Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Entity Registrant Name | HAWAIIAN ELECTRIC INDUSTRIES INC | ||
Entity Central Index Key | 354707 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,571,503,656 | ||
Entity Common Stock, Shares Outstanding | 102,710,867 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Entity Information [Line Items] | |||
Entity Registrant Name | HAWAIIAN ELECTRIC COMPANY INC | ||
Entity Central Index Key | 46207 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $0 | ||
Entity Common Stock, Shares Outstanding | 15,805,327 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Total revenues | $3,239,542 | $3,238,470 | $3,374,995 |
Expenses | |||
Total expenses | 2,910,618 | 2,923,051 | 3,090,799 |
Operating income (loss) | |||
Total operating income | 328,924 | 315,419 | 284,196 |
Interest expense, net – other than on deposit liabilities and other bank borrowings | -76,352 | -75,479 | -78,151 |
Allowance for borrowed funds used during construction | 2,579 | 2,246 | 4,355 |
Allowance for equity funds used during construction | 6,771 | 5,561 | 7,007 |
Income before income taxes | 261,922 | 247,747 | 217,407 |
Income taxes | 91,712 | 84,341 | 76,859 |
Net income | 170,210 | 163,406 | 140,548 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | 168,320 | 161,516 | 138,658 |
Basic earnings per common share (in dollars per share) | $1.65 | $1.63 | $1.43 |
Diluted earnings per common share (in dollars per share) | $1.64 | $1.62 | $1.42 |
Dividends per common share (in dollars per share) | $1.24 | $1.24 | $1.24 |
Weighted-average number of common shares outstanding (in shares) | 101,968 | 98,968 | 96,908 |
Net effect of potentially dilutive shares (in shares) | 969 | 655 | 430 |
Adjusted weighted-average shares (in shares) | 102,937 | 99,623 | 97,338 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Revenues | |||
Total revenues | 2,987,323 | 2,980,172 | 3,109,439 |
Expenses | |||
Total expenses | 2,711,555 | 2,734,659 | 2,896,427 |
Fuel oil | 1,131,685 | 1,185,552 | 1,297,419 |
Purchased power | 722,008 | 710,681 | 724,240 |
Other operation and maintenance | 410,612 | 403,270 | 397,429 |
Depreciation | 166,387 | 154,025 | 144,498 |
Taxes, other than income taxes | 280,863 | 281,131 | 292,841 |
Impairment of utility assets | 0 | 0 | 40,000 |
Operating income (loss) | |||
Total operating income | 275,768 | 245,513 | 213,012 |
Allowance for borrowed funds used during construction | 2,579 | 2,246 | 4,355 |
Allowance for equity funds used during construction | 6,771 | 5,561 | 7,007 |
Interest expense and other charges, net | -64,757 | -59,279 | -62,055 |
Income before income taxes | 220,361 | 194,041 | 162,319 |
Income taxes | 80,725 | 69,117 | 61,048 |
Net income | 139,636 | 124,924 | 101,271 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 |
Net income attributable to Hawaiian Electric | 138,721 | 124,009 | 100,356 |
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 |
Net income for common stock | 137,641 | 122,929 | 99,276 |
Electric utility | |||
Revenues | |||
Total revenues | 2,987,323 | 2,980,172 | 3,109,439 |
Expenses | |||
Total expenses | 2,711,555 | 2,734,659 | 2,896,427 |
Operating income (loss) | |||
Total operating income | 275,768 | 245,513 | 213,012 |
Income before income taxes | 220,361 | 194,041 | 162,319 |
Income taxes | 80,725 | 69,117 | 61,048 |
Net income | 139,636 | 124,924 | 101,271 |
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 |
Net income for common stock | 137,641 | 122,929 | 99,276 |
Bank | |||
Revenues | |||
Total revenues | 252,497 | 258,147 | 265,539 |
Expenses | |||
Total expenses | 176,878 | 171,090 | 177,106 |
Operating income (loss) | |||
Total operating income | 75,619 | 87,057 | 88,433 |
Income before income taxes | 75,619 | 87,059 | 89,021 |
Income taxes | 24,127 | 29,525 | 30,384 |
Net income | 51,492 | 57,534 | 58,637 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income for common stock | 51,492 | 57,534 | 58,637 |
Other | |||
Revenues | |||
Total revenues | -278 | 151 | 17 |
Expenses | |||
Total expenses | 22,185 | 17,302 | 17,266 |
Operating income (loss) | |||
Total operating income | -22,463 | -17,151 | -17,249 |
Income before income taxes | -34,058 | -33,353 | -33,933 |
Income taxes | -13,140 | -14,301 | -14,573 |
Net income | -20,918 | -19,052 | -19,360 |
Preferred stock dividends of subsidiaries | -105 | -105 | -105 |
Net income for common stock | ($20,813) | ($18,947) | ($19,255) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income for common stock | $168,320 | $161,516 | $138,658 |
Net unrealized gains (losses) on available-for sale investment securities: | |||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(3,856), $9,037 and ($631) for 2014, 2013 and 2012, respectively | 5,840 | -13,686 | 956 |
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $1,132, $488 and $53 for 2014, 2013 and 2012, respectively | -1,715 | -738 | -81 |
Derivatives qualified as cash flow hedges: | |||
Less: reclassification adjustment to net income, net of tax benefits of $150, $150 and $150 for 2014, 2013 and 2012, respectively | 236 | 235 | 236 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | -234,166 | 223,177 | -99,159 |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 11,344 | 23,280 | 15,291 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | 207,833 | -222,595 | 75,471 |
Other comprehensive income (loss), net of taxes | -10,628 | 9,673 | -7,286 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 157,692 | 171,189 | 131,372 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Net income for common stock | 137,641 | 122,929 | 99,276 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits | -218,608 | 203,479 | -90,082 |
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,212 | 20,694 | 13,673 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits | 207,833 | -222,595 | 75,471 |
Other comprehensive income (loss), net of taxes | -563 | 1,578 | -938 |
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $137,078 | $124,507 | $98,338 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net unrealized gains (losses) on securities arising during the period, taxes | ($3,856) | $9,037 | ($631) |
Less: reclassification adjustment for net realized gains included in net income, taxes | 1,132 | 488 | 53 |
Less: reclassification adjustment to net income, net of tax benefits of $150, $150 and $150 for 2014, 2013 and 2012, respectively | 150 | 150 | 150 |
Net gains (losses) arising during the period, tax benefits | -149,364 | 142,478 | -63,303 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | -7,245 | -14,870 | -9,764 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of ($132,373), $141,777 and ($48,299) for 2014, 2013 and 2012, respectively | -132,373 | 141,777 | -48,299 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Net gains (losses) arising during the period, tax benefits | -139,236 | 129,601 | -57,375 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | -6,504 | -13,180 | -8,709 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of ($132,373), $141,777 and ($48,299) for 2014, 2013 and 2012, respectively | ($132,373) | $141,777 | ($48,069) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||
Cash and cash equivalents | $175,542,000 | $220,036,000 |
Accounts receivable and unbilled revenues, net | 313,696,000 | 346,785,000 |
Available-for-sale investment securities | 550,394,000 | 529,007,000 |
Stock in Federal Home Loan Bank of Seattle, at cost | 69,302,000 | 92,546,000 |
Loans receivable held for investment, net | 4,389,033,000 | 4,110,113,000 |
Loans held for sale, at lower of cost or fair value | 8,424,000 | 5,302,000 |
Property, plant and equipment, net | ||
Land | 94,093,000 | 74,272,000 |
Plant and equipment | 6,137,417,000 | 5,836,922,000 |
Construction in progress | 168,214,000 | 146,742,000 |
Property, plant and equipment, gross | 6,399,724,000 | 6,057,936,000 |
Less - accumulated depreciation | -2,250,950,000 | -2,192,422,000 |
Property, plant and equipment, net | 4,148,774,000 | 3,865,514,000 |
Regulatory assets | 905,264,000 | 575,924,000 |
Other | 541,542,000 | 512,627,000 |
Goodwill | 82,190,000 | 82,190,000 |
Other long-term assets | ||
Total assets | 11,184,161,000 | 10,340,044,000 |
Liabilities | ||
Accounts payable | 186,425,000 | 212,331,000 |
Interest and dividends payable | 25,336,000 | 26,716,000 |
Deposit liabilities | 4,623,415,000 | 4,372,477,000 |
Short-term borrowings-other than bank | 118,972,000 | 105,482,000 |
Other bank borrowings | 290,656,000 | 244,514,000 |
Long-term debt, net-other than bank | 1,506,546,000 | 1,492,945,000 |
Deferred income taxes | 631,734,000 | 529,260,000 |
Regulatory liabilities | 344,849,000 | 349,299,000 |
Contributions in aid of construction | 466,432,000 | 432,894,000 |
Defined benefit pension and other postretirement benefit plans liability | 632,845,000 | 288,539,000 |
Other | 531,230,000 | 524,224,000 |
Deferred credits and other liabilities | ||
Total liabilities | 9,358,440,000 | 8,578,681,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293,000 | 34,293,000 |
Commitments and contingencies (Notes 4 and 5) | ||
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: 102,565,266 shares and 101,259,800 shares at December 31, 2014 and 2013, respectively | 1,521,297,000 | 1,488,126,000 |
Retained earnings | 297,509,000 | 255,694,000 |
Accumulated other comprehensive income (loss), net of taxes: | ||
Net unrealized gains (losses) on securities | 462,000 | -3,663,000 |
Unrealized losses on derivatives | -289,000 | -525,000 |
Retirement benefit plans | -27,551,000 | -12,562,000 |
Accumulated other comprehensive income (loss), net of taxes | -27,378,000 | -16,750,000 |
Total shareholders' equity | 1,791,428,000 | 1,727,070,000 |
Total liabilities and shareholders' equity | 11,184,161,000 | 10,340,044,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Property, plant and equipment, net | ||
Property, plant and equipment, net | 4,051,450,000 | 3,792,329,000 |
Utility plant, at cost | ||
Land | 52,299,000 | 51,883,000 |
Plant and equipment | 6,009,482,000 | 5,701,875,000 |
Less accumulated depreciation | -2,175,510,000 | -2,111,229,000 |
Construction in progress | 158,616,000 | 143,233,000 |
Utility property, plant and equipment, net | 4,044,887,000 | 3,785,762,000 |
Nonutility property, plant and equipment, less accumulated depreciation of $1,227 and $1,223 at respective dates | 6,563,000 | 6,567,000 |
Current assets | ||
Cash and equivalents | 13,762,000 | 62,825,000 |
Customer accounts receivable, net | 158,484,000 | 175,448,000 |
Accrued unbilled revenues, net | 137,374,000 | 144,124,000 |
Other accounts receivable, net | 4,283,000 | 14,062,000 |
Fuel oil stock, at average cost | 106,046,000 | 134,087,000 |
Materials and supplies, at average cost | 57,250,000 | 59,044,000 |
Prepayments and other | 66,383,000 | 52,857,000 |
Regulatory assets | 71,421,000 | 69,738,000 |
Total current assets | 615,003,000 | 712,185,000 |
Other long-term assets | ||
Regulatory assets | 833,843,000 | 506,186,000 |
Unamortized debt expense | 8,323,000 | 9,003,000 |
Other | 81,838,000 | 67,426,000 |
Total other long-term assets | 924,004,000 | 582,615,000 |
Total assets | 5,590,457,000 | 5,087,129,000 |
Liabilities | ||
Interest and dividends payable | 22,316,000 | 21,652,000 |
Deferred income taxes | 602,872,000 | 507,161,000 |
Regulatory liabilities | 344,849,000 | 349,299,000 |
Contributions in aid of construction | 466,432,000 | 432,894,000 |
Long-term debt, net | 1,206,546,000 | 1,206,545,000 |
Total capitalization | 2,922,983,000 | 2,834,402,000 |
Current liabilities | ||
Current portion of long-term debt | 0 | 11,400,000 |
Accounts payable | 163,934,000 | 189,559,000 |
Taxes accrued | 250,402,000 | 249,445,000 |
Regulatory liabilities | 632,000 | 1,916,000 |
Other | 65,146,000 | 63,881,000 |
Total current liabilities | 502,430,000 | 537,853,000 |
Deferred credits and other liabilities | ||
Regulatory liabilities | 344,217,000 | 347,383,000 |
Unamortized tax credits | 79,492,000 | 73,539,000 |
Retirement benefits liability | 595,395,000 | 262,162,000 |
Other | 76,636,000 | 91,735,000 |
Total deferred credits and other liabilities | 1,698,612,000 | 1,281,980,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293,000 | 34,293,000 |
Commitments and contingencies (Notes 4 and 5) | ||
Shareholders' equity | ||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 34,293,000 | 34,293,000 |
Retained earnings | 997,773,000 | 948,624,000 |
Accumulated other comprehensive income (loss), net of taxes: | ||
Retirement benefit plans | 45,000 | 608,000 |
Total shareholders' equity | 1,682,144,000 | 1,593,564,000 |
Total liabilities and shareholders' equity | $5,590,457,000 | $5,087,129,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
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 | 102,565,266 | 101,259,800 |
Common stock, outstanding shares | 102,565,266 | 101,259,800 |
Nonutility property, plant and equipment, accumulated depreciation | $1,227 | $1,223 |
Consolidated_Statements_of_Cap
Consolidated Statements of Capitalization (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock equity | ||
Retained earnings | $297,509,000 | $255,694,000 |
Accumulated other comprehensive income (loss), net of taxes - retirement benefit plans | -27,551,000 | -12,562,000 |
Total shareholders' equity | 1,791,428,000 | 1,727,070,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293,000 | 34,293,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock equity | ||
Common stock of $6 2/3 par value, Authorized: 50,000,000 shares. Outstanding: 2014, 15,805,327 shares and 2013, 15,429,105 shares | 105,388,000 | 102,880,000 |
Additional paid in capital | 578,938,000 | 541,452,000 |
Retained earnings | 997,773,000 | 948,624,000 |
Accumulated other comprehensive income (loss), net of taxes - retirement benefit plans | 45,000 | 608,000 |
Total shareholders' equity | 1,682,144,000 | 1,593,564,000 |
Shares outstanding December 31, 2013 | 1,234,657 | 1,234,657 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293,000 | 34,293,000 |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 462,000,000 | 473,400,000 |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 744,546,000 | 744,546,000 |
Total long-term debt | 1,206,546,000 | 1,217,946,000 |
Less unamortized discount | 0 | 1,000 |
Current portion of long-term debt | 0 | 11,400,000 |
Long-term debt, net | 1,206,546,000 | 1,206,545,000 |
Total capitalization | 2,922,983,000 | 2,834,402,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series C, 4.25% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 150,000 | 150,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 3,000,000 | 3,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series D, 5.00% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 50,000 | 50,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 1,000,000 | 1,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series E, 5.00% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 150,000 | 150,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 3,000,000 | 3,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series H, 5.25% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 250,000 | 250,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 5,000,000 | 5,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series I, 5.00% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 89,657 | 89,657 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 1,793,000 | 1,793,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series J, 4.75% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 250,000 | 250,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 5,000,000 | 5,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series K, 4.65% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $20 | $20 |
Shares outstanding December 31, 2013 | 175,000 | 175,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 3,500,000 | 3,500,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | ||
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 693,000,000 | 693,000,000 |
Hawaiian Electric Company, Inc (HECO) | ||
Common stock equity | ||
Total shareholders' equity | 1,682,144,000 | 1,593,564,000 |
Other long-term debt b unsecured: | ||
Current portion of long-term debt | 0 | |
Long-term debt, net | 830,546,000 | 830,547,000 |
Total capitalization | 2,534,983,000 | 2,446,404,000 |
Hawaiian Electric Company, Inc (HECO) | 6.50%, series 2009, due 2039 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 90,000,000 | 90,000,000 |
Hawaiian Electric Company, Inc (HECO) | 4.60%, refunding series 2007B, due 2026 | ||
Debt instrument, stated interest rate (as a percent) | 4.60% | 4.60% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 62,000,000 | 62,000,000 |
Hawaiian Electric Company, Inc (HECO) | 4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate (as a percent) | 4.65% | 4.65% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 100,000,000 | 100,000,000 |
Hawaiian Electric Company, Inc (HECO) | 4.80%, refunding series 2005A, due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 4.80% | 4.80% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 40,000,000 | 40,000,000 |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.45%, Series 2013A, due 2022 | ||
Debt instrument, stated interest rate (as a percent) | 4.45% | 4.45% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 40,000,000 | 40,000,000 |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.84%, Series 2013B, due 2027 | ||
Debt instrument, stated interest rate (as a percent) | 4.84% | 4.84% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 50,000,000 | 50,000,000 |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 5.65%, Series 2013C, due 2043 | ||
Debt instrument, stated interest rate (as a percent) | 5.65% | 5.65% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 50,000,000 | 50,000,000 |
Hawaiian Electric Company, Inc (HECO) | Senior notes 3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate (as a percent) | 3.79% | 3.79% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 30,000,000 | 30,000,000 |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.03%, Series 2012B, due 2020 | ||
Debt instrument, stated interest rate (as a percent) | 4.03% | 4.03% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 62,000,000 | 62,000,000 |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.55%, due 2023 | ||
Debt instrument, stated interest rate (as a percent) | 4.55% | 4.55% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 50,000,000 | 50,000,000 |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.72%, Series 2012D, due 2029 | ||
Debt instrument, stated interest rate (as a percent) | 4.72% | 4.72% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 35,000,000 | 35,000,000 |
Hawaiian Electric Company, Inc (HECO) | Senior notes 5.39%, Series, 2012E, due 2042 | ||
Debt instrument, stated interest rate (as a percent) | 5.39% | 5.39% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 150,000,000 | 150,000,000 |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.53%, Series, 2012F, due 2032 | ||
Debt instrument, stated interest rate (as a percent) | 4.53% | 4.53% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 40,000,000 | 40,000,000 |
Hawaiian Electric Company, Inc (HECO) | 6.50% Junior subordinated deferrable interest debentures, series 2004, due 2034 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 51,546,000 | 51,546,000 |
Hawaii Electric Light Company, Inc. (HELCO) | ||
Common stock equity | ||
Total shareholders' equity | 281,846,000 | 274,802,000 |
Other long-term debt b unsecured: | ||
Current portion of long-term debt | 0 | 11,400,000 |
Long-term debt, net | 190,000,000 | 189,998,000 |
Total capitalization | 478,846,000 | 471,800,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Series G, 7.625% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $100 | $100 |
Shares outstanding December 31, 2013 | 70,000 | 70,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 7,000,000 | 7,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 6.50%, series 2009, due 2039 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 60,000,000 | 60,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 4.60%, refunding series 2007B, due 2026 | ||
Debt instrument, stated interest rate (as a percent) | 4.60% | 4.60% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 8,000,000 | 8,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate (as a percent) | 4.65% | 4.65% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 20,000,000 | 20,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 4.80%, refunding series 2005A, due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 4.80% | 4.80% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 5,000,000 | 5,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 5.50%, refunding series 1999A, due 2014 | ||
Debt instrument, stated interest rate (as a percent) | 5.50% | |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 0 | 11,400,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 3.83%, Series 2013A, due 2020 | ||
Debt instrument, stated interest rate (as a percent) | 3.83% | 3.83% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 14,000,000 | 14,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 4.45%, Series 2013B, due 2022 | ||
Debt instrument, stated interest rate (as a percent) | 4.45% | 4.45% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 12,000,000 | 12,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 4.84%, Series 2013C, due 2027 | ||
Debt instrument, stated interest rate (as a percent) | 4.84% | 4.84% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 30,000,000 | 30,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Senior notes 3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate (as a percent) | 3.79% | 3.79% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 11,000,000 | 11,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Senior notes 4.55%, due 2023 | ||
Debt instrument, stated interest rate (as a percent) | 4.55% | 4.55% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 20,000,000 | 20,000,000 |
Maui Electric Company, Limited (MECO) | ||
Common stock equity | ||
Total shareholders' equity | 256,692,000 | 248,771,000 |
Other long-term debt b unsecured: | ||
Current portion of long-term debt | 0 | |
Long-term debt, net | 186,000,000 | 186,000,000 |
Total capitalization | 447,692,000 | 439,771,000 |
Maui Electric Company, Limited (MECO) | Series H, 7.625% Preferred Stock | ||
Common stock equity | ||
Preferred Stock, Par Value (in dollars per share) | $100 | $100 |
Shares outstanding December 31, 2013 | 50,000 | 50,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | 5,000,000 | 5,000,000 |
Maui Electric Company, Limited (MECO) | 4.60%, refunding series 2007B, due 2026 | ||
Debt instrument, stated interest rate (as a percent) | 4.60% | 4.60% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 55,000,000 | 55,000,000 |
Maui Electric Company, Limited (MECO) | 4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate (as a percent) | 4.65% | 4.65% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 20,000,000 | 20,000,000 |
Maui Electric Company, Limited (MECO) | 4.80%, refunding series 2005A, due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 4.80% | 4.80% |
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 2,000,000 | 2,000,000 |
Maui Electric Company, Limited (MECO) | Maui Electric, 4.84%, Series 2013A, due 2027 | ||
Debt instrument, stated interest rate (as a percent) | 4.84% | 4.84% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 20,000,000 | 20,000,000 |
Maui Electric Company, Limited (MECO) | Maui Electric, 5.65%, Series 2013B, due 2043 | ||
Debt instrument, stated interest rate (as a percent) | 5.65% | 5.65% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 20,000,000 | 20,000,000 |
Maui Electric Company, Limited (MECO) | Senior notes 3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate (as a percent) | 3.79% | 3.79% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 9,000,000 | 9,000,000 |
Maui Electric Company, Limited (MECO) | Senior notes 4.03%, Series 2012B, due 2020 | ||
Debt instrument, stated interest rate (as a percent) | 4.03% | 4.03% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | 20,000,000 | 20,000,000 |
Maui Electric Company, Limited (MECO) | Senior notes 4.55%, due 2023 | ||
Debt instrument, stated interest rate (as a percent) | 4.55% | 4.55% |
Other long-term debt b unsecured: | ||
Other long-term debt - unsecured | $30,000,000 | $30,000,000 |
Consolidated_Statements_of_Cap1
Consolidated Statements of Capitalization (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 102,565,266 | 101,259,800 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 15,805,327 | 15,429,105 |
Common stock, par value (in dollars per share) | $6.67 | $6.67 |
Shares outstanding December 31, 2013 | 1,234,657 | 1,234,657 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series C, 4.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 4.25% | 4.25% |
Shares outstanding December 31, 2013 | 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series D, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Shares outstanding December 31, 2013 | 50,000 | 50,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series E, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Shares outstanding December 31, 2013 | 150,000 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series H, 5.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 5.25% | 5.25% |
Shares outstanding December 31, 2013 | 250,000 | 250,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series I, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 5.00% | 5.00% |
Shares outstanding December 31, 2013 | 89,657 | 89,657 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series J, 4.75% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 4.75% | 4.75% |
Shares outstanding December 31, 2013 | 250,000 | 250,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series K, 4.65% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, dividend rate | 4.65% | 4.65% |
Shares outstanding December 31, 2013 | 175,000 | 175,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $20 Par Value | ||
Preferred stock, par value (in dollars per share) | $20 | $20 |
Preferred stock, Authorized shares | 5,000,000 | 5,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Preferred Stock $100 Par Value | ||
Preferred stock, par value (in dollars per share) | $100 | $100 |
Preferred stock, Authorized shares | 7,000,000 | 7,000,000 |
Hawaiian Electric Company, Inc (HECO) | 6.50%, series 2009, due 2039 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Hawaiian Electric Company, Inc (HECO) | 4.60%, refunding series 2007B, due 2026 | ||
Debt instrument, stated interest rate (as a percent) | 4.60% | 4.60% |
Hawaiian Electric Company, Inc (HECO) | 4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate (as a percent) | 4.65% | 4.65% |
Hawaiian Electric Company, Inc (HECO) | 4.80%, refunding series 2005A, due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 4.80% | 4.80% |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.45%, Series 2013A, due 2022 | ||
Debt instrument, stated interest rate (as a percent) | 4.45% | 4.45% |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.84%, Series 2013B, due 2027 | ||
Debt instrument, stated interest rate (as a percent) | 4.84% | 4.84% |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 5.65%, Series 2013C, due 2043 | ||
Debt instrument, stated interest rate (as a percent) | 5.65% | 5.65% |
Hawaiian Electric Company, Inc (HECO) | Senior notes 3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate (as a percent) | 3.79% | 3.79% |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.03%, Series 2012B, due 2020 | ||
Debt instrument, stated interest rate (as a percent) | 4.03% | 4.03% |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.55%, due 2023 | ||
Debt instrument, stated interest rate (as a percent) | 4.55% | 4.55% |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.72%, Series 2012D, due 2029 | ||
Debt instrument, stated interest rate (as a percent) | 4.72% | 4.72% |
Hawaiian Electric Company, Inc (HECO) | Senior notes 5.39%, Series, 2012E, due 2042 | ||
Debt instrument, stated interest rate (as a percent) | 5.39% | 5.39% |
Hawaiian Electric Company, Inc (HECO) | Senior notes 4.53%, Series, 2012F, due 2032 | ||
Debt instrument, stated interest rate (as a percent) | 4.53% | 4.53% |
Hawaiian Electric Company, Inc (HECO) | 6.50% Junior subordinated deferrable interest debentures, series 2004, due 2034 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Hawaii Electric Light Company, Inc. (HELCO) | Series G, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $100 | $100 |
Preferred stock, dividend rate | 7.63% | 7.63% |
Shares outstanding December 31, 2013 | 70,000 | 70,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 6.50%, series 2009, due 2039 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Hawaii Electric Light Company, Inc. (HELCO) | 4.60%, refunding series 2007B, due 2026 | ||
Debt instrument, stated interest rate (as a percent) | 4.60% | 4.60% |
Hawaii Electric Light Company, Inc. (HELCO) | 4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate (as a percent) | 4.65% | 4.65% |
Hawaii Electric Light Company, Inc. (HELCO) | 4.80%, refunding series 2005A, due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 4.80% | 4.80% |
Hawaii Electric Light Company, Inc. (HELCO) | 5.50%, refunding series 1999A, due 2014 | ||
Debt instrument, stated interest rate (as a percent) | 5.50% | |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 3.83%, Series 2013A, due 2020 | ||
Debt instrument, stated interest rate (as a percent) | 3.83% | 3.83% |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 4.45%, Series 2013B, due 2022 | ||
Debt instrument, stated interest rate (as a percent) | 4.45% | 4.45% |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 4.84%, Series 2013C, due 2027 | ||
Debt instrument, stated interest rate (as a percent) | 4.84% | 4.84% |
Hawaii Electric Light Company, Inc. (HELCO) | Senior notes 3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate (as a percent) | 3.79% | 3.79% |
Hawaii Electric Light Company, Inc. (HELCO) | Senior notes 4.55%, due 2023 | ||
Debt instrument, stated interest rate (as a percent) | 4.55% | 4.55% |
Maui Electric Company, Limited (MECO) | Series H, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $100 | $100 |
Preferred stock, dividend rate | 7.63% | 7.63% |
Shares outstanding December 31, 2013 | 50,000 | 50,000 |
Maui Electric Company, Limited (MECO) | 4.60%, refunding series 2007B, due 2026 | ||
Debt instrument, stated interest rate (as a percent) | 4.60% | 4.60% |
Maui Electric Company, Limited (MECO) | 4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate (as a percent) | 4.65% | 4.65% |
Maui Electric Company, Limited (MECO) | 4.80%, refunding series 2005A, due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 4.80% | 4.80% |
Maui Electric Company, Limited (MECO) | Maui Electric, 4.84%, Series 2013A, due 2027 | ||
Debt instrument, stated interest rate (as a percent) | 4.84% | 4.84% |
Maui Electric Company, Limited (MECO) | Maui Electric, 5.65%, Series 2013B, due 2043 | ||
Debt instrument, stated interest rate (as a percent) | 5.65% | 5.65% |
Maui Electric Company, Limited (MECO) | Senior notes 3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate (as a percent) | 3.79% | 3.79% |
Maui Electric Company, Limited (MECO) | Senior notes 4.03%, Series 2012B, due 2020 | ||
Debt instrument, stated interest rate (as a percent) | 4.03% | 4.03% |
Maui Electric Company, Limited (MECO) | Senior notes 4.55%, due 2023 | ||
Debt instrument, stated interest rate (as a percent) | 4.55% | 4.55% |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | 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 |
In Thousands, except Share data, unless otherwise specified | Common stock | Premium on capital stock | Retained earnings | Accumulated other comprehensive income (loss) | |||||
Beginning Balance at Dec. 31, 2011 | $1,528,706 | $1,349,446 | $198,397 | ($19,137) | $1,402,841 | $94,911 | $426,921 | $881,041 | ($32) |
Balance (in shares) at Dec. 31, 2011 | 96,038,000 | 14,234,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 138,658 | 138,658 | 99,276 | 99,276 | |||||
Other comprehensive income (loss), net of tax benefits | -7,286 | -7,286 | -938 | -938 | |||||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 41,295 | 41,295 | 44,001 | ||||||
Issuance of common stock: Dividend reinvestment and stock purchase plan (in shares) | 1,560,000 | ||||||||
Issuance of common stock: Retirement savings and other plans | 8,196 | 8,196 | |||||||
Issuance of common stock: Retirement savings and other plans (in shares) | 330,000 | ||||||||
Issuance of common stock: Expenses and other, net | 4,547 | 4,547 | |||||||
Issuance of common stock, net of expenses | 431,000 | ||||||||
Issuance of common stock, net of expenses (in shares) | 44,001 | 2,877 | 41,124 | ||||||
Dividend equivalents paid on equity-classified awards | -101 | -101 | |||||||
Common stock dividends | -120,150 | -120,150 | -73,044 | -73,044 | |||||
Ending Balance at Dec. 31, 2012 | 1,593,865 | 1,403,484 | 216,804 | -26,423 | 1,472,136 | 97,788 | 468,045 | 907,273 | -970 |
Balance (in shares) at Dec. 31, 2012 | 97,928,000 | 14,665,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 33,679 | 24,429 | |||||||
Ending Balance at Mar. 31, 2013 | |||||||||
Beginning Balance at Dec. 31, 2012 | 1,593,865 | 1,403,484 | 216,804 | -26,423 | 1,472,136 | 97,788 | 468,045 | 907,273 | -970 |
Balance (in shares) at Dec. 31, 2012 | 97,928,000 | 14,665,000 | |||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 161,516 | 161,516 | 122,929 | 122,929 | |||||
Other comprehensive income (loss), net of tax benefits | 9,673 | 9,673 | 1,578 | 1,578 | |||||
Partial settlement of equity forward (in shares) | 1,300,000 | ||||||||
Partial settlement of equity forward | 33,409 | 33,409 | |||||||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 41,692 | 41,692 | 78,499 | ||||||
Issuance of common stock: Dividend reinvestment and stock purchase plan (in shares) | 1,612,000 | ||||||||
Issuance of common stock: Retirement savings and other plans | 9,203 | 9,203 | |||||||
Issuance of common stock: Retirement savings and other plans (in shares) | 420,000 | ||||||||
Issuance of common stock: Expenses and other, net | 338 | 338 | |||||||
Issuance of common stock, net of expenses | 764,000 | ||||||||
Issuance of common stock, net of expenses (in shares) | 78,499 | 5,092 | 73,407 | ||||||
Common stock dividends | -122,626 | -122,626 | -81,578 | -81,578 | |||||
Ending Balance at Dec. 31, 2013 | 1,727,070 | 1,488,126 | 255,694 | -16,750 | 1,593,564 | 102,880 | 541,452 | 948,624 | 608 |
Balance (in shares) at Dec. 31, 2013 | 101,259,800 | 101,260,000 | 15,429,000 | ||||||
Beginning Balance at Sep. 30, 2013 | |||||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 39,013 | 31,990 | |||||||
Ending Balance at Dec. 31, 2013 | 1,727,070 | 1,593,564 | |||||||
Balance (in shares) at Dec. 31, 2013 | 101,259,800 | ||||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 45,927 | 35,420 | |||||||
Ending Balance at Mar. 31, 2014 | |||||||||
Beginning Balance at Dec. 31, 2013 | 1,727,070 | 1,488,126 | 255,694 | -16,750 | 1,593,564 | 102,880 | 541,452 | 948,624 | 608 |
Balance (in shares) at Dec. 31, 2013 | 101,259,800 | 101,260,000 | 15,429,000 | ||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 168,320 | 168,320 | 137,641 | 137,641 | |||||
Other comprehensive income (loss), net of tax benefits | -10,628 | -10,628 | -563 | -563 | |||||
Partial settlement of equity forward (in shares) | 1,000,000 | ||||||||
Partial settlement of equity forward | 24,873 | 24,873 | |||||||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 2,461 | 2,461 | 39,994 | ||||||
Issuance of common stock: Dividend reinvestment and stock purchase plan (in shares) | 95,000 | ||||||||
Issuance of common stock: Retirement savings and other plans | 6,816 | 6,816 | |||||||
Issuance of common stock: Retirement savings and other plans (in shares) | 210,000 | ||||||||
Issuance of common stock: Expenses and other, net | -979 | -979 | |||||||
Issuance of common stock, net of expenses | 376,000 | ||||||||
Issuance of common stock, net of expenses (in shares) | 39,994 | 2,508 | 37,486 | ||||||
Common stock dividends | -126,505 | -126,505 | -88,492 | -88,492 | |||||
Ending Balance at Dec. 31, 2014 | 1,791,428 | 1,521,297 | 297,509 | -27,378 | 1,682,144 | 105,388 | 578,938 | 997,773 | 45 |
Balance (in shares) at Dec. 31, 2014 | 102,565,266 | 102,565,000 | 15,805,000 | ||||||
Beginning Balance at Sep. 30, 2014 | |||||||||
Increase (decrease) in stockholders' equity | |||||||||
Net income for common stock | 33,157 | 29,112 | |||||||
Ending Balance at Dec. 31, 2014 | $1,791,428 | $1,682,144 | |||||||
Balance (in shares) at Dec. 31, 2014 | 102,565,266 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Common stock dividends (in dollars per share) | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $1.24 | $1.24 | $1.24 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $170,210 | $163,406 | $140,548 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 172,762 | 160,061 | 150,389 |
Other amortization | 8,476 | 4,667 | 7,958 |
Provision for loan losses | 6,126 | 1,507 | 12,883 |
Impairment of utility assets | 0 | 0 | 40,000 |
Loans receivable originated and purchased, held for sale | -155,755 | -249,022 | -519,622 |
Proceeds from sale of loans receivable, held for sale | 155,030 | 273,775 | 513,000 |
Gain on sale of credit card portfolio | 0 | -2,251 | 0 |
Increase in deferred income taxes | 59,184 | 80,399 | 90,848 |
Excess tax benefits from share-based payment arrangements | -277 | -430 | -61 |
Allowance for equity funds used during construction | -6,771 | -5,561 | -7,007 |
Change in cash overdraft | -1,038 | 1,038 | 0 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable and unbilled revenues, net | 33,089 | 16,038 | -18,501 |
Decrease in fuel oil stock | 28,041 | 27,332 | 10,129 |
Increase in regulatory assets | -17,000 | -65,461 | -72,401 |
Decrease in accounts, interest and dividends payable | -92,294 | -23,153 | -39,738 |
Change in prepaid and accrued income taxes and revenue taxes | 12,845 | -19,406 | 21,079 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 22,251 | -33,014 | -228 |
Change in other assets and liabilities | -93,400 | -2,779 | -94,734 |
Net cash provided by operating activities | 301,479 | 327,146 | 234,542 |
Cash flows from investing activities | |||
Available-for-sale investment securities purchased | -183,778 | -112,654 | -243,633 |
Principal repayments on available-for-sale investment and mortgage-related securities | 91,013 | 158,558 | 191,253 |
Proceeds from sale of available-for-sale investment securities | 79,564 | 71,367 | 3,548 |
Redemption of stock from Federal Home Loan Bank of Seattle | 23,244 | 3,476 | 1,742 |
Net increase in loans held for investment | -283,810 | -398,426 | -112,730 |
Proceeds from sale of real estate acquired in settlement of loans | 3,213 | 9,212 | 11,336 |
Capital expenditures | -339,721 | -353,879 | -325,480 |
Contributions in aid of construction | 41,806 | 32,160 | 45,982 |
Proceeds from sale of credit card portfolio | 0 | 26,386 | 0 |
Other | -39 | 40 | 935 |
Net cash used in investing activities | -568,508 | -563,760 | -427,047 |
Cash flows from financing activities | |||
Net increase in deposit liabilities | 250,938 | 142,561 | 159,884 |
Net increase in short-term borrowings with original maturities of three months or less | 13,490 | 21,789 | 14,872 |
Net decrease in retail repurchase agreements | -9,465 | -1,418 | -37,291 |
Proceeds from other bank borrowings | 130,601 | 130,000 | 5,000 |
Repayments of other bank borrowings | -75,000 | -80,000 | -5,000 |
Proceeds from issuance of long-term debt | 125,000 | 286,000 | 457,000 |
Repayment of long-term debt | -111,400 | -216,000 | -375,500 |
Excess tax benefits from share-based payment arrangements | 277 | 430 | 61 |
Net proceeds from issuance of common stock | 26,898 | 55,086 | 23,613 |
Common stock dividends | -126,458 | -98,383 | -96,202 |
Preferred stock dividends of subsidiaries | -1,890 | -1,890 | -1,890 |
Other | -456 | -1,187 | -2,645 |
Net cash provided by (used in) financing activities | 222,535 | 236,988 | 141,902 |
Net increase (decrease) in cash and cash equivalents | -44,494 | 374 | -50,603 |
Cash and cash equivalents, January 1 | 220,036 | 219,662 | 270,265 |
Cash and cash equivalents, December 31 | 175,542 | 220,036 | 219,662 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income | 139,636 | 124,924 | 101,271 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 166,387 | 154,025 | 144,498 |
Other amortization | 8,091 | 5,077 | 6,998 |
Impairment of utility assets | 0 | 0 | 40,000 |
Increase in deferred income taxes | 82,947 | 64,507 | 86,878 |
Change in tax credits, net | 6,062 | 7,017 | 6,075 |
Allowance for equity funds used during construction | -6,771 | -5,561 | -7,007 |
Change in cash overdraft | -1,038 | 1,038 | 0 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable | 26,743 | 49,445 | -47,004 |
Decrease (increase) in accrued unbilled revenues | 6,750 | -9,826 | 3,528 |
Decrease in fuel oil stock | 28,041 | 27,332 | 10,129 |
Decrease (increase) in materials and supplies | 1,794 | -7,959 | -7,897 |
Increase in regulatory assets | -17,000 | -65,461 | -72,401 |
Decrease in accounts payable | -90,632 | -20,828 | -38,913 |
Change in prepaid and accrued income taxes and revenue taxes | -4,036 | -2,028 | 25,239 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | -961 | 2,240 | -744 |
Change in other assets and liabilities | -62,959 | -31,499 | -73,419 |
Net cash provided by operating activities | 283,054 | 292,443 | 177,231 |
Cash flows from investing activities | |||
Capital expenditures | -311,574 | -342,485 | -310,091 |
Contributions in aid of construction | 41,806 | 32,160 | 45,982 |
Other | 0 | -230 | 0 |
Net cash used in investing activities | -269,768 | -310,555 | -264,109 |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 0 | 236,000 | 457,000 |
Repayment of long-term debt | -11,400 | -166,000 | -368,500 |
Net proceeds from issuance of common stock | 40,000 | 78,500 | 44,000 |
Common stock dividends | -88,492 | -81,578 | -73,044 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | -1,995 | -1,995 | -1,995 |
Other | -462 | -1,149 | -2,230 |
Net cash provided by (used in) financing activities | -62,349 | 63,778 | 55,231 |
Net increase (decrease) in cash and cash equivalents | -49,063 | 45,666 | -31,647 |
Cash and cash equivalents, January 1 | 62,825 | 17,159 | 48,806 |
Cash and cash equivalents, December 31 | $13,762 | $62,825 | $17,159 |
Summary_of_significant_account
Summary of significant accounting policies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Summary of significant accounting policies | ||||||||||||||||||||||||
1 · Summary of significant accounting policies | ||||||||||||||||||||||||
General | ||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. (HEI) is a holding company with direct and indirect subsidiaries principally engaged in electric utility and banking businesses, primarily in the State of Hawaii. HEI is the parent holding company of Hawaiian Electric Company, Inc. (Hawaiian Electric) and indirect parent holding company of American Savings Bank, F. S. B. (ASB). HEI’s common stock is traded on the New York Stock Exchange. | ||||||||||||||||||||||||
Hawaiian Electric and its wholly-owned operating subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric), are regulated public electric utilities (collectively, the Utilities) in the business of generating, purchasing, transmitting, distributing and selling electric energy on all major islands in Hawaii other than Kauai. Hawaiian Electric also owns Renewable Hawaii, Inc. (RHI), Uluwehiokama Biofuels Corp. (UBC) and HECO Capital Trust III. See Note 3. | ||||||||||||||||||||||||
ASB is a federally chartered savings bank providing a full range of banking services to individual and business customers through its branch system in Hawaii. | ||||||||||||||||||||||||
Basis of presentation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates. | ||||||||||||||||||||||||
Material estimates that are particularly susceptible to significant change for the Company include the amounts reported for investment and mortgage-related securities (ASB only); property, plant and equipment; pension and other postretirement benefit obligations; contingencies and litigation; income taxes; regulatory assets and liabilities (Utilities only); electric utility revenues (Utilities only); and allowance for loan losses (ASB only). | ||||||||||||||||||||||||
Consolidation. The HEI consolidated financial statements include the accounts of HEI and its subsidiaries (collectively, the Company). The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries. The consolidated financial statements exclude subsidiaries which are variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. Investments in companies over which the Company or the Utilities have the ability to exercise significant influence, but not control, are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. See Note 6 for information regarding unconsolidated VIEs. | ||||||||||||||||||||||||
Cash and cash equivalents. The Utilities consider cash on hand, deposits in banks, money market accounts, certificates of deposit, short-term commercial paper of non-affiliates and liquid investments (with original maturities of three months or less) to be cash and cash equivalents. The Company considers the same items to be cash and cash equivalents as well as ASB’s deposits with the Federal Home Loan Bank (FHLB) of Seattle, federal funds sold (excess funds that ASB loans to other banks overnight at the federal funds rate) and securities purchased under resale agreements. | ||||||||||||||||||||||||
Equity method. Investments in up to 50%-owned affiliates over which the Company or the Utilities have the ability to exercise significant influence over the operating and financing policies and investments in unconsolidated subsidiaries (e.g. HECO Capital Trust III) are accounted for under the equity method, whereby the investment is carried at cost, plus (or minus) the equity in undistributed earnings (or losses) and minus distributions since acquisition. Equity in earnings or losses is reflected in operating revenues. Equity method investments are also evaluated for OTTI. Also see Note 6 below. | ||||||||||||||||||||||||
Property, plant and equipment. Property, plant and equipment are reported at cost. Self-constructed electric utility plant includes engineering, supervision, administrative and general costs and an allowance for the cost of funds used during the construction period. These costs are recorded in construction in progress and are transferred to utility plant when construction is completed and the facilities are either placed in service or become useful for public utility purposes. Costs for betterments that make utility plant more useful, more efficient, of greater durability or of greater capacity are also capitalized. Upon the retirement or sale of electric utility plant, generally no gain or loss is recognized. The cost of the plant retired is charged to accumulated depreciation. Amounts collected from customers for cost of removal (expected to exceed salvage value in the future) are included in regulatory liabilities. | ||||||||||||||||||||||||
Depreciation. Depreciation is computed primarily using the straight-line method over the estimated lives of the assets being depreciated. Electric utility plant additions in the current year are depreciated beginning January 1 of the following year in accordance with rate-making. Electric utility plant has lives ranging from 20 to 88 years for production plant, from 25 to 65 years for transmission and distribution plant and from 5 to 65 years for general plant. The Utilities’ composite annual depreciation rate, which includes a component for cost of removal, was 3.1% in 2014, 2013 and 2012. | ||||||||||||||||||||||||
Leases. HEI, the Utilities and ASB have entered into lease agreements for the use of equipment and office space. The provisions of some of the lease agreements contain renewal options. | ||||||||||||||||||||||||
The Company's operating lease expense was $19 million in 2014, 2013 and 2012. The Utilities' operating lease expense was $9 million, $8 million and $8 million in 2014, 2013 and 2012, respectively. The Company's and the Utilities' future minimum lease payments are as follows: | ||||||||||||||||||||||||
(in millions) | HEI | Hawaiian Electric | ||||||||||||||||||||||
2015 | $ | 17 | $ | 8 | ||||||||||||||||||||
2016 | 15 | 6 | ||||||||||||||||||||||
2017 | 12 | 5 | ||||||||||||||||||||||
2018 | 9 | 4 | ||||||||||||||||||||||
2019 | 7 | 3 | ||||||||||||||||||||||
Thereafter | 23 | 14 | ||||||||||||||||||||||
$ | 83 | $ | 40 | |||||||||||||||||||||
Retirement benefits. Pension and other postretirement benefit costs are charged primarily to expense and electric utility plant (in the case of the Utilities). Funding for the Company’s qualified pension plans (Plans) is based on actuarial assumptions adopted by the Pension Investment Committee administering the Plans on the advice of an enrolled actuary. The participating employers contribute amounts to a master pension trust for the Plans in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), including changes promulgated by the Pension Protection Act of 2006, and considering the deductibility of contributions under the Internal Revenue Code. The Company generally funds at least the net periodic pension cost during the year, subject to limits and targeted funded status as determined with the consulting actuary. Under a pension tracking mechanism approved by the Public Utilities Commission of the State of Hawaii (PUC), the Utilities generally will make contributions to the pension fund at the greater of the minimum level required under the law or net periodic pension cost. | ||||||||||||||||||||||||
Certain health care and/or life insurance benefits are provided to eligible retired employees and the employees’ beneficiaries and covered dependents. The Company generally funds the net periodic postretirement benefit costs other than pensions (except for executive life) and the amortization of the regulatory asset for postretirement benefits other than pensions (OPEB), while maximizing the use of the most tax advantaged funding vehicles, subject to cash flow requirements and reviews of the funded status with the consulting actuary. The Utilities must fund OPEB costs as specified in the OPEB tracking mechanisms, which were approved by the PUC. Future decisions in rate cases could further impact funding amounts. | ||||||||||||||||||||||||
The Company and the Utilities recognize on their respective balance sheets the funded status of their defined benefit pension and other postretirement benefit plans, as adjusted by the impact of decisions of the PUC. | ||||||||||||||||||||||||
Environmental expenditures. The Company and the Utilities are subject to numerous federal and state environmental statutes and regulations. In general, environmental contamination treatment costs are charged to expense, unless it is probable that the PUC would allow such costs to be recovered in future rates, in which case such costs would be capitalized as regulatory assets. Also, environmental costs are capitalized if the costs extend the life, increase the capacity, or improve the safety or efficiency of property; the costs mitigate or prevent future environmental contamination; or the costs are incurred in preparing the property for sale. Environmental costs are either capitalized or charged to expense when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. | ||||||||||||||||||||||||
Financing costs. Financing costs related to the registration and sale of HEI common stock are recorded in shareholders’ equity. | ||||||||||||||||||||||||
HEI uses the straight-line method, which approximates the effective interest method, to amortize the long-term debt financing costs of the holding company over the term of the related debt. | ||||||||||||||||||||||||
The Utilities use the straight-line method, which approximates the effective interest method, to amortize long-term debt financing costs and premiums or discounts over the term of the related debt. Unamortized financing costs and premiums or discounts on the Utilities' long-term debt retired prior to maturity are classified as regulatory assets (costs and premiums) or liabilities (discounts) and are amortized on a straight-line basis over the remaining original term of the retired debt. The method and periods for amortizing financing costs, premiums and discounts, including the treatment of these items when long-term debt is retired prior to maturity, have been established by the PUC as part of the rate-making process. | ||||||||||||||||||||||||
HEI and the Utilities use the straight-line method to amortize the fees and related costs paid to secure a firm commitment under their line-of-credit arrangements. | ||||||||||||||||||||||||
Income taxes. Deferred income tax assets and liabilities are established for the temporary differences between the financial reporting bases and the tax bases of the Company’s and the Utilities' assets and liabilities at federal and state tax rates expected to be in effect when such deferred tax assets or liabilities are realized or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. | ||||||||||||||||||||||||
The Company recognizes investment tax credits as a reduction of income tax expense in the period the assets giving rise to such credits are placed in service, except for the Utilities' investment tax credits, which are deferred and amortized over the estimated useful lives of the properties to which the credits relate, in accordance with Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” | ||||||||||||||||||||||||
The Utilities are included in the consolidated income tax returns of HEI. However, income tax expense has been computed for financial statement purposes as if the Utilities filed separate consolidated Hawaiian Electric income tax returns. | ||||||||||||||||||||||||
Governmental tax authorities could challenge a tax return position taken by management. If the Company’s position does not prevail, the Company’s results of operations and financial condition may be adversely affected as the related deferred or current income tax asset might be impaired and written down or an unanticipated tax liability might be incurred. | ||||||||||||||||||||||||
The Company and the Utilities use a “more-likely-than-not” recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. | ||||||||||||||||||||||||
Fair value measurements. Fair value estimates are estimates of 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 and the Utilities use their 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 or the Utilities 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 and the Utilities' 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 and the Utilities group their 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. | |||||||||||||||||||||||
Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. | ||||||||||||||||||||||||
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include mortgage servicing rights accounted for by the amortization method, loan impairments for certain loans, goodwill and asset retirement obligations (AROs). | ||||||||||||||||||||||||
Earnings per share (HEI only). Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation and the equity forward transactions are added to the denominator. HEI uses the two-class method of computing EPS as restricted stock grants include non-forfeitable rights to dividends and are participating securities. | ||||||||||||||||||||||||
Under the two-class method, HEI's EPS was comprised as follows for both participating securities and unrestricted common stock: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Distributed earnings | $ | 1.24 | $ | 1.24 | $ | 1.24 | $ | 1.24 | $ | 1.24 | $ | 1.24 | ||||||||||||
Undistributed earnings | 0.41 | 0.4 | 0.39 | 0.38 | 0.19 | 0.18 | ||||||||||||||||||
$ | 1.65 | $ | 1.64 | $ | 1.63 | $ | 1.62 | $ | 1.43 | $ | 1.42 | |||||||||||||
As of December 31, 2014 there were no shares that were antidilutive. As of December 31, 2013 and December 31, 2012, the antidilutive effect of stock appreciation rights (SARs) on 102,000 shares of HEI common stock (for which the exercise prices were greater than the closing market prices of HEI’s common stock on such dates), was not included in the computation of diluted EPS. | ||||||||||||||||||||||||
Share-based compensation. The Company and the Utilities apply the fair value based method of accounting to account for its stock compensation, including the use of a forfeiture assumption. See Note 11. | ||||||||||||||||||||||||
Impairment of long-lived assets and long-lived assets to be disposed of. The Company and the Utilities review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
The Company and the Utilities retrospectively adopted ASU No. 2013-04 in the first quarter of 2014 and it did not have a material impact on the Company’s or the Utilities' results of operations, financial condition or liquidity. | ||||||||||||||||||||||||
Unrecognized tax benefits (UTBs). 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 requires the netting of UTBs against a deferred tax asset for a loss or other tax carryforwards that would apply in settlement of the uncertain tax positions. UTBs should be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. | ||||||||||||||||||||||||
The Company and the Utilities prospectively adopted ASU No. 2013-11 in the first quarter of 2014 and it did not have a material impact on the Company’s or the Utilities' results of operations, financial condition or liquidity. | ||||||||||||||||||||||||
Investments in Qualified Affordable Housing Projects. In January 2014, the FASB issued ASU No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects,” which permits entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendments also require additional disclosures. | ||||||||||||||||||||||||
The Company has not determined whether it will adopt ASU No. 2014-01 in the first quarter of 2015. | ||||||||||||||||||||||||
Reclassification of loans upon foreclosure. In January 2014, the FASB issued ASU No. 2014-04, "Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” which clarifies when an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer loan. A creditor is considered to have received physical possession of residential real estate property collateralizing a consumer loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through a deed in lieu of foreclosure or through a similar legal agreement. The amendment also requires additional disclosures. | ||||||||||||||||||||||||
The Company plans to prospectively adopt ASU No. 2014-04 in the first quarter of 2015 and does not expect the adoption to have a material impact on the Company’s results of operations, financial condition or liquidity. | ||||||||||||||||||||||||
Revenues from contracts. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: (Topic 606).” The core principle of the guidance in ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract/s with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies a performance obligation. | ||||||||||||||||||||||||
The Company plans to adopt ASU No. 2014-09 in the first quarter of 2017, but has not determined the method of adoption (full or modified retrospective application) nor the impact of adoption on its results of operations, financial condition or liquidity. | ||||||||||||||||||||||||
Repurchase agreements. In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure,” which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The ASU requires a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The ASU also requires expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. | ||||||||||||||||||||||||
The Company plans to adopt ASU No. 2014-11 in the first quarter of 2015 and does not expect the adoption to have a material impact on the Company's results of operations, financial condition or liquidity. | ||||||||||||||||||||||||
Reclassifications. Hawaiian Electric changed its consolidated statements of income for each quarter in 2013 from a utility presentation to a commercial company presentation, under which all operating revenues and expenses (including non-regulated revenues and expenses) are included in the determination of operating income. Additionally, income tax expense, which was previously included partially in operating expenses and partially in other income (deductions), is now entirely presented directly above net income in income taxes and includes income taxes related to non-regulated revenues and expenses. On HEI’s consolidated balance sheet as of December 31, 2013, non-utility plant, net, amounting to $7 million was reclassified from “Other” assets to “Plant and equipment” (including related amounts of accumulated depreciation). These and other reclassifications made to prior years’ financial statements to conform to the 2014 presentation did not affect previously reported results of operations. | ||||||||||||||||||||||||
Electric utility | ||||||||||||||||||||||||
Regulation by the Public Utilities Commission of the State of Hawaii (PUC). The Utilities are regulated by the PUC and account for the effects of regulation under FASB ASC Topic 980, “Regulated Operations.” As a result, the actions of regulators can affect the timing of recognition of revenues, expenses, assets and liabilities. Management believes the Utilities’ operations currently satisfy the ASC Topic 980 criteria. If events or circumstances should change so that those criteria are no longer satisfied, the Utilities expect that their regulatory assets, net of regulatory liabilities, would be charged to the statement of income in the period of discontinuance. | ||||||||||||||||||||||||
Accounts receivable. Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of probable credit losses in the Utilities existing accounts receivable. On a monthly basis, the Utilities adjust their allowance, with a corresponding charge (credit) on the statement of income, based on its historical write-off experience. Account balances are charged off against the allowance after collection efforts have been exhausted and the potential for recovery is considered remote. At both December 31, 2014 and 2013, the allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable was $2 million. | ||||||||||||||||||||||||
Contributions in aid of construction. The Utilities receive contributions from customers for special construction requirements. As directed by the PUC, contributions are amortized on a straight-line basis over 30 to 55 years as an offset against depreciation expense. | ||||||||||||||||||||||||
Electric utility revenues. Electric utility revenues are based on rates authorized by the PUC. Prior to the implementation of decoupling, revenues related to the sale of energy were generally recorded when service was rendered or energy was delivered to customers and included revenues applicable to energy consumed in the accounting period but not yet billed to the customers. | ||||||||||||||||||||||||
The rate schedules of the Utilities include energy cost adjustment clauses (ECACs) under which electric rates are adjusted for changes in the weighted-average price paid for fuel oil and certain components of purchased power, and the relative amounts of company-generated power and purchased power. The rate schedules also include purchased power adjustment clauses (PPACs) under which the remaining purchase power expenses are recovered through surcharge mechanisms. The amounts collected through the ECACs and PPACs are required to be reconciled quarterly. | ||||||||||||||||||||||||
Upon the implementation of decoupling (Hawaiian Electric on March 1, 2011, Hawaii Electric Light on April 9, 2012 and Maui Electric on May 4, 2012), the Utilities: (1) recognize monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kilowatthour sales, (2) recognize a revenue escalation component via a rate adjustment mechanism (RAM) for certain operation and maintenance (O&M) expenses and rate base changes and (3) recognize (when applicable) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility’s ratemaking return on average common equity (ROACE) exceeds the ROACE allowed in its most recent rate case. | ||||||||||||||||||||||||
The Utilities’ revenues include amounts for various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the year the related revenues are recognized. However, the Utilities’ 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 2014, 2013 and 2012, the Utilities included approximately $267 million, $266 million and $280 million, respectively, of revenue taxes in “revenues” and in “taxes, other than income taxes” expense. | ||||||||||||||||||||||||
Power purchase agreements. If a power purchase agreement (PPA) falls within the scope of ASC Topic 840, “Leases,” and results in the classification of the agreement as a capital lease, the Utilities would recognize a capital asset and a lease obligation. Currently, none of the PPAs are required to be recorded as a capital lease. | ||||||||||||||||||||||||
The Utilities evaluate PPAs to determine if the PPAs are VIEs, if the Utilities are primary beneficiaries and if consolidation is required. See Note 6. | ||||||||||||||||||||||||
Repairs and maintenance costs. Repairs and maintenance costs for overhauls of generating units are generally expensed as they are incurred. | ||||||||||||||||||||||||
Allowance for funds used during construction (AFUDC). AFUDC is an accounting practice whereby the costs of debt and equity funds used to finance plant construction are credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. | ||||||||||||||||||||||||
The weighted-average AFUDC rate was 7.7% in 2014, 7.6% in 2013 and 7.6% in 2012, and reflected quarterly compounding. | ||||||||||||||||||||||||
Bank (HEI only) | ||||||||||||||||||||||||
Investment securities. Investments in debt and equity securities are classified as held-to-maturity (HTM), trading or available-for-sale (AFS). ASB determines the appropriate classification at the time of purchase. Debt and equity securities that ASB intends to and has the ability to hold to maturity are classified as HTM securities and reported at cost. Marketable debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. Marketable debt and equity securities not classified as either HTM or trading securities are classified as AFS and reported at fair value. Unrealized gains and losses, for AFS securities deemed other-than-temporary impairment (OTTI), not related to credit losses, are excluded from earnings and reported on a net basis in accumulated other comprehensive income (AOCI) until realized. | ||||||||||||||||||||||||
Interest income is recorded on an accrual basis. Discounts and premiums on securities are accreted or amortized into interest income over the remaining lives of the securities, adjusted for actual portfolio prepayments for investment securities or based on changes in anticipated prepayments for mortgage-related securities, using the interest method. The specific identification method is used in determining realized gains and losses on the sales of securities. ASB uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics and historic prepayment behavior of each security. | ||||||||||||||||||||||||
For securities that are not trading securities, individual securities are assessed for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. A security is impaired if the fair value of the security is less than its carrying value at the financial statement date. When a security is impaired, ASB determines whether this impairment is temporary or other-than-temporary. If ASB does not expect to recover the entire amortized cost basis of the security, an OTTI exists. If ASB intends to sell the security, or will more likely than not be required to sell the security before recovery of its amortized cost, the OTTI must be recognized in earnings. If ASB does not intend to sell the security, and it is not more likely than not that ASB will be required to sell the security before recovery of its amortized cost, the OTTI must be separated into the amount representing the credit loss and the amount related to all other factors. The amount of OTTI related to the credit loss is recognized in earnings, while the remaining OTTI is recognized in AOCI. | ||||||||||||||||||||||||
Stock in Federal Home Loan Bank (FHLB) of Seattle is carried at cost and is reviewed at least periodically for impairment, with valuation adjustments recognized in noninterest income. | ||||||||||||||||||||||||
Loans receivable. ASB carries loans receivable at amortized cost less the allowance for loan losses, loan origination fees (net of direct loan origination costs), commitment fees and purchase premiums and discounts. Interest on loans is credited to income as it is earned. Discounts and premiums are accreted or amortized over the life of the loans using the interest method. | ||||||||||||||||||||||||
Loan origination fees (net of direct loan origination costs) are deferred and recognized as an adjustment in yield over the life of the loan using the interest method or taken into income when the loan is paid off or sold. Nonrefundable commitment fees (net of direct loan origination costs, if applicable) received for commitments to originate or purchase loans are deferred and, if the commitment is exercised, recognized as an adjustment of yield over the life of the loan using the interest method. Nonrefundable commitment fees received for which the commitment expires unexercised are recognized as income upon expiration of the commitment. | ||||||||||||||||||||||||
Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. | ||||||||||||||||||||||||
Allowance for loan losses. ASB maintains an allowance for loan losses that it believes is adequate to absorb losses inherent in its loan portfolio. The level of allowance for loan losses is based on a continuing assessment of existing risks in the loan portfolio, historical loss experience, changes in collateral values and current conditions (e.g., economic conditions, real estate market conditions and interest rate environment). The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors primarily derived from actual historical default and loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Adverse changes in any of these factors could result in higher charge-offs and provision for loan losses. | ||||||||||||||||||||||||
ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for loan losses. Commercial and commercial real estate loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Loans are rated based on the degree of risk at origination and periodically thereafter, as appropriate. Values are applied separately to the probability of default (borrower risk) and loss given default (transaction risk). ASB’s credit review department performs an evaluation of these loan portfolios to ensure compliance with the internal risk rating system and timeliness of rating changes. Non-homogeneous loans are categorized into the regulatory asset quality classifications-Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. For loans classified as substandard, an analysis is done to determine if the loan is impaired. A loan is deemed impaired when it is probable that ASB will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is deemed impaired, ASB applies a valuation methodology to determine whether there is an impairment shortfall. The measurement of impairment may be based on (i) the present value of the expected future cash flows of the impaired loan discounted at the loan’s original effective interest rate, (ii) the observable market price of the impaired loan, or (iii) the fair value of the collateral, net of costs to sell. For all loans collateralized by real estate whose repayment is dependent on the sale of the underlying collateral property, ASB measures impairment by utilizing the fair value of the collateral, net of costs to sell; for other loans that are not considered collateral dependent, generally the discounted cash flow method is used to measure impairment. For loans collateralized by real estate that are classified as troubled debt restructured loans, the present value of the expected future cash flows of the loans may also be used to measure impairment as these loans are expected to perform according to their restructured terms. Impairments are charged to the provision for loan losses and included in the allowance for loan losses. However, confirmed losses (uncollectible) are charged off, with the loan written down by the amount of the confirmed loss. | ||||||||||||||||||||||||
Residential, consumer and credit scored business loans are considered homogeneous loans, which are typically underwritten based on common, uniform standards, and are generally classified as to the level of loss exposure based on delinquency status. The homogeneous loan portfolios are stratified into individual products with common risk characteristics and segmented into various secured and unsecured loan product types. For the homogeneous portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. ASB does supplement performance data with an 11-risk rating retail credit model that assigns a probability of default to each borrower based primarily on the borrower's current Fair Isaac Corporation (FICO) score and for the home equity line of credit (HELOC) and unsecured consumer products, the bankruptcy score (BK). Current FICO and BK data is purchased and appended to all homogeneous loans on a quarterly basis and used to estimate the borrower’s probability of default and the loss given default. | ||||||||||||||||||||||||
ASB also considers the following qualitative factors for all loans in estimating the allowance for loan losses: | ||||||||||||||||||||||||
• | changes in lending policies and procedures; | |||||||||||||||||||||||
• | changes in economic and business conditions and developments that affect the collectability of the portfolio; | |||||||||||||||||||||||
• | changes in the nature, volume and terms of the loan portfolio; | |||||||||||||||||||||||
• | changes in lending management and other relevant staff; | |||||||||||||||||||||||
• | changes in loan quality (past due, non-accrual, classified loans); | |||||||||||||||||||||||
• | changes in the quality of the loan review system; | |||||||||||||||||||||||
• | changes in the value of underlying collateral; | |||||||||||||||||||||||
• | effect of, and changes in the level of, any concentrations of credit; and | |||||||||||||||||||||||
• | effect of other external and internal factors. | |||||||||||||||||||||||
ASB’s methodology for determining the allowance for loan losses was generally based on historic loss rates using various look-back periods. During the second quarter of 2014, ASB implemented enhancements to the loss rate calculation for estimating the allowance for loan losses that included several refinements to determining the probability of default and the loss given default for the various segments of the loan portfolio that are more statistically sound than those previously employed. The result is an estimated loss rate established for each borrower. ASB also updated its measurement of the loss emergence period in the calculation of the allowance for loan losses. The loss emergence period is broadly defined as the period that it takes, on average, for the lender to identify the specific borrower and amount of loss incurred by the bank for a loan that has suffered from a loss-causing event. In most cases, the loss emergence period was within a twelve month period; however, as credit quality and conditions improve, management has observed that the loss emergence period has extended and has incorporated this observed change in the estimate of the allowance for loan losses. Management believes these enhancements will improve the precision in estimating the allowance for loan losses. The enhancements did not have a material effect on the total allowance for loan losses or the provision for loan losses for 2014. The enhancements did result in the full allocation of the previously unallocated portion of the allowance for loan losses. | ||||||||||||||||||||||||
In conjunction with the above enhancement, management also adopted an enhanced risk rating system for monitoring and managing credit risk in the non-homogenous loan portfolios, that measures general creditworthiness at the borrower level. The numerical-based, risk rating “PD Model” takes into consideration fiscal year-end financial information of the borrower and identified financial attributes including retained earnings, operating cash flows, interest coverage, liquidity and leverage that demonstrate a strong correlation with default to assign default probabilities at the borrower level. In addition, a loss given default (LGD) value is assigned to each loan to measure loss in the event of default based on loan specific features such as collateral that mitigates the amount of loss in the event of default. Together the PD Model and LGD construct provide a more quantitative, data driven and consistent framework for measuring risk within the portfolio, on a loan by loan basis and for the ultimate collectability of each loan. | ||||||||||||||||||||||||
The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in accounts payable and other liabilities in the consolidated balance sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the allowance for loan losses, as discussed above. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the consolidated statements of income. | ||||||||||||||||||||||||
Management believes its allowance for loan losses adequately estimates actual loan losses that will ultimately be incurred. However, such estimates are based on currently available information and historical experience, and future adjustments may be required from time to time to the allowance for loan losses based on new information and changes that occur (e.g., due to changes in economic conditions, particularly in Hawaii). Actual losses could differ from management’s estimates, and these differences and subsequent adjustments could be material. | ||||||||||||||||||||||||
Nonperforming loans. Loans are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. A loan may be returned to accrual status if (i) principal and interest payments have been brought current and repayment of the remaining contractual principal and interest is expected to be made, (ii) the loan has otherwise become well-secured and collection efforts are reasonably expected to result in repayment of the debt, or (iii) the borrower has been making regularly scheduled payments in full for the prior six months and it is reasonably assured that the loan will be brought fully current within a reasonable period. Cash receipts on nonaccruing loans are generally applied to reduce the unpaid principal balance. | ||||||||||||||||||||||||
Loans considered to be uncollectible are charged-off against the allowance for loan losses. The amount and timing of charge-offs on loans includes consideration of the loan type, length of delinquency, insufficiency of collateral value, lien priority and the overall financial condition of the borrower. Recoveries on loans previously charged-off are credited back to the allowance for loan losses. Loans that have been charged-off against the allowance for loan losses are periodically monitored to evaluate whether further adjustments to the allowance are necessary. Loans in the commercial and commercial real estate portfolio are charged-off when the loan is risk-rated “Doubtful” or “Loss”. The loan or a portion thereof is determined to be uncollectible after considering the borrower’s overall financial condition and collateral deficiency. A loan is considered uncollectible when: (a) the borrower is delinquent in principal or interest 90 days or more; (b) significant improvement in the borrower’s repayment capacity is doubtful; and/or (c) collateral value is insufficient to cover outstanding indebtedness and no other viable assets exist. | ||||||||||||||||||||||||
Loans in the residential mortgage and home equity portfolios are charged-off when the loan or a portion thereof is determined to be uncollectible after considering the borrower’s overall financial condition and collateral deficiency. A loan is considered uncollectible when: (a) the borrower is delinquent in principal or interest 180 days or more; (b) it is probable that collateral value is insufficient to cover outstanding indebtedness and no other viable assets exist; (c) notification of the borrower’s bankruptcy is received; or (d) in cases where ASB is in a subordinate position to other debt, the senior lien holder has foreclosed and ASB's the junior lien is extinguished. | ||||||||||||||||||||||||
Other consumer loans are generally charged-off when the balance becomes 120 days delinquent. | ||||||||||||||||||||||||
Loans modified in a troubled debt restructuring. Loans are considered to have been modified in a troubled debt restructuring (TDR) when, due to a borrower’s financial difficulties, ASB makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include interest rate reductions, interest only payments for an extended period of time, protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place, and other actions intended to minimize economic loss and to provide alternatives to foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status until the borrower has demonstrated sustained repayment performance for a period of six consecutive months. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, or there is reasonable doubt over the full collectability of principal and interest, the loan remains on nonaccrual status. | ||||||||||||||||||||||||
Real estate acquired in settlement of loans. ASB records real estate acquired in settlement of loans at fair value, less estimated selling expenses. ASB obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate acquired in settlement of loans. Subsequent declines in value are charged to expense through a valuation allowance. Costs related to holding real estate are charged to operations as incurred. | ||||||||||||||||||||||||
Goodwill. At December 31, 2014 and 2013, the amount of goodwill was $82.2 million. The goodwill is with respect to ASB and is the Company’s only intangible asset with an indefinite useful life and is tested for impairment annually at December 31 using data as of September 30. | ||||||||||||||||||||||||
FASB ASU No. 2011-8, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment”(ASU No. 2011-8) permits an entity to first assess qualitative factors (Step 0) to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform Step 1 of a two-step goodwill impairment test. An entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the first step of the goodwill impairment test. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount under ASU No. 2011-8, an entity shall assess relevant events and circumstances such as: | ||||||||||||||||||||||||
• | macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, or other developments in equity and credit markets; | |||||||||||||||||||||||
• | industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a change in the market for an entity’s products or services, or a regulatory or political development; | |||||||||||||||||||||||
• | cost factors that have a negative effect on earnings and cash flows; | |||||||||||||||||||||||
• | overall financial performance such as a decline in actual or planned revenues or earnings compared with actual and projected results of relevant prior periods; | |||||||||||||||||||||||
• | other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation; | |||||||||||||||||||||||
• | events affecting a reporting unit such as a change in the composition or carrying amount of its net assets; | |||||||||||||||||||||||
• | if applicable, a sustained decrease in share price (consider in both absolute terms and relative to peers). | |||||||||||||||||||||||
If, after assessing the totality of events or circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test under ASC Topic 350, "Intangibles-Goodwill and Other" (ASC 350), are unnecessary. We performed a Step 0 analysis and determined that it was not more likely than not that the fair value of the Company was less than its carrying value and a Step 1 goodwill impairment analysis was not considered necessary. The most recent Step 1 goodwill impairment analysis under ASC 350 was performed at December 31, 2013 and the estimated fair value of the Company exceeded its carrying value by 60%. For the three years ended December 31, 2014, there has been no impairment of goodwill. | ||||||||||||||||||||||||
Mortgage banking. Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. ASB is obligated to subsequently repurchase a loan if the purchaser discovers a standard representation or warranty violation such as noncompliance with eligibility requirements, customer fraud, or servicing violations. This primarily occurs during a loan file review. | ||||||||||||||||||||||||
ASB recognizes a mortgage servicing asset when a mortgage loan is sold with servicing rights retained. This mortgage servicing right (MSR) is initially capitalized at its presumed fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. Mortgage servicing assets or liabilities are included as a component of gain on sale of loans. Under ASC Topic 860, “Transfers and Servicing,” we amortize the MSR in proportion to and over the period of estimated net servicing income and assess for impairment at each reporting date. | ||||||||||||||||||||||||
ASB's MSR is stratified based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. | ||||||||||||||||||||||||
Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in "Other income, net" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. | ||||||||||||||||||||||||
ASB compares the fair value of MSR to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and their own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of fair value. | ||||||||||||||||||||||||
