Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 13, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
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 | $ 3,547,453,796 | ||
Entity Common Stock, Shares Outstanding | 108,745,265 | ||
Document Fiscal Year Focus | 2,016 | ||
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, 2016 | ||
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 | 16,019,785 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Revenues | $ 2,380,654 | $ 2,602,982 | $ 3,239,542 |
Expenses | |||
Total expenses | 2,032,479 | 2,280,429 | 2,906,942 |
Operating income (loss) | |||
Operating income | 348,175 | 322,553 | 332,600 |
Merger termination fee | 90,000 | 0 | 0 |
Interest expense, net – other than on deposit liabilities and other bank borrowings | (75,803) | (77,150) | (76,352) |
Allowance for borrowed funds used during construction | 3,144 | 2,457 | 2,579 |
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 |
Income before income taxes | 373,841 | 254,788 | 265,598 |
Income taxes | 123,695 | 93,021 | 95,579 |
Net income | 250,146 | 161,767 | 170,019 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | $ 248,256 | $ 159,877 | $ 168,129 |
Basic earnings per common share (in dollars per share) | $ 2.30 | $ 1.50 | $ 1.65 |
Diluted earnings per common share (in dollars per share) | 2.29 | 1.50 | 1.63 |
Dividends per common share (in dollars per share) | $ 1.24 | $ 1.24 | $ 1.24 |
Weighted-average number of common shares outstanding (in shares) | 108,102 | 106,418 | 101,968 |
Net effect of potentially dilutive shares (in shares) | 207 | 303 | 969 |
Adjusted weighted-average shares (in shares) | 108,309 | 106,721 | 102,937 |
Electric utility | |||
Revenues | |||
Revenues | $ 2,094,368 | $ 2,335,166 | $ 2,987,323 |
Expenses | |||
Total expenses | 1,809,900 | 2,061,050 | 2,711,555 |
Operating income (loss) | |||
Operating income | 284,468 | 274,116 | 275,768 |
Income before income taxes | 229,113 | 217,131 | 220,361 |
Income taxes | 84,801 | 79,422 | 80,725 |
Net income | 144,312 | 137,709 | 139,636 |
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 |
Net income for common stock | 142,317 | 135,714 | 137,641 |
Bank | |||
Revenues | |||
Revenues | 285,924 | 267,733 | 252,497 |
Expenses | |||
Total expenses | 198,572 | 183,921 | 173,202 |
Operating income (loss) | |||
Operating income | 87,352 | 83,812 | 79,295 |
Income before income taxes | 87,352 | 83,812 | 79,295 |
Income taxes | 30,073 | 29,082 | 27,994 |
Net income | 57,279 | 54,730 | 51,301 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income for common stock | 57,279 | 54,730 | 51,301 |
Other | |||
Revenues | |||
Revenues | 362 | 83 | (278) |
Expenses | |||
Total expenses | 24,007 | 35,458 | 22,185 |
Operating income (loss) | |||
Operating income | (23,645) | (35,375) | (22,463) |
Income before income taxes | 57,376 | (46,155) | (34,058) |
Income taxes | 8,821 | (15,483) | (13,140) |
Net income | 48,555 | (30,672) | (20,918) |
Preferred stock dividends of subsidiaries | (105) | (105) | (105) |
Net income for common stock | $ 48,660 | $ (30,567) | $ (20,813) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income for common stock | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | $ 248,256 | $ 159,877 | $ 168,129 |
Net unrealized gains (losses) on available-for sale investment securities: | |||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $3,763, $1,541 and $(3,856) for 2016, 2015 and 2014, respectively | (5,699) | (2,334) | 5,840 | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $238, nil and $1,132 for 2016, 2015 and 2014, respectively | (360) | 0 | (1,715) | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281) | 0 | 0 | ||||||||
Less: reclassification adjustment to net income, net of (taxes) benefit of $(76), $150 and $150 for 2016, 2015 and 2014, respectively | (119) | 235 | 236 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (43,510) | 5,889 | (234,166) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 14,518 | 22,465 | 11,344 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139) | 207,833 | ||||||||
Other comprehensive income (loss), net of taxes | (6,867) | 1,116 | (10,628) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 241,389 | $ 160,993 | $ 157,501 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on securities arising during the period, taxes | $ (3,763) | $ (1,541) | $ 3,856 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 238 | 0 | 1,132 |
Foreign currency hedge net unrealized loss, tax benefits | (179) | 0 | 0 |
Less: reclassification adjustment to net income, net of tax benefits of $150, $150 and $150 for 2015, 2014 and 2013, respectively | 76 | (150) | (150) |
Net gains (losses) arising during the period, tax benefits | (27,703) | 3,753 | (149,364) |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (9,267) | (14,344) | (7,245) |
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 | $ (18,206) | $ 16,011 | $ (132,373) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 278,452 | $ 300,478 |
Accounts receivable and unbilled revenues, net | 237,950 | 242,766 |
Available-for-sale investment securities | 1,105,182 | 820,648 |
Stock in Federal Home Loan Bank, at cost | 11,218 | 10,678 |
Loans receivable held for investment, net | 4,683,160 | 4,565,781 |
Loans held for sale, at lower of cost or fair value | 18,817 | 4,631 |
Property, plant and equipment, net | ||
Land | 97,423 | 90,890 |
Plant and equipment | 6,727,935 | 6,444,214 |
Construction in progress | 222,455 | 181,873 |
Property, plant and equipment, gross | 7,047,813 | 6,716,977 |
Less – accumulated depreciation | (2,444,348) | (2,339,319) |
Total property, plant and equipment, net | 4,603,465 | 4,377,658 |
Regulatory assets | 957,451 | 896,731 |
Other | 447,621 | 480,457 |
Goodwill | 82,190 | 82,190 |
Total assets | 12,425,506 | 11,782,018 |
Liabilities | ||
Accounts payable | 143,279 | 138,523 |
Interest and dividends payable | 25,225 | 26,042 |
Deposit liabilities | 5,548,929 | 5,025,254 |
Short-term borrowings—other than bank | 0 | 103,063 |
Other bank borrowings | 192,618 | 328,582 |
Long-term debt, net—other than bank | 1,619,019 | 1,578,368 |
Deferred income taxes | 728,806 | 680,877 |
Regulatory liabilities | 410,693 | 371,543 |
Contributions in aid of construction | 543,525 | 506,087 |
Defined benefit pension and other postretirement benefit plans liability | 638,854 | 589,918 |
Other | 473,512 | 471,828 |
Total liabilities | 10,324,460 | 9,820,085 |
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: 108,583,413 shares and 107,460,406 shares at December 31, 2016 and 2015, respectively | 1,660,910 | 1,629,136 |
Retained earnings | 438,972 | 324,766 |
Accumulated other comprehensive loss, net of tax benefits | ||
Net unrealized losses on securities | (7,931) | (1,872) |
Unrealized losses on derivatives | (454) | (54) |
Retirement benefit plans | (24,744) | (24,336) |
Accumulated other comprehensive loss, net of tax benefits | (33,129) | (26,262) |
Total shareholders’ equity | 2,066,753 | 1,927,640 |
Total capitalization and liabilities | $ 12,425,506 | $ 11,782,018 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
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 | 108,583,413 | 107,460,406 |
Common stock, outstanding shares | 108,583,413 | 107,460,406 |
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, 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 | 102,565,000 | |||
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 | ||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | $ 248,256 | 248,256 | ||
Other comprehensive income (loss), net of tax benefits | (6,867) | (6,867) | ||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 26,844 | $ 26,844 | ||
Issuance of common stock: Dividend reinvestment and stock purchase plan (in shares) | 859,000 | |||
Issuance of common stock: Retirement savings and other plans | 9,298 | $ 9,298 | ||
Issuance of common stock: Retirement savings and other plans (in shares) | 264,000 | |||
Issuance of common stock: Expenses and other, net | (4,368) | $ (4,368) | ||
Common stock dividends | (134,050) | (134,050) | ||
Ending Balance at Dec. 31, 2016 | $ 2,066,753 | $ 1,660,910 | $ 438,972 | $ (33,129) |
Balance (in shares) at Dec. 31, 2016 | 108,583,413 | 108,583,000 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 250,146 | $ 161,767 | $ 170,019 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 194,273 | 183,966 | 172,762 |
Other amortization | 10,473 | 11,619 | 10,282 |
Provision for loan losses | 16,763 | 6,275 | 6,126 |
Impairment of utility assets | 0 | 6,021 | 1,866 |
Loans receivable originated and purchased, held for sale | (236,769) | (268,279) | (155,755) |
Proceeds from sale of loans receivable, held for sale | 236,062 | 275,296 | 155,030 |
Deferred income taxes | 47,118 | 41,432 | 104,225 |
Share-based compensation expense | 4,789 | 6,542 | 9,287 |
Excess tax benefits from share-based payment arrangements | (404) | (978) | (277) |
Allowance for equity funds used during construction | (8,325) | (6,928) | (6,771) |
Other | (12,422) | 1,672 | (280) |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable and unbilled revenues, net | (898) | 62,304 | 33,089 |
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 |
Increase in regulatory assets | (18,273) | (24,182) | (17,000) |
Decrease in accounts, interest and dividends payable | (9,643) | (52,663) | (67,189) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 39,109 | (42,596) | (39,091) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,587 | 852 | 22,251 |
Change in other assets and liabilities | (23,118) | (41,070) | (101,195) |
Net cash provided by operating activities | 495,254 | 355,880 | 325,420 |
Cash flows from investing activities | |||
Available-for-sale investment securities purchased | (533,956) | (429,262) | (183,778) |
Principal repayments on available-for-sale investment securities | 219,845 | 153,271 | 91,013 |
Proceeds from sale of available-for-sale investment securities | 16,423 | 0 | 79,564 |
Purchase of stock from Federal Home Loan Bank | (7,773) | (1,600) | 0 |
Redemption of stock from Federal Home Loan Bank | 7,233 | 60,223 | 23,244 |
Net increase in loans held for investment | (194,042) | (181,343) | (283,810) |
Proceeds from sale of commercial loans | 52,299 | 0 | 0 |
Proceeds from sale of real estate acquired in settlement of loans | 829 | 1,329 | 3,213 |
Proceeds from sale of real estate held for sale | 1,764 | 7,283 | 0 |
Capital expenditures | (330,043) | (363,804) | (364,826) |
Contributions in aid of construction | 30,100 | 40,239 | 41,806 |
Other | 856 | 7,940 | 1,125 |
Net cash used in investing activities | (736,465) | (705,724) | (592,449) |
Cash flows from financing activities | |||
Net increase in deposit liabilities | 523,675 | 401,839 | 250,938 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (103,063) | (15,909) | 13,490 |
Net increase (decrease) in retail repurchase agreements | (43,601) | 37,925 | (9,465) |
Proceeds from other bank borrowings | 180,835 | 50,000 | 130,601 |
Repayments of other bank borrowings | (272,902) | (50,000) | (75,000) |
Proceeds from issuance of long-term debt | 115,000 | 80,000 | 125,000 |
Repayment of long-term debt | (75,000) | 0 | (111,400) |
Excess tax benefits from share-based payment arrangements | 404 | 978 | 277 |
Net proceeds from issuance of common stock | 13,220 | 104,435 | 26,898 |
Common stock dividends | (117,274) | (131,765) | (126,458) |
Preferred stock dividends of subsidiaries | (1,890) | (1,890) | (1,890) |
Other | (219) | (833) | (456) |
Net cash used in financing activities | 219,185 | 474,780 | 222,535 |
Net increase (decrease) in cash and equivalents | (22,026) | 124,936 | (44,494) |
Cash and cash equivalents, January 1 | 300,478 | 175,542 | 220,036 |
Cash and cash equivalents, December 31 | $ 278,452 | $ 300,478 | $ 175,542 |
Consolidated Statements of In10
Consolidated Statements of Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 624,032 | $ 717,176 | $ 623,912 | $ 637,862 | $ 2,380,654 | $ 2,602,982 | $ 3,239,542 |
Expenses | |||||||||||
Total expenses | 2,032,479 | 2,280,429 | 2,906,942 | ||||||||
Operating income | 88,427 | 105,442 | 85,455 | 68,851 | 83,222 | 97,095 | 72,730 | 69,506 | 348,175 | 322,553 | 332,600 |
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 | ||||||||
Allowance for borrowed funds used during construction | 3,144 | 2,457 | 2,579 | ||||||||
Income before income taxes | 373,841 | 254,788 | 265,598 | ||||||||
Income taxes | 123,695 | 93,021 | 95,579 | ||||||||
Net income | 45,107 | 127,613 | 44,601 | 32,825 | 42,793 | 51,144 | 35,491 | 32,339 | 250,146 | 161,767 | 170,019 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 44,634 | 127,142 | 44,128 | 32,352 | 42,320 | 50,673 | 35,018 | 31,866 | 248,256 | 159,877 | 168,129 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Revenues | 544,668 | 572,253 | 495,395 | 482,052 | 555,434 | 648,127 | 558,163 | 573,442 | 2,094,368 | 2,335,166 | 2,987,323 |
Expenses | |||||||||||
Fuel oil | 454,704 | 654,600 | 1,131,685 | ||||||||
Purchased power | 562,740 | 594,096 | 722,008 | ||||||||
Other operation and maintenance | 405,533 | 413,089 | 410,612 | ||||||||
Depreciation | 187,061 | 177,380 | 166,387 | ||||||||
Taxes, other than income taxes | 199,862 | 221,885 | 280,863 | ||||||||
Total expenses | 1,809,900 | 2,061,050 | 2,711,555 | ||||||||
Operating income | 68,644 | 89,812 | 70,686 | 55,326 | 67,662 | 82,657 | 66,161 | 57,636 | 284,468 | 274,116 | 275,768 |
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 | ||||||||
Interest expense and other charges, net | (66,824) | (66,370) | (64,757) | ||||||||
Allowance for borrowed funds used during construction | 3,144 | 2,457 | 2,579 | ||||||||
Income before income taxes | 229,113 | 217,131 | 220,361 | ||||||||
Income taxes | 84,801 | 79,422 | 80,725 | ||||||||
Net income | 34,618 | 47,472 | 36,356 | 25,866 | 33,492 | 43,504 | 33,340 | 27,373 | 144,312 | 137,709 | 139,636 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 143,397 | 136,794 | 138,721 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 142,317 | $ 135,714 | $ 137,641 |
Consolidated Statements of Co11
Consolidated Statements of Comprehensive Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income for common stock | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | $ 248,256 | $ 159,877 | $ 168,129 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281) | 0 | 0 | ||||||||
Less: reclassification adjustment to net income, net of taxes of $110, nil and nil for 2016, 2015 and 2014, respectively | (119) | 235 | 236 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively | (43,510) | 5,889 | (234,166) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively | 14,518 | 22,465 | 11,344 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139) | 207,833 | ||||||||
Other comprehensive income (loss), net of taxes | (6,867) | 1,116 | (10,628) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 241,389 | 160,993 | 157,501 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Net income for common stock | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | 142,317 | 135,714 | 137,641 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281) | 0 | 0 | ||||||||
Less: reclassification adjustment to net income, net of taxes of $110, nil and nil for 2016, 2015 and 2014, respectively | (173) | 0 | 0 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively | (42,631) | 5,638 | (218,608) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively | 13,254 | 20,381 | 10,212 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139) | 207,833 | ||||||||
Other comprehensive income (loss), net of taxes | (1,247) | 880 | (563) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 141,070 | $ 136,594 | $ 137,078 |
Consolidated Statements of Co12
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign currency hedge net unrealized loss, tax benefits | $ (179) | $ 0 | $ 0 |
Reclassification adjustment to net income, tax expense | 76 | (150) | (150) |
Net gains (losses) arising during the period, tax benefits | 27,703 | (3,753) | 149,364 |
Amortization of transition obligation, prior service credit and net losses recognized during the period, tax benefits | 9,267 | 14,344 | 7,245 |
Reclassification adjustment for impact of D&Os of the PUC (expense) benefits | 18,206 | (16,011) | 132,373 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Foreign currency hedge net unrealized loss, tax benefits | (179) | 0 | 0 |
Reclassification adjustment to net income, tax expense | 110 | 0 | 0 |
Retirement benefit plans (expense) benefits | 0 | 0 | 0 |
Net gains (losses) arising during the period, tax benefits | 27,153 | (3,590) | 139,236 |
Amortization of transition obligation, prior service credit and net losses recognized during the period, tax benefits | 8,442 | 12,981 | 6,504 |
Reclassification adjustment for impact of D&Os of the PUC (expense) benefits | $ (18,206) | $ 16,011 | $ (132,373) |
Consolidated Balance Sheets - H
Consolidated Balance Sheets - HECO - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment, net | ||
Total property, plant and equipment, net | $ 4,603,465 | $ 4,377,658 |
Assets, Current [Abstract] | ||
Total assets | 12,425,506 | 11,782,018 |
Capitalization and liabilities | ||
Common stock equity | 1,660,910 | 1,629,136 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 |
Commitments and contingencies | ||
Liabilities | ||
Interest and dividends payable | 25,225 | 26,042 |
Deferred credits and other liabilities | ||
Deferred income taxes | 728,806 | 680,877 |
Contributions in aid of construction | 543,525 | 506,087 |
Total capitalization and liabilities | 12,425,506 | 11,782,018 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Property, plant and equipment, net | ||
Land | 53,153 | 52,792 |
Plant and equipment | 6,605,732 | 6,315,698 |
Less accumulated depreciation | (2,369,282) | (2,266,004) |
Construction in progress | 211,742 | 175,309 |
Utility property, plant and equipment, net | 4,501,345 | 4,277,795 |
Non-utilities, Property, Plant and Equipment, Net | 7,407 | 7,272 |
Total property, plant and equipment, net | 4,508,752 | 4,285,067 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | 74,286 | 24,449 |
Customer accounts receivable, net | 123,688 | 132,778 |
Accrued unbilled revenues, net | 91,693 | 84,509 |
Other accounts receivable, net | 5,233 | 10,408 |
Fuel oil stock, at average cost | 66,430 | 71,216 |
Materials and supplies, at average cost | 53,679 | 54,429 |
Prepayments and other | 23,100 | 36,640 |
Regulatory assets | 66,032 | 72,231 |
Total current assets | 504,141 | 486,660 |
Regulatory assets | 891,419 | 824,500 |
Unamortized debt expense | 208 | 497 |
Other | 70,908 | 75,486 |
Total other long-term assets | 962,535 | 900,483 |
Total assets | 5,975,428 | 5,672,210 |
Capitalization and liabilities | ||
Common stock equity | 1,799,787 | 1,728,325 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Long-term debt, net | 1,319,260 | 1,278,702 |
Total capitalization | 3,153,340 | 3,041,320 |
Liabilities | ||
Accounts payable | 117,814 | 114,846 |
Interest and dividends payable | 22,838 | 23,111 |
Taxes accrued | 172,730 | 191,084 |
Regulatory liabilities | 3,762 | 2,204 |
Other | 55,221 | 54,079 |
Total current liabilities | 372,365 | 385,324 |
Deferred credits and other liabilities | ||
Deferred income taxes | 733,659 | 654,806 |
Regulatory liabilities | 406,931 | 369,339 |
Unamortized tax credits | 88,961 | 84,214 |
Defined benefit pension and other postretirement benefit plans liability | 599,726 | 552,974 |
Other | 76,921 | 78,146 |
Total deferred credits and other liabilities | 1,906,198 | 1,739,479 |
Contributions in aid of construction | 543,525 | 506,087 |
Total capitalization and liabilities | $ 5,975,428 | $ 5,672,210 |
Consolidated Balance Sheets -14
Consolidated Balance Sheets - HECO (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on other property, plant and equipment | $ 1,232 | $ 1,229 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - HECO - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock equity | ||
Retained earnings | $ 438,972,000 | $ 324,766,000 |
Accumulated other comprehensive income, net of taxes - Retirement benefit plans | 24,744,000 | 24,336,000 |
Accumulated other comprehensive loss, net of tax benefits | (33,129,000) | (26,262,000) |
Total shareholders’ equity | 2,066,753,000 | 1,927,640,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | $ 34,293,000 | $ 34,293,000 |
6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 | ||
Common stock equity | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Hawaiian Electric Company, Inc (HECO) | ||
Common stock equity | ||
Total shareholders’ equity | $ 1,799,787,000 | $ 1,728,325,000 |
Other long-term debt – unsecured: | ||
Long-term debt, net | 915,437,000 | 875,163,000 |
Total capitalization | $ 2,737,517,000 | $ 2,625,781,000 |
Hawaiian Electric Company, Inc (HECO) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Common stock equity | ||
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 | $ 40,000,000 |
Hawaiian Electric Company, Inc (HECO) | 6.50%, series 2009, due 2039 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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) | Hawaiian Electric, 4.54%, Series 2016A, due 2046 | ||
Common stock equity | ||
Debt instrument, stated interest rate (as a percent) | 4.54% | 4.54% |
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 40,000,000 | $ 0 |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 5.23%, Series 2015A, due 2045 | ||
Common stock equity | ||
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 | $ 50,000,000 |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.45%, Series 2013A, due 2022 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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) | Hawaiian Electric, 4.72%, Series 2012D, due 2029 | ||
Common stock equity | ||
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) | Hawaiian Electric, 5.39%, Series 2012E, due 2042 | ||
Common stock equity | ||
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) | Hawaiian Electric, 4.53%, Series 2012F, due 2032 | ||
Common stock equity | ||
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 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 | ||
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 | 291,291,000 | 292,702,000 |
Other long-term debt – unsecured: | ||
Long-term debt, net | 213,703,000 | 213,580,000 |
Total capitalization | $ 511,994,000 | $ 513,282,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Common stock equity | ||
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 | $ 5,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 6.50%, series 2009, due 2039 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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) | Hawaii Electric Light, 5.23%, Series 2015A, due 2045 | ||
Common stock equity | ||
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 | $ 25,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Hawaii Electric Light, 3.83%, Series 2013A, due 2020 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 |
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 |
Maui Electric Company, Limited (MECO) | ||
Common stock equity | ||
Total shareholders’ equity | 259,554,000 | 263,725,000 |
Other long-term debt – unsecured: | ||
Long-term debt, net | 190,120,000 | 189,959,000 |
Total capitalization | $ 454,674,000 | $ 458,684,000 |
Maui Electric Company, Limited (MECO) | 3.25% Refunding Series 2015 SPRBs due 2025 | ||
Common stock equity | ||
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 | $ 2,000,000 |
Maui Electric Company, Limited (MECO) | 4.60%, refunding series 2007B, due 2026 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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) | Maui Electric, 5.23%, Series 2015A, due 2045 | ||
Common stock equity | ||
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 | $ 5,000,000 |
Maui Electric Company, Limited (MECO) | Maui Electric, 4.84%, Series 2013A, due 2027 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 | ||
Common stock equity | ||
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 |
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 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock equity | ||
Common stock of $6 2/3 par value, Authorized: 50,000,000 shares. Outstanding: 16,019,785 shares and 15,805327 shares at December 31, 2016 and 2015, respectively | 106,818,000 | 105,388,000 |
Premium on capital stock | 601,491,000 | 578,930,000 |
Retained earnings | 1,091,800,000 | 1,043,082,000 |
Accumulated other comprehensive income, net of taxes - Unrealized losses on derivatives | (454,000) | 0 |
Accumulated other comprehensive income, net of taxes - Retirement benefit plans | (132,000) | (925,000) |
Accumulated other comprehensive loss, net of tax benefits | (322,000) | 925,000 |
Total shareholders’ equity | $ 1,799,787,000 | $ 1,728,325,000 |
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 | 864,546,000 | 824,546,000 |
Total long-term debt | 1,326,546,000 | 1,286,546,000 |
Less unamortized discount | 7,286,000 | 7,844,000 |
Long-term debt, net | 1,319,260,000 | 1,278,702,000 |
Total capitalization | 3,153,340,000 | 3,041,320,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 813,000,000 | $ 773,000,000 |
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 |
Consolidated Statements of Ca16
Consolidated Statements of Capitalization - HECO (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 108,583,413 | 107,460,406 |
6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 | ||
Debt instrument, stated interest rate (as a percent) | 6.50% | 6.50% |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock, par value (in dollars per share) | $ 6.667 | $ 6.667 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, outstanding shares | 160,196,785 | 15,805,327 |
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) | 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) | Hawaiian Electric, 4.72%, Series 2012D, due 2029 | ||
Debt instrument, stated interest rate (as a percent) | 4.72% | 4.72% |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 5.39%, Series 2012E, due 2042 | ||
Debt instrument, stated interest rate (as a percent) | 5.39% | 5.39% |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.53%, Series 2012F, due 2032 | ||
Debt instrument, stated interest rate (as a percent) | 4.53% | 4.53% |
Hawaiian Electric Company, Inc (HECO) | Hawaiian Electric, 4.54%, Series 2016A, due 2046 | ||
Debt instrument, stated interest rate (as a percent) | 4.54% | 4.54% |
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) | 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) | 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 Ch17
Consolidated Statements of Changes in Common Stock Equity - HECO - USD ($) $ in Thousands | Total | Retained earnings | Accumulated other comprehensive income (loss) | Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Electric Company, Inc. and SubsidiariesCommon stock | Hawaiian Electric Company, Inc. and SubsidiariesPremium on capital stock | Hawaiian Electric Company, Inc. and SubsidiariesRetained earnings | Hawaiian Electric Company, Inc. and SubsidiariesAccumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2013 | $ 1,726,406 | $ 255,030 | $ (16,750) | $ 1,593,564 | $ 102,880 | $ 541,452 | $ 948,624 | $ 608 |
Balance (in shares) at Dec. 31, 2013 | 15,429,000 | |||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 168,129 | 168,129 | 137,641 | 137,641 | ||||
Other comprehensive income (loss), net of tax benefits | (10,628) | (10,628) | (563) | (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) | (126,505) | (88,492) | (88,492) | ||||
Ending Balance at Dec. 31, 2014 | 1,790,573 | 296,654 | (27,378) | 1,682,144 | $ 105,388 | 578,938 | 997,773 | 45 |
Balance (in shares) at Dec. 31, 2014 | 15,805,000 | |||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | 159,877 | 159,877 | 135,714 | 135,714 | ||||
Other comprehensive income (loss), net of tax benefits | 1,116 | 1,116 | 880 | 880 | ||||
Issuance of common stock, net of expenses | (8) | (8) | ||||||
Common stock dividends | (131,765) | (131,765) | (90,405) | (90,405) | ||||
Ending Balance at Dec. 31, 2015 | $ 1,927,640 | 324,766 | (26,262) | 1,728,325 | $ 105,388 | 578,930 | 1,043,082 | 925 |
Balance (in shares) at Dec. 31, 2015 | 107,460,406 | 15,805,000 | ||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | $ 248,256 | 248,256 | 142,317 | 142,317 | ||||
Other comprehensive income (loss), net of tax benefits | (6,867) | (6,867) | (1,247) | (1,247) | ||||
Issuance of common stock, net of expenses | 23,991 | $ 1,430 | 22,561 | |||||
Issuance of common stock, net of expenses (in shares) | 215,000 | |||||||
Common stock dividends | (134,050) | (134,050) | (93,599) | (93,599) | ||||
Ending Balance at Dec. 31, 2016 | $ 2,066,753 | $ 438,972 | $ (33,129) | $ 1,799,787 | $ 106,818 | $ 601,491 | $ 1,091,800 | $ (322) |
Balance (in shares) at Dec. 31, 2016 | 108,583,413 | 16,020,000 |
Consolidated Statements of Ca18
Consolidated Statements of Cash Flows - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 250,146 | $ 161,767 | $ 170,019 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 194,273 | 183,966 | 172,762 |
Other amortization | 10,473 | 11,619 | 10,282 |
Impairment of utility assets | 0 | 6,021 | 1,866 |
Deferred income taxes | 47,118 | 41,432 | 104,225 |
Allowance for equity funds used during construction | (8,325) | (6,928) | (6,771) |
Other | (12,422) | 1,672 | (280) |
Changes in assets and liabilities | |||
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 |
