to the forward counterparty at the then applicable forward sale price. The forward sale price was initially determined to be $25.74688 per share at the time the equity forward transactions were entered into, and the amount of cash to be received by HEI upon physical settlement of the equity forward is subject to certain adjustments in accordance with the terms of the equity forward transactions. The equity forward transactions must be settled fully by March 25, 2015. Except in specified circumstances or events that would require physical settlement, HEI is able to elect to settle the equity forward transactions by means of physical, cash or net share settlement, in whole or in part, at any time on or prior to March 25, 2015. | |||||||||||||||||||||||
The equity forward transactions had no initial fair value since they were entered into at the then market price of the common stock. HEI will not receive any proceeds from the sale of common stock until the equity forward transactions are settled, and at that time HEI will record the proceeds, if any, in equity. HEI concluded that the equity forward transactions were equity instruments based on the accounting guidance in ASC 480 and ASC 815 and that they qualified for an exception from derivative accounting under ASC 815 because the forward sale transactions were indexed to its own stock. HEI anticipates settling the equity forward transactions through physical settlement. | |||||||||||||||||||||||
At September 30, 2013, the equity forward transactions could have been settled with physical delivery of the shares to the forward counterparty in exchange for cash of $175 million. At September 30, 2013, the equity forward transactions could also have been cash settled, with delivery of cash of approximately $6 million (which amount includes $7 million of underwriting discount) to the forward counterparty, or net share settled with delivery of approximately 212,000 shares of common stock to the forward counterparty. | |||||||||||||||||||||||
Prior to their settlement, the equity forward transactions will be reflected in HEI’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of HEI’s common stock used in calculating diluted earnings per share for a reporting period would be increased by the number of shares, if any, that would be issued upon physical settlement of the equity forward transactions less the number of shares that could be purchased by HEI in the market (based on the average market price during that reporting period) using the proceeds receivable upon settlement of the equity forward transactions (based on the adjusted forward sale price at the end of that reporting period). The excess number of shares is weighted for the portion of the reporting period in which the equity forward transactions are outstanding. | |||||||||||||||||||||||
Accordingly, before physical or net share settlement of the equity forward transactions, and subject to the occurrence of certain events, HEI anticipates that the forward sale agreement and additional forward sale agreement will have a dilutive effect on HEI’s earnings per share only during periods when the applicable average market price per share of HEI’s common stock is above the per share adjusted forward sale price, as described above. However, if HEI decides to physically or net share settle the forward sale agreement and additional forward sale agreement, any delivery by HEI of shares upon settlement could result in dilution to HEI’s earnings per share. | |||||||||||||||||||||||
For the nine months ended September 30, 2013, the equity forward transactions did not have a material dilutive effect on HEI’s earnings per share. | |||||||||||||||||||||||
Accumulated other comprehensive income. Reclassifications out of accumulated other comprehensive income/(loss) (AOCI) were as follows: | |||||||||||||||||||||||
Amount reclassified from AOCI | |||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | Affected line item in the Statement of Income | ||||||||||||||||||
Net realized gains on securities | $ | — | $ | — | $ | (738 | ) | $ | (81 | ) | Revenues-bank (net gains on sales of securities) | ||||||||||||
Derivatives qualified as cash flow hedges | |||||||||||||||||||||||
Interest rate contracts (settled in 2011) | 59 | 59 | 177 | 177 | Interest expense | ||||||||||||||||||
Retirement benefit plan items | |||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 5,789 | 3,826 | 17,490 | 11,467 | See Note 5 for additional details | ||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (5,156 | ) | (3,342 | ) | (15,468 | ) | (10,026 | ) | See Note 5 for additional details | ||||||||||||||
Total reclassifications | $ | 692 | $ | 543 | $ | 1,461 | $ | 1,537 | |||||||||||||||
Commitments_and_contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and contingencies | ' |
Commitments and contingencies | |
See Note 4, “Bank subsidiary,” above and Note 5, “Commitments and contingencies,” of Hawaiian Electric’s “Notes to Consolidated Financial Statements,” below. |
Fair_value_measurements
Fair value measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair value measurements | ' | ||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
Fair value estimates are based on the price that would be received to sell an asset, or paid upon the transfer of a liability, in an orderly transaction between market participants at the measurement date. The fair value estimates are generally determined based on assumptions that market participants would use in pricing the asset or liability and are based on market data obtained from independent sources. However, in certain cases, the Company uses its own assumptions about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. | |||||||||||||||||||||
The Company groups its financial assets measured at fair value in three levels outlined as follows: | |||||||||||||||||||||
Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. | |||||||||||||||||||||
Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. | |||||||||||||||||||||
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||||||||||
The Company used the following methods and assumptions to estimate the fair value of each applicable class of financial instruments for which it is practicable to estimate that value: | |||||||||||||||||||||
Short term borrowings—other than bank. The carrying amount approximated fair value because of the short maturity of these instruments. | |||||||||||||||||||||
Investment and mortgage-related securities. To determine the fair value of investment securities held in ASB’s available-for-sale portfolio, independent third-party vendor or broker pricing is used on an unadjusted basis. Prices for investments and mortgage-related securities are based on observable inputs, including historical trading levels or sector yields, using market-based valuation techniques. The third party pricing service uses applications, models and pricing matrices that correlate security prices to benchmark securities which are adjusted for various inputs. Inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark security bids and offers, TBA (to be announced) prices, monthly payment information, and reference data including market research. The pricing service may prioritize inputs differently on any given day for any security, and not all inputs are available for use in the evaluation process on any given day or for each security. The pricing vendor corroborates its finding on an on-going basis by monitoring market activity and events. | |||||||||||||||||||||
Third party pricing services provide security prices in good faith using rigorous methodologies; however, they do not warrant or guarantee the adequacy or accuracy of their information. Therefore, ASB utilizes a separate third party pricing vendor to corroborate security pricing of the first pricing vendor. If the pricing differential between the two pricing sources exceeds an established threshold, a pricing inquiry will be sent to both vendors or to an independent broker to determine a price that can be supported based on observable inputs found in the market. Such challenges to pricing are required infrequently and are generally resolved using additional security-specific information that was not available to a specific vendor. | |||||||||||||||||||||
Loans receivable. The estimated fair value of loans receivable is determined based on characteristics such as loan category, repricing features and remaining maturity, and includes prepayment estimates. | |||||||||||||||||||||
For residential real estate loans, fair values were estimated by discounting estimated cash flows using discount rates based on current industry pricing for loans with similar contractual characteristics and remaining maturity. | |||||||||||||||||||||
For other types of loans, fair values were estimated by discounting contractual cash flows using discount rates that reflect current industry pricing for loans with similar characteristics and remaining maturity. Where industry pricing is not available, discount rates are based on ASB’s current pricing for loans with similar characteristics and remaining maturity. | |||||||||||||||||||||
The fair value of all loans was adjusted to reflect current assessments of loan collectability. Also see “Fair value measurements on a nonrecurring basis” below. | |||||||||||||||||||||
Deposit liabilities. The fair value of savings, negotiable orders of withdrawal, demand and money market deposits was the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||
Other bank borrowings. Fair value was estimated by discounting the future cash flows using the current rates available for borrowings with similar credit terms and remaining maturities. | |||||||||||||||||||||
Long-term debt. Fair value was obtained from third-party financial services providers based on the current rates offered for debt of the same or similar remaining maturities and from discounting the future cash flows using the current rates offered for debt of the same or similar remaining maturities. | |||||||||||||||||||||
Derivative financial instruments. See “Fair value measurements on a recurring basis” below. | |||||||||||||||||||||
Off-balance sheet financial instruments. The fair value of loans serviced for others was calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams were estimated based on industry assumptions regarding prepayment speeds and income and expenses associated with servicing residential mortgage loans for others. The fair value of commitments to originate loans was estimated based on the change in current primary market prices of new commitments. Since lines of credit can expire without being drawn and customers are under no obligation to utilize the lines, no fair value was assigned to unused lines of credit. The fair value of letters of credit was estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. | |||||||||||||||||||||
The estimated fair values of certain of the Company’s financial instruments were as follows: | |||||||||||||||||||||
Carrying or | Estimated fair value | ||||||||||||||||||||
notional | |||||||||||||||||||||
(in thousands) | amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | — | 535,264 | — | 535,264 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | — | 93,413 | — | 93,413 | ||||||||||||||||
Loans receivable, net | 4,010,961 | — | — | 4,149,137 | 4,149,137 | ||||||||||||||||
Derivative assets | 24,196 | — | 558 | — | 558 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,310,842 | — | 4,313,560 | — | 4,313,560 | ||||||||||||||||
Short-term borrowings—other than bank | 131,341 | — | 131,341 | — | 131,341 | ||||||||||||||||
Other bank borrowings | 239,612 | — | 252,230 | — | 252,230 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,880 | — | 1,431,434 | — | 1,431,434 | ||||||||||||||||
Derivative liabilities | 22,185 | 202 | 73 | — | 275 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 671,358 | — | 671,358 | — | 671,358 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 96,022 | — | 96,022 | — | 96,022 | ||||||||||||||||
Loans receivable, net | 3,763,238 | — | — | 3,957,752 | 3,957,752 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,229,916 | — | 4,235,527 | — | 4,235,527 | ||||||||||||||||
Short-term borrowings—other than bank | 83,693 | — | 83,693 | — | 83,693 | ||||||||||||||||
Other bank borrowings | 195,926 | — | 212,163 | — | 212,163 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,872 | — | 1,481,004 | — | 1,481,004 | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, loan commitments and unused lines and letters of credit issued by ASB had notional amounts of $1.6 billion and $1.5 billion, respectively, and their estimated fair value on such dates were $0.6 million and $1.2 million, respectively. As of September 30, 2013 and December 31, 2012, loans serviced by ASB for others had notional amounts of $1.4 billion and $1.3 billion, respectively, and the estimated fair value of the servicing rights for such loans was $16.6 million and $11.9 million, respectively. | |||||||||||||||||||||
Fair value measurements on a recurring basis. | |||||||||||||||||||||
Securities. While securities held in ASB’s investment portfolio trade in active markets, they do not trade on listed exchanges nor do the specific holdings trade in quoted markets by dealers or brokers. All holdings are valued using market-based approaches that are based on exit prices that are taken from identical or similar market transactions, even in situations where trading volume may be low when compared with prior periods. Inputs to these valuation techniques reflect the assumptions that consider credit and nonperformance risk that market participants would use in pricing the asset based on market data obtained from independent sources. Available-for-sale securities were comprised of federal agency obligations and mortgage-backed securities and municipal bonds. | |||||||||||||||||||||
Derivative financial instruments. ASB enters into interest rate lock commitments (IRLC) for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. IRLCs are classified as Level 2 measurements. | |||||||||||||||||||||
ASB utilizes forward commitments as economic hedges against potential changes in the values of the IRLCs and loans held for sale. To reduce the impact of price fluctuations of IRLC and mortgage loans held for sale, ASB will purchase to be announced (TBA) mortgage-backed securities forward commitments, mandatory and best effort commitments. These commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of these commitments are recognized as part of mortgage banking income on the consolidated statements of income. TBA forward commitments are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of ASB’s best efforts and mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the market place that are observable and are classified as Level 2 measurements. | |||||||||||||||||||||
Assets measured at fair value on a recurring basis were as follows: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Quoted prices in | Significant otherobservable | Significant | |||||||||||||||||||
active markets | inputs | unobservable | |||||||||||||||||||
for identical assets | inputs | ||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | |||||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 357,977 | $ | — | |||||||||||||||
Federal agency obligations | — | 98,265 | — | ||||||||||||||||||
Municipal bonds | — | 79,022 | — | ||||||||||||||||||
$ | — | $ | 535,264 | $ | — | ||||||||||||||||
Derivative assets (1) | |||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 556 | $ | — | |||||||||||||||
Forward commitments | — | 2 | — | ||||||||||||||||||
$ | — | $ | 558 | $ | — | ||||||||||||||||
Derivative liabilities (1) - Forward commitments | $ | 202 | $ | 73 | $ | — | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | |||||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 417,383 | $ | — | |||||||||||||||
Federal agency obligations | — | 171,491 | — | ||||||||||||||||||
Municipal bonds | — | 82,484 | — | ||||||||||||||||||
$ | — | $ | 671,358 | $ | — | ||||||||||||||||
___________________________________________ | |||||||||||||||||||||
(1) Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. | |||||||||||||||||||||
Fair value measurements on a nonrecurring basis. From time to time, the Company may be required to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the writedowns of individual assets. ASB does not record loans at fair value on a recurring basis. However, from time to time, ASB records nonrecurring fair value adjustments based on the current appraised value of the collateral securing the loans or unobservable market assumptions. Unobservable assumptions reflect ASB’s own estimate of the fair value of collateral used in valuing the loan. ASB may also be required to measure goodwill at fair value on a nonrecurring basis. During the first nine months of 2013, it was not required that a measurement of the fair value of goodwill be calculated and goodwill was not measured at fair value. | |||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Loans | |||||||||||||||||||||
30-Sep-13 | $ | 5 | $ | — | $ | — | $ | 5 | |||||||||||||
31-Dec-12 | 21 | — | — | 21 | |||||||||||||||||
Real estate acquired in settlement of loans | |||||||||||||||||||||
30-Sep-13 | $ | — | — | — | $ | — | |||||||||||||||
31-Dec-12 | 3 | — | — | 3 | |||||||||||||||||
At September 30, 2013 and 2012, there were no adjustments to fair value for ASB’s loans held for sale. | |||||||||||||||||||||
Residential loans. The fair value of ASB’s residential loans that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
Home equity lines of credit. The fair value of ASB’s home equity lines of credit that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
Commercial loans. The fair value of ASB’s commercial loans that were written down due to impairment was determined based on the value placed on the assets of the business, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
Real estate acquired in settlement of loans. The fair value of ASB’s real estate acquired in settlement of loans that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2013, the significant unobservable inputs used in the fair value measurement were as follows: | |||||||||||||||||||||
Fair value at | Significant unobservable | ||||||||||||||||||||
input value (1) | |||||||||||||||||||||
($ in thousands) | 30-Sep-13 | Valuation technique | Significant unobservable input | Range | Weighted | ||||||||||||||||
Average | |||||||||||||||||||||
Residential loans | $ | 4,028 | Fair value of property or collateral | Appraised value less 7% selling cost | 44-96% | 81% | |||||||||||||||
Home equity lines of credit | 172 | Fair value of property or collateral | Appraised value less 7% selling cost | 46-50% | 50% | ||||||||||||||||
Commercial loans | 759 | Fair value of property or collateral | Fair value of business assets | 31-91% | 60% | ||||||||||||||||
Total loans | 4,959 | ||||||||||||||||||||
Real estate acquired in settlement of loans | 192 | Fair value of property or collateral | Appraised value less 7% selling cost | 81-95% | 90% | ||||||||||||||||
(1) Represent percent of outstanding principal balance. | |||||||||||||||||||||
Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurement. |
Cash_flows
Cash flows | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Cash flows | ' | ||||||||
Cash flows | |||||||||
Nine months ended September 30 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
Interest paid to non-affiliates | $ | 62 | $ | 61 | |||||
Income taxes paid | 2 | — | |||||||
Supplemental disclosures of noncash activities | |||||||||
Common stock dividends reinvested in HEI common stock (1) | 18 | 18 | |||||||
Increases in common stock related to director and officer compensatory plans | 3 | 5 | |||||||
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 | |||||||
Real estate acquired in settlement of loans | 4 | 7 | |||||||
Loans transferred from held-for-investment to held-for-sale | 25 | — | |||||||
___________________________________________ | |||||||||
(1) The amounts shown represent common stock dividends reinvested in HEI common stock under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) in noncash transactions. |
Recent_accounting_pronouncemen
Recent accounting pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
Obligations resulting from joint and several liability. In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date,” which provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance requires entities to measure these obligations as the sum of the amount the entity has agreed with co-obligors to pay and any additional amount it expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information. This guidance is effective for all fiscal years, and interim periods within those years, beginning after December 31, 2013. | |
The Company will retrospectively adopt ASU No. 2013-04 in the first quarter of 2014 and does not expect it to have a material impact on the Company’s results of operations, financial condition or liquidity. | |
Unrecognized tax benefit. In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which clarifies that a liability for an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss tax benefit carryforward (or other tax benefit carrying forward), if the uncertain tax position could result in the reduction of such net operating loss (or other tax benefit) carryforward giving rise to the deferred tax asset. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | |
The Company will prospectively adopt ASU No. 2013-11 in the first quarter of 2014 and does not expect it to have a material impact on the Company’s results of operations, financial condition or liquidity. |
Credit_agreement_and_longterm_
Credit agreement and long-term debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit agreement and long-term debt | ' |
Credit agreement and long-term debt | |
Credit agreement. HEI maintains an amended revolving non-collateralized credit agreement, which established a line of credit facility of $125 million, with a letter of credit sub-facility, expiring on December 5, 2016, with a syndicate of eight financial institutions. The credit facility will be maintained to support the issuance of commercial paper, but also may be drawn to repay HEI’s short-term and long-term indebtedness, to make investments in or loans to subsidiaries and for HEI’s working capital and general corporate purposes. | |
Changes in long-term debt. | |
March 6, 2013 notes. On March 6, 2013, HEI entered into a First Supplement (the First Supplement) to the Master Note Purchase Agreement dated March 24, 2011 (the Note Agreement). Under the First Supplement, HEI issued $50 million of its unsecured, 3.99% Series 2013A Senior Notes, due March 6, 2023, via a private placement with The Prudential Insurance Company of America, Prudential Arizona Reinsurance Captive Company and The Lincoln National Life Insurance Company. | |
The Note Agreement, as modified by the First Supplement (which includes representations that supersede and supplement the representations in the Note Agreement), contains customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the Notes then outstanding becoming immediately due and payable) and provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s existing amended revolving non-collateralized credit agreement described above and in HEI’s Form 10-K for the year ended December 31, 2012. For example, under the Note Agreement, it is an event of default if HEI fails to maintain an unconsolidated “Capitalization Ratio” (funded debt) of 50% or less (actual ratio of 17% as of September 30, 2013, as calculated under the agreement) or “Consolidated Net Worth” of at least $975 million (actual Net Worth of $1.7 billion as of September 30, 2013, as calculated under the agreement). | |
The net proceeds from the issuance of the Notes were used by HEI to refinance $50 million of its unsecured, 5.25% Medium-Term Notes, Series D, which matured on March 7, 2013. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Taxes | ' |
Taxes | |
Out-of period income tax benefit. In the third quarter of 2013, the Company recorded a $3.1 million (including $2.7 million related to the Utilities) out-of-period income tax benefit, resulting primarily from the reversal of deferred tax liabilities due to errors in the amount of book over tax basis differences in plant and equipment. Management concluded that this out-of-period adjustment was not material to either the current or any prior period financial statements. |
Basis_of_presentation_HECO
Basis of presentation - HECO | 9 Months Ended |
Sep. 30, 2013 | |
Basis of presentation | ' |
Basis of presentation | |
The accompanying unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s Form 10-K for the year ended December 31, 2012 and the unaudited consolidated financial statements and the notes thereto in HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | |
In the opinion of HEI’s management, the accompanying unaudited consolidated financial statements contain all material adjustments required by GAAP to fairly state the Company’s financial position as of September 30, 2013 and December 31, 2012, the results of its operations for the three and nine months ended September 30, 2013 and 2012 and its cash flows for the nine months ended September 30, 2013 and 2012. All such adjustments are of a normal recurring nature, unless otherwise disclosed in this Form 10-Q or other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. When required, certain reclassifications are made to the prior period’s consolidated financial statements to conform to the current presentation. | |
Hawaiian Electric Company, Inc. and Subsidiaries | ' |
Basis of presentation | ' |
Basis of presentation | |
The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto incorporated by reference in Hawaiian Electric’s Form 10-K for the year ended December 31, 2012 and the unaudited consolidated financial statements and the notes thereto in Hawaiian Electric’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | |
In the opinion of Hawaiian Electric’s management, the accompanying unaudited consolidated financial statements contain all material adjustments required by GAAP to fairly state the financial position of Hawaiian Electric and its subsidiaries as of September 30, 2013 and December 31, 2012, the results of their operations for the three and nine months ended September 30, 2013 and 2012 and their cash flows for the nine months ended September 30, 2013 and 2012. All such adjustments are of a normal recurring nature unless otherwise disclosed in this Form 10-Q or other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. When required, certain reclassifications are made to the prior period’s consolidated financial statements to conform to the current presentation. |
Unconsolidated_variable_intere
Unconsolidated variable interest entities - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||
Unconsolidated variable interest entities | ' | ||||||||||||||||
Unconsolidated variable interest entities | |||||||||||||||||
HECO Capital Trust III. HECO Capital Trust III (Trust III) was created and exists for the exclusive purposes of (i) issuing in March 2004 2,000,000 6.50% Cumulative Quarterly Income Preferred Securities, Series 2004 (2004 Trust Preferred Securities) ($50 million aggregate liquidation preference) to the public and trust common securities ($1.5 million aggregate liquidation preference) to Hawaiian Electric, (ii) investing the proceeds of these trust securities in 2004 Debentures issued by Hawaiian Electric in the principal amount of $31.5 million and issued by Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric) each in the principal amount of $10 million, (iii) making distributions on these trust securities and (iv) engaging in only those other activities necessary or incidental thereto. The 2004 Trust Preferred Securities are mandatorily redeemable at the maturity of the underlying debt on March 18, 2034, which maturity may be extended to no later than March 18, 2053; and are currently redeemable at the issuer’s option without premium. The 2004 Debentures, together with the obligations of Hawaiian Electric, Hawaii Electric Light and Maui Electric under an expense agreement and Hawaiian Electric’s obligations under its trust guarantee and its guarantee of the obligations of Hawaii Electric Light and Maui Electric under their respective debentures, are the sole assets of Trust III. Taken together, Hawaiian Electric’s obligations under the Hawaiian Electric debentures, the Hawaiian Electric indenture, the subsidiary guarantees, the trust agreement, the expense agreement and trust guarantee provide, in the aggregate, a full, irrevocable and unconditional guarantee of payments of amounts due on the Trust Preferred Securities. Trust III has at all times been an unconsolidated subsidiary of Hawaiian Electric. Since Hawaiian Electric, as the common security holder, does not absorb the majority of the variability of Trust III, Hawaiian Electric is not the primary beneficiary and does not consolidate Trust III in accordance with accounting rules on the consolidation of variable interest entities (VIEs). Trust III’s balance sheets as of September 30, 2013 and December 31, 2012 each consisted of $51.5 million of 2004 Debentures; $50.0 million of 2004 Trust Preferred Securities; and $1.5 million of trust common securities. Trust III’s income statements for the nine months ended September 30, 2013 and 2012 each consisted of $2.5 million of interest income received from the 2004 Debentures, $2.4 million of distributions to holders of the Trust Preferred Securities, and $0.1 million of common dividends on the trust common securities to Hawaiian Electric. As long as the 2004 Trust Preferred Securities are outstanding, Hawaiian Electric is not entitled to receive any funds from Trust III other than pro-rata distributions, subject to certain subordination provisions, on the trust common securities. In the event of a default by Hawaiian Electric in the performance of its obligations under the 2004 Debentures or under its Guarantees, or in the event Hawaiian Electric, Hawaii Electric Light or Maui Electric elect to defer payment of interest on any of their respective 2004 Debentures, then Hawaiian Electric will be subject to a number of restrictions, including a prohibition on the payment of dividends on its common stock. | |||||||||||||||||
Power purchase agreements. As of September 30, 2013, Hawaiian Electric and its subsidiaries had six PPAs for firm capacity and other PPAs with smaller independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or small power production facilities with a capacity of 100 kW or less who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. Approximately 91% of the firm capacity is purchased from AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and HPOWER. Purchases from all IPPs were as follows: | |||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
AES Hawaii | $ | 38 | $ | 38 | $ | 98 | $ | 109 | |||||||||
Kalaeloa | 80 | 78 | 223 | 230 | |||||||||||||
HEP | 15 | 19 | 36 | 48 | |||||||||||||
HPOWER | 17 | 18 | 44 | 48 | |||||||||||||
Other IPPs | 45 | 34 | 126 | 105 | |||||||||||||
Total IPPs | $ | 195 | $ | 187 | $ | 527 | $ | 540 | |||||||||
Some of the IPPs provided sufficient information for Hawaiian Electric to determine that the IPP was not a VIE, or was either a “business” or “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. A windfarm and Kalaeloa provided sufficient information, as required under their PPAs or amendments, such that Hawaiian Electric could determine that consolidation was not required. Management has concluded that the consolidation of some IPPs is not required as Hawaiian Electric and its subsidiaries do not have variable interests in the IPPs because the PPAs do not require them to absorb any variability of the IPPs. | |||||||||||||||||
An enterprise with an interest in a VIE or potential VIE created before December 31, 2003, and not thereafter materially modified, is not required to apply accounting standards for VIEs to that entity if the enterprise is unable to obtain the necessary information after making an exhaustive effort. Hawaiian Electric and its subsidiaries have made and continue to make exhaustive efforts to get the necessary information from two firm capacity producers and other small IPPs who entered into their PPAs prior to December 31, 2003 and have not provided such information, but have been unsuccessful to date as it was not a contractual requirement to provide such information prior to 2004. If the requested information is ultimately received from the remaining IPPs, a possible outcome of future analyses of such information is the consolidation of one or more of such IPPs. The consolidation of any significant IPP could have a material effect on the Company’s and Hawaiian Electric’s consolidated financial statements, including the recognition of a significant amount of assets and liabilities and the potential recognition of losses. If Hawaiian Electric and its subsidiaries determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, Hawaiian Electric and its subsidiaries would retrospectively apply accounting standards for VIEs. | |||||||||||||||||
Kalaeloa Partners, L.P. In October 1988, Hawaiian Electric entered into a PPA with Kalaeloa, subsequently approved by the PUC, which provided that Hawaiian Electric would purchase 180MW of firm capacity for a period of 25 years beginning in May 1991. In October 2004, Hawaiian Electric and Kalaeloa entered into amendments to the PPA, subsequently approved by the PUC, which together effectively increased the firm capacity from 180MW to 208MW. The energy payments that Hawaiian Electric makes to Kalaeloa include: (1) a fuel component, with a fuel price adjustment based on the cost of low sulfur fuel oil, (2) a fuel additives cost component, and (3) a non-fuel component, with an adjustment based on changes in the Gross National Product Implicit Price Deflator. The capacity payments that Hawaiian Electric makes to Kalaeloa are fixed in accordance with the PPA. Kalaeloa also has a steam delivery cogeneration contract with another customer, the term of which coincides with the PPA. The facility has been certified by the Federal Energy Regulatory Commission as a Qualifying Facility under the Public Utility Regulatory Policies Act of 1978. | |||||||||||||||||
Pursuant to the current accounting standards for VIEs, Hawaiian Electric is deemed to have a variable interest in Kalaeloa by reason of the provisions of Hawaiian Electric’s PPA with Kalaeloa. However, management has concluded that Hawaiian Electric is not the primary beneficiary of Kalaeloa because Hawaiian Electric does not have the power to direct the activities that most significantly impact Kalaeloa’s economic performance nor the obligation to absorb Kalaeloa’s expected losses, if any, that could potentially be significant to Kalaeloa. Thus, Hawaiian Electric has not consolidated Kalaeloa in its consolidated financial statements. A significant factor affecting the level of expected losses Hawaiian Electric could potentially absorb is the fact that Hawaiian Electric’s exposure to fuel price variability is limited to the remaining term of the PPA as compared to the facility’s remaining useful life. Although Hawaiian Electric absorbs fuel price variability for the remaining term of the PPA, the PPA does not currently expose Hawaiian Electric to losses as the fuel and fuel related energy payments under the PPA have been approved by the PUC for recovery from customers through base electric rates and through Hawaiian Electric’s ECAC to the extent the fuel and fuel related energy payments are not included in base energy rates. As of September 30, 2013, Hawaiian Electric’s accounts payable to Kalaeloa amounted to $24 million. |
Taxes_HECO
Taxes - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended |
Sep. 30, 2013 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ' |
Revenue taxes | ' |
Taxes | |
Revenue taxes. Hawaiian Electric and its subsidiaries’ operating revenues include amounts for various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the period the related revenues are recognized. However, Hawaiian Electric and its subsidiaries’ revenue tax payments to the taxing authorities in the period are based on the prior year’s billed revenues (in the case of public service company taxes and PUC fees) or on the current year’s cash collections from electric sales (in the case of franchise taxes). For the nine months ended September 30, 2013 and 2012, Hawaiian Electric and its subsidiaries included approximately $198 million and $212 million, respectively, of revenue taxes in “operating revenues” and in “taxes, other than income taxes” expense. | |
Out-of-period income tax benefit. In the third quarter of 2013, the Utilities recorded a $2.7 million out-of-period income tax benefit, resulting from the reversal of deferred tax liabilities due to errors in the amount of book over tax basis differences in plant and equipment. Management concluded that this out-of-period adjustment was not material to either the current or any prior period financial statements. | |
Recent tax developments. In September 2013, the Internal Revenue Service (IRS) issued final regulations addressing the acquisition, production and improvement of tangible property, which are effective January 1, 2014. Management is currently evaluating the impact of these new regulations, but does not expect a material impact on the Utilities since specific guidance on network (i.e., transmission and distribution) assets and generation property has already been received. The IRS also proposed regulations addressing the disposition of property. | |
The Utilities adopted the safe harbor guidelines with respect to network assets in 2011 and the IRS recently released a revenue procedure relating to deductions for repairs of generation property, which provides some guidance (that is elective) for taxpayers that own steam or electric generation property. This guidance defines the relevant components of generation property to be used in determining whether such component expenditures should be deducted as repairs or capitalized and depreciated by taxpayers. The revenue procedure also provides an extrapolation methodology that could be used by taxpayers in determining deductions for prior years’ repairs without going back to the specific documentation of those years. The guidance does not provide specific methods for determining the repairs amount. Management is evaluating the costs and benefits of adopting this guidance, in order to determine whether and when an election should be made. |
Retirement_benefits_HECO
Retirement benefits - HECO | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Retirement benefits | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | |||||||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2013, the Company contributed $62 million (primarily by the Utilities) to its pension and other postretirement benefit plans, compared to $64 million (primarily by the Utilities) in the first nine months of 2012. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2013 is $83 million ($81 million by the Utilities, $2 million by HEI and nil by ASB), compared to $78 million ($63 million by the Utilities, $2 million by HEI and $13 million by ASB) in 2012. In addition, the Company expects to pay directly $2 million ($1 million each by the Utilities and HEI) of benefits in 2013, compared to $1 million paid in 2012. | |||||||||||||||||||||||||||||||||
On July 6, 2012, President Obama signed the Moving Ahead for Progress in the 21st Century Act (MAP-21), which included provisions related to the funding and administration of pension plans. This law does not affect the Company’s accounting for pension benefits; therefore, the net periodic benefit costs disclosed for the plans were not affected. The Company elected to apply MAP-21 for 2012, which improved the plans’ Adjusted Funding Target Attainment Percentage (AFTAP) for funding and benefit distribution purposes and thereby reduced the 2012 minimum funding requirement and lifted the restrictions on accelerated distribution options (which restrictions were in effect from April 1, 2011 to September 30, 2012) for HEI and Hawaiian Electric and its subsidiaries. The effects of MAP-21 are expected to cause the minimum required funding under the Employee Retirement Income Security Act of 1974, as amended (ERISA) to be less than the net periodic cost for 2013 and 2014; therefore, to satisfy the requirements of the Utilities pension and other postretirement benefits (OPEB) tracking mechanisms, the Utilities expect to contribute the net periodic cost for these years. | |||||||||||||||||||||||||||||||||
The Pension Protection Act provides that if a pension plan’s funded status falls below certain levels, more conservative assumptions must be used to value obligations under the pension plan. The HEI Retirement Plan fell below these thresholds in 2011 and the minimum required contribution for 2012 incorporated the more conservative assumptions required. However, the HEI Retirement Plan met the threshold requirements in each of 2012 and 2013 so that the more conservative assumptions do not apply for either the 2013 or 2014 valuation of plan liabilities for purposes of calculating the minimum required contribution. Other factors could cause changes to the required contribution levels. | |||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for consolidated HEI were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 14,097 | $ | 10,816 | $ | 1,077 | $ | 1,054 | $ | 42,307 | $ | 32,404 | $ | 3,229 | $ | 3,158 | |||||||||||||||||
Interest cost | 16,187 | 16,868 | 1,891 | 2,252 | 48,600 | 50,612 | 5,677 | 6,756 | |||||||||||||||||||||||||
Expected return on plan assets | (18,134 | ) | (17,796 | ) | (2,531 | ) | (2,579 | ) | (54,401 | ) | (53,388 | ) | (7,614 | ) | (7,757 | ) | |||||||||||||||||
Amortization of net transition obligation | — | 1 | — | — | — | 1 | — | — | |||||||||||||||||||||||||
Amortization of net prior service gain | (24 | ) | (81 | ) | (448 | ) | (448 | ) | (73 | ) | (244 | ) | (1,345 | ) | (1,345 | ) | |||||||||||||||||
Amortization of net actuarial loss | 9,560 | 6,425 | 398 | 373 | 28,878 | 19,251 | 1,203 | 1,125 | |||||||||||||||||||||||||
Net periodic benefit cost | 21,686 | 16,233 | 387 | 652 | 65,311 | 48,636 | 1,150 | 1,937 | |||||||||||||||||||||||||
Impact of PUC D&Os | (9,257 | ) | (3,460 | ) | (332 | ) | (552 | ) | (28,847 | ) | (12,294 | ) | (1,018 | ) | (1,648 | ) | |||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 12,429 | $ | 12,773 | $ | 55 | $ | 100 | $ | 36,464 | $ | 36,342 | $ | 132 | $ | 289 | |||||||||||||||||
Consolidated HEI recorded retirement benefits expense of $24 million and $27 million in the first nine months of 2013 and 2012, respectively, and charged the remaining amounts primarily to electric utility plant. | |||||||||||||||||||||||||||||||||
The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the respective utility’s next rate case. | |||||||||||||||||||||||||||||||||
