Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | HAWAIIAN ELECTRIC INDUSTRIES INC | ||
Entity Central Index Key | 354,707 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,194,385,337 | ||
Entity Common Stock, Shares Outstanding | 107,624,726 | ||
Document Fiscal Year Focus | 2,015 | ||
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 | 46,207 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Revenues | $ 2,602,982 | $ 3,239,542 | $ 3,238,470 |
Expenses | |||
Total expenses | 2,280,429 | 2,906,942 | 2,920,962 |
Operating income (loss) | |||
Operating income | 322,553 | 332,600 | 317,508 |
Interest expense, net – other than on deposit liabilities and other bank borrowings | (77,150) | (76,352) | (75,479) |
Allowance for borrowed funds used during construction | 2,457 | 2,579 | 2,246 |
Allowance for equity funds used during construction | 6,928 | 6,771 | 5,561 |
Income before income taxes | 254,788 | 265,598 | 249,836 |
Income taxes | 93,021 | 95,579 | 86,237 |
Net income (loss) | 161,767 | 170,019 | 163,599 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | $ 159,877 | $ 168,129 | $ 161,709 |
Basic earnings per common share (in dollars per share) | $ 1.50 | $ 1.65 | $ 1.63 |
Diluted earnings per common share (in dollars per share) | 1.50 | 1.63 | 1.62 |
Dividends per common share (in dollars per share) | $ 1.24 | $ 1.24 | $ 1.24 |
Weighted-average number of common shares outstanding (in shares) | 106,418 | 101,968 | 98,968 |
Net effect of potentially dilutive shares (in shares) | 303 | 969 | 655 |
Adjusted weighted-average shares (in shares) | 106,721 | 102,937 | 99,623 |
Electric utility | |||
Revenues | |||
Revenues | $ 2,335,166 | $ 2,987,323 | $ 2,980,172 |
Expenses | |||
Total expenses | 2,061,050 | 2,711,555 | 2,734,659 |
Operating income (loss) | |||
Operating income | 274,116 | 275,768 | 245,513 |
Income before income taxes | 217,131 | 220,361 | 194,041 |
Income taxes | 79,422 | 80,725 | 69,117 |
Net income (loss) | 137,709 | 139,636 | 124,924 |
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 |
Net income for common stock | 135,714 | 137,641 | 122,929 |
Bank | |||
Revenues | |||
Revenues | 267,733 | 252,497 | 258,147 |
Expenses | |||
Total expenses | 183,921 | 173,202 | 169,001 |
Operating income (loss) | |||
Operating income | 83,812 | 79,295 | 89,146 |
Income before income taxes | 83,812 | 79,295 | 89,148 |
Income taxes | 29,082 | 27,994 | 31,421 |
Net income (loss) | 54,730 | 51,301 | 57,727 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income for common stock | 54,730 | 51,301 | 57,727 |
Other | |||
Revenues | |||
Revenues | 83 | (278) | 151 |
Expenses | |||
Total expenses | 35,458 | 22,185 | 17,302 |
Operating income (loss) | |||
Operating income | (35,375) | (22,463) | (17,151) |
Income before income taxes | (46,155) | (34,058) | (33,353) |
Income taxes | (15,483) | (13,140) | (14,301) |
Net income (loss) | (30,672) | (20,918) | (19,052) |
Preferred stock dividends of subsidiaries | (105) | (105) | (105) |
Net income for common stock | $ (30,567) | $ (20,813) | $ (18,947) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income for common stock | $ 159,877 | $ 168,129 | $ 161,709 |
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 $1,541, $(3,856) and $9,037 for 2015, 2014 and 2013, respectively | (2,334) | 5,840 | (13,686) |
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, $1,132 and $488 for 2015, 2014 and 2013, respectively | 0 | (1,715) | (738) |
Derivatives qualified as cash flow hedges: | |||
Less: reclassification adjustment to net income, net of tax benefits of $150, $150 and $150 for 2015, 2014 and 2013, respectively | 235 | 236 | 235 |
Retirement benefit plans: | |||
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | 5,889 | (234,166) | 223,177 |
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 $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 22,465 | 11,344 | 23,280 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (25,139) | 207,833 | (222,595) |
Other comprehensive income (loss), net of taxes | 1,116 | (10,628) | 9,673 |
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 160,993 | $ 157,501 | $ 171,382 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on securities arising during the period, taxes | $ 1,541 | $ (3,856) | $ 9,037 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 1,132 | 488 |
Less: reclassification adjustment to net income, net of tax benefits of $150, $150 and $150 for 2015, 2014 and 2013, respectively | 150 | 150 | 150 |
Net gains (losses) arising during the period, tax benefits | 3,753 | (149,364) | 142,478 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 14,344 | 7,245 | 14,870 |
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 2015, 2014 and 2013, respectively | $ 16,011 | $ (132,373) | $ 141,777 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 300,478 | $ 175,542 |
Accounts receivable and unbilled revenues, net | 242,766 | 313,696 |
Available-for-sale investment securities | 820,648 | 550,394 |
Stock in Federal Home Loan Bank, at cost | 10,678 | 69,302 |
Loans receivable held for investment, net | 4,565,781 | 4,389,033 |
Loans held for sale, at lower of cost or fair value | 4,631 | 8,424 |
Property, plant and equipment, net | ||
Land | 90,890 | 94,093 |
Plant and equipment | 6,444,214 | 6,137,417 |
Construction in progress | 181,873 | 168,214 |
Property, plant and equipment, gross | 6,716,977 | 6,399,724 |
Less – accumulated depreciation | (2,339,319) | (2,250,950) |
Total property, plant and equipment, net | 4,377,658 | 4,148,774 |
Regulatory assets | 896,731 | 905,264 |
Other | 488,635 | 542,523 |
Goodwill | 82,190 | 82,190 |
Total assets | 11,790,196 | 11,185,142 |
Liabilities | ||
Accounts payable | 138,523 | 186,425 |
Interest and dividends payable | 26,042 | 25,336 |
Deposit liabilities | 5,025,254 | 4,623,415 |
Short-term borrowings—other than bank | 103,063 | 118,972 |
Other bank borrowings | 328,582 | 290,656 |
Long-term debt, net—other than bank | 1,586,546 | 1,506,546 |
Deferred income taxes | 680,877 | 633,570 |
Regulatory liabilities | 371,543 | 344,849 |
Contributions in aid of construction | 506,087 | 466,432 |
Defined benefit pension and other postretirement benefit plans liability | 589,918 | 632,845 |
Other | 471,828 | 531,230 |
Total liabilities | 9,828,263 | 9,360,276 |
Preferred stock of subsidiaries - not subject to mandatory redemption | $ 34,293 | $ 34,293 |
Commitments and contingencies | ||
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: 107,460,406 shares and 102,565,266 shares at December 31, 2015 and 2014, respectively | 1,629,136 | 1,521,297 |
Retained earnings | 324,766 | 296,654 |
Accumulated other comprehensive income (loss), net of taxes | ||
Net unrealized gains (losses) on securities | (1,872) | 462 |
Unrealized losses on derivatives | (54) | (289) |
Retirement benefit plans | (24,336) | (27,551) |
Accumulated other comprehensive income (loss), net of taxes | (26,262) | (27,378) |
Total shareholders’ equity | 1,927,640 | 1,790,573 |
Total capitalization and liabilities | $ 11,790,196 | $ 11,185,142 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 107,460,406 | 102,565,266 |
Common stock, outstanding shares | 107,460,406 | 102,565,266 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2012 | $ 1,593,008 | $ 1,403,484 | $ 215,947 | $ (26,423) |
Balance (in shares) at Dec. 31, 2012 | 97,928,000 | |||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 161,709 | 161,709 | ||
Other comprehensive income (loss), net of tax benefits | 9,673 | 9,673 | ||
Partial settlement of equity forward | 33,409 | $ 33,409 | ||
Partial settlement of equity forward (in shares) | 1,300,000 | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 41,692 | $ 41,692 | ||
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 | ||
Common stock dividends | (122,626) | (122,626) | ||
Ending Balance at Dec. 31, 2013 | 1,726,406 | $ 1,488,126 | 255,030 | (16,750) |
Balance (in shares) at Dec. 31, 2013 | 101,260,000 | |||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | 168,129 | 168,129 | ||
Other comprehensive income (loss), net of tax benefits | (10,628) | (10,628) | ||
Partial settlement of equity forward | 24,873 | $ 24,873 | ||
Partial settlement of equity forward (in shares) | 1,000,000 | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 2,461 | $ 2,461 | ||
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) | ||
Common stock dividends | (126,505) | (126,505) | ||
Ending Balance at Dec. 31, 2014 | $ 1,790,573 | $ 1,521,297 | 296,654 | (27,378) |
Balance (in shares) at Dec. 31, 2014 | 102,565,266 | 102,565,000 | ||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | $ 159,877 | 159,877 | ||
Other comprehensive income (loss), net of tax benefits | 1,116 | 1,116 | ||
Partial settlement of equity forward | 109,183 | $ 109,183 | ||
Partial settlement of equity forward (in shares) | 4,700,000 | |||
Issuance of common stock: Retirement savings and other plans | 5,578 | $ 5,578 | ||
Issuance of common stock: Retirement savings and other plans (in shares) | 195,000 | |||
Issuance of common stock: Expenses and other, net | (6,922) | $ (6,922) | ||
Common stock dividends | (131,765) | (131,765) | ||
Ending Balance at Dec. 31, 2015 | $ 1,927,640 | $ 1,629,136 | $ 324,766 | $ (26,262) |
Balance (in shares) at Dec. 31, 2015 | 107,460,406 | 107,460,000 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 161,767 | $ 170,019 | $ 163,599 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 183,966 | 172,762 | 160,061 |
Other amortization | 11,619 | 10,282 | 7,324 |
Provision for loan losses | 6,275 | 6,126 | 1,507 |
Impairment of utility assets | 6,021 | 1,866 | 0 |
Other | 1,672 | 758 | 0 |
Loans receivable originated and purchased, held for sale | (268,279) | (155,755) | (249,022) |
Proceeds from sale of loans receivable, held for sale | 275,296 | 155,030 | 273,775 |
Gain on sale of credit card portfolio | 0 | 0 | (2,251) |
Increase in deferred income taxes | 41,433 | 104,226 | 80,145 |
Share-based compensation expense | 6,542 | 9,287 | 7,780 |
Excess tax benefits from share-based payment arrangements | (978) | (277) | (430) |
Allowance for equity funds used during construction | (6,928) | (6,771) | (5,561) |
Change in cash overdraft | 0 | (1,038) | 1,038 |
Changes in assets and liabilities | |||
Decrease in accounts receivable and unbilled revenues, net | 62,304 | 33,089 | 16,038 |
Decrease in fuel oil stock | 34,830 | 28,041 | 27,332 |
Increase in regulatory assets | (24,182) | (17,000) | (65,461) |
Increase (decrease) in accounts, interest and dividends payable | (52,663) | (67,189) | 12,406 |
Change in prepaid and accrued income taxes and utility revenue taxes | (42,596) | (39,091) | (19,406) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 852 | 22,251 | (33,014) |
Change in other assets and liabilities | (41,071) | (101,196) | (14,292) |
Net cash provided by operating activities | 355,880 | 325,420 | 361,568 |
Cash flows from investing activities | |||
Available-for-sale investment securities purchased | (429,262) | (183,778) | (112,654) |
Principal repayments on available-for-sale investment securities | 153,271 | 91,013 | 158,558 |
Proceeds from sale of available-for-sale investment securities | 0 | 79,564 | 71,367 |
Purchase of stock from Federal Home Loan Bank | (1,600) | 0 | 0 |
Redemption of stock from Federal Home Loan Bank | 60,223 | 23,244 | 3,476 |
Net increase in loans held for investment | (181,343) | (283,810) | (398,426) |
Proceeds from sale of real estate acquired in settlement of loans | 1,329 | 3,213 | 9,212 |
Proceeds from sale of real estate held for sale | 7,283 | 0 | 0 |
Capital expenditures | (363,804) | (364,826) | (389,438) |
Contributions in aid of construction | 40,239 | 41,806 | 32,160 |
Proceeds from sale of credit card portfolio | 0 | 0 | 26,386 |
Other | 7,940 | 1,125 | 1,177 |
Net cash used in investing activities | (705,724) | (592,449) | (598,182) |
Cash flows from financing activities | |||
Net increase in deposit liabilities | 401,839 | 250,938 | 142,561 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (15,909) | 13,490 | 21,789 |
Net increase (decrease) in retail repurchase agreements | 37,925 | (9,465) | (1,418) |
Proceeds from other bank borrowings | 50,000 | 130,601 | 130,000 |
Repayments of other bank borrowings | (50,000) | (75,000) | (80,000) |
Proceeds from issuance of long-term debt | 80,000 | 125,000 | 286,000 |
Repayment of long-term debt | 0 | (111,400) | (216,000) |
Excess tax benefits from share-based payment arrangements | 978 | 277 | 430 |
Net proceeds from issuance of common stock | 104,435 | 26,898 | 55,086 |
Common stock dividends | (131,765) | (126,458) | (98,383) |
Preferred stock dividends of subsidiaries | (1,890) | (1,890) | (1,890) |
Other | (833) | (456) | (1,187) |
Net cash used in financing activities | 474,780 | 222,535 | 236,988 |
Net increase (decrease) in cash and equivalents | 124,936 | (44,494) | 374 |
Cash and cash equivalents, January 1 | 175,542 | 220,036 | 219,662 |
Cash and cash equivalents, December 31 | $ 300,478 | $ 175,542 | $ 220,036 |
Consolidated Statements of In10
Consolidated Statements of Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 624,032 | $ 717,176 | $ 623,912 | $ 637,862 | $ 790,040 | $ 867,096 | $ 798,657 | $ 783,749 | $ 2,602,982 | $ 3,239,542 | $ 3,238,470 |
Expenses | |||||||||||
Total expenses | 2,280,429 | 2,906,942 | 2,920,962 | ||||||||
Operating income | 83,222 | 97,095 | 72,730 | 69,506 | 68,167 | 92,036 | 83,183 | 89,214 | 322,553 | 332,600 | 317,508 |
Allowance for equity funds used during construction | 6,928 | 6,771 | 5,561 | ||||||||
Allowance for borrowed funds used during construction | 2,457 | 2,579 | 2,246 | ||||||||
Income before income taxes | 254,788 | 265,598 | 249,836 | ||||||||
Income taxes | 93,021 | 95,579 | 86,237 | ||||||||
Net income (loss) | 42,793 | 51,144 | 35,491 | 32,339 | 33,726 | 48,279 | 41,754 | 46,260 | 161,767 | 170,019 | 163,599 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 42,320 | 50,673 | 35,018 | 31,866 | 33,253 | 47,808 | 41,281 | 45,787 | 159,877 | 168,129 | 161,709 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Revenues | 555,434 | 648,127 | 558,163 | 573,442 | 725,267 | 803,565 | 738,429 | 720,062 | 2,335,166 | 2,987,323 | 2,980,172 |
Expenses | |||||||||||
Fuel oil | 654,600 | 1,131,685 | 1,185,552 | ||||||||
Purchased power | 594,096 | 722,008 | 710,681 | ||||||||
Other operation and maintenance | 413,089 | 410,612 | 403,270 | ||||||||
Depreciation | 177,380 | 166,387 | 154,025 | ||||||||
Taxes, other than income taxes | 221,885 | 280,863 | 281,131 | ||||||||
Total expenses | 2,061,050 | 2,711,555 | 2,734,659 | ||||||||
Operating income | 67,662 | 82,657 | 66,161 | 57,636 | 58,878 | 76,156 | 70,068 | 70,666 | 274,116 | 275,768 | 245,513 |
Allowance for equity funds used during construction | 6,928 | 6,771 | 5,561 | ||||||||
Interest expense and other charges, net | (66,370) | (64,757) | (59,279) | ||||||||
Allowance for borrowed funds used during construction | 2,457 | 2,579 | 2,246 | ||||||||
Income before income taxes | 217,131 | 220,361 | 194,041 | ||||||||
Income taxes | 79,422 | 80,725 | 69,117 | ||||||||
Net income (loss) | 33,492 | 43,504 | 33,340 | 27,373 | 29,611 | 39,377 | 34,729 | 35,919 | 137,709 | 139,636 | 124,924 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 136,794 | 138,721 | 124,009 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 29,112 | $ 38,879 | $ 34,230 | $ 35,420 | $ 135,714 | $ 137,641 | $ 122,929 |
Consolidated Statements of Co11
Consolidated Statements of Comprehensive Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income for common stock | $ 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | $ 33,253 | $ 47,808 | $ 41,281 | $ 45,787 | $ 159,877 | $ 168,129 | $ 161,709 |
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($59), $6,164 and ($10,450) for 2015, 2014 and 2013, respectively | 5,889 | (234,166) | 223,177 | ||||||||
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 $1,011, $561 and $1,187 for 2015, 2014 and 2013, respectively | 22,465 | 11,344 | 23,280 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (25,139) | 207,833 | (222,595) | ||||||||
Other comprehensive income (loss), net of taxes | 1,116 | (10,628) | 9,673 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 160,993 | 157,501 | 171,382 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Net income for common stock | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 29,112 | $ 38,879 | $ 34,230 | $ 35,420 | 135,714 | 137,641 | 122,929 |
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($59), $6,164 and ($10,450) for 2015, 2014 and 2013, respectively | 5,638 | (218,608) | 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 of $1,011, $561 and $1,187 for 2015, 2014 and 2013, respectively | 20,381 | 10,212 | 20,694 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (25,139) | 207,833 | (222,595) | ||||||||
Other comprehensive income (loss), net of taxes | 880 | (563) | 1,578 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 136,594 | $ 137,078 | $ 124,507 |
Consolidated Statements of Co12
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net gains (losses) arising during the period, tax benefits | $ (3,753) | $ 149,364 | $ (142,478) |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 14,344 | 7,245 | 14,870 |
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 2015, 2014 and 2013, respectively | 16,011 | (132,373) | 141,777 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Net gains (losses) arising during the period, tax benefits | (3,590) | 139,236 | (129,601) |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 12,981 | 6,504 | 13,180 |
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 2015, 2014 and 2013, respectively | $ 16,011 | $ (132,373) | $ 141,777 |
Consolidated Balance Sheets - H
Consolidated Balance Sheets - HECO - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, plant and equipment, net | ||
Total property, plant and equipment, net | $ 4,377,658 | $ 4,148,774 |
Assets, Current [Abstract] | ||
Total assets | 11,790,196 | 11,185,142 |
Capitalization and liabilities | ||
Common stock equity | 1,629,136 | 1,521,297 |
Cumulative preferred stock – not subject to mandatory redemption | $ 0 | $ 0 |
Commitments and contingencies | ||
Liabilities | ||
Interest and dividends payable | $ 26,042 | $ 25,336 |
Deferred credits and other liabilities | ||
Deferred income taxes | 633,570 | |
Contributions in aid of construction | 506,087 | 466,432 |
Total capitalization and liabilities | 11,790,196 | 11,185,142 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Property, plant and equipment, net | ||
Land | 52,792 | 52,299 |
Plant and equipment | 6,315,698 | 6,009,482 |
Less accumulated depreciation | (2,266,004) | (2,175,510) |
Construction in progress | 175,309 | 158,616 |
Utility property, plant and equipment, net | 4,277,795 | 4,044,887 |
Nonutility property, plant and equipment, less accumulated depreciation of $1,229 and $1,227 at respective dates | 7,272 | 6,563 |
Total property, plant and equipment, net | 4,285,067 | 4,051,450 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | 24,449 | 13,762 |
Customer accounts receivable, net | 132,778 | 158,484 |
Accrued unbilled revenues, net | 84,509 | 137,374 |
Other accounts receivable, net | 10,408 | 4,283 |
Fuel oil stock, at average cost | 71,216 | 106,046 |
Materials and supplies, at average cost | 54,429 | 57,250 |
Prepayments and other | 36,640 | 33,468 |
Regulatory assets | 72,231 | 71,421 |
Total current assets | 486,660 | 582,088 |
Regulatory assets | 824,500 | 833,843 |
Unamortized debt expense | 8,341 | 8,323 |
Other | 75,486 | 81,838 |
Total other long-term assets | 908,327 | 924,004 |
Total assets | 5,680,054 | 5,557,542 |
Capitalization and liabilities | ||
Common stock equity | 1,728,325 | 1,682,144 |
Cumulative preferred stock – not subject to mandatory redemption | $ 34,293 | $ 34,293 |
Commitments and contingencies | ||
Long-term debt, net | $ 1,286,546 | $ 1,206,546 |
Total capitalization | 3,049,164 | 2,922,983 |
Liabilities | ||
Accounts payable | 114,846 | 163,934 |
Interest and dividends payable | 23,111 | 22,316 |
Taxes accrued | 191,084 | 250,402 |
Regulatory liabilities | 2,204 | 632 |
Other | 54,079 | 61,664 |
Total current liabilities | 385,324 | 498,948 |
Deferred credits and other liabilities | ||
Deferred income taxes | 654,806 | 573,439 |
Regulatory liabilities | 369,339 | 344,217 |
Unamortized tax credits | 84,214 | 79,492 |
Defined benefit pension and other postretirement benefit plans liability | 552,974 | 595,395 |
Other | 78,146 | 76,636 |
Total deferred credits and other liabilities | 1,739,479 | 1,669,179 |
Contributions in aid of construction | 506,087 | 466,432 |
Total capitalization and liabilities | $ 5,680,054 | $ 5,557,542 |
Consolidated Balance Sheets -14
Consolidated Balance Sheets - HECO (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on other property, plant and equipment | $ 1,229 | $ 1,227 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock equity | ||
Retained earnings | $ 324,766,000 | $ 296,654,000 |
Accumulated other comprehensive income (loss), net of taxes - retirement benefit plans | (24,336,000) | (27,551,000) |
Total shareholders' equity | 1,927,640,000 | 1,790,573,000 |
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: 2015, 15,805,327 shares and 2014, 15,805,327 shares | 105,388,000 | 105,388,000 |
Additional paid in capital | 578,930,000 | 578,938,000 |
Retained earnings | 1,043,082,000 | 997,773,000 |
Accumulated other comprehensive income (loss), net of taxes - retirement benefit plans | 925,000 | 45,000 |
Total shareholders' equity | $ 1,728,325,000 | $ 1,682,144,000 |
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 | 462,000,000 |
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 824,546,000 | 744,546,000 |
Total long-term debt | 1,286,546,000 | 1,206,546,000 |
Less unamortized discount | 0 | 0 |
Current portion of long-term debt | 0 | 0 |
Long-term debt, net | 1,286,546,000 | 1,206,546,000 |
Total capitalization | $ 3,049,164,000 | $ 2,922,983,000 |
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 – unsecured: | ||
Other long-term debt - unsecured | 773,000,000 | 693,000,000 |
Hawaiian Electric Company, Inc (HECO) | ||
Common stock equity | ||
Total shareholders' equity | 1,728,325,000 | 1,682,144,000 |
Other long-term debt – unsecured: | ||
Long-term debt, net | 880,546,000 | 830,546,000 |
Total capitalization | $ 2,631,164,000 | $ 2,534,983,000 |
Hawaiian Electric Company, Inc (HECO) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 3.25% | 3.25% |
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 | $ 0 |
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 | $ 0 | $ 40,000,000 |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate (as a percent) | 5.23% | 5.23% |
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 50,000,000 | $ 0 |
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 – 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 – 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 – 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 – 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 – 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 – 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 – 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 – 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 – 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 – unsecured: | ||
Other long-term debt - unsecured | $ 51,546,000 | $ 51,546,000 |
Hawaii Electric Light Company, Inc. (HELCO) | ||
Common stock equity | ||
Total shareholders' equity | 292,702,000 | 281,846,000 |
Other long-term debt – unsecured: | ||
Long-term debt, net | 215,000,000 | 190,000,000 |
Total capitalization | $ 514,702,000 | $ 478,846,000 |
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) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 3.25% | 3.25% |
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 | $ 0 |
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 | $ 0 | $ 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% | |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate (as a percent) | 5.23% | 5.23% |
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 25,000,000 | $ 0 |
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 – 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 – 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 – 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 – 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 – unsecured: | ||
Other long-term debt - unsecured | $ 20,000,000 | $ 20,000,000 |
Maui Electric Company, Limited (MECO) | ||
Common stock equity | ||
Total shareholders' equity | 263,725,000 | 256,692,000 |
Other long-term debt – unsecured: | ||
Long-term debt, net | 191,000,000 | 186,000,000 |
Total capitalization | $ 459,725,000 | $ 447,692,000 |
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) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 3.25% | 3.25% |
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 | $ 0 |
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 | $ 0 | $ 2,000,000 |
Maui Electric Company, Limited (MECO) | Maui Electric, 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate (as a percent) | 5.23% | 5.23% |
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 5,000,000 | $ 0 |
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 – 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 – 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 – 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 – 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 – unsecured: | ||
Other long-term debt - unsecured | $ 30,000,000 | $ 30,000,000 |
Consolidated Statements of Ch16
Consolidated Statements of Changes in Common Stock Equity - HECO - USD ($) $ in Thousands | Total | Hawaiian Electric Company, Inc. and Subsidiaries | Common stockHawaiian Electric Company, Inc. and Subsidiaries | Premium on capital stockHawaiian Electric Company, Inc. and Subsidiaries | Retained earnings | Retained earningsHawaiian Electric Company, Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Hawaiian Electric Company, Inc. and Subsidiaries |
Beginning Balance at Dec. 31, 2012 | $ 1,593,008 | $ 1,472,136 | $ 97,788 | $ 468,045 | $ 215,947 | $ 907,273 | $ (26,423) | $ (970) |
Balance (in shares) at Dec. 31, 2012 | 14,665,000 | |||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 161,709 | 122,929 | 161,709 | 122,929 | ||||
Other comprehensive income (loss), net of tax benefits | 9,673 | 1,578 | 9,673 | 1,578 | ||||
Issuance of common stock, net of expenses | 78,499 | $ 5,092 | 73,407 | |||||
Issuance of common stock, net of expenses (in shares) | 764,000 | |||||||
Common stock dividends | (122,626) | (81,578) | (122,626) | (81,578) | ||||
Ending Balance at Dec. 31, 2013 | 1,726,406 | 1,593,564 | $ 102,880 | 541,452 | 255,030 | 948,624 | (16,750) | 608 |
Balance (in shares) at Dec. 31, 2013 | 15,429,000 | |||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 168,129 | 137,641 | 168,129 | 137,641 | ||||
Other comprehensive income (loss), net of tax benefits | (10,628) | (563) | (10,628) | (563) | ||||
Issuance of common stock, net of expenses | 39,994 | $ 2,508 | 37,486 | |||||
Issuance of common stock, net of expenses (in shares) | 376,000 | |||||||
Common stock dividends | (126,505) | (88,492) | (126,505) | (88,492) | ||||
Ending Balance at Dec. 31, 2014 | $ 1,790,573 | 1,682,144 | $ 105,388 | 578,938 | 296,654 | 997,773 | (27,378) | 45 |
Balance (in shares) at Dec. 31, 2014 | 102,565,266 | 15,805,000 | ||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | $ 159,877 | 135,714 | 159,877 | 135,714 | ||||
Other comprehensive income (loss), net of tax benefits | 1,116 | 880 | 1,116 | 880 | ||||
Issuance of common stock, net of expenses | $ 0 | |||||||
Issuance of common stock, net of expenses (in shares) | 0 | |||||||
Common stock issuance expense | (8) | (8) | ||||||
Common stock dividends | (131,765) | (90,405) | (131,765) | (90,405) | ||||
Ending Balance at Dec. 31, 2015 | $ 1,927,640 | $ 1,728,325 | $ 105,388 | $ 578,930 | $ 324,766 | $ 1,043,082 | $ (26,262) | $ 925 |
Balance (in shares) at Dec. 31, 2015 | 107,460,406 | 15,805,000 |
Consolidated Statements of Ca17
Consolidated Statements of Capitalization (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 107,460,406 | 102,565,266 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 15,805,327 | 15,805,327 |
Common stock, par value (in dollars per share) | $ 6.667 | $ 6.667 |
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) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 3.25% | 3.25% |
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, 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate (as a percent) | 5.23% | 5.23% |
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 | 7.625% | 7.625% |
Shares outstanding December 31, 2013 | 70,000 | 70,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 3.25% | 3.25% |
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, 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate (as a percent) | 5.23% | 5.23% |
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 | 7.625% | 7.625% |
Shares outstanding December 31, 2013 | 50,000 | 50,000 |
Maui Electric Company, Limited (MECO) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate (as a percent) | 3.25% | 3.25% |
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, 5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate (as a percent) | 5.23% | 5.23% |
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 Ca18
Consolidated Statements of Cash Flows - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 161,767 | $ 170,019 | $ 163,599 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 183,966 | 172,762 | 160,061 |
Other amortization | 11,619 | 10,282 | 7,324 |
Impairment of utility assets | 6,021 | 1,866 | 0 |
Other | 1,672 | 758 | 0 |
Increase in deferred income taxes | 41,433 | 104,226 | 80,145 |
Allowance for equity funds used during construction | (6,928) | (6,771) | (5,561) |
Change in cash overdraft | 0 | (1,038) | 1,038 |
Changes in assets and liabilities | |||
Decrease in fuel oil stock | 34,830 | 28,041 | 27,332 |
Increase in regulatory assets | (24,182) | (17,000) | (65,461) |
Change in prepaid and accrued income taxes and revenue taxes | (42,596) | (39,091) | (19,406) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 852 | 22,251 | (33,014) |
Change in other assets and liabilities | (41,071) | (101,196) | (14,292) |
Net cash provided by operating activities | 355,880 | 325,420 | 361,568 |
Cash flows from investing activities | |||
Capital expenditures | (363,804) | (364,826) | (389,438) |
Contributions in aid of construction | 40,239 | 41,806 | 32,160 |
Other | 7,940 | 1,125 | 1,177 |
Net cash used in investing activities | (705,724) | (592,449) | (598,182) |
Cash flows from financing activities | |||
Common stock dividends | (131,765) | (126,458) | (98,383) |
Net proceeds from issuance of common stock | 104,435 | 26,898 | 55,086 |
Proceeds from issuance of long-term debt | 80,000 | 125,000 | 286,000 |
Repayment of long-term debt | 0 | (111,400) | (216,000) |
Other | (833) | (456) | (1,187) |
Net cash used in financing activities | 474,780 | 222,535 | 236,988 |
Net increase (decrease) in cash and equivalents | 124,936 | (44,494) | 374 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income | 137,709 | 139,636 | 124,924 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 177,380 | 166,387 | 154,025 |
Other amortization | 8,939 | 9,897 | 7,734 |
Impairment of utility assets | 6,021 | 1,866 | 0 |
Other | 1,672 | 758 | 0 |
Increase in deferred income taxes | 75,626 | 82,947 | 64,507 |
Change in tax credits, net | 4,844 | 6,062 | 7,017 |
Allowance for equity funds used during construction | (6,928) | (6,771) | (5,561) |
Change in cash overdraft | 0 | (1,038) | 1,038 |
Changes in assets and liabilities | |||
Decrease in accounts receivable | 23,727 | 26,743 | 49,445 |
Decrease (increase) in accrued unbilled revenues | 40,093 | 6,750 | (9,826) |
Decrease in fuel oil stock | 34,830 | 28,041 | 27,332 |
Decrease (increase) in materials and supplies | 2,821 | (72) | (7,959) |
Increase in regulatory assets | (24,182) | (17,000) | (65,461) |
Increase (decrease) in accounts payable | (54,555) | (65,527) | 14,731 |
Change in prepaid and accrued income taxes and revenue taxes | (63,096) | (4,036) | (2,028) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,125 | (961) | 2,240 |
Change in other assets and liabilities | (32,620) | (66,687) | (35,293) |
Net cash provided by operating activities | 333,406 | 306,995 | 326,865 |
Cash flows from investing activities | |||
Capital expenditures | (350,161) | (336,679) | (378,044) |
Contributions in aid of construction | 40,239 | 41,806 | 32,160 |
Other | 1,140 | 1,164 | 907 |
Net cash used in investing activities | (308,782) | (293,709) | (344,977) |
Cash flows from financing activities | |||
Common stock dividends | (90,405) | (88,492) | (81,578) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) |
Net proceeds from issuance of common stock | 0 | 40,000 | 78,500 |
Proceeds from issuance of long-term debt | 80,000 | 0 | 236,000 |
Repayment of long-term debt | 0 | (11,400) | (166,000) |
Other | (1,537) | (462) | (1,149) |
Net cash used in financing activities | (13,937) | (62,349) | 63,778 |
Net increase (decrease) in cash and equivalents | 10,687 | (49,063) | 45,666 |
Cash and cash equivalents, beginning of period | 13,762 | 62,825 | 17,159 |
Cash and cash equivalents, end of period | $ 24,449 | $ 13,762 | $ 62,825 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2015 | |
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 HEI and its subsidiaries (collectively, 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 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. 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 3.2% , 3.1% and 3.1% in 2015 , 2014 and 2013 , respectively. 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. HEI's consolidated operating lease expense was $ 18 million , $ 19 million and $19 million in 2015 , 2014 and 2013 , respectively. The Utilities' operating lease expense was $9 million , $9 million and $8 million in 2015 , 2014 and 2013 , respectively. HEI's consolidated and the Utilities' future minimum lease payments are as follows: (in millions) HEI Hawaiian Electric 2016 $ 11 $ 5 2017 10 4 2018 7 3 2019 6 2 2020 4 2 Thereafter 10 6 $ 48 $ 22 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 the Company. 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 charged to expense 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, real estate owned, 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. For 2014 and 2013, HEI used the two-class method of computing EPS as restricted stock grants included non-forfeitable rights to dividends and were participating securities. Under the two-class method of computing EPS, HEI's EPS was comprised as follows for both participating securities (i.e., restricted shares that became fully vested in the fourth quarter of 2014) and unrestricted common stock: 2014 2013 Basic Diluted Basic Diluted Distributed earnings $ 1.24 $ 1.24 $ 1.24 $ 1.24 Undistributed earnings 0.41 0.39 0.39 0.38 $ 1.65 $ 1.63 $ 1.63 $ 1.62 As of December 31, 2015 there were no remaining share awards that could have been potentially antidilutive. As of December 31, 2014 , there were no shares that were antidilutive. As of December 31, 2013 , 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. Investments in Qualified Affordable Housing Projects . In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 and investment amortization, net of tax credits, may be recognized in the income statement as a component of income taxes attributable to continuing operations. The amendments also require additional disclosures. The Company retrospectively adopted ASU No. 2014-01 in the first quarter of 2015. For prior periods, pursuant to ASU No. 2014-01, (a) amortization expense related to ASB’s qualifying investments in low income housing tax credits was reclassified from noninterest expense to income taxes; and (b) additional amortization, net of associated tax benefits was recognized in income taxes as a result of the adoption. The cumulative effect to retained earnings as of January 1, 2013 of adopting this guidance was a reduction of $0.9 million . Amounts in the financial statements as of December 31, 2014, 2013 and 2012 and for the years ended December 31, 2014 and 2013, have been updated to reflect the retrospective application. The table below summarizes the impact to prior period financial statements of the retrospective adoption of ASU No. 2014-01: HEI Consolidated ASB (in thousands) As previously filed Adjust-ment from adoption of ASU No. 2014-01 Reclassi-fications As currently reported As previously filed Adjust-ment As currently reported HEI Consolidated Income Statements/ASB Statements of Income Data Year ended December 31, 2014 Bank expenses/Noninterest expense $ 176,878 $ (3,676 ) $ 173,202 $ 159,944 $ (3,676 ) $ 156,268 Bank operating income/Income before income taxes 75,619 3,676 79,295 75,619 3,676 79,295 Income taxes 91,712 3,867 95,579 24,127 3,867 27,994 Net income for common stock/Net income 168,320 (191 ) 168,129 51,492 (191 ) 51,301 Year ended December 31, 2013 Bank expenses/Noninterest expense 171,090 (2,089 ) 169,001 159,504 (2,089 ) 157,415 Bank operating income/Income before income taxes 87,057 2,089 89,146 87,059 2,089 89,148 Income taxes 84,341 1,896 86,237 29,525 1,896 31,421 Net income for common stock/Net income 161,516 193 161,709 57,534 193 57,727 HEI Consolidated Balance Sheet/ASB Balance Sheet Data December 31, 2014 Other assets 541,542 981 542,523 304,435 981 305,416 Total assets and Total liabilities and shareholders’ equity 11,184,161 981 11,185,142 5,565,241 981 5,566,222 Deferred income taxes/Other liabilities 631,734 1,836 633,570 116,527 1,836 118,363 Total liabilities 9,358,440 1,836 9,360,276 5,030,598 1,836 5,032,434 Retained earnings 297,509 (855 ) 296,654 212,789 (855 ) 211,934 Total shareholders’ equity 1,791,428 (855 ) 1,790,573 534,643 (855 ) 533,788 HEI Consolidated Statements of Changes in Stockholders’ Equity December 31, 2013 Retained earnings 255,694 (664 ) 255,030 Total shareholders’ equity 1,727,070 (664 ) 1,726,406 December 31, 2012 Retained earnings 216,804 (857 ) 215,947 Total shareholders’ equity 1,593,865 (857 ) 1,593,008 HEI Consolidated Statements of Cash Flows Year ended December 31, 2014 Net income 170,210 (191 ) 170,019 Increase in deferred income taxes 103,916 310 104,226 Change in other assets and liabilities (94,966 ) (119 ) $ (6,111 ) (101,196 ) Year ended December 31, 2013 Net income 163,406 193 163,599 Increase in deferred income taxes 80,399 (254 ) 80,145 Change in other assets and liabilities (11,696 ) 61 (2,657 ) (14,292 ) 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 adopted ASU No. 2014-04 in the first quarter of 2015 and the adoption did not 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 2018, 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 adopted ASU No. 2014-11 in the first quarter of 2015 and the adoption did not have a material impact on the Company’s results of operations, financial condition or liquidity. Debt issuance costs . In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company plans to retrospectively adopt ASU No. 2015-03 in the first quarter 2016 and does not expect the adoption to have a material impact on the Company’s results of operations, financial condition or liquidity. Investments in certain entities that calculate net asset value per share . In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and limits certain disclosures to those investments. The Company plans to retrospectively adopt ASU No. 2015-07 in the first quarter 2016 and will adjust its disclosures on the fair value of retirement benefit plan assets accordingly. Balance sheet classification of deferred taxes . In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which eliminates the current requirement for entities to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet and instead requires all deferred tax liabilities and assets be classified as noncurrent. The Utilities retrospectively adopted ASU No. 2015-17 in the fourth quarter of 2015. Hawaiian Electric’s consolidated balance sheets as of December 31, 2015 and 2014, which are classified balance sheets, do not separate deferred tax liabilities and assets into a current amount and a noncurrent amount, but presents all deferred tax liabilities and assets as noncurrent amounts. The table below summarizes the impact to the prior period financial statements of the adoption of ASU No. 2015-17: (in thousands) As previously filed Adjustment from adoption of ASU No. 2015-17 As currently reported December 31, 2014 Hawaiian Electric Consolidated Balance Sheet Prepayments and other $ 66,383 $ (32,915 ) $ 33,468 Total current assets 615,003 (32,915 ) 582,088 Total assets and Total capitalization and liabilities 5,590,457 (32,915 ) 5,557,542 Other current liabilities 65,146 (3,482 ) 61,664 Total current liabilities 502,430 (3,482 ) 498,948 Deferred income taxes 602,872 (29,433 ) 573,439 Total deferred credits and other liabilities 1,698,612 (29,433 ) 1,669,179 Note 4 - Hawaiian Electric Consolidating Balance Sheet Hawaiian Electric (parent only) Prepayments and other 44,680 (24,449 ) 20,231 Total current assets 463,929 (24,449 ) 439,480 Total assets and Total liabilities and shareholders’ equity 4,396,815 (24,449 ) 4,372,366 Other current liabilities 48,282 (2,913 ) 45,369 Total current liabilities 362,652 (2,913 ) 359,739 Deferred income taxes 429,515 (21,536 ) 407,979 Total deferred credits and other liabilities 1,215,441 (21,536 ) 1,193,905 Hawaii Electric Light Prepayments and other 8,611 1,526 10,137 Total current assets 77,561 1,526 79,087 Total assets and Total liabilities and shareholders’ equity 924,885 1,526 926,411 Other current liabilities 9,866 (279 ) 9,587 Total current liabilities 85,631 (279 ) 85,352 Deferred income taxes 90,119 1,805 91,924 Total deferred credits and other liabilities 265,993 1,805 267,798 Maui Electric Prepayments and other 13,567 (9,992 ) 3,575 Total current assets 98,911 (9,992 ) 88,919 Total assets and Total liabilities and shareholders’ equity 832,977 (9,992 ) 822,985 Other current liabilities 16,094 (290 ) 15,804 Total current liabilities 79,646 (290 ) 79,356 Deferred income taxes 83,238 (9,702 ) 73,536 Total deferred credits and other liabilities 217,421 (9,702 ) 207,719 December 31, 2013 Note 3 - Hawaiian Electric Consolidated assets 5,087,129 (20,702 ) 5,066,427 Financial instruments . In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which, among other things: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). • Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The Company plans to adopt ASU No. 2016-01 in the first quarter of 2018 and has not yet determined the impact of adoption. Reclassifications. Reclassifications made to prior years’ financial statements to conform to the 2015 presentation did not affect previously reported results of operations and include additional detail of noncash items in operating activities on the Company's and Hawaiian Electric's Consolidated Statements of Cash Flows. 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. At December 31, 2015 and 2014 , the allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable was $1.7 million and $2.0 million , respectively. 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. 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-generate |
Proposed Merger
Proposed Merger | 12 Months Ended |
Dec. 31, 2015 | |
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 to 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 price 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, Inc. (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). Some, but not all, of these conditions have been satisfied and certain of these conditions will only be satisfied shortly before closing. The Merger Agreement contains customary representations, warranties and covenants of HEI and NEE. 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 June 3, 2016, and further provides that upon termination of the Merger Agreement under specified circumstances NEE would be required to pay HEI a termination fee of $90 million and reimburse HEI for up to $5 million of its documented out-of-pocket expenses incurred in connection with the Merger Agreement. On January 29, 2015, HEI submitted its application to the FERC requesting all necessary authorizations to consummate the transactions contemplated by the Merger Agreement. The FERC issued its order authorizing the proposed merger on March 27, 2015. On February 1, 2015, HEI submitted a letter to the FRB advising the FRB of its intent to seek deregistration as a Savings & Loan Holding Company (SLHC) to be effective upon the contemplated Spin-off of ASB Hawaii. On March 26, 2015, NEE’s Form S-4, which registers NEE common stock expected to be issued in the Initial Merger, was declared effective. On March 30, 2015, ASB Hawaii filed its Form 10, the registration statement for the ASB Hawaii shares expected to be distributed in the Spin-Off. HEI Shareholders approved the proposed merger agreement with NEE on June 10, 2015. On August 7, 2015, each of HEI and NEE filed their respective notifications pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act), with the U.S. Department of Justice and Federal Trade Commission. On September 8, 2015, the mandatory, pre-merger waiting period under the HSR Act expired. PUC application . In January 2015, NEE and Hawaiian Electric filed an application with the PUC requesting approval of the proposed Merger (under which Hawaiian Electric would become a wholly-owned indirect subsidiary of NEE). 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 reduce the RAM, which amounts to approximately $60 million in cumulative savings for customers, over the four -year base rate moratorium, subject to certain exceptions and conditions, including that the following remain in effect: the revenue balancing account (RBA) and RAM tariff provisions, the Renewable Energy Infrastructure Program, and Renewable Energy Infrastructure Surcharge, the integrated resource planning/DSM Recovery tariff provisions, the ECAC tariff provisions, the PPA tariff provision and the Pension and OPEB tracker mechanism. Various governmental, environmental and commercial interests groups have been allowed to intervene in the proceeding. Twenty-eight interveners filed direct testimonies in the docket in July 2015. Eleven interveners recommended the merger not be approved, eleven recommended approval only with conditions, and six did not specifically make a recommendation either way. The Consumer Advocate filed its direct testimonies on August 10, 2015, stating that the Applicants have not justified that the proposed transaction is in the public interest but that if the Consumer Advocate’s recommended conditions were adopted, the results would reflect substantial net benefits that would support a finding that the proposed transaction is in the public interest. Among its recommended conditions was a rate plan to permanently reduce the Utilities’ rates by approximately $62 million annually. On August 31, 2015, the Applicants filed their responsive testimonies, offering a number of additional commitments, including: • subject to PUC approval, completing full smart meter deployment to all customers by December 31, 2019 • reflecting 100% of all net non-fuel O&M savings achieved by the Utilities and limiting non-fuel O&M expenses to levels no higher than the non-fuel O&M expenses in 2014, adjusted for inflation, in the revenue requirements in the first rate case following the four-year rate case moratorium • establishing a funding mechanism of $2.5 million per year during the four-year rate case moratorium to be used for purposes in the public interest at the PUC’s discretion and direction • committing to corporate giving of at least $2.2 million for a minimum of 10 years post-closing • committing to not selling the Utilities or their holding company for at least 10 years post-closing On October 7, 2015, the other parties filed rebuttal testimonies, and on October 16, 2015, the Applicants filed their surrebuttal testimonies. Discovery was conducted over a six month period and concluded on October 14, 2015 with the filing of final information request (IR) responses. On November 27, 2015, pursuant to entering into an agreement with the Department of the Navy on behalf of the Department of Defense (DOD), the Applicants filed a motion to admit revised stipulated commitments into evidence, which revised Applicants’ commitments to include the following 3 main changes: • committing to undertake good faith efforts to achieve a consolidated renewable portfolio standard of thirty-five percent of net electricity sales by December 31, 2020, and fifty percent of net electricity sales by December 31, 2030; • committing to and specifying in detail how $60 million in total rate credits will be provided over the four-year base rate moratorium period; and • commiting to (i) establish a new intermediate holding company, Hawaiian Electric Utility Holdings, which will have a voting board of directors and a majority of the members of the board of directors who will be residents of Hawaii, (ii) implement a suite of additional ring fencing commitments, and (iii) develop employees from within the Companies to fill executive vacancies In connection with the agreement, on November 27, 2015, DOD filed a motion to withdraw from the proceeding. Prior to this date, three other parties had withdrawn from the proceeding. The initial round of evidentiary hearings were held from November 30 to December 16, 2015. On January 4, 2016, the PUC issued an order granting the Applicants’ motion to admit revised stipulated commitments into evidence and permitting additional discovery and testimony by the other parties regarding the revised stipulated commitments, and denying DOD’s motion to withdraw. Evidentiary hearings were reconvened and held from February 1 to 10, 2016. Further evidentiary hearings are scheduled to reconvene from February 29 to March 4, 2016. 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 January 23, 2015, the Cohn State Action was voluntarily dismissed. On January 27, 2015, Cohn filed a purported class action captioned Cohn v. Hawaiian Electric Industries, Inc., et al., Civil No. 15-00029-JMS-RLP 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 Cohn Federal Action). On February 13, 2015, the state court orally granted the plaintiffs’ motions to consolidate the seven state court actions and appoint co-lead counsel and entered a written order granting the motions on March 6, 2015. On March 10, 2015, plaintiffs filed a first consolidated complaint in state court that added as a defendant J.P. Morgan Securities, LLC (JP Morgan), the financial advisor to HEI for the Merger, and deleted Hawaiian Electric Company, Inc. as a defendant and concurrently served a first request for production of documents on HEI and the individual directors. On March 17, 2015, plaintiffs filed a motion for limited expedited discovery in the consolidated state action and thereafter on March 25, 2015 withdrew their request for limited discovery and first request for production of documents as a result of the parties’ agreement to conduct certain specified limited discovery which included a stipulated confidentiality agreement and protective order protecting the confidentiality of certain information exchanged between the parties in connection with discovery in the consolidated action that was filed on April 6, 2015. On April 15 and 17, 2015, a deposition of a representative of HEI and a representative of JP Morgan were taken, respectively. On April 21, 2015, plaintiffs confirmed the cancellation of the preliminary injunction hearing that had been scheduled for May 5, 2015 in the consolidated action and on April 23, 2015, the state court entered a stipulation and order to extend indefinitely the time to answer or otherwise respond to the first amended consolidated complaint. On April 30, 2015, the state court entered a consolidated case management order confirming the consolidated treatment of the state actions for purposes of case management, pretrial discovery, procedural and other matters. On May 27, 2015, the federal court entered a stipulation and order approving the stipulation of the parties to stay the Cohn Federal Action pending the resolution of the state court consolidated action and administratively closing the Cohn Federal Action without prejudice to any party. On May 29, 2015, the state court entered a stipulated order amending the consolidated caption to read IN RE Consolidated HEI Shareholder Cases, Master File No. Civil No. 1CC15-1-HEI, to add JP Morgan as a named defendant in each individual action, add the caption for the Grieco Action, and remove Hawaiian Electric Company, Inc. from the caption in the Brown Action. In October 2015, several depositions of HEI representatives were taken in the state consolidated action. On February 9, 2016, plaintiffs filed an ex parte motion for second extension of time to file the pretrial statement in the state consolidated action from February 15, 2016 to August 15, 2016. The 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. Plaintiffs in the consolidated state action also allege that JP Morgan had a conflict of interest in advising HEI because JP Morgan and its affiliates had business ties to and investments in NEE. The consolidated state action also alleges that the HEI board of directors violated its fiduciary duties by omitting material facts from the Registration Statement on Form S-4. 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 in the complaints are without merit and intend to defend these lawsuits vigorously. |