Increase in regulatory assets | (18,273) | (24,182) | (17,000) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 39,109 | (42,596) | (39,091) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,587 | 852 | 22,251 |
Change in other assets and liabilities | (23,118) | (41,070) | (101,195) |
Net cash provided by operating activities | 495,254 | 355,880 | 325,420 |
Cash flows from investing activities | |||
Capital expenditures | (330,043) | (363,804) | (364,826) |
Contributions in aid of construction | 30,100 | 40,239 | 41,806 |
Other | 856 | 7,940 | 1,125 |
Net cash used in investing activities | (736,465) | (705,724) | (592,449) |
Cash flows from financing activities | |||
Common stock dividends | (117,274) | (131,765) | (126,458) |
Net proceeds from issuance of common stock | 13,220 | 104,435 | 26,898 |
Proceeds from issuance of long-term debt | 115,000 | 80,000 | 125,000 |
Repayment of long-term debt | (75,000) | 0 | (111,400) |
Other | (219) | (833) | (456) |
Net cash used in financing activities | 219,185 | 474,780 | 222,535 |
Net increase (decrease) in cash and equivalents | (22,026) | 124,936 | (44,494) |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income | 144,312 | 137,709 | 139,636 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 187,061 | 177,380 | 166,387 |
Other amortization | 6,935 | 8,939 | 9,897 |
Impairment of utility assets | 0 | 6,021 | 1,866 |
Deferred income taxes | 74,386 | 75,626 | 82,947 |
Income tax credits, net | 231 | 4,844 | 6,062 |
Allowance for equity funds used during construction | (8,325) | (6,928) | (6,771) |
Change in cash overdraft | 0 | 0 | (1,038) |
Other | (3,931) | 1,672 | 758 |
Changes in assets and liabilities | |||
Decrease in accounts receivable | 8,551 | 23,727 | 26,743 |
Decrease (increase) in accrued unbilled revenues | (7,184) | 40,093 | 6,750 |
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 |
Decrease (increase) in materials and supplies | 750 | 2,821 | (72) |
Increase in regulatory assets | (18,273) | (24,182) | (17,000) |
Decrease in accounts payable | (10,614) | (54,555) | (65,527) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 2,123 | (63,096) | (4,036) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 484 | 1,125 | (961) |
Change in other assets and liabilities | (11,375) | (32,620) | (66,687) |
Net cash provided by operating activities | 369,917 | 333,406 | 306,995 |
Cash flows from investing activities | |||
Capital expenditures | (320,437) | (350,161) | (336,679) |
Contributions in aid of construction | 30,100 | 40,239 | 41,806 |
Other | 2,138 | 1,140 | 1,164 |
Net cash used in investing activities | (288,199) | (308,782) | (293,709) |
Cash flows from financing activities | |||
Common stock dividends | (93,599) | (90,405) | (88,492) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) |
Net proceeds from issuance of common stock | 24,000 | 0 | 40,000 |
Proceeds from issuance of long-term debt | 40,000 | 80,000 | 0 |
Repayment of long-term debt | 0 | 0 | (11,400) |
Other | (287) | (1,537) | (462) |
Net cash used in financing activities | (31,881) | (13,937) | (62,349) |
Net increase (decrease) in cash and equivalents | 49,837 | 10,687 | (49,063) |
Cash and cash equivalents, beginning of period | 24,449 | 13,762 | 62,825 |
Cash and cash equivalents, end of period | $ 74,286 | $ 24,449 | $ 13,762 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
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 securities (ASB only); property, plant and equipment; pension and other postretirement benefit obligations; contingencies and litigation; income taxes; derivatives; regulatory assets and liabilities (Utilities only); electric utility revenues (Utilities only); allowance for loan losses (ASB only); and goodwill (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), 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% , 3.2% and 3.1% in 2016 , 2015 and 2014 , 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 $ 19 million , $ 18 million and $19 million in 2016 , 2015 and 2014 , respectively. The Utilities' operating lease expense was $10 million , $9 million and $9 million in 2016 , 2015 and 2014 , respectively. HEI's consolidated and the Utilities' future minimum lease payments are as follows: (in millions) HEI Hawaiian Electric 2017 $ 12 $ 6 2018 9 4 2019 7 4 2020 5 3 2021 4 3 Thereafter 8 4 $ 45 $ 24 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) 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. 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. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. 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, 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 Basic Diluted Distributed earnings $ 1.24 $ 1.24 Undistributed earnings 0.41 0.39 $ 1.65 $ 1.63 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. Revenues from contracts with customers . 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: (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. ASU No. 2014-09 also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As of December 31, 2016, the Company has identified its revenue streams from, and performance obligations to, customers, and is currently evaluating the impacts of the new guidance on its ability to recognize revenue for certain contracts where there is uncertainty regarding collection and accounting for contributions in aid of construction. The Company plans to adopt ASU No. 2014-09 (and subsequently issued revenue-related ASUs, as applicable) in the first quarter of 2018, but has not determined the method of adoption (full or modified retrospective application). The Company expects to present more revenue disclosures, but the full impact of adoption of ASU No. 2014-09 on its results of operations, financial condition and liquidity cannot be determined until its evaluation process is complete. Going concern . In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about the entity’s ability to continue as a going concern. The Company adopted ASU No. 2014-15 for 2016 and interim periods going forward. Since management has concluded that there are no conditions or events that raise substantial doubt about HEI’s or Hawaiian Electric’s ability to continue as a going concern through February 24, 2018, there was no impact on HEI’s and Hawaiian Electric’s consolidated financial statements. Extraordinary and unusual items . In January 2015, the FASB issued ASU No. 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” which removes the concept of extraordinary items from U.S. GAAP and eliminates the requirement for extraordinary items to be separately presented in the statement of income. The Company adopted ASU 2015-01 prospectively on January 1, 2016 and the adoption did not have a material impact on the Company’s and Hawaiian Electric’s consolidated financial statements. Consolidation . In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which modifies the requirements of consolidation with respect to limited partnerships, entities that are similar in nature to limited partnerships or are VIEs. The amended guidance (1) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; (2) eliminates the presumption that a general partner should consolidate a limited partnership; (3) changes the analysis related to the evaluation of servicing fees and excludes servicing fees that are deemed commensurate with the level of service required from the determination of the primary beneficiary; (4) clarifies certain consideration related to the consolidation analysis when performing a related party assessment; and (5) provides a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Bank Act of 1940 for registered money market funds. The Company retrospectively adopted ASU No. 2015-02 in the first quarter 2016 and the adoption did not have a material impact on HEI’s and Hawaiian Electric’s consolidated financial statements. 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 retrospectively adopted ASU No. 2015-03 in the first quarter 2016 and the adoption did not have a material impact on the Company’s and Hawaiian Electric’s consolidated financial statements. The table below summarizes the impact to the prior period financial statements of the adoption of ASU No. 2015-03: (in thousands) As previously filed Adjustment from adoption of ASU No. 2015-03 As currently reported December 31, 2015 HEI Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) Other assets $ 488,635 $ (8,178 ) $ 480,457 Total assets and Total liabilities and shareholders’ equity 11,790,196 (8,178 ) 11,782,018 Long-term debt, net-other than bank 1,586,546 (8,178 ) 1,578,368 Total liabilities 9,828,263 (8,178 ) 9,820,085 Hawaiian Electric Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) Unamortized debt expense 8,341 (7,844 ) 497 Total other long-term assets 908,327 (7,844 ) 900,483 Total assets and Total capitalization and liabilities 5,680,054 (7,844 ) 5,672,210 Long-term debt, net 1,286,546 (7,844 ) 1,278,702 Total capitalization 3,049,164 (7,844 ) 3,041,320 Note 4 - Hawaiian Electric Consolidating Balance Sheet Hawaiian Electric (parent only) Unamortized debt expense 5,742 (5,383 ) 359 Total other long-term assets 662,430 (5,383 ) 657,047 Total assets and Total capitalization and liabilities 4,481,558 (5,383 ) 4,476,175 Long-term debt, net 880,546 (5,383 ) 875,163 Total capitalization 2,631,164 (5,383 ) 2,625,781 Hawaii Electric Light Unamortized debt expense 1,494 (1,420 ) 74 Total other long-term assets 130,749 (1,420 ) 129,329 Total assets and Total capitalization and liabilities 955,935 (1,420 ) 954,515 Long-term debt, net 215,000 (1,420 ) 213,580 Total capitalization 514,702 (1,420 ) 513,282 Maui Electric Unamortized debt expense 1,105 (1,041 ) 64 Total other long-term assets 115,148 (1,041 ) 114,107 Total assets and Total capitalization and liabilities 831,201 (1,041 ) 830,160 Long-term debt, net 191,000 (1,041 ) 189,959 Total capitalization 459,725 (1,041 ) 458,684 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 retrospectively adopted ASU No. 2015-07 in the first quarter 2016; thus, the fair value disclosures for retirement benefit plan assets have been revised. 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. Leases . In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize a liability to make lease payments (the lease liability) and a right-of-use asset, representing its right to use the underlying asset for the lease term, for all leases (except short-term leases) at the commencement date. The Company plans to adopt ASU 2016-02 in the first quarter of 2019 (using a modified retrospective transition approach for leases existing at, or entered into after, January 1, 2017) and has not yet determined the impact of adoption. Stock compensation . In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions. The Company adopted ASU 2016-09 in the first quarter of 2017. From January 1, 2017, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. Also from January 1, 2017, no excess tax benefits and deficiencies are included in determining the assumed proceeds under the treasury stock method of calculating diluted EPS. As of January 1, 2017, HEI adopted an accounting policy to account for forfeitures when they occur. From January 1, 2017, HEI retrospectively applied the guidance for taxes paid (equivalent to the value of withheld shares for tax withholding purposes) and excess tax benefits. Excess tax benefits will be classified along with other income tax cash flows as an operating activity and the cash payments made to taxing authorities on the employees’ behalf for withheld shares will be classified as financing activities on the HEI Consolidated Statements of Cash Flows for all periods that are presented. Credit Losses . In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations . ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The other-than-temporary impairment model of accounting for credit losses on AFS debt securities will be replaced with an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The AFS debt security model will also require the use of an allowance to record the estimated losses (and subsequent recoveries). The accounting for the initial recognition of the estimated expected credit losses for purchased financial assets with credit deterioration would be recognized through an allowance for loan losses with an offset to the cost basis of the related financial asset at acquisition (i.e., there is no impact to net income at initial recognition). The Company plans to adopt ASU 2016-13 in the first quarter of 2020 and has not yet determined the impact of adoption. Cash Flows . In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on eight specific cash flow issues - debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies), distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The Company plans to adopt ASU 2016-15 in the first quarter of 2018 using a retrospective transition method and has not yet determined the impact of adoption. Intra-entity transfers of assets other than inventory . In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which changes current guidance that prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party by requiring the recognition of the income tax consequences of such transfer when it occurs. The Company plans to adopt ASU 2016-16 in the first quarter of 2018 using a modified retrospective transition method and believes the impact of adoption will be immaterial to the Company’s and Hawaiian Electric’s consolidated financial statements. Restricted cash . In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company plans to adopt ASU 2016-18 in the first quarter of 2018 using a retrospective transition method and believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. Reclassifications. Reclassifications made to prior years’ financial statements to conform to the 2016 presentation did not affect previously reported results of operations and include additional detail of noncash items in operating activities on the C |
Termination of proposed merger
Termination of proposed merger and other matters | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Termination of proposed merger and other matters | 2 · Termination of proposed merger and other matters On December 3, 2014, HEI, NextEra Energy, Inc. (NEE) and two subsidiaries of NEE entered into an Agreement and Plan of Merger (the Merger Agreement), under which Hawaiian Electric was to become a subsidiary of NEE. The Merger Agreement contemplated that, prior to the Merger, HEI would distribute to its shareholders all of the common stock of ASB Hawaii, Inc. (ASB Hawaii), the parent company of ASB (such distribution referred to as the Spin-Off). The closing of the Merger was subject to various conditions, including receipt of regulatory approval from the PUC. In January 2015, NEE and Hawaiian Electric filed an application with the PUC requesting approval of the proposed Merger. On July 15, 2016, the PUC dismissed the application without prejudice. On July 16, 2016, NEE terminated the Merger Agreement. Pursuant to the terms of the Merger Agreement, on July 19, 2016, NEE paid HEI a $90 million termination fee and $5 million for the reimbursement of expenses associated with the transaction. In 2016, the Company recognized $60 million of net income ( $2 million of net loss in each of the first and second quarters and $64 million of net income in the third quarter), comprised of the termination fee ( $55 million ), reimbursements of expenses from NEE and insurance ( $3 million ), and additional tax benefits on the previously non-tax-deductible merger- and spin-off-related expenses incurred through June 30, 2016 ( $8 million ), less merger- and spin-off-related expenses incurred in 2016 ( $6 million ) (all net of tax impacts). In 2015, the Company recognized $16 million of merger- and spin-off-related expenses ( $5 million in the first quarter, $7 million in the second quarter and $2 million in each of the third and fourth quarters), net of tax impacts. In 2014, the Company recognized merger- and spin-off-related expenses of $5 million , net of tax impacts, primarily in the fourth quarter. The Spin-Off of ASB Hawaii was cancelled as it was cross-conditioned on the merger consummation. In May 2016, the Utilities had filed an application for approval of an LNG supply and transport agreement and LNG-related capital equipment and two related applications, which applications were conditioned on the PUC’s approval of the proposed Merger. Subsequently, the Utilities terminated the agreement and withdrew the three applications. In 2016, Hawaiian Electric recognized expenses related to the terminated LNG agreement of $1 million , net of tax benefits, in each of the first and second quarters. 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 with NEE, several purported class action complaints were filed by alleged stockholders of HEI against HEI, the individual directors of HEI, NEE and others. All of these lawsuits ( seven of which were consolidated) have been dismissed, either with or without prejudice. |
Segment financial information
Segment financial information | 12 Months Ended |
Dec. 31, 2016 | |
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 utility subsidiaries are aggregated within the electric utility segment because they: (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 2016 Revenues from external customers $ 2,094,224 $ 285,924 $ 506 $ 2,380,654 Intersegment revenues (eliminations) 144 — (144 ) — Revenues 2,094,368 285,924 362 2,380,654 Depreciation and amortization 193,996 9,813 937 204,746 Interest expense, net 66,824 12,755 8,979 88,558 Income before income taxes 229,113 87,352 57,376 373,841 Income taxes 84,801 30,073 8,821 123,695 Net income 144,312 57,279 48,555 250,146 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income for common stock 142,317 57,279 48,660 248,256 Capital expenditures 320,437 9,394 212 330,043 Assets (at December 31, 2016) 5,975,428 6,421,357 28,721 12,425,506 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) 5,672,210 6,014,755 95,053 11,782,018 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) 5,550,021 5,566,222 60,900 11,177,143 See Note 1 for the impact to prior period financial information of the adoptions of ASU No. 2015-03. 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, 2016 | |
Electric utility subsidiary | |
Electric utility segment | 4 · Electric utility segment Regulatory assets and liabilities. Regulatory assets represent deferred costs and accrued decoupling revenues which are 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, 2016 are noted. Regulatory assets were as follows: December 31 2016 2015 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 745,367 $ 679,766 Income taxes, net (1 to 55 years) 90,100 88,039 Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) 73,485 74,462 Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) 12,299 14,089 Vacation earned, but not yet taken (1 year) 10,970 10,420 Other (1 to 50 years; 1 to 46 years remaining) 25,230 29,955 $ 957,451 $ 896,731 Included in: Current assets $ 66,032 $ 72,231 Long-term assets 891,419 824,500 $ 957,451 $ 896,731 Regulatory liabilities were as follows: December 31 2016 2015 (in thousands) Cost of removal in excess of salvage value (1 to 60 years) $ 394,072 $ 357,825 Retirement benefit plans (5 years beginning with respective utility’s next rate case) 10,824 9,835 Other (5 years; 1 to 2 years remaining) 5,797 3,883 $ 410,693 $ 371,543 Included in: Current liabilities $ 3,762 $ 2,204 Long-term liabilities 406,931 369,339 $ 410,693 $ 371,543 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% ( $226 million ), 11% ( $265 million ) and 12% ( $350 million ) of their operating revenues from the sale of electricity to various federal government agencies in 2016 , 2015 and 2014 , 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, 2016 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 , $6.5 million and $7.0 million for general management and administrative services in 2016 , 2015 and 2014 , 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, 2016 and 2015 . 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 $0.04 million in 2016 and nil in each of 2015 and 2014 . Commitments and contingencies. Fuel contracts . The Utilities have contractual agreements to purchase minimum quantities of low sulfur fuel oil (LSFO), medium sulfur fuel oil (MSFO), diesel fuel and biodiesel for multi-year periods, some through December 2019. 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, 2016 , the estimated cost of minimum purchases under the fuel supply contracts is $125 million in 2017 , $119 million in 2018 and $119 million in 2019 . The actual cost of purchases in 2017 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 $0.4 billion , $0.6 billion and $1.1 billion of fuel under contractual agreements in 2016 , 2015 and 2014 , respectively. On February 18, 2016, the Companies signed two fuel supply contracts with Chevron Products Company (Chevron) for: (1) Oahu’s LSFO and diesel (for purposes of blending with LSFO) to meet the Environmental Protection Agency’s Mercury and Air Toxic Standards; and (2) MSFO, diesel and ultra-low sulfur diesel for Oahu, Maui, Molokai and the island of Hawaii. The contract began on January 1, 2017, terminates on December 31, 2019, and may automatically renew for annual terms thereafter unless terminated earlier by either party. Both of these fuel contracts were recently assigned to Island Energy Services, LLC, a subsidiary of One Rock Capital Partners, L.P., who purchased Chevron’s Hawaii assets on November 1, 2016. Both of these fuel contracts replace prior fuel supply contracts with Chevron and Par Hawaii Refining, LLC (Par), which both expired on December 31, 2016. Hawaii Electric Light also signed a contract with Chevron, now Island Energy Services, LLC, for terminalling services in Hilo, Hawaii for 2017 through 2019. The terminalling services were provided by Chevron as part of the fuel supply contract but as mentioned above, that contract expired December 31, 2016. Now Hilo terminalling services are contracted in a stand-alone contract. The PUC approved all of the contracts with Chevron, now Island Energy Services, LLC. All of the costs incurred under these contracts are included in the Utilities’ respective Energy Cost Adjustment Clauses (ECACs) to the extent such costs are not recovered through the base rates. Hawaiian Electric also has three contracts for biodiesel. Two of the contracts are with Pacific Biodiesel Technologies, LLC (PBT) and one contingency contract is in place with REG Marketing & Logistics, LLC (REG). PBT has agreed to supply biodiesel to Hawaiian Electric’s Campbell Industrial Park (CIP) generating facility through November 2017. The Company intends to seek a one -year extension of this contract through 2018. While fuel is delivered to CIP, the contract provides that biodiesel can be trucked to the Honolulu International Airport Emergency Facility and to any other generating facility on Oahu owned by Hawaiian Electric. Hawaiian Electric intends to shift the biodiesel supply to Schofield generating station when that new facility comes online and as long as the PBT contract remains in effect. PBT also has a spot buy contract with Hawaiian Electric to purchase additional quantities of biodiesel at or below the price of diesel. Very few purchases of “at parity” biodiesel have been purchased, however the contract remains in effect and was recently extended through June 2018. Hawaiian Electric also has a contingency contract with REG. REG will supply biodiesel in the event PBT is unable to supply quantities above the contract maximum volume, should something unexpected occur. Hawaiian Electric did not purchase any biofuel from REG during 2016. Regardless of no purchases, Hawaiian Electric secured a one -year extension of this contract through November 2017. The costs incurred under the Utilities’ biodiesel contracts are included in their respective ECACs, to the extent such costs are not recovered through the Utilities’ base rates. The energy charge for energy purchased from Kalaeloa Partners, L.P. (Kalaeloa) under Hawaiian Electric’s purchase power agreement (PPA) with Kalaeloa is based in part on the price Kalaeloa pays PAR (formerly known as Hawaii Independent Energy, LLC) for LSFO in a fuel contract between the two parties. Hawaiian Electric and Kalaeloa are currently in negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends 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. On August 1, 2016, Hawaiian Electric and Kalaeloa entered into an agreement that neither party will give written notice of termination of the PPA prior to October 31, 2017. This agreement complements continued negotiations between the parties and accounts for time needed for PUC approval of a negotiated resolution. The costs incurred for LSFO under Hawaiian Electric's fuel contract with Kalaeloa is included in Hawaiian Electric's ECAC, to the extent such costs are not recovered through base rates. Power purchase agreements . As of December 31, 2016 , 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 , $0.6 billion and $0.7 billion for 2016 , 2015 and 2014 , 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 2017 through 2021 and a total of $0.4 billion in the period from 2022 through 2033. 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 (through Amendment No. 2), 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 included certain conditions precedent which, if satisfied would have released the parties from the claims under the arbitration proceeding. Among the conditions precedent was the successful negotiation of an amendment to the existing purchase power agreement and PUC approval of such amendment. In November 2015, Hawaiian Electric entered into Amendment No. 3 to the PPA, subject to PUC approval. The arbitration proceeding was stayed to allow for the PUC approval proceeding to proceed. In January 2017, the PUC denied Hawaiian Electric’s request to approve Amendment No. 3 to the PPA. Approval of Amendment No. 3 would have satisfied the final condition for effectiveness of the Settlement Agreement and resolved AES Hawaii’s claims. Following the PUC’s decision, the parties have agreed to extend the stay of the arbitration proceedings for an additional four months, to allow the parties to discuss possible alternative settlement structures. Hu Honua Bioenergy, LLC. In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua Bioenergy, LLC (Hu Honua) for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Per the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction delays, failed to meet its current obligations under the PPA and failed to provide adequate assurances that it could perform or had the financial means to perform. Hawaii Electric Light terminated the PPA on March 1, 2016. Hawaii Electric Light and Hu Honua were in discussions regarding the possibility of reinstating the PPA under revised terms and conditions. However, on November 30, 2016, Hu Honua filed a civil complaint in the United States District Court for the District of Hawaii which included claims purportedly arising out of the termination of Hu Honua’s PPA. The complaint named HEI, Hawaiian Electric and Hawaii Electric Light as defendants. HEI, Hawaiian Electric and Hawaii Electric believe the allegations in the complaint are without merit and intend to defend these lawsuits vigorously. Liquefied natural gas . On May 18, 2016, Hawaiian Electric and Fortis Hawaii Energy Inc. (Fortis Hawaii), an affiliate of Fortis, Inc. (Fortis), entered into a Fuel Supply Agreement (FSA) whereby Fortis Hawaii intended to sell to Hawaiian Electric liquefied natural gas (LNG) to be produced from the LNG facilities on Tilbury Island in Delta, British Columbia, Canada. Pursuant to the FSA, Fortis Hawaii had arranged, or planned to arrange, for the transportation of gas for delivery to, and liquefaction at, the Tilbury LNG facilities, including with respect to the transport and delivery of LNG across a jetty at such facilities, for the purchase and storage of LNG at such LNG facilities and for the transportation of LNG to delivery points in Hawaii for the benefit of Hawaiian Electric and its subsidiaries. The FSA was subject to approval by the PUC and to the satisfaction of certain conditions precedent, including the consummation of the merger between HEI and NEE. On July 16, 2016, pursuant to the terms of the Merger Agreement, NEE terminated the Merger Agreement. Accordingly, on July 19, 2016, Hawaiian Electric provided notice of termination of the FSA to Fortis Hawaii, effective immediately, and withdrew the application for PUC approval of the FSA, which included a request for approval to commit approximately $341 million to convert existing generating units to use natural gas, and to commit approximately $117 million for containers to support LNG. In addition, on July 19, 2016, Hawaiian Electric withdrew its applications to the PUC for a waiver from the competitive bidding process to allow Hawaiian Electric to construct a modern, efficient, combined cycle generation system at the Kahe power plant that would utilize LNG and to commit $859 million for such project. Hawaiian Electric will continue to evaluate all options to modernize generation using a cleaner fuel to bring price stability and support adding renewable energy for its customers. 