Defined contribution plans information. For the first nine months of 2013 and 2012, the Company’s expense for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan was $3.1 million and $2.7 million, respectively, and cash contributions were $3.7 million and $3.2 million, respectively. | |||||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | |||||||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2013, Hawaiian Electric and its subsidiaries contributed $61 million to their pension and other postretirement benefit plans, compared to $62 million in the first nine months of 2012. Hawaiian Electric and its subsidiaries’ current estimate of contributions to their pension and other postretirement benefit plans in 2013 is $81 million, compared to $63 million in 2012. In addition, Hawaiian Electric and its subsidiaries expect to pay directly $1.0 million of benefits in 2013, compared to $0.5 million paid in 2012. | |||||||||||||||||||||||||||||||||
On July 6, 2012, President Obama signed the MAP-21, which included provisions related to the funding and administration of pension plans. This law does not affect the Utilities’ accounting for pension benefits; therefore, the net periodic benefit costs disclosed for the plans were not affected. The Utilities elected to apply MAP-21 for 2012, which improved the plan’s AFTAP for funding and benefit distribution purposes and thereby reduced the 2012 minimum funding requirement and lifted the restrictions on accelerated distribution options (which restrictions were in effect from April 1, 2011 to September 30, 2012) for Hawaiian Electric and its subsidiaries. The effects of MAP-21 are expected to cause the minimum required funding under ERISA to be less than the net periodic cost for 2013 and 2014; therefore, to satisfy the requirements of the pension and OPEB tracking mechanisms, the Utilities expect to contribute the net periodic cost for these years. | |||||||||||||||||||||||||||||||||
The Pension Protection Act provides that if a pension plan’s funded status falls below certain levels, more conservative assumptions must be used to value obligations under the pension plan. The HEI Retirement Plan fell below these thresholds in 2011 and the minimum required contribution for 2012 incorporated the more conservative assumptions required. However, the HEI Retirement Plan met the threshold requirements in each of 2012 and 2013 so that the more conservative assumptions do not apply for either the 2013 or 2014 valuation of plan liabilities for purposes of calculating the minimum required contribution. Other factors could cause changes to the required contribution levels. | |||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for the Utilities were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 13,620 | $ | 10,400 | $ | 1,041 | $ | 1,003 | $ | 40,861 | $ | 31,202 | $ | 3,122 | $ | 3,010 | |||||||||||||||||
Interest cost | 14,780 | 15,364 | 1,822 | 2,175 | 44,339 | 46,090 | 5,466 | 6,527 | |||||||||||||||||||||||||
Expected return on plan assets | (16,138 | ) | (16,001 | ) | (2,502 | ) | (2,548 | ) | (48,413 | ) | (48,003 | ) | (7,502 | ) | (7,646 | ) | |||||||||||||||||
Amortization of net transition obligation | — | — | — | (2 | ) | — | — | — | (6 | ) | |||||||||||||||||||||||
Amortization of net prior service gain | (116 | ) | (173 | ) | (451 | ) | (450 | ) | (348 | ) | (517 | ) | (1,353 | ) | (1,352 | ) | |||||||||||||||||
Amortization of net actuarial loss | 8,649 | 5,857 | 387 | 363 | 25,948 | 17,571 | 1,159 | 1,091 | |||||||||||||||||||||||||
Net periodic benefit cost | 20,795 | 15,447 | 297 | 541 | 62,387 | 46,343 | 892 | 1,624 | |||||||||||||||||||||||||
Impact of PUC D&Os | (9,257 | ) | (3,460 | ) | (332 | ) | (552 | ) | (28,847 | ) | (12,294 | ) | (1,018 | ) | (1,648 | ) | |||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 11,538 | $ | 11,987 | $ | (35 | ) | $ | (11 | ) | $ | 33,540 | $ | 34,049 | $ | (126 | ) | $ | (24 | ) | |||||||||||||
Hawaiian Electric and its subsidiaries recorded retirement benefits expense of $21 million and $24 million in the first nine months of 2013 and 2012, respectively. The electric utilities charged a portion of the net periodic benefit cost to electric utility plant. | |||||||||||||||||||||||||||||||||
The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the respective utility’s next rate case. | |||||||||||||||||||||||||||||||||
Accumulated other comprehensive income. Reclassifications out of AOCI were as follows: | |||||||||||||||||||||||||||||||||
Amount reclassified from AOCI | |||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Retirement benefit plan items | |||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 5,173 | $ | 3,419 | $ | 15,520 | $ | 10,255 | See above | ||||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (5,156 | ) | (3,342 | ) | (15,468 | ) | (10,026 | ) | See above | ||||||||||||||||||||||||
Total reclassifications | $ | 17 | $ | 77 | $ | 52 | $ | 229 | |||||||||||||||||||||||||
Defined contribution plan information. For the first nine months of 2013 and 2012, the Utilities’ expense for its defined contribution pension plan was $0.4 million and 0.2 million, respectively. |
Commitments_and_contingencies_
Commitments and contingencies - HECO | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments and contingencies | ' | ||||||||
Commitments and contingencies | |||||||||
See Note 4, “Bank subsidiary,” above and Note 5, “Commitments and contingencies,” of Hawaiian Electric’s “Notes to Consolidated Financial Statements,” below. | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||
Commitments and contingencies | ' | ||||||||
Commitments and contingencies | |||||||||
Utility projects. Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits can result in significantly increased project costs or even cancellation of projects. Further, completion of projects is subject to various risks, such as problems or disputes with vendors. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income. | |||||||||
In May 2011, the PUC ordered independently conducted regulatory audits on the reasonableness of costs incurred for Hawaiian Electric’s East Oahu Transmission Project (EOTP), Campbell Industrial Park (CIP) combustion turbine No. 1 (CT-1) project, and Customer Information System (CIS) project. However, in March 2012, the PUC eliminated the requirement for a regulatory audit for the EOTP Phase I in connection with an approved settlement of the EOTP Phase I project cost issues and, in March 2013, the PUC eliminated the requirement for an audit of the CIP CT-1 and CIS project costs as described below. | |||||||||
On January 28, 2013, Hawaiian Electric and its subsidiaries and the Consumer Advocate, signed a settlement agreement (2013 Agreement), subject to PUC approval, to write-off $40 million of costs in lieu of conducting the regulatory audits of the CIP CT-1 project and the CIS project. Based on the 2013 Agreement, as of December 31, 2012, the Utilities recorded an after-tax charge to net income of approximately $24 million—$17.1 million for Hawaiian Electric, $3.4 million for Hawaii Electric Light, and $3.2 million for Maui Electric. The remaining recoverable costs of $52 million were included in rate base as of December 31, 2012. | |||||||||
As part of the 2013 Agreement, Hawaii Electric Light would withdraw its 2013 test year rate case, and delay filing a new rate case until a 2016 test year. Additionally, Hawaiian Electric would delay the filing of its scheduled 2014 test year rate case to no earlier than January 2, 2014. For both utilities, the existing terms of the last rate case decisions would continue. Hawaiian Electric would also be allowed to record Revenue Adjustment Mechanism (RAM) revenues starting on January 1 of 2014, 2015 and 2016. The cash collection of RAM revenues would remain unchanged, starting June 1 of each year through May 31 of the following year. | |||||||||
On March 19, 2013, the PUC issued a decision and order (2013 D&O) approving the 2013 Agreement, with the following clarifications, none of which changed the financial impact recorded as of December 31, 2012: (1) the PUC reiterated its authority to examine and ascertain what post go-live CIS costs would be subject to regulatory review in future rate cases; (2) the PUC discouraged requesting single issue cost deferral accounting and/or cost recovery mechanisms during the period of rate case deferral by Hawaiian Electric and Hawaii Electric Light; (3) the PUC approved the agreed-upon recovery of CIP CT-1 and CIS project costs through the RAM, as set forth in the 2013 Agreement, however not setting a precedent for future projects; and (4) the PUC reaffirmed its right to rule on the substance of the Maui Electric 2012 test year rate case in its ongoing rate case proceeding. On May 31, 2013, the PUC issued a final D&O in the Maui Electric 2012 test year rate case. See “Maui Electric 2012 test year rate case” below. | |||||||||
Renewable energy projects. Hawaiian Electric and its subsidiaries are committed to achieving or exceeding the State’s Renewable Portfolio Standard (RPS) goal of 40% renewable energy by 2030 and to meeting their commitments relating to decreasing the State’s dependence on imported fossil fuels under their 2008 Energy Agreement with the Governor, the State Department of Business, Economic Development and Tourism and the Consumer Advocate (Energy Agreement). The Utilities continue to evaluate and pursue opportunities with developers of proposed projects to integrate power into its grid from a variety of renewable energy sources, including solar, biomass, wind, ocean thermal energy conversion, wave, geothermal and others. In December 2009, the PUC allowed Hawaiian Electric to defer the costs of studies for the large wind project for later review of prudence and reasonableness. In April 2013, the PUC approved the recovery of $3.9 million in costs for stage 1 studies for the large wind project over a three-year period, with carrying costs to be accrued over the recovery period at the rate of 1.75% per annum, through the Renewable Energy Infrastructure Program (REIP) Surcharge. | |||||||||
In November 2011, Hawaiian Electric and Maui Electric filed their application to seek PUC approval to defer for later recovery approximately $555,000 (split evenly between Hawaiian Electric and Maui Electric) also through the REIP surcharge for additional studies to determine the value proposition of interconnecting the islands of Oahu and of Maui County (Maui, Lanai, and Molokai) and if doing so would be operationally beneficial and cost-effective. In August 2012, the PUC allowed Hawaiian Electric and Maui Electric to defer the outside service costs for the additional studies for later review of prudence and reasonableness. The specific amount to be recovered, as well as the recovery mechanism and the terms of the recovery mechanism, were to be determined at a later date. | |||||||||
A revised draft Request for Proposals (RFP) for 200 MW or more of renewable energy to be delivered to Oahu from any of the Hawaiian Islands was posted on Hawaiian Electric’s website prior to the issuance of a proposed final RFP. In February 2012, the PUC granted Hawaiian Electric’s request for deferred accounting treatment for the inter-island project support costs. The amount of the deferred costs was limited to $5.89 million. On July 11, 2013, the PUC issued orders related to the 200 MW RFP. First, it issued an order that Hawaiian Electric shall amend its current draft of the Oahu 200 MW RFP to remove references to the Lanai Wind Project, eliminate solicitations for an undersea transmission cable, and amend the draft RFP to reflect other guidance provided in the order. Second, it initiated an investigative proceeding to review the progress of the Lanai Wind Project stating that there was an uncertainty whether the project developer retained an equivalent ability to develop the project as when it submitted its bid in 2008 and its term sheet in 2011. The PUC also stated that it will review the PPA (if one is completed) and, as part of that process, determine whether the Lanai Wind Project should be developed taking into account potential as-available renewable energy projects and grid infrastructure options. The PUC stated it intends to evaluate the project as a combined resources proposal (i.e., wind project and generation tie transmission cable between the islands of Oahu and Lanai). Third, it initiated a proceeding to solicit information and evaluate whether an interisland grid interconnection transmission system between the islands of Oahu and Maui is in the public interest, given the potential for large-scale wind and solar projects on Maui. | |||||||||
In May 2012, the PUC instituted a proceeding for a competitive bidding process for up to 50 MW of firm renewable geothermal dispatchable energy (Geothermal RFP) on the island of Hawaii, and in July 2012, Hawaii Electric Light filed an application to defer 2012 costs related to the Geothermal RFP. In February 2013, Hawaii Electric Light issued the Final Geothermal RFP. Six bids were received in April 2013 and are being evaluated. | |||||||||
In June 2013, Hawaiian Electric filed an application to seek PUC approval of Waivers from the Framework for Competitive Bidding for five projects (4 photovoltaic and 1 wind) selected as part of Hawaiian Electric’s “Invitation for Low Cost Renewable Energy Projects on Oahu through Request for Waiver from Competitive Bidding. ” In November 2013, Hawaiian Electric filed a second waiver application requesting the PUC approval for six additional projects (6 photovoltaic) selected as part of Hawaiian Electric pricing refresh opportunity provided to developers that originally submitted proposals in response to the “Invitation for Low Cost Renewable Energy Projects on Oahu through Request for Waiver from Competitive Bidding.” In November 2013, Hawaiian Electric notified the PUC that two of the projects in the first application asked that their proposals be withdrawn. | |||||||||
Environmental regulation. Hawaiian Electric and its subsidiaries are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances. In recent years, legislative, regulatory and governmental activities related to the environment, including proposals and rulemaking under the Clean Air Act (CAA) and Clean Water Act (CWA), have increased significantly and management anticipates that such activity will continue. | |||||||||
On April 20, 2011, the Federal Register published the federal Environmental Protection Agency’s (EPA’s) proposed regulations required by section 316(b) of the CWA designed to protect aquatic organisms from adverse impacts associated with existing power plant cooling water intake structures. The proposed regulations would apply to the cooling water systems for the steam generating units at Hawaiian Electric’s power plants on the island of Oahu. If adopted as proposed, management believes the proposed regulations would require significant capital and annual other operation and maintenance (O&M) expenditures. On June 11, 2012, the EPA published additional information on the section 316(b) rule making that indicates that the EPA is considering establishing lower cost compliance alternatives in the final rule. The EPA has delayed issuance of the final section 316(b) rule until November 2013. | |||||||||
On February 16, 2012, the Federal Register published the EPA’s final rule establishing the EPA’s National Emission Standards for Hazardous Air Pollutants for fossil fuel-fired steam electrical generating units (EGUs). The final rule, known as the Mercury and Air Toxics Standards (MATS), applies to the 14 EGUs at Hawaiian Electric’s power plants. MATS establishes the Maximum Achievable Control Technology standards for the control of hazardous air pollutants emissions from new and existing EGUs. Based on a review of the final rule and the benefits and costs of alternative compliance strategies, Hawaiian Electric has selected a MATS compliance strategy based on switching to lower emission fuels. The use of lower emission fuels will provide for MATS compliance at lower overall costs and avoid the reduction in operational flexibility imposed by emissions control equipment. As provided in the MATS regulations, Hawaiian Electric will be requesting a one-year extension resulting in a MATS compliance date of April 16, 2016. Hawaiian Electric also has pending with the EPA a Petition for Reconsideration and Stay dated April 16, 2012, and a Request for Expedited Consideration dated August 14, 2013. The submittals ask the EPA to revise an emissions standard for non-continental oil-fired EGUs on the grounds that the promulgated standard was incorrectly derived. The Petition and Request submittals to the EPA included additional data to demonstrate that the existing standard is erroneous. Hawaiian Electric has been in contact with the EPA regarding the status of its Petition and does not expect a decision before mid-2014. On February 6, 2013, the EPA issued a guidance document titled “Next Steps for Area Designations and Implementation of the Sulfur Dioxide National Ambient Air Quality Standard,” which outlines a process that will provide the states additional flexibility and time for their development of one-hour sulfur dioxide NAAQS implementation plans. Hawaiian Electric will work with the DOH and the EPA in the rulemaking process for these implementation plans to ensure development of cost-effective strategies for NAAQS compliance. Based on the February 6, 2013 EPA guidance document, current estimates of the compliance date for the one-hour sulfur dioxide NAAQS is in the 2022 or later timeframe. | |||||||||
Depending upon the final outcome of the CWA 316(b) regulations, the specific measures required for MATS compliance, and the rules and guidance developed for implementation of more stringent National Ambient Air Quality Standards, Hawaiian Electric and its subsidiaries may be required to incur material capital expenditures and other compliance costs, but such amounts are not determinable at this time. Additionally, the combined effects of these regulatory initiatives may result in a decision to retire or deactivate certain generating units earlier than anticipated. | |||||||||
Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically experience petroleum or other chemical releases into the environment associated with current operations and report and take action on these releases when and as required by applicable law and regulations. Hawaiian Electric and its subsidiaries believe the costs of responding to such releases identified to date will not have a material adverse effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity. | |||||||||
Potential Clean Air Act Enforcement. On July 1, 2013, Hawaii Electric Light and Maui Electric received a letter from the U.S. Department of Justice (DOJ) asserting potential violations of the Prevention of Significant Deterioration (PSD) and Title V requirements of the Clean Air Act involving the Hill and Kahului Power Plants. The EPA referred the matter to the DOJ for enforcement based on Hawaii Electric Light’s and Maui Electric’s responses to information requests in 2010 and 2012. The letter expresses an interest in resolving the matter without the issuance of a notice of violation, and invites Hawaii Electric Light and Maui Electric to engage in settlement negotiations. Hawaii Electric Light and Maui Electric are in contact with the DOJ to seek additional information and to make arrangements for settlement discussions. Hawaii Electric Light and Maui Electric cannot currently estimate the amount or effect of a settlement, if any. Hawaii Electric Light and Maui Electric continue to investigate the potential bases for the DOJ’s claims, and have not yet identified at this time any projects or work relating to the information requests that may have been noncompliant with PSD or Title V requirements. | |||||||||
Former Molokai Electric Company generation site. In 1989, Maui Electric acquired by merger Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The EPA has since performed Brownfield assessments of the Site that identified environmental impacts in the subsurface. Although Maui Electric never operated at the Site and operations there had stopped four years before the merger, in discussions with the EPA and the DOH, Maui Electric agreed to undertake additional investigations at the Site and an adjacent parcel that Molokai Electric Company had used for equipment storage (the Adjacent Parcel) to determine the extent of impacts of subsurface contaminants. A 2011 assessment by a Maui Electric contractor of the Adjacent Parcel identified environmental impacts, including elevated polychlorinated biphenyls (PCBs) in the subsurface soils. In cooperation with the DOH and EPA, Maui Electric is further investigating the Site and the Adjacent Parcel to determine the extent of impacts of PCBs, fuel oils, and other subsurface contaminants. In March 2012, Maui Electric accrued an additional $3.1 million (reserve balance of $3.6 million as of September 30, 2013) for the additional investigation and estimated cleanup costs at the Site and the Adjacent Parcel; however, final costs of remediation will depend on the results of continued investigation. Maui Electric received DOH comments on a revised draft site investigation plan for site characterization in October 2013 and will revise the plan accordingly. | |||||||||
Global climate change and greenhouse gas emissions reduction. National and international concern about climate change and the contribution of GHG emissions (including carbon dioxide emissions from the combustion of fossil fuels) to global warming have led to action by the State and to federal legislative and regulatory proposals to reduce GHG emissions. | |||||||||
In July 2007, Act 234, which requires a statewide reduction of GHG emissions by January 1, 2020 to levels at or below the statewide GHG emission levels in 1990, became law in Hawaii. The electric utilities participated in a Task Force established under Act 234, which was charged with developing a work plan and regulatory approach to reduce GHG emissions, as well as in initiatives aimed at reducing their GHG emissions, such as those being implemented under the Energy Agreement. On October 19, 2012, the DOH posted the proposed regulations required by Act 234 for public hearing and comment. In general, the proposed regulations would require affected sources that have the potential to emit GHGs in excess of established thresholds to reduce GHG emissions by 25% below 2010 emission levels by 2020. The proposed regulations also assess affected sources an annual fee based on tons per year of GHG emissions, beginning with emissions in calendar year 2012. The proposed DOH GHG rule also tracks the federal “Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule” (GHG Tailoring Rule, see below) and would create new thresholds for GHG emissions from new and existing stationary source facilities. Hawaiian Electric submitted comments on the proposed regulations in January 2013. In October 2013, the DOH announced that it intends to issue a final rule that would change the required emission reduction from 25% to 16% and delay the accrual of GHG emissions fees until after the rule is promulgated, among other changes, but the final rule has not yet been formally approved or released. Hawaiian Electric continues to monitor this rulemaking proceeding and will participate in the further development of the regulations. | |||||||||
Several approaches (e.g., “cap and trade”) to GHG emission reduction have been either introduced or discussed in the U.S. Congress; however, no federal legislation has yet been enacted. | |||||||||
On September 22, 2009, the EPA issued its Final Mandatory Reporting of Greenhouse Gases Rule, which requires that sources emitting GHGs above certain threshold levels monitor and report GHG emissions. The Utilities have submitted the required reports for 2010, 2011 and 2012 to the EPA. In December 2009, the EPA made the finding that motor vehicle GHG emissions endanger public health or welfare. Since then, the EPA has also issued rules that begin to address GHG emissions from stationary sources, like the Utilities’ EGUs. | |||||||||
In June 2010, the EPA issued its GHG Tailoring Rule. Effective January 2, 2011, under the Prevention of Significant Deterioration program, permitting of new or modified stationary sources that have the potential to emit GHGs in greater quantities than the thresholds in the GHG Tailoring Rule will entail GHG emissions evaluation, analysis and, potentially, control requirements. On March 27, 2012, the Federal Register published the EPA’s proposed New Source Performance Standard regulating carbon dioxide emissions from affected new fossil fuel-fired generating units. On June 25, 2013, President Obama directed the EPA Administrator to issue a new proposal no later than September 20, 2013. In addition, the President directed the Administrator to issue proposed standards, regulations, or guidelines for GHG emissions from existing power plants by no later than June 1, 2014, and final standards no later than June 1, 2015. On September 20, 2013, the EPA issued a pre-publication version of its new proposal for New Source Performance Standards for GHG from new generating units. This proposed rule on GHG from new EGUs does not apply to oil-fired combustion turbines or diesel engine generators, and is not otherwise expected to have significant impacts on the Utilities. Hawaiian Electric will participate in the federal GHG rulemaking process and support these exclusions for both new and existing sources. The Utilities will continue to evaluate the impact of proposed GHG rules and regulations as they develop. Final regulations may impose significant compliance costs, and may require reductions in fossil fuel use and the addition of renewable energy resources in excess of the RPS law. | |||||||||
While the timing, extent and ultimate effects of climate change cannot be determined with any certainty, climate change is predicted to result in sea level rise, which could potentially impact coastal and other low-lying areas (where much of the Utilities’ electric infrastructure is sited), and could cause erosion of beaches, saltwater intrusion into aquifers and surface ecosystems, higher water tables and increased flooding and storm damage due to heavy rainfall. The effects of climate change on the weather (for example, floods or hurricanes), sea levels, and water availability and quality have the potential to materially adversely affect the results of operations, financial condition and liquidity of the electric utilities. For example, severe weather could cause significant harm to the electric utilities’ physical facilities. | |||||||||
Hawaiian Electric and its subsidiaries have taken, and continue to identify opportunities to take, direct action to reduce GHG emissions from their operations, including, but not limited to, supporting DSM programs that foster energy efficiency, using renewable resources for energy production and purchasing power from IPPs generated by renewable resources, burning renewable biodiesel in Hawaiian Electric’s CIP CT-1, using biodiesel for startup and shutdown of selected Maui Electric generating units, and testing biofuel blends in other Hawaiian Electric and Maui Electric generating units. The Utilities are also working with the State of Hawaii and other entities to pursue the use of liquefied natural gas as a cleaner and lower cost fuel to replace, at least in part, the petroleum oil that would otherwise be used. Management is unable to evaluate the ultimate impact on the Utilities’ operations of eventual comprehensive GHG regulation. However, management believes that the various initiatives it is undertaking will provide a sound basis for managing the electric utilities’ carbon footprint and meeting GHG reduction goals that will ultimately emerge. | |||||||||
Maui Electric 2012 test year rate case. On May 31, 2013, the PUC issued a final D&O in the Maui Electric 2012 test year rate case. Final rates became effective August 1, 2013. The final D&O approved an increase in annual revenues of $5.3 million, which is $7.8 million less than the interim increase that had been in effect since June 1, 2012. Reductions from the interim D&O relate primarily to: | |||||||||
(in millions) | |||||||||
Lower ROACE | $ | 4 | |||||||
Customer Information System expenses | 0.3 | ||||||||
Pension and OPEB expense based on 3-year average | 1.5 | ||||||||
Integrated resource planning expenses | 0.9 | ||||||||
Operational and Renewable Energy Integration study costs | 1.1 | ||||||||
Total adjustment | $ | 7.8 | |||||||
According to the PUC, the reduction in the allowed ROACE from the stipulated 10% to the final approved 9% is composed of 0.5% allocation due to updated economic and financial market conditions manifested in lower interest rates in the 2012 test year and 0.5% for system inefficiencies reflected in over curtailment of renewable energy produced by independent power producers. | |||||||||
The PUC found that the record did not sufficiently support the normalization of 2013 and 2014 Customer Information System costs into the 2012 test year and ordered a downward adjustment to remove these costs from the test year. | |||||||||
The reduction in the pension and OPEB expense is due to applying a 3-year average in the calculation of pension costs for the purpose of the 2012 test year. This is not a PUC decision to change the pension and OPEB tracking mechanisms, although the PUC emphasizes the need to evaluate alternatives to decrease or limit the growth in employee benefits costs. | |||||||||
The PUC removed integrated resource planning (IRP) expenses from the test year as it could not determine whether these expenses have been reasonably incurred for the 2012 test year as required by the PUC’s IRP Framework and stated that it will determine the appropriate level and method of cost recovery for Maui Electric’s IRP expenses in the pending IRP proceeding. | |||||||||
The PUC reduced operational and renewable energy integration study costs because of the uncertainty regarding the scope of work and actual costs of these studies. | |||||||||
The PUC also continued Maui Electric’s existing energy cost adjustment clause (ECAC) and power purchase adjustment clause (PPAC) design. The PUC stated that it will consider Hawaiian Electric, Hawaii Electric Light and Maui Electric’s future actions to reduce fuel costs and increase use of renewable energy as it continues to review the design of the ECAC in the future. | |||||||||
On June 12, 2013, Maui Electric filed a motion for partial reconsideration and partial clarification of the final D&O in the Maui Electric 2012 test year rate case. The motion primarily requested reconsideration of the findings and conclusions concerning Maui Electric’s 9% ROACE for the test year and also addressed other matters identified in the D&O, including treatment of IRP costs pending PUC determinations on such costs in a separate IRP proceeding. Maui Electric requested a panel evidentiary hearing on ROACE, curtailment and technical studies, and pension expense. Maui Electric also requested to partially stay the implementation of the final D&O, pending the presentation at the evidentiary hearing on its motion for partial reconsideration of the final D&O related to the ROACE reduction from 10.0% to 9.0% and the PUC’s final decision following the hearing. On July 2, 2013, the PUC issued an order denying Maui Electric’s requests for an evidentiary hearing and for partial reconsideration, and dismissed Maui Electric’s motion for partial stay. The order granted Maui Electric’s motion for partial clarification to allow Maui Electric to defer IRP costs incurred since June 2012, which through September 30, 2013 totaled approximately $0.8 million, until the level of costs are determined and a method of recovery is decided in the IRP proceeding. | |||||||||
Since the final rate increase was lower than the interim increase previously in effect, Maui Electric recorded a charge, net of revenue taxes, of $7.6 million in the second quarter and refunded to customers approximately $9.7 million (which includes interest accrued since June 1, 2012) between September 2013 and early November 2013. As a result of the D&O, in the second quarter of 2013 Maui Electric also recorded adjustments to reduce expenses by reducing employee benefits expenses by $1.8 million for adjustments to pension and OPEB costs, and to reclassify $0.7 million of IRP costs to deferred accounts. | |||||||||
As directed by the PUC, in June 2013 Maui Electric made its curtailment information available to the public on its website and in July 2013 filed documentation regarding the re-setting of its target heat rates to take into account the operation of the Auwahi wind farm. | |||||||||
In addition, as required by the final D&O, Maui Electric filed in September 2013 a System Improvement and Curtailment Reduction Plan, which identified actions that Maui Electric had already implemented to increase the use of wind energy and further actions that it is committed to implement to benefit customers. In separate filings in October 2013, Maui Electric submitted additional information on the re-setting of its target heat rates and metrics to measure the success of its efforts to reduce or limit curtailment and execute on key actions. Maui Electric also proposed to make a new target heat rate reset filing in December 2013 based on the System Improvement and Curtailment Plan to be effective in May 2014. Management cannot predict any actions by the PUC as a result of these filings. | |||||||||
Asset retirement obligations. Asset retirement obligations (AROs) represent legal obligations associated with the retirement of certain tangible long-lived assets, are measured as the present value of the projected costs for the future retirement of specific assets and are recognized in the period in which the liability is incurred if a reasonable estimate of fair value can be made. Hawaiian Electric and its subsidiaries’ recognition of AROs have no impact on their earnings. The cost of the AROs is recovered over the life of the asset through depreciation. AROs recognized by Hawaiian Electric and its subsidiaries relate to obligations to retire plant and equipment, including removal of asbestos and other hazardous materials. | |||||||||
Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: | |||||||||
Nine months ended September 30 | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Balance, beginning of period | $ | 48,431 | $ | 50,871 | |||||
Accretion expense | 833 | 1,233 | |||||||
Liabilities incurred | — | — | |||||||
Liabilities settled | (1,165 | ) | (2,788 | ) | |||||
Revisions in estimated cash flows | (916 | ) | — | ||||||
Balance, end of period | $ | 47,183 | $ | 49,316 | |||||
Cash_flows_HECO
Cash flows - HECO | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Cash flows | ' | ||||||||
Cash flows | |||||||||
Nine months ended September 30 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
Interest paid to non-affiliates | $ | 62 | $ | 61 | |||||
Income taxes paid | 2 | — | |||||||
Supplemental disclosures of noncash activities | |||||||||
Common stock dividends reinvested in HEI common stock (1) | 18 | 18 | |||||||
Increases in common stock related to director and officer compensatory plans | 3 | 5 | |||||||
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 | |||||||
Real estate acquired in settlement of loans | 4 | 7 | |||||||
Loans transferred from held-for-investment to held-for-sale | 25 | — | |||||||
___________________________________________ | |||||||||
(1) The amounts shown represent common stock dividends reinvested in HEI common stock under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) in noncash transactions. | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||
Cash flows | ' | ||||||||
Cash flows | |||||||||
Nine months ended September 30 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
Interest paid | $ | 43 | $ | 40 | |||||
Income taxes paid/(refunded) | (26 | ) | 2 | ||||||
Supplemental disclosures of noncash activities | |||||||||
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 | |||||||
Fair_value_measurements_HECO
Fair value measurements - HECO | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair value measurements | ' | ||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
Fair value estimates are based on the price that would be received to sell an asset, or paid upon the transfer of a liability, in an orderly transaction between market participants at the measurement date. The fair value estimates are generally determined based on assumptions that market participants would use in pricing the asset or liability and are based on market data obtained from independent sources. However, in certain cases, the Company uses its own assumptions about market participant assumptions based on the best information available in the circumstances. These valuations are estimates at a specific point in time, based on relevant market information, information about the financial instrument and judgments regarding future expected loss experience, economic conditions, risk characteristics of various financial instruments and other factors. These estimates do not reflect any premium or discount that could result if the Company were to sell its entire holdings of a particular financial instrument at one time. Because no active trading market exists for a portion of the Company’s financial instruments, fair value estimates cannot be determined with precision. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses could have a significant effect on fair value estimates, but have not been considered in making such estimates. | |||||||||||||||||||||
The Company groups its financial assets measured at fair value in three levels outlined as follows: | |||||||||||||||||||||
Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. | |||||||||||||||||||||
Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. | |||||||||||||||||||||
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||||||||||
The Company used the following methods and assumptions to estimate the fair value of each applicable class of financial instruments for which it is practicable to estimate that value: | |||||||||||||||||||||
Short term borrowings—other than bank. The carrying amount approximated fair value because of the short maturity of these instruments. | |||||||||||||||||||||
Investment and mortgage-related securities. To determine the fair value of investment securities held in ASB’s available-for-sale portfolio, independent third-party vendor or broker pricing is used on an unadjusted basis. Prices for investments and mortgage-related securities are based on observable inputs, including historical trading levels or sector yields, using market-based valuation techniques. The third party pricing service uses applications, models and pricing matrices that correlate security prices to benchmark securities which are adjusted for various inputs. Inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark security bids and offers, TBA (to be announced) prices, monthly payment information, and reference data including market research. The pricing service may prioritize inputs differently on any given day for any security, and not all inputs are available for use in the evaluation process on any given day or for each security. The pricing vendor corroborates its finding on an on-going basis by monitoring market activity and events. | |||||||||||||||||||||
Third party pricing services provide security prices in good faith using rigorous methodologies; however, they do not warrant or guarantee the adequacy or accuracy of their information. Therefore, ASB utilizes a separate third party pricing vendor to corroborate security pricing of the first pricing vendor. If the pricing differential between the two pricing sources exceeds an established threshold, a pricing inquiry will be sent to both vendors or to an independent broker to determine a price that can be supported based on observable inputs found in the market. Such challenges to pricing are required infrequently and are generally resolved using additional security-specific information that was not available to a specific vendor. | |||||||||||||||||||||
Loans receivable. The estimated fair value of loans receivable is determined based on characteristics such as loan category, repricing features and remaining maturity, and includes prepayment estimates. | |||||||||||||||||||||
For residential real estate loans, fair values were estimated by discounting estimated cash flows using discount rates based on current industry pricing for loans with similar contractual characteristics and remaining maturity. | |||||||||||||||||||||
For other types of loans, fair values were estimated by discounting contractual cash flows using discount rates that reflect current industry pricing for loans with similar characteristics and remaining maturity. Where industry pricing is not available, discount rates are based on ASB’s current pricing for loans with similar characteristics and remaining maturity. | |||||||||||||||||||||
The fair value of all loans was adjusted to reflect current assessments of loan collectability. Also see “Fair value measurements on a nonrecurring basis” below. | |||||||||||||||||||||
Deposit liabilities. The fair value of savings, negotiable orders of withdrawal, demand and money market deposits was the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||
Other bank borrowings. Fair value was estimated by discounting the future cash flows using the current rates available for borrowings with similar credit terms and remaining maturities. | |||||||||||||||||||||
Long-term debt. Fair value was obtained from third-party financial services providers based on the current rates offered for debt of the same or similar remaining maturities and from discounting the future cash flows using the current rates offered for debt of the same or similar remaining maturities. | |||||||||||||||||||||
Derivative financial instruments. See “Fair value measurements on a recurring basis” below. | |||||||||||||||||||||
Off-balance sheet financial instruments. The fair value of loans serviced for others was calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams were estimated based on industry assumptions regarding prepayment speeds and income and expenses associated with servicing residential mortgage loans for others. The fair value of commitments to originate loans was estimated based on the change in current primary market prices of new commitments. Since lines of credit can expire without being drawn and customers are under no obligation to utilize the lines, no fair value was assigned to unused lines of credit. The fair value of letters of credit was estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. | |||||||||||||||||||||
The estimated fair values of certain of the Company’s financial instruments were as follows: | |||||||||||||||||||||
Carrying or | Estimated fair value | ||||||||||||||||||||
notional | |||||||||||||||||||||
(in thousands) | amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | — | 535,264 | — | 535,264 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | — | 93,413 | — | 93,413 | ||||||||||||||||
Loans receivable, net | 4,010,961 | — | — | 4,149,137 | 4,149,137 | ||||||||||||||||
Derivative assets | 24,196 | — | 558 | — | 558 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,310,842 | — | 4,313,560 | — | 4,313,560 | ||||||||||||||||