Segment financial information
Segment financial information | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 Revenues from external customers $ 2,335,135 $ 267,733 $ 114 $ 2,602,982 Intersegment revenues (eliminations) 31 — (31 ) — Revenues 2,335,166 267,733 83 2,602,982 Depreciation and amortization 186,319 7,928 1,338 195,585 Interest expense, net 66,370 11,326 10,780 88,476 Income (loss) before income taxes 217,131 83,812 (46,155 ) 254,788 Income taxes (benefit) 79,422 29,082 (15,483 ) 93,021 Net income (loss) 137,709 54,730 (30,672 ) 161,767 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 135,714 54,730 (30,567 ) 159,877 Capital expenditures 350,161 13,470 173 363,804 Assets (at December 31, 2015) 5,680,054 6,014,755 95,387 11,790,196 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 176,284 5,399 1,361 183,044 Interest expense, net 64,757 10,808 11,595 87,160 Income (loss) before income taxes 220,361 79,295 (34,058 ) 265,598 Income taxes (benefit) 80,725 27,994 (13,140 ) 95,579 Net income (loss) 139,636 51,301 (20,918 ) 170,019 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 137,641 51,301 (20,813 ) 168,129 Capital expenditures 336,679 28,073 74 364,826 Assets (at December 31, 2014) 5,557,542 5,566,222 61,378 11,185,142 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 161,759 4,230 1,396 167,385 Interest expense, net 59,279 10,077 16,200 85,556 Income (loss) before income taxes 194,041 89,148 (33,353 ) 249,836 Income taxes (benefit) 69,117 31,421 (14,301 ) 86,237 Net income (loss) 124,924 57,727 (19,052 ) 163,599 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 122,929 57,727 (18,947 ) 161,709 Capital expenditures 378,044 11,193 201 389,438 Assets (at December 31, 2013) 5,066,427 5,244,686 29,793 10,340,906 See Note 1 for the impact to prior period financial information of the adoptions of ASU No. 2014-01 and ASU No. 2015-17. 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 and the profit on such sales is nominal. 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 and the profit on such fees is nominal. |
Electric utility segment
Electric utility segment | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 are noted. Regulatory assets were as follows: December 31 2015 2014 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 679,766 $ 683,243 Income taxes, net (1 to 55 years) 88,039 86,836 Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) 74,462 91,353 Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) 14,089 15,569 Vacation earned, but not yet taken (1 year) 10,420 10,248 Postretirement benefits other than pensions (18 years; less than 1 year remaining) — 18 Other (1 to 50 years; 1 to 46 years remaining) 29,955 17,997 $ 896,731 $ 905,264 Included in: Current assets $ 72,231 $ 71,421 Long-term assets 824,500 833,843 $ 896,731 $ 905,264 Regulatory liabilities were as follows: December 31 2015 2014 (in thousands) Cost of removal in excess of salvage value (1 to 60 years) $ 357,825 $ 331,000 Retirement benefit plans (5 years beginning with respective utility’s next rate case) 9,835 12,413 Other (5 years; 1 to 2 years remaining) 3,883 1,436 $ 371,543 $ 344,849 Included in: Current liabilities $ 2,204 $ 632 Long-term liabilities 369,339 344,217 $ 371,543 $ 344,849 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 11% ( $265 million ), 12% ( $350 million ) and 11% ( $340 million ) of their operating revenues from the sale of electricity to various federal government agencies in 2015 , 2014 and 2013 , 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: December 31, 2015 Voluntary liquidation price Redemption 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 $ 6.5 million , $7.0 million and $6.2 million for general management and administrative services in 2015 , 2014 and 2013 , 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, 2015 and 2014 . 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 2015 , 2014 and 2013 . 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, 2015 , the estimated cost of minimum purchases under the fuel supply contracts is $245 million in 2016 , $4 million in 2017 and nil in 2018 . The actual cost of purchases in 2016 and future years could vary substantially from this estimate of minimum purchases as a result of changes in market prices, quantities actually purchased, entry into new supply contracts and/or other factors. The Utilities purchased $0.6 billion , $1.1 billion and $1.1 billion of fuel under contractual agreements in 2015 , 2014 and 2013 , 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. In March 2015, the amendment was approved by the PUC. The Utilities are also parties to amended contracts for the supply of industrial fuel oil and diesel fuels with Chevron and Hawaii Independent Energy, LLC, (HIE), respectively, which were scheduled to end December 31, 2015, but have been extended through December 31, 2016. 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 (Inter-island 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. In June 2015, the Utilities issued Requests for Proposals (RFP) for most of their fuel needs with supplies beginning in 2017 after the expiration of Chevron LSFO and Chevron/HIE Interisland contracts on December 31, 2016. Proposals were received in July 2015. On February 18, 2016, Hawaiian Electric and Chevron entered into a fuel supply contract for LSFO, diesel and fuel to meet MATS requirements (2016 LSFO Contract) for the island of Oahu which terminates on December 31, 2019 and may automatically renew for annual terms thereafter unless earlier terminated by either party. Also on February 18, 2016, the Utilities and Chevron entered into a supply contract for industrial fuel oil, diesel and ultra-low sulfur diesel (Petroleum Fuels Contract) for the islands of Oahu, Maui, Molokai and the island of Hawaii , which terminates on December 31, 2019 and may automatically renew for annual terms thereafter unless earlier terminated by either party. Finally, on February 18, 2016, Hawaii Electric Light and Chevron entered into a fuels terminalling agreement which terminates on December 31, 2019 for the island of Hawaii and may automatically renew for annual terms thereafter unless earlier terminated by either party. Currently, terminalling services are provided for under the Inter-island Fuel Supply Contract with Chevron that expires on December 31, 2016. Each of these contracts are for a term of three years and become effective upon PUC approval and each can be terminated if PUC approval is not received by October 1, 2016. Additionally, Chevron is required to comply with the agreed upon fuel specifications as set forth in the 2016 LSFO Contract and the Petroleum Fuels Contract. 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, 2015 , the Utilities had five firm capacity PPAs for a total of 551 megawatts (MW) of firm capacity. Purchases from these five independent power producers (IPPs) and all other IPPs totaled $0.6 billion , $0.7 billion and $0.7 billion for 2015 , 2014 and 2013 , respectively. 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 2016 through 2020 and a total of $0.5 billion in the period from 2021 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. AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended, for a period of 30 years beginning September 1992, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. In August 2012, Hawaiian Electric filed an application with the PUC seeking an exemption from the PUC’s Competitive Bidding Framework to negotiate an amendment to the PPA to purchase 186 MW of firm capacity, and amend the energy pricing formula in the PPA. The PUC approved the exemption in April 2013, but Hawaiian Electric and AES Hawaii were not able to reach agreement on an amendment. In June 2015, AES Hawaii filed an arbitration demand regarding a dispute about whether Hawaiian Electric was obligated to buy up to 9 MW of additional capacity based on a 1992 letter. Hawaiian Electric responded to the arbitration demand and, in October 2015, AES Hawaii and Hawaiian Electric entered into a Settlement Agreement to stay the arbitration proceeding. The Settlement Agreement includes certain conditions precedent which, if satisfied will release the parties from the claims under the arbitration proceeding. Among the conditions precedent is the successful negotiation of an amendment to the existing purchase power agreement and PUC approval of such amendment. On November 13, 2015, Hawaiian Electric entered into Amendment No. 3 to the PPA, subject to PUC approval. Amendment No. 3 provides more favorable pricing for the additional 9 MW than the existing pricing, the benefit of which will be passed on to customers, and among other things, provides (1) for an increase in firm capacity of up to 9 MW (the Additional Capacity) above the 180 MW capacity of the AES Hawaii facility, subject to a demonstration of such increased available capacity, (2) for the payment for the Additional Capacity to include a Priority Peak Capacity Charge, a Non-Peak Capacity Charge, a Priority Peak Energy Charge and a Non-Peak Energy Charge, and (3) that AES will make certain operational commitments to improve reliability, and Hawaiian Electric will pay a reliability bonus according to a schedule for reduced Full Plant Trips. On January 22, 2016, Amendment No. 3 was filed with the PUC for approval. If such approval is obtained, the final condition to the Settlement Agreement’s release of the parties from the arbitration claims will be satisfied. The arbitration proceeding has been stayed to allow the PUC approval proceeding to proceed. Liquefied natural gas . On May 31, 2015, the previous August 2014 agreement with Fortis BC Energy Inc. (Fortis) for liquefaction capacity for liquefied natural gas (LNG) was superseded with a liquefaction Heads of Agreement by and between FortisBC Holdings Inc. and Hawaiian Electric. The agreement, which is subject to PUC approval, other regulatory approvals and permits and other conditions precedent before it becomes effective, provides for LNG liquefaction capacity purchases of 700,000 tonnes per year for the first five years, 600,000 tonnes per year for the next five years and 500,000 tonnes per year for the last ten 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’ 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. 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. 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. Renewable energy project matters. 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 Infrastructure Program (REIP) surcharge. In July 2015, the PUC approved recovery of the deferred costs for Hawaiian Electric over a four -month period, and over a two -year period for Maui Electric. 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 . Through December 31, 2013, Hawaiian Electric deferred $3.1 million related to outside contractor service costs incurred with the Oahu 200 MW RFP, and began amortizing such costs over 3 years beginning in July 2014. 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 November 2015, the PUC approved the deferral of $2.1 million of costs related to the Geothermal RFP, and will review the prudency and reasonableness of the deferred costs in the next Hawaii Electric Light rate case. 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 February 2015, Ormat Technologies, Inc. was selected for an award and began PPA negotiations with Hawaii Electric Light. In February 2016, Hawaii Electric Light provided the PUC with a status update notifying the PUC that the selected bidder had determined the proposed project not to be economically and financially viable, resulting in conclusion of PPA negotiations. Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) Implementation Project. The Utilities submitted its Enterprise Information System Roadmap to the PUC in June 2014 and refiled an application for an ERP/EAM implementation project in July 2014 with an estimated cost of $ 82.4 million . The refiled application addressed the concerns raised by the PUC, in the initial application, regarding the benefits to customers of completing this project. The estimated cost of the project included the cost of ERP software that had been purchased and recorded as a deferred cost. To address the Consumer Advocate’s position that the proceeding should be stayed to determine if the project as proposed in the application is reasonable and necessary for future operations as an indirect NEE subsidiary, in May 2015, the Utilities filed a report describing the impact the pending merger with NEE would have on the scope, costs and benefits of the ERP/EAM project. The report indicated that the two viable courses of action for replacing its current system are Option A (to proceed with the project as initially scoped in the Application), and Option B (to move the Utilities to NEE’s existing ERP/EAM solutions). Option B is estimated to cost approximately $20.8 million less than Option A, but can only be pursued if the merger is approved. The Utilities requested the PUC to approve the commencement of work on Option B if the merger is approved; and in the alternative, Option A if the merger is not approved. In October 2015, the PUC issued a D&O (1) finding that there is a need to replace the existing ERP/EAM system, and (2) deferring any ruling on whether it is reasonable and in the public interest for the Utilities to commence with the project under Options B or A. In the D&O, the PUC denied the Utilities request to defer the cost for the ERP software purchased in 2012. As a result, the Utilities expensed the ERP software costs of $4.8 million in the third quarter of 2015. The D&O requires the Utilities to file their bottom-up low-level benefits analysis for both Options A and B, and specified additional information required as part of the their Cost/Benefit Analysis, which will be due by April 8, 2016. Management cannot predict the further outcome of this proceeding. Schofield Generating Station Project. In August 2012, the PUC approved a waiver from the competitive bidding framework to allow Hawaiian Electric to negotiate with the U.S. Army for the construction of a 50 MW utility owned and operated firm, renewable and dispatchable generation facility at Schofield Barracks. In September 2015, the PUC approved Hawaiian Electric’s application to expend $167 million for the project. In approving the project, the PUC placed a cap of $167 million for the project, stated 90% of the cap is allowed for cost recovery through cost recovery mechanisms other than base rates, and stated the $167 million cap will be adjusted downward due to any reduction in the cost of the engine contract due to a reduction in the foreign exchange rate. Hawaiian Electric is required to take all necessary steps to lock in the lowest possible exchange rate. On January 5, 2016, Hawaiian Electric executed a window forward agreement which lowered the cost of the engine contract by $9.7 million , resulting in a revised project cap of $157.3 million . The generating station is now expected to be placed in service in the first quarter of 2018. 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 and Clean Water Act (CWA), have increased significantly and management anticipates that such activity will continue. On August 14, 2014, the 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 each 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 State of Hawaii Department of Health (DOH) can determine what entrainment or impingement controls, if any, might be necessary at the affected facilities to comply with the new 316(b) rule. 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 submitted to the EPA a Petition for Reconsideration and Stay dated April 16, 2012, which asked the EPA to revise an emissions standard for non-continental oil-fired EGUs on the grounds that the promulgated standard was incorrectly derived. On April 21, 2015, the EPA denied Hawaiian Electric's Petition. Hawaiian Electric appealed the EPA’s denial of the Petition. On June 29, 2015, the U.S. Supreme Court found that the EPA’s determination that it was appropriate and “necessary” to regulate hazardous air pollutants from power plants was flawed because the EPA did not take the costs of compliance into account. The Supreme Court sent the MATS rule case back to the D.C. Circuit Court of Appeals for further proceedings. On December 15, 2015, the D.C. Circuit ordered the EPA to update its “appropriate and necessary” finding and ordered that the costs of compliance must be considered. The D.C. Circuit did not stay the MATS rule so all requirements of the MATS rule, including the April 16, 2016 compliance deadline remain in effect. 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 (SO 2 ) National Ambient Air Quality Standard (NAAQS) implementation plans. In August 2015, the EPA published the final data requirements rule for states to characterize their air quality in relation to the one-hour SO 2 NAAQS. Under this rule, the EPA expects to designate areas as attaining, or not attaining, the one-hour SO 2 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 SO 2 NAAQS and in developing cost-effective strategies for NAAQS compliance, if needed. Depending upon 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 the CWA 316(b) regulations, the MATS rule and the more stringent NAAQS may contribute to 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. The Utilities 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 parties 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 continue to have discussions with, and provide information to, the DOJ, 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. Maui Electric has a reserve balance of $3.6 million as of December 31, 2015 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. The final site investigation plan was submitted to the DOH and EPA in December 2014 for their approval. The DOH formally approved the investigation plan on September 14, 2015. The EPA determined that their formal approval is not required until the next phase of work that determines cleanup actions for the site. Sampling of the site per the investigation plan will proceed after securing required permits and access agreements. Pearl Harbor sediment study . In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is responsible for cleanup of PCB contamination in sediment in 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 to address the sediment contamination offshore from the Waiau Power Plant. The extent of the contamination, the appropriate remedial measures to address it, and Hawaiian Electric’s potential responsibility for any associated costs, including any past costs incurred by the Navy, have not yet been determined. The Navy has completed a remedial investigation and a feasibility study (FS) for the remediation of contaminated sediment at several locations in Pearl Harbor. The Navy’s study identified elevated levels of PCBs in the sediment in East Loch of Pearl Harbor, offshore from the Waiau Power Plant. The Navy issued its Final FS Report on June 29, 2015. The Navy has indicated that additional data collection is necessary and will be conducted as part of the remedial design, and that the results will be used to finalize the remediation plan and to better define the areas where remediation is necessary to reduce the potential environmental risks. Hawaiian Electric has r |
Bank segment (HEI only)
Bank segment (HEI only) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 (in thousands) Interest and dividend income Interest and fees on loans $ 184,782 $ 179,341 $ 172,969 Interest and dividends on investment securities 15,120 11,945 13,095 Total interest and dividend income 199,902 191,286 186,064 Interest expense Interest on deposit liabilities 5,348 5,077 5,092 Interest on other borrowings 5,978 5,731 4,985 Total interest expense 11,326 10,808 10,077 Net interest income 188,576 180,478 175,987 Provision for loan losses 6,275 6,126 1,507 Net interest income after provision for loan losses 182,301 174,352 174,480 Noninterest income Fees from other financial services 22,211 21,747 27,099 Fee income on deposit liabilities 22,368 19,249 18,363 Fee income on other financial products 8,094 8,131 8,405 Bank-owned life insurance 4,078 3,949 3,928 Mortgage banking income 6,330 2,913 8,309 Gains on sale of investment securities — 2,847 1,226 Other income, net 4,750 2,375 4,753 Total noninterest income 67,831 61,211 72,083 Noninterest expense Compensation and employee benefits 90,518 79,885 82,910 Occupancy 16,365 17,197 16,747 Data processing 12,103 11,690 10,952 Services 10,204 10,269 9,015 Equipment 6,577 6,564 7,295 Office supplies, printing and postage 5,749 6,089 4,233 Marketing 3,463 3,999 3,373 FDIC insurance 3,274 3,261 3,253 Other expense 18,067 17,314 19,637 Total noninterest expense 166,320 156,268 157,415 Income before income taxes 83,812 79,295 89,148 Income taxes 29,082 27,994 31,421 Net income $ 54,730 $ 51,301 $ 57,727 Statements of Comprehensive Income Years ended December 31 2015 2014 2013 (in thousands) Net income $ 54,730 $ 51,301 $ 57,727 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 $1,541, ($3,856),and $9,037 for 2015, 2014 and 2013, respectively (2,334 ) 5,840 (13,686 ) Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, $1,132 and $488 for 2015, 2014 and 2013, respectively — (1,715 ) (738 ) Retirement benefit plans: Net gains (losses) arising during the period, net of (taxes) benefits of ($59), $6,164 and ($10,450) for 2015, 2014 and 2013, respectively 90 (9,336 ) 15,826 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 $1,011, $561 and $1,187 for 2015, 2014 and 2013, respectively 1,531 850 1,797 Other comprehensive income (loss), net of taxes (713 ) (4,361 ) 3,199 Comprehensive income $ 54,017 $ 46,940 $ 60,926 Balance Sheets Data December 31 2015 2014 (in thousands) Assets Cash and due from banks $ 127,201 $ 107,233 Interest-bearing deposits 93,680 54,230 Available-for-sale investment securities, at fair value 820,648 550,394 Stock in Federal Home Loan Bank, at cost 10,678 69,302 Loans receivable held for investment 4,615,819 4,434,651 Allowance for loan losses (50,038 ) (45,618 ) Net loans 4,565,781 4,389,033 Loans held for sale, at lower of cost or fair value 4,631 8,424 Other 309,946 305,416 Goodwill 82,190 82,190 Total assets $ 6,014,755 $ 5,566,222 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,520,374 $ 1,342,794 Deposit liabilities–interest-bearing 3,504,880 3,280,621 Other borrowings 328,582 290,656 Other 101,029 118,363 Total liabilities 5,454,865 5,032,434 Commitments and contingencies Common stock 1 1 Additional paid in capital 340,496 338,411 Retained earnings 236,664 211,934 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ (1,872 ) $ 462 Retirement benefit plans (15,399 ) (17,271 ) (17,020 ) (16,558 ) Total shareholder’s equity 559,890 533,788 Total liabilities and shareholder’s equity $ 6,014,755 $ 5,566,222 December 31 2015 2014 (in thousands) Other assets Bank-owned life insurance $ 138,139 $ 134,115 Premises and equipment, net 88,077 92,407 Prepaid expenses 3,550 3,196 Accrued interest receivable 15,192 13,632 Mortgage-servicing rights 8,884 11,540 Low-income housing equity investments 37,793 33,438 Real estate acquired in settlement of loans, net 1,030 891 Other 17,281 16,197 $ 309,946 $ 305,416 Other liabilities Accrued expenses $ 30,705 $ 37,880 Federal and state income taxes payable 13,448 28,642 Cashier’s checks 21,768 20,509 Advance payments by borrowers 10,311 9,652 Other 24,797 21,680 $ 101,029 $ 118,363 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 cost unrealized gains unrealized losses fair value Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2015 Available-for-sale U.S. Treasury and federal agency obligations $ 213,234 $ 1,025 $ (1,300 ) $ 212,959 13 $ 83,053 $ (866 ) 3 $ 17,378 $ (434 ) Mortgage-related securities- FNMA, FHLMC and GNMA 610,522 3,564 (6,397 ) 607,689 38 305,785 (2,866 ) 25 125,817 (3,531 ) $ 823,756 $ 4,589 $ (7,697 ) $ 820,648 51 $ 388,838 $ (3,732 ) 28 $ 143,195 $ (3,965 ) December 31, 2014 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 ) ASB does not believe that the investment securities that were in an unrealized loss position as of December 31, 2015 , 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 contractual cash flows of the investment 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 and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB did not recognize OTTI for 2015 , 2014 and 2013 . 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 December 31, 2015 Cost value (in thousands) Due in one year or less $ — $ — Due after one year through five years 86,379 86,935 Due after five years through ten years 71,972 71,812 Due after ten years 54,883 54,212 213,234 212,959 Mortgage-related securities-FNMA,FHLMC and GNMA 610,522 607,689 Total available-for-sale securities $ 823,756 $ 820,648 The proceeds, gross gains and losses from sales of available-for-sale investment securities were as follows: Years ended December 31 2015 2014 2013 (in millions) Proceeds $ — $ 79.6 $ 71.4 Gross gains — 2.8 1 Gross losses — — — Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2015 2014 2013 (in thousands) Taxable $ 15,120 $ 11,666 $ 11,474 Non-taxable — 279 1,621 $ 15,120 $ 11,945 $ 13,095 ASB pledged securities with a market value of approximately $100.5 million and $88.6 million as of December 31, 2015 and 2014 , respectively, as collateral for public funds deposits, automated clearinghouse transactions with Bank of Hawaii, to-be-announced mortgage-backed securities settlements with JP Morgan, and deposits in ASB’s bankruptcy account with the Federal Reserve Bank of San Francisco. As of December 31, 2015 and 2014 , securities with a carrying value of $260.5 million and $230.2 million , respectively, were pledged as collateral for securities sold under agreements to repurchase. Stock in FHLB . As of December 31, 2015 and 2014 , ASB’s stock in FHLB was carried at cost ( $10.7 million and $69.3 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. In May 2015, the FHLB of Seattle and FHLB of Des Moines completed the merger of the two banks and began operating as the FHLB of Des Moines on June 1, 2015. At December 31, 2014, the Company had $55 million of FHLB stock in excess of the required investment. With the merger, all of the Company's excess FHLB stock was repurchased. The FHLB repurchased a total of $58.6 million and $23.2 million of FHLB stock from ASB in 2015 and 2014, respectively. There was no other significant impact on ASB as a result of the merger. Periodically and as conditions warrant, ASB reviews its investment in the stock of the FHLB for impairment. ASB evaluated its investment in FHLB stock for OTTI as of December 31, 2015 , consistent with its accounting policy. ASB did not recognize an OTTI loss for 2015 based on its evaluation of the underlying investment, including: • the net income and growth in retained earnings recorded by the FHLB in the first nine months of 2015 ; • compliance by the FHLB with all of its regulatory capital requirements and being classified “adequately capitalized” by the Federal Housing Finance Agency (Finance Agency); • being authorized by the Finance Agency to repurchase excess stock; • the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB; • the liquidity position of the FHLB; 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. Future deterioration in the FHLB's financial position and/or negative developments in any of the factors considered in ASB's impairment evaluation above may result in future impairment losses. Loans receivable. The components of loans receivable were summarized as follows: December 31 2015 2014 (in thousands) Real estate: Residential 1-4 family $ 2,069,665 $ 2,044,205 Commercial real estate 690,561 531,917 Home equity line of credit 846,294 818,815 Residential land 18,229 16,240 Commercial construction 100,796 96,438 Residential construction 14,089 18,961 Total real estate 3,739,634 3,526,576 Commercial 758,659 791,757 Consumer 123,775 122,656 Total loans 4,622,068 4,440,989 Less: Deferred fees and discounts (6,249 ) (6,338 ) Allowance for loan losses (50,038 ) (45,618 ) Total loans, net $ 4,565,781 $ 4,389,033 ASB'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. ASB is subject to the risk that the insurance company cannot satisfy the bank's claim on policies. ASB services real estate loans for investors (principal balance of $1.5 billion , $1.4 billion and $1.4 billion as of December 31, 2015 , 2014 and 2013 , 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, 2015 and 2014 , ASB had pledged loans with an amortized cost of approximately $2.3 billion and $1.9 billion , respectively, as collateral to secure advances from the FHLB. As of December 31, 2015 and 2014 , 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 $27.8 million and $49.6 million , respectively. The $21.8 million decrease in such loans in 2015 was attributed to closed lines of credits and repayments of $21.8 million . As of December 31, 2015 and 2014 , $25.8 million and $46.2 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 December 31, 2015 Allowance for loan losses: Beginning balance $ 4,662 $ 8,954 $ 6,982 $ 1,875 $ 5,471 $ 28 $ 14,017 $ 3,629 $ — $ 45,618 Charge-offs (356 ) — (205 ) — — — (1,074 ) (4,791 ) — (6,426 ) Recoveries 226 — 80 507 — — 2,773 985 — 4,571 Provision (346 ) 2,388 403 (711 ) (1,010 ) (15 ) 1,492 4,074 6,275 Ending balance $ 4,186 $ 11,342 $ 7,260 $ 1,671 $ 4,461 $ 13 $ 17,208 $ 3,897 $ — $ 50,038 Ending balance: individually evaluated for impairment $ 1,453 $ — $ 442 $ 891 $ — $ — $ 3,527 $ 7 $ 6,320 Ending balance: collectively evaluated for impairment $ 2,733 $ 11,342 $ 6,818 $ 780 $ 4,461 $ 13 $ 13,681 $ 3,890 $ — $ 43,718 Financing Receivables: Ending balance $ 2,069,665 $ 690,561 $ 846,294 $ 18,229 $ 100,796 $ 14,089 $ 758,659 $ 123,775 $ 4,622,068 Ending balance: individually evaluated for impairment $ 22,457 $ 1,188 $ 3,225 $ 5,683 $ — $ — $ 21,119 $ 13 $ 53,685 Ending balance: collectively evaluated for impairment $ 2,047,208 $ 689,373 $ 843,069 $ 12,546 $ 100,796 $ 14,089 $ 737,540 $ 123,762 $ 4,568,383 December 31, 2014 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 Changes in the allowance for loan losses were as follows: (dollars in thousands) 2015 2014 2013 Allowance for loan losses, January 1 $ 45,618 $ 40,116 $ 41,985 Provision for loan losses 6,275 6,126 1,507 Charge-offs, net of recoveries Real estate loans (252 ) (1,137 ) (678 ) Other loans 2,107 1,761 4,054 Net charge-offs 1,855 624 3,376 Allowance for loan losses, December 31 $ 50,038 $ 45,618 $ 40,116 Ratio of net charge-offs to average total loans 0.04 % 0.01 % 0.09 % 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 2015 2014 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 642,410 $ 86,991 $ 703,208 1,432,609 $ 493,105 $ 79,312 $ 743,334 $ 1,315,751 Special mention 7,710 13,805 7,029 28,544 5,209 — 16,095 21,304 Substandard 40,441 — 47,975 88,416 33,603 17,126 31,665 82,394 Doubtful — — 447 447 — — 663 663 Loss — — — — — — — — Total $ 690,561 $ 100,796 $ 758,659 1,550,016 $ 531,917 $ 96,438 $ 791,757 $ 1,420,112 The credit risk profile based on payment activity for loans was as follows: (in thousands) 30-59 days past due 60-89 days past due Greater than 90 days Total past due Current Total financing receivables Recorded investment> 90 days and accruing December 31, 2015 Real estate: Residential 1-4 family $ 4,967 $ 3,289 $ 11,503 $ 19,759 $ 2,049,906 $ 2,069,665 $ — Commercial real estate — — — — 690,561 690,561 — Home equity line of credit 896 706 477 2,079 844,215 846,294 — Residential land — — 415 415 17,814 18,229 — Commercial construction — — — — 100,796 100,796 — Residential construction — — — — 14,089 14,089 — Commercial 125 223 878 1,226 757,433 758,659 — Consumer 1,383 593 644 2,620 121,155 123,775 — Total loans $ 7,371 $ 4,811 $ 13,917 $ 26,099 $ 4,595,969 $ 4,622,068 $ — December 31, 2014 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 $ — The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due, and TDR loans was as follows: December 31 2015 2014 (in thousands) Real estate: Residential 1-4 family $ 20,554 $ 19,253 Commercial real estate 1,188 5,112 Home equity line of credit 2,254 1,087 Residential land 970 720 Commercial construction — — Residential construction — — Commercial 20,174 10,053 Consumer 895 661 Total nonaccrual loans $ 46,035 $ 36,886 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 $ 13,962 $ 13,525 Commercial real estate — — Home equity line of credit 2,467 480 Residential land 4,713 7,130 Commercial construction — — Residential construction — — Commercial 1,104 2,972 Consumer — — Total troubled debt restructured loans not included above $ 22,246 $ 24,107 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31 2015 2014 (in thousands) Recorded investment Unpaid principal balance Related allow- ance Average recorded investment Interest income recognized* Recorded investment Unpaid principal balance Related allow- ance Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 10,596 $ 11,805 $ — $ 11,215 $ 332 $ 11,654 $ 12,987 $ — $ 9,056 $ 227 Commercial real estate 1,188 1,436 — 370 74 571 626 — 194 — Home equity line of credit 707 948 — 484 4 363 606 — 402 5 Residential land 1,644 2,412 — 2,397 137 2,344 3,200 — 2,728 172 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 5,671 6,333 — 5,185 157 8,235 11,471 — 5,204 38 Consumer — — — — — — — — 8 — 19,806 22,934 — 19,651 704 23,167 28,890 — 17,592 442 With an allowance recorded Real estate: Residential 1-4 family 11,861 11,914 1,453 11,578 562 11,327 11,347 951 8,822 419 Commercial real estate — — — 1,699 — 4,541 4,541 1,845 3,415 478 Home equity line of credit 2,518 2,579 442 1,597 49 416 420 46 132 6 Residential land 4,039 4,117 891 4,337 318 5,506 5,584 1,057 6,415 484 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 15,448 16,073 3,527 12,507 211 4,873 5,211 760 12,089 438 Consumer 13 13 7 14 — 16 16 6 9 — 33,879 34,696 6,320 31,732 1,140 26,679 27,119 4,665 30,882 1,825 Total Real estate: Residential 1-4 family 22,457 23,719 1,453 22,793 894 22,981 24,334 951 17,878 646 Commercial real estate 1,188 1,436 — 2,069 74 5,112 5,167 1,845 3,609 478 Home equity line of credit 3,225 3,527 442 2,081 53 779 1,026 46 534 11 Residential land 5,683 6,529 891 6,734 455 7,850 8,784 1,057 9,143 656 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 21,119 22,406 3,527 17,692 368 13,108 16,682 760 17,293 476 Consumer 13 13 7 14 — 16 16 6 17 — $ 53,685 $ 57,630 $ 6,320 $ 51,383 $ 1,844 $ 49,846 $ 56,009 $ 4,665 $ 48,474 $ 2,267 * 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 or reduction 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 2015 and 2014 were as follows: Years ended December 31 2015 2014 Number Outstanding recorded investment Net increase in ALLL Number Outstanding recorded investment Net increase in ALLL (dollars in thousands) of Pre-modification Post-modification of contracts Pre-modification Post-modification Troubled debt restructurings Real estate: Residential 1-4 family 19 $ 3,594 $ 3,668 $ 87 38 $ 10,680 $ 10,737 $ 163 Commercial real estate 1 1,500 1,500 — — — — — Home equity line of credit 39 2,441 2,441 370 8 502 502 42 Residential land 1 218 218 — 18 4,304 4,304 242 Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial 8 2,267 2,267 486 7 3,827 3,827 13 Consumer — — — — — — — — 68 $ 10,020 $ 10,094 $ 943 71 $ 19,313 $ 19,370 $ 460 Loans modified in TDRs that experienced a payment default of 90 days or more in 2015 and 2014 , and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2015 2014 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family — $ — 1 $ 390 Commercial real estate — — — — Home equity line of credit 1 6 — — Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial 1 1,056 1 14 Consumer — — — — 2 $ 1,062 2 $ 404 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 $0.1 million at December 31, 2015 . 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 loans, but may retain the servicing rights of the loans sold. ASB received $275.3 million , $155.0 million , and $273.8 million of proceeds from the sale of residential mortgages in 2015 , 2014 , and 2013 , respectively, and recognized gains on such sales of $6.3 million , $2.9 million , and $8.3 million in 2015 , 2014 , and 2013 , respectively. Repurchased mortgage loans in 2015 , 2014 , and 2013 , were nil , $0.5 million and $1.9 million , respectively. Mortgage servicing fees, a component of other income, net, were $3.5 million , $3.5 million , and $3.3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Changes in carrying value of mortgage servicing rights were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net December 31, 2015 $ 14,531 1 $ (5,647 ) 1 $ — $ 8,884 December 31, 2014 $ 27,185 $ (15,436 ) $ (209 ) $ 11,540 1 Reflects sale of mortgage servicing rights and impact of loans paid in full. Changes related to mortgage servicing rights were as follows: (in thousands) 2015 2014 2013 Mortgage servicing rights Balance, January 1 $ 11,749 $ 11,938 $ 11,316 Amount capitalized 3,123 1,637 2,611 Amortization (2,682 ) (1,731 ) (1,802 ) Sale of mortgage servicing rights (3,302 ) — — Other-than-temporary impairment (4 ) (95 ) (187 ) Carrying amount before valuation allowance, December 31 8,884 11,749 11,938 Valuation allowance for mortgage servicing rights Balance, January 1 209 251 498 Provision (recovery) (205 ) 53 (60 ) Other-than-temporary impairment (4 ) (95 ) (187 ) Balance, December 31 — 209 251 Net carrying value of mortgage servicing rights $ 8,884 $ 11,540 $ 11,687 The estimated aggregate amortization expenses of mortgage servicing rights for 2016 , 2017 , 2018 , 2019 and 2020 are $1.3 million , $1.2 million , $1.0 million , $0.9 million and $0.8 million , respectively. ASB capitalizes mortgage servicing rights acquired through either the purchase or origination of mortgage loans for sale with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the mortgage servicing rights to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the mortgage servicing rights. ASB's MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type such as fixed-rate 15 and 30 year mortgages and note rate in bands of 50 to 100 basis points. For each stratum, fair value is calculated by discounting expected net income streams using discount rates that reflect industry pricing for similar assets. 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. 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. ASB uses a present value cash flow model using techniques described above to estimate the fair value of MSRs. 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. Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights used in the impairment analysis were as follows: December 31 2015 2014 (dollars in thousands) Unpaid principal balance $ 1,097,314 $ 1,391,030 Weighted average note rate 4.05 % 4.07 % Weighted average discount rate 9.6 % 9.6 % Weighted average prepayment speed 9.3 % 9.5 % 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 2015 2014 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (561 ) $ (757 ) 50 basis points adverse rate change (1,104 ) (1,524 ) Discount rate: 25 basis points adverse rate change (111 ) (140 ) 50 basis points adverse rate change (220 ) (278 ) 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 liabili |
Unconsolidated variable interes
Unconsolidated variable interest entities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 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 2015 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, 2015 , the Utilities had five 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 2015 2014 2013 (in millions) AES Hawaii $ 134 $ 145 $ 134 Kalaeloa 187 279 301 HEP 44 51 51 Hpower 66 66 61 Puna Geothermal Venture 29 45 49 Hawaiian Commercial & Sugar (HC&S) 8 15 13 Other IPPs 126 121 102 Total IPPs $ 594 $ 722 $ 711 In October 2015 the amended PPA between Maui Electric and HC&S became effective following PUC approval in September 2015. The amended PPA amends the pricing structure and rates for energy sold to Maui Electric, eliminates the capacity payment to HC&S, eliminates Maui Electric’s minimum purchase obligation, provides that Maui Electric may request up to 4 MW of scheduled energy during certain months, and be provided up to 16 MW of emergency power, and extends the term of the PPA from 2014 to 2017. 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 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 2015, 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. Hawaiian Electric and Kalaeloa are in negotiations to address the upcoming end of the PPA term in May 2016. The PPA will automatically extend on a month-to-month basis as long as the parties are still negotiating in good faith. The month-to-month term extensions shall end 60 days after either party notifies the other in writing that negotiations have terminated. 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. The energy payments paid by Hawaiian Electric will fluctuate as fuel prices change, however, 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, 2015 , Hawaiian Electric’s accounts payable to Kalaeloa amounted to $11 million . AES Hawaii, Inc. In March 1988, Hawaiian Electric entered into a PPA with AES Barbers Point, Inc. (now known as AES Hawaii, Inc.), which, as amended (through Amendment No. 2) and approved by the PUC, provided that Hawaiian Electric would purchase 180 MW of firm capacity for a period of 30 years beginning in September 1992. In November 2015, Hawaiian Electric entered into an Amendment No. 3, for which PUC approval has been requested. If approved by the PUC, Amendment No. 3 would increase the firm capacity from 180 MW to a maximum of 189 MW. The payments that Hawaiian Electric makes to AES Hawaii for energy associated with the first 180 MW of firm capacity include a fuel component, a variable O&M component and a fixed O&M component, all of which are subject to adjustment based on changes in the Gross National Product Implicit Price Deflator. If Amendment No. 3 is approved by the PUC, payments for energy associated with firm capacity in excess of 180 MW will not include any O&M component or be subject to adjustment based on changes in the Gross National Product Implicit Price Delflator. The capacity payments that Hawa iian Electric makes to AES Hawaii are fixed in accordance with the PPA and, if approved by the PUC, Amendment No. 3. Pursuant to the current accounting standards for VIEs, Hawaiian Electric is deemed to have a variable interest in AES Hawaii by reason of the provisions of Hawaiian Electric’s PPA with AES Hawaii. However, management has concluded that Hawaiian Electric is not the primary beneficiary of AES Hawaii because Hawaiian Electric does not have the power to control the most significant activities of AES Hawaii that impact AES Hawaii’s economic performance, including operations and maintenance of AES Hawaii’s facility. Thus, Hawaiian Electric has not consolidated AES Hawaii in its consolidated financial statements. As of December 31, 2015, Hawaiian Electric’s accounts payable to AES Hawaii amounted to $12 million . |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Debt [Abstract] | |
Short-term borrowings | 7 · Short-term borrowings As of December 31, 2015 and 2014 , HEI had $103 million and $119 million of outstanding commercial paper, respectively, with a weighted-average interest rate of 1.1% and 0.7% , respectively, and Hawaiian Electric had no commercial paper outstanding. As of December 31, 2015 , 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 2015 and 2014 . 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 17% as of December 31, 2015 , as calculated under the agreement) or if HEI no longer owns Hawaiian Electric. HEI currently intends to terminate the HEI Facility if, and when, the proposed Merger closes. 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 42% for Hawaii Electric Light and 42% for Maui Electric as of December 31, 2015 , 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 57% as of December 31, 2015 , 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 NEE. 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 NEE. 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. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term debt | 8 · Long-term debt December 31 2015 2014 (dollars in thousands) Long-term debt of Utilities 1 $ 1,286,546 $ 1,206,546 HEI term loan LIBOR + .75%, due 2017 125,000 125,000 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 $ 1,586,546 $ 1,506,546 1 See components of “Total long-term debt” and unamortized discount in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. As of December 31, 2015 , the aggregate principal payments required on the Company’s long-term debt for 2016 through 2020 are $75 million in 2016, $125 million in 2017 , $50 million in 2018, nil in 2019 and $96 million in 2020 . As of December 31, 2015 , the aggregate payments of principal required on the Utilities' long-term debt for 2016 through 2020 are nil in 2016 and 2017 , $50 million in 2018 , nil in 2019 and $96 million in 2020 . The HEI term loan 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 term loan and 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). Changes in long-term debt. HEI . 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 (Loan Agreement), 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 0.94% to 1.23% through December 31, 2015 . 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. On October 8, 2015, (a) the Royal Bank of Canada assigned its loans under the Loan Agreement to The Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank, National Association and (b) HEI, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank, National Association entered into Amendment No. 1 to the Loan Agreement. Amendment No. 1, among other things, improved pricing on Eurodollar Borrowings under the Loan Agreement by 15 basis points and extended the maturity date of the Loan Agreement to October 6, 2017. It is currently contemplated that borrowings under the Loan Agreement will be repaid concurrently with the closing of the NEE Merger. Hawaiian Electric . On October 15, 2015, Hawaiian Electric, Maui Electric and Hawaii Electric Light issued, through a private placement pursuant to separate note purchase agreements (the Note Purchase Agreements), $50 million , $5 million and $25 million , respectively, of Series 2015A taxable unsecured 5.23% senior notes due October 1, 2045 (collectively, the Notes). Hawaiian Electric is also a party as guarantor under the Note Purchase Agreements entered into by Maui Electric and Hawaii Electric Light. All the proceeds of the Notes were used by the Utilities to finance their capital expenditures and for the reimbursement of funds used for the payment of capital expenditures. The Note Purchase Agreements contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the Notes then outstanding becoming immediately due and payable). The Note Purchase Agreements also include provisions regarding the maintenance of financial ratios that are generally consistent with those in the Hawaiian Electric credit agreement described above. The Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount.” Each of the Note Purchase Agreements also (a) requires the Utilities to offer to prepay the Notes (without a Make-Whole Amount) in the event that there is a “change in control” as defined, and (b) permits the Utilities to offer to prepay Notes (without a Make-Whole Amount) in the event of certain sales of assets. Under the Note Purchase Agreements, the proposed merger of HEI and NEE will not be deemed a “change in control.” On December 15, 2015, the Department issued, at par, Refunding Series 2015 SPRBs in the aggregate principal amount of $47 million with a maturity of January 1, 2025 and a fixed coupon interest rate of 3.25% and loaned the proceeds to Hawaiian Electric ( $40 million ), Hawaii Electric Light ( $5 million ) and Maui Electric ( $2 million ). Proceeds from the sale were applied, together with other funds provided by the Utilities, to redeem at par on December 30, 2015, the Refunding Series 2005A SPRBs (which had an original maturity of January 1, 2025 and a fixed coupon rate of 4.80% ). |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' equity | 9 · Shareholders’ equity Reserved shares. As of December 31, 2015 , HEI had reserved a total of 13,296,268 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 HEI 2011 Nonemployee Director Stock Plan, the ASB 401(k) Plan and the 2010 Executive Incentive Plan. 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, HEI was 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 was subject to certain adjustments in accordance with the terms of the equity forward transactions. The equity forward transactions had no initial fair value since they were entered into at the then market price of the common stock. 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 and July 14, 2014, HEI settled 1.3 million and 1.0 million shares under the equity forward for proceeds of $32.1 million (net of the underwriting discount of $1.3 million ) and $23.9 million (net of underwriting discount of $1.0 million ), respectively which funds were ultimately used to purchase Hawaiian Electric shares . On March 20, 2015, HEI settled the remaining 4.7 million shares under the equity forward for proceeds of $104.5 million (net of the underwriting discount of $4.7 million ), which funds were used for the reduction of debt and for general corporate purposes. The proceeds were recorded in equity at the time of settlement. Prior to their settlement, the shares remaining under the equity forward transactions were reflected in HEI’s diluted EPS calculations using the treasury stock method. For 2015, 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, 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 Current period other comprehensive income (loss) (2,334 ) 235 3,215 1,116 880 Balance, December 31, 2015 $ (1,872 ) $ (54 ) $ (24,336 ) $ (26,262 ) $ 925 Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Years ended December 31 2015 2014 2013 Affected line item in the Statement of Income (in thousands) HEI consolidated Net realized gains on securities $ — $ (1,715 ) $ (738 ) Revenues-bank (net gains on sales of securities) Derivatives qualified as cash flow hedges Interest rate contracts (settled in 2011) 235 236 235 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 22,465 11,344 23,280 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets (25,139 ) 207,833 (222,595 ) See Note 10 for additional details Total reclassifications $ (2,439 ) $ 217,698 $ (199,818 ) 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 $ 20,381 $ 10,212 $ 20,694 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets (25,139 ) 207,833 (222,595 ) See Note 10 for additional details Total reclassifications $ (4,758 ) $ 218,045 $ (201,901 ) |
Retirement benefits
Retirement benefits | 12 Months Ended |
Dec. 31, 2015 | |