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, or if PUC imposed caps on project costs are exceeded, 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 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 Hawaii Electric Light 2016 test year 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 were 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 Ormat Technologies, Inc. had determined the proposed project not to be economically and financially viable, resulting in termination of PPA negotiations. On March 8, 2016, the Independent Observer issued a report on the results of the negotiation phase of the Geothermal RFP. In February 2016, Huena Power Inc. (Huena) filed with the PUC a Petition for Declaratory Order (which the PUC later dismissed without prejudice) and a Complaint relating to the Geothermal RFP. Hawaii Electric Light filed a motion to dismiss Huena’s Petition which was granted on March 28, 2016. Hawaii Electric Light’s motion to dismiss Huena’s Complaint is still pending. On December 15, 2016, the PUC issued Order No. 34211 in Docket No. 2016-0027 granting Hawaii Electric Light's motion to dismiss Huena’s complaint against Hawaii Electric Light with prejudice and closed the geothermal RFP docket. Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) Implementation Project. The Utilities submitted their 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 . In October 2015, the PUC issued a D&O (1) finding that there is a need to replace the Utilities’ existing ERP/EAM system, (2) denying the Utilities request to defer the costs for the ERP software purchased in 2012 and (3) deferring any ruling on whether it is reasonable and in the public interest for the Utilities to commence with the project under two options. As a result, the Utilities expensed the ERP software costs of $4.8 million in the third quarter of 2015. In April 2016, the Utilities filed additional information on the costs and benefits of the project and the Consumer Advocate submitted its reply. On August 11, 2016, the PUC issued a second D&O approving the Utilities’ request to commence the ERP/EAM implementation project, subject to certain conditions, including a $77.6 million cap on cost recovery as well as a requirement that the Utilities pass onto customers a minimum of $244 million in savings associated with the system over its 12 -year service life. Pursuant to the D&O and subsequent orders, the Utilities will be required to file: the proposed methods of passing on to customers the estimated monetary savings attributable to the project by March 31, 2017; a bottom-up, low-level analysis of the project’s benefits; performance metrics and tracking mechanism for passing the project’s benefits on to customers by September 2017; and monthly reports on the status and costs of the project starting February 2017. The project is expected to go-live by October 1, 2018. 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 cost 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 was 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 cost cap of $157.3 million . Hawaiian Electric has received all of the major permits for the project, including a 35 year site lease from the U.S. Army. Construction of the facility began in October 2016, and the facility is expected to be placed in service in the first quarter of 2018. Hamakua Energy Partners, L.P. (HEP) Asset Purchase Agreement. Hawaii Electric Light has been purchasing up to 60 MW (net) of firm capacity from HEP under a power purchase agreement (PPA) that expires on December 30, 2030. The HEP plant currently contributes about 23% of the island of Hawaii’s generating capacity. On December 22, 2015, Hawaii Electric Light entered into an agreement, subject to PUC approval, to acquire the assets of HEP for approximately $84.5 million . If approved by the PUC, the agreement to purchase the existing HEP generating assets will terminate the existing PPA. The elimination of certain required capacity payments under the PPA is expected to result in lower costs to customers. Additionally, by owning the plant, Hawaii Electric Light will be able to manage HEP’s efficient generating units more productively, providing greater flexibility to cycle HEP’s generating units to more effectively manage the Hawaii island grid. This increased operational flexibility will be essential to support and facilitate Hawaii Electric Light’s efforts to integrate more renewable energy onto the grid. A decision on an application requesting PUC approval of Hawaii Electric Light's purchase of the HEP Facility is pending. 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. 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. Clean Water Act Section 316(b). 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 three of 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 (NPDES) permit. These studies must 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. Hawaiian Electric will work with the DOH to identify the appropriate compliance methods for the 316(b) rule. Mercury Air Toxics Standards. On February 16, 2012, EPA published the final rule establishing the National Emission Standards for Hazardous Air Pollutants for fossil-fuel fired steam electrical generating units (EGUs) in the Federal Register. The final rule, known as the Mercury and Air Toxics Standards (MATS), applies to the 14 EGUs at Hawaiian Electric’s power plants. MATS established the Maximum Achievable Control Technology standards for the control of hazardous air pollutants emissions from new and existing EGUs. Hawaiian Electric received a one -year extension to comply by April 16, 2016. Hawaiian Electric initially selected a MATS compliance strategy based on switching to lower emission fuels, but has since continued developing and refining its emission control strategy. Hawaiian Electric’s liquid oil-fired steam generating units that are subject to the MATS limits are able to comply with the new standards without a significant fuel switch in combination with a suite of operational changes. Hawaiian Electric has proceeded with the implementation of the MATS Compliance Plan and has met all compliance requirements to date. 1-Hour Sulfur Dioxide National Ambient Air Quality Standard. On August 1, 2015, the EPA published the Data Requirements Rule for the 2010 1-Hour Sulfur Dioxide (SO2) Primary National Ambient Air Quality Standard (NAAQS). Hawaiian Electric is working with the DOH to gather data the EPA requires through the installation and operation of two new 1-hour SO2 air quality monitoring stations on the island of Oahu. This data will be integrated into the DOH’s statewide monitoring network and will assist the State’s development of its strategy to maintain the NAAQS and comply with the new 1-Hour SO2 Rule in its State Implementation Plan. The two new 1-hour SO2 air quality monitoring stations have been installed and were placed into operation prior to the EPA regulatory deadline of January 1, 2017. 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) alleging potential violations of the Prevention of Significant Deterioration and Title V requirements of the Clean Air Act involving the Hill and Kahului Power Plants. In correspondence dated November 4, 2014, the DOJ also identified potential violations by Hawaiian Electric at its Kahe facility and proposed resolving the identified, potential violations by entering into a consent decree pursuant to which the Utilities would install certain pollution controls and pay a penalty. The Utilities continue to negotiate with the DOJ to resolve these issues, 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 identified environmental impacts in the subsurface soil at the Site. Although Maui Electric never operated at the Site or owned the Site property, after 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 environmental contamination. 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, 2016 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. Pearl Harbor sediment study . In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. The Navy has also requested that Hawaiian Electric reimburse the costs incurred by the Navy to date to investigate the area. The Navy has completed a remedial investigation and a feasibility study (FS) for the remediation of contaminated sediment at several locations in Pearl Harbor and issued its Final FS Report on June 29, 2015. On February 2, 2016, the Navy released the Proposed Plan for Pearl Harbor Sediment Remediation and Hawaiian Electric submitted comments. The extent of the contamination, the appropriate remedial measures to address it and Hawaiian Electric’s potential responsibility for any associated costs have not been determined. On March 23, 2015, Hawaiian Electric received a letter from the EPA requesting that Hawaiian Electric submit a work plan to assess potential sources and extent of PCB contamination onshore at the Waiau Power Plant. Hawaiian Electric submitted a sampling and analysis (SAP) work plan to the EPA and the DOH. Onshore sampling at the Waiau Power Plant was completed in two phases in December 2015 and June 2016. The extent of the onshore contamination, the appropriate remedial measures to address it, and any associated costs have not yet been determined. As of December 31, 2016, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $ 4.1 million . The reserve represents the probable and reasonably estimable cost to complete the onshore and offshore investigations and the remediation of PCB contamination in the offshore sediment. The final remediation costs will depend on the results of the onshore investigation and assessment of potential source cont |
Bank segment (HEI only)
Bank segment (HEI only) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 (in thousands) Interest and dividend income Interest and fees on loans $ 199,774 $ 184,782 $ 179,341 Interest and dividends on investment securities 19,184 15,120 11,945 Total interest and dividend income 218,958 199,902 191,286 Interest expense Interest on deposit liabilities 7,167 5,348 5,077 Interest on other borrowings 5,588 5,978 5,731 Total interest expense 12,755 11,326 10,808 Net interest income 206,203 188,576 180,478 Provision for loan losses 16,763 6,275 6,126 Net interest income after provision for loan losses 189,440 182,301 174,352 Noninterest income Fees from other financial services 22,384 22,211 21,747 Fee income on deposit liabilities 21,759 22,368 19,249 Fee income on other financial products 8,707 8,094 8,131 Bank-owned life insurance 4,637 4,078 3,949 Mortgage banking income 6,625 6,330 2,913 Gains on sale of investment securities 598 — 2,847 Other income, net 2,256 4,750 2,375 Total noninterest income 66,966 67,831 61,211 Noninterest expense Compensation and employee benefits 90,117 90,518 79,885 Occupancy 16,321 16,365 17,197 Data processing 13,030 12,103 11,690 Services 11,054 10,204 10,269 Equipment 6,938 6,577 6,564 Office supplies, printing and postage 6,075 5,749 6,089 Marketing 3,489 3,463 3,999 FDIC insurance 3,543 3,274 3,261 Other expense 18,487 18,067 17,314 Total noninterest expense 169,054 166,320 156,268 Income before income taxes 87,352 83,812 79,295 Income taxes 30,073 29,082 27,994 Net income $ 57,279 $ 54,730 $ 51,301 Statements of Comprehensive Income Years ended December 31 2016 2015 2014 (in thousands) Net income $ 57,279 $ 54,730 $ 51,301 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on available-for sale investment securities: Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $3,763, $1,541 and $(3,856) for 2016, 2015 and 2014, respectively (5,699 ) (2,334 ) 5,840 Less: reclassification adjustment for net realized gains included in net income, net of taxes of $238, nil and $1,132 for 2016, 2015 and 2014, respectively (360 ) — (1,715 ) Retirement benefit plans: Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively — 90 (9,336 ) Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively 857 1,531 850 Other comprehensive income (loss), net of taxes (5,202 ) (713 ) (4,361 ) Comprehensive income $ 52,077 $ 54,017 $ 46,940 Balance Sheets Data December 31 2016 2015 (in thousands) Assets Cash and due from banks $ 137,083 $ 127,201 Interest-bearing deposits 52,128 93,680 Restricted cash 1,764 — Available-for-sale investment securities, at fair value 1,105,182 820,648 Stock in Federal Home Loan Bank, at cost 11,218 10,678 Loans receivable held for investment 4,738,693 4,615,819 Allowance for loan losses (55,533 ) (50,038 ) Net loans 4,683,160 4,565,781 Loans held for sale, at lower of cost or fair value 18,817 4,631 Other 329,815 309,946 Goodwill 82,190 82,190 Total assets $ 6,421,357 $ 6,014,755 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,639,051 $ 1,520,374 Deposit liabilities–interest-bearing 3,909,878 3,504,880 Other borrowings 192,618 328,582 Other 101,635 101,029 Total liabilities 5,843,182 5,454,865 Commitments and contingencies Common stock 1 1 Additional paid in capital 342,704 340,496 Retained earnings 257,943 236,664 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (7,931 ) $ (1,872 ) Retirement benefit plans (14,542 ) (22,473 ) (15,399 ) (17,271 ) Total shareholder’s equity 578,175 559,890 Total liabilities and shareholder’s equity $ 6,421,357 $ 6,014,755 December 31 2016 2015 (in thousands) Other assets Bank-owned life insurance $ 143,197 $ 138,139 Premises and equipment, net 90,570 88,077 Prepaid expenses 3,348 3,550 Accrued interest receivable 16,824 15,192 Mortgage-servicing rights 9,373 8,884 Low-income housing equity investments 47,081 37,793 Real estate acquired in settlement of loans, net 1,189 1,030 Other 18,233 17,281 $ 329,815 $ 309,946 Other liabilities Accrued expenses $ 36,754 $ 30,705 Federal and state income taxes payable 4,728 13,448 Cashier’s checks 24,156 21,768 Advance payments by borrowers 10,335 10,311 Other 25,662 24,797 $ 101,635 $ 101,029 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, 2016 Available-for-sale U.S. Treasury and federal agency obligations $ 193,515 $ 920 $ (2,154 ) $ 192,281 18 $ 123,475 $ (2,010 ) 1 $ 3,485 $ (144 ) Mortgage-related securities- FNMA, FHLMC and GNMA 909,408 1,742 (13,676 ) 897,474 88 709,655 (12,143 ) 13 47,485 (1,533 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,118,350 $ 2,662 $ (15,830 ) $ 1,105,182 106 $ 833,130 $ (14,153 ) 14 $ 50,970 $ (1,677 ) 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 ) ASB does not believe that the investment securities that were in an unrealized loss position as of December 31, 2016 , 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 U.S. Treasury, federal agency obligations and mortgage-related securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB did not recognize OTTI for 2016 , 2015 and 2014 . U.S. Treasury, federal agency obligations, and the mortgage revenue bond 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, 2016 Cost value (in thousands) Due in one year or less $ 9,979 $ 10,001 Due after one year through five years 77,179 77,126 Due after five years through ten years 81,411 81,083 Due after ten years 40,373 39,498 208,942 207,708 Mortgage-related securities-FNMA,FHLMC and GNMA 909,408 897,474 Total available-for-sale securities $ 1,118,350 $ 1,105,182 The proceeds, gross gains and losses from sales of available-for-sale investment securities were as follows: Years ended December 31 2016 2015 2014 (in millions) Proceeds $ 16.4 $ — $ 79.6 Gross gains 0.6 — 2.8 Gross losses — — — Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2016 2015 2014 (in thousands) Taxable $ 19,166 $ 15,120 $ 11,666 Non-taxable 18 — 279 $ 19,184 $ 15,120 $ 11,945 ASB pledged securities with a market value of approximately $277.1 million and $100.5 million as of December 31, 2016 and 2015 , respectively, as collateral for public funds and other deposits, automated clearinghouse transactions with Bank of Hawaii, to-be-announced mortgage-backed securities settlements with JP Morgan, borrowing at the discount window of the Federal Reserve Bank of San Francisco, and deposits in ASB’s bankruptcy account with the Federal Reserve Bank of San Francisco. As of December 31, 2016 and 2015 , securities with a carrying value of $114.9 million and $260.5 million , respectively, were pledged as collateral for securities sold under agreements to repurchase. Stock in FHLB . As of December 31, 2016 and 2015 , ASB’s stock in FHLB was carried at cost ( $11.2 million and $10.7 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. With the merger, all of the ASB’s excess FHLB stock was repurchased. The FHLB repurchased a total of nil and $58.6 million of FHLB stock from ASB in 2016 and 2015, 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, 2016 , consistent with its accounting policy. ASB did not recognize an OTTI loss for 2016 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 2016 ; • 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 2016 2015 (in thousands) Real estate: Residential 1-4 family $ 2,048,051 $ 2,069,665 Commercial real estate 800,395 690,561 Home equity line of credit 863,163 846,294 Residential land 18,889 18,229 Commercial construction 126,768 100,796 Residential construction 16,080 14,089 Total real estate 3,873,346 3,739,634 Commercial 692,051 758,659 Consumer 178,222 123,775 Total loans 4,743,619 4,622,068 Less: Deferred fees and discounts (4,926 ) (6,249 ) Allowance for loan losses (55,533 ) (50,038 ) Total loans, net $ 4,683,160 $ 4,565,781 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 $1.2 billion , $1.5 billion and $1.4 billion as of December 31, 2016 , 2015 and 2014 , 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, 2016 and 2015 , ASB had pledged loans with an amortized cost of approximately $2.4 billion and $2.3 billion , respectively, as collateral to secure advances from the FHLB. As of December 31, 2016 and 2015 , 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 $22.9 million and $27.8 million , respectively. The $4.9 million decrease in such loans in 2016 was attributed to closed lines of credits and repayments of $4.9 million . As of December 31, 2016 and 2015 , $19.0 million and $25.8 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, 2016 Allowance for loan losses: Beginning balance $ 4,186 $ 11,342 $ 7,260 $ 1,671 $ 4,461 $ 13 $ 17,208 $ 3,897 $ — $ 50,038 Charge-offs (639 ) — (112 ) (138 ) — — (5,943 ) (7,413 ) — (14,245 ) Recoveries 421 — 59 461 — — 1,093 943 — 2,977 Provision (1,095 ) 4,662 (2,168 ) (256 ) 1,988 (1 ) 4,260 9,373 — 16,763 Ending balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ — $ 55,533 Ending balance: individually evaluated for impairment $ 1,352 $ 80 $ 215 $ 789 $ — $ — $ 1,641 $ 6 $ 4,083 Ending balance: collectively evaluated for impairment $ 1,521 $ 15,924 $ 4,824 $ 949 $ 6,449 $ 12 $ 14,977 $ 6,794 $ — $ 51,450 Financing Receivables: Ending balance $ 2,048,051 $ 800,395 $ 863,163 $ 18,889 $ 126,768 $ 16,080 $ 692,051 $ 178,222 $ — $ 4,743,619 Ending balance: individually evaluated for impairment $ 19,854 $ 1,569 $ 6,158 $ 3,629 $ — $ — $ 20,539 $ 10 $ — $ 51,759 Ending balance: collectively evaluated for impairment $ 2,028,197 $ 798,826 $ 857,005 $ 15,260 $ 126,768 $ 16,080 $ 671,512 $ 178,212 $ — $ 4,691,860 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 Changes in the allowance for loan losses were as follows: (dollars in thousands) 2016 2015 2014 Allowance for loan losses, January 1 $ 50,038 $ 45,618 $ 40,116 Provision for loan losses 16,763 6,275 6,126 Charge-offs, net of recoveries Real estate loans (52 ) (252 ) (1,137 ) Other loans 11,320 2,107 1,761 Net charge-offs 11,268 1,855 624 Allowance for loan losses, December 31 $ 55,533 $ 50,038 $ 45,618 Ratio of net charge-offs to average total loans 0.24 % 0.04 % 0.01 % 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 probability of default model rating, the loss given default , 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 2016 2015 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 701,657 $ 102,955 $ 614,139 1,418,751 $ 642,410 $ 86,991 $ 703,208 $ 1,432,609 Special mention 65,541 — 25,229 90,770 7,710 13,805 7,029 28,544 Substandard 33,197 23,813 52,683 109,693 40,441 — 47,975 88,416 Doubtful — — — — — — 447 447 Loss — — — — — — — — Total $ 800,395 $ 126,768 $ 692,051 1,619,214 $ 690,561 $ 100,796 $ 758,659 $ 1,550,016 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, 2016 Real estate: Residential 1-4 family $ 5,467 $ 2,338 $ 3,505 $ 11,310 $ 2,036,741 $ 2,048,051 $ — Commercial real estate 2,416 — — 2,416 797,979 800,395 — Home equity line of credit 1,263 381 1,342 2,986 860,177 863,163 — Residential land — — 255 255 18,634 18,889 — Commercial construction — — — — 126,768 126,768 — Residential construction — — — — 16,080 16,080 — Commercial 413 510 1,303 2,226 689,825 692,051 — Consumer 1,945 1,001 963 3,909 174,313 178,222 — Total loans $ 11,504 $ 4,230 $ 7,368 $ 23,102 $ 4,720,517 $ 4,743,619 $ — 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 $ — The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due, and TDR loans was as follows: December 31 2016 2015 (in thousands) Real estate: Residential 1-4 family $ 11,154 $ 20,554 Commercial real estate 223 1,188 Home equity line of credit 3,080 2,254 Residential land 878 970 Commercial construction — — Residential construction — — Commercial 6,708 20,174 Consumer 1,282 895 Total nonaccrual loans $ 23,325 $ 46,035 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 $ 14,450 $ 13,962 Commercial real estate 1,346 — Home equity line of credit 4,934 2,467 Residential land 2,751 4,713 Commercial construction — — Residential construction — — Commercial 14,146 1,104 Consumer 10 — Total troubled debt restructured loans not included above $ 37,637 $ 22,246 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31 2016 2015 (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 $ 9,571 $ 10,400 $ — $ 10,136 $ 324 $ 10,596 $ 11,805 $ — $ 11,215 $ 332 Commercial real estate 223 228 — 1,124 — 1,188 1,436 — 370 74 Home equity line of credit 1,500 1,900 — 1,105 23 707 948 — 484 4 Residential land 1,218 1,803 — 1,518 66 1,644 2,412 — 2,397 137 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 6,299 8,869 — 8,694 370 5,671 6,333 — 5,185 157 Consumer — — — 2 — — — — — — 18,811 23,200 — 22,579 783 19,806 22,934 — 19,651 704 With an allowance recorded Real estate: Residential 1-4 family 10,283 10,486 1,352 11,589 457 11,861 11,914 1,453 11,578 562 Commercial real estate 1,346 1,346 80 1,962 15 — — — 1,699 — Home equity line of credit 4,658 4,712 215 3,765 137 2,518 2,579 442 1,597 49 Residential land 2,411 2,411 789 2,964 206 4,039 4,117 891 4,337 318 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 14,240 14,240 1,641 16,106 456 15,448 16,073 3,527 12,507 211 Consumer 10 10 6 12 — 13 13 7 14 — 32,948 33,205 4,083 36,398 1,271 33,879 34,696 6,320 31,732 1,140 Total Real estate: Residential 1-4 family 19,854 20,886 1,352 21,725 781 22,457 23,719 1,453 22,793 894 Commercial real estate 1,569 1,574 80 3,086 15 1,188 1,436 — 2,069 74 Home equity line of credit 6,158 6,612 215 4,870 160 3,225 3,527 442 2,081 53 Residential land 3,629 4,214 789 4,482 272 5,683 6,529 891 6,734 455 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 20,539 23,109 1,641 24,800 826 21,119 22,406 3,527 17,692 368 Consumer 10 10 6 14 — 13 13 7 14 — $ 51,759 $ 56,405 $ 4,083 $ 58,977 $ 2,054 $ 53,685 $ 57,630 $ 6,320 $ 51,383 $ 1,844 * 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 2016 and 2015 and the impact on the allowance for loan losses were as follows: Years ended December 31 2016 2015 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 14 $ 3,131 $ 3,245 $ 337 19 $ 3,594 $ 3,668 $ 87 Commercial real estate — — — — 1 1,500 1,500 — Home equity line of credit 36 3,337 3,337 554 39 2,441 2,441 370 Residential land 2 203 204 — 1 218 218 — Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial 15 20,266 20,266 865 8 2,267 2,267 486 Consumer — — — — — — — — 67 $ 26,937 $ 27,052 $ 1,756 68 $ 10,020 $ 10,094 $ 943 Loans modified in TDRs that experienced a payment default of 90 days or more in 2016 and 2015 , and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2016 2015 (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 $ 239 — $ — Commercial real estate — — — — Home equity line of credit — — 1 6 Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial 1 24 1 1,056 Consumer — — — — 2 $ 263 2 $ 1,062 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 modified in a TDR totaled $2.6 million at December 31, 2016 . 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 other than the servicing rights of certain loans sold. ASB received $236.1 million , $275.3 million and $155.0 million of proceeds from the sale of residential mortgages in 2016 , 2015 , and 2014 , respectively, and recognized gains on such sales of $6.6 million , $6.3 million , and $2.9 million in 2016 , 2015 , and 2014 , respectively. Repurchased mortgage loans in 2016 , 2015 , and 2014 , were nil , nil and $0.5 million , respectively. Mortgage servicing fees, a component of other income, net, were $2.9 million , $3.5 million , and $3.5 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Changes in the carrying value of mortgage servicing rights were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net December 31, 2016 $ 17,271 $ (7,898 ) $ — $ 9,373 December 31, 2015 $ 14,531 1 $ (5,647 ) 1 $ — $ 8,884 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) 2016 2015 2014 Mortgage servicing rights Balance, January 1 $ 8,884 $ 11,749 $ 11,938 Amount capitalized 2,740 3,123 1,637 Amortization (2,251 ) (2,682 ) (1,731 ) Sale of mortgage servicing rights — (3,302 ) — Other-than-temporary impairment — (4 ) (95 ) Carrying amount before valuation allowance, December 31 9,373 8,884 11,749 Valuation allowance for mortgage servicing rights Balance, January 1 — 209 251 Provision (recovery) — (205 ) 53 Other-than-temporary impairment — (4 ) (95 ) Balance, December 31 — — 209 Net carrying value of mortgage servicing rights $ 9,373 $ 8,884 $ 11,540 The estimated aggregate amortization expenses of mortgage servicing rights for 2017 , 2018 , 2019 , 2020 and 2021 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 2016 2015 (dollars in thousands) Unpaid principal balance $ 1,188,380 $ 1,097,314 Weighted average note rate 3.96 % 4.05 % Weighted average discount rate 9.4 % 9.6 % Weighted average prepayment speed 8.5 % 9.3 % 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 2016 2015 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (567 ) $ (561 ) 50 basis points adverse rate change (1,154 ) (1,104 ) Discount rate: 25 basis points adverse rate change (128 ) (111 ) 50 basis points adverse rate change (254 ) (220 ) The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysi |
Unconsolidated variable interes
Unconsolidated variable interest entities | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 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 2016 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. As long as the 2004 Trust Preferred Securities are outstanding, Hawaiian Electric is not entitled to receive any funds from Trust III other than pro-rata distributions, subject to certain subordination provisions, on the trust common securities. In the event of a default by Hawaiian Electric in the performance of its obligations under the 2004 Debentures or under its Guarantees, or in the event 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, 2016 , the Utilities had five PPAs for firm capacity and other PPAs with IPPs and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities 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 2016 2015 2014 (in millions) AES Hawaii $ 149 $ 134 $ 145 Kalaeloa 152 187 279 HEP 29 44 51 HPOWER 71 66 66 Puna Geothermal Venture 28 29 45 Hawaiian Commercial & Sugar (HC&S) 1 8 15 Other IPPs 133 126 121 Total IPPs $ 563 $ 594 $ 722 In October 2015 the amended PPA between Maui Electric and HC&S became effective following PUC approval in September 2015. The amended PPA amended the pricing structure and rates for energy sold to Maui Electric, eliminated the capacity payment to HC&S, eliminated Maui Electric’s minimum purchase obligation, provided 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 extended the term of the PPA from 2014 to 2017. Effective on December 23, 2016, Maui Electric and HC&S agreed to terminate the PPA. 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 2016, 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 PPA term that ended on May 23, 2016. The PPA automatically extends 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. On August 1, 2016, Hawaiian Electric and Kalaeloa entered into an agreement that neither party will give written notice of termination of the PPA prior to October 31, 2017. This agreement complements continued negotiations between the parties and accounts for time needed for PUC approval of a negotiated resolution. 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, 2016 , Hawaiian Electric’s accounts payable to Kalaeloa amounted to $12 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 was requested and subsequently denied in January 2017. Amendment No. 3 would have increased 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. 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, 2016, Hawaiian Electric’s accounts payable to AES Hawaii amounted to $13 million . |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Short-term Debt [Abstract] | |