Loan servicing fee income represents income earned for servicing mortgage loans owned by investors. It includes mortgage servicing fees and other ancillary servicing income, net of guaranty fees. Servicing fees are generally calculated on the outstanding principal balances of the loans serviced and are recorded as income when earned. | ||||||||||||||||||||||||
Tax Credit Investments. ASB invests in limited liability entities formed to operate qualifying affordable housing projects. | ||||||||||||||||||||||||
The affordable housing investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. As a limited partner, ASB has no significant influence over the operations. These investments are initially recorded at the initial capital contribution with a liability recognized for the commitment to contribute additional capital over the term of the investment. | ||||||||||||||||||||||||
Under the equity method of accounting, ASB recognized its share of the project's pre-tax operating losses in "Other expense" in the statements of income. | ||||||||||||||||||||||||
For these limited liability entities, ASB assesses whether it is the primary beneficiary of the limited liability entity, which is a variable interest entity (VIE). The primary beneficiary of a VIE is determined to be the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Generally, ASB, as a limited partner, is not deemed to be the primary beneficiary as it does not meet the power criterion, i.e., no power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and no direct ability to unilaterally remove the general partner. | ||||||||||||||||||||||||
All tax credit investments are evaluated for potential impairment at least annually, or more frequently, when events or conditions indicate that it is deemed probable that ASB will not recover its investment. Potential indicators of impairment might arise when there is evidence that some or all tax credits previously claimed would be recaptured, or that expected remaining credits would no longer be available to the limited liability entities. If an investment is determined to be impaired, it is written down to its estimated fair value and the new cost basis of the investment is not adjusted for subsequent recoveries in value. | ||||||||||||||||||||||||
At December 31, 2014 and 2013, the carrying amount of qualifying affordable housing investments was $32.5 million and $14.5 million, respectively, and included in other assets in the consolidated balance sheets. | ||||||||||||||||||||||||
ASB’s unfunded commitments to fund to its affordable housing investments were $14.8 million and $0.6 million as of December 31, 2014 and 2013, respectively. These unfunded commitments are unconditional and legally binding and are recorded in accounts payable and other liabilities with an increase in other assets in the consolidated balance sheets. |
Proposed_merger
Proposed merger | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Proposed merger | |
2 · Proposed Merger | |
On December 3, 2014, HEI, NextEra Energy, Inc., a Florida corporation (NEE), NEE Acquisition Sub I, LLC, a Delaware limited liability company and a wholly owned subsidiary of NEE (Merger Sub II) and NEE Acquisition Sub II, Inc., a Delaware corporation and a wholly owned subsidiary of NEE (Merger Sub I), entered into an Agreement and Plan of Merger (the Merger Agreement). The Merger Agreement provides for Merger Sub I to merge with and into HEI (the Initial Merger), with HEI surviving, and then for HEI to merge with and into Merger Sub II, with Merger Sub II surviving as a wholly owned subsidiary of NEE (the Merger). The Merger is intended to qualify as a tax-free reorganization under the Internal Revenue Code of 1986, as amended, and be tax-free to HEI shareholders. | |
Pursuant to the Merger Agreement, upon the closing of the Merger, each issued and outstanding share of HEI common stock will automatically be converted into the right to receive 0.2413 shares of common stock of NEE (the Exchange Ratio). No adjustment to the Exchange Ratio is made in the Merger Agreement for any changes in the market prices of either HEI or NEE common stock between December 3, 2014 and the closing of the Merger. | |
The Merger Agreement contemplates that, immediately prior to the closing of the Merger, HEI will distribute to its shareholders all of the issued and outstanding shares of common stock of ASB Hawaii, the direct parent company of ASB (such distribution referred to as the Spin-Off), with ASB Hawaii becoming a new public company. In addition, the Merger Agreement contemplates that, immediately prior to the closing of the Merger, HEI will pay its shareholders a special dividend of $0.50 per share. | |
The closing of the Merger is subject to various conditions, including, among others, (i) the approval of holders of 75% of the outstanding shares of HEI common stock, (ii) effectiveness of the registration statement for the NEE common stock to be issued in the Initial Merger and the listing of such shares on the New York Stock Exchange, (iii) expiration or termination of the applicable Hart-Scott-Rodino Act waiting period, (iv) receipt of all required regulatory approvals from, among others, the Federal Energy Regulatory Commission (FERC), the Federal Communications Commission and the Hawaii Public Utilities Commission, (v) the absence of any law or judgment in effect or pending in which a governmental entity has imposed or is seeking to impose a legal restraint that would prevent or make illegal the closing of the Merger, (vi) the absence of any material adverse effect with respect to either HEI or NEE, (vii) subject to certain exceptions, the accuracy of the representations and warranties of, and compliance with covenants by, each of the parties to the Merger Agreement, (viii) receipt by each of HEI and NEE of a tax opinion of its counsel regarding the tax treatment of the transactions contemplated by the Merger Agreement, (ix) effectiveness of the ASB Hawaii registration statement necessary to consummate the Spin-Off, and (x) the determination by each of HEI and NEE that, upon completion of the Spin-Off, HEI will no longer be a savings and loan holding company or be deemed to control ASB for purposes of the Home Owners' Loan Act. The Spin-Off will be subject to various conditions, including, among others, the approval of the Federal Reserve Board (FRB). | |
The Merger Agreement contains customary representations, warranties and covenants of HEI and NEE. | |
HEI is also subject to a “no shop” restriction that limits its ability to solicit alternative acquisition proposals, provide information or engage in discussion with third parties, except under limited circumstances to permit HEI’s board of directors to comply with its fiduciary duties. | |
The Merger Agreement contains certain termination rights for both HEI and NEE, including the right of either party to terminate the Merger Agreement if the Merger has not been consummated by December 3, 2015 (subject to a 6-month extension if required to obtain necessary regulatory approvals), and further provides that upon termination of the Merger Agreement under specified circumstances, HEI or NEE, as the case may be, would be required to pay the other party a termination fee of $90 million and reimburse the other party for up to $5 million of its documented out-of-pocket expenses incurred in connection with the Merger Agreement. | |
PUC application. In January 2015, NEE and Hawaiian Electric filed an application with the PUC requesting approval of the proposed Merger of Hawaiian Electric. The application also requests modification of certain conditions agreed to by HEI and the PUC in 1982 for the merger and corporate restructuring of Hawaiian Electric, and confirmation that with approval of the Merger Agreement, the recommendations in the 1995 Dennis Thomas Report (resulting from a proceeding to review the relationship between HEI and Hawaiian Electric and any impact of HEI’s then diversified activities on the Utilities) will no longer be applicable. The application includes a commitment that, for at least four years following the completion of the transaction, Hawaiian Electric will not submit any applications seeking a general base rate increase and will forego recovery of the incremental operations and maintenance rate adjustment under decoupling during that period, which amounts to approximately $60 million in cumulative savings for customers, subject to certain exceptions and conditions, including that the following remain in effect: the RBA tariff provisions, the Rate Base RAM, the Renewable Energy Infrastructure Program, and Renewable Energy Infrastructure Surcharge, the IRP/DSM Recovery tariff provisions, the ECAC tariff provisions, the PPA tariff provision and the Pension and OPEB tracker mechanism. Various parties, including governmental, environmental and commercial interests, have moved to intervene in the proceeding. A PUC decision on the intervention motions and establishing a procedural schedule for the docket is pending. | |
Other requests. On January 29, 2015, HEI submitted its application to the FERC requesting all necessary authorization to consummate the transactions contemplated by the Merger Agreement. On February 1, 2015, HEI submitted a letter to FRB requesting deregistration as a Savings & Loan Holding Company (SLHC). | |
Pending litigation and other matters. | |
Litigation. HEI and its subsidiaries are subject to various legal proceedings that arise from time to time. Some of these proceedings may seek relief or damages in amounts that may be substantial. Because these proceedings are complex, many years may pass before they are resolved, and it is not feasible to predict their outcomes. Some of these proceedings involve claims HEI and Hawaiian Electric believe may be covered by insurance, and HEI and Hawaiian Electric have advised their insurance carriers accordingly. | |
Since the December 3, 2014 announcement of the merger agreement, eight purported class action complaints were filed in the Circuit Court of the First Circuit for the State of Hawaii by alleged stockholders of HEI against HEI, Hawaiian Electric (in one complaint), the individual directors of HEI, NEE and NEE's acquisition subsidiaries. The lawsuits are captioned as follows: Miller v. Hawaiian Electric Industries, Inc., et al., Case No. 14-1-2531-12 KTN (December 15, 2014) (the Miller Action); Walsh v. Hawaiian Electric Industries, Inc., et al., Case No. 14-1-2541-12 JHC (December 15, 2014) (the Walsh Action); Stein v. Hawaiian Electric Industries, Inc., et al., Case No. 14-1-2555-12 KTN (December 17, 2014) (the Stein Action); Brown v. Hawaiian Electric Industries, Inc., et al., Case No. 14-1-2643-12 RAN (December 30, 2014) (the Brown Action); Cohn v. Hawaiian Electric Industries, Inc., et al., Case No. 14-1-2642-12 KTN (December 30, 2014) (the Cohn State Action); Guenther v. Watanabe, et al., Case No. 15-1-003-01 ECN (January 2, 2015) (the Guenther Action); Hudson v. Hawaiian Electric Industries, Inc., et al., Case No. 15-1-0013-01 JHC (January 5, 2015) (the Hudson Action); Grieco v. Hawaiian Electric Industries, Inc., et al., Case No. 15-1-0094-01 KKS (January 21, 2015) (the Grieco Action). On January 12, 2015, plaintiffs in the Miller Action, the Walsh Action, the Stein Action, the Brown Action, the Guenther Action, and the Hudson Action filed a motion to consolidate their actions and to appoint co-lead counsel. On February 13, 2015, the Court held a hearing on this motion. On January 23, 2015, the Cohn State Action was voluntarily dismissed. Thereafter, the same alleged stockholder plaintiff filed a purported class action complaint in the United States District Court for the District of Hawaii against HEI, the individual directors of HEI, NEE and NEE's acquisition subsidiaries. The lawsuit is captioned as Cohn v. Hawaiian Electric Industries, Inc. et al., 15-cv-00029-JMS-KSC (January 27, 2015) (the Cohn Federal Action). | |
All eight actions allege, among other things, that members of HEI's Board breached their fiduciary duties in connection with the proposed transaction, and that the Merger Agreement involves an unfair price, was the product of an inadequate sales process, and contains unreasonable deal protection devices that purportedly preclude competing offers. The complaints further allege that HEI, NEE and/or its acquisition subsidiaries aided and abetted the purported breaches of fiduciary duty. The plaintiffs in these lawsuits seek, among other things, (i) a declaration that the Merger Agreement was entered into in breach of HEI's directors' fiduciary duties, (ii) an injunction enjoining the HEI Board from consummating the Merger, (iii) an order directing the HEI Board to exercise their duties to obtain a transaction which is in the best interests of HEI's stockholders, (iv) a rescission of the Merger to the extent that it is consummated, and/or (v) damages suffered as a result of the defendants' alleged actions. In addition, the Cohn Federal Action alleges that the HEI board of directors violated its fiduciary duties and federal securities laws by omitting material facts from the Registration Statement on Form S-4. | |
HEI and Hawaiian Electric believe the allegations of the complaints are without merit and intends to defend these lawsuits vigorously. | |
Other matters. In January 2015, various clean energy and environmental groups filed a motion and applications with the PUC to delay consideration of the Company’s proposed Merger pending its decision on the Power Supply Improvement Plans, Distributed Generation Interconnection Plan, Integrated Demand Response Portfolio Plan, decoupling, and issues regarding customer-based distributed energy resources. The Utilities and NEE filed oppositions to these applications with the PUC and asked for their dismissal. |
Segment_financial_information
Segment financial information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment financial information | ||||||||||||||||
3 · Segment financial information | ||||||||||||||||
The electric utility and bank segments are strategic business units of the Company that offer different products and services and operate in different regulatory environments. The accounting policies of the segments are the same as those described for the Company in the summary of significant accounting policies, except as otherwise indicated and except that federal and state income taxes for each segment are calculated on a “stand-alone” basis. HEI evaluates segment performance based on net income. Each segment accounts for intersegment sales and transfers as if the sales and transfers were to third parties, that is, at current market prices. Intersegment revenues consist primarily of interest, rent and preferred stock dividends. | ||||||||||||||||
Electric utility | ||||||||||||||||
Hawaiian Electric and its wholly-owned operating subsidiaries, Hawaii Electric Light and Maui Electric, are public electric utilities in the business of generating, purchasing, transmitting, distributing and selling electric energy on all major islands in Hawaii other than Kauai, and are regulated by the PUC. The Utilities have been aggregated into the electric utility segment primarily because all three entities: (1) are involved in the business of supplying electric energy in the same geographical location (i.e., the State of Hawaii), (2) have similar production processes that include electric generators (e.g., conventional oil-fired steam units and combustion turbines), (3) serve similar customers within their franchise territories (e.g., residential, commercial and industrial customers), (4) use similar electric grids to distribute the energy to their customers, (5) are regulated by the PUC and undergo similar rate-making processes, (6) have similar economic characteristics, and (7) perform financial reporting oversight and management of the business at the consolidated level. Hawaiian Electric also owns the following nonregulated subsidiaries: Renewable Hawaii, Inc. (RHI), which was formed to invest in renewable energy projects; HECO Capital Trust III, which is a financing entity; and Uluwehiokama Biofuels Corp. (UBC), which was formed to own a new biodiesel refining plant to be built on the island of Maui, which project has been terminated. | ||||||||||||||||
Bank | ||||||||||||||||
ASB is a federally chartered savings bank providing a full range of banking services to individual and business customers through its branch system in Hawaii. ASB is subject to examination and comprehensive regulation by the Office of the Comptroller of the Currency (OCC) (previously by the Department of Treasury, Office of Thrift Supervision (OTS)) and the Federal Deposit Insurance Corporation (FDIC), and is subject to reserve requirements established by the Board of Governors of the Federal Reserve System. | ||||||||||||||||
Other | ||||||||||||||||
“Other” includes amounts for the holding companies (HEI and ASB Hawaii, Inc.), other subsidiaries not qualifying as reportable segments and intercompany eliminations. | ||||||||||||||||
Segment financial information was as follows: | ||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | ||||||||||||
2014 | ||||||||||||||||
Revenues from external customers | $ | 2,987,299 | $ | 252,497 | $ | (254 | ) | $ | 3,239,542 | |||||||
Intersegment revenues (eliminations) | 24 | — | (24 | ) | — | |||||||||||
Revenues | 2,987,323 | 252,497 | (278 | ) | 3,239,542 | |||||||||||
Depreciation and amortization | 174,478 | 5,399 | 1,361 | 181,238 | ||||||||||||
Interest expense, net | 64,757 | 10,808 | 11,595 | 87,160 | ||||||||||||
Income (loss) before income taxes | 220,361 | 75,619 | (34,058 | ) | 261,922 | |||||||||||
Income taxes (benefit) | 80,725 | 24,127 | (13,140 | ) | 91,712 | |||||||||||
Net income (loss) | 139,636 | 51,492 | (20,918 | ) | 170,210 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | |||||||||||
Net income (loss) for common stock | 137,641 | 51,492 | (20,813 | ) | 168,320 | |||||||||||
Capital expenditures | 311,574 | 28,073 | 74 | 339,721 | ||||||||||||
Assets (at December 31, 2014) | 5,590,457 | 5,565,241 | 28,463 | 11,184,161 | ||||||||||||
2013 | ||||||||||||||||
Revenues from external customers | $ | 2,980,139 | $ | 258,147 | $ | 184 | $ | 3,238,470 | ||||||||
Intersegment revenues (eliminations) | 33 | — | (33 | ) | — | |||||||||||
Revenues | 2,980,172 | 258,147 | 151 | 3,238,470 | ||||||||||||
Depreciation and amortization | 159,102 | 4,230 | 1,396 | 164,728 | ||||||||||||
Interest expense, net | 59,279 | 10,077 | 16,200 | 85,556 | ||||||||||||
Income (loss) before income taxes | 194,041 | 87,059 | (33,353 | ) | 247,747 | |||||||||||
Income taxes (benefit) | 69,117 | 29,525 | (14,301 | ) | 84,341 | |||||||||||
Net income (loss) | 124,924 | 57,534 | (19,052 | ) | 163,406 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | |||||||||||
Net income (loss) for common stock | 122,929 | 57,534 | (18,947 | ) | 161,516 | |||||||||||
Capital expenditures | 342,485 | 11,193 | 201 | 353,879 | ||||||||||||
Assets (at December 31, 2013) | 5,087,129 | 5,243,824 | 9,091 | 10,340,044 | ||||||||||||
2012 | ||||||||||||||||
Revenues from external customers | $ | 3,109,353 | $ | 265,539 | $ | 103 | $ | 3,374,995 | ||||||||
Intersegment revenues (eliminations) | 86 | — | (86 | ) | — | |||||||||||
Revenues | 3,109,439 | 265,539 | 17 | 3,374,995 | ||||||||||||
Depreciation and amortization | 151,496 | 5,334 | 1,517 | 158,347 | ||||||||||||
Interest expense, net | 62,055 | 11,292 | 16,096 | 89,443 | ||||||||||||
Income (loss) before income taxes | 162,319 | 89,021 | (33,933 | ) | 217,407 | |||||||||||
Income taxes (benefit) | 61,048 | 30,384 | (14,573 | ) | 76,859 | |||||||||||
Net income (loss) | 101,271 | 58,637 | (19,360 | ) | 140,548 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | |||||||||||
Net income (loss) for common stock | 99,276 | 58,637 | (19,255 | ) | 138,658 | |||||||||||
Capital expenditures | 310,091 | 14,979 | 410 | 325,480 | ||||||||||||
Assets (at December 31, 2012) | 5,108,793 | 5,041,673 | (1,334 | ) | 10,149,132 | |||||||||||
Intercompany electricity sales of the 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 the Utilities, 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 Utilities 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_segment
Electric utility segment | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Electric utility subsidiary | |||||||||||||||||||||
Electric utility segment | |||||||||||||||||||||
4 · Electric utility segment | |||||||||||||||||||||
Regulatory assets and liabilities. In accordance with ASC Topic 980, “Regulated Operations,” the Utilities’ financial statements reflect assets, liabilities, revenues and expenses based on current cost-based rate-making regulations. Their continued accounting under ASC Topic 980 generally requires that rates are established by an independent, third-party regulator; rates are designed to recover the costs of providing service; and it is reasonable to assume that rates can be charged to and collected from customers. Management believes the Utilities’ operations currently satisfy the ASC Topic 980 criteria. If events or circumstances should change so that those criteria are no longer satisfied, the Utilities expect that the regulatory assets, net of regulatory liabilities, would be charged to the statement of income in the period of discontinuance, which may result in a material adverse effect on the Company’s and the Utilities' financial condition, results of operations and/or liquidity. | |||||||||||||||||||||
Regulatory assets represent deferred costs expected to be fully recovered through rates over PUC-authorized periods. Generally, the Utilities do not earn a return on their regulatory assets; however, they have been allowed to recover interest on certain regulatory assets and to include certain regulatory assets in rate base. Regulatory liabilities represent amounts included in rates and collected from ratepayers for costs expected to be incurred in the future. For example, the regulatory liability for cost of removal in excess of salvage value represents amounts that have been collected from ratepayers for costs that are expected to be incurred in the future to retire utility plant. Generally, the Utilities include regulatory liabilities in rate base or are required to apply interest to certain regulatory liabilities. In the table below, noted in parentheses are the original PUC authorized amortization or recovery periods and, if different, the remaining amortization or recovery periods as of December 31, 2014 are noted. | |||||||||||||||||||||
Regulatory assets were as follows: | |||||||||||||||||||||
December 31 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses) | $ | 683,243 | $ | 350,821 | |||||||||||||||||
Income taxes, net (1 to 55 years) | 86,836 | 85,430 | |||||||||||||||||||
Decoupling revenue balancing account (1 to 2 years) | 80,183 | 90,386 | |||||||||||||||||||
Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) | 15,569 | 17,342 | |||||||||||||||||||
Vacation earned, but not yet taken (1 year) | 10,248 | 9,149 | |||||||||||||||||||
Postretirement benefits other than pensions (18 years; less than 1 year remaining) | 18 | 62 | |||||||||||||||||||
Other (1 to 50 years; 1 to 46 years remaining) | 29,167 | 22,734 | |||||||||||||||||||
$ | 905,264 | $ | 575,924 | ||||||||||||||||||
Included in: | |||||||||||||||||||||
Current assets | $ | 71,421 | $ | 69,738 | |||||||||||||||||
Long-term assets | 833,843 | 506,186 | |||||||||||||||||||
$ | 905,264 | $ | 575,924 | ||||||||||||||||||
Regulatory liabilities were as follows: | |||||||||||||||||||||
December 31 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of removal in excess of salvage value (1 to 60 years) | $ | 331,000 | $ | 315,164 | |||||||||||||||||
Retirement benefit plans (5 years beginning with respective utility’s next rate case) | 12,413 | 31,546 | |||||||||||||||||||
Other (5 years; 1 to 2 years remaining) | 1,436 | 2,589 | |||||||||||||||||||
$ | 344,849 | $ | 349,299 | ||||||||||||||||||
Included in: | |||||||||||||||||||||
Current liabilities | $ | 632 | $ | 1,916 | |||||||||||||||||
Long-term liabilities | 344,217 | 347,383 | |||||||||||||||||||
$ | 344,849 | $ | 349,299 | ||||||||||||||||||
The regulatory asset and liability relating to retirement benefit plans was recorded as a result of pension and OPEB tracking mechanisms adopted by the PUC in rate case decisions for the Utilities in 2007 (see Note 10). | |||||||||||||||||||||
Major customers. The Utilities received 12% ($350 million), 11% ($340 million) and 11% ($349 million) of their operating revenues from the sale of electricity to various federal government agencies in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Cumulative preferred stock. The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption: | |||||||||||||||||||||
31-Dec-14 | Voluntary | Redemption | |||||||||||||||||||
liquidation price | price | ||||||||||||||||||||
Series | |||||||||||||||||||||
C, D, E, H, J and K (Hawaiian Electric) | $ | 20 | $ | 21 | |||||||||||||||||
I (Hawaiian Electric) | 20 | 20 | |||||||||||||||||||
G (Hawaii Electric Light) | 100 | 100 | |||||||||||||||||||
H (Maui Electric) | 100 | 100 | |||||||||||||||||||
Hawaiian Electric is obligated to make dividend, redemption and liquidation payments on the preferred stock of each of its subsidiaries if the respective subsidiary is unable to make such payments, but this obligation is subordinated to Hawaiian Electric's obligation to make payments on its own preferred stock. | |||||||||||||||||||||
Related-party transactions. HEI charged the Utilities $7 million, $6.2 million and $6.1 million for general management and administrative services in 2014, 2013 and 2012, respectively. The amounts charged by HEI to its subsidiaries for services provided by HEI employees are allocated primarily on the basis of time expended in providing such services. | |||||||||||||||||||||
Hawaiian Electric’s short-term borrowings totaled nil at December 31, 2014 and 2013. The interest charged on short-term borrowings from HEI is based on the lower of HEI’s or Hawaiian Electric’s effective weighted average short-term external borrowing rate. If both HEI and Hawaiian Electric do not have short-term external borrowings, the interest is based on the average of the effective rate for 30-day dealer-placed commercial paper quoted by the Wall Street Journal plus 0.15%. | |||||||||||||||||||||
Borrowings among the Utilities are eliminated in consolidation. Interest charged by HEI to Hawaiian Electric was nil in each of 2014 and 2013 and de minimis in 2012. | |||||||||||||||||||||
Commitments and contingencies. | |||||||||||||||||||||
Fuel contracts. The Utilities have contractual agreements to purchase minimum quantities of fuel oil, diesel fuel and biodiesel for multi-year periods, some through October 2017. Fossil fuel prices are tied to the market prices of crude oil and petroleum products in the Far East and U.S. West Coast and the biodiesel price is tied to the market prices of animal fat feedstocks in the U.S. West Coast and U.S. Midwest. Based on the average price per barrel as of December 31, 2014, the estimated cost of minimum purchases under the fuel supply contracts is $0.4 billion in 2015, $0.3 billion in 2016 and $6.4 million in 2017. The actual cost of purchases in 2015 and future years could vary substantially from this estimate as a result of changes in market prices, quantities actually purchased and/or other factors. The Utilities purchased $1.1 billion, $1.1 billion and $1.3 billion of fuel under contractual agreements in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Hawaiian Electric and Chevron Products Company (Chevron), a division of Chevron USA, Inc., are parties to the Low Sulfur Fuel Oil Supply Contract (LSFO Contract) for the purchase/sale of low sulfur fuel oil (LSFO), which terminates on December 31, 2016 and may automatically renew for annual terms thereafter unless earlier terminated by either party. The PUC approved the recovery of costs incurred under this contract on April 30, 2013. | |||||||||||||||||||||
On August 27, 2014, Chevron and Hawaiian Electric entered into a first amendment of the LSFO Contract. The amendment reduces the price of fuel above certain volumes, allows for increases in the volume of fuel, and modifies the specification of certain petroleum products supplied under the contract. In addition, Chevron agreed to supply a blend of LSFO and diesel as soon as January 2016 (for supply through the end of the contract term, December 31, 2016) to help Hawaiian Electric meet more stringent EPA air emission requirements known as Mercury and Air Toxics Standards. The amendment is subject to approval of the PUC, and can be terminated if approval is not received by April 15, 2015. | |||||||||||||||||||||
Hawaiian Electric and Hawaii Independent Energy, LLC, (HIE) a wholly owned subsidiary of Par Petroleum Corporation of Houston Texas, were parties to an amended LSFO supply contract (assigned to HIE pursuant to its purchase of the Hawaii refinery and related assets of Tesoro Hawaii Corp), which ran through December 31, 2014, with a provision that it would automatically renew for annual terms thereafter unless earlier terminated by either party. On August 28, 2014, Hawaiian Electric provided notice to HIE that it would not renew the LSFO supply contract. | |||||||||||||||||||||
The Utilities are parties to amended contracts for the supply of industrial fuel oil and diesel fuels with Chevron and HIE, respectively, which end December 31, 2015. Both agreements may be automatically renewed for annual terms thereafter unless earlier terminated by either of the respective parties. In August 2014, Chevron and the Utilities entered into a third amendment to the Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract, which amendment extended the term of the contract through December 31, 2016 and provided for automatic renewal for annual terms thereafter unless earlier terminated by either party. In February 2015, Hawaiian Electric executed a similar extension, through December 31, 2016, of the corresponding Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract with HIE. | |||||||||||||||||||||
The energy charge for energy purchased from Kalaeloa Partners, L.P. (Kalaeloa) under Hawaiian Electric’s PPA with Kalaeloa is based, in part, on the price Kalaeloa pays HIE for LSFO under a Facility Fuel Supply Contract (fuel contract) between them (assigned to HIE upon its purchase of the assets of Tesoro Hawaii Corp. as described above). The term of the fuel contract between Kalaeloa and HIE ends May 31, 2016 and may be extended for terms thereafter unless terminated by one of the parties. | |||||||||||||||||||||
The costs incurred under the Utilities’ fuel contracts are included in their respective ECACs, to the extent such costs are not recovered through the Utilities’ base rates. | |||||||||||||||||||||
Power purchase agreements. As of December 31, 2014, the Utilities had seven firm capacity PPAs for a total of 575 megawatts (MW) of firm capacity. Purchases from these seven independent power producers (IPPs) and all other IPPs totaled $0.7 billion for each of 2014, 2013 and 2012. The PUC allows rate recovery for energy and firm capacity payments to IPPs under these agreements. Assuming that each of the agreements remains in place for its current term (and as amended) and the minimum availability criteria in the PPAs are met, aggregate minimum fixed capacity charges are expected to be approximately $0.1 billion per year for 2015 through 2019 and a total of $0.5 billion in the period from 2020 through 2035. | |||||||||||||||||||||
In general, the Utilities base their payments under the PPAs upon available capacity and actually supplied energy and they are generally not required to make payments for capacity if the contracted capacity is not available, and payments are reduced, under certain conditions, if available capacity drops below contracted levels. In general, the payment rates for capacity have been predetermined for the terms of the agreements. Energy payments will vary over the terms of the agreements. The Utilities pass on changes in the fuel component of the energy charges to customers through the ECAC in their rate schedules. The Utilities do not operate, or participate in the operation of, any of the facilities that provide power under the agreements. Title to the facilities does not pass to Hawaiian Electric or its subsidiaries upon expiration of the agreements, and the agreements do not contain bargain purchase options for the facilities. | |||||||||||||||||||||
Purchase power adjustment clause. The PUC has approved purchased power adjustment clauses (PPACs) for the Utilities. Purchased power capacity, O&M and other non-energy costs previously recovered through base rates are now recovered in the PPACs and, subject to approval by the PUC, such costs resulting from new purchased power agreements can be added to the PPACs outside of a rate case. Purchased energy costs continue to be recovered through the ECAC to the extent they are not recovered through base rates. | |||||||||||||||||||||
Hawaii Clean Energy Initiative. In January 2008, the State of Hawaii (State) and the U.S. Department of Energy signed a memorandum of understanding establishing the Hawaii Clean Energy Initiative (HCEI). In October 2008, the Governor of the State, the State Department of Business, Economic Development and Tourism (DBEDT), the Division of Consumer Advocacy of the State Department of Commerce and Consumer Affairs and the Utilities (collectively, the parties), signed an agreement setting forth goals and objectives under the HCEI and the related commitments of the parties (the Energy Agreement), including pursuing a wide range of actions to decrease the State’s dependence on imported fossil fuels through substantial increases in renewable energy and programs intended to secure greater energy efficiency and conservation. Many of the actions and programs included in the Energy Agreement required approval of the PUC. | |||||||||||||||||||||
The parties to the Energy Agreement concluded that the agreements and policy directives in the Energy Agreement had been advanced or superseded by subsequent events, as well as by decisions and orders issued by the PUC, and accordingly ended the Energy Agreement on September 14, 2014. On September 15, 2014, the State of Hawaii and the U.S. Department of Energy executed a MOU recognizing that Hawaii is embarking on the next phase of its clean energy future. The MOU provides the framework for a comprehensive, sustained effort to better realize Hawaii's vast renewable energy potential and allow it to push forward in three main areas: the power sector, transportation and energy efficiency. This next phase will focus on stimulating deployment of clean energy infrastructure as a catalyst for economic growth, energy system innovation and test bed investments. | |||||||||||||||||||||
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, the Utilities 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 for these projects 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 Rate 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 of the settlement 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. | |||||||||||||||||||||
In March 2012, the PUC approved a settlement agreement reached among Hawaiian Electric, the Consumer Advocate and the Department of Defense, under which, in lieu of a regulatory audit, Hawaiian Electric would write off $9.5 million of EOTP Phase 1 gross plant in service and associated adjustments. This resulted in an after-tax charge to net income in the fourth quarter of 2011 of approximately $6 million and the elimination of the requirement for a Phase 1 regulatory audit. The PUC also provided for an additional increase of approximately $5 million in Hawaiian Electric’s 2011 test year rate case for the additional revenue requirements reflecting all remaining Phase 1 costs not previously included in rates or agreed to be written off. | |||||||||||||||||||||
Renewable energy projects. The Utilities are committed to achieving or exceeding the State’s Renewable Portfolio Standard (RPS) goal of 40% renewable energy by 2030 and to decreasing the State’s dependence on imported fossil fuels. 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 November 2013, Hawaiian Electric and Maui Electric filed an application for recovery of its actual deferred costs totaling $405,000 (split evenly between Hawaiian Electric and Maui Electric) for outside contractor services for additional studies to determine the value proposition of interconnecting the islands of Oahu and of Maui County (Maui, Lanai, and Molokai) through the Renewable Energy Intrastructure Program (REIP) surcharge. The application is currently pending before the PUC. | |||||||||||||||||||||
A revised draft Request for Proposals (RFP) for 200MW 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, including an order initiating 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, but Hawaii Electric Light notified bidders that none of the submitted bids sufficiently met both the low-cost and technical requirements of the Geothermal RFP. In October 2014, Hawaii Electric Light issued Addendum No. 1 (Best and Final Offer) and Attachment A (Best and Final Offer Bidder's Response Package) directly to five eligible bidders. The submittals received in January 2015 will be considered for final selection of one project to proceed with PPA negotiations. | |||||||||||||||||||||
In the fourth quarter of 2014, Hawaiian Electric filed applications requesting PUC approval of power purchase agreements for renewable as-available energy for seven projects that were granted waivers from the Competitive Bidding Framework. | |||||||||||||||||||||
Environmental regulation. The Utilities 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 August 14, 2014, the Environmental Protection Agency (EPA) published in the Federal Register the final 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 regulations were effective October 14, 2014 and apply to the cooling water systems for the steam generating units at Hawaiian Electric’s power plants on the island of Oahu. The regulations prescribe a process, including a number of required site-specific studies, for states to develop facility-specific entrainment and impingement controls to be incorporated in the facility’s National Pollutant Discharge Elimination System permit. In the case of Hawaiian Electric's power plants, there are a number of studies that have yet to be completed before Hawaiian Electric and the Department of Health of the State of Hawaii (DOH) can determine what entrainment or impingement controls, if any, might be appropriate. | |||||||||||||||||||||
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. Hawaiian Electric requested and received 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, but has not been given a time frame for an EPA decision or action. Due to the EPA’s delay in taking action on Hawaiian Electric’s Petition for Reconsideration submitted in April 2012, Hawaiian Electric submitted to the EPA, on February 20, 2015, a Notice of Intent to Sue as a prerequisite to bringing a civil action. | |||||||||||||||||||||
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 (SO2) National Ambient Air Quality Standard (NAAQS) implementation plans. In May 2014, the EPA published a proposed data requirements rule for states to characterize their air quality in relation to the one-hour SO2 NAAQS. Under the proposed rule, the EPA expects to designate areas as attaining, or not attaining, the one-hour SO2 NAAQS in December 2017 or December 2020, depending on whether the area was characterized through modeling or monitoring. Hawaiian Electric will work with the DOH in implementing the one-hour SO2 NAAQS and in developing cost-effective strategies for NAAQS compliance, if needed. | |||||||||||||||||||||
Depending upon the specific measures required for compliance with the CWA 316(b) regulations and MATS, and the rules and guidance developed for compliance with the more stringent NAAQS, the Utilities may be required to incur material capital expenditures and other compliance costs, but such amounts and their timing 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 encounter petroleum or other chemical releases into the environment associated with current or previous operations and report and take action on these releases when and as required by applicable law and regulations. The Utilities 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. The parties had preliminary discussions in February 2014, and are continuing to negotiate toward a resolution of the DOJ’s claims. As part of the ongoing negotiations, the DOJ proposed in November 2014 entering into a consent decree pursuant to which the Utilities would install certain pollution controls and pay a penalty. The Utilities are currently reviewing the proposal, but are unable to estimate the amount or effect of a consent decree, if any, at this time. | |||||||||||||||||||||
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, residual 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 December 31, 2014) 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 and EPA comments on a draft site investigation plan for site characterization in the fourth quarter of 2013. Management concluded that these comments did not require a change to the reserve balance. The site investigation plan has been revised to address the EPA and DOH comments and the final site investigation plan was submitted to the DOH and EPA in December 2014. | |||||||||||||||||||||
Pearl Harbor sediment study. The U.S. Navy is conducting a feasibility study for the remediation of contaminated sediment in Pearl Harbor. In the course of its study, the Navy identified elevated levels of PCBs in the sediment offshore from the Waiau Power Plant. The results of the Navy’s study to date, including sampling data and possible remediation approaches, are undergoing further federal review. Hawaiian Electric submitted comments on the Navy’s study, including the further investigation and analyses that are necessary to identify appropriate remedial options and actions. | |||||||||||||||||||||
In July 2014, the Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is responsible for cleanup of the area offshore of the Waiau Power Plant. The Navy has also requested that Hawaiian Electric reimburse the costs incurred by the Navy to date to investigate the area, and is asking Hawaiian Electric to engage in negotiations regarding the financing and undertaking of future response actions. The extent of the contamination, the appropriate remedial measures to address it, and Hawaiian Electric’s potential responsibility for any associated costs have not yet been determined. In December 2014, Hawaiian Electric recorded a reserve of $0.8 million for additional investigation of the PCBs in the sediment offshore from the Waiau Power Plant; however, final costs of remediation will depend on the results of the additional investigation. | |||||||||||||||||||||
Global climate change and greenhouse gas emissions reduction. National and international concern about climate change and the contribution of greenhouse gas (GHG) emissions (including carbon dioxide emissions from the combustion of fossil fuels) to climate change 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. On June 20, 2014, the Governor signed the final regulations required to implement Act 234 and the regulations went into effect on June 30, 2014. In general, the regulations will require affected sources that have the potential to emit GHGs in excess of established thresholds to reduce GHG emissions by 16% below 2010 emission levels by 2020. The regulations will also assess affected sources an annual fee based on tons per year of GHG emissions commencing on the effective date of the regulations, estimated to be approximately $0.5 million annually for the Utilities. The DOH GHG regulations also track 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. | |||||||||||||||||||||
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 through 2013 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 covering the permitting of new or modified stationary sources that have the potential to emit GHGs in greater quantities than the thresholds set forth in the rule, under the Prevention of Significant Deterioration program. On June 23, 2014, the U.S. Supreme Court issued a decision that invalidated the GHG Tailoring Rule, to the extent it regulated sources based solely on their GHG emissions. It also invalidated the GHG emissions threshold for regulation. On December 19, 2014, the EPA released two memorandums outlining the Agency’s plan for addressing the U.S. Supreme Court’s decision. Hawaiian Electric, Hawaii Electric Light and Maui Electric are evaluating the potential impacts of the Agency’s plan on utility operations and permitting. On January 8, 2014, the EPA published in the Federal Register its new proposal for New Source Performance Standards for GHG from new generating units. The 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. | |||||||||||||||||||||
On June 18, 2014, the EPA published in the Federal Register its proposed rule for GHG emissions from existing power plants. The rule sets interim and final state-wide, state-specific emission performance goals, expressed as lb CO2/MWh, that would apply to the state’s affected sources. The interim goal would apply as an average over the period 2020 through 2029, with the final goal to be met by 2030. On the same date, the EPA also published a separate rule for modified and reconstructed power plants. The EPA’s plan is to issue the final rules by mid-summer 2015. Hawaiian Electric is still evaluating the proposed rules for GHG emissions from existing, modified, and reconstructed sources, and how they might relate to the recently issued State GHG rules. Hawaiian Electric will participate in the federal GHG rulemaking process, and in the implementation of the State GHG rules, to try to reconcile federal GHG regulation, state GHG regulation, and any action the EPA may take as a result of the recent U.S. Supreme Court opinion, to facilitate clear and cost-effective compliance. 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 requirements of the RPS law. | |||||||||||||||||||||
The Utilities 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 Utilities’ carbon footprint and meeting GHG reduction goals that will ultimately emerge. | |||||||||||||||||||||
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 Utilities. For example, severe weather could cause significant harm to the Utilities’ physical facilities. | |||||||||||||||||||||
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 in annual revenues that had been in effect since June 1, 2012. Reductions from the interim D&O related 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% 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 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 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 the Utilities' 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. | |||||||||||||||||||||
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 of 2013 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 required by the final D&O, Maui Electric filed in September 2013 a System Improvement and Curtailment Reduction Plan (SICRP), 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. | |||||||||||||||||||||
Maui Electric 2015 test year rate case. On December 30, 2014, Maui Electric filed its 2015 test year rate case in accordance with the three-year general rate case cycle established by the PUC in its Final D&O, issued on August 31, 2010, in the decoupling proceeding. This was an abbreviated rate case filing in which Maui Electric intends to forego the opportunity to seek a general rate increase in base rates, in recognition that its customers have been enduring a high bill environment. If Maui Electric were to seek an increase in base rates, the requested increase in revenue, based on its revenue requirement for a normalized 2015 test year, would have been $11.6 million, or 2.8%, over revenues at current effective rates with estimated 2015 rate adjustment mechanism (RAM) revenues. The normalized 2015 test year revenue requirement is based on an estimated cost of common equity of 10.75%. Management cannot predict any actions by the PUC as a result of this filing. | |||||||||||||||||||||
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. The Utilities’ 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 the Utilities relate to obligations to retire plant and equipment, including removal of asbestos and other hazardous materials. | |||||||||||||||||||||
Hawaiian Electric has recorded estimated AROs related to removing retired generating units at its Honolulu and Waiau power plants. These removal projects are ongoing, with significant activity and expenditures occurring in 2014 in partial settlement of these liabilities. Both removal projects are expected to continue through 2015. | |||||||||||||||||||||
Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Balance, January 1 | $ | 43,106 | $ | 48,431 | |||||||||||||||||
Accretion expense | 890 | 1,263 | |||||||||||||||||||
Liabilities incurred | — | — | |||||||||||||||||||
Liabilities settled | (14,577 | ) | (5,672 | ) | |||||||||||||||||
Revisions in estimated cash flows | — | (916 | ) | ||||||||||||||||||
Balance, December 31 | $ | 29,419 | $ | 43,106 | |||||||||||||||||
Decoupling. In 2010, the PUC issued an order approving decoupling, which was implemented by Hawaiian Electric on March 1, 2011, by Hawaii Electric Light on April 9, 2012 and by Maui Electric on May 4, 2012. Decoupling is a regulatory model that is intended to facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The decoupling model implemented in Hawaii delinks revenues from sales and includes annual rate adjustments for certain O&M expenses and rate base changes. The decoupling mechanism has three components: (1) a sales decoupling component via a revenue balancing account (RBA), (2) a revenue escalation component via a rate adjustment mechanism (RAM) and (3) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the ROACE allowed in its most recent rate case. Decoupling provides for more timely cost recovery and earning on investments. The implementation of decoupling has resulted in an improvement in the Utilities’ under-earning situation that has existed over the last several years. | |||||||||||||||||||||
On May 31, 2013, as provided for in its original order issued in 2010 approving decoupling and citing three years of implementation experience for Hawaiian Electric, the PUC opened an investigative docket to review whether the decoupling mechanisms are functioning as intended, are fair to the Utilities and their ratepayers, and are in the public interest. The PUC affirmed its support for the continuation of the sales decoupling (RBA) mechanism and stated its interest in evaluating the RAM to ensure it provides the appropriate balance of risks, costs, incentives and performance requirements, as well as administrative efficiency, and whether the current interest rate applied to the outstanding RBA balance is reasonable. The Utilities and the Consumer Advocate were named as parties to this proceeding and filed a joint statement of position that any material changes to the current decoupling mechanism should be made prospectively after 2016, unless the Utilities and the Consumer Advocate mutually agree to the change in this proceeding. The PUC granted several parties’ motions to intervene. In October 2013, the PUC issued orders that bifurcated the proceeding (Schedule A and Schedule B) and identified issues and procedural schedules for both Schedules. | |||||||||||||||||||||
Schedule A issues include: | |||||||||||||||||||||
• | for the RBA, the reasonableness of the interest rate related to the carrying charge of the outstanding RBA balance and whether there should be a risk sharing adjustment to the RBA; | ||||||||||||||||||||
• | for the RAM, whether it is reasonable to true up all actual prior year baseline projects, which are those capital projects less than $2.5 million, at year end or implement alternative methods to calculate the RAM rate base; | ||||||||||||||||||||
• | whether a risk sharing mechanism should be incorporated into the RBA; | ||||||||||||||||||||
• | whether performance metrics should be determined and reported; and | ||||||||||||||||||||
• | whether other factors should be considered if potential changes to existing RBA and RAM provisions are required. | ||||||||||||||||||||
Schedule B issues include: | |||||||||||||||||||||
• | whether performance metrics and incentives (rewards or penalties) should be implemented to control costs and encourage the Utilities to make necessary or appropriate changes to strategic and action plans; | ||||||||||||||||||||
• | whether the allocation of risk as a result of the decoupling mechanism is fairly reflected in the cost of capital allowed in rates; | ||||||||||||||||||||
• | changes or alternatives to the existing RAM; and | ||||||||||||||||||||
• | changes to ratemaking procedures to improve efficiency and/or effectiveness. | ||||||||||||||||||||
Oral arguments on Schedule A issues were held in January 2014. On February 7, 2014, the PUC issued a D&O on the Schedule A issues, which made certain modifications to the decoupling mechanism. Specifically, the D&O requires: | |||||||||||||||||||||
• | An adjustment to the Rate Base RAM Adjustment to include 90% of the amount of the current RAM Period Rate Base RAM Adjustment that exceeds the Rate Base RAM Adjustment from the prior year, to be effective with the Utilities’ 2014 decoupling filing. | ||||||||||||||||||||
• | Effective March 1, 2014, the interest rate to be applied on the outstanding RBA balances to be the short term debt rate used in each Utilities last rate case (ranging from 1.25% to 3.25%), instead of the 6% that had been previously approved. | ||||||||||||||||||||
The D&O required the Utilities to immediately investigate the possibility of deferring the payment of income taxes on the accrued amounts of decoupling revenue, and to report the results with recommendations to the PUC. The PUC reserved the right to determine in the next decoupling and rate case filings whether each Utilities’ allowed income taxes should be adjusted for this change. The Utilities updated the PUC on their progress in investigating the tax treatment of the revenues included in the RBA balances and provided information to the PUC concerning the application to the IRS for an accounting methods change to recognize RBA revenues for tax purposes when amounts are billed. On April 28, 2014, the Utilities received approval for this change from the IRS, effective January 1, 2014. This change will reduce the amount of interest to be accrued on the RBA balance as proposed by the Consumer Advocate (see "Recent tax developments" above). | |||||||||||||||||||||
As required, the Utilities developed websites to present certain Schedule A performance metrics and proposed additional performance metrics. These metrics are all currently being reviewed by the PUC and, if approved, will be available to the public. | |||||||||||||||||||||
The Schedule A issues on whether it is reasonable to automatically include all actual prior year capital expenditures on baseline projects in the Rate Base RAM and whether a risk sharing mechanism should be incorporated into the RBA, particularly with respect to the PUC’s concerns regarding maintaining and enhancing the Utilities' incentives to control costs and appropriately allocating risk and compensation for risk, will be addressed in the Schedule B proceedings. | |||||||||||||||||||||
On May 20, 2014, the Utilities and other parties filed their respective initial statements of position for the Schedule B issues in this proceeding. Specifically, the Utilities concluded that (1) the existing RAM provision can be modified to address concerns stated by the PUC regarding the review of baseline capital projects and the growth in plant additions, and (2) targeted incentives can be crafted to incentivize the activities identified by the PUC. | |||||||||||||||||||||
On September 15, 2014, the Utilities and other parties filed their respective reply statements of position for the Schedule B issues in this proceeding. Specifically, the Utilities concluded that (1) the existing RAM provision can be modified to address PUC concerns regarding the review of baseline capital projects, and to provide more incentives for the Utilities to control capital expenditure costs while aggressively moving forward with their plans, (2) if the RAM is to be replaced, the Utilities can support transition to a new appropriately designed incentive-based regulatory (IBR) model, (3) developing an IBR mechanism and process consistent with the objectives in the Utilities’ approved plans will also take reasonable time; thus, it would be more reasonable to target 2017 to begin implementation of any new IBR mechanism and decoupling should be retained in the meantime and (4) the Utilities would support the development of performance metrics to be implemented as part of a new IBR mechanism. | |||||||||||||||||||||
The Utilities and other parties participated in panel hearings on Schedule B issues in late October 2014. | |||||||||||||||||||||
In early December 2014, the PUC issued an order that amended the procedural schedule and issued information requests. On December 22, 2014, the Utilities and other parties filed their respective responses to PUC information requests. The proceeding is currently pending a PUC order instructing the parties regarding the issues and scope for limited briefs and reply briefs. | |||||||||||||||||||||
Management cannot predict the outcome of the proceedings or the ultimate impact of the proceedings on the results of operation of the Utilities. | |||||||||||||||||||||
April 2014 regulatory orders. In April 2014, the PUC issued four orders that collectively address certain key policy, resource planning and operational issues for the Utilities. The four orders are as follows: | |||||||||||||||||||||
Integrated Resource Planning. The PUC did not accept the Utilities’ Integrated Resource Plan and Action Plans submission, and, in lieu of an approved plan, has commenced other initiatives to enable resource planning. The PUC also terminated the Utilities' integrated resource planning (IRP) cycle, including the filing of a mid-cycle evaluation report, and formally concluded the IRP advisory group. The PUC directed each of Hawaiian Electric and Maui Electric to file within 120 days its respective Power Supply Improvement Plans (PSIPs), and the PSIPs were filed in August 2014. The PUC also provided its inclinations on the future of Hawaii’s electric utilities in an exhibit to the order. The exhibit provides the PUC’s perspectives on the vision, business strategies and regulatory policy changes required to align the Utilities' business model with customers’ interests and the state’s public policy goals. | |||||||||||||||||||||
Reliability Standards Working Group. The PUC ordered the Utilities (and in some cases the Kauai Island Utility Cooperative (KIUC)) to take timely actions intended to lower energy costs, improve system reliability and address emerging challenges to integrate additional renewable energy. In addition to the PSIPs mentioned above, the PUC ordered certain filing requirements which include the following: | |||||||||||||||||||||
• | Distributed Generation Interconnection Plan to be filed within 120 days. The Utilities’ Plan was filed in August 2014. | ||||||||||||||||||||
• | Plan to implement an on-going distribution circuit monitoring program to measure real-time voltage and other power quality parameters to be filed within 60 days. The plan shall achieve full implementation of the distribution circuit monitoring program within 180 days. The Utilities' Plan was filed in June 2014. | ||||||||||||||||||||
• | Action Plan for improving efficiencies in the interconnection requirements studies to be filed within 30 days. The Utilities' Plan was filed in May 2014. | ||||||||||||||||||||
• | The Utilities are to file monthly reports providing details about interconnection requirements studies. | ||||||||||||||||||||
• | Proposal to implement an integrated interconnection queue for each distribution circuit for each island grid to be filed within 120 days. The Utilities’ integrated interconnection queue plan was filed in August 2014 and the integrated interconnection queues were implemented in January 2015. | ||||||||||||||||||||
The PUC also stated it would be opening new dockets to address (1) reliability standards, (2) the technical, economic and policy issues associated with distributed energy resources and (3) the Hawaii electricity reliability administrator, which is a third party position which the legislature has authorized the PUC to create by contract to provide support for the PUC in developing and periodically updating local grid reliability standards and procedures and interconnection requirements and overseeing grid access and operation. | |||||||||||||||||||||
Policy Statement and Order Regarding Demand Response Programs. The PUC provided guidance concerning the objectives and goals for demand response programs, and ordered the Utilities to develop within 90 days an integrated Demand Response Portfolio Plan that will enhance system operations and reduce costs to customers. The Utilities’ Plan was filed in July 2014. In August 2014, the PUC invited public comment on the Utilities’ Plan. The Utilities submitted a status update in October 2014, and a second status update is planned to be filed with the PUC in March 2015. | |||||||||||||||||||||
Maui Electric Company 2012 Test Year Rate Case. The PUC acknowledged the extensive analyses provided by Maui Electric in its System Improvement and Curtailment Reduction Plan (SICRP) filed in September 2013. The PUC stated that it is encouraged by the changes in Maui Electric’s operations that have led to a significant reduction in the curtailment of renewables, but stated that Maui Electric has not set forth a clearly defined path that addresses integration and curtailment of additional renewables. The PUC directed Maui Electric to present a PSIP within 120 days to address present and future system operations so as to not only reduce curtailment, but to optimize the operation of its system for its customers’ benefit. The Maui Electric PSIP was filed in August 2014, and will be reviewed by the PUC in a new docket along with the Hawaiian Electric and Hawaii Electric Light PSIPs. Maui Electric filed its first annual SICRP status update in September 2014. | |||||||||||||||||||||
Review of PSIPs. Collectively, the PUC's April 2014 resource planning orders confirm the energy policy and operational priorities that will guide the Utilities' strategies and plans going forward. | |||||||||||||||||||||
PSIPs for Hawaiian Electric, Maui Electric and Hawaii Electric Light (updating its Power Supply Plan filed in April 2014) were filed in August 2014. The PSIPs each include a tactical plan to transform how electric utility services will be offered to meet customer needs and produce higher levels of renewable energy. Each plan contains a diversified mix of technologies, including significant distributed and utility‑scale renewable resources, that is expected to result, on a consolidated basis, in over 65% of the Utilities’ energy being produced from renewable resources by 2030. Under these plans, the Utilities will support sustainable growth of rooftop solar, expand use of energy storage systems, empower customers by developing smart grids, offer new products and services to customers (e.g., community solar, microgrids and voluntary “demand response” programs), switch from high-priced oil to lower cost liquefied natural gas, retire higher-cost, less efficient existing oil-based steam generators, and lower full service residential customer bills in real dollars. | |||||||||||||||||||||
The PSIPs will be reviewed by the PUC in a new docket, and a number of parties have moved to intervene in the proceeding. In September 2014, the PUC invited the public to comment on the PSIPs. In October 2014, the Utilities filed responses to information requests on the PSIPs from the PUC. | |||||||||||||||||||||
Transitional Distributed Generation Tariff. Consistent with their Distributed Generation Interconnection Plan, on January 20, 2015, the Utilities filed a motion which requested the PUC in pertinent part to: | |||||||||||||||||||||
(1) Reinstitute a program capacity threshold for the Utilities' existing Net Energy Metering (NEM) program; | |||||||||||||||||||||
(2) Approve the Utilities’ proposal to address both existing NEM program participants and those customers presently awaiting interconnection approval under the existing NEM program; | |||||||||||||||||||||
(3) Approve a new Transitional Distributed Generation (TDG) tariff to be available to customers seeking interconnection after the NEM program capacity is reached, which tariff more fairly allocates fixed grid costs to DG customers and credits customers for the value of the excess energy produced by their systems; and | |||||||||||||||||||||
(4) Approve a new standard form TDG contract to allow for the advanced technical capabilities required to integrate higher levels of distributed generation. | |||||||||||||||||||||
Once the requests in the motion are approved, it is contemplated that the Utilities will be able to increase existing circuit penetration limits based upon daytime minimum load, and identify strategic and cost effective investments to circuits and the system to support increased levels of DG. Such investments would be made for the benefit of all customers rather than charging costs only to those installing DG systems on the circuit. | |||||||||||||||||||||
The Utilities have requested approval of their motion within 60 days of filing or by March 20, 2015. On January 27, 2015, the Consumer Advocate opposed the Utilities’ motion, contended that further analysis is required to determine whether the Utilities’ requests are reasonable and in the public interest, and requested that the PUC hold the motion in abeyance until such further review can be conducted. | |||||||||||||||||||||
Management cannot predict the outcome of the proceedings to review the Plans submitted in response to the PUC’s April 2014 resource planning orders, or the ultimate impact of the proceedings on the results of operations of the Utilities. | |||||||||||||||||||||
Liquefied natural gas. In August 2014, Hawaiian Electric entered into a 15-year agreement with Fortis BC Energy Inc. (Fortis) for liquefaction capacity for liquefied natural gas (LNG) under tariffed rates approved by the British Columbia Utilities Commission. The agreement, which is subject to Hawaii PUC approval, other regulatory approvals and permits, and other conditions precedent before it becomes effective, provides for LNG liquefaction capacity purchases of 800,000 tonnes per year for the first five years, 700,000 tonnes per year for the next five years, and 600,000 tonnes per year for the last five years. Fortis must also obtain regulatory and other approvals for the agreement to become effective. The Fortis agreement is assignable and can be assigned to the selected bidder in the Utilities’ request for proposal (RFP) for the supply of containerized LNG and will help ensure that liquefaction capacity is available at pricing that management believes will lower customer bills. | |||||||||||||||||||||
Consolidating financial information (unaudited). 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 HECO Capital Trust III (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 Hawaiian Electric and each of its 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 (see Hawaiian Electric and Subsidiaries' Consolidated Statements of Capitalization) and (c) relating to the trust preferred securities of Trust III (see Note 6). 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. | |||||||||||||||||||||
Consolidating statement of income | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 2,142,245 | 422,200 | 422,965 | — | (87 | ) | [1] | $ | 2,987,323 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 821,246 | 117,215 | 193,224 | — | — | 1,131,685 | |||||||||||||||
Purchased power | 537,821 | 123,226 | 60,961 | — | — | 722,008 | |||||||||||||||
Other operation and maintenance | 283,532 | 65,471 | 61,609 | — | 410,612 | ||||||||||||||||
Depreciation | 109,204 | 35,904 | 21,279 | — | — | 166,387 | |||||||||||||||
Taxes, other than income taxes | 201,426 | 39,521 | 39,916 | — | — | 280,863 | |||||||||||||||
Total expenses | 1,953,229 | 381,337 | 376,989 | — | — | 2,711,555 | |||||||||||||||
Operating income | 189,016 | 40,863 | 45,976 | — | (87 | ) | 275,768 | ||||||||||||||
Allowance for equity funds used during construction | 6,085 | 472 | 214 | — | — | 6,771 | |||||||||||||||
Equity in earnings of subsidiaries | 40,964 | — | — | — | (40,964 | ) | [2] | — | |||||||||||||
Interest expense and other charges, net | (44,041 | ) | (11,030 | ) | (9,773 | ) | — | 87 | [1] | (64,757 | ) | ||||||||||
Allowance for borrowed funds used during construction | 2,306 | 182 | 91 | — | — | 2,579 | |||||||||||||||
Income before income taxes | 194,330 | 30,487 | 36,508 | — | (40,964 | ) | 220,361 | ||||||||||||||
Income taxes | 55,609 | 11,264 | 13,852 | — | — | 80,725 | |||||||||||||||
Net income | 138,721 | 19,223 | 22,656 | — | (40,964 | ) | 139,636 | ||||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | |||||||||||||||
Net income attributable to Hawaiian Electric | 138,721 | 18,689 | 22,275 | — | (40,964 | ) | 138,721 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | |||||||||||||||
Net income for common stock | $ | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | $ | 137,641 | ||||||||||||
Consolidating statement of comprehensive income | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Net income for common stock | $ | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | $ | 137,641 | ||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (218,608 | ) | (28,725 | ) | (29,352 | ) | — | 58,077 | [1] | (218,608 | ) | ||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,212 | 1,270 | 1,090 | — | (2,360 | ) | [1] | 10,212 | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 207,833 | 27,437 | 28,257 | — | (55,694 | ) | [1] | 207,833 | |||||||||||||
Other comprehensive loss, net of tax benefits | (563 | ) | (18 | ) | (5 | ) | — | 23 | (563 | ) | |||||||||||
Comprehensive income attributable to common shareholder | $ | 137,078 | 18,671 | 22,270 | — | (40,941 | ) | $ | 137,078 | ||||||||||||
Consolidating statement of income | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 2,124,174 | 431,517 | 424,603 | — | (122 | ) | [1] | $ | 2,980,172 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 851,365 | 125,516 | 208,671 | — | — | 1,185,552 | |||||||||||||||
Purchased power | 527,839 | 128,368 | 54,474 | — | — | 710,681 | |||||||||||||||
Other operation and maintenance | 283,768 | 61,418 | 58,081 | 3 | — | 403,270 | |||||||||||||||
Depreciation | 99,738 | 34,188 | 20,099 | — | — | 154,025 | |||||||||||||||
Taxes, other than income taxes | 200,962 | 40,092 | 40,077 | — | — | 281,131 | |||||||||||||||
Impairment of utility assets | — | — | — | — | — | — | |||||||||||||||
Total expenses | 1,963,672 | 389,582 | 381,402 | 3 | — | 2,734,659 | |||||||||||||||
Operating income (loss) | 160,502 | 41,935 | 43,201 | (3 | ) | (122 | ) | 245,513 | |||||||||||||
Allowance for equity funds used | 4,495 | 643 | 423 | — | — | 5,561 | |||||||||||||||
during construction | |||||||||||||||||||||
Equity in earnings of subsidiaries | 41,410 | — | — | — | (41,410 | ) | [2] | — | |||||||||||||
Interest expense and other charges, net | (39,107 | ) | (11,341 | ) | (8,953 | ) | 122 | [1] | (59,279 | ) | |||||||||||
Allowance for borrowed funds used during construction | 1,814 | 263 | 169 | — | — | 2,246 | |||||||||||||||
Income (loss) before income taxes | 169,114 | 31,500 | 34,840 | (3 | ) | (41,410 | ) | 194,041 | |||||||||||||
Income taxes | 45,105 | 10,830 | 13,182 | — | — | 69,117 | |||||||||||||||
Net income (loss) | 124,009 | 20,670 | 21,658 | (3 | ) | (41,410 | ) | 124,924 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 124,009 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | 124,009 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | |||||||||||||||
Net income (loss) for common stock | $ | 122,929 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | $ | 122,929 | |||||||||||
Consolidating statement of comprehensive income (loss) | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Net income (loss) for common stock | $ | 122,929 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | $ | 122,929 | |||||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net gains arising during the period, net of taxes | 203,479 | 30,542 | 27,820 | — | (58,362 | ) | [1] | 203,479 | |||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 20,694 | 2,880 | 2,557 | — | (5,437 | ) | [1] | 20,694 | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits | (222,595 | ) | (33,277 | ) | (30,254 | ) | — | 63,531 | [1] | (222,595 | ) | ||||||||||
Other comprehensive income, net of tax benefits | 1,578 | 145 | 123 | — | (268 | ) | 1,578 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 124,507 | 20,281 | 21,400 | (3 | ) | (41,678 | ) | $ | 124,507 | |||||||||||
Consolidating statement of income | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 2,228,233 | 441,013 | 440,270 | — | (77 | ) | [1] | $ | 3,109,439 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 945,246 | 116,866 | 235,307 | — | — | 1,297,419 | |||||||||||||||
Purchased power | 540,802 | 145,386 | 38,052 | — | — | 724,240 | |||||||||||||||
Other operation and maintenance | 266,208 | 60,447 | 70,771 | 3 | — | 397,429 | |||||||||||||||
Depreciation | 90,783 | 33,337 | 20,378 | — | — | 144,498 | |||||||||||||||
Taxes, other than income taxes | 209,943 | 41,370 | 41,528 | — | — | 292,841 | |||||||||||||||
Impairment of utility assets | 29,000 | 5,500 | 5,500 | — | — | 40,000 | |||||||||||||||
Total expenses | 2,081,982 | 402,906 | 411,536 | 3 | — | 2,896,427 | |||||||||||||||
Operating income (loss) | 146,251 | 38,107 | 28,734 | (3 | ) | (77 | ) | 213,012 | |||||||||||||
Allowance for equity funds used | 5,735 | 585 | 687 | — | — | 7,007 | |||||||||||||||
during construction | |||||||||||||||||||||
Equity in earnings of subsidiaries | 28,836 | — | — | — | (28,836 | ) | [2] | — | |||||||||||||
Interest expense and other charges, net | (40,842 | ) | (12,066 | ) | (9,224 | ) | — | 77 | [1] | (62,055 | ) | ||||||||||
Allowance for borrowed funds used during construction | 3,642 | 235 | 478 | — | — | 4,355 | |||||||||||||||
Income (loss) before income taxes | 143,622 | 26,861 | 20,675 | (3 | ) | (28,836 | ) | 162,319 | |||||||||||||
Income taxes | 43,266 | 10,115 | 7,667 | — | — | 61,048 | |||||||||||||||
Net income (loss) | 100,356 | 16,746 | 13,008 | (3 | ) | (28,836 | ) | 101,271 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 100,356 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | 100,356 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | |||||||||||||||
Net income (loss) for common stock | $ | 99,276 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | $ | 99,276 | |||||||||||
Consolidating statement of comprehensive income (loss) | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Net income (loss) for common stock | $ | 99,276 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | $ | 99,276 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (90,082 | ) | (13,577 | ) | (10,935 | ) | — | 24,512 | [1] | (90,082 | ) | ||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 13,673 | 2,101 | 1,771 | — | (3,872 | ) | [1] | 13,673 | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits | 75,471 | 11,442 | 9,093 | — | (20,535 | ) | [1] | 75,471 | |||||||||||||
Other comprehensive loss, net of tax benefits | (938 | ) | (34 | ) | (71 | ) | — | 105 | (938 | ) | |||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 98,338 | 16,178 | 12,556 | (3 | ) | (28,731 | ) | $ | 98,338 | |||||||||||
Consolidating balance sheet | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,819 | 5,464 | 3,016 | — | — | $ | 52,299 | |||||||||||||
Plant and equipment | 3,782,438 | 1,179,032 | 1,048,012 | — | — | 6,009,482 | |||||||||||||||
Less accumulated depreciation | (1,253,866 | ) | (473,933 | ) | (447,711 | ) | — | — | (2,175,510 | ) | |||||||||||
Construction in progress | 134,376 | 12,421 | 11,819 | — | — | 158,616 | |||||||||||||||
Utility property, plant and equipment, net | 2,706,767 | 722,984 | 615,136 | — | — | 4,044,887 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,950 | 82 | 1,531 | — | — | 6,563 | |||||||||||||||
Total property, plant and equipment, net | 2,711,717 | 723,066 | 616,667 | — | — | 4,051,450 | |||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 538,639 | — | — | — | (538,639 | ) | [2] | 0 | |||||||||||||
Current assets | |||||||||||||||||||||
Cash and equivalents | 12,416 | 612 | 633 | 101 | — | 13,762 | |||||||||||||||
Advances to affiliates | 16,100 | — | — | — | (16,100 | ) | [1] | — | |||||||||||||
Customer accounts receivable, net | 111,462 | 24,222 | 22,800 | — | — | 158,484 | |||||||||||||||
Accrued unbilled revenues, net | 103,072 | 15,926 | 18,376 | — | — | 137,374 | |||||||||||||||
Other accounts receivable, net | 9,980 | 981 | 2,246 | — | (8,924 | ) | [1] | 4,283 | |||||||||||||
Fuel oil stock, at average cost | 74,515 | 13,800 | 17,731 | — | — | 106,046 | |||||||||||||||
Materials and supplies, at average cost | 33,154 | 6,664 | 17,432 | — | — | 57,250 | |||||||||||||||
Prepayments and other | 44,680 | 8,611 | 13,567 | — | (475 | ) | [3] | 66,383 | |||||||||||||
Regulatory assets | 58,550 | 6,745 | 6,126 | — | — | 71,421 | |||||||||||||||
Total current assets | 463,929 | 77,561 | 98,911 | 101 | (25,499 | ) | 615,003 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 623,784 | 107,454 | 102,788 | — | (183 | ) | [1] | 833,843 | |||||||||||||
Unamortized debt expense | 5,640 | 1,438 | 1,245 | — | — | 8,323 | |||||||||||||||
Other | 53,106 | 15,366 | 13,366 | — | — | 81,838 | |||||||||||||||
Total other long-term assets | 682,530 | 124,258 | 117,399 | — | (183 | ) | 924,004 | ||||||||||||||
Total assets | $ | 4,396,815 | 924,885 | 832,977 | 101 | (564,321 | ) | $ | 5,590,457 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,682,144 | 281,846 | 256,692 | 101 | (538,639 | ) | [2] | $ | 1,682,144 | |||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,546 | 190,000 | 186,000 | — | — | 1,206,546 | |||||||||||||||
Total capitalization | 2,534,983 | 478,846 | 447,692 | 101 | (538,639 | ) | 2,922,983 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | — | — | — | — | — | |||||||||||||||
Short-term borrowings-affiliate | — | 10,500 | 5,600 | — | (16,100 | ) | [1] | — | |||||||||||||
Accounts payable | 122,433 | 23,728 | 17,773 | — | — | 163,934 | |||||||||||||||
Interest and preferred dividends payable | 15,407 | 3,989 | 2,931 | — | (11 | ) | [1] | 22,316 | |||||||||||||
Taxes accrued | 176,339 | 37,548 | 36,807 | — | (292 | ) | [3] | 250,402 | |||||||||||||
Regulatory liabilities | 191 | — | 441 | — | — | 632 | |||||||||||||||
Other | 48,282 | 9,866 | 16,094 | — | (9,096 | ) | [1] | 65,146 | |||||||||||||
Total current liabilities | 362,652 | 85,631 | 79,646 | — | (25,499 | ) | 502,430 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 429,515 | 90,119 | 83,238 | — | — | 602,872 | |||||||||||||||
Regulatory liabilities | 236,727 | 77,707 | 29,966 | — | (183 | ) | [1] | 344,217 | |||||||||||||
Unamortized tax credits | 49,865 | 14,902 | 14,725 | — | — | 79,492 | |||||||||||||||
Defined benefit pension and other | 446,888 | 72,547 | 75,960 | — | — | 595,395 | |||||||||||||||
postretirement benefit plans liability | |||||||||||||||||||||
Other | 52,446 | 10,658 | 13,532 | — | — | 76,636 | |||||||||||||||
Total deferred credits and other liabilities | 1,215,441 | 265,933 | 217,421 | — | (183 | ) | 1,698,612 | ||||||||||||||
Contributions in aid of construction | 283,739 | 94,475 | 88,218 | — | — | 466,432 | |||||||||||||||
Total capitalization and liabilities | $ | 4,396,815 | 924,885 | 832,977 | 101 | (564,321 | ) | $ | 5,590,457 | ||||||||||||
Consolidating balance sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,407 | 5,460 | 3,016 | — | — | $ | 51,883 | |||||||||||||
Plant and equipment | 3,558,569 | 1,136,923 | 1,006,383 | — | — | 5,701,875 | |||||||||||||||
Less accumulated depreciation | (1,222,129 | ) | (453,721 | ) | (435,379 | ) | — | — | (2,111,229 | ) | |||||||||||
Construction in progress | 124,494 | 7,709 | 11,030 | — | — | 143,233 | |||||||||||||||
Utility property, plant and equipment, net | 2,504,341 | 696,371 | 585,050 | — | — | 3,785,762 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,953 | 82 | 1,532 | — | — | 6,567 | |||||||||||||||
Total property, plant and equipment, net | 2,509,294 | 696,453 | 586,582 | — | — | 3,792,329 | |||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 523,674 | — | — | — | (523,674 | ) | [2] | — | |||||||||||||
Current assets | |||||||||||||||||||||
Cash and equivalents | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Advances to affiliates | 6,839 | 1,000 | — | — | (7,839 | ) | [1] | — | |||||||||||||
Customer accounts receivable, net | 121,282 | 28,088 | 26,078 | — | — | 175,448 | |||||||||||||||
Accrued unbilled revenues, net | 107,752 | 17,100 | 19,272 | — | — | 144,124 | |||||||||||||||
Other accounts receivable, net | 16,373 | 4,265 | 2,451 | — | (9,027 | ) | [1] | 14,062 | |||||||||||||
Fuel oil stock, at average cost | 99,613 | 14,178 | 20,296 | — | — | 134,087 | |||||||||||||||
Materials and supplies, at average cost | 37,377 | 6,883 | 14,784 | — | — | 59,044 | |||||||||||||||
Prepayments and other | 29,798 | 8,334 | 16,140 | — | (1,415 | ) | [3] | 52,857 | |||||||||||||
Regulatory assets | 54,979 | 6,931 | 7,828 | — | — | 69,738 | |||||||||||||||
Total current assets | 535,258 | 88,105 | 107,002 | 101 | (18,281 | ) | 712,185 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 381,346 | 64,552 | 60,288 | — | — | 506,186 | |||||||||||||||
Unamortized debt expense | 6,051 | 1,580 | 1,372 | — | — | 9,003 | |||||||||||||||
Other | 42,163 | 11,270 | 13,993 | — | — | 67,426 | |||||||||||||||
Total other long-term assets | 429,560 | 77,402 | 75,653 | — | — | 582,615 | |||||||||||||||
Total assets | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | [2] | $ | 1,593,564 | |||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,547 | 189,998 | 186,000 | — | — | 1,206,545 | |||||||||||||||
Total capitalization | 2,446,404 | 471,800 | 439,771 | 101 | (523,674 | ) | 2,834,402 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | 11,400 | — | — | — | 11,400 | |||||||||||||||
Short-term borrowings-affiliate | 1,000 | — | 6,839 | — | (7,839 | ) | [1] | — | |||||||||||||
Accounts payable | 145,062 | 24,383 | 20,114 | — | — | 189,559 | |||||||||||||||
Interest and preferred dividends payable | 15,190 | 3,885 | 2,585 | — | (8 | ) | [1] | 21,652 | |||||||||||||
Taxes accrued | 175,790 | 37,899 | 37,171 | — | (1,415 | ) | [3] | 249,445 | |||||||||||||
Regulatory liabilities | 1,705 | — | 211 | — | — | 1,916 | |||||||||||||||
Other | 48,443 | 9,033 | 15,424 | — | (9,019 | ) | [1] | 63,881 | |||||||||||||
Total current liabilities | 387,190 | 86,600 | 82,344 | — | (18,281 | ) | 537,853 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 359,621 | 79,947 | 67,593 | — | — | 507,161 | |||||||||||||||
Regulatory liabilities | 235,786 | 76,475 | 35,122 | — | — | 347,383 | |||||||||||||||
Unamortized tax credits | 44,931 | 14,245 | 14,363 | — | — | 73,539 | |||||||||||||||
Defined benefit pension and other | 202,396 | 28,427 | 31,339 | — | — | 262,162 | |||||||||||||||
postretirement benefit plans liability | |||||||||||||||||||||
Other | 63,374 | 14,703 | 13,658 | — | — | 91,735 | |||||||||||||||
Total deferred credits and other liabilities | 906,108 | 213,797 | 162,075 | — | — | 1,281,980 | |||||||||||||||
Contributions in aid of construction | 258,084 | 89,763 | 85,047 | — | — | 432,894 | |||||||||||||||
Total capitalization and liabilities | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Consolidating statements of changes in common stock equity | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
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 | 99,276 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | 99,276 | |||||||||||||
Other comprehensive loss, net of tax benefits | (938 | ) | (34 | ) | (71 | ) | — | 105 | (938 | ) | |||||||||||
Issuance of common stock, net of expenses | 44,001 | — | — | — | — | 44,001 | |||||||||||||||
Common stock dividends | (73,044 | ) | (27,738 | ) | (19,197 | ) | — | 46,935 | (73,044 | ) | |||||||||||
Balance, December 31, 2012 | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Net income (loss) for common stock | 122,929 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | 122,929 | |||||||||||||
Other comprehensive income, net of taxes | 1,578 | 145 | 123 | — | (268 | ) | 1,578 | ||||||||||||||
Issuance of common stock, net of expenses | 78,499 | — | 12,461 | — | (12,461 | ) | 78,499 | ||||||||||||||
Common stock dividends | (81,578 | ) | (14,387 | ) | (14,017 | ) | — | 28,404 | (81,578 | ) | |||||||||||
Balance, December 31, 2013 | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||||
Net income for common stock | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | 137,641 | ||||||||||||||
Other comprehensive loss, net of tax benefits | (563 | ) | (18 | ) | (5 | ) | — | 23 | (563 | ) | |||||||||||
Issuance of common stock, net of expenses | 39,994 | — | — | — | — | 39,994 | |||||||||||||||
Common stock dividends | (88,492 | ) | (11,627 | ) | (14,349 | ) | — | 25,976 | (88,492 | ) | |||||||||||
Balance, December 31, 2014 | $ | 1,682,144 | 281,846 | 256,692 | 101 | (538,639 | ) | $ | 1,682,144 | ||||||||||||
Consolidating statement of cash flows | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income | $ | 138,721 | 19,223 | 22,656 | — | (40,964 | ) | [2] | $ | 139,636 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||
Equity in earnings | (41,064 | ) | — | — | — | 40,964 | [2] | (100 | ) | ||||||||||||
Common stock dividends received from subsidiaries | 26,076 | — | — | — | (25,976 | ) | [2] | 100 | |||||||||||||
Depreciation of property, plant and equipment | 109,204 | 35,904 | 21,279 | — | — | 166,387 | |||||||||||||||