Short-term borrowings—other than bank | 131,341 | — | 131,341 | — | 131,341 | ||||||||||||||||
Other bank borrowings | 239,612 | — | 252,230 | — | 252,230 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,880 | — | 1,431,434 | — | 1,431,434 | ||||||||||||||||
Derivative liabilities | 22,185 | 202 | 73 | — | 275 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 671,358 | — | 671,358 | — | 671,358 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 96,022 | — | 96,022 | — | 96,022 | ||||||||||||||||
Loans receivable, net | 3,763,238 | — | — | 3,957,752 | 3,957,752 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,229,916 | — | 4,235,527 | — | 4,235,527 | ||||||||||||||||
Short-term borrowings—other than bank | 83,693 | — | 83,693 | — | 83,693 | ||||||||||||||||
Other bank borrowings | 195,926 | — | 212,163 | — | 212,163 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,872 | — | 1,481,004 | — | 1,481,004 | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, loan commitments and unused lines and letters of credit issued by ASB had notional amounts of $1.6 billion and $1.5 billion, respectively, and their estimated fair value on such dates were $0.6 million and $1.2 million, respectively. As of September 30, 2013 and December 31, 2012, loans serviced by ASB for others had notional amounts of $1.4 billion and $1.3 billion, respectively, and the estimated fair value of the servicing rights for such loans was $16.6 million and $11.9 million, respectively. | |||||||||||||||||||||
Fair value measurements on a recurring basis. | |||||||||||||||||||||
Securities. While securities held in ASB’s investment portfolio trade in active markets, they do not trade on listed exchanges nor do the specific holdings trade in quoted markets by dealers or brokers. All holdings are valued using market-based approaches that are based on exit prices that are taken from identical or similar market transactions, even in situations where trading volume may be low when compared with prior periods. Inputs to these valuation techniques reflect the assumptions that consider credit and nonperformance risk that market participants would use in pricing the asset based on market data obtained from independent sources. Available-for-sale securities were comprised of federal agency obligations and mortgage-backed securities and municipal bonds. | |||||||||||||||||||||
Derivative financial instruments. ASB enters into interest rate lock commitments (IRLC) for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. IRLCs are classified as Level 2 measurements. | |||||||||||||||||||||
ASB utilizes forward commitments as economic hedges against potential changes in the values of the IRLCs and loans held for sale. To reduce the impact of price fluctuations of IRLC and mortgage loans held for sale, ASB will purchase to be announced (TBA) mortgage-backed securities forward commitments, mandatory and best effort commitments. These commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of these commitments are recognized as part of mortgage banking income on the consolidated statements of income. TBA forward commitments are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of ASB’s best efforts and mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the market place that are observable and are classified as Level 2 measurements. | |||||||||||||||||||||
Assets measured at fair value on a recurring basis were as follows: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Quoted prices in | Significant otherobservable | Significant | |||||||||||||||||||
active markets | inputs | unobservable | |||||||||||||||||||
for identical assets | inputs | ||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | |||||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 357,977 | $ | — | |||||||||||||||
Federal agency obligations | — | 98,265 | — | ||||||||||||||||||
Municipal bonds | — | 79,022 | — | ||||||||||||||||||
$ | — | $ | 535,264 | $ | — | ||||||||||||||||
Derivative assets (1) | |||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 556 | $ | — | |||||||||||||||
Forward commitments | — | 2 | — | ||||||||||||||||||
$ | — | $ | 558 | $ | — | ||||||||||||||||
Derivative liabilities (1) - Forward commitments | $ | 202 | $ | 73 | $ | — | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | |||||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 417,383 | $ | — | |||||||||||||||
Federal agency obligations | — | 171,491 | — | ||||||||||||||||||
Municipal bonds | — | 82,484 | — | ||||||||||||||||||
$ | — | $ | 671,358 | $ | — | ||||||||||||||||
___________________________________________ | |||||||||||||||||||||
(1) Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. | |||||||||||||||||||||
Fair value measurements on a nonrecurring basis. From time to time, the Company may be required to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the writedowns of individual assets. ASB does not record loans at fair value on a recurring basis. However, from time to time, ASB records nonrecurring fair value adjustments based on the current appraised value of the collateral securing the loans or unobservable market assumptions. Unobservable assumptions reflect ASB’s own estimate of the fair value of collateral used in valuing the loan. ASB may also be required to measure goodwill at fair value on a nonrecurring basis. During the first nine months of 2013, it was not required that a measurement of the fair value of goodwill be calculated and goodwill was not measured at fair value. | |||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Loans | |||||||||||||||||||||
30-Sep-13 | $ | 5 | $ | — | $ | — | $ | 5 | |||||||||||||
31-Dec-12 | 21 | — | — | 21 | |||||||||||||||||
Real estate acquired in settlement of loans | |||||||||||||||||||||
30-Sep-13 | $ | — | — | — | $ | — | |||||||||||||||
31-Dec-12 | 3 | — | — | 3 | |||||||||||||||||
At September 30, 2013 and 2012, there were no adjustments to fair value for ASB’s loans held for sale. | |||||||||||||||||||||
Residential loans. The fair value of ASB’s residential loans that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
Home equity lines of credit. The fair value of ASB’s home equity lines of credit that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
Commercial loans. The fair value of ASB’s commercial loans that were written down due to impairment was determined based on the value placed on the assets of the business, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
Real estate acquired in settlement of loans. The fair value of ASB’s real estate acquired in settlement of loans that were written down due to impairment was determined based on third party appraisals, which include the appraisers’ assumptions and judgment, and therefore, is classified as a Level 3 measurement. | |||||||||||||||||||||
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2013, the significant unobservable inputs used in the fair value measurement were as follows: | |||||||||||||||||||||
Fair value at | Significant unobservable | ||||||||||||||||||||
input value (1) | |||||||||||||||||||||
($ in thousands) | 30-Sep-13 | Valuation technique | Significant unobservable input | Range | Weighted | ||||||||||||||||
Average | |||||||||||||||||||||
Residential loans | $ | 4,028 | Fair value of property or collateral | Appraised value less 7% selling cost | 44-96% | 81% | |||||||||||||||
Home equity lines of credit | 172 | Fair value of property or collateral | Appraised value less 7% selling cost | 46-50% | 50% | ||||||||||||||||
Commercial loans | 759 | Fair value of property or collateral | Fair value of business assets | 31-91% | 60% | ||||||||||||||||
Total loans | 4,959 | ||||||||||||||||||||
Real estate acquired in settlement of loans | 192 | Fair value of property or collateral | Appraised value less 7% selling cost | 81-95% | 90% | ||||||||||||||||
(1) Represent percent of outstanding principal balance. | |||||||||||||||||||||
Significant increases (decreases) in any of those inputs in isolation would result in significantly higher (lower) fair value measurement. | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||
Fair value measurements | ' | ||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
See Note 9 “Fair value measurements,” of HEI’s “Notes to Consolidated Financial Statements” for discussions of fair value estimates, grouping of financial instruments and methods and assumptions used to estimate the fair value of short-term borrowings and long-term debt. | |||||||||||||||||||||
The estimated fair values of certain of the electric utilities’ financial instruments were as follows: | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||
(in thousands) | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
amount | fair value | amount | fair value | ||||||||||||||||||
(Level 2) | (Level 2) | ||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Short-term borrowings - non-affiliates | $ | 73,246 | $ | 73,246 | $ | — | $ | — | |||||||||||||
Long-term debt, net, including amounts due within one year | 1,147,880 | 1,149,213 | 1,147,872 | 1,181,631 | |||||||||||||||||
Fair value measurements on a nonrecurring basis. From time to time, the Utilities may be required to measure certain liabilities at fair value on a nonrecurring basis in accordance with GAAP. The fair value of the Utilities ARO (Level 3) was determined by discounting the expected future cash flows using market-observable risk-free rates as adjusted by Hawaiian Electric’s credit spread. Also, see “Asset retirement obligations” in Note 5. |
Recent_accounting_pronouncemen1
Recent accounting pronouncements - HECO | 9 Months Ended |
Sep. 30, 2013 | |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
Obligations resulting from joint and several liability. In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date,” which provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance requires entities to measure these obligations as the sum of the amount the entity has agreed with co-obligors to pay and any additional amount it expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information. This guidance is effective for all fiscal years, and interim periods within those years, beginning after December 31, 2013. | |
The Company will retrospectively adopt ASU No. 2013-04 in the first quarter of 2014 and does not expect it to have a material impact on the Company’s results of operations, financial condition or liquidity. | |
Unrecognized tax benefit. In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which clarifies that a liability for an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss tax benefit carryforward (or other tax benefit carrying forward), if the uncertain tax position could result in the reduction of such net operating loss (or other tax benefit) carryforward giving rise to the deferred tax asset. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | |
The Company will prospectively adopt ASU No. 2013-11 in the first quarter of 2014 and does not expect it to have a material impact on the Company’s results of operations, financial condition or liquidity. | |
Hawaiian Electric Company, Inc. and Subsidiaries | ' |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
Obligations resulting from joint and several liability. In February 2013, the FASB issued ASU No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date,” which provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance requires entities to measure these obligations as the sum of the amount the entity has agreed with co-obligors to pay and any additional amount it expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information. This guidance is effective for all fiscal years, and interim periods within those years, beginning after December 31, 2013. | |
Hawaiian Electric and its subsidiaries will retrospectively adopt ASU No. 2013-04 in the first quarter of 2014 and does not expect it to have a material impact on Hawaiian Electric and its subsidiaries’ results of operations, financial condition or liquidity. | |
Unrecognized tax benefit. In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which clarifies that a liability for an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss tax benefit carryforward (or other tax benefit carrying forward), if the uncertain tax position could result in the reduction of such net operating loss (or other tax benefit) carryforward giving rise to the deferred tax asset. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | |
Hawaiian Electric and its subsidiaries will prospectively adopt ASU No. 2013-11 in the first quarter of 2014 and do not expect it to have a material impact on the Utilities’ results of operations, financial condition or liquidity. |
Credit_agreement_HECO
Credit agreement - HECO | 9 Months Ended | ||
Sep. 30, 2013 | |||
Credit agreement | ' | ||
Credit agreement and long-term debt | |||
Credit agreement. HEI maintains an amended revolving non-collateralized credit agreement, which established a line of credit facility of $125 million, with a letter of credit sub-facility, expiring on December 5, 2016, with a syndicate of eight financial institutions. The credit facility will be maintained to support the issuance of commercial paper, but also may be drawn to repay HEI’s short-term and long-term indebtedness, to make investments in or loans to subsidiaries and for HEI’s working capital and general corporate purposes. | |||
Changes in long-term debt. | |||
March 6, 2013 notes. On March 6, 2013, HEI entered into a First Supplement (the First Supplement) to the Master Note Purchase Agreement dated March 24, 2011 (the Note Agreement). Under the First Supplement, HEI issued $50 million of its unsecured, 3.99% Series 2013A Senior Notes, due March 6, 2023, via a private placement with The Prudential Insurance Company of America, Prudential Arizona Reinsurance Captive Company and The Lincoln National Life Insurance Company. | |||
The Note Agreement, as modified by the First Supplement (which includes representations that supersede and supplement the representations in the Note Agreement), contains customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the Notes then outstanding becoming immediately due and payable) and provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s existing amended revolving non-collateralized credit agreement described above and in HEI’s Form 10-K for the year ended December 31, 2012. For example, under the Note Agreement, it is an event of default if HEI fails to maintain an unconsolidated “Capitalization Ratio” (funded debt) of 50% or less (actual ratio of 17% as of September 30, 2013, as calculated under the agreement) or “Consolidated Net Worth” of at least $975 million (actual Net Worth of $1.7 billion as of September 30, 2013, as calculated under the agreement). | |||
The net proceeds from the issuance of the Notes were used by HEI to refinance $50 million of its unsecured, 5.25% Medium-Term Notes, Series D, which matured on March 7, 2013. | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||
Credit agreement | ' | ||
Credit agreement and long-term debt | |||
Credit agreement. Hawaiian Electric maintains an amended revolving non-collateralized credit agreement, which established a line of credit facility of $175 million, with a letter of credit sub-facility, expiring on December 5, 2016, with a syndicate of eight financial institutions. The credit facility will be maintained to support the issuance of commercial paper, but also may be drawn to repay Hawaiian Electric’s short-term indebtedness, to make loans to subsidiaries and for Hawaiian Electric’s capital expenditures, working capital and general corporate purposes. | |||
Subsequent event-changes in long-term debt. On October 3, 2013, Hawaiian Electric, Maui Electric and Hawaii Electric Light each entered into its separate note purchase agreement with various purchasers of their taxable unsecured senior notes (Notes) with an aggregate principal amount of $236 million. The Utilities issued through a private placement the following series of Notes: | |||
Amount | Series | Maturity | |
Hawaiian Electric Notes | |||
$40 million1 | 4.45% Senior Notes, Series 2013A | 1-Dec-22 | |
$50 million1 | 4.84% Senior Notes, Series 2013B | 1-Oct-27 | |
$50 million2 | 5.65% Senior Notes, Series 2013C | 1-Oct-43 | |
$140 million | Total | ||
Maui Electric Notes | |||
$20 million1 | 4.84% Senior Notes, Series 2013A | 1-Oct-27 | |
$20 million2 | 5.65% Senior Notes, Series 2013B | 1-Oct-43 | |
$40 million | Total | ||
Hawaii Electric Light Notes | |||
$14 million1 | 3.83% Senior Notes, Series 2013A | 1-Jul-20 | |
$12 million1 | 4.45% Senior Notes, Series 2013B | 1-Dec-22 | |
$30 million1 | 4.84% Senior Notes, Series 2013C | 1-Oct-27 | |
$56 million | Total | ||
1 Proceeds were used in October 2013 to redeem the following special purpose revenue bonds (SPRBs) and refunding SPRBs issued by the Department of Budget and Finance of the State of Hawaii for the benefit of the Utilities with an aggregate principle amount of $166 million: | |||
Series | Year of maturity | ||
4.75% Refunding Series 2003A Bonds | 2020 | ||
5.00% Refunding Series 2003B Bonds | 2022 | ||
5.65% Series 1997A Bonds | 2027 | ||
2 Proceeds were and/or will be used by the respective utility to finance their capital expenditures and/or for the reimbursement of funds used for the payment of capital expenditures. | |||
Hawaiian Electric has guaranteed the obligations of Maui Electric and Hawaii Electric Light under their respective Notes. | |||
The three note purchase agreements contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the Notes of each and all of the Utilities then outstanding becoming immediately due and payable). The note purchase agreements also include provisions requiring the maintenance by Hawaiian Electric and each of Maui Electric and Hawaii Electric Light of certain financial ratios consistent with those in each of the Utilities’ existing note purchase agreements dated April 19, 2012 and September 13, 2012 (Hawaiian Electric only) and generally consistent with those in Hawaiian Electric’s existing amended revolving non-collateralized credit agreement described above. | |||
All of the Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount of the Notes plus payment of a “Make-Whole Amount.” Each of the Note Purchase Agreements also (a) requires the Utilities to offer to prepay the Notes (without a Make-Whole Amount) in the event that HEI ceases to own 100% of the common stock or other securities of Hawaiian Electric that is ordinarily entitled, in the absence of contingencies, to vote in the election of Hawaiian Electric directors unless, at the time of such cessation of ownership and at all times during the period of 90 consecutive days thereafter, the long-term unsecured, unenhanced debt of Hawaiian Electric maintains an investment grade rating by at least one rating agency or, if more than one rating agency rates such indebtedness, then by each such rating agency, and (b) permits the Utilities to offer to prepay the Notes (without a Make-Whole amount) in the event of a sale of assets that would otherwise constitute a covenant default. |
Reconciliation_of_electric_uti
Reconciliation of electric utility operating income per HEI and HECO consolidated statements of income - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||
Reconciliation of electric utility operating income per HEI and HECO consolidated statements of income | ' | ||||||||||||||||
Reconciliation of electric utility operating income per HEI and Hawaiian Electric consolidated statements of income | |||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating income from regulated and nonregulated activities before income taxes (per HEI consolidated statements of income) | $ | 71,914 | $ | 74,819 | $ | 186,005 | $ | 193,569 | |||||||||
Deduct: | |||||||||||||||||
Income taxes on regulated activities | (18,928 | ) | (22,352 | ) | (51,356 | ) | (58,291 | ) | |||||||||
Revenues from nonregulated activities | (2,182 | ) | (1,892 | ) | (7,153 | ) | (5,431 | ) | |||||||||
Add: Expenses from nonregulated activities | 1,082 | 804 | 2,801 | 1,620 | |||||||||||||
Operating income from regulated activities after income taxes (per Hawaiian Electric consolidated statements of income) | $ | 51,886 | $ | 51,379 | $ | 130,297 | $ | 131,467 | |||||||||
Consolidating_financial_inform
Consolidating financial information - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||
Consolidating financial information | ' | ||||||||||||||||||||
Consolidating financial information | |||||||||||||||||||||
Hawaiian Electric is not required to provide separate financial statements or other disclosures concerning Hawaii Electric Light and Maui Electric to holders of the 2004 Debentures issued by Hawaii Electric Light and Maui Electric to Trust III since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by Hawaiian Electric. Consolidating information is provided below for these and other Hawaiian Electric subsidiaries for the periods ended and as of the dates indicated. | |||||||||||||||||||||
Hawaiian Electric also unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder and (c) relating to the trust preferred securities of Trust III (see Note 2 above). Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments. | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 547,310 | 107,924 | 108,699 | — | — | $ | 763,933 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 206,478 | 27,615 | 49,267 | — | — | 283,360 | |||||||||||||||
Purchased power | 143,280 | 34,480 | 17,101 | — | — | 194,861 | |||||||||||||||
Other operation | 51,023 | 11,057 | 9,928 | — | — | 72,008 | |||||||||||||||
Maintenance | 19,619 | 5,680 | 6,214 | — | — | 31,513 | |||||||||||||||
Depreciation | 25,442 | 8,547 | 5,006 | — | — | 38,995 | |||||||||||||||
Taxes, other than income taxes | 51,712 | 10,448 | 10,222 | — | — | 72,382 | |||||||||||||||
Income taxes | 13,556 | 1,991 | 3,381 | — | — | 18,928 | |||||||||||||||
Total operating expenses | 511,110 | 99,818 | 101,119 | — | — | 712,047 | |||||||||||||||
Operating income | 36,200 | 8,106 | 7,580 | — | — | 51,886 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 914 | 222 | 119 | — | — | 1,255 | |||||||||||||||
Equity in earnings of subsidiaries | 10,794 | — | — | — | (10,794 | ) | — | ||||||||||||||
Other, net | 795 | 217 | 124 | (1 | ) | (36 | ) | 1,099 | |||||||||||||
Income tax expense | (77 | ) | (32 | ) | (20 | ) | — | — | (129 | ) | |||||||||||
Total other income (loss) | 12,426 | 407 | 223 | (1 | ) | (10,830 | ) | 2,225 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 9,902 | 2,751 | 1,962 | — | — | 14,615 | |||||||||||||||
Amortization of net bond premium and expense | 410 | 116 | 120 | — | — | 646 | |||||||||||||||
Other interest charges | 585 | 160 | 324 | — | (36 | ) | 1,033 | ||||||||||||||
Allowance for borrowed funds used during construction | (358 | ) | (91 | ) | (49 | ) | — | — | (498 | ) | |||||||||||
Total interest and other charges | 10,539 | 2,936 | 2,357 | — | (36 | ) | 15,796 | ||||||||||||||
Net income (loss) | 38,087 | 5,577 | 5,446 | (1 | ) | (10,794 | ) | 38,315 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 38,087 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | 38,087 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 720 | 639 | — | (1,359 | ) | 5,173 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,156 | ) | (721 | ) | (639 | ) | — | 1,360 | (5,156 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 17 | (1 | ) | — | — | 1 | 17 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 37,834 | 5,443 | 5,351 | (1 | ) | (10,793 | ) | $ | 37,834 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 579,464 | 108,490 | 111,249 | — | — | $ | 799,203 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 248,443 | 25,752 | 52,978 | — | — | 327,173 | |||||||||||||||
Purchased power | 135,507 | 37,693 | 13,499 | — | — | 186,699 | |||||||||||||||
Other operation | 48,201 | 10,888 | 11,352 | — | — | 70,441 | |||||||||||||||
Maintenance | 19,615 | 5,146 | 5,607 | — | — | 30,368 | |||||||||||||||
Depreciation | 22,738 | 8,299 | 4,904 | — | — | 35,941 | |||||||||||||||
Taxes, other than income taxes | 53,935 | 10,444 | 10,471 | — | — | 74,850 | |||||||||||||||
Income taxes | 15,725 | 2,782 | 3,845 | — | — | 22,352 | |||||||||||||||
Total operating expenses | 544,164 | 101,004 | 102,656 | — | — | 747,824 | |||||||||||||||
Operating income | 35,300 | 7,486 | 8,593 | — | — | 51,379 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 1,323 | 148 | 140 | — | — | 1,611 | |||||||||||||||
Equity in earnings of subsidiaries | 11,285 | — | — | — | (11,285 | ) | — | ||||||||||||||
Other, net | 950 | 128 | 38 | (1 | ) | (28 | ) | 1,087 | |||||||||||||
Income tax benefits (expense) | (37 | ) | (14 | ) | 9 | — | — | (42 | ) | ||||||||||||
Total other income (loss) | 13,521 | 262 | 187 | (1 | ) | (11,313 | ) | 2,656 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 9,981 | 2,751 | 1,962 | — | — | 14,694 | |||||||||||||||
Amortization of net bond premium and expense | 629 | 117 | 124 | — | — | 870 | |||||||||||||||
Other interest charges | 142 | 78 | 94 | — | (28 | ) | 286 | ||||||||||||||
Allowance for borrowed funds used during construction | (576 | ) | (59 | ) | (53 | ) | — | — | (688 | ) | |||||||||||
Total interest and other charges | 10,176 | 2,887 | 2,127 | — | (28 | ) | 15,162 | ||||||||||||||
Net income (loss) | 38,645 | 4,861 | 6,653 | (1 | ) | (11,285 | ) | 38,873 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 38,645 | 4,728 | 6,558 | (1 | ) | (11,285 | ) | 38,645 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income (loss) for common stock | $ | 38,375 | 4,728 | 6,558 | (1 | ) | (11,285 | ) | $ | 38,375 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 38,375 | 4,728 | 6,558 | (1 | ) | (11,285 | ) | $ | 38,375 | |||||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 3,419 | 526 | 443 | — | (969 | ) | 3,419 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,342 | ) | (521 | ) | (436 | ) | — | 957 | (3,342 | ) | |||||||||||
Other comprehensive income, net of taxes | 77 | 5 | 7 | — | (12 | ) | 77 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 38,452 | 4,733 | 6,565 | (1 | ) | (11,297 | ) | $ | 38,452 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 1,574,869 | 320,314 | 313,740 | — | — | $ | 2,208,923 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 631,824 | 94,120 | 151,794 | — | — | 877,738 | |||||||||||||||
Purchased power | 389,706 | 93,880 | 43,083 | — | — | 526,669 | |||||||||||||||
Other operation | 149,218 | 32,267 | 28,130 | — | — | 209,615 | |||||||||||||||
Maintenance | 60,922 | 13,787 | 13,846 | — | — | 88,555 | |||||||||||||||
Depreciation | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Taxes, other than income taxes | 149,084 | 30,094 | 29,650 | — | — | 208,828 | |||||||||||||||
Income taxes | 33,753 | 7,765 | 9,838 | — | — | 51,356 | |||||||||||||||
Total operating expenses | 1,489,657 | 297,554 | 291,415 | — | — | 2,078,626 | |||||||||||||||
Operating income | 85,212 | 22,760 | 22,325 | — | — | 130,297 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 3,144 | 552 | 334 | — | — | 4,030 | |||||||||||||||
Equity in earnings of subsidiaries | 30,446 | — | — | — | (30,446 | ) | — | ||||||||||||||
Other, net | 3,518 | 526 | 412 | (2 | ) | (103 | ) | 4,351 | |||||||||||||
Income tax expense | (266 | ) | (73 | ) | (81 | ) | — | — | (420 | ) | |||||||||||
Total other income (loss) | 36,842 | 1,005 | 665 | (2 | ) | (30,549 | ) | 7,961 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 29,705 | 8,252 | 5,886 | — | — | 43,843 | |||||||||||||||
Amortization of net bond premium and expense | 1,231 | 350 | 359 | — | — | 1,940 | |||||||||||||||
Other interest charges | 637 | 245 | 887 | — | (103 | ) | 1,666 | ||||||||||||||
Allowance for borrowed funds used during construction | (1,268 | ) | (226 | ) | (132 | ) | — | — | (1,626 | ) | |||||||||||
Total interest and other charges | 30,305 | 8,621 | 7,000 | — | (103 | ) | 45,823 | ||||||||||||||
Net income (loss) | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | 92,435 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 91,749 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 91,749 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 15,520 | 2,160 | 1,918 | — | (4,078 | ) | 15,520 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (15,468 | ) | (2,162 | ) | (1,918 | ) | — | 4,080 | (15,468 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 90,991 | 14,742 | 15,704 | (2 | ) | (30,444 | ) | $ | 90,991 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 1,677,604 | 332,558 | 324,664 | — | — | $ | 2,334,826 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 724,862 | 88,778 | 172,436 | — | — | 986,076 | |||||||||||||||
Purchased power | 401,423 | 108,996 | 29,421 | — | — | 539,840 | |||||||||||||||
Other operation | 132,770 | 29,851 | 34,185 | — | — | 196,806 | |||||||||||||||
Maintenance | 60,993 | 14,280 | 16,368 | — | — | 91,641 | |||||||||||||||
Depreciation | 68,046 | 25,036 | 15,474 | — | — | 108,556 | |||||||||||||||
Taxes, other than income taxes | 159,928 | 31,330 | 30,891 | — | — | 222,149 | |||||||||||||||
Income taxes | 41,049 | 9,836 | 7,406 | — | — | 58,291 | |||||||||||||||
Total operating expenses | 1,589,071 | 308,107 | 306,181 | — | — | 2,203,359 | |||||||||||||||
Operating income | 88,533 | 24,451 | 18,483 | — | — | 131,467 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 4,558 | 433 | 557 | — | — | 5,548 | |||||||||||||||
Equity in earnings of subsidiaries | 28,025 | — | — | — | (28,025 | ) | — | ||||||||||||||
Other, net | 3,215 | 361 | 293 | (3 | ) | (56 | ) | 3,810 | |||||||||||||
Income tax benefits (expense) | (101 | ) | (47 | ) | 11 | — | — | (137 | ) | ||||||||||||
Total other income (loss) | 35,697 | 747 | 861 | (3 | ) | (28,081 | ) | 9,221 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 29,301 | 8,649 | 6,450 | — | — | 44,400 | |||||||||||||||
Amortization of net bond premium and expense | 1,541 | 362 | 373 | — | — | 2,276 | |||||||||||||||
Other interest charges | (412 | ) | 131 | 253 | — | (56 | ) | (84 | ) | ||||||||||||
Allowance for borrowed funds used during construction | (2,061 | ) | (174 | ) | (216 | ) | — | — | (2,451 | ) | |||||||||||
Total interest and other charges | 28,369 | 8,968 | 6,860 | — | (56 | ) | 44,141 | ||||||||||||||
Net income (loss) | 95,861 | 16,230 | 12,484 | (3 | ) | (28,025 | ) | 96,547 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 95,861 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | 95,861 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income (loss) for common stock | $ | 95,051 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | $ | 95,051 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 95,051 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | $ | 95,051 | |||||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,255 | 1,576 | 1,328 | — | (2,904 | ) | 10,255 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (10,026 | ) | (1,558 | ) | (1,309 | ) | — | 2,867 | (10,026 | ) | |||||||||||
Other comprehensive income, net of taxes | 229 | 18 | 19 | — | (37 | ) | 229 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 95,280 | 15,848 | 12,217 | (3 | ) | (28,062 | ) | $ | 95,280 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Assets | |||||||||||||||||||||
Utility plant, at cost | |||||||||||||||||||||
Land | $ | 43,392 | 5,426 | 3,016 | — | — | $ | 51,834 | |||||||||||||
Plant and equipment | 3,488,617 | 1,116,702 | 988,482 | — | — | 5,593,801 | |||||||||||||||
Less accumulated depreciation | (1,211,045 | ) | (449,547 | ) | (432,983 | ) | — | — | (2,093,575 | ) | |||||||||||
Construction in progress | 122,399 | 14,120 | 14,558 | — | — | 151,077 | |||||||||||||||
Net utility plant | 2,443,363 | 686,701 | 573,073 | — | — | 3,703,137 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 507,080 | — | — | — | (507,080 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 18,906 | 2,754 | 3,423 | 102 | — | 25,185 | |||||||||||||||
Advances to affiliates | 23,000 | 7,000 | — | — | (30,000 | ) | — | ||||||||||||||
Customer accounts receivable, net | 134,641 | 29,569 | 23,494 | — | — | 187,704 | |||||||||||||||
Accrued unbilled revenues, net | 104,981 | 16,120 | 18,800 | — | — | 139,901 | |||||||||||||||
Other accounts receivable, net | 15,094 | 3,877 | 2,214 | — | (12,011 | ) | 9,174 | ||||||||||||||
Fuel oil stock, at average cost | 105,231 | 14,615 | 17,241 | — | — | 137,087 | |||||||||||||||
Materials and supplies, at average cost | 37,171 | 7,042 | 15,221 | — | — | 59,434 | |||||||||||||||
Prepayments and other | 26,024 | 4,413 | 14,939 | — | — | 45,376 | |||||||||||||||
Regulatory assets | 36,006 | 4,636 | 5,081 | — | — | 45,723 | |||||||||||||||
Total current assets | 501,054 | 90,026 | 100,413 | 102 | (42,011 | ) | 649,584 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 626,209 | 112,244 | 106,243 | — | — | 844,696 | |||||||||||||||
Unamortized debt expense | 6,491 | 1,882 | 1,301 | — | — | 9,674 | |||||||||||||||
Other | 40,343 | 8,405 | 13,919 | — | — | 62,667 | |||||||||||||||
Total other long-term assets | 673,043 | 122,531 | 121,463 | — | — | 917,037 | |||||||||||||||
Total assets | $ | 4,124,540 | 899,258 | 794,949 | 102 | (549,091 | ) | $ | 5,269,758 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,501,944 | 272,860 | 234,118 | 102 | (507,080 | ) | $ | 1,501,944 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 780,546 | 201,334 | 166,000 | — | — | 1,147,880 | |||||||||||||||
Total capitalization | 2,304,783 | 481,194 | 405,118 | 102 | (507,080 | ) | 2,684,117 | ||||||||||||||
Commitments and contingencies (Note 5) | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Short-term borrowings from non-affiliates | 73,246 | — | — | — | — | 73,246 | |||||||||||||||
Short-term borrowings from affiliate | 7,000 | — | 23,000 | — | (30,000 | ) | — | ||||||||||||||
Accounts payable | 136,087 | 25,352 | 19,518 | — | — | 180,957 | |||||||||||||||
Interest and preferred dividends payable | 15,097 | 3,949 | 3,363 | — | (12 | ) | 22,397 | ||||||||||||||
Taxes accrued | 163,204 | 35,403 | 34,846 | — | — | 233,453 | |||||||||||||||
Other | 54,571 | 11,298 | 24,664 | — | (11,999 | ) | 78,534 | ||||||||||||||
Total current liabilities | 449,205 | 76,002 | 105,391 | — | (42,011 | ) | 588,587 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 340,014 | 75,866 | 62,721 | — | — | 478,601 | |||||||||||||||
Regulatory liabilities | 224,568 | 71,230 | 33,333 | — | — | 329,131 | |||||||||||||||
Unamortized tax credits | 43,564 | 13,552 | 13,922 | — | — | 71,038 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 442,613 | 77,004 | 76,623 | — | 596,240 | ||||||||||||||||
Other | 67,157 | 15,386 | 13,585 | — | — | 96,128 | |||||||||||||||
Total deferred credits and other liabilities | 1,117,916 | 253,038 | 200,184 | — | — | 1,571,138 | |||||||||||||||
Contributions in aid of construction | 252,636 | 89,024 | 84,256 | — | — | 425,916 | |||||||||||||||
Total capitalization and liabilities | $ | 4,124,540 | 899,258 | 794,949 | 102 | (549,091 | ) | $ | 5,269,758 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Assets | |||||||||||||||||||||
Utility plant, at cost | |||||||||||||||||||||
Land | $ | 43,370 | 5,182 | 3,016 | — | — | $ | 51,568 | |||||||||||||
Plant and equipment | 3,325,862 | 1,086,048 | 952,490 | — | — | 5,364,400 | |||||||||||||||
Less accumulated depreciation | (1,185,899 | ) | (433,531 | ) | (421,359 | ) | — | — | (2,040,789 | ) | |||||||||||
Construction in progress | 130,143 | 12,126 | 9,109 | — | — | 151,378 | |||||||||||||||
Net utility plant | 2,313,476 | 669,825 | 543,256 | — | — | 3,526,557 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 497,939 | — | — | — | (497,939 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Advances to affiliates | 9,400 | 18,050 | — | — | (27,450 | ) | — | ||||||||||||||
Customer accounts receivable, net | 154,316 | 29,772 | 26,691 | — | — | 210,779 | |||||||||||||||
Accrued unbilled revenues, net | 100,600 | 14,393 | 19,305 | — | — | 134,298 | |||||||||||||||
Other accounts receivable, net | 33,313 | 1,122 | 3,016 | — | (9,275 | ) | 28,176 | ||||||||||||||
Fuel oil stock, at average cost | 123,176 | 15,485 | 22,758 | — | — | 161,419 | |||||||||||||||
Materials and supplies, at average cost | 31,779 | 5,336 | 13,970 | — | — | 51,085 | |||||||||||||||
Prepayments and other | 21,708 | 5,146 | 6,011 | — | — | 32,865 | |||||||||||||||
Regulatory assets | 42,675 | 4,056 | 4,536 | — | — | 51,267 | |||||||||||||||
Total current assets | 525,232 | 98,801 | 99,636 | 104 | (36,725 | ) | 687,048 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 601,451 | 109,815 | 102,063 | — | — | 813,329 | |||||||||||||||
Unamortized debt expense | 7,042 | 2,066 | 1,446 | — | — | 10,554 | |||||||||||||||
Other | 46,586 | 9,871 | 14,848 | — | — | 71,305 | |||||||||||||||
Total other long-term assets | 655,079 | 121,752 | 118,357 | — | — | 895,188 | |||||||||||||||
Total assets | $ | 3,991,726 | 890,378 | 761,249 | 104 | (534,664 | ) | $ | 5,108,793 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 780,546 | 201,326 | 166,000 | — | — | 1,147,872 | |||||||||||||||
Total capitalization | 2,274,975 | 477,234 | 399,927 | 104 | (497,939 | ) | 2,654,301 | ||||||||||||||
Commitments and contingencies (Note 5) | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | — | — | — | — | — | |||||||||||||||
Short-term borrowings from affiliate | 18,050 | — | 9,400 | — | (27,450 | ) | — | ||||||||||||||
Accounts payable | 134,651 | 27,457 | 24,716 | — | — | 186,824 | |||||||||||||||
Interest and preferred dividends payable | 14,479 | 4,027 | 2,593 | — | (7 | ) | 21,092 | ||||||||||||||
Taxes accrued | 174,477 | 38,778 | 37,811 | — | — | 251,066 | |||||||||||||||
Other | 47,203 | 10,310 | 14,634 | — | (9,268 | ) | 62,879 | ||||||||||||||
Total current liabilities | 388,860 | 80,572 | 89,154 | — | (36,725 | ) | 521,861 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 302,569 | 68,479 | 46,563 | — | — | 417,611 | |||||||||||||||
Regulatory liabilities | 218,437 | 67,359 | 36,278 | — | — | 322,074 | |||||||||||||||
Unamortized tax credits | 39,827 | 13,450 | 13,307 | — | — | 66,584 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 459,765 | 80,686 | 79,754 | — | — | 620,205 | |||||||||||||||
Other | 68,783 | 17,799 | 14,055 | — | — | 100,637 | |||||||||||||||
Total deferred credits and other liabilities | 1,089,381 | 247,773 | 189,957 | — | — | 1,527,111 | |||||||||||||||
Contributions in aid of construction | 238,510 | 84,799 | 82,211 | — | — | 405,520 | |||||||||||||||
Total capitalization and liabilities | $ | 3,991,726 | 890,378 | 761,249 | 104 | (534,664 | ) | $ | 5,108,793 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2012 | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Net income (loss) for common stock | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 90,939 | |||||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Balance, September 30, 2013 | $ | 1,501,944 | 272,860 | 234,118 | 102 | (507,080 | ) | $ | 1,501,944 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2011 | $ | 1,402,841 | 280,468 | 235,568 | 107 | (516,143 | ) | $ | 1,402,841 | ||||||||||||
Net income (loss) for common stock | 95,051 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | 95,051 | |||||||||||||
Other comprehensive income, net of taxes | 229 | 18 | 19 | — | (37 | ) | 229 | ||||||||||||||
Common stock dividends | (54,783 | ) | (9,854 | ) | (6,560 | ) | — | 16,414 | (54,783 | ) | |||||||||||
Balance, September 30, 2012 | $ | 1,443,338 | 286,462 | 241,225 | 104 | (527,791 | ) | $ | 1,443,338 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income (loss) | $ | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | $ | 92,435 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (30,522 | ) | — | — | — | 30,446 | (76 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 21,379 | — | — | — | (21,303 | ) | 76 | ||||||||||||||
Depreciation of property, plant and equipment | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Other amortization | (228 | ) | 1,075 | 1,623 | — | — | 2,470 | ||||||||||||||
Change in deferred income taxes | 31,361 | 7,165 | 9,488 | — | — | 48,014 | |||||||||||||||
Change in tax credits, net | 3,773 | 119 | 618 | — | — | 4,510 | |||||||||||||||
Allowance for equity funds used during construction | (3,144 | ) | (552 | ) | (334 | ) | — | — | (4,030 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | 37,894 | (2,552 | ) | 3,999 | — | 2,736 | 42,077 | ||||||||||||||
Decrease (increase) in accrued unbilled revenues | (4,381 | ) | (1,727 | ) | 505 | — | — | (5,603 | ) | ||||||||||||
Decrease in fuel oil stock | 17,945 | 870 | 5,517 | — | — | 24,332 | |||||||||||||||
Increase in materials and supplies | (5,392 | ) | (1,706 | ) | (1,251 | ) | — | — | (8,349 | ) | |||||||||||
Increase in regulatory assets | (37,032 | ) | (7,165 | ) | (9,117 | ) | — | — | (53,314 | ) | |||||||||||
Decrease in accounts payable | (10,435 | ) | (3,343 | ) | (9,196 | ) | — | — | (22,974 | ) | |||||||||||
Decrease in prepaid and accrued income and utility revenue taxes | (7,122 | ) | (3,566 | ) | (4,728 | ) | — | — | (15,416 | ) | |||||||||||
Contributions to defined benefit pension and other postretirement benefit plans | (44,650 | ) | (8,083 | ) | (8,143 | ) | — | — | (60,876 | ) | |||||||||||
Other increase in defined benefit pension and other postretirement benefit plans liability | 46,394 | 7,892 | 8,078 | — | — | 62,364 | |||||||||||||||
Change in other assets and liabilities | (10,562 | ) | (1,821 | ) | 4,924 | — | (2,736 | ) | (10,195 | ) | |||||||||||
Net cash provided by (used in) operating activities | 172,177 | 27,391 | 33,047 | (2 | ) | (21,303 | ) | 211,310 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | (164,423 | ) | (35,900 | ) | (37,546 | ) | — | — | (237,869 | ) | |||||||||||
Contributions in aid of construction | 15,699 | 6,160 | 1,774 | — | — | 23,633 | |||||||||||||||
Other | 623 | (196 | ) | — | — | — | 427 | ||||||||||||||
Advances from (to) affiliates | (13,600 | ) | 11,050 | — | — | 2,550 | — | ||||||||||||||
Net cash used in investing activities | (161,701 | ) | (18,886 | ) | (35,772 | ) | — | 2,550 | (213,809 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 62,196 | — | 13,600 | — | (2,550 | ) | 73,246 | ||||||||||||||
Other | (38 | ) | (2 | ) | (2 | ) | — | — | (42 | ) | |||||||||||
Net cash provided by (used in) financing activities | 165 | (11,192 | ) | 2,799 | — | 18,753 | 10,525 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 10,641 | (2,687 | ) | 74 | (2 | ) | — | 8,026 | |||||||||||||
Cash and cash equivalents, beginning of period | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 18,906 | 2,754 | 3,423 | 102 | — | $ | 25,185 | |||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income (loss) | $ | 95,861 | 16,230 | 12,484 | (3 | ) | (28,025 | ) | $ | 96,547 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (28,100 | ) | — | — | — | 28,025 | (75 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 16,464 | — | — | — | (16,414 | ) | 50 | ||||||||||||||
Depreciation of property, plant and equipment | 68,046 | 25,036 | 15,474 | — | — | 108,556 | |||||||||||||||
Other amortization | 691 | 1,776 | 1,607 | — | — | 4,074 | |||||||||||||||
Change in deferred income taxes | 64,790 | 8,290 | 9,637 | — | — | 82,717 | |||||||||||||||
Change in tax credits, net | 3,256 | 256 | 130 | — | — | 3,642 | |||||||||||||||