Short-term borrowings | 7 · Short-term borrowings As of December 31, 2015 , HEI had $103 million of outstanding commercial paper, with a weighted-average interest rate of 1.1% and Hawaiian Electric had no commercial paper outstanding. As of December 31, 2016 , HEI and Hawaiian Electric had no commercial paper outstanding. As of December 31, 2016 , HEI and Hawaiian Electric maintained syndicated credit facilities of $150 million and $200 million , respectively. Both HEI and Hawaiian Electric had no borrowings under their respective facilities during 2015 and 2016 . 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 13% as of December 31, 2016 , as calculated under the agreement) or if HEI no longer owns Hawaiian Electric. The HEI Facility 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 HEI 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 137.5 basis points and annual fees on undrawn commitments of 20 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 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, 2016 , 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, 2016 , as calculated under the credit agreement), or if Hawaiian Electric is no longer owned by HEI. The Hawaiian Electric 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, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term debt | 8 · Long-term debt December 31 2016 2015 (dollars in thousands) Long-term debt of Utilities 1 $ 1,319,260 $ 1,278,702 HEI term loan LIBOR + .75%, due 2017 125,000 125,000 HEI term loan LIBOR + .75%, due 2018 75,000 — HEI senior note 4.41%, paid 2016 — 75,000 HEI senior note 5.67%, due 2021 50,000 50,000 HEI senior note 3.99%, due 2023 50,000 50,000 Less unamortized debt issuance costs (241 ) (334 ) $ 1,619,019 $ 1,578,368 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. As of December 31, 2016 , the aggregate principal payments required on the Company’s long-term debt for 2017 through 2021 are $125 million in 2017, $125 million in 2018 , nil in 2019, $96 million in 2020 and $50 million in 2021 . As of December 31, 2016 , the aggregate payments of principal required on the Utilities' long-term debt for 2017 through 2021 are nil in 2017 , $50 million in 2018 , nil in 2019 , $96 million in 2020 and nil in 2021 . The HEI term loans 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 loans 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. HEI is in compliance with its covenants. (See Note 7 of the Consolidated Financial Statements). 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. The Utilities are in compliance with their covenants. (See Note 7 of the Consolidated Financial Statements). Changes in long-term debt. HEI . On March 21, 2016, HEI entered into a $75 million term loan agreement with Bank of America, N.A., which matures on March 23, 2018, and includes substantially the same financial covenant and customary conditions as the HEI credit agreement described above. On March 23, 2016, HEI drew an initial $75 million Eurodollar term loan at an initial interest rate of 1.18% for an initial one month interest period (and with subsequent resetting interest rates averaging 1.25% through December 31, 2016). The proceeds from the term loan were used to pay off HEI’s $75 million 4.41% senior note at maturity on March 24, 2016. Hawaiian Electric . On December 15, 2016, Hawaiian Electric issued, through a private placement pursuant to the Note Purchase Agreement, $40 million of Series 2016A unsecured senior notes bearing taxable interest of 4.54% , which are due December 1, 2046 (the Notes) and includes substantially the same financial covenants and customary conditions as Hawaiian Electric's credit agreement as described above. All the proceeds of the Notes were used by Hawaiian Electric to finance its capital expenditures and/or to reimburse funds used for the payment of capital expenditures. 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.” The foregoing is a brief summary of only certain of the terms and conditions of the Note Purchase Agreement and does not purport to be a complete discussion of their terms. Accordingly, the foregoing description is qualified in its entirety by reference to the Note Purchase Agreement listed as Exhibit 4.23 to this Form 10-K. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' equity | 9 · Shareholders’ equity Reserved shares. As of December 31, 2016 , HEI had reserved a total of 11,857,869 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 2016, 2015 and 2014, 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 gains(losses) on derivatives Retirement benefit plans AOCI Unrealized losses on derivatives Retirement benefit plans AOCI Balance, December 31, 2013 $ (3,663 ) $ (525 ) $ (12,562 ) $ (16,750 ) $ — $ 608 $ 608 Current period other comprehensive income (loss) 4,125 236 (14,989 ) (10,628 ) — (563 ) (563 ) Balance, December 31, 2014 462 (289 ) (27,551 ) (27,378 ) — 45 45 Current period other comprehensive income (loss) (2,334 ) 235 3,215 1,116 — 880 880 Balance, December 31, 2015 (1,872 ) (54 ) (24,336 ) (26,262 ) — 925 925 Current period other comprehensive loss (6,059 ) (400 ) (408 ) (6,867 ) (454 ) (793 ) (1,247 ) Balance, December 31, 2016 $ (7,931 ) $ (454 ) $ (24,744 ) $ (33,129 ) $ (454 ) $ 132 (322 ) Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Years ended December 31 2016 2015 2014 Affected line item in the Statement of Income (in thousands) HEI consolidated Net realized gains on securities $ (360 ) $ — $ (1,715 ) Revenues-bank (net gains on sales of securities) Derivatives qualified as cash flow hedges Window forward contracts (173 ) — — Revenues-electric utilities (gains on window forward contracts – see Note 4 for additional details) Interest rate contracts (settled in 2011) 54 235 236 Interest expense Retirement benefit plan items Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 14,518 22,465 11,344 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets 28,584 (25,139 ) 207,833 See Note 10 for additional details Total reclassifications $ 42,623 $ (2,439 ) $ 217,698 Hawaiian Electric consolidated Derivatives qualified as cash flow hedges Window forward contracts (173 ) — — Revenues (gains on window forward contracts – see Note 4 for additional details) Retirement benefit plan items Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 13,254 $ 20,381 $ 10,212 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets 28,584 (25,139 ) 207,833 See Note 10 for additional details Total reclassifications $ 41,665 $ (4,758 ) $ 218,045 |
Retirement benefits
Retirement benefits | 12 Months Ended |
Dec. 31, 2016 | |
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 $0.9 million and $1.0 million in 2016 and 2015 , 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 $47 million pretax and $(41) million pretax for 2016 and 2015 , 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 2016 , 2015 and 2014 was $31 million , $30 million and $32 million , respectively. Defined benefit pension and other postretirement benefit plans information. The changes in the obligations and assets of the Company’s and Utilities' retirement benefit plans and the changes in AOCI (gross) for 2016 and 2015 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, 2016 and 2015 were as follows: 2016 2015 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,798,030 $ 221,540 $ 1,847,228 $ 219,209 Service cost 60,555 3,331 66,260 3,927 Interest cost 81,549 9,670 76,960 9,011 Actuarial losses (gains) 67,741 7,831 (124,239 ) (2,911 ) Participants contributions — 1,405 — 1,274 Benefits paid and expenses (72,381 ) (9,942 ) (68,179 ) (8,970 ) Benefit obligation, December 31 1,935,494 233,835 1,798,030 221,540 Fair value of plan assets, January 1 1,271,474 170,687 1,266,060 180,332 Actual (loss) return on plan assets 103,836 11,352 (14,422 ) (2,866 ) Employer contributions 65,463 42 86,802 917 Participants contributions — 1,405 — 1,274 Benefits paid and expenses (71,072 ) (9,235 ) (66,966 ) (8,970 ) Fair value of plan assets, December 31 1,369,701 174,251 1,271,474 170,687 Accrued benefit asset (liability), December 31 $ (565,793 ) $ (59,584 ) $ (526,556 ) $ (50,853 ) Other assets $ 13,477 $ — $ 12,509 $ — Defined benefit pension and other postretirement benefit plans liability (579,270 ) (59,584 ) (539,065 ) (50,853 ) Accrued benefit asset (liability), December 31 $ (565,793 ) $ (59,584 ) $ (526,556 ) $ (50,853 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 581,763 $ 32,550 $ 639,831 $ 20,933 Recognized during year – prior service credit (cost) 57 1,793 (4 ) 1,793 Recognized during year – net actuarial losses (24,832 ) (804 ) (36,800 ) (1,796 ) Occurring during year – net actuarial losses (gains) 62,463 8,751 (21,264 ) 11,620 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 619,451 42,290 581,763 32,550 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 $ 42,518 $ (1,684 ) $ 42,979 $ (2,783 ) Net actuarial loss $ 619,582 $ 52,792 $ 581,951 $ 44,845 Prior service gain (131 ) (10,502 ) (188 ) (12,295 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 619,451 42,290 581,763 32,550 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 42,518 (1,684 ) 42,979 (2,783 ) Income taxes (benefits) (16,746 ) 656 (16,944 ) 1,084 AOCI debit/(credit), net of taxes (benefits), December 31 $ 25,772 $ (1,028 ) $ 26,035 $ (1,699 ) As of December 31, 2016 and 2015, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. 2016 2015 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,649,690 $ 213,990 $ 1,690,777 $ 211,760 Service cost 58,796 3,284 64,262 3,870 Interest cost 74,808 9,337 70,529 8,700 Actuarial losses (gains) 63,121 7,545 (114,286 ) (2,860 ) Participants contributions — 1,389 — 1,260 Benefits paid and expenses (66,789 ) (9,822 ) (63,037 ) (8,858 ) Transfers — — 1,445 118 Benefit obligation, December 31 1,779,626 225,723 1,649,690 213,990 Fair value of plan assets, January 1 1,141,833 167,930 1,129,005 177,256 Actual (loss) return on plan assets 93,441 11,168 (10,646 ) (2,712 ) Employer contributions 64,236 11 85,139 864 Participants contributions — 1,389 — 1,260 Benefits paid and expenses (66,326 ) (9,115 ) (62,584 ) (8,858 ) Other — — 919 120 Fair value of plan assets, December 31 1,233,184 171,383 1,141,833 167,930 Accrued benefit asset (liability), December 31 $ (546,442 ) $ (54,340 ) $ (507,857 ) $ (46,060 ) Other liabilities (short-term) (460 ) (596 ) (425 ) (518 ) Defined benefit pension and other postretirement benefit plans liability (545,982 ) (53,744 ) (507,432 ) (45,542 ) Accrued benefit asset (liability), December 31 $ (546,442 ) $ (54,340 ) $ (507,857 ) $ (46,060 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 541,118 $ 31,485 $ 595,103 $ 20,090 Recognized during year – prior service credit (cost) (13 ) 1,803 (40 ) 1,804 Recognized during year – net actuarial losses (22,693 ) (793 ) (33,371 ) (1,754 ) Occurring during year – net actuarial losses (gains) 61,313 8,472 (20,574 ) 11,345 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 579,725 40,967 541,118 31,485 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 $ 2,792 $ (3,007 ) $ 2,334 $ (3,848 ) Net actuarial loss $ 579,691 $ 51,463 $ 541,071 $ 43,784 Prior service cost (gain) 34 (10,496 ) 47 (12,299 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 579,725 40,967 541,118 31,485 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 2,792 (3,007 ) 2,334 (3,848 ) Income taxes (benefits) (1,087 ) 1,170 (908 ) 1,497 AOCI debit/(credit), net of taxes (benefits), December 31 $ 1,705 $ (1,837 ) $ 1,426 $ (2,351 ) As of December 31, 2016 and 2015 , the other postretirement benefit plan shown in the table above had ABOs in excess of plan assets. The Company does not expect any plan assets to be returned to the Company during the calendar year 2017. The dates used to determine retirement benefit measurements for the defined benefit plans were December 31 of 2016 , 2015 and 2014 . 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). The funding relief was extended by the Bipartisan Budget Act of 2015. As a result, the minimum funding requirements for the HEI Retirement Plan under ERISA are less than the net periodic cost for 2015 and 2016. Nevertheless, to satisfy the requirements of the Utilities pension and OPEB tracking mechanisms, the Utilities contributed the net periodic cost in 2015 and 2016 and expect to contribute the net periodic cost in 2017. 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 2014, 2015 and 2016 so that the more conservative assumptions did not apply for either 2015 or 2016 and will not apply for 2017. 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 2016 2015 Target Range 2016 2015 Target Range Assets held by category Equity securities managers 71 % 70 % 70 % 65-75 70 % 70 % 70 % 65-75 Fixed income securities managers 29 30 30 25-35 30 30 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation 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, 2016 and 2015, nearly all of its pension assets were invested in fixed income securities. 2 Asset allocation is applicable to only HEI and the Utilities. ASB does not fund its other benefits. 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 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs December 31 Level 1 Level 2 Level 3 2016 Equity securities $ 692 $ 692 $ — $ — $ 94 $ 94 $ — $ — Equity index funds 129 129 — — 17 17 — — Equity investments at net asset value (NAV) 56 — — — 9 — — — Total equity investments 877 821 — — 120 111 — — Fixed income securities and public mutual funds 276 84 192 — 44 42 2 — Fixed income investments at NAV 180 — — — 4 — — — Total fixed income investments 456 84 192 — 48 42 2 — Cash equivalents at NAV 33 — — — 6 — — — Total $ 1,366 $ 905 $ 192 $ — $ 174 $ 153 $ 2 $ — Cash, receivables and payables, net 4 — Fair value of plan assets $ 1,370 $ 174 2015 Equity securities $ 640 $ 640 $ — $ — $ 92 $ 92 $ — $ — Equity index funds 119 119 — — 17 17 — — Equity investments at NAV 46 — — — 9 — — — Total equity investments 805 759 — — 118 109 — — Fixed income securities and public mutual funds 260 85 175 — 44 42 2 — Fixed income investments at NAV 165 — — — 4 — — — Total fixed income investments 425 85 175 — 48 42 2 — Cash equivalents at NAV 38 — — — 5 — — — Total 1,268 $ 844 $ 175 $ — 171 $ 151 $ 2 $ — Cash, receivables and payables, net 3 — Fair value of plan assets $ 1,271 $ 171 Pension benefits Other benefits Measured at net asset value December 31 Redemption frequency Redemption notice period December 31 Redemption frequency Redemption notice period (in millions) 2016 Non U.S. equity funds (a) 56 Daily - Quarterly 0 - 30 days 9 Monthly -Quarterly 10-30 days Fixed income investments (b) 180 Monthly 10 days 4 Monthly 10 days Cash equivalents (c) 33 Daily 0-1 day 6 Daily 0-1 day $ 269 $ 19 2015 Non U.S. equity funds (a) 46 Daily - Quarterly 0 - 30 days 9 Monthly - Quarterly 10-30 days Fixed income investments (b) 165 Monthly 10 days 4 Monthly 10 days Cash equivalents (c) 38 Daily 0-1 day 5 Daily 0-1 day $ 249 $ 18 None of the investments presented in the tables above have unfunded commitments. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2016 and 2015 were: daily, 31% and 24% ; monthly, 31% and 29% ; and quarterly, 38% and 47% , respectively. Redemption frequency for other benefits assets as of December 31, 2016 and 2015 were: monthly, 57% and 54% ; and quarterly, 42% and 46% , respectively. (b ) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers; the fund has an average rating of AA1. The fair values of the investments shown in the table above represent the Company’s best estimates of the amounts that would be received upon sale of those assets 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 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. Those judgments are developed by the Company based on the best information available in the circumstances. The fair value of investments measured at net asset value presented in the tables above are intended to permit reconciliation to the fair value of plan assets amounts. 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, 2016 and 2015 . 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 (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. The following weighted-average assumptions were used in the accounting for the plans: Pension benefits Other benefits December 31 2016 2015 2014 2016 2015 2014 Benefit obligation Discount rate 4.26 % 4.60 % 4.22 % 4.22 % 4.57 % 4.17 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.60 4.22 5.09 4.57 4.17 5.03 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 2016 and 2015, HEI's and utilities' plan assets only. For 2016 and 2015, ASB's expected return on plan assets was 4.80% and 4.22% , respectively. The Company and the Utilities based their selection of an assumed discount rate for 2017 NPPC, NPBC and December 31, 2016 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, 2016 . In selecting the expected rate of return on plan assets for 2017 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 7.50% and b) ASB considered its liability driven investment strategy in selecting 4.46% , which is consistent with the assumed discount rate as of December 31, 2016 with a 20 basis point active manager premium. For 2016, the Company's retirement benefit plans' assets had a net return of 8.0% . 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, 2016 and 2015 (based on information published by the Society of Actuaries in October 2016 and 2015, respectively), the use of which lowered obligations of the Company and Utilities as of December 31, 2016 and 2015 and will lower their costs and required contributions in 2017. As of December 31, 2016 , the assumed health care trend rates for 2017 and future years were as follows: medical, 7.75% , grading down to 5% for 2028 and thereafter; dental, 5% ; and vision, 4% . 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% . The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2016 2015 2014 2016 2015 2014 HEI consolidated Service cost $ 60,555 $ 66,260 $ 49,264 $ 3,331 $ 3,927 $ 3,490 Interest cost 81,549 76,960 72,202 9,670 9,011 8,550 Expected return on plan assets (98,559 ) (88,554 ) (81,355 ) (12,273 ) (11,664 ) (10,902 ) Amortization of net prior service (gain) cost (57 ) 4 88 (1,793 ) (1,793 ) (1,793 ) Amortization of net actuarial losses (gains) 24,832 36,800 20,304 804 1,796 (11 ) Net periodic pension/benefit cost 68,320 91,470 60,503 (261 ) 1,277 (666 ) Impact of PUC D&Os (18,117 ) (40,011 ) (13,324 ) 1,343 (240 ) 1,976 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) 50,203 51,459 47,179 1,082 1,037 1,310 Hawaiian Electric consolidated Service cost $ 58,796 $ 64,262 $ 47,597 $ 3,284 $ 3,870 $ 3,392 Interest cost 74,808 70,529 65,979 9,337 8,700 8,234 Expected return on plan assets (91,633 ) (82,541 ) (72,661 ) (12,096 ) (11,495 ) (10,739 ) Amortization of net prior service (gain) cost 13 40 62 (1,803 ) (1,804 ) (1,804 ) Amortization of net actuarial losses 22,693 33,371 18,459 793 1,754 — Net periodic pension/benefit cost 64,677 85,661 59,436 (485 ) 1,025 (917 ) Impact of PUC D&Os (18,117 ) (40,011 ) (13,324 ) 1,343 (240 ) 1,976 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 46,560 $ 45,650 $ 46,112 $ 858 $ 785 $ 1,059 The estimated prior service credit and net actuarial loss for defined benefit plans that will be amortized from AOCI or regulatory assets into NPPC and NPBC during 2017 is as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Pension benefits Other benefits Pension benefits Other benefits Estimated prior service credit $ (0.1 ) $ (1.8 ) $ — $ (1.8 ) Net actuarial loss 26.1 1.5 24.0 1.4 The Company recorded pension expense of $33 million , $35 million and $32 million and OPEB expense of $1.0 million , $0.9 million and $1.2 million in 2016 , 2015 and 2014 , respectively, and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $30 million , $29 million and $31 million and OPEB expense of $0.7 million , $0.7 million and $1.0 million in 2016 , 2015 and 2014 , 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, 2016 , 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 $0.1 million and the accumulated postretirement benefit obligation (APBO) by $3.5 million , and a one-percentage-point decrease would have reduced the total service and interest cost by $0.2 million and the APBO by $4.2 million . As of December 31, 2016 , 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 $0.1 million and the APBO by $3.4 million , and a one-percentage-point decrease would have reduced the total service and interest cost by $0.2 million and the APBO by $4.1 million . Additional information on the defined benefit pension plans' accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), PBOs and assets were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2016 2015 2016 2015 (in billions) Defined benefit plans - ABOs $ 1.7 $ 1.6 $ 1.5 $ 1.4 Defined benefit plans with ABO in excess of plan assets ABOs 1.6 1.5 1.5 1.4 Plan assets 1.3 1.2 1.2 1.1 Defined benefit plans with PBOs in excess of plan assets PBOs 1.8 1.7 1.8 1.6 Plan assets 1.3 1.2 1.2 1.1 HEI consolidated . The Company estimates that the cash funding for the qualified defined benefit pension plans in 2017 will be $67 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 2017 is $0.2 million . As of December 31, 2016 , the benefits expected to be paid under all retirement benefit plans in 2017 , 2018 , 2019 , 2020 , 2021 and 2022 through 2026 amount to $85 million , $89 million , $92 million , $97 million , $101 million and $570 million , respectively. Hawaiian Electric consolidated . The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2017 will be $66 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 2017 is $0.2 million . As of December 31, 2016 , the benefits expected to be paid under all retirement benefit plans in 2017 , 2018 , 2019 , 2020 , 2021 and 2022 through 2026 amounted to $79 million , $81 million , $84 million , $89 million , $92 million and $522 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 2016 , 2015 and 2014 , the Company’s expenses for its defined contribution pension plans under the HEIRSP and the ASB 401(k) Plan were $5 million , $6 million and $5 million , respectively, and cash contributions were $5 million , $5 million and $5 million , respectively. The Utilities’ expenses and cash contributions for its defined contribution pension plan under the HEIRSP Plan for 2016 , 2015 and 2014 were $1.5 million , $1.5 million and $0.9 million , respectively. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , approximately 3.4 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 0.3 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. 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 reserved 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, 2016. 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, 2016. Restricted stock units awarded under the 2010 Equity and Incentive Plan in 2016, 2015, 2014, and 2013 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 2014-2016 long-term incentive plan (LTIP) 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, 2016 , there were 121,198 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) 2016 2015 2014 HEI consolidated Share-based compensation expense 1 $ 4.8 $ 6.5 $ 9.3 Income tax benefit 1.6 2.3 3.4 Hawaiian Electric consolidated Share-based compensation expense 1 1.4 1.9 3.1 Income tax benefit 0.5 0.7 1.2 1 For 2016, the Company has not capitalized any share-based compensation. $0.15 million and $0.16 million of this share-based compensation expense was capitalized in 2015 and 2014 , respectively. Stock awards. Nonemployee director awards totaling $0.2 million were paid in cash (in lieu of common stock) in July 2016. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows: (dollars in millions) 2016 2015 2014 Shares granted 19,846 28,246 33,170 Fair value $ 0.6 $ 0.8 $ 0.8 Income tax benefit 0.2 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 the grant date. Stock appreciation rights. Information about HEI’s SARs is summarized as follows: 2015 2014 Shares (1) Shares (1) Outstanding, January 1 80,000 $ 26.18 164,000 $ 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 Exercisable, December 31 — $ — 80,000 $ 26.18 (1) Weighted-average exercise price SARs activity and statistics were as follows: (in thousands) 2015 2014 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 equivalent rights exceeds the exercise price of the right. Restricted shares and restricted stock awards. Information about HEI’s grants of restricted shares and restricted stock awards was as follows: 2014 Shares (1) Outstanding, January 1 4,503 $ 22.21 Granted — — Vested (4,503 ) 22.21 Forfeited — — Outstanding, December 31 — $ — (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 , total restricted stock vested had a grant-date fair value of $0.1 million and the tax benefits realized for the tax deductions related to restricted stock awards was nil. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: 2016 2015 2014 Shares (1) Shares (1) Shares (1) Outstanding, January 1 210,634 $ 28.82 261,235 $ 25.77 288,151 $ 25.17 Granted 114,431 29.70 85,772 33.69 117,786 25.17 Vested (85,003 ) 27.84 (102,173 ) 25.67 (144,702 ) 24.09 Forfeited (19,379 ) 29.82 (34,200 ) 27.09 — — Outstanding, December 31 220,683 $ 29.57 210,634 $ 28.82 261,235 $ 25.77 Total weighted-average grant-date fair value of shares granted ($ millions) $ 3.4 $ 2.9 $ 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 2016 , 2015 and 2014 , total restricted stock units and related dividends that vested had a fair value of $2.8 million , $3.7 million and $4.1 million , respectively, and the related tax benefits were $0.9 million , $1.1 million and $1.2 million , respectively. As of December 31, 2016 , there was $4.2 million of total unrecognized compensation cost related to the nonvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 2.4 years . Long-term incentive plan payable in stock. The 2014-2016 LTIP provides 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 period includes 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 three -year period. In addition, the 2014-2016 LTIP has performance goals related to levels of HEI weighted composite return on average common equity (ROACE), Hawaiian Electric consolidated ROACE and ASB net income - all based on the three -year averages, and ASB return on assets relative to performance peers. The 2015-2017 and the 2016-2018 LTIP provide for performance awards payable in cash and, thus, are not included in the tables below. LTIP linked to TRS . Information about HEI’s LTIP grants linked to TRS was as follows: 2016 2015 2014 Shares (1) Shares (1) Shares (1) Outstanding, January 1 162,500 $ 27.66 257,956 $ 28.45 232,127 $ 32.88 Granted — — — — 97,524 22.95 Vested (lapsed because goal not met) (78,553 ) 32.69 (75,915 ) 30.71 (70,189 ) 35.46 Forfeited (841 ) 22.95 (19,541 ) 26.25 (1,506 ) 28.32 Outstanding, December 31 83,106 $ 22.95 162,500 $ 27.66 257,956 $ 28.45 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ — $ 2.2 (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 Risk-free interest rate 0.66 % Expected life in years 3 Expected volatility 17.8 % Range of expected volatility for Peer Group 12.4% to 23.3% Grant date fair value (per share) $ 22.95 For 2016 , 2015 and 2014 , all of the shares vested (which were granted at target level based on the satisfaction of TRS performance) for the 2013-2015 LTIP, 2012-2014 LTIP and 2011-2013 LTIP were treated as lapsed because the TRS performance goal was not met. As of December 31, 2016 , there was no unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TRS. LTIP awards linked to other performance conditions . Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: 2016 2015 2014 Shares (1) Shares (1) Shares (1) Outstanding, January 1 222,647 $ 26.02 364,731 $ 26.01 296,843 $ 26.14 Granted — — — — 129,603 25.18 Vested and settled (109,097 ) 26.89 (121,249 ) 26.05 (65,089 ) 24.95 Increase above target (cancelled) (1,989 ) 25.26 3,412 26.89 4,949 26.70 Forfeited (1,745 ) 25.19 (24,247 ) 25.82 (1,575 ) 26.07 Outstanding, December 31 109,816 $ 25.18 222,647 $ 26.02 364,731 $ 26.01 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ — $ — $ 3.3 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2016 , 2015 and 2014 , total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $3.6 million , $4.7 million and $1.9 million , respectively, and the related tax benefits were $1.4 million , $1.8 million and $0.8 million , respectively. As of December 31, 2016 , there was no unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TRS. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 2016 2015 2014 (in thousands) Federal Current $ 59,873 $ 44,343 $ (8,959 ) $ 952 $ — $ 1,108 Deferred 43,666 36,664 91,412 70,513 68,757 68,775 Deferred tax credits, net 268 318 — 268 318 — 103,807 81,325 82,453 71,733 69,075 69,883 State Current 16,473 2,402 (5,793 ) 9,232 (1,048 ) (9,436 ) Deferred 3,452 4,768 12,813 3,873 6,869 14,172 Deferred tax credits, net (37 ) 4,526 6,106 (37 ) 4,526 6,106 19,888 11,696 13,126 13,068 10,347 10,842 Total $ 123,695 $ 93,021 $ 95,579 $ 84,801 $ 79,422 $ 80,725 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 2016 2015 2014 2016 2015 2014 (in thousands) Amount at the federal statutory income tax rate $ 130,844 $ 89,176 $ 92,959 $ 80,190 $ 75,996 $ 77,126 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 13,915 8,097 9,073 8,494 6,726 7,047 Other, net (21,064 ) (4,252 ) (6,453 ) (3,883 ) (3,300 ) (3,448 ) Total $ 123,695 $ 93,021 $ 95,579 $ 84,801 $ 79,422 $ 80,725 Effective income tax rate 33.1 % 36.5 % 36.0 % 37.0 % 36.6 % 36.6 % The Company's effective tax rate decreased in 2016 compared to 2015 and 2014 primarily due to the deductibility of previously capitalized merger costs. Additionally, current taxable income provided capacity for the domestic production activities deduction. 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 2016 2015 2016 2015 (in thousands) Deferred tax assets Net operating loss 1 $ — $ — $ 9,158 $ 37,283 Allowance for bad debts 24,500 21,781 2,364 1,852 Other 47,201 43,089 18,720 18,386 Total deferred tax assets 71,701 64,870 30,242 57,521 Deferred tax liabilities Property, plant and equipment related 538,484 492,441 536,885 489,884 Repairs deduction 103,782 104,081 103,782 104,081 Regulatory assets, excluding amounts attributable to property, plant and equipment 35,107 34,261 35,107 34,261 Deferred RAM and RBA revenues 26,053 26,400 26,053 26,400 Retirement benefits 48,400 42,006 51,445 44,991 Other 48,681 46,558 10,629 12,710 Total deferred tax liabilities 800,507 745,747 763,901 712,327 Net deferred income tax liability $ 728,806 $ 680,877 $ 733,659 $ 654,806 1 The Hawaiian Electric deferred tax asset includes the tax effect of federal net operating loss carryforwards of $9 million expiring in 2034 and federal general business credit carryforwards of $3 million expiring in 2032 through 2036, net of unrecognized federal tax benefits of $3 million due to uncertain tax positions. 