Other amortization | 1,749 | 2,596 | 3,746 | — | — | 8,091 | |||||||||||||||
Increase in deferred income taxes | 56,901 | 12,083 | 13,963 | — | — | 82,947 | |||||||||||||||
Change in tax credits, net | 4,998 | 680 | 384 | — | — | 6,062 | |||||||||||||||
Allowance for equity funds used during construction | (6,085 | ) | (472 | ) | (214 | ) | — | — | (6,771 | ) | |||||||||||
Change in cash overdraft | — | — | (1,038 | ) | — | — | (1,038 | ) | |||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease in accounts receivable | 16,213 | 7,150 | 3,483 | — | (103 | ) | [1] | 26,743 | |||||||||||||
Decrease in accrued unbilled revenues | 4,680 | 1,174 | 896 | — | — | 6,750 | |||||||||||||||
Decrease in fuel oil stock | 25,098 | 378 | 2,565 | — | — | 28,041 | |||||||||||||||
Decrease (increase) in materials and supplies | 4,223 | 219 | (2,648 | ) | — | — | 1,794 | ||||||||||||||
Increase in regulatory assets | (14,620 | ) | (3,357 | ) | 977 | — | — | (17,000 | ) | ||||||||||||
Decrease in accounts payable | (74,276 | ) | (8,490 | ) | (7,866 | ) | — | — | (90,632 | ) | |||||||||||
Change in prepaid and accrued income taxes and revenue taxes | (4,166 | ) | (3,251 | ) | 3,381 | — | — | (4,036 | ) | ||||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (562 | ) | — | (399 | ) | — | — | (961 | ) | ||||||||||||
Change in other assets and liabilities | (46,032 | ) | (12,085 | ) | (4,945 | ) | — | 103 | [1] | (62,959 | ) | ||||||||||
Net cash provided by operating activities | 201,058 | 51,752 | 56,220 | — | (25,976 | ) | 283,054 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (219,738 | ) | (48,050 | ) | (43,786 | ) | — | — | (311,574 | ) | |||||||||||
Contributions in aid of construction | 30,021 | 7,695 | 4,090 | — | — | 41,806 | |||||||||||||||
Advances from affiliates | (9,261 | ) | 1,000 | — | — | 8,261 | [1] | — | |||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||
Investment in consolidated subsidiary | — | — | — | — | — | — | |||||||||||||||
Net cash used in investing activities | (198,978 | ) | (39,355 | ) | (39,696 | ) | — | 8,261 | (269,768 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (88,492 | ) | (11,627 | ) | (14,349 | ) | — | 25,976 | [2] | (88,492 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | |||||||||||
Proceeds from issuance of common stock | 40,000 | — | — | — | — | 40,000 | |||||||||||||||
Proceeds from issuance of long-term debt | — | — | — | — | — | — | |||||||||||||||
Repayment of long-term debt | — | (11,400 | ) | — | — | — | (11,400 | ) | |||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (1,000 | ) | 10,500 | (1,239 | ) | — | (8,261 | ) | [2] | — | |||||||||||
Other | (337 | ) | (50 | ) | (75 | ) | — | — | (462 | ) | |||||||||||
Net cash used in financing activities | (50,909 | ) | (13,111 | ) | (16,044 | ) | — | 17,715 | (62,349 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (48,829 | ) | (714 | ) | 480 | — | — | (49,063 | ) | ||||||||||||
Cash and cash equivalents, January 1 | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Cash and cash equivalents, December 31 | $ | 12,416 | 612 | 633 | 101 | — | $ | 13,762 | |||||||||||||
Consolidating statement of cash flows | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 124,009 | 20,670 | 21,658 | (3 | ) | (41,410 | ) | [2] | $ | 124,924 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||||||||||||
Equity in earnings | (41,510 | ) | — | — | — | 41,410 | [2] | (100 | ) | ||||||||||||
Common stock dividends received from subsidiaries | 28,505 | — | — | — | (28,405 | ) | [2] | 100 | |||||||||||||
Depreciation of property, plant and equipment | 99,738 | 34,188 | 20,099 | — | — | 154,025 | |||||||||||||||
Other amortization | 554 | 1,979 | 2,544 | — | — | 5,077 | |||||||||||||||
Increase in deferred income taxes | 41,409 | 10,569 | 12,529 | — | — | 64,507 | |||||||||||||||
Change in tax credits, net | 5,152 | 818 | 1,047 | — | — | 7,017 | |||||||||||||||
Allowance for equity funds used during construction | (4,495 | ) | (643 | ) | (423 | ) | — | — | (5,561 | ) | |||||||||||
Change in cash overdraft | — | — | 1,038 | — | — | 1,038 | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | 49,974 | (1,459 | ) | 1,178 | — | (248 | ) | [1] | 49,445 | ||||||||||||
Decrease (increase) in accrued unbilled revenues | (7,152 | ) | (2,707 | ) | 33 | — | — | (9,826 | ) | ||||||||||||
Decrease in fuel oil stock | 23,563 | 1,307 | 2,462 | — | — | 27,332 | |||||||||||||||
Increase in materials and supplies | (5,598 | ) | (1,547 | ) | (814 | ) | — | — | (7,959 | ) | |||||||||||
Increase in regulatory assets | (46,047 | ) | (9,237 | ) | (10,177 | ) | — | — | (65,461 | ) | |||||||||||
Decrease in accounts payable | (6,136 | ) | (4,756 | ) | (9,936 | ) | — | — | (20,828 | ) | |||||||||||
Change in prepaid and accrued income taxes and revenue taxes | 4,632 | (4,114 | ) | (2,546 | ) | — | — | (2,028 | ) | ||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 2,325 | (1 | ) | (84 | ) | — | — | 2,240 | |||||||||||||
Change in other assets and liabilities | (17,941 | ) | (6,262 | ) | (7,544 | ) | — | 248 | [1] | (31,499 | ) | ||||||||||
Net cash provided by (used in) operating activities | 250,982 | 38,805 | 31,064 | (3 | ) | (28,405 | ) | 292,443 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (237,899 | ) | (52,135 | ) | (52,451 | ) | — | — | (342,485 | ) | |||||||||||
Contributions in aid of construction | 21,686 | 7,590 | 2,884 | — | — | 32,160 | |||||||||||||||
Advances from affiliates | 2,561 | 17,050 | — | — | (19,611 | ) | [1] | — | |||||||||||||
Other | — | (230 | ) | — | — | — | (230 | ) | |||||||||||||
Investment in consolidated subsidiary | (12,461 | ) | — | — | — | 12,461 | [2] | — | |||||||||||||
Net cash used in investing activities | (226,113 | ) | (27,725 | ) | (49,567 | ) | — | (7,150 | ) | (310,555 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (81,578 | ) | (14,388 | ) | (14,017 | ) | — | 28,405 | [2] | (81,578 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | |||||||||||
Proceeds from the issuance of common stock | 78,500 | — | 12,461 | — | (12,461 | ) | [2] | 78,500 | |||||||||||||
Proceeds from the issuance of long-term debt | 140,000 | 56,000 | 40,000 | — | — | 236,000 | |||||||||||||||
Repayment of long-term debt | (90,000 | ) | (56,000 | ) | (20,000 | ) | — | — | (166,000 | ) | |||||||||||
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (17,050 | ) | — | (2,561 | ) | — | 19,611 | [1] | — | ||||||||||||
Other | (681 | ) | (273 | ) | (195 | ) | — | — | (1,149 | ) | |||||||||||
Net cash provided by (used in) financing activities | 28,111 | (15,195 | ) | 15,307 | — | 35,555 | 63,778 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 52,980 | (4,115 | ) | (3,196 | ) | (3 | ) | — | 45,666 | ||||||||||||
Cash and cash equivalents, January 1 | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Cash and cash equivalents, December 31 | $ | 61,245 | 1,326 | 153 | 101 | — | $ | 62,825 | |||||||||||||
Consolidating statement of cash flows | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 100,356 | 16,746 | 13,008 | (3 | ) | (28,836 | ) | [2] | $ | 101,271 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||||||||||||
Equity in earnings | (28,936 | ) | — | — | — | 28,836 | [2] | (100 | ) | ||||||||||||
Common stock dividends received from subsidiaries | 47,035 | — | — | — | (46,935 | ) | [2] | 100 | |||||||||||||
Depreciation of property, plant and equipment | 90,783 | 33,337 | 20,378 | — | — | 144,498 | |||||||||||||||
Other amortization | 1,508 | 3,252 | 2,238 | — | — | 6,998 | |||||||||||||||
Impairment of utility assets | 29,000 | 5,500 | 5,500 | — | — | 40,000 | |||||||||||||||
Increase in deferred income taxes | 66,968 | 7,457 | 12,453 | — | — | 86,878 | |||||||||||||||
Change in tax credits, net | 5,006 | 522 | 547 | — | — | 6,075 | |||||||||||||||
Allowance for equity funds used during construction | (5,735 | ) | (585 | ) | (687 | ) | — | — | (7,007 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Increase in accounts receivable | (48,451 | ) | (1,106 | ) | (2,164 | ) | — | 4,717 | [1] | (47,004 | ) | ||||||||||
Decrease (increase) in accrued unbilled revenues | 2,728 | 4,106 | (3,306 | ) | — | — | 3,528 | ||||||||||||||
Decrease in fuel oil stock | 4,861 | 3,732 | 1,536 | — | — | 10,129 | |||||||||||||||
Increase in materials and supplies | (6,683 | ) | (636 | ) | (578 | ) | — | — | (7,897 | ) | |||||||||||
Increase in regulatory assets | (55,605 | ) | (9,649 | ) | (7,147 | ) | — | — | (72,401 | ) | |||||||||||
Increase (decrease) in accounts payable | (31,743 | ) | (8,110 | ) | 940 | — | — | (38,913 | ) | ||||||||||||
Change in prepaid and accrued income taxes and revenue taxes | 19,871 | 1,935 | 3,433 | — | — | 25,239 | |||||||||||||||
Decrease in defined benefit pension and other postretirement benefits plans liability | (434 | ) | (191 | ) | (119 | ) | — | — | (744 | ) | |||||||||||
Change in other assets and liabilities | (44,880 | ) | (11,143 | ) | (12,678 | ) | (1 | ) | (4,717 | ) | [1] | (73,419 | ) | ||||||||
Net cash provided by (used in) operating activities | 145,649 | 45,167 | 33,354 | (4 | ) | (46,935 | ) | 177,231 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (233,792 | ) | (41,060 | ) | (35,239 | ) | — | — | (310,091 | ) | |||||||||||
Contributions in aid of construction | 32,285 | 8,184 | 5,513 | — | — | 45,982 | |||||||||||||||
Advances from (to) affiliates | (9,400 | ) | 28,100 | 18,500 | — | (37,200 | ) | [1] | — | ||||||||||||
Net cash used in investing activities | (210,907 | ) | (4,776 | ) | (11,226 | ) | — | (37,200 | ) | (264,109 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (73,044 | ) | (27,738 | ) | (19,197 | ) | — | 46,935 | [2] | (73,044 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | |||||||||||
Proceeds from the issuance of long-term debt | 367,000 | 31,000 | 59,000 | — | — | 457,000 | |||||||||||||||
Proceeds from issuance of common stock | 44,000 | — | — | — | — | 44,000 | |||||||||||||||
Repayment of long-term debt | (259,580 | ) | (41,200 | ) | (67,720 | ) | — | — | (368,500 | ) | |||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (46,600 | ) | — | 9,400 | — | 37,200 | [1] | — | |||||||||||||
Other | (1,992 | ) | 139 | (377 | ) | — | — | (2,230 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 28,704 | (38,333 | ) | (19,275 | ) | — | 84,135 | 55,231 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (36,554 | ) | 2,058 | 2,853 | (4 | ) | — | (31,647 | ) | ||||||||||||
Cash and cash equivalents, January 1 | 44,819 | 3,383 | 496 | 108 | — | 48,806 | |||||||||||||||
Cash and cash equivalents, December 31 | $ | 8,265 | 5,441 | 3,349 | 104 | — | $ | 17,159 | |||||||||||||
Explanation of consolidating adjustments on consolidating schedules: | |||||||||||||||||||||
[1] | Eliminations of intercompany receivables and payables and other intercompany transactions. | ||||||||||||||||||||
[2] | Elimination of investment in subsidiaries, carried at equity. | ||||||||||||||||||||
[3] | Reclassification of accrued income taxes for financial statement presentation. |
Bank_segment_HEI_only
Bank segment (HEI only) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Bank Segment Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Bank segment (HEI only) | ||||||||||||||||||||||||||||||||||||||||
5 · Bank segment (HEI only) | ||||||||||||||||||||||||||||||||||||||||
Selected financial information | ||||||||||||||||||||||||||||||||||||||||
American Savings Bank, F.S.B. | ||||||||||||||||||||||||||||||||||||||||
Statements of Income Data | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 179,341 | $ | 172,969 | $ | 176,057 | ||||||||||||||||||||||||||||||||||
Interest and dividends on investment securities | 11,945 | 13,095 | 13,822 | |||||||||||||||||||||||||||||||||||||
Total interest and dividend income | 191,286 | 186,064 | 189,879 | |||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||
Interest on deposit liabilities | 5,077 | 5,092 | 6,423 | |||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 5,731 | 4,985 | 4,869 | |||||||||||||||||||||||||||||||||||||
Total interest expense | 10,808 | 10,077 | 11,292 | |||||||||||||||||||||||||||||||||||||
Net interest income | 180,478 | 175,987 | 178,587 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 174,352 | 174,480 | 165,704 | |||||||||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||||||||||
Fees from other financial services | 21,747 | 27,099 | 31,361 | |||||||||||||||||||||||||||||||||||||
Fee income on deposit liabilities | 19,249 | 18,363 | 17,775 | |||||||||||||||||||||||||||||||||||||
Fee income on other financial products | 8,131 | 8,405 | 6,577 | |||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | 3,949 | 3,928 | 3,981 | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | 2,913 | 8,309 | 14,628 | |||||||||||||||||||||||||||||||||||||
Gains on sale of investment securities | 2,847 | 1,226 | 134 | |||||||||||||||||||||||||||||||||||||
Other income, net | 2,375 | 4,753 | 1,204 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 61,211 | 72,083 | 75,660 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 79,885 | 82,910 | 75,979 | |||||||||||||||||||||||||||||||||||||
Occupancy | 17,197 | 16,747 | 17,179 | |||||||||||||||||||||||||||||||||||||
Data processing | 11,690 | 10,952 | 10,098 | |||||||||||||||||||||||||||||||||||||
Services | 10,269 | 9,015 | 9,866 | |||||||||||||||||||||||||||||||||||||
Equipment | 6,564 | 7,295 | 7,105 | |||||||||||||||||||||||||||||||||||||
Office supplies, printing and postage | 6,089 | 4,233 | 3,870 | |||||||||||||||||||||||||||||||||||||
Marketing | 3,999 | 3,373 | 3,260 | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 3,261 | 3,253 | 3,307 | |||||||||||||||||||||||||||||||||||||
Other expense | 20,990 | 21,726 | 21,679 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 159,944 | 159,504 | 152,343 | |||||||||||||||||||||||||||||||||||||
Income before income taxes | 75,619 | 87,059 | 89,021 | |||||||||||||||||||||||||||||||||||||
Income taxes | 24,127 | 29,525 | 30,384 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 51,492 | $ | 57,534 | $ | 58,637 | ||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 51,492 | $ | 57,534 | $ | 58,637 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on available-for sale investment securities: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(3,856), $9,037 and ($631), for 2014, 2013 and 2012, respectively | 5,840 | (13,686 | ) | 956 | ||||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $1,132, $488 and $53 for 2014, 2013 and 2012, respectively | (1,715 | ) | (738 | ) | (81 | ) | ||||||||||||||||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||||||||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $6,164, ($10,450) and $5,240 for 2014, 2013 and 2012, respectively | (9,336 | ) | 15,826 | (7,936 | ) | |||||||||||||||||||||||||||||||||||
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 $561, $1,187 and $684 for 2014, 2013 and 2012, respectively | 850 | 1,797 | 1,036 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (4,361 | ) | 3,199 | (6,025 | ) | |||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 47,131 | $ | 60,733 | $ | 52,612 | ||||||||||||||||||||||||||||||||||
Balance Sheets Data | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 107,233 | $ | 108,998 | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 54,230 | 47,605 | ||||||||||||||||||||||||||||||||||||||
Available-for-sale investment securities, at fair value | 550,394 | 529,007 | ||||||||||||||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle, at cost | 69,302 | 92,546 | ||||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 4,434,651 | 4,150,229 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (45,618 | ) | (40,116 | ) | ||||||||||||||||||||||||||||||||||||
Net loans | 4,389,033 | 4,110,113 | ||||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 8,424 | 5,302 | ||||||||||||||||||||||||||||||||||||||
Other | 304,435 | 268,063 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,565,241 | $ | 5,243,824 | ||||||||||||||||||||||||||||||||||||
Liabilities and shareholder’s equity | ||||||||||||||||||||||||||||||||||||||||
Deposit liabilities–noninterest-bearing | $ | 1,342,794 | $ | 1,214,418 | ||||||||||||||||||||||||||||||||||||
Deposit liabilities–interest-bearing | 3,280,621 | 3,158,059 | ||||||||||||||||||||||||||||||||||||||
Other borrowings | 290,656 | 244,514 | ||||||||||||||||||||||||||||||||||||||
Other | 116,527 | 105,679 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | 5,030,598 | 4,722,670 | ||||||||||||||||||||||||||||||||||||||
Commitments and contingencies (see “Litigation” below) | ||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Additional paid in capital | 338,411 | 336,053 | ||||||||||||||||||||||||||||||||||||||
Retained earnings | 212,789 | 197,297 | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | 462 | $ | (3,663 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans | (17,020 | ) | (16,558 | ) | (8,534 | ) | (12,197 | ) | ||||||||||||||||||||||||||||||||
Total shareholder’s equity | 534,643 | 521,154 | ||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,565,241 | $ | 5,243,824 | ||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | $ | 134,115 | $ | 129,963 | ||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 92,407 | 67,766 | ||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 3,196 | 3,616 | ||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,632 | 13,133 | ||||||||||||||||||||||||||||||||||||||
Mortgage-servicing rights | 11,540 | 11,687 | ||||||||||||||||||||||||||||||||||||||
Low-income housing equity investments | 32,457 | 14,543 | ||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans, net | 891 | 1,205 | ||||||||||||||||||||||||||||||||||||||
Other | 16,197 | 26,150 | ||||||||||||||||||||||||||||||||||||||
$ | 304,435 | $ | 268,063 | |||||||||||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||
Accrued expenses | $ | 37,880 | $ | 19,989 | ||||||||||||||||||||||||||||||||||||
Federal and state income taxes payable | 26,806 | 37,807 | ||||||||||||||||||||||||||||||||||||||
Cashier’s checks | 20,509 | 21,110 | ||||||||||||||||||||||||||||||||||||||
Advance payments by borrowers | 9,652 | 9,647 | ||||||||||||||||||||||||||||||||||||||
Other | 21,680 | 17,126 | ||||||||||||||||||||||||||||||||||||||
$ | 116,527 | $ | 105,679 | |||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale investment securities. The major components of investment securities were as follows: | ||||||||||||||||||||||||||||||||||||||||
Gross unrealized losses | ||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | Less than 12 months | 12 months or longer | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | unrealized | unrealized | fair | Number of issues | Fair value | Amount | Number of issues | Fair value | Amount | ||||||||||||||||||||||||||||||
cost | gains | losses | value | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 119,507 | $ | 1,092 | $ | (1,039 | ) | $ | 119,560 | 6 | $ | 41,970 | $ | (361 | ) | 5 | $ | 29,168 | $ | (678 | ) | |||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 430,120 | 5,653 | (4,939 | ) | 430,834 | 6 | 47,029 | (164 | ) | 29 | 172,623 | (4,775 | ) | |||||||||||||||||||||||||||
$ | 549,627 | $ | 6,745 | $ | (5,978 | ) | $ | 550,394 | 12 | $ | 88,999 | $ | (525 | ) | 34 | $ | 201,791 | $ | (5,453 | ) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 83,193 | $ | 174 | $ | (2,394 | ) | $ | 80,973 | 10 | $ | 70,799 | $ | (2,394 | ) | — | $ | — | $ | — | ||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 374,993 | 4,911 | (10,460 | ) | 369,444 | 36 | 228,543 | (8,819 | ) | 4 | 19,655 | (1,641 | ) | |||||||||||||||||||||||||||
Municipal bonds | 76,904 | 1,826 | (140 | ) | 78,590 | 3 | 14,478 | (140 | ) | — | — | — | ||||||||||||||||||||||||||||
$ | 535,090 | $ | 6,911 | $ | (12,994 | ) | $ | 529,007 | 49 | $ | 313,820 | $ | (11,353 | ) | 4 | $ | 19,655 | $ | (1,641 | ) | ||||||||||||||||||||
During 2014, ASB sold all of the municipal bonds held in its investment securities portfolio. | ||||||||||||||||||||||||||||||||||||||||
ASB does not believe that the investment securities that were in an unrealized loss position as of December 31, 2014, represent an other-than-temporary impairment. Total gross unrealized losses were primarily attributable to rising interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities. The gross unrealized losses reported for mortgage-related securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis. ASB did not recognize OTTI for 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations have contractual terms to maturity. Mortgage-related securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages. | ||||||||||||||||||||||||||||||||||||||||
The contractual maturities of available-for-sale investment securities were as follows: | ||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Cost | value | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Due after one year through five years | 34,953 | 35,007 | ||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 47,131 | 47,885 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 37,423 | 36,668 | ||||||||||||||||||||||||||||||||||||||
119,507 | 119,560 | |||||||||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA,FHLMC and GNMA | 430,120 | 430,834 | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 549,627 | $ | 550,394 | ||||||||||||||||||||||||||||||||||||
The proceeds, gross gains and losses from sales of available-for-sale investment securities were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 79.6 | $ | 71.4 | $ | 3.5 | ||||||||||||||||||||||||||||||||||
Gross gains | 2.8 | 1.2 | — | |||||||||||||||||||||||||||||||||||||
Gross losses | — | — | — | |||||||||||||||||||||||||||||||||||||
Interest income from taxable and non-taxable investment securities were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Taxable | $ | 11,666 | $ | 11,474 | $ | 12,309 | ||||||||||||||||||||||||||||||||||
Non-taxable | 279 | 1,621 | 1,513 | |||||||||||||||||||||||||||||||||||||
$ | 11,945 | $ | 13,095 | $ | 13,822 | |||||||||||||||||||||||||||||||||||
ASB pledged securities with a market value of approximately $88.6 million and $87.1 million as of December 31, 2014 and 2013, respectively, as collateral for public funds deposits, automated clearinghouse transactions with Bank of Hawaii, and deposits in ASB’s bankruptcy account with the Federal Reserve Bank of San Francisco. As of December 31, 2014 and 2013, securities with a carrying value of $230.2 million and $187.1 million, respectively, were pledged as collateral for securities sold under agreements to repurchase. | ||||||||||||||||||||||||||||||||||||||||
Stock in FHLB of Seattle. As of December 31, 2014 and 2013, ASB’s stock in FHLB of Seattle was carried at cost ($69.3 million and $92.5 million, respectively) because it can only be redeemed at par and it is a required investment based on measurements of ASB’s capital, assets and borrowing levels. Periodically and as conditions warrant, ASB reviews its investment in the stock of the FHLB of Seattle for impairment. ASB evaluated its investment in FHLB stock for OTTI as of December 31, 2014, consistent with its accounting policy. ASB did not recognize an OTTI loss for 2014 based on its evaluation of the underlying investment, including: | ||||||||||||||||||||||||||||||||||||||||
• | the net income and growth in retained earnings recorded by the FHLB of Seattle in the first nine months of 2014; | |||||||||||||||||||||||||||||||||||||||
• | compliance by the FHLB of Seattle with all of its regulatory capital requirements and being classified “adequately capitalized” by the Federal Housing Finance Agency (Finance Agency); | |||||||||||||||||||||||||||||||||||||||
• | being allowed by the Finance Agency to repurchase excess stock; | |||||||||||||||||||||||||||||||||||||||
• | commitments by the FHLB of Seattle to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB of Seattle; | |||||||||||||||||||||||||||||||||||||||
• | the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB of Seattle; | |||||||||||||||||||||||||||||||||||||||
• | the liquidity position of the FHLB of Seattle; and | |||||||||||||||||||||||||||||||||||||||
• | ASB’s intent and assessment of whether it will more likely than not be required to sell the FHLB stock before recovery of its par value. | |||||||||||||||||||||||||||||||||||||||
Deterioration in the FHLB of Seattle’s financial position may result in future impairment losses. | ||||||||||||||||||||||||||||||||||||||||
Loans receivable. | ||||||||||||||||||||||||||||||||||||||||
The components of loans receivable were summarized as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,044,205 | $ | 2,006,007 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 531,917 | 440,443 | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 818,815 | 739,331 | ||||||||||||||||||||||||||||||||||||||
Residential land | 16,240 | 16,176 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | 96,438 | 52,112 | ||||||||||||||||||||||||||||||||||||||
Residential construction | 18,961 | 12,774 | ||||||||||||||||||||||||||||||||||||||
Total real estate | 3,526,576 | 3,266,843 | ||||||||||||||||||||||||||||||||||||||
Commercial | 791,757 | 783,388 | ||||||||||||||||||||||||||||||||||||||
Consumer | 122,656 | 108,722 | ||||||||||||||||||||||||||||||||||||||
Total loans | 4,440,989 | 4,158,953 | ||||||||||||||||||||||||||||||||||||||
Less: Deferred fees and discounts | (6,338 | ) | (8,724 | ) | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (45,618 | ) | (40,116 | ) | ||||||||||||||||||||||||||||||||||||
Total loans, net | $ | 4,389,033 | $ | 4,110,113 | ||||||||||||||||||||||||||||||||||||
The Company’s policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential properties, the loan-to-value ratio may not exceed 80% of the lower of the appraised value or purchase price at origination. The Company is subject to the risk that the insurance company cannot satisfy the Company’s claim on policies. | ||||||||||||||||||||||||||||||||||||||||
ASB services real estate loans for investors (principal balance of $1.4 billion, $1.4 billion and $1.3 billion as of December 31, 2014, 2013 and 2012, respectively), which are not included in the accompanying consolidated balance sheets data. ASB reports fees earned for servicing such loans as income when the related mortgage loan payments are collected and charges loan servicing cost to expense as incurred. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, ASB had pledged loans with an amortized cost of approximately $1.9 billion and $1.7 billion, respectively, as collateral to secure advances from the FHLB of Seattle. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, the aggregate amount of loans to directors and executive officers of ASB and its affiliates and any related interests (as defined in Federal Reserve Board (FRB) Regulation O) of such individuals, was $49.6 million and $45.8 million, respectively. The $3.8 million increase in such loans in 2014 was attributed to new commitments and loans of $6.4 million to new and existing directors and executive officers, offset by closed lines of credits and repayments of $2.6 million. As of December 31, 2014 and 2013, $46.2 million and $40.5 million of the loan balances, respectively, were to related interests of individuals who are directors of ASB. All such loans were made at ASB’s normal credit terms. Management believes these loans do not represent more than a normal risk of collection. | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses. As discussed in Note 1, 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 (balances and changes) and financing receivables were as follows: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Residential 1-4 family | Commercial | Home equity | Residential land | Commercial construction | Residential construction | Commercial | Consumer | Unallo- cated | Total | ||||||||||||||||||||||||||||||
real estate | line of credit | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,534 | $ | 5,059 | $ | 5,229 | $ | 1,817 | $ | 2,397 | $ | 19 | $ | 15,803 | $ | 2,367 | $ | 1,891 | $ | 40,116 | ||||||||||||||||||||
Charge-offs | (987 | ) | — | (196 | ) | (81 | ) | — | — | (1,872 | ) | (2,414 | ) | — | (5,550 | ) | ||||||||||||||||||||||||
Recoveries | 1,180 | — | 752 | 469 | — | — | 1,636 | 889 | — | 4,926 | ||||||||||||||||||||||||||||||
Provision | (1,065 | ) | 3,895 | 1,197 | (330 | ) | 3,074 | 9 | (1,550 | ) | 2,787 | (1,891 | ) | 6,126 | ||||||||||||||||||||||||||
Ending balance | $ | 4,662 | $ | 8,954 | $ | 6,982 | $ | 1,875 | $ | 5,471 | $ | 28 | $ | 14,017 | $ | 3,629 | $ | — | $ | 45,618 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 951 | $ | 1,845 | $ | 46 | $ | 1,057 | $ | — | $ | — | $ | 760 | $ | 6 | $ | 4,665 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,711 | $ | 7,109 | $ | 6,936 | $ | 818 | $ | 5,471 | $ | 28 | $ | 13,257 | $ | 3,623 | $ | — | $ | 40,953 | ||||||||||||||||||||
Financing Receivables: | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,044,205 | $ | 531,917 | $ | 818,815 | $ | 16,240 | $ | 96,438 | $ | 18,961 | $ | 791,757 | $ | 122,656 | $ | 4,440,989 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 22,981 | $ | 5,112 | $ | 779 | $ | 7,850 | $ | — | $ | — | $ | 13,108 | $ | 16 | $ | 49,846 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,021,224 | $ | 526,805 | $ | 818,036 | $ | 8,390 | $ | 96,438 | $ | 18,961 | $ | 778,649 | $ | 122,640 | $ | 4,391,143 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | (485 | ) | — | — | (3,056 | ) | (2,717 | ) | — | (8,202 | ) | ||||||||||||||||||||||||
Recoveries | 1,881 | — | 358 | 868 | — | — | 1,089 | 630 | — | 4,826 | ||||||||||||||||||||||||||||||
Provision | (1,253 | ) | 2,094 | 1,160 | (2,841 | ) | 374 | 10 | 1,839 | 435 | (311 | ) | 1,507 | |||||||||||||||||||||||||||
Ending balance | $ | 5,534 | $ | 5,059 | $ | 5,229 | $ | 1,817 | $ | 2,397 | $ | 19 | $ | 15,803 | $ | 2,367 | $ | 1,891 | $ | 40,116 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 642 | $ | 1,118 | $ | — | $ | 1,332 | $ | — | $ | — | $ | 2,246 | $ | — | $ | 5,338 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,892 | $ | 3,941 | $ | 5,229 | $ | 485 | $ | 2,397 | $ | 19 | $ | 13,557 | $ | 2,367 | $ | 1,891 | $ | 34,778 | ||||||||||||||||||||
Financing Receivables: | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,006,007 | $ | 440,443 | $ | 739,331 | $ | 16,176 | $ | 52,112 | $ | 12,774 | $ | 783,388 | $ | 108,722 | $ | 4,158,953 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 20,317 | $ | 4,604 | $ | 1,179 | $ | 10,577 | $ | — | $ | — | $ | 21,225 | $ | 19 | $ | 57,921 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,985,690 | $ | 435,839 | $ | 738,152 | $ | 5,599 | $ | 52,112 | $ | 12,774 | $ | 762,163 | $ | 108,703 | $ | 4,101,032 | ||||||||||||||||||||||
Changes in the allowance for loan losses were as follows: | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses, January 1 | $ | 40,116 | $ | 41,985 | $ | 37,906 | ||||||||||||||||||||||||||||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | |||||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | ||||||||||||||||||||||||||||||||||||||||
Real estate loans | (1,137 | ) | (678 | ) | 3,828 | |||||||||||||||||||||||||||||||||||
Other loans | 1,761 | 4,054 | 4,976 | |||||||||||||||||||||||||||||||||||||
Net charge-offs | 624 | 3,376 | 8,804 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses, December 31 | $ | 45,618 | $ | 40,116 | $ | 41,985 | ||||||||||||||||||||||||||||||||||
Ratio of net charge-offs to average total loans | 0.01 | % | 0.09 | % | 0.24 | % | ||||||||||||||||||||||||||||||||||
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, commercial real estate and commercial construction loans. | ||||||||||||||||||||||||||||||||||||||||
Each loan is assigned an Asset Quality Rating (AQR) reflecting the likelihood of repayment or orderly liquidation of that loan transaction pursuant to regulatory credit classifications: Pass, Special Mention, Substandard, Doubtful, and Loss. The AQR is a function of the PD Model rating, the LGD, and possible non-model factors which impact the ultimate collectability of the loan such as character of the business owner/guarantor, interim period performance, litigation, tax liens, and major changes in business and economic conditions. 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. Special Mention loans have potential weaknesses that, if left uncorrected, could jeopardize the liquidation of the debt. Substandard loans have well-defined weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the Bank may sustain some loss. An asset classified Doubtful has the weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||||||||||||||||||
The credit risk profile by internally assigned grade for loans was as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | ||||||||||||||||||||||||||||||||||
real estate | construction | real estate | construction | |||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||
Pass | $ | 493,105 | $ | 79,312 | $ | 743,334 | $ | 375,217 | $ | 52,112 | $ | 703,053 | ||||||||||||||||||||||||||||
Special mention | 5,209 | — | 16,095 | 33,436 | — | 17,634 | ||||||||||||||||||||||||||||||||||
Substandard | 33,603 | 17,126 | 31,665 | 28,020 | — | 59,663 | ||||||||||||||||||||||||||||||||||
Doubtful | — | — | 663 | 3,770 | — | 3,038 | ||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 531,917 | $ | 96,438 | $ | 791,757 | $ | 440,443 | $ | 52,112 | $ | 783,388 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,124 | $ | 1,732 | $ | 12,632 | $ | 20,488 | $ | 2,023,717 | $ | 2,044,205 | $ | — | ||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 531,917 | 531,917 | — | |||||||||||||||||||||||||||||||||
Home equity line of credit | 1,341 | 501 | 194 | 2,036 | 816,779 | 818,815 | — | |||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | 16,240 | 16,240 | — | |||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 96,438 | 96,438 | — | |||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 18,961 | 18,961 | — | |||||||||||||||||||||||||||||||||
Commercial | 699 | 145 | 569 | 1,413 | 790,344 | 791,757 | — | |||||||||||||||||||||||||||||||||
Consumer | 829 | 333 | 403 | 1,565 | 121,091 | 122,656 | — | |||||||||||||||||||||||||||||||||
Total loans | $ | 8,993 | $ | 2,711 | $ | 13,798 | $ | 25,502 | $ | 4,415,487 | $ | 4,440,989 | $ | — | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,728 | $ | 622 | $ | 15,411 | $ | 18,761 | $ | 1,987,246 | $ | 2,006,007 | $ | — | ||||||||||||||||||||||||||
Commercial real estate | — | — | 3,770 | 3,770 | 436,673 | 440,443 | — | |||||||||||||||||||||||||||||||||
Home equity line of credit | 765 | 312 | 960 | 2,037 | 737,294 | 739,331 | — | |||||||||||||||||||||||||||||||||
Residential land | 184 | 48 | 2,756 | 2,988 | 13,188 | 16,176 | — | |||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 52,112 | 52,112 | — | |||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 12,774 | 12,774 | — | |||||||||||||||||||||||||||||||||
Commercial | 1,668 | 612 | 3,026 | 5,306 | 778,082 | 783,388 | — | |||||||||||||||||||||||||||||||||
Consumer | 436 | 158 | 304 | 898 | 107,824 | 108,722 | — | |||||||||||||||||||||||||||||||||
Total loans | $ | 5,781 | $ | 1,752 | $ | 26,227 | $ | 33,760 | $ | 4,125,193 | $ | 4,158,953 | $ | — | ||||||||||||||||||||||||||
The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due, and TDR loans was as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 19,253 | $ | 19,679 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,112 | 4,439 | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,087 | 2,060 | ||||||||||||||||||||||||||||||||||||||
Residential land | 720 | 3,161 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | ||||||||||||||||||||||||||||||||||||||
Residential construction | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial | 10,053 | 18,781 | ||||||||||||||||||||||||||||||||||||||
Consumer | 661 | 401 | ||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 36,886 | $ | 48,521 | ||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | ||||||||||||||||||||||||||||||||||||||
Residential land | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | ||||||||||||||||||||||||||||||||||||||
Residential construction | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial | — | — | ||||||||||||||||||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||||||||||||||||||
Total accruing loans 90 days or more past due | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 13,525 | $ | 9,744 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 480 | 171 | ||||||||||||||||||||||||||||||||||||||
Residential land | 7,130 | 7,476 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | ||||||||||||||||||||||||||||||||||||||
Residential construction | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial | 2,972 | 1,649 | ||||||||||||||||||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||||||||||||||||||
Total troubled debt restructured loans not included above | $ | 24,107 | $ | 19,040 | ||||||||||||||||||||||||||||||||||||
The total carrying amount and the total unpaid principal balance of impaired loans were as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||
investment | principal | Allow- | recorded | income | investment | principal | allow- | recorded | income | |||||||||||||||||||||||||||||||
balance | ance | investment | recognized* | balance | ance | investment | recognized* | |||||||||||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 11,654 | $ | 12,987 | $ | — | $ | 9,056 | $ | 227 | $ | 9,708 | $ | 12,144 | $ | — | $ | 11,674 | $ | 386 | ||||||||||||||||||||
Commercial real estate | 571 | 626 | — | 194 | — | — | — | — | 802 | — | ||||||||||||||||||||||||||||||
Home equity line of credit | 363 | 606 | — | 402 | 5 | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||
Residential land | 2,344 | 3,200 | — | 2,728 | 172 | 2,622 | 3,612 | — | 6,675 | 482 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial | 8,235 | 11,471 | — | 5,204 | 38 | 3,466 | 4,715 | — | 4,837 | 12 | ||||||||||||||||||||||||||||||
Consumer | — | — | — | 8 | — | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||
23,167 | 28,890 | — | 17,592 | 442 | 16,487 | 21,717 | — | 24,631 | 882 | |||||||||||||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 11,327 | 11,347 | 951 | 8,822 | 419 | 6,216 | 6,236 | 642 | 6,455 | 372 | ||||||||||||||||||||||||||||||
Commercial real estate | 4,541 | 4,541 | 1,845 | 3,415 | 478 | 4,604 | 4,686 | 1,118 | 5,745 | 152 | ||||||||||||||||||||||||||||||
Home equity line of credit | 416 | 420 | 46 | 132 | 6 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential land | 5,506 | 5,584 | 1,057 | 6,415 | 484 | 7,452 | 7,623 | 1,332 | 6,844 | 409 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial | 4,873 | 5,211 | 760 | 12,089 | 438 | 17,759 | 20,640 | 2,246 | 15,635 | 139 | ||||||||||||||||||||||||||||||
Consumer | 16 | 16 | 6 | 9 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
26,679 | 27,119 | 4,665 | 30,882 | 1,825 | 36,031 | 39,185 | 5,338 | 34,679 | 1,072 | |||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 22,981 | 24,334 | 951 | 17,878 | 646 | 15,924 | 18,380 | 642 | 18,129 | 758 | ||||||||||||||||||||||||||||||
Commercial real estate | 5,112 | 5,167 | 1,845 | 3,609 | 478 | 4,604 | 4,686 | 1,118 | 6,547 | 152 | ||||||||||||||||||||||||||||||
Home equity line of credit | 779 | 1,026 | 46 | 534 | 11 | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||
Residential land | 7,850 | 8,784 | 1,057 | 9,143 | 656 | 10,074 | 11,235 | 1,332 | 13,519 | 891 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial | 13,108 | 16,682 | 760 | 17,293 | 476 | 21,225 | 25,355 | 2,246 | 20,472 | 151 | ||||||||||||||||||||||||||||||
Consumer | 16 | 16 | 6 | 17 | — | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||
$ | 49,846 | $ | 56,009 | $ | 4,665 | $ | 48,474 | $ | 2,267 | $ | 52,518 | $ | 60,902 | $ | 5,338 | $ | 59,310 | $ | 1,954 | |||||||||||||||||||||
* Since loan was classified as impaired. | ||||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings. A loan modification is deemed to be a 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 generally 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 during 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
Number | Outstanding recorded investment | Net increase in ALLL (as of period end) | Number | Outstanding recorded investment | Net increase in ALLL (as of period end) | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | of | Pre-modification | Post-modification | of | Pre-modification | Post-modification | ||||||||||||||||||||||||||||||||||
contracts | contracts | |||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 38 | $ | 10,680 | $ | 10,737 | $ | 163 | 34 | $ | 8,876 | $ | 8,957 | $ | 297 | ||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity line of credit | 8 | 502 | 502 | 42 | 5 | 637 | 390 | — | ||||||||||||||||||||||||||||||||
Residential land | 18 | 4,304 | 4,304 | 242 | 20 | 6,215 | 6,206 | 131 | ||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Commercial | 7 | 3,827 | 3,827 | 13 | 7 | 4,646 | 4,646 | 94 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
71 | $ | 19,313 | $ | 19,370 | $ | 460 | 66 | $ | 20,374 | $ | 20,199 | $ | 522 | |||||||||||||||||||||||||||
Loans modified in TDRs that experienced a payment default of 90 days or more in 2014 and 2013, and for which the payment default occurred within one year of the modification, were as follows: | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that subsequently defaulted | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 390 | — | $ | — | ||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | 1 | 67 | ||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial | 1 | 14 | 2 | 660 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||||||||||||||
2 | $ | 404 | 3 | $ | 727 | |||||||||||||||||||||||||||||||||||
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 $0.5 million at December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||
Mortgage servicing rights. In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these sales, but may retain the servicing rights of the loans sold. | ||||||||||||||||||||||||||||||||||||||||
ASB received $155.0 million, $273.8 million, and $513.0 million of proceeds from the sale of residential mortgages in 2014, 2013, and 2012, respectively, and recognized gains on such loans of $2.9 million, $8.3 million, and $14.6 million in 2014, 2013, and 2012, respectively. Repurchased mortgage loans in 2014, 2013, and 2012 were $0.5 million, $1.9 million and $0.4 million, respectively. | ||||||||||||||||||||||||||||||||||||||||
Mortgage servicing fees, a component of other income, net, were $3.5 million, $3.3 million, and $2.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||
Changes in carrying value of mortgage servicing rights were as follows: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated amortization | Valuation allowance | Net | ||||||||||||||||||||||||||||||||||||
carrying amount | carrying amount | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | $ | 27,185 | $ | (15,436 | ) | $ | (209 | ) | $ | 11,540 | ||||||||||||||||||||||||||||||
31-Dec-13 | $ | 25,644 | $ | (13,706 | ) | $ | (251 | ) | $ | 11,687 | ||||||||||||||||||||||||||||||
Changes related to mortgage servicing rights were as follows: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1 | $ | 11,938 | $ | 11,316 | $ | 8,402 | ||||||||||||||||||||||||||||||||||
Amount capitalized | 1,637 | 2,611 | 4,845 | |||||||||||||||||||||||||||||||||||||
Amortization | (1,731 | ) | (1,802 | ) | (1,750 | ) | ||||||||||||||||||||||||||||||||||
Other-than-temporary impairment | (95 | ) | (187 | ) | (181 | ) | ||||||||||||||||||||||||||||||||||
Carrying amount before valuation allowance, December 31 | 11,749 | 11,938 | 11,316 | |||||||||||||||||||||||||||||||||||||
Valuation allowance for mortgage servicing rights | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1 | 251 | 498 | 175 | |||||||||||||||||||||||||||||||||||||
Provision (recovery) | 53 | (60 | ) | 504 | ||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment | (95 | ) | (187 | ) | (181 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31 | 209 | 251 | 498 | |||||||||||||||||||||||||||||||||||||
Net carrying value of mortgage servicing rights | $ | 11,540 | $ | 11,687 | $ | 10,818 | ||||||||||||||||||||||||||||||||||
The estimated aggregate amortization expenses of mortgage servicing rights for 2015, 2016, 2017, 2018 and 2019 are $1.7 million, $1.5 million, $1.3 million, $1.1 million and $1.0 million, respectively. | ||||||||||||||||||||||||||||||||||||||||
ASB capitalizes mortgage servicing rights acquired through either the purchase or origination of mortgage loans for sale with servicing rights retained. Changes in mortgage interest rates impact the value of ASB’s mortgage servicing rights. Rising interest rates typically result in slower prepayment speeds in the loans being serviced for others which increases the value of mortgage servicing rights, whereas declining interest rates typically result in faster prepayment speeds which decrease the value of mortgage servicing rights and increase the amortization of the mortgage servicing rights. | ||||||||||||||||||||||||||||||||||||||||
Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights were as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,391,030 | $ | 1,357,003 | ||||||||||||||||||||||||||||||||||||
Weighted average note rate | 4.07 | % | 4.07 | % | ||||||||||||||||||||||||||||||||||||
Weighted average discount rate | 9.6 | % | 9.8 | % | ||||||||||||||||||||||||||||||||||||
Weighted average prepayment speed | 9.5 | % | 8.6 | % | ||||||||||||||||||||||||||||||||||||
The sensitivity analysis of fair value of MSR to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Prepayment rate: | ||||||||||||||||||||||||||||||||||||||||
25 basis points adverse rate change | $ | (757 | ) | $ | (732 | ) | ||||||||||||||||||||||||||||||||||
50 basis points adverse change | (1,524 | ) | (1,492 | ) | ||||||||||||||||||||||||||||||||||||
Discount rate: | ||||||||||||||||||||||||||||||||||||||||
25 basis points adverse rate change | (140 | ) | (154 | ) | ||||||||||||||||||||||||||||||||||||
50 basis points adverse change | (278 | ) | (306 | ) | ||||||||||||||||||||||||||||||||||||
The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis typically cannot be extrapolated because the relationship of a change in one key assumption to the changes in the fair value of MSRs typically is not linear. | ||||||||||||||||||||||||||||||||||||||||
Deposit liabilities. The summarized components of deposit liabilities were as follows: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Weighted-average stated rate | Amount | Weighted-average stated rate | Amount | ||||||||||||||||||||||||||||||||||||
Savings | 0.06 | % | $ | 1,923,062 | 0.06 | % | $ | 1,826,907 | ||||||||||||||||||||||||||||||||
Checking | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing | 0.02 | 768,787 | 0.02 | 721,700 | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing | — | 665,005 | — | 643,628 | ||||||||||||||||||||||||||||||||||||
Commercial checking | — | 677,789 | — | 570,790 | ||||||||||||||||||||||||||||||||||||
Money market | 0.12 | 158,010 | 0.13 | 182,546 | ||||||||||||||||||||||||||||||||||||
Term certificates | 0.83 | 430,762 | 0.8 | 426,906 | ||||||||||||||||||||||||||||||||||||
0.11 | % | $ | 4,623,415 | 0.11 | % | $ | 4,372,477 | |||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, term certificates of $100,000 or more totaled $120 million and $102 million, respectively. | ||||||||||||||||||||||||||||||||||||||||
The approximate scheduled maturities of term certificates outstanding at December 31, 2014 were as follows: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
2015 | $ | 255,896 | ||||||||||||||||||||||||||||||||||||||
2016 | 55,614 | |||||||||||||||||||||||||||||||||||||||
2017 | 44,315 | |||||||||||||||||||||||||||||||||||||||
2018 | 16,949 | |||||||||||||||||||||||||||||||||||||||
2019 | 54,979 | |||||||||||||||||||||||||||||||||||||||
Thereafter | 3,009 | |||||||||||||||||||||||||||||||||||||||
$ | 430,762 | |||||||||||||||||||||||||||||||||||||||
Interest expense on deposit liabilities by type of deposit was as follows: | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Term certificates | $ | 3,603 | $ | 3,702 | $ | 4,865 | ||||||||||||||||||||||||||||||||||
Savings | 1,134 | 1,052 | 1,128 | |||||||||||||||||||||||||||||||||||||
Money market | 214 | 232 | 319 | |||||||||||||||||||||||||||||||||||||
Interest-bearing checking | 126 | 106 | 111 | |||||||||||||||||||||||||||||||||||||
$ | 5,077 | $ | 5,092 | $ | 6,423 | |||||||||||||||||||||||||||||||||||
Other borrowings. | ||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase. 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 | Net amount of | |||||||||||||||||||||||||||||||||||||
recognized liabilities | offset in the | liabilities presented | ||||||||||||||||||||||||||||||||||||||
Balance Sheet | in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | $ | 191 | $ | — | $ | 191 | ||||||||||||||||||||||||||||||||||
31-Dec-13 | 145 | — | 145 | |||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Government entities | 56 | 56 | — | — | ||||||||||||||||||||||||||||||||||||
Commercial account holders | 85 | 85 | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 191 | $ | 191 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 51 | $ | 51 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Commercial account holders | 94 | 94 | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 145 | $ | 145 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
The securities underlying the agreements to repurchase are book-entry securities and were delivered by appropriate entry into the counterparties’ accounts and segregated safekeeping accounts at the FHLB of Seattle. 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 consolidated balance sheets. The securities underlying the agreements to repurchase continue to be reflected in ASB’s asset accounts. | ||||||||||||||||||||||||||||||||||||||||
Information concerning securities sold under agreements to repurchase, which provided for the repurchase of identical securities, was as follows: | ||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Amount outstanding as of December 31 | $ | 191 | $ | 145 | $ | 146 | ||||||||||||||||||||||||||||||||||
Average amount outstanding during the year | $ | 155 | $ | 147 | $ | 173 | ||||||||||||||||||||||||||||||||||
Maximum amount outstanding as of any month-end | $ | 195 | $ | 151 | $ | 189 | ||||||||||||||||||||||||||||||||||
Weighted-average interest rate as of December 31 | 1.45 | % | 1.75 | % | 1.74 | % | ||||||||||||||||||||||||||||||||||
Weighted-average interest rate during the year | 1.67 | % | 1.74 | % | 1.56 | % | ||||||||||||||||||||||||||||||||||
Weighted-average remaining days to maturity as of December 31 | 343 | 367 | 489 | |||||||||||||||||||||||||||||||||||||
As of December 31, 2014, securities sold under agreements to repurchase were summarized as follows: | ||||||||||||||||||||||||||||||||||||||||
Maturity | Repurchase liability | Weighted-average | Collateralized by | |||||||||||||||||||||||||||||||||||||
interest rate | mortgage-related | |||||||||||||||||||||||||||||||||||||||
securities and federal | ||||||||||||||||||||||||||||||||||||||||
agency obligations at fair value plus | ||||||||||||||||||||||||||||||||||||||||
accrued interest | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Overnight | $ | 84,758 | 0.15 | % | $ | 114,883 | ||||||||||||||||||||||||||||||||||
1 to 29 days | — | — | — | |||||||||||||||||||||||||||||||||||||
30 to 90 days | — | — | — | |||||||||||||||||||||||||||||||||||||
Over 90 days | 105,898 | 1 | 2.5 | 115,842 | ||||||||||||||||||||||||||||||||||||
$ | 190,656 | 1.45 | % | $ | 230,725 | |||||||||||||||||||||||||||||||||||
1 | $50.3 million callable quarterly at par until maturity in 2016. | |||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank. | ||||||||||||||||||||||||||||||||||||||||
FHLB advances are fixed rate for a specific term and consist of the following: | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Weighted-average | Amount | ||||||||||||||||||||||||||||||||||||||
stated rate | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Due in | ||||||||||||||||||||||||||||||||||||||||
2015 | — | % | $ | — | ||||||||||||||||||||||||||||||||||||
2016 | — | — | ||||||||||||||||||||||||||||||||||||||
2017 | 4.28 | 50,000 | 1 | |||||||||||||||||||||||||||||||||||||
2018 | 1.95 | 50,000 | ||||||||||||||||||||||||||||||||||||||
2019 | — | — | ||||||||||||||||||||||||||||||||||||||
Thereafter | — | — | ||||||||||||||||||||||||||||||||||||||
3.12 | % | $ | 100,000 | |||||||||||||||||||||||||||||||||||||
1 | Callable quarterly at par until maturity in 2017. | |||||||||||||||||||||||||||||||||||||||
ASB and the FHLB of Seattle are parties to an Advances, Security and Deposit Agreement (Advances Agreement), which applies to currently outstanding and future advances, and governs the terms and conditions under which ASB borrows and the FHLB of Seattle makes loans or advances from time to time. Under the Advances Agreement, ASB agrees to abide by the FHLB of Seattle’s credit policies, and makes certain warranties and representations to the FHLB of Seattle. Upon the occurrence of and during the continuation of an “Event of Default” (which term includes any event of nonpayment of interest or principal of any advance when due or failure to perform any promise or obligation under the Advances Agreement or other credit arrangements between the parties), the FHLB of Seattle may, at its option, declare all indebtedness and accrued interest thereon, including any prepayment fees or charges, to be immediately due and payable. Advances from the FHLB of Seattle are collateralized by loans and stock in the FHLB of Seattle. As of December 31, 2014 and 2013, ASB’s available FHLB of Seattle borrowing capacity was $1.2 billion and $1.1 billion, respectively. ASB is required to obtain and hold a specific number of shares of capital stock of the FHLB of Seattle. ASB was in compliance with all Advances Agreement requirements as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
Common stock equity. In 1988, HEI agreed with the OTS predecessor regulatory agency at the time, to contribute additional capital to ASB up to a maximum aggregate amount of approximately $65.1 million (Capital Maintenance Agreement). As of December 31, 2014, as a result of capital contributions in prior years, HEI’s maximum obligation to contribute additional capital under the Capital Maintenance Agreement has been reduced to approximately $28.3 million. As of December 31, 2014, ASB was in compliance with the minimum capital requirements under OCC regulations. | ||||||||||||||||||||||||||||||||||||||||
In 2014, ASB paid cash dividends of $36 million to HEI, compared to cash dividends of $40 million in 2013. The FRB and OCC approved the dividends. | ||||||||||||||||||||||||||||||||||||||||
Related-party transactions. HEI charged ASB $2.3 million, $2.3 million and $1.9 million for general management and administrative services in 2014, 2013 and 2012, respectively. The amounts charged by HEI for services performed by HEI employees to its subsidiaries are allocated primarily on the basis of time expended in providing such services. | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments. ASB enters into interest rate lock commitments (IRLCs) with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed securities to investors to hedge against the inherent interest rate and pricing risk associated with selling loans. | ||||||||||||||||||||||||||||||||||||||||
ASB enters into IRLCs 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. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose ASB to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. | ||||||||||||||||||||||||||||||||||||||||
ASB enters into forward commitments to hedge the interest rate risk for rate locked mortgage applications in process and closed mortgage loans held for sale. These commitments are primarily forward sales of to-be-announced mortgage backed securities. Generally, when mortgage loans are closed, the forward commitment is liquidated and replaced with a mandatory delivery forward sale of the mortgage to a secondary market investor. In some cases, a best-efforts forward sale agreement is utilized as the forward commitment. These commitments are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. | ||||||||||||||||||||||||||||||||||||||||
Changes in the fair value of IRLCs and forward commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. | ||||||||||||||||||||||||||||||||||||||||
The notional amount and fair value of ASB’s derivative financial instruments were as follows: | ||||||||||||||||||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Notional amount | Fair value | Notional amount | Fair value | ||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 29,330 | $ | 390 | $ | 25,070 | $ | 464 | ||||||||||||||||||||||||||||||||
Forward commitments | 32,833 | (106 | ) | 26,018 | 139 | |||||||||||||||||||||||||||||||||||
ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows: | ||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated | ||||||||||||||||||||||||||||||||||||||||
as Hedging Instruments 1 | ||||||||||||||||||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Asset derivatives | Liability derivatives | Asset derivatives | Liability derivatives | ||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 393 | $ | 3 | $ | 488 | $ | 24 | ||||||||||||||||||||||||||||||||
Forward commitments | 5 | 111 | 141 | 2 | ||||||||||||||||||||||||||||||||||||
$ | 398 | $ | 114 | $ | 629 | $ | 26 | |||||||||||||||||||||||||||||||||
1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. | ||||||||||||||||||||||||||||||||||||||||
The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income: | ||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated | Location of net gains | |||||||||||||||||||||||||||||||||||||||
as Hedging Instruments | (losses) recognized in | Years ended December 31 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | the Statements of Income | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Mortgage banking income | $ | (74 | ) | $ | 464 | $ | — | ||||||||||||||||||||||||||||||||
Forward commitments | Mortgage banking income | (245 | ) | 139 | — | |||||||||||||||||||||||||||||||||||
$ | (319 | ) | $ | 603 | $ | — | ||||||||||||||||||||||||||||||||||
There were no significant gains or losses on derivatives in 2012. | ||||||||||||||||||||||||||||||||||||||||
Commitments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitments. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company minimizes its exposure to loss under these commitments by requiring that customers meet certain conditions prior to disbursing funds. The amount of collateral, if any, is based on a credit evaluation of the borrower and may include residential real estate, accounts receivable, inventory and property, plant and equipment. | ||||||||||||||||||||||||||||||||||||||||
Letters of credit are conditional commitments issued by the Company to guarantee payment and performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral supporting those commitments for which collateral is deemed necessary. | ||||||||||||||||||||||||||||||||||||||||
The following is a summary of outstanding off-balance sheet arrangements: | ||||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Unfunded commitments to extend credit: | ||||||||||||||||||||||||||||||||||||||||
Home equity line of credit | $ | 1,089,633 | $ | 1,011,334 | ||||||||||||||||||||||||||||||||||||
Commercial and commercial real estate | 526,133 | 527,987 | ||||||||||||||||||||||||||||||||||||||
Consumer | 56,312 | 58,080 | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 20,524 | 14,241 | ||||||||||||||||||||||||||||||||||||||
Commercial and financial standby letters of credit | 20,082 | 15,747 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,712,684 | $ | 1,627,389 | ||||||||||||||||||||||||||||||||||||
Guarantees. In October 2007, ASB, as a member financial institution of Visa U.S.A. Inc., received restricted shares of Visa, Inc. (Visa) as a result of a restructuring of Visa U.S.A. Inc. in preparation for an initial public offering by Visa. As a part of the restructuring, ASB entered into a judgment and loss sharing agreement with Visa in order to apportion financial responsibilities arising from any potential adverse judgment or negotiated settlements related to indemnified litigation involving Visa. In November 2012, a federal judge granted preliminary approval to a proposed settlement between merchants and Visa over credit card fees and in December 2013, a federal judge granted final approval to the settlement. Some merchants and trade organizations filed a notice of appeal shortly after the approval was issued. As of December 31, 2014, ASB had accrued a reserve of $1.1 million related to the agreement. Because the extent of ASB’s obligations under this agreement depends entirely upon the occurrence of future events, ASB’s maximum potential future liability under this agreement is not determinable. | ||||||||||||||||||||||||||||||||||||||||
Contingencies. 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. ASB filed a motion to dismiss the lawsuit on the basis that ASB’s overdraft practices are governed by federal regulations established for federal savings banks which preempt the customer’s state law claims. In July 2011, the Circuit Court denied ASB's motion without prejudice and ASB appealed that decision. ASB's appeal is pending before the Hawaii Supreme Court. However, in December 2014, through a voluntary mediation process, ASB reached a tentative settlement of the claims. The tentative settlement, which remains subject to final court approval, provides for a payment of $2.0 million into a class settlement fund, the proceeds of which will be used to refund class members and pay attorneys’ fees and administrative and other costs, in exchange for a complete release of all claims asserted against ASB. As of December 2014, the $2.0 million tentative settlement amount was fully reserved by ASB. | ||||||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||||
Federal Deposit Insurance Corporation assessment. In February 2011, the Federal Deposit Insurance Corporation (FDIC) finalized rules to change its assessment base from total domestic deposits to average total assets minus average tangible equity, as required in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Assessment rates were reduced to a range of 2.5 to 9 basis points on the new assessment base for financial institutions in the lowest risk category. Financial institutions in the highest risk category have assessment rates of 30 to 45 basis points. The new rate schedule was effective April 1, 2011. For the years ended December 31, 2014 and 2013, ASB’s FDIC insurance assessments were $3.0 million and $2.9 million, respectively. The FDIC may impose special assessments in the future if it is deemed necessary to ensure the Deposit Insurance Fund ratio does not decline to a level that is close to zero or that could otherwise undermine public confidence in federal deposit insurance. |
Unconsolidated_variable_intere
Unconsolidated variable interest entities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||||
Unconsolidated variable interest entities | |||||||||||||
6 · Unconsolidated variable interest entities | |||||||||||||
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 and 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 the Utilities 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 holder of 100% of the trust common securities, 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 VIEs. Trust III’s balance sheet as of December 31, 2014 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 statement for 2014 consisted of $3.4 million of interest income received from the 2004 Debentures; $3.3 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. So 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 any of the Utilities 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 December 31, 2014, the Utilities had seven PPAs for firm capacity and other PPAs with smaller IPPs and Schedule Q providers (i.e., customers with cogeneration and/or small power production facilities with a capacity of 100 kilowatts (kWs) or less who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. Approximately 90% 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: | |||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | ||||||||||
(in millions) | |||||||||||||
AES Hawaii | $ | 145 | $ | 134 | $ | 146 | |||||||
Kalaeloa | 279 | 301 | 310 | ||||||||||
HEP | 51 | 51 | 65 | ||||||||||
HPOWER | 66 | 61 | 65 | ||||||||||
Other IPPs | 181 | 164 | 138 | ||||||||||
Total IPPs | $ | 722 | $ | 711 | $ | 724 | |||||||
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. Other IPPs, including the three largest, declined to provide the information necessary for Hawaiian Electric to determine the applicability of accounting standards for VIEs. | |||||||||||||
Since 2004, Hawaiian Electric has continued its efforts to obtain from the IPPs the information necessary to make the determinations required under accounting standards for VIEs. In each year from 2005 to 2014, the Utilities sent letters to the identified IPPs requesting the required information. All of these IPPs declined to provide the necessary information, except that Kalaeloa later agreed to provide the information pursuant to the amendments to its PPA (see below) and an entity owning a wind farm provided information as required under its PPA. Management has concluded that the consolidation of two entities owning wind farms was not required as Hawaii Electric Light and Maui Electric do not have variable interests in the entities because the PPAs do not require them to absorb any variability of the entities. | |||||||||||||
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 in the Consolidated Financial Statements. The consolidation of any significant IPP could have a material effect on the Consolidated Financial Statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities 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 180 MW 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 180 MW to 208 MW. 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 December 31, 2014, Hawaiian Electric’s accounts payable to Kalaeloa amounted to $13 million. |
Shortterm_borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2014 | |
Short-term Debt [Abstract] | |
Short-term borrowings | |
7 · Short-term borrowings | |
As of December 31, 2014 and 2013, HEI had $119 million and $105 million of outstanding commercial paper, respectively, with a weighted-average interest rate of 0.7% and 0.7%, respectively, and Hawaiian Electric had no commercial paper outstanding. | |
As of December 31, 2014, HEI and Hawaiian Electric each maintained a syndicated credit facility of $150 million and $200 million, respectively. Both HEI and Hawaiian Electric had no borrowings under its facility during 2014 and 2013. None of the facilities are collateralized. | |
Credit agreements. | |
HEI. On April 2, 2014, HEI and a syndicate of nine financial institutions entered into an amended and restated revolving non-collateralized credit agreement (HEI Facility). The HEI Facility increased HEI’s line of credit to $150 million from $125 million, extended the term of the facility to April 2, 2019, and provided improved pricing compared to HEI’s prior facility. Under the HEI Facility, draws would generally bear interest, based on HEI’s current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the agreement, plus 137.5 basis points and annual fees on undrawn commitments of 20 basis points. The HEI Facility contains updated provisions for pricing adjustments in the event of a long-term ratings change based on the HEI Facility’s ratings-based pricing grid. Certain modifications were made to incorporate some updated terms and conditions customary for facilities of this type. In addition, the HEI Consolidated Net Worth covenant, as defined in the original facility, was removed from the HEI Facility, leaving only one financial covenant (relating to HEI’s ratio of funded debt to total capitalization, each on a non-consolidated basis). Under the credit 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 19% as of December 31, 2014, as calculated under the agreement) or if HEI no longer owns Hawaiian Electric. The HEI Facility does not contain clauses that would affect access to the facility by reason of a ratings downgrade, nor does it have broad “material adverse change” clauses, but it continues to contain customary conditions which must be met in order to draw on it, including compliance with covenants (such as covenants preventing HEI’s subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, HEI). | |
The 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. | |
Hawaiian Electric. On April 2, 2014, Hawaiian Electric and a syndicate of nine financial institutions entered into an amended and restated revolving non-collateralized credit agreement (Hawaiian Electric Facility). The Hawaiian Electric Facility increased Hawaiian Electric’s line of credit to $200 million from $175 million. In January 2015, the PUC approved Hawaiian Electric’s request to extend the term of the credit facility to April 2, 2019. The Hawaiian Electric Facility provided improved pricing compared to its prior facility. Under the Hawaiian Electric Facility, draws would generally bear interest, based on Hawaiian Electric’s current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the agreement, plus 125 basis points and annual fees on undrawn commitments of 17.5 basis points. The Hawaiian Electric Facility contains updated provisions for pricing adjustments in the event of a long-term ratings change based on the Hawaiian Electric Facility’s ratings-based pricing grid. Certain modifications were made to incorporate some updated terms and conditions customary for facilities of this type. The Hawaiian Electric Facility does not contain clauses that would affect access to the facility by reason of a ratings downgrade, nor does it have broad “material adverse change” clauses, but it continues to contain customary conditions which must be met in order to draw on it, including compliance with several covenants (such as covenants preventing its subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, Hawaiian Electric, and restricting its ability as well as the ability of any of its subsidiaries to guarantee additional indebtedness of the subsidiaries if such additional debt would cause the subsidiary’s “Consolidated Subsidiary Funded Debt to Capitalization Ratio” to exceed 65% (ratio of 41% for Hawaii Electric Light and 42% for Maui Electric as of December 31, 2014, as calculated under the agreement)). In addition to customary defaults, Hawaiian Electric’s failure to maintain its financial ratios, as defined in its credit agreement, or meet other requirements may result in an event of default. For example, under the credit agreement, it is an event of default if Hawaiian Electric fails to maintain a “Consolidated Capitalization Ratio” (equity) of at least 35% (ratio of 58% as of December 31, 2014, as calculated under the credit agreement), or if Hawaiian Electric is no longer owned by HEI. Under the proposed Merger Agreement, Hawaiian Electric will become a wholly-owned subsidiary of NextEra. The terms of the Hawaiian Electric Facility are such that the proposed Merger would constitute a “Change in Control.” Hawaiian Electric has requested, and the financial institutions providing the Hawaiian Electric Facility have consented and agreed, that the proposed Merger shall not constitute a “Change in Control,” as defined in the credit agreement, provided that (i) the Merger is consummated and (ii) Hawaiian Electric becomes and remains a wholly-owned subsidiary of NextEra. | |
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. |
Longterm_debt
Long-term debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Long-term debt | ||||||||
8 · Long-term debt | ||||||||
December 31 | 2014 | 2013 | ||||||
(dollars in thousands) | ||||||||
Long-term debt of Utilities 1 | $ | 1,206,546 | $ | 1,217,945 | ||||
HEI term loan LIBOR + .90%, due 2016 | 125,000 | — | ||||||
HEI medium-term note 6.51%, paid 2014 | — | 100,000 | ||||||
HEI senior note 4.41%, due 2016 | 75,000 | 75,000 | ||||||
HEI senior note 5.67%, due 2021 | 50,000 | 50,000 | ||||||
HEI senior note 3.99%, due 2023 | 50,000 | 50,000 | ||||||
$ | 1,506,546 | $ | 1,492,945 | |||||
1 | See components of “Total long-term debt” and unamortized discount in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. | |||||||
As of December 31, 2014, the aggregate principal payments required on the Company’s long-term debt for 2015 through 2019 are nil in 2015, $200 million in 2016, nil in 2017, $50 million in 2018 and nil in 2019. As of December 31, 2014, the aggregate payments of principal required on the Utilities' long-term debt for 2015 through 2019 are nil in 2015, 2016, 2017, $50 million in 2018 and nil in 2019. | ||||||||
The HEI medium-term notes and senior notes contain customary representation 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). The HEI senior notes also contain provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s revolving noncollateralized credit agreement, expiring on April 2, 2019. Upon a change of control or certain dispositions of assets (as defined in the Master Note Purchase Agreement dated March 24, 2011), HEI is required to offer to prepay the senior notes. | ||||||||
The Utilities’ senior notes 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) and provisions requiring the maintenance by Hawaiian Electric, and each of Hawaii Electric Light and Maui Electric, of certain financial ratios generally consistent with those in Hawaiian Electric’s existing amended revolving noncollateralized credit agreement, expiring on April 2, 2019 (See Note 7 of the Consolidated Financial Statements). | ||||||||
May 2014 loan. On May 2, 2014, HEI entered into a loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Royal Bank of Canada and U.S. Bank, National Association, which agreement includes substantially the same financial covenant and customary conditions as the HEI credit agreement described above. On May 2, 2014, HEI drew a $125 million Eurodollar term loan for a term of two years and at a resetting interest rate ranging from 1.12% to 1.14% through December 31, 2014. The proceeds from the term loan were used to pay-off $100 million of 6.51% medium term notes at maturity on May 5, 2014, pay down maturing commercial paper and for general corporate purposes. |
Shareholders_equity
Shareholders' equity | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Shareholders' equity | ||||||||||||||||||||
9 · Shareholders’ equity | ||||||||||||||||||||
Reserved shares. As of December 31, 2014, HEI had reserved (a) a total of 18,372,187 shares of common stock for future issuance under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP), the 1987 Stock Option and Incentive Plan, the HEI 2011 Nonemployee Director Stock Plan, the ASB 401(k) Plan and the 2010 Executive Incentive Plan and (b) a total of 4.7 million shares of common stock for future issuance in connection with the equity forward transaction described below. | ||||||||||||||||||||
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. Initially, the equity forward transactions had to be settled fully by March 25, 2015, but an amendment extended this date to December 31, 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 December 31, 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 receives proceeds from the sale of common stock when the equity forward transactions are settled and records the proceeds at that time in equity. HEI concluded that the equity forward transactions were equity instruments based on the accounting guidance in ASC Topic 480, "Distinguishing Liabilities from Equity," and ASC Topic 815, "Derivatives and Hedging," and that they qualified for an exception from derivative accounting under ASC Topic 815 because the forward sale transactions were indexed to its own stock. On December 19, 2013, HEI settled 1.3 million shares under the equity forward for proceeds of $32.1 million (net of the underwriting discount of $1.3 million), which funds were ultimately used to purchase Hawaiian Electric shares. On July 14, 2014, HEI settled 1.0 million shares for proceeds of $23.9 million (net of underwriting discount of $1.0 million), which funds were ultimately used to purchase Hawaiian Electric shares. | ||||||||||||||||||||
At December 31, 2014, the equity forward transactions could have been settled with delivery to the forward counterparty of (a) 4.7 million shares in exchange for cash of $106 million, (b) cash of approximately $51 million (which amount includes $5 million of underwriting discount), or (c) approximately 1.5 million shares. | ||||||||||||||||||||
Prior to their settlement, the shares remaining under the equity forward transactions will be reflected in HEI’s diluted EPS calculations using the treasury stock method. Under this method, the number of shares of HEI’s common stock used in calculating diluted EPS 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 of $22.63 as of December 31, 2014). 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 EPS 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 EPS. | ||||||||||||||||||||
For 2014 and 2013, the equity forward transactions did not have a material dilutive effect on HEI’s EPS. | ||||||||||||||||||||
Accumulated other comprehensive income/(loss). Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: | ||||||||||||||||||||
HEI Consolidated | Hawaiian Electric Consolidated | |||||||||||||||||||
(in thousands) | Net unrealized gains (losses) on securities | Unrealized losses on derivatives | Retirement benefit plans | AOCI | AOCI -retirement benefit plans | |||||||||||||||
Balance, December 31, 2011 | $ | 9,886 | $ | (996 | ) | $ | (28,027 | ) | $ | (19,137 | ) | $ | (32 | ) | ||||||
Current period other comprehensive income (loss) | 875 | 236 | (8,397 | ) | (7,286 | ) | (938 | ) | ||||||||||||
Balance, December 31, 2012 | 10,761 | (760 | ) | (36,424 | ) | (26,423 | ) | (970 | ) | |||||||||||
Current period other comprehensive income (loss) | (14,424 | ) | 235 | 23,862 | 9,673 | 1,578 | ||||||||||||||
Balance, December 31, 2013 | (3,663 | ) | (525 | ) | (12,562 | ) | (16,750 | ) | 608 | |||||||||||
Current period other comprehensive income (loss) | 4,125 | 236 | (14,989 | ) | (10,628 | ) | (563 | ) | ||||||||||||
Balance, December 31, 2014 | $ | 462 | $ | (289 | ) | $ | (27,551 | ) | $ | (27,378 | ) | $ | 45 | |||||||
Reclassifications out of AOCI were as follows: | ||||||||||||||||||||
Amount reclassified from AOCI | ||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | Affected line item in the Statement of Income | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||
Net realized gains on securities | $ | (1,715 | ) | $ | (738 | ) | $ | (81 | ) | Revenues-bank (net gains on sales of securities) | ||||||||||
Derivatives qualified as cash flow hedges | ||||||||||||||||||||
Interest rate contracts (settled in 2011) | 236 | 235 | 236 | 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 | 11,344 | 23,280 | 15,291 | See Note 10 for additional details | ||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 207,833 | (222,595 | ) | 75,471 | See Note 10 for additional details | |||||||||||||||
Total reclassifications | $ | 217,698 | $ | (199,818 | ) | $ | 90,917 | |||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||
Retirement benefit plan items | ||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 10,212 | $ | 20,694 | $ | 13,673 | See Note 10 for additional details | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 207,833 | (222,595 | ) | 75,471 | See Note 10 for additional details | |||||||||||||||
Total reclassifications | $ | 218,045 | $ | (201,901 | ) | $ | 89,144 | |||||||||||||
Retirement_benefits
Retirement benefits | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Retirement benefits | ||||||||||||||||||||||||
10 · Retirement benefits | ||||||||||||||||||||||||
Defined benefit plans. Substantially all of the employees of HEI and the Utilities participate in the Retirement Plan for Employees of Hawaiian Electric Industries, Inc. and Participating Subsidiaries (HEI Pension Plan). Substantially all of the employees of ASB and its subsidiaries participated in the American Savings Bank Retirement Plan (ASB Pension Plan) until it was frozen on December 31, 2007. The HEI Pension Plan and the ASB Pension Plan (collectively, the Plans) are qualified, noncontributory defined benefit pension plans and include, in the case of the HEI Pension Plan, benefits for utility union employees determined in accordance with the terms of the collective bargaining agreements between the Utilities and the union. The Plans are subject to the provisions of ERISA. In addition, some current and former executives and directors of HEI and its subsidiaries participate in noncontributory, nonqualified plans (collectively, Supplemental Plans). In general, benefits are based on the employees’ or directors’ years of service and compensation. | ||||||||||||||||||||||||
The continuation of the Plans and the Supplemental Plans and the payment of any contribution thereunder are not assumed as contractual obligations by the participating employers. The Supplemental Plan for directors has been frozen since 1996. The ASB Pension Plan was frozen as of December 31, 2007. The HEI Supplemental Executive Retirement Plan and ASB Supplemental Executive Retirement, Disability, and Death Benefit Plan (noncontributory, nonqualified, defined benefit plans) were frozen as of December 31, 2008. No participants have accrued any benefits under these plans after the respective plan’s freeze and the plans will be terminated at the time all remaining benefits have been paid. | ||||||||||||||||||||||||
Each participating employer reserves the right to terminate its participation in the applicable plans at any time, and HEI and ASB reserve the right to terminate their respective plans at any time. If a participating employer terminates its participation in the Plans, the interest of each affected participant would become 100% vested to the extent funded. Upon the termination of the Plans, assets would be distributed to affected participants in accordance with the applicable allocation provisions of ERISA and any excess assets that exist would be paid to the participating employers. Participants’ benefits in the Plans are covered up to certain limits under insurance provided by the Pension Benefit Guaranty Corporation. | ||||||||||||||||||||||||
To determine pension costs for HEI and its subsidiaries under the Plans and the Supplemental Plans, it is necessary to make complex calculations and estimates based on numerous assumptions, including the assumptions identified under “Defined benefit pension and other postretirement benefit plans information” below. | ||||||||||||||||||||||||
Postretirement benefits other than pensions. HEI and the Utilities provide eligible employees health and life insurance benefits upon retirement under the Postretirement Welfare Benefits Plan for Employees of Hawaiian Electric Company, Inc. and participating employers (Hawaiian Electric Benefits Plan). Eligibility of employees and dependents are based on eligibility to retire at termination, the retirement date and the date of hire. The plan was amended in 2011, changing eligibility for certain bargaining unit employees hired prior to May 1, 2011, based on new minimum age and service requirements effective January 1, 2012, per the collective bargaining agreement, and certain management employees hired prior to May 1, 2011 based on new eligibility minimum age and service requirements effective January 1, 2012. The minimum age and service requirements for management and bargaining unit employees hired May 1, 2011 and thereafter have increased and their dependents are not eligible to receive postretirement benefits. Employees may be eligible to receive benefits from the HEI Pension Plan but may not be eligible for postretirement welfare benefits if the different eligibility requirements are not met. | ||||||||||||||||||||||||
The executive death benefit plan was frozen on September 10, 2009 to participants and benefit levels as of that date. The electric discount was eliminated for management employees and retirees of Hawaiian Electric in August 2009, Hawaii Electric Light in November 2010, and Maui Electric in August 2010, and for bargaining unit employees and retirees on January 31, 2011 per the collective bargaining agreement. | ||||||||||||||||||||||||
The Company’s and Utilities' cost for OPEB has been adjusted to reflect the plan amendments, which reduced benefits and created prior service credits to be amortized over average future service of affected participants. The amortization of the prior service credit will reduce benefit costs over the next few years until the various credit bases are fully recognized. Each participating employer reserves the right to terminate its participation in the Hawaiian Electric Benefits Plan at any time. | ||||||||||||||||||||||||
Balance sheet recognition of the funded status of retirement plans. Employers must recognize on their balance sheets the funded status of defined benefit pension and other postretirement benefit plans with an offset to AOCI in shareholders’ equity (using the projected benefit obligation (PBO), to calculate the funded status). | ||||||||||||||||||||||||
The PUC allowed the Utilities to adopt pension and OPEB tracking mechanisms in previous rate cases. The amount of the net periodic pension cost (NPPC) and net periodic benefits costs (NPBC) to be recovered in rates is established by the PUC in each rate case. Under the Utilities’ tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case. Accordingly, all retirement benefit expenses (except for executive life and nonqualified pension plan expenses, which amounted to $1.2 million in 2014 and 2013) determined in accordance with GAAP will be recovered. | ||||||||||||||||||||||||