Allowance for equity funds used during construction | (4,558 | ) | (433 | ) | (557 | ) | — | — | (5,548 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | (43,284 | ) | (7,236 | ) | 1,287 | — | 12,326 | (36,907 | ) | ||||||||||||
Decrease (increase) in accrued unbilled revenues | 3,427 | 3,107 | (798 | ) | — | — | 5,736 | ||||||||||||||
Decrease (increase) in fuel oil stock | (36,365 | ) | 3,163 | 1,830 | — | — | (31,372 | ) | |||||||||||||
Increase in materials and supplies | (6,320 | ) | (719 | ) | (266 | ) | — | — | (7,305 | ) | |||||||||||
Increase in regulatory assets | (44,175 | ) | (6,621 | ) | (6,997 | ) | — | — | (57,793 | ) | |||||||||||
Increase (decrease) in accounts payable | 7,872 | (8,518 | ) | (2,835 | ) | — | — | (3,481 | ) | ||||||||||||
Decrease in prepaid and accrued income and utility revenue taxes | (14,006 | ) | (3,562 | ) | (3,097 | ) | — | — | (20,665 | ) | |||||||||||
Contributions to defined benefit pension and other postretirement benefit plans | (45,878 | ) | (8,270 | ) | (8,269 | ) | — | — | (62,417 | ) | |||||||||||
Other increase in defined benefit pension and other postretirement benefit plans liability | 34,421 | 6,133 | 9,307 | — | 49,861 | ||||||||||||||||
Change in other assets and liabilities | (28,970 | ) | (1,120 | ) | (3,192 | ) | — | (12,326 | ) | (45,608 | ) | ||||||||||
Net cash provided by (used in) operating activities | 43,172 | 27,512 | 25,745 | (3 | ) | (16,414 | ) | 80,012 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | (172,872 | ) | (26,331 | ) | (21,767 | ) | — | — | (220,970 | ) | |||||||||||
Contributions in aid of construction | 25,547 | 4,199 | 3,360 | — | — | 33,106 | |||||||||||||||
Advances from (to) affiliates | — | 16,750 | 11,500 | — | (28,250 | ) | — | ||||||||||||||
Net cash used in investing activities | (147,325 | ) | (5,382 | ) | (6,907 | ) | — | (28,250 | ) | (187,864 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Common stock dividends | (54,783 | ) | (9,854 | ) | (6,560 | ) | — | 16,414 | (54,783 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Proceeds from issuance of long-term debt | 367,000 | 31,000 | 59,000 | — | — | 457,000 | |||||||||||||||
Repayment of long-term debt | (259,580 | ) | (41,200 | ) | (67,720 | ) | — | — | (368,500 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 16,469 | — | — | — | 28,250 | 44,719 | |||||||||||||||
Other | (1,980 | ) | 167 | (359 | ) | — | — | (2,172 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 66,316 | (20,287 | ) | (15,925 | ) | — | 44,664 | 74,768 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (37,837 | ) | 1,843 | 2,913 | (3 | ) | — | (33,084 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 44,819 | 3,383 | 496 | 108 | — | 48,806 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 6,982 | 5,226 | 3,409 | 105 | — | $ | 15,722 | |||||||||||||
Segment_financial_information_
Segment financial information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of segment financial information | ' | ||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 766,109 | $ | 65,058 | $ | 62 | $ | 831,229 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 766,115 | 65,058 | 56 | 831,229 | |||||||||||||
Income (loss) before income taxes | 57,373 | 22,808 | (8,633 | ) | 71,548 | ||||||||||||
Income taxes (benefit) | 19,058 | 7,532 | (3,749 | ) | 22,841 | ||||||||||||
Net income (loss) | 38,315 | 15,276 | (4,884 | ) | 48,707 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 37,817 | 15,276 | (4,857 | ) | 48,236 | ||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Revenues from external customers | $ | 2,216,058 | $ | 195,841 | $ | 124 | $ | 2,412,023 | |||||||||
Intersegment revenues (eliminations) | 18 | — | (18 | ) | — | ||||||||||||
Revenues | 2,216,076 | 195,841 | 106 | 2,412,023 | |||||||||||||
Income (loss) before income taxes | 144,212 | 69,265 | (24,400 | ) | 189,077 | ||||||||||||
Income taxes (benefit) | 51,777 | 23,915 | (10,535 | ) | 65,157 | ||||||||||||
Net income (loss) | 92,435 | 45,350 | (13,865 | ) | 123,920 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 90,939 | 45,350 | (13,786 | ) | 122,503 | ||||||||||||
Assets (at September 30, 2013) | 5,269,758 | 5,159,372 | (118 | ) | 10,429,012 | ||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||
Revenues from external customers | $ | 801,089 | $ | 66,596 | $ | 35 | $ | 867,720 | |||||||||
Intersegment revenues (eliminations) | 6 | — | (6 | ) | — | ||||||||||||
Revenues | 801,095 | 66,596 | 29 | 867,720 | |||||||||||||
Income (loss) before income taxes | 61,268 | 21,627 | (8,914 | ) | 73,981 | ||||||||||||
Income taxes (benefit) | 22,395 | 7,419 | (4,010 | ) | 25,804 | ||||||||||||
Net income (loss) | 38,873 | 14,208 | (4,904 | ) | 48,177 | ||||||||||||
Preferred stock dividends of subsidiaries | 498 | — | (27 | ) | 471 | ||||||||||||
Net income (loss) for common stock | 38,375 | 14,208 | (4,877 | ) | 47,706 | ||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||
Revenues from external customers | $ | 2,340,202 | $ | 196,569 | $ | 77 | $ | 2,536,848 | |||||||||
Intersegment revenues (eliminations) | 55 | — | (55 | ) | — | ||||||||||||
Revenues | 2,340,257 | 196,569 | 22 | 2,536,848 | |||||||||||||
Income (loss) before income taxes | 154,976 | 66,964 | (25,775 | ) | 196,165 | ||||||||||||
Income taxes (benefit) | 58,429 | 22,690 | (11,193 | ) | 69,926 | ||||||||||||
Net income (loss) | 96,547 | 44,274 | (14,582 | ) | 126,239 | ||||||||||||
Preferred stock dividends of subsidiaries | 1,496 | — | (79 | ) | 1,417 | ||||||||||||
Net income (loss) for common stock | 95,051 | 44,274 | (14,503 | ) | 124,822 | ||||||||||||
Assets (at December 31, 2012) | 5,108,793 | 5,041,673 | (1,334 | ) | 10,149,132 | ||||||||||||
Bank_subsidiary_Tables
Bank subsidiary (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Bank subsidiary | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of statements of income data | ' | ||||||||||||||||||||||||||||||||||||||||
Selected financial information | |||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 43,337 | $ | 43,880 | $ | 129,564 | $ | 133,241 | |||||||||||||||||||||||||||||||||
Interest and dividend on investment and mortgage-related securities | 3,025 | 3,432 | 9,723 | 10,534 | |||||||||||||||||||||||||||||||||||||
Total interest and dividend income | 46,362 | 47,312 | 139,287 | 143,775 | |||||||||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||||||
Interest on deposit liabilities | 1,262 | 1,540 | 3,870 | 5,015 | |||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 1,206 | 1,201 | 3,548 | 3,676 | |||||||||||||||||||||||||||||||||||||
Total interest expense | 2,468 | 2,741 | 7,418 | 8,691 | |||||||||||||||||||||||||||||||||||||
Net interest income | 43,894 | 44,571 | 131,869 | 135,084 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 54 | 3,580 | 953 | 9,504 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 43,840 | 40,991 | 130,916 | 125,580 | |||||||||||||||||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||||||||||||||||
Fees from other financial services | 5,728 | 7,674 | 21,367 | 22,474 | |||||||||||||||||||||||||||||||||||||
Fee income on deposit liabilities | 4,819 | 4,527 | 13,566 | 13,127 | |||||||||||||||||||||||||||||||||||||
Fee income on other financial products | 2,714 | 1,660 | 6,288 | 4,741 | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | 1,547 | 4,077 | 6,896 | 8,297 | |||||||||||||||||||||||||||||||||||||
Gain on sale of securities | — | — | 1,226 | 134 | |||||||||||||||||||||||||||||||||||||
Other income | 3,888 | 1,346 | 7,211 | 4,021 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 18,696 | 19,284 | 56,554 | 52,794 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 20,564 | 18,684 | 60,715 | 56,026 | |||||||||||||||||||||||||||||||||||||
Occupancy | 4,208 | 4,400 | 12,550 | 12,866 | |||||||||||||||||||||||||||||||||||||
Data processing | 2,168 | 2,644 | 7,982 | 7,244 | |||||||||||||||||||||||||||||||||||||
Services | 2,424 | 3,062 | 6,855 | 7,066 | |||||||||||||||||||||||||||||||||||||
Equipment | 1,825 | 1,762 | 5,469 | 5,299 | |||||||||||||||||||||||||||||||||||||
Other expense | 8,539 | 8,096 | 24,634 | 22,909 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 39,728 | 38,648 | 118,205 | 111,410 | |||||||||||||||||||||||||||||||||||||
Income before income taxes | 22,808 | 21,627 | 69,265 | 66,964 | |||||||||||||||||||||||||||||||||||||
Income taxes | 7,532 | 7,419 | 23,915 | 22,690 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 15,276 | $ | 14,208 | $ | 45,350 | $ | 44,274 | |||||||||||||||||||||||||||||||||
Schedule of statements of comprehensive income data | ' | ||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income Data | |||||||||||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 15,276 | $ | 14,208 | $ | 45,350 | $ | 44,274 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | (1,589 | ) | 1,043 | (10,724 | ) | 1,910 | |||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | — | — | (738 | ) | (81 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||||||||||||||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $278 and $176 for the three months ended September 30, 2013 and 2012 and $2,010 and $508 for the nine months ended September 30, 2013 and 2012, respectively | 420 | 266 | 3,043 | 769 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (1,169 | ) | 1,309 | (8,419 | ) | 2,598 | |||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 14,107 | $ | 15,517 | $ | 36,931 | $ | 46,872 | |||||||||||||||||||||||||||||||||
Schedule of balance sheets data | ' | ||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets Data | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 189,524 | $ | 184,430 | |||||||||||||||||||||||||||||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | 671,358 | |||||||||||||||||||||||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | 96,022 | |||||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 4,046,184 | 3,779,218 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (41,052 | ) | (41,985 | ) | |||||||||||||||||||||||||||||||||||||
Loans receivable held for investment, net | 4,005,132 | 3,737,233 | |||||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 5,829 | 26,005 | |||||||||||||||||||||||||||||||||||||||
Other | 248,020 | 244,435 | |||||||||||||||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,159,372 | $ | 5,041,673 | |||||||||||||||||||||||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||||||||||||||||||||||
Deposit liabilities—noninterest-bearing | $ | 1,205,526 | $ | 1,164,308 | |||||||||||||||||||||||||||||||||||||
Deposit liabilities—interest-bearing | 3,105,316 | 3,065,608 | |||||||||||||||||||||||||||||||||||||||
Other borrowings | 239,612 | 195,926 | |||||||||||||||||||||||||||||||||||||||
Other | 102,172 | 117,752 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 4,652,626 | 4,543,594 | |||||||||||||||||||||||||||||||||||||||
Commitments and contingencies (see “Litigation” below) | |||||||||||||||||||||||||||||||||||||||||
Common stock | 335,448 | 333,712 | |||||||||||||||||||||||||||||||||||||||
Retained earnings | 195,113 | 179,763 | |||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), net of taxes | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | (701 | ) | $ | 10,761 | ||||||||||||||||||||||||||||||||||||
Retirement benefit plans | (23,114 | ) | (23,815 | ) | (26,157 | ) | (15,396 | ) | |||||||||||||||||||||||||||||||||
Total shareholder’s equity | 506,746 | 498,079 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,159,372 | $ | 5,041,673 | |||||||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | $ | 128,833 | $ | 125,726 | |||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 67,634 | 62,458 | |||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 4,394 | 13,199 | |||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,372 | 13,228 | |||||||||||||||||||||||||||||||||||||||
Mortgage-servicing rights | 11,806 | 10,818 | |||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans, net | 1,488 | 6,050 | |||||||||||||||||||||||||||||||||||||||
Other | 20,493 | 12,956 | |||||||||||||||||||||||||||||||||||||||
$ | 248,020 | $ | 244,435 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Accrued expenses | $ | 20,463 | $ | 17,103 | |||||||||||||||||||||||||||||||||||||
Federal and state income taxes payable | 30,249 | 35,408 | |||||||||||||||||||||||||||||||||||||||
Cashier’s checks | 24,183 | 23,478 | |||||||||||||||||||||||||||||||||||||||
Advance payments by borrowers | 5,694 | 9,685 | |||||||||||||||||||||||||||||||||||||||
Other | 21,583 | 32,078 | |||||||||||||||||||||||||||||||||||||||
$ | 102,172 | $ | 117,752 | ||||||||||||||||||||||||||||||||||||||
Schedule of information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Gross amount of | Gross amount offset in | Net amount of liabilities presented | ||||||||||||||||||||||||||||||||||||||
recognized liabilities | the Balance Sheet | in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | $ | 140 | $ | — | $ | 140 | |||||||||||||||||||||||||||||||||||
31-Dec-12 | 146 | — | 146 | ||||||||||||||||||||||||||||||||||||||
Gross amount not offset in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Net amount of | Financial | Cash | Net amount | |||||||||||||||||||||||||||||||||||||
liabilities presented | instruments | collateral | |||||||||||||||||||||||||||||||||||||||
in the Balance Sheet | pledged | ||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Commercial account holders | 90 | 90 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 140 | $ | 140 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Commercial account holders | 96 | 96 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 146 | $ | 146 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Schedule of the book value and aggregate fair value by major security type | ' | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities. The book value (amortized cost), gross unrealized gains and losses, estimated fair value and gross unrealized losses (fair value and amount by duration of time in which positions have been held in a continuous loss position) for securities held in ASB’s “available-for-sale” portfolio by major security type were as follows: | |||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair | Gross unrealized losses | |||||||||||||||||||||||||||||||||||||
value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Fair value | Amount | Fair value | Amount | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 99,812 | $ | 389 | $ | (1,936 | ) | $ | 98,265 | $ | 29,755 | $ | (1,936 | ) | $ | — | $ | — | |||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 359,437 | 6,308 | (7,768 | ) | 357,977 | 164,998 | (7,620 | ) | 3,910 | (148 | ) | ||||||||||||||||||||||||||||||
Municipal bonds | 77,181 | 2,034 | (193 | ) | 79,022 | 26,526 | (193 | ) | — | — | |||||||||||||||||||||||||||||||
$ | 536,430 | $ | 8,731 | $ | (9,897 | ) | $ | 535,264 | $ | 221,279 | $ | (9,749 | ) | $ | 3,910 | $ | (148 | ) | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 168,324 | $ | 3,167 | $ | — | $ | 171,491 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 407,175 | 10,412 | (204 | ) | 417,383 | 32,269 | (204 | ) | — | — | |||||||||||||||||||||||||||||||
Municipal bonds | 77,993 | 4,491 | — | 82,484 | — | — | — | — | |||||||||||||||||||||||||||||||||
$ | 653,492 | $ | 18,070 | $ | (204 | ) | $ | 671,358 | $ | 32,269 | $ | (204 | ) | $ | — | $ | — | ||||||||||||||||||||||||
Schedule of contractual maturities of available-for-sale securities | ' | ||||||||||||||||||||||||||||||||||||||||
The following table details the contractual maturities of available-for-sale securities. All positions with variable maturities (e.g. callable debentures and mortgage-related securities) are disclosed based upon the bond’s contractual maturity. Actual maturities will likely differ from these contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Amortized cost | Fair value | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 28,120 | $ | 28,143 | |||||||||||||||||||||||||||||||||||||
Due after one year through five years | 37,922 | 38,324 | |||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 85,760 | 87,192 | |||||||||||||||||||||||||||||||||||||||
Due after ten years | 25,191 | 23,628 | |||||||||||||||||||||||||||||||||||||||
176,993 | 177,287 | ||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA,FHLMC and GNMA | 359,437 | 357,977 | |||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 536,430 | $ | 535,264 | |||||||||||||||||||||||||||||||||||||
Schedule of allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||||||
The allowance for loan losses (balances and changes) and financing receivables were as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Residential | Commercial real | Home | Residential land | Commercial construction | Residential construction | Commercial loans | Consumer loans | Unallocated | Total | |||||||||||||||||||||||||||||||
1-4 family | estate | equity line of credit | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,357 | $ | 4,117 | $ | 5,009 | $ | 2,187 | $ | 2,305 | $ | 14 | $ | 16,307 | $ | 2,399 | $ | 2,309 | $ | 41,004 | |||||||||||||||||||||
Charge-offs | (106 | ) | — | (44 | ) | (3 | ) | — | — | (305 | ) | (407 | ) | — | (865 | ) | |||||||||||||||||||||||||
Recoveries | 157 | — | 78 | 282 | — | — | 166 | 176 | — | 859 | |||||||||||||||||||||||||||||||
Provision | (604 | ) | 204 | 12 | (361 | ) | 44 | 2 | (361 | ) | 42 | 1,076 | 54 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 7,212 | $ | 2,078 | $ | 4,843 | $ | 3,340 | $ | 2,255 | $ | 3 | $ | 13,961 | $ | 3,797 | $ | 1,974 | $ | 39,463 | |||||||||||||||||||||
Charge-offs | (964 | ) | — | (363 | ) | (1,093 | ) | — | — | (1,130 | ) | (601 | ) | — | (4,151 | ) | |||||||||||||||||||||||||
Recoveries | 379 | — | 7 | 226 | — | — | 155 | 151 | — | 918 | |||||||||||||||||||||||||||||||
Provision | 100 | 4 | 378 | 1,324 | (324 | ) | 5 | 1,344 | 462 | 287 | 3,580 | ||||||||||||||||||||||||||||||
Ending balance | $ | 6,727 | $ | 2,082 | $ | 4,865 | $ | 3,797 | $ | 1,931 | $ | 8 | $ | 14,330 | $ | 3,809 | $ | 2,261 | $ | 39,810 | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,068 | $ | 2,965 | $ | 4,493 | $ | 4,275 | $ | 2,023 | $ | 9 | $ | 15,931 | $ | 4,019 | $ | 2,202 | $ | 41,985 | |||||||||||||||||||||
Charge-offs | (1,162 | ) | — | (782 | ) | (238 | ) | — | — | (1,655 | ) | (1,811 | ) | — | (5,648 | ) | |||||||||||||||||||||||||
Recoveries | 1,382 | — | 334 | 782 | — | — | 778 | 486 | — | 3,762 | |||||||||||||||||||||||||||||||
Provision | (484 | ) | 1,356 | 1,010 | (2,714 | ) | 326 | 7 | 753 | (484 | ) | 1,183 | 953 | ||||||||||||||||||||||||||||
Ending balance | $ | 5,804 | $ | 4,321 | $ | 5,055 | $ | 2,105 | $ | 2,349 | $ | 16 | $ | 15,807 | $ | 2,210 | $ | 3,385 | $ | 41,052 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 944 | $ | 888 | $ | — | $ | 1,585 | $ | — | $ | — | $ | 2,679 | $ | — | $ | — | $ | 6,096 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,860 | $ | 3,433 | $ | 5,055 | $ | 520 | $ | 2,349 | $ | 16 | $ | 13,128 | $ | 2,210 | $ | 3,385 | $ | 34,956 | |||||||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,015,082 | $ | 405,037 | $ | 703,210 | $ | 18,400 | $ | 51,067 | $ | 10,460 | $ | 749,733 | $ | 102,400 | $ | — | $ | 4,055,389 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 22,123 | $ | 4,484 | $ | 960 | $ | 12,747 | $ | — | $ | — | $ | 22,777 | $ | 19 | $ | — | $ | 63,110 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,992,959 | $ | 400,553 | $ | 702,250 | $ | 5,653 | $ | 51,067 | $ | 10,460 | $ | 726,956 | $ | 102,381 | $ | — | $ | 3,992,279 | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,500 | $ | 1,688 | $ | 4,354 | $ | 3,795 | $ | 1,888 | $ | 4 | $ | 14,867 | $ | 3,806 | $ | 1,004 | $ | 37,906 | |||||||||||||||||||||
Charge-offs | (2,476 | ) | — | (402 | ) | (2,340 | ) | — | — | (2,964 | ) | (1,853 | ) | — | (10,035 | ) | |||||||||||||||||||||||||
Recoveries | 974 | — | 95 | 471 | — | — | 511 | 384 | — | 2,435 | |||||||||||||||||||||||||||||||
Provision | 1,729 | 394 | 818 | 1,871 | 43 | 4 | 1,916 | 1,472 | 1,257 | 9,504 | |||||||||||||||||||||||||||||||
Ending balance | $ | 6,727 | $ | 2,082 | $ | 4,865 | $ | 3,797 | $ | 1,931 | $ | 8 | $ | 14,330 | $ | 3,809 | $ | 2,261 | $ | 39,810 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 324 | $ | 7 | $ | 313 | $ | 2,321 | $ | — | $ | — | $ | 1,656 | $ | — | $ | — | $ | 4,621 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 6,403 | $ | 2,075 | $ | 4,552 | $ | 1,476 | $ | 1,931 | $ | 8 | $ | 12,674 | $ | 3,809 | $ | 2,261 | $ | 35,189 | |||||||||||||||||||||
Financing Receivables: | 0 | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 1,899,580 | $ | 367,765 | $ | 604,279 | $ | 29,280 | $ | 42,913 | $ | 5,648 | $ | 704,100 | $ | 104,338 | $ | — | $ | 3,757,903 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 26,912 | $ | 2,929 | $ | 1,913 | $ | 25,146 | $ | — | $ | — | $ | 17,956 | $ | 22 | $ | — | $ | 74,878 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,872,668 | $ | 364,836 | $ | 602,366 | $ | 4,134 | $ | 42,913 | $ | 5,648 | $ | 686,144 | $ | 104,316 | $ | — | $ | 3,683,025 | |||||||||||||||||||||
Schedule of credit risk profile by internally assigned grade for loans | ' | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile by internally assigned grade for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | |||||||||||||||||||||||||||||||||||
real estate | construction | real estate | construction | ||||||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 332,407 | $ | 51,067 | $ | 661,720 | $ | 314,182 | $ | 39,063 | $ | 638,854 | |||||||||||||||||||||||||||||
Special mention | 40,437 | — | 18,948 | 25,437 | 4,925 | 24,511 | |||||||||||||||||||||||||||||||||||
Substandard | 28,403 | — | 65,571 | 29,308 | — | 53,538 | |||||||||||||||||||||||||||||||||||
Doubtful | 3,790 | — | 3,494 | 6,750 | — | 4,446 | |||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 405,037 | $ | 51,067 | $ | 749,733 | $ | 375,677 | $ | 43,988 | $ | 721,349 | |||||||||||||||||||||||||||||
Schedule of credit risk profile based on payment activity for loans | ' | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile based on payment activity for loans was as follows: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||||||||||
days | days | than | past due | financing | investment> | ||||||||||||||||||||||||||||||||||||
past due | past due | 90 days | receivables | 90 days and | |||||||||||||||||||||||||||||||||||||
accruing | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 3,026 | $ | 1,599 | $ | 15,060 | $ | 19,685 | $ | 1,995,397 | $ | 2,015,082 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | 3,790 | 3,790 | 401,247 | 405,037 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 658 | 373 | 880 | 1,911 | 701,299 | 703,210 | — | ||||||||||||||||||||||||||||||||||
Residential land | 684 | 80 | 5,352 | 6,116 | 12,284 | 18,400 | 1,746 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 51,067 | 51,067 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 10,460 | 10,460 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 1,026 | 166 | 4,105 | 5,297 | 744,436 | 749,733 | — | ||||||||||||||||||||||||||||||||||
Consumer loans | 420 | 212 | 182 | 814 | 101,586 | 102,400 | — | ||||||||||||||||||||||||||||||||||
Total loans | $ | 5,814 | $ | 2,430 | $ | 29,369 | $ | 37,613 | $ | 4,017,776 | $ | 4,055,389 | $ | 1,746 | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,353 | $ | 1,741 | $ | 24,054 | $ | 32,148 | $ | 1,834,302 | $ | 1,866,450 | $ | — | |||||||||||||||||||||||||||
Commercial real estate | 85 | — | 6,750 | 6,835 | 368,842 | 375,677 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,077 | 142 | 1,319 | 2,538 | 627,637 | 630,175 | — | ||||||||||||||||||||||||||||||||||
Residential land | 2,851 | 75 | 7,788 | 10,714 | 15,101 | 25,815 | — | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 43,988 | 43,988 | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 6,171 | 6,171 | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 3,052 | 2,814 | 1,098 | 6,964 | 714,385 | 721,349 | 131 | ||||||||||||||||||||||||||||||||||
Consumer loans | 598 | 348 | 424 | 1,370 | 119,861 | 121,231 | 242 | ||||||||||||||||||||||||||||||||||
Total loans | $ | 14,016 | $ | 5,120 | $ | 41,433 | $ | 60,569 | $ | 3,730,287 | $ | 3,790,856 | $ | 373 | |||||||||||||||||||||||||||
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due | ' | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile based on nonaccrual loans and accruing loans 90 days or more past due was as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Nonaccrual | Accruing loans | Nonaccrual | Accruing loans | |||||||||||||||||||||||||||||||||||||
loans | 90 days or | loans | 90 days or | ||||||||||||||||||||||||||||||||||||||
more past due | more past due | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 18,908 | $ | — | $ | 26,721 | $ | — | |||||||||||||||||||||||||||||||||
Commercial real estate | 4,483 | — | 6,750 | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,948 | — | 2,349 | — | |||||||||||||||||||||||||||||||||||||
Residential land | 3,606 | 1,746 | 8,561 | — | |||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 21,308 | — | 20,222 | 131 | |||||||||||||||||||||||||||||||||||||
Consumer loans | 519 | — | 284 | 242 | |||||||||||||||||||||||||||||||||||||
Total | $ | 50,772 | $ | 1,746 | $ | 64,887 | $ | 373 | |||||||||||||||||||||||||||||||||
Schedule of the carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loans losses | ' | ||||||||||||||||||||||||||||||||||||||||
The total carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loan losses and combined, were as follows: | |||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||
investment | principal | Allowance | recorded | income | recorded | income | |||||||||||||||||||||||||||||||||||
balance | investment | recognized* | investment | recognized* | |||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 10,121 | $ | 13,122 | $ | — | $ | 9,777 | $ | 62 | $ | 12,304 | $ | 294 | |||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | 1,069 | — | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 523 | 1,068 | — | 526 | — | 606 | — | ||||||||||||||||||||||||||||||||||
Residential land | 5,734 | 6,712 | — | 6,095 | 216 | 7,477 | 435 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 6,311 | 8,624 | — | 4,941 | 7 | 4,518 | 8 | ||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | 20 | — | ||||||||||||||||||||||||||||||||||
22,708 | 29,545 | — | 21,359 | 285 | 25,994 | 737 | |||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 7,147 | 7,167 | 943 | 7,155 | 83 | 6,411 | 259 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 4,484 | 4,536 | 888 | 4,028 | — | 6,157 | 151 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential land | 6,101 | 6,228 | 1,585 | 6,105 | 102 | 7,123 | 304 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 16,466 | 17,978 | 2,679 | 16,524 | 67 | 15,606 | 72 | ||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
34,198 | 35,909 | 6,095 | 33,812 | 252 | 35,297 | 786 | |||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 17,268 | 20,289 | 943 | 16,932 | 145 | 18,715 | 553 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 4,484 | 4,536 | 888 | 4,028 | — | 7,226 | 151 | ||||||||||||||||||||||||||||||||||
Home equity line of credit | 523 | 1,068 | — | 526 | — | 606 | — | ||||||||||||||||||||||||||||||||||
Residential land | 11,835 | 12,940 | 1,585 | 12,200 | 318 | 14,600 | 739 | ||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial loans | 22,777 | 26,602 | 2,679 | 21,465 | 74 | 20,124 | 80 | ||||||||||||||||||||||||||||||||||
Consumer loans | 19 | 19 | — | 20 | — | 20 | — | ||||||||||||||||||||||||||||||||||
$ | 56,906 | $ | 65,454 | $ | 6,095 | $ | 55,171 | $ | 537 | $ | 61,291 | $ | 1,523 | ||||||||||||||||||||||||||||
31-Dec-12 | Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||||||
investment | principal | allowance | recorded | income | |||||||||||||||||||||||||||||||||||||
balance | investment | recognized* | |||||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 14,633 | $ | 20,247 | $ | — | $ | 16,688 | $ | 294 | |||||||||||||||||||||||||||||||
Commercial real estate | 2,929 | 2,929 | — | 7,771 | 237 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 581 | 1,374 | — | 632 | 1 | ||||||||||||||||||||||||||||||||||||
Residential land | 7,691 | 10,624 | — | 21,589 | 1,185 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 4,265 | 6,994 | — | 24,605 | 986 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 21 | 21 | — | 23 | — | ||||||||||||||||||||||||||||||||||||
30,120 | 42,189 | — | 71,308 | 2,703 | |||||||||||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 4,803 | 4,803 | 384 | 4,204 | 250 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 3,821 | 3,840 | 535 | 1,295 | — | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | 26 | — | ||||||||||||||||||||||||||||||||||||
Residential land | 9,984 | 10,364 | 3,221 | 7,428 | 575 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 16,033 | 16,912 | 2,659 | 8,429 | 23 | ||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
34,641 | 35,919 | 6,799 | 21,382 | 848 | |||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 19,436 | 25,050 | 384 | 20,892 | 544 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 6,750 | 6,769 | 535 | 9,066 | 237 | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | 581 | 1,374 | — | 658 | 1 | ||||||||||||||||||||||||||||||||||||
Residential land | 17,675 | 20,988 | 3,221 | 29,017 | 1,760 | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial loans | 20,298 | 23,906 | 2,659 | 33,034 | 1,009 | ||||||||||||||||||||||||||||||||||||
Consumer loans | 21 | 21 | — | 23 | — | ||||||||||||||||||||||||||||||||||||
$ | 64,761 | $ | 78,108 | $ | 6,799 | $ | 92,690 | $ | 3,551 | ||||||||||||||||||||||||||||||||
___________________________________________ | |||||||||||||||||||||||||||||||||||||||||
* Since loan was classified as impaired. | |||||||||||||||||||||||||||||||||||||||||
Schedule of loan modifications | ' | ||||||||||||||||||||||||||||||||||||||||
Loan modifications that occurred were as follows for the indicated periods: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 14 | $ | 2,864 | $ | 2,874 | 32 | $ | 8,631 | $ | 8,712 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | 4 | 462 | 215 | |||||||||||||||||||||||||||||||||||
Residential land | 9 | 2,943 | 2,943 | 16 | 4,983 | 4,974 | |||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 2,076 | 2,076 | 6 | 2,790 | 2,790 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
26 | $ | 7,883 | $ | 7,893 | 58 | $ | 16,866 | $ | 16,691 | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
Number of | Outstanding recorded investment | Number of | Outstanding recorded investment | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | contracts | Pre-modification | Post-modification | contracts | Pre-modification | Post-modification | |||||||||||||||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 4 | $ | 1,415 | $ | 1,332 | 26 | $ | 5,884 | $ | 5,614 | |||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Residential land | 6 | 1,168 | 1,001 | 21 | 4,676 | 4,022 | |||||||||||||||||||||||||||||||||||
Commercial loans | 4 | 517 | 517 | 18 | 2,546 | 2,546 | |||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
14 | $ | 3,100 | $ | 2,850 | 65 | $ | 13,106 | $ | 12,182 | ||||||||||||||||||||||||||||||||
Schedule of loans modified in TDRS that experienced a payment default of 90 days or more, and for which payment default occurred within one year of the modification | ' | ||||||||||||||||||||||||||||||||||||||||
Loans modified in TDRs that experienced a payment default of 90 days or more in 2013 and 2012, and for which the payment default occurred within one year of the modification, were as follows: | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1 | 67 | 1 | 67 | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | 3 | 669 | 3 | 669 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
4 | $ | 736 | 4 | $ | 736 | ||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that | |||||||||||||||||||||||||||||||||||||||||
subsequently defaulted | |||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | |||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Commercial loans | — | — | 1 | 488 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
— | $ | — | 1 | $ | 488 | ||||||||||||||||||||||||||||||||||||
Retirement_benefits_Tables
Retirement benefits (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for consolidated HEI | ' | ||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for consolidated HEI were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 14,097 | $ | 10,816 | $ | 1,077 | $ | 1,054 | $ | 42,307 | $ | 32,404 | $ | 3,229 | $ | 3,158 | |||||||||||||||||
Interest cost | 16,187 | 16,868 | 1,891 | 2,252 | 48,600 | 50,612 | 5,677 | 6,756 | |||||||||||||||||||||||||
Expected return on plan assets | (18,134 | ) | (17,796 | ) | (2,531 | ) | (2,579 | ) | (54,401 | ) | (53,388 | ) | (7,614 | ) | (7,757 | ) | |||||||||||||||||
Amortization of net transition obligation | — | 1 | — | — | — | 1 | — | — | |||||||||||||||||||||||||
Amortization of net prior service gain | (24 | ) | (81 | ) | (448 | ) | (448 | ) | (73 | ) | (244 | ) | (1,345 | ) | (1,345 | ) | |||||||||||||||||
Amortization of net actuarial loss | 9,560 | 6,425 | 398 | 373 | 28,878 | 19,251 | 1,203 | 1,125 | |||||||||||||||||||||||||
Net periodic benefit cost | 21,686 | 16,233 | 387 | 652 | 65,311 | 48,636 | 1,150 | 1,937 | |||||||||||||||||||||||||
Impact of PUC D&Os | (9,257 | ) | (3,460 | ) | (332 | ) | (552 | ) | (28,847 | ) | (12,294 | ) | (1,018 | ) | (1,648 | ) | |||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 12,429 | $ | 12,773 | $ | 55 | $ | 100 | $ | 36,464 | $ | 36,342 | $ | 132 | $ | 289 | |||||||||||||||||
Sharebased_compensation_Tables
Share-based compensation (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of share-based compensation expense and related income tax benefit | ' | |||||||||||||||||||||||||||||||
The Company’s share-based compensation expense and related income tax benefit were as follows: | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Share-based compensation expense (1) | $ | 2.5 | $ | 1.4 | $ | 6 | $ | 5.4 | ||||||||||||||||||||||||
Income tax benefit | 0.9 | 0.5 | 2.2 | 1.9 | ||||||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | The Company has not capitalized any share-based compensation cost. | |||||||||||||||||||||||||||||||
Schedule of nonqualified stock options activity and statistics | ' | |||||||||||||||||||||||||||||||
NQSO activity and statistics were as follows: | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
(dollars in thousands, except prices) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Shares exercised | — | 8,000 | 14,000 | 41,500 | ||||||||||||||||||||||||||||
Weighted-average exercise price | $ | — | $ | 20.49 | $ | 20.49 | $ | 21.06 | ||||||||||||||||||||||||
Cash received from exercise | $ | — | $ | 164 | $ | 287 | $ | 874 | ||||||||||||||||||||||||
Intrinsic value of shares exercised (1) | $ | — | $ | 89 | $ | 128 | $ | 354 | ||||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | $ | — | $ | 35 | $ | 50 | $ | 138 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
(1) Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option. | ||||||||||||||||||||||||||||||||
Schedule of stock appreciation rights by grant year | ' | |||||||||||||||||||||||||||||||
Stock appreciation rights. Information about HEI’s SARs was as follows: | ||||||||||||||||||||||||||||||||
30-Sep-13 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||||||||||
Year of | Range of | Number of shares | Weighted-average | Weighted-average | ||||||||||||||||||||||||||||
grant | exercise prices | underlying SARs | remaining | exercise price | ||||||||||||||||||||||||||||
contractual life | ||||||||||||||||||||||||||||||||
2004 | $26.02 | 62,000 | 0.6 | $ | 26.02 | |||||||||||||||||||||||||||
2005 | 26.18 | 102,000 | 1.5 | 26.18 | ||||||||||||||||||||||||||||
$26.02-26.18 | 164,000 | 1.2 | $ | 26.12 | ||||||||||||||||||||||||||||
Schedule of stock appreciation rights activity and statistics | ' | |||||||||||||||||||||||||||||||
SARs activity and statistics were as follows: | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
(dollars in thousands, except prices) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Shares underlying SARS exercised | — | 2,000 | — | 114,000 | ||||||||||||||||||||||||||||
Weighted-average price of shares exercised | — | $ | 26.18 | — | $ | 26.17 | ||||||||||||||||||||||||||
Intrinsic value of shares exercised (1) | — | $ | 3 | — | $ | 197 | ||||||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | — | $ | 1 | — | $ | 77 | ||||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalent rights exceeds the exercise price of the right. | |||||||||||||||||||||||||||||||
Schedule of restricted share and stock awards | ' | |||||||||||||||||||||||||||||||
Restricted shares and restricted stock awards. Information about HEI’s grants of restricted shares and restricted stock awards was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 9,005 | $ | 22.21 | 14,807 | $ | 22.45 | 9,005 | $ | 22.21 | 46,807 | $ | 24.45 | ||||||||||||||||||||
Granted | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Vested | — | — | (1,000 | ) | 24.68 | — | — | (33,000 | ) | 25.35 | ||||||||||||||||||||||
Forfeited | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Outstanding, end of period | 9,005 | $ | 22.21 | 13,807 | $ | 22.29 | 9,005 | $ | 22.21 | 13,807 | $ | 22.29 | ||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the closing or average price of HEI common stock on the date of grant. | |||||||||||||||||||||||||||||||
Schedule of restricted stock units | ' | |||||||||||||||||||||||||||||||
Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 300,313 | $ | 25.15 | 319,071 | $ | 22.81 | 315,094 | $ | 22.82 | 247,286 | $ | 21.8 | ||||||||||||||||||||
Granted | 4,000 | 26.48 | — | — | 111,231 | 26.88 | 94,846 | 26 | ||||||||||||||||||||||||
Vested | (2,500 | ) | 22.31 | (2,500 | ) | 22.31 | (116,544 | ) | 20.39 | (23,997 | ) | 24.69 | ||||||||||||||||||||
Forfeited | (11,321 | ) | 25.88 | (3,346 | ) | 24.63 | (19,289 | ) | 25.62 | (4,910 | ) | 24.92 | ||||||||||||||||||||
Outstanding, end of period | 290,492 | $ | 25.16 | 313,225 | $ | 22.8 | 290,492 | $ | 25.16 | 313,225 | $ | 22.8 | ||||||||||||||||||||
$ millions | $ millions | $ millions | $ millions | |||||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted | $ | 0.1 | $ | — | $ | 3 | $ | 2.5 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. | |||||||||||||||||||||||||||||||
Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders | ' | |||||||||||||||||||||||||||||||
LTIP linked to TRS. Information about HEI’s LTIP grants linked to TRS was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 235,064 | $ | 32.87 | 239,407 | $ | 29.12 | 239,256 | $ | 29.12 | 197,385 | $ | 25.94 | ||||||||||||||||||||
Granted | 1,505 | 32.69 | 1,723 | 30.71 | 91,038 | 32.69 | 80,647 | 30.71 | ||||||||||||||||||||||||
Vested (settled or lapsed) | — | — | — | — | (87,753 | ) | 22.45 | (35,397 | ) | 14.85 | ||||||||||||||||||||||
Forfeited | (4,442 | ) | 32.4 | (2,450 | ) | 31.09 | (10,414 | ) | 32.72 | (3,955 | ) | 30.82 | ||||||||||||||||||||
Outstanding, end of period | 232,127 | $ | 32.88 | 238,680 | $ | 29.11 | 232,127 | $ | 32.88 | 238,680 | $ | 29.11 | ||||||||||||||||||||
$ millions | $ millions | $ millions | $ millions | |||||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted | $ | — | $ | 0.1 | $ | 3 | $ | 2.5 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. | |||||||||||||||||||||||||||||||
Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS) | ' | |||||||||||||||||||||||||||||||
The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TRS and the resulting fair value of LTIP awards granted: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Risk-free interest rate | 0.38 | % | 0.33 | % | ||||||||||||||||||||||||||||
Expected life in years | 3 | 3 | ||||||||||||||||||||||||||||||
Expected volatility | 19.4 | % | 25.3 | % | ||||||||||||||||||||||||||||
Range of expected volatility for Peer Group | 12.4% to 25.3% | 15.5% to 34.5% | ||||||||||||||||||||||||||||||
Grant date fair value (per share) | $ | 32.69 | $ | 30.71 | ||||||||||||||||||||||||||||
Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions | ' | |||||||||||||||||||||||||||||||
LTIP awards linked to other performance conditions. Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: | ||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||||||||
Outstanding, beginning of period | 304,473 | $ | 26.12 | 295,184 | $ | 23.95 | 247,175 | $ | 25.04 | 182,498 | $ | 22.63 | ||||||||||||||||||||
Granted | 1,504 | 27.11 | 4,148 | 27.3 | 120,399 | 26.89 | 122,852 | 26.05 | ||||||||||||||||||||||||
Vested and settled | — | — | — | — | (18,280 | ) | 18.95 | — | — | |||||||||||||||||||||||
Cancelled | — | — | (17,911 | ) | 18.95 | (37,346 | ) | 24.96 | (17,911 | ) | 18.95 | |||||||||||||||||||||
Forfeited | (4,881 | ) | 26.53 | (3,676 | ) | 24.78 | (10,852 | ) | 26.2 | (9,694 | ) | 24.44 | ||||||||||||||||||||
Outstanding, end of period | 301,096 | $ | 26.12 | 277,745 | $ | 24.31 | 301,096 | $ | 26.12 | 277,745 | $ | 24.31 | ||||||||||||||||||||
$ millions | $ millions | $ millions | $ millions | |||||||||||||||||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) | $ | — | $ | 0.1 | $ | 3.2 | $ | 3.2 | ||||||||||||||||||||||||
___________________________________________ | ||||||||||||||||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Earnings_per_share_and_shareho1
Earnings per share and shareholders' equity (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Earnings per share and shareholders' equity | ' | ||||||||||||||||||||||
Schedule of earnings per share | ' | ||||||||||||||||||||||
Earnings per share. Under the two-class method of computing earnings per share (EPS), EPS was comprised as follows for both participating securities and unrestricted common stock: | |||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Basic | Diluted | Basic and | Basic | Diluted | Basic and | ||||||||||||||||||
diluted | diluted | ||||||||||||||||||||||
Distributed earnings | $ | 0.31 | 0.31 | $ | 0.31 | $ | 0.93 | $ | 0.93 | $ | 0.93 | ||||||||||||
Undistributed earnings | 0.18 | 0.17 | 0.18 | 0.31 | 0.3 | 0.36 | |||||||||||||||||
$ | 0.49 | 0.48 | $ | 0.49 | $ | 1.24 | $ | 1.23 | $ | 1.29 | |||||||||||||
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | ' | ||||||||||||||||||||||
Accumulated other comprehensive income. Reclassifications out of accumulated other comprehensive income/(loss) (AOCI) were as follows: | |||||||||||||||||||||||
Amount reclassified from AOCI | |||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | Affected line item in the Statement of Income | ||||||||||||||||||
Net realized gains on securities | $ | — | $ | — | $ | (738 | ) | $ | (81 | ) | Revenues-bank (net gains on sales of securities) | ||||||||||||
Derivatives qualified as cash flow hedges | |||||||||||||||||||||||
Interest rate contracts (settled in 2011) | 59 | 59 | 177 | 177 | Interest expense | ||||||||||||||||||
Retirement benefit plan items | |||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 5,789 | 3,826 | 17,490 | 11,467 | See Note 5 for additional details | ||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (5,156 | ) | (3,342 | ) | (15,468 | ) | (10,026 | ) | See Note 5 for additional details | ||||||||||||||