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, 2016 , the valuation allowance for deferred tax benefits is not significant. In 2016 , the net deferred income tax liability continued to increase primarily as a result of accelerated tax deductions taken for bonus depreciation 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, 2016 , 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, 2016 has decreased from December 31, 2015 as shown above. The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2016, 2015 and 2014. HEI consolidated Hawaiian Electric consolidated (in millions) 2016 2015 2014 2016 2015 2014 Unrecognized tax benefits, January 1 $ 3.6 $ — $ 0.9 $ 3.6 $ — 0.5 Reductions based on tax positions taken during the year (0.1 ) — — (0.1 ) — — Additions for tax positions of prior years 0.3 3.6 0.1 0.3 3.6 0.1 Settlements (1.0 ) — — (0.6 ) Unrecognized tax benefits, December 31 $ 3.8 $ 3.6 $ — $ 3.8 $ 3.6 $ — HEI consolidated. The Company recognizes interest accrued related to unrecognized tax benefits in “Interest expense-other than on deposit liabilities and other bank borrowings” and penalties, if any, in operating expenses. In 2016, 2015 and 2014, the Company recognized approximately $0.2 million , $0.1 million and $(1.7) million in interest (income) expense. The credit adjustments to interest expense in 2014 were primarily due to the resolution of tax issues with the Internal Revenue Service (IRS). The Company had $0.3 million and $0.1 million of interest accrued as of December 31, 2016 and 2015 , respectively. Hawaiian Electric consolidated. The Utilities recognize interest accrued related to unrecognized tax benefits in “Interest expense-other than on deposit liabilities and other bank borrowings” and penalties, if any, in operating expenses. In 2016, 2015 and 2014, the Utilities recognized approximately $0.03 million , $0.1 million and $(0.7) million , respectively, in interest (income) expense. Additional interest expense related to the Utilities' unrecognized tax benefits was recognized at HEI Consolidated because of the Utilities NOL position. The credit adjustments to interest expense in 2014 were primarily due to the resolution of tax issues with the IRS. The Utilities had $0.1 million and $0.1 million of interest accrued as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , the disclosures above present the Company’s and the Utilities' accruals for potential tax liabilities. 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 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. IRS examinations have been completed and settled through the tax year 2011 and the statute of limitations has tolled for tax year 2012, leaving subsequent years subject to IRS examination. The tax years 2011 and subsequent are still subject to examination by the Hawaii Department of Taxation. Recent tax developments. 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 continues 50% bonus depreciation through 2017, phases down the percentage to 40% in 2018 and 30% in 2019 and then terminates bonus depreciation thereafter. Tax depreciation is expected to increase by approximately $126 million in 2016 and result in increased accumulated deferred tax liabilities. Additionally, the “Consolidating Appropriations Act, 2016” extended a variety of energy-related credits that were expired or were 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, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | 13 · Cash flows Years ended December 31 2016 2015 2014 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 84 $ 83 $ 84 Income taxes paid 55 75 47 Income taxes refunded 45 55 24 Hawaiian Electric consolidated Interest paid to non-affiliates 62 61 61 Income taxes paid 1 13 6 Income taxes refunded 20 12 8 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment – change in unpaid invoices and accruals (investing) 14 5 43 Common stock dividends reinvested in HEI common stock (financing) 1 17 — — Loans transferred from held for investment to held for sale (investing) 24 — — Real estate acquired in settlement of loans (investing) 1 1 3 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 1 5 — Obligations to fund low income housing investments, net (operating) 14 4 14 Hawaiian Electric consolidated Electric utility property, plant and equipment AFUDC-equity (operating) 8 7 7 Estimated fair value of noncash contributions in aid of construction (investing) 28 3 3 Change in unpaid invoices and accruals (investing) 14 5 40 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, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory restrictions on net assets | 14 · Regulatory restrictions on net assets As of December 31, 2016 , the Utilities could not transfer approximately $729 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, 2016 , ASB could transfer approximately $152 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, 2016 | |
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, 2016 | |
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 and goodwill. Fair value measurement and disclosure valuation methodology. The 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 ASB 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 ASB’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. The fair value of the mortgage revenue bond is estimated using a discounted cash flow model to calculate the present value of future principal and interest payments and, therefore is classified within Level 3 of the valuation hierarchy. Loans held for sale . 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 fixed-rate advances and repurchase agreements, fair value is estimated using quantitative discounted cash flow models that require the use of interest rate inputs that are currently offered for 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-other than bank . 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. Window forward contract . The estimated fair value was obtained from a third-party financial services provider based on the effective exchange rate offered for the foreign currency denominated transaction. Window forward contracts are classified as Level 2 measurements. The following table presents the carrying or notional 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, 2016 Financial assets HEI consolidated Money market funds $ 13,085 $ — $ 13,085 $ — $ 13,085 Available-for-sale investment securities 1,105,182 — 1,089,755 15,427 1,105,182 Stock in Federal Home Loan Bank 11,218 — 11,218 — 11,218 Loans receivable, net 4,701,977 — 13,333 4,839,493 4,852,826 Mortgage servicing rights 9,373 — — 13,216 13,216 Bank-owned life insurance 143,197 — 143,197 — 143,197 Derivative assets 23,578 — 453 — 453 Financial liabilities HEI consolidated Deposit liabilities 5,548,929 — 5,546,644 — 5,546,644 Other bank borrowings 192,618 — 193,991 — 193,991 Long-term debt, net—other than bank 1,619,019 — 1,704,717 — 1,704,717 Derivative liabilities 53,852 129 823 — 952 Hawaiian Electric consolidated Long-term debt, net 1,319,260 — 1,399,490 — 1,399,490 Derivative liabilities 20,734 — 743 — 743 December 31, 2015 Financial assets HEI consolidated 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 8,884 — — 11,790 11,790 Bank-owned life insurance 138,139 — 138,139 — 138,139 Derivative assets 22,616 — 385 — 385 Financial liabilities HEI consolidated 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* 1,578,368 — 1,669,087 — 1,669,087 Derivative liabilities 23,269 15 15 — 30 Hawaiian Electric consolidated Long-term debt, net* 1,278,702 — 1,363,766 — 1,363,766 * See Note 1 for the impact to prior period financial information of the adoption of ASU No. 2015-03. Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: December 31 2016 2015 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) $ — $ 13,085 $ — $ — $ 10 $ — Available-for-sale investment securities (bank segment) Mortgage-related securities-FNMA, FHLMC and GNMA $ — $ 897,474 $ — $ — $ 607,689 $ — U.S. Treasury and federal agency obligations — 192,281 — — 212,959 — Mortgage revenue bond — — 15,427 — — — $ — $ 1,089,755 $ 15,427 $ — $ 820,648 $ — Derivative assets (bank segment) 1 Interest rate lock commitments $ — $ 445 $ — $ — $ 384 $ — Forward commitments — 8 — — 1 — $ — $ 453 $ — $ — $ 385 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 24 $ — $ — $ — $ — Forward commitments (bank segment) 1 129 56 — 15 15 — Window forward contracts (electric utility segment) 2 — 743 — — — — $ 129 $ 823 $ — $ 15 $ 15 $ — 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. 2 Liability derivatives are included in other current liabilities in the balance sheets. 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, 2016 and 2015. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in thousands) Mortgage revenue bond Balance at December 31, 2015 $ — Principal payments received — Purchases 15,427 Unrealized gain (loss) included in other comprehensive income — Balance at December 31, 2016 $ 15,427 ASB holds one mortgage revenue bond issued by the Department of Budget and Finance of the State of Hawaii. The Company estimates the fair value by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The unobservable input used in the fair value measurement is the weighted average discount rate. As of December 31, 2016, the weighted average discount rate was 2.517% which was derived by incorporating a credit spread over the one month LIBOR rate. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. 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, 2016 Loans $ 2,767 $ — $ — $ 2,767 Real estate acquired in settlement of loans 1,189 — — 1,189 December 31, 2015 Loans 178 — — 178 Real estate acquired in settlement of loans 1,030 — — 1,030 For 2016 and 2015 , there were no adjustments to fair value for ASB’s loans held for sale. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2016 Residential loans $ 2,468 Sales price Sales price 95-100% 97% Residential loans 287 Fair value of property or collateral Appraised value less 7% selling cost 42-65% 61% Home equity lines of credit 12 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 2,767 Real estate acquired in settlement of loans $ 1,189 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% 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% (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. |
Other related-party transaction
Other related-party transactions | 12 Months Ended |
Dec. 31, 2016 | |
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 Chair 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) 2016 2015 2014 2016 2015 2014 HMSA costs $ 28 $ 30 $ 25 $ 22 $ 23 $ 20 HMSA expense* 20 21 18 14 14 13 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, 2016 | |
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 2016 1 Revenues $ 550,960 $ 566,244 $ 646,055 $ 617,395 $ 2,380,654 Operating income 68,851 85,455 105,442 88,427 348,175 Net income 32,825 44,601 127,613 45,107 250,146 Net income for common stock 32,352 44,128 127,142 44,634 248,256 Basic earnings per common share 2 0.30 0.41 1.17 0.41 2.30 Diluted earnings per common share 3 0.30 0.41 1.17 0.41 2.29 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Market price per common share 4 High 32.69 34.98 33.57 34.08 34.98 Low 27.30 31.35 29.14 28.31 27.30 2015 1 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 2 0.31 0.33 0.47 0.39 1.50 Diluted earnings per common share 3 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 4 High 34.86 32.58 31.28 30.29 34.86 Low 31.75 29.62 27.02 27.45 27.02 Hawaiian Electric consolidated 2016 Revenues $ 482,052 $ 495,395 $ 572,253 $ 544,668 $ 2,094,368 Operating income 55,326 70,686 89,812 68,644 284,468 Net income 25,866 36,356 47,472 34,618 144,312 Net income for common stock 25,367 35,857 46,974 34,119 142,317 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 Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful. 1 In the third quarter of 2016, HEI received a $90 million termination fee from NEE and in 2016 and 2015 received and incurred other merger and spin-off-related amounts (see Note 2 to the Consolidated Financial Statements). For the first quarter of 2015, second quarter of 2015, third quarter of 2015, fourth quarter of 2015, first quarter of 2016, second quarter of 2016 and third quarter of 2016, the Company recorded merger- and spin-off-related income/(expenses), net of tax impacts of $(5) million , $(7) million , $(2) million , $(2) million , $(2) million , $(2) million and $64 million , respectively. 2 The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. 3 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. 4 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, 2016 | |
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 2016 2015 (dollars in thousands) Assets Cash and cash equivalents $ 14,924 $ 55,116 Accounts receivable 3,788 5,459 Property, plant and equipment, net 4,143 4,514 Deferred income tax assets 17,280 16,715 Other assets 9,858 11,650 Investments in subsidiaries, at equity 2,383,405 2,293,679 Total assets $ 2,433,398 $ 2,387,133 Liabilities and shareholders’ equity Liabilities Accounts payable $ 379 $ 1,254 Interest payable 1,735 2,450 Notes payable to subsidiaries 5,373 5,946 Commercial paper — 103,063 Long-term debt, net 299,759 299,666 Retirement benefits liability 33,939 31,704 Other 25,460 15,410 Total liabilities 366,645 459,493 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: 108,583,413 1,660,910 1,629,136 Retained earnings 438,972 324,766 Accumulated other comprehensive loss (33,129 ) (26,262 ) Total shareholders' equity 2,066,753 1,927,640 Total liabilities and shareholders' equity $ 2,433,398 $ 2,387,133 SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF INCOME Years ended December 31 2016 2015 2014 (in thousands) Revenues $ 647 $ 327 $ 303 Equity in net income of subsidiaries 199,485 190,033 188,727 Expenses: Operating, administrative and general 18,701 34,350 20,921 Depreciation of property, plant and equipment 566 576 575 Taxes, other than income taxes 4,726 440 469 Total expenses 23,993 35,366 21,965 Income before merger termination fee, interest expense and income (taxes) benefits 176,139 154,994 167,065 Merger termination fee 90,000 — — Income before interest expense and income (taxes) benefits 266,139 154,994 167,065 Interest expense 9,037 10,788 11,599 Income before income (taxes) benefits 257,102 144,206 155,466 Income (taxes) benefits (8,846 ) 15,671 13,047 Net income $ 248,256 $ 159,877 $ 168,513 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 2016 2015 2014 (in thousands) Net cash provided by operating activities $ 191,306 $ 97,141 $ 100,794 Cash flows from investing activities Capital expenditures (212 ) (173 ) (74 ) Investments in subsidiaries (24,000 ) — (40,000 ) Other 1 — — Net cash used in investing activities (24,211 ) (173 ) (40,074 ) Cash flows from financing activities Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less (618 ) 87 (222 ) Net increase (decrease) in short-term borrowings with original maturities of three months or less (103,063 ) (15,909 ) 13,490 Proceeds from issuance of long-term debt 75,000 — 125,000 Repayment of long-term debt (75,000 ) — (100,000 ) Excess tax benefits from share-based payment arrangements 404 978 277 Net proceeds from issuance of common stock 13,220 104,435 26,898 Common stock dividends (117,274 ) (131,765 ) (126,458 ) Other 44 46 — Net cash used in financing activities (207,287 ) (42,128 ) (61,015 ) Net increase (decrease) in cash and equivalents (40,192 ) 54,840 (295 ) Cash and cash equivalents, January 1 55,116 276 571 Cash and cash equivalents, December 31 $ 14,924 $ 55,116 $ 276 NOTES TO CONDENSED FINANCIAL INFORMATION Long-term debt The components of long-term debt, net, were as follows: December 31 2016 2015 (dollars in thousands) HEI Term loan LIBOR + .75%, due 2017 $ 125,000 $ 125,000 HEI Term loan LIBOR + .75%, due 2018 75,000 — HEI senior note 4.41%, paid in 2016 — 75,000 HEI senior note 5.67%, due 2021 50,000 50,000 HEI senior note 3.99%, due 2023 50,000 50,000 Less unamortized debt issuance costs (241 ) (334 ) Long-term debt, net $ 299,759 $ 299,666 See Note 1 of the Consolidated Financial Statements for the impact to prior period financial information of the adoption of ASU No. 2015-03. The aggregate payments of principal required within five years after December 31, 2016 on long-term debt are $125 million in 2017, $75 million in 2018 and nil in 2019 and 2020 and $50 million in 2021 . Indemnities As of December 31, 2016 , 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. Income taxes 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. Dividends from subsidiaries In 2016 , 2015 and 2014 , cash dividends received from subsidiaries were $130 million , $121 million and $124 million , respectively. Supplemental disclosures of noncash activities In 2016 , 2015 and 2014 , $2.3 million , $2.3 million and $2.4 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 2016 , 2015 and 2014 , $2.3 million , $0.3 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 $17 million , nil and nil in 2016 , 2015 and 2014 , 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. From January 6, 2016 through December 6, 2016, HEI satisfied its share purchase requirements for the plans through new issuances, except that from June 2, 2016 through August 9, 2016, HEI satisfied the share purchase requirements of the HEIRSP and ASB 401(k) Plan through open market purchases of its common stock. From December 7, 2016 to date, HEI satisfied the share purchase requirements of these three plans through open market purchases of its common stock rather than through new issuances. Other 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, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2016, 2015 and 2014 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 2016 Allowance for uncollectible accounts – electric utility $ 1,699 $ 2,383 $ 877 (a) $ 3,838 (b),(c) $ 1,121 Allowance for uncollectible interest – bank $ 1,679 $ — $ 155 $ — $ 1,834 Allowance for losses for loans receivable – bank $ 50,038 $ 16,763 (d) $ 2,977 (a) $ 14,245 (b) $ 55,533 Deferred tax valuation allowance – HEI $ 54 $ — $ — $ 16 $ 38 2015 Allowance for uncollectible accounts – electric utility $ 1,959 $ 3,653 $ 977 (a) $ 4,890 (b) $ 1,699 Allowance for uncollectible interest – bank $ 1,514 $ — $ 165 $ — $ 1,679 Allowance for losses for loans receivable – bank $ 45,618 $ 6,275 (d) $ 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 (d) $ 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 (a) Primarily recoveries. (b) Bad debts charged off. (c) Reclass of allowance for one customer account into other long term assets. (d) Represents provision for loan loss |
Summary of significant accoun39
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Material estimates that are particularly susceptible to significant change for HEI and its subsidiaries (collectively, the Company) include the amounts reported for investment securities (ASB only); property, plant and equipment; pension and other postretirement benefit obligations; contingencies and litigation; income taxes; derivatives; regulatory assets and liabilities (Utilities only); electric utility revenues (Utilities only); allowance for loan losses (ASB only); and goodwill (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. |
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), 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. |
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. |
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 | 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) 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. 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. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. 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, HEI used the two-class method of computing EPS as restricted stock grants included non-forfeitable rights to dividends and were participating securities. |
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 | Revenues from contracts with customers . 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: (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. ASU No. 2014-09 also requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As of December 31, 2016, the Company has identified its revenue streams from, and performance obligations to, customers, and is currently evaluating the impacts of the new guidance on its ability to recognize revenue for certain contracts where there is uncertainty regarding collection and accounting for contributions in aid of construction. The Company plans to adopt ASU No. 2014-09 (and subsequently issued revenue-related ASUs, as applicable) in the first quarter of 2018, but has not determined the method of adoption (full or modified retrospective application). The Company expects to present more revenue disclosures, but the full impact of adoption of ASU No. 2014-09 on its results of operations, financial condition and liquidity cannot be determined until its evaluation process is complete. Going concern . In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” which requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Disclosure is required if there is substantial doubt about the entity’s ability to continue as a going concern. The Company adopted ASU No. 2014-15 for 2016 and interim periods going forward. Since management has concluded that there are no conditions or events that raise substantial doubt about HEI’s or Hawaiian Electric’s ability to continue as a going concern through February 24, 2018, there was no impact on HEI’s and Hawaiian Electric’s consolidated financial statements. Extraordinary and unusual items . In January 2015, the FASB issued ASU No. 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” which removes the concept of extraordinary items from U.S. GAAP and eliminates the requirement for extraordinary items to be separately presented in the statement of income. The Company adopted ASU 2015-01 prospectively on January 1, 2016 and the adoption did not have a material impact on the Company’s and Hawaiian Electric’s consolidated financial statements. Consolidation . In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which modifies the requirements of consolidation with respect to limited partnerships, entities that are similar in nature to limited partnerships or are VIEs. The amended guidance (1) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; (2) eliminates the presumption that a general partner should consolidate a limited partnership; (3) changes the analysis related to the evaluation of servicing fees and excludes servicing fees that are deemed commensurate with the level of service required from the determination of the primary beneficiary; (4) clarifies certain consideration related to the consolidation analysis when performing a related party assessment; and (5) provides a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Bank Act of 1940 for registered money market funds. The Company retrospectively adopted ASU No. 2015-02 in the first quarter 2016 and the adoption did not have a material impact on HEI’s and Hawaiian Electric’s consolidated financial statements. 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 retrospectively adopted ASU No. 2015-03 in the first quarter 2016 and the adoption did not have a material impact on the Company’s and Hawaiian Electric’s consolidated financial statements. The table below summarizes the impact to the prior period financial statements of the adoption of ASU No. 2015-03: (in thousands) As previously filed Adjustment from adoption of ASU No. 2015-03 As currently reported December 31, 2015 HEI Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) Other assets $ 488,635 $ (8,178 ) $ 480,457 Total assets and Total liabilities and shareholders’ equity 11,790,196 (8,178 ) 11,782,018 Long-term debt, net-other than bank 1,586,546 (8,178 ) 1,578,368 Total liabilities 9,828,263 (8,178 ) 9,820,085 Hawaiian Electric Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) Unamortized debt expense 8,341 (7,844 ) 497 Total other long-term assets 908,327 (7,844 ) 900,483 Total assets and Total capitalization and liabilities 5,680,054 (7,844 ) 5,672,210 Long-term debt, net 1,286,546 (7,844 ) 1,278,702 Total capitalization 3,049,164 (7,844 ) 3,041,320 Note 4 - Hawaiian Electric Consolidating Balance Sheet Hawaiian Electric (parent only) Unamortized debt expense 5,742 (5,383 ) 359 Total other long-term assets 662,430 (5,383 ) 657,047 Total assets and Total capitalization and liabilities 4,481,558 (5,383 ) 4,476,175 Long-term debt, net 880,546 (5,383 ) 875,163 Total capitalization 2,631,164 (5,383 ) 2,625,781 Hawaii Electric Light Unamortized debt expense 1,494 (1,420 ) 74 Total other long-term assets 130,749 (1,420 ) 129,329 Total assets and Total capitalization and liabilities 955,935 (1,420 ) 954,515 Long-term debt, net 215,000 (1,420 ) 213,580 Total capitalization 514,702 (1,420 ) 513,282 Maui Electric Unamortized debt expense 1,105 (1,041 ) 64 Total other long-term assets 115,148 (1,041 ) 114,107 Total assets and Total capitalization and liabilities 831,201 (1,041 ) 830,160 Long-term debt, net 191,000 (1,041 ) 189,959 Total capitalization 459,725 (1,041 ) 458,684 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 retrospectively adopted ASU No. 2015-07 in the first quarter 2016; thus, the fair value disclosures for retirement benefit plan assets have been revised. 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. Leases . In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize a liability to make lease payments (the lease liability) and a right-of-use asset, representing its right to use the underlying asset for the lease term, for all leases (except short-term leases) at the commencement date. The Company plans to adopt ASU 2016-02 in the first quarter of 2019 (using a modified retrospective transition approach for leases existing at, or entered into after, January 1, 2017) and has not yet determined the impact of adoption. Stock compensation . In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions. The Company adopted ASU 2016-09 in the first quarter of 2017. From January 1, 2017, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. Also from January 1, 2017, no excess tax benefits and deficiencies are included in determining the assumed proceeds under the treasury stock method of calculating diluted EPS. As of January 1, 2017, HEI adopted an accounting policy to account for forfeitures when they occur. From January 1, 2017, HEI retrospectively applied the guidance for taxes paid (equivalent to the value of withheld shares for tax withholding purposes) and excess tax benefits. Excess tax benefits will be classified along with other income tax cash flows as an operating activity and the cash payments made to taxing authorities on the employees’ behalf for withheld shares will be classified as financing activities on the HEI Consolidated Statements of Cash Flows for all periods that are presented. Credit Losses . In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations . ASU No. 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU No. 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The other-than-temporary impairment model of accounting for credit losses on AFS debt securities will be replaced with an estimate of expected credit losses only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. The AFS debt security model will also require the use of an allowance to record the estimated losses (and subsequent recoveries). The accounting for the initial recognition of the estimated expected credit losses for purchased financial assets with credit deterioration would be recognized through an allowance for loan losses with an offset to the cost basis of the related financial asset at acquisition (i.e., there is no impact to net income at initial recognition). The Company plans to adopt ASU 2016-13 in the first quarter of 2020 and has not yet determined the impact of adoption. Cash Flows . In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on eight specific cash flow issues - debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies), distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The Company plans to adopt ASU 2016-15 in the first quarter of 2018 using a retrospective transition method and has not yet determined the impact of adoption. Intra-entity transfers of assets other than inventory . In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which changes current guidance that prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party by requiring the recognition of the income tax consequences of such transfer when it occurs. The Company plans to adopt ASU 2016-16 in the first quarter of 2018 using a modified retrospective transition method and believes the impact of adoption will be immaterial to the Company’s and Hawaiian Electric’s consolidated financial statements. Restricted cash . In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company plans to adopt ASU 2016-18 in the first quarter of 2018 using a retrospective transition method and believes the impact of adoption will not be material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. |