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 is 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) and accumulated postretirement benefit obligation (APBO), 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 $1.0 million and 1.2 million in 2015 and 2014 , respectively) 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 $(41) million pretax and $340 million pretax for 2015 and 2014 , respectively). Under the pension tracking mechanism, the Utilities’ are required to 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 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 2015 , 2014 and 2013 was $30 million , $32 million and $30 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 2015 and 2014 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, 2015 and 2014 were as follows: 2015 2014 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,847,228 $ 219,209 $ 1,446,291 $ 176,099 Service cost 66,260 3,927 49,264 3,490 Interest cost 76,960 9,011 72,202 8,550 Actuarial losses (gains) (124,239 ) (2,911 ) 342,446 39,098 Benefits paid and expenses (68,179 ) (7,696 ) (62,975 ) (8,028 ) Benefit obligation, December 31 1,798,030 221,540 1,847,228 219,209 Fair value of plan assets, January 1 1,266,060 180,332 1,186,669 179,330 Actual (loss) return on plan assets (14,422 ) (2,866 ) 81,123 9,149 Employer contributions 86,802 917 60,103 (257 ) Benefits paid and expenses (66,966 ) (7,696 ) (61,835 ) (7,890 ) Fair value of plan assets, December 31 1,271,474 170,687 1,266,060 180,332 Accrued benefit asset (liability), December 31 $ (526,556 ) $ (50,853 ) $ (581,168 ) $ (38,877 ) Other assets $ 12,509 $ — $ 12,800 $ — Defined benefit pension and other postretirement benefit plans liability (539,065 ) (50,853 ) (593,968 ) (38,877 ) Accrued benefit asset (liability), December 31 $ (526,556 ) $ (50,853 ) $ (581,168 ) $ (38,877 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 639,831 $ 20,933 $ 317,544 $ (21,722 ) Recognized during year – prior service credit (cost) (4 ) 1,793 (88 ) 1,793 Recognized during year – net actuarial (losses) gains (36,800 ) (1,796 ) (20,304 ) 11 Occurring during year – net actuarial losses (gains) (21,264 ) 11,620 342,679 40,851 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 581,763 32,550 639,831 20,933 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 $ 42,979 $ (2,783 ) $ 47,540 $ (2,042 ) Net actuarial loss (gain) $ 581,951 $ 44,845 $ 640,015 $ 35,022 Prior service gain (188 ) (12,295 ) (184 ) (14,089 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 581,763 32,550 639,831 20,933 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 42,979 (2,783 ) 47,540 (2,042 ) Income taxes (benefits) (16,944 ) 1,084 (18,742 ) 795 AOCI debit/(credit), net of taxes (benefits), December 31 $ 26,035 $ (1,699 ) $ 28,798 $ (1,247 ) 2015 2014 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,690,777 $ 211,760 $ 1,320,810 $ 169,579 Service cost 64,262 3,870 47,597 3,392 Interest cost 70,529 8,700 65,979 8,234 Actuarial losses (gains) (114,286 ) (2,860 ) 314,210 38,488 Benefits paid and expenses (63,037 ) (7,598 ) (57,819 ) (7,933 ) Transfers 1,445 118 — — Benefit obligation, December 31 1,649,690 213,990 1,690,777 211,760 Fair value of plan assets, January 1 1,129,005 177,256 1,058,260 176,291 Actual (loss) return on plan assets (10,646 ) (2,712 ) 69,242 9,036 Employer contributions 85,139 864 58,948 (274 ) Benefits paid and expenses (62,584 ) (7,598 ) (57,445 ) (7,797 ) Other 919 120 — — Fair value of plan assets, December 31 1,141,833 167,930 1,129,005 177,256 Accrued benefit asset (liability), December 31 $ (507,857 ) $ (46,060 ) $ (561,772 ) $ (34,504 ) Other liabilities (short-term) (425 ) (518 ) (421 ) (460 ) Defined benefit pension and other postretirement benefit plans liability (507,432 ) (45,542 ) (561,351 ) (34,044 ) Accrued benefit asset (liability), December 31 $ (507,857 ) $ (46,060 ) $ (561,772 ) $ (34,504 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 595,103 $ 20,090 $ 295,973 $ (21,907 ) Recognized during year – prior service credit (cost) (40 ) 1,804 (62 ) 1,804 Recognized during year – net actuarial losses (33,371 ) (1,754 ) (18,459 ) — Occurring during year – net actuarial losses (gains) (20,574 ) 11,345 317,651 40,193 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 541,118 31,485 595,103 20,090 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 $ 2,334 $ (3,848 ) $ 2,812 $ (2,885 ) Net actuarial loss (gain) $ 541,071 $ 43,784 $ 595,017 $ 34,192 Prior service cost (gain) 47 (12,299 ) 86 (14,102 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 541,118 31,485 595,103 20,090 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 2,334 (3,848 ) 2,812 (2,885 ) Income taxes (benefits) (908 ) 1,497 (1,094 ) 1,122 AOCI debit/(credit), net of taxes (benefits), December 31 $ 1,426 $ (2,351 ) $ 1,718 $ (1,763 ) The Company does not expect any plan assets to be returned to the Company during the calendar year 2016. The dates used to determine retirement benefit measurements for the defined benefit plans were December 31 of 2015 , 2014 and 2013 . The Pension Protection Act of 2006 (Pension Protection Act) signed into law on August 17, 2006, amended the Employee Retirement Income Security Act of 1974 (ERISA). Among other things, the Pension Protection Act changed the funding rules for qualified pension plans. On Aug ust 8, 2014, President Obama signed the latest change to the Pension Protection Act, the Highway and Transportation Funding Act of 2014 (HATFA). HATFA resulted in an increase of the Adjusted Funding Target Attainment Percentage (AFTAP) for benefit distribution purposes and eased funding requirements effective with the 2014 plan year (a plan sponsor could have elected to apply the provisions of HATFA to 2013, but the Company did not so elect). As a result, the minimum funding requirements for the HEI Retirement Plan under ERISA are less than the net periodic cost for 2014 and 2015. Nevertheless, to satisfy the requirements of the Utilities pension and OPEB tracking mechanisms, the Utilities contributed the net periodic cost in 2014 and 2015 and expect to contribute the net periodic cost in 2016. 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 2013, 2014 and 2015 so that the more conservative assumptions did not apply for either 2014 or 2015 and will not apply for 2016. Other factors could cause changes to the required contribution levels. For purposes of calculating NPPC and NPBC, 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 restriction around the fair value of such assets (i.e., 85% to 115% of fair value). 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 benefits 1 Other benefits 2 Investment policy Investment policy December 31 2015 2014 Target Range 2015 2014 Target Range Assets held by category Equity securities managers 70 % 73 % 70 % 65-75 70 % 72 % 70 % 65-75 Fixed income securities managers 30 27 30 25-35 30 28 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation for 2015 and 2014 is applicable to only 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, 2015 and 2014, nearly all of its pension assets were invested in fixed income securities. 2 Asset allocation for 2015 and 2014 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 2015 2014 2013 2015 2014 2013 Benefit obligation Discount rate 4.60 % 4.22 % 5.09 % 4.57 % 4.17 % 5.03 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.22 5.09 4.13 4.17 5.03 4.07 Expected return on plan assets 1 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 1 For 2015, HEI's and utilities' plan assets only. For 2015, ASB's expected return on plan assets was 4.22% . The Company and the Utilities based their selection of an assumed discount rate for 2016 NPPC, NPBC and December 31, 2015 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, 2015 . In selecting the expected rate of return on plan assets for 2016 NPPC and 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 4.8% , which is consistent with the assumed discount rate as of December 31, 2015 with a 20 basis point active manager premium. The Company and the Utilities adopted mortality tables published in October 2014 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 and increased their costs and required contributions for 2015. The Company and the Utilities adopted revised mortality tables for their mortality assumptions as of December 31, 2015 (based on information published by the Society of Actuaries in October 2015), the use of which lowered obligations of the Company and Utilities as of December 31, 2015 and will lower their costs and required contributions in 2016. As of December 31, 2015 , the assumed health care trend rates for 2016 and future years were as follows: medical, 8% , grading down to 5% for 2028 and thereafter; dental, 5% ; and vision, 4% . 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% . Medicare Advantage reimbursements are expected to phase out by 2016. For post age 65 , the medical trend is 3% higher than pre- 65 for 2015 to reflect anticipated increases above the ordinary medical trend rates. Starting in 2016, pre- 65 and post- 65 health care trend rates are assumed to be the same . The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2015 2014 2013 2015 2014 2013 HEI consolidated Service cost $ 66,260 $ 49,264 $ 56,405 $ 3,927 $ 3,490 $ 4,306 Interest cost 76,960 72,202 64,788 9,011 8,550 7,569 Expected return on plan assets (88,554 ) (81,355 ) (72,537 ) (11,664 ) (10,902 ) (10,147 ) Amortization of net prior service (gain) cost 4 88 (97 ) (1,793 ) (1,793 ) (1,793 ) Amortization of net actuarial losses (gains) 36,800 20,304 38,438 1,796 (11 ) 1,602 Net periodic pension/benefit cost 91,470 60,503 86,997 1,277 (666 ) 1,537 Impact of PUC D&Os (40,011 ) (13,324 ) (38,104 ) (240 ) 1,976 (1,458 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) 51,459 47,179 48,893 1,037 1,310 79 Hawaiian Electric consolidated Service cost $ 64,262 $ 47,597 $ 54,482 $ 3,870 $ 3,392 $ 4,163 Interest cost 70,529 65,979 59,119 8,700 8,234 7,288 Expected return on plan assets (82,541 ) (72,661 ) (64,551 ) (11,495 ) (10,739 ) (10,002 ) Amortization of net prior service (gain) cost 40 62 (464 ) (1,804 ) (1,804 ) (1,803 ) Amortization of net actuarial losses 33,371 18,459 34,597 1,754 — 1,544 Net periodic pension/benefit cost 85,661 59,436 83,183 1,025 (917 ) 1,190 Impact of PUC D&Os (40,011 ) (13,324 ) (38,104 ) (240 ) 1,976 (1,458 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 45,650 $ 46,112 $ 45,079 $ 785 $ 1,059 $ (268 ) 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 NPPC and NPBC during 2016 is as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Pension benefits Other benefits Pension benefits Other benefits Estimated prior service cost (credit) $ (0.1 ) $ (1.8 ) $ — $ (1.8 ) Net actuarial loss 23.9 1.1 21.8 1.1 The Company recorded pension expense of $35 million , $32 million and $34 million and OPEB expense of $0.9 million , $1.2 million and $0.4 million in 2015 , 2014 and 2013 , respectively, and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $29 million , $31 million and $30 million and OPEB expense of $0.7 million , $1.0 million and nil in 2015 , 2014 and 2013 , 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, 2015 , 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 $4.4 million . As of December 31, 2015 , 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 $0.2 million and the APBO by $4.3 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, 2015 and 2014 , had aggregate ABOs of $1.5 billion and $1.5 billion , respectively, and plan assets of $1.2 billion and $1.2 billion , respectively. The defined benefit pension plans with PBOs in excess of plan assets as of December 31, 2015 , 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, 2014 , had aggregate PBOs of $ 1.7 billion and plan assets of $ 1.2 billion . As of December 31, 2015 and 2014, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. The Company estimates that the cash funding for the qualified defined benefit pension plans in 2016 will be $65 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 2016 is $49,000 . As of December 31, 2015 , the benefits expected to be paid under all retirement benefit plans in 2016 , 2017 , 2018 , 2019 , 2020 and 2021 through 2025 amount to $80 million , $84 million , $87 million , $91 million , $96 million and $547 million , respectively. Hawaiian Electric consolidated . The defined benefit pension plans with ABOs in excess of plan assets as of December 31, 2015 and 2014 , had aggregate ABOs of $1.4 billion and $1.5 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, 2015 and 2014 . As of December 31, 2015 and 2014, the other postretirement benefit plan shown in the table above had ABOs in excess of plan assets. The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2016 will be $64 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 2016 is $23,000 . As of December 31, 2015 , the benefits expected to be paid under all retirement benefit plans in 2016 , 2017 , 2018 , 2019 , 2020 and 2021 through 2025 amounted to $74 million , $77 million , $80 million , $84 million , $88 million and $501 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 2015 , 2014 and 2013 , the Company’s expense for its defined contribution pension plans under the HEIRSP and the ASB 401(k) Plan was $6 million , $5 million and $5 million , respectively, and cash contributions were $5 million , $5 million and $4 million , respectively. The Utilities’ expense for its defined contribution pension plan under the HEIRSP Plan for 2015 , 2014 and 2013 was $1.5 million , $0.9 million and $0.6 million , respectively. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | 11 · Share-based compensation Under the 2010 Equity and Incentive Plan, as amended, 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 (original EIP) was amended and restated effective March 1, 2014 (EIP) and an additional 1.5 million shares was added to the shares available for issuance under these programs. As of December 31, 2015 , approximately 3.5 million shares remained 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 0.5 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). As of May 11, 2010 (when the 2010 Equity and Incentive Plan became effective), no new awards could be granted under the 1987 Stock Option and Incentive Plan, as amended (SOIP). Since by March 2015 all of the shares of common stock for the outstanding SOIP grants and awards were issued or such grants and awards had expired, the remaining shares registered under the SOIP were deregistered and delisted. For the SARs that were 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 expired if not exercised ten years from the date of the grant. SARs compensation expense was 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. There were no outstanding SARs as of December 31, 2015. The restricted shares that had been issued under the 2010 Equity and Incentive Plan became unrestricted in four equal annual increments on the anniversaries of the grant date and were forfeited to the extent they had not become unrestricted for terminations of employment during the vesting period, except accelerated vesting was provided for terminations by reason of death, disability and termination without cause. Restricted shares compensation expense had been recognized in accordance with the fair-value-based measurement method of accounting. Dividends on restricted shares were paid quarterly in cash. There were no outstanding restricted shares as of December 31, 2015. Restricted stock units awarded under the 2010 Equity and Incentive Plan in 2015, 2014, 2013 and 2012 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 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 the 2013-2015 and 2014-2016 long-term incentive plans (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, 2015 , there were 141,044 shares remaining available for future issuance under the 2011 Director Plan. Share-based compensation expense and the related income tax benefit were as follows: (in millions) 2015 2014 2013 HEI consolidated Share-based compensation expense 1 $ 6.5 $ 9.3 $ 7.8 Income tax benefit 2.3 3.4 2.8 Hawaiian Electric consolidated Share-based compensation expense 1 1.9 3.1 2.3 Income tax benefit 0.7 1.2 0.9 1 $0.15 million , $0.16 million and $0.11 million of this share-based compensation expense was capitalized in 2015 , 2014 and 2013 , 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) 2015 2014 2013 Shares granted 28,246 33,170 33,184 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 Shares (1) Outstanding, January 1 14,000 $ 20.49 Exercised (14,000 ) 20.49 Outstanding, December 31 — $ — (1) Weighted-average exercise price As of December 31, 2015 , there were no NQSOs outstanding. NQSO activity and statistics were as follows: (in thousands) 2013 Cash received from exercise $ 287 Intrinsic value of shares exercised 1 128 Tax benefit realized for the deduction of exercises 50 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: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 80,000 $ 26.18 164,000 $ 26.12 164,000 $ 26.12 Granted — — — — — — Exercised (80,000 ) 26.18 (22,000 ) 26.18 — — Forfeited — — (62,000 ) 26.02 — — Expired — — — — — — Outstanding, December 31 — $ — 80,000 $ 26.18 164,000 $ 26.12 Exercisable, December 31 — $ — 80,000 $ 26.18 164,000 $ 26.12 (1) Weighted-average exercise price As of December 31, 2015 , there were no SARs outstanding. SARs activity and statistics were as follows: (in thousands) 2015 2014 2013 Intrinsic value of shares exercised 1 $ 502 $ 29 $ — Tax benefit realized for the deduction of exercises 82 11 — 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 Shares (1) Shares (1) Outstanding, January 1 4,503 $ 22.21 9,005 $ 22.21 Granted — — — — Vested (4,503 ) 22.21 (4,502 ) 22.21 Forfeited — — — — Outstanding, December 31 — $ — 4,503 $ 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 and 2013 , total restricted stock vested had a grant-date fair value of $0.1 million and $0.1 million , respectively, and the tax benefits realized for the tax deductions related to restricted stock awards were nil for 2014 and 2013 . Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 261,235 $ 25.77 288,151 $ 25.17 315,094 $ 22.82 Granted 85,772 33.69 117,786 25.17 111,231 26.88 Vested (102,173 ) 25.67 (144,702 ) 24.09 (118,885 ) 20.48 Forfeited (34,200 ) 27.09 — — (19,289 ) 25.62 Outstanding, December 31 210,634 $ 28.82 261,235 $ 25.77 288,151 $ 25.17 Total weighted-average grant-date fair value of shares granted ($ millions) $ 2.9 $ 3.0 $ 3.0 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2015 , 2014 and 2013 , total restricted stock units and related dividends that vested had a fair value of $3.7 million , $4.1 million and $3.7 million , respectively, and the related tax benefits were $1.1 million , $1.2 million and $0.9 million , respectively. As of December 31, 2015 , there was $3.9 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 2013-2015 LTIP and 2014-2016 LTIP provide for performance awards under the original 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 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 and ASB net income - all based on the applicable three -year averages, and ASB return on assets relative to performance peers. The 2015-2017 LTIP provides for performance awards payable in cash, and thus, is not included in the tables below. LTIP linked to TRS . Information about HEI’s LTIP grants linked to TRS was as follows: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 257,956 $ 28.45 232,127 $ 32.88 239,256 $ 29.12 Granted — — 97,524 22.95 91,038 32.69 Vested (settled or lapsed) (75,915 ) 30.71 (70,189 ) 35.46 (87,753 ) 22.45 Forfeited (19,541 ) 26.25 (1,506 ) 28.32 (10,414 ) 32.72 Outstanding, December 31 162,500 $ 27.66 257,956 $ 28.45 232,127 $ 32.88 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ 2.2 $ 3.0 (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 Risk-free interest rate 0.66 % 0.38 % Expected life in years 3 3 Expected volatility 17.8 % 19.4 % Range of expected volatility for Peer Group 12.4% to 23.3% 12.4% to 25.3% Grant date fair value (per share) $ 22.95 $ 32.69 For 2015 , 2014 and 2013 , total vested LTIP awards linked to TRS and related dividends had a fair value of nil , nil and $2.2 million , respectively, and the related tax benefits were nil , nil and $0.9 million , respectively. For 2015 and 2014, all of the shares vested (which were granted at target level based on the satisfaction of TRS performance) for the 2012-2014 LTIP and 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, 2015 , there was $0.5 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 year . LTIP awards linked to other performance conditions . Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 364,731 $ 26.01 296,843 $ 26.14 247,175 $ 25.04 Granted — — 129,603 25.18 120,399 26.89 Vested and settled (121,249 ) 26.05 (65,089 ) 24.95 (18,280 ) 18.95 Increase above target (cancelled) 3,412 26.89 4,949 26.70 (41,599 ) 24.97 Forfeited (24,247 ) 25.82 (1,575 ) 26.07 (10,852 ) 26.20 Outstanding, December 31 222,647 $ 26.02 364,731 $ 26.01 296,843 $ 26.14 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ — $ 3.3 $ 3.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2015 , 2014 and 2013 , total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $4.7 million , $1.9 million and $0.6 million , respectively, and the related tax benefits were $1.8 million , $0.8 million and $0.2 million , respectively. As of December 31, 2015 , there was $1.0 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 year . |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 2015 2014 2013 (in thousands) Federal Current (1) $ 44,343 $ (8,959 ) $ (295 ) $ — $ 1,108 $ 1,313 Deferred (1) 36,664 91,412 73,473 68,757 68,775 58,024 Deferred tax credits, net 318 — 224 318 — 224 81,325 82,453 73,402 69,075 69,883 59,561 State Current (1) 2,402 (5,793 ) (630 ) (1,048 ) (9,436 ) (3,720 ) Deferred (1) 4,768 12,813 6,672 6,869 14,172 6,483 Deferred tax credits, net 4,526 6,106 6,793 4,526 6,106 6,793 11,696 13,126 12,835 10,347 10,842 9,556 Total $ 93,021 $ 95,579 $ 86,237 $ 79,422 $ 80,725 $ 69,117 (1) HEI Consolidated amounts for 2014 and 2013 have been updated to reflect the first quarter 2015 adoption of ASU No. 2014-01. See Note 1 for a discussion of the adoption of ASU No. 2014-01 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 2015 2014 2013 2015 2014 2013 (in thousands) Amount at the federal statutory income tax rate (1) $ 89,176 $ 92,959 $ 87,442 $ 75,996 $ 77,126 $ 67,914 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit (1) 8,097 9,073 8,667 6,726 7,047 6,211 Other, net (1) (4,252 ) (6,453 ) (9,872 ) (3,300 ) (3,448 ) (5,008 ) Total $ 93,021 $ 95,579 $ 86,237 $ 79,422 $ 80,725 $ 69,117 Effective income tax rate 36.5 % 36.0 % 34.5 % 36.6 % 36.6 % 35.6 % (1) HEI Consolidated amounts for 2014 and 2013 have been updated to reflect the first quarter 2015 adoption of ASU No. 2014-01. See Note 1 for a discussion of the adoption of ASU No. 2014-01. The Company's effective tax rate increased in 2015 and 2014 compared to 2013 primarily due to the increase in nondeductible merger costs. The Company's effective tax rate increase in 2014 compared to 2013 was also due to the $2.7 million out-of-period income tax benefits recognized in 2013 (see “Out-of-period income tax benefit” below). The Utilities' effective tax rate increased in 2014 compared to 2013 primarily due to the out-of-period income tax benefits. 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 2015 2014 2015 2014 (in thousands) Deferred tax assets Net operating loss $ — $ — $ 37,283 $ 51,936 Other (1) 64,870 56,526 20,238 17,663 Total deferred tax assets 64,870 56,526 57,521 69,599 Deferred tax liabilities Property, plant and equipment related 492,441 448,723 489,884 446,259 Repairs deduction 104,081 86,408 104,081 86,408 Regulatory assets, excluding amounts attributable to property, plant and equipment 34,261 33,795 34,261 33,795 Deferred RAM and RBA revenues 26,400 32,889 26,400 32,889 Retirement benefits 42,006 25,336 44,991 28,758 Other (1) 46,558 62,945 12,710 14,929 Total deferred tax liabilities 745,747 690,096 712,327 643,038 Net deferred income tax liability $ 680,877 $ 633,570 $ 654,806 $ 573,439 (1) HEI consolidated and Hawaiian Electric consolidated amounts as of December 31, 2014 have been updated to reflect the Company's adoption of ASU No. 2014-01 and the Utilities' adoption of ASU No. 2015-17, respectively. See Note 1 for a discussion of the Company's adoption of ASU No. 2014-01 and the Utilities’ adoption of ASU No. 2015-17. 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, 2015 , the valuation allowance for deferred tax benefits is not significant. In 2015 , the net deferred income tax liability continued to increase primarily as a result of accelerated tax deductions taken for bonus depreciation that was retroactively enacted in the Protecting Americans from Tax Hikes (PATH) Act of 2015. 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 anticipate any unutilized net operating loss (NOL) as of December 31, 2015 , standalone Hawaiian Electric consolidated expects an unutilized NOL for federal tax purposes in accordance with the HEI tax sharing agreement. The Hawaiian Electric deferred tax asset associated with this NOL as of December 31, 2015 has decreased from December 31, 2014 as shown above. HEI consolidated. In 2014 and 2013 , 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 and $0.3 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, 2015 and 2014 , the total amount of accrued interest related to uncertain tax positions and recognized on the balance sheet in “Interest and dividends payable” was $0.1 million and nil , respectively. As of December 31, 2015 , the total amount of liability for uncertain tax positions was $3.6 million . Hawaiian Electric consolidated. In 2014 and 2013 , credit adjustments to interest expense on income taxes was reflected in “Interest and other charges” in the amount of $0.7 million and $0.3 million , respectively. The credit adjustments to interest expense were primarily due to the resolution of tax issues with the IRS. As of December 31, 2015 and 2014 , the total amount of accrued interest related to uncertain tax positions was $0.1 million . As of December 31, 2015 , the total amount of liability for uncertain tax positions was $3.6 million . The changes in total unrecognized tax benefits were as follows: HEI consolidated Hawaiian Electric consolidated (in millions) 2015 2014 2013 2015 2014 2013 Unrecognized tax benefits, January 1 $ — $ 0.9 $ 0.8 $ — $ 0.5 0.4 Additions based on tax positions taken during the year — — — — — — Reductions based on tax positions taken during the year — — — — — — Additions for tax positions of prior years 3.6 0.1 0.5 3.6 0.1 0.5 Reductions for tax positions of prior years — — (0.4 ) — — (0.4 ) Settlements (1.0 ) — — (0.6 ) — Lapses of statute of limitations — — — — — — Unrecognized tax benefits, December 31 $ 3.6 $ — $ 0.9 $ 3.6 $ — $ 0.5 As of December 31, 2015 , 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. In 2014, the IRS completed its examination of the Company’s federal income tax returns for tax years 2010 and 2011. In October 2014, the Company and the IRS reached an agreement on all adjustments, primarily related to depreciation , resulting in no material impacts to the income statement. Tax years 2011 through 2014 remain subject to examination by the Department of Taxation of the State of Hawaii. 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. The Utilities adopted the safe harbor guidelines with respect to network (transmission and distribution) 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 has adopted a method believed to be consistent with this guidance in its 2014 tax return filed in September 2015. On December 18, 2015, Congress passed, and President Obama signed into law, the “Protecting Americans from Tax Hikes (PATH) Act of 2015” and the “Consolidating Appropriations Act, 2016,” providing government funding and a number of significant tax changes. The provision with the greatest impact on the Company is the extension of bonus depreciation. The PATH Act retroactively extended 50% bonus depreciation for qualified property acquired and placed in service in 2015 and continues 50% bonus depreciation through 2017. The bonus depreciation percentage decreases to 40% in 2018 and 30% in 2019 and terminates thereafter. The extension of bonus depreciation is expected to result in an increase in 2015 tax depreciation of approximately $117 million , primarily attributable to the Utilities. The PATH Act also made the research credit permanent, providing a 20% credit on the amount that the cost of qualified research expenditures for the tax year exceeds an amount based on prior expenditures. Additionally, the “Consolidating Appropriations Act, 2016” extended a variety of energy-related credits that were expired or soon to expire. These credits include the production credit for wind facilities and the 30% investment credit for qualified solar energy property, with various phase-out dates through 2021. |
Cash flows
Cash flows | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | 13 · Cash flows Years ended December 31 2015 2014 2013 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 83 $ 84 $ 85 Income taxes paid 75 47 18 Income taxes refunded 55 24 4 Hawaiian Electric consolidated Interest paid to non-affiliates 61 61 59 Income taxes paid 13 6 6 Income taxes refunded 12 8 32 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment-unpaid invoices and accruals (investing) 5 43 (12 ) Common stock dividends reinvested in HEI common stock (financing) 1 — — 24 Loans transferred from held for investment to held for sale (investing to operating) — — 25 Real estate acquired in settlement of loans (investing) 1 3 4 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 5 — — Obligations to fund low income housing investments, net (operating) 4 14 1 Hawaiian Electric consolidated Electric utility property, plant and equipment AFUDC-equity (operating) 7 7 6 Estimated fair value of noncash contributions in aid of construction (investing) 3 3 5 Unpaid invoices and accruals (investing) 5 40 (12 ) Refinancing of long-term debt (financing) 47 — — 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, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory restrictions on net assets | 14 · Regulatory restrictions on net assets As of December 31, 2015 , the Utilities could not transfer approximately $711 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, 2015 , ASB could transfer approximately $141 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 concentration
Significant group concentrations of credit risk | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 | |
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. 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 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 advances and repurchase agreements of similar remaining maturities. The majority of market inputs are actively quoted and can be validated through external sources including broker market transactions and third party pricing services. 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, the carrying amount is a reasonable estimate of fair value because it can only be redeemed at par. For bank-owned life insurance, the carrying amount is the cash surrender value of the insurance policies, which 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 notional amount Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs Total December 31, 2015 Financial assets Money market funds $ 10 $ — $ 10 $ — $ 10 Available-for-sale investment securities 820,648 — 820,648 — 820,648 Stock in Federal Home Loan Bank 10,678 — 10,678 — 10,678 Loans receivable, net 4,570,412 — 4,639 4,744,886 4,749,525 Mortgage servicing rights 8,444 — — 11,790 11,790 Bank-owned life insurance 138,139 — 138,139 — 138,139 Derivative assets 22,616 — 385 — 385 Financial liabilities Deposit liabilities 5,025,254 — 5,024,500 — 5,024,500 Short-term borrowings—other than bank 103,063 — 103,063 — 103,063 Other bank borrowings 328,582 — 333,392 — 333,392 Long-term debt, net—other than bank 1,586,546 — 1,669,087 — 1,669,087 The Utilities' long-term debt, net (included in amount above) 1,286,546 — 1,363,766 — 1,363,766 Derivative liabilities 23,269 15 15 — 30 December 31, 2014 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 69,302 — 69,302 — 69,302 Loans receivable, net 4,397,457 — 8,713 4,570,109 4,578,822 Mortgage servicing rights 11,540 — — 14,504 14,504 Bank-owned life insurance 134,115 — 134,115 — 134,115 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 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: December 31 2015 2014 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 $ — $ 607,689 $ — $ — $ 430,834 $ — U.S. Treasury and federal agency obligations — 212,959 — — 119,560 — $ — $ 820,648 $ — $ — $ 550,394 $ — Derivative assets 1 Interest rate lock commitments $ — $ 384 $ — $ — $ 393 $ — Forward commitments — 1 — — 5 — $ — $ 385 $ — $ — $ 398 $ — Derivative liabilities 1 Interest rate lock commitments $ — $ — $ — $ — $ 3 $ — Forward commitments 15 15 — 71 40 — $ 15 $ 15 $ — $ 71 $ 43 $ — 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, 2015 and 2014. 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. The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements using (in thousands) Balance Level 1 Level 2 Level 3 December 31, 2015 Loans $ 178 $ — $ — $ 178 Real estate acquired in settlement of loans 1,030 — — 1,030 December 31, 2014 Loans 2,445 — — 2,445 Real estate acquired in settlement of loans 288 — — 288 Mortgage servicing rights 1,240 — — 1,240 For 2015 and 2014 , 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 unobsetvable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2015 Residential loans $ 50 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Home equity lines of credit 128 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 178 Real estate acquired in settlement of loans $ 1,030 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% December 31, 2014 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 N/A (2) Commercial loans 145 Fair value of property or collateral Fair value of business assets N/A (2) Total loans $ 2,445 Real estate acquired in settlement of loans $ 288 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% Mortgage servicing rights $ 1,240 Discounted cash flow Prepayment speed 6.7-22.4% 12.2% Discount rate 9.6% 9.6% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. 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 2015 Equity securities $ 640 $ 640 $ — $ — $ 92 $ 92 $ — $ — Equity index funds 119 119 — — 17 17 — — Fixed income securities and public mutual funds 425 85 340 — 48 41 7 — Pooled and mutual funds and other 84 3 81 — 14 4 10 — Total $ 1,268 $ 847 $ 421 $ — $ 171 $ 154 $ 17 $ — Cash, receivables and payables, net 3 — Fair value of plan assets $ 1,271 $ 171 2014 Equity securities $ 649 $ 649 $ — $ — $ 99 $ 99 $ — $ — Equity index funds 132 132 — — 19 19 — — Fixed income securities and public mutual funds 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 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, 2015 and 2014 . 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 (some of which are not open to public investment) and are valued at the net asset value per share. “Other” consists primarily of fixed income securities purchased as part of the retirement benefit plans’ cash management process. |
Other related-party transaction
Other related-party transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Other related-party transactions | 17 · Other related-party transactions Mr. Timothy Johns, a member of the Hawaiian Electric Board of Directors, is an executive officer of Hawaii Medical Service Association (HMSA). Ms. Susan Li, an executive of Hawaiian Electric, is the Vice Chairperson of the Hawaii Dental Service (HDS) Board of Directors. The Company’s HMSA costs and expense (for health insurance premiums, claims plus administration expense and stop-loss insurance coverages) and HDS costs and expense (for dental insurance premiums) and the Utilities’ HMSA costs and expense (for health insurance premiums) and HDS costs and expense (for dental insurance premiums) were as follows: HEI consolidated Hawaiian Electric consolidated (in millions) 2015 2014 2013 2015 2014 2013 HMSA costs $ 30 $ 25 $ 23 $ 23 $ 20 $ 18 HMSA expense* 21 18 17 14 13 12 HDS costs 3 3 3 2 2 2 HDS expense* 2 2 2 1 1 1 * Charged the remaining costs primarily to electric utility plant. The costs and expense in the table above are gross amounts (i.e., not net of employee contributions to employee benefits). |
Quarterly information (unaudite
Quarterly information (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information (unaudited) | 18 · 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 2015 Revenues $ 637,862 $ 623,912 $ 717,176 $ 624,032 $ 2,602,982 Operating income 69,506 72,730 97,095 83,222 322,553 Net income 32,339 35,491 51,144 42,793 161,767 Net income for common stock 31,866 35,018 50,673 42,320 159,877 Basic earnings per common share 1 0.31 0.33 0.47 0.39 1.50 Diluted earnings per common share 2 0.31 0.33 0.47 0.39 1.50 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Market price per common share 3 High 34.86 32.58 31.28 30.29 34.86 Low 31.75 29.62 27.02 27.45 27.02 2014 Revenues $ 783,749 $ 798,657 $ 867,096 $ 790,040 $ 3,239,542 Operating income 89,214 83,183 92,036 68,167 332,600 Net income 46,260 41,754 48,279 33,726 170,019 Net income for common stock 45,787 41,281 47,808 33,253 168,129 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 1.63 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Market price per common share 3 High 26.80 25.65 26.89 35.00 35.00 Low 24.39 23.04 22.71 26.04 22.71 Hawaiian Electric consolidated 2015 Revenues $ 573,442 $ 558,163 $ 648,127 $ 555,434 $ 2,335,166 Operating income 57,636 66,161 82,657 67,662 274,116 Net income 27,373 33,340 43,504 33,492 137,709 Net income for common stock 26,874 32,841 43,006 32,993 135,714 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 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 FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED BALANCE SHEETS December 31 2015 2014 (dollars in thousands) Assets Cash and cash equivalents $ 55,116 $ 276 Accounts receivable 5,459 1,991 Property, plant and equipment, net 4,514 4,917 Deferred income tax assets 16,715 15,922 Other assets 11,984 11,070 Investments in subsidiaries, at equity 2,293,679 2,223,597 $ 2,387,467 $ 2,257,773 Liabilities and shareholders’ equity Liabilities Accounts payable $ 1,254 $ 1,993 Interest payable 2,450 2,583 Notes payable to subsidiaries 5,946 7,857 Commercial paper 103,063 118,972 Long-term debt, net 300,000 300,000 Retirement benefits liability 31,704 32,030 Other 15,410 3,765 459,827 467,200 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: 107,460,406 shares and 102,565,266 shares 1,629,136 1,521,297 Retained earnings 324,766 296,654 Accumulated other comprehensive loss (26,262 ) (27,378 ) 1,927,640 1,790,573 $ 2,387,467 $ 2,257,773 Note to Balance Sheets HEI Term loan LIBOR + .75% (effective October 8, 2015), due 2017 $ 125,000 $ 125,000 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 $ 300,000 See Note 1 for the impact to prior period financial information of the adoption of ASU No. 2014-01. The aggregate payments of principal required subsequent to December 31, 2015 on long-term debt are $75 million in 2016, $125 million in 2017 and nil in 2018 , 2019 and 2020 . As of December 31, 2015 , 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. SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF INCOME Years ended December 31 2015 2014 2013 (in thousands) Revenues $ 327 $ 303 $ 288 Equity in net income of subsidiaries 190,033 188,727 180,552 Expenses: Operating, administrative and general 34,350 20,921 16,063 Depreciation of property, plant and equipment 576 575 596 Taxes, other than income taxes 440 469 497 Interest expense 10,788 11,599 16,207 Income before income tax benefits 144,206 155,466 147,477 Income tax benefits 15,671 13,047 14,232 Net income $ 159,877 $ 168,513 $ 161,709 See Note 1 for the impact to prior period financial information of the adoption of ASU No. 2014-01. 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. SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31 2015 2014 2013 (in thousands) Net cash provided by operating activities $ 97,141 $ 100,794 $ 82,274 Cash flows from investing activities Capital expenditures (173 ) (74 ) (201 ) Investments in subsidiaries — (40,000 ) (78,500 ) Net cash used in investing activities (173 ) (40,074 ) (78,701 ) Cash flows from financing activities Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less 87 (222 ) 56 Net increase (decrease) in short-term borrowings with original maturities of three months or less (15,909 ) 13,490 21,788 Proceeds from issuance of long-term debt — 125,000 50,000 Repayment of long-term debt — (100,000 ) (50,000 ) Excess tax benefits from share-based payment arrangements 978 277 430 Net proceeds from issuance of common stock 104,435 26,898 55,086 Common stock dividends (131,765 ) (126,458 ) (98,383 ) Other 46 — — Net cash used in financing activities (42,128 ) (61,015 ) (21,023 ) Net increase (decrease) in cash and equivalents 54,840 (295 ) (17,450 ) Cash and cash equivalents, January 1 276 571 18,021 Cash and cash equivalents, December 31 $ 55,116 $ 276 $ 571 In 2015 , 2014 and 2013 , cash dividends received from subsidiaries were $121 million , $124 million and $122 million , respectively. Supplemental disclosures of noncash activities: In 2015 , 2014 and 2013 , $2.3 million , $2.4 million and $2.3 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 2015 , 2014 and 2013 , $0.3 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 , nil and $24 million in 2015 , 2014 and 2013 , 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 through January 5, 2016 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 II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2015, 2014 and 2013 Col. A Col. B Col. C Col. D Col. E (in thousands) Additions Description Balance at begin- ning of period Charged to costs and expenses Charged to other accounts Deductions Balance at end of period 2015 Allowance for uncollectible accounts – electric utility $ 1,959 $ 3,653 $ 977 (a) $ 4,890 (b),(c) $ 1,699 Allowance for uncollectible interest – bank $ 1,514 $ — $ 165 $ — $ 1,679 Allowance for losses for loans receivable – bank $ 45,618 $ 6,275 $ 4,571 (a) $ 6,426 (b) $ 50,038 Allowance for mortgage-servicing assets – bank $ 209 $ — $ (205 ) $ 4 $ — Deferred tax valuation allowance – HEI $ 45 $ 9 $ — $ — $ 54 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 (a) Primarily recoveries. (b) Bad debts charged off. (c) Reclass of allowance for one customer account into other long term assets. |
Summary of significant accoun39
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 HEI and its subsidiaries (collectively, 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 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. |
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 the Company. 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 charged to expense 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, real estate owned, goodwill and asset retirement obligations (AROs). |
Earnings per share (HEI only) | 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. For 2014 and 2013, HEI used the two-class method of computing EPS as restricted stock grants included non-forfeitable rights to dividends and were 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. Investments in Qualified Affordable Housing Projects . In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 and investment amortization, net of tax credits, may be recognized in the income statement as a component of income taxes attributable to continuing operations. The amendments also require additional disclosures. The Company retrospectively adopted ASU No. 2014-01 in the first quarter of 2015. For prior periods, pursuant to ASU No. 2014-01, (a) amortization expense related to ASB’s qualifying investments in low income housing tax credits was reclassified from noninterest expense to income taxes; and (b) additional amortization, net of associated tax benefits was recognized in income taxes as a result of the adoption. The cumulative effect to retained earnings as of January 1, 2013 of adopting this guidance was a reduction of $0.9 million . Amounts in the financial statements as of December 31, 2014, 2013 and 2012 and for the years ended December 31, 2014 and 2013, have been updated to reflect the retrospective application. The table below summarizes the impact to prior period financial statements of the retrospective adoption of ASU No. 2014-01: HEI Consolidated ASB (in thousands) As previously filed Adjust-ment from adoption of ASU No. 2014-01 Reclassi-fications As currently reported As previously filed Adjust-ment As currently reported HEI Consolidated Income Statements/ASB Statements of Income Data Year ended December 31, 2014 Bank expenses/Noninterest expense $ 176,878 $ (3,676 ) $ 173,202 $ 159,944 $ (3,676 ) $ 156,268 Bank operating income/Income before income taxes 75,619 3,676 79,295 75,619 3,676 79,295 Income taxes 91,712 3,867 95,579 24,127 3,867 27,994 Net income for common stock/Net income 168,320 (191 ) 168,129 51,492 (191 ) 51,301 Year ended December 31, 2013 Bank expenses/Noninterest expense 171,090 (2,089 ) 169,001 159,504 (2,089 ) 157,415 Bank operating income/Income before income taxes 87,057 2,089 89,146 87,059 2,089 89,148 Income taxes 84,341 1,896 86,237 29,525 1,896 31,421 Net income for common stock/Net income 161,516 193 161,709 57,534 193 57,727 HEI Consolidated Balance Sheet/ASB Balance Sheet Data December 31, 2014 Other assets 541,542 981 542,523 304,435 981 305,416 Total assets and Total liabilities and shareholders’ equity 11,184,161 981 11,185,142 5,565,241 981 5,566,222 Deferred income taxes/Other liabilities 631,734 1,836 633,570 116,527 1,836 118,363 Total liabilities 9,358,440 1,836 9,360,276 5,030,598 1,836 5,032,434 Retained earnings 297,509 (855 ) 296,654 212,789 (855 ) 211,934 Total shareholders’ equity 1,791,428 (855 ) 1,790,573 534,643 (855 ) 533,788 HEI Consolidated Statements of Changes in Stockholders’ Equity December 31, 2013 Retained earnings 255,694 (664 ) 255,030 Total shareholders’ equity 1,727,070 (664 ) 1,726,406 December 31, 2012 Retained earnings 216,804 (857 ) 215,947 Total shareholders’ equity 1,593,865 (857 ) 1,593,008 HEI Consolidated Statements of Cash Flows Year ended December 31, 2014 Net income 170,210 (191 ) 170,019 Increase in deferred income taxes 103,916 310 104,226 Change in other assets and liabilities (94,966 ) (119 ) $ (6,111 ) (101,196 ) Year ended December 31, 2013 Net income 163,406 193 163,599 Increase in deferred income taxes 80,399 (254 ) 80,145 Change in other assets and liabilities (11,696 ) 61 (2,657 ) (14,292 ) 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 adopted ASU No. 2014-04 in the first quarter of 2015 and the adoption did not 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 2018, 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 adopted ASU No. 2014-11 in the first quarter of 2015 and the adoption did not have a material impact on the Company’s results of operations, financial condition or liquidity. Debt issuance costs . In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company plans to retrospectively adopt ASU No. 2015-03 in the first quarter 2016 and does not expect the adoption to have a material impact on the Company’s results of operations, financial condition or liquidity. Investments in certain entities that calculate net asset value per share . In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and limits certain disclosures to those investments. The Company plans to retrospectively adopt ASU No. 2015-07 in the first quarter 2016 and will adjust its disclosures on the fair value of retirement benefit plan assets accordingly. Balance sheet classification of deferred taxes . In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which eliminates the current requirement for entities to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet and instead requires all deferred tax liabilities and assets be classified as noncurrent. The Utilities retrospectively adopted ASU No. 2015-17 in the fourth quarter of 2015. Hawaiian Electric’s consolidated balance sheets as of December 31, 2015 and 2014, which are classified balance sheets, do not separate deferred tax liabilities and assets into a current amount and a noncurrent amount, but presents all deferred tax liabilities and assets as noncurrent amounts. The table below summarizes the impact to the prior period financial statements of the adoption of ASU No. 2015-17: (in thousands) As previously filed Adjustment from adoption of ASU No. 2015-17 As currently reported December 31, 2014 Hawaiian Electric Consolidated Balance Sheet Prepayments and other $ 66,383 $ (32,915 ) $ 33,468 Total current assets 615,003 (32,915 ) 582,088 Total assets and Total capitalization and liabilities 5,590,457 (32,915 ) 5,557,542 Other current liabilities 65,146 (3,482 ) 61,664 Total current liabilities 502,430 (3,482 ) 498,948 Deferred income taxes 602,872 (29,433 ) 573,439 Total deferred credits and other liabilities 1,698,612 (29,433 ) 1,669,179 Note 4 - Hawaiian Electric Consolidating Balance Sheet Hawaiian Electric (parent only) Prepayments and other 44,680 (24,449 ) 20,231 Total current assets 463,929 (24,449 ) 439,480 Total assets and Total liabilities and shareholders’ equity 4,396,815 (24,449 ) 4,372,366 Other current liabilities 48,282 (2,913 ) 45,369 Total current liabilities 362,652 (2,913 ) 359,739 Deferred income taxes 429,515 (21,536 ) 407,979 Total deferred credits and other liabilities 1,215,441 (21,536 ) 1,193,905 Hawaii Electric Light Prepayments and other 8,611 1,526 10,137 Total current assets 77,561 1,526 79,087 Total assets and Total liabilities and shareholders’ equity 924,885 1,526 926,411 Other current liabilities 9,866 (279 ) 9,587 Total current liabilities 85,631 (279 ) 85,352 Deferred income taxes 90,119 1,805 91,924 Total deferred credits and other liabilities 265,993 1,805 267,798 Maui Electric Prepayments and other 13,567 (9,992 ) 3,575 Total current assets 98,911 (9,992 ) 88,919 Total assets and Total liabilities and shareholders’ equity 832,977 (9,992 ) 822,985 Other current liabilities 16,094 (290 ) 15,804 Total current liabilities 79,646 (290 ) 79,356 Deferred income taxes 83,238 (9,702 ) 73,536 Total deferred credits and other liabilities 217,421 (9,702 ) 207,719 December 31, 2013 Note 3 - Hawaiian Electric Consolidated assets 5,087,129 (20,702 ) 5,066,427 Financial instruments . In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which, among other things: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). • Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The Company plans to adopt ASU No. 2016-01 in the first quarter of 2018 and has not yet determined the impact of adoption. |
Reclassifications | Reclassifications. Reclassifications made to prior years’ financial statements to conform to the 2015 presentation did not affect previously reported results of operations and include additional detail of noncash items in operating activities on the Company's and Hawaiian Electric's Consolidated Statements of Cash Flows. |
Electric utility | |
Regulation by the Public Utilities Commission of the State of Hawaii (PUC) | 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. 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. |
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. 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 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 | |
Investment securities | 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 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 using the interest method over the remaining contractual lives of the agency obligation securities and the estimated lives of the mortgage-related securities adjusted for anticipated prepayments. 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. The discounts and premiums on the agency obligations portfolio are accreted or amortized on a prospective basis using expected contractual cash flows. The discounts and premiums on the mortgage-related securities portfolio are accreted or amortized on a retrospective basis using changes in anticipated prepayments. This method requires a retrospective adjustment of the effective yield each time ASB changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. Estimates of future prepayments are based on the underlying collateral characteristics and historic or projected prepayment behavior of each security. The specific identification method is used in determining realized gains and losses on the sales of securities. 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 or there is a change in the expected cash flows, 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. Based on ASB's evaluation as of December 31, 2015 and 2014, there was no indicated impairment as the bank expects to collect the contractual cash flows for these investments. Stock in Federal Home Loan Bank (FHLB) is carried at cost and is reviewed at least periodically for impairment, with valuation adjustments recognized in noninterest income. |