Total reclassifications | $ | 692 | $ | 543 | $ | 1,461 | $ | 1,537 | |||||||||||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Schedule of estimated fair values of certain of the Company's financial instruments | ' | ||||||||||||||||||||
The estimated fair values of certain of the Company’s financial instruments were as follows: | |||||||||||||||||||||
Carrying or | Estimated fair value | ||||||||||||||||||||
notional | |||||||||||||||||||||
(in thousands) | amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | — | 535,264 | — | 535,264 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | — | 93,413 | — | 93,413 | ||||||||||||||||
Loans receivable, net | 4,010,961 | — | — | 4,149,137 | 4,149,137 | ||||||||||||||||
Derivative assets | 24,196 | — | 558 | — | 558 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,310,842 | — | 4,313,560 | — | 4,313,560 | ||||||||||||||||
Short-term borrowings—other than bank | 131,341 | — | 131,341 | — | 131,341 | ||||||||||||||||
Other bank borrowings | 239,612 | — | 252,230 | — | 252,230 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,880 | — | 1,431,434 | — | 1,431,434 | ||||||||||||||||
Derivative liabilities | 22,185 | 202 | 73 | — | 275 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 671,358 | — | 671,358 | — | 671,358 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 96,022 | — | 96,022 | — | 96,022 | ||||||||||||||||
Loans receivable, net | 3,763,238 | — | — | 3,957,752 | 3,957,752 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,229,916 | — | 4,235,527 | — | 4,235,527 | ||||||||||||||||
Short-term borrowings—other than bank | 83,693 | — | 83,693 | — | 83,693 | ||||||||||||||||
Other bank borrowings | 195,926 | — | 212,163 | — | 212,163 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,872 | — | 1,481,004 | — | 1,481,004 | ||||||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | ||||||||||||||||||||
Assets measured at fair value on a recurring basis were as follows: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Quoted prices in | Significant otherobservable | Significant | |||||||||||||||||||
active markets | inputs | unobservable | |||||||||||||||||||
for identical assets | inputs | ||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | |||||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 357,977 | $ | — | |||||||||||||||
Federal agency obligations | — | 98,265 | — | ||||||||||||||||||
Municipal bonds | — | 79,022 | — | ||||||||||||||||||
$ | — | $ | 535,264 | $ | — | ||||||||||||||||
Derivative assets (1) | |||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 556 | $ | — | |||||||||||||||
Forward commitments | — | 2 | — | ||||||||||||||||||
$ | — | $ | 558 | $ | — | ||||||||||||||||
Derivative liabilities (1) - Forward commitments | $ | 202 | $ | 73 | $ | — | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | |||||||||||||||
Available-for-sale securities (bank segment) | |||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 417,383 | $ | — | |||||||||||||||
Federal agency obligations | — | 171,491 | — | ||||||||||||||||||
Municipal bonds | — | 82,484 | — | ||||||||||||||||||
$ | — | $ | 671,358 | $ | — | ||||||||||||||||
___________________________________________ | |||||||||||||||||||||
(1) Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. | |||||||||||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis | ' | ||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Loans | |||||||||||||||||||||
30-Sep-13 | $ | 5 | $ | — | $ | — | $ | 5 | |||||||||||||
31-Dec-12 | 21 | — | — | 21 | |||||||||||||||||
Real estate acquired in settlement of loans | |||||||||||||||||||||
30-Sep-13 | $ | — | — | — | $ | — | |||||||||||||||
31-Dec-12 | 3 | — | — | 3 | |||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurement | ' | ||||||||||||||||||||
For loans and real estate acquired in settlement of loans classified as Level 3 as of September 30, 2013, the significant unobservable inputs used in the fair value measurement were as follows: | |||||||||||||||||||||
Fair value at | Significant unobservable | ||||||||||||||||||||
input value (1) | |||||||||||||||||||||
($ in thousands) | 30-Sep-13 | Valuation technique | Significant unobservable input | Range | Weighted | ||||||||||||||||
Average | |||||||||||||||||||||
Residential loans | $ | 4,028 | Fair value of property or collateral | Appraised value less 7% selling cost | 44-96% | 81% | |||||||||||||||
Home equity lines of credit | 172 | Fair value of property or collateral | Appraised value less 7% selling cost | 46-50% | 50% | ||||||||||||||||
Commercial loans | 759 | Fair value of property or collateral | Fair value of business assets | 31-91% | 60% | ||||||||||||||||
Total loans | 4,959 | ||||||||||||||||||||
Real estate acquired in settlement of loans | 192 | Fair value of property or collateral | Appraised value less 7% selling cost | 81-95% | 90% | ||||||||||||||||
(1) Represent percent of outstanding principal balance. |
Cash_flows_Tables
Cash flows (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Schedule of supplemental disclosures of cash and noncash activity | ' | ||||||||
Nine months ended September 30 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
Interest paid to non-affiliates | $ | 62 | $ | 61 | |||||
Income taxes paid | 2 | — | |||||||
Supplemental disclosures of noncash activities | |||||||||
Common stock dividends reinvested in HEI common stock (1) | 18 | 18 | |||||||
Increases in common stock related to director and officer compensatory plans | 3 | 5 | |||||||
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 | |||||||
Real estate acquired in settlement of loans | 4 | 7 | |||||||
Loans transferred from held-for-investment to held-for-sale | 25 | — | |||||||
___________________________________________ | |||||||||
(1) The amounts shown represent common stock dividends reinvested in HEI common stock under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) in noncash transactions. |
Unconsolidated_variable_intere1
Unconsolidated variable interest entities (Tables) - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||
Unconsolidated variable interest entities | ' | ||||||||||||||||
Schedule of purchases from all IPPs | ' | ||||||||||||||||
Power purchase agreements. As of September 30, 2013, Hawaiian Electric and its subsidiaries had six PPAs for firm capacity and other PPAs with smaller independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or small power production facilities with a capacity of 100 kW or less who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. Approximately 91% of the firm capacity is purchased from AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and HPOWER. Purchases from all IPPs were as follows: | |||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
AES Hawaii | $ | 38 | $ | 38 | $ | 98 | $ | 109 | |||||||||
Kalaeloa | 80 | 78 | 223 | 230 | |||||||||||||
HEP | 15 | 19 | 36 | 48 | |||||||||||||
HPOWER | 17 | 18 | 44 | 48 | |||||||||||||
Other IPPs | 45 | 34 | 126 | 105 | |||||||||||||
Total IPPs | $ | 195 | $ | 187 | $ | 527 | $ | 540 | |||||||||
Retirement_benefits_Tables_HEC
Retirement benefits (Tables) - HECO | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Retirement benefits | ' | ||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for consolidated HECO | ' | ||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for consolidated HEI were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 14,097 | $ | 10,816 | $ | 1,077 | $ | 1,054 | $ | 42,307 | $ | 32,404 | $ | 3,229 | $ | 3,158 | |||||||||||||||||
Interest cost | 16,187 | 16,868 | 1,891 | 2,252 | 48,600 | 50,612 | 5,677 | 6,756 | |||||||||||||||||||||||||
Expected return on plan assets | (18,134 | ) | (17,796 | ) | (2,531 | ) | (2,579 | ) | (54,401 | ) | (53,388 | ) | (7,614 | ) | (7,757 | ) | |||||||||||||||||
Amortization of net transition obligation | — | 1 | — | — | — | 1 | — | — | |||||||||||||||||||||||||
Amortization of net prior service gain | (24 | ) | (81 | ) | (448 | ) | (448 | ) | (73 | ) | (244 | ) | (1,345 | ) | (1,345 | ) | |||||||||||||||||
Amortization of net actuarial loss | 9,560 | 6,425 | 398 | 373 | 28,878 | 19,251 | 1,203 | 1,125 | |||||||||||||||||||||||||
Net periodic benefit cost | 21,686 | 16,233 | 387 | 652 | 65,311 | 48,636 | 1,150 | 1,937 | |||||||||||||||||||||||||
Impact of PUC D&Os | (9,257 | ) | (3,460 | ) | (332 | ) | (552 | ) | (28,847 | ) | (12,294 | ) | (1,018 | ) | (1,648 | ) | |||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 12,429 | $ | 12,773 | $ | 55 | $ | 100 | $ | 36,464 | $ | 36,342 | $ | 132 | $ | 289 | |||||||||||||||||
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | ' | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive income. Reclassifications out of accumulated other comprehensive income/(loss) (AOCI) were as follows: | |||||||||||||||||||||||||||||||||
Amount reclassified from AOCI | |||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | Affected line item in the Statement of Income | ||||||||||||||||||||||||||||
Net realized gains on securities | $ | — | $ | — | $ | (738 | ) | $ | (81 | ) | Revenues-bank (net gains on sales of securities) | ||||||||||||||||||||||
Derivatives qualified as cash flow hedges | |||||||||||||||||||||||||||||||||
Interest rate contracts (settled in 2011) | 59 | 59 | 177 | 177 | Interest expense | ||||||||||||||||||||||||||||
Retirement benefit plan items | |||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 5,789 | 3,826 | 17,490 | 11,467 | See Note 5 for additional details | ||||||||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (5,156 | ) | (3,342 | ) | (15,468 | ) | (10,026 | ) | See Note 5 for additional details | ||||||||||||||||||||||||
Total reclassifications | $ | 692 | $ | 543 | $ | 1,461 | $ | 1,537 | |||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||||||||||||||
Retirement benefits | ' | ||||||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for consolidated HECO | ' | ||||||||||||||||||||||||||||||||
The components of net periodic benefit cost for the Utilities were as follows: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | 13,620 | $ | 10,400 | $ | 1,041 | $ | 1,003 | $ | 40,861 | $ | 31,202 | $ | 3,122 | $ | 3,010 | |||||||||||||||||
Interest cost | 14,780 | 15,364 | 1,822 | 2,175 | 44,339 | 46,090 | 5,466 | 6,527 | |||||||||||||||||||||||||
Expected return on plan assets | (16,138 | ) | (16,001 | ) | (2,502 | ) | (2,548 | ) | (48,413 | ) | (48,003 | ) | (7,502 | ) | (7,646 | ) | |||||||||||||||||
Amortization of net transition obligation | — | — | — | (2 | ) | — | — | — | (6 | ) | |||||||||||||||||||||||
Amortization of net prior service gain | (116 | ) | (173 | ) | (451 | ) | (450 | ) | (348 | ) | (517 | ) | (1,353 | ) | (1,352 | ) | |||||||||||||||||
Amortization of net actuarial loss | 8,649 | 5,857 | 387 | 363 | 25,948 | 17,571 | 1,159 | 1,091 | |||||||||||||||||||||||||
Net periodic benefit cost | 20,795 | 15,447 | 297 | 541 | 62,387 | 46,343 | 892 | 1,624 | |||||||||||||||||||||||||
Impact of PUC D&Os | (9,257 | ) | (3,460 | ) | (332 | ) | (552 | ) | (28,847 | ) | (12,294 | ) | (1,018 | ) | (1,648 | ) | |||||||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 11,538 | $ | 11,987 | $ | (35 | ) | $ | (11 | ) | $ | 33,540 | $ | 34,049 | $ | (126 | ) | $ | (24 | ) | |||||||||||||
Schedule of reclassifications out of accumulated other comprehensive income/(loss) | ' | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive income. Reclassifications out of AOCI were as follows: | |||||||||||||||||||||||||||||||||
Amount reclassified from AOCI | |||||||||||||||||||||||||||||||||
Three months | Nine months | ||||||||||||||||||||||||||||||||
ended September 30 | ended September 30 | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Retirement benefit plan items | |||||||||||||||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 5,173 | $ | 3,419 | $ | 15,520 | $ | 10,255 | See above | ||||||||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (5,156 | ) | (3,342 | ) | (15,468 | ) | (10,026 | ) | See above | ||||||||||||||||||||||||
Total reclassifications | $ | 17 | $ | 77 | $ | 52 | $ | 229 | |||||||||||||||||||||||||
Commitments_and_contingencies_1
Commitments and contingencies (Tables) - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||
Regulatory projects and legal obligations | ' | ||||||||
Schedule of reductions from the interim D&O | ' | ||||||||
Maui Electric 2012 test year rate case. On May 31, 2013, the PUC issued a final D&O in the Maui Electric 2012 test year rate case. Final rates became effective August 1, 2013. The final D&O approved an increase in annual revenues of $5.3 million, which is $7.8 million less than the interim increase that had been in effect since June 1, 2012. Reductions from the interim D&O relate primarily to: | |||||||||
(in millions) | |||||||||
Lower ROACE | $ | 4 | |||||||
Customer Information System expenses | 0.3 | ||||||||
Pension and OPEB expense based on 3-year average | 1.5 | ||||||||
Integrated resource planning expenses | 0.9 | ||||||||
Operational and Renewable Energy Integration study costs | 1.1 | ||||||||
Total adjustment | $ | 7.8 | |||||||
Schedule of changes in asset retirement obligation | ' | ||||||||
Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: | |||||||||
Nine months ended September 30 | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Balance, beginning of period | $ | 48,431 | $ | 50,871 | |||||
Accretion expense | 833 | 1,233 | |||||||
Liabilities incurred | — | — | |||||||
Liabilities settled | (1,165 | ) | (2,788 | ) | |||||
Revisions in estimated cash flows | (916 | ) | — | ||||||
Balance, end of period | $ | 47,183 | $ | 49,316 | |||||
Cash_flows_Tables_HECO
Cash flows (Tables) - HECO | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Cash flows | ' | ||||||||
Schedule of supplemental disclosures of cash flow information and non cash activities | ' | ||||||||
Nine months ended September 30 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
Interest paid to non-affiliates | $ | 62 | $ | 61 | |||||
Income taxes paid | 2 | — | |||||||
Supplemental disclosures of noncash activities | |||||||||
Common stock dividends reinvested in HEI common stock (1) | 18 | 18 | |||||||
Increases in common stock related to director and officer compensatory plans | 3 | 5 | |||||||
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 | |||||||
Real estate acquired in settlement of loans | 4 | 7 | |||||||
Loans transferred from held-for-investment to held-for-sale | 25 | — | |||||||
___________________________________________ | |||||||||
(1) The amounts shown represent common stock dividends reinvested in HEI common stock under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) in noncash transactions. | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||
Cash flows | ' | ||||||||
Schedule of supplemental disclosures of cash flow information and non cash activities | ' | ||||||||
Nine months ended September 30 | 2013 | 2012 | |||||||
(in millions) | |||||||||
Supplemental disclosures of cash flow information | |||||||||
Interest paid | $ | 43 | $ | 40 | |||||
Income taxes paid/(refunded) | (26 | ) | 2 | ||||||
Supplemental disclosures of noncash activities | |||||||||
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 | |||||||
Fair_value_measurements_Tables1
Fair value measurements (Tables) - HECO | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair value measurements on a recurring and nonrecurring basis | ' | ||||||||||||||||||||
Schedule of estimated fair values of certain of the Company's financial instruments | ' | ||||||||||||||||||||
The estimated fair values of certain of the Company’s financial instruments were as follows: | |||||||||||||||||||||
Carrying or | Estimated fair value | ||||||||||||||||||||
notional | |||||||||||||||||||||
(in thousands) | amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | — | 535,264 | — | 535,264 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | — | 93,413 | — | 93,413 | ||||||||||||||||
Loans receivable, net | 4,010,961 | — | — | 4,149,137 | 4,149,137 | ||||||||||||||||
Derivative assets | 24,196 | — | 558 | — | 558 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,310,842 | — | 4,313,560 | — | 4,313,560 | ||||||||||||||||
Short-term borrowings—other than bank | 131,341 | — | 131,341 | — | 131,341 | ||||||||||||||||
Other bank borrowings | 239,612 | — | 252,230 | — | 252,230 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,880 | — | 1,431,434 | — | 1,431,434 | ||||||||||||||||
Derivative liabilities | 22,185 | 202 | 73 | — | 275 | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||||
Available-for-sale investment and mortgage-related securities | 671,358 | — | 671,358 | — | 671,358 | ||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 96,022 | — | 96,022 | — | 96,022 | ||||||||||||||||
Loans receivable, net | 3,763,238 | — | — | 3,957,752 | 3,957,752 | ||||||||||||||||
Financial liabilities | 0 | ||||||||||||||||||||
Deposit liabilities | 4,229,916 | — | 4,235,527 | — | 4,235,527 | ||||||||||||||||
Short-term borrowings—other than bank | 83,693 | — | 83,693 | — | 83,693 | ||||||||||||||||
Other bank borrowings | 195,926 | — | 212,163 | — | 212,163 | ||||||||||||||||
Long-term debt, net—other than bank | 1,422,872 | — | 1,481,004 | — | 1,481,004 | ||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||
Fair value measurements on a recurring and nonrecurring basis | ' | ||||||||||||||||||||
Schedule of estimated fair values of certain of the Company's financial instruments | ' | ||||||||||||||||||||
The estimated fair values of certain of the electric utilities’ financial instruments were as follows: | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||
(in thousands) | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
amount | fair value | amount | fair value | ||||||||||||||||||
(Level 2) | (Level 2) | ||||||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Short-term borrowings - non-affiliates | $ | 73,246 | $ | 73,246 | $ | — | $ | — | |||||||||||||
Long-term debt, net, including amounts due within one year | 1,147,880 | 1,149,213 | 1,147,872 | 1,181,631 | |||||||||||||||||
Credit_agreement_HECO_Credit_a
Credit agreement - HECO Credit agreement (Tables) - HECO | 9 Months Ended | ||
Sep. 30, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Subsequent event changes in long-term debt | ' | ||
Subsequent event-changes in long-term debt. On October 3, 2013, Hawaiian Electric, Maui Electric and Hawaii Electric Light each entered into its separate note purchase agreement with various purchasers of their taxable unsecured senior notes (Notes) with an aggregate principal amount of $236 million. The Utilities issued through a private placement the following series of Notes: | |||
Amount | Series | Maturity | |
Hawaiian Electric Notes | |||
$40 million1 | 4.45% Senior Notes, Series 2013A | 1-Dec-22 | |
$50 million1 | 4.84% Senior Notes, Series 2013B | 1-Oct-27 | |
$50 million2 | 5.65% Senior Notes, Series 2013C | 1-Oct-43 | |
$140 million | Total | ||
Maui Electric Notes | |||
$20 million1 | 4.84% Senior Notes, Series 2013A | 1-Oct-27 | |
$20 million2 | 5.65% Senior Notes, Series 2013B | 1-Oct-43 | |
$40 million | Total | ||
Hawaii Electric Light Notes | |||
$14 million1 | 3.83% Senior Notes, Series 2013A | 1-Jul-20 | |
$12 million1 | 4.45% Senior Notes, Series 2013B | 1-Dec-22 | |
$30 million1 | 4.84% Senior Notes, Series 2013C | 1-Oct-27 | |
$56 million | Total | ||
1 Proceeds were used in October 2013 to redeem the following special purpose revenue bonds (SPRBs) and refunding SPRBs issued by the Department of Budget and Finance of the State of Hawaii for the benefit of the Utilities with an aggregate principle amount of $166 million: | |||
Series | Year of maturity | ||
4.75% Refunding Series 2003A Bonds | 2020 | ||
5.00% Refunding Series 2003B Bonds | 2022 | ||
5.65% Series 1997A Bonds | 2027 | ||
2 Proceeds were and/or will be used by the respective utility to finance their capital expenditures and/or for the reimbursement of funds used for the payment of capital expenditures. |
Reconciliation_of_electric_uti1
Reconciliation of electric utility operating income per HEI and HECO consolidated statements of income (Tables) - HECO (Hawaiian Electric Company, Inc. and Subsidiaries) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||
Schedule of reconciliation from segment operating income to subsidiary's operating income from regulated operations | ' | ||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating income from regulated and nonregulated activities before income taxes (per HEI consolidated statements of income) | $ | 71,914 | $ | 74,819 | $ | 186,005 | $ | 193,569 | |||||||||
Deduct: | |||||||||||||||||
Income taxes on regulated activities | (18,928 | ) | (22,352 | ) | (51,356 | ) | (58,291 | ) | |||||||||
Revenues from nonregulated activities | (2,182 | ) | (1,892 | ) | (7,153 | ) | (5,431 | ) | |||||||||
Add: Expenses from nonregulated activities | 1,082 | 804 | 2,801 | 1,620 | |||||||||||||
Operating income from regulated activities after income taxes (per Hawaiian Electric consolidated statements of income) | $ | 51,886 | $ | 51,379 | $ | 130,297 | $ | 131,467 | |||||||||
Consolidating_financial_inform1
Consolidating financial information (Tables) - HECO | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Schedule of consolidating statements of income (loss) | ' | ||||||||||||||||||||
Selected financial information | |||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Statements of Income Data | |||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Interest and dividend income | |||||||||||||||||||||
Interest and fees on loans | $ | 43,337 | $ | 43,880 | $ | 129,564 | $ | 133,241 | |||||||||||||
Interest and dividend on investment and mortgage-related securities | 3,025 | 3,432 | 9,723 | 10,534 | |||||||||||||||||
Total interest and dividend income | 46,362 | 47,312 | 139,287 | 143,775 | |||||||||||||||||
Interest expense | |||||||||||||||||||||
Interest on deposit liabilities | 1,262 | 1,540 | 3,870 | 5,015 | |||||||||||||||||
Interest on other borrowings | 1,206 | 1,201 | 3,548 | 3,676 | |||||||||||||||||
Total interest expense | 2,468 | 2,741 | 7,418 | 8,691 | |||||||||||||||||
Net interest income | 43,894 | 44,571 | 131,869 | 135,084 | |||||||||||||||||
Provision for loan losses | 54 | 3,580 | 953 | 9,504 | |||||||||||||||||
Net interest income after provision for loan losses | 43,840 | 40,991 | 130,916 | 125,580 | |||||||||||||||||
Noninterest income | |||||||||||||||||||||
Fees from other financial services | 5,728 | 7,674 | 21,367 | 22,474 | |||||||||||||||||
Fee income on deposit liabilities | 4,819 | 4,527 | 13,566 | 13,127 | |||||||||||||||||
Fee income on other financial products | 2,714 | 1,660 | 6,288 | 4,741 | |||||||||||||||||
Mortgage banking income | 1,547 | 4,077 | 6,896 | 8,297 | |||||||||||||||||
Gain on sale of securities | — | — | 1,226 | 134 | |||||||||||||||||
Other income | 3,888 | 1,346 | 7,211 | 4,021 | |||||||||||||||||
Total noninterest income | 18,696 | 19,284 | 56,554 | 52,794 | |||||||||||||||||
Noninterest expense | |||||||||||||||||||||
Compensation and employee benefits | 20,564 | 18,684 | 60,715 | 56,026 | |||||||||||||||||
Occupancy | 4,208 | 4,400 | 12,550 | 12,866 | |||||||||||||||||
Data processing | 2,168 | 2,644 | 7,982 | 7,244 | |||||||||||||||||
Services | 2,424 | 3,062 | 6,855 | 7,066 | |||||||||||||||||
Equipment | 1,825 | 1,762 | 5,469 | 5,299 | |||||||||||||||||
Other expense | 8,539 | 8,096 | 24,634 | 22,909 | |||||||||||||||||
Total noninterest expense | 39,728 | 38,648 | 118,205 | 111,410 | |||||||||||||||||
Income before income taxes | 22,808 | 21,627 | 69,265 | 66,964 | |||||||||||||||||
Income taxes | 7,532 | 7,419 | 23,915 | 22,690 | |||||||||||||||||
Net income | $ | 15,276 | $ | 14,208 | $ | 45,350 | $ | 44,274 | |||||||||||||
Schedule of consolidating balance sheets | ' | ||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Balance Sheets Data | |||||||||||||||||||||
(in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 189,524 | $ | 184,430 | |||||||||||||||||
Available-for-sale investment and mortgage-related securities | 535,264 | 671,358 | |||||||||||||||||||
Investment in stock of Federal Home Loan Bank of Seattle | 93,413 | 96,022 | |||||||||||||||||||
Loans receivable held for investment | 4,046,184 | 3,779,218 | |||||||||||||||||||
Allowance for loan losses | (41,052 | ) | (41,985 | ) | |||||||||||||||||
Loans receivable held for investment, net | 4,005,132 | 3,737,233 | |||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 5,829 | 26,005 | |||||||||||||||||||
Other | 248,020 | 244,435 | |||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||
Total assets | $ | 5,159,372 | $ | 5,041,673 | |||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||
Deposit liabilities—noninterest-bearing | $ | 1,205,526 | $ | 1,164,308 | |||||||||||||||||
Deposit liabilities—interest-bearing | 3,105,316 | 3,065,608 | |||||||||||||||||||
Other borrowings | 239,612 | 195,926 | |||||||||||||||||||
Other | 102,172 | 117,752 | |||||||||||||||||||
Total liabilities | 4,652,626 | 4,543,594 | |||||||||||||||||||
Commitments and contingencies (see “Litigation” below) | |||||||||||||||||||||
Common stock | 335,448 | 333,712 | |||||||||||||||||||
Retained earnings | 195,113 | 179,763 | |||||||||||||||||||
Accumulated other comprehensive income (loss), net of taxes | |||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | (701 | ) | $ | 10,761 | ||||||||||||||||
Retirement benefit plans | (23,114 | ) | (23,815 | ) | (26,157 | ) | (15,396 | ) | |||||||||||||
Total shareholder’s equity | 506,746 | 498,079 | |||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,159,372 | $ | 5,041,673 | |||||||||||||||||
Other assets | |||||||||||||||||||||
Bank-owned life insurance | $ | 128,833 | $ | 125,726 | |||||||||||||||||
Premises and equipment, net | 67,634 | 62,458 | |||||||||||||||||||
Prepaid expenses | 4,394 | 13,199 | |||||||||||||||||||
Accrued interest receivable | 13,372 | 13,228 | |||||||||||||||||||
Mortgage-servicing rights | 11,806 | 10,818 | |||||||||||||||||||
Real estate acquired in settlement of loans, net | 1,488 | 6,050 | |||||||||||||||||||
Other | 20,493 | 12,956 | |||||||||||||||||||
$ | 248,020 | $ | 244,435 | ||||||||||||||||||
Other liabilities | |||||||||||||||||||||
Accrued expenses | $ | 20,463 | $ | 17,103 | |||||||||||||||||
Federal and state income taxes payable | 30,249 | 35,408 | |||||||||||||||||||
Cashier’s checks | 24,183 | 23,478 | |||||||||||||||||||
Advance payments by borrowers | 5,694 | 9,685 | |||||||||||||||||||
Other | 21,583 | 32,078 | |||||||||||||||||||
$ | 102,172 | $ | 117,752 | ||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ||||||||||||||||||||
Schedule of consolidating statements of income (loss) | ' | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 547,310 | 107,924 | 108,699 | — | — | $ | 763,933 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 206,478 | 27,615 | 49,267 | — | — | 283,360 | |||||||||||||||
Purchased power | 143,280 | 34,480 | 17,101 | — | — | 194,861 | |||||||||||||||
Other operation | 51,023 | 11,057 | 9,928 | — | — | 72,008 | |||||||||||||||
Maintenance | 19,619 | 5,680 | 6,214 | — | — | 31,513 | |||||||||||||||
Depreciation | 25,442 | 8,547 | 5,006 | — | — | 38,995 | |||||||||||||||
Taxes, other than income taxes | 51,712 | 10,448 | 10,222 | — | — | 72,382 | |||||||||||||||
Income taxes | 13,556 | 1,991 | 3,381 | — | — | 18,928 | |||||||||||||||
Total operating expenses | 511,110 | 99,818 | 101,119 | — | — | 712,047 | |||||||||||||||
Operating income | 36,200 | 8,106 | 7,580 | — | — | 51,886 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 914 | 222 | 119 | — | — | 1,255 | |||||||||||||||
Equity in earnings of subsidiaries | 10,794 | — | — | — | (10,794 | ) | — | ||||||||||||||
Other, net | 795 | 217 | 124 | (1 | ) | (36 | ) | 1,099 | |||||||||||||
Income tax expense | (77 | ) | (32 | ) | (20 | ) | — | — | (129 | ) | |||||||||||
Total other income (loss) | 12,426 | 407 | 223 | (1 | ) | (10,830 | ) | 2,225 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 9,902 | 2,751 | 1,962 | — | — | 14,615 | |||||||||||||||
Amortization of net bond premium and expense | 410 | 116 | 120 | — | — | 646 | |||||||||||||||
Other interest charges | 585 | 160 | 324 | — | (36 | ) | 1,033 | ||||||||||||||
Allowance for borrowed funds used during construction | (358 | ) | (91 | ) | (49 | ) | — | — | (498 | ) | |||||||||||
Total interest and other charges | 10,539 | 2,936 | 2,357 | — | (36 | ) | 15,796 | ||||||||||||||
Net income (loss) | 38,087 | 5,577 | 5,446 | (1 | ) | (10,794 | ) | 38,315 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 38,087 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | 38,087 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 1,677,604 | 332,558 | 324,664 | — | — | $ | 2,334,826 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 724,862 | 88,778 | 172,436 | — | — | 986,076 | |||||||||||||||
Purchased power | 401,423 | 108,996 | 29,421 | — | — | 539,840 | |||||||||||||||
Other operation | 132,770 | 29,851 | 34,185 | — | — | 196,806 | |||||||||||||||
Maintenance | 60,993 | 14,280 | 16,368 | — | — | 91,641 | |||||||||||||||
Depreciation | 68,046 | 25,036 | 15,474 | — | — | 108,556 | |||||||||||||||
Taxes, other than income taxes | 159,928 | 31,330 | 30,891 | — | — | 222,149 | |||||||||||||||
Income taxes | 41,049 | 9,836 | 7,406 | — | — | 58,291 | |||||||||||||||
Total operating expenses | 1,589,071 | 308,107 | 306,181 | — | — | 2,203,359 | |||||||||||||||
Operating income | 88,533 | 24,451 | 18,483 | — | — | 131,467 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 4,558 | 433 | 557 | — | — | 5,548 | |||||||||||||||
Equity in earnings of subsidiaries | 28,025 | — | — | — | (28,025 | ) | — | ||||||||||||||
Other, net | 3,215 | 361 | 293 | (3 | ) | (56 | ) | 3,810 | |||||||||||||
Income tax benefits (expense) | (101 | ) | (47 | ) | 11 | — | — | (137 | ) | ||||||||||||
Total other income (loss) | 35,697 | 747 | 861 | (3 | ) | (28,081 | ) | 9,221 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 29,301 | 8,649 | 6,450 | — | — | 44,400 | |||||||||||||||
Amortization of net bond premium and expense | 1,541 | 362 | 373 | — | — | 2,276 | |||||||||||||||
Other interest charges | (412 | ) | 131 | 253 | — | (56 | ) | (84 | ) | ||||||||||||
Allowance for borrowed funds used during construction | (2,061 | ) | (174 | ) | (216 | ) | — | — | (2,451 | ) | |||||||||||
Total interest and other charges | 28,369 | 8,968 | 6,860 | — | (56 | ) | 44,141 | ||||||||||||||
Net income (loss) | 95,861 | 16,230 | 12,484 | (3 | ) | (28,025 | ) | 96,547 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 95,861 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | 95,861 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income (loss) for common stock | $ | 95,051 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | $ | 95,051 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 1,574,869 | 320,314 | 313,740 | — | — | $ | 2,208,923 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 631,824 | 94,120 | 151,794 | — | — | 877,738 | |||||||||||||||
Purchased power | 389,706 | 93,880 | 43,083 | — | — | 526,669 | |||||||||||||||
Other operation | 149,218 | 32,267 | 28,130 | — | — | 209,615 | |||||||||||||||
Maintenance | 60,922 | 13,787 | 13,846 | — | — | 88,555 | |||||||||||||||
Depreciation | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Taxes, other than income taxes | 149,084 | 30,094 | 29,650 | — | — | 208,828 | |||||||||||||||
Income taxes | 33,753 | 7,765 | 9,838 | — | — | 51,356 | |||||||||||||||
Total operating expenses | 1,489,657 | 297,554 | 291,415 | — | — | 2,078,626 | |||||||||||||||
Operating income | 85,212 | 22,760 | 22,325 | — | — | 130,297 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 3,144 | 552 | 334 | — | — | 4,030 | |||||||||||||||
Equity in earnings of subsidiaries | 30,446 | — | — | — | (30,446 | ) | — | ||||||||||||||
Other, net | 3,518 | 526 | 412 | (2 | ) | (103 | ) | 4,351 | |||||||||||||
Income tax expense | (266 | ) | (73 | ) | (81 | ) | — | — | (420 | ) | |||||||||||
Total other income (loss) | 36,842 | 1,005 | 665 | (2 | ) | (30,549 | ) | 7,961 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 29,705 | 8,252 | 5,886 | — | — | 43,843 | |||||||||||||||
Amortization of net bond premium and expense | 1,231 | 350 | 359 | — | — | 1,940 | |||||||||||||||
Other interest charges | 637 | 245 | 887 | — | (103 | ) | 1,666 | ||||||||||||||
Allowance for borrowed funds used during construction | (1,268 | ) | (226 | ) | (132 | ) | — | — | (1,626 | ) | |||||||||||
Total interest and other charges | 30,305 | 8,621 | 7,000 | — | (103 | ) | 45,823 | ||||||||||||||
Net income (loss) | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | 92,435 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 400 | 286 | — | — | 686 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 91,749 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 91,749 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 810 | — | — | — | — | 810 | |||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Operating revenues | $ | 579,464 | 108,490 | 111,249 | — | — | $ | 799,203 | |||||||||||||
Operating expenses | |||||||||||||||||||||
Fuel oil | 248,443 | 25,752 | 52,978 | — | — | 327,173 | |||||||||||||||
Purchased power | 135,507 | 37,693 | 13,499 | — | — | 186,699 | |||||||||||||||
Other operation | 48,201 | 10,888 | 11,352 | — | — | 70,441 | |||||||||||||||
Maintenance | 19,615 | 5,146 | 5,607 | — | — | 30,368 | |||||||||||||||
Depreciation | 22,738 | 8,299 | 4,904 | — | — | 35,941 | |||||||||||||||
Taxes, other than income taxes | 53,935 | 10,444 | 10,471 | — | — | 74,850 | |||||||||||||||
Income taxes | 15,725 | 2,782 | 3,845 | — | — | 22,352 | |||||||||||||||
Total operating expenses | 544,164 | 101,004 | 102,656 | — | — | 747,824 | |||||||||||||||
Operating income | 35,300 | 7,486 | 8,593 | — | — | 51,379 | |||||||||||||||
Other income (loss) | |||||||||||||||||||||
Allowance for equity funds used during construction | 1,323 | 148 | 140 | — | — | 1,611 | |||||||||||||||
Equity in earnings of subsidiaries | 11,285 | — | — | — | (11,285 | ) | — | ||||||||||||||
Other, net | 950 | 128 | 38 | (1 | ) | (28 | ) | 1,087 | |||||||||||||
Income tax benefits (expense) | (37 | ) | (14 | ) | 9 | — | — | (42 | ) | ||||||||||||
Total other income (loss) | 13,521 | 262 | 187 | (1 | ) | (11,313 | ) | 2,656 | |||||||||||||
Interest and other charges | |||||||||||||||||||||
Interest on long-term debt | 9,981 | 2,751 | 1,962 | — | — | 14,694 | |||||||||||||||
Amortization of net bond premium and expense | 629 | 117 | 124 | — | — | 870 | |||||||||||||||
Other interest charges | 142 | 78 | 94 | — | (28 | ) | 286 | ||||||||||||||
Allowance for borrowed funds used during construction | (576 | ) | (59 | ) | (53 | ) | — | — | (688 | ) | |||||||||||
Total interest and other charges | 10,176 | 2,887 | 2,127 | — | (28 | ) | 15,162 | ||||||||||||||
Net income (loss) | 38,645 | 4,861 | 6,653 | (1 | ) | (11,285 | ) | 38,873 | |||||||||||||
Preferred stock dividend of subsidiaries | — | 133 | 95 | — | — | 228 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 38,645 | 4,728 | 6,558 | (1 | ) | (11,285 | ) | 38,645 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 270 | — | — | — | — | 270 | |||||||||||||||
Net income (loss) for common stock | $ | 38,375 | 4,728 | 6,558 | (1 | ) | (11,285 | ) | $ | 38,375 | |||||||||||
Schedule of consolidating statement of comprehensive income (loss) | ' | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | $ | 90,939 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 15,520 | 2,160 | 1,918 | — | (4,078 | ) | 15,520 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (15,468 | ) | (2,162 | ) | (1,918 | ) | — | 4,080 | (15,468 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 90,991 | 14,742 | 15,704 | (2 | ) | (30,444 | ) | $ | 90,991 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 37,817 | 5,444 | 5,351 | (1 | ) | (10,794 | ) | $ | 37,817 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 720 | 639 | — | (1,359 | ) | 5,173 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (5,156 | ) | (721 | ) | (639 | ) | — | 1,360 | (5,156 | ) | |||||||||||
Other comprehensive income (loss), net of taxes | 17 | (1 | ) | — | — | 1 | 17 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 37,834 | 5,443 | 5,351 | (1 | ) | (10,793 | ) | $ | 37,834 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 95,051 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | $ | 95,051 | |||||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,255 | 1,576 | 1,328 | — | (2,904 | ) | 10,255 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (10,026 | ) | (1,558 | ) | (1,309 | ) | — | 2,867 | (10,026 | ) | |||||||||||
Other comprehensive income, net of taxes | 229 | 18 | 19 | — | (37 | ) | 229 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 95,280 | 15,848 | 12,217 | (3 | ) | (28,062 | ) | $ | 95,280 | |||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Net income (loss) for common stock | $ | 38,375 | 4,728 | 6,558 | (1 | ) | (11,285 | ) | $ | 38,375 | |||||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 3,419 | 526 | 443 | — | (969 | ) | 3,419 | ||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (3,342 | ) | (521 | ) | (436 | ) | — | 957 | (3,342 | ) | |||||||||||
Other comprehensive income, net of taxes | 77 | 5 | 7 | — | (12 | ) | 77 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 38,452 | 4,733 | 6,565 | (1 | ) | (11,297 | ) | $ | 38,452 | |||||||||||
Schedule of consolidating balance sheets | ' | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Assets | |||||||||||||||||||||
Utility plant, at cost | |||||||||||||||||||||
Land | $ | 43,392 | 5,426 | 3,016 | — | — | $ | 51,834 | |||||||||||||
Plant and equipment | 3,488,617 | 1,116,702 | 988,482 | — | — | 5,593,801 | |||||||||||||||
Less accumulated depreciation | (1,211,045 | ) | (449,547 | ) | (432,983 | ) | — | — | (2,093,575 | ) | |||||||||||
Construction in progress | 122,399 | 14,120 | 14,558 | — | — | 151,077 | |||||||||||||||
Net utility plant | 2,443,363 | 686,701 | 573,073 | — | — | 3,703,137 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 507,080 | — | — | — | (507,080 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 18,906 | 2,754 | 3,423 | 102 | — | 25,185 | |||||||||||||||
Advances to affiliates | 23,000 | 7,000 | — | — | (30,000 | ) | — | ||||||||||||||
Customer accounts receivable, net | 134,641 | 29,569 | 23,494 | — | — | 187,704 | |||||||||||||||
Accrued unbilled revenues, net | 104,981 | 16,120 | 18,800 | — | — | 139,901 | |||||||||||||||
Other accounts receivable, net | 15,094 | 3,877 | 2,214 | — | (12,011 | ) | 9,174 | ||||||||||||||
Fuel oil stock, at average cost | 105,231 | 14,615 | 17,241 | — | — | 137,087 | |||||||||||||||
Materials and supplies, at average cost | 37,171 | 7,042 | 15,221 | — | — | 59,434 | |||||||||||||||
Prepayments and other | 26,024 | 4,413 | 14,939 | — | — | 45,376 | |||||||||||||||
Regulatory assets | 36,006 | 4,636 | 5,081 | — | — | 45,723 | |||||||||||||||
Total current assets | 501,054 | 90,026 | 100,413 | 102 | (42,011 | ) | 649,584 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 626,209 | 112,244 | 106,243 | — | — | 844,696 | |||||||||||||||
Unamortized debt expense | 6,491 | 1,882 | 1,301 | — | — | 9,674 | |||||||||||||||
Other | 40,343 | 8,405 | 13,919 | — | — | 62,667 | |||||||||||||||
Total other long-term assets | 673,043 | 122,531 | 121,463 | — | — | 917,037 | |||||||||||||||
Total assets | $ | 4,124,540 | 899,258 | 794,949 | 102 | (549,091 | ) | $ | 5,269,758 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,501,944 | 272,860 | 234,118 | 102 | (507,080 | ) | $ | 1,501,944 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 780,546 | 201,334 | 166,000 | — | — | 1,147,880 | |||||||||||||||
Total capitalization | 2,304,783 | 481,194 | 405,118 | 102 | (507,080 | ) | 2,684,117 | ||||||||||||||
Commitments and contingencies (Note 5) | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Short-term borrowings from non-affiliates | 73,246 | — | — | — | — | 73,246 | |||||||||||||||
Short-term borrowings from affiliate | 7,000 | — | 23,000 | — | (30,000 | ) | — | ||||||||||||||
Accounts payable | 136,087 | 25,352 | 19,518 | — | — | 180,957 | |||||||||||||||
Interest and preferred dividends payable | 15,097 | 3,949 | 3,363 | — | (12 | ) | 22,397 | ||||||||||||||
Taxes accrued | 163,204 | 35,403 | 34,846 | — | — | 233,453 | |||||||||||||||
Other | 54,571 | 11,298 | 24,664 | — | (11,999 | ) | 78,534 | ||||||||||||||
Total current liabilities | 449,205 | 76,002 | 105,391 | — | (42,011 | ) | 588,587 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 340,014 | 75,866 | 62,721 | — | — | 478,601 | |||||||||||||||
Regulatory liabilities | 224,568 | 71,230 | 33,333 | — | — | 329,131 | |||||||||||||||
Unamortized tax credits | 43,564 | 13,552 | 13,922 | — | — | 71,038 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 442,613 | 77,004 | 76,623 | — | 596,240 | ||||||||||||||||
Other | 67,157 | 15,386 | 13,585 | — | — | 96,128 | |||||||||||||||
Total deferred credits and other liabilities | 1,117,916 | 253,038 | 200,184 | — | — | 1,571,138 | |||||||||||||||
Contributions in aid of construction | 252,636 | 89,024 | 84,256 | — | — | 425,916 | |||||||||||||||
Total capitalization and liabilities | $ | 4,124,540 | 899,258 | 794,949 | 102 | (549,091 | ) | $ | 5,269,758 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Balance Sheet (unaudited) | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Assets | |||||||||||||||||||||
Utility plant, at cost | |||||||||||||||||||||
Land | $ | 43,370 | 5,182 | 3,016 | — | — | $ | 51,568 | |||||||||||||
Plant and equipment | 3,325,862 | 1,086,048 | 952,490 | — | — | 5,364,400 | |||||||||||||||
Less accumulated depreciation | (1,185,899 | ) | (433,531 | ) | (421,359 | ) | — | — | (2,040,789 | ) | |||||||||||
Construction in progress | 130,143 | 12,126 | 9,109 | — | — | 151,378 | |||||||||||||||
Net utility plant | 2,313,476 | 669,825 | 543,256 | — | — | 3,526,557 | |||||||||||||||
Investment in wholly owned subsidiaries, at equity | 497,939 | — | — | — | (497,939 | ) | — | ||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Advances to affiliates | 9,400 | 18,050 | — | — | (27,450 | ) | — | ||||||||||||||
Customer accounts receivable, net | 154,316 | 29,772 | 26,691 | — | — | 210,779 | |||||||||||||||
Accrued unbilled revenues, net | 100,600 | 14,393 | 19,305 | — | — | 134,298 | |||||||||||||||
Other accounts receivable, net | 33,313 | 1,122 | 3,016 | — | (9,275 | ) | 28,176 | ||||||||||||||
Fuel oil stock, at average cost | 123,176 | 15,485 | 22,758 | — | — | 161,419 | |||||||||||||||
Materials and supplies, at average cost | 31,779 | 5,336 | 13,970 | — | — | 51,085 | |||||||||||||||
Prepayments and other | 21,708 | 5,146 | 6,011 | — | — | 32,865 | |||||||||||||||
Regulatory assets | 42,675 | 4,056 | 4,536 | — | — | 51,267 | |||||||||||||||
Total current assets | 525,232 | 98,801 | 99,636 | 104 | (36,725 | ) | 687,048 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 601,451 | 109,815 | 102,063 | — | — | 813,329 | |||||||||||||||
Unamortized debt expense | 7,042 | 2,066 | 1,446 | — | — | 10,554 | |||||||||||||||
Other | 46,586 | 9,871 | 14,848 | — | — | 71,305 | |||||||||||||||
Total other long-term assets | 655,079 | 121,752 | 118,357 | — | — | 895,188 | |||||||||||||||