Under the tracking mechanisms, amounts that would otherwise be recorded in AOCI (excluding amounts for executive life and nonqualified pension plans), which amounts include the prepaid pension asset, net of taxes, as well as other pension and OPEB charges, are allowed to be reclassified as a regulatory asset, as those costs will be recovered in rates through the NPPC and NPBC in the future. The Utilities have reclassified to a regulatory asset/(liability) charges for retirement benefits that would otherwise be recorded in AOCI (amounting to the elimination of a potential charge to AOCI of $340 million pretax and $(364) million pretax for 2014 and 2013, respectively). | ||||||||||||||||||||||||
In 2007, the PUC allowed Hawaii Electric Light to record a regulatory asset in the amount of $12.8 million (representing Hawaii Electric Light’s prepaid pension asset and reflecting the accumulated pension contributions to its pension fund in excess of accumulated NPPC), which is included in rate base, and allowed recovery of that asset over a period of five years. Hawaii Electric Light is required to make contributions to the pension trust in the amount of the actuarially calculated NPPC that would be allowed without penalty by the tax laws. | ||||||||||||||||||||||||
In 2007, the PUC declined to allow Hawaiian Electric and Maui Electric to include their pension assets (representing the accumulated contributions to their pension fund in excess of accumulated NPPC), in their rate bases. However, under the tracking mechanisms, Hawaiian Electric and Maui Electric are required to fund only the minimum level required under the law until their pension assets are reduced to zero, at which time Hawaiian Electric and Maui Electric will make contributions to the pension trust in the amount of the actuarially calculated NPPC, except when limited by the ERISA minimum contribution requirements or the maximum contribution limitations on deductible contributions imposed by the Internal Revenue Code. | ||||||||||||||||||||||||
The PUC’s exclusion of Hawaiian Electric’s and Maui Electric’s pension assets from rate base does not allow Hawaiian Electric and Maui Electric to earn a return on the pension asset, but this exclusion does not result in the exclusion of any pension benefit costs from their rates. The pension asset is to be (and has been, in the case of Maui Electric) recovered in rates (as NPPC is recorded in excess of contributions). As of December 31, 2014, Hawaiian Electric’s pension asset had been reduced to nil. | ||||||||||||||||||||||||
The OPEB tracking mechanisms generally require the Utilities to make contributions to the OPEB trust in the amount of the actuarially calculated NPBC, except when limited by material, adverse consequences imposed by federal regulations. | ||||||||||||||||||||||||
Retirement benefits expense for the Utilities for 2014, 2013 and 2012 was $32 million, $30 million and $32 million, respectively. | ||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans information. The changes in the obligations and assets of the Company’s and Utilities' retirement benefit plans and the changes in AOCI (gross) for 2014 and 2013 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities' consolidated balance sheet as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | Pension | Other | Pension | Other | ||||||||||||||||||||
benefits | benefits | benefits | benefits | |||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||
Benefit obligation, January 1 | $ | 1,446,291 | $ | 176,099 | $ | 1,590,304 | $ | 194,135 | ||||||||||||||||
Service cost | 49,264 | 3,490 | 56,405 | 4,306 | ||||||||||||||||||||
Interest cost | 72,202 | 8,550 | 64,788 | 7,569 | ||||||||||||||||||||
Actuarial losses (gains) | 342,446 | 39,098 | (203,302 | ) | (21,743 | ) | ||||||||||||||||||
Benefits paid and expenses | (62,975 | ) | (8,028 | ) | (61,904 | ) | (8,168 | ) | ||||||||||||||||
Benefit obligation, December 31 | 1,847,228 | 219,209 | 1,446,291 | 176,099 | ||||||||||||||||||||
Fair value of plan assets, January 1 | 1,186,669 | 179,330 | 971,314 | 156,731 | ||||||||||||||||||||
Actual return on plan assets | 81,123 | 9,149 | 194,130 | 29,164 | ||||||||||||||||||||
Employer contributions | 60,103 | (257 | ) | 82,083 | 954 | |||||||||||||||||||
Benefits paid and expenses | (61,835 | ) | (7,890 | ) | (60,858 | ) | (7,519 | ) | ||||||||||||||||
Fair value of plan assets, December 31 | 1,266,060 | 180,332 | 1,186,669 | 179,330 | ||||||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (581,168 | ) | $ | (38,877 | ) | $ | (259,622 | ) | $ | 3,231 | |||||||||||||
Other assets | $ | 12,800 | $ | — | $ | 24,948 | $ | 7,200 | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | (593,968 | ) | (38,877 | ) | (284,570 | ) | (3,969 | ) | ||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (581,168 | ) | $ | (38,877 | ) | $ | (259,622 | ) | $ | 3,231 | |||||||||||||
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) | $ | 317,544 | $ | (21,722 | ) | $ | 680,781 | $ | 18,846 | |||||||||||||||
Recognized during year – net recognized transition obligation | — | — | — | — | ||||||||||||||||||||
Recognized during year – prior service credit (cost) | (88 | ) | 1,793 | 97 | 1,793 | |||||||||||||||||||
Recognized during year – net actuarial losses | (20,304 | ) | 11 | (38,438 | ) | (1,602 | ) | |||||||||||||||||
Occurring during year – net actuarial losses (gains) | 342,679 | 40,851 | (324,896 | ) | (40,759 | ) | ||||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 639,831 | 20,933 | 317,544 | (21,722 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | $ | 47,540 | $ | (2,042 | ) | $ | 23,278 | $ | (2,516 | ) | ||||||||||||||
Net actuarial loss (gain) | $ | 640,015 | $ | 35,022 | $ | 317,639 | $ | (5,840 | ) | |||||||||||||||
Prior service gain | (184 | ) | (14,089 | ) | (95 | ) | (15,882 | ) | ||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 639,831 | 20,933 | 317,544 | (21,722 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | 47,540 | (2,042 | ) | 23,278 | (2,516 | ) | ||||||||||||||||||
Income taxes (benefits) | (18,742 | ) | 795 | (9,180 | ) | 980 | ||||||||||||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 28,798 | $ | (1,247 | ) | $ | 14,098 | $ | (1,536 | ) | ||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | Pension | Other | Pension | Other | ||||||||||||||||||||
benefits | benefits | benefits | benefits | |||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||
Benefit obligation, January 1 | $ | 1,320,810 | $ | 169,579 | $ | 1,449,445 | $ | 187,110 | ||||||||||||||||
Service cost | 47,597 | 3,392 | 54,482 | 4,163 | ||||||||||||||||||||
Interest cost | 65,979 | 8,234 | 59,119 | 7,288 | ||||||||||||||||||||
Actuarial losses (gains) | 314,210 | 38,488 | (185,185 | ) | (20,900 | ) | ||||||||||||||||||
Benefits paid and expenses | (57,819 | ) | (7,933 | ) | (57,051 | ) | (8,082 | ) | ||||||||||||||||
Benefit obligation, December 31 | 1,690,777 | 211,760 | 1,320,810 | 169,579 | ||||||||||||||||||||
Fair value of plan assets, January 1 | 1,058,260 | 176,291 | 861,778 | 154,186 | ||||||||||||||||||||
Actual return on plan assets | 69,242 | 9,036 | 172,822 | 28,700 | ||||||||||||||||||||
Employer contributions | 58,948 | (274 | ) | 80,325 | 839 | |||||||||||||||||||
Benefits paid and expenses | (57,445 | ) | (7,797 | ) | (56,665 | ) | (7,434 | ) | ||||||||||||||||
Fair value of plan assets, December 31 | 1,129,005 | 177,256 | 1,058,260 | 176,291 | ||||||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (561,772 | ) | $ | (34,504 | ) | $ | (262,550 | ) | $ | 6,712 | |||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | 7,200 | ||||||||||||||||
Other liabilities (short-term) | (421 | ) | (460 | ) | (388 | ) | (488 | ) | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | (561,351 | ) | (34,044 | ) | (262,162 | ) | — | |||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (561,772 | ) | $ | (34,504 | ) | $ | (262,550 | ) | $ | 6,712 | |||||||||||||
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) | $ | 295,973 | $ | (21,907 | ) | $ | 623,588 | $ | 17,432 | |||||||||||||||
Recognized during year – net recognized transition asset | — | — | — | — | ||||||||||||||||||||
Recognized during year – prior service credit (cost) | (62 | ) | 1,804 | 464 | 1,803 | |||||||||||||||||||
Recognized during year – net actuarial losses | (18,459 | ) | — | (34,597 | ) | (1,544 | ) | |||||||||||||||||
Occurring during year – net actuarial losses (gains) | 317,651 | 40,193 | (293,482 | ) | (39,598 | ) | ||||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 595,103 | 20,090 | 295,973 | (21,907 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | $ | 2,812 | $ | (2,885 | ) | $ | 1,707 | $ | (2,701 | ) | ||||||||||||||
Net actuarial loss (gain) | $ | 595,017 | $ | 34,192 | $ | 295,825 | $ | (6,001 | ) | |||||||||||||||
Prior service cost (gain) | 86 | (14,102 | ) | 148 | (15,906 | ) | ||||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 595,103 | 20,090 | 295,973 | (21,907 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | 2,812 | (2,885 | ) | 1,707 | (2,701 | ) | ||||||||||||||||||
Income taxes (benefits) | (1,094 | ) | 1,122 | (664 | ) | 1,050 | ||||||||||||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 1,718 | $ | (1,763 | ) | $ | 1,043 | $ | (1,651 | ) | ||||||||||||||
The dates used to determine retirement benefit measurements for the defined benefit plans were December 31 of 2014, 2013 and 2012. | ||||||||||||||||||||||||
On August 8, 2014 and July 6, 2012, President Obama signed the Highway and Transportation Funding Act of 2014 (HATFA) and the Moving Ahead for Progress in the 21st Century Act (MAP-21), respectively, which included provisions related to the funding and administration of pension plans with no impact to the Company’s or the Utilities' accounting for pension benefits; therefore, the net periodic benefit costs disclosed for the plans were not affected. The Company elected to not apply HATFA to the 2013 plan year. The Company elected to apply MAP-21 for 2012, which improved the plans’ Adjusted Funding Target Attainment Percentage 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 the Utilities. MAP-21 caused 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. Similarly, HATFA caused the minimum required funding under ERISA to be less than the net periodic cost for 2014; therefore, to satisfy the requirements of the Utilities pension and OPEB tracking mechanisms, the Utilities contributed the net periodic cost in 2014. | ||||||||||||||||||||||||
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 met the threshold requirements in each of 2012 and 2013 so that the more conservative assumptions did 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 Company and the Utilities have determined the market-related value of retirement benefit plan assets by calculating the difference between the expected return and the actual return on the fair value of the plan assets, then amortizing the difference over future years – 0% in the first year and 25% in each of years two through five – and finally adding or subtracting the unamortized differences for the past four years from fair value. The method includes a 15% range around the fair value of such assets (i.e., 85% to 115% of fair value). If the market-related value is outside the 15% range, then the amount outside the range will be recognized immediately in the calculation of annual NPBC. | ||||||||||||||||||||||||
A primary goal of the plans is to achieve long-term asset growth sufficient to pay future benefit obligations at a reasonable level of risk. The investment policy target for defined benefit pension and OPEB plans reflects the philosophy that long-term growth can best be achieved by prudent investments in equity securities while balancing overall fund volatility by an appropriate allocation to fixed income securities. In order to reduce the level of portfolio risk and volatility in returns, efforts have been made to diversify the plans’ investments by asset class, geographic region, market capitalization and investment style. | ||||||||||||||||||||||||
The asset allocation of defined benefit retirement plans to equity and fixed income securities managers and related investment policy targets and ranges were as follows: | ||||||||||||||||||||||||
Pension benefits1 | Other benefits2 | |||||||||||||||||||||||
Investment policy | Investment policy | |||||||||||||||||||||||
December 31 | 2014 | 2013 | Target | Range | 2014 | 2013 | Target | Range | ||||||||||||||||
Assets held by category | ||||||||||||||||||||||||
Equity securities managers | 73 | % | 73 | % | 70 | % | 65-75 | 72 | % | 74 | % | 70 | % | 65-75 | ||||||||||
Fixed income securities managers | 27 | 27 | 30 | 25-35 | 28 | 26 | 30 | 25-35 | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
1 | Asset allocation for 2014 is applicable to HEI and the Utilities. In 2014, ASB revised its defined benefit pension plan asset allocation to a liability driven investment strategy and as of December 31, 2014, all of its pension assets were invested in fixed income securities. In 2013, ASB’s assets were invested using an allocation consistent with that of HEI and the Utilities. | |||||||||||||||||||||||
2 | Asset allocation for 2014 and 2013 is applicable to only HEI and the Utilities. ASB does not fund its other benefits. | |||||||||||||||||||||||
See Note 16 for additional disclosures about the fair value of the retirement benefit plans’ assets. | ||||||||||||||||||||||||
The following weighted-average assumptions were used in the accounting for the plans: | ||||||||||||||||||||||||
Pension benefits | Other benefits | |||||||||||||||||||||||
December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Benefit obligation | ||||||||||||||||||||||||
Discount rate | 4.22 | % | 5.09 | % | 4.13 | % | 4.17 | % | 5.03 | % | 4.07 | % | ||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | ||||||||||||||||||
Net periodic benefit cost (years ended) | ||||||||||||||||||||||||
Discount rate | 5.09 | 4.13 | 5.19 | 5.03 | 4.07 | 4.9 | ||||||||||||||||||
Expected return on plan assets | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | ||||||||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | ||||||||||||||||||
NA Not applicable | ||||||||||||||||||||||||
The Company and the Utilities based their selection of an assumed discount rate for 2015 NPBC and December 31, 2014 disclosure on a cash flow matching analysis that utilized bond information provided by Bloomberg for all non-callable, high quality bonds (i.e., rated AA- or better) as of December 31, 2014. In selecting the expected rate of return on plan assets for 2015 NPBC: a) HEI and the Utilities considered economic forecasts for the types of investments held by the plans (primarily equity and fixed income investments), the Plans’ asset allocations, industry and corporate surveys and the past performance of the plans’ assets in selecting 7.75% and b) ASB considered its revised asset allocation in 2014 to a liability driven investment strategy in selecting 4.22%, which is consistent with the assumed discount rate for 2015. | ||||||||||||||||||||||||
The Company and the Utilities adopted updated mortality tables published by the Society of Actuaries as its mortality assumptions as of December 31, 2014. The use of the RP-2014 Tables and the Mortality Improvement Scale MP-2014 had a significant effect on the Company’s and the Utilities’ benefit obligations. | ||||||||||||||||||||||||
As of December 31, 2014, the assumed health care trend rates for 2015 and future years were as follows: medical, 7.25%, grading down to 5% for 2024 and thereafter; dental, 5%; and vision, 4%. As of December 31, 2013, the assumed health care trend rates for 2014 and future years were as follows: medical, 7.5%, grading down to 5% for 2024 and thereafter; dental, 5%; and vision, 4%. Medicare Advantage reimbursements are expected to phase out by 2016; therefore, post age 65 medical trends are adjusted to reflect anticipated increases above the ordinary medical trend rates. For post age 65, the medical trend is 4% higher than pre-65 for 2014 and 3% higher in 2015. | ||||||||||||||||||||||||
The components of NPBC were as follows: | ||||||||||||||||||||||||
Pension benefits | Other benefits | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||
Service cost | $ | 49,264 | $ | 56,405 | $ | 43,221 | $ | 3,490 | $ | 4,306 | $ | 4,211 | ||||||||||||
Interest cost | 72,202 | 64,788 | 67,480 | 8,550 | 7,569 | 9,009 | ||||||||||||||||||
Expected return on plan assets | (81,355 | ) | (72,537 | ) | (71,183 | ) | (10,902 | ) | (10,147 | ) | (10,336 | ) | ||||||||||||
Amortization of net transition obligation | — | — | 1 | — | — | — | ||||||||||||||||||
Amortization of net prior service (gain) cost | 88 | (97 | ) | (325 | ) | (1,793 | ) | (1,793 | ) | (1,793 | ) | |||||||||||||
Amortization of net actuarial loss (gains) | 20,304 | 38,438 | 25,675 | (11 | ) | 1,602 | 1,498 | |||||||||||||||||
Net periodic benefit cost | 60,503 | 86,997 | 64,869 | (666 | ) | 1,537 | 2,589 | |||||||||||||||||
Impact of PUC D&Os | (13,324 | ) | (38,104 | ) | (15,754 | ) | 1,976 | (1,458 | ) | (2,227 | ) | |||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 47,179 | 48,893 | 49,115 | 1,310 | 79 | 362 | ||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||
Service cost | $ | 47,597 | $ | 54,482 | $ | 41,603 | $ | 3,392 | $ | 4,163 | $ | 4,014 | ||||||||||||
Interest cost | 65,979 | 59,119 | 61,453 | 8,234 | 7,288 | 8,703 | ||||||||||||||||||
Expected return on plan assets | (72,661 | ) | (64,551 | ) | (64,004 | ) | (10,739 | ) | (10,002 | ) | (10,195 | ) | ||||||||||||
Amortization of net transition obligation | — | — | — | — | — | (9 | ) | |||||||||||||||||
Amortization of net prior service (gain) cost | 62 | (464 | ) | (689 | ) | (1,804 | ) | (1,803 | ) | (1,803 | ) | |||||||||||||
Amortization of net actuarial loss | 18,459 | 34,597 | 23,428 | — | 1,544 | 1,455 | ||||||||||||||||||
Net periodic benefit cost | 59,436 | 83,183 | 61,791 | (917 | ) | 1,190 | 2,165 | |||||||||||||||||
Impact of PUC D&Os | (13,324 | ) | (38,104 | ) | (15,754 | ) | 1,976 | (1,458 | ) | (2,227 | ) | |||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 46,112 | $ | 45,079 | $ | 46,037 | $ | 1,059 | $ | (268 | ) | $ | (62 | ) | ||||||||||
The estimated prior service credit, net actuarial loss and net transition obligation for defined benefit plans that will be amortized from AOCI or regulatory assets into net periodic benefit cost during 2015 is as follows: | ||||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
(in millions) | Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||
Estimated prior service cost (credit) | $ | — | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | ||||||||||||||
Net actuarial loss | 35.8 | 1.7 | 32.4 | 1.7 | ||||||||||||||||||||
Net transition obligation | — | — | — | — | ||||||||||||||||||||
The Company recorded pension expense of $32 million, $34 million and $35 million and OPEB expense of $1.2 million, $0.4 million and $1.0 million in 2014, 2013 and 2012, respectively, and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $31 million, $30 million and $32 million and OPEB expense of $1.0 million, nil and $0.4 million in 2014, 2013 and 2012, respectively, and charged the remaining amounts primarily to electric utility plant. | ||||||||||||||||||||||||
The health care cost trend rate assumptions can have a significant effect on the amounts reported for other benefits. As of December 31, 2014, for the Company, a one-percentage-point increase in the assumed health care cost trend rates would have increased the total service and interest cost by $0.2 million and the accumulated postretirement benefit obligation (APBO) by $3.8 million, and a one-percentage-point decrease would have reduced the total service and interest cost by $0.3 million and the APBO by $4.6 million. As of December 31, 2014, for the Utilities, a one-percentage-point increase in the assumed health care cost trend rates would have increased the total service and interest cost by $0.2 million and the APBO by $3.7 million, and a one-percentage-point decrease would have reduced the total service and interest cost by $0.3 million and the APBO by $4.5 million. | ||||||||||||||||||||||||
HEI consolidated. The defined benefit pension plans with accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), in excess of plan assets as of December 31, 2014 and 2013, had aggregate ABOs of $1.5 billion and $1.2 billion, respectively, and plan assets of $1.2 billion and $1.1 billion, respectively. The defined benefit pension plans with PBOs in excess of plan assets as of December 31, 2014, had aggregate PBOs of $1.7 billion and plan assets of $1.2 billion. The defined benefit pension plans with PBOs in excess of plan assets as of December 31, 2013, had aggregate PBOs of $1.4 billion and plan assets of $1.1 billion. As of December 31, 2014, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. As of December 31, 2013, the other postretirement benefit plans with ABOs in excess of plan assets had aggregate ABOs of $0.4 million and plan assets of nil. | ||||||||||||||||||||||||
The Company estimates that the cash funding for the qualified defined benefit pension plans in 2015 will be $85 million, which should fully satisfy the minimum required contributions to those plans, including requirements of the Utilities’ pension tracking mechanisms and the Plan’s funding policy. The Company's current estimate of contributions to its other postretirement benefit plans in 2015 is $0.5 million. | ||||||||||||||||||||||||
As of December 31, 2014, the benefits expected to be paid under all retirement benefit plans in 2015, 2016, 2017, 2018, 2019 and 2020 through 2024 amounted to $76 million, $79 million, $83 million, $87 million, $91 million and $520 million, respectively. | ||||||||||||||||||||||||
Hawaiian Electric consolidated. The defined benefit pension plans with ABOs in excess of plan assets as of December 31, 2014 and 2013, had aggregate ABOs of $1.5 billion and $1.2 billion, respectively, and plan assets of $1.1 billion and $1.1 billion, respectively. All the defined benefit pension plans shown in the table above had PBOs in excess of plan assets as of December 31, 2014 and 2013. As of December 31, 2014, the other postretirement benefit plan shown in the table above had an ABO in excess of plan assets. As of December 31, 2013, the other postretirement benefit plan shown in the table above had plan assets in excess of ABO. | ||||||||||||||||||||||||
The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2015 will be $83 million, which should fully satisfy the minimum required contributions to that Plan, including requirements of the pension tracking mechanisms and the Plan’s funding policy. The Utilities' current estimate of contributions to its other postretirement benefit plans in 2015 is $0.5 million. | ||||||||||||||||||||||||
As of December 31, 2014, the benefits expected to be paid under all retirement benefit plans in 2015, 2016, 2017, 2018, 2019 and 2020 through 2024 amounted to $70 million, $73 million, $76 million, $79 million, $83 million and $476 million, respectively. | ||||||||||||||||||||||||
Defined contribution plans information. The ASB 401(k) Plan is a defined contribution plan, which includes a discretionary employer profit sharing contribution by ASB (AmeriShare) and a matching contribution by ASB on the first 4% of employee deferrals (AmeriMatch). | ||||||||||||||||||||||||
Changes to retirement benefits for HEI and utility employees commencing employment after April 30, 2011 include a reduction of benefits provided through the defined benefit plan and the addition of a 50% match by the applicable employer on the first 6% of employee deferrals through the defined contribution plan (under the Hawaiian Electric Industries Retirement Savings Plan). | ||||||||||||||||||||||||
For 2014, 2013 and 2012, the Company’s expense for its defined contribution pension plans under the HEIRSP and the ASB 401(k) Plan was $5 million, $5 million and $4 million, respectively, and cash contributions were $5 million, $4 million and $4 million, respectively. The Utilities’ expense for its defined contribution pension plan under the HEIRSP Plan for 2014 and 2013 was $0.9 million and $0.6 million, respectively, and 2012 was de minimis. |
Sharebased_compensation
Share-based compensation | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||
11 · Share-based compensation | ||||||||||||||||||||||||
Under the 2010 Equity and Incentive Plan, HEI can issue shares of common stock as incentive compensation to selected employees in the form of stock options, stock appreciation rights (SARs), restricted shares, restricted stock units, performance shares and other share-based and cash-based awards. The 2010 Equity and Incentive Plan was amended and restated (EIP) effective March 1, 2014 and an additional 1.5 million shares was added to the shares available for issuance under these programs. | ||||||||||||||||||||||||
As of December 31, 2014, approximately 3.6 million shares were remaining available for future issuance under the terms of the EIP, assuming recycling of shares withheld to satisfy minimum statutory tax liabilities relating to EIP awards, including an estimated 0.9 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels). | ||||||||||||||||||||||||
Under the 1987 Stock Option and Incentive Plan, as amended (SOIP), there are possible future issuances of an estimated 17,000 shares upon the exercise of outstanding SARs based on the market price of shares on December 31, 2014. As of May 11, 2010 (when the 2010 Equity and Incentive Plan 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. | ||||||||||||||||||||||||
For the SARs outstanding under the SOIP, the exercise price of each SAR generally equaled the fair market value of HEI’s stock on or near the date of grant. SARs and related dividend equivalents issued in the form of stock awards generally became exercisable in installments of 25% each year for four years, and expire if not exercised ten years from the date of the grant. SARs compensation expense has been recognized in accordance with the fair value-based measurement method of accounting. The estimated fair value of each SAR grant was calculated on the date of grant using a Binomial Option Pricing Model. | ||||||||||||||||||||||||
The restricted shares that have been issued under the 2010 Equity and Incentive Plan become unrestricted in four equal annual increments on the anniversaries of the grant date and are forfeited to the extent they have not become unrestricted for terminations of employment during the vesting period, except accelerated vesting is provided for terminations by reason of death, disability and termination without cause. Restricted shares compensation expense has been recognized in accordance with the fair-value-based measurement method of accounting. Dividends on restricted shares are paid quarterly in cash. There were no outstanding restricted shares as of December 31, 2014. | ||||||||||||||||||||||||
Restricted stock units awarded under the 2010 Equity and Incentive Plan in 2014, 2013, 2012 and 2011 will vest and be issued in unrestricted stock in four equal annual increments on the anniversaries of the grant date and are forfeited to the extent they have not become vested for terminations of employment during the vesting period, except that pro-rata vesting is provided for terminations due to death, disability and retirement. Restricted stock units awarded under the SOIP and 2010 Equity and Incentive Plan in 2010 and prior years generally vest and will be issued as unrestricted stock four years after the date of the grant and are forfeited for terminations of employment during the vesting period, except that pro-rata vesting is provided for terminations due to death, disability and retirement. Restricted stock units expense has been recognized in accordance with the fair-value-based measurement method of accounting. Dividend equivalent rights are accrued quarterly and are paid at the end of the restriction period when the associated restricted stock units vest. | ||||||||||||||||||||||||
Stock performance awards granted under the2012-2014, 2013-2015 and 2014-2016 LTIPs entitle the grantee to shares of common stock with dividend equivalent rights once service conditions and performance conditions are satisfied at the end of the three-year performance period. LTIP awards are forfeited for terminations of employment during the performance period, except that pro-rata participation is provided for terminations due to death, disability and retirement based upon completed months of service after a minimum of 12 months of service in the performance period. Compensation expense for the stock performance awards portion of the LTIP has been recognized in accordance with the fair-value-based measurement method of accounting for performance shares. | ||||||||||||||||||||||||
Under the 2011 Nonemployee Director Stock Plan (2011 Director Plan), HEI can issue shares of common stock as compensation to nonemployee directors of HEI, Hawaiian Electric and ASB. As of December 31, 2014, there were 169,290 shares remaining available for future issuance under the 2011 Director Plan. | ||||||||||||||||||||||||
The Company’s share-based compensation expense and related income tax benefit were as follows: | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||
Share-based compensation expense1 | $ | 9.3 | $ | 7.8 | $ | 6.7 | ||||||||||||||||||
Income tax benefit | 3.4 | 2.8 | 2.4 | |||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||
Share-based compensation expense1 | 3.1 | 2.3 | 1.8 | |||||||||||||||||||||
Income tax benefit | 1.2 | 0.9 | 0.7 | |||||||||||||||||||||
1 | $0.16 million, $0.11 million and $0.08 million of this share-based compensation expense was capitalized in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
Stock awards. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: | ||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Shares granted | 33,170 | 33,184 | 29,448 | |||||||||||||||||||||
Fair value | $ | 0.8 | $ | 0.8 | $ | 0.8 | ||||||||||||||||||
Income tax benefit | 0.3 | 0.3 | 0.3 | |||||||||||||||||||||
The number of shares issued to each nonemployee director of HEI, Hawaiian Electric and ASB is determined based on the closing price of HEI Common Stock on grant date. | ||||||||||||||||||||||||
Nonqualified stock options. Information about HEI’s NQSOs was as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Shares | -1 | Shares | -1 | |||||||||||||||||||||
Outstanding, January 1 | 14,000 | $ | 20.49 | 55,500 | $ | 20.92 | ||||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||||||
Exercised | (14,000 | ) | 20.49 | (41,500 | ) | 21.06 | ||||||||||||||||||
Forfeited | — | — | — | — | ||||||||||||||||||||
Expired | — | — | — | — | ||||||||||||||||||||
Outstanding, December 31 | — | $ | — | 14,000 | $ | 20.49 | ||||||||||||||||||
Exercisable, December 31 | — | $ | — | 14,000 | $ | 20.49 | ||||||||||||||||||
-1 | Weighted-average exercise price | |||||||||||||||||||||||
As of December 31, 2014, there were no NQSOs outstanding. | ||||||||||||||||||||||||
NQSO activity and statistics were as follows: | ||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | ||||||||||||||||||||||
Cash received from exercise | $ | 287 | $ | 874 | ||||||||||||||||||||
Intrinsic value of shares exercised 1 | 128 | 354 | ||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | 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 is summarized as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 164,000 | $ | 26.12 | 164,000 | $ | 26.12 | 282,000 | $ | 26.14 | |||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Exercised | (22,000 | ) | 26.18 | — | — | (114,000 | ) | 26.17 | ||||||||||||||||
Forfeited | (62,000 | ) | 26.02 | — | — | — | — | |||||||||||||||||
Expired | — | — | — | — | (4,000 | ) | 26.18 | |||||||||||||||||
Outstanding, December 31 | 80,000 | $ | 26.18 | 164,000 | $ | 26.12 | 164,000 | $ | 26.12 | |||||||||||||||
Exercisable, December 31 | 80,000 | $ | 26.18 | 164,000 | $ | 26.12 | 164,000 | $ | 26.12 | |||||||||||||||
-1 | Weighted-average exercise price | |||||||||||||||||||||||
31-Dec-14 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||
Year of | Number of shares | Weighted-average | Weighted-average | |||||||||||||||||||||
Grant | underlying SARs | remaining contractual life | exercise price | |||||||||||||||||||||
2005 | 80,000 | 0.3 | $ | 26.18 | ||||||||||||||||||||
As of December 31, 2014, all SARs outstanding were exercisable and had an aggregate intrinsic value (including dividend equivalents) of $0.6 million. | ||||||||||||||||||||||||
SARs activity and statistics were as follows: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Intrinsic value of shares exercised 1 | $ | 29 | $ | — | $ | 197 | ||||||||||||||||||
Tax benefit realized for the deduction of exercises | 11 | — | 77 | |||||||||||||||||||||
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 right. | |||||||||||||||||||||||
Restricted shares and restricted stock awards. Information about HEI’s grants of restricted shares and restricted stock awards was as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 4,503 | $ | 22.21 | 9,005 | $ | 22.21 | 46,807 | $ | 24.45 | |||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Vested | (4,503 | ) | 22.21 | (4,502 | ) | 22.21 | (37,802 | ) | 24.99 | |||||||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||||||||
Outstanding, December 31 | — | $ | — | 4,503 | $ | 22.21 | 9,005 | $ | 22.21 | |||||||||||||||
-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. | |||||||||||||||||||||||
For 2014, 2013 and 2012, total restricted stock vested had a grant-date fair value of $0.1 million, $0.1 million and $0.9 million, respectively, and the tax benefits realized for the tax deductions related to restricted stock awards were nil for 2014, nil for 2013 and $0.2 million for 2012. | ||||||||||||||||||||||||
Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 288,151 | $ | 25.17 | 315,094 | $ | 22.82 | 247,286 | $ | 21.8 | |||||||||||||||
Granted | 117,786 | 25.17 | 111,231 | 26.88 | 98,446 | 25.99 | ||||||||||||||||||
Vested | (144,702 | ) | 24.09 | (118,885 | ) | 20.48 | (25,728 | ) | 24.68 | |||||||||||||||
Forfeited | — | — | (19,289 | ) | 25.62 | (4,910 | ) | 24.92 | ||||||||||||||||
Outstanding, December 31 | 261,235 | $ | 25.77 | 288,151 | $ | 25.17 | 315,094 | $ | 22.82 | |||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 3 | $ | 3 | $ | 2.6 | ||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. | |||||||||||||||||||||||
For 2014, 2013 and 2012 total restricted stock units and related dividends that vested had a fair value of $4.1 million, $3.7 million and $0.7 million, respectively, and the related tax benefits were $1.2 million, $0.9 million and $0.2 million, respectively. | ||||||||||||||||||||||||
As of December 31, 2014, there was $4.4 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. | ||||||||||||||||||||||||
Long-term incentive plan payable in stock. The 2012-2014 long-term incentive plan (LTIP), 2013-2015 LTIP and 2014-2016 LTIP provide for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals considered to be a market condition 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 2012-2014 LTIP, 2013-2015 LTIP and 2014-2016 LTIP have performance goals related to levels of HEI consolidated net income, HEI consolidated return on average 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, and ASB return on assets relative to performance peers. | ||||||||||||||||||||||||
LTIP linked to TRS. Information about HEI’s LTIP grants linked to TRS was as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 232,127 | $ | 32.88 | 239,256 | $ | 29.12 | 197,385 | $ | 25.94 | |||||||||||||||
Granted | 97,524 | 22.95 | 91,038 | 32.69 | 81,223 | 30.71 | ||||||||||||||||||
Vested (settled or lapsed) | (70,189 | ) | 35.46 | (87,753 | ) | 22.45 | (35,397 | ) | 14.85 | |||||||||||||||
Forfeited | (1,506 | ) | 28.32 | (10,414 | ) | 32.72 | (3,955 | ) | 30.82 | |||||||||||||||
Outstanding, December 31 | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | 239,256 | $ | 29.12 | |||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 2.2 | $ | 3 | $ | 2.5 | ||||||||||||||||||
-1 | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. | |||||||||||||||||||||||
The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility and dividends of HEI and its peers over the remaining three-year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three-year historic stock volatility, and the annual dividend yield assumptions were based on dividend yields calculated on the basis of daily stock prices over the same three-year historical period. | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | 0.66 | % | 0.38 | % | 0.33 | % | ||||||||||||||||||
Expected life in years | 3 | 3 | 3 | |||||||||||||||||||||
Expected volatility | 17.8 | % | 19.4 | % | 25.3 | % | ||||||||||||||||||
Range of expected volatility for Peer Group | 12.4% to 23.3% | 12.4% to 25.3% | 15.5% to 34.5% | |||||||||||||||||||||
Grant date fair value (per share) | $ | 22.95 | $ | 32.69 | $ | 30.71 | ||||||||||||||||||
For 2014, 2013 and 2012, total vested LTIP awards linked to TRS and related dividends had a fair value of nil, $2.2 million and $0.6 million, respectively, and the related tax benefits were nil, $0.9 million and $0.2 million, respectively. For 2014, all of the shares vested (which were granted at target level based on the satisfaction of TRS performance) for the 2011-2013 LTIP lapsed. 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 December 31, 2014, there was $2.2 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 1.5 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: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 296,843 | $ | 26.14 | 247,175 | $ | 25.04 | 182,498 | $ | 22.63 | |||||||||||||||
Granted | 129,603 | 25.18 | 120,399 | 26.89 | 125,157 | 26.05 | ||||||||||||||||||
Vested and settled | (65,089 | ) | 24.95 | (18,280 | ) | 18.95 | — | — | ||||||||||||||||
Increase above target (cancelled) | 4,949 | 26.7 | (41,599 | ) | 24.97 | (50,786 | ) | 18.95 | ||||||||||||||||
Forfeited | (1,575 | ) | 26.07 | (10,852 | ) | 26.2 | (9,694 | ) | 24.44 | |||||||||||||||
Outstanding, December 31 | 364,731 | $ | 26.01 | 296,843 | $ | 26.14 | 247,175 | $ | 25.04 | |||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) | $ | 3.3 | $ | 3.2 | $ | 3.3 | ||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. | |||||||||||||||||||||||
For 2014 and 2013, total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $1.9 million and $0.6 million, respectively, and the related tax benefits were $0.8 million and $0.2 million, respectively. | ||||||||||||||||||||||||
As of December 31, 2014, there was $3.4 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 1.5 years. |
Income_taxes
Income taxes | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||||
12 · Income taxes | ||||||||||||||||||||||||
The components of income taxes attributable to net income for common stock were as follows: | ||||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Federal | ||||||||||||||||||||||||
Current | $ | 33,762 | $ | (1,520 | ) | $ | (15,411 | ) | $ | 1,108 | $ | 1,313 | $ | (26,965 | ) | |||||||||
Deferred | 46,427 | 73,680 | 82,138 | 68,775 | 58,024 | 79,437 | ||||||||||||||||||
Deferred tax credits, net | — | 224 | 187 | — | 224 | 186 | ||||||||||||||||||
80,189 | 72,384 | 66,914 | 69,883 | 59,561 | 52,658 | |||||||||||||||||||
State | ||||||||||||||||||||||||
Current | (7,339 | ) | (1,555 | ) | (4,654 | ) | (9,436 | ) | (3,720 | ) | (4,940 | ) | ||||||||||||
Deferred | 12,756 | 6,719 | 8,710 | 14,172 | 6,483 | 7,441 | ||||||||||||||||||
Deferred tax credits, net | 6,106 | 6,793 | 5,889 | 6,106 | 6,793 | 5,889 | ||||||||||||||||||
11,523 | 11,957 | 9,945 | 10,842 | 9,556 | 8,390 | |||||||||||||||||||
Total | $ | 91,712 | $ | 84,341 | $ | 76,859 | $ | 80,725 | $ | 69,117 | $ | 61,048 | ||||||||||||
A reconciliation of the amount of income taxes computed at the federal statutory rate of 35% to the amount provided in the consolidated statements of income was as follows: | ||||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amount at the federal statutory income tax rate | $ | 91,672 | $ | 86,711 | $ | 76,092 | $ | 77,126 | $ | 67,914 | $ | 56,812 | ||||||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 7,490 | 7,772 | 6,464 | 7,047 | 6,211 | 5,453 | ||||||||||||||||||
Other, net | (7,450 | ) | (10,142 | ) | (5,697 | ) | (3,448 | ) | (5,008 | ) | (1,217 | ) | ||||||||||||
Total | $ | 91,712 | $ | 84,341 | $ | 76,859 | $ | 80,725 | $ | 69,117 | $ | 61,048 | ||||||||||||
Effective income tax rate | 35 | % | 34 | % | 35.4 | % | 36.6 | % | 35.6 | % | 37.6 | % | ||||||||||||
The Company's effective tax rate increased in 2014 compared to 2013 primarily due to the nondeductibility of merger costs, partly offset by increased tax credits in 2014 and the $2.7 million out-of-period income tax benefits in 2013 (see “Out-of-period income tax benefit”). The Utilities' effective tax rate increased in 2014 compared to 2013 primarily due to the out-of-period income tax benefits. | ||||||||||||||||||||||||
The Company’s and the Utilities' effective tax rate decreased in 2013 compared to 2012 primarily due to $3.5 million lower deferred taxes related to the tax gross-up of AFUDC-equity and a $3.1 million (including $2.7 million related to the Utilities) out-of-period income tax benefit (see “Out-of-period income tax benefit”). | ||||||||||||||||||||||||
The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: | ||||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
December 31 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||||
Net operating loss | $ | — | $ | — | 51,936 | 19,848 | ||||||||||||||||||
Other | 58,352 | 57,239 | 17,663 | 17,295 | ||||||||||||||||||||
Total deferred tax assets | 58,352 | 57,239 | 69,599 | 37,143 | ||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||||
Property, plant and equipment related | 448,723 | 378,280 | 446,259 | 375,771 | ||||||||||||||||||||
Repairs deduction | 86,408 | 75,127 | 86,408 | 75,127 | ||||||||||||||||||||
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,795 | 33,251 | 33,795 | 33,251 | ||||||||||||||||||||
Deferred RAM and RBA revenues | 32,889 | — | 32,889 | — | ||||||||||||||||||||
Retirement benefits | 25,336 | 29,280 | 28,758 | 23,851 | ||||||||||||||||||||
Other | 62,935 | 70,561 | 14,929 | 15,602 | ||||||||||||||||||||
Total deferred tax liabilities | 690,086 | 586,499 | 643,038 | 523,602 | ||||||||||||||||||||
Net deferred income tax liability | $ | 631,734 | $ | 529,260 | $ | 573,439 | $ | 486,459 | ||||||||||||||||
Prepayments and other (Current assets-debit) | $ | — | $ | — | $ | 32,915 | $ | 20,702 | ||||||||||||||||
Other (Current liabilities-credit) | — | — | 3,482 | — | ||||||||||||||||||||
Deferred income taxes (credit) | 631,734 | 529,260 | 602,872 | 507,161 | ||||||||||||||||||||
Net deferred income tax liability | $ | 631,734 | $ | 529,260 | $ | 573,439 | $ | 486,459 | ||||||||||||||||
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. Based upon historical taxable income and projections for future taxable income, management believes it is more likely than not the Company and the Utilities will realize substantially all of the benefits of the deferred tax assets. As of December 31, 2014, the valuation allowance for deferred tax benefits is not significant. In 2014, the net deferred income tax liability continued to increase primarily as a result of accelerated tax deductions taken for bonus depreciation resulting from the Tax Increase Prevention Act of 2014 and the IRS approval of an accounting method that defers the recognition of Revenue Balance Account income. The Utilities are included in the consolidated federal and Hawaii income tax returns of HEI and are subject to the provisions of HEI’s tax sharing agreement, which determines each subsidiary’s (or subgroup's) income tax return liabilities and refunds on a standalone basis as if it filed a separate return (or subgroup consolidated return). Consequently, although HEI consolidated does not expect any unutilized net operating loss (NOL) as of December 31, 2014, standalone Hawaiian Electric consolidated expects an unutilized NOL for federal tax purposes in accordance with the HEI tax sharing agreement. The deferred tax asset associated with this NOL is $52 million and is included in “Prepayments and other.” | ||||||||||||||||||||||||
HEI consolidated. In 2014, 2013 and 2012, credit adjustments to interest expense on income taxes was reflected in “Interest expense – other than on deposit liabilities and other bank borrowings” in the amount of $1.7 million, $0.3 million and $1.4 million, respectively. The credit adjustments to interest expense were primarily due to the resolution of tax issues with the Internal Revenue Service (IRS). As of December 31, 2014 and 2013, the total amount of accrued interest related to uncertain tax positions and recognized on the balance sheet in “Interest and dividends payable” was nil and $0.4 million, respectively. | ||||||||||||||||||||||||
As of December 31, 2014, the total amount of liability for uncertain tax positions was nil. | ||||||||||||||||||||||||
Hawaiian Electric consolidated. In 2014, 2013 and 2012, credit adjustments to interest expense on income taxes was reflected in “Interest and other charges” in the amount of $0.7 million, $0.3 million and $0.5 million, respectively. The credit adjustments to interest expense were primarily due to the resolution of tax issues with the IRS. As of December 31, 2014 and 2013, the total amount of accrued interest related to uncertain tax positions was nil. | ||||||||||||||||||||||||
As of December 31, 2014, the total amount of liability for uncertain tax positions was nil. | ||||||||||||||||||||||||
The changes in total unrecognized tax benefits were as follows: | ||||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Unrecognized tax benefits, January 1 | $ | 0.9 | $ | 0.8 | $ | 5.7 | $ | 0.5 | $ | 0.4 | 3.7 | |||||||||||||
Additions based on tax positions taken during the year | — | — | 0.3 | — | — | 0.3 | ||||||||||||||||||
Reductions based on tax positions taken during the year | — | — | — | — | — | — | ||||||||||||||||||
Additions for tax positions of prior years | 0.1 | 0.5 | — | 0.1 | 0.5 | — | ||||||||||||||||||
Reductions for tax positions of prior years | — | (0.4 | ) | (4.1 | ) | — | (0.4 | ) | (3.6 | ) | ||||||||||||||
Settlements | (1.0 | ) | — | — | (0.6 | ) | — | — | ||||||||||||||||
Lapses of statute of limitations | — | — | (1.1 | ) | — | — | — | |||||||||||||||||
Unrecognized tax benefits, December 31 | $ | — | $ | 0.9 | $ | 0.8 | $ | — | $ | 0.5 | $ | 0.4 | ||||||||||||
The 2012 reduction in unrecognized tax benefits was primarily due to the IRS’s acceptance of the deductibility of costs of repairs to utility generation property for tax years 2007-2009. | ||||||||||||||||||||||||
In 2014, the IRS completed its examination of the Company’s federal income tax returns for tax years 2010 and 2011. The Company and the IRS reached an agreement on all adjustments, primarily related to depreciation, and the Congressional Joint Committee on Taxation approved the resulting tax adjustments in October 2014. The income statement impact of the agreement was not material. Tax years 2007, 2009, and 2010 to 2013 remain subject to examination by the Department of Taxation of the State of Hawaii. | ||||||||||||||||||||||||
As of December 31, 2014, the disclosures above present the Company’s and the Utilities' accruals for potential tax liabilities and related interest. Based on information currently available, the Company and the Utilities believe these accruals have adequately provided for potential income tax issues with federal and state tax authorities and related interest, and that the ultimate resolution of tax issues for all open tax periods will not have a material adverse effect on its results of operations, financial condition or liquidity. | ||||||||||||||||||||||||
Out-of-period income tax benefit. During 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. | ||||||||||||||||||||||||
Recent tax developments. In September 2013, the IRS issued final regulations addressing the acquisition, production and improvement of tangible property, which are effective January 1, 2014. Management evaluated the impact of these new regulations, and 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 and accounted for in its tax computations. 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 in June 2013, the IRS 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 intends to adopt a method consistent with this guidance in its 2014 tax return. |
Cash_flows
Cash flows | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Cash flows | ||||||||||||
13 · Cash flows | ||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||
(in millions) | ||||||||||||
Supplemental disclosures of cash flow information | ||||||||||||
HEI consolidated | ||||||||||||
Interest paid to non-affiliates | $ | 84 | $ | 85 | $ | 84 | ||||||
Income taxes paid | 47 | 18 | 17 | |||||||||
Income taxes refunded | 24 | 4 | 31 | |||||||||
Hawaiian Electric consolidated | ||||||||||||
Interest paid to non-affiliates | 61 | 59 | 57 | |||||||||
Income taxes paid | 6 | 6 | 6 | |||||||||
Income taxes refunded | 8 | 32 | 9 | |||||||||
Supplemental disclosures of noncash activities | ||||||||||||
HEI consolidated | ||||||||||||
Property, plant and equipment-unpaid invoices and other | 68 | 24 | 37 | |||||||||
Common stock dividends reinvested in HEI common stock 1 | — | 24 | 24 | |||||||||
Increases in common stock related to director and officer compensatory plans | 6 | 5 | 6 | |||||||||
Loans transferred from held for investment to held for sale | — | 25 | — | |||||||||
Real estate acquired in settlement of loans | 3 | 4 | 11 | |||||||||
Obligations to fund low income housing investments, net | 14 | 1 | — | |||||||||
Hawaiian Electric consolidated | ||||||||||||
Electric utility property, plant and equipment | ||||||||||||
AFUDC-equity | 7 | 6 | 7 | |||||||||
Estimated fair value of noncash contributions in aid of construction | 3 | 5 | 10 | |||||||||
Unpaid invoices and other | 65 | 24 | 37 | |||||||||
1 | The amounts shown represents common stock dividends reinvested in HEI common stock under the HEI DRIP in noncash transactions. |
Regulatory_restrictions_on_net
Regulatory restrictions on net assets | 12 Months Ended |
Dec. 31, 2014 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory restrictions on net assets | |
14 · Regulatory restrictions on net assets | |
As of December 31, 2014, the Utilities could not transfer approximately $668 million of net assets to HEI in the form of dividends, loans or advances without PUC approval. | |
ASB is required to notify the FRB and OCC prior to making any capital distribution (including dividends) to HEI (through ASB Hawaii). Generally, the FRB and OCC may disapprove or deny ASB’s request to make a capital distribution if the proposed distribution will cause ASB to become undercapitalized, or the proposed distribution raises safety and soundness concerns, or the proposed distribution violates a prohibition contained in any statute, regulation, or agreement between ASB and the OCC. As of December 31, 2014, ASB could transfer approximately $103 million of net assets to HEI in the form of dividends and still maintain its “well-capitalized” position. | |
HEI management expects that the regulatory restrictions will not materially affect the operations of the Company nor HEI’s ability to pay common stock dividends. |
Significant_group_concentratio
Significant group concentrations of credit risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Significant group concentrations of credit risk | |
15 · Significant group concentrations of credit risk | |
Most of the Company’s business activity is with customers located in the State of Hawaii. | |
The Utilities are regulated operating electric public utilities engaged in the generation, purchase, transmission, distribution and sale of electricity on the islands of Oahu, Hawaii, Maui, Lanai and Molokai in the State of Hawaii. The Utilities provide the only electric public utility service on the islands they serve. The Utilities grant credit to customers, all of whom reside or conduct business in the State of Hawaii. | |
Most of ASB’s financial instruments are based in the State of Hawaii, except for the investment securities it owns. Substantially all real estate loans receivable are collateralized by real estate in Hawaii. ASB’s policy is to require mortgage insurance on all real estate loans with a loan to appraisal ratio in excess of 80% at origination. |
Fair_value_measurements
Fair value measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair value measurements | ||||||||||||||||||||||||||||||||
16 · Fair value measurements | ||||||||||||||||||||||||||||||||
Fair value estimates are estimates of 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 and the Utilities use their 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 or the Utilities 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 and the Utilities' 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 and the Utilities group their 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. | |||||||||||||||||||||||||||||||
Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. | ||||||||||||||||||||||||||||||||
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include mortgage servicing rights accounted for by the amortization method, loan impairments for certain loans, goodwill and AROs. The fair value of Hawaiian Electric’s 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 Note 4). | ||||||||||||||||||||||||||||||||
Fair value measurement and disclosure valuation methodology. Following are descriptions of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not carried at fair value: | ||||||||||||||||||||||||||||||||
Short-term borrowings—other than bank. The carrying amount approximated fair value because of the short maturity of these instruments. | ||||||||||||||||||||||||||||||||
Investment securities. The fair value of ASB’s investment securities is determined quarterly through pricing obtained from independent third-party pricing services or from brokers not affiliated with the trade. Non-binding broker quotes are infrequent and generally occur for new securities that are settled close to the month-end pricing date. The third-party pricing vendors the Company uses for pricing its securities are reputable firms that provide pricing services on a global basis and have processes in place to ensure quality and control. The third-party pricing services use a variety of methods to determine the fair value of securities that fall under Level 2 of the Company’s fair value measurement hierarchy. Among the considerations are quoted prices for similar securities in an active market, yield spreads for similar trades, adjustments for liquidity, size, collateral characteristics, historic and generic prepayment speeds, and other observable market factors. | ||||||||||||||||||||||||||||||||
To enhance the robustness of the pricing process, ASB will on a quarterly basis compare its standard third-party vendor’s price with that of another third-party vendor. If the prices are within an acceptable tolerance range, the price of the standard vendor will be accepted. If the variance is beyond the tolerance range, an evaluation will be conducted by ASB and a challenge to the price may be made. Fair value in such cases will be based on the value that best reflects the data and observable characteristics of the security. In all cases, the fair value used will have been independently determined by a third-party pricing vendor or non-affiliated broker and not by ASB. | ||||||||||||||||||||||||||||||||
Loans held for sale. Residential mortgage loans carried at the lower of cost or market are valued using market observable pricing inputs, which are derived from third party loan sales and securitizations and, therefore, are classified within Level 2 of the valuation hierarchy. | ||||||||||||||||||||||||||||||||
Loans held for investment. Fair value of loans held for investment is derived using a discounted cash flow approach which includes an evaluation of the underlying loan characteristics. The valuation model uses loan characteristics which includes product type, maturity dates, and the underlying interest rate of the portfolio. This information is input into the valuation models along with various forecast valuation assumptions including prepayment forecasts, to determine the discount rate. These assumptions are derived from internal and third party sources. Noting the valuation is derived from model-based techniques, ASB includes loans held for investment within Level 3 of the valuation hierarchy. | ||||||||||||||||||||||||||||||||
Impaired loans. At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Fair value is determined primarily by using an income, cost, or market approach and is normally provided through appraisals. Impaired loans carried at fair value generally receive specific allocations within the allowance for loan losses. For collateral-dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Generally, impaired loans are evaluated quarterly for additional impairment and adjusted accordingly. | ||||||||||||||||||||||||||||||||
Other real estate owned. Foreclosed assets are carried at fair value (less estimated costs to sell) and is generally based upon appraisals or independent market prices that are periodically updated subsequent to classification as real estate owned. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. ASB estimates the fair value of collateral-dependent loans and real estate owned using the sales comparison approach. | ||||||||||||||||||||||||||||||||
Mortgage servicing rights. Mortgage servicing rights (MSR) are capitalized at fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. Mortgage servicing rights are evaluated for impairment at each reporting date. ASB's MSR is stratified based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in "Other income, net" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. ASB compares the fair value of MSR to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and their own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of its own estimate. | ||||||||||||||||||||||||||||||||
Tax credit investments. The estimated fair value of tax credit investments was determined in relation to the yield an aquirer of these investments would expect in relation to yields experienced on current new issues or secondary market transactions. | ||||||||||||||||||||||||||||||||
Time deposits. 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 borrowings. For fixed-rate advances and repurchase agreements, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for fixed-rate advances and repurchase agreements of similar remaining maturities. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third party pricing services. For hybrid advances, fair value is obtained from an FHLB proprietary model mathematical approximation of the market value of the underlying hedge. The terms of the hedge are similar to the advances and therefore classified as Level 2 within the valuation hierarchy. | ||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||
Interest rate lock commitments (IRLCs). 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. | ||||||||||||||||||||||||||||||||
Forward sales commitments. To be announced (TBA) mortgage-backed securities 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 using quoted prices in the market place that are observable and are classified as Level 2 measurements. | ||||||||||||||||||||||||||||||||
The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. For stock in Federal Home Loan Bank of Seattle, the carrying amount is a reasonable estimate of fair value. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings and money market deposits, the carrying amount is a reasonable estimate of fair value as these liabilities have no stated maturity. | ||||||||||||||||||||||||||||||||
Estimated fair value | ||||||||||||||||||||||||||||||||
(in thousands) | Carrying or | Quoted prices in active markets for identical assets | Significant other Observable inputs | Significant Unobservable inputs | Total | |||||||||||||||||||||||||||
notional | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
amount | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | ||||||||||||||||||||||
Available-for-sale investment securities | 550,394 | — | 550,394 | — | 550,394 | |||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle | 69,302 | — | 69,302 | — | 69,302 | |||||||||||||||||||||||||||
Loans receivable, net | 4,397,457 | — | — | 4,578,822 | 4,578,822 | |||||||||||||||||||||||||||
Derivative assets | 30,120 | — | 398 | — | 398 | |||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Deposit liabilities | 4,623,415 | — | 4,623,773 | — | 4,623,773 | |||||||||||||||||||||||||||
Short-term borrowings—other than bank | 118,972 | — | 118,972 | — | 118,972 | |||||||||||||||||||||||||||
Other bank borrowings | 290,656 | — | 298,837 | — | 298,837 | |||||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,506,546 | — | 1,622,736 | — | 1,622,736 | |||||||||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,206,546 | — | 1,313,893 | — | 1,313,893 | |||||||||||||||||||||||||||
Derivative liabilities | 32,043 | 71 | 43 | — | 114 | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | ||||||||||||||||||||||
Available-for-sale investment securities | 529,007 | — | 529,007 | — | 529,007 | |||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle | 92,546 | — | 92,546 | — | 92,546 | |||||||||||||||||||||||||||
Loans receivable, net | 4,115,415 | — | — | 4,211,290 | 4,211,290 | |||||||||||||||||||||||||||
Derivative assets | 46,356 | 98 | 531 | — | 629 | |||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Deposit liabilities | 4,372,477 | — | 4,374,377 | — | 4,374,377 | |||||||||||||||||||||||||||
Short-term borrowings—other than bank | 105,482 | — | 105,482 | — | 105,482 | |||||||||||||||||||||||||||
Other bank borrowings | 244,514 | — | 256,029 | — | 256,029 | |||||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,492,945 | — | 1,508,425 | — | 1,508,425 | |||||||||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,217,945 | — | 1,228,966 | — | 1,228,966 | |||||||||||||||||||||||||||
Derivative liabilities | 4,732 | — | 26 | — | 26 | |||||||||||||||||||||||||||
As of December 31, 2014 and 2013, loans serviced by ASB for others had notional amounts of $1.4 billion and $1.4 billion, respectively, and the estimated fair value of the mortgage servicing rights for such loans was $14.5 million and $15.7 million, respectively. | ||||||||||||||||||||||||||||||||
Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: | ||||||||||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | |||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | ||||||||||||||||||||
Available-for-sale investment securities (bank segment) | ||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 430,834 | $ | — | $ | — | $ | 369,444 | $ | — | ||||||||||||||||||||
U.S. Treasury and federal agency obligations | — | 119,560 | — | — | 80,973 | — | ||||||||||||||||||||||||||
Municipal bonds | — | — | — | — | 78,590 | — | ||||||||||||||||||||||||||
$ | — | $ | 550,394 | $ | — | $ | — | $ | 529,007 | $ | — | |||||||||||||||||||||
Derivative assets 1 | ||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 393 | $ | — | $ | — | $ | 488 | $ | — | ||||||||||||||||||||
Forward commitments | — | 5 | — | 98 | 43 | — | ||||||||||||||||||||||||||
$ | — | $ | 398 | $ | — | $ | 98 | $ | 531 | $ | — | |||||||||||||||||||||
Derivative liabilities 1 | ||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 3 | $ | — | $ | — | $ | 24 | $ | — | ||||||||||||||||||||
Forward commitments | 71 | 40 | — | — | 2 | — | ||||||||||||||||||||||||||
$ | 71 | $ | 43 | $ | — | $ | — | $ | 26 | $ | — | |||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||
There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Fair value measurements on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. These measurements primarily result from assets carried at the lower of cost or fair value or from impairment of individual assets. Assets measured at fair value on a nonrecurring basis were as follows: | ||||||||||||||||||||||||||||||||
Fair value measurements using | ||||||||||||||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Loans | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||
Tax credit investments | 9 | — | — | 9 | ||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | — | — | — | — | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Loans | 4 | — | — | 4 | ||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | — | — | — | — | ||||||||||||||||||||||||||||
For 2014 and 2013, there were no adjustments to fair value for ASB’s loans held for sale. | ||||||||||||||||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||||||
Significant unobservable | ||||||||||||||||||||||||||||||||
input value 1 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted | |||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Residential loans | $ | 2,297 | Fair value of property or collateral | Appraised value less 7% selling cost | 39-99% | 83% | ||||||||||||||||||||||||||
Home equity lines of credit | 3 | Fair value of property or collateral | Appraised value less 7% selling cost | 7% | ||||||||||||||||||||||||||||
Commercial loans | 145 | Fair value of property or collateral | Fair value of business assets | 91% | ||||||||||||||||||||||||||||
Total loans | $ | 2,445 | ||||||||||||||||||||||||||||||
Tax credit investments | $ | 8,975 | Discounted cash flow | Present value of expected future cash flows | 5-93% | 88% | ||||||||||||||||||||||||||
Discount rate | 7% | |||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | $ | 288 | Fair value of property or collateral | Appraised value less 7% selling cost | 100% | 100% | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Residential loans | $ | 2,361 | Fair value of property or collateral | Appraised value less 7% selling cost | 44-96% | 87% | ||||||||||||||||||||||||||
Home equity lines of credit | 170 | Fair value of property or collateral | Appraised value less 7% selling cost | 45-50% | 50% | |||||||||||||||||||||||||||
Commercial loans | 217 | Fair value of property or collateral | Fair value of business assets | 19% | ||||||||||||||||||||||||||||
Commercial loans | 1,668 | Discounted cash flow | Present value of expected future cash flows | 58% | ||||||||||||||||||||||||||||
Discount rate | 4.50% | |||||||||||||||||||||||||||||||
Total loans | $ | 4,416 | ||||||||||||||||||||||||||||||
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 measurements. | ||||||||||||||||||||||||||||||||
Retirement benefit plans | ||||||||||||||||||||||||||||||||
Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows: | ||||||||||||||||||||||||||||||||
Pension benefits | Other benefits | |||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | |||||||||||||||||||||||||||||||
(in millions) | December 31 | Level 1 | Level 2 | Level 3 | December 31 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Equity securities | $ | 649 | $ | 649 | $ | — | $ | — | $ | 99 | $ | 99 | $ | — | $ | — | ||||||||||||||||
Equity index funds | 132 | 132 | — | — | 19 | 19 | — | — | ||||||||||||||||||||||||
Fixed income securities | 428 | 121 | 307 | — | 49 | 43 | 6 | — | ||||||||||||||||||||||||
Pooled and mutual funds and other | 82 | 1 | 81 | — | 14 | 3 | 11 | — | ||||||||||||||||||||||||
Total | $ | 1,291 | $ | 903 | $ | 388 | $ | — | $ | 181 | $ | 164 | $ | 17 | $ | — | ||||||||||||||||
Cash, receivables and payables, net | (25 | ) | (1 | ) | ||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,266 | $ | 180 | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Equity securities | $ | 672 | $ | 672 | $ | — | $ | — | $ | 102 | $ | 102 | $ | — | $ | — | ||||||||||||||||
Equity index funds | 127 | 127 | — | — | 19 | 19 | — | — | ||||||||||||||||||||||||
Fixed income securities | 350 | 122 | 228 | — | 46 | 40 | 6 | — | ||||||||||||||||||||||||
Pooled and mutual funds and other | 84 | — | 83 | 1 | 13 | — | 13 | — | ||||||||||||||||||||||||
Total | 1,233 | $ | 921 | $ | 311 | $ | 1 | 180 | $ | 161 | $ | 19 | $ | — | ||||||||||||||||||
Cash, receivables and payables, net | (46 | ) | (1 | ) | ||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,187 | $ | 179 | ||||||||||||||||||||||||||||
The fair values of the financial instruments shown in the table above represent the Company’s best estimates of the amounts that would be received upon sale of those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances. | ||||||||||||||||||||||||||||||||
In connection with the adoption of the fair value measurement standards, the Company adopted the provisions of ASU No. 2009-12, “Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent),” which allows for the estimation of the fair value of investments in investment companies for which the investment does not have a readily determinable fair value, using net asset value per share or its equivalent as a practical expedient. | ||||||||||||||||||||||||||||||||
The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Equity securities, equity index funds, U.S. Treasury fixed income securities and public mutual funds (Level 1). Equity securities, equity index funds, U.S. Treasury fixed income securities and public mutual funds are valued at the closing price reported on the active market on which the individual securities or funds are traded. | ||||||||||||||||||||||||||||||||
Fixed income securities and pooled and mutual funds and other (Level 2). Fixed income securities, other than those issued by the U.S. Treasury, are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Pooled and mutual funds include commingled equity funds and other closed funds, respectively, that are not open to public investment and are valued at the net asset value per share. Certain other investments are valued based on discounted cash flow analyses, using observable inputs. | ||||||||||||||||||||||||||||||||
Other (Level 3). Venture capital interest is valued at historical cost, modified by revaluation of financial assets and financial liabilities at fair value through profit or loss. | ||||||||||||||||||||||||||||||||
For 2014 and 2013, the changes in Level 3 assets were as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in thousands) | Pension | Other | Pension | Other | ||||||||||||||||||||||||||||
benefits | benefits | benefits | benefits | |||||||||||||||||||||||||||||
Balance, January 1 | $ | 580 | $ | 18 | $ | 581 | $ | 18 | ||||||||||||||||||||||||
Realized and unrealized losses | (203 | ) | (6 | ) | (1 | ) | — | |||||||||||||||||||||||||
Purchases and settlements, net | (282 | ) | (8 | ) | — | — | ||||||||||||||||||||||||||
Balance, December 31 | $ | 95 | $ | 4 | $ | 580 | $ | 18 | ||||||||||||||||||||||||
Quarterly_information_unaudite
Quarterly information (unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly information (unaudited) | ||||||||||||||||||||
17 · Quarterly information (unaudited) | ||||||||||||||||||||
Selected quarterly information was as follows: | ||||||||||||||||||||
Quarters ended | Years ended | |||||||||||||||||||
(in thousands, except per share amounts) | March 31 | June 30 | Sept. 30 | Dec. 31 | December 31 | |||||||||||||||
HEI consolidated | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 783,749 | $ | 798,657 | $ | 867,096 | $ | 790,040 | $ | 3,239,542 | ||||||||||
Operating income | 88,306 | 82,275 | 91,102 | 67,241 | 328,924 | |||||||||||||||
Net income | 46,400 | 41,894 | 48,286 | 33,630 | 170,210 | |||||||||||||||
Net income for common stock | 45,927 | 41,421 | 47,815 | 33,157 | 168,320 | |||||||||||||||
Basic earnings per common share 1 | 0.45 | 0.41 | 0.47 | 0.32 | 1.65 | |||||||||||||||
Diluted earnings per common share 2 | 0.45 | 0.41 | 0.46 | 0.32 | 1.64 | |||||||||||||||
Dividends per common share | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | |||||||||||||||
Market price per common share 3 | ||||||||||||||||||||
High | 26.8 | 25.65 | 26.89 | 35 | 35 | |||||||||||||||
Low | 24.39 | 23.04 | 22.71 | 26.04 | 22.71 | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 782,232 | $ | 794,567 | $ | 829,168 | $ | 832,503 | $ | 3,238,470 | ||||||||||
Operating income | 68,825 | 80,207 | 88,038 | 78,349 | 315,419 | |||||||||||||||
Net income | 34,152 | 41,061 | 48,707 | 39,486 | 163,406 | |||||||||||||||
Net income for common stock | 33,679 | 40,588 | 48,236 | 39,013 | 161,516 | |||||||||||||||
Basic earnings per common share 1 | 0.34 | 0.41 | 0.49 | 0.39 | 1.63 | |||||||||||||||
Diluted earnings per common share 2 | 0.34 | 0.41 | 0.48 | 0.39 | 1.62 | |||||||||||||||
Dividends per common share | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | |||||||||||||||
Market price per common share 3 | ||||||||||||||||||||
High | 27.92 | 28.3 | 27.24 | 27.15 | 28.3 | |||||||||||||||
Low | 25.5 | 23.84 | 24.12 | 24.51 | 23.84 | |||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 720,062 | $ | 738,429 | $ | 803,565 | $ | 725,267 | $ | 2,987,323 | ||||||||||
Operating income | 70,666 | 70,068 | 76,156 | 58,878 | 275,768 | |||||||||||||||
Net income | 35,919 | 34,729 | 39,377 | 29,611 | 139,636 | |||||||||||||||
Net income for common stock | 35,420 | 34,230 | 38,879 | 29,112 | 137,641 | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | 717,441 | 728,525 | 764,054 | 770,152 | 2,980,172 | |||||||||||||||
Operating income | 51,121 | 58,975 | 69,853 | 65,564 | 245,513 | |||||||||||||||
Net income | 24,928 | 29,192 | 38,315 | 32,489 | 124,924 | |||||||||||||||
Net income for common stock | 24,429 | 28,693 | 37,817 | 31,990 | 122,929 | |||||||||||||||
Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful. | ||||||||||||||||||||
1 | The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. | |||||||||||||||||||
2 | The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end. | |||||||||||||||||||
3 | Market prices of HEI common stock (symbol HE) shown are as reported on the NYSE Composite Tape. |
SCHEDULE_I_CONDENSED_FINANCIAL
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | Hawaiian Electric Industries, Inc. | ||||||||||||
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
December 31 | 2014 | 2013 | |||||||||||
(dollars in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 276 | $ | 571 | |||||||||
Accounts receivable | 1,991 | 1,661 | |||||||||||
Property, plant and equipment, net | 4,917 | 5,419 | |||||||||||
Deferred income tax assets | 15,922 | 10,057 | |||||||||||
Other assets | 11,070 | 9,550 | |||||||||||
Investments in subsidiaries, at equity | 2,224,452 | 2,122,841 | |||||||||||
$ | 2,258,628 | $ | 2,150,099 | ||||||||||
Liabilities and shareholders’ equity | |||||||||||||
Liabilities | |||||||||||||
Accounts payable | $ | 1,993 | $ | 817 | |||||||||
Interest payable | 2,583 | 4,630 | |||||||||||
Notes payable to subsidiaries | 7,857 | 7,936 | |||||||||||
Commercial paper | 118,972 | 105,482 | |||||||||||
Long-term debt, net | 300,000 | 275,000 | |||||||||||
Retirement benefits liability | 32,030 | 21,559 | |||||||||||
Other | 3,765 | 7,605 | |||||||||||
467,200 | 423,029 | ||||||||||||
Shareholders’ equity | |||||||||||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | — | — | |||||||||||
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 102,565,266 shares and 101,259,800 shares | 1,521,297 | 1,488,126 | |||||||||||
Retained earnings | 297,509 | 255,694 | |||||||||||
Accumulated other comprehensive loss | (27,378 | ) | (16,750 | ) | |||||||||
1,791,428 | 1,727,070 | ||||||||||||
$ | 2,258,628 | $ | 2,150,099 | ||||||||||
Note to Balance Sheets | |||||||||||||
HEI Term loan LIBOR + .90%, due 2016 | $ | 125,000 | $ | — | |||||||||
HEI medium-term note 6.51%, due 2014 | — | 100,000 | |||||||||||
HEI senior note 4.41%, due 2016 | 75,000 | 75,000 | |||||||||||
HEI senior note 5.67%, due 2021 | 50,000 | 50,000 | |||||||||||
HEI senior note 3.99%, due 2023 | 50,000 | 50,000 | |||||||||||
$ | 300,000 | $ | 275,000 | ||||||||||
The aggregate payments of principal required subsequent to December 31, 2014 on long-term debt are nil in 2015, $200 million in 2016, nil in 2017, 2018 and 2019. | |||||||||||||
As of December 31, 2014, HEI has a General Agreement of Indemnity in favor of both Liberty Mutual Insurance Company (Liberty) and Travelers Casualty and Surety Company of America (Travelers) for losses in connection with any and all bonds, undertakings or instruments of guarantee and any renewals or extensions thereof executed by Liberty or Travelers, including, but not limited to, a $0.2 million self-insured United States Longshore & Harbor bond and a $0.6 million self-insured automobile bond. | |||||||||||||
The Company has revised its previously issued "Schedule I - Condensed Financial Information of Registrant; Hawaiian Electric Industries, Inc. (Parent Company); Condensed Balance Sheets" to correct for an error in the presentation of deferred tax amounts related to Hawaiian Electric’s net operating loss carryforwards as of December 31, 2013. Amounts were reclassified among deferred income tax assets, other assets, deferred income taxes (liabilities) and other liabilities. These adjustments are not considered material, individually or in the aggregate, to the previously issued Condensed Balance Sheet as of December 31, 2013 and had no impact on the Company's Consolidated Balance Sheet as of December 31, 2013. The table below illustrates the effects of these adjustments on the Condensed Balance Sheet for those line items affected: | |||||||||||||
31-Dec-13 | |||||||||||||
(in thousands) | As previously filed | As revised | Difference | ||||||||||
Deferred income tax assets | $ | 1,594 | $ | 10,057 | $ | 8,463 | |||||||
Other assets | 23,679 | 9,550 | (14,129 | ) | |||||||||
Total assets | 2,155,765 | 2,150,099 | (5,666 | ) | |||||||||
Deferred income taxes | 11,385 | — | (11,385 | ) | |||||||||
Other liabilities | 1,886 | 7,605 | 5,719 | ||||||||||
Total liabilities | 428,695 | 423,029 | (5,666 | ) | |||||||||
Total liabilities and shareholders' equity | 2,155,765 | 2,150,099 | (5,666 | ) | |||||||||
Hawaiian Electric Industries, Inc. | |||||||||||||
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) | |||||||||||||
HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) | |||||||||||||
CONDENSED STATEMENTS OF INCOME | |||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | ||||||||||
(in thousands) | |||||||||||||
Revenues | $ | 303 | $ | 288 | $ | 221 | |||||||
Equity in net income of subsidiaries | 188,534 | 180,359 | 157,883 | ||||||||||
Expenses: | |||||||||||||
Operating, administrative and general | 20,921 | 16,063 | 16,191 | ||||||||||
Depreciation of property, plant and equipment | 575 | 596 | 672 | ||||||||||
Taxes, other than income taxes | 469 | 497 | 421 | ||||||||||
Interest expense | 11,599 | 16,207 | 16,695 | ||||||||||
Income before income tax benefits | 155,273 | 147,284 | 124,125 | ||||||||||
Income tax benefits | 13,047 | 14,232 | 14,533 | ||||||||||
Net income | $ | 168,320 | $ | 161,516 | $ | 138,658 | |||||||
The Company’s financial reporting policy for income tax allocations is based upon a separate entity concept whereby each subsidiary provides income tax expense (or benefits) as if each were a separate taxable entity. The difference between the aggregate separate tax return income tax provisions and the consolidated financial reporting income tax provision is charged or credited to HEI’s separate tax provision. | |||||||||||||
HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) | |||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||
Incorporated by reference are HEI and Subsidiaries’ Statements of Consolidated Comprehensive Income and Consolidated Statements of Changes in Shareholders’ Equity in Part II, Item 8. | |||||||||||||
Hawaiian Electric Industries, Inc. | |||||||||||||
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) | |||||||||||||
HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | ||||||||||
(in thousands) | |||||||||||||
Cash flows from operating activities | |||||||||||||
Net income | $ | 168,320 | $ | 161,516 | $ | 138,658 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||
Equity in net income | (188,534 | ) | (180,359 | ) | (157,883 | ) | |||||||
Common stock dividends/distributions received from subsidiaries | 124,492 | 121,578 | 118,044 | ||||||||||
Depreciation of property, plant and equipment | 575 | 596 | 672 | ||||||||||
Other amortization | 786 | 800 | 845 | ||||||||||
Increase in deferred income taxes | (15,913 | ) | 15,228 | 150 | |||||||||
Excess tax benefits from share-based payment arrangements | (277 | ) | (430 | ) | (61 | ) | |||||||
Changes in assets and liabilities | |||||||||||||
Increase in accounts receivable | (2,687 | ) | (2,167 | ) | (475 | ) | |||||||
Increase (decrease) in accounts and interest payable | (871 | ) | (23,420 | ) | 19,995 | ||||||||
Change in prepaid and accrued income taxes | 15,867 | (15,604 | ) | (4,861 | ) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 10,472 | (6,449 | ) | 1,805 | |||||||||
Changes in other assets and liabilities | (11,436 | ) | 10,985 | 10,229 | |||||||||
Net cash provided by operating activities | 100,794 | 82,274 | 127,118 | ||||||||||
Cash flows from investing activities | |||||||||||||
Capital expenditures | (74 | ) | (201 | ) | (410 | ) | |||||||
Investments in subsidiaries | (40,000 | ) | (78,500 | ) | (44,000 | ) | |||||||
Net cash used in investing activities | (40,074 | ) | (78,701 | ) | (44,410 | ) | |||||||
Cash flows from financing activities | |||||||||||||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | (222 | ) | 56 | (1,797 | ) | ||||||||
Net increase in short-term borrowings with original maturities of three months or less | 13,490 | 21,788 | 14,873 | ||||||||||
Proceeds from issuance of long-term debt | 125,000 | 50,000 | — | ||||||||||
Repayment of long-term debt | (100,000 | ) | (50,000 | ) | (7,000 | ) | |||||||
Excess tax benefits from share-based payment arrangements | 277 | 430 | 61 | ||||||||||
Net proceeds from issuance of common stock | 26,898 | 55,086 | 23,613 | ||||||||||
Common stock dividends | (126,458 | ) | (98,383 | ) | (96,202 | ) | |||||||
Net cash used in financing activities | (61,015 | ) | (21,023 | ) | (66,452 | ) | |||||||
Net increase (decrease) in cash and equivalents | (295 | ) | (17,450 | ) | 16,256 | ||||||||
Cash and cash equivalents, January 1 | 571 | 18,021 | 1,765 | ||||||||||
Cash and cash equivalents, December 31 | $ | 276 | $ | 571 | $ | 18,021 | |||||||
Supplemental disclosures of noncash activities: | |||||||||||||
In 2014, 2013 and 2012, $2.4 million, $2.3 million and $1.8 million, respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions. | |||||||||||||
In 2014, 2013 and 2012, $2.5 million, $2.5 million and $2.5 million, respectively, were contributed as equity by HEI into ASB Hawaii with a corresponding increase in HEI notes payable to ASB Hawaii in noncash transactions. | |||||||||||||
Under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), common stock dividends reinvested by shareholders in HEI common stock in noncash transactions amounted to nil, $24 million and $24 million in 2014, 2013 and 2012, respectively. HEI satisfied the requirements of the HEI DRIP, Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and ASB 401(k) Plan (from March 6, 2014 to date and from August 18, 2011 through January 8, 2012) by acquiring for cash its common shares through open market purchases rather than by issuing additional shares. | |||||||||||||
Note: | |||||||||||||
The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | Hawaiian Electric Industries, Inc. and subsidiaries | |||||||||||||||||||||
and Hawaiian Electric Company, Inc. and subsidiaries | ||||||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
Years ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | ||||||||||||||||||
(in thousands) | Additions | |||||||||||||||||||||
Description | Balance | Charged to | Charged | Deductions | Balance at | |||||||||||||||||
at begin- | costs and | to other | end of | |||||||||||||||||||
ning of | expenses | accounts | period | |||||||||||||||||||
period | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 2,329 | $ | 1,384 | $ | 1,613 | (a) | $ | 3,367 | (b) | $ | 1,959 | ||||||||||
Allowance for uncollectible interest – bank | $ | 1,661 | $ | — | $ | — | $ | 147 | $ | 1,514 | ||||||||||||
Allowance for losses for loans receivable – bank | $ | 40,116 | $ | 6,126 | $ | 4,926 | (a) | $ | 5,550 | (b) | $ | 45,618 | ||||||||||
Allowance for mortgage-servicing assets – bank | $ | 251 | $ | 53 | $ | — | $ | 95 | $ | 209 | ||||||||||||
Deferred tax valuation allowance – HEI | $ | 278 | $ | 17 | $ | — | $ | 250 | $ | 45 | ||||||||||||
2013 | ||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 2,148 | $ | 3,812 | $ | 1,943 | (a) | $ | 5,574 | (b) | $ | 2,329 | ||||||||||
Allowance for uncollectible interest – bank | $ | 3,166 | $ | — | $ | — | $ | 1,505 | $ | 1,661 | ||||||||||||
Allowance for losses for loans receivable – bank | $ | 41,985 | $ | 1,507 | $ | 4,826 | (a) | $ | 8,202 | (b) | $ | 40,116 | ||||||||||
Allowance for mortgage-servicing assets – bank | $ | 498 | $ | — | $ | (60 | ) | $ | 187 | $ | 251 | |||||||||||
Deferred tax valuation allowance – HEI | $ | 278 | $ | — | $ | — | $ | — | $ | 278 | ||||||||||||
2012 | ||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 2,221 | $ | 3,230 | $ | 1,180 | (a) | $ | 4,483 | (b) | $ | 2,148 | ||||||||||
Allowance for uncollectible interest – bank | $ | 4,825 | $ | — | $ | — | $ | 1,659 | $ | 3,166 | ||||||||||||
Allowance for losses for loans receivable – bank | $ | 37,906 | $ | 12,883 | $ | 4,026 | (a) | $ | 12,830 | (b) | $ | 41,985 | ||||||||||
Allowance for mortgage-servicing assets – bank | $ | 175 | $ | 504 | $ | — | $ | 181 | $ | 498 | ||||||||||||
Deferred tax valuation allowance – HEI | $ | 278 | $ | — | $ | — | $ | — | $ | 278 | ||||||||||||
(a) | Primarily recoveries. | |||||||||||||||||||||
(b) | Bad debts charged off. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ significantly from those estimates. | |