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 periods not exceeding the contractual 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. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held for sale. 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 original 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, 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 | 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. All interest that is accrued but not collected is reversed. 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 or repayment sources 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 or repayment sources exist; (c) borrower’s debt is discharged in bankruptcy and the loan is not reaffirmed; or (d) in cases where ASB is in a subordinate position to other debt, the senior lien holder has foreclosed and ASB's 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 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 | Goodwill. At December 31, 2015 and 2014 , 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. ASB management performed a Step 0 analysis by assessing the relevant circumstances listed above, including the proposed spin-off of the bank from HEI, and determined that it was not more likely than not that the fair value of ASB 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 ASB exceeded its carrying value by 60% . No adjustment of the forecasted net income used in the Step 1 analysis done in 2013 is required at this time. For the three years ended December 31, 2015 , 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. Premiums, discounts and net deferred loan fees are not amortized while a loan is classified as held for sale. 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 considers and records a reserve for loan repurchases if appropriate. 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 MSRs in proportion to and over the period of estimated net servicing income and assess for impairment at each reporting date. ASB's MSRs are stratified based on predominant risk characteristics of the underlying loans including loan type such as fixed-rate 15 and 30 year mortgages and note rate in bands primarily of 50 to 100 basis points. 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. ASB uses a present value cash flow model using techniques described above to estimate the fair value of MSRs. Because observable market prices with exact terms and conditions may not be readily available, ASB compares the fair value of MSRs to an estimated value calculated by an independent third-party on a semi-annual basis. 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 generated by the valuation model. 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. 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 | 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. The Company uses the proportional method of accounting for its investments. Under the proportional method, the Company amortizes the cost of its investments in proportion to the tax credits and other tax benefits it receives. The amortization, tax credits and tax benefits are reported as a component of income tax expense. Cash contributions and payments made on commitments to low-income housing tax credit (LIHTC) investments are classified as operating activities in the Company’s consolidated statements of cash flows. 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. As of December 31, 2015, ASB did not have any impairment losses resulting from forfeiture or ineligibility of tax credits or other circumstances related to its LIHTC investments. |
Summary of significant accoun40
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of future minimum lease payments | HEI's consolidated and the Utilities' future minimum lease payments are as follows: (in millions) HEI Hawaiian Electric 2016 $ 11 $ 5 2017 10 4 2018 7 3 2019 6 2 2020 4 2 Thereafter 10 6 $ 48 $ 22 |
Schedule of earnings per share basic and diluted under two-class method | Under the two-class method of computing EPS, HEI's EPS was comprised as follows for both participating securities (i.e., restricted shares that became fully vested in the fourth quarter of 2014) and unrestricted common stock: 2014 2013 Basic Diluted Basic Diluted Distributed earnings $ 1.24 $ 1.24 $ 1.24 $ 1.24 Undistributed earnings 0.41 0.39 0.39 0.38 $ 1.65 $ 1.63 $ 1.63 $ 1.62 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The table below summarizes the impact to prior period financial statements of the retrospective adoption of ASU No. 2014-01: HEI Consolidated ASB (in thousands) As previously filed Adjust-ment from adoption of ASU No. 2014-01 Reclassi-fications As currently reported As previously filed Adjust-ment As currently reported HEI Consolidated Income Statements/ASB Statements of Income Data Year ended December 31, 2014 Bank expenses/Noninterest expense $ 176,878 $ (3,676 ) $ 173,202 $ 159,944 $ (3,676 ) $ 156,268 Bank operating income/Income before income taxes 75,619 3,676 79,295 75,619 3,676 79,295 Income taxes 91,712 3,867 95,579 24,127 3,867 27,994 Net income for common stock/Net income 168,320 (191 ) 168,129 51,492 (191 ) 51,301 Year ended December 31, 2013 Bank expenses/Noninterest expense 171,090 (2,089 ) 169,001 159,504 (2,089 ) 157,415 Bank operating income/Income before income taxes 87,057 2,089 89,146 87,059 2,089 89,148 Income taxes 84,341 1,896 86,237 29,525 1,896 31,421 Net income for common stock/Net income 161,516 193 161,709 57,534 193 57,727 HEI Consolidated Balance Sheet/ASB Balance Sheet Data December 31, 2014 Other assets 541,542 981 542,523 304,435 981 305,416 Total assets and Total liabilities and shareholders’ equity 11,184,161 981 11,185,142 5,565,241 981 5,566,222 Deferred income taxes/Other liabilities 631,734 1,836 633,570 116,527 1,836 118,363 Total liabilities 9,358,440 1,836 9,360,276 5,030,598 1,836 5,032,434 Retained earnings 297,509 (855 ) 296,654 212,789 (855 ) 211,934 Total shareholders’ equity 1,791,428 (855 ) 1,790,573 534,643 (855 ) 533,788 HEI Consolidated Statements of Changes in Stockholders’ Equity December 31, 2013 Retained earnings 255,694 (664 ) 255,030 Total shareholders’ equity 1,727,070 (664 ) 1,726,406 December 31, 2012 Retained earnings 216,804 (857 ) 215,947 Total shareholders’ equity 1,593,865 (857 ) 1,593,008 HEI Consolidated Statements of Cash Flows Year ended December 31, 2014 Net income 170,210 (191 ) 170,019 Increase in deferred income taxes 103,916 310 104,226 Change in other assets and liabilities (94,966 ) (119 ) $ (6,111 ) (101,196 ) Year ended December 31, 2013 Net income 163,406 193 163,599 Increase in deferred income taxes 80,399 (254 ) 80,145 Change in other assets and liabilities (11,696 ) 61 (2,657 ) (14,292 ) The table below summarizes the impact to the prior period financial statements of the adoption of ASU No. 2015-17: (in thousands) As previously filed Adjustment from adoption of ASU No. 2015-17 As currently reported December 31, 2014 Hawaiian Electric Consolidated Balance Sheet Prepayments and other $ 66,383 $ (32,915 ) $ 33,468 Total current assets 615,003 (32,915 ) 582,088 Total assets and Total capitalization and liabilities 5,590,457 (32,915 ) 5,557,542 Other current liabilities 65,146 (3,482 ) 61,664 Total current liabilities 502,430 (3,482 ) 498,948 Deferred income taxes 602,872 (29,433 ) 573,439 Total deferred credits and other liabilities 1,698,612 (29,433 ) 1,669,179 Note 4 - Hawaiian Electric Consolidating Balance Sheet Hawaiian Electric (parent only) Prepayments and other 44,680 (24,449 ) 20,231 Total current assets 463,929 (24,449 ) 439,480 Total assets and Total liabilities and shareholders’ equity 4,396,815 (24,449 ) 4,372,366 Other current liabilities 48,282 (2,913 ) 45,369 Total current liabilities 362,652 (2,913 ) 359,739 Deferred income taxes 429,515 (21,536 ) 407,979 Total deferred credits and other liabilities 1,215,441 (21,536 ) 1,193,905 Hawaii Electric Light Prepayments and other 8,611 1,526 10,137 Total current assets 77,561 1,526 79,087 Total assets and Total liabilities and shareholders’ equity 924,885 1,526 926,411 Other current liabilities 9,866 (279 ) 9,587 Total current liabilities 85,631 (279 ) 85,352 Deferred income taxes 90,119 1,805 91,924 Total deferred credits and other liabilities 265,993 1,805 267,798 Maui Electric Prepayments and other 13,567 (9,992 ) 3,575 Total current assets 98,911 (9,992 ) 88,919 Total assets and Total liabilities and shareholders’ equity 832,977 (9,992 ) 822,985 Other current liabilities 16,094 (290 ) 15,804 Total current liabilities 79,646 (290 ) 79,356 Deferred income taxes 83,238 (9,702 ) 73,536 Total deferred credits and other liabilities 217,421 (9,702 ) 207,719 December 31, 2013 Note 3 - Hawaiian Electric Consolidated assets 5,087,129 (20,702 ) 5,066,427 |
Summary Of Amounts In Income Tax Expense, Affordable Housing Projects | The table below summarizes the amounts in income tax expense related to ASB's investments in qualifying affordable housing projects: Years ended December 31 2015 2014 2013 (in millions) Amounts in income taxes related to investments in qualifying affordable housing projects Amortization recognized in the provision for income taxes $ (5.4 ) $ (3.6 ) $ (2.2 ) Tax credits and other tax benefits recognized in the provision for income taxes 8.0 5.4 3.6 Net benefit to income tax expense $ 2.6 $ 1.8 $ 1.4 |
Segment financial information (
Segment financial information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2015 Revenues from external customers $ 2,335,135 $ 267,733 $ 114 $ 2,602,982 Intersegment revenues (eliminations) 31 — (31 ) — Revenues 2,335,166 267,733 83 2,602,982 Depreciation and amortization 186,319 7,928 1,338 195,585 Interest expense, net 66,370 11,326 10,780 88,476 Income (loss) before income taxes 217,131 83,812 (46,155 ) 254,788 Income taxes (benefit) 79,422 29,082 (15,483 ) 93,021 Net income (loss) 137,709 54,730 (30,672 ) 161,767 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 135,714 54,730 (30,567 ) 159,877 Capital expenditures 350,161 13,470 173 363,804 Assets (at December 31, 2015) 5,680,054 6,014,755 95,387 11,790,196 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 176,284 5,399 1,361 183,044 Interest expense, net 64,757 10,808 11,595 87,160 Income (loss) before income taxes 220,361 79,295 (34,058 ) 265,598 Income taxes (benefit) 80,725 27,994 (13,140 ) 95,579 Net income (loss) 139,636 51,301 (20,918 ) 170,019 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 137,641 51,301 (20,813 ) 168,129 Capital expenditures 336,679 28,073 74 364,826 Assets (at December 31, 2014) 5,557,542 5,566,222 61,378 11,185,142 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 161,759 4,230 1,396 167,385 Interest expense, net 59,279 10,077 16,200 85,556 Income (loss) before income taxes 194,041 89,148 (33,353 ) 249,836 Income taxes (benefit) 69,117 31,421 (14,301 ) 86,237 Net income (loss) 124,924 57,727 (19,052 ) 163,599 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 122,929 57,727 (18,947 ) 161,709 Capital expenditures 378,044 11,193 201 389,438 Assets (at December 31, 2013) 5,066,427 5,244,686 29,793 10,340,906 |
Electric utility segment (Table
Electric utility segment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Electric utility subsidiary | |
Schedule of consolidating statements of income | Statements of Income Data Years ended December 31 2015 2014 2013 (in thousands) Interest and dividend income Interest and fees on loans $ 184,782 $ 179,341 $ 172,969 Interest and dividends on investment securities 15,120 11,945 13,095 Total interest and dividend income 199,902 191,286 186,064 Interest expense Interest on deposit liabilities 5,348 5,077 5,092 Interest on other borrowings 5,978 5,731 4,985 Total interest expense 11,326 10,808 10,077 Net interest income 188,576 180,478 175,987 Provision for loan losses 6,275 6,126 1,507 Net interest income after provision for loan losses 182,301 174,352 174,480 Noninterest income Fees from other financial services 22,211 21,747 27,099 Fee income on deposit liabilities 22,368 19,249 18,363 Fee income on other financial products 8,094 8,131 8,405 Bank-owned life insurance 4,078 3,949 3,928 Mortgage banking income 6,330 2,913 8,309 Gains on sale of investment securities — 2,847 1,226 Other income, net 4,750 2,375 4,753 Total noninterest income 67,831 61,211 72,083 Noninterest expense Compensation and employee benefits 90,518 79,885 82,910 Occupancy 16,365 17,197 16,747 Data processing 12,103 11,690 10,952 Services 10,204 10,269 9,015 Equipment 6,577 6,564 7,295 Office supplies, printing and postage 5,749 6,089 4,233 Marketing 3,463 3,999 3,373 FDIC insurance 3,274 3,261 3,253 Other expense 18,067 17,314 19,637 Total noninterest expense 166,320 156,268 157,415 Income before income taxes 83,812 79,295 89,148 Income taxes 29,082 27,994 31,421 Net income $ 54,730 $ 51,301 $ 57,727 |
Schedule of consolidating balance sheets | Balance Sheets Data December 31 2015 2014 (in thousands) Assets Cash and due from banks $ 127,201 $ 107,233 Interest-bearing deposits 93,680 54,230 Available-for-sale investment securities, at fair value 820,648 550,394 Stock in Federal Home Loan Bank, at cost 10,678 69,302 Loans receivable held for investment 4,615,819 4,434,651 Allowance for loan losses (50,038 ) (45,618 ) Net loans 4,565,781 4,389,033 Loans held for sale, at lower of cost or fair value 4,631 8,424 Other 309,946 305,416 Goodwill 82,190 82,190 Total assets $ 6,014,755 $ 5,566,222 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,520,374 $ 1,342,794 Deposit liabilities–interest-bearing 3,504,880 3,280,621 Other borrowings 328,582 290,656 Other 101,029 118,363 Total liabilities 5,454,865 5,032,434 Commitments and contingencies Common stock 1 1 Additional paid in capital 340,496 338,411 Retained earnings 236,664 211,934 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ (1,872 ) $ 462 Retirement benefit plans (15,399 ) (17,271 ) (17,020 ) (16,558 ) Total shareholder’s equity 559,890 533,788 Total liabilities and shareholder’s equity $ 6,014,755 $ 5,566,222 December 31 2015 2014 (in thousands) Other assets Bank-owned life insurance $ 138,139 $ 134,115 Premises and equipment, net 88,077 92,407 Prepaid expenses 3,550 3,196 Accrued interest receivable 15,192 13,632 Mortgage-servicing rights 8,884 11,540 Low-income housing equity investments 37,793 33,438 Real estate acquired in settlement of loans, net 1,030 891 Other 17,281 16,197 $ 309,946 $ 305,416 Other liabilities Accrued expenses $ 30,705 $ 37,880 Federal and state income taxes payable 13,448 28,642 Cashier’s checks 21,768 20,509 Advance payments by borrowers 10,311 9,652 Other 24,797 21,680 $ 101,029 $ 118,363 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Electric utility subsidiary | |
Schedule of regulatory assets | Regulatory assets were as follows: December 31 2015 2014 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 679,766 $ 683,243 Income taxes, net (1 to 55 years) 88,039 86,836 Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) 74,462 91,353 Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) 14,089 15,569 Vacation earned, but not yet taken (1 year) 10,420 10,248 Postretirement benefits other than pensions (18 years; less than 1 year remaining) — 18 Other (1 to 50 years; 1 to 46 years remaining) 29,955 17,997 $ 896,731 $ 905,264 Included in: Current assets $ 72,231 $ 71,421 Long-term assets 824,500 833,843 $ 896,731 $ 905,264 |
Schedule of regulatory liabilities | Regulatory liabilities were as follows: December 31 2015 2014 (in thousands) Cost of removal in excess of salvage value (1 to 60 years) $ 357,825 $ 331,000 Retirement benefit plans (5 years beginning with respective utility’s next rate case) 9,835 12,413 Other (5 years; 1 to 2 years remaining) 3,883 1,436 $ 371,543 $ 344,849 Included in: Current liabilities $ 2,204 $ 632 Long-term liabilities 369,339 344,217 $ 371,543 $ 344,849 |
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: December 31, 2015 Voluntary liquidation price Redemption 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 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) 2015 2014 Balance, January 1 $ 29,419 $ 43,106 Accretion expense 24 890 Liabilities incurred — — Liabilities settled (2,595 ) (14,577 ) Revisions in estimated cash flows — — Balance, December 31 $ 26,848 $ 29,419 |
Schedule of Annual Decoupling Filings [Table Text Block] | Below is a summary of the 2015 incremental impact by company. ($ in millions) Hawaiian Electric Hawaii Electric Light Maui Electric Annual incremental RAM adjusted revenues $ 8.1 $ 1.5 $ 1.5 Annual change in accrued earnings sharing credits to be refunded $ — $ — $ (0.1 ) Annual change in accrued RBA balance as of December 31, 2015 (and associated revenue taxes) to be collected $ (9.2 ) $ 0.1 $ (2.2 ) Net annual incremental amount to be collected under the tariffs $ (1.1 ) $ 1.5 $ (0.8 ) Impact on typical residential customer monthly bill (in dollars) * $ (0.09 ) $ 0.88 $ (0.13 ) Note: Columns may not foot due to rounding * Based on a 500 kilowatthour (KWH) bill for Hawaiian Electric, Maui Electric, and Hawaii Electric Light. The bill impact for Lanai and Molokai customers is a decrease of $0.11 , based on a 400 KWH bill. |
Schedule of consolidating statements of income | Consolidating statement of income Year ended December 31, 2014 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric 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 Impairment of utility assets — — — — — — 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, 2015 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,644,181 345,549 345,517 — (81 ) [1] $ 2,335,166 Expenses Fuel oil 458,069 71,851 124,680 — — 654,600 Purchased power 440,983 97,503 55,610 — — 594,096 Other operation and maintenance 284,583 63,098 65,408 — — 413,089 Depreciation 117,682 37,250 22,448 — — 177,380 Taxes, other than income taxes 156,871 32,312 32,702 — — 221,885 Total expenses 1,458,188 302,014 300,848 — — 2,061,050 Operating income 185,993 43,535 44,669 — (81 ) 274,116 Allowance for equity funds used during construction 5,641 604 683 — — 6,928 Equity in earnings of subsidiaries 42,920 — — — (42,920 ) [2] — Interest expense and other charges, net (45,899 ) (10,773 ) (9,779 ) — 81 [1] (66,370 ) Allowance for borrowed funds used during construction 1,967 215 275 — — 2,457 Income before income taxes 190,622 33,581 35,848 — (42,920 ) 217,131 Income taxes 53,828 12,292 13,302 — — 79,422 Net income 136,794 21,289 22,546 — (42,920 ) 137,709 Preferred stock dividends of subsidiaries — 534 381 — — 915 Net income attributable to Hawaiian Electric 136,794 20,755 22,165 — (42,920 ) 136,794 Preferred stock dividends of Hawaiian Electric 1,080 — — — — 1,080 Net income for common stock $ 135,714 20,755 22,165 — (42,920 ) $ 135,714 Consolidating statement of income Year ended December 31, 2013 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric 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 during construction 4,495 643 423 — — 5,561 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 |
Schedule of consolidating statements of comprehensive income | Consolidating statement of comprehensive income Year ended December 31, 2015 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 135,714 20,755 22,165 — (42,920 ) $ 135,714 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net gains (losses) arising during the period, net of tax benefits 5,638 (2,710 ) (1,352 ) — 4,062 [1] 5,638 Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 20,381 2,728 2,503 — (5,231 ) [1] 20,381 Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (25,139 ) 104 (1,107 ) — 1,003 [1] (25,139 ) Other comprehensive income, net of tax benefits 880 122 44 — (166 ) 880 Comprehensive income attributable to common shareholder $ 136,594 20,877 22,209 — (43,086 ) $ 136,594 Consolidating statement of comprehensive income (loss) Year ended December 31, 2014 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric 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 gains arising during the period, net of taxes (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 tax benefits 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 comprehensive income (loss) Year ended December 31, 2013 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric 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 losses arising during the period, net of tax benefits 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 taxes 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 |
Schedule of consolidating balance sheets | Consolidating balance sheet December 31, 2015 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Assets Property, plant and equipment Utility property, plant and equipment Land $ 43,557 6,219 3,016 — — $ 52,792 Plant and equipment 4,026,079 1,212,195 1,077,424 — — 6,315,698 Less accumulated depreciation (1,316,467 ) (486,028 ) (463,509 ) — — (2,266,004 ) Construction in progress 147,979 11,455 15,875 — — 175,309 Utility property, plant and equipment, net 2,901,148 743,841 632,806 — — 4,277,795 Nonutility property, plant and equipment, less accumulated depreciation 5,659 82 1,531 — — 7,272 Total property, plant and equipment, net 2,906,807 743,923 634,337 — — 4,285,067 Investment in wholly-owned subsidiaries, at equity 556,528 — — — (556,528 ) [2] 0 Current assets Cash and equivalents 16,281 2,682 5,385 101 — 24,449 Advances to affiliates — 15,500 7,500 — (23,000 ) [1] — Customer accounts receivable, net 93,515 20,508 18,755 — — 132,778 Accrued unbilled revenues, net 60,080 12,531 11,898 — — 84,509 Other accounts receivable, net 16,421 1,275 1,674 — (8,962 ) [1] 10,408 Fuel oil stock, at average cost 49,455 8,310 13,451 — — 71,216 Materials and supplies, at average cost 30,921 6,865 16,643 — — 54,429 Prepayments and other 25,505 9,091 2,295 — (251 ) [3] 36,640 Regulatory assets 63,615 4,501 4,115 — — 72,231 Total current assets 355,793 81,263 81,716 101 (32,213 ) 486,660 Other long-term assets Regulatory assets 608,957 114,562 100,981 — — 824,500 Unamortized debt expense 5,742 1,494 1,105 — — 8,341 Other 47,731 14,693 13,062 — — 75,486 Total other long-term assets 662,430 130,749 115,148 — — 908,327 Total assets $ 4,481,558 955,935 831,201 101 (588,741 ) $ 5,680,054 Capitalization and liabilities Capitalization Common stock equity $ 1,728,325 292,702 263,725 101 (556,528 ) [2] $ 1,728,325 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 880,546 215,000 191,000 — — 1,286,546 Total capitalization 2,631,164 514,702 459,725 101 (556,528 ) 3,049,164 Current liabilities Short-term borrowings-affiliate 23,000 — — — (23,000 ) [1] — Accounts payable 84,631 17,702 12,513 — — 114,846 Interest and preferred dividends payable 15,747 4,255 3,113 — (4 ) [1] 23,111 Taxes accrued 131,668 30,342 29,325 — (251 ) [3] 191,084 Regulatory liabilities — 1,030 1,174 — — 2,204 Other 41,083 8,760 13,194 — (8,958 ) [1] 54,079 Total current liabilities 296,129 62,089 59,319 — (32,213 ) 385,324 Deferred credits and other liabilities Deferred income taxes 466,133 100,681 87,706 — 286 [1] 654,806 Regulatory liabilities 254,033 84,623 30,683 — — 369,339 Unamortized tax credits 54,078 15,406 14,730 — — 84,214 Defined benefit pension and other postretirement benefit plans liability 409,021 69,893 74,060 — — 552,974 Other 51,273 13,243 13,916 — (286 ) [1] 78,146 Total deferred credits and other liabilities 1,234,538 283,846 221,095 — — 1,739,479 Contributions in aid of construction 319,727 95,298 91,062 — — 506,087 Total capitalization and liabilities $ 4,481,558 955,935 831,201 101 (588,741 ) $ 5,680,054 Consolidating balance sheet December 31, 2014 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric 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] — 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 20,231 10,137 3,575 — (475 ) [1], [3] 33,468 Regulatory assets 58,550 6,745 6,126 — — 71,421 Total current assets 439,480 79,087 88,919 101 (25,499 ) 582,088 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 $ 4,372,366 926,411 822,985 101 (564,321 ) $ 5,557,542 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 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 45,369 9,587 15,804 — (9,096 ) [1] 61,664 Total current liabilities 359,739 85,352 79,356 — (25,499 ) 498,948 Deferred credits and other liabilities Deferred income taxes 407,979 91,924 73,536 — — 573,439 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 postretirement benefit plans liability 446,888 72,547 75,960 — — 595,395 Other 52,446 10,658 13,532 — — 76,636 Total deferred credits and other liabilities 1,193,905 267,738 207,719 — (183 ) 1,669,179 Contributions in aid of construction 283,739 94,475 88,218 — — 466,432 Total capitalization and liabilities $ 4,372,366 926,411 822,985 101 (564,321 ) $ 5,557,542 |
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 adjustments Hawaiian Electric 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 tax benefits 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 taxes (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 Net income for common stock 135,714 20,755 22,165 — (42,920 ) 135,714 Other comprehensive income, net of tax benefits 880 122 44 — (166 ) 880 Common stock issuance expenses (8 ) — (1 ) — 1 (8 ) Common stock dividends (90,405 ) (10,021 ) (15,175 ) — 25,196 (90,405 ) Balance, December 31, 2015 $ 1,728,325 292,702 263,725 101 (556,528 ) $ 1,728,325 |
Schedule of consolidating statements of cash flows | Consolidating statement of cash flows Year ended December 31, 2015 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Cash flows from operating activities Net income $ 136,794 21,289 22,546 — (42,920 ) [2] $ 137,709 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings (43,020 ) — — — 42,920 [2] (100 ) Common stock dividends received from subsidiaries 25,296 — — — (25,196 ) [2] 100 Depreciation of property, plant and equipment 117,682 37,250 22,448 — — 177,380 Other amortization 4,678 2,124 2,137 — — 8,939 Impairment of utility assets 4,573 724 724 — — 6,021 Other 4,403 (2,476 ) (255 ) — — 1,672 Increase in deferred income taxes 53,338 8,295 13,707 — 286 [1] 75,626 Change in tax credits, net 4,284 527 33 — — 4,844 Allowance for equity funds used during construction (5,641 ) (604 ) (683 ) — — (6,928 ) Changes in assets and liabilities: Decrease in accounts receivable 15,652 3,420 4,617 — 38 [1] 23,727 Decrease in accrued unbilled revenues 29,733 4,593 5,767 — — 40,093 Decrease in fuel oil stock 25,060 5,490 4,280 — — 34,830 Decrease (increase) in materials and supplies 2,233 (201 ) 789 — — 2,821 Decrease (increase) in regulatory assets (20,356 ) (3,930 ) 104 — — (24,182 ) Decrease in accounts payable (42,751 ) (6,425 ) (5,379 ) — — (54,555 ) Change in prepaid and accrued income taxes and revenue taxes (50,382 ) (6,166 ) (6,548 ) — — (63,096 ) Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 870 (161 ) 416 — — 1,125 Change in other assets and liabilities (24,197 ) (3,545 ) (4,554 ) — (324 ) [1] (32,620 ) Net cash provided by operating activities 238,249 60,204 60,149 — (25,196 ) 333,406 Cash flows from investing activities Capital expenditures (267,621 ) (48,645 ) (33,895 ) — — (350,161 ) Contributions in aid of construction 35,955 2,160 2,124 — — 40,239 Advances from affiliates 16,100 (15,500 ) (7,500 ) — 6,900 [1] — Other 924 132 84 — — 1,140 Net cash used in investing activities (214,642 ) (61,853 ) (39,187 ) — 6,900 (308,782 ) Cash flows from financing activities Common stock dividends (90,405 ) (10,021 ) (15,175 ) — 25,196 [2] (90,405 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080 ) (534 ) (381 ) — — (1,995 ) Proceeds from issuance of long-term debt 50,000 25,000 5,000 — — 80,000 Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 23,000 (10,500 ) (5,600 ) — (6,900 ) [2] — Other (1,257 ) (226 ) (54 ) — — (1,537 ) Net cash (used in) provided by financing activities (19,742 ) 3,719 (16,210 ) — 18,296 (13,937 ) Net increase in cash and cash equivalents 3,865 2,070 4,752 — — 10,687 Cash and cash equivalents, January 1 12,416 612 633 101 — 13,762 Cash and cash equivalents, December 31 $ 16,281 2,682 5,385 101 — $ 24,449 Consolidating statement of cash flows Year ended December 31, 2014 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric 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 4,535 2,926 2,436 — — 9,897 Impairment of utility assets 1,866 — — — — 1,866 Other 758 — — — — 758 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 2,357 219 (2,648 ) — — (72 ) Decrease (increase) in regulatory assets (14,620 ) (3,357 ) 977 — — (17,000 ) Decrease in accounts payable (56,044 ) (6,645 ) (2,838 ) — — (65,527 ) 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 (50,180 ) (12,907 ) (3,703 ) — 103 [1] (66,687 ) Net cash provided by operating activities 218,686 53,105 61,180 — (25,976 ) 306,995 Cash flows from investing activities Capital expenditures (237,970 ) (49,895 ) (48,814 ) — — (336,679 ) Contributions in aid of construction 30,021 7,695 4,090 — — 41,806 Advances from affiliates (9,261 ) 1,000 — — 8,261 [1] — Other 604 492 68 — — 1,164 Investment in consolidated subsidiary — — — — — — Net cash used in investing activities (216,606 ) (40,708 ) (44,656 ) — 8,261 (293,709 ) 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 the issuance of common stock 40,000 — — — — 40,000 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 ) [1] — 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 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 2,549 2,360 2,825 — — 7,734 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 ) Increase (decrease) in accounts payable 18,527 1,525 (5,321 ) — — 14,731 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 (20,613 ) (6,894 ) (8,034 ) — 248 [1] (35,293 ) Net cash provided by (used in) operating activities 274,968 44,835 35,470 (3 ) (28,405 ) 326,865 Cash flows from investing activities Capital expenditures (262,562 ) (58,416 ) (57,066 ) — — (378,044 ) Contributions in aid of construction 21,686 7,590 2,884 — — 32,160 Advances from affiliates 2,561 17,050 — — (19,611 ) [1] — Other 677 21 209 — — 907 Investment in consolidated subsidiary (12,461 ) — — — 12,461 [2] — Net cash used in investing activities (250,099 ) (33,755 ) (53,973 ) — (7,150 ) (344,977 ) 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 |
Bank segment (HEI only) (Tables
Bank segment (HEI only) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bank Segment Disclosure [Abstract] | |
Schedule of statements of income data | Statements of Income Data Years ended December 31 2015 2014 2013 (in thousands) Interest and dividend income Interest and fees on loans $ 184,782 $ 179,341 $ 172,969 Interest and dividends on investment securities 15,120 11,945 13,095 Total interest and dividend income 199,902 191,286 186,064 Interest expense Interest on deposit liabilities 5,348 5,077 5,092 Interest on other borrowings 5,978 5,731 4,985 Total interest expense 11,326 10,808 10,077 Net interest income 188,576 180,478 175,987 Provision for loan losses 6,275 6,126 1,507 Net interest income after provision for loan losses 182,301 174,352 174,480 Noninterest income Fees from other financial services 22,211 21,747 27,099 Fee income on deposit liabilities 22,368 19,249 18,363 Fee income on other financial products 8,094 8,131 8,405 Bank-owned life insurance 4,078 3,949 3,928 Mortgage banking income 6,330 2,913 8,309 Gains on sale of investment securities — 2,847 1,226 Other income, net 4,750 2,375 4,753 Total noninterest income 67,831 61,211 72,083 Noninterest expense Compensation and employee benefits 90,518 79,885 82,910 Occupancy 16,365 17,197 16,747 Data processing 12,103 11,690 10,952 Services 10,204 10,269 9,015 Equipment 6,577 6,564 7,295 Office supplies, printing and postage 5,749 6,089 4,233 Marketing 3,463 3,999 3,373 FDIC insurance 3,274 3,261 3,253 Other expense 18,067 17,314 19,637 Total noninterest expense 166,320 156,268 157,415 Income before income taxes 83,812 79,295 89,148 Income taxes 29,082 27,994 31,421 Net income $ 54,730 $ 51,301 $ 57,727 |
Schedule of statements of comprehensive income data | Statements of Comprehensive Income Years ended December 31 2015 2014 2013 (in thousands) Net income $ 54,730 $ 51,301 $ 57,727 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 $1,541, ($3,856),and $9,037 for 2015, 2014 and 2013, respectively (2,334 ) 5,840 (13,686 ) Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, $1,132 and $488 for 2015, 2014 and 2013, respectively — (1,715 ) (738 ) Retirement benefit plans: Net gains (losses) arising during the period, net of (taxes) benefits of ($59), $6,164 and ($10,450) for 2015, 2014 and 2013, respectively 90 (9,336 ) 15,826 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 $1,011, $561 and $1,187 for 2015, 2014 and 2013, respectively 1,531 850 1,797 Other comprehensive income (loss), net of taxes (713 ) (4,361 ) 3,199 Comprehensive income $ 54,017 $ 46,940 $ 60,926 |
Schedule of balance sheets data | Balance Sheets Data December 31 2015 2014 (in thousands) Assets Cash and due from banks $ 127,201 $ 107,233 Interest-bearing deposits 93,680 54,230 Available-for-sale investment securities, at fair value 820,648 550,394 Stock in Federal Home Loan Bank, at cost 10,678 69,302 Loans receivable held for investment 4,615,819 4,434,651 Allowance for loan losses (50,038 ) (45,618 ) Net loans 4,565,781 4,389,033 Loans held for sale, at lower of cost or fair value 4,631 8,424 Other 309,946 305,416 Goodwill 82,190 82,190 Total assets $ 6,014,755 $ 5,566,222 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,520,374 $ 1,342,794 Deposit liabilities–interest-bearing 3,504,880 3,280,621 Other borrowings 328,582 290,656 Other 101,029 118,363 Total liabilities 5,454,865 5,032,434 Commitments and contingencies Common stock 1 1 Additional paid in capital 340,496 338,411 Retained earnings 236,664 211,934 Accumulated other comprehensive loss, net of tax benefits Net unrealized gains (losses) on securities $ (1,872 ) $ 462 Retirement benefit plans (15,399 ) (17,271 ) (17,020 ) (16,558 ) Total shareholder’s equity 559,890 533,788 Total liabilities and shareholder’s equity $ 6,014,755 $ 5,566,222 December 31 2015 2014 (in thousands) Other assets Bank-owned life insurance $ 138,139 $ 134,115 Premises and equipment, net 88,077 92,407 Prepaid expenses 3,550 3,196 Accrued interest receivable 15,192 13,632 Mortgage-servicing rights 8,884 11,540 Low-income housing equity investments 37,793 33,438 Real estate acquired in settlement of loans, net 1,030 891 Other 17,281 16,197 $ 309,946 $ 305,416 Other liabilities Accrued expenses $ 30,705 $ 37,880 Federal and state income taxes payable 13,448 28,642 Cashier’s checks 21,768 20,509 Advance payments by borrowers 10,311 9,652 Other 24,797 21,680 $ 101,029 $ 118,363 |
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 cost unrealized gains unrealized losses fair value Number of issues Fair value Amount Number of issues Fair value Amount December 31, 2015 Available-for-sale U.S. Treasury and federal agency obligations $ 213,234 $ 1,025 $ (1,300 ) $ 212,959 13 $ 83,053 $ (866 ) 3 $ 17,378 $ (434 ) Mortgage-related securities- FNMA, FHLMC and GNMA 610,522 3,564 (6,397 ) 607,689 38 305,785 (2,866 ) 25 125,817 (3,531 ) $ 823,756 $ 4,589 $ (7,697 ) $ 820,648 51 $ 388,838 $ (3,732 ) 28 $ 143,195 $ (3,965 ) December 31, 2014 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 ) |
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of available-for-sale investment securities were as follows: Amortized Fair December 31, 2015 Cost value (in thousands) Due in one year or less $ — $ — Due after one year through five years 86,379 86,935 Due after five years through ten years 71,972 71,812 Due after ten years 54,883 54,212 213,234 212,959 Mortgage-related securities-FNMA,FHLMC and GNMA 610,522 607,689 Total available-for-sale securities $ 823,756 $ 820,648 |
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 2015 2014 2013 (in millions) Proceeds $ — $ 79.6 $ 71.4 Gross gains — 2.8 1 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 2015 2014 2013 (in thousands) Taxable $ 15,120 $ 11,666 $ 11,474 Non-taxable — 279 1,621 $ 15,120 $ 11,945 $ 13,095 |
Schedule of loans receivable | The components of loans receivable were summarized as follows: December 31 2015 2014 (in thousands) Real estate: Residential 1-4 family $ 2,069,665 $ 2,044,205 Commercial real estate 690,561 531,917 Home equity line of credit 846,294 818,815 Residential land 18,229 16,240 Commercial construction 100,796 96,438 Residential construction 14,089 18,961 Total real estate 3,739,634 3,526,576 Commercial 758,659 791,757 Consumer 123,775 122,656 Total loans 4,622,068 4,440,989 Less: Deferred fees and discounts (6,249 ) (6,338 ) Allowance for loan losses (50,038 ) (45,618 ) Total loans, net $ 4,565,781 $ 4,389,033 |
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 December 31, 2015 Allowance for loan losses: Beginning balance $ 4,662 $ 8,954 $ 6,982 $ 1,875 $ 5,471 $ 28 $ 14,017 $ 3,629 $ — $ 45,618 Charge-offs (356 ) — (205 ) — — — (1,074 ) (4,791 ) — (6,426 ) Recoveries 226 — 80 507 — — 2,773 985 — 4,571 Provision (346 ) 2,388 403 (711 ) (1,010 ) (15 ) 1,492 4,074 6,275 Ending balance $ 4,186 $ 11,342 $ 7,260 $ 1,671 $ 4,461 $ 13 $ 17,208 $ 3,897 $ — $ 50,038 Ending balance: individually evaluated for impairment $ 1,453 $ — $ 442 $ 891 $ — $ — $ 3,527 $ 7 $ 6,320 Ending balance: collectively evaluated for impairment $ 2,733 $ 11,342 $ 6,818 $ 780 $ 4,461 $ 13 $ 13,681 $ 3,890 $ — $ 43,718 Financing Receivables: Ending balance $ 2,069,665 $ 690,561 $ 846,294 $ 18,229 $ 100,796 $ 14,089 $ 758,659 $ 123,775 $ 4,622,068 Ending balance: individually evaluated for impairment $ 22,457 $ 1,188 $ 3,225 $ 5,683 $ — $ — $ 21,119 $ 13 $ 53,685 Ending balance: collectively evaluated for impairment $ 2,047,208 $ 689,373 $ 843,069 $ 12,546 $ 100,796 $ 14,089 $ 737,540 $ 123,762 $ 4,568,383 December 31, 2014 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 |
Schedule of changes in allowance for loan losses | Changes in the allowance for loan losses were as follows: (dollars in thousands) 2015 2014 2013 Allowance for loan losses, January 1 $ 45,618 $ 40,116 $ 41,985 Provision for loan losses 6,275 6,126 1,507 Charge-offs, net of recoveries Real estate loans (252 ) (1,137 ) (678 ) Other loans 2,107 1,761 4,054 Net charge-offs 1,855 624 3,376 Allowance for loan losses, December 31 $ 50,038 $ 45,618 $ 40,116 Ratio of net charge-offs to average total loans 0.04 % 0.01 % 0.09 % |
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 2015 2014 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 642,410 $ 86,991 $ 703,208 1,432,609 $ 493,105 $ 79,312 $ 743,334 $ 1,315,751 Special mention 7,710 13,805 7,029 28,544 5,209 — 16,095 21,304 Substandard 40,441 — 47,975 88,416 33,603 17,126 31,665 82,394 Doubtful — — 447 447 — — 663 663 Loss — — — — — — — — Total $ 690,561 $ 100,796 $ 758,659 1,550,016 $ 531,917 $ 96,438 $ 791,757 $ 1,420,112 |
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 days past due 60-89 days past due Greater than 90 days Total past due Current Total financing receivables Recorded investment> 90 days and accruing December 31, 2015 Real estate: Residential 1-4 family $ 4,967 $ 3,289 $ 11,503 $ 19,759 $ 2,049,906 $ 2,069,665 $ — Commercial real estate — — — — 690,561 690,561 — Home equity line of credit 896 706 477 2,079 844,215 846,294 — Residential land — — 415 415 17,814 18,229 — Commercial construction — — — — 100,796 100,796 — Residential construction — — — — 14,089 14,089 — Commercial 125 223 878 1,226 757,433 758,659 — Consumer 1,383 593 644 2,620 121,155 123,775 — Total loans $ 7,371 $ 4,811 $ 13,917 $ 26,099 $ 4,595,969 $ 4,622,068 $ — December 31, 2014 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 $ — |
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 2015 2014 (in thousands) Real estate: Residential 1-4 family $ 20,554 $ 19,253 Commercial real estate 1,188 5,112 Home equity line of credit 2,254 1,087 Residential land 970 720 Commercial construction — — Residential construction — — Commercial 20,174 10,053 Consumer 895 661 Total nonaccrual loans $ 46,035 $ 36,886 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 $ 13,962 $ 13,525 Commercial real estate — — Home equity line of credit 2,467 480 Residential land 4,713 7,130 Commercial construction — — Residential construction — — Commercial 1,104 2,972 Consumer — — Total troubled debt restructured loans not included above $ 22,246 $ 24,107 |
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 2015 2014 (in thousands) Recorded investment Unpaid principal balance Related allow- ance Average recorded investment Interest income recognized* Recorded investment Unpaid principal balance Related allow- ance Average recorded investment Interest income recognized* With no related allowance recorded Real estate: Residential 1-4 family $ 10,596 $ 11,805 $ — $ 11,215 $ 332 $ 11,654 $ 12,987 $ — $ 9,056 $ 227 Commercial real estate 1,188 1,436 — 370 74 571 626 — 194 — Home equity line of credit 707 948 — 484 4 363 606 — 402 5 Residential land 1,644 2,412 — 2,397 137 2,344 3,200 — 2,728 172 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 5,671 6,333 — 5,185 157 8,235 11,471 — 5,204 38 Consumer — — — — — — — — 8 — 19,806 22,934 — 19,651 704 23,167 28,890 — 17,592 442 With an allowance recorded Real estate: Residential 1-4 family 11,861 11,914 1,453 11,578 562 11,327 11,347 951 8,822 419 Commercial real estate — — — 1,699 — 4,541 4,541 1,845 3,415 478 Home equity line of credit 2,518 2,579 442 1,597 49 416 420 46 132 6 Residential land 4,039 4,117 891 4,337 318 5,506 5,584 1,057 6,415 484 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 15,448 16,073 3,527 12,507 211 4,873 5,211 760 12,089 438 Consumer 13 13 7 14 — 16 16 6 9 — 33,879 34,696 6,320 31,732 1,140 26,679 27,119 4,665 30,882 1,825 Total Real estate: Residential 1-4 family 22,457 23,719 1,453 22,793 894 22,981 24,334 951 17,878 646 Commercial real estate 1,188 1,436 — 2,069 74 5,112 5,167 1,845 3,609 478 Home equity line of credit 3,225 3,527 442 2,081 53 779 1,026 46 534 11 Residential land 5,683 6,529 891 6,734 455 7,850 8,784 1,057 9,143 656 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 21,119 22,406 3,527 17,692 368 13,108 16,682 760 17,293 476 Consumer 13 13 7 14 — 16 16 6 17 — $ 53,685 $ 57,630 $ 6,320 $ 51,383 $ 1,844 $ 49,846 $ 56,009 $ 4,665 $ 48,474 $ 2,267 * Since loan was classified as impaired. |
Schedule of loan modifications | Loan modifications that occurred during 2015 and 2014 were as follows: Years ended December 31 2015 2014 Number Outstanding recorded investment Net increase in ALLL Number Outstanding recorded investment Net increase in ALLL (dollars in thousands) of Pre-modification Post-modification of contracts Pre-modification Post-modification Troubled debt restructurings Real estate: Residential 1-4 family 19 $ 3,594 $ 3,668 $ 87 38 $ 10,680 $ 10,737 $ 163 Commercial real estate 1 1,500 1,500 — — — — — Home equity line of credit 39 2,441 2,441 370 8 502 502 42 Residential land 1 218 218 — 18 4,304 4,304 242 Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial 8 2,267 2,267 486 7 3,827 3,827 13 Consumer — — — — — — — — 68 $ 10,020 $ 10,094 $ 943 71 $ 19,313 $ 19,370 $ 460 |
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 2015 and 2014 , and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2015 2014 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family — $ — 1 $ 390 Commercial real estate — — — — Home equity line of credit 1 6 — — Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial 1 1,056 1 14 Consumer — — — — 2 $ 1,062 2 $ 404 |
Schedule of amortized intangible assets | Changes in carrying value of mortgage servicing rights were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net December 31, 2015 $ 14,531 1 $ (5,647 ) 1 $ — $ 8,884 December 31, 2014 $ 27,185 $ (15,436 ) $ (209 ) $ 11,540 1 Reflects sale of mortgage servicing rights and impact of loans paid in full. Changes related to mortgage servicing rights were as follows: (in thousands) 2015 2014 2013 Mortgage servicing rights Balance, January 1 $ 11,749 $ 11,938 $ 11,316 Amount capitalized 3,123 1,637 2,611 Amortization (2,682 ) (1,731 ) (1,802 ) Sale of mortgage servicing rights (3,302 ) — — Other-than-temporary impairment (4 ) (95 ) (187 ) Carrying amount before valuation allowance, December 31 8,884 11,749 11,938 Valuation allowance for mortgage servicing rights Balance, January 1 209 251 498 Provision (recovery) (205 ) 53 (60 ) Other-than-temporary impairment (4 ) (95 ) (187 ) Balance, December 31 — 209 251 Net carrying value of mortgage servicing rights $ 8,884 $ 11,540 $ 11,687 |
Schedule of key assumptions used in estimating fair value | Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights used in the impairment analysis were as follows: December 31 2015 2014 (dollars in thousands) Unpaid principal balance $ 1,097,314 $ 1,391,030 Weighted average note rate 4.05 % 4.07 % Weighted average discount rate 9.6 % 9.6 % Weighted average prepayment speed 9.3 % 9.5 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobsetvable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2015 Residential loans $ 50 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Home equity lines of credit 128 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 178 Real estate acquired in settlement of loans $ 1,030 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% December 31, 2014 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 N/A (2) Commercial loans 145 Fair value of property or collateral Fair value of business assets N/A (2) Total loans $ 2,445 Real estate acquired in settlement of loans $ 288 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% Mortgage servicing rights $ 1,240 Discounted cash flow Prepayment speed 6.7-22.4% 12.2% Discount rate 9.6% 9.6% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. |
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 2015 2014 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (561 ) $ (757 ) 50 basis points adverse rate change (1,104 ) (1,524 ) Discount rate: 25 basis points adverse rate change (111 ) (140 ) 50 basis points adverse rate change (220 ) (278 ) |
Schedule of deposit liabilities | The summarized components of deposit liabilities were as follows: December 31 2015 2014 (dollars in thousands) Weighted-average stated rate Amount Weighted-average stated rate Amount Savings 0.07 % $ 2,030,644 0.06 % $ 1,923,062 Checking Interest-bearing 0.02 831,143 0.02 768,787 Noninterest-bearing — 746,875 — 665,005 Commercial checking — 773,499 — 677,789 Money market 0.13 167,641 0.12 158,010 Term certificates 0.93 475,452 0.83 430,762 0.12 % $ 5,025,254 0.11 % $ 4,623,415 |
Schedule of maturities of term certificates | The approximate scheduled maturities of term certificates outstanding at December 31, 2015 were as follows: (in thousands) 2016 $ 197,095 2017 72,817 2018 63,876 2019 53,525 2020 84,749 Thereafter 3,390 $ 475,452 |
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 2015 2014 2013 (in thousands) Term certificates $ 3,747 $ 3,603 $ 3,702 Savings 1,257 1,134 1,052 Money market 205 214 232 Interest-bearing checking 139 126 106 $ 5,348 $ 5,077 $ 5,092 |
Schedule of securities sold under agreements to repurchase | Securities sold under agreements to repurchase were summarized as follows: December 31 2015 2014 Maturity Repurchase liability Weighted-average interest rate Collateralized by mortgage-related securities and federal agency obligations at fair value plus accrued interest Repurchase liability Weighted-average Collateralized by (dollars in thousands) Overnight $ 122,684 0.15 % $ 144,146 $ 84,758 0.15 % $ 114,883 1 to 29 days — — — — — — 30 to 90 days 18,535 0.29 20,364 — — — Over 90 days 87,363 1 2.96 96,553 105,898 1 2.50 115,842 $ 228,582 1.24 % $ 261,063 $ 190,656 1.45 % $ 230,725 1 $50.3 million callable by the counterparties quarterly at par until maturity in 2016. 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 recognized liabilities Gross amount offset in the Balance Sheet Net amount of liabilities presented in the Balance Sheet Repurchase agreements December 31, 2015 $ 229 $ — $ 229 December 31, 2014 191 — 191 Gross amount not offset in the Balance Sheet (in millions) Net amount of liabilities presented in the Balance Sheet Financial instruments Cash collateral pledged December 31, 2015 Financial institution $ 50 $ 56 $ — Government entities 56 61 — Commercial account holders 123 144 — Total $ 229 $ 261 $ — December 31, 2014 Financial institution $ 50 $ 57 $ — Government entities 56 59 — Commercial account holders 85 115 — Total $ 191 $ 231 $ — |
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) 2015 2014 2013 Amount outstanding as of December 31 $ 229 $ 191 $ 145 Average amount outstanding during the year $ 219 $ 155 $ 147 Maximum amount outstanding as of any month-end $ 277 $ 195 $ 151 Weighted-average interest rate as of December 31 1.24 % 1.45 % 1.75 % Weighted-average interest rate during the year 1.29 % 1.67 % 1.74 % Weighted-average remaining days to maturity as of December 31 117 343 367 |
Schedule of advances from Federal Home Loan Bank | FHLB advances are fixed rate for a specific term and consist of the following: December 31, 2015 Weighted-average stated rate Amount (dollars in thousands) Due in 2016 — % $ — 2017 4.28 50,000 1 2018 1.95 50,000 2019 — — 2020 — — 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: December 31 2015 2014 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 22,241 $ 384 $ 29,330 $ 390 Forward commitments 23,644 (29 ) 32,833 (106 ) |
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 December 31 2015 2014 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability derivatives Interest rate lock commitments $ 384 $ — $ 393 $ 3 Forward commitments 1 30 5 111 $ 385 $ 30 $ 398 $ 114 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 2015 2014 2013 Interest rate lock commitments Mortgage banking income $ (6 ) $ (74 ) $ 464 Forward commitments Mortgage banking income 77 (245 ) 139 $ 71 $ (319 ) $ 603 |
Schedule of off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: December 31 2015 2014 (in thousands) Unfunded commitments to extend credit: Home equity line of credit $ 1,096,532 $ 1,089,633 Commercial and commercial real estate 631,780 526,133 Consumer 60,198 56,312 Residential 1-4 family 24,863 20,524 Commercial and financial standby letters of credit 18,709 20,082 Total $ 1,832,082 $ 1,712,684 |
Unconsolidated variable inter44
Unconsolidated variable interest entities Tables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 (in millions) AES Hawaii $ 134 $ 145 $ 134 Kalaeloa 187 279 301 HEP 44 51 51 Hpower 66 66 61 Puna Geothermal Venture 29 45 49 Hawaiian Commercial & Sugar (HC&S) 8 15 13 Other IPPs 126 121 102 Total IPPs $ 594 $ 722 $ 711 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of long-term debt | December 31 2015 2014 (dollars in thousands) Long-term debt of Utilities 1 $ 1,286,546 $ 1,206,546 HEI term loan LIBOR + .75%, due 2017 125,000 125,000 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 $ 1,586,546 $ 1,506,546 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, 2015 | |
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, 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 Current period other comprehensive income (loss) (2,334 ) 235 3,215 1,116 880 Balance, December 31, 2015 $ (1,872 ) $ (54 ) $ (24,336 ) $ (26,262 ) $ 925 |
Reclassification Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Years ended December 31 2015 2014 2013 Affected line item in the Statement of Income (in thousands) HEI consolidated Net realized gains on securities $ — $ (1,715 ) $ (738 ) Revenues-bank (net gains on sales of securities) Derivatives qualified as cash flow hedges Interest rate contracts (settled in 2011) 235 236 235 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 22,465 11,344 23,280 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets (25,139 ) 207,833 (222,595 ) See Note 10 for additional details Total reclassifications $ (2,439 ) $ 217,698 $ (199,818 ) 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 $ 20,381 $ 10,212 $ 20,694 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets (25,139 ) 207,833 (222,595 ) See Note 10 for additional details Total reclassifications $ (4,758 ) $ 218,045 $ (201,901 ) |
Retirement benefits (Tables)
Retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014 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, 2015 and 2014 were as follows: 2015 2014 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,847,228 $ 219,209 $ 1,446,291 $ 176,099 Service cost 66,260 3,927 49,264 3,490 Interest cost 76,960 9,011 72,202 8,550 Actuarial losses (gains) (124,239 ) (2,911 ) 342,446 39,098 Benefits paid and expenses (68,179 ) (7,696 ) (62,975 ) (8,028 ) Benefit obligation, December 31 1,798,030 221,540 1,847,228 219,209 Fair value of plan assets, January 1 1,266,060 180,332 1,186,669 179,330 Actual (loss) return on plan assets (14,422 ) (2,866 ) 81,123 9,149 Employer contributions 86,802 917 60,103 (257 ) Benefits paid and expenses (66,966 ) (7,696 ) (61,835 ) (7,890 ) Fair value of plan assets, December 31 1,271,474 170,687 1,266,060 180,332 Accrued benefit asset (liability), December 31 $ (526,556 ) $ (50,853 ) $ (581,168 ) $ (38,877 ) Other assets $ 12,509 $ — $ 12,800 $ — Defined benefit pension and other postretirement benefit plans liability (539,065 ) (50,853 ) (593,968 ) (38,877 ) Accrued benefit asset (liability), December 31 $ (526,556 ) $ (50,853 ) $ (581,168 ) $ (38,877 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 639,831 $ 20,933 $ 317,544 $ (21,722 ) Recognized during year – prior service credit (cost) (4 ) 1,793 (88 ) 1,793 Recognized during year – net actuarial (losses) gains (36,800 ) (1,796 ) (20,304 ) 11 Occurring during year – net actuarial losses (gains) (21,264 ) 11,620 342,679 40,851 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 581,763 32,550 639,831 20,933 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 $ 42,979 $ (2,783 ) $ 47,540 $ (2,042 ) Net actuarial loss (gain) $ 581,951 $ 44,845 $ 640,015 $ 35,022 Prior service gain (188 ) (12,295 ) (184 ) (14,089 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 581,763 32,550 639,831 20,933 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 42,979 (2,783 ) 47,540 (2,042 ) Income taxes (benefits) (16,944 ) 1,084 (18,742 ) 795 AOCI debit/(credit), net of taxes (benefits), December 31 $ 26,035 $ (1,699 ) $ 28,798 $ (1,247 ) 2015 2014 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,690,777 $ 211,760 $ 1,320,810 $ 169,579 Service cost 64,262 3,870 47,597 3,392 Interest cost 70,529 8,700 65,979 8,234 Actuarial losses (gains) (114,286 ) (2,860 ) 314,210 38,488 Benefits paid and expenses (63,037 ) (7,598 ) (57,819 ) (7,933 ) Transfers 1,445 118 — — Benefit obligation, December 31 1,649,690 213,990 1,690,777 211,760 Fair value of plan assets, January 1 1,129,005 177,256 1,058,260 176,291 Actual (loss) return on plan assets (10,646 ) (2,712 ) 69,242 9,036 Employer contributions 85,139 864 58,948 (274 ) Benefits paid and expenses (62,584 ) (7,598 ) (57,445 ) (7,797 ) Other 919 120 — — Fair value of plan assets, December 31 1,141,833 167,930 1,129,005 177,256 Accrued benefit asset (liability), December 31 $ (507,857 ) $ (46,060 ) $ (561,772 ) $ (34,504 ) Other liabilities (short-term) (425 ) (518 ) (421 ) (460 ) Defined benefit pension and other postretirement benefit plans liability (507,432 ) (45,542 ) (561,351 ) (34,044 ) Accrued benefit asset (liability), December 31 $ (507,857 ) $ (46,060 ) $ (561,772 ) $ (34,504 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 595,103 $ 20,090 $ 295,973 $ (21,907 ) Recognized during year – prior service credit (cost) (40 ) 1,804 (62 ) 1,804 Recognized during year – net actuarial losses (33,371 ) (1,754 ) (18,459 ) — Occurring during year – net actuarial losses (gains) (20,574 ) 11,345 317,651 40,193 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 541,118 31,485 595,103 20,090 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 $ 2,334 $ (3,848 ) $ 2,812 $ (2,885 ) Net actuarial loss (gain) $ 541,071 $ 43,784 $ 595,017 $ 34,192 Prior service cost (gain) 47 (12,299 ) 86 (14,102 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 541,118 31,485 595,103 20,090 Cumulative impact of PUC D&Os (538,784 ) (35,333 ) (592,291 ) (22,975 ) AOCI debit/(credit), December 31 2,334 (3,848 ) 2,812 (2,885 ) Income taxes (benefits) (908 ) 1,497 (1,094 ) 1,122 AOCI debit/(credit), net of taxes (benefits), December 31 $ 1,426 $ (2,351 ) $ 1,718 $ (1,763 ) |
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 benefits 1 Other benefits 2 Investment policy Investment policy December 31 2015 2014 Target Range 2015 2014 Target Range Assets held by category Equity securities managers 70 % 73 % 70 % 65-75 70 % 72 % 70 % 65-75 Fixed income securities managers 30 27 30 25-35 30 28 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation for 2015 and 2014 is applicable to only 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, 2015 and 2014, nearly all of its pension assets were invested in fixed income securities. 2 Asset allocation for 2015 and 2014 is applicable to only HEI and the Utilities. ASB does not fund its other benefits. |
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 2015 2014 2013 2015 2014 2013 Benefit obligation Discount rate 4.60 % 4.22 % 5.09 % 4.57 % 4.17 % 5.03 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.22 5.09 4.13 4.17 5.03 4.07 Expected return on plan assets 1 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 1 For 2015, HEI's and utilities' plan assets only. For 2015, ASB's expected return on plan assets was 4.22% . |
Schedule of components of net periodic benefit cost for consolidated HEI | The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2015 2014 2013 2015 2014 2013 HEI consolidated Service cost $ 66,260 $ 49,264 $ 56,405 $ 3,927 $ 3,490 $ 4,306 Interest cost 76,960 72,202 64,788 9,011 8,550 7,569 Expected return on plan assets (88,554 ) (81,355 ) (72,537 ) (11,664 ) (10,902 ) (10,147 ) Amortization of net prior service (gain) cost 4 88 (97 ) (1,793 ) (1,793 ) (1,793 ) Amortization of net actuarial losses (gains) 36,800 20,304 38,438 1,796 (11 ) 1,602 Net periodic pension/benefit cost 91,470 60,503 86,997 1,277 (666 ) 1,537 Impact of PUC D&Os (40,011 ) (13,324 ) (38,104 ) (240 ) 1,976 (1,458 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) 51,459 47,179 48,893 1,037 1,310 79 Hawaiian Electric consolidated Service cost $ 64,262 $ 47,597 $ 54,482 $ 3,870 $ 3,392 $ 4,163 Interest cost 70,529 65,979 59,119 8,700 8,234 7,288 Expected return on plan assets (82,541 ) (72,661 ) (64,551 ) (11,495 ) (10,739 ) (10,002 ) Amortization of net prior service (gain) cost 40 62 (464 ) (1,804 ) (1,804 ) (1,803 ) Amortization of net actuarial losses 33,371 18,459 34,597 1,754 — 1,544 Net periodic pension/benefit cost 85,661 59,436 83,183 1,025 (917 ) 1,190 Impact of PUC D&Os (40,011 ) (13,324 ) (38,104 ) (240 ) 1,976 (1,458 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 45,650 $ 46,112 $ 45,079 $ 785 $ 1,059 $ (268 ) |
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 NPPC and NPBC during 2016 is as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Pension benefits Other benefits Pension benefits Other benefits Estimated prior service cost (credit) $ (0.1 ) $ (1.8 ) $ — $ (1.8 ) Net actuarial loss 23.9 1.1 21.8 1.1 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expense and related income tax benefit | Share-based compensation expense and the related income tax benefit were as follows: (in millions) 2015 2014 2013 HEI consolidated Share-based compensation expense 1 $ 6.5 $ 9.3 $ 7.8 Income tax benefit 2.3 3.4 2.8 Hawaiian Electric consolidated Share-based compensation expense 1 1.9 3.1 2.3 Income tax benefit 0.7 1.2 0.9 1 $0.15 million , $0.16 million and $0.11 million of this share-based compensation expense was capitalized in 2015 , 2014 and 2013 , 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) 2015 2014 2013 Shares granted 28,246 33,170 33,184 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 Shares (1) Outstanding, January 1 14,000 $ 20.49 Exercised (14,000 ) 20.49 Outstanding, December 31 — $ — (1) Weighted-average exercise price |
Schedule of nonqualified stock options activity and statistics | NQSO activity and statistics were as follows: (in thousands) 2013 Cash received from exercise $ 287 Intrinsic value of shares exercised 1 128 Tax benefit realized for the deduction of exercises 50 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: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 80,000 $ 26.18 164,000 $ 26.12 164,000 $ 26.12 Granted — — — — — — Exercised (80,000 ) 26.18 (22,000 ) 26.18 — — Forfeited — — (62,000 ) 26.02 — — Expired — — — — — — Outstanding, December 31 — $ — 80,000 $ 26.18 164,000 $ 26.12 Exercisable, December 31 — $ — 80,000 $ 26.18 164,000 $ 26.12 (1) Weighted-average exercise price |
Schedule of stock appreciation rights activity and statistics | SARs activity and statistics were as follows: (in thousands) 2015 2014 2013 Intrinsic value of shares exercised 1 $ 502 $ 29 $ — Tax benefit realized for the deduction of exercises 82 11 — 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 Shares (1) Shares (1) Outstanding, January 1 4,503 $ 22.21 9,005 $ 22.21 Granted — — — — Vested (4,503 ) 22.21 (4,502 ) 22.21 Forfeited — — — — Outstanding, December 31 — $ — 4,503 $ 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: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 261,235 $ 25.77 288,151 $ 25.17 315,094 $ 22.82 Granted 85,772 33.69 117,786 25.17 111,231 26.88 Vested (102,173 ) 25.67 (144,702 ) 24.09 (118,885 ) 20.48 Forfeited (34,200 ) 27.09 — — (19,289 ) 25.62 Outstanding, December 31 210,634 $ 28.82 261,235 $ 25.77 288,151 $ 25.17 Total weighted-average grant-date fair value of shares granted ($ millions) $ 2.9 $ 3.0 $ 3.0 (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: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 257,956 $ 28.45 232,127 $ 32.88 239,256 $ 29.12 Granted — — 97,524 22.95 91,038 32.69 Vested (settled or lapsed) (75,915 ) 30.71 (70,189 ) 35.46 (87,753 ) 22.45 Forfeited (19,541 ) 26.25 (1,506 ) 28.32 (10,414 ) 32.72 Outstanding, December 31 162,500 $ 27.66 257,956 $ 28.45 232,127 $ 32.88 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ 2.2 $ 3.0 (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 Risk-free interest rate 0.66 % 0.38 % Expected life in years 3 3 Expected volatility 17.8 % 19.4 % Range of expected volatility for Peer Group 12.4% to 23.3% 12.4% to 25.3% Grant date fair value (per share) $ 22.95 $ 32.69 |
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: 2015 2014 2013 Shares (1) Shares (1) Shares (1) Outstanding, January 1 364,731 $ 26.01 296,843 $ 26.14 247,175 $ 25.04 Granted — — 129,603 25.18 120,399 26.89 Vested and settled (121,249 ) 26.05 (65,089 ) 24.95 (18,280 ) 18.95 Increase above target (cancelled) 3,412 26.89 4,949 26.70 (41,599 ) 24.97 Forfeited (24,247 ) 25.82 (1,575 ) 26.07 (10,852 ) 26.20 Outstanding, December 31 222,647 $ 26.02 364,731 $ 26.01 296,843 $ 26.14 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ — $ 3.3 $ 3.2 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 2015 2014 2013 (in thousands) Federal Current (1) $ 44,343 $ (8,959 ) $ (295 ) $ — $ 1,108 $ 1,313 Deferred (1) 36,664 91,412 73,473 68,757 68,775 58,024 Deferred tax credits, net 318 — 224 318 — 224 81,325 82,453 73,402 69,075 69,883 59,561 State Current (1) 2,402 (5,793 ) (630 ) (1,048 ) (9,436 ) (3,720 ) Deferred (1) 4,768 12,813 6,672 6,869 14,172 6,483 Deferred tax credits, net 4,526 6,106 6,793 4,526 6,106 6,793 11,696 13,126 12,835 10,347 10,842 9,556 Total $ 93,021 $ 95,579 $ 86,237 $ 79,422 $ 80,725 $ 69,117 (1) HEI Consolidated amounts for 2014 and 2013 have been updated to reflect the first quarter 2015 adoption of ASU No. 2014-01. See Note 1 for a discussion of the adoption of ASU No. 2014-01 |
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 2015 2014 2013 2015 2014 2013 (in thousands) Amount at the federal statutory income tax rate (1) $ 89,176 $ 92,959 $ 87,442 $ 75,996 $ 77,126 $ 67,914 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit (1) 8,097 9,073 8,667 6,726 7,047 6,211 Other, net (1) (4,252 ) (6,453 ) (9,872 ) (3,300 ) (3,448 ) (5,008 ) Total $ 93,021 $ 95,579 $ 86,237 $ 79,422 $ 80,725 $ 69,117 Effective income tax rate 36.5 % 36.0 % 34.5 % 36.6 % 36.6 % 35.6 % (1) HEI Consolidated amounts for 2014 and 2013 have been updated to reflect the first quarter 2015 adoption of ASU No. 2014-01. See Note 1 for a discussion of the adoption of ASU No. 2014-01. |
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 2015 2014 2015 2014 (in thousands) Deferred tax assets Net operating loss $ — $ — $ 37,283 $ 51,936 Other (1) 64,870 56,526 20,238 17,663 Total deferred tax assets 64,870 56,526 57,521 69,599 Deferred tax liabilities Property, plant and equipment related 492,441 448,723 489,884 446,259 Repairs deduction 104,081 86,408 104,081 86,408 Regulatory assets, excluding amounts attributable to property, plant and equipment 34,261 33,795 34,261 33,795 Deferred RAM and RBA revenues 26,400 32,889 26,400 32,889 Retirement benefits 42,006 25,336 44,991 28,758 Other (1) 46,558 62,945 12,710 14,929 Total deferred tax liabilities 745,747 690,096 712,327 643,038 Net deferred income tax liability $ 680,877 $ 633,570 $ 654,806 $ 573,439 (1) HEI consolidated and Hawaiian Electric consolidated amounts as of December 31, 2014 have been updated to reflect the Company's adoption of ASU No. 2014-01 and the Utilities' adoption of ASU No. 2015-17, respectively. See Note 1 for a discussion of the Company's adoption of ASU No. 2014-01 and the Utilities’ adoption of ASU No. 2015-17. |
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) 2015 2014 2013 2015 2014 2013 Unrecognized tax benefits, January 1 $ — $ 0.9 $ 0.8 $ — $ 0.5 0.4 Additions based on tax positions taken during the year — — — — — — Reductions based on tax positions taken during the year — — — — — — Additions for tax positions of prior years 3.6 0.1 0.5 3.6 0.1 0.5 Reductions for tax positions of prior years — — (0.4 ) — — (0.4 ) Settlements (1.0 ) — — (0.6 ) — Lapses of statute of limitations — — — — — — Unrecognized tax benefits, December 31 $ 3.6 $ — $ 0.9 $ 3.6 $ — $ 0.5 |
Cash flows (Tables)
Cash flows (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Years ended December 31 2015 2014 2013 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 83 $ 84 $ 85 Income taxes paid 75 47 18 Income taxes refunded 55 24 4 Hawaiian Electric consolidated Interest paid to non-affiliates 61 61 59 Income taxes paid 13 6 6 Income taxes refunded 12 8 32 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment-unpaid invoices and accruals (investing) 5 43 (12 ) Common stock dividends reinvested in HEI common stock (financing) 1 — — 24 Loans transferred from held for investment to held for sale (investing to operating) — — 25 Real estate acquired in settlement of loans (investing) 1 3 4 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 5 — — Obligations to fund low income housing investments, net (operating) 4 14 1 Hawaiian Electric consolidated Electric utility property, plant and equipment AFUDC-equity (operating) 7 7 6 Estimated fair value of noncash contributions in aid of construction (investing) 3 3 5 Unpaid invoices and accruals (investing) 5 40 (12 ) Refinancing of long-term debt (financing) 47 — — 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, 2015 | |
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, the carrying amount is a reasonable estimate of fair value because it can only be redeemed at par. For bank-owned life insurance, the carrying amount is the cash surrender value of the insurance policies, which 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 notional amount Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs Total December 31, 2015 Financial assets Money market funds $ 10 $ — $ 10 $ — $ 10 Available-for-sale investment securities 820,648 — 820,648 — 820,648 Stock in Federal Home Loan Bank 10,678 — 10,678 — 10,678 Loans receivable, net 4,570,412 — 4,639 4,744,886 4,749,525 Mortgage servicing rights 8,444 — — 11,790 11,790 Bank-owned life insurance 138,139 — 138,139 — 138,139 Derivative assets 22,616 — 385 — 385 Financial liabilities Deposit liabilities 5,025,254 — 5,024,500 — 5,024,500 Short-term borrowings—other than bank 103,063 — 103,063 — 103,063 Other bank borrowings 328,582 — 333,392 — 333,392 Long-term debt, net—other than bank 1,586,546 — 1,669,087 — 1,669,087 The Utilities' long-term debt, net (included in amount above) 1,286,546 — 1,363,766 — 1,363,766 Derivative liabilities 23,269 15 15 — 30 December 31, 2014 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 69,302 — 69,302 — 69,302 Loans receivable, net 4,397,457 — 8,713 4,570,109 4,578,822 Mortgage servicing rights 11,540 — — 14,504 14,504 Bank-owned life insurance 134,115 — 134,115 — 134,115 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 |
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: December 31 2015 2014 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 $ — $ 607,689 $ — $ — $ 430,834 $ — U.S. Treasury and federal agency obligations — 212,959 — — 119,560 — $ — $ 820,648 $ — $ — $ 550,394 $ — Derivative assets 1 Interest rate lock commitments $ — $ 384 $ — $ — $ 393 $ — Forward commitments — 1 — — 5 — $ — $ 385 $ — $ — $ 398 $ — Derivative liabilities 1 Interest rate lock commitments $ — $ — $ — $ — $ 3 $ — Forward commitments 15 15 — 71 40 — $ 15 $ 15 $ — $ 71 $ 43 $ — 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 | The carrying value of assets measured at fair value on a nonrecurring basis were as follows: Fair value measurements using (in thousands) Balance Level 1 Level 2 Level 3 December 31, 2015 Loans $ 178 $ — $ — $ 178 Real estate acquired in settlement of loans 1,030 — — 1,030 December 31, 2014 Loans 2,445 — — 2,445 Real estate acquired in settlement of loans 288 — — 288 Mortgage servicing rights 1,240 — — 1,240 |
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 used in the impairment analysis were as follows: December 31 2015 2014 (dollars in thousands) Unpaid principal balance $ 1,097,314 $ 1,391,030 Weighted average note rate 4.05 % 4.07 % Weighted average discount rate 9.6 % 9.6 % Weighted average prepayment speed 9.3 % 9.5 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobsetvable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2015 Residential loans $ 50 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Home equity lines of credit 128 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 178 Real estate acquired in settlement of loans $ 1,030 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% December 31, 2014 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 N/A (2) Commercial loans 145 Fair value of property or collateral Fair value of business assets N/A (2) Total loans $ 2,445 Real estate acquired in settlement of loans $ 288 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% Mortgage servicing rights $ 1,240 Discounted cash flow Prepayment speed 6.7-22.4% 12.2% Discount rate 9.6% 9.6% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. |
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 2015 Equity securities $ 640 $ 640 $ — $ — $ 92 $ 92 $ — $ — Equity index funds 119 119 — — 17 17 — — Fixed income securities and public mutual funds 425 85 340 — 48 41 7 — Pooled and mutual funds and other 84 3 81 — 14 4 10 — Total $ 1,268 $ 847 $ 421 $ — $ 171 $ 154 $ 17 $ — Cash, receivables and payables, net 3 — Fair value of plan assets $ 1,271 $ 171 2014 Equity securities $ 649 $ 649 $ — $ — $ 99 $ 99 $ — $ — Equity index funds 132 132 — — 19 19 — — Fixed income securities and public mutual funds 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 |
Other related-party transacti52
Other related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Company’s HMSA costs and expense (for health insurance premiums, claims plus administration expense and stop-loss insurance coverages) and HDS costs and expense (for dental insurance premiums) and the Utilities’ HMSA costs and expense (for health insurance premiums) and HDS costs and expense (for dental insurance premiums) were as follows: HEI consolidated Hawaiian Electric consolidated (in millions) 2015 2014 2013 2015 2014 2013 HMSA costs $ 30 $ 25 $ 23 $ 23 $ 20 $ 18 HMSA expense* 21 18 17 14 13 12 HDS costs 3 3 3 2 2 2 HDS expense* 2 2 2 1 1 1 * Charged the remaining costs primarily to electric utility plant. |
Quarterly information (unaudi53
Quarterly information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 Revenues $ 637,862 $ 623,912 $ 717,176 $ 624,032 $ 2,602,982 Operating income 69,506 72,730 97,095 83,222 322,553 Net income 32,339 35,491 51,144 42,793 161,767 Net income for common stock 31,866 35,018 50,673 42,320 159,877 Basic earnings per common share 1 0.31 0.33 0.47 0.39 1.50 Diluted earnings per common share 2 0.31 0.33 0.47 0.39 1.50 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Market price per common share 3 High 34.86 32.58 31.28 30.29 34.86 Low 31.75 29.62 27.02 27.45 27.02 2014 Revenues $ 783,749 $ 798,657 $ 867,096 $ 790,040 $ 3,239,542 Operating income 89,214 83,183 92,036 68,167 332,600 Net income 46,260 41,754 48,279 33,726 170,019 Net income for common stock 45,787 41,281 47,808 33,253 168,129 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 1.63 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Market price per common share 3 High 26.80 25.65 26.89 35.00 35.00 Low 24.39 23.04 22.71 26.04 22.71 Hawaiian Electric consolidated 2015 Revenues $ 573,442 $ 558,163 $ 648,127 $ 555,434 $ 2,335,166 Operating income 57,636 66,161 82,657 67,662 274,116 Net income 27,373 33,340 43,504 33,492 137,709 Net income for common stock 26,874 32,841 43,006 32,993 135,714 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 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 accoun54
Summary of significant accounting policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity method | |||
Composite annual depreciation rate (as a percent) | 3.20% | 3.10% | 3.10% |
Leases | |||
Operating lease expense | $ 18 | $ 19 | $ 19 |
Future minimum lease payments | |||
2,016 | 11 | ||
2,017 | 10 | ||
2,018 | 7 | ||
2,019 | 6 | ||
2,020 | 4 | ||
Thereafter | 10 | ||
Total | $ 48 | ||
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 | |||
Leases | |||
Operating lease expense | $ 9 | $ 9 | $ 8 |
Future minimum lease payments | |||
2,016 | 5 | ||
2,017 | 4 | ||
2,018 | 3 | ||
2,019 | 2 | ||
2,020 | 2 | ||
Thereafter | 6 | ||
Total | $ 22 |
Summary of significant accoun55
Summary of significant accounting policies (Details 2) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation | |||
Composite annual depreciation rate (as a percent) | 3.20% | 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 accoun56
Summary of significant accounting policies (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic | |||||||||||
Distributed earnings (in dollars per share) | $ 1.24 | $ 1.24 | |||||||||
Undistributed earnings (loss) (in dollars per share) | 0.41 | 0.39 | |||||||||
Earnings Per Share, basic (in dollars per share) | $ 0.39 | $ 0.47 | $ 0.33 | $ 0.31 | $ 0.32 | $ 0.47 | $ 0.41 | $ 0.45 | $ 1.50 | 1.65 | 1.63 |
Diluted | |||||||||||
Distributed earnings (in dollars per share) | 1.24 | 1.24 | |||||||||
Undistributed earnings (losses) (in dollars per share) | 0.39 | 0.38 | |||||||||
Earnings Per Share, diluted (in dollars per share) | $ 0.39 | $ 0.47 | $ 0.33 | $ 0.31 | $ 0.32 | $ 0.46 | $ 0.41 | $ 0.45 | $ 1.50 | $ 1.63 | $ 1.62 |
Summary of significant accounting policies | |||||||||||
Amount reclassified form other assets to plant and equipment | $ 6,716,977 | $ 6,399,724 | $ 6,716,977 | $ 6,399,724 | |||||||
Other assets | 488,635 | 542,523 | 488,635 | 542,523 | |||||||
Accounts Receivable | |||||||||||
Allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable | 1,700 | 2,000 | 1,700 | 2,000 | |||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190 | 82,190 | $ 82,190 | $ 82,190 | |||||||
Fair value excess over carrying value (percent) | 60.00% | ||||||||||
Antidilutive effect of stock appreciation rights (SARs) | |||||||||||
Antidilutive effects of SARs shares that were not included in the computation of diluted EPS (in shares) | 0 | 0 | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Electric utility revenues | |||||||||||
Revenue taxes included in revenues and in taxes, other than income taxes expense | $ 209,000 | $ 267,000 | $ 266,000 | ||||||||
Weighted average AFUDC rate (as a percent) | 7.60% | 7.70% | 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 | 82,200 | 82,200 | $ 82,200 | $ 82,200 | |||||||
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) | 102,000 | ||||||||||
Bank | |||||||||||
Summary of significant accounting policies | |||||||||||
Other assets | 309,946 | 305,416 | 309,946 | 305,416 | |||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190 | 82,190 | 82,190 | 82,190 | |||||||
Antidilutive effect of stock appreciation rights (SARs) | |||||||||||
Affordable housing investment, carrying value | 37,793 | 33,438 | 37,793 | 33,438 | |||||||
Commitments to fund affordable housing investments | $ 10,100 | $ 14,800 | $ 10,100 | $ 14,800 | |||||||
Bank | Loans receivable | |||||||||||
Nonperforming loans | |||||||||||
Loans and Leases Receivable, Nonperforming, Period For Classification As Delinquent | 90 days | ||||||||||
Bank | Mortgage receivable | |||||||||||
Nonperforming loans | |||||||||||
Loans and Leases Receivable, Nonperforming, Period For Classification As Delinquent | 180 days | ||||||||||
Bank | Consumer loans | |||||||||||
Nonperforming loans | |||||||||||
Loans and Leases Receivable, Nonperforming, Period For Write Off | 120 days | ||||||||||
Bank | Minimum | |||||||||||
Antidilutive effect of stock appreciation rights (SARs) | |||||||||||
Servicing Assets and servicing liabilities, basis spread | 0.50% | ||||||||||
Bank | Maximum | |||||||||||
Antidilutive effect of stock appreciation rights (SARs) | |||||||||||
Servicing Assets and servicing liabilities, basis spread | 1.00% |
Summary of significant accoun57
Summary of significant accounting policies (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2013 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other amortization | $ 11,619 | $ 10,282 | $ 7,324 | |
Increase in deferred income taxes | 41,433 | 104,226 | 80,145 | |
Share-based compensation expense | 6,542 | 9,287 | 7,780 | |
Increase (decrease) in accounts, interest and dividends payable | (52,663) | (67,189) | 12,406 | |
Change in prepaid and accrued income taxes and utility revenue taxes | (42,596) | (39,091) | (19,406) | |
Change in other assets and liabilities | (41,071) | (101,196) | (14,292) | |
Net cash provided by operating activities | 355,880 | 325,420 | 361,568 | |
Capital expenditures | (363,804) | (364,826) | (389,438) | |
Cash flows from investing activities-Other | 7,940 | 1,125 | 1,177 | |
Net cash used in investing activities | (705,724) | (592,449) | (598,182) | |
Federal current taxes | 44,343 | (8,959) | (295) | |
Federal deferred taxes | 36,664 | 91,412 | 73,473 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other amortization | 8,939 | 9,897 | 7,734 | |
Increase (decrease) in accounts payable | (54,555) | (65,527) | 14,731 | |
Increase in deferred income taxes | 75,626 | 82,947 | 64,507 | |
Change in prepaid and accrued income taxes and utility revenue taxes | (63,096) | (4,036) | (2,028) | |
Change in other assets and liabilities | (32,620) | (66,687) | (35,293) | |
Net cash provided by operating activities | 333,406 | 306,995 | 326,865 | |
Capital expenditures | (350,161) | (336,679) | (378,044) | |
Cash flows from investing activities-Other | 1,140 | 1,164 | 907 | |
Net cash used in investing activities | (308,782) | (293,709) | (344,977) | |
Federal current taxes | 0 | 1,108 | 1,313 | |
Federal deferred taxes | $ 68,757 | 68,775 | 58,024 | |
As previously filed | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in deferred income taxes | 103,916 | 80,399 | ||
Change in other assets and liabilities | (94,966) | (11,696) | ||
Difference | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in deferred income taxes | 310 | (254) | ||
Change in other assets and liabilities | $ (119) | $ 61 | ||
Accounting Standards Update 2014-01 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect on retained earnings of adoption of guidance | $ 900 |
Summary of significant accoun58
Summary of significant accounting policies (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | $ 2,280,429 | $ 2,906,942 | $ 2,920,962 | |||||||||
Operating income | $ 83,222 | $ 97,095 | $ 72,730 | $ 69,506 | $ 68,167 | $ 92,036 | $ 83,183 | $ 89,214 | 322,553 | 332,600 | 317,508 | |
Income taxes (benefit) | 93,021 | 95,579 | 86,237 | |||||||||
Net income for common stock | 42,320 | 50,673 | 35,018 | 31,866 | 33,253 | 47,808 | 41,281 | 45,787 | 159,877 | 168,129 | 161,709 | |
Other assets | 488,635 | 542,523 | 488,635 | 542,523 | ||||||||
Assets | 11,790,196 | 11,185,142 | 11,790,196 | 11,185,142 | 10,340,906 | |||||||
Total capitalization and liabilities | 11,790,196 | 11,185,142 | 11,790,196 | 11,185,142 | ||||||||
Deferred income taxes | 633,570 | 633,570 | ||||||||||
Total liabilities | 9,828,263 | 9,360,276 | 9,828,263 | 9,360,276 | ||||||||
Retained earnings | 324,766 | 296,654 | 324,766 | 296,654 | 255,030 | $ 215,947 | ||||||
Total shareholders’ equity | 1,927,640 | 1,790,573 | 1,927,640 | 1,790,573 | 1,726,406 | 1,593,008 | ||||||
Net income | 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | 33,726 | $ 48,279 | $ 41,754 | $ 46,260 | 161,767 | 170,019 | 163,599 | |
Increase in deferred income taxes | 41,433 | 104,226 | 80,145 | |||||||||
Change in other assets and liabilities | (41,071) | (101,196) | (14,292) | |||||||||
Bank | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | 183,921 | 173,202 | 169,001 | |||||||||
Operating income | 83,812 | 79,295 | 89,146 | |||||||||
Income taxes (benefit) | 29,082 | 27,994 | 31,421 | |||||||||
Net income for common stock | 54,730 | 51,301 | 57,727 | |||||||||
Assets | 6,014,755 | 5,566,222 | 6,014,755 | 5,566,222 | 5,244,686 | |||||||
Net income | 54,730 | 51,301 | 57,727 | |||||||||
As previously filed | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Income taxes (benefit) | 91,712 | 84,341 | ||||||||||
Net income for common stock | 168,320 | 161,516 | ||||||||||
Other assets | 541,542 | 541,542 | ||||||||||
Assets | 11,184,161 | 11,184,161 | ||||||||||
Total capitalization and liabilities | 11,184,161 | 11,184,161 | ||||||||||
Deferred income taxes | 631,734 | 631,734 | ||||||||||
Total liabilities | 9,358,440 | 9,358,440 | ||||||||||
Retained earnings | 297,509 | 297,509 | 255,694 | 216,804 | ||||||||
Total shareholders’ equity | 1,791,428 | 1,791,428 | 1,727,070 | 1,593,865 | ||||||||
Net income | 170,210 | 163,406 | ||||||||||
Increase in deferred income taxes | 103,916 | 80,399 | ||||||||||
Change in other assets and liabilities | (94,966) | (11,696) | ||||||||||
As previously filed | Bank | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | 176,878 | 171,090 | ||||||||||
Operating income | 75,619 | 87,057 | ||||||||||
Adjustment | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Income taxes (benefit) | 3,867 | 1,896 | ||||||||||
Net income for common stock | (191) | 193 | ||||||||||
Other assets | 981 | 981 | ||||||||||
Assets | 981 | 981 | ||||||||||
Total capitalization and liabilities | 981 | 981 | ||||||||||
Deferred income taxes | 1,836 | 1,836 | ||||||||||
Total liabilities | 1,836 | 1,836 | ||||||||||
Retained earnings | (855) | (855) | (664) | (857) | ||||||||
Total shareholders’ equity | (855) | (855) | (664) | $ (857) | ||||||||
Net income | (191) | 193 | ||||||||||
Increase in deferred income taxes | 310 | (254) | ||||||||||
Change in other assets and liabilities | (119) | 61 | ||||||||||
Adjustment | Bank | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | (3,676) | (2,089) | ||||||||||
Operating income | 3,676 | 2,089 | ||||||||||
Reclassifications | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Change in other assets and liabilities | (6,111) | (2,657) | ||||||||||
American Savings Bank (ASB) | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Income taxes (benefit) | 29,082 | 27,994 | 31,421 | |||||||||
Other assets | 309,946 | 305,416 | 309,946 | 305,416 | ||||||||
Assets | 6,014,755 | 5,566,222 | 6,014,755 | 5,566,222 | ||||||||
Total capitalization and liabilities | 6,014,755 | 5,566,222 | 6,014,755 | 5,566,222 | ||||||||
Total liabilities | 5,454,865 | 5,032,434 | 5,454,865 | 5,032,434 | ||||||||
Retained earnings | 236,664 | 211,934 | 236,664 | 211,934 | ||||||||
Total shareholders’ equity | $ 559,890 | 533,788 | 559,890 | 533,788 | ||||||||
Net income | $ 54,730 | 51,301 | 57,727 | |||||||||
American Savings Bank (ASB) | Bank | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | 156,268 | 157,415 | ||||||||||
Operating income | 79,295 | 89,148 | ||||||||||
Income taxes (benefit) | 27,994 | 31,421 | ||||||||||
Net income for common stock | 51,301 | 57,727 | ||||||||||
Other assets | 305,416 | 305,416 | ||||||||||
Assets | 5,566,222 | 5,566,222 | ||||||||||
Total capitalization and liabilities | 5,566,222 | 5,566,222 | ||||||||||
Deferred income taxes | 118,363 | 118,363 | ||||||||||
Total liabilities | 5,032,434 | 5,032,434 | ||||||||||
Retained earnings | 211,934 | 211,934 | ||||||||||
Total shareholders’ equity | 533,788 | 533,788 | ||||||||||
American Savings Bank (ASB) | As previously filed | Bank | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | 159,944 | 159,504 | ||||||||||
Operating income | 75,619 | 87,059 | ||||||||||
Income taxes (benefit) | 24,127 | 29,525 | ||||||||||
Net income for common stock | 51,492 | 57,534 | ||||||||||
Other assets | 304,435 | 304,435 | ||||||||||
Assets | 5,565,241 | 5,565,241 | ||||||||||
Total capitalization and liabilities | 5,565,241 | 5,565,241 | ||||||||||
Deferred income taxes | 116,527 | 116,527 | ||||||||||
Total liabilities | 5,030,598 | 5,030,598 | ||||||||||
Retained earnings | 212,789 | 212,789 | ||||||||||
Total shareholders’ equity | 534,643 | 534,643 | ||||||||||
American Savings Bank (ASB) | Adjustment | Bank | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total expenses | (3,676) | (2,089) | ||||||||||
Operating income | 3,676 | 2,089 | ||||||||||
Income taxes (benefit) | 3,867 | 1,896 | ||||||||||
Net income for common stock | (191) | $ 193 | ||||||||||
Other assets | 981 | 981 | ||||||||||
Assets | 981 | 981 | ||||||||||
Total capitalization and liabilities | 981 | 981 | ||||||||||
Deferred income taxes | 1,836 | 1,836 | ||||||||||
Total liabilities | 1,836 | 1,836 | ||||||||||
Retained earnings | (855) | (855) | ||||||||||
Total shareholders’ equity | $ (855) | $ (855) |
Summary of significant accoun59
Summary of significant accounting policies (Details 6) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | $ 11,790,196 | $ 11,185,142 | $ 10,340,906 |
Total capitalization and liabilities | 11,790,196 | 11,185,142 | |
Deferred income taxes | 633,570 | ||
Electric utility | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 5,680,054 | 5,557,542 | 5,066,427 |
As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 11,184,161 | ||
Total capitalization and liabilities | 11,184,161 | ||
Deferred income taxes | 631,734 | ||
As previously filed | Electric utility | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 5,087,129 | ||
Restatement adjustment | Accounting Standards Update 2015-17 | Electric utility | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | $ (20,702) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 36,640 | 33,468 | |
Total current assets | 486,660 | 582,088 | |
Assets | 5,680,054 | 5,557,542 | |
Total capitalization and liabilities | 5,680,054 | 5,557,542 | |
Other | 54,079 | 61,664 | |
Total current liabilities | 385,324 | 498,948 | |
Deferred income taxes | 654,806 | 573,439 | |
Total deferred credits and other liabilities | 1,739,479 | 1,669,179 | |
Hawaiian Electric Company, Inc. and Subsidiaries | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 66,383 | ||
Total current assets | 615,003 | ||
Assets | 5,590,457 | ||
Total capitalization and liabilities | 5,590,457 | ||
Other | 65,146 | ||
Total current liabilities | 502,430 | ||
Deferred income taxes | 602,872 | ||
Total deferred credits and other liabilities | 1,698,612 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Restatement adjustment | Accounting Standards Update 2015-17 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | (32,915) | ||
Total current assets | (32,915) | ||
Assets | (32,915) | ||
Total capitalization and liabilities | (32,915) | ||
Other | (3,482) | ||
Total current liabilities | (3,482) | ||
Deferred income taxes | (29,433) | ||
Total deferred credits and other liabilities | (29,433) | ||
Hawaiian Electric Company, Inc (HECO) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 25,505 | 20,231 | |
Total current assets | 355,793 | 439,480 | |
Assets | 4,481,558 | 4,372,366 | |
Total capitalization and liabilities | 4,481,558 | 4,372,366 | |
Other | 41,083 | 45,369 | |
Total current liabilities | 296,129 | 359,739 | |
Deferred income taxes | 466,133 | 407,979 | |
Total deferred credits and other liabilities | $ 1,234,538 | 1,193,905 | |
Hawaiian Electric Company, Inc (HECO) | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 44,680 | ||
Total current assets | 463,929 | ||
Assets | 4,396,815 | ||
Total capitalization and liabilities | 4,396,815 | ||
Other | 48,282 | ||
Total current liabilities | 362,652 | ||
Deferred income taxes | 429,515 | ||
Total deferred credits and other liabilities | 1,215,441 | ||
Hawaiian Electric Company, Inc (HECO) | Restatement adjustment | Accounting Standards Update 2015-17 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | (24,449) | ||
Total current assets | (24,449) | ||
Assets | (24,449) | ||
Total capitalization and liabilities | (24,449) | ||
Other | (2,913) | ||
Total current liabilities | (2,913) | ||
Deferred income taxes | (21,536) | ||
Total deferred credits and other liabilities | (21,536) | ||
HELCO | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 10,137 | ||
Total current assets | 79,087 | ||
Assets | 926,411 | ||
Total capitalization and liabilities | 926,411 | ||
Other | 9,587 | ||
Total current liabilities | 85,352 | ||
Deferred income taxes | 91,924 | ||
Total deferred credits and other liabilities | 267,798 | ||
HELCO | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 8,611 | ||
Total current assets | 77,561 | ||
Assets | 924,885 | ||
Total capitalization and liabilities | 924,885 | ||
Other | 9,866 | ||
Total current liabilities | 85,631 | ||
Deferred income taxes | 90,119 | ||
Total deferred credits and other liabilities | 265,993 | ||
HELCO | Restatement adjustment | Accounting Standards Update 2015-17 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 1,526 | ||
Total current assets | 1,526 | ||
Assets | 1,526 | ||
Total capitalization and liabilities | 1,526 | ||
Other | (279) | ||
Total current liabilities | (279) | ||
Deferred income taxes | 1,805 | ||
Total deferred credits and other liabilities | 1,805 | ||
MECO | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 3,575 | ||
Total current assets | 88,919 | ||
Assets | 822,985 | ||
Total capitalization and liabilities | 822,985 | ||
Other | 15,804 | ||
Total current liabilities | 79,356 | ||
Deferred income taxes | 73,536 | ||
Total deferred credits and other liabilities | 207,719 | ||
MECO | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | 13,567 | ||
Total current assets | 98,911 | ||
Assets | 832,977 | ||
Total capitalization and liabilities | 832,977 | ||
Other | 16,094 | ||
Total current liabilities | 79,646 | ||
Deferred income taxes | 83,238 | ||
Total deferred credits and other liabilities | 217,421 | ||
MECO | Restatement adjustment | Accounting Standards Update 2015-17 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepayments and other | (9,992) | ||
Total current assets | (9,992) | ||
Assets | (9,992) | ||
Total capitalization and liabilities | (9,992) | ||
Other | (290) | ||
Total current liabilities | (290) | ||
Deferred income taxes | (9,702) | ||
Total deferred credits and other liabilities | $ (9,702) |
Summary of significant accoun60
Summary of significant accounting policies (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | $ (93,021) | $ (95,579) | $ (86,237) |
American Savings Bank (ASB) | |||
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | (29,082) | (27,994) | (31,421) |
American Savings Bank (ASB) | Variable Interest Entity, Not Primary Beneficiary | |||
Tax Credit Carryforward [Line Items] | |||
Amortization recognized in the provision for income taxes | (5,400) | (3,600) | (2,200) |
Tax credits and other tax benefits recognized in the provision for income taxes | 8,000 | 5,400 | 3,600 |
Net benefit to income tax expense | $ 2,600 | $ 1,800 | $ 1,400 |
Proposed Merger (Details)
Proposed Merger (Details) | Oct. 14, 2015 | Aug. 31, 2015USD ($) | Dec. 03, 2014USD ($)$ / sharesshares | Jul. 31, 2015intervener | Jan. 31, 2015USD ($) | Dec. 31, 2014complaint | Nov. 26, 2015entity | Dec. 31, 2030 | Dec. 31, 2020 | Nov. 27, 2015USD ($) | Aug. 10, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||
Number of purported class action complaints filed | complaint | 8 | ||||||||||
NextEra Energy, Inc Merger | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Merger share conversion ratio | shares | 0.2413 | ||||||||||
Minimum percentage of shares from which holders approval needed for merger | 75.00% | ||||||||||
Merger contract termination fee | $ 90,000,000 | ||||||||||
Maximum expenses paid to party for cancellation of merger | $ 5,000,000 | ||||||||||
Approximate amount of cumulative savings for customers due to forgone recoveries | $ 60,000,000 | $ 60,000,000 | $ 62,000,000 | ||||||||
Minimum period that entity agrees not to submit applications for general base rate increase | 4 years | ||||||||||
Number of parties intervening | intervener | 28 | ||||||||||
Number of intervening parties opposed | intervener | 11 | ||||||||||
Number of intervening parties conditionally approved | intervener | 11 | ||||||||||
Number of parties not making a recommendation | intervener | 6 | ||||||||||
Consumer advocate recommendations, non-fuel operating and maintenance reductions, revenue requirements, percent | 100.00% | ||||||||||
Consumer advocate recommendations, fund for public interest | $ 2,500,000 | ||||||||||
Consumer advocate recommendations, corporate giving minimum | $ 2,200,000 | ||||||||||
Consumer advocate recommendations, period after business combination closing that the corporate giving requirement is maintained | 10 years | ||||||||||
Consumer advocate recommendations, nondivestiture period | 10 years | ||||||||||
Discovery period | 6 months | ||||||||||
Number of additional entities withdrawing from the agreement | entity | 3 | ||||||||||
NextEra Energy, Inc Merger | Scenario, Forecast [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Expected renewable portfolio standard by 2030 | 50.00% | 35.00% | |||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | NextEra Energy, Inc Merger | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Special dividend | $ / shares | $ 0.50 |
Segment financial information62
Segment financial information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)entity | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment financial information | |||||||||||
Revenues | $ 624,032 | $ 717,176 | $ 623,912 | $ 637,862 | $ 790,040 | $ 867,096 | $ 798,657 | $ 783,749 | $ 2,602,982 | $ 3,239,542 | $ 3,238,470 |
Depreciation and amortization | 195,585 | 183,044 | 167,385 | ||||||||
Interest expense, net | 88,476 | 87,160 | 85,556 | ||||||||
Income (loss) before income taxes | 254,788 | 265,598 | 249,836 | ||||||||
Income taxes (benefit) | 93,021 | 95,579 | 86,237 | ||||||||
Net income (loss) | 42,793 | 51,144 | 35,491 | 32,339 | 33,726 | 48,279 | 41,754 | 46,260 | 161,767 | 170,019 | 163,599 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | 33,253 | $ 47,808 | $ 41,281 | $ 45,787 | 159,877 | 168,129 | 161,709 |
Capital expenditures | 363,804 | 364,826 | 389,438 | ||||||||
Assets | 11,790,196 | 11,185,142 | $ 11,790,196 | 11,185,142 | 10,340,906 | ||||||
Electric utility | |||||||||||
Segment financial information | |||||||||||
Number of entities involved | entity | 3 | ||||||||||
Revenues | $ 2,335,166 | 2,987,323 | 2,980,172 | ||||||||
Depreciation and amortization | 186,319 | 176,284 | 161,759 | ||||||||
Interest expense, net | 66,370 | 64,757 | 59,279 | ||||||||
Income (loss) before income taxes | 217,131 | 220,361 | 194,041 | ||||||||
Income taxes (benefit) | 79,422 | 80,725 | 69,117 | ||||||||
Net income (loss) | 137,709 | 139,636 | 124,924 | ||||||||
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 | ||||||||
Net income for common stock | 135,714 | 137,641 | 122,929 | ||||||||
Capital expenditures | 350,161 | 336,679 | 378,044 | ||||||||
Assets | 5,680,054 | 5,557,542 | 5,680,054 | 5,557,542 | 5,066,427 | ||||||
Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 267,733 | 252,497 | 258,147 | ||||||||
Depreciation and amortization | 7,928 | 5,399 | 4,230 | ||||||||
Interest expense, net | 11,326 | 10,808 | 10,077 | ||||||||
Income (loss) before income taxes | 83,812 | 79,295 | 89,148 | ||||||||
Income taxes (benefit) | 29,082 | 27,994 | 31,421 | ||||||||
Net income (loss) | 54,730 | 51,301 | 57,727 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income for common stock | 54,730 | 51,301 | 57,727 | ||||||||
Capital expenditures | 13,470 | 28,073 | 11,193 | ||||||||
Assets | 6,014,755 | 5,566,222 | 6,014,755 | 5,566,222 | 5,244,686 | ||||||
Other | |||||||||||
Segment financial information | |||||||||||
Revenues | 83 | (278) | 151 | ||||||||
Depreciation and amortization | 1,338 | 1,361 | 1,396 | ||||||||
Interest expense, net | 10,780 | 11,595 | 16,200 | ||||||||
Income (loss) before income taxes | (46,155) | (34,058) | (33,353) | ||||||||
Income taxes (benefit) | (15,483) | (13,140) | (14,301) | ||||||||
Net income (loss) | (30,672) | (20,918) | (19,052) | ||||||||
Preferred stock dividends of subsidiaries | (105) | (105) | (105) | ||||||||
Net income for common stock | (30,567) | (20,813) | (18,947) | ||||||||
Capital expenditures | 173 | 74 | 201 | ||||||||
Assets | $ 95,387 | $ 61,378 | 95,387 | 61,378 | 29,793 | ||||||
Operating Segments | |||||||||||
Segment financial information | |||||||||||
Revenues | 2,602,982 | 3,239,542 | 3,238,470 | ||||||||
Operating Segments | Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 2,335,135 | 2,987,299 | 2,980,139 | ||||||||
Operating Segments | Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 267,733 | 252,497 | 258,147 | ||||||||
Operating Segments | Other | |||||||||||
Segment financial information | |||||||||||
Revenues | 114 | (254) | 184 | ||||||||
Intersegment eliminations | |||||||||||
Segment financial information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Intersegment eliminations | Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 31 | 24 | 33 | ||||||||
Intersegment eliminations | Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Intersegment eliminations | Other | |||||||||||
Segment financial information | |||||||||||
Revenues | $ (31) | $ (24) | $ (33) |
Electric utility segment Regula
Electric utility segment Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Regulatory liabilities | ||
Regulatory liabilities | $ 371,543 | $ 344,849 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory assets | ||
Regulatory assets | 896,731 | 905,264 |
Regulatory liabilities | ||
Regulatory liabilities | 371,543 | 344,849 |
Hawaiian Electric Company, Inc. and Subsidiaries | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Regulatory liabilities | 357,825 | 331,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 9,835 | 12,413 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 3,883 | 1,436 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory assets | ||
Regulatory assets | ||
Regulatory assets | $ 679,766 | 683,243 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes, net | ||
Regulatory assets | ||
Regulatory assets | 88,039 | 86,836 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account | ||
Regulatory assets | ||
Regulatory assets | 74,462 | 91,353 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Regulatory assets | 14,089 | 15,569 |
Hawaiian Electric Company, Inc. and Subsidiaries | Vacation earned, but not yet taken | ||
Regulatory assets | ||
Regulatory assets | $ 10,420 | 10,248 |
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Postretirement benefits other than pensions | ||
Regulatory assets | ||
Regulatory assets | $ 0 | 18 |
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 | $ 29,955 | 17,997 |
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 | 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 | Current assets | ||
Regulatory assets | ||
Regulatory assets | $ 72,231 | 71,421 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term assets | ||
Regulatory assets | ||
Regulatory assets | 824,500 | 833,843 |
Hawaiian Electric Company, Inc. and Subsidiaries | Current liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 2,204 | 632 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 369,339 | $ 344,217 |
Electric utility segment Additi
Electric utility segment Additional Information (Details) | Jan. 05, 2016USD ($) | Nov. 13, 2015MW | Oct. 30, 2015USD ($) | Oct. 26, 2015USD ($) | Aug. 03, 2015state | May. 28, 2015USD ($)kWh | Apr. 15, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014 | May. 31, 2013 | Feb. 16, 2012generation_unit | Nov. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Jul. 31, 2015USD ($) | Jun. 30, 2015MW | Oct. 31, 2014bidder | Aug. 31, 2014 | Jul. 31, 2014USD ($) | Nov. 30, 2013USD ($) | Feb. 28, 2013bid | Aug. 31, 2012MW | May. 31, 2012MW | Feb. 28, 2012USD ($)MW | Mar. 31, 1988MW | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)agreementMW | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2013USD ($) | Jun. 20, 2014facility | Feb. 07, 2014 |
Regulatory projects and legal obligations | |||||||||||||||||||||||||||||||
Period for which Operations was Stopped Prior to Merger | 4 years | ||||||||||||||||||||||||||||||
Public Utility, Annual Incremental Rate Adjustment Mechanism Adjusted Revenue | $ 11,100,000 | $ 26,200,000 | $ 31,600,000 | ||||||||||||||||||||||||||||
Power purchase agreements | |||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | ||||||||||||||||||||||||||||||
Purchase commitment, period | 30 years | ||||||||||||||||||||||||||||||
Purchase commitment, minimum power volume required to be purchased | MW | 186 | 180 | |||||||||||||||||||||||||||||
Purchase commitment, arbitration, additional capacity requirement | MW | 9 | 9 | |||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utility, Net Receivable Under Tariff | 400,000 | $ 14,700,000 | |||||||||||||||||||||||||||||
Public Utility, Enterprise Resource Management System Project, Costs | $ 82,400,000 | ||||||||||||||||||||||||||||||
Public Utility, Enterprise Resource Management System Project, Difference In Cost Between Replacing System And Utilizing Potential Merger Subsidiary's Existing System | $ 20,800,000 | ||||||||||||||||||||||||||||||
Software Acquisition Expense | $ 4,800,000 | ||||||||||||||||||||||||||||||
Public Utility, Project Facility Capacity | MW | 50 | ||||||||||||||||||||||||||||||
Public Utility, Maximum Project Budget | $ 167,000,000 | ||||||||||||||||||||||||||||||
Public Utility, Project, Percent Of Cost Recoverable Through Recovery Mechanisms Other Than Base Rates | 90.00% | ||||||||||||||||||||||||||||||
Number Of States Included In Interim State-wide Emission Limits | state | 48 | ||||||||||||||||||||||||||||||
PSIP, percent of energy coming from renewable sources | 65.00% | ||||||||||||||||||||||||||||||
Revenue Requirement Associated With Plant Additions | $ 40,300,000 | ||||||||||||||||||||||||||||||
PCB Contamination | |||||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Accrual for Environmental Loss Contingencies | $ 4,700,000 | ||||||||||||||||||||||||||||||
Subsequent event | |||||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utility, Maximum Project Budget | $ 157,300,000 | ||||||||||||||||||||||||||||||
Public Utility, Decrease In Project Costs | $ 9,700,000 | ||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | |||||||||||||||||||||||||||||||
Regulatory projects and legal obligations | |||||||||||||||||||||||||||||||
Public Utility, Annual Incremental Rate Adjustment Mechanism Adjusted Revenue | 8,100,000 | ||||||||||||||||||||||||||||||
Power purchase agreements | |||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | ||||||||||||||||||||||||||||||
Purchased power | $ 440,983,000 | $ 537,821,000 | $ 527,839,000 | ||||||||||||||||||||||||||||
Renewable projects | |||||||||||||||||||||||||||||||
Recovery of annual deferred costs, recovery period | 4 months | ||||||||||||||||||||||||||||||
Number of Generating Units Subject to New Regulation | generation_unit | 14 | ||||||||||||||||||||||||||||||
Period of Extension Resulting in Mercury and Air Toxics Standards Compliance Date | 1 year | ||||||||||||||||||||||||||||||
D&O | |||||||||||||||||||||||||||||||
Revenues | 1,644,181,000 | 2,142,245,000 | 2,124,174,000 | ||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utility, Increase (Decrease) In Accrued Earnings Sharing Credits To Be Refunded | 0 | ||||||||||||||||||||||||||||||
Public Utility, Increase (Decrease) In Accrued Revenue Balancing Account To Be Collected | (9,200,000) | ||||||||||||||||||||||||||||||
Public Utility, Net Receivable Under Tariff | $ (1,100,000) | ||||||||||||||||||||||||||||||
Public Utilities, Monthly Utility Usage Assumption | kWh | 500 | ||||||||||||||||||||||||||||||
Public Utilities, Increase (Decrease) In Customer Monthly Bill | $ (90,000) | ||||||||||||||||||||||||||||||
Lanai and Molokai | |||||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utilities, Monthly Utility Usage Assumption | kWh | 400 | ||||||||||||||||||||||||||||||
Public Utilities, Increase (Decrease) In Customer Monthly Bill | $ 0.11 | ||||||||||||||||||||||||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||||||||||||||||||||||
Power purchase agreements | |||||||||||||||||||||||||||||||
Purchased power | 97,503,000 | 123,226,000 | 128,368,000 | ||||||||||||||||||||||||||||
D&O | |||||||||||||||||||||||||||||||
Revenues | 345,549,000 | 422,200,000 | 431,517,000 | ||||||||||||||||||||||||||||
Maui Electric Company, Limited (MECO) | |||||||||||||||||||||||||||||||