Total assets | $ | 3,991,726 | 890,378 | 761,249 | 104 | (534,664 | ) | $ | 5,108,793 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Cumulative preferred stock—not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 780,546 | 201,326 | 166,000 | — | — | 1,147,872 | |||||||||||||||
Total capitalization | 2,274,975 | 477,234 | 399,927 | 104 | (497,939 | ) | 2,654,301 | ||||||||||||||
Commitments and contingencies (Note 5) | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | — | — | — | — | — | |||||||||||||||
Short-term borrowings from affiliate | 18,050 | — | 9,400 | — | (27,450 | ) | — | ||||||||||||||
Accounts payable | 134,651 | 27,457 | 24,716 | — | — | 186,824 | |||||||||||||||
Interest and preferred dividends payable | 14,479 | 4,027 | 2,593 | — | (7 | ) | 21,092 | ||||||||||||||
Taxes accrued | 174,477 | 38,778 | 37,811 | — | — | 251,066 | |||||||||||||||
Other | 47,203 | 10,310 | 14,634 | — | (9,268 | ) | 62,879 | ||||||||||||||
Total current liabilities | 388,860 | 80,572 | 89,154 | — | (36,725 | ) | 521,861 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 302,569 | 68,479 | 46,563 | — | — | 417,611 | |||||||||||||||
Regulatory liabilities | 218,437 | 67,359 | 36,278 | — | — | 322,074 | |||||||||||||||
Unamortized tax credits | 39,827 | 13,450 | 13,307 | — | — | 66,584 | |||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 459,765 | 80,686 | 79,754 | — | — | 620,205 | |||||||||||||||
Other | 68,783 | 17,799 | 14,055 | — | — | 100,637 | |||||||||||||||
Total deferred credits and other liabilities | 1,089,381 | 247,773 | 189,957 | — | — | 1,527,111 | |||||||||||||||
Contributions in aid of construction | 238,510 | 84,799 | 82,211 | — | — | 405,520 | |||||||||||||||
Total capitalization and liabilities | $ | 3,991,726 | 890,378 | 761,249 | 104 | (534,664 | ) | $ | 5,108,793 | ||||||||||||
Schedule of consolidating statement of changes in common stock equity | ' | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2012 | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Net income (loss) for common stock | 90,939 | 14,744 | 15,704 | (2 | ) | (30,446 | ) | 90,939 | |||||||||||||
Other comprehensive income (loss), net of taxes | 52 | (2 | ) | — | — | 2 | 52 | ||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Balance, September 30, 2013 | $ | 1,501,944 | 272,860 | 234,118 | 102 | (507,080 | ) | $ | 1,501,944 | ||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Changes in Common Stock Equity (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Balance, December 31, 2011 | $ | 1,402,841 | 280,468 | 235,568 | 107 | (516,143 | ) | $ | 1,402,841 | ||||||||||||
Net income (loss) for common stock | 95,051 | 15,830 | 12,198 | (3 | ) | (28,025 | ) | 95,051 | |||||||||||||
Other comprehensive income, net of taxes | 229 | 18 | 19 | — | (37 | ) | 229 | ||||||||||||||
Common stock dividends | (54,783 | ) | (9,854 | ) | (6,560 | ) | — | 16,414 | (54,783 | ) | |||||||||||
Balance, September 30, 2012 | $ | 1,443,338 | 286,462 | 241,225 | 104 | (527,791 | ) | $ | 1,443,338 | ||||||||||||
Schedule of Condensed consolidating statement of cash flows | ' | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income (loss) | $ | 91,749 | 15,144 | 15,990 | (2 | ) | (30,446 | ) | $ | 92,435 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (30,522 | ) | — | — | — | 30,446 | (76 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 21,379 | — | — | — | (21,303 | ) | 76 | ||||||||||||||
Depreciation of property, plant and equipment | 75,150 | 25,641 | 15,074 | — | — | 115,865 | |||||||||||||||
Other amortization | (228 | ) | 1,075 | 1,623 | — | — | 2,470 | ||||||||||||||
Change in deferred income taxes | 31,361 | 7,165 | 9,488 | — | — | 48,014 | |||||||||||||||
Change in tax credits, net | 3,773 | 119 | 618 | — | — | 4,510 | |||||||||||||||
Allowance for equity funds used during construction | (3,144 | ) | (552 | ) | (334 | ) | — | — | (4,030 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | 37,894 | (2,552 | ) | 3,999 | — | 2,736 | 42,077 | ||||||||||||||
Decrease (increase) in accrued unbilled revenues | (4,381 | ) | (1,727 | ) | 505 | — | — | (5,603 | ) | ||||||||||||
Decrease in fuel oil stock | 17,945 | 870 | 5,517 | — | — | 24,332 | |||||||||||||||
Increase in materials and supplies | (5,392 | ) | (1,706 | ) | (1,251 | ) | — | — | (8,349 | ) | |||||||||||
Increase in regulatory assets | (37,032 | ) | (7,165 | ) | (9,117 | ) | — | — | (53,314 | ) | |||||||||||
Decrease in accounts payable | (10,435 | ) | (3,343 | ) | (9,196 | ) | — | — | (22,974 | ) | |||||||||||
Decrease in prepaid and accrued income and utility revenue taxes | (7,122 | ) | (3,566 | ) | (4,728 | ) | — | — | (15,416 | ) | |||||||||||
Contributions to defined benefit pension and other postretirement benefit plans | (44,650 | ) | (8,083 | ) | (8,143 | ) | — | — | (60,876 | ) | |||||||||||
Other increase in defined benefit pension and other postretirement benefit plans liability | 46,394 | 7,892 | 8,078 | — | — | 62,364 | |||||||||||||||
Change in other assets and liabilities | (10,562 | ) | (1,821 | ) | 4,924 | — | (2,736 | ) | (10,195 | ) | |||||||||||
Net cash provided by (used in) operating activities | 172,177 | 27,391 | 33,047 | (2 | ) | (21,303 | ) | 211,310 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | (164,423 | ) | (35,900 | ) | (37,546 | ) | — | — | (237,869 | ) | |||||||||||
Contributions in aid of construction | 15,699 | 6,160 | 1,774 | — | — | 23,633 | |||||||||||||||
Other | 623 | (196 | ) | — | — | — | 427 | ||||||||||||||
Advances from (to) affiliates | (13,600 | ) | 11,050 | — | — | 2,550 | — | ||||||||||||||
Net cash used in investing activities | (161,701 | ) | (18,886 | ) | (35,772 | ) | — | 2,550 | (213,809 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Common stock dividends | (61,183 | ) | (10,790 | ) | (10,513 | ) | — | 21,303 | (61,183 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 62,196 | — | 13,600 | — | (2,550 | ) | 73,246 | ||||||||||||||
Other | (38 | ) | (2 | ) | (2 | ) | — | — | (42 | ) | |||||||||||
Net cash provided by (used in) financing activities | 165 | (11,192 | ) | 2,799 | — | 18,753 | 10,525 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 10,641 | (2,687 | ) | 74 | (2 | ) | — | 8,026 | |||||||||||||
Cash and cash equivalents, beginning of period | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 18,906 | 2,754 | 3,423 | 102 | — | $ | 25,185 | |||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Consolidating Statement of Cash Flows (unaudited) | |||||||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other | Consolidating | Hawaiian Electric | |||||||||||||||
subsidiaries | adjustments | Consolidated | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income (loss) | $ | 95,861 | 16,230 | 12,484 | (3 | ) | (28,025 | ) | $ | 96,547 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||||
Equity in earnings of subsidiaries | (28,100 | ) | — | — | — | 28,025 | (75 | ) | |||||||||||||
Common stock dividends received from subsidiaries | 16,464 | — | — | — | (16,414 | ) | 50 | ||||||||||||||
Depreciation of property, plant and equipment | 68,046 | 25,036 | 15,474 | — | — | 108,556 | |||||||||||||||
Other amortization | 691 | 1,776 | 1,607 | — | — | 4,074 | |||||||||||||||
Change in deferred income taxes | 64,790 | 8,290 | 9,637 | — | — | 82,717 | |||||||||||||||
Change in tax credits, net | 3,256 | 256 | 130 | — | — | 3,642 | |||||||||||||||
Allowance for equity funds used during construction | (4,558 | ) | (433 | ) | (557 | ) | — | — | (5,548 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | (43,284 | ) | (7,236 | ) | 1,287 | — | 12,326 | (36,907 | ) | ||||||||||||
Decrease (increase) in accrued unbilled revenues | 3,427 | 3,107 | (798 | ) | — | — | 5,736 | ||||||||||||||
Decrease (increase) in fuel oil stock | (36,365 | ) | 3,163 | 1,830 | — | — | (31,372 | ) | |||||||||||||
Increase in materials and supplies | (6,320 | ) | (719 | ) | (266 | ) | — | — | (7,305 | ) | |||||||||||
Increase in regulatory assets | (44,175 | ) | (6,621 | ) | (6,997 | ) | — | — | (57,793 | ) | |||||||||||
Increase (decrease) in accounts payable | 7,872 | (8,518 | ) | (2,835 | ) | — | — | (3,481 | ) | ||||||||||||
Decrease in prepaid and accrued income and utility revenue taxes | (14,006 | ) | (3,562 | ) | (3,097 | ) | — | — | (20,665 | ) | |||||||||||
Contributions to defined benefit pension and other postretirement benefit plans | (45,878 | ) | (8,270 | ) | (8,269 | ) | — | — | (62,417 | ) | |||||||||||
Other increase in defined benefit pension and other postretirement benefit plans liability | 34,421 | 6,133 | 9,307 | — | 49,861 | ||||||||||||||||
Change in other assets and liabilities | (28,970 | ) | (1,120 | ) | (3,192 | ) | — | (12,326 | ) | (45,608 | ) | ||||||||||
Net cash provided by (used in) operating activities | 43,172 | 27,512 | 25,745 | (3 | ) | (16,414 | ) | 80,012 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | (172,872 | ) | (26,331 | ) | (21,767 | ) | — | — | (220,970 | ) | |||||||||||
Contributions in aid of construction | 25,547 | 4,199 | 3,360 | — | — | 33,106 | |||||||||||||||
Advances from (to) affiliates | — | 16,750 | 11,500 | — | (28,250 | ) | — | ||||||||||||||
Net cash used in investing activities | (147,325 | ) | (5,382 | ) | (6,907 | ) | — | (28,250 | ) | (187,864 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Common stock dividends | (54,783 | ) | (9,854 | ) | (6,560 | ) | — | 16,414 | (54,783 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (810 | ) | (400 | ) | (286 | ) | — | — | (1,496 | ) | |||||||||||
Proceeds from issuance of long-term debt | 367,000 | 31,000 | 59,000 | — | — | 457,000 | |||||||||||||||
Repayment of long-term debt | (259,580 | ) | (41,200 | ) | (67,720 | ) | — | — | (368,500 | ) | |||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 16,469 | — | — | — | 28,250 | 44,719 | |||||||||||||||
Other | (1,980 | ) | 167 | (359 | ) | — | — | (2,172 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 66,316 | (20,287 | ) | (15,925 | ) | — | 44,664 | 74,768 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (37,837 | ) | 1,843 | 2,913 | (3 | ) | — | (33,084 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 44,819 | 3,383 | 496 | 108 | — | 48,806 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 6,982 | 5,226 | 3,409 | 105 | — | $ | 15,722 | |||||||||||||
Segment_financial_information_1
Segment financial information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment financial information | ' | ' | ' | ' | ' |
Revenues from external customers | $831,229 | $867,720 | $2,412,023 | $2,536,848 | ' |
Total revenues | 831,229 | 867,720 | 2,412,023 | 2,536,848 | ' |
Income (loss) before income taxes | 71,548 | 73,981 | 189,077 | 196,165 | ' |
Income taxes (benefit) | 22,841 | 25,804 | 65,157 | 69,926 | ' |
Net income | 48,707 | 48,177 | 123,920 | 126,239 | ' |
Preferred stock dividends of subsidiaries | 471 | 471 | 1,417 | 1,417 | ' |
Net income for common stock | 48,236 | 47,706 | 122,503 | 124,822 | ' |
Assets | 10,429,012 | ' | 10,429,012 | ' | 10,149,132 |
Electric utility | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Revenues from external customers | 766,109 | 801,089 | 2,216,058 | 2,340,202 | ' |
Intersegment revenues (eliminations) | 6 | 6 | 18 | 55 | ' |
Total revenues | 766,115 | 801,095 | 2,216,076 | 2,340,257 | ' |
Income (loss) before income taxes | 57,373 | 61,268 | 144,212 | 154,976 | ' |
Income taxes (benefit) | 19,058 | 22,395 | 51,777 | 58,429 | ' |
Net income | 38,315 | 38,873 | 92,435 | 96,547 | ' |
Preferred stock dividends of subsidiaries | 498 | 498 | 1,496 | 1,496 | ' |
Net income for common stock | 37,817 | 38,375 | 90,939 | 95,051 | ' |
Assets | 5,269,758 | ' | 5,269,758 | ' | 5,108,793 |
Bank | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Revenues from external customers | 65,058 | 66,596 | 195,841 | 196,569 | ' |
Total revenues | 65,058 | 66,596 | 195,841 | 196,569 | ' |
Income (loss) before income taxes | 22,808 | 21,627 | 69,265 | 66,964 | ' |
Income taxes (benefit) | 7,532 | 7,419 | 23,915 | 22,690 | ' |
Net income | 15,276 | 14,208 | 45,350 | 44,274 | ' |
Net income for common stock | 15,276 | 14,208 | 45,350 | 44,274 | ' |
Assets | 5,159,372 | ' | 5,159,372 | ' | 5,041,673 |
Other | ' | ' | ' | ' | ' |
Segment financial information | ' | ' | ' | ' | ' |
Revenues from external customers | 62 | 35 | 124 | 77 | ' |
Intersegment revenues (eliminations) | -6 | -6 | -18 | -55 | ' |
Total revenues | 56 | 29 | 106 | 22 | ' |
Income (loss) before income taxes | -8,633 | -8,914 | -24,400 | -25,775 | ' |
Income taxes (benefit) | -3,749 | -4,010 | -10,535 | -11,193 | ' |
Net income | -4,884 | -4,904 | -13,865 | -14,582 | ' |
Preferred stock dividends of subsidiaries | -27 | -27 | -79 | -79 | ' |
Net income for common stock | -4,857 | -4,877 | -13,786 | -14,503 | ' |
Assets | ($118) | ' | ($118) | ' | ($1,334) |
Bank_subsidiary_Details
Bank subsidiary (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Noninterest expense | ' | ' | ' | ' |
Income before income taxes | $71,548 | $73,981 | $189,077 | $196,165 |
Income taxes | 22,841 | 25,804 | 65,157 | 69,926 |
Net income | 48,707 | 48,177 | 123,920 | 126,239 |
American Savings Bank (ASB) | ' | ' | ' | ' |
Interest and dividend income | ' | ' | ' | ' |
Interest and fees on loans | 43,337 | 43,880 | 129,564 | 133,241 |
Interest and dividend on investment and mortgage-related securities | 3,025 | 3,432 | 9,723 | 10,534 |
Total interest and dividend income | 46,362 | 47,312 | 139,287 | 143,775 |
Interest expense | ' | ' | ' | ' |
Interest on deposit liabilities | 1,262 | 1,540 | 3,870 | 5,015 |
Interest on other borrowings | 1,206 | 1,201 | 3,548 | 3,676 |
Total interest expense | 2,468 | 2,741 | 7,418 | 8,691 |
Net interest income | 43,894 | 44,571 | 131,869 | 135,084 |
Provision for loan losses | 54 | 3,580 | 953 | 9,504 |
Net interest income after provision for loan losses | 43,840 | 40,991 | 130,916 | 125,580 |
Noninterest income | ' | ' | ' | ' |
Fees from other financial services | 5,728 | 7,674 | 21,367 | 22,474 |
Fee income on deposit liabilities | 4,819 | 4,527 | 13,566 | 13,127 |
Fee income on other financial products | 2,714 | 1,660 | 6,288 | 4,741 |
Mortgage banking income | 1,547 | 4,077 | 6,896 | 8,297 |
Gains on sale of securities | 0 | 0 | 1,226 | 134 |
Other income | 3,888 | 1,346 | 7,211 | 4,021 |
Total noninterest income | 18,696 | 19,284 | 56,554 | 52,794 |
Noninterest expense | ' | ' | ' | ' |
Compensation and employee benefits | 20,564 | 18,684 | 60,715 | 56,026 |
Occupancy | 4,208 | 4,400 | 12,550 | 12,866 |
Data processing | 2,168 | 2,644 | 7,982 | 7,244 |
Services | 2,424 | 3,062 | 6,855 | 7,066 |
Equipment | 1,825 | 1,762 | 5,469 | 5,299 |
Other expense | 8,539 | 8,096 | 24,634 | 22,909 |
Total noninterest expense | 39,728 | 38,648 | 118,205 | 111,410 |
Income before income taxes | 22,808 | 21,627 | 69,265 | 66,964 |
Income taxes | 7,532 | 7,419 | 23,915 | 22,690 |
Net income | $15,276 | $14,208 | $45,350 | $44,274 |
Bank_subsidiary_Details_2
Bank subsidiary (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $48,707 | $48,177 | $123,920 | $126,239 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | -1,589 | 1,043 | -10,724 | 1,910 |
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | 1,049 | -689 | 7,081 | -1,261 |
Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | 0 | 0 | -738 | -81 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 0 | 488 | 53 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,789 | 3,826 | 17,490 | 11,467 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 3,697 | 2,443 | 11,173 | 7,321 |
Other comprehensive income (loss), net of taxes | -897 | 1,586 | -9,263 | 3,447 |
Comprehensive income | 47,339 | 49,292 | 113,240 | 128,269 |
American Savings Bank (ASB) | ' | ' | ' | ' |
Net income | 15,276 | 14,208 | 45,350 | 44,274 |
Net unrealized gains (losses) on securities: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities arising during the period, net of (taxes) benefits, of $1,049 and ($689) for the three months ended September 30, 2013 and 2012 and $7,081 and ($1,261) for the nine months ended September 30, 2013 and 2012, respectively | -1,589 | 1,043 | -10,724 | 1,910 |
Net unrealized gains (losses) on securities arising during the period, (taxes) benefits | 1,049 | -689 | 7,081 | -1,261 |
Less: reclassification adjustment for net realized gains, included in net income, net of taxes, of nil for the three months ended September 30, 2013 and 2012 and $488 and $53 for the nine months ended September 30, 2013 and 2012, respectively | 0 | 0 | -738 | -81 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 0 | 488 | 53 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 420 | 266 | 3,043 | 769 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 278 | 176 | 2,010 | 508 |
Other comprehensive income (loss), net of taxes | -1,169 | 1,309 | -8,419 | 2,598 |
Comprehensive income | $14,107 | $15,517 | $36,931 | $46,872 |
Bank_subsidiary_Details_3
Bank subsidiary (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Assets | ' | ' | ' | ' |
Available-for-sale investment and mortgage-related securities | $535,264,000 | $671,358,000 | ' | ' |
Investment in stock of Federal Home Loan Bank of Seattle | 93,413,000 | 96,022,000 | ' | ' |
Loans receivable held for investment, net | 4,005,132,000 | 3,737,233,000 | ' | ' |
Loans held for sale, at lower of cost or fair value | 5,829,000 | 26,005,000 | ' | ' |
Other | 475,335,000 | 494,414,000 | ' | ' |
Goodwill | 82,190,000 | 82,190,000 | ' | ' |
Total assets | 10,429,012,000 | 10,149,132,000 | ' | ' |
Liabilities and shareholder's equity | ' | ' | ' | ' |
Other | 512,342,000 | 526,613,000 | ' | ' |
Total liabilities | 8,739,254,000 | 8,520,974,000 | ' | ' |
Common stock | 1,443,583,000 | 1,403,484,000 | ' | ' |
Retained earnings | 247,568,000 | 216,804,000 | ' | ' |
Accumulated other comprehensive income (loss), net of taxes: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities | -701,000 | 10,761,000 | ' | ' |
Retirement benefit plans | -34,402,000 | -36,424,000 | ' | ' |
Accumulated other comprehensive income (loss), net of taxes | -35,686,000 | -26,423,000 | ' | ' |
Total shareholders' equity | 1,655,465,000 | 1,593,865,000 | 1,607,135,000 | 1,528,706,000 |
Total liabilities and shareholders' equity | 10,429,012,000 | 10,149,132,000 | ' | ' |
Other assets | ' | ' | ' | ' |
Premises and equipment, net | 3,776,305,000 | 3,594,829,000 | ' | ' |
Total other assets | 475,335,000 | 494,414,000 | ' | ' |
Other liabilities | ' | ' | ' | ' |
Total other liabilities | 512,342,000 | 526,613,000 | ' | ' |
Balance Sheet related disclosures | ' | ' | ' | ' |
Securities sold under agreements to repurchase | 140,000,000 | 146,000,000 | ' | ' |
American Savings Bank (ASB) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 189,524,000 | 184,430,000 | ' | ' |
Available-for-sale investment and mortgage-related securities | 535,264,000 | 671,358,000 | ' | ' |
Investment in stock of Federal Home Loan Bank of Seattle | 93,413,000 | 96,022,000 | ' | ' |
Loans receivable held for investment | 4,046,184,000 | 3,779,218,000 | ' | ' |
Allowance for loan losses | -41,052,000 | -41,985,000 | ' | ' |
Loans receivable held for investment, net | 4,005,132,000 | 3,737,233,000 | ' | ' |
Loans held for sale, at lower of cost or fair value | 5,829,000 | 26,005,000 | ' | ' |
Other | 248,020,000 | 244,435,000 | ' | ' |
Goodwill | 82,190,000 | 82,190,000 | ' | ' |
Total assets | 5,159,372,000 | 5,041,673,000 | ' | ' |
Liabilities and shareholder's equity | ' | ' | ' | ' |
Deposit liabilities-noninterest-bearing | 1,205,526,000 | 1,164,308,000 | ' | ' |
Deposit liabilities-interest-bearing | 3,105,316,000 | 3,065,608,000 | ' | ' |
Other borrowings | 239,612,000 | 195,926,000 | ' | ' |
Other | 102,172,000 | 117,752,000 | ' | ' |
Total liabilities | 4,652,626,000 | 4,543,594,000 | ' | ' |
Common stock | 335,448,000 | 333,712,000 | ' | ' |
Retained earnings | 195,113,000 | 179,763,000 | ' | ' |
Accumulated other comprehensive income (loss), net of taxes: | ' | ' | ' | ' |
Net unrealized gains (losses) on securities | -701,000 | 10,761,000 | ' | ' |
Retirement benefit plans | -23,114,000 | -26,157,000 | ' | ' |
Accumulated other comprehensive income (loss), net of taxes | -23,815,000 | -15,396,000 | ' | ' |
Total shareholders' equity | 506,746,000 | 498,079,000 | ' | ' |
Total liabilities and shareholders' equity | 5,159,372,000 | 5,041,673,000 | ' | ' |
Other assets | ' | ' | ' | ' |
Bank-owned life insurance | 128,833,000 | 125,726,000 | ' | ' |
Premises and equipment, net | 67,634,000 | 62,458,000 | ' | ' |
Prepaid expenses | 4,394,000 | 13,199,000 | ' | ' |
Accrued interest receivable | 13,372,000 | 13,228,000 | ' | ' |
Mortgage-servicing rights | 11,806,000 | 10,818,000 | ' | ' |
Real estate acquired in settlement of loans, net | 1,488,000 | 6,050,000 | ' | ' |
Other | 20,493,000 | 12,956,000 | ' | ' |
Total other assets | 248,020,000 | 244,435,000 | ' | ' |
Other liabilities | ' | ' | ' | ' |
Accrued expenses | 20,463,000 | 17,103,000 | ' | ' |
Federal and state income taxes payable | 30,249,000 | 35,408,000 | ' | ' |
Cashier's checks | 24,183,000 | 23,478,000 | ' | ' |
Advance payments by borrowers | 5,694,000 | 9,685,000 | ' | ' |
Other | 21,583,000 | 32,078,000 | ' | ' |
Total other liabilities | 102,172,000 | 117,752,000 | ' | ' |
Balance Sheet related disclosures | ' | ' | ' | ' |
Securities sold under agreements to repurchase | 140,000,000 | 146,000,000 | ' | ' |
Advances from Federal Home Loan Bank | $100,000,000 | $50,000,000 | ' | ' |
Bank_subsidiary_Details_4
Bank subsidiary (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Repurchase agreements | ' | ' |
Gross amount of recognized liabilities | $140 | $146 |
Net amount of liabilities presented in the Balance Sheet | 140 | 146 |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 140 | 146 |
Financial instruments | 140 | 146 |
Financial institution | ' | ' |
Repurchase agreements | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 50 | 50 |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 50 | 50 |
Financial instruments | 50 | 50 |
Commercial account holders | ' | ' |
Repurchase agreements | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 90 | 96 |
Gross amount not offset in the Balance Sheet | ' | ' |
Net amount of liabilities presented in the Balance Sheet | 90 | 96 |
Financial instruments | $90 | $96 |
Bank_subsidiary_Details_5
Bank subsidiary (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale securities | ' | ' |
Amortized cost | $536,430 | $653,492 |
Gross unrealized gains | 8,731 | 18,070 |
Gross unrealized losses | -9,897 | -204 |
Total available for sale securities | 535,264 | 671,358 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 221,279 | 32,269 |
Gross unrealized losses, less than 12 months | -9,749 | -204 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,910 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -148 | 0 |
Federal agency obligations | ' | ' |
Available-for-sale securities | ' | ' |
Amortized cost | 99,812 | 168,324 |
Gross unrealized gains | 389 | 3,167 |
Gross unrealized losses | -1,936 | 0 |
Total available for sale securities | 98,265 | 171,491 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 29,755 | 0 |
Gross unrealized losses, less than 12 months | -1,936 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | 0 | ' |
Mortgage-related securities - FNMA, FHLMC and GNMA | ' | ' |
Available-for-sale securities | ' | ' |
Amortized cost | 359,437 | 407,175 |
Gross unrealized gains | 6,308 | 10,412 |
Gross unrealized losses | -7,768 | -204 |
Total available for sale securities | 357,977 | 417,383 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 164,998 | 32,269 |
Gross unrealized losses, less than 12 months | -7,620 | -204 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,910 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -148 | ' |
Municipal bonds | ' | ' |
Available-for-sale securities | ' | ' |
Amortized cost | 77,181 | 77,993 |
Gross unrealized gains | 2,034 | 4,491 |
Gross unrealized losses | -193 | 0 |
Total available for sale securities | 79,022 | 82,484 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ' | ' |
Fair value, less than 12 months | 26,526 | 0 |
Gross unrealized losses, less than 12 months | -193 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | $0 | ' |
Bank_subsidiary_Details_6
Bank subsidiary (Details 6) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in one year or less | $28,120 | ' |
Due after one year through five years | 37,922 | ' |
Due after five years through ten years | 85,760 | ' |
Due after ten years | 25,191 | ' |
Total amortized cost | 176,993 | ' |
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 359,437 | ' |
Total available-for-sale securities, amortized cost | 536,430 | 653,492 |
Fair value | ' | ' |
Due in one year or less | 28,143 | ' |
Due after one year through five years | 38,324 | ' |
Due after five years through ten years | 87,192 | ' |
Due after ten years | 23,628 | ' |
Total fair value | 177,287 | ' |
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 357,977 | ' |
Total available for sale securities | $535,264 | $671,358 |
Bank_subsidiary_Details_7
Bank subsidiary (Details 7) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | $41,004 | $39,463 | $41,985 | $37,906 | ' |
Charge-offs | -865 | -4,151 | -5,648 | -10,035 | ' |
Recoveries | 859 | 918 | 3,762 | 2,435 | ' |
Provision | 54 | 3,580 | 953 | 9,504 | ' |
Valuation allowance, balance at the end of the period | 41,052 | 39,810 | 41,052 | 39,810 | ' |
Valuation allowance, balance at the end of the period | 41,052 | 39,810 | 41,052 | 39,810 | ' |
Ending balance: individually evaluated for impairment | 6,096 | 4,621 | 6,096 | 4,621 | ' |
Ending balance: collectively evaluated for impairment | 34,956 | 35,189 | 34,956 | 35,189 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 4,055,389 | 3,757,903 | 4,055,389 | 3,757,903 | 3,790,856 |
Ending balance: individually evaluated for impairment | 63,110 | 74,878 | 63,110 | 74,878 | ' |
Ending balance: collectively evaluated for impairment | 3,992,279 | 3,683,025 | 3,992,279 | 3,683,025 | ' |
Residential 1-4 family | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 6,357 | 7,212 | 6,068 | 6,500 | ' |
Charge-offs | -106 | -964 | -1,162 | -2,476 | ' |
Recoveries | 157 | 379 | 1,382 | 974 | ' |
Provision | -604 | 100 | -484 | 1,729 | ' |
Valuation allowance, balance at the end of the period | 5,804 | 6,727 | 5,804 | 6,727 | ' |
Valuation allowance, balance at the end of the period | 5,804 | 6,727 | 5,804 | 6,727 | ' |
Ending balance: individually evaluated for impairment | 944 | 324 | 944 | 324 | ' |
Ending balance: collectively evaluated for impairment | 4,860 | 6,403 | 4,860 | 6,403 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 2,015,082 | 1,899,580 | 2,015,082 | 1,899,580 | 1,866,450 |
Ending balance: individually evaluated for impairment | 22,123 | 26,912 | 22,123 | 26,912 | ' |
Ending balance: collectively evaluated for impairment | 1,992,959 | 1,872,668 | 1,992,959 | 1,872,668 | ' |
Commercial real estate | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 4,117 | 2,078 | 2,965 | 1,688 | ' |
Provision | 204 | 4 | 1,356 | 394 | ' |
Valuation allowance, balance at the end of the period | 4,321 | 2,082 | 4,321 | 2,082 | ' |
Valuation allowance, balance at the end of the period | 4,321 | 2,082 | 4,321 | 2,082 | ' |
Ending balance: individually evaluated for impairment | 888 | 7 | 888 | 7 | ' |
Ending balance: collectively evaluated for impairment | 3,433 | 2,075 | 3,433 | 2,075 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 405,037 | 367,765 | 405,037 | 367,765 | 375,677 |
Ending balance: individually evaluated for impairment | 4,484 | 2,929 | 4,484 | 2,929 | ' |
Ending balance: collectively evaluated for impairment | 400,553 | 364,836 | 400,553 | 364,836 | ' |
Home equity line of credit | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 5,009 | 4,843 | 4,493 | 4,354 | ' |
Charge-offs | -44 | -363 | -782 | -402 | ' |
Recoveries | 78 | 7 | 334 | 95 | ' |
Provision | 12 | 378 | 1,010 | 818 | ' |
Valuation allowance, balance at the end of the period | 5,055 | 4,865 | 5,055 | 4,865 | ' |
Valuation allowance, balance at the end of the period | 5,055 | 4,865 | 5,055 | 4,865 | ' |
Ending balance: individually evaluated for impairment | ' | 313 | ' | 313 | ' |
Ending balance: collectively evaluated for impairment | 5,055 | 4,552 | 5,055 | 4,552 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 703,210 | 604,279 | 703,210 | 604,279 | 630,175 |
Ending balance: individually evaluated for impairment | 960 | 1,913 | 960 | 1,913 | ' |
Ending balance: collectively evaluated for impairment | 702,250 | 602,366 | 702,250 | 602,366 | ' |
Residential land | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 2,187 | 3,340 | 4,275 | 3,795 | ' |
Charge-offs | -3 | -1,093 | -238 | -2,340 | ' |
Recoveries | 282 | 226 | 782 | 471 | ' |
Provision | -361 | 1,324 | -2,714 | 1,871 | ' |
Valuation allowance, balance at the end of the period | 2,105 | 3,797 | 2,105 | 3,797 | ' |
Valuation allowance, balance at the end of the period | 2,105 | 3,797 | 2,105 | 3,797 | ' |
Ending balance: individually evaluated for impairment | 1,585 | 2,321 | 1,585 | 2,321 | ' |
Ending balance: collectively evaluated for impairment | 520 | 1,476 | 520 | 1,476 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 18,400 | 29,280 | 18,400 | 29,280 | 25,815 |
Ending balance: individually evaluated for impairment | 12,747 | 25,146 | 12,747 | 25,146 | ' |
Ending balance: collectively evaluated for impairment | 5,653 | 4,134 | 5,653 | 4,134 | ' |
Commercial construction | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 2,305 | 2,255 | 2,023 | 1,888 | ' |
Provision | 44 | -324 | 326 | 43 | ' |
Valuation allowance, balance at the end of the period | 2,349 | 1,931 | 2,349 | 1,931 | ' |
Valuation allowance, balance at the end of the period | 2,349 | 1,931 | 2,349 | 1,931 | ' |
Ending balance: collectively evaluated for impairment | 2,349 | 1,931 | 2,349 | 1,931 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 51,067 | 42,913 | 51,067 | 42,913 | 43,988 |
Ending balance: collectively evaluated for impairment | 51,067 | 42,913 | 51,067 | 42,913 | ' |
Residential construction | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 14 | 3 | 9 | 4 | ' |
Provision | 2 | 5 | 7 | 4 | ' |
Valuation allowance, balance at the end of the period | 16 | 8 | 16 | 8 | ' |
Valuation allowance, balance at the end of the period | 16 | 8 | 16 | 8 | ' |
Ending balance: collectively evaluated for impairment | 16 | 8 | 16 | 8 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 10,460 | 5,648 | 10,460 | 5,648 | 6,171 |
Ending balance: collectively evaluated for impairment | 10,460 | 5,648 | 10,460 | 5,648 | ' |
Commercial loans | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 16,307 | 13,961 | 15,931 | 14,867 | ' |
Charge-offs | -305 | -1,130 | -1,655 | -2,964 | ' |
Recoveries | 166 | 155 | 778 | 511 | ' |
Provision | -361 | 1,344 | 753 | 1,916 | ' |
Valuation allowance, balance at the end of the period | 15,807 | 14,330 | 15,807 | 14,330 | ' |
Valuation allowance, balance at the end of the period | 15,807 | 14,330 | 15,807 | 14,330 | ' |
Ending balance: individually evaluated for impairment | 2,679 | 1,656 | 2,679 | 1,656 | ' |
Ending balance: collectively evaluated for impairment | 13,128 | 12,674 | 13,128 | 12,674 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 749,733 | 704,100 | 749,733 | 704,100 | 721,349 |
Ending balance: individually evaluated for impairment | 22,777 | 17,956 | 22,777 | 17,956 | ' |
Ending balance: collectively evaluated for impairment | 726,956 | 686,144 | 726,956 | 686,144 | ' |
Consumer loans | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 2,399 | 3,797 | 4,019 | 3,806 | ' |
Charge-offs | -407 | -601 | -1,811 | -1,853 | ' |
Recoveries | 176 | 151 | 486 | 384 | ' |
Provision | 42 | 462 | -484 | 1,472 | ' |
Valuation allowance, balance at the end of the period | 2,210 | 3,809 | 2,210 | 3,809 | ' |
Valuation allowance, balance at the end of the period | 2,210 | 3,809 | 2,210 | 3,809 | ' |
Ending balance: collectively evaluated for impairment | 2,210 | 3,809 | 2,210 | 3,809 | ' |
Financing Receivables: | ' | ' | ' | ' | ' |
Total financing receivables | 102,400 | 104,338 | 102,400 | 104,338 | 121,231 |
Ending balance: individually evaluated for impairment | 19 | 22 | 19 | 22 | ' |
Ending balance: collectively evaluated for impairment | 102,381 | 104,316 | 102,381 | 104,316 | ' |
Unallocated | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Valuation allowance, balance at the beginning of the period | 2,309 | 1,974 | 2,202 | 1,004 | ' |
Provision | 1,076 | 287 | 1,183 | 1,257 | ' |
Valuation allowance, balance at the end of the period | 3,385 | 2,261 | 3,385 | 2,261 | ' |
Valuation allowance, balance at the end of the period | 3,385 | 2,261 | 3,385 | 2,261 | ' |
Ending balance: collectively evaluated for impairment | $3,385 | $2,261 | $3,385 | $2,261 | ' |
Bank_subsidiary_Details_8
Bank subsidiary (Details 8) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Pass | Pass | Pass | Pass | Special mention | Special mention | Substandard | Substandard | Doubtful | Doubtful | ||
Minimum | Maximum | |||||||||||
grade | grade | |||||||||||
Credit risk profile by internally assigned grade for loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Categorization of loan grades considered pass grades | ' | ' | ' | ' | 1 | 6 | ' | ' | ' | ' | ' | ' |
Commercial real estate | $405,037 | $375,677 | $332,407 | $314,182 | ' | ' | $40,437 | $25,437 | $28,403 | $29,308 | $3,790 | $6,750 |
Commercial construction | 51,067 | 43,988 | 51,067 | 39,063 | ' | ' | ' | 4,925 | 0 | ' | ' | ' |
Commercial | $749,733 | $721,349 | $661,720 | $638,854 | ' | ' | $18,948 | $24,511 | $65,571 | $53,538 | $3,494 | $4,446 |
Bank_subsidiary_Details_9
Bank subsidiary (Details 9) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | $5,814 | $14,016 | ' |
60-89 days past due | 2,430 | 5,120 | ' |
Greater than 90 days | 29,369 | 41,433 | ' |
Total past due | 37,613 | 60,569 | ' |
Current | 4,017,776 | 3,730,287 | ' |
Total financing receivables | 4,055,389 | 3,790,856 | 3,757,903 |
Recorded Investment greater than 90 days and accruing | 1,746 | 373 | ' |
Residential 1-4 family | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 3,026 | 6,353 | ' |
60-89 days past due | 1,599 | 1,741 | ' |
Greater than 90 days | 15,060 | 24,054 | ' |
Total past due | 19,685 | 32,148 | ' |
Current | 1,995,397 | 1,834,302 | ' |
Total financing receivables | 2,015,082 | 1,866,450 | 1,899,580 |
Commercial real estate | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | ' | 85 | ' |
Greater than 90 days | 3,790 | 6,750 | ' |
Total past due | 3,790 | 6,835 | ' |
Current | 401,247 | 368,842 | ' |
Total financing receivables | 405,037 | 375,677 | 367,765 |
Home equity line of credit | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 658 | 1,077 | ' |
60-89 days past due | 373 | 142 | ' |
Greater than 90 days | 880 | 1,319 | ' |
Total past due | 1,911 | 2,538 | ' |
Current | 701,299 | 627,637 | ' |
Total financing receivables | 703,210 | 630,175 | 604,279 |
Residential land | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 684 | 2,851 | ' |
60-89 days past due | 80 | 75 | ' |
Greater than 90 days | 5,352 | 7,788 | ' |
Total past due | 6,116 | 10,714 | ' |
Current | 12,284 | 15,101 | ' |
Total financing receivables | 18,400 | 25,815 | 29,280 |
Recorded Investment greater than 90 days and accruing | 1,746 | ' | ' |
Commercial construction | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
Current | 51,067 | 43,988 | ' |
Total financing receivables | 51,067 | 43,988 | 42,913 |
Residential construction | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
Current | 10,460 | 6,171 | ' |
Total financing receivables | 10,460 | 6,171 | 5,648 |
Commercial loans | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 1,026 | 3,052 | ' |
60-89 days past due | 166 | 2,814 | ' |
Greater than 90 days | 4,105 | 1,098 | ' |
Total past due | 5,297 | 6,964 | ' |
Current | 744,436 | 714,385 | ' |
Total financing receivables | 749,733 | 721,349 | 704,100 |
Recorded Investment greater than 90 days and accruing | ' | 131 | ' |
Consumer loans | ' | ' | ' |
Credit risk profile based on payment activity for loans | ' | ' | ' |
30-59 days past due | 420 | 598 | ' |
60-89 days past due | 212 | 348 | ' |
Greater than 90 days | 182 | 424 | ' |
Total past due | 814 | 1,370 | ' |
Current | 101,586 | 119,861 | ' |
Total financing receivables | 102,400 | 121,231 | 104,338 |
Recorded Investment greater than 90 days and accruing | ' | $242 | ' |
Bank_subsidiary_Details_10
Bank subsidiary (Details 10) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | $50,772 | $64,887 |
Accruing loans 90 days or more past due | 1,746 | 373 |
Residential 1-4 family | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 18,908 | 26,721 |
Commercial real estate | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 4,483 | 6,750 |
Home equity line of credit | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 1,948 | 2,349 |
Residential land | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 3,606 | 8,561 |
Accruing loans 90 days or more past due | 1,746 | ' |
Commercial loans | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 21,308 | 20,222 |
Accruing loans 90 days or more past due | ' | 131 |
Consumer loans | ' | ' |
Credit risk profile based on nonaccrual loans | ' | ' |
Nonaccrual loans | 519 | 284 |
Accruing loans 90 days or more past due | ' | $242 |
Bank_subsidiary_Details_11
Bank subsidiary (Details 11) (Class of financing receivables, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | $22,708 | $22,708 | $30,120 |
With an allowance recorded | 34,198 | 34,198 | 34,641 |
Recorded investment | 56,906 | 56,906 | 64,761 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 29,545 | 29,545 | 42,189 |
With an allowance recorded | 35,909 | 35,909 | 35,919 |
Unpaid principal balance | 65,454 | 65,454 | 78,108 |
Related Allowance | 6,095 | 6,095 | 6,799 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 21,359 | 25,994 | 71,308 |
With an allowance recorded | 33,812 | 35,297 | 21,382 |
Average recorded investment | 55,171 | 61,291 | 92,690 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 285 | 737 | 2,703 |
With an allowance recorded | 252 | 786 | 848 |
Interest income recognized | 537 | 1,523 | 3,551 |
Residential 1-4 family | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 10,121 | 10,121 | 14,633 |
With an allowance recorded | 7,147 | 7,147 | 4,803 |
Recorded investment | 17,268 | 17,268 | 19,436 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 13,122 | 13,122 | 20,247 |
With an allowance recorded | 7,167 | 7,167 | 4,803 |
Unpaid principal balance | 20,289 | 20,289 | 25,050 |
Related Allowance | 943 | 943 | 384 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 9,777 | 12,304 | 16,688 |
With an allowance recorded | 7,155 | 6,411 | 4,204 |
Average recorded investment | 16,932 | 18,715 | 20,892 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 62 | 294 | 294 |
With an allowance recorded | 83 | 259 | 250 |
Interest income recognized | 145 | 553 | 544 |
Commercial real estate | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | ' | ' | 2,929 |
With an allowance recorded | 4,484 | 4,484 | 3,821 |
Recorded investment | 4,484 | 4,484 | 6,750 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | ' | ' | 2,929 |
With an allowance recorded | 4,536 | 4,536 | 3,840 |
Unpaid principal balance | 4,536 | 4,536 | 6,769 |
Related Allowance | 888 | 888 | 535 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | ' | 1,069 | 7,771 |
With an allowance recorded | 4,028 | 6,157 | 1,295 |
Average recorded investment | 4,028 | 7,226 | 9,066 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | ' | ' | 237 |
With an allowance recorded | 0 | 151 | ' |
Interest income recognized | 0 | 151 | 237 |
Home equity line of credit | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 523 | 523 | 581 |
Recorded investment | 523 | 523 | 581 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 1,068 | 1,068 | 1,374 |
Unpaid principal balance | 1,068 | 1,068 | 1,374 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 526 | 606 | 632 |
With an allowance recorded | ' | ' | 26 |
Average recorded investment | 526 | 606 | 658 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | ' | ' | 1 |
Interest income recognized | ' | ' | 1 |
Residential land | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 5,734 | 5,734 | 7,691 |
With an allowance recorded | 6,101 | 6,101 | 9,984 |
Recorded investment | 11,835 | 11,835 | 17,675 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 6,712 | 6,712 | 10,624 |
With an allowance recorded | 6,228 | 6,228 | 10,364 |
Unpaid principal balance | 12,940 | 12,940 | 20,988 |
Related Allowance | 1,585 | 1,585 | 3,221 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 6,095 | 7,477 | 21,589 |
With an allowance recorded | 6,105 | 7,123 | 7,428 |
Average recorded investment | 12,200 | 14,600 | 29,017 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 216 | 435 | 1,185 |
With an allowance recorded | 102 | 304 | 575 |
Interest income recognized | 318 | 739 | 1,760 |
Commercial loans | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 6,311 | 6,311 | 4,265 |
With an allowance recorded | 16,466 | 16,466 | 16,033 |
Recorded investment | 22,777 | 22,777 | 20,298 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 8,624 | 8,624 | 6,994 |
With an allowance recorded | 17,978 | 17,978 | 16,912 |
Unpaid principal balance | 26,602 | 26,602 | 23,906 |
Related Allowance | 2,679 | 2,679 | 2,659 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 4,941 | 4,518 | 24,605 |
With an allowance recorded | 16,524 | 15,606 | 8,429 |
Average recorded investment | 21,465 | 20,124 | 33,034 |
Interest income recognized: | ' | ' | ' |
With no related allowance recorded | 7 | 8 | 986 |
With an allowance recorded | 67 | 72 | 23 |
Interest income recognized | 74 | 80 | 1,009 |
Consumer loans | ' | ' | ' |
Recorded investment: | ' | ' | ' |
With no related allowance recorded | 19 | 19 | 21 |
Recorded investment | 19 | 19 | 21 |
Unpaid principal balance: | ' | ' | ' |
With no related allowance recorded | 19 | 19 | 21 |
Unpaid principal balance | 19 | 19 | 21 |
Average recorded investment: | ' | ' | ' |
With no related allowance recorded | 20 | 20 | 23 |
Average recorded investment | $20 | $20 | $23 |
Bank_subsidiary_Details_12
Bank subsidiary (Details 12) (Land loans) | 9 Months Ended |
Sep. 30, 2013 | |
Troubled debt restructurings | ' |
Period of interest-only monthly payment term loan | '3 years |
Maximum | ' |
Troubled debt restructurings | ' |
Extension of maturity date | '5 years |
Bank_subsidiary_Details_13
Bank subsidiary (Details 13) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
contract | contract | contract | contract | |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Commitments to borrowers whose loan terms are impaired or modified under troubled debt restructuring | $300 | ' | $300 | ' |
Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 26 | 14 | 58 | 65 |
Pre-modification outstanding recorded investment | 7,883 | 3,100 | 16,866 | 13,106 |
Post-modification outstanding recorded investment | 7,893 | 2,850 | 16,691 | 12,182 |
Minimum period of payment default of loans determined to be TDRs | ' | ' | ' | '90 days |
Troubled debt restructurings that subsequently defaulted | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 4 | ' | 4 | 1 |