Material estimates that are particularly susceptible to significant change for the Company include the amounts reported for investment and mortgage-related securities (ASB only); property, plant and equipment; pension and other postretirement benefit obligations; contingencies and litigation; income taxes; regulatory assets and liabilities (Utilities only); electric utility revenues (Utilities only); and allowance for loan losses (ASB only). | ||
Consolidation | Consolidation. The HEI consolidated financial statements include the accounts of HEI and its subsidiaries (collectively, the Company). The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries. The consolidated financial statements exclude subsidiaries which are variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. Investments in companies over which the Company or the Utilities have the ability to exercise significant influence, but not control, are accounted for using the equity method. All material intercompany accounts and transactions have been eliminated in consolidation. See Note 6 for information regarding unconsolidated VIEs. | |
Cash and cash equivalents | Cash and cash equivalents. The Utilities consider cash on hand, deposits in banks, money market accounts, certificates of deposit, short-term commercial paper of non-affiliates and liquid investments (with original maturities of three months or less) to be cash and cash equivalents. The Company considers the same items to be cash and cash equivalents as well as ASB’s deposits with the Federal Home Loan Bank (FHLB) of Seattle, federal funds sold (excess funds that ASB loans to other banks overnight at the federal funds rate) and securities purchased under resale agreements. | |
Equity method | Equity method. Investments in up to 50%-owned affiliates over which the Company or the Utilities have the ability to exercise significant influence over the operating and financing policies and investments in unconsolidated subsidiaries (e.g. HECO Capital Trust III) are accounted for under the equity method, whereby the investment is carried at cost, plus (or minus) the equity in undistributed earnings (or losses) and minus distributions since acquisition. Equity in earnings or losses is reflected in operating revenues. Equity method investments are also evaluated for OTTI. | |
Property, plant and equipment | Property, plant and equipment. Property, plant and equipment are reported at cost. Self-constructed electric utility plant includes engineering, supervision, administrative and general costs and an allowance for the cost of funds used during the construction period. These costs are recorded in construction in progress and are transferred to utility plant when construction is completed and the facilities are either placed in service or become useful for public utility purposes. Costs for betterments that make utility plant more useful, more efficient, of greater durability or of greater capacity are also capitalized. Upon the retirement or sale of electric utility plant, generally no gain or loss is recognized. The cost of the plant retired is charged to accumulated depreciation. Amounts collected from customers for cost of removal (expected to exceed salvage value in the future) are included in regulatory liabilities. | |
Depreciation | Depreciation. Depreciation is computed primarily using the straight-line method over the estimated lives of the assets being depreciated. Electric utility plant additions in the current year are depreciated beginning January 1 of the following year in accordance with rate-making. Electric utility plant has lives ranging from 20 to 88 years for production plant, from 25 to 65 years for transmission and distribution plant and from 5 to 65 years for general plant. | |
Leases | Leases. HEI, the Utilities and ASB have entered into lease agreements for the use of equipment and office space. The provisions of some of the lease agreements contain renewal options. | |
Retirement benefits | Retirement benefits. Pension and other postretirement benefit costs are charged primarily to expense and electric utility plant (in the case of the Utilities). Funding for the Company’s qualified pension plans (Plans) is based on actuarial assumptions adopted by the Pension Investment Committee administering the Plans on the advice of an enrolled actuary. The participating employers contribute amounts to a master pension trust for the Plans in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), including changes promulgated by the Pension Protection Act of 2006, and considering the deductibility of contributions under the Internal Revenue Code. The Company generally funds at least the net periodic pension cost during the year, subject to limits and targeted funded status as determined with the consulting actuary. Under a pension tracking mechanism approved by the Public Utilities Commission of the State of Hawaii (PUC), the Utilities generally will make contributions to the pension fund at the greater of the minimum level required under the law or net periodic pension cost. | |
Certain health care and/or life insurance benefits are provided to eligible retired employees and the employees’ beneficiaries and covered dependents. The Company generally funds the net periodic postretirement benefit costs other than pensions (except for executive life) and the amortization of the regulatory asset for postretirement benefits other than pensions (OPEB), while maximizing the use of the most tax advantaged funding vehicles, subject to cash flow requirements and reviews of the funded status with the consulting actuary. The Utilities must fund OPEB costs as specified in the OPEB tracking mechanisms, which were approved by the PUC. Future decisions in rate cases could further impact funding amounts. | ||
The Company and the Utilities recognize on their respective balance sheets the funded status of their defined benefit pension and other postretirement benefit plans, as adjusted by the impact of decisions of the PUC. | ||
Environmental expenditures | Environmental expenditures. The Company and the Utilities are subject to numerous federal and state environmental statutes and regulations. In general, environmental contamination treatment costs are charged to expense, unless it is probable that the PUC would allow such costs to be recovered in future rates, in which case such costs would be capitalized as regulatory assets. Also, environmental costs are capitalized if the costs extend the life, increase the capacity, or improve the safety or efficiency of property; the costs mitigate or prevent future environmental contamination; or the costs are incurred in preparing the property for sale. Environmental costs are either capitalized or charged to expense when environmental assessments and/or remedial efforts are probable and the cost can be reasonably estimated. | |
Financing costs | Financing costs. Financing costs related to the registration and sale of HEI common stock are recorded in shareholders’ equity. | |
HEI uses the straight-line method, which approximates the effective interest method, to amortize the long-term debt financing costs of the holding company over the term of the related debt. | ||
The Utilities use the straight-line method, which approximates the effective interest method, to amortize long-term debt financing costs and premiums or discounts over the term of the related debt. Unamortized financing costs and premiums or discounts on the Utilities' long-term debt retired prior to maturity are classified as regulatory assets (costs and premiums) or liabilities (discounts) and are amortized on a straight-line basis over the remaining original term of the retired debt. The method and periods for amortizing financing costs, premiums and discounts, including the treatment of these items when long-term debt is retired prior to maturity, have been established by the PUC as part of the rate-making process. | ||
HEI and the Utilities use the straight-line method to amortize the fees and related costs paid to secure a firm commitment under their line-of-credit arrangements. | ||
Income taxes | Income taxes. Deferred income tax assets and liabilities are established for the temporary differences between the financial reporting bases and the tax bases of the Company’s and the Utilities' assets and liabilities at federal and state tax rates expected to be in effect when such deferred tax assets or liabilities are realized or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. | |
The Company recognizes investment tax credits as a reduction of income tax expense in the period the assets giving rise to such credits are placed in service, except for the Utilities' investment tax credits, which are deferred and amortized over the estimated useful lives of the properties to which the credits relate, in accordance with Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” | ||
The Utilities are included in the consolidated income tax returns of HEI. However, income tax expense has been computed for financial statement purposes as if the Utilities filed separate consolidated Hawaiian Electric income tax returns. | ||
Governmental tax authorities could challenge a tax return position taken by management. If the Company’s position does not prevail, the Company’s results of operations and financial condition may be adversely affected as the related deferred or current income tax asset might be impaired and written down or an unanticipated tax liability might be incurred. | ||
The Company and the Utilities use a “more-likely-than-not” recognition threshold and measurement standard for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. | ||
Fair value measurements | Fair value measurements. Fair value estimates are estimates of 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 and the Utilities use their 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 or the Utilities 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 and the Utilities' 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 and the Utilities group their 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. | |
Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. | ||
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include mortgage servicing rights accounted for by the amortization method, loan impairments for certain loans, goodwill and asset retirement obligations (AROs). | ||
Earnings per share | Earnings per share (HEI only). Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation and the equity forward transactions are added to the denominator. HEI uses the two-class method of computing EPS as restricted stock grants include non-forfeitable rights to dividends and are participating securities. | |
Share-based compensation | Share-based compensation. The Company and the Utilities apply the fair value based method of accounting to account for its stock compensation, including the use of a forfeiture assumption. | |
Impairment of long-lived assets and long-lived assets to be disposed of | Impairment of long-lived assets and long-lived assets to be disposed of. The Company and the Utilities review long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell. | |
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. | ||
The Company and the Utilities retrospectively adopted ASU No. 2013-04 in the first quarter of 2014 and it did not have a material impact on the Company’s or the Utilities' results of operations, financial condition or liquidity. | ||
Unrecognized tax benefits (UTBs). 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 requires the netting of UTBs against a deferred tax asset for a loss or other tax carryforwards that would apply in settlement of the uncertain tax positions. UTBs should be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. | ||
The Company and the Utilities prospectively adopted ASU No. 2013-11 in the first quarter of 2014 and it did not have a material impact on the Company’s or the Utilities' results of operations, financial condition or liquidity. | ||
Investments in Qualified Affordable Housing Projects. In January 2014, the FASB issued ASU No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects,” which permits entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendments also require additional disclosures. | ||
The Company has not determined whether it will adopt ASU No. 2014-01 in the first quarter of 2015. | ||
Reclassification of loans upon foreclosure. In January 2014, the FASB issued ASU No. 2014-04, "Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” which clarifies when an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer loan. A creditor is considered to have received physical possession of residential real estate property collateralizing a consumer loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through a deed in lieu of foreclosure or through a similar legal agreement. The amendment also requires additional disclosures. | ||
The Company plans to prospectively adopt ASU No. 2014-04 in the first quarter of 2015 and does not expect the adoption to have a material impact on the Company’s results of operations, financial condition or liquidity. | ||
Revenues from contracts. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: (Topic 606).” The core principle of the guidance in ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract/s with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies a performance obligation. | ||
The Company plans to adopt ASU No. 2014-09 in the first quarter of 2017, but has not determined the method of adoption (full or modified retrospective application) nor the impact of adoption on its results of operations, financial condition or liquidity. | ||
Repurchase agreements. In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure,” which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The ASU requires a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The ASU also requires expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. | ||
The Company plans to adopt ASU No. 2014-11 in the first quarter of 2015 and does not expect the adoption to have a material impact on the Company's results of operations, financial condition or liquidity. | ||
Reclassifications and revisions | Reclassifications. Hawaiian Electric changed its consolidated statements of income for each quarter in 2013 from a utility presentation to a commercial company presentation, under which all operating revenues and expenses (including non-regulated revenues and expenses) are included in the determination of operating income. Additionally, income tax expense, which was previously included partially in operating expenses and partially in other income (deductions), is now entirely presented directly above net income in income taxes and includes income taxes related to non-regulated revenues and expenses. On HEI’s consolidated balance sheet as of December 31, 2013, non-utility plant, net, amounting to $7 million was reclassified from “Other” assets to “Plant and equipment” (including related amounts of accumulated depreciation). These and other reclassifications made to prior years’ financial statements to conform to the 2014 presentation did not affect previously reported results of operations. | |
Electric utility | ||
Accounts receivable | Accounts receivable. Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of probable credit losses in the Utilities existing accounts receivable. On a monthly basis, the Utilities adjust their allowance, with a corresponding charge (credit) on the statement of income, based on its historical write-off experience. Account balances are charged off against the allowance after collection efforts have been exhausted and the potential for recovery is considered remote. | |
Contributions in aid of construction | Contributions in aid of construction. The Utilities receive contributions from customers for special construction requirements. As directed by the PUC, contributions are amortized on a straight-line basis over 30 to 55 years as an offset against depreciation expense. | |
Electric utility revenues | Electric utility revenues. Electric utility revenues are based on rates authorized by the PUC. Prior to the implementation of decoupling, revenues related to the sale of energy were generally recorded when service was rendered or energy was delivered to customers and included revenues applicable to energy consumed in the accounting period but not yet billed to the customers. | |
The rate schedules of the Utilities include energy cost adjustment clauses (ECACs) under which electric rates are adjusted for changes in the weighted-average price paid for fuel oil and certain components of purchased power, and the relative amounts of company-generated power and purchased power. The rate schedules also include purchased power adjustment clauses (PPACs) under which the remaining purchase power expenses are recovered through surcharge mechanisms. The amounts collected through the ECACs and PPACs are required to be reconciled quarterly. | ||
Upon the implementation of decoupling (Hawaiian Electric on March 1, 2011, Hawaii Electric Light on April 9, 2012 and Maui Electric on May 4, 2012), the Utilities: (1) recognize monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kilowatthour sales, (2) recognize a revenue escalation component via a rate adjustment mechanism (RAM) for certain operation and maintenance (O&M) expenses and rate base changes and (3) recognize (when applicable) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility’s ratemaking return on average common equity (ROACE) exceeds the ROACE allowed in its most recent rate case. | ||
The Utilities’ revenues include amounts for various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the year the related revenues are recognized. However, the Utilities’ 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). | ||
Power purchase agreements | Power purchase agreements. If a power purchase agreement (PPA) falls within the scope of ASC Topic 840, “Leases,” and results in the classification of the agreement as a capital lease, the Utilities would recognize a capital asset and a lease obligation. Currently, none of the PPAs are required to be recorded as a capital lease. | |
The Utilities evaluate PPAs to determine if the PPAs are VIEs, if the Utilities are primary beneficiaries and if consolidation is required. | ||
Repairs and maintenance costs | Repairs and maintenance costs. Repairs and maintenance costs for overhauls of generating units are generally expensed as they are incurred. | |
Allowance for funds used during construction (AFUDC) | Allowance for funds used during construction (AFUDC). AFUDC is an accounting practice whereby the costs of debt and equity funds used to finance plant construction are credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. | |
Bank | ||
Loans receivable | Loans receivable. ASB carries loans receivable at amortized cost less the allowance for loan losses, loan origination fees (net of direct loan origination costs), commitment fees and purchase premiums and discounts. Interest on loans is credited to income as it is earned. Discounts and premiums are accreted or amortized over the life of the loans using the interest method. | |
Loan origination fees (net of direct loan origination costs) are deferred and recognized as an adjustment in yield over the life of the loan using the interest method or taken into income when the loan is paid off or sold. Nonrefundable commitment fees (net of direct loan origination costs, if applicable) received for commitments to originate or purchase loans are deferred and, if the commitment is exercised, recognized as an adjustment of yield over the life of the loan using the interest method. Nonrefundable commitment fees received for which the commitment expires unexercised are recognized as income upon expiration of the commitment. | ||
Loans held for sale, gain on sale of loans, and mortgage servicing assets and liabilities | Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. | |
Allowance for loan losses | Allowance for loan losses. ASB maintains an allowance for loan losses that it believes is adequate to absorb losses inherent in its loan portfolio. The level of allowance for loan losses is based on a continuing assessment of existing risks in the loan portfolio, historical loss experience, changes in collateral values and current conditions (e.g., economic conditions, real estate market conditions and interest rate environment). The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors primarily derived from actual historical default and loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Adverse changes in any of these factors could result in higher charge-offs and provision for loan losses. | |
ASB disaggregates its portfolio loans into portfolio segments for purposes of determining the allowance for loan losses. Commercial and commercial real estate loans are defined as non-homogeneous loans and ASB utilizes a risk rating system for evaluating the credit quality of the loans. Loans are rated based on the degree of risk at origination and periodically thereafter, as appropriate. Values are applied separately to the probability of default (borrower risk) and loss given default (transaction risk). ASB’s credit review department performs an evaluation of these loan portfolios to ensure compliance with the internal risk rating system and timeliness of rating changes. Non-homogeneous loans are categorized into the regulatory asset quality classifications-Pass, Special Mention, Substandard, Doubtful, and Loss based on credit quality. For loans classified as substandard, an analysis is done to determine if the loan is impaired. A loan is deemed impaired when it is probable that ASB will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is deemed impaired, ASB applies a valuation methodology to determine whether there is an impairment shortfall. The measurement of impairment may be based on (i) the present value of the expected future cash flows of the impaired loan discounted at the loan’s original effective interest rate, (ii) the observable market price of the impaired loan, or (iii) the fair value of the collateral, net of costs to sell. For all loans collateralized by real estate whose repayment is dependent on the sale of the underlying collateral property, ASB measures impairment by utilizing the fair value of the collateral, net of costs to sell; for other loans that are not considered collateral dependent, generally the discounted cash flow method is used to measure impairment. For loans collateralized by real estate that are classified as troubled debt restructured loans, the present value of the expected future cash flows of the loans may also be used to measure impairment as these loans are expected to perform according to their restructured terms. Impairments are charged to the provision for loan losses and included in the allowance for loan losses. However, confirmed losses (uncollectible) are charged off, with the loan written down by the amount of the confirmed loss. | ||
Residential, consumer and credit scored business loans are considered homogeneous loans, which are typically underwritten based on common, uniform standards, and are generally classified as to the level of loss exposure based on delinquency status. The homogeneous loan portfolios are stratified into individual products with common risk characteristics and segmented into various secured and unsecured loan product types. For the homogeneous portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. ASB does supplement performance data with an 11-risk rating retail credit model that assigns a probability of default to each borrower based primarily on the borrower's current Fair Isaac Corporation (FICO) score and for the home equity line of credit (HELOC) and unsecured consumer products, the bankruptcy score (BK). Current FICO and BK data is purchased and appended to all homogeneous loans on a quarterly basis and used to estimate the borrower’s probability of default and the loss given default. | ||
ASB also considers the following qualitative factors for all loans in estimating the allowance for loan losses: | ||
• | changes in lending policies and procedures; | |
• | changes in economic and business conditions and developments that affect the collectability of the portfolio; | |
• | changes in the nature, volume and terms of the loan portfolio; | |
• | changes in lending management and other relevant staff; | |
• | changes in loan quality (past due, non-accrual, classified loans); | |
• | changes in the quality of the loan review system; | |
• | changes in the value of underlying collateral; | |
• | effect of, and changes in the level of, any concentrations of credit; and | |
• | effect of other external and internal factors. | |
ASB’s methodology for determining the allowance for loan losses was generally based on historic loss rates using various look-back periods. During the second quarter of 2014, ASB implemented enhancements to the loss rate calculation for estimating the allowance for loan losses that included several refinements to determining the probability of default and the loss given default for the various segments of the loan portfolio that are more statistically sound than those previously employed. The result is an estimated loss rate established for each borrower. ASB also updated its measurement of the loss emergence period in the calculation of the allowance for loan losses. The loss emergence period is broadly defined as the period that it takes, on average, for the lender to identify the specific borrower and amount of loss incurred by the bank for a loan that has suffered from a loss-causing event. In most cases, the loss emergence period was within a twelve month period; however, as credit quality and conditions improve, management has observed that the loss emergence period has extended and has incorporated this observed change in the estimate of the allowance for loan losses. Management believes these enhancements will improve the precision in estimating the allowance for loan losses. The enhancements did not have a material effect on the total allowance for loan losses or the provision for loan losses for 2014. The enhancements did result in the full allocation of the previously unallocated portion of the allowance for loan losses. | ||
In conjunction with the above enhancement, management also adopted an enhanced risk rating system for monitoring and managing credit risk in the non-homogenous loan portfolios, that measures general creditworthiness at the borrower level. The numerical-based, risk rating “PD Model” takes into consideration fiscal year-end financial information of the borrower and identified financial attributes including retained earnings, operating cash flows, interest coverage, liquidity and leverage that demonstrate a strong correlation with default to assign default probabilities at the borrower level. In addition, a loss given default (LGD) value is assigned to each loan to measure loss in the event of default based on loan specific features such as collateral that mitigates the amount of loss in the event of default. Together the PD Model and LGD construct provide a more quantitative, data driven and consistent framework for measuring risk within the portfolio, on a loan by loan basis and for the ultimate collectability of each loan. | ||
The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in accounts payable and other liabilities in the consolidated balance sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the allowance for loan losses, as discussed above. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the consolidated statements of income. | ||
Management believes its allowance for loan losses adequately estimates actual loan losses that will ultimately be incurred. However, such estimates are based on currently available information and historical experience, and future adjustments may be required from time to time to the allowance for loan losses based on new information and changes that occur (e.g., due to changes in economic conditions, particularly in Hawaii). Actual losses could differ from management’s estimates, and these differences and subsequent adjustments could be material. | ||
Loans modified in a troubled debt restructuring | Loans modified in a troubled debt restructuring. Loans are considered to have been modified in a troubled debt restructuring (TDR) when, due to a borrower’s financial difficulties, ASB makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include interest rate reductions, interest only payments for an extended period of time, protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place, and other actions intended to minimize economic loss and to provide alternatives to foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status until the borrower has demonstrated sustained repayment performance for a period of six consecutive months. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, or there is reasonable doubt over the full collectability of principal and interest, the loan remains on nonaccrual status. | |
Real estate acquired in settlement of loans | Real estate acquired in settlement of loans. ASB records real estate acquired in settlement of loans at fair value, less estimated selling expenses. ASB obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate acquired in settlement of loans. Subsequent declines in value are charged to expense through a valuation allowance. Costs related to holding real estate are charged to operations as incurred. | |
Goodwill and other intangibles | Goodwill. At December 31, 2014 and 2013, the amount of goodwill was $82.2 million. The goodwill is with respect to ASB and is the Company’s only intangible asset with an indefinite useful life and is tested for impairment annually at December 31 using data as of September 30. | |
FASB ASU No. 2011-8, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment”(ASU No. 2011-8) permits an entity to first assess qualitative factors (Step 0) to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform Step 1 of a two-step goodwill impairment test. An entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the first step of the goodwill impairment test. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount under ASU No. 2011-8, an entity shall assess relevant events and circumstances such as: | ||
• | macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, or other developments in equity and credit markets; | |
• | industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a change in the market for an entity’s products or services, or a regulatory or political development; | |
• | cost factors that have a negative effect on earnings and cash flows; | |
• | overall financial performance such as a decline in actual or planned revenues or earnings compared with actual and projected results of relevant prior periods; | |
• | other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation; | |
• | events affecting a reporting unit such as a change in the composition or carrying amount of its net assets; | |
• | if applicable, a sustained decrease in share price (consider in both absolute terms and relative to peers). | |
If, after assessing the totality of events or circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test under ASC Topic 350, "Intangibles-Goodwill and Other" (ASC 350), are unnecessary. We performed a Step 0 analysis and determined that it was not more likely than not that the fair value of the Company was less than its carrying value and a Step 1 goodwill impairment analysis was not considered necessary. The most recent Step 1 goodwill impairment analysis under ASC 350 was performed at December 31, 2013 and the estimated fair value of the Company exceeded its carrying value by 60%. For the three years ended December 31, 2014, there has been no impairment of goodwill. | ||
Mortgage banking | Mortgage banking. Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. A sale is recognized only when the consideration received is other than beneficial interests in the assets sold and control over the assets is transferred irrevocably to the buyer. Gains or losses on sales of loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the allocated basis of the loans sold. ASB is obligated to subsequently repurchase a loan if the purchaser discovers a standard representation or warranty violation such as noncompliance with eligibility requirements, customer fraud, or servicing violations. This primarily occurs during a loan file review. | |
ASB recognizes a mortgage servicing asset when a mortgage loan is sold with servicing rights retained. This mortgage servicing right (MSR) is initially capitalized at its presumed fair value based on market data at the time of sale and accounted for in subsequent periods at the lower of amortized cost or fair value. Mortgage servicing assets or liabilities are included as a component of gain on sale of loans. Under ASC Topic 860, “Transfers and Servicing,” we amortize the MSR in proportion to and over the period of estimated net servicing income and assess for impairment at each reporting date. | ||
ASB's MSR is stratified based on predominant risk characteristics of the underlying loans including loan type and note rate. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. Expected net income streams are estimated based on industry assumptions regarding prepayment expectations and income and expenses associated with servicing residential mortgage loans for others. | ||
Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in "Other income, net" in the consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. | ||
ASB compares the fair value of MSR to an estimated value calculated by an independent third-party. The third-party relies on both published and unpublished sources of market related assumptions and their own experience and expertise to arrive at a value. ASB uses the third-party value only to assess the reasonableness of fair value. | ||
Loan servicing fee income represents income earned for servicing mortgage loans owned by investors. It includes mortgage servicing fees and other ancillary servicing income, net of guaranty fees. Servicing fees are generally calculated on the outstanding principal balances of the loans serviced and are recorded as income when earned. |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Schedule of earnings per share basic and diluted under two-class method | Under the two-class method, HEI's EPS was comprised as follows for both participating securities and unrestricted common stock: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Distributed earnings | $ | 1.24 | $ | 1.24 | $ | 1.24 | $ | 1.24 | $ | 1.24 | $ | 1.24 | ||||||||||||
Undistributed earnings | 0.41 | 0.4 | 0.39 | 0.38 | 0.19 | 0.18 | ||||||||||||||||||
$ | 1.65 | $ | 1.64 | $ | 1.63 | $ | 1.62 | $ | 1.43 | $ | 1.42 | |||||||||||||
Segment_financial_information_
Segment financial information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of segment financial information | Segment financial information was as follows: | |||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | ||||||||||||
2014 | ||||||||||||||||
Revenues from external customers | $ | 2,987,299 | $ | 252,497 | $ | (254 | ) | $ | 3,239,542 | |||||||
Intersegment revenues (eliminations) | 24 | — | (24 | ) | — | |||||||||||
Revenues | 2,987,323 | 252,497 | (278 | ) | 3,239,542 | |||||||||||
Depreciation and amortization | 174,478 | 5,399 | 1,361 | 181,238 | ||||||||||||
Interest expense, net | 64,757 | 10,808 | 11,595 | 87,160 | ||||||||||||
Income (loss) before income taxes | 220,361 | 75,619 | (34,058 | ) | 261,922 | |||||||||||
Income taxes (benefit) | 80,725 | 24,127 | (13,140 | ) | 91,712 | |||||||||||
Net income (loss) | 139,636 | 51,492 | (20,918 | ) | 170,210 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | |||||||||||
Net income (loss) for common stock | 137,641 | 51,492 | (20,813 | ) | 168,320 | |||||||||||
Capital expenditures | 311,574 | 28,073 | 74 | 339,721 | ||||||||||||
Assets (at December 31, 2014) | 5,590,457 | 5,565,241 | 28,463 | 11,184,161 | ||||||||||||
2013 | ||||||||||||||||
Revenues from external customers | $ | 2,980,139 | $ | 258,147 | $ | 184 | $ | 3,238,470 | ||||||||
Intersegment revenues (eliminations) | 33 | — | (33 | ) | — | |||||||||||
Revenues | 2,980,172 | 258,147 | 151 | 3,238,470 | ||||||||||||
Depreciation and amortization | 159,102 | 4,230 | 1,396 | 164,728 | ||||||||||||
Interest expense, net | 59,279 | 10,077 | 16,200 | 85,556 | ||||||||||||
Income (loss) before income taxes | 194,041 | 87,059 | (33,353 | ) | 247,747 | |||||||||||
Income taxes (benefit) | 69,117 | 29,525 | (14,301 | ) | 84,341 | |||||||||||
Net income (loss) | 124,924 | 57,534 | (19,052 | ) | 163,406 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | |||||||||||
Net income (loss) for common stock | 122,929 | 57,534 | (18,947 | ) | 161,516 | |||||||||||
Capital expenditures | 342,485 | 11,193 | 201 | 353,879 | ||||||||||||
Assets (at December 31, 2013) | 5,087,129 | 5,243,824 | 9,091 | 10,340,044 | ||||||||||||
2012 | ||||||||||||||||
Revenues from external customers | $ | 3,109,353 | $ | 265,539 | $ | 103 | $ | 3,374,995 | ||||||||
Intersegment revenues (eliminations) | 86 | — | (86 | ) | — | |||||||||||
Revenues | 3,109,439 | 265,539 | 17 | 3,374,995 | ||||||||||||
Depreciation and amortization | 151,496 | 5,334 | 1,517 | 158,347 | ||||||||||||
Interest expense, net | 62,055 | 11,292 | 16,096 | 89,443 | ||||||||||||
Income (loss) before income taxes | 162,319 | 89,021 | (33,933 | ) | 217,407 | |||||||||||
Income taxes (benefit) | 61,048 | 30,384 | (14,573 | ) | 76,859 | |||||||||||
Net income (loss) | 101,271 | 58,637 | (19,360 | ) | 140,548 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | |||||||||||
Net income (loss) for common stock | 99,276 | 58,637 | (19,255 | ) | 138,658 | |||||||||||
Capital expenditures | 310,091 | 14,979 | 410 | 325,480 | ||||||||||||
Assets (at December 31, 2012) | 5,108,793 | 5,041,673 | (1,334 | ) | 10,149,132 | |||||||||||
Electric_utility_segment_Table
Electric utility segment (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Electric utility subsidiary | |||||||||||||||||||||
Schedule of voluntary liquidation and redemption prices of cumulative preferred stock | The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption: | ||||||||||||||||||||
31-Dec-14 | Voluntary | Redemption | |||||||||||||||||||
liquidation price | price | ||||||||||||||||||||
Series | |||||||||||||||||||||
C, D, E, H, J and K (Hawaiian Electric) | $ | 20 | $ | 21 | |||||||||||||||||
I (Hawaiian Electric) | 20 | 20 | |||||||||||||||||||
G (Hawaii Electric Light) | 100 | 100 | |||||||||||||||||||
H (Maui Electric) | 100 | 100 | |||||||||||||||||||
Schedule of reductions from interim decision and order | Reductions from the interim D&O related 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 consolidating statements of income | Statements of Income Data | ||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||
Interest and fees on loans | $ | 179,341 | $ | 172,969 | $ | 176,057 | |||||||||||||||
Interest and dividends on investment securities | 11,945 | 13,095 | 13,822 | ||||||||||||||||||
Total interest and dividend income | 191,286 | 186,064 | 189,879 | ||||||||||||||||||
Interest expense | |||||||||||||||||||||
Interest on deposit liabilities | 5,077 | 5,092 | 6,423 | ||||||||||||||||||
Interest on other borrowings | 5,731 | 4,985 | 4,869 | ||||||||||||||||||
Total interest expense | 10,808 | 10,077 | 11,292 | ||||||||||||||||||
Net interest income | 180,478 | 175,987 | 178,587 | ||||||||||||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | ||||||||||||||||||
Net interest income after provision for loan losses | 174,352 | 174,480 | 165,704 | ||||||||||||||||||
Noninterest income | |||||||||||||||||||||
Fees from other financial services | 21,747 | 27,099 | 31,361 | ||||||||||||||||||
Fee income on deposit liabilities | 19,249 | 18,363 | 17,775 | ||||||||||||||||||
Fee income on other financial products | 8,131 | 8,405 | 6,577 | ||||||||||||||||||
Bank-owned life insurance | 3,949 | 3,928 | 3,981 | ||||||||||||||||||
Mortgage banking income | 2,913 | 8,309 | 14,628 | ||||||||||||||||||
Gains on sale of investment securities | 2,847 | 1,226 | 134 | ||||||||||||||||||
Other income, net | 2,375 | 4,753 | 1,204 | ||||||||||||||||||
Total noninterest income | 61,211 | 72,083 | 75,660 | ||||||||||||||||||
Noninterest expense | |||||||||||||||||||||
Compensation and employee benefits | 79,885 | 82,910 | 75,979 | ||||||||||||||||||
Occupancy | 17,197 | 16,747 | 17,179 | ||||||||||||||||||
Data processing | 11,690 | 10,952 | 10,098 | ||||||||||||||||||
Services | 10,269 | 9,015 | 9,866 | ||||||||||||||||||
Equipment | 6,564 | 7,295 | 7,105 | ||||||||||||||||||
Office supplies, printing and postage | 6,089 | 4,233 | 3,870 | ||||||||||||||||||
Marketing | 3,999 | 3,373 | 3,260 | ||||||||||||||||||
FDIC insurance | 3,261 | 3,253 | 3,307 | ||||||||||||||||||
Other expense | 20,990 | 21,726 | 21,679 | ||||||||||||||||||
Total noninterest expense | 159,944 | 159,504 | 152,343 | ||||||||||||||||||
Income before income taxes | 75,619 | 87,059 | 89,021 | ||||||||||||||||||
Income taxes | 24,127 | 29,525 | 30,384 | ||||||||||||||||||
Net income | $ | 51,492 | $ | 57,534 | $ | 58,637 | |||||||||||||||
Schedule of consolidating balance sheets | Balance Sheets Data | ||||||||||||||||||||
December 31 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 107,233 | $ | 108,998 | |||||||||||||||||
Interest-bearing deposits | 54,230 | 47,605 | |||||||||||||||||||
Available-for-sale investment securities, at fair value | 550,394 | 529,007 | |||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle, at cost | 69,302 | 92,546 | |||||||||||||||||||
Loans receivable held for investment | 4,434,651 | 4,150,229 | |||||||||||||||||||
Allowance for loan losses | (45,618 | ) | (40,116 | ) | |||||||||||||||||
Net loans | 4,389,033 | 4,110,113 | |||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 8,424 | 5,302 | |||||||||||||||||||
Other | 304,435 | 268,063 | |||||||||||||||||||
Goodwill | 82,190 | 82,190 | |||||||||||||||||||
Total assets | $ | 5,565,241 | $ | 5,243,824 | |||||||||||||||||
Liabilities and shareholder’s equity | |||||||||||||||||||||
Deposit liabilities–noninterest-bearing | $ | 1,342,794 | $ | 1,214,418 | |||||||||||||||||
Deposit liabilities–interest-bearing | 3,280,621 | 3,158,059 | |||||||||||||||||||
Other borrowings | 290,656 | 244,514 | |||||||||||||||||||
Other | 116,527 | 105,679 | |||||||||||||||||||
Total liabilities | 5,030,598 | 4,722,670 | |||||||||||||||||||
Commitments and contingencies (see “Litigation” below) | |||||||||||||||||||||
Common stock | 1 | 1 | |||||||||||||||||||
Additional paid in capital | 338,411 | 336,053 | |||||||||||||||||||
Retained earnings | 212,789 | 197,297 | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | |||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | 462 | $ | (3,663 | ) | ||||||||||||||||
Retirement benefit plans | (17,020 | ) | (16,558 | ) | (8,534 | ) | (12,197 | ) | |||||||||||||
Total shareholder’s equity | 534,643 | 521,154 | |||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,565,241 | $ | 5,243,824 | |||||||||||||||||
December 31 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Other assets | |||||||||||||||||||||
Bank-owned life insurance | $ | 134,115 | $ | 129,963 | |||||||||||||||||
Premises and equipment, net | 92,407 | 67,766 | |||||||||||||||||||
Prepaid expenses | 3,196 | 3,616 | |||||||||||||||||||
Accrued interest receivable | 13,632 | 13,133 | |||||||||||||||||||
Mortgage-servicing rights | 11,540 | 11,687 | |||||||||||||||||||
Low-income housing equity investments | 32,457 | 14,543 | |||||||||||||||||||
Real estate acquired in settlement of loans, net | 891 | 1,205 | |||||||||||||||||||
Other | 16,197 | 26,150 | |||||||||||||||||||
$ | 304,435 | $ | 268,063 | ||||||||||||||||||
Other liabilities | |||||||||||||||||||||
Accrued expenses | $ | 37,880 | $ | 19,989 | |||||||||||||||||
Federal and state income taxes payable | 26,806 | 37,807 | |||||||||||||||||||
Cashier’s checks | 20,509 | 21,110 | |||||||||||||||||||
Advance payments by borrowers | 9,652 | 9,647 | |||||||||||||||||||
Other | 21,680 | 17,126 | |||||||||||||||||||
$ | 116,527 | $ | 105,679 | ||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Electric utility subsidiary | |||||||||||||||||||||
Schedule of regulatory assets | Regulatory assets were as follows: | ||||||||||||||||||||
December 31 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses) | $ | 683,243 | $ | 350,821 | |||||||||||||||||
Income taxes, net (1 to 55 years) | 86,836 | 85,430 | |||||||||||||||||||
Decoupling revenue balancing account (1 to 2 years) | 80,183 | 90,386 | |||||||||||||||||||
Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) | 15,569 | 17,342 | |||||||||||||||||||
Vacation earned, but not yet taken (1 year) | 10,248 | 9,149 | |||||||||||||||||||
Postretirement benefits other than pensions (18 years; less than 1 year remaining) | 18 | 62 | |||||||||||||||||||
Other (1 to 50 years; 1 to 46 years remaining) | 29,167 | 22,734 | |||||||||||||||||||
$ | 905,264 | $ | 575,924 | ||||||||||||||||||
Included in: | |||||||||||||||||||||
Current assets | $ | 71,421 | $ | 69,738 | |||||||||||||||||
Long-term assets | 833,843 | 506,186 | |||||||||||||||||||
$ | 905,264 | $ | 575,924 | ||||||||||||||||||
Schedule of regulatory liabilities | Regulatory liabilities were as follows: | ||||||||||||||||||||
December 31 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of removal in excess of salvage value (1 to 60 years) | $ | 331,000 | $ | 315,164 | |||||||||||||||||
Retirement benefit plans (5 years beginning with respective utility’s next rate case) | 12,413 | 31,546 | |||||||||||||||||||
Other (5 years; 1 to 2 years remaining) | 1,436 | 2,589 | |||||||||||||||||||
$ | 344,849 | $ | 349,299 | ||||||||||||||||||
Included in: | |||||||||||||||||||||
Current liabilities | $ | 632 | $ | 1,916 | |||||||||||||||||
Long-term liabilities | 344,217 | 347,383 | |||||||||||||||||||
$ | 344,849 | $ | 349,299 | ||||||||||||||||||
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: | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Balance, January 1 | $ | 43,106 | $ | 48,431 | |||||||||||||||||
Accretion expense | 890 | 1,263 | |||||||||||||||||||
Liabilities incurred | — | — | |||||||||||||||||||
Liabilities settled | (14,577 | ) | (5,672 | ) | |||||||||||||||||
Revisions in estimated cash flows | — | (916 | ) | ||||||||||||||||||
Balance, December 31 | $ | 29,419 | $ | 43,106 | |||||||||||||||||
Schedule of consolidating statements of income | Consolidating statement of income | ||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 2,124,174 | 431,517 | 424,603 | — | (122 | ) | [1] | $ | 2,980,172 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 851,365 | 125,516 | 208,671 | — | — | 1,185,552 | |||||||||||||||
Purchased power | 527,839 | 128,368 | 54,474 | — | — | 710,681 | |||||||||||||||
Other operation and maintenance | 283,768 | 61,418 | 58,081 | 3 | — | 403,270 | |||||||||||||||
Depreciation | 99,738 | 34,188 | 20,099 | — | — | 154,025 | |||||||||||||||
Taxes, other than income taxes | 200,962 | 40,092 | 40,077 | — | — | 281,131 | |||||||||||||||
Impairment of utility assets | — | — | — | — | — | — | |||||||||||||||
Total expenses | 1,963,672 | 389,582 | 381,402 | 3 | — | 2,734,659 | |||||||||||||||
Operating income (loss) | 160,502 | 41,935 | 43,201 | (3 | ) | (122 | ) | 245,513 | |||||||||||||
Allowance for equity funds used | 4,495 | 643 | 423 | — | — | 5,561 | |||||||||||||||
during construction | |||||||||||||||||||||
Equity in earnings of subsidiaries | 41,410 | — | — | — | (41,410 | ) | [2] | — | |||||||||||||
Interest expense and other charges, net | (39,107 | ) | (11,341 | ) | (8,953 | ) | 122 | [1] | (59,279 | ) | |||||||||||
Allowance for borrowed funds used during construction | 1,814 | 263 | 169 | — | — | 2,246 | |||||||||||||||
Income (loss) before income taxes | 169,114 | 31,500 | 34,840 | (3 | ) | (41,410 | ) | 194,041 | |||||||||||||
Income taxes | 45,105 | 10,830 | 13,182 | — | — | 69,117 | |||||||||||||||
Net income (loss) | 124,009 | 20,670 | 21,658 | (3 | ) | (41,410 | ) | 124,924 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 124,009 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | 124,009 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | |||||||||||||||
Net income (loss) for common stock | $ | 122,929 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | $ | 122,929 | |||||||||||
Consolidating statement of income | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 2,142,245 | 422,200 | 422,965 | — | (87 | ) | [1] | $ | 2,987,323 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 821,246 | 117,215 | 193,224 | — | — | 1,131,685 | |||||||||||||||
Purchased power | 537,821 | 123,226 | 60,961 | — | — | 722,008 | |||||||||||||||
Other operation and maintenance | 283,532 | 65,471 | 61,609 | — | 410,612 | ||||||||||||||||
Depreciation | 109,204 | 35,904 | 21,279 | — | — | 166,387 | |||||||||||||||
Taxes, other than income taxes | 201,426 | 39,521 | 39,916 | — | — | 280,863 | |||||||||||||||
Total expenses | 1,953,229 | 381,337 | 376,989 | — | — | 2,711,555 | |||||||||||||||
Operating income | 189,016 | 40,863 | 45,976 | — | (87 | ) | 275,768 | ||||||||||||||
Allowance for equity funds used during construction | 6,085 | 472 | 214 | — | — | 6,771 | |||||||||||||||
Equity in earnings of subsidiaries | 40,964 | — | — | — | (40,964 | ) | [2] | — | |||||||||||||
Interest expense and other charges, net | (44,041 | ) | (11,030 | ) | (9,773 | ) | — | 87 | [1] | (64,757 | ) | ||||||||||
Allowance for borrowed funds used during construction | 2,306 | 182 | 91 | — | — | 2,579 | |||||||||||||||
Income before income taxes | 194,330 | 30,487 | 36,508 | — | (40,964 | ) | 220,361 | ||||||||||||||
Income taxes | 55,609 | 11,264 | 13,852 | — | — | 80,725 | |||||||||||||||
Net income | 138,721 | 19,223 | 22,656 | — | (40,964 | ) | 139,636 | ||||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | |||||||||||||||
Net income attributable to Hawaiian Electric | 138,721 | 18,689 | 22,275 | — | (40,964 | ) | 138,721 | ||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | |||||||||||||||
Net income for common stock | $ | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | $ | 137,641 | ||||||||||||
Consolidating statement of income | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Revenues | $ | 2,228,233 | 441,013 | 440,270 | — | (77 | ) | [1] | $ | 3,109,439 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 945,246 | 116,866 | 235,307 | — | — | 1,297,419 | |||||||||||||||
Purchased power | 540,802 | 145,386 | 38,052 | — | — | 724,240 | |||||||||||||||
Other operation and maintenance | 266,208 | 60,447 | 70,771 | 3 | — | 397,429 | |||||||||||||||
Depreciation | 90,783 | 33,337 | 20,378 | — | — | 144,498 | |||||||||||||||
Taxes, other than income taxes | 209,943 | 41,370 | 41,528 | — | — | 292,841 | |||||||||||||||
Impairment of utility assets | 29,000 | 5,500 | 5,500 | — | — | 40,000 | |||||||||||||||
Total expenses | 2,081,982 | 402,906 | 411,536 | 3 | — | 2,896,427 | |||||||||||||||
Operating income (loss) | 146,251 | 38,107 | 28,734 | (3 | ) | (77 | ) | 213,012 | |||||||||||||
Allowance for equity funds used | 5,735 | 585 | 687 | — | — | 7,007 | |||||||||||||||
during construction | |||||||||||||||||||||
Equity in earnings of subsidiaries | 28,836 | — | — | — | (28,836 | ) | [2] | — | |||||||||||||
Interest expense and other charges, net | (40,842 | ) | (12,066 | ) | (9,224 | ) | — | 77 | [1] | (62,055 | ) | ||||||||||
Allowance for borrowed funds used during construction | 3,642 | 235 | 478 | — | — | 4,355 | |||||||||||||||
Income (loss) before income taxes | 143,622 | 26,861 | 20,675 | (3 | ) | (28,836 | ) | 162,319 | |||||||||||||
Income taxes | 43,266 | 10,115 | 7,667 | — | — | 61,048 | |||||||||||||||
Net income (loss) | 100,356 | 16,746 | 13,008 | (3 | ) | (28,836 | ) | 101,271 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | |||||||||||||||
Net income (loss) attributable to Hawaiian Electric | 100,356 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | 100,356 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | |||||||||||||||
Net income (loss) for common stock | $ | 99,276 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | $ | 99,276 | |||||||||||
Schedule of consolidating statements of comprehensive income | Consolidating statement of comprehensive income (loss) | ||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Net income (loss) for common stock | $ | 99,276 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | $ | 99,276 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (90,082 | ) | (13,577 | ) | (10,935 | ) | — | 24,512 | [1] | (90,082 | ) | ||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 13,673 | 2,101 | 1,771 | — | (3,872 | ) | [1] | 13,673 | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits | 75,471 | 11,442 | 9,093 | — | (20,535 | ) | [1] | 75,471 | |||||||||||||
Other comprehensive loss, net of tax benefits | (938 | ) | (34 | ) | (71 | ) | — | 105 | (938 | ) | |||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 98,338 | 16,178 | 12,556 | (3 | ) | (28,731 | ) | $ | 98,338 | |||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric | |||||||||||||||
Consolidated | |||||||||||||||||||||
Net income (loss) for common stock | $ | 122,929 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | $ | 122,929 | |||||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net gains arising during the period, net of taxes | 203,479 | 30,542 | 27,820 | — | (58,362 | ) | [1] | 203,479 | |||||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 20,694 | 2,880 | 2,557 | — | (5,437 | ) | [1] | 20,694 | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits | (222,595 | ) | (33,277 | ) | (30,254 | ) | — | 63,531 | [1] | (222,595 | ) | ||||||||||
Other comprehensive income, net of tax benefits | 1,578 | 145 | 123 | — | (268 | ) | 1,578 | ||||||||||||||
Comprehensive income (loss) attributable to common shareholder | $ | 124,507 | 20,281 | 21,400 | (3 | ) | (41,678 | ) | $ | 124,507 | |||||||||||
Consolidating statement of comprehensive income | |||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Net income for common stock | $ | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | $ | 137,641 | ||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (218,608 | ) | (28,725 | ) | (29,352 | ) | — | 58,077 | [1] | (218,608 | ) | ||||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,212 | 1,270 | 1,090 | — | (2,360 | ) | [1] | 10,212 | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 207,833 | 27,437 | 28,257 | — | (55,694 | ) | [1] | 207,833 | |||||||||||||
Other comprehensive loss, net of tax benefits | (563 | ) | (18 | ) | (5 | ) | — | 23 | (563 | ) | |||||||||||
Comprehensive income attributable to common shareholder | $ | 137,078 | 18,671 | 22,270 | — | (40,941 | ) | $ | 137,078 | ||||||||||||
Schedule of consolidating balance sheets | Consolidating balance sheet | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,819 | 5,464 | 3,016 | — | — | $ | 52,299 | |||||||||||||
Plant and equipment | 3,782,438 | 1,179,032 | 1,048,012 | — | — | 6,009,482 | |||||||||||||||
Less accumulated depreciation | (1,253,866 | ) | (473,933 | ) | (447,711 | ) | — | — | (2,175,510 | ) | |||||||||||
Construction in progress | 134,376 | 12,421 | 11,819 | — | — | 158,616 | |||||||||||||||
Utility property, plant and equipment, net | 2,706,767 | 722,984 | 615,136 | — | — | 4,044,887 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,950 | 82 | 1,531 | — | — | 6,563 | |||||||||||||||
Total property, plant and equipment, net | 2,711,717 | 723,066 | 616,667 | — | — | 4,051,450 | |||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 538,639 | — | — | — | (538,639 | ) | [2] | 0 | |||||||||||||
Current assets | |||||||||||||||||||||
Cash and equivalents | 12,416 | 612 | 633 | 101 | — | 13,762 | |||||||||||||||
Advances to affiliates | 16,100 | — | — | — | (16,100 | ) | [1] | — | |||||||||||||
Customer accounts receivable, net | 111,462 | 24,222 | 22,800 | — | — | 158,484 | |||||||||||||||
Accrued unbilled revenues, net | 103,072 | 15,926 | 18,376 | — | — | 137,374 | |||||||||||||||
Other accounts receivable, net | 9,980 | 981 | 2,246 | — | (8,924 | ) | [1] | 4,283 | |||||||||||||
Fuel oil stock, at average cost | 74,515 | 13,800 | 17,731 | — | — | 106,046 | |||||||||||||||
Materials and supplies, at average cost | 33,154 | 6,664 | 17,432 | — | — | 57,250 | |||||||||||||||
Prepayments and other | 44,680 | 8,611 | 13,567 | — | (475 | ) | [3] | 66,383 | |||||||||||||
Regulatory assets | 58,550 | 6,745 | 6,126 | — | — | 71,421 | |||||||||||||||
Total current assets | 463,929 | 77,561 | 98,911 | 101 | (25,499 | ) | 615,003 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 623,784 | 107,454 | 102,788 | — | (183 | ) | [1] | 833,843 | |||||||||||||
Unamortized debt expense | 5,640 | 1,438 | 1,245 | — | — | 8,323 | |||||||||||||||
Other | 53,106 | 15,366 | 13,366 | — | — | 81,838 | |||||||||||||||
Total other long-term assets | 682,530 | 124,258 | 117,399 | — | (183 | ) | 924,004 | ||||||||||||||
Total assets | $ | 4,396,815 | 924,885 | 832,977 | 101 | (564,321 | ) | $ | 5,590,457 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,682,144 | 281,846 | 256,692 | 101 | (538,639 | ) | [2] | $ | 1,682,144 | |||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,546 | 190,000 | 186,000 | — | — | 1,206,546 | |||||||||||||||
Total capitalization | 2,534,983 | 478,846 | 447,692 | 101 | (538,639 | ) | 2,922,983 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | — | — | — | — | — | |||||||||||||||
Short-term borrowings-affiliate | — | 10,500 | 5,600 | — | (16,100 | ) | [1] | — | |||||||||||||
Accounts payable | 122,433 | 23,728 | 17,773 | — | — | 163,934 | |||||||||||||||
Interest and preferred dividends payable | 15,407 | 3,989 | 2,931 | — | (11 | ) | [1] | 22,316 | |||||||||||||
Taxes accrued | 176,339 | 37,548 | 36,807 | — | (292 | ) | [3] | 250,402 | |||||||||||||
Regulatory liabilities | 191 | — | 441 | — | — | 632 | |||||||||||||||
Other | 48,282 | 9,866 | 16,094 | — | (9,096 | ) | [1] | 65,146 | |||||||||||||
Total current liabilities | 362,652 | 85,631 | 79,646 | — | (25,499 | ) | 502,430 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 429,515 | 90,119 | 83,238 | — | — | 602,872 | |||||||||||||||
Regulatory liabilities | 236,727 | 77,707 | 29,966 | — | (183 | ) | [1] | 344,217 | |||||||||||||
Unamortized tax credits | 49,865 | 14,902 | 14,725 | — | — | 79,492 | |||||||||||||||
Defined benefit pension and other | 446,888 | 72,547 | 75,960 | — | — | 595,395 | |||||||||||||||
postretirement benefit plans liability | |||||||||||||||||||||
Other | 52,446 | 10,658 | 13,532 | — | — | 76,636 | |||||||||||||||
Total deferred credits and other liabilities | 1,215,441 | 265,933 | 217,421 | — | (183 | ) | 1,698,612 | ||||||||||||||
Contributions in aid of construction | 283,739 | 94,475 | 88,218 | — | — | 466,432 | |||||||||||||||
Total capitalization and liabilities | $ | 4,396,815 | 924,885 | 832,977 | 101 | (564,321 | ) | $ | 5,590,457 | ||||||||||||
Consolidating balance sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 43,407 | 5,460 | 3,016 | — | — | $ | 51,883 | |||||||||||||
Plant and equipment | 3,558,569 | 1,136,923 | 1,006,383 | — | — | 5,701,875 | |||||||||||||||
Less accumulated depreciation | (1,222,129 | ) | (453,721 | ) | (435,379 | ) | — | — | (2,111,229 | ) | |||||||||||
Construction in progress | 124,494 | 7,709 | 11,030 | — | — | 143,233 | |||||||||||||||
Utility property, plant and equipment, net | 2,504,341 | 696,371 | 585,050 | — | — | 3,785,762 | |||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 4,953 | 82 | 1,532 | — | — | 6,567 | |||||||||||||||
Total property, plant and equipment, net | 2,509,294 | 696,453 | 586,582 | — | — | 3,792,329 | |||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 523,674 | — | — | — | (523,674 | ) | [2] | — | |||||||||||||
Current assets | |||||||||||||||||||||
Cash and equivalents | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Advances to affiliates | 6,839 | 1,000 | — | — | (7,839 | ) | [1] | — | |||||||||||||
Customer accounts receivable, net | 121,282 | 28,088 | 26,078 | — | — | 175,448 | |||||||||||||||
Accrued unbilled revenues, net | 107,752 | 17,100 | 19,272 | — | — | 144,124 | |||||||||||||||
Other accounts receivable, net | 16,373 | 4,265 | 2,451 | — | (9,027 | ) | [1] | 14,062 | |||||||||||||
Fuel oil stock, at average cost | 99,613 | 14,178 | 20,296 | — | — | 134,087 | |||||||||||||||
Materials and supplies, at average cost | 37,377 | 6,883 | 14,784 | — | — | 59,044 | |||||||||||||||
Prepayments and other | 29,798 | 8,334 | 16,140 | — | (1,415 | ) | [3] | 52,857 | |||||||||||||
Regulatory assets | 54,979 | 6,931 | 7,828 | — | — | 69,738 | |||||||||||||||
Total current assets | 535,258 | 88,105 | 107,002 | 101 | (18,281 | ) | 712,185 | ||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 381,346 | 64,552 | 60,288 | — | — | 506,186 | |||||||||||||||
Unamortized debt expense | 6,051 | 1,580 | 1,372 | — | — | 9,003 | |||||||||||||||
Other | 42,163 | 11,270 | 13,993 | — | — | 67,426 | |||||||||||||||
Total other long-term assets | 429,560 | 77,402 | 75,653 | — | — | 582,615 | |||||||||||||||
Total assets | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Capitalization and liabilities | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | [2] | $ | 1,593,564 | |||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | |||||||||||||||
Long-term debt, net | 830,547 | 189,998 | 186,000 | — | — | 1,206,545 | |||||||||||||||
Total capitalization | 2,446,404 | 471,800 | 439,771 | 101 | (523,674 | ) | 2,834,402 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | — | 11,400 | — | — | — | 11,400 | |||||||||||||||
Short-term borrowings-affiliate | 1,000 | — | 6,839 | — | (7,839 | ) | [1] | — | |||||||||||||
Accounts payable | 145,062 | 24,383 | 20,114 | — | — | 189,559 | |||||||||||||||
Interest and preferred dividends payable | 15,190 | 3,885 | 2,585 | — | (8 | ) | [1] | 21,652 | |||||||||||||
Taxes accrued | 175,790 | 37,899 | 37,171 | — | (1,415 | ) | [3] | 249,445 | |||||||||||||
Regulatory liabilities | 1,705 | — | 211 | — | — | 1,916 | |||||||||||||||
Other | 48,443 | 9,033 | 15,424 | — | (9,019 | ) | [1] | 63,881 | |||||||||||||
Total current liabilities | 387,190 | 86,600 | 82,344 | — | (18,281 | ) | 537,853 | ||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 359,621 | 79,947 | 67,593 | — | — | 507,161 | |||||||||||||||
Regulatory liabilities | 235,786 | 76,475 | 35,122 | — | — | 347,383 | |||||||||||||||
Unamortized tax credits | 44,931 | 14,245 | 14,363 | — | — | 73,539 | |||||||||||||||
Defined benefit pension and other | 202,396 | 28,427 | 31,339 | — | — | 262,162 | |||||||||||||||
postretirement benefit plans liability | |||||||||||||||||||||
Other | 63,374 | 14,703 | 13,658 | — | — | 91,735 | |||||||||||||||
Total deferred credits and other liabilities | 906,108 | 213,797 | 162,075 | — | — | 1,281,980 | |||||||||||||||
Contributions in aid of construction | 258,084 | 89,763 | 85,047 | — | — | 432,894 | |||||||||||||||
Total capitalization and liabilities | $ | 3,997,786 | 861,960 | 769,237 | 101 | (541,955 | ) | $ | 5,087,129 | ||||||||||||
Schedule of consolidating statements of changes in common stock equity | Consolidating statements of changes in common stock equity | ||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
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 | 99,276 | 16,212 | 12,627 | (3 | ) | (28,836 | ) | 99,276 | |||||||||||||
Other comprehensive loss, net of tax benefits | (938 | ) | (34 | ) | (71 | ) | — | 105 | (938 | ) | |||||||||||
Issuance of common stock, net of expenses | 44,001 | — | — | — | — | 44,001 | |||||||||||||||
Common stock dividends | (73,044 | ) | (27,738 | ) | (19,197 | ) | — | 46,935 | (73,044 | ) | |||||||||||
Balance, December 31, 2012 | $ | 1,472,136 | 268,908 | 228,927 | 104 | (497,939 | ) | $ | 1,472,136 | ||||||||||||
Net income (loss) for common stock | 122,929 | 20,136 | 21,277 | (3 | ) | (41,410 | ) | 122,929 | |||||||||||||
Other comprehensive income, net of taxes | 1,578 | 145 | 123 | — | (268 | ) | 1,578 | ||||||||||||||
Issuance of common stock, net of expenses | 78,499 | — | 12,461 | — | (12,461 | ) | 78,499 | ||||||||||||||
Common stock dividends | (81,578 | ) | (14,387 | ) | (14,017 | ) | — | 28,404 | (81,578 | ) | |||||||||||
Balance, December 31, 2013 | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||||
Net income for common stock | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | 137,641 | ||||||||||||||
Other comprehensive loss, net of tax benefits | (563 | ) | (18 | ) | (5 | ) | — | 23 | (563 | ) | |||||||||||
Issuance of common stock, net of expenses | 39,994 | — | — | — | — | 39,994 | |||||||||||||||
Common stock dividends | (88,492 | ) | (11,627 | ) | (14,349 | ) | — | 25,976 | (88,492 | ) | |||||||||||
Balance, December 31, 2014 | $ | 1,682,144 | 281,846 | 256,692 | 101 | (538,639 | ) | $ | 1,682,144 | ||||||||||||
Schedule of consolidating statements of cash flows | Consolidating statement of cash flows | ||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income | $ | 138,721 | 19,223 | 22,656 | — | (40,964 | ) | [2] | $ | 139,636 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||
Equity in earnings | (41,064 | ) | — | — | — | 40,964 | [2] | (100 | ) | ||||||||||||
Common stock dividends received from subsidiaries | 26,076 | — | — | — | (25,976 | ) | [2] | 100 | |||||||||||||
Depreciation of property, plant and equipment | 109,204 | 35,904 | 21,279 | — | — | 166,387 | |||||||||||||||
Other amortization | 1,749 | 2,596 | 3,746 | — | — | 8,091 | |||||||||||||||
Increase in deferred income taxes | 56,901 | 12,083 | 13,963 | — | — | 82,947 | |||||||||||||||
Change in tax credits, net | 4,998 | 680 | 384 | — | — | 6,062 | |||||||||||||||
Allowance for equity funds used during construction | (6,085 | ) | (472 | ) | (214 | ) | — | — | (6,771 | ) | |||||||||||
Change in cash overdraft | — | — | (1,038 | ) | — | — | (1,038 | ) | |||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease in accounts receivable | 16,213 | 7,150 | 3,483 | — | (103 | ) | [1] | 26,743 | |||||||||||||
Decrease in accrued unbilled revenues | 4,680 | 1,174 | 896 | — | — | 6,750 | |||||||||||||||
Decrease in fuel oil stock | 25,098 | 378 | 2,565 | — | — | 28,041 | |||||||||||||||
Decrease (increase) in materials and supplies | 4,223 | 219 | (2,648 | ) | — | — | 1,794 | ||||||||||||||
Increase in regulatory assets | (14,620 | ) | (3,357 | ) | 977 | — | — | (17,000 | ) | ||||||||||||
Decrease in accounts payable | (74,276 | ) | (8,490 | ) | (7,866 | ) | — | — | (90,632 | ) | |||||||||||
Change in prepaid and accrued income taxes and revenue taxes | (4,166 | ) | (3,251 | ) | 3,381 | — | — | (4,036 | ) | ||||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (562 | ) | — | (399 | ) | — | — | (961 | ) | ||||||||||||
Change in other assets and liabilities | (46,032 | ) | (12,085 | ) | (4,945 | ) | — | 103 | [1] | (62,959 | ) | ||||||||||
Net cash provided by operating activities | 201,058 | 51,752 | 56,220 | — | (25,976 | ) | 283,054 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (219,738 | ) | (48,050 | ) | (43,786 | ) | — | — | (311,574 | ) | |||||||||||
Contributions in aid of construction | 30,021 | 7,695 | 4,090 | — | — | 41,806 | |||||||||||||||
Advances from affiliates | (9,261 | ) | 1,000 | — | — | 8,261 | [1] | — | |||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||
Investment in consolidated subsidiary | — | — | — | — | — | — | |||||||||||||||
Net cash used in investing activities | (198,978 | ) | (39,355 | ) | (39,696 | ) | — | 8,261 | (269,768 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (88,492 | ) | (11,627 | ) | (14,349 | ) | — | 25,976 | [2] | (88,492 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | |||||||||||
Proceeds from issuance of common stock | 40,000 | — | — | — | — | 40,000 | |||||||||||||||
Proceeds from issuance of long-term debt | — | — | — | — | — | — | |||||||||||||||
Repayment of long-term debt | — | (11,400 | ) | — | — | — | (11,400 | ) | |||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (1,000 | ) | 10,500 | (1,239 | ) | — | (8,261 | ) | [2] | — | |||||||||||
Other | (337 | ) | (50 | ) | (75 | ) | — | — | (462 | ) | |||||||||||
Net cash used in financing activities | (50,909 | ) | (13,111 | ) | (16,044 | ) | — | 17,715 | (62,349 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (48,829 | ) | (714 | ) | 480 | — | — | (49,063 | ) | ||||||||||||
Cash and cash equivalents, January 1 | 61,245 | 1,326 | 153 | 101 | — | 62,825 | |||||||||||||||
Cash and cash equivalents, December 31 | $ | 12,416 | 612 | 633 | 101 | — | $ | 13,762 | |||||||||||||
Consolidating statement of cash flows | |||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 124,009 | 20,670 | 21,658 | (3 | ) | (41,410 | ) | [2] | $ | 124,924 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||||||||||||
Equity in earnings | (41,510 | ) | — | — | — | 41,410 | [2] | (100 | ) | ||||||||||||
Common stock dividends received from subsidiaries | 28,505 | — | — | — | (28,405 | ) | [2] | 100 | |||||||||||||
Depreciation of property, plant and equipment | 99,738 | 34,188 | 20,099 | — | — | 154,025 | |||||||||||||||
Other amortization | 554 | 1,979 | 2,544 | — | — | 5,077 | |||||||||||||||
Increase in deferred income taxes | 41,409 | 10,569 | 12,529 | — | — | 64,507 | |||||||||||||||
Change in tax credits, net | 5,152 | 818 | 1,047 | — | — | 7,017 | |||||||||||||||
Allowance for equity funds used during construction | (4,495 | ) | (643 | ) | (423 | ) | — | — | (5,561 | ) | |||||||||||
Change in cash overdraft | — | — | 1,038 | — | — | 1,038 | |||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Decrease (increase) in accounts receivable | 49,974 | (1,459 | ) | 1,178 | — | (248 | ) | [1] | 49,445 | ||||||||||||
Decrease (increase) in accrued unbilled revenues | (7,152 | ) | (2,707 | ) | 33 | — | — | (9,826 | ) | ||||||||||||
Decrease in fuel oil stock | 23,563 | 1,307 | 2,462 | — | — | 27,332 | |||||||||||||||
Increase in materials and supplies | (5,598 | ) | (1,547 | ) | (814 | ) | — | — | (7,959 | ) | |||||||||||
Increase in regulatory assets | (46,047 | ) | (9,237 | ) | (10,177 | ) | — | — | (65,461 | ) | |||||||||||
Decrease in accounts payable | (6,136 | ) | (4,756 | ) | (9,936 | ) | — | — | (20,828 | ) | |||||||||||
Change in prepaid and accrued income taxes and revenue taxes | 4,632 | (4,114 | ) | (2,546 | ) | — | — | (2,028 | ) | ||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 2,325 | (1 | ) | (84 | ) | — | — | 2,240 | |||||||||||||
Change in other assets and liabilities | (17,941 | ) | (6,262 | ) | (7,544 | ) | — | 248 | [1] | (31,499 | ) | ||||||||||
Net cash provided by (used in) operating activities | 250,982 | 38,805 | 31,064 | (3 | ) | (28,405 | ) | 292,443 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (237,899 | ) | (52,135 | ) | (52,451 | ) | — | — | (342,485 | ) | |||||||||||
Contributions in aid of construction | 21,686 | 7,590 | 2,884 | — | — | 32,160 | |||||||||||||||
Advances from affiliates | 2,561 | 17,050 | — | — | (19,611 | ) | [1] | — | |||||||||||||
Other | — | (230 | ) | — | — | — | (230 | ) | |||||||||||||
Investment in consolidated subsidiary | (12,461 | ) | — | — | — | 12,461 | [2] | — | |||||||||||||
Net cash used in investing activities | (226,113 | ) | (27,725 | ) | (49,567 | ) | — | (7,150 | ) | (310,555 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (81,578 | ) | (14,388 | ) | (14,017 | ) | — | 28,405 | [2] | (81,578 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | |||||||||||
Proceeds from the issuance of common stock | 78,500 | — | 12,461 | — | (12,461 | ) | [2] | 78,500 | |||||||||||||
Proceeds from the issuance of long-term debt | 140,000 | 56,000 | 40,000 | — | — | 236,000 | |||||||||||||||
Repayment of long-term debt | (90,000 | ) | (56,000 | ) | (20,000 | ) | — | — | (166,000 | ) | |||||||||||
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (17,050 | ) | — | (2,561 | ) | — | 19,611 | [1] | — | ||||||||||||
Other | (681 | ) | (273 | ) | (195 | ) | — | — | (1,149 | ) | |||||||||||
Net cash provided by (used in) financing activities | 28,111 | (15,195 | ) | 15,307 | — | 35,555 | 63,778 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 52,980 | (4,115 | ) | (3,196 | ) | (3 | ) | — | 45,666 | ||||||||||||
Cash and cash equivalents, January 1 | 8,265 | 5,441 | 3,349 | 104 | — | 17,159 | |||||||||||||||
Cash and cash equivalents, December 31 | $ | 61,245 | 1,326 | 153 | 101 | — | $ | 62,825 | |||||||||||||
Consolidating statement of cash flows | |||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating | Hawaiian Electric | |||||||||||||||
adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net income (loss) | $ | 100,356 | 16,746 | 13,008 | (3 | ) | (28,836 | ) | [2] | $ | 101,271 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||||||||||||||||
Equity in earnings | (28,936 | ) | — | — | — | 28,836 | [2] | (100 | ) | ||||||||||||
Common stock dividends received from subsidiaries | 47,035 | — | — | — | (46,935 | ) | [2] | 100 | |||||||||||||
Depreciation of property, plant and equipment | 90,783 | 33,337 | 20,378 | — | — | 144,498 | |||||||||||||||
Other amortization | 1,508 | 3,252 | 2,238 | — | — | 6,998 | |||||||||||||||
Impairment of utility assets | 29,000 | 5,500 | 5,500 | — | — | 40,000 | |||||||||||||||
Increase in deferred income taxes | 66,968 | 7,457 | 12,453 | — | — | 86,878 | |||||||||||||||
Change in tax credits, net | 5,006 | 522 | 547 | — | — | 6,075 | |||||||||||||||
Allowance for equity funds used during construction | (5,735 | ) | (585 | ) | (687 | ) | — | — | (7,007 | ) | |||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||
Increase in accounts receivable | (48,451 | ) | (1,106 | ) | (2,164 | ) | — | 4,717 | [1] | (47,004 | ) | ||||||||||
Decrease (increase) in accrued unbilled revenues | 2,728 | 4,106 | (3,306 | ) | — | — | 3,528 | ||||||||||||||
Decrease in fuel oil stock | 4,861 | 3,732 | 1,536 | — | — | 10,129 | |||||||||||||||
Increase in materials and supplies | (6,683 | ) | (636 | ) | (578 | ) | — | — | (7,897 | ) | |||||||||||
Increase in regulatory assets | (55,605 | ) | (9,649 | ) | (7,147 | ) | — | — | (72,401 | ) | |||||||||||
Increase (decrease) in accounts payable | (31,743 | ) | (8,110 | ) | 940 | — | — | (38,913 | ) | ||||||||||||
Change in prepaid and accrued income taxes and revenue taxes | 19,871 | 1,935 | 3,433 | — | — | 25,239 | |||||||||||||||
Decrease in defined benefit pension and other postretirement benefits plans liability | (434 | ) | (191 | ) | (119 | ) | — | — | (744 | ) | |||||||||||
Change in other assets and liabilities | (44,880 | ) | (11,143 | ) | (12,678 | ) | (1 | ) | (4,717 | ) | [1] | (73,419 | ) | ||||||||
Net cash provided by (used in) operating activities | 145,649 | 45,167 | 33,354 | (4 | ) | (46,935 | ) | 177,231 | |||||||||||||
Cash flows from investing activities | |||||||||||||||||||||
Capital expenditures | (233,792 | ) | (41,060 | ) | (35,239 | ) | — | — | (310,091 | ) | |||||||||||
Contributions in aid of construction | 32,285 | 8,184 | 5,513 | — | — | 45,982 | |||||||||||||||
Advances from (to) affiliates | (9,400 | ) | 28,100 | 18,500 | — | (37,200 | ) | [1] | — | ||||||||||||
Net cash used in investing activities | (210,907 | ) | (4,776 | ) | (11,226 | ) | — | (37,200 | ) | (264,109 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Common stock dividends | (73,044 | ) | (27,738 | ) | (19,197 | ) | — | 46,935 | [2] | (73,044 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | |||||||||||
Proceeds from the issuance of long-term debt | 367,000 | 31,000 | 59,000 | — | — | 457,000 | |||||||||||||||
Proceeds from issuance of common stock | 44,000 | — | — | — | — | 44,000 | |||||||||||||||
Repayment of long-term debt | (259,580 | ) | (41,200 | ) | (67,720 | ) | — | — | (368,500 | ) | |||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (46,600 | ) | — | 9,400 | — | 37,200 | [1] | — | |||||||||||||
Other | (1,992 | ) | 139 | (377 | ) | — | — | (2,230 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 28,704 | (38,333 | ) | (19,275 | ) | — | 84,135 | 55,231 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (36,554 | ) | 2,058 | 2,853 | (4 | ) | — | (31,647 | ) | ||||||||||||
Cash and cash equivalents, January 1 | 44,819 | 3,383 | 496 | 108 | — | 48,806 | |||||||||||||||
Cash and cash equivalents, December 31 | $ | 8,265 | 5,441 | 3,349 | 104 | — | $ | 17,159 | |||||||||||||
Explanation of consolidating adjustments on consolidating schedules: | |||||||||||||||||||||
[1] | Eliminations of intercompany receivables and payables and other intercompany transactions. | ||||||||||||||||||||
[2] | Elimination of investment in subsidiaries, carried at equity. | ||||||||||||||||||||
[3] | Reclassification of accrued income taxes for financial statement presentation. |
Bank_segment_HEI_only_Tables
Bank segment (HEI only) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Bank Segment Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Schedule of statements of income data | Statements of Income Data | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 179,341 | $ | 172,969 | $ | 176,057 | ||||||||||||||||||||||||||||||||||
Interest and dividends on investment securities | 11,945 | 13,095 | 13,822 | |||||||||||||||||||||||||||||||||||||
Total interest and dividend income | 191,286 | 186,064 | 189,879 | |||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||
Interest on deposit liabilities | 5,077 | 5,092 | 6,423 | |||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 5,731 | 4,985 | 4,869 | |||||||||||||||||||||||||||||||||||||
Total interest expense | 10,808 | 10,077 | 11,292 | |||||||||||||||||||||||||||||||||||||
Net interest income | 180,478 | 175,987 | 178,587 | |||||||||||||||||||||||||||||||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 174,352 | 174,480 | 165,704 | |||||||||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||||||||||
Fees from other financial services | 21,747 | 27,099 | 31,361 | |||||||||||||||||||||||||||||||||||||
Fee income on deposit liabilities | 19,249 | 18,363 | 17,775 | |||||||||||||||||||||||||||||||||||||
Fee income on other financial products | 8,131 | 8,405 | 6,577 | |||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | 3,949 | 3,928 | 3,981 | |||||||||||||||||||||||||||||||||||||
Mortgage banking income | 2,913 | 8,309 | 14,628 | |||||||||||||||||||||||||||||||||||||
Gains on sale of investment securities | 2,847 | 1,226 | 134 | |||||||||||||||||||||||||||||||||||||
Other income, net | 2,375 | 4,753 | 1,204 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 61,211 | 72,083 | 75,660 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 79,885 | 82,910 | 75,979 | |||||||||||||||||||||||||||||||||||||
Occupancy | 17,197 | 16,747 | 17,179 | |||||||||||||||||||||||||||||||||||||
Data processing | 11,690 | 10,952 | 10,098 | |||||||||||||||||||||||||||||||||||||
Services | 10,269 | 9,015 | 9,866 | |||||||||||||||||||||||||||||||||||||
Equipment | 6,564 | 7,295 | 7,105 | |||||||||||||||||||||||||||||||||||||
Office supplies, printing and postage | 6,089 | 4,233 | 3,870 | |||||||||||||||||||||||||||||||||||||
Marketing | 3,999 | 3,373 | 3,260 | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 3,261 | 3,253 | 3,307 | |||||||||||||||||||||||||||||||||||||
Other expense | 20,990 | 21,726 | 21,679 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 159,944 | 159,504 | 152,343 | |||||||||||||||||||||||||||||||||||||
Income before income taxes | 75,619 | 87,059 | 89,021 | |||||||||||||||||||||||||||||||||||||
Income taxes | 24,127 | 29,525 | 30,384 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 51,492 | $ | 57,534 | $ | 58,637 | ||||||||||||||||||||||||||||||||||
Schedule of statements of comprehensive income data | Statements of Comprehensive Income | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 51,492 | $ | 57,534 | $ | 58,637 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on available-for sale investment securities: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(3,856), $9,037 and ($631), for 2014, 2013 and 2012, respectively | 5,840 | (13,686 | ) | 956 | ||||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $1,132, $488 and $53 for 2014, 2013 and 2012, respectively | (1,715 | ) | (738 | ) | (81 | ) | ||||||||||||||||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||||||||||||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $6,164, ($10,450) and $5,240 for 2014, 2013 and 2012, respectively | (9,336 | ) | 15,826 | (7,936 | ) | |||||||||||||||||||||||||||||||||||
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 $561, $1,187 and $684 for 2014, 2013 and 2012, respectively | 850 | 1,797 | 1,036 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (4,361 | ) | 3,199 | (6,025 | ) | |||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 47,131 | $ | 60,733 | $ | 52,612 | ||||||||||||||||||||||||||||||||||
Schedule of balance sheets data | Balance Sheets Data | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 107,233 | $ | 108,998 | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 54,230 | 47,605 | ||||||||||||||||||||||||||||||||||||||
Available-for-sale investment securities, at fair value | 550,394 | 529,007 | ||||||||||||||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle, at cost | 69,302 | 92,546 | ||||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 4,434,651 | 4,150,229 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (45,618 | ) | (40,116 | ) | ||||||||||||||||||||||||||||||||||||
Net loans | 4,389,033 | 4,110,113 | ||||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 8,424 | 5,302 | ||||||||||||||||||||||||||||||||||||||
Other | 304,435 | 268,063 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,565,241 | $ | 5,243,824 | ||||||||||||||||||||||||||||||||||||
Liabilities and shareholder’s equity | ||||||||||||||||||||||||||||||||||||||||
Deposit liabilities–noninterest-bearing | $ | 1,342,794 | $ | 1,214,418 | ||||||||||||||||||||||||||||||||||||
Deposit liabilities–interest-bearing | 3,280,621 | 3,158,059 | ||||||||||||||||||||||||||||||||||||||
Other borrowings | 290,656 | 244,514 | ||||||||||||||||||||||||||||||||||||||
Other | 116,527 | 105,679 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | 5,030,598 | 4,722,670 | ||||||||||||||||||||||||||||||||||||||
Commitments and contingencies (see “Litigation” below) | ||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Additional paid in capital | 338,411 | 336,053 | ||||||||||||||||||||||||||||||||||||||
Retained earnings | 212,789 | 197,297 | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | 462 | $ | (3,663 | ) | |||||||||||||||||||||||||||||||||||
Retirement benefit plans | (17,020 | ) | (16,558 | ) | (8,534 | ) | (12,197 | ) | ||||||||||||||||||||||||||||||||
Total shareholder’s equity | 534,643 | 521,154 | ||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 5,565,241 | $ | 5,243,824 | ||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | $ | 134,115 | $ | 129,963 | ||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 92,407 | 67,766 | ||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 3,196 | 3,616 | ||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,632 | 13,133 | ||||||||||||||||||||||||||||||||||||||
Mortgage-servicing rights | 11,540 | 11,687 | ||||||||||||||||||||||||||||||||||||||
Low-income housing equity investments | 32,457 | 14,543 | ||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans, net | 891 | 1,205 | ||||||||||||||||||||||||||||||||||||||
Other | 16,197 | 26,150 | ||||||||||||||||||||||||||||||||||||||
$ | 304,435 | $ | 268,063 | |||||||||||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||
Accrued expenses | $ | 37,880 | $ | 19,989 | ||||||||||||||||||||||||||||||||||||
Federal and state income taxes payable | 26,806 | 37,807 | ||||||||||||||||||||||||||||||||||||||
Cashier’s checks | 20,509 | 21,110 | ||||||||||||||||||||||||||||||||||||||
Advance payments by borrowers | 9,652 | 9,647 | ||||||||||||||||||||||||||||||||||||||
Other | 21,680 | 17,126 | ||||||||||||||||||||||||||||||||||||||
$ | 116,527 | $ | 105,679 | |||||||||||||||||||||||||||||||||||||
Schedule of the book value and aggregate fair value by major security type | The major components of investment securities were as follows: | |||||||||||||||||||||||||||||||||||||||
Gross unrealized losses | ||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | Less than 12 months | 12 months or longer | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized | unrealized | unrealized | fair | Number of issues | Fair value | Amount | Number of issues | Fair value | Amount | ||||||||||||||||||||||||||||||
cost | gains | losses | value | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 119,507 | $ | 1,092 | $ | (1,039 | ) | $ | 119,560 | 6 | $ | 41,970 | $ | (361 | ) | 5 | $ | 29,168 | $ | (678 | ) | |||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 430,120 | 5,653 | (4,939 | ) | 430,834 | 6 | 47,029 | (164 | ) | 29 | 172,623 | (4,775 | ) | |||||||||||||||||||||||||||
$ | 549,627 | $ | 6,745 | $ | (5,978 | ) | $ | 550,394 | 12 | $ | 88,999 | $ | (525 | ) | 34 | $ | 201,791 | $ | (5,453 | ) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
Federal agency obligations | $ | 83,193 | $ | 174 | $ | (2,394 | ) | $ | 80,973 | 10 | $ | 70,799 | $ | (2,394 | ) | — | $ | — | $ | — | ||||||||||||||||||||
Mortgage-related securities- FNMA, FHLMC and GNMA | 374,993 | 4,911 | (10,460 | ) | 369,444 | 36 | 228,543 | (8,819 | ) | 4 | 19,655 | (1,641 | ) | |||||||||||||||||||||||||||
Municipal bonds | 76,904 | 1,826 | (140 | ) | 78,590 | 3 | 14,478 | (140 | ) | — | — | — | ||||||||||||||||||||||||||||
$ | 535,090 | $ | 6,911 | $ | (12,994 | ) | $ | 529,007 | 49 | $ | 313,820 | $ | (11,353 | ) | 4 | $ | 19,655 | $ | (1,641 | ) | ||||||||||||||||||||
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of available-for-sale investment securities were as follows: | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Cost | value | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Due after one year through five years | 34,953 | 35,007 | ||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 47,131 | 47,885 | ||||||||||||||||||||||||||||||||||||||
Due after ten years | 37,423 | 36,668 | ||||||||||||||||||||||||||||||||||||||
119,507 | 119,560 | |||||||||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA,FHLMC and GNMA | 430,120 | 430,834 | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 549,627 | $ | 550,394 | ||||||||||||||||||||||||||||||||||||