Reclassifications | Reclassifications made to prior years’ financial statements to conform to the 2016 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 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 within 24 months. 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. |
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 electric service are generally recorded when service is rendered and include revenues applicable to energy consumed in the accounting period but not yet billed to the customers. Under decoupling, electric utility revenues also incorporate: (1) 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) rate adjustment mechanism (RAM) revenues for escalation in certain operation and maintenance (O&M) expenses and rate base changes and (3) an earnings sharing mechanism, which reduces 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. Under the decoupling tariff approved in 2011, the prior year accrued RBA revenues (regulatory asset) and the annual RAM amount are billed from June 1 of each year through May 31 of the following year, which is within 24 months following the end of the year in which they are recorded as required by the accounting standard for alternative revenue programs. See " Decoupling" discussion in Note 4 Electric Utility segment. 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. 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 | 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 for overhauls of generating units are generally expensed as they are incurred. |
Allowance for funds used during construction (AFUDC) | AFUDC is an accounting practice whereby the costs of debt and equity funds used to finance plant construction are credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC on the delayed project may be stopped after assessing the causes of the delay and probability of recovery. |
Bank | |
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 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, 2016 and 2015, 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 | 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 | 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 | 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 | 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 in the process of collection, 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 are considered to have been modified in a troubled debt restructuring (TDR) when, due to a borrower’s financial difficulties, ASB makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include interest rate reductions, interest only payments for an extended period of time, protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place, and other actions intended to minimize economic loss and to provide alternatives to foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status until the borrower has demonstrated sustained repayment performance for a period of six consecutive months. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, or there is reasonable doubt over the full collectability of principal and interest, the loan remains on nonaccrual status. |
Real estate acquired in settlement of loans | ASB records real estate acquired in settlement of loans at fair value, less estimated selling expenses. ASB obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate acquired in settlement of loans. Subsequent declines in value are charged to expense through a valuation allowance. Costs related to holding real estate are charged to operations as incurred. |
Goodwill | At December 31, 2016 and 2015 , 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. To determine if there was any impairment to the book value of goodwill pertaining to ASB, the fair value of ASB was estimated using a valuation method based on a market approach and discounted cash flow method with each method having an equal weighting in determining the fair value of ASB. The market approach considers publicly traded financial institutions with assets of $3.5 billion to $8 billion and measures the institutions' market values as a multiple to (1) net income and (2) book equity. ASB used the median market value multiples for net income and book equity from its selection criteria and applied the multiples to its net income and book equity to calculate ASB's fair value using the market approach. In order to reflect a premium that a buyer would pay for a controlling interest in ASB, a control premium of 18.4% was included in determining the market approach fair value. The control premium was based on control premiums paid in 18 acquisitions with deal values over $500 million which were completed in 2014-2016 where 100% interests were purchased and control premium information was available. The discounted cash flow method values a company on a going concern basis and is based on the concept that the future benefits derived from a particular company can be measured by its sustainable after-tax cash flows in the future. ASB's discounted cash flow analysis was based on its income statement forecasts and a discount rate of 8.9% was applied to present value the cash flows. ASB used a Capital Asset Pricing Model analysis to determine its discount rate. For the three years ended December 31, 2016 , there has been no impairment of goodwill. |
Mortgage banking | Mortgage loans held for sale are stated at the lower of cost or estimated fair value on an aggregate basis. 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 | 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 amortization method of accounting for its investments. Under the proportional amortization 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, 2016, 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, 2016 | |
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 2017 $ 12 $ 6 2018 9 4 2019 7 4 2020 5 3 2021 4 3 Thereafter 8 4 $ 45 $ 24 |
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 Basic Diluted Distributed earnings $ 1.24 $ 1.24 Undistributed earnings 0.41 0.39 $ 1.65 $ 1.63 |
Schedule of new accounting pronounements | The table below summarizes the impact to the prior period financial statements of the adoption of ASU No. 2015-03: (in thousands) As previously filed Adjustment from adoption of ASU No. 2015-03 As currently reported December 31, 2015 HEI Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) Other assets $ 488,635 $ (8,178 ) $ 480,457 Total assets and Total liabilities and shareholders’ equity 11,790,196 (8,178 ) 11,782,018 Long-term debt, net-other than bank 1,586,546 (8,178 ) 1,578,368 Total liabilities 9,828,263 (8,178 ) 9,820,085 Hawaiian Electric Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) Unamortized debt expense 8,341 (7,844 ) 497 Total other long-term assets 908,327 (7,844 ) 900,483 Total assets and Total capitalization and liabilities 5,680,054 (7,844 ) 5,672,210 Long-term debt, net 1,286,546 (7,844 ) 1,278,702 Total capitalization 3,049,164 (7,844 ) 3,041,320 Note 4 - Hawaiian Electric Consolidating Balance Sheet Hawaiian Electric (parent only) Unamortized debt expense 5,742 (5,383 ) 359 Total other long-term assets 662,430 (5,383 ) 657,047 Total assets and Total capitalization and liabilities 4,481,558 (5,383 ) 4,476,175 Long-term debt, net 880,546 (5,383 ) 875,163 Total capitalization 2,631,164 (5,383 ) 2,625,781 Hawaii Electric Light Unamortized debt expense 1,494 (1,420 ) 74 Total other long-term assets 130,749 (1,420 ) 129,329 Total assets and Total capitalization and liabilities 955,935 (1,420 ) 954,515 Long-term debt, net 215,000 (1,420 ) 213,580 Total capitalization 514,702 (1,420 ) 513,282 Maui Electric Unamortized debt expense 1,105 (1,041 ) 64 Total other long-term assets 115,148 (1,041 ) 114,107 Total assets and Total capitalization and liabilities 831,201 (1,041 ) 830,160 Long-term debt, net 191,000 (1,041 ) 189,959 Total capitalization 459,725 (1,041 ) 458,684 |
Summary of amounts in income tax expense related to investments in qualifying 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 2016 2015 2014 (in millions) Amounts in income taxes related to investments in qualifying affordable housing projects Amortization recognized in the provision for income taxes $ (5.8 ) $ (5.4 ) $ (3.6 ) Tax credits and other tax benefits recognized in the provision for income taxes 8.4 8.0 5.4 Net benefit to income tax expense $ 2.6 $ 2.6 $ 1.8 |
Segment financial information (
Segment financial information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2016 Revenues from external customers $ 2,094,224 $ 285,924 $ 506 $ 2,380,654 Intersegment revenues (eliminations) 144 — (144 ) — Revenues 2,094,368 285,924 362 2,380,654 Depreciation and amortization 193,996 9,813 937 204,746 Interest expense, net 66,824 12,755 8,979 88,558 Income before income taxes 229,113 87,352 57,376 373,841 Income taxes 84,801 30,073 8,821 123,695 Net income 144,312 57,279 48,555 250,146 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income for common stock 142,317 57,279 48,660 248,256 Capital expenditures 320,437 9,394 212 330,043 Assets (at December 31, 2016) 5,975,428 6,421,357 28,721 12,425,506 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) 5,672,210 6,014,755 95,053 11,782,018 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) 5,550,021 5,566,222 60,900 11,177,143 |
Electric utility segment (Table
Electric utility segment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Electric utility subsidiary | |
Schedule of consolidating statements of income | Statements of Income Data Years ended December 31 2016 2015 2014 (in thousands) Interest and dividend income Interest and fees on loans $ 199,774 $ 184,782 $ 179,341 Interest and dividends on investment securities 19,184 15,120 11,945 Total interest and dividend income 218,958 199,902 191,286 Interest expense Interest on deposit liabilities 7,167 5,348 5,077 Interest on other borrowings 5,588 5,978 5,731 Total interest expense 12,755 11,326 10,808 Net interest income 206,203 188,576 180,478 Provision for loan losses 16,763 6,275 6,126 Net interest income after provision for loan losses 189,440 182,301 174,352 Noninterest income Fees from other financial services 22,384 22,211 21,747 Fee income on deposit liabilities 21,759 22,368 19,249 Fee income on other financial products 8,707 8,094 8,131 Bank-owned life insurance 4,637 4,078 3,949 Mortgage banking income 6,625 6,330 2,913 Gains on sale of investment securities 598 — 2,847 Other income, net 2,256 4,750 2,375 Total noninterest income 66,966 67,831 61,211 Noninterest expense Compensation and employee benefits 90,117 90,518 79,885 Occupancy 16,321 16,365 17,197 Data processing 13,030 12,103 11,690 Services 11,054 10,204 10,269 Equipment 6,938 6,577 6,564 Office supplies, printing and postage 6,075 5,749 6,089 Marketing 3,489 3,463 3,999 FDIC insurance 3,543 3,274 3,261 Other expense 18,487 18,067 17,314 Total noninterest expense 169,054 166,320 156,268 Income before income taxes 87,352 83,812 79,295 Income taxes 30,073 29,082 27,994 Net income $ 57,279 $ 54,730 $ 51,301 |
Schedule of consolidating balance sheets | Balance Sheets Data December 31 2016 2015 (in thousands) Assets Cash and due from banks $ 137,083 $ 127,201 Interest-bearing deposits 52,128 93,680 Restricted cash 1,764 — Available-for-sale investment securities, at fair value 1,105,182 820,648 Stock in Federal Home Loan Bank, at cost 11,218 10,678 Loans receivable held for investment 4,738,693 4,615,819 Allowance for loan losses (55,533 ) (50,038 ) Net loans 4,683,160 4,565,781 Loans held for sale, at lower of cost or fair value 18,817 4,631 Other 329,815 309,946 Goodwill 82,190 82,190 Total assets $ 6,421,357 $ 6,014,755 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,639,051 $ 1,520,374 Deposit liabilities–interest-bearing 3,909,878 3,504,880 Other borrowings 192,618 328,582 Other 101,635 101,029 Total liabilities 5,843,182 5,454,865 Commitments and contingencies Common stock 1 1 Additional paid in capital 342,704 340,496 Retained earnings 257,943 236,664 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (7,931 ) $ (1,872 ) Retirement benefit plans (14,542 ) (22,473 ) (15,399 ) (17,271 ) Total shareholder’s equity 578,175 559,890 Total liabilities and shareholder’s equity $ 6,421,357 $ 6,014,755 December 31 2016 2015 (in thousands) Other assets Bank-owned life insurance $ 143,197 $ 138,139 Premises and equipment, net 90,570 88,077 Prepaid expenses 3,348 3,550 Accrued interest receivable 16,824 15,192 Mortgage-servicing rights 9,373 8,884 Low-income housing equity investments 47,081 37,793 Real estate acquired in settlement of loans, net 1,189 1,030 Other 18,233 17,281 $ 329,815 $ 309,946 Other liabilities Accrued expenses $ 36,754 $ 30,705 Federal and state income taxes payable 4,728 13,448 Cashier’s checks 24,156 21,768 Advance payments by borrowers 10,335 10,311 Other 25,662 24,797 $ 101,635 $ 101,029 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Electric utility subsidiary | |
Schedule of regulatory assets | Regulatory assets were as follows: December 31 2016 2015 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 745,367 $ 679,766 Income taxes, net (1 to 55 years) 90,100 88,039 Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) 73,485 74,462 Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) 12,299 14,089 Vacation earned, but not yet taken (1 year) 10,970 10,420 Other (1 to 50 years; 1 to 46 years remaining) 25,230 29,955 $ 957,451 $ 896,731 Included in: Current assets $ 66,032 $ 72,231 Long-term assets 891,419 824,500 $ 957,451 $ 896,731 |
Schedule of regulatory liabilities | Regulatory liabilities were as follows: December 31 2016 2015 (in thousands) Cost of removal in excess of salvage value (1 to 60 years) $ 394,072 $ 357,825 Retirement benefit plans (5 years beginning with respective utility’s next rate case) 10,824 9,835 Other (5 years; 1 to 2 years remaining) 5,797 3,883 $ 410,693 $ 371,543 Included in: Current liabilities $ 3,762 $ 2,204 Long-term liabilities 406,931 369,339 $ 410,693 $ 371,543 |
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, 2016 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) 2016 2015 Balance, January 1 $ 26,848 $ 29,419 Accretion expense 10 24 Liabilities incurred — — Liabilities settled (1,269 ) (2,595 ) Revisions in estimated cash flows — — Balance, December 31 $ 25,589 $ 26,848 |
Schedule of derivative instruments | December 31 2016 (dollars in thousands) Notional amount Fair value Window forward contract $ 20,734 $ (743 ) |
Schedule of consolidating statements of income | Consolidating statement of income Year ended December 31, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,474,384 311,385 308,705 — (106 ) [1] $ 2,094,368 Expenses Fuel oil 305,359 55,094 94,251 — — 454,704 Purchased power 431,009 81,018 50,713 — — 562,740 Other operation and maintenance 273,176 63,897 68,460 — — 405,533 Depreciation 126,086 37,797 23,178 — — 187,061 Taxes, other than income taxes 141,615 29,017 29,230 — — 199,862 Total expenses 1,277,245 266,823 265,832 — — 1,809,900 Operating income 197,139 44,562 42,873 — (106 ) 284,468 Allowance for equity funds used during construction 6,659 765 901 — — 8,325 Equity in earnings of subsidiaries 42,391 — — — (42,391 ) [2] — Interest expense and other charges, net (45,839 ) (11,555 ) (9,536 ) — 106 [1] (66,824 ) Allowance for borrowed funds used during construction 2,484 294 366 — — 3,144 Income before income taxes 202,834 34,066 34,604 — (42,391 ) 229,113 Income taxes 59,437 12,277 13,087 — — 84,801 Net income 143,397 21,789 21,517 — (42,391 ) 144,312 Preferred stock dividends of subsidiaries — 534 381 — — 915 Net income attributable to Hawaiian Electric 143,397 21,255 21,136 — (42,391 ) 143,397 Preferred stock dividends of Hawaiian Electric 1,080 — — — — 1,080 Net income for common stock $ 142,317 21,255 21,136 — (42,391 ) $ 142,317 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, 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 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 |
Schedule of consolidating statements of comprehensive income | Consolidating statement of comprehensive income Year ended December 31, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 142,317 21,255 21,136 — (42,391 ) $ 142,317 Other comprehensive income (loss), net of taxes: Derivatives qualified as cash flow hedges: Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits (281 ) — — — — (281 ) Less: reclassification adjustment to net income, net of taxes (173 ) — — — — (173 ) Retirement benefit plans: Net losses arising during the period, net of tax benefits (42,631 ) (5,141 ) (5,447 ) — 10,588 [1] (42,631 ) Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 13,254 1,718 1,549 — (3,267 ) [1] 13,254 Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes 28,584 3,269 3,852 — (7,121 ) [1] 28,584 Other comprehensive loss, net of tax benefits (1,247 ) (154 ) (46 ) — 200 (1,247 ) Comprehensive income attributable to common shareholder $ 141,070 21,101 21,090 — (42,191 ) $ 141,070 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 taxes 5,638 (2,710 ) (1,352 ) — 4,062 [1] 5,638 Less: amortization of 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 taxes 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 losses arising during the period, net of tax benefits (218,608 ) (28,725 ) (29,352 ) — 58,077 [1] (218,608 ) Less: amortization of 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 |
Schedule of consolidating balance sheets | Consolidating balance sheet December 31, 2016 (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 $ 43,956 6,181 3,016 — — $ 53,153 Plant and equipment 4,241,060 1,255,185 1,109,487 — — 6,605,732 Less accumulated depreciation (1,382,972 ) (507,666 ) (478,644 ) — — (2,369,282 ) Construction in progress 180,194 12,510 19,038 — — 211,742 Utility property, plant and equipment, net 3,082,238 766,210 652,897 — — 4,501,345 Nonutility property, plant and equipment, less accumulated depreciation 5,760 115 1,532 — — 7,407 Total property, plant and equipment, net 3,087,998 766,325 654,429 — — 4,508,752 Investment in wholly-owned subsidiaries, at equity 550,946 — — — (550,946 ) [2] — Current assets Cash and equivalents 61,388 10,749 2,048 101 — 74,286 Advances to affiliates — 3,500 10,000 — (13,500 ) [1] — Customer accounts receivable, net 86,373 20,055 17,260 — — 123,688 Accrued unbilled revenues, net 65,821 13,564 12,308 — — 91,693 Other accounts receivable, net 7,652 2,445 1,416 — (6,280 ) [1] 5,233 Fuel oil stock, at average cost 47,239 8,229 10,962 — — 66,430 Materials and supplies, at average cost 29,928 7,380 16,371 — — 53,679 Prepayments and other 16,502 5,352 2,179 — (933 ) [3] 23,100 Regulatory assets 60,185 3,483 2,364 — — 66,032 Total current assets 375,088 74,757 74,908 101 (20,713 ) 504,141 Other long-term assets Regulatory assets 662,232 120,863 108,324 — — 891,419 Unamortized debt expense 151 23 34 — — 208 Other 43,743 13,573 13,592 — — 70,908 Total other long-term assets 706,126 134,459 121,950 — — 962,535 Total assets $ 4,720,158 975,541 851,287 101 (571,659 ) $ 5,975,428 Capitalization and liabilities Capitalization Common stock equity $ 1,799,787 291,291 259,554 101 (550,946 ) [2] $ 1,799,787 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 915,437 213,703 190,120 — — 1,319,260 Total capitalization 2,737,517 511,994 454,674 101 (550,946 ) 3,153,340 Current liabilities Short-term borrowings-affiliate 13,500 — — — (13,500 ) [1] — Accounts payable 86,369 18,126 13,319 — — 117,814 Interest and preferred dividends payable 15,761 4,206 2,882 — (11 ) [1] 22,838 Taxes accrued 120,176 28,100 25,387 — (933 ) [3] 172,730 Regulatory liabilities — 2,219 1,543 — — 3,762 Other 41,352 7,637 12,501 — (6,269 ) [1] 55,221 Total current liabilities 277,158 60,288 55,632 — (20,713 ) 372,365 Deferred credits and other liabilities Deferred income taxes 524,433 108,052 100,911 — 263 [1] 733,659 Regulatory liabilities 281,112 93,974 31,845 — — 406,931 Unamortized tax credits 57,844 15,994 15,123 — — 88,961 Defined benefit pension and other postretirement benefit plans liability 444,458 75,005 80,263 — — 599,726 Other 49,191 13,024 14,969 — (263 ) [1] 76,921 Total deferred credits and other liabilities 1,357,038 306,049 243,111 — — 1,906,198 Contributions in aid of construction 348,445 97,210 97,870 — — 543,525 Total capitalization and liabilities $ 4,720,158 975,541 851,287 101 (571,659 ) $ 5,975,428 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] — 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 ) [1], [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 359 74 64 — — 497 Other 47,731 14,693 13,062 — — 75,486 Total other long-term assets 657,047 129,329 114,107 — — 900,483 Total assets $ 4,476,175 954,515 830,160 101 (588,741 ) $ 5,672,210 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 875,163 213,580 189,959 — — 1,278,702 Total capitalization 2,625,781 513,282 458,684 101 (556,528 ) 3,041,320 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 $ 4,476,175 954,515 830,160 101 (588,741 ) $ 5,672,210 |
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, 2013 $ 1,593,564 274,802 248,771 101 (523,674 ) $ 1,593,564 Net income for common stock 137,641 18,689 22,275 — (40,964 ) 137,641 Other comprehensive loss, net of tax benefits (563 ) (18 ) (5 ) — 23 (563 ) Issuance of common stock, net of expenses 39,994 — — — — 39,994 Common stock dividends (88,492 ) (11,627 ) (14,349 ) — 25,976 (88,492 ) Balance, December 31, 2014 $ 1,682,144 281,846 256,692 101 (538,639 ) $ 1,682,144 Net income for common stock 135,714 20,755 22,165 — (42,920 ) 135,714 Other comprehensive income, net of taxes 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 Net income for common stock 142,317 21,255 21,136 — (42,391 ) 142,317 Other comprehensive loss, net of tax benefits (1,247 ) (154 ) (46 ) — 200 (1,247 ) Issuance of common stock, net of expenses 23,991 (5 ) — — 5 23,991 Common stock dividends (93,599 ) (22,507 ) (25,261 ) — 47,768 (93,599 ) Balance, December 31, 2016 $ 1,799,787 291,291 259,554 101 (550,946 ) $ 1,799,787 |
Schedule of consolidating statements of cash flows | Consolidating statement of cash flows Year ended December 31, 2016 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Cash flows from operating activities Net income $ 143,397 21,789 21,517 — (42,391 ) [2] $ 144,312 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings (42,491 ) — — — 42,391 [2] (100 ) Common stock dividends received from subsidiaries 47,843 — — — (47,768 ) [2] 75 Depreciation of property, plant and equipment 126,086 37,797 23,178 — — 187,061 Other amortization 2,979 1,817 2,139 — — 6,935 Deferred income taxes 54,721 7,027 12,661 — (23 ) [1] 74,386 Income tax credits, net 177 60 (6 ) — — 231 Allowance for equity funds used during construction (6,659 ) (765 ) (901 ) — — (8,325 ) Other (2,694 ) (810 ) (427 ) — — (3,931 ) Changes in assets and liabilities: Decrease (increase) in accounts receivable 10,175 (718 ) 1,776 — (2,682 ) [1] 8,551 Increase in accrued unbilled revenues (5,741 ) (1,033 ) (410 ) — — (7,184 ) Decrease in fuel oil stock 2,216 81 2,489 — — 4,786 Decrease (increase) in materials and supplies 993 (515 ) 272 — — 750 Increase in regulatory assets (16,161 ) (1,243 ) (869 ) — — (18,273 ) Increase (decrease) in accounts payable (10,247 ) 768 (1,135 ) — — (10,614 ) Change in prepaid and accrued income taxes, tax credits and revenue taxes 2,933 2,645 (3,478 ) — 23 [1] 2,123 Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 599 53 (168 ) — — 484 Change in other assets and liabilities (11,682 ) (78 ) (2,272 ) — 2,682 [1] (11,350 ) Net cash provided by operating activities 296,444 66,875 54,366 — (47,768 ) 369,917 Cash flows from investing activities Capital expenditures (236,425 ) (51,344 ) (32,668 ) — — (320,437 ) Contributions in aid of construction 23,611 3,412 3,077 — — 30,100 Advances from affiliates — 12,000 (2,500 ) — (9,500 ) [1] — Other 1,932 175 31 — — 2,138 Net cash used in investing activities (210,882 ) (35,757 ) (32,060 ) — (9,500 ) (288,199 ) Cash flows from financing activities Common stock dividends (93,599 ) (22,507 ) (25,261 ) — 47,768 [2] (93,599 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080 ) (534 ) (381 ) — — (1,995 ) Proceeds from issuance of common stock 24,000 — — — — 24,000 Proceeds from issuance of long-term debt 40,000 — — — — 40,000 Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less (9,500 ) — — — 9,500 [1] — Other (276 ) (10 ) (1 ) — — (287 ) Net cash used in financing activities (40,455 ) (23,051 ) (25,643 ) — 57,268 (31,881 ) Net increase (decrease) in cash and cash equivalents 45,107 8,067 (3,337 ) — — 49,837 Cash and cash equivalents, January 1 16,281 2,682 5,385 101 — 24,449 Cash and cash equivalents, December 31 $ 61,388 10,749 2,048 101 — $ 74,286 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 Deferred income taxes 53,338 8,295 13,707 — 286 [1] 75,626 Income 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, tax credits 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 (to) 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 the 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 ) [1] — Other (1,257 ) (226 ) (54 ) — — (1,537 ) Net cash used in 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 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 assets 1,866 — — — — 1,866 Other 758 — — — — 758 Deferred income taxes 56,901 12,083 13,963 — — 82,947 Income 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, tax credits 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 (to) affiliates (9,261 ) 1,000 — — 8,261 [1] — Other 604 492 68 — — 1,164 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 |
Bank segment (HEI only) (Tables
Bank segment (HEI only) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Bank Segment Disclosure [Abstract] | |
Schedule of statements of income data | Statements of Income Data Years ended December 31 2016 2015 2014 (in thousands) Interest and dividend income Interest and fees on loans $ 199,774 $ 184,782 $ 179,341 Interest and dividends on investment securities 19,184 15,120 11,945 Total interest and dividend income 218,958 199,902 191,286 Interest expense Interest on deposit liabilities 7,167 5,348 5,077 Interest on other borrowings 5,588 5,978 5,731 Total interest expense 12,755 11,326 10,808 Net interest income 206,203 188,576 180,478 Provision for loan losses 16,763 6,275 6,126 Net interest income after provision for loan losses 189,440 182,301 174,352 Noninterest income Fees from other financial services 22,384 22,211 21,747 Fee income on deposit liabilities 21,759 22,368 19,249 Fee income on other financial products 8,707 8,094 8,131 Bank-owned life insurance 4,637 4,078 3,949 Mortgage banking income 6,625 6,330 2,913 Gains on sale of investment securities 598 — 2,847 Other income, net 2,256 4,750 2,375 Total noninterest income 66,966 67,831 61,211 Noninterest expense Compensation and employee benefits 90,117 90,518 79,885 Occupancy 16,321 16,365 17,197 Data processing 13,030 12,103 11,690 Services 11,054 10,204 10,269 Equipment 6,938 6,577 6,564 Office supplies, printing and postage 6,075 5,749 6,089 Marketing 3,489 3,463 3,999 FDIC insurance 3,543 3,274 3,261 Other expense 18,487 18,067 17,314 Total noninterest expense 169,054 166,320 156,268 Income before income taxes 87,352 83,812 79,295 Income taxes 30,073 29,082 27,994 Net income $ 57,279 $ 54,730 $ 51,301 |
Schedule of statements of comprehensive income data | Statements of Comprehensive Income Years ended December 31 2016 2015 2014 (in thousands) Net income $ 57,279 $ 54,730 $ 51,301 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on available-for sale investment securities: Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $3,763, $1,541 and $(3,856) for 2016, 2015 and 2014, respectively (5,699 ) (2,334 ) 5,840 Less: reclassification adjustment for net realized gains included in net income, net of taxes of $238, nil and $1,132 for 2016, 2015 and 2014, respectively (360 ) — (1,715 ) Retirement benefit plans: Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively — 90 (9,336 ) Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively 857 1,531 850 Other comprehensive income (loss), net of taxes (5,202 ) (713 ) (4,361 ) Comprehensive income $ 52,077 $ 54,017 $ 46,940 |
Schedule of balance sheets data | Balance Sheets Data December 31 2016 2015 (in thousands) Assets Cash and due from banks $ 137,083 $ 127,201 Interest-bearing deposits 52,128 93,680 Restricted cash 1,764 — Available-for-sale investment securities, at fair value 1,105,182 820,648 Stock in Federal Home Loan Bank, at cost 11,218 10,678 Loans receivable held for investment 4,738,693 4,615,819 Allowance for loan losses (55,533 ) (50,038 ) Net loans 4,683,160 4,565,781 Loans held for sale, at lower of cost or fair value 18,817 4,631 Other 329,815 309,946 Goodwill 82,190 82,190 Total assets $ 6,421,357 $ 6,014,755 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,639,051 $ 1,520,374 Deposit liabilities–interest-bearing 3,909,878 3,504,880 Other borrowings 192,618 328,582 Other 101,635 101,029 Total liabilities 5,843,182 5,454,865 Commitments and contingencies Common stock 1 1 Additional paid in capital 342,704 340,496 Retained earnings 257,943 236,664 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (7,931 ) $ (1,872 ) Retirement benefit plans (14,542 ) (22,473 ) (15,399 ) (17,271 ) Total shareholder’s equity 578,175 559,890 Total liabilities and shareholder’s equity $ 6,421,357 $ 6,014,755 December 31 2016 2015 (in thousands) Other assets Bank-owned life insurance $ 143,197 $ 138,139 Premises and equipment, net 90,570 88,077 Prepaid expenses 3,348 3,550 Accrued interest receivable 16,824 15,192 Mortgage-servicing rights 9,373 8,884 Low-income housing equity investments 47,081 37,793 Real estate acquired in settlement of loans, net 1,189 1,030 Other 18,233 17,281 $ 329,815 $ 309,946 Other liabilities Accrued expenses $ 36,754 $ 30,705 Federal and state income taxes payable 4,728 13,448 Cashier’s checks 24,156 21,768 Advance payments by borrowers 10,335 10,311 Other 25,662 24,797 $ 101,635 $ 101,029 |