Recorded investment | 736 | 488 | 736 | 488 |
Residential 1-4 family | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 14 | 4 | 32 | 26 |
Pre-modification outstanding recorded investment | 2,864 | 1,415 | 8,631 | 5,884 |
Post-modification outstanding recorded investment | 2,874 | 1,332 | 8,712 | 5,614 |
Home equity line of credit | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | ' | ' | 4 | ' |
Pre-modification outstanding recorded investment | ' | ' | 462 | ' |
Post-modification outstanding recorded investment | ' | ' | 215 | ' |
Home equity line of credit | Troubled debt restructurings that subsequently defaulted | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 1 | ' | 1 | ' |
Recorded investment | 67 | ' | 67 | ' |
Residential land | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 9 | 6 | 16 | 21 |
Pre-modification outstanding recorded investment | 2,943 | 1,168 | 4,983 | 4,676 |
Post-modification outstanding recorded investment | 2,943 | 1,001 | 4,974 | 4,022 |
Commercial loans | Troubled debt restructurings real estate loans | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 3 | 4 | 6 | 18 |
Pre-modification outstanding recorded investment | 2,076 | 517 | 2,790 | 2,546 |
Post-modification outstanding recorded investment | 2,076 | 517 | 2,790 | 2,546 |
Commercial loans | Troubled debt restructurings that subsequently defaulted | ' | ' | ' | ' |
Loan modifications determined to be troubled debt restructurings | ' | ' | ' | ' |
Number of contracts | 3 | ' | 3 | 1 |
Recorded investment | $669 | $488 | $669 | $488 |
Retirement_benefits_Details
Retirement benefits (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
American Savings Bank (ASB) | American Savings Bank (ASB) | Hawaiian Electric Industries, Inc. | Hawaiian Electric Industries, Inc. | Electric utility | Electric utility | Electric utility | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Other benefits | Other benefits | Other benefits | Other benefits | ||||
Defined benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions made to defined benefit plans | ' | ' | ' | ' | ' | ' | ' | $62,000,000 | $64,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current estimate of contributions to defined benefit plans in current fiscal year | 83,000,000 | ' | 78,000,000 | 0 | 13,000,000 | 2,000,000 | 2,000,000 | 81,000,000 | ' | 63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Benefits expected to be paid directly by the company in current fiscal year | 2,000,000 | ' | 1,000,000 | ' | ' | 1,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,097,000 | 10,816,000 | 42,307,000 | 32,404,000 | 1,077,000 | 1,054,000 | 3,229,000 | 3,158,000 |
Interest cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,187,000 | 16,868,000 | 48,600,000 | 50,612,000 | 1,891,000 | 2,252,000 | 5,677,000 | 6,756,000 |
Expected return on plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,134,000 | -17,796,000 | -54,401,000 | -53,388,000 | -2,531,000 | -2,579,000 | -7,614,000 | -7,757,000 |
Amortization of net transition obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,000 | 0 | 1,000 | 0 | 0 | 0 | 0 |
Amortization of prior service gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -24,000 | -81,000 | -73,000 | -244,000 | -448,000 | -448,000 | -1,345,000 | -1,345,000 |
Amortization of net actuarial loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,560,000 | 6,425,000 | 28,878,000 | 19,251,000 | 398,000 | 373,000 | 1,203,000 | 1,125,000 |
Net periodic benefit cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,686,000 | 16,233,000 | 65,311,000 | 48,636,000 | 387,000 | 652,000 | 1,150,000 | 1,937,000 |
Impact of PUC D&Os | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,257,000 | -3,460,000 | -28,847,000 | -12,294,000 | -332,000 | -552,000 | -1,018,000 | -1,648,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,429,000 | 12,773,000 | 36,464,000 | 36,342,000 | 55,000 | 100,000 | 132,000 | 289,000 |
Retirement benefits expense | 24,000,000 | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan, expenses recognized | 3,100,000 | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash contributions by the employer to defined contribution plan | $3,700,000 | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sharebased_compensation_Detail
Share-based compensation (Details) | Sep. 30, 2013 | 11-May-10 | Sep. 30, 2013 |
Equity and Incentive Plan (EIP) | Stock Option and Incentive Plan (SOIP) | Nonemployee Director Stock Plan (2011 Director Plan) | |
Share-based compensation | ' | ' | ' |
Shares remaining available for future issuance | 3,600,000 | 0 | 202,460 |
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | 2,600,000 | ' | ' |
Sharebased_compensation_Detail1
Share-based compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 28, 2013 | Jun. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |||||||||
Stock award | Stock award | Nonqualified stock options (NQSOs) | Nonqualified stock options (NQSOs) | Nonqualified stock options (NQSOs) | Nonqualified stock options (NQSOs) | Nonqualified stock options (NQSOs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | |||||||||||||
2004 | 2005 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Share-based compensation expense (in dollars) | $2,500,000 | $1,400,000 | $6,000,000 | $5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of shares granted | ' | ' | ' | ' | 33,184 | 29,448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Fair value of vested stock (in dollars) | ' | ' | ' | ' | 800,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Income tax benefit (in dollars) | 900,000 | 500,000 | 2,200,000 | 1,900,000 | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Lower range of exercise prices (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.02 | ' | ' | ' | ' | ||||||||
Upper range of exercise prices (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.18 | ' | ' | ' | ' | ||||||||
Range of exercise prices (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.02 | $26.18 | ||||||||
Number of shares underlying SARs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 164,000 | ' | 164,000 | ' | ' | 62,000 | 102,000 | ||||||||
Weighted-average remaining contractual life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 2 months 12 days | ' | ' | '7 months 6 days | '1 year 6 months | ||||||||
Weighted-average exercise price of shares outstanding and exercisable (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.12 | ' | $26.12 | ' | ' | $26.02 | $26.18 | ||||||||
Outstanding shares (in shares) | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 14,000 | ' | ' | ' | ' | 164,000 | ' | ' | ||||||||
Weighted-average exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.49 | ' | ' | ' | ' | $26.12 | ' | ' | ||||||||
Aggregate intrinsic value (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ||||||||
Shares exercised | ' | ' | ' | ' | ' | ' | 0 | 8,000 | 14,000 | 41,500 | ' | 0 | 2,000 | 0 | 114,000 | ' | ' | ' | ||||||||
Weighted-average exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | $0 | $20.49 | $20.49 | $21.06 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cash received from exercise (in dollars) | ' | ' | ' | ' | ' | ' | 0 | 164,000 | 287,000 | 874,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Weighted-average price of shares exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $26.18 | $0 | $26.17 | ' | ' | ' | ||||||||
Intrinsic value of shares exercised (in dollars) | ' | ' | ' | ' | ' | ' | 0 | [1] | 89,000 | [1] | 128,000 | [1] | 354,000 | [1] | ' | 0 | [2] | 3,000 | [2] | 0 | [2] | 197,000 | [2] | ' | ' | ' |
Tax benefit realized for the deduction of exercises (in dollars) | ' | ' | ' | ' | ' | ' | $0 | $35,000 | $50,000 | $138,000 | ' | $0 | $1,000 | $0 | $77,000 | ' | ' | ' | ||||||||
[1] | Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option. | |||||||||||||||||||||||||
[2] | Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalent rights exceeds the exercise price of the right. |
Sharebased_compensation_Detail2
Share-based compensation (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||
Restricted shares | Restricted shares | Restricted shares | Restricted shares | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | |||||||||||||
Restricted stock awards and restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, beginning of period (in shares) | ' | ' | ' | ' | 14,807 | 9,005 | 46,807 | 9,005 | 300,313 | 319,071 | 315,094 | 247,286 | ||||||||
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | 0 | 111,231 | 94,846 | ||||||||
Vested (in shares) | ' | ' | ' | ' | -1,000 | ' | -33,000 | ' | -2,500 | -2,500 | -116,544 | -23,997 | ||||||||
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -11,321 | -3,346 | -19,289 | -4,910 | ||||||||
Outstanding, end of period (in shares) | ' | ' | ' | ' | 13,807 | 9,005 | 13,807 | 9,005 | 290,492 | 313,225 | 290,492 | 313,225 | ||||||||
Weighted-average grant-date fair value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, beginning of period (in dollars per share) | ' | ' | ' | ' | $22.45 | [1] | $22.21 | [1] | $24.45 | [1] | $22.21 | [1] | $25.15 | [2] | $22.81 | [2] | $22.82 | [2] | $21.80 | [2] |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $26.48 | [2] | $0 | [2] | $26.88 | [2] | $26 | [2] | ||||
Vested (in dollars per share) | ' | ' | ' | ' | $24.68 | [1] | ' | $25.35 | [1] | ' | $22.31 | [2] | $22.31 | [2] | $20.39 | [2] | $24.69 | [2] | ||
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $25.88 | [2] | $24.63 | [2] | $25.62 | [2] | $24.92 | [2] | ||||
Outstanding, end of period (in dollars per share) | ' | ' | ' | ' | $22.29 | [1] | $22.21 | [1] | $22.29 | [1] | $22.21 | [1] | $25.16 | [2] | $22.80 | [2] | $25.16 | [2] | $22.80 | [2] |
Total weighted-average grant-date fair value | $100,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $3,000,000 | $2,500,000 | ||||||||
Unrecognized compensation cost | ' | ' | ' | ' | ' | 100,000 | ' | ' | 4,200,000 | ' | 4,200,000 | ' | ||||||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | ' | ' | ' | '1 year 2 months 12 days | ' | ' | ' | ' | '2 years 6 months | ' | ||||||||
Fair value of vested stock (in dollars) | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | 3,600,000 | 700,000 | ||||||||
Tax benefits realized for the tax deductions | $900,000 | $500,000 | $2,200,000 | $1,900,000 | ' | ' | $200,000 | ' | ' | ' | $1,000,000 | $200,000 | ||||||||
[1] | Weighted-average grant-date fair value per share based on the closing or average price of HEI common stock on the date of grant. | |||||||||||||||||||
[2] | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Sharebased_compensation_Detail3
Share-based compensation (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Weighted-average grant-date fair value per share | ' | ' | ' | ' | ||||
Total weighted-average grant-date fair value | $100,000 | $0 | ' | ' | ||||
Tax benefits | 900,000 | 500,000 | 2,200,000 | 1,900,000 | ||||
Long-term incentive plan (LTIP) | ' | ' | ' | ' | ||||
Share-based compensation | ' | ' | ' | ' | ||||
Payout low end of range (as a percent) | ' | ' | 0.00% | [1] | ' | |||
Payout high end of range (as a percent) | ' | ' | 200.00% | ' | ||||
LTIP linked to TRS | ' | ' | ' | ' | ||||
Share-based compensation | ' | ' | ' | ' | ||||
Period for calculating total return to shareholders | ' | ' | '3 years | ' | ||||
LTIP linked to TRS and other performance conditions (in shares) | ' | ' | ' | ' | ||||
Outstanding, beginning of period (in shares) | 235,064 | 239,407 | 239,256 | 197,385 | ||||
Granted (in shares) | 1,505 | 1,723 | 91,038 | 80,647 | ||||
Vested (in shares) | ' | ' | -87,753 | -35,397 | ||||
Forfeited (in shares) | -4,442 | -2,450 | -10,414 | -3,955 | ||||
Outstanding, end of period (in shares) | 232,127 | 238,680 | 232,127 | 238,680 | ||||
Weighted-average grant-date fair value per share | ' | ' | ' | ' | ||||
Outstanding, beginning of period (in dollars per share) | $32.87 | [1] | $29.12 | [1] | $29.12 | [1] | $25.94 | [1] |
Granted (in dollars per share) | $32.69 | [1] | $30.71 | [1] | $32.69 | [1] | $30.71 | [1] |
Vested (in dollars per share) | ' | ' | $22.45 | [1] | $14.85 | [1] | ||
Forfeited (in dollars per share) | $32.40 | [1] | $31.09 | [1] | $32.72 | [1] | $30.82 | [1] |
Outstanding, end of period (in dollars per share) | $32.88 | [1] | $29.11 | [1] | $32.88 | [1] | $29.11 | [1] |
Total weighted-average grant-date fair value | ' | 100,000 | 3,000,000 | 2,500,000 | ||||
Risk-free interest rate (as a percent) | ' | ' | 0.38% | 0.33% | ||||
Expected life | ' | ' | '3 years | '3 years | ||||
Expected volatility (as a percent) | ' | ' | 19.40% | 25.30% | ||||
Range of expected volatility for Peer Group, minimum (as a percent) | ' | ' | 12.40% | 15.50% | ||||
Range of expected volatility for Peer Group, maximum (as a percent) | ' | ' | 25.30% | 34.50% | ||||
Grant date fair value (in dollars per share) | $32.69 | $30.71 | $32.69 | $30.71 | ||||
Fair value of vested stock (in dollars) | ' | ' | 2,200,000 | 600,000 | ||||
Tax benefits | ' | ' | 900,000 | 200,000 | ||||
Amount of shares settled | ' | ' | 70,205 | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options Expirations in Period | ' | ' | 17,548 | ' | ||||
Unrecognized compensation cost | 2,900,000 | ' | 2,900,000 | ' | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | '1 year 3 months 18 days | ' | ||||
2011-2013 LTIP linked to TRS | ' | ' | ' | ' | ||||
Share-based compensation | ' | ' | ' | ' | ||||
Average period used to calculate performance goals | ' | ' | '3 years | ' | ||||
2012-2014 LTIP linked to TRS | ' | ' | ' | ' | ||||
Share-based compensation | ' | ' | ' | ' | ||||
Average period used to calculate performance goals | ' | ' | '3 years | ' | ||||
2013-2015 LTIP linked to TRS | ' | ' | ' | ' | ||||
Share-based compensation | ' | ' | ' | ' | ||||
Average period used to calculate performance goals | ' | ' | '3 years | ' | ||||
LTIP awards linked to other performance conditions | ' | ' | ' | ' | ||||
LTIP linked to TRS and other performance conditions (in shares) | ' | ' | ' | ' | ||||
Outstanding, beginning of period (in shares) | 304,473 | 295,184 | 247,175 | 182,498 | ||||
Granted (in shares) | 1,504 | 4,148 | 120,399 | 122,852 | ||||
Vested (in shares) | ' | ' | -18,280 | ' | ||||
Cancelled (in shares) | 0 | -17,911 | -37,346 | -17,911 | ||||
Forfeited (in shares) | -4,881 | -3,676 | -10,852 | -9,694 | ||||
Outstanding, end of period (in shares) | 301,096 | 277,745 | 301,096 | 277,745 | ||||
Weighted-average grant-date fair value per share | ' | ' | ' | ' | ||||
Outstanding, beginning of period (in dollars per share) | $26.12 | [2] | $23.95 | [2] | $25.04 | [2] | $22.63 | [2] |
Granted (in dollars per share) | $27.11 | [2] | $27.30 | [2] | $26.89 | [2] | $26.05 | [2] |
Vested (in dollars per share) | ' | ' | $18.95 | [2] | ' | |||
Cancelled (in dollars per share) | $0 | [2] | $18.95 | [2] | $24.96 | [2] | $18.95 | [2] |
Forfeited (in dollars per share) | $26.53 | [2] | $24.78 | [2] | $26.20 | [2] | $24.44 | [2] |
Outstanding, end of period (in dollars per share) | $26.12 | [2] | $24.31 | [2] | $26.12 | [2] | $24.31 | [2] |
Total weighted-average grant-date fair value | ' | 100,000 | ' | 3,200,000 | ||||
Fair value of vested stock (in dollars) | ' | ' | 600,000 | ' | ||||
Tax benefits | ' | ' | 200,000 | ' | ||||
Unrecognized compensation cost | $3,700,000 | ' | $3,700,000 | ' | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | ' | ' | '1 year 4 months 24 days | ' | ||||
[1] | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. | |||||||
[2] | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Earnings_per_share_and_shareho2
Earnings per share and shareholders' equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 20, 2013 | Mar. 19, 2013 |
Basic | ' | ' | ' | ' | ' | ' |
Distributed earnings (in dollars per share) | $0.31 | ' | $0.93 | ' | ' | ' |
Earnings Per Share, Basic and Diluted, Distributed | ' | $0.31 | ' | $0.93 | ' | ' |
Undistributed earnings (loss) (in dollars per share) | $0.18 | ' | $0.31 | ' | ' | ' |
Earnings Per Share, Basic and Diluted, Undistributed | ' | $0.18 | ' | $0.36 | ' | ' |
Earnings Per Share, basic (in dollars per share) | $0.49 | $0.49 | $1.24 | $1.29 | ' | ' |
Diluted | ' | ' | ' | ' | ' | ' |
Distributed earnings (in dollars per share) | $0.31 | ' | $0.93 | ' | ' | ' |
Undistributed earnings (losses) (in dollars per share) | $0.17 | ' | $0.30 | ' | ' | ' |
Earnings Per Share, diluted (in dollars per share) | $0.48 | $0.49 | $1.23 | $1.29 | ' | ' |
Antidilutive effect of HEI common stock | ' | ' | ' | ' | ' | ' |
Antidilutive effects of SARs shares that were not included in the computation of diluted EPS (in shares) | ' | ' | ' | 0 | ' | ' |
Earnings Per Share, Basic and Diluted | ' | $0.49 | ' | $1.29 | ' | ' |
Equity forward transaction | ' | ' | ' | ' | ' | ' |
Public offering related to equity forward transaction (in shares) | ' | ' | ' | ' | ' | 6,100,000 |
Closing price of common stock (in dollar per share) | ' | ' | ' | ' | ' | $27.01 |
Offering related to underwriters exercising their over-allotment option under equity forward transaction (in shares) | ' | ' | ' | ' | 900,000 | ' |
Shares borrowed by forward counterparty from third party | 7,000,000 | ' | 7,000,000 | ' | ' | ' |
Sale of common stock related to equity forward transaction (in dollars per share) | $26.75 | ' | $26.75 | ' | ' | $26.75 |
Underwriting discount (in dollars per share) | $1.00 | ' | $1.00 | ' | ' | ' |
Forward sale price (in dollars per share) | $25.75 | ' | $25.75 | ' | ' | ' |
Initial fair value (in dollars per share) | $0 | ' | $0 | ' | ' | ' |
Cash in exchange of physical delivery of shares on settlement | $175 | ' | $175 | ' | ' | ' |
Delivery of cash on settlement | 6 | ' | 6 | ' | ' | ' |
Underwriting discount included in delivery of cash | $7 | ' | $7 | ' | ' | ' |
Delivery of net shares on settlement | 212,000 | ' | 212,000 | ' | ' | ' |
Stock appreciation rights (SARs) | Common stock | ' | ' | ' | ' | ' | ' |
Antidilutive effect of HEI common stock | ' | ' | ' | ' | ' | ' |
Antidilutive effects of SARs shares that were not included in the computation of diluted EPS (in shares) | ' | ' | 164,000 | ' | ' | ' |
Earnings_per_share_and_shareho3
Earnings per share and shareholders' equity (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Interest expense | $20,304 | $20,020 | $59,705 | $58,758 |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | -5,789 | -3,826 | -17,490 | -11,467 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 5,156 | 3,342 | 15,468 | 10,026 |
Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Total reclassifications | 692 | 543 | 1,461 | 1,537 |
Derivatives qualified as cash flow hedges Interest rate contracts (settled in 2011) | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Revenues-bank (net gains on sales of securities) | 0 | 0 | -738 | -81 |
Interest expense | 59 | 59 | 177 | 177 |
Retirement benefit plan items | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 5,789 | 3,826 | 17,490 | 11,467 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | ($5,156) | ($3,342) | ($15,468) | ($10,026) |
Fair_value_measurements_Detail
Fair value measurements (Details) (Unused lines of credit, USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Unused lines of credit | ' |
Off-balance sheet financial instruments | ' |
HECO-obligated preferred securities of trust subsidiary | $0 |
Fair_value_measurements_Detail1
Fair value measurements (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Financial liabilities | ' | ' | |
Short-term borrowings-other than bank | $131,341,000 | $83,693,000 | |
Other bank borrowings | 239,612,000 | 195,926,000 | |
Level 2 | ' | ' | |
Financial assets | ' | ' | |
Derivative assets | 558,000 | [1] | ' |
Carrying or notional amount | ' | ' | |
Financial assets | ' | ' | |
Money market funds | 10,000 | 10,000 | |
Available-for-sale investment and mortgage-related securities | 535,264,000 | 671,358,000 | |
Investment in stock of Federal Home Loan Bank of Seattle | 93,413,000 | 96,022,000 | |
Loans receivable, net | 4,010,961,000 | 3,763,238,000 | |
Derivative assets | 24,196,000 | ' | |
Financial liabilities | ' | ' | |
Deposit liabilities | 4,310,842,000 | 4,229,916,000 | |
Short-term borrowings-other than bank | 131,341,000 | 83,693,000 | |
Other bank borrowings | 239,612,000 | 195,926,000 | |
Long-term debt, net-other than bank | 1,422,880,000 | 1,422,872,000 | |
Derivative liabilities | 22,185,000 | ' | |
Carrying or notional amount | American Savings Bank (ASB) | ' | ' | |
Financial liabilities | ' | ' | |
Loan commitments and unused lines and letters of credit | 1,600,000,000 | 1,500,000,000 | |
Notional amount of loans serviced | 1,400,000,000 | 1,300,000,000 | |
Estimated fair value | ' | ' | |
Financial assets | ' | ' | |
Money market funds | 10,000 | 10,000 | |
Available-for-sale investment and mortgage-related securities | 535,264,000 | 671,358,000 | |
Investment in stock of Federal Home Loan Bank of Seattle | 93,413,000 | 96,022,000 | |
Loans receivable, net | 4,149,137,000 | 3,957,752,000 | |
Derivative assets | 558,000 | ' | |
Financial liabilities | ' | ' | |
Deposit liabilities | 4,313,560,000 | 4,235,527,000 | |
Short-term borrowings-other than bank | 131,341,000 | 83,693,000 | |
Other bank borrowings | 252,230,000 | 212,163,000 | |
Long-term debt, net-other than bank | 1,431,434,000 | 1,481,004,000 | |
Derivative liabilities | 275,000 | ' | |
Estimated fair value | Level 1 | ' | ' | |
Financial assets | ' | ' | |
Derivative assets | 0 | ' | |
Financial liabilities | ' | ' | |
Derivative liabilities | 202,000 | ' | |
Estimated fair value | Level 2 | ' | ' | |
Financial assets | ' | ' | |
Money market funds | 10,000 | 10,000 | |
Available-for-sale investment and mortgage-related securities | 535,264,000 | 671,358,000 | |
Investment in stock of Federal Home Loan Bank of Seattle | 93,413,000 | 96,022,000 | |
Derivative assets | 558,000 | ' | |
Financial liabilities | ' | ' | |
Deposit liabilities | 4,313,560,000 | 4,235,527,000 | |
Short-term borrowings-other than bank | 131,341,000 | 83,693,000 | |
Other bank borrowings | 252,230,000 | 212,163,000 | |
Long-term debt, net-other than bank | 1,431,434,000 | 1,481,004,000 | |
Derivative liabilities | 73,000 | ' | |
Estimated fair value | Level 3 | ' | ' | |
Financial assets | ' | ' | |
Loans receivable, net | 4,149,137,000 | 3,957,752,000 | |
Estimated fair value | American Savings Bank (ASB) | ' | ' | |
Financial liabilities | ' | ' | |
Loan commitments and unused lines and letters of credit | 600,000 | 1,200,000 | |
Servicing rights on loans | $16,600,000 | $11,900,000 | |
[1] | Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. |
Fair_value_measurements_Detail2
Fair value measurements (Details 3) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||
Level 2 | Level 2 | Level 2 | Level 1 | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a recurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | Fair value measurements on a nonrecurring basis | |||||
Interest rate lock commitments | Forward sale contracts | Forward sale contracts | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | American Savings Bank (ASB) | American Savings Bank (ASB) | Estimated fair value | Estimated fair value | Level 3 | Level 3 | ||||||
Bank | Bank | Other | Other | Mortgage-related securities - FNMA, FHLMC and GNMA | Mortgage-related securities - FNMA, FHLMC and GNMA | Federal agency obligations | Federal agency obligations | Municipal bonds | Municipal bonds | |||||||||||||||
Bank | Bank | Bank | Bank | Bank | Bank | |||||||||||||||||||
Fair value measurements on a recurring and nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Money market funds | ' | ' | ' | ' | ' | ' | $10,000 | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Available-for-sale securities | ' | ' | ' | ' | 535,264,000 | 671,358,000 | ' | ' | 357,977,000 | 417,383,000 | 98,265,000 | 171,491,000 | 79,022,000 | 82,484,000 | ' | ' | ' | ' | ' | ' | ||||
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Derivative assets | 558,000 | [1] | 556,000 | [1] | 2,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Derivative liabilities | ' | ' | 73,000 | [1] | 202,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 21,000,000 | 5,000,000 | 21,000,000 | ||||
Real estate acquired in settlement of loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3,000,000 | 0 | 3,000,000 | ||||
Adjustments to fair value of loans held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ||||
[1] | Derivatives are carried at fair value with changes in value reflected in the balance sheet in other assets or other liabilities and included in mortgage banking income. |
Fair_value_measurements_Detail3
Fair value measurements (Details 4) (Fair Value, Inputs, Level 3, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Fair value measurements | ' | |
Fair value | $4,959 | |
Residential loan | Fair value of property or collateral | ' | |
Fair value measurements | ' | |
Fair value | 4,028 | |
Appraised value, weighted average rate (as a percent) | 81.00% | [1] |
Residential loan | Fair value of property or collateral | Minimum | ' | |
Fair value measurements | ' | |
Appraised value (as a percent) | 44.00% | [1] |
Residential loan | Fair value of property or collateral | Maximum | ' | |
Fair value measurements | ' | |
Appraised value (as a percent) | 96.00% | [1] |
Home equity line of credit | Fair value of property or collateral | ' | |
Fair value measurements | ' | |
Fair value | 172 | |
Appraised value, weighted average rate (as a percent) | 50.00% | [1] |
Home equity line of credit | Fair value of property or collateral | Minimum | ' | |
Fair value measurements | ' | |
Appraised value (as a percent) | 46.00% | [1] |
Home equity line of credit | Fair value of property or collateral | Maximum | ' | |
Fair value measurements | ' | |
Appraised value (as a percent) | 50.00% | [1] |
Commercial loan 2 | Fair value of property or collateral | ' | |
Fair value measurements | ' | |
Fair value | 759 | |
Fair value, weighted average rate (as a percent) | 60.00% | [1] |
Commercial loan 2 | Fair value of property or collateral | Minimum | ' | |
Fair value measurements | ' | |
Fair value of business assets (as a percent) | 31.00% | [1] |
Commercial loan 2 | Fair value of property or collateral | Maximum | ' | |
Fair value measurements | ' | |
Fair value of business assets (as a percent) | 91.00% | [1] |
Real estate acquired in settlement of loans | Fair value of property or collateral | ' | |
Fair value measurements | ' | |
Fair value | $192 | |
Appraised value, weighted average rate (as a percent) | 90.00% | [1] |
Real estate acquired in settlement of loans | Fair value of property or collateral | Minimum | ' | |
Fair value measurements | ' | |
Appraised value (as a percent) | 81.00% | [1] |
Real estate acquired in settlement of loans | Fair value of property or collateral | Maximum | ' | |
Fair value measurements | ' | |
Appraised value (as a percent) | 95.00% | [1] |
[1] | Represent percent of outstanding principal balance. |
Cash_flows_Details
Cash flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid to non-affiliates | $62 | $61 |
Income taxes paid | 2 | 0 |
Supplemental disclosures of noncash activities | ' | ' |
Common stock dividends reinvested in HEI common stock | 18 | 18 |
Increases in common stock related to director and officer compensatory plans | 3 | 5 |
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 |
Real estate acquired in settlement of loans | 4 | 7 |
Loans transferred from held-for-investment to held-for-sale | $25 | ' |
Credit_agreement_and_longterm_1
Credit agreement and long-term debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 06, 2013 | Mar. 07, 2013 |
Hawaiian Electric Industries, Inc. | Hawaiian Electric Industries, Inc. | Hawaiian Electric Industries, Inc. | Line of credit facility | Series 2013A Senior note 3.99%, due 2023 | HEI medium-term note 5.25%, due 2013 | |||||
Minimum | Maximum | item | ||||||||
Credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving noncollateralized credit facility with a letter of credit sub-facility | ' | ' | ' | ' | ' | ' | ' | $125,000,000 | ' | ' |
Number of financial institutions | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Changes in long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes issued through private placement | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' |
Debt instrument, stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.99% | 5.25% |
Consolidated net worth | 1,655,465,000 | 1,593,865,000 | 1,607,135,000 | 1,528,706,000 | ' | 975,000,000 | ' | ' | ' | ' |
Actual Net Worth as calculated per the agreement | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalization ratio required to be maintained as per the debt covenant (as a percent) | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Actual capitalization ratio (as a percent) | ' | ' | ' | ' | 17.00% | ' | ' | ' | ' | ' |
Refinancing of unsecured debt payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Equity [Abstract] | ' |
Out-of-period income tax benefit | $3.10 |
Out-of-period tax benefit related to utilities | $2.70 |
Unconsolidated_variable_intere2
Unconsolidated variable interest entities (Details) - HECO (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2004 | Mar. 31, 2004 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2004 | Mar. 31, 2004 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | HECO Capital Trust III | ||||||
entity | item | AES Hawaii, Inc. (AES Hawaii) | AES Hawaii, Inc. (AES Hawaii) | AES Hawaii, Inc. (AES Hawaii) | AES Hawaii, Inc. (AES Hawaii) | Kalaeloa Partners, L.P. (Kalaeloa) | Kalaeloa Partners, L.P. (Kalaeloa) | Kalaeloa Partners, L.P. (Kalaeloa) | Kalaeloa Partners, L.P. (Kalaeloa) | Hamakua Energy Partners, L.P. (HEP) | Hamakua Energy Partners, L.P. (HEP) | Hamakua Energy Partners, L.P. (HEP) | Hamakua Energy Partners, L.P. (HEP) | HPOWER | HPOWER | HPOWER | HPOWER | Other IPPs | Other IPPs | Other IPPs | Other IPPs | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||||||||||
kW | 2004 Trust Preferred Securities | 2004 Trust Preferred Securities | 2004 Trust Preferred Securities | 2004 Trust Preferred Securities | Trust Common Securities | Trust Common Securities | Trust Common Securities | Trust Common Securities | ||||||||||||||||||||||||||||||||||||||||||
entity | item | |||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated variable interest entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of 2004 Trust Preferred Securities issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend rate on 2004 Trust Preferred Securities (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Liquidation preference | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | $1,500,000 | ' |
Principal amount of 2004 Debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Investment in 2004 Debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,500,000 | ' | 51,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance of Trust Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 50,000,000 | 1,500,000 | ' | 1,500,000 | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend distributions on Trust Preferred Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 2,400,000 | ' | ' | ' | ' | ' | ' |
Common dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' |
Power purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of power purchase agreements (PPAs) | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum capacity of small power production facilities (in kilowatts) | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities currently not required to be consolidated as VIEs | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of power purchase from AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and HPOWER | ' | ' | ' | ' | ' | ' | ' | 91.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases from IPPs | 195,000,000 | 187,000,000 | 527,000,000 | 540,000,000 | ' | 143,280,000 | 135,507,000 | 389,706,000 | 401,423,000 | 38,000,000 | 38,000,000 | 98,000,000 | 109,000,000 | 80,000,000 | 78,000,000 | 223,000,000 | 230,000,000 | 15,000,000 | 19,000,000 | 36,000,000 | 48,000,000 | 17,000,000 | 18,000,000 | 44,000,000 | 48,000,000 | 45,000,000 | 34,000,000 | 126,000,000 | 105,000,000 | 34,480,000 | 37,693,000 | 93,880,000 | 108,996,000 | 17,101,000 | 13,499,000 | 43,083,000 | 29,421,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of firm capacity producers declining to provide financial information to determine primary beneficiary status | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum potential number of IPP entities consolidated into company in the future | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | $206,803,000 | ' | $206,803,000 | ' | $212,379,000 | ' | ' | ' | ' | ' | ' | ' | ' | $24,000,000 | ' | $24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxes_Details_HECO
Taxes (Details) - HECO (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | ||
Revenue taxes | ' | ' | ' |
Revenue taxes included in Operating revenues | ' | $198 | $212 |
Revenue taxes included as expense in Taxes, other than income taxes | ' | 198 | 212 |
Out-of-period tax benefit related to utilities | $2.70 | ' | ' |
Retirement_benefits_Details_HE
Retirement benefits (Details) - HECO (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Pension benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||
Retirement benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions made to defined benefit plans | ' | ' | ' | $61,000,000 | $62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current estimate of contributions to defined benefit plans in current fiscal year | 83,000,000 | ' | 78,000,000 | 81,000,000 | ' | 63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefits expected to be paid directly by the company in current fiscal year, comparable to prior year | 2,000,000 | ' | 1,000,000 | 1,000,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | ' | ' | ' | 14,097,000 | 10,816,000 | 42,307,000 | 32,404,000 | 13,620,000 | 10,400,000 | 40,861,000 | 31,202,000 | 1,077,000 | 1,054,000 | 3,229,000 | 3,158,000 | 1,041,000 | 1,003,000 | 3,122,000 | 3,010,000 |
Interest cost | ' | ' | ' | ' | ' | ' | 16,187,000 | 16,868,000 | 48,600,000 | 50,612,000 | 14,780,000 | 15,364,000 | 44,339,000 | 46,090,000 | 1,891,000 | 2,252,000 | 5,677,000 | 6,756,000 | 1,822,000 | 2,175,000 | 5,466,000 | 6,527,000 |
Expected return on plan assets | ' | ' | ' | ' | ' | ' | -18,134,000 | -17,796,000 | -54,401,000 | -53,388,000 | -16,138,000 | -16,001,000 | -48,413,000 | -48,003,000 | -2,531,000 | -2,579,000 | -7,614,000 | -7,757,000 | -2,502,000 | -2,548,000 | -7,502,000 | -7,646,000 |
Amortization of net transition obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,000 | ' | -6,000 |
Amortization of net prior service gain | ' | ' | ' | ' | ' | ' | -24,000 | -81,000 | -73,000 | -244,000 | -116,000 | -173,000 | -348,000 | -517,000 | -448,000 | -448,000 | -1,345,000 | -1,345,000 | -451,000 | -450,000 | -1,353,000 | -1,352,000 |
Amortization of net actuarial loss | ' | ' | ' | ' | ' | ' | 9,560,000 | 6,425,000 | 28,878,000 | 19,251,000 | 8,649,000 | 5,857,000 | 25,948,000 | 17,571,000 | 398,000 | 373,000 | 1,203,000 | 1,125,000 | 387,000 | 363,000 | 1,159,000 | 1,091,000 |
Net periodic benefit cost | ' | ' | ' | ' | ' | ' | 21,686,000 | 16,233,000 | 65,311,000 | 48,636,000 | 20,795,000 | 15,447,000 | 62,387,000 | 46,343,000 | 387,000 | 652,000 | 1,150,000 | 1,937,000 | 297,000 | 541,000 | 892,000 | 1,624,000 |
Impact of PUC D&Os | ' | ' | ' | ' | ' | ' | -9,257,000 | -3,460,000 | -28,847,000 | -12,294,000 | -9,257,000 | -3,460,000 | -28,847,000 | -12,294,000 | -332,000 | -552,000 | -1,018,000 | -1,648,000 | -332,000 | -552,000 | -1,018,000 | -1,648,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | ' | ' | ' | ' | ' | ' | 12,429,000 | 12,773,000 | 36,464,000 | 36,342,000 | 11,538,000 | 11,987,000 | 33,540,000 | 34,049,000 | 55,000 | 100,000 | 132,000 | 289,000 | -35,000 | -11,000 | -126,000 | -24,000 |
Retirement benefits expense | 24,000,000 | 27,000,000 | ' | 21,000,000 | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | '5 years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan, expenses recognized | $3,100,000 | $2,700,000 | ' | $400,000 | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_benefits_Details_2_
Retirement benefits (Details 2) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | ($5,789) | ($3,826) | ($17,490) | ($11,467) |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 5,156 | 3,342 | 15,468 | 10,026 |
Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Total reclassifications | 692 | 543 | 1,461 | 1,537 |
Retirement benefit plan items | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 5,789 | 3,826 | 17,490 | 11,467 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | -5,156 | -3,342 | -15,468 | -10,026 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | -5,173 | -3,419 | -15,520 | -10,255 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 5,156 | 3,342 | 15,468 | 10,026 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plan items | Amount reclassified from AOCI | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 5,173 | 3,419 | 15,520 | 10,255 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | -5,156 | -3,342 | -15,468 | -10,026 |
Total reclassifications | $17 | $77 | $52 | $229 |
Commitments_and_contingencies_2
Commitments and contingencies (Details) - HECO (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||||
Sep. 30, 2013 | 31-May-13 | Oct. 19, 2012 | Jun. 30, 2013 | Apr. 30, 2013 | Nov. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jan. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jan. 28, 2013 | Dec. 31, 2012 | Nov. 07, 2013 | |
item | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | Maui Electric Company, Limited (MECO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light Company, Inc. (HELCO) | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | East Oahu transmission project | Customer Information System Project | Customer Information System Project | Customer Information System Project | Customer Information System Project | CIP CT-1 and CIS projects | Subsequent Event | |
item | item | kW | Hawaiian Electric Company, Inc. and Subsidiaries | Maui Electric Company, Limited (MECO) | Hawaii Electric Light Company, Inc. (HELCO) | Group of subsidiaries | Group of subsidiaries | Group of subsidiaries | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||||
item | |||||||||||||||||||||||||||||||
Regulatory projects and legal obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Project costs to be written off, subject to approval by PUC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' |
After-tax charge to net income due to write-off of project costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,100,000 | 3,200,000 | 3,400,000 | 24,000,000 | ' | ' | ' |
Remaining recoverable project costs included in rate base, in accordance with the settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,000,000 | ' |
Term of cycle, within which rate case can not be filed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of renewable energy as per State's Renewable Portfolio Standard (RPS), which is committed to be achieved | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred cost to be recovered subject to PUC approval | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for deferred cost recovery | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual rate of carrying cost per annum (as a percent) | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred cost to be recovered for additional studies subject to PUC approval | ' | ' | ' | ' | ' | 555,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Integration from renewable energy sources (in kilowatts) | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum deferred cost recovery | ' | ' | ' | ' | ' | ' | ' | ' | 5,890,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Integration from firm renewable geothermal dispatchable energy (in kilowatts) | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of bids received | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of projects for bidding subject to PUC approval | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 |
Number of photovoltaic projects for bidding subject to PUC approval | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 |
Number of wind projects for bidding subject to PUC approval | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental regulation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of EGUs impacted by proposed rules of MATS | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of extension resulting in MATS compliance date | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Additional accrued investigation and estimated cleanup costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | 3,600,000 | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of reduction in GHG emissions by 2020 | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which operations was stopped prior to merger | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual revenue | ' | 5,300,000 | ' | ' | ' | ' | 547,310,000 | 579,464,000 | 1,574,869,000 | 1,677,604,000 | 108,699,000 | 111,249,000 | 313,740,000 | 324,664,000 | ' | ' | 107,924,000 | 108,490,000 | 320,314,000 | 332,558,000 | 763,933,000 | 799,203,000 | 2,208,923,000 | 2,334,826,000 | ' | ' | ' | ' | ' | ' | ' |
Reductions from the interim D&O relate primarily to: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lower ROACE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer Information System expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension and OPEB expense based on 3-year average | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Integrated resource planning expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operational and Renewable Energy Integration study costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stipulated ROACE (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final approved ROACE (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final approved ROACE allocated to lower interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final approved ROACE allocated for over curtailment of renewable energy (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for calculating average pension costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred IRP cost allowed by PUC order | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge recorded net of revenue taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount to be refunded to customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in employee benefits expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred IRP cost reclassified to deferred accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on earnings from recognition of AROs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the asset retirement obligation liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | ' | ' | ' | ' | ' | 48,431,000 | 50,871,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion expense | ' | ' | ' | ' | ' | ' | ' | ' | 833,000 | 1,233,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities settled | ' | ' | ' | ' | ' | ' | ' | ' | -1,165,000 | -2,788,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revisions in estimated cash flows | ' | ' | ' | ' | ' | ' | ' | ' | -916,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | ' | ' | ' | ' | $47,183,000 | $49,316,000 | $47,183,000 | $49,316,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash_flows_Details_HECO