Schedule of proceeds, gains and losses from sales of available for sale investment securities | The proceeds, gross gains and losses from sales of available-for-sale investment securities were as follows: | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 79.6 | $ | 71.4 | $ | 3.5 | ||||||||||||||||||||||||||||||||||
Gross gains | 2.8 | 1.2 | — | |||||||||||||||||||||||||||||||||||||
Gross losses | — | — | — | |||||||||||||||||||||||||||||||||||||
Schedule of interest income from available for sale investment securities | Interest income from taxable and non-taxable investment securities were as follows: | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Taxable | $ | 11,666 | $ | 11,474 | $ | 12,309 | ||||||||||||||||||||||||||||||||||
Non-taxable | 279 | 1,621 | 1,513 | |||||||||||||||||||||||||||||||||||||
$ | 11,945 | $ | 13,095 | $ | 13,822 | |||||||||||||||||||||||||||||||||||
Schedule of loans receivable | The components of loans receivable were summarized as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,044,205 | $ | 2,006,007 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 531,917 | 440,443 | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 818,815 | 739,331 | ||||||||||||||||||||||||||||||||||||||
Residential land | 16,240 | 16,176 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | 96,438 | 52,112 | ||||||||||||||||||||||||||||||||||||||
Residential construction | 18,961 | 12,774 | ||||||||||||||||||||||||||||||||||||||
Total real estate | 3,526,576 | 3,266,843 | ||||||||||||||||||||||||||||||||||||||
Commercial | 791,757 | 783,388 | ||||||||||||||||||||||||||||||||||||||
Consumer | 122,656 | 108,722 | ||||||||||||||||||||||||||||||||||||||
Total loans | 4,440,989 | 4,158,953 | ||||||||||||||||||||||||||||||||||||||
Less: Deferred fees and discounts | (6,338 | ) | (8,724 | ) | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (45,618 | ) | (40,116 | ) | ||||||||||||||||||||||||||||||||||||
Total loans, net | $ | 4,389,033 | $ | 4,110,113 | ||||||||||||||||||||||||||||||||||||
Schedule of allowance for loan losses | The allowance for loan losses (balances and changes) and financing receivables were as follows: | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Residential 1-4 family | Commercial | Home equity | Residential land | Commercial construction | Residential construction | Commercial | Consumer | Unallo- cated | Total | ||||||||||||||||||||||||||||||
real estate | line of credit | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,534 | $ | 5,059 | $ | 5,229 | $ | 1,817 | $ | 2,397 | $ | 19 | $ | 15,803 | $ | 2,367 | $ | 1,891 | $ | 40,116 | ||||||||||||||||||||
Charge-offs | (987 | ) | — | (196 | ) | (81 | ) | — | — | (1,872 | ) | (2,414 | ) | — | (5,550 | ) | ||||||||||||||||||||||||
Recoveries | 1,180 | — | 752 | 469 | — | — | 1,636 | 889 | — | 4,926 | ||||||||||||||||||||||||||||||
Provision | (1,065 | ) | 3,895 | 1,197 | (330 | ) | 3,074 | 9 | (1,550 | ) | 2,787 | (1,891 | ) | 6,126 | ||||||||||||||||||||||||||
Ending balance | $ | 4,662 | $ | 8,954 | $ | 6,982 | $ | 1,875 | $ | 5,471 | $ | 28 | $ | 14,017 | $ | 3,629 | $ | — | $ | 45,618 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 951 | $ | 1,845 | $ | 46 | $ | 1,057 | $ | — | $ | — | $ | 760 | $ | 6 | $ | 4,665 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,711 | $ | 7,109 | $ | 6,936 | $ | 818 | $ | 5,471 | $ | 28 | $ | 13,257 | $ | 3,623 | $ | — | $ | 40,953 | ||||||||||||||||||||
Financing Receivables: | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,044,205 | $ | 531,917 | $ | 818,815 | $ | 16,240 | $ | 96,438 | $ | 18,961 | $ | 791,757 | $ | 122,656 | $ | 4,440,989 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 22,981 | $ | 5,112 | $ | 779 | $ | 7,850 | $ | — | $ | — | $ | 13,108 | $ | 16 | $ | 49,846 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,021,224 | $ | 526,805 | $ | 818,036 | $ | 8,390 | $ | 96,438 | $ | 18,961 | $ | 778,649 | $ | 122,640 | $ | 4,391,143 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | (485 | ) | — | — | (3,056 | ) | (2,717 | ) | — | (8,202 | ) | ||||||||||||||||||||||||
Recoveries | 1,881 | — | 358 | 868 | — | — | 1,089 | 630 | — | 4,826 | ||||||||||||||||||||||||||||||
Provision | (1,253 | ) | 2,094 | 1,160 | (2,841 | ) | 374 | 10 | 1,839 | 435 | (311 | ) | 1,507 | |||||||||||||||||||||||||||
Ending balance | $ | 5,534 | $ | 5,059 | $ | 5,229 | $ | 1,817 | $ | 2,397 | $ | 19 | $ | 15,803 | $ | 2,367 | $ | 1,891 | $ | 40,116 | ||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 642 | $ | 1,118 | $ | — | $ | 1,332 | $ | — | $ | — | $ | 2,246 | $ | — | $ | 5,338 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 4,892 | $ | 3,941 | $ | 5,229 | $ | 485 | $ | 2,397 | $ | 19 | $ | 13,557 | $ | 2,367 | $ | 1,891 | $ | 34,778 | ||||||||||||||||||||
Financing Receivables: | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,006,007 | $ | 440,443 | $ | 739,331 | $ | 16,176 | $ | 52,112 | $ | 12,774 | $ | 783,388 | $ | 108,722 | $ | 4,158,953 | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 20,317 | $ | 4,604 | $ | 1,179 | $ | 10,577 | $ | — | $ | — | $ | 21,225 | $ | 19 | $ | 57,921 | ||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,985,690 | $ | 435,839 | $ | 738,152 | $ | 5,599 | $ | 52,112 | $ | 12,774 | $ | 762,163 | $ | 108,703 | $ | 4,101,032 | ||||||||||||||||||||||
Schedule of changes in allowance for loan losses | Changes in the allowance for loan losses were as follows: | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses, January 1 | $ | 40,116 | $ | 41,985 | $ | 37,906 | ||||||||||||||||||||||||||||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | |||||||||||||||||||||||||||||||||||||
Charge-offs, net of recoveries | ||||||||||||||||||||||||||||||||||||||||
Real estate loans | (1,137 | ) | (678 | ) | 3,828 | |||||||||||||||||||||||||||||||||||
Other loans | 1,761 | 4,054 | 4,976 | |||||||||||||||||||||||||||||||||||||
Net charge-offs | 624 | 3,376 | 8,804 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses, December 31 | $ | 45,618 | $ | 40,116 | $ | 41,985 | ||||||||||||||||||||||||||||||||||
Ratio of net charge-offs to average total loans | 0.01 | % | 0.09 | % | 0.24 | % | ||||||||||||||||||||||||||||||||||
Schedule of credit risk profile by internally assigned grade for loans | The credit risk profile by internally assigned grade for loans was as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | ||||||||||||||||||||||||||||||||||
real estate | construction | real estate | construction | |||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||
Pass | $ | 493,105 | $ | 79,312 | $ | 743,334 | $ | 375,217 | $ | 52,112 | $ | 703,053 | ||||||||||||||||||||||||||||
Special mention | 5,209 | — | 16,095 | 33,436 | — | 17,634 | ||||||||||||||||||||||||||||||||||
Substandard | 33,603 | 17,126 | 31,665 | 28,020 | — | 59,663 | ||||||||||||||||||||||||||||||||||
Doubtful | — | — | 663 | 3,770 | — | 3,038 | ||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 531,917 | $ | 96,438 | $ | 791,757 | $ | 440,443 | $ | 52,112 | $ | 783,388 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 6,124 | $ | 1,732 | $ | 12,632 | $ | 20,488 | $ | 2,023,717 | $ | 2,044,205 | $ | — | ||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | 531,917 | 531,917 | — | |||||||||||||||||||||||||||||||||
Home equity line of credit | 1,341 | 501 | 194 | 2,036 | 816,779 | 818,815 | — | |||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | 16,240 | 16,240 | — | |||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 96,438 | 96,438 | — | |||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 18,961 | 18,961 | — | |||||||||||||||||||||||||||||||||
Commercial | 699 | 145 | 569 | 1,413 | 790,344 | 791,757 | — | |||||||||||||||||||||||||||||||||
Consumer | 829 | 333 | 403 | 1,565 | 121,091 | 122,656 | — | |||||||||||||||||||||||||||||||||
Total loans | $ | 8,993 | $ | 2,711 | $ | 13,798 | $ | 25,502 | $ | 4,415,487 | $ | 4,440,989 | $ | — | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,728 | $ | 622 | $ | 15,411 | $ | 18,761 | $ | 1,987,246 | $ | 2,006,007 | $ | — | ||||||||||||||||||||||||||
Commercial real estate | — | — | 3,770 | 3,770 | 436,673 | 440,443 | — | |||||||||||||||||||||||||||||||||
Home equity line of credit | 765 | 312 | 960 | 2,037 | 737,294 | 739,331 | — | |||||||||||||||||||||||||||||||||
Residential land | 184 | 48 | 2,756 | 2,988 | 13,188 | 16,176 | — | |||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 52,112 | 52,112 | — | |||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 12,774 | 12,774 | — | |||||||||||||||||||||||||||||||||
Commercial | 1,668 | 612 | 3,026 | 5,306 | 778,082 | 783,388 | — | |||||||||||||||||||||||||||||||||
Consumer | 436 | 158 | 304 | 898 | 107,824 | 108,722 | — | |||||||||||||||||||||||||||||||||
Total loans | $ | 5,781 | $ | 1,752 | $ | 26,227 | $ | 33,760 | $ | 4,125,193 | $ | 4,158,953 | $ | — | ||||||||||||||||||||||||||
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, accruing loans 90 days or more past due, and TDR loans was as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 19,253 | $ | 19,679 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,112 | 4,439 | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 1,087 | 2,060 | ||||||||||||||||||||||||||||||||||||||
Residential land | 720 | 3,161 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | ||||||||||||||||||||||||||||||||||||||
Residential construction | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial | 10,053 | 18,781 | ||||||||||||||||||||||||||||||||||||||
Consumer | 661 | 401 | ||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 36,886 | $ | 48,521 | ||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | ||||||||||||||||||||||||||||||||||||||
Residential land | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | ||||||||||||||||||||||||||||||||||||||
Residential construction | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial | — | — | ||||||||||||||||||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||||||||||||||||||
Total accruing loans 90 days or more past due | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 13,525 | $ | 9,744 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | ||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 480 | 171 | ||||||||||||||||||||||||||||||||||||||
Residential land | 7,130 | 7,476 | ||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | ||||||||||||||||||||||||||||||||||||||
Residential construction | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial | 2,972 | 1,649 | ||||||||||||||||||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||||||||||||||||||
Total troubled debt restructured loans not included above | $ | 24,107 | $ | 19,040 | ||||||||||||||||||||||||||||||||||||
Schedule of the carrying amount and the total unpaid principal balance of impaired loans | The total carrying amount and the total unpaid principal balance of impaired loans were as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | Interest | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||
investment | principal | Allow- | recorded | income | investment | principal | allow- | recorded | income | |||||||||||||||||||||||||||||||
balance | ance | investment | recognized* | balance | ance | investment | recognized* | |||||||||||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 11,654 | $ | 12,987 | $ | — | $ | 9,056 | $ | 227 | $ | 9,708 | $ | 12,144 | $ | — | $ | 11,674 | $ | 386 | ||||||||||||||||||||
Commercial real estate | 571 | 626 | — | 194 | — | — | — | — | 802 | — | ||||||||||||||||||||||||||||||
Home equity line of credit | 363 | 606 | — | 402 | 5 | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||
Residential land | 2,344 | 3,200 | — | 2,728 | 172 | 2,622 | 3,612 | — | 6,675 | 482 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial | 8,235 | 11,471 | — | 5,204 | 38 | 3,466 | 4,715 | — | 4,837 | 12 | ||||||||||||||||||||||||||||||
Consumer | — | — | — | 8 | — | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||
23,167 | 28,890 | — | 17,592 | 442 | 16,487 | 21,717 | — | 24,631 | 882 | |||||||||||||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 11,327 | 11,347 | 951 | 8,822 | 419 | 6,216 | 6,236 | 642 | 6,455 | 372 | ||||||||||||||||||||||||||||||
Commercial real estate | 4,541 | 4,541 | 1,845 | 3,415 | 478 | 4,604 | 4,686 | 1,118 | 5,745 | 152 | ||||||||||||||||||||||||||||||
Home equity line of credit | 416 | 420 | 46 | 132 | 6 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential land | 5,506 | 5,584 | 1,057 | 6,415 | 484 | 7,452 | 7,623 | 1,332 | 6,844 | 409 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial | 4,873 | 5,211 | 760 | 12,089 | 438 | 17,759 | 20,640 | 2,246 | 15,635 | 139 | ||||||||||||||||||||||||||||||
Consumer | 16 | 16 | 6 | 9 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
26,679 | 27,119 | 4,665 | 30,882 | 1,825 | 36,031 | 39,185 | 5,338 | 34,679 | 1,072 | |||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 22,981 | 24,334 | 951 | 17,878 | 646 | 15,924 | 18,380 | 642 | 18,129 | 758 | ||||||||||||||||||||||||||||||
Commercial real estate | 5,112 | 5,167 | 1,845 | 3,609 | 478 | 4,604 | 4,686 | 1,118 | 6,547 | 152 | ||||||||||||||||||||||||||||||
Home equity line of credit | 779 | 1,026 | 46 | 534 | 11 | 672 | 1,227 | — | 623 | 2 | ||||||||||||||||||||||||||||||
Residential land | 7,850 | 8,784 | 1,057 | 9,143 | 656 | 10,074 | 11,235 | 1,332 | 13,519 | 891 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial | 13,108 | 16,682 | 760 | 17,293 | 476 | 21,225 | 25,355 | 2,246 | 20,472 | 151 | ||||||||||||||||||||||||||||||
Consumer | 16 | 16 | 6 | 17 | — | 19 | 19 | — | 20 | — | ||||||||||||||||||||||||||||||
$ | 49,846 | $ | 56,009 | $ | 4,665 | $ | 48,474 | $ | 2,267 | $ | 52,518 | $ | 60,902 | $ | 5,338 | $ | 59,310 | $ | 1,954 | |||||||||||||||||||||
* Since loan was classified as impaired. | ||||||||||||||||||||||||||||||||||||||||
Schedule of loan modifications | Loan modifications that occurred during 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
Number | Outstanding recorded investment | Net increase in ALLL (as of period end) | Number | Outstanding recorded investment | Net increase in ALLL (as of period end) | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | of | Pre-modification | Post-modification | of | Pre-modification | Post-modification | ||||||||||||||||||||||||||||||||||
contracts | contracts | |||||||||||||||||||||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 38 | $ | 10,680 | $ | 10,737 | $ | 163 | 34 | $ | 8,876 | $ | 8,957 | $ | 297 | ||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Home equity line of credit | 8 | 502 | 502 | 42 | 5 | 637 | 390 | — | ||||||||||||||||||||||||||||||||
Residential land | 18 | 4,304 | 4,304 | 242 | 20 | 6,215 | 6,206 | 131 | ||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Commercial | 7 | 3,827 | 3,827 | 13 | 7 | 4,646 | 4,646 | 94 | ||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
71 | $ | 19,313 | $ | 19,370 | $ | 460 | 66 | $ | 20,374 | $ | 20,199 | $ | 522 | |||||||||||||||||||||||||||
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 2014 and 2013, and for which the payment default occurred within one year of the modification, were as follows: | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings that subsequently defaulted | ||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 390 | — | $ | — | ||||||||||||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Home equity line of credit | — | — | 1 | 67 | ||||||||||||||||||||||||||||||||||||
Residential land | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Residential construction | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Commercial | 1 | 14 | 2 | 660 | ||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||||||||||||||
2 | $ | 404 | 3 | $ | 727 | |||||||||||||||||||||||||||||||||||
Schedule of amortized intangible assets | Changes in carrying value of mortgage servicing rights were as follows: | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated amortization | Valuation allowance | Net | ||||||||||||||||||||||||||||||||||||
carrying amount | carrying amount | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | $ | 27,185 | $ | (15,436 | ) | $ | (209 | ) | $ | 11,540 | ||||||||||||||||||||||||||||||
31-Dec-13 | $ | 25,644 | $ | (13,706 | ) | $ | (251 | ) | $ | 11,687 | ||||||||||||||||||||||||||||||
Changes related to mortgage servicing rights were as follows: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Mortgage servicing rights | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1 | $ | 11,938 | $ | 11,316 | $ | 8,402 | ||||||||||||||||||||||||||||||||||
Amount capitalized | 1,637 | 2,611 | 4,845 | |||||||||||||||||||||||||||||||||||||
Amortization | (1,731 | ) | (1,802 | ) | (1,750 | ) | ||||||||||||||||||||||||||||||||||
Other-than-temporary impairment | (95 | ) | (187 | ) | (181 | ) | ||||||||||||||||||||||||||||||||||
Carrying amount before valuation allowance, December 31 | 11,749 | 11,938 | 11,316 | |||||||||||||||||||||||||||||||||||||
Valuation allowance for mortgage servicing rights | ||||||||||||||||||||||||||||||||||||||||
Balance, January 1 | 251 | 498 | 175 | |||||||||||||||||||||||||||||||||||||
Provision (recovery) | 53 | (60 | ) | 504 | ||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment | (95 | ) | (187 | ) | (181 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31 | 209 | 251 | 498 | |||||||||||||||||||||||||||||||||||||
Net carrying value of mortgage servicing rights | $ | 11,540 | $ | 11,687 | $ | 10,818 | ||||||||||||||||||||||||||||||||||
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights were as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,391,030 | $ | 1,357,003 | ||||||||||||||||||||||||||||||||||||
Weighted average note rate | 4.07 | % | 4.07 | % | ||||||||||||||||||||||||||||||||||||
Weighted average discount rate | 9.6 | % | 9.8 | % | ||||||||||||||||||||||||||||||||||||
Weighted average prepayment speed | 9.5 | % | 8.6 | % | ||||||||||||||||||||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||||||||||||||
Significant unobservable | ||||||||||||||||||||||||||||||||||||||||
input value 1 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted | |||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Residential loans | $ | 2,297 | Fair value of property or collateral | Appraised value less 7% selling cost | 39-99% | 83% | ||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3 | Fair value of property or collateral | Appraised value less 7% selling cost | 7% | ||||||||||||||||||||||||||||||||||||
Commercial loans | 145 | Fair value of property or collateral | Fair value of business assets | 91% | ||||||||||||||||||||||||||||||||||||
Total loans | $ | 2,445 | ||||||||||||||||||||||||||||||||||||||
Tax credit investments | $ | 8,975 | Discounted cash flow | Present value of expected future cash flows | 5-93% | 88% | ||||||||||||||||||||||||||||||||||
Discount rate | 7% | |||||||||||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | $ | 288 | Fair value of property or collateral | Appraised value less 7% selling cost | 100% | 100% | ||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Residential loans | $ | 2,361 | Fair value of property or collateral | Appraised value less 7% selling cost | 44-96% | 87% | ||||||||||||||||||||||||||||||||||
Home equity lines of credit | 170 | Fair value of property or collateral | Appraised value less 7% selling cost | 45-50% | 50% | |||||||||||||||||||||||||||||||||||
Commercial loans | 217 | Fair value of property or collateral | Fair value of business assets | 19% | ||||||||||||||||||||||||||||||||||||
Commercial loans | 1,668 | Discounted cash flow | Present value of expected future cash flows | 58% | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.50% | |||||||||||||||||||||||||||||||||||||||
Total loans | $ | 4,416 | ||||||||||||||||||||||||||||||||||||||
1 | Represent percent of outstanding principal balance. | |||||||||||||||||||||||||||||||||||||||
Schedule of sensitivity analysis of fair value of MSR to hypothetical adverse changes | The sensitivity analysis of fair value of MSR to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Prepayment rate: | ||||||||||||||||||||||||||||||||||||||||
25 basis points adverse rate change | $ | (757 | ) | $ | (732 | ) | ||||||||||||||||||||||||||||||||||
50 basis points adverse change | (1,524 | ) | (1,492 | ) | ||||||||||||||||||||||||||||||||||||
Discount rate: | ||||||||||||||||||||||||||||||||||||||||
25 basis points adverse rate change | (140 | ) | (154 | ) | ||||||||||||||||||||||||||||||||||||
50 basis points adverse change | (278 | ) | (306 | ) | ||||||||||||||||||||||||||||||||||||
Schedule of deposit liabilities | Deposit liabilities. The summarized components of deposit liabilities were as follows: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Weighted-average stated rate | Amount | Weighted-average stated rate | Amount | ||||||||||||||||||||||||||||||||||||
Savings | 0.06 | % | $ | 1,923,062 | 0.06 | % | $ | 1,826,907 | ||||||||||||||||||||||||||||||||
Checking | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing | 0.02 | 768,787 | 0.02 | 721,700 | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing | — | 665,005 | — | 643,628 | ||||||||||||||||||||||||||||||||||||
Commercial checking | — | 677,789 | — | 570,790 | ||||||||||||||||||||||||||||||||||||
Money market | 0.12 | 158,010 | 0.13 | 182,546 | ||||||||||||||||||||||||||||||||||||
Term certificates | 0.83 | 430,762 | 0.8 | 426,906 | ||||||||||||||||||||||||||||||||||||
0.11 | % | $ | 4,623,415 | 0.11 | % | $ | 4,372,477 | |||||||||||||||||||||||||||||||||
Schedule of maturities of term certificates | The approximate scheduled maturities of term certificates outstanding at December 31, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
2015 | $ | 255,896 | ||||||||||||||||||||||||||||||||||||||
2016 | 55,614 | |||||||||||||||||||||||||||||||||||||||
2017 | 44,315 | |||||||||||||||||||||||||||||||||||||||
2018 | 16,949 | |||||||||||||||||||||||||||||||||||||||
2019 | 54,979 | |||||||||||||||||||||||||||||||||||||||
Thereafter | 3,009 | |||||||||||||||||||||||||||||||||||||||
$ | 430,762 | |||||||||||||||||||||||||||||||||||||||
Schedule of interest expense on deposit liabilities by type | Interest expense on deposit liabilities by type of deposit was as follows: | |||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Term certificates | $ | 3,603 | $ | 3,702 | $ | 4,865 | ||||||||||||||||||||||||||||||||||
Savings | 1,134 | 1,052 | 1,128 | |||||||||||||||||||||||||||||||||||||
Money market | 214 | 232 | 319 | |||||||||||||||||||||||||||||||||||||
Interest-bearing checking | 126 | 106 | 111 | |||||||||||||||||||||||||||||||||||||
$ | 5,077 | $ | 5,092 | $ | 6,423 | |||||||||||||||||||||||||||||||||||
Schedule of securities sold under agreements to repurchase | 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 | Net amount of | |||||||||||||||||||||||||||||||||||||
recognized liabilities | offset in the | liabilities presented | ||||||||||||||||||||||||||||||||||||||
Balance Sheet | in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | $ | 191 | $ | — | $ | 191 | ||||||||||||||||||||||||||||||||||
31-Dec-13 | 145 | — | 145 | |||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 50 | $ | 50 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Government entities | 56 | 56 | — | — | ||||||||||||||||||||||||||||||||||||
Commercial account holders | 85 | 85 | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 191 | $ | 191 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Financial institution | $ | 51 | $ | 51 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Commercial account holders | 94 | 94 | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 145 | $ | 145 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
As of December 31, 2014, securities sold under agreements to repurchase were summarized as follows: | ||||||||||||||||||||||||||||||||||||||||
Maturity | Repurchase liability | Weighted-average | Collateralized by | |||||||||||||||||||||||||||||||||||||
interest rate | mortgage-related | |||||||||||||||||||||||||||||||||||||||
securities and federal | ||||||||||||||||||||||||||||||||||||||||
agency obligations at fair value plus | ||||||||||||||||||||||||||||||||||||||||
accrued interest | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Overnight | $ | 84,758 | 0.15 | % | $ | 114,883 | ||||||||||||||||||||||||||||||||||
1 to 29 days | — | — | — | |||||||||||||||||||||||||||||||||||||
30 to 90 days | — | — | — | |||||||||||||||||||||||||||||||||||||
Over 90 days | 105,898 | 1 | 2.5 | 115,842 | ||||||||||||||||||||||||||||||||||||
$ | 190,656 | 1.45 | % | $ | 230,725 | |||||||||||||||||||||||||||||||||||
1 | $50.3 million callable quarterly at par until maturity in 2016. | |||||||||||||||||||||||||||||||||||||||
Schedule of securities sold under agreements to repurchase, which provided for repurchase of identical securities | Information concerning securities sold under agreements to repurchase, which provided for the repurchase of identical securities, was as follows: | |||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Amount outstanding as of December 31 | $ | 191 | $ | 145 | $ | 146 | ||||||||||||||||||||||||||||||||||
Average amount outstanding during the year | $ | 155 | $ | 147 | $ | 173 | ||||||||||||||||||||||||||||||||||
Maximum amount outstanding as of any month-end | $ | 195 | $ | 151 | $ | 189 | ||||||||||||||||||||||||||||||||||
Weighted-average interest rate as of December 31 | 1.45 | % | 1.75 | % | 1.74 | % | ||||||||||||||||||||||||||||||||||
Weighted-average interest rate during the year | 1.67 | % | 1.74 | % | 1.56 | % | ||||||||||||||||||||||||||||||||||
Weighted-average remaining days to maturity as of December 31 | 343 | 367 | 489 | |||||||||||||||||||||||||||||||||||||
Schedule of advances from Federal Home Loan Bank | Advances from Federal Home Loan Bank. | |||||||||||||||||||||||||||||||||||||||
FHLB advances are fixed rate for a specific term and consist of the following: | ||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Weighted-average | Amount | ||||||||||||||||||||||||||||||||||||||
stated rate | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Due in | ||||||||||||||||||||||||||||||||||||||||
2015 | — | % | $ | — | ||||||||||||||||||||||||||||||||||||
2016 | — | — | ||||||||||||||||||||||||||||||||||||||
2017 | 4.28 | 50,000 | 1 | |||||||||||||||||||||||||||||||||||||
2018 | 1.95 | 50,000 | ||||||||||||||||||||||||||||||||||||||
2019 | — | — | ||||||||||||||||||||||||||||||||||||||
Thereafter | — | — | ||||||||||||||||||||||||||||||||||||||
3.12 | % | $ | 100,000 | |||||||||||||||||||||||||||||||||||||
1 | Callable quarterly at par until maturity in 2017. | |||||||||||||||||||||||||||||||||||||||
Schedule of notional amounts and fair value of derivatives | The notional amount and fair value of ASB’s derivative financial instruments were as follows: | |||||||||||||||||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Notional amount | Fair value | Notional amount | Fair value | ||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 29,330 | $ | 390 | $ | 25,070 | $ | 464 | ||||||||||||||||||||||||||||||||
Forward commitments | 32,833 | (106 | ) | 26,018 | 139 | |||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments, fair values, and balance sheet location | ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows: | |||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated | ||||||||||||||||||||||||||||||||||||||||
as Hedging Instruments 1 | ||||||||||||||||||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Asset derivatives | Liability derivatives | Asset derivatives | Liability derivatives | ||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 393 | $ | 3 | $ | 488 | $ | 24 | ||||||||||||||||||||||||||||||||
Forward commitments | 5 | 111 | 141 | 2 | ||||||||||||||||||||||||||||||||||||
$ | 398 | $ | 114 | $ | 629 | $ | 26 | |||||||||||||||||||||||||||||||||
1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets. | ||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments and amount and location of net gains or losses | The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income: | |||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated | Location of net gains | |||||||||||||||||||||||||||||||||||||||
as Hedging Instruments | (losses) recognized in | Years ended December 31 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | the Statements of Income | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Mortgage banking income | $ | (74 | ) | $ | 464 | $ | — | ||||||||||||||||||||||||||||||||
Forward commitments | Mortgage banking income | (245 | ) | 139 | — | |||||||||||||||||||||||||||||||||||
$ | (319 | ) | $ | 603 | $ | — | ||||||||||||||||||||||||||||||||||
Schedule of off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: | |||||||||||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
Unfunded commitments to extend credit: | ||||||||||||||||||||||||||||||||||||||||
Home equity line of credit | $ | 1,089,633 | $ | 1,011,334 | ||||||||||||||||||||||||||||||||||||
Commercial and commercial real estate | 526,133 | 527,987 | ||||||||||||||||||||||||||||||||||||||
Consumer | 56,312 | 58,080 | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 20,524 | 14,241 | ||||||||||||||||||||||||||||||||||||||
Commercial and financial standby letters of credit | 20,082 | 15,747 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,712,684 | $ | 1,627,389 | ||||||||||||||||||||||||||||||||||||
Unconsolidated_variable_intere1
Unconsolidated variable interest entities Tables (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |||||||||||||
Schedule of purchases from independent power producers | Purchases from all IPPs were as follows: | ||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | ||||||||||
(in millions) | |||||||||||||
AES Hawaii | $ | 145 | $ | 134 | $ | 146 | |||||||
Kalaeloa | 279 | 301 | 310 | ||||||||||
HEP | 51 | 51 | 65 | ||||||||||
HPOWER | 66 | 61 | 65 | ||||||||||
Other IPPs | 181 | 164 | 138 | ||||||||||
Total IPPs | $ | 722 | $ | 711 | $ | 724 | |||||||
Longterm_debt_Tables
Long-term debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Schedule of long-term debt | ||||||||
December 31 | 2014 | 2013 | ||||||
(dollars in thousands) | ||||||||
Long-term debt of Utilities 1 | $ | 1,206,546 | $ | 1,217,945 | ||||
HEI term loan LIBOR + .90%, due 2016 | 125,000 | — | ||||||
HEI medium-term note 6.51%, paid 2014 | — | 100,000 | ||||||
HEI senior note 4.41%, due 2016 | 75,000 | 75,000 | ||||||
HEI senior note 5.67%, due 2021 | 50,000 | 50,000 | ||||||
HEI senior note 3.99%, due 2023 | 50,000 | 50,000 | ||||||
$ | 1,506,546 | $ | 1,492,945 | |||||
1 | See components of “Total long-term debt” and unamortized discount in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. |
Shareholders_equity_Tables
Shareholders' equity (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Schedule of accumulated other comprehensive income | Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows: | |||||||||||||||||||
HEI Consolidated | Hawaiian Electric Consolidated | |||||||||||||||||||
(in thousands) | Net unrealized gains (losses) on securities | Unrealized losses on derivatives | Retirement benefit plans | AOCI | AOCI -retirement benefit plans | |||||||||||||||
Balance, December 31, 2011 | $ | 9,886 | $ | (996 | ) | $ | (28,027 | ) | $ | (19,137 | ) | $ | (32 | ) | ||||||
Current period other comprehensive income (loss) | 875 | 236 | (8,397 | ) | (7,286 | ) | (938 | ) | ||||||||||||
Balance, December 31, 2012 | 10,761 | (760 | ) | (36,424 | ) | (26,423 | ) | (970 | ) | |||||||||||
Current period other comprehensive income (loss) | (14,424 | ) | 235 | 23,862 | 9,673 | 1,578 | ||||||||||||||
Balance, December 31, 2013 | (3,663 | ) | (525 | ) | (12,562 | ) | (16,750 | ) | 608 | |||||||||||
Current period other comprehensive income (loss) | 4,125 | 236 | (14,989 | ) | (10,628 | ) | (563 | ) | ||||||||||||
Balance, December 31, 2014 | $ | 462 | $ | (289 | ) | $ | (27,551 | ) | $ | (27,378 | ) | $ | 45 | |||||||
Reclassification Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI were as follows: | |||||||||||||||||||
Amount reclassified from AOCI | ||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | Affected line item in the Statement of Income | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||
Net realized gains on securities | $ | (1,715 | ) | $ | (738 | ) | $ | (81 | ) | Revenues-bank (net gains on sales of securities) | ||||||||||
Derivatives qualified as cash flow hedges | ||||||||||||||||||||
Interest rate contracts (settled in 2011) | 236 | 235 | 236 | 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 | 11,344 | 23,280 | 15,291 | See Note 10 for additional details | ||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 207,833 | (222,595 | ) | 75,471 | See Note 10 for additional details | |||||||||||||||
Total reclassifications | $ | 217,698 | $ | (199,818 | ) | $ | 90,917 | |||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||
Retirement benefit plan items | ||||||||||||||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 10,212 | $ | 20,694 | $ | 13,673 | See Note 10 for additional details | |||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 207,833 | (222,595 | ) | 75,471 | See Note 10 for additional details | |||||||||||||||
Total reclassifications | $ | 218,045 | $ | (201,901 | ) | $ | 89,144 | |||||||||||||
Retirement_benefits_Tables
Retirement benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of changes in the obligations and assets of the Company's retirement benefit plans and the changes in AOCI (gross) and the funded status | The changes in the obligations and assets of the Company’s and Utilities' retirement benefit plans and the changes in AOCI (gross) for 2014 and 2013 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities' consolidated balance sheet as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | Pension | Other | Pension | Other | ||||||||||||||||||||
benefits | benefits | benefits | benefits | |||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||
Benefit obligation, January 1 | $ | 1,446,291 | $ | 176,099 | $ | 1,590,304 | $ | 194,135 | ||||||||||||||||
Service cost | 49,264 | 3,490 | 56,405 | 4,306 | ||||||||||||||||||||
Interest cost | 72,202 | 8,550 | 64,788 | 7,569 | ||||||||||||||||||||
Actuarial losses (gains) | 342,446 | 39,098 | (203,302 | ) | (21,743 | ) | ||||||||||||||||||
Benefits paid and expenses | (62,975 | ) | (8,028 | ) | (61,904 | ) | (8,168 | ) | ||||||||||||||||
Benefit obligation, December 31 | 1,847,228 | 219,209 | 1,446,291 | 176,099 | ||||||||||||||||||||
Fair value of plan assets, January 1 | 1,186,669 | 179,330 | 971,314 | 156,731 | ||||||||||||||||||||
Actual return on plan assets | 81,123 | 9,149 | 194,130 | 29,164 | ||||||||||||||||||||
Employer contributions | 60,103 | (257 | ) | 82,083 | 954 | |||||||||||||||||||
Benefits paid and expenses | (61,835 | ) | (7,890 | ) | (60,858 | ) | (7,519 | ) | ||||||||||||||||
Fair value of plan assets, December 31 | 1,266,060 | 180,332 | 1,186,669 | 179,330 | ||||||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (581,168 | ) | $ | (38,877 | ) | $ | (259,622 | ) | $ | 3,231 | |||||||||||||
Other assets | $ | 12,800 | $ | — | $ | 24,948 | $ | 7,200 | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | (593,968 | ) | (38,877 | ) | (284,570 | ) | (3,969 | ) | ||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (581,168 | ) | $ | (38,877 | ) | $ | (259,622 | ) | $ | 3,231 | |||||||||||||
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) | $ | 317,544 | $ | (21,722 | ) | $ | 680,781 | $ | 18,846 | |||||||||||||||
Recognized during year – net recognized transition obligation | — | — | — | — | ||||||||||||||||||||
Recognized during year – prior service credit (cost) | (88 | ) | 1,793 | 97 | 1,793 | |||||||||||||||||||
Recognized during year – net actuarial losses | (20,304 | ) | 11 | (38,438 | ) | (1,602 | ) | |||||||||||||||||
Occurring during year – net actuarial losses (gains) | 342,679 | 40,851 | (324,896 | ) | (40,759 | ) | ||||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 639,831 | 20,933 | 317,544 | (21,722 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | $ | 47,540 | $ | (2,042 | ) | $ | 23,278 | $ | (2,516 | ) | ||||||||||||||
Net actuarial loss (gain) | $ | 640,015 | $ | 35,022 | $ | 317,639 | $ | (5,840 | ) | |||||||||||||||
Prior service gain | (184 | ) | (14,089 | ) | (95 | ) | (15,882 | ) | ||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 639,831 | 20,933 | 317,544 | (21,722 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | 47,540 | (2,042 | ) | 23,278 | (2,516 | ) | ||||||||||||||||||
Income taxes (benefits) | (18,742 | ) | 795 | (9,180 | ) | 980 | ||||||||||||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 28,798 | $ | (1,247 | ) | $ | 14,098 | $ | (1,536 | ) | ||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | Pension | Other | Pension | Other | ||||||||||||||||||||
benefits | benefits | benefits | benefits | |||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||
Benefit obligation, January 1 | $ | 1,320,810 | $ | 169,579 | $ | 1,449,445 | $ | 187,110 | ||||||||||||||||
Service cost | 47,597 | 3,392 | 54,482 | 4,163 | ||||||||||||||||||||
Interest cost | 65,979 | 8,234 | 59,119 | 7,288 | ||||||||||||||||||||
Actuarial losses (gains) | 314,210 | 38,488 | (185,185 | ) | (20,900 | ) | ||||||||||||||||||
Benefits paid and expenses | (57,819 | ) | (7,933 | ) | (57,051 | ) | (8,082 | ) | ||||||||||||||||
Benefit obligation, December 31 | 1,690,777 | 211,760 | 1,320,810 | 169,579 | ||||||||||||||||||||
Fair value of plan assets, January 1 | 1,058,260 | 176,291 | 861,778 | 154,186 | ||||||||||||||||||||
Actual return on plan assets | 69,242 | 9,036 | 172,822 | 28,700 | ||||||||||||||||||||
Employer contributions | 58,948 | (274 | ) | 80,325 | 839 | |||||||||||||||||||
Benefits paid and expenses | (57,445 | ) | (7,797 | ) | (56,665 | ) | (7,434 | ) | ||||||||||||||||
Fair value of plan assets, December 31 | 1,129,005 | 177,256 | 1,058,260 | 176,291 | ||||||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (561,772 | ) | $ | (34,504 | ) | $ | (262,550 | ) | $ | 6,712 | |||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | 7,200 | ||||||||||||||||
Other liabilities (short-term) | (421 | ) | (460 | ) | (388 | ) | (488 | ) | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | (561,351 | ) | (34,044 | ) | (262,162 | ) | — | |||||||||||||||||
Accrued benefit asset (liability), December 31 | $ | (561,772 | ) | $ | (34,504 | ) | $ | (262,550 | ) | $ | 6,712 | |||||||||||||
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) | $ | 295,973 | $ | (21,907 | ) | $ | 623,588 | $ | 17,432 | |||||||||||||||
Recognized during year – net recognized transition asset | — | — | — | — | ||||||||||||||||||||
Recognized during year – prior service credit (cost) | (62 | ) | 1,804 | 464 | 1,803 | |||||||||||||||||||
Recognized during year – net actuarial losses | (18,459 | ) | — | (34,597 | ) | (1,544 | ) | |||||||||||||||||
Occurring during year – net actuarial losses (gains) | 317,651 | 40,193 | (293,482 | ) | (39,598 | ) | ||||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 595,103 | 20,090 | 295,973 | (21,907 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | $ | 2,812 | $ | (2,885 | ) | $ | 1,707 | $ | (2,701 | ) | ||||||||||||||
Net actuarial loss (gain) | $ | 595,017 | $ | 34,192 | $ | 295,825 | $ | (6,001 | ) | |||||||||||||||
Prior service cost (gain) | 86 | (14,102 | ) | 148 | (15,906 | ) | ||||||||||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 595,103 | 20,090 | 295,973 | (21,907 | ) | |||||||||||||||||||
Cumulative impact of PUC D&Os | (592,291 | ) | (22,975 | ) | (294,266 | ) | 19,206 | |||||||||||||||||
AOCI debit/(credit), December 31 | 2,812 | (2,885 | ) | 1,707 | (2,701 | ) | ||||||||||||||||||
Income taxes (benefits) | (1,094 | ) | 1,122 | (664 | ) | 1,050 | ||||||||||||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 1,718 | $ | (1,763 | ) | $ | 1,043 | $ | (1,651 | ) | ||||||||||||||
Schedule of weighted-average asset allocation of defined benefit retirement plans | The asset allocation of defined benefit retirement plans to equity and fixed income securities managers and related investment policy targets and ranges were as follows: | |||||||||||||||||||||||
Pension benefits1 | Other benefits2 | |||||||||||||||||||||||
Investment policy | Investment policy | |||||||||||||||||||||||
December 31 | 2014 | 2013 | Target | Range | 2014 | 2013 | Target | Range | ||||||||||||||||
Assets held by category | ||||||||||||||||||||||||
Equity securities managers | 73 | % | 73 | % | 70 | % | 65-75 | 72 | % | 74 | % | 70 | % | 65-75 | ||||||||||
Fixed income securities managers | 27 | 27 | 30 | 25-35 | 28 | 26 | 30 | 25-35 | ||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Schedule of weighted-average assumptions used in accounting for plans | The following weighted-average assumptions were used in the accounting for the plans: | |||||||||||||||||||||||
Pension benefits | Other benefits | |||||||||||||||||||||||
December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Benefit obligation | ||||||||||||||||||||||||
Discount rate | 4.22 | % | 5.09 | % | 4.13 | % | 4.17 | % | 5.03 | % | 4.07 | % | ||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | ||||||||||||||||||
Net periodic benefit cost (years ended) | ||||||||||||||||||||||||
Discount rate | 5.09 | 4.13 | 5.19 | 5.03 | 4.07 | 4.9 | ||||||||||||||||||
Expected return on plan assets | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | ||||||||||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | ||||||||||||||||||
NA Not applicable | ||||||||||||||||||||||||
Schedule of components of net periodic benefit cost for consolidated HEI | The components of NPBC were as follows: | |||||||||||||||||||||||
Pension benefits | Other benefits | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||
Service cost | $ | 49,264 | $ | 56,405 | $ | 43,221 | $ | 3,490 | $ | 4,306 | $ | 4,211 | ||||||||||||
Interest cost | 72,202 | 64,788 | 67,480 | 8,550 | 7,569 | 9,009 | ||||||||||||||||||
Expected return on plan assets | (81,355 | ) | (72,537 | ) | (71,183 | ) | (10,902 | ) | (10,147 | ) | (10,336 | ) | ||||||||||||
Amortization of net transition obligation | — | — | 1 | — | — | — | ||||||||||||||||||
Amortization of net prior service (gain) cost | 88 | (97 | ) | (325 | ) | (1,793 | ) | (1,793 | ) | (1,793 | ) | |||||||||||||
Amortization of net actuarial loss (gains) | 20,304 | 38,438 | 25,675 | (11 | ) | 1,602 | 1,498 | |||||||||||||||||
Net periodic benefit cost | 60,503 | 86,997 | 64,869 | (666 | ) | 1,537 | 2,589 | |||||||||||||||||
Impact of PUC D&Os | (13,324 | ) | (38,104 | ) | (15,754 | ) | 1,976 | (1,458 | ) | (2,227 | ) | |||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 47,179 | 48,893 | 49,115 | 1,310 | 79 | 362 | ||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||
Service cost | $ | 47,597 | $ | 54,482 | $ | 41,603 | $ | 3,392 | $ | 4,163 | $ | 4,014 | ||||||||||||
Interest cost | 65,979 | 59,119 | 61,453 | 8,234 | 7,288 | 8,703 | ||||||||||||||||||
Expected return on plan assets | (72,661 | ) | (64,551 | ) | (64,004 | ) | (10,739 | ) | (10,002 | ) | (10,195 | ) | ||||||||||||
Amortization of net transition obligation | — | — | — | — | — | (9 | ) | |||||||||||||||||
Amortization of net prior service (gain) cost | 62 | (464 | ) | (689 | ) | (1,804 | ) | (1,803 | ) | (1,803 | ) | |||||||||||||
Amortization of net actuarial loss | 18,459 | 34,597 | 23,428 | — | 1,544 | 1,455 | ||||||||||||||||||
Net periodic benefit cost | 59,436 | 83,183 | 61,791 | (917 | ) | 1,190 | 2,165 | |||||||||||||||||
Impact of PUC D&Os | (13,324 | ) | (38,104 | ) | (15,754 | ) | 1,976 | (1,458 | ) | (2,227 | ) | |||||||||||||
Net periodic benefit cost (adjusted for impact of PUC D&Os) | $ | 46,112 | $ | 45,079 | $ | 46,037 | $ | 1,059 | $ | (268 | ) | $ | (62 | ) | ||||||||||
Schedule of amounts in accumulated other comprehensive Income (loss) to be recognized over next fiscal year | The estimated prior service credit, net actuarial loss and net transition obligation for defined benefit plans that will be amortized from AOCI or regulatory assets into net periodic benefit cost during 2015 is as follows: | |||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
(in millions) | Pension benefits | Other benefits | Pension benefits | Other benefits | ||||||||||||||||||||
Estimated prior service cost (credit) | $ | — | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | ||||||||||||||
Net actuarial loss | 35.8 | 1.7 | 32.4 | 1.7 | ||||||||||||||||||||
Net transition obligation | — | — | — | — | ||||||||||||||||||||
Sharebased_compensation_Tables
Share-based compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||
Share-based compensation expense1 | $ | 9.3 | $ | 7.8 | $ | 6.7 | ||||||||||||||||||
Income tax benefit | 3.4 | 2.8 | 2.4 | |||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||
Share-based compensation expense1 | 3.1 | 2.3 | 1.8 | |||||||||||||||||||||
Income tax benefit | 1.2 | 0.9 | 0.7 | |||||||||||||||||||||
1 | $0.16 million, $0.11 million and $0.08 million of this share-based compensation expense was capitalized in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||
Schedule of common stock granted to nonemployee directors | HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: | |||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Shares granted | 33,170 | 33,184 | 29,448 | |||||||||||||||||||||
Fair value | $ | 0.8 | $ | 0.8 | $ | 0.8 | ||||||||||||||||||
Income tax benefit | 0.3 | 0.3 | 0.3 | |||||||||||||||||||||
Summary of information about nonqualified stock options | Information about HEI’s NQSOs was as follows: | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Shares | -1 | Shares | -1 | |||||||||||||||||||||
Outstanding, January 1 | 14,000 | $ | 20.49 | 55,500 | $ | 20.92 | ||||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||||||
Exercised | (14,000 | ) | 20.49 | (41,500 | ) | 21.06 | ||||||||||||||||||
Forfeited | — | — | — | — | ||||||||||||||||||||
Expired | — | — | — | — | ||||||||||||||||||||
Outstanding, December 31 | — | $ | — | 14,000 | $ | 20.49 | ||||||||||||||||||
Exercisable, December 31 | — | $ | — | 14,000 | $ | 20.49 | ||||||||||||||||||
-1 | Weighted-average exercise price | |||||||||||||||||||||||
Schedule of nonqualified stock options activity and statistics | NQSO activity and statistics were as follows: | |||||||||||||||||||||||
(in thousands) | 2013 | 2012 | ||||||||||||||||||||||
Cash received from exercise | $ | 287 | $ | 874 | ||||||||||||||||||||
Intrinsic value of shares exercised 1 | 128 | 354 | ||||||||||||||||||||||
Tax benefit realized for the deduction of exercises | 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. | |||||||||||||||||||||||
Summary of information about stock appreciation rights | Information about HEI’s SARs is summarized as follows: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 164,000 | $ | 26.12 | 164,000 | $ | 26.12 | 282,000 | $ | 26.14 | |||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Exercised | (22,000 | ) | 26.18 | — | — | (114,000 | ) | 26.17 | ||||||||||||||||
Forfeited | (62,000 | ) | 26.02 | — | — | — | — | |||||||||||||||||
Expired | — | — | — | — | (4,000 | ) | 26.18 | |||||||||||||||||
Outstanding, December 31 | 80,000 | $ | 26.18 | 164,000 | $ | 26.12 | 164,000 | $ | 26.12 | |||||||||||||||
Exercisable, December 31 | 80,000 | $ | 26.18 | 164,000 | $ | 26.12 | 164,000 | $ | 26.12 | |||||||||||||||
-1 | Weighted-average exercise price | |||||||||||||||||||||||
31-Dec-14 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||
Year of | Number of shares | Weighted-average | Weighted-average | |||||||||||||||||||||
Grant | underlying SARs | remaining contractual life | exercise price | |||||||||||||||||||||
2005 | 80,000 | 0.3 | $ | 26.18 | ||||||||||||||||||||
Schedule of stock appreciation rights by grant year | ||||||||||||||||||||||||
-1 | Weighted-average exercise price | |||||||||||||||||||||||
31-Dec-14 | Outstanding & Exercisable (Vested) | |||||||||||||||||||||||
Year of | Number of shares | Weighted-average | Weighted-average | |||||||||||||||||||||
Grant | underlying SARs | remaining contractual life | exercise price | |||||||||||||||||||||
2005 | 80,000 | 0.3 | $ | 26.18 | ||||||||||||||||||||
Schedule of stock appreciation rights activity and statistics | SARs activity and statistics were as follows: | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Intrinsic value of shares exercised 1 | $ | 29 | $ | — | $ | 197 | ||||||||||||||||||
Tax benefit realized for the deduction of exercises | 11 | — | 77 | |||||||||||||||||||||
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 right. | |||||||||||||||||||||||
Schedule of restricted share and stock awards | Information about HEI’s grants of restricted shares and restricted stock awards was as follows: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 4,503 | $ | 22.21 | 9,005 | $ | 22.21 | 46,807 | $ | 24.45 | |||||||||||||||
Granted | — | — | — | — | — | — | ||||||||||||||||||
Vested | (4,503 | ) | 22.21 | (4,502 | ) | 22.21 | (37,802 | ) | 24.99 | |||||||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||||||||
Outstanding, December 31 | — | $ | — | 4,503 | $ | 22.21 | 9,005 | $ | 22.21 | |||||||||||||||
-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: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 288,151 | $ | 25.17 | 315,094 | $ | 22.82 | 247,286 | $ | 21.8 | |||||||||||||||
Granted | 117,786 | 25.17 | 111,231 | 26.88 | 98,446 | 25.99 | ||||||||||||||||||
Vested | (144,702 | ) | 24.09 | (118,885 | ) | 20.48 | (25,728 | ) | 24.68 | |||||||||||||||
Forfeited | — | — | (19,289 | ) | 25.62 | (4,910 | ) | 24.92 | ||||||||||||||||
Outstanding, December 31 | 261,235 | $ | 25.77 | 288,151 | $ | 25.17 | 315,094 | $ | 22.82 | |||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 3 | $ | 3 | $ | 2.6 | ||||||||||||||||||
-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 | Information about HEI’s LTIP grants linked to TRS was as follows: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 232,127 | $ | 32.88 | 239,256 | $ | 29.12 | 197,385 | $ | 25.94 | |||||||||||||||
Granted | 97,524 | 22.95 | 91,038 | 32.69 | 81,223 | 30.71 | ||||||||||||||||||
Vested (settled or lapsed) | (70,189 | ) | 35.46 | (87,753 | ) | 22.45 | (35,397 | ) | 14.85 | |||||||||||||||
Forfeited | (1,506 | ) | 28.32 | (10,414 | ) | 32.72 | (3,955 | ) | 30.82 | |||||||||||||||
Outstanding, December 31 | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | 239,256 | $ | 29.12 | |||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 2.2 | $ | 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: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | 0.66 | % | 0.38 | % | 0.33 | % | ||||||||||||||||||
Expected life in years | 3 | 3 | 3 | |||||||||||||||||||||
Expected volatility | 17.8 | % | 19.4 | % | 25.3 | % | ||||||||||||||||||
Range of expected volatility for Peer Group | 12.4% to 23.3% | 12.4% to 25.3% | 15.5% to 34.5% | |||||||||||||||||||||
Grant date fair value (per share) | $ | 22.95 | $ | 32.69 | $ | 30.71 | ||||||||||||||||||
Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions | Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Shares | -1 | Shares | -1 | Shares | -1 | |||||||||||||||||||
Outstanding, January 1 | 296,843 | $ | 26.14 | 247,175 | $ | 25.04 | 182,498 | $ | 22.63 | |||||||||||||||
Granted | 129,603 | 25.18 | 120,399 | 26.89 | 125,157 | 26.05 | ||||||||||||||||||
Vested and settled | (65,089 | ) | 24.95 | (18,280 | ) | 18.95 | — | — | ||||||||||||||||
Increase above target (cancelled) | 4,949 | 26.7 | (41,599 | ) | 24.97 | (50,786 | ) | 18.95 | ||||||||||||||||
Forfeited | (1,575 | ) | 26.07 | (10,852 | ) | 26.2 | (9,694 | ) | 24.44 | |||||||||||||||
Outstanding, December 31 | 364,731 | $ | 26.01 | 296,843 | $ | 26.14 | 247,175 | $ | 25.04 | |||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) | $ | 3.3 | $ | 3.2 | $ | 3.3 | ||||||||||||||||||
-1 | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||
Components of income taxes attributable to net income for common stock | The components of income taxes attributable to net income for common stock were as follows: | |||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Federal | ||||||||||||||||||||||||
Current | $ | 33,762 | $ | (1,520 | ) | $ | (15,411 | ) | $ | 1,108 | $ | 1,313 | $ | (26,965 | ) | |||||||||
Deferred | 46,427 | 73,680 | 82,138 | 68,775 | 58,024 | 79,437 | ||||||||||||||||||
Deferred tax credits, net | — | 224 | 187 | — | 224 | 186 | ||||||||||||||||||
80,189 | 72,384 | 66,914 | 69,883 | 59,561 | 52,658 | |||||||||||||||||||
State | ||||||||||||||||||||||||
Current | (7,339 | ) | (1,555 | ) | (4,654 | ) | (9,436 | ) | (3,720 | ) | (4,940 | ) | ||||||||||||
Deferred | 12,756 | 6,719 | 8,710 | 14,172 | 6,483 | 7,441 | ||||||||||||||||||
Deferred tax credits, net | 6,106 | 6,793 | 5,889 | 6,106 | 6,793 | 5,889 | ||||||||||||||||||
11,523 | 11,957 | 9,945 | 10,842 | 9,556 | 8,390 | |||||||||||||||||||
Total | $ | 91,712 | $ | 84,341 | $ | 76,859 | $ | 80,725 | $ | 69,117 | $ | 61,048 | ||||||||||||
Schedule of reconciliation of amount of income taxes computed at federal statutory rate | A reconciliation of the amount of income taxes computed at the federal statutory rate of 35% to the amount provided in the consolidated statements of income was as follows: | |||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amount at the federal statutory income tax rate | $ | 91,672 | $ | 86,711 | $ | 76,092 | $ | 77,126 | $ | 67,914 | $ | 56,812 | ||||||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 7,490 | 7,772 | 6,464 | 7,047 | 6,211 | 5,453 | ||||||||||||||||||
Other, net | (7,450 | ) | (10,142 | ) | (5,697 | ) | (3,448 | ) | (5,008 | ) | (1,217 | ) | ||||||||||||
Total | $ | 91,712 | $ | 84,341 | $ | 76,859 | $ | 80,725 | $ | 69,117 | $ | 61,048 | ||||||||||||
Effective income tax rate | 35 | % | 34 | % | 35.4 | % | 36.6 | % | 35.6 | % | 37.6 | % | ||||||||||||
Schedule of deferred tax assets and liabilities | The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: | |||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
December 31 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||||
Net operating loss | $ | — | $ | — | 51,936 | 19,848 | ||||||||||||||||||
Other | 58,352 | 57,239 | 17,663 | 17,295 | ||||||||||||||||||||
Total deferred tax assets | 58,352 | 57,239 | 69,599 | 37,143 | ||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||||
Property, plant and equipment related | 448,723 | 378,280 | 446,259 | 375,771 | ||||||||||||||||||||
Repairs deduction | 86,408 | 75,127 | 86,408 | 75,127 | ||||||||||||||||||||
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,795 | 33,251 | 33,795 | 33,251 | ||||||||||||||||||||
Deferred RAM and RBA revenues | 32,889 | — | 32,889 | — | ||||||||||||||||||||
Retirement benefits | 25,336 | 29,280 | 28,758 | 23,851 | ||||||||||||||||||||
Other | 62,935 | 70,561 | 14,929 | 15,602 | ||||||||||||||||||||
Total deferred tax liabilities | 690,086 | 586,499 | 643,038 | 523,602 | ||||||||||||||||||||
Net deferred income tax liability | $ | 631,734 | $ | 529,260 | $ | 573,439 | $ | 486,459 | ||||||||||||||||
Prepayments and other (Current assets-debit) | $ | — | $ | — | $ | 32,915 | $ | 20,702 | ||||||||||||||||
Other (Current liabilities-credit) | — | — | 3,482 | — | ||||||||||||||||||||
Deferred income taxes (credit) | 631,734 | 529,260 | 602,872 | 507,161 | ||||||||||||||||||||
Net deferred income tax liability | $ | 631,734 | $ | 529,260 | $ | 573,439 | $ | 486,459 | ||||||||||||||||
Schedule of changes in total unrecognized tax benefits | The changes in total unrecognized tax benefits were as follows: | |||||||||||||||||||||||
HEI consolidated | Hawaiian Electric consolidated | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Unrecognized tax benefits, January 1 | $ | 0.9 | $ | 0.8 | $ | 5.7 | $ | 0.5 | $ | 0.4 | 3.7 | |||||||||||||
Additions based on tax positions taken during the year | — | — | 0.3 | — | — | 0.3 | ||||||||||||||||||
Reductions based on tax positions taken during the year | — | — | — | — | — | — | ||||||||||||||||||
Additions for tax positions of prior years | 0.1 | 0.5 | — | 0.1 | 0.5 | — | ||||||||||||||||||
Reductions for tax positions of prior years | — | (0.4 | ) | (4.1 | ) | — | (0.4 | ) | (3.6 | ) | ||||||||||||||
Settlements | (1.0 | ) | — | — | (0.6 | ) | — | — | ||||||||||||||||
Lapses of statute of limitations | — | — | (1.1 | ) | — | — | — | |||||||||||||||||
Unrecognized tax benefits, December 31 | $ | — | $ | 0.9 | $ | 0.8 | $ | — | $ | 0.5 | $ | 0.4 | ||||||||||||
Cash_flows_Tables
Cash flows (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Schedule of supplemental disclosures of cash and noncash activity | ||||||||||||
Years ended December 31 | 2014 | 2013 | 2012 | |||||||||
(in millions) | ||||||||||||
Supplemental disclosures of cash flow information | ||||||||||||
HEI consolidated | ||||||||||||
Interest paid to non-affiliates | $ | 84 | $ | 85 | $ | 84 | ||||||
Income taxes paid | 47 | 18 | 17 | |||||||||
Income taxes refunded | 24 | 4 | 31 | |||||||||
Hawaiian Electric consolidated | ||||||||||||
Interest paid to non-affiliates | 61 | 59 | 57 | |||||||||
Income taxes paid | 6 | 6 | 6 | |||||||||
Income taxes refunded | 8 | 32 | 9 | |||||||||
Supplemental disclosures of noncash activities | ||||||||||||
HEI consolidated | ||||||||||||
Property, plant and equipment-unpaid invoices and other | 68 | 24 | 37 | |||||||||
Common stock dividends reinvested in HEI common stock 1 | — | 24 | 24 | |||||||||
Increases in common stock related to director and officer compensatory plans | 6 | 5 | 6 | |||||||||
Loans transferred from held for investment to held for sale | — | 25 | — | |||||||||
Real estate acquired in settlement of loans | 3 | 4 | 11 | |||||||||
Obligations to fund low income housing investments, net | 14 | 1 | — | |||||||||
Hawaiian Electric consolidated | ||||||||||||
Electric utility property, plant and equipment | ||||||||||||
AFUDC-equity | 7 | 6 | 7 | |||||||||
Estimated fair value of noncash contributions in aid of construction | 3 | 5 | 10 | |||||||||
Unpaid invoices and other | 65 | 24 | 37 | |||||||||
1 | The amounts shown represents common stock dividends reinvested in HEI common stock under the HEI DRIP in noncash transactions. |
Fair_value_measurements_Tables
Fair value measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of estimated fair values of certain of the Company's financial instruments | The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. For stock in Federal Home Loan Bank of Seattle, the carrying amount is a reasonable estimate of fair value. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings and money market deposits, the carrying amount is a reasonable estimate of fair value as these liabilities have no stated maturity. | |||||||||||||||||||||||||||||||
Estimated fair value | ||||||||||||||||||||||||||||||||
(in thousands) | Carrying or | Quoted prices in active markets for identical assets | Significant other Observable inputs | Significant Unobservable inputs | Total | |||||||||||||||||||||||||||
notional | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
amount | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | ||||||||||||||||||||||
Available-for-sale investment securities | 550,394 | — | 550,394 | — | 550,394 | |||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle | 69,302 | — | 69,302 | — | 69,302 | |||||||||||||||||||||||||||
Loans receivable, net | 4,397,457 | — | — | 4,578,822 | 4,578,822 | |||||||||||||||||||||||||||
Derivative assets | 30,120 | — | 398 | — | 398 | |||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Deposit liabilities | 4,623,415 | — | 4,623,773 | — | 4,623,773 | |||||||||||||||||||||||||||
Short-term borrowings—other than bank | 118,972 | — | 118,972 | — | 118,972 | |||||||||||||||||||||||||||
Other bank borrowings | 290,656 | — | 298,837 | — | 298,837 | |||||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,506,546 | — | 1,622,736 | — | 1,622,736 | |||||||||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,206,546 | — | 1,313,893 | — | 1,313,893 | |||||||||||||||||||||||||||
Derivative liabilities | 32,043 | 71 | 43 | — | 114 | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | ||||||||||||||||||||||
Available-for-sale investment securities | 529,007 | — | 529,007 | — | 529,007 | |||||||||||||||||||||||||||
Stock in Federal Home Loan Bank of Seattle | 92,546 | — | 92,546 | — | 92,546 | |||||||||||||||||||||||||||
Loans receivable, net | 4,115,415 | — | — | 4,211,290 | 4,211,290 | |||||||||||||||||||||||||||
Derivative assets | 46,356 | 98 | 531 | — | 629 | |||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Deposit liabilities | 4,372,477 | — | 4,374,377 | — | 4,374,377 | |||||||||||||||||||||||||||
Short-term borrowings—other than bank | 105,482 | — | 105,482 | — | 105,482 | |||||||||||||||||||||||||||
Other bank borrowings | 244,514 | — | 256,029 | — | 256,029 | |||||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,492,945 | — | 1,508,425 | — | 1,508,425 | |||||||||||||||||||||||||||
The Utilities' long-term debt, net (included in amount above) | 1,217,945 | — | 1,228,966 | — | 1,228,966 | |||||||||||||||||||||||||||
Derivative liabilities | 4,732 | — | 26 | — | 26 | |||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: | |||||||||||||||||||||||||||||||
31-Dec | 2014 | 2013 | ||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | |||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | ||||||||||||||||||||
Available-for-sale investment securities (bank segment) | ||||||||||||||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 430,834 | $ | — | $ | — | $ | 369,444 | $ | — | ||||||||||||||||||||
U.S. Treasury and federal agency obligations | — | 119,560 | — | — | 80,973 | — | ||||||||||||||||||||||||||
Municipal bonds | — | — | — | — | 78,590 | — | ||||||||||||||||||||||||||
$ | — | $ | 550,394 | $ | — | $ | — | $ | 529,007 | $ | — | |||||||||||||||||||||
Derivative assets 1 | ||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 393 | $ | — | $ | — | $ | 488 | $ | — | ||||||||||||||||||||
Forward commitments | — | 5 | — | 98 | 43 | — | ||||||||||||||||||||||||||
$ | — | $ | 398 | $ | — | $ | 98 | $ | 531 | $ | — | |||||||||||||||||||||
Derivative liabilities 1 | ||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 3 | $ | — | $ | — | $ | 24 | $ | — | ||||||||||||||||||||
Forward commitments | 71 | 40 | — | — | 2 | — | ||||||||||||||||||||||||||
$ | 71 | $ | 43 | $ | — | $ | — | $ | 26 | $ | — | |||||||||||||||||||||
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 using | ||||||||||||||||||||||||||||||||
(in millions) | Balance | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Loans | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||||
Tax credit investments | 9 | — | — | 9 | ||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | — | — | — | — | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Loans | 4 | — | — | 4 | ||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | — | — | — | — | ||||||||||||||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurement | Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights were as follows: | |||||||||||||||||||||||||||||||
December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 1,391,030 | $ | 1,357,003 | ||||||||||||||||||||||||||||
Weighted average note rate | 4.07 | % | 4.07 | % | ||||||||||||||||||||||||||||
Weighted average discount rate | 9.6 | % | 9.8 | % | ||||||||||||||||||||||||||||
Weighted average prepayment speed | 9.5 | % | 8.6 | % | ||||||||||||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||||||
Significant unobservable | ||||||||||||||||||||||||||||||||
input value 1 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted | |||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
Residential loans | $ | 2,297 | Fair value of property or collateral | Appraised value less 7% selling cost | 39-99% | 83% | ||||||||||||||||||||||||||
Home equity lines of credit | 3 | Fair value of property or collateral | Appraised value less 7% selling cost | 7% | ||||||||||||||||||||||||||||
Commercial loans | 145 | Fair value of property or collateral | Fair value of business assets | 91% | ||||||||||||||||||||||||||||
Total loans | $ | 2,445 | ||||||||||||||||||||||||||||||
Tax credit investments | $ | 8,975 | Discounted cash flow | Present value of expected future cash flows | 5-93% | 88% | ||||||||||||||||||||||||||
Discount rate | 7% | |||||||||||||||||||||||||||||||
Real estate acquired in settlement of loans | $ | 288 | Fair value of property or collateral | Appraised value less 7% selling cost | 100% | 100% | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Residential loans | $ | 2,361 | Fair value of property or collateral | Appraised value less 7% selling cost | 44-96% | 87% | ||||||||||||||||||||||||||
Home equity lines of credit | 170 | Fair value of property or collateral | Appraised value less 7% selling cost | 45-50% | 50% | |||||||||||||||||||||||||||
Commercial loans | 217 | Fair value of property or collateral | Fair value of business assets | 19% | ||||||||||||||||||||||||||||
Commercial loans | 1,668 | Discounted cash flow | Present value of expected future cash flows | 58% | ||||||||||||||||||||||||||||
Discount rate | 4.50% | |||||||||||||||||||||||||||||||
Total loans | $ | 4,416 | ||||||||||||||||||||||||||||||
1 | Represent percent of outstanding principal balance. | |||||||||||||||||||||||||||||||
Schedule of assets held in various trusts are measured at fair value on a recurring basis | Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows: | |||||||||||||||||||||||||||||||
Pension benefits | Other benefits | |||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | |||||||||||||||||||||||||||||||
(in millions) | December 31 | Level 1 | Level 2 | Level 3 | December 31 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Equity securities | $ | 649 | $ | 649 | $ | — | $ | — | $ | 99 | $ | 99 | $ | — | $ | — | ||||||||||||||||
Equity index funds | 132 | 132 | — | — | 19 | 19 | — | — | ||||||||||||||||||||||||
Fixed income securities | 428 | 121 | 307 | — | 49 | 43 | 6 | — | ||||||||||||||||||||||||
Pooled and mutual funds and other | 82 | 1 | 81 | — | 14 | 3 | 11 | — | ||||||||||||||||||||||||
Total | $ | 1,291 | $ | 903 | $ | 388 | $ | — | $ | 181 | $ | 164 | $ | 17 | $ | — | ||||||||||||||||
Cash, receivables and payables, net | (25 | ) | (1 | ) | ||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,266 | $ | 180 | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
Equity securities | $ | 672 | $ | 672 | $ | — | $ | — | $ | 102 | $ | 102 | $ | — | $ | — | ||||||||||||||||
Equity index funds | 127 | 127 | — | — | 19 | 19 | — | — | ||||||||||||||||||||||||
Fixed income securities | 350 | 122 | 228 | — | 46 | 40 | 6 | — | ||||||||||||||||||||||||
Pooled and mutual funds and other | 84 | — | 83 | 1 | 13 | — | 13 | — | ||||||||||||||||||||||||
Total | 1,233 | $ | 921 | $ | 311 | $ | 1 | 180 | $ | 161 | $ | 19 | $ | — | ||||||||||||||||||
Cash, receivables and payables, net | (46 | ) | (1 | ) | ||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,187 | $ | 179 | ||||||||||||||||||||||||||||
Schedule of changes in Level 3 assets | For 2014 and 2013, the changes in Level 3 assets were as follows: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(in thousands) | Pension | Other | Pension | Other | ||||||||||||||||||||||||||||
benefits | benefits | benefits | benefits | |||||||||||||||||||||||||||||
Balance, January 1 | $ | 580 | $ | 18 | $ | 581 | $ | 18 | ||||||||||||||||||||||||
Realized and unrealized losses | (203 | ) | (6 | ) | (1 | ) | — | |||||||||||||||||||||||||
Purchases and settlements, net | (282 | ) | (8 | ) | — | — | ||||||||||||||||||||||||||
Balance, December 31 | $ | 95 | $ | 4 | $ | 580 | $ | 18 | ||||||||||||||||||||||||
Quarterly_information_unaudite1
Quarterly information (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of selected quarterly information | Selected quarterly information was as follows: | |||||||||||||||||||
Quarters ended | Years ended | |||||||||||||||||||
(in thousands, except per share amounts) | March 31 | June 30 | Sept. 30 | Dec. 31 | December 31 | |||||||||||||||
HEI consolidated | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 783,749 | $ | 798,657 | $ | 867,096 | $ | 790,040 | $ | 3,239,542 | ||||||||||
Operating income | 88,306 | 82,275 | 91,102 | 67,241 | 328,924 | |||||||||||||||
Net income | 46,400 | 41,894 | 48,286 | 33,630 | 170,210 | |||||||||||||||
Net income for common stock | 45,927 | 41,421 | 47,815 | 33,157 | 168,320 | |||||||||||||||
Basic earnings per common share 1 | 0.45 | 0.41 | 0.47 | 0.32 | 1.65 | |||||||||||||||
Diluted earnings per common share 2 | 0.45 | 0.41 | 0.46 | 0.32 | 1.64 | |||||||||||||||
Dividends per common share | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | |||||||||||||||
Market price per common share 3 | ||||||||||||||||||||
High | 26.8 | 25.65 | 26.89 | 35 | 35 | |||||||||||||||
Low | 24.39 | 23.04 | 22.71 | 26.04 | 22.71 | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | $ | 782,232 | $ | 794,567 | $ | 829,168 | $ | 832,503 | $ | 3,238,470 | ||||||||||
Operating income | 68,825 | 80,207 | 88,038 | 78,349 | 315,419 | |||||||||||||||
Net income | 34,152 | 41,061 | 48,707 | 39,486 | 163,406 | |||||||||||||||
Net income for common stock | 33,679 | 40,588 | 48,236 | 39,013 | 161,516 | |||||||||||||||
Basic earnings per common share 1 | 0.34 | 0.41 | 0.49 | 0.39 | 1.63 | |||||||||||||||
Diluted earnings per common share 2 | 0.34 | 0.41 | 0.48 | 0.39 | 1.62 | |||||||||||||||
Dividends per common share | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | |||||||||||||||
Market price per common share 3 | ||||||||||||||||||||
High | 27.92 | 28.3 | 27.24 | 27.15 | 28.3 | |||||||||||||||
Low | 25.5 | 23.84 | 24.12 | 24.51 | 23.84 | |||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Revenues | $ | 720,062 | $ | 738,429 | $ | 803,565 | $ | 725,267 | $ | 2,987,323 | ||||||||||
Operating income | 70,666 | 70,068 | 76,156 | 58,878 | 275,768 | |||||||||||||||
Net income | 35,919 | 34,729 | 39,377 | 29,611 | 139,636 | |||||||||||||||
Net income for common stock | 35,420 | 34,230 | 38,879 | 29,112 | 137,641 | |||||||||||||||
2013 | ||||||||||||||||||||
Revenues | 717,441 | 728,525 | 764,054 | 770,152 | 2,980,172 | |||||||||||||||
Operating income | 51,121 | 58,975 | 69,853 | 65,564 | 245,513 | |||||||||||||||
Net income | 24,928 | 29,192 | 38,315 | 32,489 | 124,924 | |||||||||||||||
Net income for common stock | 24,429 | 28,693 | 37,817 | 31,990 | 122,929 | |||||||||||||||
Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful. | ||||||||||||||||||||
1 | The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. | |||||||||||||||||||
2 | The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end. | |||||||||||||||||||
3 | Market prices of HEI common stock (symbol HE) shown are as reported on the NYSE Composite Tape. |
Summary_of_significant_account3
Summary of significant accounting policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Future minimum lease payments | |||
2015 | $17 | ||
2016 | 15 | ||
2017 | 12 | ||
2018 | 9 | ||
2019 | 7 | ||
Thereafter | 23 | ||
Total | 83 | ||
Leases | |||
Operating lease expense | 19 | 19 | 19 |
Composite annual depreciation rate (as a percent) | 3.10% | 3.10% | 3.10% |
Maximum | |||
Cash and cash equivalents | |||
Original maturity period of investments classified as cash equivalents | 3 months | ||
Equity method | |||
Ownership percentage of affiliates classified as equity method investments | 50.00% | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Future minimum lease payments | |||
2015 | 8 | ||
2016 | 6 | ||
2017 | 5 | ||
2018 | 4 | ||
2019 | 3 | ||
Thereafter | 14 | ||
Total | 40 | ||
Leases | |||
Operating lease expense | $9 | $8 | $8 |
Summary_of_significant_account4
Summary of significant accounting policies (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Depreciation | |||
Composite annual depreciation rate (as a percent) | 3.10% | 3.10% | 3.10% |
Minimum | |||
Depreciation | |||
Estimated useful life under production plant (in years) | 20 years | ||
Estimated useful life under transmission and distribution plant (in years) | 25 years | ||
Estimated useful life under general plant (in years) | 5 years | ||
Maximum | |||
Depreciation | |||
Estimated useful life under production plant (in years) | 88 years | ||
Estimated useful life under transmission and distribution plant (in years) | 65 years | ||
Estimated useful life under general plant (in years) | 65 years |
Summary_of_significant_account5
Summary of significant accounting policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic | |||||||||||
Distributed earnings (in dollars per share) | $1.24 | $1.24 | $1.24 | ||||||||
Undistributed earnings (loss) (in dollars per share) | $0.41 | $0.39 | $0.19 | ||||||||
Earnings Per Share, basic (in dollars per share) | $0.32 | $0.47 | $0.41 | $0.45 | $0.39 | $0.49 | $0.41 | $0.34 | $1.65 | $1.63 | $1.43 |
Diluted | |||||||||||
Distributed earnings (in dollars per share) | $1.24 | $1.24 | $1.24 | ||||||||
Undistributed earnings (losses) (in dollars per share) | $0.40 | $0.38 | $0.18 | ||||||||
Earnings Per Share, diluted (in dollars per share) | $0.32 | $0.46 | $0.41 | $0.45 | $0.39 | $0.48 | $0.41 | $0.34 | $1.64 | $1.62 | $1.42 |
Summary of significant accounting policies | |||||||||||
Amount reclassified form other assets to plant and equipment | $6,399,724,000 | $6,057,936,000 | $6,399,724,000 | $6,057,936,000 | |||||||
Other assets | 541,542,000 | 512,627,000 | 541,542,000 | 512,627,000 | |||||||
Accounts Receivable | |||||||||||
Allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | |||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190,000 | 82,190,000 | 82,190,000 | 82,190,000 | |||||||
Fair value excess over carrying value (percent) | 60.00% | 60.00% | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Electric utility revenues | |||||||||||
Revenue taxes included in revenues and in taxes, other than income taxes expense | 267,000,000 | 266,000,000 | 280,000,000 | ||||||||
Weighted average AFUDC rate (as a percent) | 7.70% | 7.60% | 7.60% | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | |||||||||||
Contributions in aid of construction | |||||||||||
Contributions amortized period | 30 years | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | |||||||||||
Contributions in aid of construction | |||||||||||
Contributions amortized period | 55 years | ||||||||||
Bank | |||||||||||
Loans modified in a troubled debt restructuring | |||||||||||
Number of consecutive months of repayment required for loans to be removed from nonaccrual status | 6 months | ||||||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190,000 | 82,190,000 | 82,190,000 | 82,190,000 | |||||||
Stock appreciation rights (SARs) | Common stock | |||||||||||
Antidilutive effect of stock appreciation rights (SARs) | |||||||||||
Antidilutive effects of SARs shares that were not included in the computation of diluted EPS (in shares) | 102 | 102 | |||||||||
American Savings Bank (ASB) | |||||||||||
Summary of significant accounting policies | |||||||||||
Other assets | 304,435,000 | 268,063,000 | 304,435,000 | 268,063,000 | |||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190,000 | 82,190,000 | 82,190,000 | 82,190,000 | |||||||
Antidilutive effect of stock appreciation rights (SARs) | |||||||||||
Commitments to fund affordable housing investments | 14,800,000 | 600,000 | 14,800,000 | 600,000 | |||||||
Affordable housing investment, carrying value | 32,457,000 | 14,543,000 | 32,457,000 | 14,543,000 | |||||||
Restatement adjustment | |||||||||||
Summary of significant accounting policies | |||||||||||
Amount reclassified form other assets to plant and equipment | 7,000,000 | 7,000,000 | |||||||||
Other assets | ($7,000,000) | ($7,000,000) |
Proposed_merger_Details
Proposed merger (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended |
Dec. 31, 2014 | Dec. 03, 2014 | Jan. 31, 2015 | |
complaint | |||
Business Acquisition [Line Items] | |||
Number of purported class action complaints filed | 8 | ||
NextEra Energy, Inc Merger | |||
Business Acquisition [Line Items] | |||
Merger share conversion ratio | 0.2413 | ||
Minimum percentage of shares from which holders approval needed for merger | 75.00% | ||
Merger agreement contract extension | 6 months | ||
Merger contract termination fee | $90,000,000 | ||
Maximum expenses paid to party for cancellation of merger | 5,000,000 | ||
Subsequent event | NextEra Energy, Inc Merger | |||
Business Acquisition [Line Items] | |||
Minimum period that entity agrees not to submit applications for general base rate increase | 4 years | ||
Approximate amount of cumulative savings for customers due to forgone recoveries | $60,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | NextEra Energy, Inc Merger | |||
Business Acquisition [Line Items] | |||
Special dividend | $0.50 |
Segment_financial_information_1
Segment financial information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment financial information | |||||||||||
Revenues | $790,040 | $867,096 | $798,657 | $783,749 | $832,503 | $829,168 | $794,567 | $782,232 | $3,239,542 | $3,238,470 | $3,374,995 |
Depreciation and amortization | 181,238 | 164,728 | 158,347 | ||||||||
Interest expense | 87,160 | 85,556 | 89,443 | ||||||||
Income (loss) before income taxes | 261,922 | 247,747 | 217,407 | ||||||||
Income taxes (benefit) | 91,712 | 84,341 | 76,859 | ||||||||
Net income | 33,630 | 48,286 | 41,894 | 46,400 | 39,486 | 48,707 | 41,061 | 34,152 | 170,210 | 163,406 | 140,548 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 33,157 | 47,815 | 41,421 | 45,927 | 39,013 | 48,236 | 40,588 | 33,679 | 168,320 | 161,516 | 138,658 |
Capital expenditures | 339,721 | 353,879 | 325,480 | ||||||||
Assets | 11,184,161 | 10,340,044 | 11,184,161 | 10,340,044 | 10,149,132 | ||||||
Electric utility | |||||||||||
Segment financial information | |||||||||||
Number of entities involved | 3 | ||||||||||
Revenues | 2,987,323 | 2,980,172 | 3,109,439 | ||||||||
Depreciation and amortization | 174,478 | 159,102 | 151,496 | ||||||||
Interest expense | 64,757 | 59,279 | 62,055 | ||||||||
Income (loss) before income taxes | 220,361 | 194,041 | 162,319 | ||||||||
Income taxes (benefit) | 80,725 | 69,117 | 61,048 | ||||||||
Net income | 139,636 | 124,924 | 101,271 | ||||||||
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 | ||||||||
Net income for common stock | 137,641 | 122,929 | 99,276 | ||||||||
Capital expenditures | 311,574 | 342,485 | 310,091 | ||||||||
Assets | 5,590,457 | 5,087,129 | 5,590,457 | 5,087,129 | 5,108,793 | ||||||
Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 252,497 | 258,147 | 265,539 | ||||||||
Depreciation and amortization | 5,399 | 4,230 | 5,334 | ||||||||
Interest expense | 10,808 | 10,077 | 11,292 | ||||||||
Income (loss) before income taxes | 75,619 | 87,059 | 89,021 | ||||||||
Income taxes (benefit) | 24,127 | 29,525 | 30,384 | ||||||||
Net income | 51,492 | 57,534 | 58,637 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income for common stock | 51,492 | 57,534 | 58,637 | ||||||||
Capital expenditures | 28,073 | 11,193 | 14,979 | ||||||||
Assets | 5,565,241 | 5,243,824 | 5,565,241 | 5,243,824 | 5,041,673 | ||||||
Other | |||||||||||
Segment financial information | |||||||||||
Revenues | -278 | 151 | 17 | ||||||||
Depreciation and amortization | 1,361 | 1,396 | 1,517 | ||||||||
Interest expense | 11,595 | 16,200 | 16,096 | ||||||||
Income (loss) before income taxes | -34,058 | -33,353 | -33,933 | ||||||||
Income taxes (benefit) | -13,140 | -14,301 | -14,573 | ||||||||
Net income | -20,918 | -19,052 | -19,360 | ||||||||
Preferred stock dividends of subsidiaries | -105 | -105 | -105 | ||||||||
Net income for common stock | -20,813 | -18,947 | -19,255 | ||||||||
Capital expenditures | 74 | 201 | 410 | ||||||||
Assets | 28,463 | 9,091 | 28,463 | 9,091 | -1,334 | ||||||
Operating Segments | |||||||||||
Segment financial information | |||||||||||
Revenues | 3,239,542 | 3,238,470 | 3,374,995 | ||||||||
Operating Segments | Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 2,987,299 | 2,980,139 | 3,109,353 | ||||||||
Operating Segments | Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 252,497 | 258,147 | 265,539 | ||||||||
Operating Segments | Other | |||||||||||
Segment financial information | |||||||||||
Revenues | -254 | 184 | 103 | ||||||||
Intersegment eliminations | |||||||||||
Segment financial information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Intersegment eliminations | Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 24 | 33 | 86 | ||||||||
Intersegment eliminations | Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Intersegment eliminations | Other | |||||||||||
Segment financial information | |||||||||||
Revenues | ($24) | ($33) | ($86) |
Electric_utility_segment_Regul
Electric utility segment Regulatory Assets and Liabilities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory assets | ||
Regulatory assets | $905,264 | $575,924 |
Regulatory liabilities | ||
Regulatory liabilities | 344,849 | 349,299 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory assets | ||
Regulatory assets | 905,264 | 575,924 |
Regulatory liabilities | ||
Regulatory liabilities | 344,849 | 349,299 |
Hawaiian Electric Company, Inc. and Subsidiaries | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Regulatory liabilities | 331,000 | 315,164 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 12,413 | 31,546 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 1,436 | 2,589 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory assets | ||
Regulatory assets | ||
Regulatory assets | 683,243 | 350,821 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes, net | ||
Regulatory assets | ||
Regulatory assets | 86,836 | 85,430 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account | ||
Regulatory assets | ||
Regulatory assets | 80,183 | 90,386 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Regulatory assets | 15,569 | 17,342 |
Hawaiian Electric Company, Inc. and Subsidiaries | Vacation earned, but not yet taken | ||
Regulatory assets | ||
Regulatory assets | 10,248 | 9,149 |
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Postretirement benefits other than pensions | ||
Regulatory assets | ||
Regulatory assets | 18 | 62 |
Authorized amortization or recovery periods | 18 years | |
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory assets | ||
Regulatory assets | ||
Regulatory assets | 29,167 | 22,734 |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 60 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Income taxes, net | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 55 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Decoupling revenue balancing account | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 30 years | |
Remaining amortization or recovery periods | 18 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | Other, regulatory assets | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 50 years | |
Remaining amortization or recovery periods | 46 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Income taxes, net | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Decoupling revenue balancing account | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 19 years | |
Remaining amortization or recovery periods | 6 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Other, regulatory assets | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Current assets | ||
Regulatory assets | ||
Regulatory assets | 71,421 | 69,738 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term assets | ||
Regulatory assets | ||
Regulatory assets | 833,843 | 506,186 |
Hawaiian Electric Company, Inc. and Subsidiaries | Current liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 632 | 1,916 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $344,217 | $347,383 |
Electric_utility_segment_Addit
Electric utility segment Additional Information (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 30, 2014 | 31-May-13 | Nov. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jul. 11, 2013 | Nov. 30, 2013 | Feb. 28, 2013 | 31-May-12 | Feb. 28, 2012 | Dec. 31, 2009 | Mar. 31, 2012 | Dec. 31, 2011 | Feb. 16, 2012 | Feb. 07, 2014 | Jul. 31, 2014 | |
agreement | MW | bid | MW | generation_unit | |||||||||||||||
Power purchase agreements | |||||||||||||||||||
Number of power purchase agreements (PPAs) | 7 | ||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | |||||||||||||||||||
Power purchase agreements | |||||||||||||||||||
Number of power purchase agreements (PPAs) | 7 | ||||||||||||||||||
Purchased power | 537,821,000 | $527,839,000 | $540,802,000 | ||||||||||||||||
Renewable projects | |||||||||||||||||||
Number of Generating Units Subject to New Regulation | 14 | ||||||||||||||||||
D&O | |||||||||||||||||||
Revenues | 2,142,245,000 | 2,124,174,000 | 2,228,233,000 | ||||||||||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||||||||||
Power purchase agreements | |||||||||||||||||||
Purchased power | 123,226,000 | 128,368,000 | 145,386,000 | ||||||||||||||||
D&O | |||||||||||||||||||
Revenues | 422,200,000 | 431,517,000 | 441,013,000 | ||||||||||||||||
Maui Electric Company, Limited (MECO) | |||||||||||||||||||
Power purchase agreements | |||||||||||||||||||
Purchased power | 60,961,000 | 54,474,000 | 38,052,000 | ||||||||||||||||
Environmental regulation | |||||||||||||||||||
Additional accrued investigation and estimated cleanup costs | 3,600,000 | 3,100,000 | |||||||||||||||||
D&O | |||||||||||||||||||
Revenues | 422,965,000 | 424,603,000 | 440,270,000 | 5,300,000 | |||||||||||||||
Reductions in D&O | |||||||||||||||||||
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 | 7,800,000 | |||||||||||||||||
Stipulated return on common equity percentage | 10.00% | ||||||||||||||||||
Return on common equity percentage approved by PUC | 9.00% | ||||||||||||||||||
Return on common equity percentage approved by PUC allocated to lower interest rate | 0.50% | ||||||||||||||||||
Return on common equity percentage approved by PUC allocated for OverCurtailment of renewable energy | 0.50% | ||||||||||||||||||
Period as basis for calculation of average pension cost | 3 years | ||||||||||||||||||
Charge recorded net of revenue taxes | 7,600,000 | ||||||||||||||||||
Amount to be refunded to customers | 9,700,000 | ||||||||||||||||||
Increase (decrease) in employee benefit expenses | -1,800,000 | ||||||||||||||||||