Power purchase agreements | |||||||||||||||||||||||||||||||
Purchased power | 55,610,000 | 60,961,000 | 54,474,000 | ||||||||||||||||||||||||||||
Environmental regulation | |||||||||||||||||||||||||||||||
Additional accrued investigation and estimated cleanup costs | 3,600,000 | ||||||||||||||||||||||||||||||
D&O | |||||||||||||||||||||||||||||||
Revenues | 345,517,000 | 422,965,000 | 424,603,000 | ||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||
Regulatory projects and legal obligations | |||||||||||||||||||||||||||||||
Decoupling Implementation Experience, Period | 3 years | ||||||||||||||||||||||||||||||
Asset Retirement Obligations, Recognition Impact on Earnings | 0 | ||||||||||||||||||||||||||||||
Fuel contracts | |||||||||||||||||||||||||||||||
Estimated cost of minimum purchase within 2015 year | 245,000,000 | ||||||||||||||||||||||||||||||
Estimated cost of minimum purchase in 2016 year | 4,000,000 | ||||||||||||||||||||||||||||||
Estimated cost of minimum purchase in 2017 year | 0 | ||||||||||||||||||||||||||||||
Cost of purchases | $ 600,000,000 | 1,100,000,000 | 1,100,000,000 | ||||||||||||||||||||||||||||
Power purchase agreements | |||||||||||||||||||||||||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 551 | ||||||||||||||||||||||||||||||
Purchased power | $ 594,096,000 | 722,008,000 | 710,681,000 | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Recovery of annual deferred costs contingent on approval | $ 405,000 | ||||||||||||||||||||||||||||||
Maximum deferred cost recovery - inter-island project support costs | $ 5,890,000 | ||||||||||||||||||||||||||||||
Maximum deferred cost recovery, contractor service costs | $ 3,100,000 | ||||||||||||||||||||||||||||||
Integration from renewable energy sources (in megawatts) | MW | 200 | ||||||||||||||||||||||||||||||
Maximum deferred cost recover, contractor service costs, amortization period | 3 years | ||||||||||||||||||||||||||||||
Integration from firm renewable geothermal dispatchable energy (in megawatts) | MW | 50 | ||||||||||||||||||||||||||||||
Maximum deferred cost recovery - geothermal dispatchable energy costs | $ 2,100,000 | ||||||||||||||||||||||||||||||
Number of bids received | bid | 6 | ||||||||||||||||||||||||||||||
Number of eligible bidders | bidder | 5 | ||||||||||||||||||||||||||||||
Environmental regulation | |||||||||||||||||||||||||||||||
Percentage of reduction in GHG emissions by 2020 | 16.00% | ||||||||||||||||||||||||||||||
Estimated annual fee, emissions regulation | 500,000 | ||||||||||||||||||||||||||||||
D&O | |||||||||||||||||||||||||||||||
Revenues | 2,335,166,000 | 2,987,323,000 | 2,980,172,000 | ||||||||||||||||||||||||||||
Changes in the asset retirement obligation liability | |||||||||||||||||||||||||||||||
Balance at the beginning of the period | 29,419,000 | 43,106,000 | |||||||||||||||||||||||||||||
Accretion expense | 24,000 | 890,000 | |||||||||||||||||||||||||||||
Liabilities incurred | 0 | 0 | |||||||||||||||||||||||||||||
Liabilities settled | (2,595,000) | (14,577,000) | |||||||||||||||||||||||||||||
Revisions in estimated cash flows | 0 | 0 | |||||||||||||||||||||||||||||
Balance at the end of the period | $ 26,848,000 | $ 29,419,000 | $ 43,106,000 | $ 43,106,000 | |||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utilities, proposed rate base adjustment, percent of previous rate base adjustment | 90.00% | ||||||||||||||||||||||||||||||
Public Utilities, effective interest rate, revenue balancing account | 6.00% | ||||||||||||||||||||||||||||||
Required Reduction Of Greenhouse Gas Emissions Mandated By Regulations, Percentage | 16.00% | ||||||||||||||||||||||||||||||
Required Reduction Of Greenhouse Gas Emissions Mandated By Regulations, Number Of Facilities Impacted | facility | 11 | ||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||
HELCO | |||||||||||||||||||||||||||||||
Regulatory projects and legal obligations | |||||||||||||||||||||||||||||||
Public Utility, Annual Incremental Rate Adjustment Mechanism Adjusted Revenue | 1,500,000 | ||||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utility, Increase (Decrease) In Accrued Earnings Sharing Credits To Be Refunded | 0 | ||||||||||||||||||||||||||||||
Public Utility, Increase (Decrease) In Accrued Revenue Balancing Account To Be Collected | 100,000 | ||||||||||||||||||||||||||||||
Public Utility, Net Receivable Under Tariff | 1,500,000 | ||||||||||||||||||||||||||||||
Public Utilities, Increase (Decrease) In Customer Monthly Bill | 880,000 | ||||||||||||||||||||||||||||||
MECO | |||||||||||||||||||||||||||||||
Regulatory projects and legal obligations | |||||||||||||||||||||||||||||||
Public Utility, Annual Incremental Rate Adjustment Mechanism Adjusted Revenue | 1,500,000 | ||||||||||||||||||||||||||||||
Renewable projects | |||||||||||||||||||||||||||||||
Recovery of annual deferred costs, recovery period | 2 years | ||||||||||||||||||||||||||||||
Decoupling | |||||||||||||||||||||||||||||||
Public Utility, Increase (Decrease) In Accrued Earnings Sharing Credits To Be Refunded | (100,000) | ||||||||||||||||||||||||||||||
Public Utility, Increase (Decrease) In Accrued Revenue Balancing Account To Be Collected | (2,200,000) | ||||||||||||||||||||||||||||||
Public Utility, Net Receivable Under Tariff | (800,000) | ||||||||||||||||||||||||||||||
Public Utilities, Increase (Decrease) In Customer Monthly Bill | $ (130,000) | ||||||||||||||||||||||||||||||
Revenue Requirement Associated With Plant Additions | $ 4,300,000 |
Electric utility segment Major
Electric utility segment Major Customers (Details) - Operating revenues - Customer concentration - Various federal government agencies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Major customers | |||
Operating revenues percentage | 11.00% | 12.00% | 11.00% |
Operating revenues amount | $ 265 | $ 350 | $ 340 |
Electric utility segment Cumula
Electric utility segment Cumulative Preferred Stock (Details) | Dec. 31, 2015$ / shares |
HECO | Multiple Series Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in US$ per share) | $ 20 |
Redemption price (in US$ per share) | 21 |
HECO | Series I Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in US$ per share) | 20 |
Redemption price (in US$ per share) | 20 |
Hawaii Electric Light Company, Inc. (HELCO) | Series G Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in US$ per share) | 100 |
Redemption price (in US$ per share) | 100 |
MECO | Series H Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price (in US$ per share) | 100 |
Redemption price (in US$ per share) | $ 100 |
Electric utility segment Relate
Electric utility segment Related-Party Transactions (Details) - Hawaiian Electric Industries, Inc. - HECO - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | $ 6.5 | $ 7 | $ 6.2 |
Effective interest rate basis term | 30 days | ||
Line of credit facility basis point spread (as a percent) | 0.15% |
Electric utility segment 2014 A
Electric utility segment 2014 Agreement (Details) | 1 Months Ended |
Apr. 30, 2014order | |
Regulatory projects and legal obligations | |
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 |
Electric utility segment Liquef
Electric utility segment Liquefied Natural Gas (Details) | May. 31, 2015t |
Electric utility subsidiary [Abstract] | |
Liquefaction capacity annual purchases, first tranche | 700,000 |
Purchase agreement, period of first tranche | 5 years |
Liquefaction capacity annual purchases, second tranche | 600,000 |
Purchase agreement, period of second tranche | 5 years |
Liquefaction capacity annual purchases, third tranche | 500,000 |
Purchase agreement, period of third tranche | 10 years |
Annual capacity purchases, year two | 700,000 |
Annual capacity purchases, year three | 700,000 |
Annual capacity purchases, year four | 700,000 |
Annual capacity purchases, year five | 700,000 |
Annual capacity purchases, year seven | 600,000 |
Annual capacity purchases, year eight | 600,000 |
Annual capacity purchases, year nine | 600,000 |
Annual capacity purchases, year ten | 600,000 |
Annual capacity purchases, year twelve | 500,000 |
Annual capacity purchases, year thirteen | 500,000 |
Annual capacity purchases, year fourteen | 500,000 |
Annual capacity purchases, year fifteen | 500,000 |
Annual capacity purchases, year sixteen | 500,000 |
Annual capacity purchases, year seventeen | 500,000 |
Annual capacity purchases, year eighteen | 500,000 |
Annual capacity purchases, year nineteen | 500,000 |
Annual capacity purchases, year twenty | 500,000 |
Electric utility segment Consol
Electric utility segment Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expenses | |||||||||||
Total expenses | $ 2,280,429 | $ 2,906,942 | $ 2,920,962 | ||||||||
Operating income | $ 83,222 | $ 97,095 | $ 72,730 | $ 69,506 | $ 68,167 | $ 92,036 | $ 83,183 | $ 89,214 | 322,553 | 332,600 | 317,508 |
Allowance for equity funds used during construction | 6,928 | 6,771 | 5,561 | ||||||||
Allowance for borrowed funds used during construction | 2,457 | 2,579 | 2,246 | ||||||||
Income before income taxes | 254,788 | 265,598 | 249,836 | ||||||||
Income taxes | 93,021 | 95,579 | 86,237 | ||||||||
Net income (loss) | 42,793 | 51,144 | 35,491 | 32,339 | 33,726 | 48,279 | 41,754 | 46,260 | 161,767 | 170,019 | 163,599 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 42,320 | 50,673 | 35,018 | 31,866 | 33,253 | 47,808 | 41,281 | 45,787 | 159,877 | 168,129 | 161,709 |
HECO | |||||||||||
Revenues | 1,644,181 | 2,142,245 | 2,124,174 | ||||||||
Expenses | |||||||||||
Fuel oil | 458,069 | 821,246 | 851,365 | ||||||||
Purchased power | 440,983 | 537,821 | 527,839 | ||||||||
Other operation and maintenance | 284,583 | 283,532 | 283,768 | ||||||||
Depreciation | 117,682 | 109,204 | 99,738 | ||||||||
Taxes, other than income taxes | 156,871 | 201,426 | 200,962 | ||||||||
Impairment of utility assets | 0 | 0 | |||||||||
Total expenses | 1,458,188 | 1,953,229 | 1,963,672 | ||||||||
Operating income | 185,993 | 189,016 | 160,502 | ||||||||
Allowance for equity funds used during construction | 5,641 | 6,085 | 4,495 | ||||||||
Equity in earnings of subsidiaries | 42,920 | 40,964 | 41,410 | ||||||||
Interest expense and other charges, net | (45,899) | (44,041) | (39,107) | ||||||||
Allowance for borrowed funds used during construction | 1,967 | 2,306 | 1,814 | ||||||||
Income before income taxes | 190,622 | 194,330 | 169,114 | ||||||||
Income taxes | 53,828 | 55,609 | 45,105 | ||||||||
Net income (loss) | 136,794 | 138,721 | 124,009 | ||||||||
Net income attributable to Hawaiian Electric | 136,794 | 138,721 | 124,009 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | 135,714 | 137,641 | 122,929 | ||||||||
HELCO | |||||||||||
Revenues | 345,549 | 422,200 | 431,517 | ||||||||
Expenses | |||||||||||
Fuel oil | 71,851 | 117,215 | 125,516 | ||||||||
Purchased power | 97,503 | 123,226 | 128,368 | ||||||||
Other operation and maintenance | 63,098 | 65,471 | 61,418 | ||||||||
Depreciation | 37,250 | 35,904 | 34,188 | ||||||||
Taxes, other than income taxes | 32,312 | 39,521 | 40,092 | ||||||||
Impairment of utility assets | 0 | 0 | |||||||||
Total expenses | 302,014 | 381,337 | 389,582 | ||||||||
Operating income | 43,535 | 40,863 | 41,935 | ||||||||
Allowance for equity funds used during construction | 604 | 472 | 643 | ||||||||
Interest expense and other charges, net | (10,773) | (11,030) | (11,341) | ||||||||
Allowance for borrowed funds used during construction | 215 | 182 | 263 | ||||||||
Income before income taxes | 33,581 | 30,487 | 31,500 | ||||||||
Income taxes | 12,292 | 11,264 | 10,830 | ||||||||
Net income (loss) | 21,289 | 19,223 | 20,670 | ||||||||
Preferred stock dividends of subsidiaries | 534 | 534 | 534 | ||||||||
Net income attributable to Hawaiian Electric | 20,755 | 18,689 | 20,136 | ||||||||
Net income for common stock | 20,755 | 18,689 | 20,136 | ||||||||
MECO | |||||||||||
Revenues | 345,517 | 422,965 | 424,603 | ||||||||
Expenses | |||||||||||
Fuel oil | 124,680 | 193,224 | 208,671 | ||||||||
Purchased power | 55,610 | 60,961 | 54,474 | ||||||||
Other operation and maintenance | 65,408 | 61,609 | 58,081 | ||||||||
Depreciation | 22,448 | 21,279 | 20,099 | ||||||||
Taxes, other than income taxes | 32,702 | 39,916 | 40,077 | ||||||||
Impairment of utility assets | 0 | 0 | |||||||||
Total expenses | 300,848 | 376,989 | 381,402 | ||||||||
Operating income | 44,669 | 45,976 | 43,201 | ||||||||
Allowance for equity funds used during construction | 683 | 214 | 423 | ||||||||
Interest expense and other charges, net | (9,779) | (9,773) | (8,953) | ||||||||
Allowance for borrowed funds used during construction | 275 | 91 | 169 | ||||||||
Income before income taxes | 35,848 | 36,508 | 34,840 | ||||||||
Income taxes | 13,302 | 13,852 | 13,182 | ||||||||
Net income (loss) | 22,546 | 22,656 | 21,658 | ||||||||
Preferred stock dividends of subsidiaries | 381 | 381 | 381 | ||||||||
Net income attributable to Hawaiian Electric | 22,165 | 22,275 | 21,277 | ||||||||
Net income for common stock | 22,165 | 22,275 | 21,277 | ||||||||
Other subsidiaries | |||||||||||
Revenues | 0 | ||||||||||
Expenses | |||||||||||
Other operation and maintenance | 0 | 0 | 3 | ||||||||
Total expenses | 0 | 0 | 3 | ||||||||
Operating income | 0 | 0 | (3) | ||||||||
Income before income taxes | 0 | 0 | (3) | ||||||||
Income taxes | 0 | ||||||||||
Net income (loss) | 0 | 0 | (3) | ||||||||
Net income attributable to Hawaiian Electric | 0 | 0 | (3) | ||||||||
Net income for common stock | 0 | 0 | (3) | ||||||||
Consolidating adjustments | |||||||||||
Revenues | (81) | (87) | (122) | ||||||||
Expenses | |||||||||||
Operating income | (81) | (87) | (122) | ||||||||
Equity in earnings of subsidiaries | (42,920) | (40,964) | (41,410) | ||||||||
Interest expense and other charges, net | 81 | 87 | 122 | ||||||||
Income before income taxes | (42,920) | (40,964) | (41,410) | ||||||||
Income taxes | 0 | ||||||||||
Net income (loss) | (42,920) | (40,964) | (41,410) | ||||||||
Net income attributable to Hawaiian Electric | (42,920) | (40,964) | (41,410) | ||||||||
Net income for common stock | (42,920) | (40,964) | (41,410) | ||||||||
HECO Consolidated | |||||||||||
Revenues | 2,335,166 | 2,987,323 | 2,980,172 | ||||||||
Expenses | |||||||||||
Fuel oil | 654,600 | 1,131,685 | 1,185,552 | ||||||||
Purchased power | 594,096 | 722,008 | 710,681 | ||||||||
Other operation and maintenance | 413,089 | 410,612 | 403,270 | ||||||||
Depreciation | 177,380 | 166,387 | 154,025 | ||||||||
Taxes, other than income taxes | 221,885 | 280,863 | 281,131 | ||||||||
Impairment of utility assets | 0 | 0 | |||||||||
Total expenses | 2,061,050 | 2,711,555 | 2,734,659 | ||||||||
Operating income | 67,662 | 82,657 | 66,161 | 57,636 | 58,878 | 76,156 | 70,068 | 70,666 | 274,116 | 275,768 | 245,513 |
Allowance for equity funds used during construction | 6,928 | 6,771 | 5,561 | ||||||||
Interest expense and other charges, net | (66,370) | (64,757) | (59,279) | ||||||||
Allowance for borrowed funds used during construction | 2,457 | 2,579 | 2,246 | ||||||||
Income before income taxes | 217,131 | 220,361 | 194,041 | ||||||||
Income taxes | 79,422 | 80,725 | 69,117 | ||||||||
Net income (loss) | 33,492 | 43,504 | 33,340 | 27,373 | 29,611 | 39,377 | 34,729 | 35,919 | 137,709 | 139,636 | 124,924 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 136,794 | 138,721 | 124,009 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 29,112 | $ 38,879 | $ 34,230 | $ 35,420 | $ 135,714 | $ 137,641 | $ 122,929 |
Electric utility segment Cons71
Electric utility segment Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income for common stock | $ 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | $ 33,253 | $ 47,808 | $ 41,281 | $ 45,787 | $ 159,877 | $ 168,129 | $ 161,709 |
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | 5,889 | (234,166) | 223,177 | ||||||||
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 $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 22,465 | 11,344 | 23,280 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (25,139) | 207,833 | (222,595) | ||||||||
Other comprehensive income (loss), net of taxes | 1,116 | (10,628) | 9,673 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 160,993 | 157,501 | 171,382 | ||||||||
HECO | |||||||||||
Net income for common stock | 135,714 | 137,641 | 122,929 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | 5,638 | (218,608) | 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 of $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 20,381 | 10,212 | 20,694 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (25,139) | 207,833 | (222,595) | ||||||||
Other comprehensive income (loss), net of taxes | 880 | (563) | 1,578 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 136,594 | 137,078 | 124,507 | ||||||||
HELCO | |||||||||||
Net income for common stock | 20,755 | 18,689 | 20,136 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | (2,710) | (28,725) | 30,542 | ||||||||
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 $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 2,728 | 1,270 | 2,880 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | 104 | 27,437 | (33,277) | ||||||||
Other comprehensive income (loss), net of taxes | 122 | (18) | 145 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 20,877 | 18,671 | 20,281 | ||||||||
MECO | |||||||||||
Net income for common stock | 22,165 | 22,275 | 21,277 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | (1,352) | (29,352) | 27,820 | ||||||||
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 $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 2,503 | 1,090 | 2,557 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (1,107) | 28,257 | (30,254) | ||||||||
Other comprehensive income (loss), net of taxes | 44 | (5) | 123 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 22,209 | 22,270 | 21,400 | ||||||||
Other subsidiaries | |||||||||||
Net income for common stock | 0 | 0 | (3) | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | 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 of $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 0 | ||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | 0 | ||||||||||
Other comprehensive income (loss), net of taxes | 0 | ||||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 0 | 0 | (3) | ||||||||
Consolidating adjustments | |||||||||||
Net income for common stock | (42,920) | (40,964) | (41,410) | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | 4,062 | 58,077 | (58,362) | ||||||||
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 $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | (5,231) | (2,360) | (5,437) | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | 1,003 | (55,694) | 63,531 | ||||||||
Other comprehensive income (loss), net of taxes | (166) | 23 | (268) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | (43,086) | (40,941) | (41,678) | ||||||||
HECO Consolidated | |||||||||||
Net income for common stock | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 29,112 | $ 38,879 | $ 34,230 | $ 35,420 | 135,714 | 137,641 | 122,929 |
Net gains (losses) arising during the period, net of (taxes) benefits of ($3,753), $149,364 and ($142,478) for 2015, 2014 and 2013, respectively | 5,638 | (218,608) | 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 of $14,344, $7,245 and $14,870 for 2015, 2014 and 2013, respectively | 20,381 | 10,212 | 20,694 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $16,011, ($132,373) and $141,777 for 2015, 2014 and 2013, respectively | (25,139) | 207,833 | (222,595) | ||||||||
Other comprehensive income (loss), net of taxes | 880 | (563) | 1,578 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 136,594 | $ 137,078 | $ 124,507 |
Electric utility segment Cons72
Electric utility segment Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 4,377,658 | $ 4,148,774 | ||
Other long-term assets | ||||
Total assets | 11,790,196 | 11,185,142 | $ 10,340,906 | |
Capitalization | ||||
Total shareholders' equity | 1,927,640 | 1,790,573 | 1,726,406 | $ 1,593,008 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Liabilities | ||||
Interest and dividends payable | 26,042 | 25,336 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 633,570 | |||
Contributions in aid of construction | 506,087 | 466,432 | ||
Total capitalization and liabilities | 11,790,196 | 11,185,142 | ||
HECO | ||||
Utility property, plant and equipment | ||||
Land | 43,557 | 43,819 | ||
Plant and equipment | 4,026,079 | 3,782,438 | ||
Less accumulated depreciation | (1,316,467) | (1,253,866) | ||
Construction in progress | 147,979 | 134,376 | ||
Utility property, plant and equipment, net | 2,901,148 | 2,706,767 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,659 | 4,950 | ||
Total property, plant and equipment, net | 2,906,807 | 2,711,717 | ||
Investment in wholly-owned subsidiaries, at equity | 556,528 | 538,639 | ||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 16,281 | 12,416 | 61,245 | 8,265 |
Advances to affiliates | 0 | 16,100 | ||
Customer accounts receivable, net | 93,515 | 111,462 | ||
Accrued unbilled revenues, net | 60,080 | 103,072 | ||
Other accounts receivable, net | 16,421 | 9,980 | ||
Fuel oil stock, at average cost | 49,455 | 74,515 | ||
Materials and supplies, at average cost | 30,921 | 33,154 | ||
Prepayments and other | 25,505 | 20,231 | ||
Regulatory assets | 63,615 | 58,550 | ||
Total current assets | 355,793 | 439,480 | ||
Other long-term assets | ||||
Regulatory assets | 608,957 | 623,784 | ||
Unamortized debt expense | 5,742 | 5,640 | ||
Other | 47,731 | 53,106 | ||
Total other long-term assets | 662,430 | 682,530 | ||
Total assets | 4,481,558 | 4,372,366 | ||
Capitalization | ||||
Total shareholders' equity | 1,728,325 | 1,682,144 | 1,593,564 | 1,472,136 |
Cumulative preferred stock – not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 880,546 | 830,546 | ||
Total capitalization | 2,631,164 | 2,534,983 | ||
Liabilities | ||||
Short-term borrowings-affiliate | 23,000 | 0 | ||
Accounts payable | 84,631 | 122,433 | ||
Interest and dividends payable | 15,747 | 15,407 | ||
Taxes accrued | 131,668 | 176,339 | ||
Regulatory liabilities | 0 | 191 | ||
Other | 41,083 | 45,369 | ||
Total current liabilities | 296,129 | 359,739 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 466,133 | 407,979 | ||
Regulatory liabilities | 254,033 | 236,727 | ||
Unamortized tax credits | 54,078 | 49,865 | ||
Defined benefit pension and other postretirement benefit plans liability | 409,021 | 446,888 | ||
Other | 51,273 | 52,446 | ||
Total deferred credits and other liabilities | 1,234,538 | 1,193,905 | ||
Contributions in aid of construction | 319,727 | 283,739 | ||
Total capitalization and liabilities | 4,481,558 | 4,372,366 | ||
Consolidating adjustments | ||||
Utility property, plant and equipment | ||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | |||
Investment in wholly-owned subsidiaries, at equity | (556,528) | (538,639) | ||
Assets, Current [Abstract] | ||||
Advances to affiliates | (23,000) | (16,100) | ||
Other accounts receivable, net | (8,962) | (8,924) | ||
Prepayments and other | (251) | (475) | ||
Total current assets | (32,213) | (25,499) | ||
Other long-term assets | ||||
Regulatory assets | 0 | (183) | ||
Total other long-term assets | 0 | (183) | ||
Total assets | (588,741) | (564,321) | ||
Capitalization | ||||
Total shareholders' equity | (556,528) | (538,639) | (523,674) | (497,939) |
Total capitalization | (556,528) | (538,639) | ||
Liabilities | ||||
Short-term borrowings-affiliate | (23,000) | (16,100) | ||
Interest and dividends payable | (4) | (11) | ||
Taxes accrued | (251) | (292) | ||
Regulatory liabilities | 0 | |||
Other | (8,958) | (9,096) | ||
Total current liabilities | (32,213) | (25,499) | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 286 | |||
Regulatory liabilities | 0 | (183) | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | |||
Other | (286) | |||
Total deferred credits and other liabilities | 0 | (183) | ||
Total capitalization and liabilities | (588,741) | (564,321) | ||
HELCO | ||||
Utility property, plant and equipment | ||||
Land | 6,219 | 5,464 | ||
Plant and equipment | 1,212,195 | 1,179,032 | ||
Less accumulated depreciation | (486,028) | (473,933) | ||
Construction in progress | 11,455 | 12,421 | ||
Utility property, plant and equipment, net | 743,841 | 722,984 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 82 | 82 | ||
Total property, plant and equipment, net | 743,923 | 723,066 | ||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 2,682 | 612 | 1,326 | 5,441 |
Advances to affiliates | 15,500 | 0 | ||
Customer accounts receivable, net | 20,508 | 24,222 | ||
Accrued unbilled revenues, net | 12,531 | 15,926 | ||
Other accounts receivable, net | 1,275 | 981 | ||
Fuel oil stock, at average cost | 8,310 | 13,800 | ||
Materials and supplies, at average cost | 6,865 | 6,664 | ||
Prepayments and other | 9,091 | 10,137 | ||
Regulatory assets | 4,501 | 6,745 | ||
Total current assets | 81,263 | 79,087 | ||
Other long-term assets | ||||
Regulatory assets | 114,562 | 107,454 | ||
Unamortized debt expense | 1,494 | 1,438 | ||
Other | 14,693 | 15,366 | ||
Total other long-term assets | 130,749 | 124,258 | ||
Total assets | 955,935 | 926,411 | ||
Capitalization | ||||
Total shareholders' equity | 292,702 | 281,846 | 274,802 | 268,908 |
Cumulative preferred stock – not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 215,000 | 190,000 | ||
Total capitalization | 514,702 | 478,846 | ||
Liabilities | ||||
Short-term borrowings-affiliate | 0 | 10,500 | ||
Accounts payable | 17,702 | 23,728 | ||
Interest and dividends payable | 4,255 | 3,989 | ||
Taxes accrued | 30,342 | 37,548 | ||
Regulatory liabilities | 1,030 | 0 | ||
Other | 8,760 | 9,587 | ||
Total current liabilities | 62,089 | 85,352 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 100,681 | 91,924 | ||
Regulatory liabilities | 84,623 | 77,707 | ||
Unamortized tax credits | 15,406 | 14,902 | ||
Defined benefit pension and other postretirement benefit plans liability | 69,893 | 72,547 | ||
Other | 13,243 | 10,658 | ||
Total deferred credits and other liabilities | 283,846 | 267,738 | ||
Contributions in aid of construction | 95,298 | 94,475 | ||
Total capitalization and liabilities | 955,935 | 926,411 | ||
MECO | ||||
Utility property, plant and equipment | ||||
Land | 3,016 | 3,016 | ||
Plant and equipment | 1,077,424 | 1,048,012 | ||
Less accumulated depreciation | (463,509) | (447,711) | ||
Construction in progress | 15,875 | 11,819 | ||
Utility property, plant and equipment, net | 632,806 | 615,136 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,531 | 1,531 | ||
Total property, plant and equipment, net | 634,337 | 616,667 | ||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 5,385 | 633 | 153 | 3,349 |
Advances to affiliates | 7,500 | 0 | ||
Customer accounts receivable, net | 18,755 | 22,800 | ||
Accrued unbilled revenues, net | 11,898 | 18,376 | ||
Other accounts receivable, net | 1,674 | 2,246 | ||
Fuel oil stock, at average cost | 13,451 | 17,731 | ||
Materials and supplies, at average cost | 16,643 | 17,432 | ||
Prepayments and other | 2,295 | 3,575 | ||
Regulatory assets | 4,115 | 6,126 | ||
Total current assets | 81,716 | 88,919 | ||
Other long-term assets | ||||
Regulatory assets | 100,981 | 102,788 | ||
Unamortized debt expense | 1,105 | 1,245 | ||
Other | 13,062 | 13,366 | ||
Total other long-term assets | 115,148 | 117,399 | ||
Total assets | 831,201 | 822,985 | ||
Capitalization | ||||
Total shareholders' equity | 263,725 | 256,692 | 248,771 | 228,927 |
Cumulative preferred stock – not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 191,000 | 186,000 | ||
Total capitalization | 459,725 | 447,692 | ||
Liabilities | ||||
Short-term borrowings-affiliate | 0 | 5,600 | ||
Accounts payable | 12,513 | 17,773 | ||
Interest and dividends payable | 3,113 | 2,931 | ||
Taxes accrued | 29,325 | 36,807 | ||
Regulatory liabilities | 1,174 | 441 | ||
Other | 13,194 | 15,804 | ||
Total current liabilities | 59,319 | 79,356 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 87,706 | 73,536 | ||
Regulatory liabilities | 30,683 | 29,966 | ||
Unamortized tax credits | 14,730 | 14,725 | ||
Defined benefit pension and other postretirement benefit plans liability | 74,060 | 75,960 | ||
Other | 13,916 | 13,532 | ||
Total deferred credits and other liabilities | 221,095 | 207,719 | ||
Contributions in aid of construction | 91,062 | 88,218 | ||
Total capitalization and liabilities | 831,201 | 822,985 | ||
HECO Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 52,792 | 52,299 | ||
Plant and equipment | 6,315,698 | 6,009,482 | ||
Less accumulated depreciation | (2,266,004) | (2,175,510) | ||
Construction in progress | 175,309 | 158,616 | ||
Utility property, plant and equipment, net | 4,277,795 | 4,044,887 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 7,272 | 6,563 | ||
Total property, plant and equipment, net | 4,285,067 | 4,051,450 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | |||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 24,449 | 13,762 | 62,825 | 17,159 |
Customer accounts receivable, net | 132,778 | 158,484 | ||
Accrued unbilled revenues, net | 84,509 | 137,374 | ||
Other accounts receivable, net | 10,408 | 4,283 | ||
Fuel oil stock, at average cost | 71,216 | 106,046 | ||
Materials and supplies, at average cost | 54,429 | 57,250 | ||
Prepayments and other | 36,640 | 33,468 | ||
Regulatory assets | 72,231 | 71,421 | ||
Total current assets | 486,660 | 582,088 | ||
Other long-term assets | ||||
Regulatory assets | 824,500 | 833,843 | ||
Unamortized debt expense | 8,341 | 8,323 | ||
Other | 75,486 | 81,838 | ||
Total other long-term assets | 908,327 | 924,004 | ||
Total assets | 5,680,054 | 5,557,542 | ||
Capitalization | ||||
Total shareholders' equity | 1,728,325 | 1,682,144 | 1,593,564 | 1,472,136 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,286,546 | 1,206,546 | ||
Total capitalization | 3,049,164 | 2,922,983 | ||
Liabilities | ||||
Accounts payable | 114,846 | 163,934 | ||
Interest and dividends payable | 23,111 | 22,316 | ||
Taxes accrued | 191,084 | 250,402 | ||
Regulatory liabilities | 2,204 | 632 | ||
Other | 54,079 | 61,664 | ||
Total current liabilities | 385,324 | 498,948 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 654,806 | 573,439 | ||
Regulatory liabilities | 369,339 | 344,217 | ||
Unamortized tax credits | 84,214 | 79,492 | ||
Defined benefit pension and other postretirement benefit plans liability | 552,974 | 595,395 | ||
Other | 78,146 | 76,636 | ||
Total deferred credits and other liabilities | 1,739,479 | 1,669,179 | ||
Contributions in aid of construction | 506,087 | 466,432 | ||
Total capitalization and liabilities | 5,680,054 | 5,557,542 | ||
Other subsidiaries | ||||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 101 | 101 | 101 | 104 |
Total current assets | 101 | 101 | ||
Other long-term assets | ||||
Total assets | 101 | 101 | ||
Capitalization | ||||
Total shareholders' equity | 101 | 101 | $ 101 | $ 104 |
Total capitalization | 101 | 101 | ||
Liabilities | ||||
Other | 0 | |||
Total current liabilities | 0 | |||
Deferred credits and other liabilities | ||||
Total capitalization and liabilities | $ 101 | $ 101 |
Electric utility segment Cons73
Electric utility segment Consolidating Statements of Changes in Common Stock Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Beginning Balance | $ 1,790,573 | $ 1,726,406 | $ 1,790,573 | $ 1,726,406 | $ 1,593,008 | ||||||
Net income (loss) for common stock | $ 42,320 | $ 50,673 | $ 35,018 | 31,866 | $ 33,253 | $ 47,808 | $ 41,281 | 45,787 | 159,877 | 168,129 | 161,709 |
Other comprehensive income (loss), net of tax benefits | 1,116 | (10,628) | 9,673 | ||||||||
Issuance of common stock, net of expenses | 2,461 | 41,692 | |||||||||
Common stock dividends | (131,765) | (126,505) | (122,626) | ||||||||
Ending Balance | 1,927,640 | 1,790,573 | 1,927,640 | 1,790,573 | 1,726,406 | ||||||
HECO | |||||||||||
Beginning Balance | 1,682,144 | 1,593,564 | 1,682,144 | 1,593,564 | 1,472,136 | ||||||
Net income (loss) for common stock | 135,714 | 137,641 | 122,929 | ||||||||
Other comprehensive income (loss), net of tax benefits | 880 | (563) | 1,578 | ||||||||
Issuance of common stock, net of expenses | (8) | 39,994 | 78,499 | ||||||||
Common stock dividends | (90,405) | (88,492) | (81,578) | ||||||||
Ending Balance | 1,728,325 | 1,682,144 | 1,728,325 | 1,682,144 | 1,593,564 | ||||||
HELCO | |||||||||||
Beginning Balance | 281,846 | 274,802 | 281,846 | 274,802 | 268,908 | ||||||
Net income (loss) for common stock | 20,755 | 18,689 | 20,136 | ||||||||
Other comprehensive income (loss), net of tax benefits | 122 | (18) | 145 | ||||||||
Issuance of common stock, net of expenses | 0 | ||||||||||
Common stock dividends | (10,021) | (11,627) | (14,387) | ||||||||
Ending Balance | 292,702 | 281,846 | 292,702 | 281,846 | 274,802 | ||||||
MECO | |||||||||||
Beginning Balance | 256,692 | 248,771 | 256,692 | 248,771 | 228,927 | ||||||
Net income (loss) for common stock | 22,165 | 22,275 | 21,277 | ||||||||
Other comprehensive income (loss), net of tax benefits | 44 | (5) | 123 | ||||||||
Issuance of common stock, net of expenses | (1) | 0 | 12,461 | ||||||||
Common stock dividends | (15,175) | (14,349) | (14,017) | ||||||||
Ending Balance | 263,725 | 256,692 | 263,725 | 256,692 | 248,771 | ||||||
Other subsidiaries | |||||||||||
Beginning Balance | 101 | 101 | 101 | 101 | 104 | ||||||
Net income (loss) for common stock | 0 | 0 | (3) | ||||||||
Other comprehensive income (loss), net of tax benefits | 0 | ||||||||||
Issuance of common stock, net of expenses | 0 | ||||||||||
Ending Balance | 101 | 101 | 101 | 101 | 101 | ||||||
Consolidating adjustments | |||||||||||
Beginning Balance | (538,639) | (523,674) | (538,639) | (523,674) | (497,939) | ||||||
Net income (loss) for common stock | (42,920) | (40,964) | (41,410) | ||||||||
Other comprehensive income (loss), net of tax benefits | (166) | 23 | (268) | ||||||||
Issuance of common stock, net of expenses | 1 | 0 | (12,461) | ||||||||
Common stock dividends | 25,196 | 25,976 | 28,404 | ||||||||
Ending Balance | (556,528) | (538,639) | (556,528) | (538,639) | (523,674) | ||||||
HECO Consolidated | |||||||||||
Beginning Balance | 1,682,144 | 1,593,564 | 1,682,144 | 1,593,564 | 1,472,136 | ||||||
Net income (loss) for common stock | 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | 29,112 | $ 38,879 | $ 34,230 | $ 35,420 | 135,714 | 137,641 | 122,929 |
Other comprehensive income (loss), net of tax benefits | 880 | (563) | 1,578 | ||||||||
Issuance of common stock, net of expenses | (8) | 39,994 | 78,499 | ||||||||
Common stock dividends | (90,405) | (88,492) | (81,578) | ||||||||
Ending Balance | $ 1,728,325 | $ 1,682,144 | $ 1,728,325 | $ 1,682,144 | $ 1,593,564 |
Electric utility segment Cons74
Electric utility segment Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||||||||||
Net income (loss) | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | $ 33,726 | $ 48,279 | $ 41,754 | $ 46,260 | $ 161,767 | $ 170,019 | $ 163,599 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 183,966 | 172,762 | 160,061 | ||||||||
Other amortization | 11,619 | 10,282 | 7,324 | ||||||||
Impairment of utility assets | 6,021 | 1,866 | 0 | ||||||||
Other | 1,672 | 758 | 0 | ||||||||
Increase in deferred income taxes | 41,433 | 104,226 | 80,145 | ||||||||
Allowance for equity funds used during construction | (6,928) | (6,771) | (5,561) | ||||||||
Change in cash overdraft | 0 | (1,038) | 1,038 | ||||||||
Decrease in fuel oil stock | 34,830 | 28,041 | 27,332 | ||||||||
Increase in regulatory assets | (24,182) | (17,000) | (65,461) | ||||||||
Change in prepaid and accrued income taxes and utility revenue taxes | (42,596) | (39,091) | (19,406) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 852 | 22,251 | (33,014) | ||||||||
Net cash provided by operating activities | 355,880 | 325,420 | 361,568 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (363,804) | (364,826) | (389,438) | ||||||||
Contributions in aid of construction | 40,239 | 41,806 | 32,160 | ||||||||
Other | 7,940 | 1,125 | 1,177 | ||||||||
Net cash used in investing activities | (705,724) | (592,449) | (598,182) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (131,765) | (126,458) | (98,383) | ||||||||
Proceeds from issuance of common stock | 104,435 | 26,898 | 55,086 | ||||||||
Proceeds from issuance of long-term debt | 80,000 | 125,000 | 286,000 | ||||||||
Repayment of long-term debt | 0 | (111,400) | (216,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (15,909) | 13,490 | 21,789 | ||||||||
Other | (833) | (456) | (1,187) | ||||||||
Net cash used in financing activities | 474,780 | 222,535 | 236,988 | ||||||||
Net increase (decrease) in cash and equivalents | 124,936 | (44,494) | 374 | ||||||||
HECO | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 136,794 | 138,721 | 124,009 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (43,020) | (41,064) | (41,510) | ||||||||
Common stock dividends received from subsidiaries | 25,296 | 26,076 | 28,505 | ||||||||
Depreciation of property, plant and equipment | 117,682 | 109,204 | 99,738 | ||||||||
Other amortization | 4,678 | 4,535 | 2,549 | ||||||||
Impairment of utility assets | 4,573 | 1,866 | |||||||||
Other | 4,403 | 758 | |||||||||
Increase in deferred income taxes | 53,338 | 56,901 | 41,409 | ||||||||
Change in tax credits, net | 4,284 | 4,998 | 5,152 | ||||||||
Allowance for equity funds used during construction | (5,641) | (6,085) | (4,495) | ||||||||
Change in cash overdraft | 0 | ||||||||||
Decrease in accounts receivable | 15,652 | 16,213 | 49,974 | ||||||||
Decrease (increase) in accrued unbilled revenues | 29,733 | 4,680 | (7,152) | ||||||||
Decrease in fuel oil stock | 25,060 | 25,098 | 23,563 | ||||||||
Decrease (increase) in materials and supplies | 2,233 | 2,357 | (5,598) | ||||||||
Increase in regulatory assets | (20,356) | (14,620) | (46,047) | ||||||||
Increase (decrease) in accounts payable | (42,751) | (56,044) | 18,527 | ||||||||
Change in prepaid and accrued income taxes and utility revenue taxes | (50,382) | (4,166) | 4,632 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 870 | (562) | 2,325 | ||||||||
Changes in other assets and liabilities | (24,197) | (50,180) | (20,613) | ||||||||
Net cash provided by operating activities | 238,249 | 218,686 | 274,968 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (267,621) | (237,970) | (262,562) | ||||||||
Contributions in aid of construction | 35,955 | 30,021 | 21,686 | ||||||||
Advances from affiliates | 16,100 | (9,261) | 2,561 | ||||||||
Other | 924 | 604 | 677 | ||||||||
Investment in consolidated subsidiary | 0 | (12,461) | |||||||||
Net cash used in investing activities | (214,642) | (216,606) | (250,099) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (90,405) | (88,492) | (81,578) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080) | (1,080) | (1,080) | ||||||||
Proceeds from issuance of common stock | 40,000 | 78,500 | |||||||||
Proceeds from issuance of long-term debt | 50,000 | 140,000 | |||||||||
Repayment of long-term debt | 0 | (90,000) | |||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 23,000 | (1,000) | (17,050) | ||||||||
Other | (1,257) | (337) | (681) | ||||||||
Net cash used in financing activities | (19,742) | (50,909) | 28,111 | ||||||||
Net increase (decrease) in cash and equivalents | 3,865 | (48,829) | 52,980 | ||||||||
Cash and cash equivalents, beginning of period | 12,416 | 61,245 | 12,416 | 61,245 | 8,265 | ||||||
Cash and cash equivalents, end of period | 16,281 | 12,416 | 16,281 | 12,416 | 61,245 | ||||||
HELCO | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 21,289 | 19,223 | 20,670 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 37,250 | 35,904 | 34,188 | ||||||||
Other amortization | 2,124 | 2,926 | 2,360 | ||||||||
Impairment of utility assets | 724 | 0 | |||||||||
Other | (2,476) | ||||||||||
Increase in deferred income taxes | 8,295 | 12,083 | 10,569 | ||||||||
Change in tax credits, net | 527 | 680 | 818 | ||||||||
Allowance for equity funds used during construction | (604) | (472) | (643) | ||||||||
Change in cash overdraft | 0 | ||||||||||
Decrease in accounts receivable | 3,420 | 7,150 | (1,459) | ||||||||
Decrease (increase) in accrued unbilled revenues | 4,593 | 1,174 | (2,707) | ||||||||
Decrease in fuel oil stock | 5,490 | 378 | 1,307 | ||||||||
Decrease (increase) in materials and supplies | (201) | 219 | (1,547) | ||||||||
Increase in regulatory assets | (3,930) | (3,357) | (9,237) | ||||||||
Increase (decrease) in accounts payable | (6,425) | (6,645) | 1,525 | ||||||||
Change in prepaid and accrued income taxes and utility revenue taxes | (6,166) | (3,251) | (4,114) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (161) | 0 | (1) | ||||||||
Changes in other assets and liabilities | (3,545) | (12,907) | (6,894) | ||||||||
Net cash provided by operating activities | 60,204 | 53,105 | 44,835 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (48,645) | (49,895) | (58,416) | ||||||||
Contributions in aid of construction | 2,160 | 7,695 | 7,590 | ||||||||
Advances from affiliates | (15,500) | 1,000 | 17,050 | ||||||||
Other | 132 | 492 | 21 | ||||||||
Net cash used in investing activities | (61,853) | (40,708) | (33,755) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (10,021) | (11,627) | (14,388) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (534) | (534) | (534) | ||||||||
Proceeds from issuance of long-term debt | 25,000 | 56,000 | |||||||||
Repayment of long-term debt | (11,400) | (56,000) | |||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (10,500) | 10,500 | |||||||||
Other | (226) | (50) | (273) | ||||||||
Net cash used in financing activities | 3,719 | (13,111) | (15,195) | ||||||||
Net increase (decrease) in cash and equivalents | 2,070 | (714) | (4,115) | ||||||||
Cash and cash equivalents, beginning of period | 612 | 1,326 | 612 | 1,326 | 5,441 | ||||||
Cash and cash equivalents, end of period | 2,682 | 612 | 2,682 | 612 | 1,326 | ||||||
MECO | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 22,546 | 22,656 | 21,658 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 22,448 | 21,279 | 20,099 | ||||||||
Other amortization | 2,137 | 2,436 | 2,825 | ||||||||
Impairment of utility assets | 724 | ||||||||||
Other | (255) | ||||||||||
Increase in deferred income taxes | 13,707 | 13,963 | 12,529 | ||||||||
Change in tax credits, net | 33 | 384 | 1,047 | ||||||||
Allowance for equity funds used during construction | (683) | (214) | (423) | ||||||||
Change in cash overdraft | (1,038) | 1,038 | |||||||||
Decrease in accounts receivable | 4,617 | 3,483 | 1,178 | ||||||||
Decrease (increase) in accrued unbilled revenues | 5,767 | 896 | 33 | ||||||||
Decrease in fuel oil stock | 4,280 | 2,565 | 2,462 | ||||||||
Decrease (increase) in materials and supplies | 789 | (2,648) | (814) | ||||||||
Increase in regulatory assets | 104 | 977 | (10,177) | ||||||||
Increase (decrease) in accounts payable | (5,379) | (2,838) | (5,321) | ||||||||
Change in prepaid and accrued income taxes and utility revenue taxes | (6,548) | 3,381 | (2,546) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 416 | (399) | (84) | ||||||||
Changes in other assets and liabilities | (4,554) | (3,703) | (8,034) | ||||||||
Net cash provided by operating activities | 60,149 | 61,180 | 35,470 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (33,895) | (48,814) | (57,066) | ||||||||
Contributions in aid of construction | 2,124 | 4,090 | 2,884 | ||||||||
Advances from affiliates | (7,500) | 0 | 0 | ||||||||
Other | 84 | 68 | 209 | ||||||||
Net cash used in investing activities | (39,187) | (44,656) | (53,973) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (15,175) | (14,349) | (14,017) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (381) | (381) | (381) | ||||||||
Proceeds from issuance of common stock | 0 | 12,461 | |||||||||
Proceeds from issuance of long-term debt | 5,000 | 40,000 | |||||||||
Repayment of long-term debt | 0 | (20,000) | |||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (5,600) | (1,239) | (2,561) | ||||||||
Other | (54) | (75) | (195) | ||||||||
Net cash used in financing activities | (16,210) | (16,044) | 15,307 | ||||||||
Net increase (decrease) in cash and equivalents | 4,752 | 480 | (3,196) | ||||||||
Cash and cash equivalents, beginning of period | 633 | 153 | 633 | 153 | 3,349 | ||||||
Cash and cash equivalents, end of period | 5,385 | 633 | 5,385 | 633 | 153 | ||||||
Other subsidiaries | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 0 | 0 | (3) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Changes in other assets and liabilities | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 0 | 0 | (3) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of common stock | 0 | ||||||||||
Net increase (decrease) in cash and equivalents | 0 | 0 | (3) | ||||||||
Cash and cash equivalents, beginning of period | 101 | 101 | 101 | 101 | 104 | ||||||
Cash and cash equivalents, end of period | 101 | 101 | 101 | 101 | 101 | ||||||
Consolidating adjustments | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | (42,920) | (40,964) | (41,410) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 42,920 | 40,964 | 41,410 | ||||||||
Common stock dividends received from subsidiaries | (25,196) | (25,976) | (28,405) | ||||||||
Increase in deferred income taxes | 286 | ||||||||||
Decrease in accounts receivable | 38 | (103) | (248) | ||||||||
Change in prepaid and accrued income taxes and utility revenue taxes | 0 | ||||||||||
Changes in other assets and liabilities | (324) | 103 | 248 | ||||||||
Net cash provided by operating activities | (25,196) | (25,976) | (28,405) | ||||||||
Cash flows from investing activities | |||||||||||
Advances from affiliates | 6,900 | 8,261 | (19,611) | ||||||||
Other | 0 | 0 | |||||||||
Investment in consolidated subsidiary | 0 | 12,461 | |||||||||
Net cash used in investing activities | 6,900 | 8,261 | (7,150) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | 25,196 | 25,976 | 28,405 | ||||||||
Proceeds from issuance of common stock | 0 | (12,461) | |||||||||
Proceeds from issuance of long-term debt | 0 | ||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (6,900) | (8,261) | 19,611 | ||||||||
Net cash used in financing activities | 18,296 | 17,715 | 35,555 | ||||||||
HECO Consolidated | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 33,492 | $ 43,504 | $ 33,340 | 27,373 | 29,611 | $ 39,377 | $ 34,729 | 35,919 | 137,709 | 139,636 | 124,924 |
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 | 177,380 | 166,387 | 154,025 | ||||||||
Other amortization | 8,939 | 9,897 | 7,734 | ||||||||
Impairment of utility assets | 6,021 | 1,866 | 0 | ||||||||
Other | 1,672 | 758 | 0 | ||||||||
Increase in deferred income taxes | 75,626 | 82,947 | 64,507 | ||||||||
Change in tax credits, net | 4,844 | 6,062 | 7,017 | ||||||||
Allowance for equity funds used during construction | (6,928) | (6,771) | (5,561) | ||||||||
Change in cash overdraft | 0 | (1,038) | 1,038 | ||||||||
Decrease in accounts receivable | 23,727 | 26,743 | 49,445 | ||||||||
Decrease (increase) in accrued unbilled revenues | 40,093 | 6,750 | (9,826) | ||||||||
Decrease in fuel oil stock | 34,830 | 28,041 | 27,332 | ||||||||
Decrease (increase) in materials and supplies | 2,821 | (72) | (7,959) | ||||||||
Increase in regulatory assets | (24,182) | (17,000) | (65,461) | ||||||||
Increase (decrease) in accounts payable | (54,555) | (65,527) | 14,731 | ||||||||
Change in prepaid and accrued income taxes and utility revenue taxes | (63,096) | (4,036) | (2,028) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,125 | (961) | 2,240 | ||||||||
Changes in other assets and liabilities | (32,620) | (66,687) | (35,293) | ||||||||
Net cash provided by operating activities | 333,406 | 306,995 | 326,865 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (350,161) | (336,679) | (378,044) | ||||||||
Contributions in aid of construction | 40,239 | 41,806 | 32,160 | ||||||||
Advances from affiliates | 0 | ||||||||||
Other | 1,140 | 1,164 | 907 | ||||||||
Investment in consolidated subsidiary | 0 | ||||||||||
Net cash used in investing activities | (308,782) | (293,709) | (344,977) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (90,405) | (88,492) | (81,578) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) | ||||||||
Proceeds from issuance of common stock | 0 | 40,000 | 78,500 | ||||||||
Proceeds from issuance of long-term debt | 80,000 | 0 | 236,000 | ||||||||
Repayment of long-term debt | 0 | (11,400) | (166,000) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | |||||||||
Other | (1,537) | (462) | (1,149) | ||||||||
Net cash used in financing activities | (13,937) | (62,349) | 63,778 | ||||||||
Net increase (decrease) in cash and equivalents | 10,687 | (49,063) | 45,666 | ||||||||
Cash and cash equivalents, beginning of period | $ 13,762 | $ 62,825 | 13,762 | 62,825 | 17,159 | ||||||
Cash and cash equivalents, end of period | $ 24,449 | $ 13,762 | $ 24,449 | $ 13,762 | $ 62,825 |
Bank segment (HEI only) Stateme
Bank segment (HEI only) Statements of Income Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest expense | |||||||||||
Interest on deposit liabilities | $ 5,348 | $ 5,077 | $ 5,092 | ||||||||
Total interest expense | 88,476 | 87,160 | 85,556 | ||||||||
Provision for loan losses | 6,275 | 6,126 | 1,507 | ||||||||
Noninterest expense | |||||||||||
Income before income taxes | 254,788 | 265,598 | 249,836 | ||||||||
Income taxes | 93,021 | 95,579 | 86,237 | ||||||||
Net income (loss) | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | $ 33,726 | $ 48,279 | $ 41,754 | $ 46,260 | 161,767 | 170,019 | 163,599 |
American Savings Bank (ASB) | |||||||||||
Interest and dividend income | |||||||||||
Interest and fees on loans | 184,782 | 179,341 | 172,969 | ||||||||
Interest and dividends on investment securities | 15,120 | 11,945 | 13,095 | ||||||||
Total interest and dividend income | 199,902 | 191,286 | 186,064 | ||||||||
Interest expense | |||||||||||
Interest on deposit liabilities | 5,348 | 5,077 | 5,092 | ||||||||
Interest on other borrowings | 5,978 | 5,731 | 4,985 | ||||||||
Total interest expense | 11,326 | 10,808 | 10,077 | ||||||||
Net interest income | 188,576 | 180,478 | 175,987 | ||||||||
Provision for loan losses | 6,275 | 6,126 | 1,507 | ||||||||
Net interest income after provision for loan losses | 182,301 | 174,352 | 174,480 | ||||||||
Noninterest income | |||||||||||
Fees from other financial services | 22,211 | 21,747 | 27,099 | ||||||||
Fee income on deposit liabilities | 22,368 | 19,249 | 18,363 | ||||||||
Fee income on other financial products | 8,094 | 8,131 | 8,405 | ||||||||
Bank-owned life insurance | 4,078 | 3,949 | 3,928 | ||||||||
Mortgage banking income | 6,330 | 2,913 | 8,309 | ||||||||
Gain on sale of investment securities | 0 | 2,847 | 1,226 | ||||||||
Other income, net | 4,750 | 2,375 | 4,753 | ||||||||
Total noninterest income | 67,831 | 61,211 | 72,083 | ||||||||
Noninterest expense | |||||||||||
Compensation and employee benefits | 90,518 | 79,885 | 82,910 | ||||||||
Occupancy | 16,365 | 17,197 | 16,747 | ||||||||
Data processing | 12,103 | 11,690 | 10,952 | ||||||||
Services | 10,204 | 10,269 | 9,015 | ||||||||
Equipment | 6,577 | 6,564 | 7,295 | ||||||||
Office supplies, printing and postage | 5,749 | 6,089 | 4,233 | ||||||||
Marketing | 3,463 | 3,999 | 3,373 | ||||||||
FDIC insurance | 3,274 | 3,261 | 3,253 | ||||||||
Other expense | 18,067 | 17,314 | 19,637 | ||||||||
Total noninterest expense | 166,320 | 156,268 | 157,415 | ||||||||
Income before income taxes | 83,812 | 79,295 | 89,148 | ||||||||
Income taxes | 29,082 | 27,994 | 31,421 | ||||||||
Net income (loss) | $ 54,730 | $ 51,301 | $ 57,727 |
Bank segment (HEI only) State76
Bank segment (HEI only) Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | $ 33,726 | $ 48,279 | $ 41,754 | $ 46,260 | $ 161,767 | $ 170,019 | $ 163,599 |
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 $1,541, $(3,856) and $9,037 for 2015, 2014 and 2013, respectively | (2,334) | 5,840 | (13,686) | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, $1,132 and $488 for 2015, 2014 and 2013, respectively | 0 | (1,715) | (738) | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($59), $6,164 and ($10,450) for 2015, 2014 and 2013, respectively | 5,889 | (234,166) | 223,177 | ||||||||
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 $1,011, $561 and $1,187 for 2015, 2014 and 2013, respectively | 22,465 | 11,344 | 23,280 | ||||||||
Other comprehensive income (loss), net of taxes | 1,116 | (10,628) | 9,673 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 160,993 | 157,501 | 171,382 | ||||||||
American Savings Bank (ASB) | |||||||||||
Net income | 54,730 | 51,301 | 57,727 | ||||||||
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 $1,541, $(3,856) and $9,037 for 2015, 2014 and 2013, respectively | (2,334) | 5,840 | (13,686) | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, $1,132 and $488 for 2015, 2014 and 2013, respectively | 0 | (1,715) | (738) | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of ($59), $6,164 and ($10,450) for 2015, 2014 and 2013, respectively | 90 | (9,336) | 15,826 | ||||||||