Cash flows (Details) - HECO (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental disclosures of cash flow information | ' | ' |
Income taxes paid/(refunded) | $2 | $0 |
Supplemental disclosures of noncash activities | ' | ' |
Additions to electric utility property, plant and equipment - Unpaid invoices and other | 17 | 27 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid | 43 | 40 |
Income taxes paid/(refunded) | -26 | 2 |
Supplemental disclosures of noncash activities | ' | ' |
Additions to electric utility property, plant and equipment - Unpaid invoices and other | $17 | $27 |
Fair_value_measurements_Detail4
Fair value measurements (Details) - HECO (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying or notional amount | ' | ' |
Financial liabilities | ' | ' |
Long-term debt, net, including amounts due within one year | $1,422,880 | $1,422,872 |
Carrying or notional amount | Hawaiian Electric Company, Inc. and Subsidiaries | Fair value measurements on a recurring basis | ' | ' |
Financial liabilities | ' | ' |
Short-term borrowings - nonaffiliates | 73,246 | ' |
Long-term debt, net, including amounts due within one year | 1,147,880 | 1,147,872 |
Estimated fair value | ' | ' |
Financial liabilities | ' | ' |
Long-term debt, net, including amounts due within one year | 1,431,434 | 1,481,004 |
Estimated fair value | Level 2 | ' | ' |
Financial liabilities | ' | ' |
Long-term debt, net, including amounts due within one year | 1,431,434 | 1,481,004 |
Estimated fair value | Hawaiian Electric Company, Inc. and Subsidiaries | Level 2 | Fair value measurements on a recurring basis | ' | ' |
Financial liabilities | ' | ' |
Short-term borrowings - nonaffiliates | 73,246 | ' |
Long-term debt, net, including amounts due within one year | $1,149,213 | $1,181,631 |
Credit_agreement_Details_HECO
Credit agreement (Details) - HECO (Hawaiian Electric Company, Inc. and Subsidiaries, USD $) | Sep. 30, 2013 |
item | |
Hawaiian Electric Company, Inc. and Subsidiaries | ' |
Credit agreement | ' |
Revolving noncollateralized credit facility with a letter of credit sub-facility | $175,000,000 |
Number of financial institutions | 8 |
Credit_agreement_HECO_Credit_a1
Credit agreement - HECO Credit agreement - (Details1) - HECO (USD $) | 0 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||
Oct. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 03, 2013 | Oct. 31, 2013 | |||||||||
Senior Notes | Senior Notes | Senior Notes | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||||
Refunding Series 2003 A Due 2020 Debt 4.75 Percent | Refunding Series 2003 B Due 2022 Debt 5 Percent | Refunding Series 1997A Bonds | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Special Purpose Revenue Bonds | ||||||||||
contract | Hawaiian Electric Notes, Senior Notes | Senior Notes, Series 2013A | Senior Notes, Series 2013B | Senior Notes, Series 2013C | Maui Electric Notes, Senior Notes | Senior Notes, Series 2013A | Senior Notes, Series 2013B | Hawaii Electric Light Notes, Senior Notes | Senior Notes, Series 2013A | Senior Notes, Series 2013B | Senior Notes, Series 2013C | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Bonds redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $166,000,000 | ||||||||
Senior notes, face amount | ' | ' | ' | ' | $236,000,000 | $140,000,000 | $40,000,000 | [1] | $50,000,000 | [1] | $50,000,000 | [2] | $40,000,000 | $20,000,000 | [1] | $20,000,000 | [2] | $56,000,000 | $14,000,000 | [1] | $12,000,000 | [1] | $30,000,000 | [1] | ' |
Debt instrument, stated interest rate (as a percent) | ' | 4.75% | 5.00% | 5.65% | ' | ' | 4.45% | [1] | 4.84% | [1] | 5.65% | [2] | ' | 4.84% | [1] | 5.65% | [2] | ' | 3.83% | [1] | 4.45% | [1] | 4.84% | [1] | ' |
Debt Instrument, Number Of Purchase Agreements | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Debt Instrument, Covenant Terms, Contingent Prepayment Required, Minimum Ownership Percentage Required | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Debt Instrument, Covenant Terms, Investment Grade Rating Required To Avoid Affiliate Prepayment Offer, Term | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | Proceeds were used in October 2013 to redeem the following special purpose revenue bonds (SPRBs) and refunding SPRBs issued by the Department of Budget and Finance of the State of Hawaii for the benefit of the Utilities with an aggregate principle amount of $166 million: | ||||||||||||||||||||||||
[2] | Proceeds were and/or will be used by the respective utility to finance their capital expenditures and/or for the reimbursement of funds used for the payment of capital expenditures. |
Reconciliation_of_electric_uti2
Reconciliation of electric utility operating income per HEI and HECO consolidated statements of income (Details) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating income from regulated and nonregulated activities before income taxes (per HEI consolidated statements of income) | $90,099 | $91,702 | $243,126 | $246,924 |
Income taxes on regulated activities | -22,841 | -25,804 | -65,157 | -69,926 |
Electric utility | ' | ' | ' | ' |
Operating income from regulated and nonregulated activities before income taxes (per HEI consolidated statements of income) | 71,914 | 74,819 | 186,005 | 193,569 |
Income taxes on regulated activities | -19,058 | -22,395 | -51,777 | -58,429 |
Hawaiian Electric Company, Inc. and Subsidiaries | ' | ' | ' | ' |
Operating income | 36,200 | 35,300 | 85,212 | 88,533 |
Hawaiian Electric Company, Inc. and Subsidiaries | Electric utility | ' | ' | ' | ' |
Operating income from regulated and nonregulated activities before income taxes (per HEI consolidated statements of income) | 71,914 | 74,819 | 186,005 | 193,569 |
Income taxes on regulated activities | -18,928 | -22,352 | -51,356 | -58,291 |
Revenues from nonregulated activities | -2,182 | -1,892 | -7,153 | -5,431 |
Add: Expenses from nonregulated activities | 1,082 | 804 | 2,801 | 1,620 |
Operating income | $51,886 | $51,379 | $130,297 | $131,467 |
Consolidating_financial_inform2
Consolidating financial information (Details) - HECO (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating expenses | ' | ' | ' | ' | ' |
Purchased power | ' | $195,000 | $187,000 | $527,000 | $540,000 |
Other income (loss) | ' | ' | ' | ' | ' |
Allowance for equity funds used during construction | ' | 1,255 | 1,611 | 4,030 | 5,548 |
Interest and other charges | ' | ' | ' | ' | ' |
Allowance for borrowed funds used during construction | ' | -498 | -688 | -1,626 | -2,451 |
Net income | ' | 48,707 | 48,177 | 123,920 | 126,239 |
Preferred stock dividends of subsidiaries | ' | 471 | 471 | 1,417 | 1,417 |
Net income for common stock | ' | 48,236 | 47,706 | 122,503 | 124,822 |
HECO | ' | ' | ' | ' | ' |
Operating revenues | 5,300 | 547,310 | 579,464 | 1,574,869 | 1,677,604 |
Operating expenses | ' | ' | ' | ' | ' |
Fuel oil | ' | 206,478 | 248,443 | 631,824 | 724,862 |
Purchased power | ' | 143,280 | 135,507 | 389,706 | 401,423 |
Other operation | ' | 51,023 | 48,201 | 149,218 | 132,770 |
Maintenance | ' | 19,619 | 19,615 | 60,922 | 60,993 |
Depreciation | ' | 25,442 | 22,738 | 75,150 | 68,046 |
Taxes, other than income taxes | ' | 51,712 | 53,935 | 149,084 | 159,928 |
Income taxes | ' | 13,556 | 15,725 | 33,753 | 41,049 |
Total operating expenses | ' | 511,110 | 544,164 | 1,489,657 | 1,589,071 |
Operating income | ' | 36,200 | 35,300 | 85,212 | 88,533 |
Other income (loss) | ' | ' | ' | ' | ' |
Allowance for equity funds used during construction | ' | 914 | 1,323 | 3,144 | 4,558 |
Equity in earnings of subsidiaries | ' | 10,794 | 11,285 | 30,446 | 28,025 |
Other, net | ' | 795 | 950 | 3,518 | 3,215 |
Income tax benefits (expense) | ' | -77 | -37 | -266 | -101 |
Total other income | ' | 12,426 | 13,521 | 36,842 | 35,697 |
Interest and other charges | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | 9,902 | 9,981 | 29,705 | 29,301 |
Amortization of net bond premium and expense | ' | 410 | 629 | 1,231 | 1,541 |
Other interest charges (credits) | ' | 585 | 142 | 637 | -412 |
Allowance for borrowed funds used during construction | ' | -358 | -576 | -1,268 | -2,061 |
Total interest and other charges | ' | 10,539 | 10,176 | 30,305 | 28,369 |
Net income | ' | 38,087 | 38,645 | 91,749 | 95,861 |
Net income attributable to HECO | ' | 38,087 | 38,645 | 91,749 | 95,861 |
Preferred stock dividends of HECO | ' | 270 | 270 | 810 | 810 |
Net income for common stock | ' | 37,817 | 38,375 | 90,939 | 95,051 |
HELCO | ' | ' | ' | ' | ' |
Operating revenues | ' | 107,924 | 108,490 | 320,314 | 332,558 |
Operating expenses | ' | ' | ' | ' | ' |
Fuel oil | ' | 27,615 | 25,752 | 94,120 | 88,778 |
Purchased power | ' | 34,480 | 37,693 | 93,880 | 108,996 |
Other operation | ' | 11,057 | 10,888 | 32,267 | 29,851 |
Maintenance | ' | 5,680 | 5,146 | 13,787 | 14,280 |
Depreciation | ' | 8,547 | 8,299 | 25,641 | 25,036 |
Taxes, other than income taxes | ' | 10,448 | 10,444 | 30,094 | 31,330 |
Income taxes | ' | 1,991 | 2,782 | 7,765 | 9,836 |
Total operating expenses | ' | 99,818 | 101,004 | 297,554 | 308,107 |
Operating income | ' | 8,106 | 7,486 | 22,760 | 24,451 |
Other income (loss) | ' | ' | ' | ' | ' |
Allowance for equity funds used during construction | ' | 222 | 148 | 552 | 433 |
Other, net | ' | 217 | 128 | 526 | 361 |
Income tax benefits (expense) | ' | -32 | -14 | -73 | -47 |
Total other income | ' | 407 | 262 | 1,005 | 747 |
Interest and other charges | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | 2,751 | 2,751 | 8,252 | 8,649 |
Amortization of net bond premium and expense | ' | 116 | 117 | 350 | 362 |
Other interest charges (credits) | ' | 160 | 78 | 245 | 131 |
Allowance for borrowed funds used during construction | ' | -91 | -59 | -226 | -174 |
Total interest and other charges | ' | 2,936 | 2,887 | 8,621 | 8,968 |
Net income | ' | 5,577 | 4,861 | 15,144 | 16,230 |
Preferred stock dividends of subsidiaries | ' | 133 | 133 | 400 | 400 |
Net income attributable to HECO | ' | 5,444 | 4,728 | 14,744 | 15,830 |
Net income for common stock | ' | 5,444 | 4,728 | 14,744 | 15,830 |
MECO | ' | ' | ' | ' | ' |
Operating revenues | ' | 108,699 | 111,249 | 313,740 | 324,664 |
Operating expenses | ' | ' | ' | ' | ' |
Fuel oil | ' | 49,267 | 52,978 | 151,794 | 172,436 |
Purchased power | ' | 17,101 | 13,499 | 43,083 | 29,421 |
Other operation | ' | 9,928 | 11,352 | 28,130 | 34,185 |
Maintenance | ' | 6,214 | 5,607 | 13,846 | 16,368 |
Depreciation | ' | 5,006 | 4,904 | 15,074 | 15,474 |
Taxes, other than income taxes | ' | 10,222 | 10,471 | 29,650 | 30,891 |
Income taxes | ' | 3,381 | 3,845 | 9,838 | 7,406 |
Total operating expenses | ' | 101,119 | 102,656 | 291,415 | 306,181 |
Operating income | ' | 7,580 | 8,593 | 22,325 | 18,483 |
Other income (loss) | ' | ' | ' | ' | ' |
Allowance for equity funds used during construction | ' | 119 | 140 | 334 | 557 |
Other, net | ' | 124 | 38 | 412 | 293 |
Income tax benefits (expense) | ' | -20 | 9 | -81 | 11 |
Total other income | ' | 223 | 187 | 665 | 861 |
Interest and other charges | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | 1,962 | 1,962 | 5,886 | 6,450 |
Amortization of net bond premium and expense | ' | 120 | 124 | 359 | 373 |
Other interest charges (credits) | ' | 324 | 94 | 887 | 253 |
Allowance for borrowed funds used during construction | ' | -49 | -53 | -132 | -216 |
Total interest and other charges | ' | 2,357 | 2,127 | 7,000 | 6,860 |
Net income | ' | 5,446 | 6,653 | 15,990 | 12,484 |
Preferred stock dividends of subsidiaries | ' | 95 | 95 | 286 | 286 |
Net income attributable to HECO | ' | 5,351 | 6,558 | 15,704 | 12,198 |
Net income for common stock | ' | 5,351 | 6,558 | 15,704 | 12,198 |
Other subsidiaries | ' | ' | ' | ' | ' |
Other income (loss) | ' | ' | ' | ' | ' |
Other, net | ' | -1 | -1 | -2 | -3 |
Total other income | ' | -1 | -1 | -2 | -3 |
Interest and other charges | ' | ' | ' | ' | ' |
Net income | ' | -1 | -1 | -2 | -3 |
Net income attributable to HECO | ' | -1 | -1 | -2 | -3 |
Net income for common stock | ' | -1 | -1 | -2 | -3 |
Consolidating adjustments | ' | ' | ' | ' | ' |
Other income (loss) | ' | ' | ' | ' | ' |
Equity in earnings of subsidiaries | ' | -10,794 | -11,285 | -30,446 | -28,025 |
Other, net | ' | -36 | -28 | -103 | -56 |
Total other income | ' | -10,830 | -11,313 | -30,549 | -28,081 |
Interest and other charges | ' | ' | ' | ' | ' |
Other interest charges (credits) | ' | -36 | -28 | -103 | -56 |
Total interest and other charges | ' | -36 | -28 | -103 | -56 |
Net income | ' | -10,794 | -11,285 | -30,446 | -28,025 |
Net income attributable to HECO | ' | -10,794 | -11,285 | -30,446 | -28,025 |
Net income for common stock | ' | -10,794 | -11,285 | -30,446 | -28,025 |
HECO Consolidated | ' | ' | ' | ' | ' |
Operating revenues | ' | 763,933 | 799,203 | 2,208,923 | 2,334,826 |
Operating expenses | ' | ' | ' | ' | ' |
Fuel oil | ' | 283,360 | 327,173 | 877,738 | 986,076 |
Purchased power | ' | 194,861 | 186,699 | 526,669 | 539,840 |
Other operation | ' | 72,008 | 70,441 | 209,615 | 196,806 |
Maintenance | ' | 31,513 | 30,368 | 88,555 | 91,641 |
Depreciation | ' | 38,995 | 35,941 | 115,865 | 108,556 |
Taxes, other than income taxes | ' | 72,382 | 74,850 | 208,828 | 222,149 |
Income taxes | ' | 18,928 | 22,352 | 51,356 | 58,291 |
Total operating expenses | ' | 712,047 | 747,824 | 2,078,626 | 2,203,359 |
Operating income | ' | 51,886 | 51,379 | 130,297 | 131,467 |
Other income (loss) | ' | ' | ' | ' | ' |
Allowance for equity funds used during construction | ' | 1,255 | 1,611 | 4,030 | 5,548 |
Other, net | ' | 1,099 | 1,087 | 4,351 | 3,810 |
Income tax benefits (expense) | ' | -129 | -42 | -420 | -137 |
Total other income | ' | 2,225 | 2,656 | 7,961 | 9,221 |
Interest and other charges | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | 14,615 | 14,694 | 43,843 | 44,400 |
Amortization of net bond premium and expense | ' | 646 | 870 | 1,940 | 2,276 |
Other interest charges (credits) | ' | 1,033 | 286 | 1,666 | -84 |
Allowance for borrowed funds used during construction | ' | -498 | -688 | -1,626 | -2,451 |
Total interest and other charges | ' | 15,796 | 15,162 | 45,823 | 44,141 |
Net income | ' | 38,315 | 38,873 | 92,435 | 96,547 |
Preferred stock dividends of subsidiaries | ' | 228 | 228 | 686 | 686 |
Net income attributable to HECO | ' | 38,087 | 38,645 | 91,749 | 95,861 |
Preferred stock dividends of HECO | ' | 270 | 270 | 810 | 810 |
Net income for common stock | ' | $37,817 | $38,375 | $90,939 | $95,051 |
Consolidating_financial_inform3
Consolidating financial information (Details 2) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income (loss) for common stock | $48,236 | $47,706 | $122,503 | $124,822 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,789 | 3,826 | 17,490 | 11,467 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -5,156 | -3,342 | -15,468 | -10,026 |
Other comprehensive income (loss), net of taxes | -897 | 1,586 | -9,263 | 3,447 |
Comprehensive income | 47,339 | 49,292 | 113,240 | 128,269 |
HECO | ' | ' | ' | ' |
Net income (loss) for common stock | 37,817 | 38,375 | 90,939 | 95,051 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 3,419 | 15,520 | 10,255 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -5,156 | -3,342 | -15,468 | -10,026 |
Other comprehensive income (loss), net of taxes | 17 | 77 | 52 | 229 |
Comprehensive income | 37,834 | 38,452 | 90,991 | 95,280 |
HELCO | ' | ' | ' | ' |
Net income (loss) for common stock | 5,444 | 4,728 | 14,744 | 15,830 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 720 | 526 | 2,160 | 1,576 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -721 | -521 | -2,162 | -1,558 |
Other comprehensive income (loss), net of taxes | -1 | 5 | -2 | 18 |
Comprehensive income | 5,443 | 4,733 | 14,742 | 15,848 |
MECO | ' | ' | ' | ' |
Net income (loss) for common stock | 5,351 | 6,558 | 15,704 | 12,198 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 639 | 443 | 1,918 | 1,328 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -639 | -436 | -1,918 | -1,309 |
Other comprehensive income (loss), net of taxes | 0 | 7 | ' | 19 |
Comprehensive income | 5,351 | 6,565 | 15,704 | 12,217 |
Other subsidiaries | ' | ' | ' | ' |
Net income (loss) for common stock | -1 | -1 | -2 | -3 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 0 | ' | ' | ' |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 0 | ' | ' | ' |
Other comprehensive income (loss), net of taxes | 0 | ' | ' | ' |
Comprehensive income | -1 | -1 | -2 | -3 |
Consolidating adjustments | ' | ' | ' | ' |
Net income (loss) for common stock | -10,794 | -11,285 | -30,446 | -28,025 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | -1,359 | -969 | -4,078 | -2,904 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 1,360 | 957 | 4,080 | 2,867 |
Other comprehensive income (loss), net of taxes | 1 | -12 | 2 | -37 |
Comprehensive income | -10,793 | -11,297 | -30,444 | -28,062 |
HECO Consolidated | ' | ' | ' | ' |
Net income (loss) for common stock | 37,817 | 38,375 | 90,939 | 95,051 |
Retirement benefit plans: | ' | ' | ' | ' |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 5,173 | 3,419 | 15,520 | 10,255 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -5,156 | -3,342 | -15,468 | -10,026 |
Other comprehensive income (loss), net of taxes | 17 | 77 | 52 | 229 |
Comprehensive income | $37,834 | $38,452 | $90,991 | $95,280 |
Consolidating_financial_inform4
Consolidating financial information (Details 3) - HECO (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other long-term assets | ' | ' | ' | ' |
Total assets | $10,429,012 | $10,149,132 | ' | ' |
Capitalization | ' | ' | ' | ' |
Cumulative preferred stock - not subject to mandatory redemption | 0 | 0 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Interest and preferred dividends payable | 27,232 | 26,258 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 493,662 | 439,329 | ' | ' |
Contributions in aid of construction | 425,916 | 405,520 | ' | ' |
Total liabilities and shareholders' equity | 10,429,012 | 10,149,132 | ' | ' |
HECO | ' | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 43,392 | 43,370 | ' | ' |
Plant and equipment | 3,488,617 | 3,325,862 | ' | ' |
Less accumulated depreciation | -1,211,045 | -1,185,899 | ' | ' |
Construction in progress | 122,399 | 130,143 | ' | ' |
Net utility plant | 2,443,363 | 2,313,476 | ' | ' |
Investment in wholly owned subsidiaries, at equity | 507,080 | 497,939 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 18,906 | 8,265 | 6,982 | 44,819 |
Advances to affiliates | 23,000 | 9,400 | ' | ' |
Customer accounts receivable, net | 134,641 | 154,316 | ' | ' |
Accrued unbilled revenues, net | 104,981 | 100,600 | ' | ' |
Other accounts receivable, net | 15,094 | 33,313 | ' | ' |
Fuel oil stock, at average cost | 105,231 | 123,176 | ' | ' |
Materials and supplies, at average cost | 37,171 | 31,779 | ' | ' |
Prepayments and other | 26,024 | 21,708 | ' | ' |
Regulatory assets | 36,006 | 42,675 | ' | ' |
Total current assets | 501,054 | 525,232 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 626,209 | 601,451 | ' | ' |
Unamortized debt expense | 6,491 | 7,042 | ' | ' |
Other | 40,343 | 46,586 | ' | ' |
Total other long-term assets | 673,043 | 655,079 | ' | ' |
Total assets | 4,124,540 | 3,991,726 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 1,501,944 | 1,472,136 | ' | ' |
Cumulative preferred stock - not subject to mandatory redemption | 22,293 | 22,293 | ' | ' |
Long-term debt, net | 780,546 | 780,546 | ' | ' |
Total capitalization | 2,304,783 | 2,274,975 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from non-affiliates | 73,246 | ' | ' | ' |
Short-term borrowings from affiliate | 7,000 | 18,050 | ' | ' |
Accounts payable | 136,087 | 134,651 | ' | ' |
Interest and preferred dividends payable | 15,097 | 14,479 | ' | ' |
Taxes accrued | 163,204 | 174,477 | ' | ' |
Other | 54,571 | 47,203 | ' | ' |
Total current liabilities | 449,205 | 388,860 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 340,014 | 302,569 | ' | ' |
Regulatory liabilities | 224,568 | 218,437 | ' | ' |
Unamortized tax credits | 43,564 | 39,827 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 442,613 | 459,765 | ' | ' |
Other | 67,157 | 68,783 | ' | ' |
Total deferred credits and other liabilities | 1,117,916 | 1,089,381 | ' | ' |
Contributions in aid of construction | 252,636 | 238,510 | ' | ' |
Total liabilities and shareholders' equity | 4,124,540 | 3,991,726 | ' | ' |
HELCO | ' | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 5,426 | 5,182 | ' | ' |
Plant and equipment | 1,116,702 | 1,086,048 | ' | ' |
Less accumulated depreciation | -449,547 | -433,531 | ' | ' |
Construction in progress | 14,120 | 12,126 | ' | ' |
Net utility plant | 686,701 | 669,825 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 2,754 | 5,441 | 5,226 | 3,383 |
Advances to affiliates | 7,000 | 18,050 | ' | ' |
Customer accounts receivable, net | 29,569 | 29,772 | ' | ' |
Accrued unbilled revenues, net | 16,120 | 14,393 | ' | ' |
Other accounts receivable, net | 3,877 | 1,122 | ' | ' |
Fuel oil stock, at average cost | 14,615 | 15,485 | ' | ' |
Materials and supplies, at average cost | 7,042 | 5,336 | ' | ' |
Prepayments and other | 4,413 | 5,146 | ' | ' |
Regulatory assets | 4,636 | 4,056 | ' | ' |
Total current assets | 90,026 | 98,801 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 112,244 | 109,815 | ' | ' |
Unamortized debt expense | 1,882 | 2,066 | ' | ' |
Other | 8,405 | 9,871 | ' | ' |
Total other long-term assets | 122,531 | 121,752 | ' | ' |
Total assets | 899,258 | 890,378 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 272,860 | 268,908 | ' | ' |
Cumulative preferred stock - not subject to mandatory redemption | 7,000 | 7,000 | ' | ' |
Long-term debt, net | 201,334 | 201,326 | ' | ' |
Total capitalization | 481,194 | 477,234 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable | 25,352 | 27,457 | ' | ' |
Interest and preferred dividends payable | 3,949 | 4,027 | ' | ' |
Taxes accrued | 35,403 | 38,778 | ' | ' |
Other | 11,298 | 10,310 | ' | ' |
Total current liabilities | 76,002 | 80,572 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 75,866 | 68,479 | ' | ' |
Regulatory liabilities | 71,230 | 67,359 | ' | ' |
Unamortized tax credits | 13,552 | 13,450 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 77,004 | 80,686 | ' | ' |
Other | 15,386 | 17,799 | ' | ' |
Total deferred credits and other liabilities | 253,038 | 247,773 | ' | ' |
Contributions in aid of construction | 89,024 | 84,799 | ' | ' |
Total liabilities and shareholders' equity | 899,258 | 890,378 | ' | ' |
MECO | ' | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 3,016 | 3,016 | ' | ' |
Plant and equipment | 988,482 | 952,490 | ' | ' |
Less accumulated depreciation | -432,983 | -421,359 | ' | ' |
Construction in progress | 14,558 | 9,109 | ' | ' |
Net utility plant | 573,073 | 543,256 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 3,423 | 3,349 | 3,409 | 496 |
Customer accounts receivable, net | 23,494 | 26,691 | ' | ' |
Accrued unbilled revenues, net | 18,800 | 19,305 | ' | ' |
Other accounts receivable, net | 2,214 | 3,016 | ' | ' |
Fuel oil stock, at average cost | 17,241 | 22,758 | ' | ' |
Materials and supplies, at average cost | 15,221 | 13,970 | ' | ' |
Prepayments and other | 14,939 | 6,011 | ' | ' |
Regulatory assets | 5,081 | 4,536 | ' | ' |
Total current assets | 100,413 | 99,636 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 106,243 | 102,063 | ' | ' |
Unamortized debt expense | 1,301 | 1,446 | ' | ' |
Other | 13,919 | 14,848 | ' | ' |
Total other long-term assets | 121,463 | 118,357 | ' | ' |
Total assets | 794,949 | 761,249 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 234,118 | 228,927 | ' | ' |
Cumulative preferred stock - not subject to mandatory redemption | 5,000 | 5,000 | ' | ' |
Long-term debt, net | 166,000 | 166,000 | ' | ' |
Total capitalization | 405,118 | 399,927 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from affiliate | 23,000 | 9,400 | ' | ' |
Accounts payable | 19,518 | 24,716 | ' | ' |
Interest and preferred dividends payable | 3,363 | 2,593 | ' | ' |
Taxes accrued | 34,846 | 37,811 | ' | ' |
Other | 24,664 | 14,634 | ' | ' |
Total current liabilities | 105,391 | 89,154 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 62,721 | 46,563 | ' | ' |
Regulatory liabilities | 33,333 | 36,278 | ' | ' |
Unamortized tax credits | 13,922 | 13,307 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 76,623 | 79,754 | ' | ' |
Other | 13,585 | 14,055 | ' | ' |
Total deferred credits and other liabilities | 200,184 | 189,957 | ' | ' |
Contributions in aid of construction | 84,256 | 82,211 | ' | ' |
Total liabilities and shareholders' equity | 794,949 | 761,249 | ' | ' |
Other subsidiaries | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 102 | 104 | 105 | 108 |
Total current assets | 102 | 104 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Total assets | 102 | 104 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 102 | 104 | ' | ' |
Total capitalization | 102 | 104 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Total liabilities and shareholders' equity | 102 | 104 | ' | ' |
Consolidating adjustments | ' | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Investment in wholly owned subsidiaries, at equity | -507,080 | -497,939 | ' | ' |
Current assets | ' | ' | ' | ' |
Advances to affiliates | -30,000 | -27,450 | ' | ' |
Other accounts receivable, net | -12,011 | -9,275 | ' | ' |
Prepayments and other | 0 | ' | ' | ' |
Total current assets | -42,011 | -36,725 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Total assets | -549,091 | -534,664 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | -507,080 | -497,939 | ' | ' |
Total capitalization | -507,080 | -497,939 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from affiliate | -30,000 | -27,450 | ' | ' |
Interest and preferred dividends payable | -12 | -7 | ' | ' |
Other | -11,999 | -9,268 | ' | ' |
Total current liabilities | -42,011 | -36,725 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Total liabilities and shareholders' equity | -549,091 | -534,664 | ' | ' |
HECO Consolidated | ' | ' | ' | ' |
Utility plant, at cost | ' | ' | ' | ' |
Land | 51,834 | 51,568 | ' | ' |
Plant and equipment | 5,593,801 | 5,364,400 | ' | ' |
Less accumulated depreciation | -2,093,575 | -2,040,789 | ' | ' |
Construction in progress | 151,077 | 151,378 | ' | ' |
Net utility plant | 3,703,137 | 3,526,557 | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 25,185 | 17,159 | 15,722 | 48,806 |
Customer accounts receivable, net | 187,704 | 210,779 | ' | ' |
Accrued unbilled revenues, net | 139,901 | 134,298 | ' | ' |
Other accounts receivable, net | 9,174 | 28,176 | ' | ' |
Fuel oil stock, at average cost | 137,087 | 161,419 | ' | ' |
Materials and supplies, at average cost | 59,434 | 51,085 | ' | ' |
Prepayments and other | 45,376 | 32,865 | ' | ' |
Regulatory assets | 45,723 | 51,267 | ' | ' |
Total current assets | 649,584 | 687,048 | ' | ' |
Other long-term assets | ' | ' | ' | ' |
Regulatory assets | 844,696 | 813,329 | ' | ' |
Unamortized debt expense | 9,674 | 10,554 | ' | ' |
Other | 62,667 | 71,305 | ' | ' |
Total other long-term assets | 917,037 | 895,188 | ' | ' |
Total assets | 5,269,758 | 5,108,793 | ' | ' |
Capitalization | ' | ' | ' | ' |
Common stock equity | 1,501,944 | 1,472,136 | ' | ' |
Cumulative preferred stock - not subject to mandatory redemption | 34,293 | 34,293 | ' | ' |
Long-term debt, net | 1,147,880 | 1,147,872 | ' | ' |
Total capitalization | 2,684,117 | 2,654,301 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Short-term borrowings from non-affiliates | 73,246 | 0 | ' | ' |
Accounts payable | 180,957 | 186,824 | ' | ' |
Interest and preferred dividends payable | 22,397 | 21,092 | ' | ' |
Taxes accrued | 233,453 | 251,066 | ' | ' |
Other | 78,534 | 62,879 | ' | ' |
Total current liabilities | 588,587 | 521,861 | ' | ' |
Deferred credits and other liabilities | ' | ' | ' | ' |
Deferred income taxes | 478,601 | 417,611 | ' | ' |
Regulatory liabilities | 329,131 | 322,074 | ' | ' |
Unamortized tax credits | 71,038 | 66,584 | ' | ' |
Defined benefit pension and other postretirement benefit plans liability | 596,240 | 620,205 | ' | ' |
Other | 96,128 | 100,637 | ' | ' |
Total deferred credits and other liabilities | 1,571,138 | 1,527,111 | ' | ' |
Contributions in aid of construction | 425,916 | 405,520 | ' | ' |
Total liabilities and shareholders' equity | $5,269,758 | $5,108,793 | ' | ' |
Consolidating_financial_inform5
Consolidating financial information (Details 4) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Balance | ' | ' | $1,593,865 | $1,528,706 |
Net income (loss) for common stock | 48,236 | 47,706 | 122,503 | 124,822 |
Other comprehensive income (loss), net of taxes | -897 | 1,586 | -9,263 | 3,447 |
Common stock dividends | ' | ' | -91,739 | -89,902 |
Balance | 1,655,465 | 1,607,135 | 1,655,465 | 1,607,135 |
HECO | ' | ' | ' | ' |
Balance | ' | ' | 1,472,136 | 1,402,841 |
Net income (loss) for common stock | 37,817 | 38,375 | 90,939 | 95,051 |
Other comprehensive income (loss), net of taxes | 17 | 77 | 52 | 229 |
Common stock dividends | ' | ' | -61,183 | -54,783 |
Balance | 1,501,944 | 1,443,338 | 1,501,944 | 1,443,338 |
HELCO | ' | ' | ' | ' |
Balance | ' | ' | 268,908 | 280,468 |
Net income (loss) for common stock | 5,444 | 4,728 | 14,744 | 15,830 |
Other comprehensive income (loss), net of taxes | -1 | 5 | -2 | 18 |
Common stock dividends | ' | ' | -10,790 | -9,854 |
Balance | 272,860 | 286,462 | 272,860 | 286,462 |
MECO | ' | ' | ' | ' |
Balance | ' | ' | 228,927 | 235,568 |
Net income (loss) for common stock | 5,351 | 6,558 | 15,704 | 12,198 |
Other comprehensive income (loss), net of taxes | 0 | 7 | ' | 19 |
Common stock dividends | ' | ' | -10,513 | -6,560 |
Balance | 234,118 | 241,225 | 234,118 | 241,225 |
Other subsidiaries | ' | ' | ' | ' |
Balance | ' | ' | 104 | 107 |
Net income (loss) for common stock | -1 | -1 | -2 | -3 |
Other comprehensive income (loss), net of taxes | 0 | ' | ' | ' |
Balance | 102 | 104 | 102 | 104 |
Consolidating adjustments | ' | ' | ' | ' |
Balance | ' | ' | -497,939 | -516,143 |
Net income (loss) for common stock | -10,794 | -11,285 | -30,446 | -28,025 |
Other comprehensive income (loss), net of taxes | 1 | -12 | 2 | -37 |
Common stock dividends | ' | ' | 21,303 | 16,414 |
Balance | -507,080 | -527,791 | -507,080 | -527,791 |
HECO Consolidated | ' | ' | ' | ' |
Balance | ' | ' | 1,472,136 | 1,402,841 |
Net income (loss) for common stock | 37,817 | 38,375 | 90,939 | 95,051 |
Other comprehensive income (loss), net of taxes | 17 | 77 | 52 | 229 |
Common stock dividends | ' | ' | -61,183 | -54,783 |
Balance | $1,501,944 | $1,443,338 | $1,501,944 | $1,443,338 |
Consolidating_financial_inform6
Consolidating financial information (Details 5) - HECO (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | $48,707 | $48,177 | $123,920 | $126,239 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property, plant and equipment | ' | ' | 120,355 | 112,946 |
Other amortization | ' | ' | 2,352 | 4,811 |
Change in deferred income taxes | ' | ' | 60,580 | 82,582 |
Allowance for equity funds used during construction | -1,255 | -1,611 | -4,030 | -5,548 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease in fuel oil stock | ' | ' | 24,332 | -31,372 |
Increase in regulatory assets | ' | ' | -53,314 | -57,793 |
Changes in prepaid and accrued income taxes and revenue taxes | ' | ' | -19,212 | -5,121 |
Contributions to defined benefit pension and other postretirement benefit plans | ' | ' | -62,279 | -64,006 |
Other increase in defined benefit pension and other postretirement benefit plans liability | ' | ' | 61,770 | 49,950 |
Net cash provided by (used in) operating activities | ' | ' | 246,726 | 121,604 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -247,392 | -225,961 |
Contributions in aid of construction | ' | ' | 23,633 | 33,106 |
Other | ' | ' | 3,035 | 865 |
Net cash used in investing activities | ' | ' | -363,424 | -297,249 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -73,584 | -71,966 |
Proceeds from issuance of long-term debt | ' | ' | 50,000 | 457,000 |
Repayment of long-term debt | ' | ' | -50,000 | -368,500 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | ' | ' | 47,648 | 13,398 |
Other | ' | ' | -4,033 | -6,314 |
Net cash provided by (used in) financing activities | ' | ' | 112,078 | 73,892 |
Net decrease in cash and cash equivalents | ' | ' | -4,620 | -101,753 |
HECO | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | 38,087 | 38,645 | 91,749 | 95,861 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity in earnings | ' | ' | -30,522 | -28,100 |
Common stock dividends received from subsidiaries | ' | ' | 21,379 | 16,464 |
Depreciation of property, plant and equipment | ' | ' | 75,150 | 68,046 |
Other amortization | ' | ' | -228 | 691 |
Change in deferred income taxes | ' | ' | 31,361 | 64,790 |
Changes in tax credits, net | ' | ' | 3,773 | 3,256 |
Allowance for equity funds used during construction | -914 | -1,323 | -3,144 | -4,558 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease (increase) in accounts receivable | ' | ' | 37,894 | -43,284 |
Decrease (Increase) in accrued unbilled revenues | ' | ' | -4,381 | 3,427 |
Decrease in fuel oil stock | ' | ' | 17,945 | -36,365 |
Increase in materials and supplies | ' | ' | -5,392 | -6,320 |
Increase in regulatory assets | ' | ' | -37,032 | -44,175 |
Decrease in accounts payable | ' | ' | -10,435 | 7,872 |
Changes in prepaid and accrued income taxes and revenue taxes | ' | ' | -7,122 | -14,006 |
Contributions to defined benefit pension and other postretirement benefit plans | ' | ' | -44,650 | -45,878 |
Other increase in defined benefit pension and other postretirement benefit plans liability | ' | ' | 46,394 | 34,421 |
Change in other assets and liabilities | ' | ' | -10,562 | -28,970 |
Net cash provided by (used in) operating activities | ' | ' | 172,177 | 43,172 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -164,423 | -172,872 |
Contributions in aid of construction | ' | ' | 15,699 | 25,547 |
Other | ' | ' | 623 | ' |
Advances from (to) affiliates | ' | ' | -13,600 | 0 |
Net cash used in investing activities | ' | ' | -161,701 | -147,325 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -61,183 | -54,783 |
Preferred stock dividends of HECO and subsidiaries | ' | ' | -810 | -810 |
Proceeds from issuance of long-term debt | ' | ' | ' | 367,000 |
Repayment of long-term debt | ' | ' | ' | -259,580 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | ' | ' | 62,196 | 16,469 |
Other | ' | ' | -38 | -1,980 |
Net cash provided by (used in) financing activities | ' | ' | 165 | 66,316 |
Net decrease in cash and cash equivalents | ' | ' | 10,641 | -37,837 |
Cash and cash equivalents, beginning of period | ' | ' | 8,265 | 44,819 |
Cash and cash equivalents, end of period | 18,906 | 6,982 | 18,906 | 6,982 |
HELCO | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | 5,577 | 4,861 | 15,144 | 16,230 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property, plant and equipment | ' | ' | 25,641 | 25,036 |
Other amortization | ' | ' | 1,075 | 1,776 |
Change in deferred income taxes | ' | ' | 7,165 | 8,290 |
Changes in tax credits, net | ' | ' | 119 | 256 |
Allowance for equity funds used during construction | -222 | -148 | -552 | -433 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease (increase) in accounts receivable | ' | ' | -2,552 | -7,236 |
Decrease (Increase) in accrued unbilled revenues | ' | ' | -1,727 | 3,107 |
Decrease in fuel oil stock | ' | ' | 870 | 3,163 |
Increase in materials and supplies | ' | ' | -1,706 | -719 |
Increase in regulatory assets | ' | ' | -7,165 | -6,621 |
Decrease in accounts payable | ' | ' | -3,343 | -8,518 |
Changes in prepaid and accrued income taxes and revenue taxes | ' | ' | -3,566 | -3,562 |
Contributions to defined benefit pension and other postretirement benefit plans | ' | ' | -8,083 | -8,270 |
Other increase in defined benefit pension and other postretirement benefit plans liability | ' | ' | 7,892 | 6,133 |
Change in other assets and liabilities | ' | ' | -1,821 | -1,120 |
Net cash provided by (used in) operating activities | ' | ' | 27,391 | 27,512 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -35,900 | -26,331 |
Contributions in aid of construction | ' | ' | 6,160 | 4,199 |
Other | ' | ' | -196 | ' |
Advances from (to) affiliates | ' | ' | 11,050 | 16,750 |
Net cash used in investing activities | ' | ' | -18,886 | -5,382 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -10,790 | -9,854 |
Preferred stock dividends of HECO and subsidiaries | ' | ' | -400 | -400 |
Proceeds from issuance of long-term debt | ' | ' | ' | 31,000 |
Repayment of long-term debt | ' | ' | ' | -41,200 |
Other | ' | ' | -2 | 167 |
Net cash provided by (used in) financing activities | ' | ' | -11,192 | -20,287 |
Net decrease in cash and cash equivalents | ' | ' | -2,687 | 1,843 |
Cash and cash equivalents, beginning of period | ' | ' | 5,441 | 3,383 |
Cash and cash equivalents, end of period | 2,754 | 5,226 | 2,754 | 5,226 |
MECO | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | 5,446 | 6,653 | 15,990 | 12,484 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property, plant and equipment | ' | ' | 15,074 | 15,474 |
Other amortization | ' | ' | 1,623 | 1,607 |
Change in deferred income taxes | ' | ' | 9,488 | 9,637 |
Changes in tax credits, net | ' | ' | 618 | 130 |
Allowance for equity funds used during construction | -119 | -140 | -334 | -557 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease (increase) in accounts receivable | ' | ' | 3,999 | 1,287 |
Decrease (Increase) in accrued unbilled revenues | ' | ' | 505 | -798 |
Decrease in fuel oil stock | ' | ' | 5,517 | 1,830 |
Increase in materials and supplies | ' | ' | -1,251 | -266 |
Increase in regulatory assets | ' | ' | -9,117 | -6,997 |
Decrease in accounts payable | ' | ' | -9,196 | -2,835 |
Changes in prepaid and accrued income taxes and revenue taxes | ' | ' | -4,728 | -3,097 |
Contributions to defined benefit pension and other postretirement benefit plans | ' | ' | -8,143 | -8,269 |
Other increase in defined benefit pension and other postretirement benefit plans liability | ' | ' | 8,078 | 9,307 |
Change in other assets and liabilities | ' | ' | 4,924 | -3,192 |
Net cash provided by (used in) operating activities | ' | ' | 33,047 | 25,745 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -37,546 | -21,767 |
Contributions in aid of construction | ' | ' | 1,774 | 3,360 |
Advances from (to) affiliates | ' | ' | ' | 11,500 |
Net cash used in investing activities | ' | ' | -35,772 | -6,907 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -10,513 | -6,560 |
Preferred stock dividends of HECO and subsidiaries | ' | ' | -286 | -286 |
Proceeds from issuance of long-term debt | ' | ' | ' | 59,000 |
Repayment of long-term debt | ' | ' | ' | -67,720 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | ' | ' | 13,600 | 0 |
Other | ' | ' | -2 | -359 |
Net cash provided by (used in) financing activities | ' | ' | 2,799 | -15,925 |
Net decrease in cash and cash equivalents | ' | ' | 74 | 2,913 |
Cash and cash equivalents, beginning of period | ' | ' | 3,349 | 496 |
Cash and cash equivalents, end of period | 3,423 | 3,409 | 3,423 | 3,409 |
Other subsidiaries | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | -1 | -1 | -2 | -3 |
Changes in assets and liabilities | ' | ' | ' | ' |
Change in other assets and liabilities | ' | ' | ' | 0 |
Net cash provided by (used in) operating activities | ' | ' | -2 | -3 |
Cash flows from financing activities | ' | ' | ' | ' |
Net decrease in cash and cash equivalents | ' | ' | -2 | -3 |
Cash and cash equivalents, beginning of period | ' | ' | 104 | 108 |
Cash and cash equivalents, end of period | 102 | 105 | 102 | 105 |
Consolidating adjustments | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | -10,794 | -11,285 | -30,446 | -28,025 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity in earnings | ' | ' | 30,446 | 28,025 |
Common stock dividends received from subsidiaries | ' | ' | -21,303 | -16,414 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease (increase) in accounts receivable | ' | ' | 2,736 | 12,326 |
Change in other assets and liabilities | ' | ' | -2,736 | -12,326 |
Net cash provided by (used in) operating activities | ' | ' | -21,303 | -16,414 |
Cash flows from investing activities | ' | ' | ' | ' |
Advances from (to) affiliates | ' | ' | 2,550 | -28,250 |
Net cash used in investing activities | ' | ' | 2,550 | -28,250 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | 21,303 | 16,414 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | ' | ' | -2,550 | 28,250 |
Net cash provided by (used in) financing activities | ' | ' | 18,753 | 44,664 |
HECO Consolidated | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income (loss) | 38,315 | 38,873 | 92,435 | 96,547 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Equity in earnings | ' | ' | -76 | -75 |
Common stock dividends received from subsidiaries | ' | ' | 76 | 50 |
Depreciation of property, plant and equipment | ' | ' | 115,865 | 108,556 |
Other amortization | ' | ' | 2,470 | 4,074 |
Change in deferred income taxes | ' | ' | 48,014 | 82,717 |
Changes in tax credits, net | ' | ' | 4,510 | 3,642 |
Allowance for equity funds used during construction | -1,255 | -1,611 | -4,030 | -5,548 |
Changes in assets and liabilities | ' | ' | ' | ' |
Decrease (increase) in accounts receivable | ' | ' | 42,077 | -36,907 |
Decrease (Increase) in accrued unbilled revenues | ' | ' | -5,603 | 5,736 |
Decrease in fuel oil stock | ' | ' | 24,332 | -31,372 |
Increase in materials and supplies | ' | ' | -8,349 | -7,305 |
Increase in regulatory assets | ' | ' | -53,314 | -57,793 |
Decrease in accounts payable | ' | ' | -22,974 | -3,481 |
Changes in prepaid and accrued income taxes and revenue taxes | ' | ' | -15,416 | -20,665 |
Contributions to defined benefit pension and other postretirement benefit plans | ' | ' | -60,876 | -62,417 |
Other increase in defined benefit pension and other postretirement benefit plans liability | ' | ' | 62,364 | 49,861 |
Change in other assets and liabilities | ' | ' | -10,195 | -45,608 |
Net cash provided by (used in) operating activities | ' | ' | 211,310 | 80,012 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | ' | -237,869 | -220,970 |
Contributions in aid of construction | ' | ' | 23,633 | 33,106 |
Other | ' | ' | 427 | 0 |
Net cash used in investing activities | ' | ' | -213,809 | -187,864 |
Cash flows from financing activities | ' | ' | ' | ' |
Common stock dividends | ' | ' | -61,183 | -54,783 |
Preferred stock dividends of HECO and subsidiaries | ' | ' | -1,496 | -1,496 |
Proceeds from issuance of long-term debt | ' | ' | 0 | 457,000 |
Repayment of long-term debt | ' | ' | 0 | -368,500 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | ' | ' | 73,246 | 44,719 |
Other | ' | ' | -42 | -2,172 |
Net cash provided by (used in) financing activities | ' | ' | 10,525 | 74,768 |
Net decrease in cash and cash equivalents | ' | ' | 8,026 | -33,084 |
Cash and cash equivalents, beginning of period | ' | ' | 17,159 | 48,806 |
Cash and cash equivalents, end of period | $25,185 | $15,722 | $25,185 | $15,722 |