Deferred IRP cost allowed by PUC order, reclassified to deferred accounts | 700,000 | ||||||||||||||||||
General Rate Case Cycle Period | 3 years | ||||||||||||||||||
Estimated increase in revenue, if base rate increased | 11,600,000 | ||||||||||||||||||
Estimated increase in revenue, if base rate increased, percentage | 2.80% | ||||||||||||||||||
Estimated cost of common equity, percentage | 10.75% | ||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||
Fuel contracts | |||||||||||||||||||
Estimated cost of minimum purchase within 2015 year | 400,000,000 | ||||||||||||||||||
Estimated cost of minimum purchase in 2016 year | 300,000,000 | ||||||||||||||||||
Estimated cost of minimum purchase in 2017 year | 6,400,000 | ||||||||||||||||||
Cost of purchases | 1,100,000,000 | 1,100,000,000 | 1,300,000,000 | ||||||||||||||||
Power purchase agreements | |||||||||||||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | 575 | ||||||||||||||||||
Purchased power | 722,008,000 | 710,681,000 | 724,240,000 | ||||||||||||||||
Expected fixed capacity charges per year for 2015 through 2019, minimum | 100,000,000 | ||||||||||||||||||
Expected fixed capacity charges from 2019 through 2033 | 500,000,000 | ||||||||||||||||||
Renewable projects | |||||||||||||||||||
Percentage of renewable portfolio standard to be achieved by 2030 | 40.00% | ||||||||||||||||||
Recovery of annual deferred costs contingent on approval | 405,000 | ||||||||||||||||||
Integration from renewable energy sources (in megawatts) | 200 | 200 | |||||||||||||||||
Maximum deferred cost recovery | 5,890,000 | ||||||||||||||||||
Integration from firm renewable geothermal dispatchable energy (in megawatts) | 50 | ||||||||||||||||||
Number of bids received | 6 | ||||||||||||||||||
Environmental regulation | |||||||||||||||||||
Percentage of reduction in GHG emissions by 2020 | 16.00% | ||||||||||||||||||
Estimated annual fee, emissions regulation | 500,000 | ||||||||||||||||||
D&O | |||||||||||||||||||
Revenues | 2,987,323,000 | 2,980,172,000 | 3,109,439,000 | ||||||||||||||||
Changes in the asset retirement obligation liability | |||||||||||||||||||
Balance at the beginning of the period | 43,106,000 | 48,431,000 | |||||||||||||||||
Accretion expense | 890,000 | 1,263,000 | |||||||||||||||||
Liabilities incurred | 0 | 0 | |||||||||||||||||
Liabilities settled | -14,577,000 | -5,672,000 | |||||||||||||||||
Revisions in estimated cash flows | 0 | -916,000 | |||||||||||||||||
Balance at the end of the period | 29,419,000 | 43,106,000 | 48,431,000 | ||||||||||||||||
Decoupling | |||||||||||||||||||
Public Utilities, baseline capital project value to determine revenue adjustment | 2,500,000 | ||||||||||||||||||
Public Utilities, proposed rate base adjustment, percent of previous rate base adjustment | 90.00% | ||||||||||||||||||
Public Utilites, effective interest rate, revenue balancing account | 6.00% | ||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | |||||||||||||||||||
Decoupling | |||||||||||||||||||
Public Utilities, proposed effective interest rate, revenue balancing account | 1.25% | ||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | |||||||||||||||||||
Decoupling | |||||||||||||||||||
Public Utilities, proposed effective interest rate, revenue balancing account | 3.25% | ||||||||||||||||||
East Oahu Transmission Project Phase 1 | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||
Renewable projects | |||||||||||||||||||
Gross plant cost agreed to be written-off in lieu of regulatory audit | 9,500,000 | ||||||||||||||||||
After-tax charge to net income due to settlement agreement | 6,000,000 | ||||||||||||||||||
Additional increase in test year rate case | 5,000,000 | ||||||||||||||||||
Reserve for environmental costs | |||||||||||||||||||
Environmental regulation | |||||||||||||||||||
Reserve for additional investigation | $800,000 |
Electric_utility_segment_Major
Electric utility segment Major Customers (Details) (Operating revenues, Customer concentration, Various federal government agencies, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues | Customer concentration | Various federal government agencies | |||
Major customers | |||
Operating revenues percentage | 12.00% | 11.00% | 11.00% |
Operating revenues amount | $350 | $340 | $349 |
Electric_utility_segment_Cumul
Electric utility segment Cumulative Preferred Stock (Details) (USD $) | Dec. 31, 2014 |
HECO | Multiple Series Preferred Stock | |
Class of Stock [Line Items] | |
Preferred Stock Voluntary Liquidation Preference | $20 |
Preferred Stock, Redemption Price Per Share | $21 |
HECO | Series I Preferred Stock | |
Class of Stock [Line Items] | |
Preferred Stock Voluntary Liquidation Preference | $20 |
Preferred Stock, Redemption Price Per Share | $20 |
Hawaii Electric Light Company, Inc. (HELCO) | Series G Preferred Stock | |
Class of Stock [Line Items] | |
Preferred Stock Voluntary Liquidation Preference | $100 |
Preferred Stock, Redemption Price Per Share | $100 |
MECO | Series H Preferred Stock | |
Class of Stock [Line Items] | |
Preferred Stock Voluntary Liquidation Preference | $100 |
Preferred Stock, Redemption Price Per Share | $100 |
Electric_utility_segment_Relat
Electric utility segment Related-Party Transactions (Details) (Hawaiian Electric Industries, Inc., HECO, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Hawaiian Electric Industries, Inc. | HECO | |||
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | $7 | $6.20 | $6.10 |
Effective interest rate basis term | 30 days | ||
Line of credit facility basis point spread (as a percent) | 0.15% |
Electric_utility_segment_2014_
Electric utility segment 2014 Agreement (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2014 | Dec. 31, 2012 | Jan. 28, 2013 |
order | |||
Regulatory projects and legal obligations | |||
Remaining recoverable project costs included in rate base, in accordance with the settlement agreement | $52 | ||
Number of orders from regulatory agency | 4 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Regulatory projects and legal obligations | |||
Period to file required plan | 120 days | ||
Reliability standards, regulatory filing period | 120 days | ||
Period to file implementation plan | 60 days | ||
Period for full implementation of plan | 180 days | ||
Period to file action plan | 30 days | ||
Period to file implementation proposal | 120 days | ||
Regulatory response filing period | 90 days | ||
Hawaiian Electric Company, Inc. and Subsidiaries | CIS project | |||
Regulatory projects and legal obligations | |||
Project costs to be written off, subject to approval by PUC | 40 | ||
After-tax charge to net income due to write-off of project costs | 24 | ||
HECO | CIS project | |||
Regulatory projects and legal obligations | |||
After-tax charge to net income due to write-off of project costs | 17.1 | ||
HELCO | CIS project | |||
Regulatory projects and legal obligations | |||
After-tax charge to net income due to write-off of project costs | 3.4 | ||
MECO | |||
Regulatory projects and legal obligations | |||
Program and system information protocol, filing period | 120 days | ||
MECO | CIS project | |||
Regulatory projects and legal obligations | |||
After-tax charge to net income due to write-off of project costs | $3.20 |
Electric_utility_segment_Lique
Electric utility segment Liquefied Natural Gas (Details) | 1 Months Ended |
Aug. 31, 2014 | |
t | |
Electric utility subsidiary [Abstract] | |
Term Of Agreement | 15 years |
Liquefaction capacity annual purchases, first tranche | 800,000 |
Purchase agreement, period of first tranche | 5 years |
Liquefaction capacity annual purchases, second tranche | 700,000 |
Purchase agreement, period of second tranche | 5 years |
Liquefaction capacity annual purchases, third tranche | 600,000 |
Purchase agreement, period of third tranche | 5 years |
Electric_utility_segment_Conso
Electric utility segment Consolidating Statement of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 |
Expenses | ||||||||||||
Total expenses | $2,910,618 | $2,923,051 | $3,090,799 | |||||||||
Total operating income | 67,241 | 91,102 | 82,275 | 88,306 | 78,349 | 88,038 | 80,207 | 68,825 | 328,924 | 315,419 | 284,196 | |
Allowance for equity funds used during construction | 6,771 | 5,561 | 7,007 | |||||||||
Allowance for borrowed funds used during construction | 2,579 | 2,246 | 4,355 | |||||||||
Income before income taxes | 261,922 | 247,747 | 217,407 | |||||||||
Income taxes | 91,712 | 84,341 | 76,859 | |||||||||
Net income | 33,630 | 48,286 | 41,894 | 46,400 | 39,486 | 48,707 | 41,061 | 34,152 | 170,210 | 163,406 | 140,548 | |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | |||||||||
Net income for common stock | 33,157 | 47,815 | 41,421 | 45,927 | 39,013 | 48,236 | 40,588 | 33,679 | 168,320 | 161,516 | 138,658 | |
HECO | ||||||||||||
Revenues | 2,142,245 | 2,124,174 | 2,228,233 | |||||||||
Expenses | ||||||||||||
Fuel oil | 821,246 | 851,365 | 945,246 | |||||||||
Purchased power | 537,821 | 527,839 | 540,802 | |||||||||
Other operation and maintenance | 283,532 | 283,768 | 266,208 | |||||||||
Depreciation | 109,204 | 99,738 | 90,783 | |||||||||
Taxes, other than income taxes | 201,426 | 200,962 | 209,943 | |||||||||
Impairment of utility assets | 0 | 29,000 | ||||||||||
Total expenses | 1,953,229 | 1,963,672 | 2,081,982 | |||||||||
Total operating income | 189,016 | 160,502 | 146,251 | |||||||||
Allowance for equity funds used during construction | 6,085 | 4,495 | 5,735 | |||||||||
Equity in earnings of subsidiaries | 40,964 | 41,410 | 28,836 | |||||||||
Interest expense and other charges, net | -44,041 | -39,107 | -40,842 | |||||||||
Allowance for borrowed funds used during construction | 2,306 | 1,814 | 3,642 | |||||||||
Income before income taxes | 194,330 | 169,114 | 143,622 | |||||||||
Income taxes | 55,609 | 45,105 | 43,266 | |||||||||
Net income | 138,721 | 124,009 | 100,356 | |||||||||
Net income attributable to Hawaiian Electric | 138,721 | 124,009 | 100,356 | |||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | |||||||||
Net income for common stock | 137,641 | 122,929 | 99,276 | |||||||||
HELCO | ||||||||||||
Revenues | 422,200 | 431,517 | 441,013 | |||||||||
Expenses | ||||||||||||
Fuel oil | 117,215 | 125,516 | 116,866 | |||||||||
Purchased power | 123,226 | 128,368 | 145,386 | |||||||||
Other operation and maintenance | 65,471 | 61,418 | 60,447 | |||||||||
Depreciation | 35,904 | 34,188 | 33,337 | |||||||||
Taxes, other than income taxes | 39,521 | 40,092 | 41,370 | |||||||||
Impairment of utility assets | 0 | 5,500 | ||||||||||
Total expenses | 381,337 | 389,582 | 402,906 | |||||||||
Total operating income | 40,863 | 41,935 | 38,107 | |||||||||
Allowance for equity funds used during construction | 472 | 643 | 585 | |||||||||
Interest expense and other charges, net | -11,030 | -11,341 | -12,066 | |||||||||
Allowance for borrowed funds used during construction | 182 | 263 | 235 | |||||||||
Income before income taxes | 30,487 | 31,500 | 26,861 | |||||||||
Income taxes | 11,264 | 10,830 | 10,115 | |||||||||
Net income | 19,223 | 20,670 | 16,746 | |||||||||
Preferred stock dividends of subsidiaries | 534 | 534 | 534 | |||||||||
Net income attributable to Hawaiian Electric | 18,689 | 20,136 | 16,212 | |||||||||
Net income for common stock | 18,689 | 20,136 | 16,212 | |||||||||
MECO | ||||||||||||
Revenues | 422,965 | 424,603 | 440,270 | 5,300 | ||||||||
Expenses | ||||||||||||
Fuel oil | 193,224 | 208,671 | 235,307 | |||||||||
Purchased power | 60,961 | 54,474 | 38,052 | |||||||||
Other operation and maintenance | 61,609 | 58,081 | 70,771 | |||||||||
Depreciation | 21,279 | 20,099 | 20,378 | |||||||||
Taxes, other than income taxes | 39,916 | 40,077 | 41,528 | |||||||||
Impairment of utility assets | 0 | 5,500 | ||||||||||
Total expenses | 376,989 | 381,402 | 411,536 | |||||||||
Total operating income | 45,976 | 43,201 | 28,734 | |||||||||
Allowance for equity funds used during construction | 214 | 423 | 687 | |||||||||
Interest expense and other charges, net | -9,773 | -8,953 | -9,224 | |||||||||
Allowance for borrowed funds used during construction | 91 | 169 | 478 | |||||||||
Income before income taxes | 36,508 | 34,840 | 20,675 | |||||||||
Income taxes | 13,852 | 13,182 | 7,667 | |||||||||
Net income | 22,656 | 21,658 | 13,008 | |||||||||
Preferred stock dividends of subsidiaries | 381 | 381 | 381 | |||||||||
Net income attributable to Hawaiian Electric | 22,275 | 21,277 | 12,627 | |||||||||
Net income for common stock | 22,275 | 21,277 | 12,627 | |||||||||
Other subsidiaries | ||||||||||||
Revenues | 0 | |||||||||||
Expenses | ||||||||||||
Other operation and maintenance | 3 | 3 | ||||||||||
Total expenses | 0 | 3 | 3 | |||||||||
Total operating income | 0 | -3 | -3 | |||||||||
Income before income taxes | 0 | -3 | -3 | |||||||||
Income taxes | 0 | |||||||||||
Net income | 0 | -3 | -3 | |||||||||
Net income attributable to Hawaiian Electric | 0 | -3 | -3 | |||||||||
Net income for common stock | 0 | -3 | -3 | |||||||||
Consolidating adjustments | ||||||||||||
Revenues | -87 | -122 | -77 | |||||||||
Expenses | ||||||||||||
Total operating income | -87 | -122 | -77 | |||||||||
Equity in earnings of subsidiaries | -40,964 | -41,410 | -28,836 | |||||||||
Interest expense and other charges, net | 87 | 122 | 77 | |||||||||
Income before income taxes | -40,964 | -41,410 | -28,836 | |||||||||
Income taxes | 0 | |||||||||||
Net income | -40,964 | -41,410 | -28,836 | |||||||||
Net income attributable to Hawaiian Electric | -40,964 | -41,410 | -28,836 | |||||||||
Net income for common stock | -40,964 | -41,410 | -28,836 | |||||||||
HECO Consolidated | ||||||||||||
Revenues | 2,987,323 | 2,980,172 | 3,109,439 | |||||||||
Expenses | ||||||||||||
Fuel oil | 1,131,685 | 1,185,552 | 1,297,419 | |||||||||
Purchased power | 722,008 | 710,681 | 724,240 | |||||||||
Other operation and maintenance | 410,612 | 403,270 | 397,429 | |||||||||
Depreciation | 166,387 | 154,025 | 144,498 | |||||||||
Taxes, other than income taxes | 280,863 | 281,131 | 292,841 | |||||||||
Impairment of utility assets | 0 | 0 | 40,000 | |||||||||
Total expenses | 2,711,555 | 2,734,659 | 2,896,427 | |||||||||
Total operating income | 58,878 | 76,156 | 70,068 | 70,666 | 65,564 | 69,853 | 58,975 | 51,121 | 275,768 | 245,513 | 213,012 | |
Allowance for equity funds used during construction | 6,771 | 5,561 | 7,007 | |||||||||
Interest expense and other charges, net | -64,757 | -59,279 | -62,055 | |||||||||
Allowance for borrowed funds used during construction | 2,579 | 2,246 | 4,355 | |||||||||
Income before income taxes | 220,361 | 194,041 | 162,319 | |||||||||
Income taxes | 80,725 | 69,117 | 61,048 | |||||||||
Net income | 29,611 | 39,377 | 34,729 | 35,919 | 32,489 | 38,315 | 29,192 | 24,928 | 139,636 | 124,924 | 101,271 | |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | |||||||||
Net income attributable to Hawaiian Electric | 138,721 | 124,009 | 100,356 | |||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | |||||||||
Net income for common stock | $29,112 | $38,879 | $34,230 | $35,420 | $31,990 | $37,817 | $28,693 | $24,429 | $137,641 | $122,929 | $99,276 |
Electric_utility_segment_Conso1
Electric utility segment Consolidating Statement of Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income for common stock | $33,157 | $47,815 | $41,421 | $45,927 | $39,013 | $48,236 | $40,588 | $33,679 | $168,320 | $161,516 | $138,658 |
Net gains (losses) arising during the period, net of (taxes) benefits | -234,166 | 223,177 | -99,159 | ||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 11,344 | 23,280 | 15,291 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 207,833 | -222,595 | 75,471 | ||||||||
Other comprehensive income (loss), net of taxes | -10,628 | 9,673 | -7,286 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 157,692 | 171,189 | 131,372 | ||||||||
HECO | |||||||||||
Net income for common stock | 137,641 | 122,929 | 99,276 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | -218,608 | 203,479 | -90,082 | ||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,212 | 20,694 | 13,673 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 207,833 | -222,595 | 75,471 | ||||||||
Other comprehensive income (loss), net of taxes | -563 | 1,578 | -938 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 137,078 | 124,507 | 98,338 | ||||||||
HELCO | |||||||||||
Net income for common stock | 18,689 | 20,136 | 16,212 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | -28,725 | 30,542 | -13,577 | ||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 1,270 | 2,880 | 2,101 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 27,437 | -33,277 | 11,442 | ||||||||
Other comprehensive income (loss), net of taxes | -18 | 145 | -34 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 18,671 | 20,281 | 16,178 | ||||||||
MECO | |||||||||||
Net income for common stock | 22,275 | 21,277 | 12,627 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | -29,352 | 27,820 | -10,935 | ||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 1,090 | 2,557 | 1,771 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 28,257 | -30,254 | 9,093 | ||||||||
Other comprehensive income (loss), net of taxes | -5 | 123 | -71 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 22,270 | 21,400 | 12,556 | ||||||||
Other subsidiaries | |||||||||||
Net income for common stock | 0 | -3 | -3 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 0 | ||||||||||
Less: 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 attributable to Hawaiian Electric Industries, Inc. | 0 | -3 | -3 | ||||||||
Consolidating adjustments | |||||||||||
Net income for common stock | -40,964 | -41,410 | -28,836 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits | 58,077 | -58,362 | 24,512 | ||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | -2,360 | -5,437 | -3,872 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | -55,694 | 63,531 | -20,535 | ||||||||
Other comprehensive income (loss), net of taxes | 23 | -268 | 105 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | -40,941 | -41,678 | -28,731 | ||||||||
HECO Consolidated | |||||||||||
Net income for common stock | 29,112 | 38,879 | 34,230 | 35,420 | 31,990 | 37,817 | 28,693 | 24,429 | 137,641 | 122,929 | 99,276 |
Net gains (losses) arising during the period, net of (taxes) benefits | -218,608 | 203,479 | -90,082 | ||||||||
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,212 | 20,694 | 13,673 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 207,833 | -222,595 | 75,471 | ||||||||
Other comprehensive income (loss), net of taxes | -563 | 1,578 | -938 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $137,078 | $124,507 | $98,338 |
Electric_utility_segment_Conso2
Electric utility segment Consolidating Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2007 |
In Thousands, unless otherwise specified | |||||
Utility property, plant and equipment | |||||
Property, plant and equipment, net | $4,148,774 | $3,865,514 | |||
Other long-term assets | |||||
Total assets | 11,184,161 | 10,340,044 | |||
Capitalization | |||||
Common stock equity | 1,791,428 | 1,727,070 | 1,593,865 | 1,528,706 | |
Cumulative preferred stock-not subject to mandatory redemption | 0 | 0 | |||
Current liabilities | |||||
Interest and dividends payable | 25,336 | 26,716 | |||
Deferred credits and other liabilities | |||||
Deferred income taxes | 631,734 | 529,260 | |||
Contributions in aid of construction | 466,432 | 432,894 | |||
Total liabilities and shareholders' equity | 11,184,161 | 10,340,044 | |||
HECO | |||||
Utility property, plant and equipment | |||||
Land | 43,819 | 43,407 | |||
Plant and equipment | 3,782,438 | 3,558,569 | |||
Less accumulated depreciation | -1,253,866 | -1,222,129 | |||
Construction in progress | 134,376 | 124,494 | |||
Utility property, plant and equipment, net | 2,706,767 | 2,504,341 | |||
Nonutility property, plant and equipment, less accumulated depreciation | 4,950 | 4,953 | |||
Property, plant and equipment, net | 2,711,717 | 2,509,294 | |||
Investment in wholly-owned subsidiaries, at equity | 538,639 | 523,674 | |||
Current assets | |||||
Cash and cash equivalents | 12,416 | 61,245 | 8,265 | 44,819 | |
Advances to affiliates | 16,100 | 6,839 | |||
Customer accounts receivable, net | 111,462 | 121,282 | |||
Accrued unbilled revenues, net | 103,072 | 107,752 | |||
Other accounts receivable, net | 9,980 | 16,373 | |||
Fuel oil stock, at average cost | 74,515 | 99,613 | |||
Materials and supplies, at average cost | 33,154 | 37,377 | |||
Prepayments and other | 44,680 | 29,798 | |||
Regulatory assets | 58,550 | 54,979 | |||
Total current assets | 463,929 | 535,258 | |||
Other long-term assets | |||||
Regulatory assets | 623,784 | 381,346 | |||
Unamortized debt expense | 5,640 | 6,051 | |||
Other | 53,106 | 42,163 | |||
Total other long-term assets | 682,530 | 429,560 | |||
Total assets | 4,396,815 | 3,997,786 | |||
Capitalization | |||||
Common stock equity | 1,682,144 | 1,593,564 | 1,472,136 | 1,402,841 | |
Cumulative preferred stock-not subject to mandatory redemption | 22,293 | 22,293 | |||
Long-term debt, net | 830,546 | 830,547 | |||
Total capitalization | 2,534,983 | 2,446,404 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | ||||
Short-term borrowings-affiliate | 0 | 1,000 | |||
Accounts payable | 122,433 | 145,062 | |||
Interest and dividends payable | 15,407 | 15,190 | |||
Taxes accrued | 176,339 | 175,790 | |||
Regulatory liabilities | 191 | 1,705 | |||
Other | 48,282 | 48,443 | |||
Total current liabilities | 362,652 | 387,190 | |||
Deferred credits and other liabilities | |||||
Deferred income taxes | 429,515 | 359,621 | |||
Regulatory liabilities | 236,727 | 235,786 | |||
Unamortized tax credits | 49,865 | 44,931 | |||
Defined benefit pension and other postretirement benefit plans liability | 446,888 | 202,396 | |||
Other | 52,446 | 63,374 | |||
Total deferred credits and other liabilities | 1,215,441 | 906,108 | |||
Contributions in aid of construction | 283,739 | 258,084 | |||
Total liabilities and shareholders' equity | 4,396,815 | 3,997,786 | |||
Consolidating adjustments | |||||
Utility property, plant and equipment | |||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | ||||
Investment in wholly-owned subsidiaries, at equity | -538,639 | -523,674 | |||
Current assets | |||||
Advances to affiliates | -16,100 | -7,839 | |||
Other accounts receivable, net | -8,924 | -9,027 | |||
Prepayments and other | -475 | -1,415 | |||
Total current assets | -25,499 | -18,281 | |||
Other long-term assets | |||||
Regulatory assets | -183 | ||||
Total other long-term assets | -183 | ||||
Total assets | -564,321 | -541,955 | |||
Capitalization | |||||
Common stock equity | -538,639 | -523,674 | -497,939 | -516,143 | |
Total capitalization | -538,639 | -523,674 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | ||||
Short-term borrowings-affiliate | -16,100 | -7,839 | |||
Interest and dividends payable | -11 | -8 | |||
Taxes accrued | -292 | -1,415 | |||
Regulatory liabilities | 0 | ||||
Other | -9,096 | -9,019 | |||
Total current liabilities | -25,499 | -18,281 | |||
Deferred credits and other liabilities | |||||
Regulatory liabilities | -183 | 0 | |||
Total deferred credits and other liabilities | -183 | ||||
Total liabilities and shareholders' equity | -564,321 | -541,955 | |||
HELCO | |||||
Utility property, plant and equipment | |||||
Land | 5,464 | 5,460 | |||
Plant and equipment | 1,179,032 | 1,136,923 | |||
Less accumulated depreciation | -473,933 | -453,721 | |||
Construction in progress | 12,421 | 7,709 | |||
Utility property, plant and equipment, net | 722,984 | 696,371 | |||
Nonutility property, plant and equipment, less accumulated depreciation | 82 | 82 | |||
Property, plant and equipment, net | 723,066 | 696,453 | |||
Current assets | |||||
Cash and cash equivalents | 612 | 1,326 | 5,441 | 3,383 | |
Advances to affiliates | 0 | 1,000 | |||
Customer accounts receivable, net | 24,222 | 28,088 | |||
Accrued unbilled revenues, net | 15,926 | 17,100 | |||
Other accounts receivable, net | 981 | 4,265 | |||
Fuel oil stock, at average cost | 13,800 | 14,178 | |||
Materials and supplies, at average cost | 6,664 | 6,883 | |||
Prepayments and other | 8,611 | 8,334 | |||
Regulatory assets | 6,745 | 6,931 | |||
Total current assets | 77,561 | 88,105 | |||
Other long-term assets | |||||
Regulatory assets | 107,454 | 64,552 | 12,800 | ||
Unamortized debt expense | 1,438 | 1,580 | |||
Other | 15,366 | 11,270 | |||
Total other long-term assets | 124,258 | 77,402 | |||
Total assets | 924,885 | 861,960 | |||
Capitalization | |||||
Common stock equity | 281,846 | 274,802 | 268,908 | 280,468 | |
Cumulative preferred stock-not subject to mandatory redemption | 7,000 | 7,000 | |||
Long-term debt, net | 190,000 | 189,998 | |||
Total capitalization | 478,846 | 471,800 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | 11,400 | |||
Short-term borrowings-affiliate | 10,500 | ||||
Accounts payable | 23,728 | 24,383 | |||
Interest and dividends payable | 3,989 | 3,885 | |||
Taxes accrued | 37,548 | 37,899 | |||
Regulatory liabilities | 0 | ||||
Other | 9,866 | 9,033 | |||
Total current liabilities | 85,631 | 86,600 | |||
Deferred credits and other liabilities | |||||
Deferred income taxes | 90,119 | 79,947 | |||
Regulatory liabilities | 77,707 | 76,475 | |||
Unamortized tax credits | 14,902 | 14,245 | |||
Defined benefit pension and other postretirement benefit plans liability | 72,547 | 28,427 | |||
Other | 10,658 | 14,703 | |||
Total deferred credits and other liabilities | 265,933 | 213,797 | |||
Contributions in aid of construction | 94,475 | 89,763 | |||
Total liabilities and shareholders' equity | 924,885 | 861,960 | |||
MECO | |||||
Utility property, plant and equipment | |||||
Land | 3,016 | 3,016 | |||
Plant and equipment | 1,048,012 | 1,006,383 | |||
Less accumulated depreciation | -447,711 | -435,379 | |||
Construction in progress | 11,819 | 11,030 | |||
Utility property, plant and equipment, net | 615,136 | 585,050 | |||
Nonutility property, plant and equipment, less accumulated depreciation | 1,531 | 1,532 | |||
Property, plant and equipment, net | 616,667 | 586,582 | |||
Current assets | |||||
Cash and cash equivalents | 633 | 153 | 3,349 | 496 | |
Advances to affiliates | 0 | ||||
Customer accounts receivable, net | 22,800 | 26,078 | |||
Accrued unbilled revenues, net | 18,376 | 19,272 | |||
Other accounts receivable, net | 2,246 | 2,451 | |||
Fuel oil stock, at average cost | 17,731 | 20,296 | |||
Materials and supplies, at average cost | 17,432 | 14,784 | |||
Prepayments and other | 13,567 | 16,140 | |||
Regulatory assets | 6,126 | 7,828 | |||
Total current assets | 98,911 | 107,002 | |||
Other long-term assets | |||||
Regulatory assets | 102,788 | 60,288 | |||
Unamortized debt expense | 1,245 | 1,372 | |||
Other | 13,366 | 13,993 | |||
Total other long-term assets | 117,399 | 75,653 | |||
Total assets | 832,977 | 769,237 | |||
Capitalization | |||||
Common stock equity | 256,692 | 248,771 | 228,927 | 235,568 | |
Cumulative preferred stock-not subject to mandatory redemption | 5,000 | 5,000 | |||
Long-term debt, net | 186,000 | 186,000 | |||
Total capitalization | 447,692 | 439,771 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | ||||
Short-term borrowings-affiliate | 5,600 | 6,839 | |||
Accounts payable | 17,773 | 20,114 | |||
Interest and dividends payable | 2,931 | 2,585 | |||
Taxes accrued | 36,807 | 37,171 | |||
Regulatory liabilities | 441 | 211 | |||
Other | 16,094 | 15,424 | |||
Total current liabilities | 79,646 | 82,344 | |||
Deferred credits and other liabilities | |||||
Deferred income taxes | 83,238 | 67,593 | |||
Regulatory liabilities | 29,966 | 35,122 | |||
Unamortized tax credits | 14,725 | 14,363 | |||
Defined benefit pension and other postretirement benefit plans liability | 75,960 | 31,339 | |||
Other | 13,532 | 13,658 | |||
Total deferred credits and other liabilities | 217,421 | 162,075 | |||
Contributions in aid of construction | 88,218 | 85,047 | |||
Total liabilities and shareholders' equity | 832,977 | 769,237 | |||
HECO Consolidated | |||||
Utility property, plant and equipment | |||||
Land | 52,299 | 51,883 | |||
Plant and equipment | 6,009,482 | 5,701,875 | |||
Less accumulated depreciation | -2,175,510 | -2,111,229 | |||
Construction in progress | 158,616 | 143,233 | |||
Utility property, plant and equipment, net | 4,044,887 | 3,785,762 | |||
Nonutility property, plant and equipment, less accumulated depreciation | 6,563 | 6,567 | |||
Property, plant and equipment, net | 4,051,450 | 3,792,329 | |||
Current assets | |||||
Cash and cash equivalents | 13,762 | 62,825 | 17,159 | 48,806 | |
Customer accounts receivable, net | 158,484 | 175,448 | |||
Accrued unbilled revenues, net | 137,374 | 144,124 | |||
Other accounts receivable, net | 4,283 | 14,062 | |||
Fuel oil stock, at average cost | 106,046 | 134,087 | |||
Materials and supplies, at average cost | 57,250 | 59,044 | |||
Prepayments and other | 66,383 | 52,857 | |||
Regulatory assets | 71,421 | 69,738 | |||
Total current assets | 615,003 | 712,185 | |||
Other long-term assets | |||||
Regulatory assets | 833,843 | 506,186 | |||
Unamortized debt expense | 8,323 | 9,003 | |||
Other | 81,838 | 67,426 | |||
Total other long-term assets | 924,004 | 582,615 | |||
Total assets | 5,590,457 | 5,087,129 | |||
Capitalization | |||||
Common stock equity | 1,682,144 | 1,593,564 | 1,472,136 | 1,402,841 | |
Cumulative preferred stock-not subject to mandatory redemption | 34,293 | 34,293 | |||
Long-term debt, net | 1,206,546 | 1,206,545 | |||
Total capitalization | 2,922,983 | 2,834,402 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | 11,400 | |||
Accounts payable | 163,934 | 189,559 | |||
Interest and dividends payable | 22,316 | 21,652 | |||
Taxes accrued | 250,402 | 249,445 | |||
Regulatory liabilities | 632 | 1,916 | |||
Other | 65,146 | 63,881 | |||
Total current liabilities | 502,430 | 537,853 | |||
Deferred credits and other liabilities | |||||
Deferred income taxes | 602,872 | 507,161 | |||
Regulatory liabilities | 344,217 | 347,383 | |||
Unamortized tax credits | 79,492 | 73,539 | |||
Defined benefit pension and other postretirement benefit plans liability | 595,395 | 262,162 | |||
Other | 76,636 | 91,735 | |||
Total deferred credits and other liabilities | 1,698,612 | 1,281,980 | |||
Contributions in aid of construction | 466,432 | 432,894 | |||
Total liabilities and shareholders' equity | 5,590,457 | 5,087,129 | |||
Other subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | 101 | 101 | 104 | 108 | |
Total current assets | 101 | 101 | |||
Other long-term assets | |||||
Total assets | 101 | 101 | |||
Capitalization | |||||
Common stock equity | 101 | 101 | 104 | 107 | |
Total capitalization | 101 | 101 | |||
Current liabilities | |||||
Other | 0 | ||||
Total current liabilities | 0 | ||||
Deferred credits and other liabilities | |||||
Total liabilities and shareholders' equity | $101 | $101 |
Electric_utility_segment_Conso3
Electric utility segment Consolidating Statements of Changes in Common Stock Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Beginning Balance | $1,727,070 | $1,593,865 | $1,727,070 | $1,593,865 | $1,528,706 | ||||||
Net income for common stock | 33,157 | 47,815 | 41,421 | 45,927 | 39,013 | 48,236 | 40,588 | 33,679 | 168,320 | 161,516 | 138,658 |
Other comprehensive income (loss), net of tax benefits | -10,628 | 9,673 | -7,286 | ||||||||
Issuance of common stock, net of expenses | 2,461 | 41,692 | 41,295 | ||||||||
Common stock dividends | -126,505 | -122,626 | -120,150 | ||||||||
Ending Balance | 1,791,428 | 1,727,070 | 1,791,428 | 1,727,070 | 1,593,865 | ||||||
HECO | |||||||||||
Beginning Balance | 1,593,564 | 1,472,136 | 1,593,564 | 1,472,136 | 1,402,841 | ||||||
Net income for common stock | 137,641 | 122,929 | 99,276 | ||||||||
Other comprehensive income (loss), net of tax benefits | -563 | 1,578 | -938 | ||||||||
Issuance of common stock, net of expenses | 39,994 | 78,499 | 44,001 | ||||||||
Common stock dividends | -88,492 | -81,578 | -73,044 | ||||||||
Ending Balance | 1,682,144 | 1,593,564 | 1,682,144 | 1,593,564 | 1,472,136 | ||||||
HELCO | |||||||||||
Beginning Balance | 274,802 | 268,908 | 274,802 | 268,908 | 280,468 | ||||||
Net income for common stock | 18,689 | 20,136 | 16,212 | ||||||||
Other comprehensive income (loss), net of tax benefits | -18 | 145 | -34 | ||||||||
Issuance of common stock, net of expenses | 0 | ||||||||||
Common stock dividends | -11,627 | -14,387 | -27,738 | ||||||||
Ending Balance | 281,846 | 274,802 | 281,846 | 274,802 | 268,908 | ||||||
MECO | |||||||||||
Beginning Balance | 248,771 | 228,927 | 248,771 | 228,927 | 235,568 | ||||||
Net income for common stock | 22,275 | 21,277 | 12,627 | ||||||||
Other comprehensive income (loss), net of tax benefits | -5 | 123 | -71 | ||||||||
Issuance of common stock, net of expenses | 12,461 | 0 | |||||||||
Common stock dividends | -14,349 | -14,017 | -19,197 | ||||||||
Ending Balance | 256,692 | 248,771 | 256,692 | 248,771 | 228,927 | ||||||
Other subsidiaries | |||||||||||
Beginning Balance | 101 | 104 | 101 | 104 | 107 | ||||||
Net income for common stock | 0 | -3 | -3 | ||||||||
Other comprehensive income (loss), net of tax benefits | 0 | ||||||||||
Issuance of common stock, net of expenses | 0 | ||||||||||
Ending Balance | 101 | 101 | 101 | 101 | 104 | ||||||
Consolidating adjustments | |||||||||||
Beginning Balance | -523,674 | -497,939 | -523,674 | -497,939 | -516,143 | ||||||
Net income for common stock | -40,964 | -41,410 | -28,836 | ||||||||
Other comprehensive income (loss), net of tax benefits | 23 | -268 | 105 | ||||||||
Issuance of common stock, net of expenses | -12,461 | 0 | |||||||||
Common stock dividends | 25,976 | 28,404 | 46,935 | ||||||||
Ending Balance | -538,639 | -523,674 | -538,639 | -523,674 | -497,939 | ||||||
HECO Consolidated | |||||||||||
Beginning Balance | 1,593,564 | 1,472,136 | 1,593,564 | 1,472,136 | 1,402,841 | ||||||
Net income for common stock | 29,112 | 38,879 | 34,230 | 35,420 | 31,990 | 37,817 | 28,693 | 24,429 | 137,641 | 122,929 | 99,276 |
Other comprehensive income (loss), net of tax benefits | -563 | 1,578 | -938 | ||||||||
Issuance of common stock, net of expenses | 39,994 | 78,499 | 44,001 | ||||||||
Common stock dividends | -88,492 | -81,578 | -73,044 | ||||||||
Ending Balance | $1,682,144 | $1,593,564 | $1,682,144 | $1,593,564 | $1,472,136 |
Electric_utility_segment_Conso4
Electric utility segment Consolidating Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income (loss) | $170,210 | $163,406 | $140,548 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 172,762 | 160,061 | 150,389 |
Other amortization | 8,476 | 4,667 | 7,958 |
Impairment of utility plant | 0 | 0 | 40,000 |
Increase in deferred income taxes | 59,184 | 80,399 | 90,848 |
Allowance for equity funds used during construction | -6,771 | -5,561 | -7,007 |
Change in cash overdraft | -1,038 | 1,038 | 0 |
Decrease (increase) in fuel oil stock | 28,041 | 27,332 | 10,129 |
Increase in regulatory assets | -17,000 | -65,461 | -72,401 |
Change in prepaid and accrued income taxes and revenue taxes | 12,845 | -19,406 | 21,079 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 22,251 | -33,014 | -228 |
Net cash provided by operating activities | 301,479 | 327,146 | 234,542 |
Cash flows from investing activities | |||
Capital expenditures | -339,721 | -353,879 | -325,480 |
Contributions in aid of construction | 41,806 | 32,160 | 45,982 |
Other | -39 | 40 | 935 |
Net cash used in investing activities | -568,508 | -563,760 | -427,047 |
Cash flows from financing activities | |||
Common stock dividends | -126,458 | -98,383 | -96,202 |
Proceeds from issuance of long-term debt | 125,000 | 286,000 | 457,000 |
Proceeds from issuance of common stock | 26,898 | 55,086 | 23,613 |
Repayment of long-term debt | -111,400 | -216,000 | -375,500 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 13,490 | 21,789 | 14,872 |
Other | -456 | -1,187 | -2,645 |
Net cash provided by (used in) financing activities | 222,535 | 236,988 | 141,902 |
Net increase (decrease) in cash and cash equivalents | -44,494 | 374 | -50,603 |
HECO | |||
Cash flows from operating activities | |||
Net income (loss) | 138,721 | 124,009 | 100,356 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings | -41,064 | -41,510 | -28,936 |
Common stock dividends received from subsidiaries | 26,076 | 28,505 | 47,035 |
Depreciation of property, plant and equipment | 109,204 | 99,738 | 90,783 |
Other amortization | 1,749 | 554 | 1,508 |
Impairment of utility plant | 29,000 | ||
Increase in deferred income taxes | 56,901 | 41,409 | 66,968 |
Change in tax credits, net | 4,998 | 5,152 | 5,006 |
Allowance for equity funds used during construction | -6,085 | -4,495 | -5,735 |
Decrease (increase) in accounts receivable | 16,213 | 49,974 | -48,451 |
Decrease (increase) in accrued unbilled revenues | 4,680 | -7,152 | 2,728 |
Decrease (increase) in fuel oil stock | 25,098 | 23,563 | 4,861 |
Increase in materials and supplies | 4,223 | -5,598 | -6,683 |
Increase in regulatory assets | -14,620 | -46,047 | -55,605 |
Increase (decrease) in accounts payable | -74,276 | -6,136 | -31,743 |
Change in prepaid and accrued income taxes and revenue taxes | -4,166 | 4,632 | 19,871 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | -562 | 2,325 | -434 |
Changes in other assets and liabilities | -46,032 | -17,941 | -44,880 |
Net cash provided by operating activities | 201,058 | 250,982 | 145,649 |
Cash flows from investing activities | |||
Capital expenditures | -219,738 | -237,899 | -233,792 |
Contributions in aid of construction | 30,021 | 21,686 | 32,285 |
Advances from affiliates | -9,261 | 2,561 | -9,400 |
Other | 0 | ||
Investment in consolidated subsidiary | 0 | -12,461 | |
Net cash used in investing activities | -198,978 | -226,113 | -210,907 |
Cash flows from financing activities | |||
Common stock dividends | -88,492 | -81,578 | -73,044 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | -1,080 | -1,080 | -1,080 |
Proceeds from issuance of long-term debt | 0 | 140,000 | 367,000 |
Proceeds from issuance of common stock | 40,000 | 78,500 | 44,000 |
Repayment of long-term debt | 0 | -90,000 | -259,580 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | -1,000 | -17,050 | -46,600 |
Other | -337 | -681 | -1,992 |
Net cash provided by (used in) financing activities | -50,909 | 28,111 | 28,704 |
Net increase (decrease) in cash and cash equivalents | -48,829 | 52,980 | -36,554 |
Cash and cash equivalents, January 1 | 61,245 | 8,265 | 44,819 |
Cash and cash equivalents, December 31 | 12,416 | 61,245 | 8,265 |
HELCO | |||
Cash flows from operating activities | |||
Net income (loss) | 19,223 | 20,670 | 16,746 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 35,904 | 34,188 | 33,337 |
Other amortization | 2,596 | 1,979 | 3,252 |
Impairment of utility plant | 5,500 | ||
Increase in deferred income taxes | 12,083 | 10,569 | 7,457 |
Change in tax credits, net | 680 | 818 | 522 |
Allowance for equity funds used during construction | -472 | -643 | -585 |
Decrease (increase) in accounts receivable | 7,150 | -1,459 | -1,106 |
Decrease (increase) in accrued unbilled revenues | 1,174 | -2,707 | 4,106 |
Decrease (increase) in fuel oil stock | 378 | 1,307 | 3,732 |
Increase in materials and supplies | 219 | -1,547 | -636 |
Increase in regulatory assets | -3,357 | -9,237 | -9,649 |
Increase (decrease) in accounts payable | -8,490 | -4,756 | -8,110 |
Change in prepaid and accrued income taxes and revenue taxes | -3,251 | -4,114 | 1,935 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 0 | -1 | -191 |
Changes in other assets and liabilities | -12,085 | -6,262 | -11,143 |
Net cash provided by operating activities | 51,752 | 38,805 | 45,167 |
Cash flows from investing activities | |||
Capital expenditures | -48,050 | -52,135 | -41,060 |
Contributions in aid of construction | 7,695 | 7,590 | 8,184 |
Advances from affiliates | 1,000 | 17,050 | 28,100 |
Other | 0 | -230 | |
Net cash used in investing activities | -39,355 | -27,725 | -4,776 |
Cash flows from financing activities | |||
Common stock dividends | -11,627 | -14,388 | -27,738 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | -534 | -534 | -534 |
Proceeds from issuance of long-term debt | 0 | 56,000 | 31,000 |
Proceeds from issuance of common stock | 0 | ||
Repayment of long-term debt | -11,400 | -56,000 | -41,200 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 10,500 | 0 | |
Other | -50 | -273 | 139 |
Net cash provided by (used in) financing activities | -13,111 | -15,195 | -38,333 |
Net increase (decrease) in cash and cash equivalents | -714 | -4,115 | 2,058 |
Cash and cash equivalents, January 1 | 1,326 | 5,441 | 3,383 |
Cash and cash equivalents, December 31 | 612 | 1,326 | 5,441 |
MECO | |||
Cash flows from operating activities | |||
Net income (loss) | 22,656 | 21,658 | 13,008 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 21,279 | 20,099 | 20,378 |
Other amortization | 3,746 | 2,544 | 2,238 |
Impairment of utility plant | 5,500 | ||
Increase in deferred income taxes | 13,963 | 12,529 | 12,453 |
Change in tax credits, net | 384 | 1,047 | 547 |
Allowance for equity funds used during construction | -214 | -423 | -687 |
Change in cash overdraft | -1,038 | 1,038 | |
Decrease (increase) in accounts receivable | 3,483 | 1,178 | -2,164 |
Decrease (increase) in accrued unbilled revenues | 896 | 33 | -3,306 |
Decrease (increase) in fuel oil stock | 2,565 | 2,462 | 1,536 |
Increase in materials and supplies | -2,648 | -814 | -578 |
Increase in regulatory assets | 977 | -10,177 | -7,147 |
Increase (decrease) in accounts payable | -7,866 | -9,936 | 940 |
Change in prepaid and accrued income taxes and revenue taxes | 3,381 | -2,546 | 3,433 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | -399 | -84 | -119 |
Changes in other assets and liabilities | -4,945 | -7,544 | -12,678 |
Net cash provided by operating activities | 56,220 | 31,064 | 33,354 |
Cash flows from investing activities | |||
Capital expenditures | -43,786 | -52,451 | -35,239 |
Contributions in aid of construction | 4,090 | 2,884 | 5,513 |
Advances from affiliates | 0 | 0 | 18,500 |
Other | 0 | ||
Net cash used in investing activities | -39,696 | -49,567 | -11,226 |
Cash flows from financing activities | |||
Common stock dividends | -14,349 | -14,017 | -19,197 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | -381 | -381 | -381 |
Proceeds from issuance of long-term debt | 0 | 40,000 | 59,000 |
Proceeds from issuance of common stock | 0 | 12,461 | 0 |
Repayment of long-term debt | 0 | -20,000 | -67,720 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | -1,239 | -2,561 | 9,400 |
Other | -75 | -195 | -377 |
Net cash provided by (used in) financing activities | -16,044 | 15,307 | -19,275 |
Net increase (decrease) in cash and cash equivalents | 480 | -3,196 | 2,853 |
Cash and cash equivalents, January 1 | 153 | 3,349 | 496 |
Cash and cash equivalents, December 31 | 633 | 153 | 3,349 |
Other subsidiaries | |||
Cash flows from operating activities | |||
Net income (loss) | 0 | -3 | -3 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Changes in other assets and liabilities | 0 | 0 | -1 |
Net cash provided by operating activities | 0 | -3 | -4 |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 0 | ||
Net cash provided by (used in) financing activities | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | -3 | -4 |
Cash and cash equivalents, January 1 | 101 | 104 | 108 |
Cash and cash equivalents, December 31 | 101 | 101 | 104 |
Consolidating adjustments | |||
Cash flows from operating activities | |||
Net income (loss) | -40,964 | -41,410 | -28,836 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings | 40,964 | 41,410 | 28,836 |
Common stock dividends received from subsidiaries | -25,976 | -28,405 | -46,935 |
Decrease (increase) in accounts receivable | -103 | -248 | 4,717 |
Changes in other assets and liabilities | 103 | 248 | -4,717 |
Net cash provided by operating activities | -25,976 | -28,405 | -46,935 |
Cash flows from investing activities | |||
Advances from affiliates | 8,261 | -19,611 | -37,200 |
Other | 0 | ||
Investment in consolidated subsidiary | 0 | 12,461 | |
Net cash used in investing activities | 8,261 | -7,150 | -37,200 |
Cash flows from financing activities | |||
Common stock dividends | 25,976 | 28,405 | 46,935 |
Proceeds from issuance of common stock | 0 | -12,461 | 0 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | -8,261 | 19,611 | 37,200 |
Net cash provided by (used in) financing activities | 17,715 | 35,555 | 84,135 |
HECO Consolidated | |||
Cash flows from operating activities | |||
Net income (loss) | 139,636 | 124,924 | 101,271 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in earnings | -100 | -100 | -100 |
Common stock dividends received from subsidiaries | 100 | 100 | 100 |
Depreciation of property, plant and equipment | 166,387 | 154,025 | 144,498 |
Other amortization | 8,091 | 5,077 | 6,998 |
Impairment of utility plant | 0 | 0 | 40,000 |
Increase in deferred income taxes | 82,947 | 64,507 | 86,878 |
Change in tax credits, net | 6,062 | 7,017 | 6,075 |
Allowance for equity funds used during construction | -6,771 | -5,561 | -7,007 |
Change in cash overdraft | -1,038 | 1,038 | 0 |
Decrease (increase) in accounts receivable | 26,743 | 49,445 | -47,004 |
Decrease (increase) in accrued unbilled revenues | 6,750 | -9,826 | 3,528 |
Decrease (increase) in fuel oil stock | 28,041 | 27,332 | 10,129 |
Increase in materials and supplies | 1,794 | -7,959 | -7,897 |
Increase in regulatory assets | -17,000 | -65,461 | -72,401 |
Increase (decrease) in accounts payable | -90,632 | -20,828 | -38,913 |
Change in prepaid and accrued income taxes and revenue taxes | -4,036 | -2,028 | 25,239 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | -961 | 2,240 | -744 |
Changes in other assets and liabilities | -62,959 | -31,499 | -73,419 |
Net cash provided by operating activities | 283,054 | 292,443 | 177,231 |
Cash flows from investing activities | |||
Capital expenditures | -311,574 | -342,485 | -310,091 |
Contributions in aid of construction | 41,806 | 32,160 | 45,982 |
Other | 0 | -230 | 0 |
Net cash used in investing activities | -269,768 | -310,555 | -264,109 |
Cash flows from financing activities | |||
Common stock dividends | -88,492 | -81,578 | -73,044 |
Preferred stock dividends of Hawaiian Electric and subsidiaries | -1,995 | -1,995 | -1,995 |
Proceeds from issuance of long-term debt | 0 | 236,000 | 457,000 |
Proceeds from issuance of common stock | 40,000 | 78,500 | 44,000 |
Repayment of long-term debt | -11,400 | -166,000 | -368,500 |
Other | -462 | -1,149 | -2,230 |
Net cash provided by (used in) financing activities | -62,349 | 63,778 | 55,231 |
Net increase (decrease) in cash and cash equivalents | -49,063 | 45,666 | -31,647 |
Cash and cash equivalents, January 1 | 62,825 | 17,159 | 48,806 |
Cash and cash equivalents, December 31 | $13,762 | $62,825 | $17,159 |
Bank_segment_HEI_only_Statemen
Bank segment (HEI only) Statements of Income Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest expense | |||||||||||
Interest on deposit liabilities | $5,077 | $5,092 | $6,423 | ||||||||
Total interest expense | 87,160 | 85,556 | 89,443 | ||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | ||||||||
Noninterest expense | |||||||||||
Income before income taxes | 261,922 | 247,747 | 217,407 | ||||||||
Income taxes | 91,712 | 84,341 | 76,859 | ||||||||
Net income | 33,630 | 48,286 | 41,894 | 46,400 | 39,486 | 48,707 | 41,061 | 34,152 | 170,210 | 163,406 | 140,548 |
American Savings Bank (ASB) | |||||||||||
Interest and dividend income | |||||||||||
Interest and fees on loans | 179,341 | 172,969 | 176,057 | ||||||||
Interest and dividends on investment securities | 11,945 | 13,095 | 13,822 | ||||||||
Total interest and dividend income | 191,286 | 186,064 | 189,879 | ||||||||
Interest expense | |||||||||||
Interest on deposit liabilities | 5,077 | 5,092 | 6,423 | ||||||||
Interest on other borrowings | 5,731 | 4,985 | 4,869 | ||||||||
Total interest expense | 10,808 | 10,077 | 11,292 | ||||||||
Net interest income | 180,478 | 175,987 | 178,587 | ||||||||
Provision for loan losses | 6,126 | 1,507 | 12,883 | ||||||||
Net interest income after provision for loan losses | 174,352 | 174,480 | 165,704 | ||||||||
Noninterest income | |||||||||||
Fees from other financial services | 21,747 | 27,099 | 31,361 | ||||||||
Fee income on deposit liabilities | 19,249 | 18,363 | 17,775 | ||||||||
Fee income on other financial products | 8,131 | 8,405 | 6,577 | ||||||||
Bank-owned life insurance | 3,949 | 3,928 | 3,981 | ||||||||
Mortgage banking income | 2,913 | 8,309 | 14,628 | ||||||||
Gain on sale of investment securities | 2,847 | 1,226 | 134 | ||||||||
Other income, net | 2,375 | 4,753 | 1,204 | ||||||||
Total noninterest income | 61,211 | 72,083 | 75,660 | ||||||||
Noninterest expense | |||||||||||
Compensation and employee benefits | 79,885 | 82,910 | 75,979 | ||||||||
Occupancy | 17,197 | 16,747 | 17,179 | ||||||||
Data processing | 11,690 | 10,952 | 10,098 | ||||||||
Services | 10,269 | 9,015 | 9,866 | ||||||||
Equipment | 6,564 | 7,295 | 7,105 | ||||||||
Office supplies, printing and postage | 6,089 | 4,233 | 3,870 | ||||||||
Marketing | 3,999 | 3,373 | 3,260 | ||||||||
FDIC insurance | 3,261 | 3,253 | 3,307 | ||||||||
Other expense | 20,990 | 21,726 | 21,679 | ||||||||
Total noninterest expense | 159,944 | 159,504 | 152,343 | ||||||||
Income before income taxes | 75,619 | 87,059 | 89,021 | ||||||||
Income taxes | 24,127 | 29,525 | 30,384 | ||||||||
Net income | $51,492 | $57,534 | $58,637 |
Bank_segment_HEI_only_Statemen1
Bank segment (HEI only) Statements of Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $33,630 | $48,286 | $41,894 | $46,400 | $39,486 | $48,707 | $41,061 | $34,152 | $170,210 | $163,406 | $140,548 |
Net unrealized gains (losses) on available-for sale investment securities: | |||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(3,856), $9,037 and ($631) for 2014, 2013 and 2012, respectively | 5,840 | -13,686 | 956 | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $1,132, $488 and $53 for 2014, 2013 and 2012, respectively | -1,715 | -738 | -81 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $6,164, ($10,450) and $5,240 for 2014, 2013 and 2012, respectively | -234,166 | 223,177 | -99,159 | ||||||||
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 $561, $1,187 and $684 for 2014, 2013 and 2012, respectively | 11,344 | 23,280 | 15,291 | ||||||||
Other comprehensive income (loss), net of taxes | -10,628 | 9,673 | -7,286 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | 157,692 | 171,189 | 131,372 | ||||||||
American Savings Bank (ASB) | |||||||||||
Net income | 51,492 | 57,534 | 58,637 | ||||||||
Net unrealized gains (losses) on available-for sale investment securities: | |||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(3,856), $9,037 and ($631) for 2014, 2013 and 2012, respectively | 5,840 | -13,686 | 956 | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $1,132, $488 and $53 for 2014, 2013 and 2012, respectively | -1,715 | -738 | -81 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $6,164, ($10,450) and $5,240 for 2014, 2013 and 2012, respectively | -9,336 | 15,826 | -7,936 | ||||||||
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 $561, $1,187 and $684 for 2014, 2013 and 2012, respectively | 850 | 1,797 | 1,036 | ||||||||
Other comprehensive income (loss), net of taxes | -4,361 | 3,199 | -6,025 | ||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $47,131 | $60,733 | $52,612 |
Bank_segment_HEI_only_Statemen2
Bank segment (HEI only) Statements of Comprehensive Income- Additional Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net unrealized gains (losses) on securities arising during the period, taxes | $3,856 | ($9,037) | $631 |
Less: reclassification adjustment for net realized gains included in net income, taxes | -1,132 | -488 | -53 |
Net gains (losses) arising during the period, tax benefits | -149,364 | 142,478 | -63,303 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 7,245 | 14,870 | 9,764 |
American Savings Bank (ASB) | |||
Net unrealized gains (losses) on securities arising during the period, taxes | 3,856 | -9,037 | 631 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 1,132 | 488 | 53 |
Net gains (losses) arising during the period, tax benefits | -6,164 | 10,450 | -5,240 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | ($561) | ($1,187) | ($684) |
Bank_segment_HEI_only_Balance_
Bank segment (HEI only) Balance Sheets Data (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $175,542 | $220,036 | $219,662 | $270,265 |
Available-for-sale investment securities, at fair value | 550,394 | 529,007 | ||
Stock in Federal Home Loan Bank of Seattle, at cost | 69,302 | 92,546 | ||
Allowance for loan losses | -45,618 | -40,116 | ||
Total loans, net | 4,389,033 | 4,110,113 | ||
Loans held for sale, at lower of cost or fair value | 8,424 | 5,302 | ||
Total other assets | 541,542 | 512,627 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 11,184,161 | 10,340,044 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other | 531,230 | 524,224 | ||
Total liabilities | 9,358,440 | 8,578,681 | ||
Commitments and contingencies (see bLitigationb below) | ||||
Retained earnings | 297,509 | 255,694 | ||
Net unrealized gains (losses) on securities | 462 | -3,663 | ||
Accumulated other comprehensive income (loss), net of taxes | -27,378 | -16,750 | -26,423 | -19,137 |
Total shareholders' equity | 1,791,428 | 1,727,070 | 1,593,865 | 1,528,706 |
Total liabilities and shareholders' equity | 11,184,161 | 10,340,044 | ||
Other assets | ||||
Total property, plant and equipment, net | 4,148,774 | 3,865,514 | ||
Total other assets | 541,542 | 512,627 | ||
Other liabilities | ||||
Total other liabilities | 531,230 | 524,224 | ||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and cash equivalents | 107,233 | 108,998 | ||
Interest-bearing deposits | 54,230 | 47,605 | ||
Available-for-sale investment securities, at fair value | 550,394 | 529,007 | ||
Stock in Federal Home Loan Bank of Seattle, at cost | 69,302 | 92,546 | ||
Loans receivable held for investment | 4,434,651 | 4,150,229 | ||
Allowance for loan losses | -45,618 | -40,116 | ||
Total loans, net | 4,389,033 | 4,110,113 | ||
Loans held for sale, at lower of cost or fair value | 8,424 | 5,302 | ||
Total other assets | 304,435 | 268,063 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 5,565,241 | 5,243,824 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Deposit liabilities-noninterest-bearing | 1,342,794 | 1,214,418 | ||
Deposit liabilities-interest-bearing | 3,280,621 | 3,158,059 | ||
Other borrowings | 290,656 | 244,514 | ||
Other | 116,527 | 105,679 | ||
Total liabilities | 5,030,598 | 4,722,670 | ||
Common stock | 1 | 1 | ||
Additional paid in capital | 338,411 | 336,053 | ||
Retained earnings | 212,789 | 197,297 | ||
Net unrealized gains (losses) on securities | 462 | -3,663 | ||
Retirement benefit plans | -17,020 | -8,534 | ||
Accumulated other comprehensive income (loss), net of taxes | -16,558 | -12,197 | ||
Total shareholders' equity | 534,643 | 521,154 | ||
Total liabilities and shareholders' equity | 5,565,241 | 5,243,824 | ||
Other assets | ||||
Bank-owned life insurance | 134,115 | 129,963 | ||
Total property, plant and equipment, net | 92,407 | 67,766 | ||
Prepaid expenses | 3,196 | 3,616 | ||
Accrued interest receivable | 13,632 | 13,133 | ||
Mortgage-servicing rights | 11,540 | 11,687 | ||
Low-income housing equity investments | 32,457 | 14,543 | ||
Real estate acquired in settlement of loans, net | 891 | 1,205 | ||
Other | 16,197 | 26,150 | ||
Total other assets | 304,435 | 268,063 | ||
Other liabilities | ||||
Accrued expenses | 37,880 | 19,989 | ||
Federal and state income taxes payable | 26,806 | 37,807 | ||
Cashier's checks | 20,509 | 21,110 | ||
Advance payments by borrowers | 9,652 | 9,647 | ||
Other | 21,680 | 17,126 | ||
Total other liabilities | $116,527 | $105,679 |
Bank_segment_HEI_only_Availabl
Bank segment (HEI only) Available For Sale Investment Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | issue | issue |
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | $549,627 | $535,090 |
Gross unrealized gains | 6,745 | 6,911 |
Gross unrealized losses | -5,978 | -12,994 |
Available-for-sale investment securities | 550,394 | 529,007 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | 12 | 49 |
Fair value, less than 12 months | 88,999 | 313,820 |
Gross unrealized losses, less than 12 months | -525 | -11,353 |
Number of issues, more than 12 months | 34 | 4 |
Fair value, 12 months or longer | 201,791 | 19,655 |
Gross unrealized losses, 12 months or longer | -5,453 | -1,641 |
U.S. Treasury and federal agency obligations | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 119,507 | |
Gross unrealized gains | 1,092 | |
Gross unrealized losses | -1,039 | |
Available-for-sale investment securities | 119,560 | |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | 6 | |
Fair value, less than 12 months | 41,970 | |
Gross unrealized losses, less than 12 months | -361 | |
Number of issues, more than 12 months | 5 | |
Fair value, 12 months or longer | 29,168 | |
Gross unrealized losses, 12 months or longer | -678 | |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 430,120 | 374,993 |
Gross unrealized gains | 5,653 | 4,911 |
Gross unrealized losses | -4,939 | -10,460 |
Available-for-sale investment securities | 430,834 | 369,444 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | 6 | 36 |
Fair value, less than 12 months | 47,029 | 228,543 |
Gross unrealized losses, less than 12 months | -164 | -8,819 |
Number of issues, more than 12 months | 29 | 4 |
Fair value, 12 months or longer | 172,623 | 19,655 |
Gross unrealized losses, 12 months or longer | -4,775 | -1,641 |
U.S. Treasury and federal agency obligations | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 83,193 | |
Gross unrealized gains | 174 | |
Gross unrealized losses | -2,394 | |
Available-for-sale investment securities | 80,973 | |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | 10 | |
Fair value, less than 12 months | 70,799 | |
Gross unrealized losses, less than 12 months | -2,394 | |
Number of issues, more than 12 months | 0 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Municipal bonds | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 76,904 | |
Gross unrealized gains | 1,826 | |
Gross unrealized losses | -140 | |
Available-for-sale investment securities | 78,590 | |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | 3 | |
Fair value, less than 12 months | 14,478 | |
Gross unrealized losses, less than 12 months | -140 | |
Number of issues, more than 12 months | 0 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | $0 |
Bank_segment_HEI_only_Investme
Bank segment (HEI only) Investment Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Amortized Cost | |||
Due in one year or less | $0 | ||
Due after one year through five years | 34,953,000 | ||
Due after five years through ten years | 47,131,000 | ||
Due after ten years | 37,423,000 | ||
Total amortized cost | 119,507,000 | ||
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 430,120,000 | ||
Total available-for-sale securities, amortized cost | 549,627,000 | 535,090,000 | |
Fair value | |||
Due in one year or less | 0 | ||
Due after one year through five years | 35,007,000 | ||
Due after five years through ten years | 47,885,000 | ||
Due after ten years | 36,668,000 | ||
Total fair value | 119,560,000 | ||
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 430,834,000 | ||
Estimated fair value | 550,394,000 | 529,007,000 | |
Gains (losses) from sales of available-for-sale investments | |||
Proceeds | 79,564,000 | 71,367,000 | 3,548,000 |
Available-for-sale securities pledged at carrying value | 88,600,000 | 87,100,000 | |
Available-for-sale securities, pledged at carrying value as collateral for securities sold under agreements to repurchase | 230,200,000 | 187,100,000 | |
Interest income from taxable and non-taxable investment securities | |||
Taxable | 11,666,000 | 11,474,000 | 12,309,000 |
Non-taxable | 279,000 | 1,621,000 | 1,513,000 |
Total | 11,945,000 | 13,095,000 | 13,822,000 |
Mortgage-related securities - FNMA, FHLMC and GNMA | |||
Gains (losses) from sales of available-for-sale investments | |||
Proceeds | 79,600,000 | 71,400,000 | 3,500,000 |
Gross gains | 2,800,000 | 1,200,000 | 100,000 |
Gross losses | 0 | 0 | 0 |
U.S. Treasury and federal agency obligations | |||
Amortized Cost | |||
Total available-for-sale securities, amortized cost | 83,193,000 | ||
Fair value | |||
Estimated fair value | 80,973,000 | ||
Municipal bonds | |||
Amortized Cost | |||
Total available-for-sale securities, amortized cost | 76,904,000 | ||
Fair value | |||
Estimated fair value | 78,590,000 | ||
FHLB Seattle | |||
Interest income from taxable and non-taxable investment securities | |||
Cost method investments | $69,300,000 | $92,500,000 |
Bank_segment_HEI_only_Loans_Re
Bank segment (HEI only) Loans Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | $4,440,989 | $4,158,953 |
Deferred loan fees, net and unamortized discounts | -6,338 | -8,724 |
Allowance for loan losses | -45,618 | -40,116 |
Total loans, net | 4,389,033 | 4,110,113 |
Real estate loans | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 3,526,576 | 3,266,843 |
Residential 1-4 family | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 2,044,205 | 2,006,007 |
Commercial real estate | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 531,917 | 440,443 |
Home equity line of credit | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 818,815 | 739,331 |
Residential land | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 16,240 | 16,176 |
Commercial construction | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 96,438 | 52,112 |
Residential construction | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 18,961 | 12,774 |
Commercial loans | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 791,757 | 783,388 |
Consumer loans | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | $122,656 | $108,722 |
Bank_segment_HEI_only_Details_
Bank segment (HEI only) (Details 7) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative instrument | |||
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% | ||
Real estate loans for investors | $1,400,000,000 | $1,400,000,000 | $1,300,000,000 |
Loans pledged as collateral to secure advances from the FHLB of Seattle | 1,900,000,000 | 1,700,000,000 | |
Loans to directors, executive directors, affiliates and any related interest of such individuals | 49,600,000 | 45,800,000 | |
Lines of credit closed and repaid, net of new loans and lines of credit to executive directors | 3,800,000 | ||
New loans and lines of credit to executive directors | 6,400,000 | ||
Lines of credit closed and repaid | 2,600,000 | ||
Loan balances, related interests of individuals who are directors | $46,200,000 | $40,500,000 |
Bank_segment_HEI_only_Allowanc
Bank segment (HEI only) Allowance For Loan Losses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | $40,116 | $41,985 | $37,906 |
Charge-offs | -5,550 | -8,202 | |
Recoveries | 4,926 | 4,826 | |
Provision | 6,126 | 1,507 | |
Valuation allowance, balance at the end of the period | 45,618 | 40,116 | 37,906 |
Ending balance: individually evaluated for impairment | 4,665 | 5,338 | |
Ending balance: collectively evaluated for impairment | 40,953 | 34,778 | |
Financing Receivables: | |||
Total financing receivables | 4,440,989 | 4,158,953 | |
Ending balance: individually evaluated for impairment | 49,846 | 57,921 | |
Ending balance: collectively evaluated for impairment | 4,391,143 | 4,101,032 | |
Residential 1-4 family | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 5,534 | 6,068 | |
Charge-offs | -987 | -1,162 | |
Recoveries | 1,180 | 1,881 | |
Provision | -1,065 | -1,253 | |
Valuation allowance, balance at the end of the period | 4,662 | 5,534 | |
Ending balance: individually evaluated for impairment | 951 | 642 | |
Ending balance: collectively evaluated for impairment | 3,711 | 4,892 | |
Financing Receivables: | |||
Total financing receivables | 2,044,205 | 2,006,007 | |
Ending balance: individually evaluated for impairment | 22,981 | 20,317 | |
Ending balance: collectively evaluated for impairment | 2,021,224 | 1,985,690 | |
Commercial real estate | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 5,059 | 2,965 | |
Provision | 3,895 | 2,094 | |
Valuation allowance, balance at the end of the period | 8,954 | 5,059 | |
Ending balance: individually evaluated for impairment | 1,845 | 1,118 | |
Ending balance: collectively evaluated for impairment | 7,109 | 3,941 | |
Financing Receivables: | |||
Total financing receivables | 531,917 | 440,443 | |
Ending balance: individually evaluated for impairment | 5,112 | 4,604 | |
Ending balance: collectively evaluated for impairment | 526,805 | 435,839 | |
Home equity line of credit | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 5,229 | 4,493 | |
Charge-offs | -196 | -782 | |
Recoveries | 752 | 358 | |
Provision | 1,197 | 1,160 | |
Valuation allowance, balance at the end of the period | 6,982 | 5,229 | |
Ending balance: individually evaluated for impairment | 46 | ||
Ending balance: collectively evaluated for impairment | 6,936 | 5,229 | |
Financing Receivables: | |||
Total financing receivables | 818,815 | 739,331 | |
Ending balance: individually evaluated for impairment | 779 | 1,179 | |
Ending balance: collectively evaluated for impairment | 818,036 | 738,152 | |
Residential land | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 1,817 | 4,275 | |
Charge-offs | -81 | -485 | |
Recoveries | 469 | 868 | |
Provision | -330 | -2,841 | |
Valuation allowance, balance at the end of the period | 1,875 | 1,817 | |
Ending balance: individually evaluated for impairment | 1,057 | 1,332 | |
Ending balance: collectively evaluated for impairment | 818 | 485 | |
Financing Receivables: | |||
Total financing receivables | 16,240 | 16,176 | |
Ending balance: individually evaluated for impairment | 7,850 | 10,577 | |
Ending balance: collectively evaluated for impairment | 8,390 | 5,599 | |
Commercial construction | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 2,397 | 2,023 | |
Provision | 3,074 | 374 | |
Valuation allowance, balance at the end of the period | 5,471 | 2,397 | |
Ending balance: collectively evaluated for impairment | 5,471 | 2,397 | |
Financing Receivables: | |||
Total financing receivables | 96,438 | 52,112 | |
Ending balance: collectively evaluated for impairment | 96,438 | 52,112 | |
Residential construction | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 19 | 9 | |
Provision | 9 | 10 | |
Valuation allowance, balance at the end of the period | 28 | 19 | |
Ending balance: collectively evaluated for impairment | 28 | 19 | |
Financing Receivables: | |||
Total financing receivables | 18,961 | 12,774 | |
Ending balance: collectively evaluated for impairment | 18,961 | 12,774 | |
Commercial loans | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 15,803 | 15,931 | |
Charge-offs | -1,872 | -3,056 | |
Recoveries | 1,636 | 1,089 | |
Provision | -1,550 | 1,839 | |
Valuation allowance, balance at the end of the period | 14,017 | 15,803 | |
Ending balance: individually evaluated for impairment | 760 | 2,246 | |
Ending balance: collectively evaluated for impairment | 13,257 | 13,557 | |
Financing Receivables: | |||
Total financing receivables | 791,757 | 783,388 | |
Ending balance: individually evaluated for impairment | 13,108 | 21,225 | |
Ending balance: collectively evaluated for impairment | 778,649 | 762,163 | |
Consumer loans | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 2,367 | 4,019 | |
Charge-offs | -2,414 | -2,717 | |
Recoveries | 889 | 630 | |
Provision | 2,787 | 435 | |
Valuation allowance, balance at the end of the period | 3,629 | 2,367 | |
Ending balance: individually evaluated for impairment | 6 | ||
Ending balance: collectively evaluated for impairment | 3,623 | 2,367 | |
Financing Receivables: | |||
Total financing receivables | 122,656 | 108,722 | |
Ending balance: individually evaluated for impairment | 16 | 19 | |
Ending balance: collectively evaluated for impairment | 122,640 | 108,703 | |
Unallocated | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 1,891 | 2,202 | |
Provision | -1,891 | -311 | |
Valuation allowance, balance at the end of the period | 0 | 1,891 | |
Ending balance: collectively evaluated for impairment | $0 | $1,891 |
Bank_segment_HEI_only_Changes_
Bank segment (HEI only) Changes in the Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | $40,116 | $41,985 | $37,906 |
Provision for loan losses | 6,126 | 1,507 | 12,883 |
Charge-offs | 624 | 3,376 | 8,804 |
Valuation allowance, balance at the end of the period | 45,618 | 40,116 | 41,985 |
Ratio of net charge-offs to average loans outstanding (as a percent) | 0.01% | 0.09% | 0.24% |
Real estate loans | |||
Allowance for loan losses: | |||
Charge-offs | -1,137 | -678 | 3,828 |
Other loans | |||
Allowance for loan losses: | |||
Charge-offs | $1,761 | $4,054 | $4,976 |
Bank_segment_HEI_only_Credit_R
Bank segment (HEI only) Credit Risk Profile by Internally Assigned Grade for Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit risk profile by internally assigned grade for loans | ||
Commercial real estate | $531,917 | $440,443 |
Commercial construction | 96,438 | 52,112 |
Commercial | 791,757 | 783,388 |
Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Commercial real estate | 493,105 | 375,217 |
Commercial construction | 79,312 | 52,112 |
Commercial | 743,334 | 703,053 |
Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Commercial real estate | 5,209 | 33,436 |
Commercial construction | 0 | 0 |
Commercial | 16,095 | 17,634 |
Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Commercial real estate | 33,603 | 28,020 |
Commercial construction | 17,126 | 0 |
Commercial | 31,665 | 59,663 |
Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Commercial real estate | 0 | 3,770 |
Commercial | 663 | 3,038 |
Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Commercial real estate | 0 | 0 |
Commercial | $0 | $0 |
Bank_segment_HEI_only_Credit_R1
Bank segment (HEI only) Credit Risk Profile Based on Payment Activity for Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | $8,993 | $5,781 |
60-89 days past due | 2,711 | 1,752 |
Greater than 90 days | 13,798 | 26,227 |
Total past due | 25,502 | 33,760 |
Current | 4,415,487 | 4,125,193 |
Total financing receivables | 4,440,989 | 4,158,953 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | 6,124 | 2,728 |
60-89 days past due | 1,732 | 622 |
Greater than 90 days | 12,632 | 15,411 |
Total past due | 20,488 | 18,761 |
Current | 2,023,717 | 1,987,246 |
Total financing receivables | 2,044,205 | 2,006,007 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | |
Greater than 90 days | 0 | 3,770 |
Total past due | 0 | 3,770 |
Current | 531,917 | 436,673 |
Total financing receivables | 531,917 | 440,443 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | 1,341 | 765 |
60-89 days past due | 501 | 312 |
Greater than 90 days | 194 | 960 |
Total past due | 2,036 | 2,037 |
Current | 816,779 | 737,294 |
Total financing receivables | 818,815 | 739,331 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential land | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | 0 | 184 |
60-89 days past due | 0 | 48 |
Greater than 90 days | 0 | 2,756 |
Total past due | 0 | 2,988 |
Current | 16,240 | 13,188 |
Total financing receivables | 16,240 | 16,176 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Current | 96,438 | 52,112 |
Total financing receivables | 96,438 | 52,112 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Current | 18,961 | 12,774 |
Total financing receivables | 18,961 | 12,774 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | 699 | 1,668 |
60-89 days past due | 145 | 612 |
Greater than 90 days | 569 | 3,026 |
Total past due | 1,413 | 5,306 |
Current | 790,344 | 778,082 |
Total financing receivables | 791,757 | 783,388 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
30-59 days past due | 829 | 436 |
60-89 days past due | 333 | 158 |
Greater than 90 days | 403 | 304 |
Total past due | 1,565 | 898 |
Current | 121,091 | 107,824 |
Total financing receivables | 122,656 | 108,722 |
Recorded Investment greater than 90 days and accruing | $0 | $0 |
Bank_segment_HEI_only_Credit_R2
Bank segment (HEI only) Credit Risk Profile Based on Aging Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $36,886 | $48,521 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 24,107 | 19,040 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 19,253 | 19,679 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 13,525 | 9,744 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 5,112 | 4,439 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 0 | 0 |
Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 1,087 | 2,060 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 480 | 171 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 720 | 3,161 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 7,130 | 7,476 |
Commercial construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 0 | 0 |
Residential construction | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 0 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 0 | 0 |
Commercial loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 10,053 | 18,781 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 2,972 | 1,649 |
Consumer loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 661 | 401 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | $0 | $0 |
Bank_segment_HEI_only_Carrying
Bank segment (HEI only) Carrying Amount of Impaired Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Recorded investment: | ||
With no related allowance recorded | $23,167 | $16,487 |
With an allowance recorded | 26,679 | 36,031 |
Recorded investment | 49,846 | 52,518 |
Unpaid principal balance: | ||
With no related allowance recorded | 28,890 | 21,717 |
With an allowance recorded | 27,119 | 39,185 |
Unpaid principal balance | 56,009 | 60,902 |
Related Allowance | 4,665 | 5,338 |
Average recorded investment: | ||
With no related allowance recorded | 17,592 | 24,631 |
With an allowance recorded | 30,882 | 34,679 |
Average recorded investment | 48,474 | 59,310 |
Interest income recognized: | ||
With no related allowance recorded | 442 | 882 |
With an allowance recorded | 1,825 | 1,072 |
Interest income recognized | 2,267 | 1,954 |
Residential 1-4 family | ||
Recorded investment: | ||
With no related allowance recorded | 11,654 | 9,708 |
With an allowance recorded | 11,327 | 6,216 |
Recorded investment | 22,981 | 15,924 |
Unpaid principal balance: | ||
With no related allowance recorded | 12,987 | 12,144 |
With an allowance recorded | 11,347 | 6,236 |
Unpaid principal balance | 24,334 | 18,380 |
Related Allowance | 951 | 642 |
Average recorded investment: | ||
With no related allowance recorded | 9,056 | 11,674 |
With an allowance recorded | 8,822 | 6,455 |
Average recorded investment | 17,878 | 18,129 |
Interest income recognized: | ||
With no related allowance recorded | 227 | 386 |
With an allowance recorded | 419 | 372 |
Interest income recognized | 646 | 758 |
Commercial real estate | ||
Recorded investment: | ||
With no related allowance recorded | 571 | 0 |
With an allowance recorded | 4,541 | 4,604 |
Recorded investment | 5,112 | 4,604 |
Unpaid principal balance: | ||
With no related allowance recorded | 626 | 0 |
With an allowance recorded | 4,541 | 4,686 |
Unpaid principal balance | 5,167 | 4,686 |
Related Allowance | 1,845 | 1,118 |
Average recorded investment: | ||
With no related allowance recorded | 194 | 802 |
With an allowance recorded | 3,415 | 5,745 |
Average recorded investment | 3,609 | 6,547 |
Interest income recognized: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 478 | 152 |
Interest income recognized | 478 | 152 |
Home equity line of credit | ||
Recorded investment: | ||
With no related allowance recorded | 363 | 672 |
With an allowance recorded | 416 | 0 |
Recorded investment | 779 | 672 |
Unpaid principal balance: | ||
With no related allowance recorded | 606 | 1,227 |
With an allowance recorded | 420 | 0 |
Unpaid principal balance | 1,026 | 1,227 |
Related Allowance | 46 | 0 |
Average recorded investment: | ||
With no related allowance recorded | 402 | 623 |
With an allowance recorded | 132 | 0 |
Average recorded investment | 534 | 623 |
Interest income recognized: | ||
With no related allowance recorded | 5 | 2 |
With an allowance recorded | 6 | 0 |
Interest income recognized | 11 | 2 |
Residential land | ||
Recorded investment: | ||
With no related allowance recorded | 2,344 | 2,622 |
With an allowance recorded | 5,506 | 7,452 |
Recorded investment | 7,850 | 10,074 |
Unpaid principal balance: | ||
With no related allowance recorded | 3,200 | 3,612 |
With an allowance recorded | 5,584 | 7,623 |
Unpaid principal balance | 8,784 | 11,235 |
Related Allowance | 1,057 | 1,332 |
Average recorded investment: | ||
With no related allowance recorded | 2,728 | 6,675 |
With an allowance recorded | 6,415 | 6,844 |
Average recorded investment | 9,143 | 13,519 |
Interest income recognized: | ||
With no related allowance recorded | 172 | 482 |
With an allowance recorded | 484 | 409 |
Interest income recognized | 656 | 891 |
Commercial construction | ||
Recorded investment: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Recorded investment | 0 | 0 |
Unpaid principal balance: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average recorded investment: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest income recognized: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Interest income recognized | 0 | 0 |
Residential construction | ||
Recorded investment: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Recorded investment | 0 | 0 |
Unpaid principal balance: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average recorded investment: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest income recognized: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Interest income recognized | 0 | 0 |
Commercial loans | ||
Recorded investment: | ||
With no related allowance recorded | 8,235 | 3,466 |
With an allowance recorded | 4,873 | 17,759 |
Recorded investment | 13,108 | 21,225 |
Unpaid principal balance: | ||
With no related allowance recorded | 11,471 | 4,715 |
With an allowance recorded | 5,211 | 20,640 |
Unpaid principal balance | 16,682 | 25,355 |
Related Allowance | 760 | 2,246 |
Average recorded investment: | ||
With no related allowance recorded | 5,204 | 4,837 |
With an allowance recorded | 12,089 | 15,635 |
Average recorded investment | 17,293 | 20,472 |
Interest income recognized: | ||
With no related allowance recorded | 38 | 12 |
With an allowance recorded | 438 | 139 |
Interest income recognized | 476 | 151 |
Consumer loans | ||
Recorded investment: | ||
With no related allowance recorded | 0 | 19 |
With an allowance recorded | 16 | 0 |
Recorded investment | 16 | 19 |
Unpaid principal balance: | ||
With no related allowance recorded | 0 | 19 |
With an allowance recorded | 16 | 0 |
Unpaid principal balance | 16 | 19 |
Related Allowance | 6 | 0 |
Average recorded investment: | ||
With no related allowance recorded | 8 | 20 |
With an allowance recorded | 9 | 0 |
Average recorded investment | 17 | 20 |
Interest income recognized: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Interest income recognized | $0 | $0 |
Bank_segment_HEI_only_TDR_Narr
Bank segment (HEI only) TDR Narrative (Details) (Land loans) | 12 Months Ended |
Dec. 31, 2014 | |
Troubled debt restructurings | |
Period of interest-only monthly payment term loan | 3 years |
Maximum | |
Troubled debt restructurings | |
Extension of maturity date | 5 years |
Bank_segment_HEI_only_Loan_Mod
Bank segment (HEI only) Loan Modifications (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
contract | contract | ||
Loan modifications determined to be troubled debt restructurings | |||
Commitments to Borrowers whose Loan Terms are Impaired or Modified under Troubled Debt Restructuring | $500,000 | ||
Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 71 | 66 | |
Pre-modification outstanding recorded investment | 19,313,000 | 20,374,000 | |
Post-modification outstanding recorded investment | 19,370,000 | 20,199,000 | |
Net increase in ALLL | 460,000 | 522,000 | |
Minimum period of payment default of loans determined to be TDRs | 90 days | 90 days | 90 days |
Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 2 | 3 | |
Recorded investment | 404,000 | 727,000 | |
Residential 1-4 family | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 38 | 34 | |
Pre-modification outstanding recorded investment | 10,680,000 | 8,876,000 | |
Post-modification outstanding recorded investment | 10,737,000 | 8,957,000 | |
Net increase in ALLL | 163,000 | 297,000 | |
Residential 1-4 family | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 1 | 0 | |
Recorded investment | 390,000 | 0 | |
Commercial real estate | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Pre-modification outstanding recorded investment | 0 | 0 | |
Post-modification outstanding recorded investment | 0 | 0 | |
Net increase in ALLL | 0 | 0 | |
Commercial real estate | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Recorded investment | 0 | 0 | |
Home equity line of credit | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 8 | 5 | |
Pre-modification outstanding recorded investment | 502,000 | 637,000 | |
Post-modification outstanding recorded investment | 502,000 | 390,000 | |
Net increase in ALLL | 42,000 | 0 | |
Home equity line of credit | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 1 | |
Recorded investment | 0 | 67,000 | |
Residential land | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 18 | 20 | |
Pre-modification outstanding recorded investment | 4,304,000 | 6,215,000 | |
Post-modification outstanding recorded investment | 4,304,000 | 6,206,000 | |
Net increase in ALLL | 242,000 | 131,000 | |
Residential land | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Recorded investment | 0 | 0 | |
Commercial construction | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Pre-modification outstanding recorded investment | 0 | 0 | |
Post-modification outstanding recorded investment | 0 | 0 | |
Net increase in ALLL | 0 | 0 | |
Commercial construction | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Recorded investment | 0 | 0 | |
Residential construction | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Pre-modification outstanding recorded investment | 0 | 0 | |
Post-modification outstanding recorded investment | 0 | 0 | |
Net increase in ALLL | 0 | 0 | |
Residential construction | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Recorded investment | 0 | 0 | |
Commercial loans | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 7 | 7 | |
Pre-modification outstanding recorded investment | 3,827,000 | 4,646,000 | |
Post-modification outstanding recorded investment | 3,827,000 | 4,646,000 | |
Net increase in ALLL | 13,000 | 94,000 | |
Commercial loans | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 1 | 2 | |
Recorded investment | 14,000 | 660,000 | |
Consumer loans | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Pre-modification outstanding recorded investment | 0 | 0 | |
Post-modification outstanding recorded investment | 0 | 0 | |
Net increase in ALLL | 0 | 0 | |
Consumer loans | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | 0 | 0 | |
Recorded investment | $0 | $0 |
Bank_segment_HEI_only_Mortgage
Bank segment (HEI only) Mortgage Servicing Rights- Narrative (Details) (American Savings Bank (ASB), USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans receivable | |||
Repurchased mortgage loans | $0.50 | $1.90 | $0.40 |
Mortgage servicing fees | 3.5 | 3.3 | 2.8 |
Residential loan | |||
Loans receivable | |||
Proceeds from sale of mortgage loans | 155 | 273.8 | 513 |
Gain on sale of mortgage loans | $2.90 | $8.30 | $14.60 |
Bank_segment_HEI_only_Mortgage1
Bank segment (HEI only) Mortgage Servicing Rights (Details) (American Savings Bank (ASB), Mortgage Servicing Rights (MSR), USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
American Savings Bank (ASB) | Mortgage Servicing Rights (MSR) | ||||
Loans receivable | ||||
Gross carrying amount | $27,185 | $25,644 | ||
Accumulated amortization | -15,436 | -13,706 | ||
Valuation allowance | -209 | -251 | -498 | -175 |
Net carrying amount | $11,540 | $11,687 | $10,818 |
Bank_segment_HEI_only_Mortgage2
Bank segment (HEI only) Mortgage Servicing Rights and Valuation Allowance Roll Forward (Details) (American Savings Bank (ASB), USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Mortgage Servicing Rights [Roll Forward] | |||
Ending balance | $11,540,000 | $11,687,000 | |
Mortgage Servicing Rights (MSR) | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 11,938,000 | 11,316,000 | 8,402,000 |
Amount capitalized | 1,637,000 | 2,611,000 | 4,845,000 |
Amortization | -1,731,000 | -1,802,000 | -1,750,000 |
Other-than-temporary impairment | -95,000 | -187,000 | -181,000 |
Ending balance | 11,749,000 | 11,938,000 | 11,316,000 |
Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning balance | 251,000 | 498,000 | 175,000 |
Provision (recovery) | 53,000 | -60,000 | 504,000 |
Other-than-temporary impairment | -95,000 | -187,000 | -181,000 |
Valuation allowance, ending balance | 209,000 | 251,000 | 498,000 |
Net carrying amount | 11,540,000 | 11,687,000 | 10,818,000 |
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | |||
2015 | 1,700,000 | ||
2016 | 1,500,000 | ||
2017 | 1,300,000 | ||
2018 | 1,100,000 | ||
2019 | $1,000,000 |
Bank_segment_HEI_only_Key_Assu
Bank segment (HEI only) Key Assumptions Used in Estimating the Fair Value of ASB's Mortgage Servicing Rights (Details) (Mortgage Servicing Rights (MSR), USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Prepayment rate: | ||
25 basis points adverse rate change | ($757) | ($732) |
50 basis points adverse change | -1,524 | -1,492 |
Discount rate: | ||
25 basis points adverse rate change | -140 | -154 |
50 basis points adverse change | -278 | -306 |
American Savings Bank (ASB) | ||
Loans receivable | ||
Unpaid principal balance | $1,391,030 | $1,357,003 |
Weighted average note rate | 4.07% | 4.07% |
Weighted average discount rate | 9.60% | 9.80% |
Weighted average prepayment speed | 9.50% | 8.60% |
Bank_segment_HEI_only_Deposit_
Bank segment (HEI only) Deposit Liabilities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-average stated rate | |||
Savings (as a percent) | 0.06% | 0.06% | |
Other checking, interest bearing (as a percent) | 0.02% | 0.02% | |
Money market (as a percent) | 0.12% | 0.13% | |