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 $1,011, $561 and $1,187 for 2015, 2014 and 2013, respectively | 1,531 | 850 | 1,797 | ||||||||
Other comprehensive income (loss), net of taxes | (713) | (4,361) | 3,199 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 54,017 | $ 46,940 | $ 60,926 |
Bank segment (HEI only) State77
Bank segment (HEI only) Statements of Comprehensive Income- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net unrealized gains (losses) on securities arising during the period, taxes | $ 1,541 | $ (3,856) | $ 9,037 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | (1,132) | (488) |
Net gains (losses) arising during the period, tax benefits | (3,753) | 149,364 | (142,478) |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (14,344) | (7,245) | (14,870) |
American Savings Bank (ASB) | |||
Net unrealized gains (losses) on securities arising during the period, taxes | 1,541 | (3,856) | 9,037 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 0 | 1,132 | 488 |
Net gains (losses) arising during the period, tax benefits | (59) | 6,164 | (10,450) |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | $ 1,011 | $ 561 | $ 1,187 |
Bank segment (HEI only) Balance
Bank segment (HEI only) Balance Sheets Data (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 300,478 | $ 175,542 | $ 220,036 | $ 219,662 |
Available-for-sale investment securities, at fair value | 820,648 | 550,394 | ||
Stock in Federal Home Loan Bank, at cost | 10,678 | 69,302 | ||
Allowance for loan losses | (50,038) | (45,618) | ||
Total loans, net | 4,565,781 | 4,389,033 | ||
Loans held for sale, at lower of cost or fair value | 4,631 | 8,424 | ||
Total other assets | 488,635 | 542,523 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 11,790,196 | 11,185,142 | 10,340,906 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other | 471,828 | 531,230 | ||
Total liabilities | $ 9,828,263 | $ 9,360,276 | ||
Commitments and contingencies | ||||
Retained earnings | $ 324,766 | $ 296,654 | 255,030 | 215,947 |
Net unrealized gains (losses) on securities | (1,872) | 462 | ||
Accumulated other comprehensive income (loss), net of taxes | (26,262) | (27,378) | (16,750) | (26,423) |
Total shareholders' equity | 1,927,640 | 1,790,573 | $ 1,726,406 | $ 1,593,008 |
Total capitalization and liabilities | 11,790,196 | 11,185,142 | ||
Other assets | ||||
Total property, plant and equipment, net | 4,377,658 | 4,148,774 | ||
Total other assets | 488,635 | 542,523 | ||
Other liabilities | ||||
Total other liabilities | 471,828 | 531,230 | ||
American Savings Bank (ASB) | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 127,201 | 107,233 | ||
Interest-bearing deposits | 93,680 | 54,230 | ||
Available-for-sale investment securities, at fair value | 820,648 | 550,394 | ||
Stock in Federal Home Loan Bank, at cost | 10,678 | 69,302 | ||
Loans receivable held for investment | 4,615,819 | 4,434,651 | ||
Allowance for loan losses | (50,038) | (45,618) | ||
Total loans, net | 4,565,781 | 4,389,033 | ||
Loans held for sale, at lower of cost or fair value | 4,631 | 8,424 | ||
Total other assets | 309,946 | 305,416 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 6,014,755 | 5,566,222 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Deposit liabilities-noninterest-bearing | 1,520,374 | 1,342,794 | ||
Deposit liabilities-interest-bearing | 3,504,880 | 3,280,621 | ||
Other borrowings | 328,582 | 290,656 | ||
Other | 101,029 | 118,363 | ||
Total liabilities | 5,454,865 | 5,032,434 | ||
Common stock | 1 | 1 | ||
Additional paid in capital | 340,496 | 338,411 | ||
Retained earnings | 236,664 | 211,934 | ||
Net unrealized gains (losses) on securities | (1,872) | 462 | ||
Retirement benefit plans | (15,399) | (17,020) | ||
Accumulated other comprehensive income (loss), net of taxes | (17,271) | (16,558) | ||
Total shareholders' equity | 559,890 | 533,788 | ||
Total capitalization and liabilities | 6,014,755 | 5,566,222 | ||
Other assets | ||||
Bank-owned life insurance | 138,139 | 134,115 | ||
Total property, plant and equipment, net | 88,077 | 92,407 | ||
Prepaid expenses | 3,550 | 3,196 | ||
Accrued interest receivable | 15,192 | 13,632 | ||
Mortgage servicing rights | 8,884 | 11,540 | ||
Low-income housing equity investments | 37,793 | 33,438 | ||
Real estate acquired in settlement of loans, net | 1,030 | 891 | ||
Other | 17,281 | 16,197 | ||
Total other assets | 309,946 | 305,416 | ||
Other liabilities | ||||
Accrued expenses | 30,705 | 37,880 | ||
Federal and state income taxes payable | 13,448 | 28,642 | ||
Cashier's checks | 21,768 | 20,509 | ||
Advance payments by borrowers | 10,311 | 9,652 | ||
Other | 24,797 | 21,680 | ||
Total other liabilities | $ 101,029 | $ 118,363 |
Bank segment (HEI only) Availab
Bank segment (HEI only) Available For Sale Investment Securities (Details) $ in Thousands | Dec. 31, 2015USD ($)issue | Dec. 31, 2014USD ($)issue |
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | $ 823,756 | $ 549,627 |
Gross unrealized gains | 4,589 | 6,745 |
Gross unrealized losses | (7,697) | (5,978) |
Available-for-sale investment securities | $ 820,648 | $ 550,394 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 51 | 12 |
Fair value, less than 12 months | $ 388,838 | $ 88,999 |
Gross unrealized losses, less than 12 months | $ (3,732) | $ (525) |
Number of issues, more than 12 months | issue | 28 | 34 |
Fair value, 12 months or longer | $ 143,195 | $ 201,791 |
Gross unrealized losses, 12 months or longer | (3,965) | (5,453) |
U.S. Treasury and federal agency obligations | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 213,234 | |
Gross unrealized gains | 1,025 | |
Gross unrealized losses | (1,300) | |
Available-for-sale investment securities | $ 212,959 | |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 13 | |
Fair value, less than 12 months | $ 83,053 | |
Gross unrealized losses, less than 12 months | $ (866) | |
Number of issues, more than 12 months | issue | 3 | |
Fair value, 12 months or longer | $ 17,378 | |
Gross unrealized losses, 12 months or longer | (434) | |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 610,522 | 430,120 |
Gross unrealized gains | 3,564 | 5,653 |
Gross unrealized losses | (6,397) | (4,939) |
Available-for-sale investment securities | $ 607,689 | $ 430,834 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 38 | 6 |
Fair value, less than 12 months | $ 305,785 | $ 47,029 |
Gross unrealized losses, less than 12 months | $ (2,866) | $ (164) |
Number of issues, more than 12 months | issue | 25 | 29 |
Fair value, 12 months or longer | $ 125,817 | $ 172,623 |
Gross unrealized losses, 12 months or longer | $ (3,531) | (4,775) |
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 | issue | 6 | |
Fair value, less than 12 months | $ 41,970 | |
Gross unrealized losses, less than 12 months | $ (361) | |
Number of issues, more than 12 months | issue | 5 | |
Fair value, 12 months or longer | $ 29,168 | |
Gross unrealized losses, 12 months or longer | $ (678) |
Bank segment (HEI only) Investm
Bank segment (HEI only) Investment Securities (Details) $ in Thousands | Jun. 01, 2015bank | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Amortized Cost | ||||
Due in one year or less | $ 0 | |||
Due after one year through five years | 86,379 | |||
Due after five years through ten years | 71,972 | |||
Due after ten years | 54,883 | |||
Total amortized cost | 213,234 | |||
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 610,522 | |||
Total available-for-sale securities, amortized cost | 823,756 | $ 549,627 | ||
Fair value | ||||
Due in one year or less | 0 | |||
Due after one year through five years | 86,935 | |||
Due after five years through ten years | 71,812 | |||
Due after ten years | 54,212 | |||
Total fair value | 212,959 | |||
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 607,689 | |||
Estimated fair value | 820,648 | 550,394 | ||
Gains (losses) from sales of available-for-sale investments | ||||
Proceeds | 0 | 79,564 | $ 71,367 | |
Available-for-sale securities pledged at carrying value | 100,500 | 88,600 | ||
Available-for-sale securities, pledged at carrying value as collateral for securities sold under agreements to repurchase | 260,500 | 230,200 | ||
Interest income from taxable and non-taxable investment securities | ||||
Taxable | 15,120 | 11,666 | 11,474 | |
Non-taxable | 0 | 279 | 1,621 | |
Total | 15,120 | 11,945 | 13,095 | |
Number of banks merging | bank | 2 | |||
Redemption of stock from Federal Home Loan Bank | 60,223 | 23,244 | 3,476 | |
Mortgage-related securities - FNMA, FHLMC and GNMA | ||||
Gains (losses) from sales of available-for-sale investments | ||||
Proceeds | 0 | 79,600 | 71,400 | |
Gross gains | 0 | 2,800 | 1,000 | |
Gross losses | 0 | 0 | $ 0 | |
U.S. Treasury and federal agency obligations | ||||
Amortized Cost | ||||
Total available-for-sale securities, amortized cost | 119,507 | |||
Fair value | ||||
Estimated fair value | 119,560 | |||
FHLB Seattle | ||||
Interest income from taxable and non-taxable investment securities | ||||
Cost method investments | 10,700 | 69,300 | ||
Excess FHLB stock in excess of requirement | 55,000 | |||
Redemption of stock from Federal Home Loan Bank | $ 58,600 | $ 23,200 |
Bank segment (HEI only) Loans R
Bank segment (HEI only) Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans receivable | ||
Loans and Leases Receivable, Gross | $ 4,622,068 | $ 4,440,989 |
Deferred loan fees, net and unamortized discounts | (6,249) | (6,338) |
Allowance for loan losses | (50,038) | (45,618) |
Total loans, net | 4,565,781 | 4,389,033 |
Real estate loans | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 3,739,634 | 3,526,576 |
Residential 1-4 family | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 2,069,665 | 2,044,205 |
Commercial real estate | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 690,561 | 531,917 |
Home equity line of credit | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 846,294 | 818,815 |
Residential land | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 18,229 | 16,240 |
Commercial construction | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 100,796 | 96,438 |
Residential construction | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 14,089 | 18,961 |
Commercial loans | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | 758,659 | 791,757 |
Consumer loans | ||
Loans receivable | ||
Loans and Leases Receivable, Gross | $ 123,775 | $ 122,656 |
Bank segment (HEI only) (Detail
Bank segment (HEI only) (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative instrument | |||
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% | ||
Real estate loans for investors | $ 1,500 | $ 1,400 | $ 1,400 |
Loans pledged as collateral to secure advances from the FHLB of Seattle | 2,300 | 1,900 | |
Loans to directors, executive directors, affiliates and any related interest of such individuals | 27.8 | 49.6 | |
Lines of credit closed and repaid, net of new loans and lines of credit to executive directors | 21.8 | ||
Lines of credit closed and repaid | 21.8 | ||
Loan balances, related interests of individuals who are directors | $ 25.8 | $ 46.2 |
Bank segment (HEI only) Allowan
Bank segment (HEI only) Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | $ 45,618 | $ 40,116 |
Charge-offs | (6,426) | (5,550) |
Recoveries | 4,571 | 4,926 |
Provision | 6,275 | 6,126 |
Valuation allowance, balance at the end of the period | 50,038 | 45,618 |
Ending balance: individually evaluated for impairment | 6,320 | 4,665 |
Ending balance: collectively evaluated for impairment | 43,718 | 40,953 |
Financing Receivables: | ||
Total financing receivables | 4,622,068 | 4,440,989 |
Ending balance: individually evaluated for impairment | 53,685 | 49,846 |
Ending balance: collectively evaluated for impairment | 4,568,383 | 4,391,143 |
Residential 1-4 family | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 4,662 | 5,534 |
Charge-offs | (356) | (987) |
Recoveries | 226 | 1,180 |
Provision | (346) | (1,065) |
Valuation allowance, balance at the end of the period | 4,186 | 4,662 |
Ending balance: individually evaluated for impairment | 1,453 | 951 |
Ending balance: collectively evaluated for impairment | 2,733 | 3,711 |
Financing Receivables: | ||
Total financing receivables | 2,069,665 | 2,044,205 |
Ending balance: individually evaluated for impairment | 22,457 | 22,981 |
Ending balance: collectively evaluated for impairment | 2,047,208 | 2,021,224 |
Commercial real estate | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 8,954 | 5,059 |
Provision | 2,388 | 3,895 |
Valuation allowance, balance at the end of the period | 11,342 | 8,954 |
Ending balance: individually evaluated for impairment | 0 | 1,845 |
Ending balance: collectively evaluated for impairment | 11,342 | 7,109 |
Financing Receivables: | ||
Total financing receivables | 690,561 | 531,917 |
Ending balance: individually evaluated for impairment | 1,188 | 5,112 |
Ending balance: collectively evaluated for impairment | 689,373 | 526,805 |
Home equity line of credit | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 6,982 | 5,229 |
Charge-offs | (205) | (196) |
Recoveries | 80 | 752 |
Provision | 403 | 1,197 |
Valuation allowance, balance at the end of the period | 7,260 | 6,982 |
Ending balance: individually evaluated for impairment | 442 | 46 |
Ending balance: collectively evaluated for impairment | 6,818 | 6,936 |
Financing Receivables: | ||
Total financing receivables | 846,294 | 818,815 |
Ending balance: individually evaluated for impairment | 3,225 | 779 |
Ending balance: collectively evaluated for impairment | 843,069 | 818,036 |
Residential land | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 1,875 | 1,817 |
Charge-offs | 0 | (81) |
Recoveries | 507 | 469 |
Provision | (711) | (330) |
Valuation allowance, balance at the end of the period | 1,671 | 1,875 |
Ending balance: individually evaluated for impairment | 891 | 1,057 |
Ending balance: collectively evaluated for impairment | 780 | 818 |
Financing Receivables: | ||
Total financing receivables | 18,229 | 16,240 |
Ending balance: individually evaluated for impairment | 5,683 | 7,850 |
Ending balance: collectively evaluated for impairment | 12,546 | 8,390 |
Commercial construction | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 5,471 | 2,397 |
Provision | (1,010) | 3,074 |
Valuation allowance, balance at the end of the period | 4,461 | 5,471 |
Ending balance: collectively evaluated for impairment | 4,461 | 5,471 |
Financing Receivables: | ||
Total financing receivables | 100,796 | 96,438 |
Ending balance: collectively evaluated for impairment | 100,796 | 96,438 |
Residential construction | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 28 | 19 |
Provision | (15) | 9 |
Valuation allowance, balance at the end of the period | 13 | 28 |
Ending balance: collectively evaluated for impairment | 13 | 28 |
Financing Receivables: | ||
Total financing receivables | 14,089 | 18,961 |
Ending balance: collectively evaluated for impairment | 14,089 | 18,961 |
Commercial loans | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 14,017 | 15,803 |
Charge-offs | (1,074) | (1,872) |
Recoveries | 2,773 | 1,636 |
Provision | 1,492 | (1,550) |
Valuation allowance, balance at the end of the period | 17,208 | 14,017 |
Ending balance: individually evaluated for impairment | 3,527 | 760 |
Ending balance: collectively evaluated for impairment | 13,681 | 13,257 |
Financing Receivables: | ||
Total financing receivables | 758,659 | 791,757 |
Ending balance: individually evaluated for impairment | 21,119 | 13,108 |
Ending balance: collectively evaluated for impairment | 737,540 | 778,649 |
Consumer loans | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 3,629 | 2,367 |
Charge-offs | (4,791) | (2,414) |
Recoveries | 985 | 889 |
Provision | 4,074 | 2,787 |
Valuation allowance, balance at the end of the period | 3,897 | 3,629 |
Ending balance: individually evaluated for impairment | 7 | 6 |
Ending balance: collectively evaluated for impairment | 3,890 | 3,623 |
Financing Receivables: | ||
Total financing receivables | 123,775 | 122,656 |
Ending balance: individually evaluated for impairment | 13 | 16 |
Ending balance: collectively evaluated for impairment | 123,762 | 122,640 |
Unallocated | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | $ 0 | 1,891 |
Provision | (1,891) | |
Valuation allowance, balance at the end of the period | $ 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 |
Bank segment (HEI only) Changes
Bank segment (HEI only) Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | $ 45,618 | $ 40,116 | $ 41,985 |
Provision for loan losses | 6,275 | 6,126 | 1,507 |
Charge-offs | 1,855 | 624 | 3,376 |
Valuation allowance, balance at the end of the period | $ 50,038 | $ 45,618 | $ 40,116 |
Ratio of net charge-offs to average loans outstanding (as a percent) | 0.04% | 0.01% | 0.09% |
Real estate loans | |||
Allowance for loan losses: | |||
Charge-offs | $ (252) | $ (1,137) | $ (678) |
Other loans | |||
Allowance for loan losses: | |||
Charge-offs | $ 2,107 | $ 1,761 | $ 4,054 |
Bank segment (HEI only) Credit
Bank segment (HEI only) Credit Risk Profile by Internally Assigned Grade for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | $ 4,622,068 | $ 4,440,989 |
Loans, Excluding Consumer Loans | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 1,550,016 | 1,420,112 |
Loans, Excluding Consumer Loans | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 1,432,609 | 1,315,751 |
Loans, Excluding Consumer Loans | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 28,544 | 21,304 |
Loans, Excluding Consumer Loans | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 88,416 | 82,394 |
Loans, Excluding Consumer Loans | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 447 | 663 |
Loans, Excluding Consumer Loans | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 0 |
Commercial real estate | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 690,561 | 531,917 |
Commercial real estate | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 642,410 | 493,105 |
Commercial real estate | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 7,710 | 5,209 |
Commercial real estate | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 40,441 | 33,603 |
Commercial real estate | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 0 |
Commercial real estate | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 0 |
Commercial construction | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 100,796 | 96,438 |
Commercial construction | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 86,991 | 79,312 |
Commercial construction | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 13,805 | 0 |
Commercial construction | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 17,126 |
Commercial construction | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 0 |
Commercial construction | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 0 |
Commercial loans | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 758,659 | 791,757 |
Commercial loans | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 703,208 | 743,334 |
Commercial loans | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 7,029 | 16,095 |
Commercial loans | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 47,975 | 31,665 |
Commercial loans | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 447 | 663 |
Commercial loans | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | $ 0 | $ 0 |
Bank segment (HEI only) Credi86
Bank segment (HEI only) Credit Risk Profile Based on Payment Activity for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Credit risk profile based on payment activity for loans | ||
30-59 days past due | $ 7,371 | $ 8,993 |
60-89 days past due | 4,811 | 2,711 |
Greater than 90 days | 13,917 | 13,798 |
Total past due | 26,099 | 25,502 |
Current | 4,595,969 | 4,415,487 |
Total financing receivables | 4,622,068 | 4,440,989 |
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 | 4,967 | 6,124 |
60-89 days past due | 3,289 | 1,732 |
Greater than 90 days | 11,503 | 12,632 |
Total past due | 19,759 | 20,488 |
Current | 2,049,906 | 2,023,717 |
Total financing receivables | 2,069,665 | 2,044,205 |
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 | 0 |
Total past due | 0 | 0 |
Current | 690,561 | 531,917 |
Total financing receivables | 690,561 | 531,917 |
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 | 896 | 1,341 |
60-89 days past due | 706 | 501 |
Greater than 90 days | 477 | 194 |
Total past due | 2,079 | 2,036 |
Current | 844,215 | 816,779 |
Total financing receivables | 846,294 | 818,815 |
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 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days | 415 | 0 |
Total past due | 415 | 0 |
Current | 17,814 | 16,240 |
Total financing receivables | 18,229 | 16,240 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Current | 100,796 | 96,438 |
Total financing receivables | 100,796 | 96,438 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Current | 14,089 | 18,961 |
Total financing receivables | 14,089 | 18,961 |
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 | 125 | 699 |
60-89 days past due | 223 | 145 |
Greater than 90 days | 878 | 569 |
Total past due | 1,226 | 1,413 |
Current | 757,433 | 790,344 |
Total financing receivables | 758,659 | 791,757 |
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 | 1,383 | 829 |
60-89 days past due | 593 | 333 |
Greater than 90 days | 644 | 403 |
Total past due | 2,620 | 1,565 |
Current | 121,155 | 121,091 |
Total financing receivables | 123,775 | 122,656 |
Recorded Investment greater than 90 days and accruing | $ 0 | $ 0 |
Bank segment (HEI only) Credi87
Bank segment (HEI only) Credit Risk Profile Based on Aging Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $ 46,035 | $ 36,886 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 22,246 | 24,107 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 20,554 | 19,253 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 13,962 | 13,525 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 1,188 | 5,112 |
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 | 2,254 | 1,087 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 2,467 | 480 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 970 | 720 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 4,713 | 7,130 |
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 | 20,174 | 10,053 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 1,104 | 2,972 |
Consumer loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 895 | 661 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | $ 0 | $ 0 |
Bank segment (HEI only) Carryin
Bank segment (HEI only) Carrying Amount of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Recorded investment: | ||
With no related allowance recorded | $ 19,806 | $ 23,167 |
With an allowance recorded | 33,879 | 26,679 |
Recorded investment | 53,685 | 49,846 |
Unpaid principal balance: | ||
With no related allowance recorded | 22,934 | 28,890 |
With an allowance recorded | 34,696 | 27,119 |
Unpaid principal balance | 57,630 | 56,009 |
Related Allowance | 6,320 | 4,665 |
Average recorded investment: | ||
With no related allowance recorded | 19,651 | 17,592 |
With an allowance recorded | 31,732 | 30,882 |
Average recorded investment | 51,383 | 48,474 |
Interest income recognized: | ||
With no related allowance recorded | 704 | 442 |
With an allowance recorded | 1,140 | 1,825 |
Interest income recognized | 1,844 | 2,267 |
Residential 1-4 family | ||
Recorded investment: | ||
With no related allowance recorded | 10,596 | 11,654 |
With an allowance recorded | 11,861 | 11,327 |
Recorded investment | 22,457 | 22,981 |
Unpaid principal balance: | ||
With no related allowance recorded | 11,805 | 12,987 |
With an allowance recorded | 11,914 | 11,347 |
Unpaid principal balance | 23,719 | 24,334 |
Related Allowance | 1,453 | 951 |
Average recorded investment: | ||
With no related allowance recorded | 11,215 | 9,056 |
With an allowance recorded | 11,578 | 8,822 |
Average recorded investment | 22,793 | 17,878 |
Interest income recognized: | ||
With no related allowance recorded | 332 | 227 |
With an allowance recorded | 562 | 419 |
Interest income recognized | 894 | 646 |
Commercial real estate | ||
Recorded investment: | ||
With no related allowance recorded | 1,188 | 571 |
With an allowance recorded | 0 | 4,541 |
Recorded investment | 1,188 | 5,112 |
Unpaid principal balance: | ||
With no related allowance recorded | 1,436 | 626 |
With an allowance recorded | 0 | 4,541 |
Unpaid principal balance | 1,436 | 5,167 |
Related Allowance | 0 | 1,845 |
Average recorded investment: | ||
With no related allowance recorded | 370 | 194 |
With an allowance recorded | 1,699 | 3,415 |
Average recorded investment | 2,069 | 3,609 |
Interest income recognized: | ||
With no related allowance recorded | 74 | 0 |
With an allowance recorded | 0 | 478 |
Interest income recognized | 74 | 478 |
Home equity line of credit | ||
Recorded investment: | ||
With no related allowance recorded | 707 | 363 |
With an allowance recorded | 2,518 | 416 |
Recorded investment | 3,225 | 779 |
Unpaid principal balance: | ||
With no related allowance recorded | 948 | 606 |
With an allowance recorded | 2,579 | 420 |
Unpaid principal balance | 3,527 | 1,026 |
Related Allowance | 442 | 46 |
Average recorded investment: | ||
With no related allowance recorded | 484 | 402 |
With an allowance recorded | 1,597 | 132 |
Average recorded investment | 2,081 | 534 |
Interest income recognized: | ||
With no related allowance recorded | 4 | 5 |
With an allowance recorded | 49 | 6 |
Interest income recognized | 53 | 11 |
Residential land | ||
Recorded investment: | ||
With no related allowance recorded | 1,644 | 2,344 |
With an allowance recorded | 4,039 | 5,506 |
Recorded investment | 5,683 | 7,850 |
Unpaid principal balance: | ||
With no related allowance recorded | 2,412 | 3,200 |
With an allowance recorded | 4,117 | 5,584 |
Unpaid principal balance | 6,529 | 8,784 |
Related Allowance | 891 | 1,057 |
Average recorded investment: | ||
With no related allowance recorded | 2,397 | 2,728 |
With an allowance recorded | 4,337 | 6,415 |
Average recorded investment | 6,734 | 9,143 |
Interest income recognized: | ||
With no related allowance recorded | 137 | 172 |
With an allowance recorded | 318 | 484 |
Interest income recognized | 455 | 656 |
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 | 5,671 | 8,235 |
With an allowance recorded | 15,448 | 4,873 |
Recorded investment | 21,119 | 13,108 |
Unpaid principal balance: | ||
With no related allowance recorded | 6,333 | 11,471 |
With an allowance recorded | 16,073 | 5,211 |
Unpaid principal balance | 22,406 | 16,682 |
Related Allowance | 3,527 | 760 |
Average recorded investment: | ||
With no related allowance recorded | 5,185 | 5,204 |
With an allowance recorded | 12,507 | 12,089 |
Average recorded investment | 17,692 | 17,293 |
Interest income recognized: | ||
With no related allowance recorded | 157 | 38 |
With an allowance recorded | 211 | 438 |
Interest income recognized | 368 | 476 |
Consumer loans | ||
Recorded investment: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 13 | 16 |
Recorded investment | 13 | 16 |
Unpaid principal balance: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 13 | 16 |
Unpaid principal balance | 13 | 16 |
Related Allowance | 7 | 6 |
Average recorded investment: | ||
With no related allowance recorded | 0 | 8 |
With an allowance recorded | 14 | 9 |
Average recorded investment | 14 | 17 |
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 Nar
Bank segment (HEI only) TDR Narrative (Details) - Land loans | 12 Months Ended |
Dec. 31, 2015 | |
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 Mo
Bank segment (HEI only) Loan Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | Dec. 31, 2013 | |
Loan modifications determined to be troubled debt restructurings | |||
Commitments to Borrowers whose Loan Terms are Impaired or Modified under Troubled Debt Restructuring | $ 100 | ||
Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 68 | 71 | |
Pre-modification outstanding recorded investment | $ 10,020 | $ 19,313 | |
Post-modification outstanding recorded investment | 10,094 | 19,370 | |
Net increase in ALLL | $ 943 | $ 460 | |
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 | contract | 2 | 2 | |
Recorded investment | $ 1,062 | $ 404 | |
Residential 1-4 family | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 19 | 38 | |
Pre-modification outstanding recorded investment | $ 3,594 | $ 10,680 | |
Post-modification outstanding recorded investment | 3,668 | 10,737 | |
Net increase in ALLL | $ 87 | $ 163 | |
Residential 1-4 family | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 1 | |
Recorded investment | $ 0 | $ 390 | |
Commercial real estate | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 0 | |
Pre-modification outstanding recorded investment | $ 1,500 | $ 0 | |
Post-modification outstanding recorded investment | 1,500 | 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 | contract | 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 | contract | 39 | 8 | |
Pre-modification outstanding recorded investment | $ 2,441 | $ 502 | |
Post-modification outstanding recorded investment | 2,441 | 502 | |
Net increase in ALLL | $ 370 | $ 42 | |
Home equity line of credit | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 0 | |
Recorded investment | $ 6 | $ 0 | |
Residential land | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 18 | |
Pre-modification outstanding recorded investment | $ 218 | $ 4,304 | |
Post-modification outstanding recorded investment | 218 | 4,304 | |
Net increase in ALLL | $ 0 | $ 242 | |
Residential land | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 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 | contract | 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 | contract | 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 | contract | 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 | contract | 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 | contract | 8 | 7 | |
Pre-modification outstanding recorded investment | $ 2,267 | $ 3,827 | |
Post-modification outstanding recorded investment | 2,267 | 3,827 | |
Net increase in ALLL | $ 486 | $ 13 | |
Commercial loans | Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 1 | |
Recorded investment | $ 1,056 | $ 14 | |
Consumer loans | Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 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 | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 |
Bank segment (HEI only) Mortgag
Bank segment (HEI only) Mortgage Servicing Rights- Narrative (Details) - American Savings Bank (ASB) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans receivable | |||
Repurchased mortgage loans | $ 0 | $ 0.5 | $ 1.9 |
Mortgage servicing fees | $ 3.5 | 3.5 | 3.3 |
Minimum | |||
Loans receivable | |||
Servicing Assets and servicing liabilities, basis spread | 0.50% | ||
Maximum | |||
Loans receivable | |||
Servicing Assets and servicing liabilities, basis spread | 1.00% | ||
Residential loan | |||
Loans receivable | |||
Proceeds from sale of mortgage loans | $ 275.3 | 155 | 273.8 |
Gain on sale of mortgage loans | $ 6.3 | $ 2.9 | $ 8.3 |
Bank segment (HEI only) Mortg92
Bank segment (HEI only) Mortgage Servicing Rights (Details) - American Savings Bank (ASB) - Allowance for mortgage-servicing assets – bank - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans receivable | ||||
Gross carrying amount | $ 14,531 | $ 27,185 | ||
Accumulated amortization | (5,647) | (15,436) | ||
Valuation allowance | 0 | (209) | $ (251) | $ (498) |
Net carrying amount | $ 8,884 | $ 11,540 | $ 11,687 |
Bank segment (HEI only) Mortg93
Bank segment (HEI only) Mortgage Servicing Rights and Valuation Allowance Roll Forward (Details) - American Savings Bank (ASB) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | $ 11,540 | ||
Ending balance | 8,884 | $ 11,540 | |
Allowance for mortgage-servicing assets – bank | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 11,749 | 11,938 | $ 11,316 |
Amount capitalized | 3,123 | 1,637 | 2,611 |
Amortization | (2,682) | (1,731) | (1,802) |
Sale of mortgage servicing rights | (3,302) | 0 | 0 |
Other-than-temporary impairment | (4) | (95) | (187) |
Ending balance | 8,884 | 11,749 | 11,938 |
Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning balance | 209 | 251 | 498 |
Provision (recovery) | (205) | 53 | (60) |
Other-than-temporary impairment | (4) | (95) | (187) |
Valuation allowance, ending balance | 0 | 209 | 251 |
Net carrying amount | 8,884 | $ 11,540 | $ 11,687 |
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | |||
2,016 | 1,300 | ||
2,017 | 1,200 | ||
2,018 | 1,000 | ||
2,019 | 900 | ||
2,020 | $ 800 |
Bank segment (HEI only) Key Ass
Bank segment (HEI only) Key Assumptions Used in Estimating the Fair Value of ASB's Mortgage Servicing Rights (Details) - Allowance for mortgage-servicing assets – bank - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Prepayment rate: | ||
25 basis points adverse rate change | $ (561) | $ (757) |
50 basis points adverse rate change | (1,104) | (1,524) |
Discount rate: | ||
25 basis points adverse rate change | (111) | (140) |
50 basis points adverse rate change | (220) | (278) |
American Savings Bank (ASB) | ||
Loans receivable | ||
Unpaid principal balance | $ 1,097,314 | $ 1,391,030 |
Weighted average note rate | 4.05% | 4.07% |
Weighted average discount rate | 9.60% | 9.60% |
Weighted average prepayment speed | 9.30% | 9.50% |
Bank segment (HEI only) Deposit
Bank segment (HEI only) Deposit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted-average stated rate | |||
Savings (as a percent) | 0.07% | 0.06% | |
Other checking, interest bearing (as a percent) | 0.02% | 0.02% | |
Money market (as a percent) | 0.13% | 0.12% | |
Term certificates (as a percent) | 0.93% | 0.83% | |
Total weighted-average stated rate (as a percent) | 0.12% | 0.11% | |
Deposit liabilities | |||
Savings | $ 2,030,644 | $ 1,923,062 | |
Other checking | |||
Interest-bearing | 831,143 | 768,787 | |
Noninterest-bearing | 746,875 | 665,005 | |
Commercial checking | 773,499 | 677,789 | |
Money market | 167,641 | 158,010 | |
Term certificates | 475,452 | 430,762 | |
Total Amount | 5,025,254 | 4,623,415 | |
Certificate accounts of $100,000 or more | 163,200 | 119,900 | |
Term certificates outstanding, scheduled maturities | |||
2,016 | 197,095 | ||
2,017 | 72,817 | ||
2,018 | 63,876 | ||
2,019 | 53,525 | ||
2,020 | 84,749 | ||
Thereafter | 3,390 | ||
Total | 475,452 | ||
Interest expense on deposit liabilities by type of deposit | |||
Term certificates | 3,747 | 3,603 | $ 3,702 |
Savings | 1,257 | 1,134 | 1,052 |
Money market | 205 | 214 | 232 |
Interest-bearing checking | 139 | 126 | 106 |
Interest expense on deposit liabilities | $ 5,348 | $ 5,077 | $ 5,092 |
Bank segment (HEI only) Securit
Bank segment (HEI only) Securities Sold Under Agreements to Repurchase, Including Related Collateral Received From or Pledged to Counterparties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Securities sold under agreements to repurchase | |||
Gross amount of recognized liabilities, repurchase agreements | $ 229,000 | $ 191,000 | |
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 229,000 | 191,000 | |
Financial instruments | 261,000 | 231,000 | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | 228,582 | 190,656 | $ 145,000 |
Average amount outstanding during the year | 219,000 | 155,000 | 147,000 |
Maximum amount outstanding as of any month-end | $ 277,000 | $ 195,000 | $ 151,000 |
Weighted-average interest rate as of end of the period (as a percent) | 1.24% | 1.45% | 1.75% |
Weighted-average interest rate during the year (as a percent) | 1.29% | 1.67% | 1.74% |
Weighted-average remaining days to maturity as of end of the period | 117 days | 343 days | 367 days |
Overnight | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 122,684 | $ 84,758 | |
Weighted-average interest rate as of end of the period (as a percent) | 0.15% | 0.15% | |
1 to 29 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 0 | $ 0 | |
Weighted-average interest rate as of end of the period (as a percent) | 0.00% | 0.00% | |
30 to 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 18,535 | $ 0 | |
Weighted-average interest rate as of end of the period (as a percent) | 0.29% | 0.00% | |
Over 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 87,363 | $ 105,898 | |
Weighted-average interest rate as of end of the period (as a percent) | 2.96% | 2.50% | |
Financial institution | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | $ 50,000 | $ 50,000 | |
Financial instruments | 56,000 | 57,000 | |
Government entities | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 56,000 | 56,000 | |
Financial instruments | 61,000 | 59,000 | |
Commercial account holders | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 123,000 | 85,000 | |
Financial instruments | $ 144,000 | $ 115,000 |
Bank segment (HEI only) Secur97
Bank segment (HEI only) Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Securities sold under agreements to repurchase | |||
Callable quarterly at par until maturity in 2016 | $ 50,300 | ||
Overnight | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 122,684 | $ 84,758 | |
Weighted-average interest rate | 0.15% | 0.15% | |
1 to 29 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 0 | $ 0 | |
Weighted-average interest rate | 0.00% | 0.00% | |
30 to 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 18,535 | $ 0 | |
Weighted-average interest rate | 0.29% | 0.00% | |
Over 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 87,363 | $ 105,898 | |
Weighted-average interest rate | 2.96% | 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 | $ 261,063 | $ 230,725 | |
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 | 144,146 | 114,883 | |
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 | 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 | 20,364 | 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 | 96,553 | 115,842 | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 228,582 | $ 190,656 | $ 145,000 |
Weighted-average interest rate | 1.24% | 1.45% | 1.75% |
Bank segment (HEI only) FHLB Ad
Bank segment (HEI only) FHLB Advances (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Weighted-average stated rate | |
2016 (as a percent) | 0.00% |
2017 (as a percent) | 4.28% |
2018 (as a percent) | 1.95% |
2019 (as a percent) | 0.00% |
2020 (as a percent) | 0.00% |
Thereafter (as a percent) | 0.00% |
Total weighted-average stated rate (as a percent) | 3.12% |
Due in | |
2,016 | $ 0 |
2,017 | 50,000 |
2,018 | 50,000 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total amount due | $ 100,000 |
Bank segment (HEI only) Additio
Bank segment (HEI only) Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Hawaiian Electric Industries, Inc. | |||
Cash dividends paid | $ 121 | $ 124 | $ 122 |
Hawaiian Electric Industries, Inc. | Consolidated subsidiary | American Savings Bank (ASB) | Management and administrative services | |||
Revenue from related party | 2.1 | 2.3 | $ 1.9 |
Hawaiian Electric Industries, Inc. | Maximum | |||
Obligation to contribute additional capital under the Capital Maintenance Agreement | 65.1 | ||
Reduction in obligation to contribute additional capital under the Capital Maintenance Agreement | 28.3 | ||
American Savings Bank (ASB) | |||
Borrowing capacity | 1,700 | 1,200 | |
Cash dividends paid | $ 30 | $ 36 |
Bank segment (HEI only) Derivat
Bank segment (HEI only) Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ 71 | $ (319) | $ 603 |
Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 385 | 398 | |
Liability derivative | 30 | 114 | |
Interest Rate Lock Commitments | |||
Derivative instrument | |||
Notional amount | 22,241 | 29,330 | |
Fair value | 384 | 390 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 384 | 393 | |
Liability derivative | 0 | 3 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | (6) | (74) | 464 |
Forward Contracts | |||
Derivative instrument | |||
Notional amount | 23,644 | 32,833 | |
Fair value | (29) | (106) | |
Forward Contracts | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 1 | 5 | |
Liability derivative | 30 | 111 | |
Forward Contracts | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ 77 | $ (245) | $ 139 |
Off Balance Sheet Arrangements
Off Balance Sheet Arrangements and Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Minimum | ||
Guarantees | ||
Assessment rate for financial institutions in the lowest risk category (as a percent) | 0.025% | |
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 | $ 3,000 |
Indemnification Agreement | American Savings Bank (ASB) | ||
Guarantees | ||
Accrued indemnification litigation obligation | 1,100 | |
Home equity line of credit | ||
Guarantees | ||
Unused Commitments to Extend Credit | 1,089,633 | 1,096,532 |
Commercial and commercial real estate | ||
Guarantees | ||
Unused Commitments to Extend Credit | 526,133 | 631,780 |
Consumer loans | ||
Guarantees | ||
Unused Commitments to Extend Credit | 56,312 | 60,198 |
Residential 1-4 family | ||
Guarantees | ||
Unused Commitments to Extend Credit | 20,524 | 24,863 |
Commercial and financial standby letters of credit [Member] | ||
Guarantees | ||
Unused Commitments to Extend Credit | 20,082 | 18,709 |
March 2011 Class Action Lawsuit | ||
Guarantees | ||
Tentative settlement amount | 2,000 | |
Loss contingency reserve | 2,000 | |
Reserve for Off-balance Sheet Activities [Member] | ||
Guarantees | ||
Unused Commitments to Extend Credit | $ 1,712,684 | $ 1,832,082 |
Unconsolidated variable inte102
Unconsolidated variable interest entities (Details) | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2015MW | Oct. 31, 2015MW | Oct. 31, 2004MW | Mar. 31, 2004USD ($)security | May. 31, 1991MW | Mar. 31, 1988MW | Dec. 31, 2015USD ($)entityagreementMW | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Power purchase agreement | |||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | ||||||||
Accounts payable | $ 138,523,000 | $ 186,425,000 | |||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 594,096,000 | 722,008,000 | $ 710,681,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii, Inc. (AES Hawaii) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 134,000,000 | 145,000,000 | 134,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Kalaeloa Partners, L.P. (Kalaeloa) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 187,000,000 | 279,000,000 | 301,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hamakua Energy Partners, L.P. (HEP) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 44,000,000 | 51,000,000 | 51,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | HPOWER | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 66,000,000 | 66,000,000 | 61,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Puna Geothermal Venture [Member] | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 29,000,000 | 45,000,000 | 49,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Commercial & Sugar (HC&S) [Member] | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 8,000,000 | 15,000,000 | 13,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Other IPPs | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | $ 126,000,000 | 121,000,000 | 102,000,000 | ||||||
HECO | |||||||||
Power purchase agreement | |||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | ||||||||
Maximum capacity of small power production facilities (in megawatts) | MW | 0.1 | ||||||||
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 | $ 440,983,000 | 537,821,000 | 527,839,000 | ||||||
Number of entities owning wind farms not required to be consolidated as VIE's | entity | 2 | ||||||||
Minimum potential number of IPP entities consolidated into company in the future | entity | 1 | ||||||||
HECO | AES Hawaii, Inc. (AES Hawaii) | |||||||||
Power purchase agreement | |||||||||
Power purchase capacity (in megawatts) | MW | 189 | 180 | |||||||
Number of years entity entered under power purchase agreement | 30 years | ||||||||
Accounts payable | $ 12,000,000 | ||||||||
HECO | Kalaeloa Partners, L.P. (Kalaeloa) | |||||||||
Power purchase agreement | |||||||||
Power purchase capacity (in megawatts) | MW | 180 | ||||||||
Number of years entity entered under power purchase agreement | 25 years | ||||||||
Power purchase capacity that Increases from initial capacity (in megawatts) | MW | 208 | ||||||||
Power purchase agreement, termination period | 60 days | ||||||||
Accounts payable | $ 11,000,000 | ||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 97,503,000 | 123,226,000 | 128,368,000 | ||||||
Maui Electric Company, Limited (MECO) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | $ 55,610,000 | $ 60,961,000 | $ 54,474,000 | ||||||
Maximum monthly scheduled energy (in megawatts) | MW | 4 | ||||||||
Maximum emergency power (in megawatts) | MW | 16 | ||||||||
HECO Capital Trust III | |||||||||
Unconsolidated variable interest entities | |||||||||
Variable interest entity, ownership percentage | 100.00% | ||||||||
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 | security | 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 |
Short-term borrowings (Details)
Short-term borrowings (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 02, 2014Institution | Apr. 01, 2014USD ($) | |
Short-term borrowings | ||||
Outstanding amount | $ 103,063,000 | $ 118,972,000 | ||
HEI | ||||
Credit agreements | ||||
Number of financial institutions | Institution | 9 | |||
Line of credit facility, reference rate | Adjusted LIBO Rate | |||
Actual capitalization ratio (as a percent) | 17.00% | |||
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 | Institution | 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) | 57.00% | |||
HELCO | ||||
Credit agreements | ||||
Actual ratio of consolidated subsidiary debt to total consolidated capitalization (as a percent) | 42.00% | |||
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 | $ 103,000,000 | $ 119,000,000 | ||
Weighted-average interest rate (as a percent) | 1.10% | 0.70% | ||
Line of credit facility | HEI | ||||
Short-term borrowings | ||||
Long-term Line of Credit | $ 0 | $ 0 | ||
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 | ||||
Long-term Line of Credit | $ 0 | $ 0 | ||
Maximum capacity under syndicated credit facilities | $ 200,000,000 | $ 175,000,000 | ||
Credit agreements | ||||
Annual fees on undrawn commitments, basis points (as a percent) | 0.175% | |||
Line of credit facility | Adjusted LIBO Rate | HEI | ||||
Credit agreements | ||||
Line of credit facility basis point spread (as a percent) | 1.375% | |||
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% |
Long-term debt (Details)
Long-term debt (Details) - USD ($) | Oct. 18, 2015 | May. 05, 2014 | May. 02, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2015 | Oct. 15, 2015 |
Long-term debt | ||||||||
Long-term debt | $ 1,586,546,000 | $ 1,506,546,000 | ||||||
Aggregate principal payments | ||||||||
Proceeds from issuance of long-term debt | 80,000,000 | 125,000,000 | $ 286,000,000 | |||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Aggregate principal payments | ||||||||
2,016 | 75,000,000 | |||||||
2,017 | 125,000,000 | |||||||
2,018 | 50,000,000 | |||||||
2,019 | 0 | |||||||
2,020 | 96,000,000 | |||||||
Proceeds from issuance of long-term debt | 80,000,000 | 0 | $ 236,000,000 | |||||
Electric utility | ||||||||
Aggregate principal payments | ||||||||
2,016 | 0 | |||||||
2,017 | 0 | |||||||
2,018 | 50,000,000 | |||||||
2,019 | 0 | |||||||
2,020 | 96,000,000 | |||||||
Special purpose revenue bonds issued on behalf of electric utility subsidiaries | ||||||||
Long-term debt | ||||||||
Long-term debt | 1,286,546,000 | 1,206,546,000 | ||||||
HEI Term loan LIBOR .75% (effective October 8, 2015), due 2017 | ||||||||
Long-term debt | ||||||||
Long-term debt | 125,000,000 | 125,000,000 | ||||||
HEI senior note 4.41%, due 2016 | ||||||||
Long-term debt | ||||||||
Long-term debt | 75,000,000 | 75,000,000 | ||||||
HEI senior note 5.67%, due 2021 | ||||||||
Long-term debt | ||||||||
Long-term debt | 50,000,000 | 50,000,000 | ||||||
HEI senior note 3.99%, due 2023 | ||||||||
Long-term debt | ||||||||
Long-term debt | $ 50,000,000 | $ 50,000,000 | ||||||
Medium-term Notes 6.51 Percent Due 2014 | ||||||||
Long-term debt | ||||||||
Debt instrument, stated interest rate (as a percent) | 6.51% | |||||||
Aggregate principal payments | ||||||||
Refinancing of unsecured debt payable | $ 100,000,000 | |||||||
3.25% Refunding Series 2015 SPRBs due 2025 | ||||||||
Long-term debt | ||||||||
Debt instrument, stated interest rate (as a percent) | 3.25% | |||||||
Debt instrument, face amount | $ 47,000,000 | |||||||
3.25% Refunding Series 2015 SPRBs due 2025 | Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||
Aggregate principal payments | ||||||||
Advances to affiliates | 40,000,000 | |||||||
3.25% Refunding Series 2015 SPRBs due 2025 | HELCO | ||||||||
Aggregate principal payments | ||||||||
Advances to affiliates | 5,000,000 | |||||||
3.25% Refunding Series 2015 SPRBs due 2025 | MECO | ||||||||
Aggregate principal payments | ||||||||
Advances to affiliates | $ 2,000,000 | |||||||
4.80%, refunding series 2005A, due 2025 | ||||||||
Long-term debt | ||||||||
Debt instrument, stated interest rate (as a percent) | 4.80% | |||||||
Loans payable | ||||||||
Aggregate principal payments | ||||||||
Term Of Loan | 2 years | |||||||
Proceeds from issuance of long-term debt | $ 125,000,000 | |||||||
Increase in basis spread | 0.15% | |||||||
Loans payable | Minimum | ||||||||
Aggregate principal payments | ||||||||
Effective interest rate | 0.94% | |||||||
Loans payable | Maximum | ||||||||
Aggregate principal payments | ||||||||
Effective interest rate | 1.23% | |||||||
Unsecured Debt | Hawaiian Electric, 5.23%, Series 2015A, due 2045 | ||||||||
Long-term debt | ||||||||
Debt instrument, face amount | $ 50,000,000 | |||||||
Unsecured Debt | Maui Electric, 5.23%, Series 2015A, due 2045 | ||||||||
Long-term debt | ||||||||
Debt instrument, face amount | $ 5,000,000 | |||||||
Unsecured Debt | Hawaii Electric Light, 5.23%, Series 2015A, due 2045 | ||||||||
Long-term debt | ||||||||
Debt instrument, stated interest rate (as a percent) | 5.23% | |||||||
Debt instrument, face amount | $ 25,000,000 |
Shareholders' equity Additional
Shareholders' equity Additional Information (Details) - USD ($) | Dec. 31, 2015 | Mar. 20, 2015 | Jul. 14, 2014 | Dec. 19, 2013 | Mar. 20, 2013 | Mar. 19, 2013 |
Equity [Abstract] | ||||||
Common stock reserved for future issuance | 13,296,268 | |||||
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) | $ 4,700,000 | $ 1.00312 | ||||
Forward sale price (in dollars per share) | $ 25.74688 | |||||
Initial fair value (in dollars per share) | $ 0 | |||||
Delivery of net shares on settlement (in shares) | 4,700,000 | 1,000,000 | 1,300,000 | |||
Delivery of cash on settlement | $ 104,500,000 | $ 23,900,000 | $ 32,100,000 | |||
Underwriting discount included in delivery of cash | $ 1,000,000 | $ 1,300,000 |
Shareholders' equity Accumulate
Shareholders' equity Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | $ (27,378) | $ (16,750) | $ (26,423) |
Current period other comprehensive income (loss) | 1,116 | (10,628) | 9,673 |
Ending balance | (26,262) | (27,378) | (16,750) |
Net unrealized gains (losses) on securities | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 462 | (3,663) | 10,761 |
Current period other comprehensive income (loss) | (2,334) | 4,125 | (14,424) |
Ending balance | (1,872) | 462 | (3,663) |
Unrealized losses on derivatives | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (289) | (525) | (760) |
Current period other comprehensive income (loss) | 235 | 236 | 235 |
Ending balance | (54) | (289) | (525) |
Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (27,551) | (12,562) | (36,424) |
Current period other comprehensive income (loss) | 3,215 | (14,989) | 23,862 |
Ending balance | (24,336) | (27,551) | (12,562) |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | 45 | 608 | (970) |
Current period other comprehensive income (loss) | 880 | (563) | 1,578 |
Ending balance | $ 925 | $ 45 | $ 608 |
Shareholders' equity Reclassifi
Shareholders' equity Reclassification Out Of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest rate contracts (settled in 2011) | $ 77,150 | $ 76,352 | $ 75,479 |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | (22,465) | (11,344) | (23,280) |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 25,139 | (207,833) | 222,595 |
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 | (20,381) | (10,212) | (20,694) |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 25,139 | (207,833) | 222,595 |
Amount reclassified from AOCI | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | (2,439) | 217,698 | (199,818) |