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, 2016 Available-for-sale U.S. Treasury and federal agency obligations $ 193,515 $ 920 $ (2,154 ) $ 192,281 18 $ 123,475 $ (2,010 ) 1 $ 3,485 $ (144 ) Mortgage-related securities- FNMA, FHLMC and GNMA 909,408 1,742 (13,676 ) 897,474 88 709,655 (12,143 ) 13 47,485 (1,533 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,118,350 $ 2,662 $ (15,830 ) $ 1,105,182 106 $ 833,130 $ (14,153 ) 14 $ 50,970 $ (1,677 ) 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 ) |
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, 2016 Cost value (in thousands) Due in one year or less $ 9,979 $ 10,001 Due after one year through five years 77,179 77,126 Due after five years through ten years 81,411 81,083 Due after ten years 40,373 39,498 208,942 207,708 Mortgage-related securities-FNMA,FHLMC and GNMA 909,408 897,474 Total available-for-sale securities $ 1,118,350 $ 1,105,182 |
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 2016 2015 2014 (in millions) Proceeds $ 16.4 $ — $ 79.6 Gross gains 0.6 — 2.8 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 2016 2015 2014 (in thousands) Taxable $ 19,166 $ 15,120 $ 11,666 Non-taxable 18 — 279 $ 19,184 $ 15,120 $ 11,945 |
Schedule of loans receivable | The components of loans receivable were summarized as follows: December 31 2016 2015 (in thousands) Real estate: Residential 1-4 family $ 2,048,051 $ 2,069,665 Commercial real estate 800,395 690,561 Home equity line of credit 863,163 846,294 Residential land 18,889 18,229 Commercial construction 126,768 100,796 Residential construction 16,080 14,089 Total real estate 3,873,346 3,739,634 Commercial 692,051 758,659 Consumer 178,222 123,775 Total loans 4,743,619 4,622,068 Less: Deferred fees and discounts (4,926 ) (6,249 ) Allowance for loan losses (55,533 ) (50,038 ) Total loans, net $ 4,683,160 $ 4,565,781 |
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, 2016 Allowance for loan losses: Beginning balance $ 4,186 $ 11,342 $ 7,260 $ 1,671 $ 4,461 $ 13 $ 17,208 $ 3,897 $ — $ 50,038 Charge-offs (639 ) — (112 ) (138 ) — — (5,943 ) (7,413 ) — (14,245 ) Recoveries 421 — 59 461 — — 1,093 943 — 2,977 Provision (1,095 ) 4,662 (2,168 ) (256 ) 1,988 (1 ) 4,260 9,373 — 16,763 Ending balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ — $ 55,533 Ending balance: individually evaluated for impairment $ 1,352 $ 80 $ 215 $ 789 $ — $ — $ 1,641 $ 6 $ 4,083 Ending balance: collectively evaluated for impairment $ 1,521 $ 15,924 $ 4,824 $ 949 $ 6,449 $ 12 $ 14,977 $ 6,794 $ — $ 51,450 Financing Receivables: Ending balance $ 2,048,051 $ 800,395 $ 863,163 $ 18,889 $ 126,768 $ 16,080 $ 692,051 $ 178,222 $ — $ 4,743,619 Ending balance: individually evaluated for impairment $ 19,854 $ 1,569 $ 6,158 $ 3,629 $ — $ — $ 20,539 $ 10 $ — $ 51,759 Ending balance: collectively evaluated for impairment $ 2,028,197 $ 798,826 $ 857,005 $ 15,260 $ 126,768 $ 16,080 $ 671,512 $ 178,212 $ — $ 4,691,860 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 |
Schedule of changes in allowance for loan losses | Changes in the allowance for loan losses were as follows: (dollars in thousands) 2016 2015 2014 Allowance for loan losses, January 1 $ 50,038 $ 45,618 $ 40,116 Provision for loan losses 16,763 6,275 6,126 Charge-offs, net of recoveries Real estate loans (52 ) (252 ) (1,137 ) Other loans 11,320 2,107 1,761 Net charge-offs 11,268 1,855 624 Allowance for loan losses, December 31 $ 55,533 $ 50,038 $ 45,618 Ratio of net charge-offs to average total loans 0.24 % 0.04 % 0.01 % |
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 2016 2015 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 701,657 $ 102,955 $ 614,139 1,418,751 $ 642,410 $ 86,991 $ 703,208 $ 1,432,609 Special mention 65,541 — 25,229 90,770 7,710 13,805 7,029 28,544 Substandard 33,197 23,813 52,683 109,693 40,441 — 47,975 88,416 Doubtful — — — — — — 447 447 Loss — — — — — — — — Total $ 800,395 $ 126,768 $ 692,051 1,619,214 $ 690,561 $ 100,796 $ 758,659 $ 1,550,016 |
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, 2016 Real estate: Residential 1-4 family $ 5,467 $ 2,338 $ 3,505 $ 11,310 $ 2,036,741 $ 2,048,051 $ — Commercial real estate 2,416 — — 2,416 797,979 800,395 — Home equity line of credit 1,263 381 1,342 2,986 860,177 863,163 — Residential land — — 255 255 18,634 18,889 — Commercial construction — — — — 126,768 126,768 — Residential construction — — — — 16,080 16,080 — Commercial 413 510 1,303 2,226 689,825 692,051 — Consumer 1,945 1,001 963 3,909 174,313 178,222 — Total loans $ 11,504 $ 4,230 $ 7,368 $ 23,102 $ 4,720,517 $ 4,743,619 $ — 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 $ — |
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 2016 2015 (in thousands) Real estate: Residential 1-4 family $ 11,154 $ 20,554 Commercial real estate 223 1,188 Home equity line of credit 3,080 2,254 Residential land 878 970 Commercial construction — — Residential construction — — Commercial 6,708 20,174 Consumer 1,282 895 Total nonaccrual loans $ 23,325 $ 46,035 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 $ 14,450 $ 13,962 Commercial real estate 1,346 — Home equity line of credit 4,934 2,467 Residential land 2,751 4,713 Commercial construction — — Residential construction — — Commercial 14,146 1,104 Consumer 10 — Total troubled debt restructured loans not included above $ 37,637 $ 22,246 |
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 2016 2015 (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 $ 9,571 $ 10,400 $ — $ 10,136 $ 324 $ 10,596 $ 11,805 $ — $ 11,215 $ 332 Commercial real estate 223 228 — 1,124 — 1,188 1,436 — 370 74 Home equity line of credit 1,500 1,900 — 1,105 23 707 948 — 484 4 Residential land 1,218 1,803 — 1,518 66 1,644 2,412 — 2,397 137 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 6,299 8,869 — 8,694 370 5,671 6,333 — 5,185 157 Consumer — — — 2 — — — — — — 18,811 23,200 — 22,579 783 19,806 22,934 — 19,651 704 With an allowance recorded Real estate: Residential 1-4 family 10,283 10,486 1,352 11,589 457 11,861 11,914 1,453 11,578 562 Commercial real estate 1,346 1,346 80 1,962 15 — — — 1,699 — Home equity line of credit 4,658 4,712 215 3,765 137 2,518 2,579 442 1,597 49 Residential land 2,411 2,411 789 2,964 206 4,039 4,117 891 4,337 318 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 14,240 14,240 1,641 16,106 456 15,448 16,073 3,527 12,507 211 Consumer 10 10 6 12 — 13 13 7 14 — 32,948 33,205 4,083 36,398 1,271 33,879 34,696 6,320 31,732 1,140 Total Real estate: Residential 1-4 family 19,854 20,886 1,352 21,725 781 22,457 23,719 1,453 22,793 894 Commercial real estate 1,569 1,574 80 3,086 15 1,188 1,436 — 2,069 74 Home equity line of credit 6,158 6,612 215 4,870 160 3,225 3,527 442 2,081 53 Residential land 3,629 4,214 789 4,482 272 5,683 6,529 891 6,734 455 Commercial construction — — — — — — — — — — Residential construction — — — — — — — — — — Commercial 20,539 23,109 1,641 24,800 826 21,119 22,406 3,527 17,692 368 Consumer 10 10 6 14 — 13 13 7 14 — $ 51,759 $ 56,405 $ 4,083 $ 58,977 $ 2,054 $ 53,685 $ 57,630 $ 6,320 $ 51,383 $ 1,844 * Since loan was classified as impaired. |
Schedule of loan modifications | Loan modifications that occurred during 2016 and 2015 and the impact on the allowance for loan losses were as follows: Years ended December 31 2016 2015 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 14 $ 3,131 $ 3,245 $ 337 19 $ 3,594 $ 3,668 $ 87 Commercial real estate — — — — 1 1,500 1,500 — Home equity line of credit 36 3,337 3,337 554 39 2,441 2,441 370 Residential land 2 203 204 — 1 218 218 — Commercial construction — — — — — — — — Residential construction — — — — — — — — Commercial 15 20,266 20,266 865 8 2,267 2,267 486 Consumer — — — — — — — — 67 $ 26,937 $ 27,052 $ 1,756 68 $ 10,020 $ 10,094 $ 943 |
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 2016 and 2015 , and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2016 2015 (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 $ 239 — $ — Commercial real estate — — — — Home equity line of credit — — 1 6 Residential land — — — — Commercial construction — — — — Residential construction — — — — Commercial 1 24 1 1,056 Consumer — — — — 2 $ 263 2 $ 1,062 |
Schedule of amortized intangible assets | Changes in the carrying value of mortgage servicing rights were as follows: (in thousands) Gross Accumulated amortization Valuation allowance Net December 31, 2016 $ 17,271 $ (7,898 ) $ — $ 9,373 December 31, 2015 $ 14,531 1 $ (5,647 ) 1 $ — $ 8,884 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) 2016 2015 2014 Mortgage servicing rights Balance, January 1 $ 8,884 $ 11,749 $ 11,938 Amount capitalized 2,740 3,123 1,637 Amortization (2,251 ) (2,682 ) (1,731 ) Sale of mortgage servicing rights — (3,302 ) — Other-than-temporary impairment — (4 ) (95 ) Carrying amount before valuation allowance, December 31 9,373 8,884 11,749 Valuation allowance for mortgage servicing rights Balance, January 1 — 209 251 Provision (recovery) — (205 ) 53 Other-than-temporary impairment — (4 ) (95 ) Balance, December 31 — — 209 Net carrying value of mortgage servicing rights $ 9,373 $ 8,884 $ 11,540 |
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 2016 2015 (dollars in thousands) Unpaid principal balance $ 1,188,380 $ 1,097,314 Weighted average note rate 3.96 % 4.05 % Weighted average discount rate 9.4 % 9.6 % Weighted average prepayment speed 8.5 % 9.3 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2016 Residential loans $ 2,468 Sales price Sales price 95-100% 97% Residential loans 287 Fair value of property or collateral Appraised value less 7% selling cost 42-65% 61% Home equity lines of credit 12 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 2,767 Real estate acquired in settlement of loans $ 1,189 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% 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% (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 2016 2015 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (567 ) $ (561 ) 50 basis points adverse rate change (1,154 ) (1,104 ) Discount rate: 25 basis points adverse rate change (128 ) (111 ) 50 basis points adverse rate change (254 ) (220 ) |
Schedule of deposit liabilities | The summarized components of deposit liabilities were as follows: December 31 2016 2015 (dollars in thousands) Weighted-average stated rate Amount Weighted-average stated rate Amount Savings 0.07 % $ 2,208,594 0.07 % $ 2,030,644 Checking Interest-bearing 0.02 890,633 0.02 831,143 Noninterest-bearing — 817,867 — 746,875 Commercial checking — 821,184 — 773,499 Money market 0.12 153,126 0.13 167,641 Term certificates 1.00 657,525 0.93 475,452 0.15 % $ 5,548,929 0.12 % $ 5,025,254 |
Schedule of maturities of term certificates | The approximate scheduled maturities of term certificates outstanding at December 31, 2016 were as follows: (in thousands) 2017 $ 322,661 2018 70,611 2019 105,478 2020 81,818 2021 73,686 Thereafter 3,271 $ 657,525 |
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 2016 2015 2014 (in thousands) Term certificates $ 5,390 $ 3,747 $ 3,603 Savings 1,402 1,257 1,134 Money market 202 205 214 Interest-bearing checking 173 139 126 $ 7,167 $ 5,348 $ 5,077 |
Schedule of securities sold under agreements to repurchase | Securities sold under agreements to repurchase were summarized as follows: December 31 2016 2015 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 $ 79,083 0.15 % $ 100,305 $ 122,684 0.15 % $ 144,146 1 to 29 days — — — — — — 30 to 90 days 13,535 0.70 15,239 18,535 0.29 20,364 Over 90 days — — — 87,363 1 2.96 96,553 $ 92,618 0.23 % $ 115,544 $ 228,582 1.24 % $ 261,063 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, 2016 $ 93 $ — $ 93 December 31, 2015 229 — 229 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, 2016 Financial institution $ — $ — $ — Government entities 14 15 — Commercial account holders 79 101 — Total $ 93 $ 116 $ — December 31, 2015 Financial institution $ 50 $ 56 $ — Government entities 56 61 — Commercial account holders 123 144 — Total $ 229 $ 261 $ — |
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) 2016 2015 2014 Amount outstanding as of December 31 $ 93 $ 229 $ 191 Average amount outstanding during the year $ 170 $ 219 $ 155 Maximum amount outstanding as of any month-end $ 229 $ 277 $ 195 Weighted-average interest rate as of December 31 0.23 % 1.24 % 1.45 % Weighted-average interest rate during the year 1.43 % 1.29 % 1.67 % Weighted-average remaining days to maturity as of December 31 6 117 343 |
Schedule of advances from Federal Home Loan Bank | FHLB advances are fixed rate for a specific term and consist of the following: December 31, 2016 Weighted-average stated rate Amount (dollars in thousands) Due in 2017 4.28 % $ 50,000 1 2018 1.95 50,000 2019 — — 2020 — — 2021 — — 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 2016 2015 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 25,883 $ 421 $ 22,241 $ 384 Forward commitments 30,813 (177 ) 23,644 (29 ) |
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 2016 2015 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability derivatives Interest rate lock commitments $ 445 $ 24 $ 384 $ — Forward commitments 8 185 1 30 $ 453 $ 209 $ 385 $ 30 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 2016 2015 2014 Interest rate lock commitments Mortgage banking income $ 37 $ (6 ) $ (74 ) Forward commitments Mortgage banking income (148 ) 77 (245 ) $ (111 ) $ 71 $ (319 ) |
Schedule of off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: December 31 2016 2015 (in thousands) Unfunded commitments to extend credit: Home equity line of credit $ 1,146,339 $ 1,096,532 Commercial and commercial real estate 577,410 631,780 Consumer 64,762 60,198 Residential 1-4 family 38,271 24,863 Commercial and financial standby letters of credit 16,017 18,709 Total $ 1,842,799 $ 1,832,082 |
Unconsolidated variable inter44
Unconsolidated variable interest entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 (in millions) AES Hawaii $ 149 $ 134 $ 145 Kalaeloa 152 187 279 HEP 29 44 51 HPOWER 71 66 66 Puna Geothermal Venture 28 29 45 Hawaiian Commercial & Sugar (HC&S) 1 8 15 Other IPPs 133 126 121 Total IPPs $ 563 $ 594 $ 722 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of long-term debt | December 31 2016 2015 (dollars in thousands) Long-term debt of Utilities 1 $ 1,319,260 $ 1,278,702 HEI term loan LIBOR + .75%, due 2017 125,000 125,000 HEI term loan LIBOR + .75%, due 2018 75,000 — HEI senior note 4.41%, paid 2016 — 75,000 HEI senior note 5.67%, due 2021 50,000 50,000 HEI senior note 3.99%, due 2023 50,000 50,000 Less unamortized debt issuance costs (241 ) (334 ) $ 1,619,019 $ 1,578,368 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 gains(losses) on derivatives Retirement benefit plans AOCI Unrealized losses on derivatives Retirement benefit plans AOCI Balance, December 31, 2013 $ (3,663 ) $ (525 ) $ (12,562 ) $ (16,750 ) $ — $ 608 $ 608 Current period other comprehensive income (loss) 4,125 236 (14,989 ) (10,628 ) — (563 ) (563 ) Balance, December 31, 2014 462 (289 ) (27,551 ) (27,378 ) — 45 45 Current period other comprehensive income (loss) (2,334 ) 235 3,215 1,116 — 880 880 Balance, December 31, 2015 (1,872 ) (54 ) (24,336 ) (26,262 ) — 925 925 Current period other comprehensive loss (6,059 ) (400 ) (408 ) (6,867 ) (454 ) (793 ) (1,247 ) Balance, December 31, 2016 $ (7,931 ) $ (454 ) $ (24,744 ) $ (33,129 ) $ (454 ) $ 132 (322 ) |
Reclassification Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Years ended December 31 2016 2015 2014 Affected line item in the Statement of Income (in thousands) HEI consolidated Net realized gains on securities $ (360 ) $ — $ (1,715 ) Revenues-bank (net gains on sales of securities) Derivatives qualified as cash flow hedges Window forward contracts (173 ) — — Revenues-electric utilities (gains on window forward contracts – see Note 4 for additional details) Interest rate contracts (settled in 2011) 54 235 236 Interest expense Retirement benefit plan items Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 14,518 22,465 11,344 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets 28,584 (25,139 ) 207,833 See Note 10 for additional details Total reclassifications $ 42,623 $ (2,439 ) $ 217,698 Hawaiian Electric consolidated Derivatives qualified as cash flow hedges Window forward contracts (173 ) — — Revenues (gains on window forward contracts – see Note 4 for additional details) Retirement benefit plan items Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 13,254 $ 20,381 $ 10,212 See Note 10 for additional details Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets 28,584 (25,139 ) 207,833 See Note 10 for additional details Total reclassifications $ 41,665 $ (4,758 ) $ 218,045 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 and 2015 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, 2016 and 2015 were as follows: 2016 2015 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,798,030 $ 221,540 $ 1,847,228 $ 219,209 Service cost 60,555 3,331 66,260 3,927 Interest cost 81,549 9,670 76,960 9,011 Actuarial losses (gains) 67,741 7,831 (124,239 ) (2,911 ) Participants contributions — 1,405 — 1,274 Benefits paid and expenses (72,381 ) (9,942 ) (68,179 ) (8,970 ) Benefit obligation, December 31 1,935,494 233,835 1,798,030 221,540 Fair value of plan assets, January 1 1,271,474 170,687 1,266,060 180,332 Actual (loss) return on plan assets 103,836 11,352 (14,422 ) (2,866 ) Employer contributions 65,463 42 86,802 917 Participants contributions — 1,405 — 1,274 Benefits paid and expenses (71,072 ) (9,235 ) (66,966 ) (8,970 ) Fair value of plan assets, December 31 1,369,701 174,251 1,271,474 170,687 Accrued benefit asset (liability), December 31 $ (565,793 ) $ (59,584 ) $ (526,556 ) $ (50,853 ) Other assets $ 13,477 $ — $ 12,509 $ — Defined benefit pension and other postretirement benefit plans liability (579,270 ) (59,584 ) (539,065 ) (50,853 ) Accrued benefit asset (liability), December 31 $ (565,793 ) $ (59,584 ) $ (526,556 ) $ (50,853 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 581,763 $ 32,550 $ 639,831 $ 20,933 Recognized during year – prior service credit (cost) 57 1,793 (4 ) 1,793 Recognized during year – net actuarial losses (24,832 ) (804 ) (36,800 ) (1,796 ) Occurring during year – net actuarial losses (gains) 62,463 8,751 (21,264 ) 11,620 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 619,451 42,290 581,763 32,550 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 $ 42,518 $ (1,684 ) $ 42,979 $ (2,783 ) Net actuarial loss $ 619,582 $ 52,792 $ 581,951 $ 44,845 Prior service gain (131 ) (10,502 ) (188 ) (12,295 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 619,451 42,290 581,763 32,550 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 42,518 (1,684 ) 42,979 (2,783 ) Income taxes (benefits) (16,746 ) 656 (16,944 ) 1,084 AOCI debit/(credit), net of taxes (benefits), December 31 $ 25,772 $ (1,028 ) $ 26,035 $ (1,699 ) As of December 31, 2016 and 2015, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. 2016 2015 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,649,690 $ 213,990 $ 1,690,777 $ 211,760 Service cost 58,796 3,284 64,262 3,870 Interest cost 74,808 9,337 70,529 8,700 Actuarial losses (gains) 63,121 7,545 (114,286 ) (2,860 ) Participants contributions — 1,389 — 1,260 Benefits paid and expenses (66,789 ) (9,822 ) (63,037 ) (8,858 ) Transfers — — 1,445 118 Benefit obligation, December 31 1,779,626 225,723 1,649,690 213,990 Fair value of plan assets, January 1 1,141,833 167,930 1,129,005 177,256 Actual (loss) return on plan assets 93,441 11,168 (10,646 ) (2,712 ) Employer contributions 64,236 11 85,139 864 Participants contributions — 1,389 — 1,260 Benefits paid and expenses (66,326 ) (9,115 ) (62,584 ) (8,858 ) Other — — 919 120 Fair value of plan assets, December 31 1,233,184 171,383 1,141,833 167,930 Accrued benefit asset (liability), December 31 $ (546,442 ) $ (54,340 ) $ (507,857 ) $ (46,060 ) Other liabilities (short-term) (460 ) (596 ) (425 ) (518 ) Defined benefit pension and other postretirement benefit plans liability (545,982 ) (53,744 ) (507,432 ) (45,542 ) Accrued benefit asset (liability), December 31 $ (546,442 ) $ (54,340 ) $ (507,857 ) $ (46,060 ) AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) $ 541,118 $ 31,485 $ 595,103 $ 20,090 Recognized during year – prior service credit (cost) (13 ) 1,803 (40 ) 1,804 Recognized during year – net actuarial losses (22,693 ) (793 ) (33,371 ) (1,754 ) Occurring during year – net actuarial losses (gains) 61,313 8,472 (20,574 ) 11,345 AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 579,725 40,967 541,118 31,485 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 $ 2,792 $ (3,007 ) $ 2,334 $ (3,848 ) Net actuarial loss $ 579,691 $ 51,463 $ 541,071 $ 43,784 Prior service cost (gain) 34 (10,496 ) 47 (12,299 ) AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 579,725 40,967 541,118 31,485 Cumulative impact of PUC D&Os (576,933 ) (43,974 ) (538,784 ) (35,333 ) AOCI debit/(credit), December 31 2,792 (3,007 ) 2,334 (3,848 ) Income taxes (benefits) (1,087 ) 1,170 (908 ) 1,497 AOCI debit/(credit), net of taxes (benefits), December 31 $ 1,705 $ (1,837 ) $ 1,426 $ (2,351 ) |
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 2016 2015 Target Range 2016 2015 Target Range Assets held by category Equity securities managers 71 % 70 % 70 % 65-75 70 % 70 % 70 % 65-75 Fixed income securities managers 29 30 30 25-35 30 30 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation 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, 2016 and 2015, nearly all of its pension assets were invested in fixed income securities. 2 Asset allocation is applicable to only HEI and the Utilities. ASB does not fund its other benefits. |
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 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs December 31 Level 1 Level 2 Level 3 2016 Equity securities $ 692 $ 692 $ — $ — $ 94 $ 94 $ — $ — Equity index funds 129 129 — — 17 17 — — Equity investments at net asset value (NAV) 56 — — — 9 — — — Total equity investments 877 821 — — 120 111 — — Fixed income securities and public mutual funds 276 84 192 — 44 42 2 — Fixed income investments at NAV 180 — — — 4 — — — Total fixed income investments 456 84 192 — 48 42 2 — Cash equivalents at NAV 33 — — — 6 — — — Total $ 1,366 $ 905 $ 192 $ — $ 174 $ 153 $ 2 $ — Cash, receivables and payables, net 4 — Fair value of plan assets $ 1,370 $ 174 2015 Equity securities $ 640 $ 640 $ — $ — $ 92 $ 92 $ — $ — Equity index funds 119 119 — — 17 17 — — Equity investments at NAV 46 — — — 9 — — — Total equity investments 805 759 — — 118 109 — — Fixed income securities and public mutual funds 260 85 175 — 44 42 2 — Fixed income investments at NAV 165 — — — 4 — — — Total fixed income investments 425 85 175 — 48 42 2 — Cash equivalents at NAV 38 — — — 5 — — — Total 1,268 $ 844 $ 175 $ — 171 $ 151 $ 2 $ — Cash, receivables and payables, net 3 — Fair value of plan assets $ 1,271 $ 171 Pension benefits Other benefits Measured at net asset value December 31 Redemption frequency Redemption notice period December 31 Redemption frequency Redemption notice period (in millions) 2016 Non U.S. equity funds (a) 56 Daily - Quarterly 0 - 30 days 9 Monthly -Quarterly 10-30 days Fixed income investments (b) 180 Monthly 10 days 4 Monthly 10 days Cash equivalents (c) 33 Daily 0-1 day 6 Daily 0-1 day $ 269 $ 19 2015 Non U.S. equity funds (a) 46 Daily - Quarterly 0 - 30 days 9 Monthly - Quarterly 10-30 days Fixed income investments (b) 165 Monthly 10 days 4 Monthly 10 days Cash equivalents (c) 38 Daily 0-1 day 5 Daily 0-1 day $ 249 $ 18 None of the investments presented in the tables above have unfunded commitments. (a) Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2016 and 2015 were: daily, 31% and 24% ; monthly, 31% and 29% ; and quarterly, 38% and 47% , respectively. Redemption frequency for other benefits assets as of December 31, 2016 and 2015 were: monthly, 57% and 54% ; and quarterly, 42% and 46% , respectively. (b ) Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. (c) Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers; the fund has an average rating of AA1. |
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 2016 2015 2014 2016 2015 2014 Benefit obligation Discount rate 4.26 % 4.60 % 4.22 % 4.22 % 4.57 % 4.17 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.60 4.22 5.09 4.57 4.17 5.03 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 2016 and 2015, HEI's and utilities' plan assets only. For 2016 and 2015, ASB's expected return on plan assets was 4.80% and 4.22% , respectively. |
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) 2016 2015 2014 2016 2015 2014 HEI consolidated Service cost $ 60,555 $ 66,260 $ 49,264 $ 3,331 $ 3,927 $ 3,490 Interest cost 81,549 76,960 72,202 9,670 9,011 8,550 Expected return on plan assets (98,559 ) (88,554 ) (81,355 ) (12,273 ) (11,664 ) (10,902 ) Amortization of net prior service (gain) cost (57 ) 4 88 (1,793 ) (1,793 ) (1,793 ) Amortization of net actuarial losses (gains) 24,832 36,800 20,304 804 1,796 (11 ) Net periodic pension/benefit cost 68,320 91,470 60,503 (261 ) 1,277 (666 ) Impact of PUC D&Os (18,117 ) (40,011 ) (13,324 ) 1,343 (240 ) 1,976 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) 50,203 51,459 47,179 1,082 1,037 1,310 Hawaiian Electric consolidated Service cost $ 58,796 $ 64,262 $ 47,597 $ 3,284 $ 3,870 $ 3,392 Interest cost 74,808 70,529 65,979 9,337 8,700 8,234 Expected return on plan assets (91,633 ) (82,541 ) (72,661 ) (12,096 ) (11,495 ) (10,739 ) Amortization of net prior service (gain) cost 13 40 62 (1,803 ) (1,804 ) (1,804 ) Amortization of net actuarial losses 22,693 33,371 18,459 793 1,754 — Net periodic pension/benefit cost 64,677 85,661 59,436 (485 ) 1,025 (917 ) Impact of PUC D&Os (18,117 ) (40,011 ) (13,324 ) 1,343 (240 ) 1,976 Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 46,560 $ 45,650 $ 46,112 $ 858 $ 785 $ 1,059 |
Schedule of amounts in accumulated other comprehensive Income (loss) to be recognized over next fiscal year | The estimated prior service credit and net actuarial loss for defined benefit plans that will be amortized from AOCI or regulatory assets into NPPC and NPBC during 2017 is as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Pension benefits Other benefits Pension benefits Other benefits Estimated prior service credit $ (0.1 ) $ (1.8 ) $ — $ (1.8 ) Net actuarial loss 26.1 1.5 24.0 1.4 |
Schedule of projected benefit obligations and assets | Additional information on the defined benefit pension plans' accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), PBOs and assets were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2016 2015 2016 2015 (in billions) Defined benefit plans - ABOs $ 1.7 $ 1.6 $ 1.5 $ 1.4 Defined benefit plans with ABO in excess of plan assets ABOs 1.6 1.5 1.5 1.4 Plan assets 1.3 1.2 1.2 1.1 Defined benefit plans with PBOs in excess of plan assets PBOs 1.8 1.7 1.8 1.6 Plan assets 1.3 1.2 1.2 1.1 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 HEI consolidated Share-based compensation expense 1 $ 4.8 $ 6.5 $ 9.3 Income tax benefit 1.6 2.3 3.4 Hawaiian Electric consolidated Share-based compensation expense 1 1.4 1.9 3.1 Income tax benefit 0.5 0.7 1.2 1 For 2016, the Company has not capitalized any share-based compensation. $0.15 million and $0.16 million of this share-based compensation expense was capitalized in 2015 and 2014 , 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) 2016 2015 2014 Shares granted 19,846 28,246 33,170 Fair value $ 0.6 $ 0.8 $ 0.8 Income tax benefit 0.2 0.3 0.3 |
Summary of information about stock appreciation rights | Information about HEI’s SARs is summarized as follows: 2015 2014 Shares (1) Shares (1) Outstanding, January 1 80,000 $ 26.18 164,000 $ 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 Exercisable, December 31 — $ — 80,000 $ 26.18 (1) Weighted-average exercise price |
Schedule of stock appreciation rights activity and statistics | SARs activity and statistics were as follows: (in thousands) 2015 2014 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 equivalent rights 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 Shares (1) Outstanding, January 1 4,503 $ 22.21 Granted — — Vested (4,503 ) 22.21 Forfeited — — Outstanding, December 31 — $ — (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 | Information about HEI’s grants of restricted stock units was as follows: 2016 2015 2014 Shares (1) Shares (1) Shares (1) Outstanding, January 1 210,634 $ 28.82 261,235 $ 25.77 288,151 $ 25.17 Granted 114,431 29.70 85,772 33.69 117,786 25.17 Vested (85,003 ) 27.84 (102,173 ) 25.67 (144,702 ) 24.09 Forfeited (19,379 ) 29.82 (34,200 ) 27.09 — — Outstanding, December 31 220,683 $ 29.57 210,634 $ 28.82 261,235 $ 25.77 Total weighted-average grant-date fair value of shares granted ($ millions) $ 3.4 $ 2.9 $ 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: 2016 2015 2014 Shares (1) Shares (1) Shares (1) Outstanding, January 1 162,500 $ 27.66 257,956 $ 28.45 232,127 $ 32.88 Granted — — — — 97,524 22.95 Vested (lapsed because goal not met) (78,553 ) 32.69 (75,915 ) 30.71 (70,189 ) 35.46 Forfeited (841 ) 22.95 (19,541 ) 26.25 (1,506 ) 28.32 Outstanding, December 31 83,106 $ 22.95 162,500 $ 27.66 257,956 $ 28.45 Total weighted-average grant-date fair value of shares granted ($ millions) $ — $ — $ 2.2 (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 Risk-free interest rate 0.66 % Expected life in years 3 Expected volatility 17.8 % Range of expected volatility for Peer Group 12.4% to 23.3% Grant date fair value (per share) $ 22.95 |