Term certificates (as a percent) | 0.83% | 0.80% | |
Total weighted-average stated rate (as a percent) | 0.11% | 0.11% | |
Deposit liabilities | |||
Savings | $1,923,062,000 | $1,826,907,000 | |
Other checking | |||
Interest-bearing | 768,787,000 | 721,700,000 | |
Noninterest-bearing | 665,005,000 | 643,628,000 | |
Commercial checking | 677,789,000 | 570,790,000 | |
Money market | 158,010,000 | 182,546,000 | |
Term certificates | 430,762,000 | 426,906,000 | |
Total Amount | 4,623,415,000 | 4,372,477,000 | |
Certificate accounts of $100,000 or more | 120,000,000 | 102,000,000 | |
Term certificates outstanding, scheduled maturities | |||
2015 | 255,896,000 | ||
2016 | 55,614,000 | ||
2017 | 44,315,000 | ||
2018 | 16,949,000 | ||
2019 | 54,979,000 | ||
Thereafter | 3,009,000 | ||
Total | 430,762,000 | ||
Interest expense on deposit liabilities by type of deposit | |||
Term certificates | 3,603,000 | 3,702,000 | 4,865,000 |
Savings | 1,134,000 | 1,052,000 | 1,128,000 |
Money market | 214,000 | 232,000 | 319,000 |
Interest-bearing checking | 126,000 | 106,000 | 111,000 |
Interest expense on deposit liabilities | $5,077,000 | $5,092,000 | $6,423,000 |
Bank_segment_HEI_only_Securiti
Bank segment (HEI only) Securities Sold Under Agreements to Repurchase, Including Related Collateral Received From or Pledged to Counterparties (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Securities sold under agreements to repurchase | |||
Gross amount of recognized liabilities, repurchase agreements | $191,000,000 | $145,000,000 | |
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 191,000,000 | 145,000,000 | |
Financial instruments | 191,000,000 | 145,000,000 | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 190,656,000 | 145,000,000 | 146,000,000 |
Average amount outstanding during the year | 155,000,000 | 147,000,000 | 173,000,000 |
Maximum amount outstanding as of any month-end | 195,000,000 | 151,000,000 | 189,000,000 |
Weighted-average interest rate as of end of the period (as a percent) | 1.45% | 1.75% | 1.74% |
Weighted-average interest rate during the year (as a percent) | 1.67% | 1.74% | 1.56% |
Weighted-average remaining days to maturity as of end of the period | 343 days | 367 days | 489 days |
Overnight | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 84,758,000 | ||
Weighted-average interest rate as of end of the period (as a percent) | 0.15% | ||
1 to 29 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 0 | ||
Weighted-average interest rate as of end of the period (as a percent) | 0.00% | ||
30 to 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 0 | ||
Weighted-average interest rate as of end of the period (as a percent) | 0.00% | ||
Over 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 105,898,000 | ||
Weighted-average interest rate as of end of the period (as a percent) | 2.50% | ||
Financial institution | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 50,000,000 | 51,000,000 | |
Financial instruments | 50,000,000 | 51,000,000 | |
Government entities | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 56,000,000 | ||
Financial instruments | 56,000,000 | ||
Commercial account holders | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 85,000,000 | 94,000,000 | |
Financial instruments | $85,000,000 | $94,000,000 |
Bank_segment_HEI_only_Securiti1
Bank segment (HEI only) Securities Sold Under Agreements to Repurchase (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Securities sold under agreements to repurchase | |||
Callable quarterly at par until maturity in 2016 | $50,300,000 | ||
Overnight | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 84,758,000 | ||
Weighted-average interest rate | 0.15% | ||
1 to 29 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 0 | ||
Weighted-average interest rate | 0.00% | ||
30 to 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 0 | ||
Weighted-average interest rate | 0.00% | ||
Over 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 105,898,000 | ||
Weighted-average interest rate | 2.50% | ||
Collateralized by mortgage-related securities and federal agency obligations | |||
Securities sold under agreements to repurchase | |||
Collateralized by mortgage-related securities and federal agency obligations at fair value plus accrued interest | 230,725,000 | ||
Collateralized by mortgage-related securities and federal agency obligations | Overnight | |||
Securities sold under agreements to repurchase | |||
Collateralized by mortgage-related securities and federal agency obligations at fair value plus accrued interest | 114,883,000 | ||
Collateralized by mortgage-related securities and federal agency obligations | 1 to 29 days | |||
Securities sold under agreements to repurchase | |||
Collateralized by mortgage-related securities and federal agency obligations at fair value plus accrued interest | 0 | ||
Collateralized by mortgage-related securities and federal agency obligations | 30 to 90 days | |||
Securities sold under agreements to repurchase | |||
Collateralized by mortgage-related securities and federal agency obligations at fair value plus accrued interest | 0 | ||
Collateralized by mortgage-related securities and federal agency obligations | Over 90 days | |||
Securities sold under agreements to repurchase | |||
Collateralized by mortgage-related securities and federal agency obligations at fair value plus accrued interest | 115,842,000 | ||
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $190,656,000 | $145,000,000 | $146,000,000 |
Weighted-average interest rate | 1.45% | 1.75% | 1.74% |
Bank_segment_HEI_only_FHLB_Adv
Bank segment (HEI only) FHLB Advances (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Weighted-average stated rate | |
2015 (as a percent) | 0.00% |
2016 (as a percent) | 0.00% |
2017 (as a percent) | 4.28% |
2018 (as a percent) | 1.95% |
2019 (as a percent) | 0.00% |
Thereafter (as a percent) | 0.00% |
Total weighted-average stated rate (as a percent) | 3.12% |
Due in | |
2015 | $0 |
2016 | 0 |
2017 | 50,000 |
2018 | 50,000 |
2019 | 0 |
Thereafter | 0 |
Total amount due | $100,000 |
Bank_segment_HEI_only_Addition
Bank segment (HEI only) Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Hawaiian Electric Industries, Inc. | Consolidated subsidiary | American Savings Bank (ASB) | Management and administrative services | |||
Revenue from related party | $2,300,000 | $2,300,000 | $1,900,000 |
Hawaiian Electric Industries, Inc. | Maximum | |||
Obligation to contribute additional capital under the Capital Maintenance Agreement | 65,100,000 | ||
Reduction in obligation to contribute additional capital under the Capital Maintenance Agreement | 28,300,000 | ||
American Savings Bank (ASB) | |||
Borrowing capacity | 1,200,000,000 | 1,100,000,000 | |
Cash dividends paid | $36,000,000 | $40,000,000 |
Bank_segment_HEI_only_Derivati
Bank segment (HEI only) Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | ($319) | $603 | $0 |
Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 398 | 629 | |
Liability derivative | 114 | 26 | |
Interest Rate Lock Commitments | |||
Derivative instrument | |||
Notional amount | 29,330 | 25,070 | |
Fair value | 390 | 464 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 393 | 488 | |
Liability derivative | 3 | 24 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | -74 | 464 | 0 |
Forward Contracts | |||
Derivative instrument | |||
Notional amount | 32,833 | 26,018 | |
Fair value | -106 | 139 | |
Forward Contracts | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 5 | 141 | |
Liability derivative | 111 | 2 | |
Forward Contracts | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | ($245) | $139 | $0 |
Off_Balance_Sheet_Arrangements
Off Balance Sheet Arrangements and Additional Information (Detail) (USD $) | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum | ||
Guarantees | ||
Assessment rate for financial institutions in the lowest risk category (as a percent) | 0.03% | |
Assessment rate for financial institutions in the highest risk category (as a percent) | 0.30% | |
Maximum | ||
Guarantees | ||
Assessment rate for financial institutions in the lowest risk category (as a percent) | 0.09% | |
Assessment rate for financial institutions in the highest risk category (as a percent) | 0.45% | |
American Savings Bank (ASB) | ||
Guarantees | ||
FDIC insurance assessment | $3,000,000 | $2,900,000 |
Indemnification Agreement | American Savings Bank (ASB) | ||
Guarantees | ||
Accrued indemnification litigation obligation | 1,100,000 | |
Home equity line of credit | ||
Guarantees | ||
Unused Commitments to Extend Credit | 1,089,633,000 | 1,011,334,000 |
Commercial and commercial real estate | ||
Guarantees | ||
Unused Commitments to Extend Credit | 526,133,000 | 527,987,000 |
Consumer loans | ||
Guarantees | ||
Unused Commitments to Extend Credit | 56,312,000 | 58,080,000 |
Residential 1-4 family | ||
Guarantees | ||
Unused Commitments to Extend Credit | 20,524,000 | 14,241,000 |
Commercial and financial standby letters of credit [Member] | ||
Guarantees | ||
Unused Commitments to Extend Credit | 20,082,000 | 15,747,000 |
March 2011 Class Action Lawsuit | ||
Guarantees | ||
Tentative settlement amount | 2,000,000 | |
Loss contingency reserve | 2,000,000 | |
Reserve for Off-balance Sheet Activities [Member] | ||
Guarantees | ||
Unused Commitments to Extend Credit | $1,712,684,000 | $1,627,389,000 |
Unconsolidated_variable_intere2
Unconsolidated variable interest entities (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2004 | 31-May-91 | Mar. 31, 2004 | |
entity | MW | MW | security | |||
agreement | ||||||
Power purchase agreement | ||||||
Number of power purchase agreements (PPAs) | 7 | |||||
Number of largest IPP's declining to provide financial information to determine primary beneficiary status | 3 | |||||
Accounts payable | $186,425,000 | $212,331,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 722,008,000 | 710,681,000 | 724,240,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii, Inc. (AES Hawaii) | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 145,000,000 | 134,000,000 | 146,000,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Kalaeloa Partners, L.P. (Kalaeloa) | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 279,000,000 | 301,000,000 | 310,000,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Hamakua Energy Partners, L.P. (HEP) | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 51,000,000 | 51,000,000 | 65,000,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | HPOWER | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 66,000,000 | 61,000,000 | 65,000,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Other IPPs | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 181,000,000 | 164,000,000 | 138,000,000 | |||
HECO | ||||||
Power purchase agreement | ||||||
Number of power purchase agreements (PPAs) | 7 | |||||
Maximum capacity of small power production facilities (in kilowatts) | 100 | |||||
Percentage of power purchase from AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and HPOWER | 90.00% | |||||
Purchases from IPPs | 537,821,000 | 527,839,000 | 540,802,000 | |||
Number of entities owning wind farms not required to be consolidated as VIE's | 2 | |||||
Minimum potential number of IPP entities consolidated into company in the future | 1 | |||||
HECO | Kalaeloa Partners, L.P. (Kalaeloa) | ||||||
Power purchase agreement | ||||||
Power purchase capacity (in megawatts) | 180 | |||||
Number of years entity entered under power purchase agreement | 25 years | |||||
Power purchase capacity that Increases from initial capacity (in megawatts) | 208 | |||||
Accounts payable | 13,000,000 | |||||
Hawaii Electric Light Company, Inc. (HELCO) | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 123,226,000 | 128,368,000 | 145,386,000 | |||
Maui Electric Company, Limited (MECO) | ||||||
Power purchase agreement | ||||||
Purchases from IPPs | 60,961,000 | 54,474,000 | 38,052,000 | |||
HECO Capital Trust III | ||||||
Unconsolidated variable interest entities | ||||||
Investment in 2004 Debentures | 51,500,000 | |||||
Interest income | 3,400,000 | |||||
HECO Capital Trust III | HECO | ||||||
Unconsolidated variable interest entities | ||||||
Principal amount of 2004 Debentures | 31,500,000 | |||||
HECO Capital Trust III | HECO | 2004 Trust Preferred Securities | ||||||
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 | |||||
Balance of Trust Securities | 50,000,000 | |||||
Dividend distributions on Trust Preferred Securities | 3,300,000 | |||||
HECO Capital Trust III | HECO | Trust Common Securities | ||||||
Unconsolidated variable interest entities | ||||||
Aggregate Liquidation preference | 1,500,000 | |||||
Balance of Trust Securities | 1,500,000 | |||||
Common dividend | 100,000 | |||||
HECO Capital Trust III | Hawaii Electric Light Company, Inc. (HELCO) | ||||||
Unconsolidated variable interest entities | ||||||
Principal amount of 2004 Debentures | 10,000,000 | |||||
HECO Capital Trust III | Maui Electric Company, Limited (MECO) | ||||||
Unconsolidated variable interest entities | ||||||
Principal amount of 2004 Debentures | $10,000,000 |
Shortterm_borrowings_Details
Short-term borrowings (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2014 | Apr. 01, 2014 | |
Institution | ||||
Short-term borrowings | ||||
Outstanding amount | 118,972,000 | $105,482,000 | ||
HEI | ||||
Credit agreements | ||||
Number of financial institutions | 9 | |||
Line of credit facility, reference rate | Adjusted LIBO Rate | |||
Actual capitalization ratio (as a percent) | 19.00% | |||
HEI | Maximum | ||||
Credit agreements | ||||
Capitalization ratio required to be maintained as per the debt covenant (as a percent) | 50.00% | |||
Hawaiian Electric Company, Inc (HECO) | ||||
Credit agreements | ||||
Number of financial institutions | 9 | |||
Ratio of consolidated subsidiary debt to total consolidated capitalization required to be maintained as per the debt covenant (as a percent) | 65.00% | |||
Ratio of consolidated capitalization required to be maintained as per the debt covenant (as a percent) | 35.00% | |||
Actual ratio of consolidated debt to total consolidated capitalization (as a percent) | 58.00% | |||
HELCO | ||||
Credit agreements | ||||
Actual ratio of consolidated subsidiary debt to total consolidated capitalization (as a percent) | 41.00% | |||
MECO | ||||
Credit agreements | ||||
Actual ratio of consolidated subsidiary debt to total consolidated capitalization (as a percent) | 42.00% | |||
Commercial paper | HEI | ||||
Short-term borrowings | ||||
Outstanding amount | 119,000,000 | 105,000,000 | ||
Weighted-average interest rate (as a percent) | 0.70% | 0.70% | ||
Line of credit facility | HEI | ||||
Short-term borrowings | ||||
Maximum capacity under syndicated credit facilities | 150,000,000 | 125,000,000 | ||
Credit agreements | ||||
Annual fees on undrawn commitments, basis points (as a percent) | 0.20% | |||
Line of credit facility | Hawaiian Electric Company, Inc (HECO) | ||||
Short-term borrowings | ||||
Maximum capacity under syndicated credit facilities | 200,000,000 | $175,000,000 | ||
Credit agreements | ||||
Annual fees on undrawn commitments, basis points (as a percent) | 0.18% | |||
Line of credit facility | Adjusted LIBO Rate | HEI | ||||
Credit agreements | ||||
Line of credit facility basis point spread (as a percent) | 1.38% | |||
Line of credit facility | Adjusted LIBO Rate | Hawaiian Electric Company, Inc (HECO) | ||||
Credit agreements | ||||
Line of credit facility basis point spread (as a percent) | 1.25% |
Longterm_debt_Details
Long-term debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 5-May-14 | 2-May-14 | |
Long-term debt | |||||
Long-term debt | $1,506,546,000 | $1,492,945,000 | |||
Aggregate principal payments | |||||
2015 | 0 | ||||
2016 | 200,000,000 | ||||
2017 | 0 | ||||
2018 | 50,000,000 | ||||
2019 | 0 | ||||
Proceeds from issuance of long-term debt | 125,000,000 | 286,000,000 | 457,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Aggregate principal payments | |||||
2015 | 0 | ||||
2016 | 0 | ||||
2017 | 0 | ||||
2018 | 50,000,000 | ||||
2019 | 0 | ||||
Proceeds from issuance of long-term debt | 0 | 236,000,000 | 457,000,000 | ||
Special purpose revenue bonds issued on behalf of electric utility subsidiaries | |||||
Long-term debt | |||||
Long-term debt | 1,206,546,000 | 1,217,945,000 | |||
HEI term loan LIBOR plus .90% due 2016 | |||||
Long-term debt | |||||
Long-term debt | 125,000,000 | 0 | |||
HEI term loan LIBOR plus .90% due 2016 | LIBOR | |||||
Long-term debt | |||||
Line of credit facility basis point spread (as a percent) | 0.90% | ||||
HEI medium-term note 6.51%, due 2014 | |||||
Long-term debt | |||||
Long-term debt | 0 | 100,000,000 | |||
Debt instrument, stated interest rate (as a percent) | 6.51% | 6.51% | |||
HEI medium-term note 6.51%, due 2014 | Medium-term note | |||||
Long-term debt | |||||
Debt instrument, stated interest rate (as a percent) | 6.51% | ||||
Aggregate principal payments | |||||
Refinancing of unsecured debt payable | 100,000,000 | ||||
HEI senior note 4.41%, due 2016 | |||||
Long-term debt | |||||
Long-term debt | 75,000,000 | 75,000,000 | |||
Debt instrument, stated interest rate (as a percent) | 4.41% | 4.41% | |||
HEI senior note 5.67%, due 2021 | |||||
Long-term debt | |||||
Long-term debt | 50,000,000 | 50,000,000 | |||
Debt instrument, stated interest rate (as a percent) | 5.67% | 5.67% | |||
HEI senior note 3.99%, due 2023 | |||||
Long-term debt | |||||
Long-term debt | 50,000,000 | 50,000,000 | |||
Debt instrument, stated interest rate (as a percent) | 3.99% | 3.99% | |||
Loans payable | Eurodollar term loan | |||||
Aggregate principal payments | |||||
Proceeds from issuance of long-term debt | $125,000,000 | ||||
Term Of Loan | 2 years | ||||
Loans payable | Eurodollar term loan | Minimum | |||||
Aggregate principal payments | |||||
Debt Instrument, Interest Rate, Effective Percentage | 1.12% | ||||
Loans payable | Eurodollar term loan | Maximum | |||||
Aggregate principal payments | |||||
Debt Instrument, Interest Rate, Effective Percentage | 1.14% |
Shareholders_equity_Additional
Shareholders' equity Additional Information (Details) (USD $) | Dec. 31, 2014 | Jul. 14, 2014 | Dec. 19, 2013 | Mar. 20, 2013 | Mar. 19, 2013 |
In Millions, except Share data, unless otherwise specified | |||||
Equity [Abstract] | |||||
Common stock reserved for future issuance | 18,372,187 | ||||
Common stock reserved for future issuance in equity forward transaction | 4,700,000 | ||||
Public offering related to equity forward transaction (in shares) | 6,100,000 | ||||
Sale of common stock related to equity forward transaction (in dollars per share) | $26.75 | ||||
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 | ||||
Underwriting discount (in dollars per share) | $1.00 | ||||
Forward sale price (in dollars per share) | $22.63 | $25.75 | |||
Initial fair value (in dollars per share) | $0 | ||||
Delivery of net shares on settlement | 1,500,000 | 1,000,000 | 1,300,000 | ||
Delivery of cash on settlement | $51 | $23.90 | $32.10 | ||
Underwriting discount included in delivery of cash | 5 | 1 | 1.3 | ||
Cash in exchange of physical delivery of shares on settlement | $106 |
Shareholders_equity_Accumulate
Shareholders' equity Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($16,750) | ($26,423) | ($19,137) |
Current period other comprehensive income (loss) | -10,628 | 9,673 | -7,286 |
Ending balance | -27,378 | -16,750 | -26,423 |
Net unrealized gains (losses) on securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -3,663 | 10,761 | 9,886 |
Current period other comprehensive income (loss) | 4,125 | -14,424 | 875 |
Ending balance | 462 | -3,663 | 10,761 |
Unrealized losses on derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -525 | -760 | -996 |
Current period other comprehensive income (loss) | 236 | 235 | 236 |
Ending balance | -289 | -525 | -760 |
Retirement benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -12,562 | -36,424 | -28,027 |
Current period other comprehensive income (loss) | -14,989 | 23,862 | -8,397 |
Ending balance | -27,551 | -12,562 | -36,424 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 608 | -970 | -32 |
Current period other comprehensive income (loss) | -563 | 1,578 | -938 |
Ending balance | $45 | $608 | ($970) |
Shareholders_equity_Reclassifi
Shareholders' equity Reclassification Out Of AOCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest rate contracts (settled in 2011) | $76,352 | $75,479 | $78,151 |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | -11,344 | -23,280 | -15,291 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | -207,833 | 222,595 | -75,471 |
Amount reclassified from AOCI | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | 217,698 | -199,818 | 90,917 |
Amount reclassified from AOCI | Unrealized losses on derivatives | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains on securities | -1,715 | -738 | -81 |
Interest rate contracts (settled in 2011) | 236 | 235 | 236 |
Amount reclassified from AOCI | Retirement benefit plans | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 11,344 | 23,280 | 15,291 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 207,833 | -222,595 | 75,471 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | -10,212 | -20,694 | -13,673 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | -207,833 | 222,595 | -75,471 |
Hawaiian Electric Company, Inc. and Subsidiaries | Amount reclassified from AOCI | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | 218,045 | -201,901 | 89,144 |
Hawaiian Electric Company, Inc. and Subsidiaries | Amount reclassified from AOCI | Retirement benefit plans | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | 10,212 | 20,694 | 13,673 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | $207,833 | ($222,595) | $75,471 |
Retirement_benefits_Additional
Retirement benefits Additional Information (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Vested percentage of interest of each affected participant after participating employer terminates participation | 100.00% | |||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | 5 years | |||
Executive life and nonqualified pension plan expenses | $1,200,000 | $1,200,000 | ||
Regulatory asset charges pretax | 340,000,000 | -364,000,000 | ||
Fair value of plan assets, valuation difference amortized in first year (as a percent) | 0.00% | |||
Fair value of plan assets, valuation difference amortized in two to five years (as a percent) | 25.00% | |||
Number of past years for adding or subtracting the unamortized differences from fair value | 4 years | |||
Percentage of range around fair value | 15.00% | |||
Expected cash funding for qualified defined benefit plans | ||||
Defined contribution plan, expenses recognized | 5,000,000 | 5,000,000 | 4,000,000 | |
Cash contributions by the employer to defined contribution plan | 5,000,000 | 4,000,000 | 4,000,000 | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold percentage around fair value | 85.00% | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold percentage around fair value | 115.00% | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Regulatory assets | 833,843,000 | 506,186,000 | ||
Retirement benefits expense | 32,000,000 | 30,000,000 | 32,000,000 | |
Expected cash funding for qualified defined benefit plans | ||||
Maximum percentage of participant deferrals eligible for Employer contribution match, towards defined contribution plan | 6.00% | |||
Employer's additional matching contribution on employee deferrals (as a percent) | 50.00% | |||
Defined contribution plan, expenses recognized | 900,000 | 600,000 | ||
American Savings Bank (ASB) | ||||
Expected cash funding for qualified defined benefit plans | ||||
Maximum percentage of participant deferrals eligible for Employer contribution match, towards defined contribution plan | 4.00% | |||
Hawaii Electric Light Company, Inc. (HELCO) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Regulatory assets | 107,454,000 | 64,552,000 | 12,800,000 | |
Regulatory assets recovery period | 5 years | |||
Hawaiian Electric Company, Inc (HECO) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Regulatory assets | 623,784,000 | 381,346,000 | ||
Value of plan assets requiring more than minimum level contributions required by law | 0 | |||
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets (as a percent) | 7.75% | |||
Discount rate (as a percent) | 4.22% | 5.09% | 4.13% | |
Pension expense | 32,000,000 | 34,000,000 | 35,000,000 | |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | ||||
Aggregate accumulated benefit obligations | 1,500,000,000 | 1,200,000,000 | ||
Plan assets | 1,200,000,000 | 1,100,000,000 | ||
Defined benefit plans with benefit obligations in excess of plan assets | ||||
Aggregate projected benefit obligations | 1,700,000,000 | 1,400,000,000 | ||
Plan assets | 1,200,000,000 | 1,100,000,000 | ||
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in 2015 | 85,000,000 | 0 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension expense | 31,000,000 | 30,000,000 | 32,000,000 | |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | ||||
Aggregate accumulated benefit obligations | 1,500,000,000 | 1,200,000,000 | ||
Plan assets | 1,100,000,000 | 1,100,000,000 | ||
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in 2015 | 83,000,000 | |||
Other benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate (as a percent) | 4.17% | 5.03% | 4.07% | |
Assumed health care trend rate for medical in next fiscal year (as a percent) | 7.25% | 7.50% | ||
Assumed health care trend rate for grading down in 2024 and thereafter (as a percent) | 5.00% | 5.00% | ||
Assumed health care trend rate for dental in next fiscal year (as a percent) | 5.00% | 5.00% | ||
Assumed health care trend rate for vision in next fiscal year (as a percent) | 4.00% | 4.00% | ||
Age threshold health care trend rates are adjusted | 65 years | |||
Percentage by which medical trend for post-65 is higher than pre-65, 2014 | 4.00% | |||
Percentage by which medical trend for post-65 is higher than pre-65, 2015 | 3.00% | |||
Postretirement benefits other than pension expense | 1,200,000 | 400,000 | 1,000,000 | |
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased total service and interest cost | 200,000 | |||
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased the accumulated postretirement benefit obligation (APBO) | 3,800,000 | |||
Effect of one-percentage-point decrease that would have reduced total service and interest cost | 300,000 | |||
Effect of one-percentage-point decrease that would have reduced APBO | 4,600,000 | |||
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | ||||
Aggregate accumulated benefit obligations | 400,000 | |||
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in 2015 | 500,000 | |||
2015 | 76,000,000 | |||
2016 | 79,000,000 | |||
2017 | 83,000,000 | |||
2018 | 87,000,000 | |||
2019 | 91,000,000 | |||
2020 through 2024 | 520,000,000 | |||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement benefits other than pension expense | 1,000,000 | 0 | 400,000 | |
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased total service and interest cost | 200,000 | |||
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased the accumulated postretirement benefit obligation (APBO) | 3,700,000 | |||
Effect of one-percentage-point decrease that would have reduced total service and interest cost | 300,000 | |||
Effect of one-percentage-point decrease that would have reduced APBO | 4,500,000 | |||
Expected cash funding for qualified defined benefit plans | ||||
Estimate of contributions to postretirement benefit plans in 2015 | 500,000 | |||
2015 | 70,000,000 | |||
2016 | 73,000,000 | |||
2017 | 76,000,000 | |||
2018 | 79,000,000 | |||
2019 | 83,000,000 | |||
2020 through 2024 | $476,000,000 |
Retirement_benefits_Changes_in
Retirement benefits Changes in Projected Benefit Obligations and Fair Value of Plan Assets and Amounts Recognized in OCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | $1,446,291 | $1,590,304 | |
Service cost | 49,264 | 56,405 | 43,221 |
Interest cost | 72,202 | 64,788 | 67,480 |
Actuarial losses (gains) | 342,446 | -203,302 | |
Benefits paid and expenses | -62,975 | -61,904 | |
Benefit obligation, balance at the end of the period | 1,847,228 | 1,446,291 | 1,590,304 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 1,186,669 | 971,314 | |
Actual return on plan assets | 81,123 | 194,130 | |
Employer contributions | 60,103 | 82,083 | |
Benefits paid and expenses | -61,835 | -60,858 | |
Fair value of plan assets, balance at the end of the period | 1,266,060 | 1,186,669 | 971,314 |
Accrued benefit asset (liability), balance | -581,168 | -259,622 | |
Other assets | 12,800 | 24,948 | |
Defined benefit pension and other postretirement benefit plans liability | -593,968 | -284,570 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 317,544 | 680,781 | |
Recognized during year - net recognized transition obligation | 0 | 0 | |
Recognized during year - prior service credit (cost) | -88 | 97 | |
Recognized during year - net actuarial losses | -20,304 | -38,438 | |
Occurring during year - net actuarial losses (gains) | 342,679 | -324,896 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 639,831 | 317,544 | 680,781 |
Cumulative impact of PUC D&Os | -592,291 | -294,266 | |
AOCI debit/(credit), balance at end of the period | 47,540 | 23,278 | |
Net actuarial loss (gain) | 640,015 | 317,639 | |
Prior service gain | -184 | -95 | |
Income taxes | -18,742 | -9,180 | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 28,798 | 14,098 | |
Other benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 176,099 | 194,135 | |
Service cost | 3,490 | 4,306 | 4,211 |
Interest cost | 8,550 | 7,569 | 9,009 |
Actuarial losses (gains) | 39,098 | -21,743 | |
Benefits paid and expenses | -8,028 | -8,168 | |
Benefit obligation, balance at the end of the period | 219,209 | 176,099 | 194,135 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 179,330 | 156,731 | |
Actual return on plan assets | 9,149 | 29,164 | |
Employer contributions | -257 | 954 | |
Benefits paid and expenses | -7,890 | -7,519 | |
Fair value of plan assets, balance at the end of the period | 180,332 | 179,330 | 156,731 |
Accrued benefit asset (liability), balance | -38,877 | 3,231 | |
Other assets | 0 | 7,200 | |
Defined benefit pension and other postretirement benefit plans liability | -38,877 | -3,969 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | -21,722 | 18,846 | |
Recognized during year - net recognized transition obligation | 0 | 0 | |
Recognized during year - prior service credit (cost) | 1,793 | 1,793 | |
Recognized during year - net actuarial losses | 11 | -1,602 | |
Occurring during year - net actuarial losses (gains) | 40,851 | -40,759 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 20,933 | -21,722 | 18,846 |
Cumulative impact of PUC D&Os | -22,975 | 19,206 | |
AOCI debit/(credit), balance at end of the period | -2,042 | -2,516 | |
Net actuarial loss (gain) | 35,022 | -5,840 | |
Prior service gain | -14,089 | -15,882 | |
Income taxes | 795 | 980 | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | -1,247 | -1,536 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined benefit pension and other postretirement benefit plans liability | -595,395 | -262,162 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 1,320,810 | 1,449,445 | |
Service cost | 47,597 | 54,482 | 41,603 |
Interest cost | 65,979 | 59,119 | 61,453 |
Actuarial losses (gains) | 314,210 | -185,185 | |
Benefits paid and expenses | -57,819 | -57,051 | |
Benefit obligation, balance at the end of the period | 1,690,777 | 1,320,810 | 1,449,445 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 1,058,260 | 861,778 | |
Actual return on plan assets | 69,242 | 172,822 | |
Employer contributions | 58,948 | 80,325 | |
Benefits paid and expenses | -57,445 | -56,665 | |
Fair value of plan assets, balance at the end of the period | 1,129,005 | 1,058,260 | 861,778 |
Accrued benefit asset (liability), balance | -561,772 | -262,550 | |
Other assets | 0 | 0 | |
Other liabilities (short-term) | -421 | -388 | |
Defined benefit pension and other postretirement benefit plans liability | -561,351 | -262,162 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | 295,973 | 623,588 | |
Recognized during year - net recognized transition obligation | 0 | 0 | |
Recognized during year - prior service credit (cost) | -62 | 464 | |
Recognized during year - net actuarial losses | -18,459 | -34,597 | |
Occurring during year - net actuarial losses (gains) | 317,651 | -293,482 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 595,103 | 295,973 | 623,588 |
Cumulative impact of PUC D&Os | -592,291 | -294,266 | |
AOCI debit/(credit), balance at end of the period | 2,812 | 1,707 | |
Net actuarial loss (gain) | 595,017 | 295,825 | |
Prior service gain | 86 | 148 | |
Income taxes | -1,094 | -664 | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 1,718 | 1,043 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, balance at the beginning of the period | 169,579 | 187,110 | |
Service cost | 3,392 | 4,163 | 4,014 |
Interest cost | 8,234 | 7,288 | 8,703 |
Actuarial losses (gains) | 38,488 | -20,900 | |
Benefits paid and expenses | -7,933 | -8,082 | |
Benefit obligation, balance at the end of the period | 211,760 | 169,579 | 187,110 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, balance at the beginning of the period | 176,291 | 154,186 | |
Actual return on plan assets | 9,036 | 28,700 | |
Employer contributions | -274 | 839 | |
Benefits paid and expenses | -7,797 | -7,434 | |
Fair value of plan assets, balance at the end of the period | 177,256 | 176,291 | 154,186 |
Accrued benefit asset (liability), balance | -34,504 | 6,712 | |
Other assets | 0 | 7,200 | |
Other liabilities (short-term) | -460 | -488 | |
Defined benefit pension and other postretirement benefit plans liability | -34,044 | 0 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income [Roll Forward] | |||
AOCI debit/(credit), balance at beginning of the period (excluding impact of PUC D&Os) | -21,907 | 17,432 | |
Recognized during year - net recognized transition obligation | 0 | 0 | |
Recognized during year - prior service credit (cost) | 1,804 | 1,803 | |
Recognized during year - net actuarial losses | 0 | -1,544 | |
Occurring during year - net actuarial losses (gains) | 40,193 | -39,598 | |
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 20,090 | -21,907 | 17,432 |
Cumulative impact of PUC D&Os | -22,975 | 19,206 | |
AOCI debit/(credit), balance at end of the period | -2,885 | -2,701 | |
Net actuarial loss (gain) | 34,192 | -6,001 | |
Prior service gain | -14,102 | -15,906 | |
Income taxes | 1,122 | 1,050 | |
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | ($1,763) | ($1,651) |
Retirement_benefits_Weighted_A
Retirement benefits Weighted Average Asset Allocation of Defined Benefit Retirement Plans and Weighted Average Assumptions(Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 100.00% | 100.00% | |
Asset category, Target | |||
Target (as a percent) | 100.00% | ||
Benefit obligation | |||
Discount rate (as a percent) | 4.22% | 5.09% | 4.13% |
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 3.50% |
Net periodic benefit cost (years ended) | |||
Discount rate (as a percent) | 5.09% | 4.13% | 5.19% |
Expected return on plan assets (as a percent) | 7.75% | 7.75% | 7.75% |
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 3.50% |
Pension benefits | Equity securities managers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 73.00% | 73.00% | |
Asset category, Target | |||
Target (as a percent) | 70.00% | ||
Target minimum range (as a percent) | 65.00% | ||
Target maximum range (as a percent) | 75.00% | ||
Pension benefits | Fixed income securities managers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 27.00% | 27.00% | |
Asset category, Target | |||
Target (as a percent) | 30.00% | ||
Target minimum range (as a percent) | 25.00% | ||
Target maximum range (as a percent) | 35.00% | ||
Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 100.00% | 100.00% | |
Asset category, Target | |||
Target (as a percent) | 100.00% | ||
Benefit obligation | |||
Discount rate (as a percent) | 4.17% | 5.03% | 4.07% |
Net periodic benefit cost (years ended) | |||
Discount rate (as a percent) | 5.03% | 4.07% | 4.90% |
Expected return on plan assets (as a percent) | 7.75% | 7.75% | 7.75% |
Other benefits | Equity securities managers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 72.00% | 74.00% | |
Asset category, Target | |||
Target (as a percent) | 70.00% | ||
Target minimum range (as a percent) | 65.00% | ||
Target maximum range (as a percent) | 75.00% | ||
Other benefits | Fixed income securities managers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 28.00% | 26.00% | |
Asset category, Target | |||
Target (as a percent) | 30.00% | ||
Target minimum range (as a percent) | 25.00% | ||
Target maximum range (as a percent) | 35.00% |
Retirement_benefits_Components
Retirement benefits Components of NPBC (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension benefits | |||
Defined benefit plans | |||
Service cost | $49,264,000 | $56,405,000 | $43,221,000 |
Interest cost | 72,202,000 | 64,788,000 | 67,480,000 |
Expected return on plan assets | -81,355,000 | -72,537,000 | -71,183,000 |
Amortization of net transition obligation | 0 | 0 | 1,000 |
Amortization of net prior service (gain) cost | 88,000 | -97,000 | -325,000 |
Amortization of net actuarial loss (gain) | 20,304,000 | 38,438,000 | 25,675,000 |
Net periodic benefit cost | 60,503,000 | 86,997,000 | 64,869,000 |
Impact of PUC D&Os | -13,324,000 | -38,104,000 | -15,754,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 47,179,000 | 48,893,000 | 49,115,000 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | 0 | ||
Net actuarial loss | 35,800,000 | ||
Net transition obligation | 0 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 47,597,000 | 54,482,000 | 41,603,000 |
Interest cost | 65,979,000 | 59,119,000 | 61,453,000 |
Expected return on plan assets | -72,661,000 | -64,551,000 | -64,004,000 |
Amortization of net prior service (gain) cost | 62,000 | -464,000 | -689,000 |
Amortization of net actuarial loss (gain) | 18,459,000 | 34,597,000 | 23,428,000 |
Net periodic benefit cost | 59,436,000 | 83,183,000 | 61,791,000 |
Impact of PUC D&Os | -13,324,000 | -38,104,000 | -15,754,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 46,112,000 | 45,079,000 | 46,037,000 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | 0 | ||
Net actuarial loss | 32,400,000 | ||
Net transition obligation | 0 | ||
Other benefits | |||
Defined benefit plans | |||
Service cost | 3,490,000 | 4,306,000 | 4,211,000 |
Interest cost | 8,550,000 | 7,569,000 | 9,009,000 |
Expected return on plan assets | -10,902,000 | -10,147,000 | -10,336,000 |
Amortization of net prior service (gain) cost | -1,793,000 | -1,793,000 | -1,793,000 |
Amortization of net actuarial loss (gain) | -11,000 | 1,602,000 | 1,498,000 |
Net periodic benefit cost | -666,000 | 1,537,000 | 2,589,000 |
Impact of PUC D&Os | 1,976,000 | -1,458,000 | -2,227,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 1,310,000 | 79,000 | 362,000 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | -1,800,000 | ||
Net actuarial loss | 1,700,000 | ||
Net transition obligation | 0 | ||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 3,392,000 | 4,163,000 | 4,014,000 |
Interest cost | 8,234,000 | 7,288,000 | 8,703,000 |
Expected return on plan assets | -10,739,000 | -10,002,000 | -10,195,000 |
Amortization of net transition obligation | 0 | 0 | -9,000 |
Amortization of net prior service (gain) cost | -1,804,000 | -1,803,000 | -1,803,000 |
Amortization of net actuarial loss (gain) | 0 | 1,544,000 | 1,455,000 |
Net periodic benefit cost | -917,000 | 1,190,000 | 2,165,000 |
Impact of PUC D&Os | 1,976,000 | -1,458,000 | -2,227,000 |
Net periodic benefit cost (adjusted for impact of PUC D&Os) | 1,059,000 | -268,000 | -62,000 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | -1,800,000 | ||
Net actuarial loss | 1,700,000 | ||
Net transition obligation | $0 |
Sharebased_compensation_Additi
Share-based compensation Additional Information (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2014 |
Share-based compensation | ||||
Income tax benefit (in dollars) | $3.40 | $2.80 | $2.40 | |
Equity and Incentive Plan (EIP) | ||||
Share-based compensation | ||||
Additional shares available for issuance | 1,500,000 | |||
Shares remaining available for future issuance | 3,600,000 | |||
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | 900,000 | |||
Stock Option and Incentive Plan (SOIP) | ||||
Share-based compensation | ||||
Outstanding shares | 17,000 | |||
Period of time from grant date after which awards become unrestricted | 4 years | |||
Nonemployee Director Stock Plan | ||||
Share-based compensation | ||||
Shares remaining available for future issuance | 169,290 | |||
Long-term incentive plan (LTIP) | ||||
Share-based compensation | ||||
Performance period | 3 years | |||
Exception to forfeiture, minimum requisite service period | 12 months | |||
Payout low end of range (as a percent) | 0.00% | |||
Payout high end of range (as a percent) | 200.00% | |||
Stock appreciation rights (SARs) | ||||
Share-based compensation | ||||
Intrinsic value of equity instruments other than options, vested | 0.6 | |||
Expired (in shares) | 0 | 0 | 4,000 | |
Stock appreciation rights (SARs) | Stock Option and Incentive Plan (SOIP) | ||||
Share-based compensation | ||||
Percentage of award exercisable in installments | 25.00% | |||
Period during which the award vests and becomes exercisable in installments | 4 years | |||
Period award expires if not exercised | 10 years | |||
Restricted shares | ||||
Share-based compensation | ||||
Fair value of vested stock (in dollars) | 0.1 | 0.1 | 0.9 | |
Income tax benefit (in dollars) | 0.2 | |||
Shares vested | 4,503 | 4,502 | 37,802 | |
Restricted shares | Equity and Incentive Plan (EIP) | ||||
Share-based compensation | ||||
The number of equal annual increments for which the awards become unrestricted (in installments) | 4 | |||
Restricted stock units | ||||
Share-based compensation | ||||
Fair value of vested stock (in dollars) | 4.1 | 3.7 | 0.7 | |
Income tax benefit (in dollars) | 1.2 | 0.9 | 0.2 | |
Unrecognized compensation cost | 4.4 | |||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years 5 months 24 days | |||
Shares vested | 144,702 | 118,885 | 25,728 | |
LTIP linked to TRS | ||||
Share-based compensation | ||||
Fair value of vested stock (in dollars) | 0 | 2.2 | 0.6 | |
Income tax benefit (in dollars) | 0 | 0.9 | 0.2 | |
Unrecognized compensation cost | 2.2 | |||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year 6 months | |||
Shares vested | 70,189 | 87,753 | 35,397 | |
Shares settled | 70,205 | |||
Expired (in shares) | 17,548 | |||
LTIP awards linked to other performance conditions | ||||
Share-based compensation | ||||
Fair value of vested stock (in dollars) | 1.9 | 0.6 | ||
Income tax benefit (in dollars) | 0.8 | 0.2 | ||
Shares vested | 65,089 | 18,280 | 0 | |
2012-2014 LTIP linked to other performance conditions | ||||
Share-based compensation | ||||
Unrecognized compensation cost | $3.40 | |||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year 6 months |
Sharebased_compensation_Shareb
Share-based compensation Share-based Compensation Expense and Related Income Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | $9.30 | $7.80 | $6.70 |
Income tax benefit (in dollars) | 3.4 | 2.8 | 2.4 |
Capitalized share-based compensation expense | 0.16 | 0.11 | 0.08 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | 3.1 | 2.3 | 1.8 |
Income tax benefit (in dollars) | $1.20 | $0.90 | $0.70 |
Sharebased_compensation_The_20
Share-based compensation The 2011 Director Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit (in dollars) | $3.40 | $2.80 | $2.40 |
Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 33,170 | 33,184 | 29,448 |
Fair value of vested stock (in dollars) | 0.8 | 0.8 | 0.8 |
Income tax benefit (in dollars) | $0.30 | $0.30 | $0.30 |
Sharebased_compensation_Nonqua
Share-based compensation Nonqualified Stock Options (Details) (Nonqualified stock options (NQSOs), USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Nonqualified stock options (NQSOs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at the beginning of the period (in shares) | 14,000 | 55,500 |
Outstanding, at the beginning of the period (in dollars per share) | $20.49 | $20.92 |
Granted (in shares) | 0 | 0 |
Granted (in dollars per share) | $0 | $0 |
Exercised (in shares) | -14,000 | -41,500 |
Exercised (in dollars per share) | $20.49 | $21.06 |
Forfeited (in shares) | 0 | 0 |
Forfeited (in dollars per share) | $0 | $0 |
Expired (in shares) | 0 | 0 |
Expired (in dollars per share) | $0 | $0 |
Outstanding at the end of the period (in shares) | 0 | 14,000 |
Outstanding, at the end of the period (in dollars per share) | $0 | $20.49 |
Exercisable (in shares) | 0 | 14,000 |
Exercisable (in dollars per share) | $0 | $20.49 |
Sharebased_compensation_Nonqua1
Share-based compensation Nonqualified Stock Option Activity and Statistics (Details) (Nonqualified stock options (NQSOs), USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Nonqualified stock options (NQSOs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash received from exercise (in dollars) | $287 | $874 |
Intrinsic value of shares exercised (in dollars) | 128 | 354 |
Tax benefit realized for the deduction of exercises (in dollars) | $50 | $138 |
Sharebased_compensation_Stock_
Share-based compensation Stock Appreciation Rights (Details) (Stock appreciation rights (SARs), USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation, Stock Appreciation Rights [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 164,000 | 164,000 | 282,000 |
Outstanding at the beginning of the period (in dollars per share) | $26.12 | $26.12 | $26.14 |
Granted (in shares) | 0 | 0 | 0 |
Granted (in dollars per share) | $0 | $0 | $0 |
Exercised (in shares) | -22,000 | 0 | -114,000 |
Exercised (in dollars per share) | $26.18 | $0 | $26.17 |
Forfeited (in shares) | -62,000 | 0 | 0 |
Forfeited (in dollars per share) | $26.02 | $0 | $0 |
Expired (in shares) | 0 | 0 | -4,000 |
Expired (in dollars per share) | $0 | $0 | $26.18 |
Outstanding, end of period (in shares) | 80,000 | 164,000 | 164,000 |
Outstanding at the end of the period (in dollars per share) | $26.18 | $26.12 | $26.12 |
Exercisable (in shares) | 80,000 | 164,000 | 164,000 |
Exercisable (in dollars per share) | $26.18 | $26.12 | $26.12 |
Intrinsic value of shares exercised | $29 | $0 | $197 |
Tax benefit realized for the deduction of exercises | $11 | $0 | $77 |
2005 | |||
Share-based Compensation, Stock Appreciation Rights [Roll Forward] | |||
Number of shares underlying SARs | 80,000 | ||
Weighted-average remaining contractual life | 3 months 18 days | ||
Weighted-average exercise price of shares outstanding and exercisable (in dollars per share) | $26.18 |
Sharebased_compensation_Restri
Share-based compensation Restricted Shares and Restricted Stock Awards (Details) (Restricted shares, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted shares | |||
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 4,503 | 9,005 | 46,807 |
Outstanding, beginning of period (in dollars per share) | $22.21 | $22.21 | $24.45 |
Granted (in shares) | 0 | 0 | 0 |
Granted (in dollars per share) | $0 | $0 | $0 |
Vested (in shares) | -4,503 | -4,502 | -37,802 |
Vested (in dollars per share) | $22.21 | $22.21 | $24.99 |
Forfeited (in shares) | 0 | 0 | 0 |
Forfeited (in dollars per share) | $0 | $0 | $0 |
Outstanding, end of period (in shares) | 0 | 4,503 | 9,005 |
Outstanding, end of period (in dollars per share) | $0 | $22.21 | $22.21 |
Sharebased_compensation_Restri1
Share-based compensation Restricted Stock Units (Details) (Restricted stock units, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted stock units | |||
Share-based Compensation, Restricted Stock Units [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 288,151 | 315,094 | 247,286 |
Outstanding, beginning of period (in dollars per share) | $25.17 | $22.82 | $21.80 |
Granted (in shares) | 117,786 | 111,231 | 98,446 |
Granted (in dollars per share) | $25.17 | $26.88 | $25.99 |
Vested (in shares) | -144,702 | -118,885 | -25,728 |
Vested (in dollars per share) | $24.09 | $20.48 | $24.68 |
Forfeited (in shares) | 0 | -19,289 | -4,910 |
Forfeited (in dollars per share) | $0 | $25.62 | $24.92 |
Outstanding, end of period (in shares) | 261,235 | 288,151 | 315,094 |
Outstanding, end of period (in dollars per share) | $25.77 | $25.17 | $22.82 |
Total weighted-average grant-date fair value | $3 | $3 | $2.60 |
Sharebased_compensation_LTIP_L
Share-based compensation LTIP Linked to TRS (Details) (LTIP linked to TRS, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
LTIP linked to TRS | |||
Share-based Compensation, Long Term Incentive Plan [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 232,127 | 239,256 | 197,385 |
Outstanding, beginning of period (in dollars per share) | $32.88 | $29.12 | $25.94 |
Granted (in shares) | 97,524 | 91,038 | 81,223 |
Granted (in dollars per share) | $22.95 | $32.69 | $30.71 |
Vested (in shares) | -70,189 | -87,753 | -35,397 |
Vested (in dollars per share) | $35.46 | $22.45 | $14.85 |
Forfeited (in shares) | -1,506 | -10,414 | -3,955 |
Forfeited (in dollars per share) | $28.32 | $32.72 | $30.82 |
Outstanding, end of period (in shares) | 257,956 | 232,127 | 239,256 |
Outstanding, end of period (in dollars per share) | $28.45 | $32.88 | $29.12 |
Total weighted-average grant-date fair value | $2.20 | $3 | $2.50 |
Sharebased_compensation_Assump
Share-based compensation Assumptions to Determine the Fair Value of LTIP Awards Linked to TRS (Details) (LTIP linked to TRS, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
LTIP linked to TRS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.66% | 0.38% | 0.33% |
Expected life | 3 years | 3 years | 3 years |
Expected volatility (as a percent) | 17.80% | 19.40% | 25.30% |
Range of expected volatility for Peer Group, minimum (as a percent) | 12.40% | 12.40% | 15.50% |
Range of expected volatility for Peer Group, maximum (as a percent) | 23.30% | 25.30% | 34.50% |
Grant date fair value (in dollars per share) | $22.95 | $32.69 | $30.71 |
Sharebased_compensation_LTIP_A
Share-based compensation LTIP Awards Linked To Other Performance Conditions (Details) (LTIP awards linked to other performance conditions, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
LTIP awards linked to other performance conditions | |||
Share-based Compensation, Long Term Incentive Plan [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 296,843 | 247,175 | 182,498 |
Outstanding, beginning of period (in dollars per share) | $26.14 | $25.04 | $22.63 |
Granted (in shares) | 129,603 | 120,399 | 125,157 |
Granted (in dollars per share) | $25.18 | $26.89 | $26.05 |
Vested (in shares) | -65,089 | -18,280 | 0 |
Vested (in dollars per share) | $24.95 | $18.95 | $0 |
Increased above target (cancelled) (in shares) | 4,949 | -41,599 | -50,786 |
Increased above target (cancelled) (in dollars per share) | $26.70 | $24.97 | $18.95 |
Forfeited (in shares) | -1,575 | -10,852 | -9,694 |
Forfeited (in dollars per share) | $26.07 | $26.20 | $24.44 |
Outstanding, end of period (in shares) | 364,731 | 296,843 | 247,175 |
Outstanding, end of period (in dollars per share) | $26.01 | $26.14 | $25.04 |
Total weighted-average grant-date fair value | $3.30 | $3.20 | $3.30 |
Income_taxes_Additional_Inform
Income taxes Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit) [Line Items] | |||
Reconciliation percentage of amount of income taxes computed at federal statutory rate | 35.00% | 35.00% | 35.00% |
Amount of decrease in deferred taxes related to tax gross-up of AFUDC-equity | $3.50 | ||
Out-of-period income tax benefit | 3.1 | ||
Out-of-period tax benefit related to utilities | 2.7 | ||
Credit adjustments to interest expense on income taxes | 1.7 | 0.3 | 1.4 |
Amount of accrued interest related to uncertain tax positions | 0.4 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Net operating loss carryforwards | 52 | ||
Credit adjustments to interest expense on income taxes | $0.70 | $0.30 | $0.50 |
Income_taxes_Components_of_Inc
Income taxes Components of Income Taxes Attributable to Net Income for Common Stock (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal | |||
Current | $33,762 | ($1,520) | ($15,411) |
Deferred | 46,427 | 73,680 | 82,138 |
Deferred tax credits, net | 0 | 224 | 187 |
Federal taxes | 80,189 | 72,384 | 66,914 |
State | |||
Current | -7,339 | -1,555 | -4,654 |
Deferred | 12,756 | 6,719 | 8,710 |
Deferred tax credits, net | 6,106 | 6,793 | 5,889 |
State taxes | 11,523 | 11,957 | 9,945 |
Federal and state taxes | 91,712 | 84,341 | 76,859 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Federal | |||
Current | 1,108 | 1,313 | -26,965 |
Deferred | 68,775 | 58,024 | 79,437 |
Deferred tax credits, net | 0 | 224 | 186 |
Federal taxes | 69,883 | 59,561 | 52,658 |
State | |||
Current | -9,436 | -3,720 | -4,940 |
Deferred | 14,172 | 6,483 | 7,441 |
Deferred tax credits, net | 6,106 | 6,793 | 5,889 |
State taxes | 10,842 | 9,556 | 8,390 |
Federal and state taxes | $80,725 | $69,117 | $61,048 |
Income_taxes_Income_Tax_Reconc
Income taxes Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $91,672 | $86,711 | $76,092 |
Increase (decrease) resulting from: | |||
State income taxes, net of effect on federal income taxes | 7,490 | 7,772 | 6,464 |
Other, net | -7,450 | -10,142 | -5,697 |
Federal and state taxes | 91,712 | 84,341 | 76,859 |
Effective income tax rate (as a percent) | 35.00% | 34.00% | 35.40% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | 77,126 | 67,914 | 56,812 |
Increase (decrease) resulting from: | |||
State income taxes, net of effect on federal income taxes | 7,047 | 6,211 | 5,453 |
Other, net | -3,448 | -5,008 | -1,217 |
Federal and state taxes | $80,725 | $69,117 | $61,048 |
Effective income tax rate (as a percent) | 36.60% | 35.60% | 37.60% |
Income_taxes_Deferred_Tax_Asse
Income taxes Deferred Tax Assets and Liabilities Due to Book/Tax Differences (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Net operating loss | $0 | $0 |
Other | 58,352 | 57,239 |
Total deferred tax assets | 58,352 | 57,239 |
Deferred tax liabilities | ||
Property, plant and equipment | 448,723 | 378,280 |
Repairs deduction | 86,408 | 75,127 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,795 | 33,251 |
Deferred RAM and RBA revenues | 32,889 | 0 |
Retirement benefits | 25,336 | 29,280 |
Other | 62,935 | 70,561 |
Total deferred tax liabilities | 690,086 | 586,499 |
Deferred income taxes (credit) | 631,734 | 529,260 |
Total deferred tax liabilities | 631,734 | 529,260 |
Prepayments and other (Current assets-debit) | ||
Deferred tax liabilities | ||
Total deferred tax liabilities | 0 | 0 |
Other (Current liabilities-credit) | ||
Deferred tax liabilities | ||
Total deferred tax liabilities | 0 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax assets | ||
Net operating loss | 51,936 | 19,848 |
Other | 17,663 | 17,295 |
Total deferred tax assets | 69,599 | 37,143 |
Deferred tax liabilities | ||
Property, plant and equipment | 446,259 | 375,771 |
Repairs deduction | 86,408 | 75,127 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,795 | 33,251 |
Deferred RAM and RBA revenues | 32,889 | |
Retirement benefits | 28,758 | 23,851 |
Other | 14,929 | 15,602 |
Total deferred tax liabilities | 643,038 | 523,602 |
Deferred income taxes (credit) | 602,872 | 507,161 |
Total deferred tax liabilities | 573,439 | 486,459 |
Hawaiian Electric Company, Inc. and Subsidiaries | Prepayments and other (Current assets-debit) | ||
Deferred tax liabilities | ||
Total deferred tax liabilities | -32,915 | -20,702 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other (Current liabilities-credit) | ||
Deferred tax liabilities | ||
Total deferred tax liabilities | $3,482 | $0 |
Income_taxes_Changes_in_Unreco
Income taxes Changes in Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | $0.90 | $0.80 | $5.70 |
Additions based on tax positions taken during the year | 0 | 0 | 0.3 |
Reductions based on tax positions taken during the year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0.1 | 0.5 | 0 |
Reductions for tax positions of prior years | 0 | -0.4 | -4.1 |
Settlements | -1 | 0 | 0 |
Lapses of statute of limitations | 0 | 0 | -1.1 |
Unrecognized tax benefits, at the end of the period | 0 | 0.9 | 0.8 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | 0.5 | 0.4 | 3.7 |
Additions based on tax positions taken during the year | 0 | 0 | 0.3 |
Reductions based on tax positions taken during the year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0.1 | 0.5 | 0 |
Reductions for tax positions of prior years | 0 | -0.4 | -3.6 |
Settlements | -0.6 | 0 | 0 |
Lapses of statute of limitations | 0 | 0 | 0 |
Unrecognized tax benefits, at the end of the period | $0 | $0.50 | $0.40 |
Cash_flows_Details
Cash flows (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | $84,000,000 | $85,000,000 | $84,000,000 |
Income taxes paid | 47,000,000 | 18,000,000 | 17,000,000 |
Income taxes refunded | 24,000,000 | 4,000,000 | 31,000,000 |
Supplemental disclosures of noncash activities | |||
Common stock dividends reinvested in HEI common stock | 0 | 24,000,000 | 24,000,000 |
Increases in common stock related to director and officer compensatory plans | 6,000,000 | 5,000,000 | 6,000,000 |
Loans transferred from held for investment to held for sale | 0 | 25,000,000 | 0 |
Real estate acquired in settlement of loans | 3,000,000 | 4,000,000 | 11,000,000 |
Obligations to fund low income housing investments, net | 14,000,000 | 1,000,000 | 0 |
Electric utility property, plant and equipment | |||
AFUDC-equity | 6,771,000 | 5,561,000 | 7,007,000 |
Unpaid invoices and other | 68,000,000 | 24,000,000 | 37,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | 61,000,000 | 59,000,000 | 57,000,000 |
Income taxes paid | 6,000,000 | 6,000,000 | 6,000,000 |
Income taxes refunded | 8,000,000 | 32,000,000 | 9,000,000 |
Electric utility property, plant and equipment | |||
AFUDC-equity | 6,771,000 | 5,561,000 | 7,007,000 |
Estimated fair value of noncash contributions in aid of construction | 3,000,000 | 5,000,000 | 10,000,000 |
Unpaid invoices and other | $65,000,000 | $24,000,000 | $37,000,000 |
Regulatory_restrictions_on_net1
Regulatory restrictions on net assets (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Regulatory restrictions on net assets | |
Restrictions on transfer of net assets to the parent in the form of cash dividends, loans and advances | $668 |
American Savings Bank (ASB) | |
Regulatory restrictions on net assets | |
Amount of net assets available for transfer | $103 |
Significant_group_concentratio1
Significant group concentrations of credit risk (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% |
Fair_value_measurements_Fair_V
Fair value measurements Fair Value Hierarchy of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Available-for-sale investment securities | $550,394 | $529,007 |
Financial liabilities | ||
Short-term borrowings-other than bank | 118,972 | 105,482 |
Other bank borrowings | 290,656 | 244,514 |
Carrying or notional amount | ||
Financial assets | ||
Money market funds | 10 | 10 |
Available-for-sale investment securities | 550,394 | 529,007 |
Stock in Federal Home Loan Bank of Seattle | 69,302 | 92,546 |
Loans receivable, net | 4,397,457 | 4,115,415 |
Derivative assets | 30,120 | 46,356 |
Financial liabilities | ||
Deposit liabilities | 4,623,415 | 4,372,477 |
Short-term borrowings-other than bank | 118,972 | 105,482 |
Other bank borrowings | 290,656 | 244,514 |
Long-term debt, net-other than bank | 1,506,546 | 1,492,945 |
Derivative liabilities | 32,043 | 4,732 |
Estimated fair value | ||
Financial assets | ||
Money market funds | 10 | 10 |
Available-for-sale investment securities | 550,394 | 529,007 |
Stock in Federal Home Loan Bank of Seattle | 69,302 | 92,546 |
Loans receivable, net | 4,578,822 | 4,211,290 |
Derivative assets | 398 | 629 |
Financial liabilities | ||
Deposit liabilities | 4,623,773 | 4,374,377 |
Short-term borrowings-other than bank | 118,972 | 105,482 |
Other bank borrowings | 298,837 | 256,029 |
Long-term debt, net-other than bank | 1,622,736 | 1,508,425 |
Derivative liabilities | 114 | 26 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Derivative assets | 98 | |
Financial liabilities | ||
Derivative liabilities | 71 | |
Estimated fair value | Level 2 | ||
Financial assets | ||
Money market funds | 10 | 10 |
Available-for-sale investment securities | 550,394 | 529,007 |
Stock in Federal Home Loan Bank of Seattle | 69,302 | 92,546 |
Derivative assets | 398 | 531 |
Financial liabilities | ||
Deposit liabilities | 4,623,773 | 4,374,377 |
Short-term borrowings-other than bank | 118,972 | 105,482 |
Other bank borrowings | 298,837 | 256,029 |
Long-term debt, net-other than bank | 1,622,736 | 1,508,425 |
Derivative liabilities | 43 | 26 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Loans receivable, net | 4,578,822 | 4,211,290 |
Hawaiian Electric Company, Inc. and Subsidiaries | Carrying or notional amount | ||
Financial liabilities | ||
Long-term debt, net-other than bank | 1,206,546 | 1,217,945 |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | ||
Financial liabilities | ||
Long-term debt, net-other than bank | 1,313,893 | 1,228,966 |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 2 | ||
Financial liabilities | ||
Long-term debt, net-other than bank | $1,313,893 | $1,228,966 |
Fair_value_measurements_Additi
Fair value measurements Additional Information (Details) (American Savings Bank (ASB), USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Carrying or notional amount | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Notional amount of loans serviced | $1,400,000,000 | $1,400,000,000 |
Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Servicing rights on loans | $14,500,000 | $15,700,000 |
Fair_value_measurements_Fair_V1
Fair value measurements Fair Value Measurements on a Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | $550,394 | $529,007 |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 430,834 | 369,444 |
U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 119,560 | |
Municipal bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 78,590 | |
Fair value measurements on a recurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 98 | |
Derivative liabilities | 71 | |
Fair value measurements on a recurring basis | Level 1 | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Fair value measurements on a recurring basis | Level 1 | Forward Contracts | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 98 | |
Derivative liabilities | 71 | |
Fair value measurements on a recurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 398 | 531 |
Derivative liabilities | 43 | 26 |
Fair value measurements on a recurring basis | Level 2 | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 393 | 488 |
Derivative liabilities | 3 | 24 |
Fair value measurements on a recurring basis | Level 2 | Forward Contracts | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 5 | 43 |
Derivative liabilities | 40 | 2 |
Fair value measurements on a recurring basis | Level 2 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 550,394 | 529,007 |
Fair value measurements on a recurring basis | Level 2 | Bank | Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 430,834 | 369,444 |
Fair value measurements on a recurring basis | Level 2 | Bank | U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 119,560 | 80,973 |
Fair value measurements on a recurring basis | Level 2 | Bank | Municipal bonds | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 0 | 78,590 |
Fair value measurements on a recurring basis | Level 2 | Other | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Money market funds | $10 | $10 |
Fair_value_measurements_Fair_V2
Fair value measurements Fair Value Measurements on a Nonrecurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $4,578,822,000 | $4,211,290,000 |
Level 3 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 4,578,822,000 | 4,211,290,000 |
Fair value measurements on a nonrecurring basis | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 2,000,000 | 4,000,000 |
Tax credit investments | 9,000,000 | |
Real estate acquired in settlement of loans | 0 | 0 |
Fair value measurements on a nonrecurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 2,000,000 | 4,000,000 |
Tax credit investments | 9,000,000 | |
Real estate acquired in settlement of loans | $0 | $0 |
Fair_value_measurements_Quanti
Fair value measurements Quantitative Information About Level 3 Fair Value Measurements (Details) (Level 3, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Residential loan | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $2,297 | $2,361 |
Appraised value, weighted average rate (as a percent) | 83.00% | 87.00% |
Residential loan | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 39.00% | 44.00% |
Residential loan | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 99.00% | 96.00% |
Home equity line of credit | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | 3 | 170 |
Appraised value, weighted average rate (as a percent) | 7.00% | 50.00% |
Home equity line of credit | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 45.00% | |
Home equity line of credit | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 50.00% | |
Commercial loan 1 | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | 145 | 217 |
Fair value of business assets (as a percent) | 91.00% | 19.00% |
Tax credit investments | ||
Fair value measurements | ||
Fair value | 8,975 | |
Tax credit investments | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 5.00% | |
Tax credit investments | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 93.00% | |
Tax credit investments | Discounted cash flow | ||
Fair value measurements | ||
Fair value of business assets (as a percent) | 88.00% | |
Weighted average discount rate | 7.00% | |
Loans | ||
Fair value measurements | ||
Fair value | 2,445 | 4,416 |
Real estate acquired in settlement of loans | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | 288 | |
Appraised value, weighted average rate (as a percent) | 100.00% | |
Appraised value (as a percent) | 100.00% | |
Commercial loan 2 | Discounted cash flow | ||
Fair value measurements | ||
Fair value | $1,668 | |
Present value of expected future cash flows (as a percent) | 58.00% | |
Weighted average discount rate | 4.50% |
Fair_value_measurements_Assets
Fair value measurements Assets Held in Trusts for Retirement Benefits (Details) (Fair value measurements on a recurring basis, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Estimated fair value | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | $1,291,000,000 | $1,233,000,000 |
Cash, receivables and payables, net | -25,000,000 | -46,000,000 |
Fair value of plan assets | 1,266,000,000 | 1,187,000,000 |
Estimated fair value | Pension benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 649,000,000 | 672,000,000 |
Estimated fair value | Pension benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 132,000,000 | 127,000,000 |
Estimated fair value | Pension benefits | Fixed income securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 428,000,000 | 350,000,000 |
Estimated fair value | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 82,000,000 | 84,000,000 |
Estimated fair value | Other benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 181,000,000 | 180,000,000 |
Cash, receivables and payables, net | -1,000,000 | -1,000,000 |
Fair value of plan assets | 180,000,000 | 179,000,000 |
Estimated fair value | Other benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 99,000,000 | 102,000,000 |
Estimated fair value | Other benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 19,000,000 | 19,000,000 |
Estimated fair value | Other benefits | Fixed income securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 49,000,000 | 46,000,000 |
Estimated fair value | Other benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 14,000,000 | 13,000,000 |
Level 1 | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 903,000,000 | 921,000,000 |
Level 1 | Pension benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 649,000,000 | 672,000,000 |
Level 1 | Pension benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 132,000,000 | 127,000,000 |
Level 1 | Pension benefits | Fixed income securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 121,000,000 | 122,000,000 |
Level 1 | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 1,000,000 | 0 |
Level 1 | Other benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 164,000,000 | 161,000,000 |
Level 1 | Other benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 99,000,000 | 102,000,000 |
Level 1 | Other benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 19,000,000 | 19,000,000 |
Level 1 | Other benefits | Fixed income securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 43,000,000 | 40,000,000 |
Level 1 | Other benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 3,000,000 | |
Level 2 | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 388,000,000 | 311,000,000 |
Level 2 | Pension benefits | Fixed income securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 307,000,000 | 228,000,000 |
Level 2 | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 81,000,000 | 83,000,000 |
Level 2 | Other benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 17,000,000 | 19,000,000 |
Level 2 | Other benefits | Fixed income securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 6,000,000 | 6,000,000 |
Level 2 | Other benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 11,000,000 | 13,000,000 |
Level 3 | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 0 | 1,000,000 |
Level 3 | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | $0 | $1,000,000 |
Fair_value_measurements_Change
Fair value measurements Changes in Level 3 Assets (Details) (Level 3, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension benefits | ||
Changes in Level 3 assets | ||
Balance at the beginning of the period | $580 | $581 |
Realized and unrealized losses | -203 | -1 |
Purchases and settlements, net | -282 | 0 |
Balance at the end of the period | 95 | 580 |
Other benefits | ||
Changes in Level 3 assets | ||
Balance at the beginning of the period | 18 | 18 |
Realized and unrealized losses | -6 | 0 |
Purchases and settlements, net | -8 | 0 |
Balance at the end of the period | $4 | $18 |
Quarterly_information_unaudite2
Quarterly information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $790,040 | $867,096 | $798,657 | $783,749 | $832,503 | $829,168 | $794,567 | $782,232 | $3,239,542 | $3,238,470 | $3,374,995 |
Operating income | 67,241 | 91,102 | 82,275 | 88,306 | 78,349 | 88,038 | 80,207 | 68,825 | 328,924 | 315,419 | 284,196 |
Net income | 33,630 | 48,286 | 41,894 | 46,400 | 39,486 | 48,707 | 41,061 | 34,152 | 170,210 | 163,406 | 140,548 |
Net income for common stock | 33,157 | 47,815 | 41,421 | 45,927 | 39,013 | 48,236 | 40,588 | 33,679 | 168,320 | 161,516 | 138,658 |
Basic earnings per common share (in dollars per share) | $0.32 | $0.47 | $0.41 | $0.45 | $0.39 | $0.49 | $0.41 | $0.34 | $1.65 | $1.63 | $1.43 |
Diluted earnings per common share (in dollars per share) | $0.32 | $0.46 | $0.41 | $0.45 | $0.39 | $0.48 | $0.41 | $0.34 | $1.64 | $1.62 | $1.42 |
Dividends per common share (in dollars per share) | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $1.24 | $1.24 | $1.24 |
Market price per common share | |||||||||||
High end of range (in dollars per share) | $35 | $26.89 | $25.65 | $26.80 | $27.15 | $27.24 | $28.30 | $27.92 | $35 | $28.30 | |
Low end of range (in dollars per share) | $26.04 | $22.71 | $23.04 | $24.39 | $24.51 | $24.12 | $23.84 | $25.50 | $22.71 | $23.84 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | 725,267 | 803,565 | 738,429 | 720,062 | 770,152 | 764,054 | 728,525 | 717,441 | 2,987,323 | 2,980,172 | 3,109,439 |
Operating income | 58,878 | 76,156 | 70,068 | 70,666 | 65,564 | 69,853 | 58,975 | 51,121 | 275,768 | 245,513 | 213,012 |
Net income | 29,611 | 39,377 | 34,729 | 35,919 | 32,489 | 38,315 | 29,192 | 24,928 | 139,636 | 124,924 | 101,271 |
Net income for common stock | $29,112 | $38,879 | $34,230 | $35,420 | $31,990 | $37,817 | $28,693 | $24,429 | $137,641 | $122,929 | $99,276 |
SCHEDULE_I_CONDENSED_FINANCIAL1
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- Balance Sheets (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
ASSETS | ||||
Cash and cash equivalents | 175,542,000 | $220,036,000 | $219,662,000 | $270,265,000 |
Accounts receivable | 313,696,000 | 346,785,000 | ||
Property, plant and equipment, net | 4,148,774,000 | 3,865,514,000 | ||
Other assets | 541,542,000 | 512,627,000 | ||
Total assets | 11,184,161,000 | 10,340,044,000 | ||
Liabilities | ||||
Accounts payable | 186,425,000 | 212,331,000 | ||
Long-term debt | 1,506,546,000 | 1,492,945,000 | ||
Retirement benefits liability | 632,845,000 | 288,539,000 | ||
Other | 531,230,000 | 524,224,000 | ||
Total liabilities | 9,358,440,000 | 8,578,681,000 | ||
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: 102,565,266 shares and 101,259,800 shares at December 31, 2014 and 2013, respectively | 1,521,297,000 | 1,488,126,000 | ||
Retained earnings | 297,509,000 | 255,694,000 | ||
Accumulated other comprehensive loss | -27,378,000 | -16,750,000 | -26,423,000 | -19,137,000 |
Total shareholders' equity | 1,791,428,000 | 1,727,070,000 | 1,593,865,000 | 1,528,706,000 |
Total liabilities and shareholders' equity | 11,184,161,000 | 10,340,044,000 | ||
Aggregate principal payments | ||||
2015 | 0 | |||
2016 | 200,000,000 | |||
2017 | 0 | |||
2018 | 50,000,000 | |||
2019 | 0 | |||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, issued shares | 102,565,266 | 101,259,800 | ||
Common stock, outstanding shares | 102,565,266 | 101,259,800 | ||
Deferred income taxes | 631,734,000 | 529,260,000 | ||
Self-insured United States longshore & Harbor bond | ||||
Aggregate principal payments | ||||
Guarantee obligation maximum exposure | 200,000 | |||
Self-insured automobile bond | ||||
Aggregate principal payments | ||||
Guarantee obligation maximum exposure | 600,000 | |||
HEI term loan LIBOR plus .90% due 2016 | ||||
Liabilities | ||||
Long-term debt | 125,000,000 | 0 | ||
HEI medium-term note 6.51%, due 2014 | ||||
Liabilities | ||||
Long-term debt | 0 | 100,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 6.51% | 6.51% | ||
HEI senior note 4.41%, due 2016 | ||||
Liabilities | ||||
Long-term debt | 75,000,000 | 75,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 4.41% | 4.41% | ||
HEI senior note 5.67%, due 2021 | ||||
Liabilities | ||||
Long-term debt | 50,000,000 | 50,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 5.67% | 5.67% | ||
HEI senior note 3.99%, due 2023 | ||||
Liabilities | ||||
Long-term debt | 50,000,000 | 50,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 3.99% | 3.99% | ||
Hawaiian Electric Industries, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 276,000 | 571,000 | 18,021,000 | 1,765,000 |
Accounts receivable | 1,991,000 | 1,661,000 | ||
Property, plant and equipment, net | 4,917,000 | 5,419,000 | ||
Deferred income tax assets | 15,922,000 | 10,057,000 | ||
Other assets | 11,070,000 | 9,550,000 | ||
Investments in subsidiaries, at equity | 2,224,452,000 | 2,122,841,000 | ||
Total assets | 2,258,628,000 | 2,150,099,000 | ||
Liabilities | ||||
Accounts payable | 1,993,000 | 817,000 | ||
Interest payable | 2,583,000 | 4,630,000 | ||
Notes payable to subsidiaries | 7,857,000 | 7,936,000 | ||
Commercial paper | 118,972,000 | 105,482,000 | ||
Long-term debt | 300,000,000 | 275,000,000 | ||
Retirement benefits liability | 32,030,000 | 21,559,000 | ||
Other | 3,765,000 | 7,605,000 | ||
Total liabilities | 467,200,000 | 423,029,000 | ||
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: 102,565,266 shares and 101,259,800 shares at December 31, 2014 and 2013, respectively | 1,521,297,000 | 1,488,126,000 | ||
Retained earnings | 297,509,000 | 255,694,000 | ||
Accumulated other comprehensive loss | -27,378,000 | -16,750,000 | ||
Total shareholders' equity | 1,791,428,000 | 1,727,070,000 | ||
Total liabilities and shareholders' equity | 2,258,628,000 | 2,150,099,000 | ||
Aggregate principal payments | ||||
2015 | 0 | |||
2016 | 200,000,000 | |||
2017 | 0 | |||
2018 | 0 | |||
2019 | 0 | |||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, issued shares | 102,565,266 | 101,259,800 | ||
Common stock, outstanding shares | 102,565,266 | 101,259,800 | ||
Deferred income taxes | 0 | |||
Hawaiian Electric Industries, Inc. | HEI term loan LIBOR plus .90% due 2016 | ||||
Liabilities | ||||
Long-term debt | 125,000,000 | 0 | ||
Hawaiian Electric Industries, Inc. | HEI medium-term note 6.51%, due 2014 | ||||
Liabilities | ||||
Long-term debt | 0 | 100,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 6.51% | 6.51% | ||
Hawaiian Electric Industries, Inc. | HEI senior note 4.41%, due 2016 | ||||
Liabilities | ||||
Long-term debt | 75,000,000 | 75,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 4.41% | 4.41% | ||
Hawaiian Electric Industries, Inc. | HEI senior note 5.67%, due 2021 | ||||
Liabilities | ||||
Long-term debt | 50,000,000 | 50,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 5.67% | 5.67% | ||
Hawaiian Electric Industries, Inc. | HEI senior note 3.99%, due 2023 | ||||
Liabilities | ||||
Long-term debt | 50,000,000 | 50,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 3.99% | 3.99% | ||
As previously filed | Hawaiian Electric Industries, Inc. | ||||
ASSETS | ||||
Deferred income tax assets | 1,594,000 | |||
Other assets | 23,679,000 | |||
Total assets | 2,155,765,000 | |||
Liabilities | ||||
Other | 1,886,000 | |||
Total liabilities | 428,695,000 | |||
Shareholders' equity | ||||
Total liabilities and shareholders' equity | 2,155,765,000 | |||
Aggregate principal payments | ||||
Deferred income taxes | 11,385,000 | |||
Difference | ||||
ASSETS | ||||
Other assets | -7,000,000 | |||
Difference | Hawaiian Electric Industries, Inc. | ||||
ASSETS | ||||
Deferred income tax assets | 8,463,000 | |||
Other assets | -14,129,000 | |||
Total assets | -5,666,000 | |||
Liabilities | ||||
Other | 5,719,000 | |||
Total liabilities | -5,666,000 | |||
Shareholders' equity | ||||
Total liabilities and shareholders' equity | -5,666,000 | |||
Aggregate principal payments | ||||
Deferred income taxes | ($11,385,000) | |||
LIBOR | HEI term loan LIBOR plus .90% due 2016 | ||||
Aggregate principal payments | ||||
Line of credit facility basis point spread (as a percent) | 0.90% |
SCHEDULE_I_CONDENSED_FINANCIAL2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- Statements of Income and Changes in Shareholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expenses: | |||||||||||
Depreciation of property, plant and equipment | $172,762 | $160,061 | $150,389 | ||||||||
Interest expense | 87,160 | 85,556 | 89,443 | ||||||||
Income before income taxes | 261,922 | 247,747 | 217,407 | ||||||||
Income tax benefits | -91,712 | -84,341 | -76,859 | ||||||||
Net income | 33,630 | 48,286 | 41,894 | 46,400 | 39,486 | 48,707 | 41,061 | 34,152 | 170,210 | 163,406 | 140,548 |
Hawaiian Electric Industries, Inc. | |||||||||||
Revenues | |||||||||||
Revenues | 303 | 288 | 221 | ||||||||
Equity in income of subsidiaries | 188,534 | 180,359 | 157,883 | ||||||||
Expenses: | |||||||||||
Operating, administrative and general | 20,921 | 16,063 | 16,191 | ||||||||
Depreciation of property, plant and equipment | 575 | 596 | 672 | ||||||||
Taxes, other than income taxes | 469 | 497 | 421 | ||||||||
Interest expense | 11,599 | 16,207 | 16,695 | ||||||||
Income before income taxes | 155,273 | 147,284 | 124,125 | ||||||||
Income tax benefits | 13,047 | 14,232 | 14,533 | ||||||||
Net income | $168,320 | $161,516 | $138,658 |
SCHEDULE_I_CONDENSED_FINANCIAL3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | |||
Net income | $170,210,000 | $163,406,000 | $140,548,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 172,762,000 | 160,061,000 | 150,389,000 |
Increase in deferred income taxes | 59,184,000 | 80,399,000 | 90,848,000 |
Excess tax benefits from share-based payment arrangements | -277,000 | -430,000 | -61,000 |
Changes in assets and liabilities | |||
Increase (decrease) in accounts and interest payable | -92,294,000 | -23,153,000 | -39,738,000 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 22,251,000 | -33,014,000 | -228,000 |
Change in other assets and liabilities | -93,400,000 | -2,779,000 | -94,734,000 |
Net cash provided by operating activities | 301,479,000 | 327,146,000 | 234,542,000 |
Cash flows from investing activities | |||
Capital expenditures | -339,721,000 | -353,879,000 | -325,480,000 |
Net cash used in investing activities | -568,508,000 | -563,760,000 | -427,047,000 |
Cash flows from financing activities | |||
Net increase in short-term borrowings with original maturities of three months or less | 13,490,000 | 21,789,000 | 14,872,000 |
Proceeds from issuance of long-term debt | 125,000,000 | 286,000,000 | 457,000,000 |
Repayment of long-term debt | -111,400,000 | -216,000,000 | -375,500,000 |
Excess tax benefits from share-based payment arrangements | 277,000 | 430,000 | 61,000 |
Net proceeds from issuance of common stock | 26,898,000 | 55,086,000 | 23,613,000 |
Common stock dividends | -126,458,000 | -98,383,000 | -96,202,000 |
Net cash provided by (used in) financing activities | 222,535,000 | 236,988,000 | 141,902,000 |
Net increase (decrease) in cash and cash equivalents | -44,494,000 | 374,000 | -50,603,000 |
Cash and cash equivalents, January 1 | 220,036,000 | 219,662,000 | 270,265,000 |
Cash and cash equivalents, December 31 | 175,542,000 | 220,036,000 | 219,662,000 |
Issuance of common stock: Dividend reinvestment and stock purchase plan | 2,461,000 | 41,692,000 | 41,295,000 |
Common stock | |||
Cash flows from financing activities | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 2,461,000 | 41,692,000 | 41,295,000 |
Hawaiian Electric Industries, Inc. | |||
Cash flows from operating activities | |||
Net income | 168,320,000 | 161,516,000 | 138,658,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in net income | -188,534,000 | -180,359,000 | -157,883,000 |
Common stock dividends/distributions received from subsidiaries | 124,492,000 | 121,578,000 | 118,044,000 |
Depreciation of property, plant and equipment | 575,000 | 596,000 | 672,000 |
Other amortization | 786,000 | 800,000 | 845,000 |
Increase in deferred income taxes | -15,913,000 | 15,228,000 | 150,000 |
Excess tax benefits from share-based payment arrangements | -277,000 | -430,000 | -61,000 |
Changes in assets and liabilities | |||
Increase in accounts receivable | -2,687,000 | -2,167,000 | -475,000 |
Increase (decrease) in accounts and interest payable | -871,000 | -23,420,000 | 19,995,000 |
Changes in prepaid and accrued income taxes | 15,867,000 | -15,604,000 | -4,861,000 |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 10,472,000 | -6,449,000 | 1,805,000 |
Change in other assets and liabilities | -11,436,000 | 10,985,000 | 10,229,000 |
Net cash provided by operating activities | 100,794,000 | 82,274,000 | 127,118,000 |
Cash flows from investing activities | |||
Capital expenditures | -74,000 | -201,000 | -410,000 |
Investments in subsidiaries | -40,000,000 | -78,500,000 | -44,000,000 |
Net cash used in investing activities | -40,074,000 | -78,701,000 | -44,410,000 |
Cash flows from financing activities | |||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | -222,000 | 56,000 | -1,797,000 |
Net increase in short-term borrowings with original maturities of three months or less | 13,490,000 | 21,788,000 | 14,873,000 |
Proceeds from issuance of long-term debt | 125,000,000 | 50,000,000 | 0 |
Repayment of long-term debt | -100,000,000 | -50,000,000 | -7,000,000 |
Excess tax benefits from share-based payment arrangements | 277,000 | 430,000 | 61,000 |
Net proceeds from issuance of common stock | 26,898,000 | 55,086,000 | 23,613,000 |
Common stock dividends | -126,458,000 | -98,383,000 | -96,202,000 |
Net cash provided by (used in) financing activities | -61,015,000 | -21,023,000 | -66,452,000 |
Net increase (decrease) in cash and cash equivalents | -295,000 | -17,450,000 | 16,256,000 |
Cash and cash equivalents, January 1 | 571,000 | 18,021,000 | 1,765,000 |
Cash and cash equivalents, December 31 | 276,000 | 571,000 | 18,021,000 |
Hawaiian Electric Industries, Inc. | ASB Hawaii, Inc. | Consolidated subsidiary | |||
Cash flows from financing activities | |||
Accounts receivable reduction | 2,400,000 | 2,300,000 | 1,800,000 |
HEI notes payable increase to ASHI | 2,500,000 | 2,500,000 | 2,500,000 |
Hawaiian Electric Industries, Inc. | Common stock | |||
Cash flows from financing activities | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | $0 | $24,000,000 | $24,000,000 |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and qualifying accounts | |||
Charged to other accounts | $0 | $0 | $0 |
Allowance for uncollectible accounts- electric utility | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 2,329 | 2,148 | 2,221 |
Charged to costs and expenses | 1,384 | 3,812 | 3,230 |
Charged to other accounts | 1,613 | 1,943 | 1,180 |
Deductions | 3,367 | 5,574 | 4,483 |
Balance at end of period | 1,959 | 2,329 | 2,148 |
Allowance for uncollectible interest- bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 1,661 | 3,166 | 4,825 |
Deductions | 147 | 1,505 | 1,659 |
Balance at end of period | 1,514 | 1,661 | 3,166 |
Allowance for losses for loans receivable b bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 40,116 | 41,985 | 37,906 |
Charged to costs and expenses | 6,126 | 1,507 | 12,883 |
Charged to other accounts | 4,926 | 4,826 | 4,026 |
Deductions | 5,550 | 8,202 | 12,830 |
Balance at end of period | 45,618 | 40,116 | 41,985 |
Mortgage Servicing Rights (MSR) | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 251 | 498 | 175 |
Charged to costs and expenses | 53 | 0 | 504 |
Charged to other accounts | 0 | -60 | 0 |
Deductions | 95 | 187 | 181 |
Balance at end of period | 209 | 251 | 498 |
Deferred tax valuation allowance b HEI | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 278 | 278 | 278 |
Charged to costs and expenses | 17 | 0 | 0 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 250 | 0 | 0 |
Balance at end of period | $45 | $278 | $278 |