Amount reclassified from AOCI | Unrealized losses on derivatives | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains on securities | 0 | (1,715) | (738) |
Interest rate contracts (settled in 2011) | 235 | 236 | 235 |
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 | 22,465 | 11,344 | 23,280 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (25,139) | 207,833 | (222,595) |
Amount reclassified from AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | (4,758) | 218,045 | (201,901) |
Amount reclassified from AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | 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 | 20,381 | 10,212 | 20,694 |
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | $ (25,139) | $ 207,833 | $ (222,595) |
Retirement benefits Additional
Retirement benefits Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 1,000,000 | $ 1,200,000 | |
Regulatory asset charges pretax | $ (41,000,000) | 340,000,000 | |
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 | $ 6,000,000 | 5,000,000 | $ 5,000,000 |
Cash contributions by the employer to defined contribution plan | $ 5,000,000 | 5,000,000 | 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% | ||
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) | 4.80% | ||
Assumed discount rate, active manager premium | 20.00% | ||
Pension expense | $ 35,000,000 | 32,000,000 | 34,000,000 |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | |||
Aggregate accumulated benefit obligations | 1,500,000,000 | 1,500,000,000 | |
Plan assets | 1,200,000,000 | 1,200,000,000 | |
Defined benefit plans with benefit obligations in excess of plan assets | |||
Aggregate projected benefit obligations | 1,700,000,000 | 1,700,000,000 | |
Plan assets | 1,200,000,000 | $ 1,200,000,000 | |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | $ 65,000,000 | ||
Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed health care trend rate for medical in next fiscal year (as a percent) | 8.00% | 7.25% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Grading Down Plan in Twelve Fiscal Years Thereafter | 5.00% | ||
Assumed health care trend rate for grading down in 2024 and thereafter (as a percent) | 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 | 3.00% | ||
Postretirement benefits other than pension expense | $ 900,000 | $ 1,200,000 | 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) | 3,800,000 | ||
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 | 4,400,000 | ||
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | 49,000 | ||
2,016 | 80,000,000 | ||
2,017 | 84,000,000 | ||
2,018 | 87,000,000 | ||
2,019 | 91,000,000 | ||
2,020 | 96,000,000 | ||
2021 through 2025 | 547,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefits expense | $ 30,000,000 | 32,000,000 | 30,000,000 |
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 | $ 1,500,000 | 900,000 | 600,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | 29,000,000 | 31,000,000 | 30,000,000 |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | |||
Aggregate accumulated benefit obligations | 1,400,000,000 | 1,500,000,000 | |
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 | 64,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits other than pension expense | 700,000 | $ 1,000,000 | $ 0 |
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 | 200,000 | ||
Effect of one-percentage-point decrease that would have reduced APBO | 4,300,000 | ||
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | 23,000 | ||
2,016 | 74,000,000 | ||
2,017 | 77,000,000 | ||
2,018 | 80,000,000 | ||
2,019 | 84,000,000 | ||
2,020 | 88,000,000 | ||
2021 through 2025 | $ 501,000,000 | ||
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% |
Retirement benefits Changes in
Retirement benefits Changes in Projected Benefit Obligations and Fair Value of Plan Assets and Amounts Recognized in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ (552,974) | $ (595,395) | |||
Pension benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | $ 1,847,228 | $ 1,446,291 | |||
Service cost | 66,260 | 49,264 | $ 56,405 | ||
Interest cost | 76,960 | 72,202 | 64,788 | ||
Actuarial losses (gains) | (124,239) | 342,446 | |||
Benefits paid and expenses | (68,179) | (62,975) | |||
Benefit obligation, balance at the end of the period | 1,798,030 | 1,847,228 | 1,446,291 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,266,060 | 1,186,669 | |||
Actual return on plan assets | (14,422) | 81,123 | |||
Employer contributions | 86,802 | 60,103 | |||
Benefits paid and expenses | (66,966) | (61,835) | |||
Fair value of plan assets, balance at the end of the period | 1,271,474 | 1,266,060 | 1,186,669 | ||
Accrued benefit asset (liability), balance | (526,556) | (581,168) | |||
Other assets | 12,509 | 12,800 | |||
Defined benefit pension and other postretirement benefit plans liability | (539,065) | (593,968) | |||
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) | 639,831 | 317,544 | |||
Recognized during year - prior service credit (cost) | (4) | (88) | |||
Recognized during year - net actuarial losses | (36,800) | (20,304) | |||
Occurring during year - net actuarial losses (gains) | (21,264) | 342,679 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 581,763 | 639,831 | 317,544 | ||
Cumulative impact of PUC D&Os | (538,784) | (592,291) | |||
AOCI debit/(credit), balance at end of the period | 42,979 | 47,540 | |||
Net actuarial loss (gain) | 581,951 | 640,015 | |||
Prior service gain | (188) | (184) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 639,831 | 317,544 | 317,544 | 581,763 | 639,831 |
Income taxes | (16,944) | (18,742) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 26,035 | 28,798 | |||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 1,690,777 | 1,320,810 | |||
Service cost | 64,262 | 47,597 | 54,482 | ||
Interest cost | 70,529 | 65,979 | 59,119 | ||
Actuarial losses (gains) | (114,286) | 314,210 | |||
Benefits paid and expenses | (63,037) | (57,819) | |||
Transfers | 1,445 | 0 | |||
Benefit obligation, balance at the end of the period | 1,649,690 | 1,690,777 | 1,320,810 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,129,005 | 1,058,260 | |||
Actual return on plan assets | (10,646) | 69,242 | |||
Employer contributions | 85,139 | 58,948 | |||
Benefits paid and expenses | (62,584) | (57,445) | |||
Other | 919 | 0 | |||
Fair value of plan assets, balance at the end of the period | 1,141,833 | 1,129,005 | 1,058,260 | ||
Accrued benefit asset (liability), balance | (507,857) | (561,772) | |||
Other liabilities (short-term) | (425) | (421) | |||
Defined benefit pension and other postretirement benefit plans liability | (507,432) | (561,351) | |||
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) | 595,103 | 295,973 | |||
Recognized during year - prior service credit (cost) | (40) | (62) | |||
Recognized during year - net actuarial losses | (33,371) | (18,459) | |||
Occurring during year - net actuarial losses (gains) | (20,574) | 317,651 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 541,118 | 595,103 | 295,973 | ||
Cumulative impact of PUC D&Os | (538,784) | (592,291) | |||
AOCI debit/(credit), balance at end of the period | 2,334 | 2,812 | |||
Net actuarial loss (gain) | 541,071 | 595,017 | |||
Prior service gain | 47 | 86 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 595,103 | 295,973 | 295,973 | 541,118 | 595,103 |
Income taxes | (908) | (1,094) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 1,426 | 1,718 | |||
Other benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 219,209 | 176,099 | |||
Service cost | 3,927 | 3,490 | 4,306 | ||
Interest cost | 9,011 | 8,550 | 7,569 | ||
Actuarial losses (gains) | (2,911) | 39,098 | |||
Benefits paid and expenses | (7,696) | (8,028) | |||
Benefit obligation, balance at the end of the period | 221,540 | 219,209 | 176,099 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 180,332 | 179,330 | |||
Actual return on plan assets | (2,866) | 9,149 | |||
Employer contributions | 917 | (257) | |||
Benefits paid and expenses | (7,696) | (7,890) | |||
Fair value of plan assets, balance at the end of the period | 170,687 | 180,332 | 179,330 | ||
Accrued benefit asset (liability), balance | (50,853) | (38,877) | |||
Other assets | 0 | 0 | |||
Defined benefit pension and other postretirement benefit plans liability | (50,853) | (38,877) | |||
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) | 20,933 | (21,722) | |||
Recognized during year - prior service credit (cost) | 1,793 | 1,793 | |||
Recognized during year - net actuarial losses | (1,796) | 11 | |||
Occurring during year - net actuarial losses (gains) | 11,620 | 40,851 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 32,550 | 20,933 | (21,722) | ||
Cumulative impact of PUC D&Os | (35,333) | (22,975) | |||
AOCI debit/(credit), balance at end of the period | (2,783) | (2,042) | |||
Net actuarial loss (gain) | 44,845 | 35,022 | |||
Prior service gain | (12,295) | (14,089) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 20,933 | (21,722) | (21,722) | 32,550 | 20,933 |
Income taxes | 1,084 | 795 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | (1,699) | (1,247) | |||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 211,760 | 169,579 | |||
Service cost | 3,870 | 3,392 | 4,163 | ||
Interest cost | 8,700 | 8,234 | 7,288 | ||
Actuarial losses (gains) | (2,860) | 38,488 | |||
Benefits paid and expenses | (7,598) | (7,933) | |||
Transfers | 118 | 0 | |||
Benefit obligation, balance at the end of the period | 213,990 | 211,760 | 169,579 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 177,256 | 176,291 | |||
Actual return on plan assets | (2,712) | 9,036 | |||
Employer contributions | 864 | (274) | |||
Benefits paid and expenses | (7,598) | (7,797) | |||
Other | 120 | 0 | |||
Fair value of plan assets, balance at the end of the period | 167,930 | 177,256 | 176,291 | ||
Accrued benefit asset (liability), balance | (46,060) | (34,504) | |||
Other liabilities (short-term) | (518) | (460) | |||
Defined benefit pension and other postretirement benefit plans liability | (45,542) | (34,044) | |||
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) | 20,090 | (21,907) | |||
Recognized during year - prior service credit (cost) | 1,804 | 1,804 | |||
Recognized during year - net actuarial losses | (1,754) | 0 | |||
Occurring during year - net actuarial losses (gains) | 11,345 | 40,193 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 31,485 | 20,090 | (21,907) | ||
Cumulative impact of PUC D&Os | (35,333) | (22,975) | |||
AOCI debit/(credit), balance at end of the period | (3,848) | (2,885) | |||
Net actuarial loss (gain) | 43,784 | 34,192 | |||
Prior service gain | (12,299) | (14,102) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | $ 20,090 | $ (21,907) | $ (21,907) | 31,485 | 20,090 |
Income taxes | 1,497 | 1,122 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | $ (2,351) | $ (1,763) |
Retirement benefits Weighted Av
Retirement benefits Weighted Average Asset Allocation of Defined Benefit Retirement Plans and Weighted Average Assumptions(Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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) | 4.60% | 4.22% | 5.09% |
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 3.50% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate (as a percent) | 4.22% | 5.09% | 4.13% |
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 | American Savings Bank (ASB) | |||
Net periodic pension/benefit cost (years ended) | |||
Expected return on plan assets (as a percent) | 4.22% | ||
Pension benefits | Equity securities managers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 70.00% | 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) | 30.00% | 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) | 4.57% | 4.17% | 5.03% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate (as a percent) | 4.17% | 5.03% | 4.07% |
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) | 70.00% | 72.00% | |
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) | 30.00% | 28.00% | |
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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension benefits | |||
Defined benefit plans | |||
Service cost | $ 66,260 | $ 49,264 | $ 56,405 |
Interest cost | 76,960 | 72,202 | 64,788 |
Expected return on plan assets | (88,554) | (81,355) | (72,537) |
Amortization of net prior service (gain) cost | 4 | 88 | (97) |
Amortization of net actuarial loss (gain) | 36,800 | 20,304 | 38,438 |
Net periodic pension/benefit cost | 91,470 | 60,503 | 86,997 |
Impact of PUC D&Os | (40,011) | (13,324) | (38,104) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 51,459 | 47,179 | 48,893 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (100) | ||
Net actuarial loss | 23,900 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 64,262 | 47,597 | 54,482 |
Interest cost | 70,529 | 65,979 | 59,119 |
Expected return on plan assets | (82,541) | (72,661) | (64,551) |
Amortization of net prior service (gain) cost | 40 | 62 | (464) |
Amortization of net actuarial loss (gain) | 33,371 | 18,459 | 34,597 |
Net periodic pension/benefit cost | 85,661 | 59,436 | 83,183 |
Impact of PUC D&Os | (40,011) | (13,324) | (38,104) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 45,650 | 46,112 | 45,079 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | 0 | ||
Net actuarial loss | 21,800 | ||
Other benefits | |||
Defined benefit plans | |||
Service cost | 3,927 | 3,490 | 4,306 |
Interest cost | 9,011 | 8,550 | 7,569 |
Expected return on plan assets | (11,664) | (10,902) | (10,147) |
Amortization of net prior service (gain) cost | (1,793) | (1,793) | (1,793) |
Amortization of net actuarial loss (gain) | 1,796 | (11) | 1,602 |
Net periodic pension/benefit cost | 1,277 | (666) | 1,537 |
Impact of PUC D&Os | (240) | 1,976 | (1,458) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 1,037 | 1,310 | 79 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (1,800) | ||
Net actuarial loss | 1,100 | ||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 3,870 | 3,392 | 4,163 |
Interest cost | 8,700 | 8,234 | 7,288 |
Expected return on plan assets | (11,495) | (10,739) | (10,002) |
Amortization of net prior service (gain) cost | (1,804) | (1,804) | (1,803) |
Amortization of net actuarial loss (gain) | 1,754 | 0 | 1,544 |
Net periodic pension/benefit cost | 1,025 | (917) | 1,190 |
Impact of PUC D&Os | (240) | 1,976 | (1,458) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 785 | $ 1,059 | $ (268) |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (1,800) | ||
Net actuarial loss | $ 1,100 |
Share-based compensation Additi
Share-based compensation Additional Information (Details) | Mar. 01, 2014shares | Feb. 28, 2013shares | Dec. 31, 2015USD ($)incrementshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares |
Share-based compensation | |||||
Income tax benefit (in dollars) | $ | $ 2,300,000 | $ 3,400,000 | $ 2,800,000 | ||
Restricted shares | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | $ | $ 100,000 | $ 100,000 | |||
Shares vested | shares | 4,503 | 4,502 | |||
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% | ||||
Nonqualified stock options (NQSOs) | |||||
Share-based compensation | |||||
Exercisable (in shares) | shares | 0 | ||||
Restricted stock units | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | $ | $ 3,700,000 | $ 4,100,000 | $ 3,700,000 | ||
Income tax benefit (in dollars) | $ | 1,100,000 | $ 1,200,000 | $ 900,000 | ||
Unrecognized compensation cost | $ | $ 3,900,000 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years 5 months 24 days | ||||
Shares vested | shares | 102,173 | 144,702 | 118,885 | ||
LTIP linked to TRS | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | $ | $ 0 | $ 0 | $ 2,200,000 | ||
Income tax benefit (in dollars) | $ | 0 | $ 0 | $ 900,000 | ||
Unrecognized compensation cost | $ | $ 500,000 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year | ||||
Shares vested | shares | 75,915 | 70,189 | 87,753 | ||
Shares settled | shares | 70,205 | ||||
Expired (in shares) | shares | 17,548 | ||||
LTIP awards linked to other performance conditions | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | $ | $ 4,700,000 | $ 1,900,000 | $ 600,000 | ||
Income tax benefit (in dollars) | $ | $ 1,800,000 | $ 800,000 | $ 200,000 | ||
Shares vested | shares | 121,249 | 65,089 | 18,280 | ||
2012-2014 LTIP linked to other performance conditions | |||||
Share-based compensation | |||||
Unrecognized compensation cost | $ | $ 1,000,000 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 1 year | ||||
Equity and Incentive Plan (EIP) | |||||
Share-based compensation | |||||
Additional shares available for issuance | shares | 1,500,000 | ||||
Shares remaining available for future issuance | shares | 3,500,000 | ||||
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | shares | 500,000 | ||||
Equity and Incentive Plan (EIP) | Restricted shares | |||||
Share-based compensation | |||||
The number of equal annual increments for which the awards become unrestricted (in installments) | increment | 4 | ||||
Stock Option and Incentive Plan (SOIP) | Stock appreciation rights (SARs) | |||||
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 | ||||
Nonemployee Director Stock Plan | |||||
Share-based compensation | |||||
Shares remaining available for future issuance | shares | 141,044 |
Share-based Compensation Expens
Share-based Compensation Expense and Related Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | $ 6,500 | $ 9,300 | $ 7,800 |
Income tax benefit (in dollars) | 2,300 | 3,400 | 2,800 |
Capitalized share-based compensation expense | 150 | 160 | 110 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | 1,900 | 3,100 | 2,300 |
Income tax benefit (in dollars) | $ 700 | $ 1,200 | $ 900 |
Share-based compensation The 20
Share-based compensation The 2011 Director Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit (in dollars) | $ 2.3 | $ 3.4 | $ 2.8 |
Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 28,246 | 33,170 | 33,184 |
Fair value of vested stock (in dollars) | $ 0.8 | $ 0.8 | $ 0.8 |
Income tax benefit (in dollars) | $ 0.3 | $ 0.3 | $ 0.3 |
Share-based compensation Nonqua
Share-based compensation Nonqualified Stock Options (Details) - Nonqualified stock options (NQSOs) | 12 Months Ended |
Dec. 31, 2013$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at the beginning of the period | shares | 14,000 |
Exercised | shares | (14,000) |
Outstanding at the end of the period | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, at the beginning of the period (in dollars per share) | $ / shares | $ 20.49 |
Exercised (in dollars per share) | $ / shares | 20.49 |
Outstanding, at the end of the period (in dollars per share) | $ / shares | $ 0 |
Share-based compensation Non116
Share-based compensation Nonqualified Stock Option Activity and Statistics (Details) - Nonqualified stock options (NQSOs) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cash received from exercise | $ 287 |
Intrinsic value of shares exercised | 128 |
Tax benefit realized for the deduction of exercises | $ 50 |
Share-based compensation Stock
Share-based compensation Stock Appreciation Rights (Details) - Stock appreciation rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding, beginning of period | 80,000 | 164,000 | 164,000 |
Granted | 0 | 0 | 0 |
Exercised | (80,000) | (22,000) | 0 |
Forfeited | 0 | (62,000) | 0 |
Expired | 0 | 0 | 0 |
Outstanding, end of period | 0 | 80,000 | 164,000 |
Exercisable | 0 | 80,000 | 164,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, at the beginning of the period (in dollars per share) | $ 26.18 | $ 26.12 | $ 26.12 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 26.18 | 26.18 | 0 |
Forfeited (in dollars per share) | 0 | 26.02 | 0 |
Expired (in dollars per share) | 0 | 0 | 0 |
Outstanding, at the end of the period (in dollars per share) | 0 | 26.18 | 26.12 |
Exercisable (in dollars per share) | $ 0 | $ 26.18 | $ 26.12 |
Intrinsic value of shares exercised | $ 502 | $ 29 | $ 0 |
Tax benefit realized for the deduction of exercises | $ 82 | $ 11 | $ 0 |
Share-based compensation Restri
Share-based compensation Restricted Shares and Restricted Stock Awards (Details) - Restricted shares - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Restricted Shares [Roll Forward] | ||
Outstanding, beginning of period | 4,503 | 9,005 |
Granted | 0 | 0 |
Vested | (4,503) | (4,502) |
Forfeited | 0 | 0 |
Outstanding, end of period | 0 | 4,503 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding, beginning of period (in dollars per share) | $ 22.21 | $ 22.21 |
Granted (in dollars per share) | 0 | 0 |
Vested (in dollars per share) | 22.21 | 22.21 |
Forfeited (in dollars per share) | 0 | 0 |
Outstanding, end of period (in dollars per share) | $ 0 | $ 22.21 |
Share-based compensation Res119
Share-based compensation Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period | 261,235 | 288,151 | 315,094 |
Granted | 85,772 | 117,786 | 111,231 |
Vested | (102,173) | (144,702) | (118,885) |
Forfeited | (34,200) | 0 | (19,289) |
Outstanding, end of period | 210,634 | 261,235 | 288,151 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 25.77 | $ 25.17 | $ 22.82 |
Granted (in dollars per share) | 33.69 | 25.17 | 26.88 |
Vested (in dollars per share) | 25.67 | 24.09 | 20.48 |
Forfeited (in dollars per share) | 27.09 | 0 | 25.62 |
Outstanding, end of period (in dollars per share) | $ 28.82 | $ 25.77 | $ 25.17 |
Total weighted-average grant-date fair value | $ 2.9 | $ 3 | $ 3 |
Share-based compensation LTIP L
Share-based compensation LTIP Linked to TRS (Details) - LTIP linked to TRS - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period | 257,956 | 232,127 | 239,256 |
Granted | 0 | 97,524 | 91,038 |
Vested | (75,915) | (70,189) | (87,753) |
Forfeited | (19,541) | (1,506) | (10,414) |
Outstanding, end of period | 162,500 | 257,956 | 232,127 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 28.45 | $ 32.88 | $ 29.12 |
Granted (in dollars per share) | 0 | 22.95 | 32.69 |
Vested (in dollars per share) | 30.71 | 35.46 | 22.45 |
Forfeited (in dollars per share) | 26.25 | 28.32 | 32.72 |
Outstanding, end of period (in dollars per share) | $ 27.66 | $ 28.45 | $ 32.88 |
Total weighted-average grant-date fair value | $ 0 | $ 2.2 | $ 3 |
Share-based compensation Assump
Share-based compensation Assumptions to Determine the Fair Value of LTIP Awards Linked to TRS (Details) - LTIP linked to TRS - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate (as a percent) | 0.66% | 0.38% |
Expected life (in years) | 3 years | 3 years |
Expected volatility (as a percent) | 17.80% | 19.40% |
Range of expected volatility for Peer Group, minimum (as a percent) | 12.40% | 12.40% |
Range of expected volatility for Peer Group, maximum (as a percent) | 23.30% | 25.30% |
Grant date fair value (in dollars per share) | $ 22.95 | $ 32.69 |
Share-based compensation LTIP A
Share-based compensation LTIP Awards Linked To Other Performance Conditions (Details) - LTIP awards linked to other performance conditions - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period | 364,731 | 296,843 | 247,175 |
Granted | 0 | 129,603 | 120,399 |
Vested | (121,249) | (65,089) | (18,280) |
Increased above target (cancelled) (in shares) | 3,412 | 4,949 | (41,599) |
Forfeited | (24,247) | (1,575) | (10,852) |
Outstanding, end of period | 222,647 | 364,731 | 296,843 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 26.01 | $ 26.14 | $ 25.04 |
Granted (in dollars per share) | 0 | 25.18 | 26.89 |
Vested (in dollars per share) | 26.05 | 24.95 | 18.95 |
Increased above target (cancelled) (in dollars per share) | 26.89 | 26.70 | 24.97 |
Forfeited (in dollars per share) | 25.82 | 26.07 | 26.20 |
Outstanding, end of period (in dollars per share) | $ 26.02 | $ 26.01 | $ 26.14 |
Total weighted-average grant-date fair value | $ 0 | $ 3.3 | $ 3.2 |
Income taxes Additional Informa
Income taxes Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | 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% | |
Out-of-period tax benefit related to utilities | $ 2,700,000 | |||
Credit adjustments to interest expense on income taxes | $ 1,700,000 | 300,000 | ||
Amount of accrued interest related to uncertain tax positions | $ 100,000 | 0 | ||
Unrecognized tax benefits | 3,600,000 | 0 | 900,000 | $ 800,000 |
Out-of-period income tax benefit | 3,100,000 | |||
Expected increase in depreciation expense, amount | $ 117,000,000 | |||
Research tax credit, percent of cost of qualified research expenses | 20.00% | |||
Renewable energy investment tax credit, percent | 30.00% | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Income Tax Expense (Benefit) [Line Items] | ||||
Credit adjustments to interest expense on income taxes | 700,000 | 300,000 | ||
Amount of accrued interest related to uncertain tax positions | $ 100,000 | 100,000 | ||
Unrecognized tax benefits | $ 3,600,000 | $ 0 | $ 500,000 | $ 400,000 |
Income taxes Components of Inco
Income taxes Components of Income Taxes Attributable to Net Income for Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal | |||
Federal current taxes | $ 44,343 | $ (8,959) | $ (295) |
Federal deferred taxes | 36,664 | 91,412 | 73,473 |
Deferred tax credits, net | 318 | 0 | 224 |
Federal taxes | 81,325 | 82,453 | 73,402 |
State | |||
Current | 2,402 | (5,793) | (630) |
Deferred | 4,768 | 12,813 | 6,672 |
Deferred tax credits, net | 4,526 | 6,106 | 6,793 |
State taxes | 11,696 | 13,126 | 12,835 |
Federal and state taxes | 93,021 | 95,579 | 86,237 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Federal | |||
Federal current taxes | 0 | 1,108 | 1,313 |
Federal deferred taxes | 68,757 | 68,775 | 58,024 |
Deferred tax credits, net | 318 | 0 | 224 |
Federal taxes | 69,075 | 69,883 | 59,561 |
State | |||
Current | (1,048) | (9,436) | (3,720) |
Deferred | 6,869 | 14,172 | 6,483 |
Deferred tax credits, net | 4,526 | 6,106 | 6,793 |
State taxes | 10,347 | 10,842 | 9,556 |
Federal and state taxes | $ 79,422 | $ 80,725 | $ 69,117 |
Income taxes Income Tax Reconci
Income taxes Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 89,176 | $ 92,959 | $ 87,442 |
Increase (decrease) resulting from: | |||
State income taxes, net of effect on federal income taxes | 8,097 | 9,073 | 8,667 |
Other, net | (4,252) | (6,453) | (9,872) |
Federal and state taxes | $ 93,021 | $ 95,579 | $ 86,237 |
Effective income tax rate (as a percent) | 36.50% | 36.00% | 34.50% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 75,996 | $ 77,126 | $ 67,914 |
Increase (decrease) resulting from: | |||
State income taxes, net of effect on federal income taxes | 6,726 | 7,047 | 6,211 |
Other, net | (3,300) | (3,448) | (5,008) |
Federal and state taxes | $ 79,422 | $ 80,725 | $ 69,117 |
Effective income tax rate (as a percent) | 36.60% | 36.60% | 35.60% |
Income taxes Deferred Tax Asset
Income taxes Deferred Tax Assets and Liabilities Due to Book/Tax Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Net operating loss | $ 0 | $ 0 |
Other | 64,870 | 56,526 |
Total deferred tax assets | 64,870 | 56,526 |
Deferred tax liabilities | ||
Property, plant and equipment | 492,441 | 448,723 |
Repairs deduction | 104,081 | 86,408 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 34,261 | 33,795 |
Deferred RAM and RBA revenues | 26,400 | 32,889 |
Retirement benefits | 42,006 | 25,336 |
Other | 46,558 | 62,945 |
Total deferred tax liabilities | 745,747 | 690,096 |
Total deferred tax liabilities | 680,877 | 633,570 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax assets | ||
Net operating loss | 37,283 | 51,936 |
Other | 20,238 | 17,663 |
Total deferred tax assets | 57,521 | 69,599 |
Deferred tax liabilities | ||
Property, plant and equipment | 489,884 | 446,259 |
Repairs deduction | 104,081 | 86,408 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 34,261 | 33,795 |
Deferred RAM and RBA revenues | 26,400 | 32,889 |
Retirement benefits | 44,991 | 28,758 |
Other | 12,710 | 14,929 |
Total deferred tax liabilities | 712,327 | 643,038 |
Total deferred tax liabilities | $ 654,806 | $ 573,439 |
Income taxes Changes in Unrecog
Income taxes Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | $ 0 | $ 0.9 | $ 0.8 |
Additions based on tax positions taken during the year | 0 | 0 | 0 |
Reductions based on tax positions taken during the year | 0 | 0 | 0 |
Additions for tax positions of prior years | 3.6 | 0.1 | 0.5 |
Reductions for tax positions of prior years | $ 0 | 0 | (0.4) |
Settlements | (1) | 0 | |
Lapses of statute of limitations | $ 0 | 0 | 0 |
Unrecognized tax benefits, at the end of the period | 3.6 | 0 | 0.9 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | 0 | 0.5 | 0.4 |
Additions based on tax positions taken during the year | 0 | 0 | 0 |
Reductions based on tax positions taken during the year | 0 | 0 | 0 |
Additions for tax positions of prior years | 3.6 | 0.1 | 0.5 |
Reductions for tax positions of prior years | 0 | 0 | (0.4) |
Settlements | 0 | (0.6) | 0 |
Lapses of statute of limitations | 0 | 0 | 0 |
Unrecognized tax benefits, at the end of the period | $ 3.6 | $ 0 | $ 0.5 |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | $ 83,000 | $ 84,000 | $ 85,000 |
Income taxes paid | 75,000 | 47,000 | 18,000 |
Income taxes refunded | 55,000 | 24,000 | 4,000 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and other | 5,000 | 43,000 | (12,000) |
Common stock dividends reinvested in HEI common stock (financing) | 0 | 0 | 24,000 |
Loans transferred from held for investment to held for sale (investing to operating) | 0 | 0 | 25,000 |
Real estate acquired in settlement of loans (investing) | 1,000 | 3,000 | 4,000 |
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 5,000 | 0 | 0 |
Obligations to fund low income housing investments, net (operating) | 4,000 | 14,000 | 1,000 |
Electric utility property, plant and equipment | |||
AFUDC-equity | 6,928 | 6,771 | 5,561 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | 61,000 | 61,000 | 59,000 |
Income taxes paid | 13,000 | 6,000 | 6,000 |
Income taxes refunded | 12,000 | 8,000 | 32,000 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and other | 5,000 | 40,000 | (12,000) |
Electric utility property, plant and equipment | |||
AFUDC-equity | 6,928 | 6,771 | 5,561 |
Estimated fair value of noncash contributions in aid of construction | 3,000 | 3,000 | 5,000 |
Refinancing of long-term debt (financing) | $ 47 | $ 0 | $ 0 |
Regulatory restrictions on n129
Regulatory restrictions on net assets (Details) $ in Millions | Dec. 31, 2015USD ($) |
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 | $ 711 |
American Savings Bank (ASB) | |
Regulatory restrictions on net assets | |
Amount of net assets available for transfer | $ 141 |
Significant group concentrat130
Significant group concentrations of credit risk (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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 Va
Fair value measurements Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | ||
Available-for-sale investment securities | $ 820,648 | $ 550,394 |
Financial liabilities | ||
Short-term borrowings—other than bank | 103,063 | 118,972 |
Other bank borrowings | 328,582 | 290,656 |
Carrying or notional amount | ||
Financial assets | ||
Money market funds | 10 | 10 |
Available-for-sale investment securities | 820,648 | 550,394 |
Stock in Federal Home Loan Bank | 10,678 | 69,302 |
Loans receivable, net | 4,570,412 | 4,397,457 |
Mortgage servicing rights | 8,444 | 11,540 |
Bank-owned life insurance | 138,139 | 134,115 |
Derivative assets | 22,616 | 30,120 |
Financial liabilities | ||
Deposit liabilities | 5,025,254 | 4,623,415 |
Short-term borrowings—other than bank | 103,063 | 118,972 |
Other bank borrowings | 328,582 | 290,656 |
Long-term debt, net—other than bank | 1,586,546 | 1,506,546 |
Derivative liabilities | 23,269 | 32,043 |
Estimated fair value | ||
Financial assets | ||
Money market funds | 10 | 10 |
Available-for-sale investment securities | 820,648 | 550,394 |
Stock in Federal Home Loan Bank | 10,678 | 69,302 |
Loans receivable, net | 4,749,525 | 4,578,822 |
Mortgage servicing rights | 11,790 | 14,504 |
Bank-owned life insurance | 138,139 | 134,115 |
Derivative assets | 385 | 398 |
Financial liabilities | ||
Deposit liabilities | 5,024,500 | 4,623,773 |
Short-term borrowings—other than bank | 103,063 | 118,972 |
Other bank borrowings | 333,392 | 298,837 |
Long-term debt, net—other than bank | 1,669,087 | 1,622,736 |
Derivative liabilities | 30 | 114 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Derivative assets | 0 | |
Financial liabilities | ||
Derivative liabilities | 15 | 71 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Money market funds | 10 | 10 |
Available-for-sale investment securities | 820,648 | 550,394 |
Stock in Federal Home Loan Bank | 10,678 | 69,302 |
Loans receivable, net | 4,639 | 8,713 |
Bank-owned life insurance | 138,139 | 134,115 |
Derivative assets | 385 | 398 |
Financial liabilities | ||
Deposit liabilities | 5,024,500 | 4,623,773 |
Short-term borrowings—other than bank | 103,063 | 118,972 |
Other bank borrowings | 333,392 | 298,837 |
Long-term debt, net—other than bank | 1,669,087 | 1,622,736 |
Derivative liabilities | 15 | 43 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Loans receivable, net | 4,744,886 | 4,570,109 |
Mortgage servicing rights | 11,790 | 14,504 |
Hawaiian Electric Company, Inc. and Subsidiaries | Carrying or notional amount | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,286,546 | 1,206,546 |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,363,766 | 1,313,893 |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 2 | ||
Financial liabilities | ||
Long-term debt, net—other than bank | $ 1,363,766 | $ 1,313,893 |
Fair value measurements Fair132
Fair value measurements Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | $ 820,648 | $ 550,394 |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 607,689 | 430,834 |
U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 212,959 | |
Fair value measurements on a recurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 15 | 71 |
Fair value measurements on a recurring basis | Level 1 | Forward Contracts | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 15 | 71 |
Fair value measurements on a recurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 385 | 398 |
Derivative liabilities | 15 | 43 |
Fair value measurements on a recurring basis | Level 2 | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 384 | 393 |
Derivative liabilities | 0 | 3 |
Fair value measurements on a recurring basis | Level 2 | Forward Contracts | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 1 | 5 |
Derivative liabilities | 15 | 40 |
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 on a recurring basis | Level 2 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 820,648 | 550,394 |
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 | 607,689 | 430,834 |
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 | $ 212,959 | $ 119,560 |
Fair value measurements Fair133
Fair value measurements Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 4,749,525 | $ 4,578,822 |
Level 3 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 4,744,886 | 4,570,109 |
Fair value measurements on a nonrecurring basis | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 178 | 2,445 |
Real estate acquired in settlement of loans | 1,030 | 288 |
Mortgage servicing rights | 1,240 | |
Fair value measurements on a nonrecurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 178 | 2,445 |
Real estate acquired in settlement of loans | $ 1,030 | 288 |
Mortgage servicing rights | $ 1,240 |
Fair value measurements Quantit
Fair value measurements Quantitative Information About Level 3 Fair Value Measurements (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage servicing rights | Discounted cash flow | ||
Fair value measurements | ||
Fair value | $ 1,240 | |
Weighted average prepayment speed | 12.20% | |
Mortgage servicing rights | Discounted cash flow | Minimum | ||
Fair value measurements | ||
Prepayment speed | 6.70% | |
Mortgage servicing rights | Discounted cash flow | Maximum | ||
Fair value measurements | ||
Prepayment speed | 22.40% | |
Discount rate | 9.60% | |
Weighted average discount rate | 9.60% | |
Residential loan | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 50 | $ 2,297 |
Fair Value Assumptions, Selling Cost, Percent | 7.00% | 7.00% |
Appraised value, weighted average rate (as a percent) | 83.00% | |
Residential loan | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 39.00% | |
Residential loan | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 99.00% | |
Home equity line of credit | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 128 | $ 3 |
Fair Value Assumptions, Selling Cost, Percent | 7.00% | 7.00% |
Commercial loans | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 145 | |
Loans | ||
Fair value measurements | ||
Fair value | $ 178 | 2,445 |
Real estate acquired in settlement of loans | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 1,030 | $ 288 |
Fair Value Assumptions, Selling Cost, Percent | 7.00% | 7.00% |
Appraised value (as a percent) | 100.00% | 100.00% |
Appraised value, weighted average rate (as a percent) | 100.00% | 100.00% |
Fair value measurements Assets
Fair value measurements Assets Held in Trusts for Retirement Benefits (Details) - Fair value measurements on a recurring basis - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated fair value | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | $ 1,271 | $ 1,266 |
Cash, receivables and payables, net | 3 | (25) |
Total assets | 1,268 | 1,291 |
Estimated fair value | Pension benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 640 | 649 |
Estimated fair value | Pension benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 119 | 132 |
Estimated fair value | Pension benefits | Fixed income securities and public mutual funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 425 | 428 |
Estimated fair value | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 84 | 82 |
Estimated fair value | Other benefits | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 171 | 180 |
Cash, receivables and payables, net | 0 | (1) |
Total assets | 171 | 181 |
Estimated fair value | Other benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 92 | 99 |
Estimated fair value | Other benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 17 | 19 |
Estimated fair value | Other benefits | Fixed income securities and public mutual funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 48 | 49 |
Estimated fair value | Other benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 14 | 14 |
Level 1 | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 847 | 903 |
Level 1 | Pension benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 640 | 649 |
Level 1 | Pension benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 119 | 132 |
Level 1 | Pension benefits | Fixed income securities and public mutual funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 85 | 121 |
Level 1 | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 3 | 1 |
Level 1 | Other benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 154 | 164 |
Level 1 | Other benefits | Equity securities | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 92 | 99 |
Level 1 | Other benefits | Equity index funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 17 | 19 |
Level 1 | Other benefits | Fixed income securities and public mutual funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 41 | 43 |
Level 1 | Other benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 4 | 3 |
Level 2 | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 421 | 388 |
Level 2 | Pension benefits | Fixed income securities and public mutual funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 340 | 307 |
Level 2 | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 81 | 81 |
Level 2 | Other benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 17 | 17 |
Level 2 | Other benefits | Fixed income securities and public mutual funds | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 7 | 6 |
Level 2 | Other benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | 10 | 11 |
Level 3 | Pension benefits | ||
Fair value measurements on a recurring basis | ||
Total assets | 0 | 0 |
Level 3 | Pension benefits | Pooled and mutual funds and other | ||
Fair value measurements on a recurring basis | ||
Fair value of plan assets | $ 0 | $ 0 |
Other related-party transact136
Other related-party transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Hawaii Medical Service Association (HMSA) | Gross costs | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | $ 30 | $ 25 | $ 23 |
Hawaii Medical Service Association (HMSA) | Gross costs | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 23 | 20 | 18 |
Hawaii Medical Service Association (HMSA) | Net expense | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 21 | 18 | 17 |
Hawaii Medical Service Association (HMSA) | Net expense | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 14 | 13 | 12 |
Hawaii Dental Service (HDS) | Gross costs | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 3 | 3 | 3 |
Hawaii Dental Service (HDS) | Gross costs | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 2 | 2 | 2 |
Hawaii Dental Service (HDS) | Net expense | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 2 | 2 | 2 |
Hawaii Dental Service (HDS) | Net expense | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | $ 1 | $ 1 | $ 1 |
Quarterly information (unaud137
Quarterly information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $ 624,032 | $ 717,176 | $ 623,912 | $ 637,862 | $ 790,040 | $ 867,096 | $ 798,657 | $ 783,749 | $ 2,602,982 | $ 3,239,542 | $ 3,238,470 |
Operating income | 83,222 | 97,095 | 72,730 | 69,506 | 68,167 | 92,036 | 83,183 | 89,214 | 322,553 | 332,600 | 317,508 |
Net income | 42,793 | 51,144 | 35,491 | 32,339 | 33,726 | 48,279 | 41,754 | 46,260 | 161,767 | 170,019 | 163,599 |
Net income for common stock | $ 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | $ 33,253 | $ 47,808 | $ 41,281 | $ 45,787 | $ 159,877 | $ 168,129 | $ 161,709 |
Basic earnings per common share (in dollars per share) | $ 0.39 | $ 0.47 | $ 0.33 | $ 0.31 | $ 0.32 | $ 0.47 | $ 0.41 | $ 0.45 | $ 1.50 | $ 1.65 | $ 1.63 |
Diluted earnings per common share (in dollars per share) | 0.39 | 0.47 | 0.33 | 0.31 | 0.32 | 0.46 | 0.41 | 0.45 | 1.50 | 1.63 | 1.62 |
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) | 30.29 | 31.28 | 32.58 | 34.86 | 35 | 26.89 | 25.65 | 26.80 | 34.86 | 35 | |
Low end of range (in dollars per share) | $ 27.45 | $ 27.02 | $ 29.62 | $ 31.75 | $ 26.04 | $ 22.71 | $ 23.04 | $ 24.39 | $ 27.02 | $ 22.71 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenues | $ 555,434 | $ 648,127 | $ 558,163 | $ 573,442 | $ 725,267 | $ 803,565 | $ 738,429 | $ 720,062 | $ 2,335,166 | $ 2,987,323 | $ 2,980,172 |
Operating income | 67,662 | 82,657 | 66,161 | 57,636 | 58,878 | 76,156 | 70,068 | 70,666 | 274,116 | 275,768 | 245,513 |
Net income | 33,492 | 43,504 | 33,340 | 27,373 | 29,611 | 39,377 | 34,729 | 35,919 | 137,709 | 139,636 | 124,924 |
Net income for common stock | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 29,112 | $ 38,879 | $ 34,230 | $ 35,420 | $ 135,714 | $ 137,641 | $ 122,929 |
SCHEDULE I - CONDENSED FINAN138
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- BALANCE SHEETS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 300,478,000 | $ 175,542,000 | $ 220,036,000 | $ 219,662,000 |
Accounts receivable | 242,766,000 | 313,696,000 | ||
Property, plant and equipment, net | 4,377,658,000 | 4,148,774,000 | ||
Other assets | 488,635,000 | 542,523,000 | ||
Total assets | 11,790,196,000 | 11,185,142,000 | 10,340,906,000 | |
Liabilities | ||||
Accounts payable | 138,523,000 | 186,425,000 | ||
Long-term debt | 1,586,546,000 | 1,506,546,000 | ||
Other | 471,828,000 | 531,230,000 | ||
Total liabilities | 9,828,263,000 | 9,360,276,000 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,629,136,000 | 1,521,297,000 | ||
Retained earnings | 324,766,000 | 296,654,000 | 255,030,000 | 215,947,000 |
Accumulated other comprehensive loss | (26,262,000) | (27,378,000) | (16,750,000) | (26,423,000) |
Total shareholders' equity | 1,927,640,000 | 1,790,573,000 | 1,726,406,000 | 1,593,008,000 |
Total capitalization and liabilities | $ 11,790,196,000 | $ 11,185,142,000 | ||
Aggregate principal payments | ||||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, issued shares | 107,460,406 | 102,565,266 | ||
Common stock, outstanding shares | 107,460,406 | 102,565,266 | ||
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 .75% (effective October 8, 2015), due 2017 | LIBOR | ||||
Aggregate principal payments | ||||
Line of credit facility basis point spread (as a percent) | 0.75% | |||
HEI senior note 4.41%, due 2016 | ||||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 4.41% | 4.41% | ||
HEI senior note 5.67%, due 2021 | ||||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 5.67% | 5.67% | ||
HEI senior note 3.99%, due 2023 | ||||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 3.99% | 3.99% | ||
Hawaiian Electric Industries, Inc. | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | $ 55,116,000 | $ 276,000 | $ 571,000 | $ 18,021,000 |
Accounts receivable | 5,459,000 | 1,991,000 | ||
Property, plant and equipment, net | 4,514,000 | 4,917,000 | ||
Deferred income tax assets | 16,715,000 | 15,922,000 | ||
Other assets | 11,984,000 | 11,070,000 | ||
Investments in subsidiaries, at equity | 2,293,679,000 | 2,223,597,000 | ||
Total assets | 2,387,467,000 | 2,257,773,000 | ||
Liabilities | ||||
Accounts payable | 1,254,000 | 1,993,000 | ||
Interest payable | 2,450,000 | 2,583,000 | ||
Notes payable to subsidiaries | 5,946,000 | 7,857,000 | ||
Commercial paper | 103,063,000 | 118,972,000 | ||
Long-term debt | 300,000,000 | 300,000,000 | ||
Retirement benefits liability | 31,704,000 | 32,030,000 | ||
Other | 15,410,000 | 3,765,000 | ||
Total liabilities | 459,827,000 | 467,200,000 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,629,136,000 | 1,521,297,000 | ||
Retained earnings | 324,766,000 | 296,654,000 | ||
Accumulated other comprehensive loss | (26,262,000) | (27,378,000) | ||
Total shareholders' equity | 1,927,640,000 | 1,790,573,000 | ||
Total capitalization and liabilities | 2,387,467,000 | $ 2,257,773,000 | ||
Aggregate principal payments | ||||
2,016 | 75,000,000 | |||
2,017 | 125,000,000 | |||
2,018 | 0 | |||
2,019 | 0 | |||
2,020 | $ 0 | |||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, issued shares | 107,460,406 | 102,565,266 | ||
Common stock, outstanding shares | 107,460,406 | 102,565,266 | ||
Hawaiian Electric Industries, Inc. | HEI Term loan LIBOR .75% (effective October 8, 2015), due 2017 | ||||
Liabilities | ||||
Long-term debt | $ 125,000,000 | $ 125,000,000 | ||
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% |
SCHEDULE I - CONDENSED FINAN139
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- STATEMENT OF INCOME AND CHANGES IN SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expenses: | |||||||||||
Depreciation of property, plant and equipment | $ 183,966 | $ 172,762 | $ 160,061 | ||||||||
Interest expense, net | 88,476 | 87,160 | 85,556 | ||||||||
Income before income taxes | 254,788 | 265,598 | 249,836 | ||||||||
Income tax benefits | (93,021) | (95,579) | (86,237) | ||||||||
Net income (loss) | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | $ 33,726 | $ 48,279 | $ 41,754 | $ 46,260 | 161,767 | 170,019 | 163,599 |
Hawaiian Electric Industries, Inc. | |||||||||||
Revenues | |||||||||||
Revenues | 327 | 303 | 288 | ||||||||
Equity in income of subsidiaries | 190,033 | 188,727 | 180,552 | ||||||||
Expenses: | |||||||||||
Operating, administrative and general | 34,350 | 20,921 | 16,063 | ||||||||
Depreciation of property, plant and equipment | 576 | 575 | 596 | ||||||||
Taxes, other than income taxes | 440 | 469 | 497 | ||||||||
Interest expense, net | 10,788 | 11,599 | 16,207 | ||||||||
Income before income taxes | 144,206 | 155,466 | 147,477 | ||||||||
Income tax benefits | 15,671 | 13,047 | 14,232 | ||||||||
Net income (loss) | $ 159,877 | $ 168,513 | $ 161,709 |
SCHEDULE I - CONDENSED FINAN140
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- STATEMENT OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 355,880,000 | $ 325,420,000 | $ 361,568,000 |
Cash flows from investing activities | |||
Capital expenditures | (363,804,000) | (364,826,000) | (389,438,000) |
Net cash used in investing activities | (705,724,000) | (592,449,000) | (598,182,000) |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (15,909,000) | 13,490,000 | 21,789,000 |
Proceeds from issuance of long-term debt | 80,000,000 | 125,000,000 | 286,000,000 |
Repayment of long-term debt | 0 | (111,400,000) | (216,000,000) |
Excess tax benefits from share-based payment arrangements | 978,000 | 277,000 | 430,000 |
Net proceeds from issuance of common stock | 104,435,000 | 26,898,000 | 55,086,000 |
Common stock dividends | (131,765,000) | (126,458,000) | (98,383,000) |
Other | (833,000) | (456,000) | (1,187,000) |
Net cash used in financing activities | 474,780,000 | 222,535,000 | 236,988,000 |
Net increase (decrease) in cash and equivalents | 124,936,000 | (44,494,000) | 374,000 |
Cash and cash equivalents, January 1 | 175,542,000 | 220,036,000 | 219,662,000 |
Cash and cash equivalents, December 31 | 300,478,000 | 175,542,000 | 220,036,000 |
Issuance of common stock: Dividend reinvestment and stock purchase plan | 2,461,000 | 41,692,000 | |
Common stock | |||
Cash flows from financing activities | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 2,461,000 | 41,692,000 | |
Hawaiian Electric Industries, Inc. | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 97,141,000 | 100,794,000 | 82,274,000 |
Cash flows from investing activities | |||
Capital expenditures | (173,000) | (74,000) | (201,000) |
Investments in subsidiaries | 0 | (40,000,000) | (78,500,000) |
Net cash used in investing activities | (173,000) | (40,074,000) | (78,701,000) |
Cash flows from financing activities | |||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | 87,000 | (222,000) | 56,000 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (15,909,000) | 13,490,000 | 21,788,000 |
Proceeds from issuance of long-term debt | 0 | 125,000,000 | 50,000,000 |
Repayment of long-term debt | 0 | (100,000,000) | (50,000,000) |
Excess tax benefits from share-based payment arrangements | 978,000 | 277,000 | 430,000 |
Net proceeds from issuance of common stock | 104,435,000 | 26,898,000 | 55,086,000 |
Common stock dividends | (131,765,000) | (126,458,000) | (98,383,000) |
Other | 46,000 | 0 | 0 |
Net cash used in financing activities | (42,128,000) | (61,015,000) | (21,023,000) |
Net increase (decrease) in cash and equivalents | 54,840,000 | (295,000) | (17,450,000) |
Cash and cash equivalents, January 1 | 276,000 | 571,000 | 18,021,000 |
Cash and cash equivalents, December 31 | 55,116,000 | 276,000 | 571,000 |
Cash dividends received from subsidiaries | 121,000,000 | 124,000,000 | 122,000,000 |
Hawaiian Electric Industries, Inc. | Common stock | |||
Cash flows from financing activities | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 0 | 0 | 24,000,000 |
Hawaiian Electric Industries, Inc. | ASB Hawaii, Inc. | Consolidated subsidiary | |||
Cash flows from financing activities | |||
Accounts receivable reduction | 2,300,000 | 2,400,000 | 2,300,000 |
HEI notes payable increase to ASHI | $ 300,000 | $ 2,500,000 | $ 2,500,000 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for uncollectible accounts – electric utility | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | $ 1,959 | $ 2,329 | $ 2,148 |
Charged to costs and expenses | 3,653 | 1,384 | 3,812 |
Charged to other accounts | 977 | 1,613 | 1,943 |
Deductions | 4,890 | 3,367 | 5,574 |
Balance at end of period | 1,699 | 1,959 | 2,329 |
Allowance for uncollectible interest – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 1,514 | 1,661 | 3,166 |
Charged to other accounts | 165 | 0 | 0 |
Deductions | 0 | 147 | 1,505 |
Balance at end of period | 1,679 | 1,514 | 1,661 |
Allowance for losses for loans receivable – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 45,618 | 40,116 | 41,985 |
Charged to costs and expenses | 6,275 | 6,126 | 1,507 |
Charged to other accounts | 4,571 | 4,926 | 4,826 |
Deductions | 6,426 | 5,550 | 8,202 |
Balance at end of period | 50,038 | 45,618 | 40,116 |
Allowance for mortgage-servicing assets – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 209 | 251 | 498 |
Charged to costs and expenses | 0 | 53 | 0 |
Charged to other accounts | (205) | 0 | (60) |
Deductions | 4 | 95 | 187 |
Balance at end of period | 0 | 209 | 251 |
Deferred tax valuation allowance – HEI | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 45 | 278 | 278 |
Charged to costs and expenses | 9 | 17 | 0 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 0 | 250 | 0 |
Balance at end of period | $ 54 | $ 45 | $ 278 |