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: 2016 2015 2014 Shares (1) Shares (1) Shares (1) Outstanding, January 1 222,647 $ 26.02 364,731 $ 26.01 296,843 $ 26.14 Granted — — — — 129,603 25.18 Vested and settled (109,097 ) 26.89 (121,249 ) 26.05 (65,089 ) 24.95 Increase above target (cancelled) (1,989 ) 25.26 3,412 26.89 4,949 26.70 Forfeited (1,745 ) 25.19 (24,247 ) 25.82 (1,575 ) 26.07 Outstanding, December 31 109,816 $ 25.18 222,647 $ 26.02 364,731 $ 26.01 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ — $ — $ 3.3 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 2016 2015 2014 (in thousands) Federal Current $ 59,873 $ 44,343 $ (8,959 ) $ 952 $ — $ 1,108 Deferred 43,666 36,664 91,412 70,513 68,757 68,775 Deferred tax credits, net 268 318 — 268 318 — 103,807 81,325 82,453 71,733 69,075 69,883 State Current 16,473 2,402 (5,793 ) 9,232 (1,048 ) (9,436 ) Deferred 3,452 4,768 12,813 3,873 6,869 14,172 Deferred tax credits, net (37 ) 4,526 6,106 (37 ) 4,526 6,106 19,888 11,696 13,126 13,068 10,347 10,842 Total $ 123,695 $ 93,021 $ 95,579 $ 84,801 $ 79,422 $ 80,725 |
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 2016 2015 2014 2016 2015 2014 (in thousands) Amount at the federal statutory income tax rate $ 130,844 $ 89,176 $ 92,959 $ 80,190 $ 75,996 $ 77,126 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 13,915 8,097 9,073 8,494 6,726 7,047 Other, net (21,064 ) (4,252 ) (6,453 ) (3,883 ) (3,300 ) (3,448 ) Total $ 123,695 $ 93,021 $ 95,579 $ 84,801 $ 79,422 $ 80,725 Effective income tax rate 33.1 % 36.5 % 36.0 % 37.0 % 36.6 % 36.6 % |
Schedule of deferred tax assets and liabilities | The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows: HEI consolidated Hawaiian Electric consolidated December 31 2016 2015 2016 2015 (in thousands) Deferred tax assets Net operating loss 1 $ — $ — $ 9,158 $ 37,283 Allowance for bad debts 24,500 21,781 2,364 1,852 Other 47,201 43,089 18,720 18,386 Total deferred tax assets 71,701 64,870 30,242 57,521 Deferred tax liabilities Property, plant and equipment related 538,484 492,441 536,885 489,884 Repairs deduction 103,782 104,081 103,782 104,081 Regulatory assets, excluding amounts attributable to property, plant and equipment 35,107 34,261 35,107 34,261 Deferred RAM and RBA revenues 26,053 26,400 26,053 26,400 Retirement benefits 48,400 42,006 51,445 44,991 Other 48,681 46,558 10,629 12,710 Total deferred tax liabilities 800,507 745,747 763,901 712,327 Net deferred income tax liability $ 728,806 $ 680,877 $ 733,659 $ 654,806 1 The Hawaiian Electric deferred tax asset includes the tax effect of federal net operating loss carryforwards of $9 million expiring in 2034 and federal general business credit carryforwards of $3 million expiring in 2032 through 2036, net of unrecognized federal tax benefits of $3 million due to uncertain tax positions. |
Schedule of changes in total unrecognized tax benefits | The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2016, 2015 and 2014. HEI consolidated Hawaiian Electric consolidated (in millions) 2016 2015 2014 2016 2015 2014 Unrecognized tax benefits, January 1 $ 3.6 $ — $ 0.9 $ 3.6 $ — 0.5 Reductions based on tax positions taken during the year (0.1 ) — — (0.1 ) — — Additions for tax positions of prior years 0.3 3.6 0.1 0.3 3.6 0.1 Settlements (1.0 ) — — (0.6 ) Unrecognized tax benefits, December 31 $ 3.8 $ 3.6 $ — $ 3.8 $ 3.6 $ — |
Cash flows (Tables)
Cash flows (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Years ended December 31 2016 2015 2014 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 84 $ 83 $ 84 Income taxes paid 55 75 47 Income taxes refunded 45 55 24 Hawaiian Electric consolidated Interest paid to non-affiliates 62 61 61 Income taxes paid 1 13 6 Income taxes refunded 20 12 8 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment – change in unpaid invoices and accruals (investing) 14 5 43 Common stock dividends reinvested in HEI common stock (financing) 1 17 — — Loans transferred from held for investment to held for sale (investing) 24 — — Real estate acquired in settlement of loans (investing) 1 1 3 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) 1 5 — Obligations to fund low income housing investments, net (operating) 14 4 14 Hawaiian Electric consolidated Electric utility property, plant and equipment AFUDC-equity (operating) 8 7 7 Estimated fair value of noncash contributions in aid of construction (investing) 28 3 3 Change in unpaid invoices and accruals (investing) 14 5 40 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, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair values of certain of the Company's financial instruments | The following table presents the carrying or notional 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, 2016 Financial assets HEI consolidated Money market funds $ 13,085 $ — $ 13,085 $ — $ 13,085 Available-for-sale investment securities 1,105,182 — 1,089,755 15,427 1,105,182 Stock in Federal Home Loan Bank 11,218 — 11,218 — 11,218 Loans receivable, net 4,701,977 — 13,333 4,839,493 4,852,826 Mortgage servicing rights 9,373 — — 13,216 13,216 Bank-owned life insurance 143,197 — 143,197 — 143,197 Derivative assets 23,578 — 453 — 453 Financial liabilities HEI consolidated Deposit liabilities 5,548,929 — 5,546,644 — 5,546,644 Other bank borrowings 192,618 — 193,991 — 193,991 Long-term debt, net—other than bank 1,619,019 — 1,704,717 — 1,704,717 Derivative liabilities 53,852 129 823 — 952 Hawaiian Electric consolidated Long-term debt, net 1,319,260 — 1,399,490 — 1,399,490 Derivative liabilities 20,734 — 743 — 743 December 31, 2015 Financial assets HEI consolidated 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 8,884 — — 11,790 11,790 Bank-owned life insurance 138,139 — 138,139 — 138,139 Derivative assets 22,616 — 385 — 385 Financial liabilities HEI consolidated 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* 1,578,368 — 1,669,087 — 1,669,087 Derivative liabilities 23,269 15 15 — 30 Hawaiian Electric consolidated Long-term debt, net* 1,278,702 — 1,363,766 — 1,363,766 * See Note 1 for the impact to prior period financial information of the adoption of ASU No. 2015-03. |
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 2016 2015 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) $ — $ 13,085 $ — $ — $ 10 $ — Available-for-sale investment securities (bank segment) Mortgage-related securities-FNMA, FHLMC and GNMA $ — $ 897,474 $ — $ — $ 607,689 $ — U.S. Treasury and federal agency obligations — 192,281 — — 212,959 — Mortgage revenue bond — — 15,427 — — — $ — $ 1,089,755 $ 15,427 $ — $ 820,648 $ — Derivative assets (bank segment) 1 Interest rate lock commitments $ — $ 445 $ — $ — $ 384 $ — Forward commitments — 8 — — 1 — $ — $ 453 $ — $ — $ 385 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 24 $ — $ — $ — $ — Forward commitments (bank segment) 1 129 56 — 15 15 — Window forward contracts (electric utility segment) 2 — 743 — — — — $ 129 $ 823 $ — $ 15 $ 15 $ — 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. 2 Liability derivatives are included in other current liabilities in the balance sheets. |
Schedule of Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in thousands) Mortgage revenue bond Balance at December 31, 2015 $ — Principal payments received — Purchases 15,427 Unrealized gain (loss) included in other comprehensive income — Balance at December 31, 2016 $ 15,427 |
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, 2016 Loans $ 2,767 $ — $ — $ 2,767 Real estate acquired in settlement of loans 1,189 — — 1,189 December 31, 2015 Loans 178 — — 178 Real estate acquired in settlement of loans 1,030 — — 1,030 |
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 2016 2015 (dollars in thousands) Unpaid principal balance $ 1,188,380 $ 1,097,314 Weighted average note rate 3.96 % 4.05 % Weighted average discount rate 9.4 % 9.6 % Weighted average prepayment speed 8.5 % 9.3 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2016 Residential loans $ 2,468 Sales price Sales price 95-100% 97% Residential loans 287 Fair value of property or collateral Appraised value less 7% selling cost 42-65% 61% Home equity lines of credit 12 Fair value of property or collateral Appraised value less 7% selling cost N/A (2) Total loans $ 2,767 Real estate acquired in settlement of loans $ 1,189 Fair value of property or collateral Appraised value less 7% selling cost 100% 100% 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% (1) Represent percent of outstanding principal balance. (2) N/A - Not applicable. There is one loan in each fair value measurement type. |
Other related-party transacti52
Other related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 2016 2015 2014 HMSA costs $ 28 $ 30 $ 25 $ 22 $ 23 $ 20 HMSA expense* 20 21 18 14 14 13 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, 2016 | |
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 2016 1 Revenues $ 550,960 $ 566,244 $ 646,055 $ 617,395 $ 2,380,654 Operating income 68,851 85,455 105,442 88,427 348,175 Net income 32,825 44,601 127,613 45,107 250,146 Net income for common stock 32,352 44,128 127,142 44,634 248,256 Basic earnings per common share 2 0.30 0.41 1.17 0.41 2.30 Diluted earnings per common share 3 0.30 0.41 1.17 0.41 2.29 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Market price per common share 4 High 32.69 34.98 33.57 34.08 34.98 Low 27.30 31.35 29.14 28.31 27.30 2015 1 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 2 0.31 0.33 0.47 0.39 1.50 Diluted earnings per common share 3 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 4 High 34.86 32.58 31.28 30.29 34.86 Low 31.75 29.62 27.02 27.45 27.02 Hawaiian Electric consolidated 2016 Revenues $ 482,052 $ 495,395 $ 572,253 $ 544,668 $ 2,094,368 Operating income 55,326 70,686 89,812 68,644 284,468 Net income 25,866 36,356 47,472 34,618 144,312 Net income for common stock 25,367 35,857 46,974 34,119 142,317 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 Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful. 1 In the third quarter of 2016, HEI received a $90 million termination fee from NEE and in 2016 and 2015 received and incurred other merger and spin-off-related amounts (see Note 2 to the Consolidated Financial Statements). For the first quarter of 2015, second quarter of 2015, third quarter of 2015, fourth quarter of 2015, first quarter of 2016, second quarter of 2016 and third quarter of 2016, the Company recorded merger- and spin-off-related income/(expenses), net of tax impacts of $(5) million , $(7) million , $(2) million , $(2) million , $(2) million , $(2) million and $64 million , respectively. 2 The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. 3 The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end. 4 Market prices of HEI common stock (symbol HE) shown are as reported on the NYSE Composite Tape. |
Summary of significant accoun54
Summary of significant accounting policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity method | |||
Composite annual depreciation rate (as a percent) | 3.20% | 3.20% | 3.10% |
Leases | |||
Operating lease expense | $ 19 | $ 18 | $ 19 |
Future minimum lease payments | |||
2,017 | 12 | ||
2,018 | 9 | ||
2,019 | 7 | ||
2,020 | 5 | ||
2,021 | 4 | ||
Thereafter | 8 | ||
Total | 45 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Leases | |||
Operating lease expense | 10 | $ 9 | $ 9 |
Future minimum lease payments | |||
2,017 | 6 | ||
2,018 | 4 | ||
2,019 | 4 | ||
2,020 | 3 | ||
2,021 | 3 | ||
Thereafter | 4 | ||
Total | $ 24 | ||
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% |
Summary of significant accoun55
Summary of significant accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2016 | |
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) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2016USD ($)acquisition$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | |
Basic | |||||||||||
Distributed earnings (in dollars per share) | $ / shares | $ 1.24 | ||||||||||
Undistributed earnings (loss) (in dollars per share) | $ / shares | 0.41 | ||||||||||
Earnings Per Share, basic (in dollars per share) | $ / shares | $ 0.41 | $ 1.17 | $ 0.41 | $ 0.30 | $ 0.39 | $ 0.47 | $ 0.33 | $ 0.31 | $ 2.30 | $ 1.50 | 1.65 |
Diluted | |||||||||||
Distributed earnings (in dollars per share) | $ / shares | 1.24 | ||||||||||
Undistributed earnings (losses) (in dollars per share) | $ / shares | 0.39 | ||||||||||
Earnings Per Share, diluted (in dollars per share) | $ / shares | $ 0.41 | $ 1.17 | $ 0.41 | $ 0.30 | $ 0.39 | $ 0.47 | $ 0.33 | $ 0.31 | $ 2.29 | $ 1.50 | $ 1.63 |
Accounts Receivable | |||||||||||
Allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable | $ 1,100,000 | $ 1,700,000 | $ 1,100,000 | $ 1,700,000 | |||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190,000 | 82,190,000 | $ 82,190,000 | 82,190,000 | |||||||
Weighted average discount rate | 2.517% | ||||||||||
American Savings Bank (ASB) | |||||||||||
Goodwill and other intangibles | |||||||||||
Goodwill | 82,190,000 | 82,190,000 | $ 82,190,000 | 82,190,000 | |||||||
Market valuation, control premium (as a percent) | 18.40% | ||||||||||
Control premium calculation, number of acquisitions | acquisition | 18 | ||||||||||
Control premium calculation, lower threshold acquisition purchase price | $ 500,000,000 | ||||||||||
Control premium calculation, lower threshold for interest purchased (as a percent) | 100.00% | ||||||||||
Weighted average discount rate | 8.90% | ||||||||||
Affordable housing investment, carrying value | 47,081,000 | 37,793,000 | $ 47,081,000 | 37,793,000 | |||||||
Commitments to fund affordable housing investments | 14,000,000 | 10,100,000 | $ 14,000,000 | 10,100,000 | |||||||
American Savings Bank (ASB) | Loans receivable | |||||||||||
Nonperforming loans | |||||||||||
Period for classification as delinquent | 90 days | ||||||||||
American Savings Bank (ASB) | Mortgage receivable | |||||||||||
Nonperforming loans | |||||||||||
Period for classification as delinquent | 180 days | ||||||||||
American Savings Bank (ASB) | Consumer loans | |||||||||||
Nonperforming loans | |||||||||||
Period for write-off | 120 days | ||||||||||
Minimum | American Savings Bank (ASB) | |||||||||||
Goodwill and other intangibles | |||||||||||
Market valuation, assets held | $ 3,500,000,000 | ||||||||||
Servicing Assets and servicing liabilities, basis spread | 0.50% | ||||||||||
Maximum | American Savings Bank (ASB) | |||||||||||
Goodwill and other intangibles | |||||||||||
Market valuation, assets held | $ 8,000,000,000 | ||||||||||
Servicing Assets and servicing liabilities, basis spread | 1.00% | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Electric utility revenues | |||||||||||
Revenue taxes included in revenues and in taxes, other than income taxes expense | $ 187,000,000 | $ 209,000,000 | $ 267,000,000 | ||||||||
Weighted average AFUDC rate (as a percent) | 7.60% | 7.60% | 7.70% | ||||||||
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 | ||||||||||
American Savings Bank (ASB) | |||||||||||
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 | $ 82,200,000 | $ 82,200,000 | $ 82,200,000 | $ 82,200,000 |
Summary of significant accoun57
Summary of significant accounting policies (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | $ (123,695) | $ (93,021) | $ (95,579) |
American Savings Bank (ASB) | |||
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | (30,073) | (29,082) | (27,994) |
American Savings Bank (ASB) | Variable Interest Entity, Not Primary Beneficiary | |||
Tax Credit Carryforward [Line Items] | |||
Amortization recognized in the provision for income taxes | (5,800) | (5,400) | (3,600) |
Tax credits and other tax benefits recognized in the provision for income taxes | 8,400 | 8,000 | 5,400 |
Net benefit to income tax expense | $ 2,600 | $ 2,600 | $ 1,800 |
Summary of significant accoun58
Summary of significant accounting policies (Details 5) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other | $ 447,621 | $ 480,457 | |
Assets | 12,425,506 | 11,782,018 | $ 11,177,143 |
Total capitalization and liabilities | 12,425,506 | 11,782,018 | |
Long-term debt, net—other than bank | 1,619,019 | 1,578,368 | |
Total liabilities | 10,324,460 | 9,820,085 | |
As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other | 488,635 | ||
Total capitalization and liabilities | 11,790,196 | ||
Long-term debt, net—other than bank | 1,586,546 | ||
Total liabilities | 9,828,263 | ||
Adjustment from adoption of ASU No. 2015-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total capitalization and liabilities | (8,178) | ||
Accounting Standards Update 2015-03 | Adjustment from adoption of ASU No. 2015-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other | (8,178) | ||
Long-term debt, net—other than bank | (8,178) | ||
Total liabilities | (8,178) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 5,975,428 | 5,672,210 | |
Total capitalization and liabilities | 5,975,428 | 5,672,210 | |
Unamortized debt expense | 208 | 497 | |
Total other long-term assets | 962,535 | 900,483 | |
Long-term debt, net | 1,319,260 | 1,278,702 | |
Total capitalization | 3,153,340 | 3,041,320 | |
Hawaiian Electric Company, Inc. and Subsidiaries | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 5,680,054 | ||
Unamortized debt expense | 8,341 | ||
Total other long-term assets | 908,327 | ||
Long-term debt, net | 1,286,546 | ||
Total capitalization | 3,049,164 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Accounting Standards Update 2015-03 | Adjustment from adoption of ASU No. 2015-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | (7,844) | ||
Unamortized debt expense | (7,844) | ||
Total other long-term assets | (7,844) | ||
Long-term debt, net | (7,844) | ||
Total capitalization | (7,844) | ||
Hawaiian Electric Company, Inc (HECO) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 4,720,158 | 4,476,175 | |
Total capitalization and liabilities | 4,720,158 | 4,476,175 | |
Unamortized debt expense | 151 | 359 | |
Total other long-term assets | 706,126 | 657,047 | |
Long-term debt, net | 915,437 | 875,163 | |
Total capitalization | $ 2,737,517 | 2,625,781 | |
Hawaiian Electric Company, Inc (HECO) | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 4,481,558 | ||
Unamortized debt expense | 5,742 | ||
Total other long-term assets | 662,430 | ||
Long-term debt, net | 880,546 | ||
Total capitalization | 2,631,164 | ||
Hawaiian Electric Company, Inc (HECO) | Accounting Standards Update 2015-03 | Adjustment from adoption of ASU No. 2015-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | (5,383) | ||
Unamortized debt expense | (5,383) | ||
Total other long-term assets | (5,383) | ||
Long-term debt, net | (5,383) | ||
Total capitalization | (5,383) | ||
HELCO | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 954,515 | ||
Unamortized debt expense | 74 | ||
Total other long-term assets | 129,329 | ||
Long-term debt, net | 213,580 | ||
Total capitalization | 513,282 | ||
HELCO | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 955,935 | ||
Unamortized debt expense | 1,494 | ||
Total other long-term assets | 130,749 | ||
Long-term debt, net | 215,000 | ||
Total capitalization | 514,702 | ||
HELCO | Accounting Standards Update 2015-03 | Adjustment from adoption of ASU No. 2015-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | (1,420) | ||
Unamortized debt expense | (1,420) | ||
Total other long-term assets | (1,420) | ||
Long-term debt, net | (1,420) | ||
Total capitalization | (1,420) | ||
MECO | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 830,160 | ||
Unamortized debt expense | 64 | ||
Total other long-term assets | 114,107 | ||
Long-term debt, net | 189,959 | ||
Total capitalization | 458,684 | ||
MECO | As previously filed | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | 831,201 | ||
Unamortized debt expense | 1,105 | ||
Total other long-term assets | 115,148 | ||
Long-term debt, net | 191,000 | ||
Total capitalization | 459,725 | ||
MECO | Accounting Standards Update 2015-03 | Adjustment from adoption of ASU No. 2015-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets | (1,041) | ||
Unamortized debt expense | (1,041) | ||
Total other long-term assets | (1,041) | ||
Long-term debt, net | (1,041) | ||
Total capitalization | $ (1,041) |
Termination of proposed merge59
Termination of proposed merger and other matters (Details) | Jul. 21, 2016application | May 31, 2016application | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016lawsuit | Jul. 19, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Number of additional public utility applications submitted | application | 2 | |||||||||||||
Number of public utility applications withdrawn | application | 3 | |||||||||||||
Number of lawsuits dismissed | lawsuit | 7 | |||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Merger termination, expenses recognized | $ 1,000,000 | $ 1,000,000 | ||||||||||||
NextEra Energy, Inc Merger | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Merger contract termination fee | $ 90,000,000 | $ 90,000,000 | ||||||||||||
Maximum expenses paid to party for cancellation of merger | $ 5,000,000 | |||||||||||||
Gain (loss) recognized, merger termination | $ 60,000,000 | |||||||||||||
Merger termination, merger-and-spin-off related expenses, net of taxes | (64,000,000) | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 7,000,000 | $ 5,000,000 | $ 6,000,000 | $ 16,000,000 | $ 5,000,000 | ||||
Merger termination, termination fee | 55,000,000 | |||||||||||||
Merger termination, insurance reimbursements | 3,000,000 | |||||||||||||
Recognition of previously disallowed merger and acquisition expenses | $ 8,000,000 |
Segment financial information60
Segment financial information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment financial information | |||||||||||
Revenues | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 624,032 | $ 717,176 | $ 623,912 | $ 637,862 | $ 2,380,654 | $ 2,602,982 | $ 3,239,542 |
Depreciation and amortization | 204,746 | 195,585 | 183,044 | ||||||||
Interest expense, net | 88,558 | 88,476 | 87,160 | ||||||||
Income before income taxes | 373,841 | 254,788 | 265,598 | ||||||||
Income taxes | 123,695 | 93,021 | 95,579 | ||||||||
Net income | 45,107 | 127,613 | 44,601 | 32,825 | 42,793 | 51,144 | 35,491 | 32,339 | 250,146 | 161,767 | 170,019 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | 248,256 | 159,877 | 168,129 |
Capital expenditures | 330,043 | 363,804 | 364,826 | ||||||||
Assets | 12,425,506 | 11,782,018 | 12,425,506 | 11,782,018 | 11,177,143 | ||||||
Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 2,094,368 | 2,335,166 | 2,987,323 | ||||||||
Depreciation and amortization | 193,996 | 186,319 | 176,284 | ||||||||
Interest expense, net | 66,824 | 66,370 | 64,757 | ||||||||
Income before income taxes | 229,113 | 217,131 | 220,361 | ||||||||
Income taxes | 84,801 | 79,422 | 80,725 | ||||||||
Net income | 144,312 | 137,709 | 139,636 | ||||||||
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 | ||||||||
Net income for common stock | 142,317 | 135,714 | 137,641 | ||||||||
Capital expenditures | 320,437 | 350,161 | 336,679 | ||||||||
Assets | 5,975,428 | 5,672,210 | 5,975,428 | 5,672,210 | 5,550,021 | ||||||
Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 285,924 | 267,733 | 252,497 | ||||||||
Depreciation and amortization | 9,813 | 7,928 | 5,399 | ||||||||
Interest expense, net | 12,755 | 11,326 | 10,808 | ||||||||
Income before income taxes | 87,352 | 83,812 | 79,295 | ||||||||
Income taxes | 30,073 | 29,082 | 27,994 | ||||||||
Net income | 57,279 | 54,730 | 51,301 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income for common stock | 57,279 | 54,730 | 51,301 | ||||||||
Capital expenditures | 9,394 | 13,470 | 28,073 | ||||||||
Assets | 6,421,357 | 6,014,755 | 6,421,357 | 6,014,755 | 5,566,222 | ||||||
Other | |||||||||||
Segment financial information | |||||||||||
Revenues | 362 | 83 | (278) | ||||||||
Depreciation and amortization | 937 | 1,338 | 1,361 | ||||||||
Interest expense, net | 8,979 | 10,780 | 11,595 | ||||||||
Income before income taxes | 57,376 | (46,155) | (34,058) | ||||||||
Income taxes | 8,821 | (15,483) | (13,140) | ||||||||
Net income | 48,555 | (30,672) | (20,918) | ||||||||
Preferred stock dividends of subsidiaries | (105) | (105) | (105) | ||||||||
Net income for common stock | 48,660 | (30,567) | (20,813) | ||||||||
Capital expenditures | 212 | 173 | 74 | ||||||||
Assets | $ 28,721 | $ 95,053 | 28,721 | 95,053 | 60,900 | ||||||
Operating Segments | |||||||||||
Segment financial information | |||||||||||
Revenues | 2,380,654 | 2,602,982 | 3,239,542 | ||||||||
Operating Segments | Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 2,094,224 | 2,335,135 | 2,987,299 | ||||||||
Operating Segments | Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 285,924 | 267,733 | 252,497 | ||||||||
Operating Segments | Other | |||||||||||
Segment financial information | |||||||||||
Revenues | 506 | 114 | (254) | ||||||||
Intersegment eliminations | |||||||||||
Segment financial information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Intersegment eliminations | Electric utility | |||||||||||
Segment financial information | |||||||||||
Revenues | 144 | 31 | 24 | ||||||||
Intersegment eliminations | Bank | |||||||||||
Segment financial information | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Intersegment eliminations | Other | |||||||||||
Segment financial information | |||||||||||
Revenues | $ (144) | $ (31) | $ (24) |
Electric utility segment - Regu
Electric utility segment - Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory assets | ||
Regulatory assets | $ 957,451 | $ 896,731 |
Regulatory liabilities | ||
Regulatory liabilities | 410,693 | 371,543 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory assets | ||
Regulatory assets | 957,451 | 896,731 |
Regulatory liabilities | ||
Regulatory liabilities | 410,693 | 371,543 |
Hawaiian Electric Company, Inc. and Subsidiaries | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Regulatory liabilities | 394,072 | 357,825 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 10,824 | 9,835 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 5,797 | 3,883 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory assets | ||
Regulatory assets | ||
Regulatory assets | $ 745,367 | 679,766 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes, net | ||
Regulatory assets | ||
Regulatory assets | 90,100 | 88,039 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account | ||
Regulatory assets | ||
Regulatory assets | 73,485 | 74,462 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Regulatory assets | 12,299 | 14,089 |
Hawaiian Electric Company, Inc. and Subsidiaries | Vacation earned, but not yet taken | ||
Regulatory assets | ||
Regulatory assets | $ 10,970 | 10,420 |
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Postretirement benefits other than pensions | ||
Regulatory assets | ||
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 | $ 25,230 | 29,955 |
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 | $ 66,032 | 72,231 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term assets | ||
Regulatory assets | ||
Regulatory assets | 891,419 | 824,500 |
Hawaiian Electric Company, Inc. and Subsidiaries | Current liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 3,762 | 2,204 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 406,931 | $ 369,339 |
Electric utility segment - Majo
Electric utility segment - Major Customers (Details) - Operating revenues - Customer concentration - Various federal government agencies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Major customers | |||
Operating revenues percentage | 11.00% | 11.00% | 12.00% |
Operating revenues amount | $ 226 | $ 265 | $ 350 |
Electric utility segment - Cumu
Electric utility segment - Cumulative Preferred Stock (Details) | Dec. 31, 2016$ / shares |
HECO | Series C, D, E, H, J and K Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price | $ 20 |
Redemption price | 21 |
HECO | Series I Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price | 20 |
Redemption price | 20 |
Hawaii Electric Light Company, Inc. (HELCO) | Series G Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price | 100 |
Redemption price | 100 |
MECO | Series H Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price | 100 |
Redemption price | $ 100 |
Electric utility segment - Rela
Electric utility segment - Related-Party Transactions (Details) - Hawaiian Electric Industries, Inc. - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Interest expense, related party | $ 40,000 | $ 0 | $ 0 |
HECO | |||
Related Party Transaction [Line Items] | |||
Amount charged to subsidiaries for general management and administrative services | 6,500,000 | 6,500,000 | $ 7,000,000 |
Due to related parties | $ 0 | $ 0 | |
Effective interest rate basis term | 30 days | ||
Line of credit facility basis point spread (as a percent) | 0.15% |
Electric utility segment - Addi
Electric utility segment - Additional Information (Details) | Aug. 25, 2016USD ($) | Aug. 11, 2016USD ($) | May 19, 2016USD ($) | Apr. 18, 2016USD ($) | Feb. 18, 2016contract | Jan. 05, 2016USD ($) | Dec. 22, 2015USD ($) | Oct. 30, 2015USD ($) | Jun. 30, 2014 | May 31, 2013 | Feb. 16, 2012generation_unit | Nov. 30, 2015USD ($) | Oct. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015MW | Oct. 31, 2014bidder | Aug. 31, 2014 | Jul. 31, 2014USD ($) | Feb. 28, 2013bid | Aug. 31, 2012MW | May 31, 2012MW | Mar. 31, 1988MW | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)agreementcontractMW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2045 | Jul. 19, 2016USD ($) | Jun. 20, 2014 | Feb. 07, 2014 |
Power purchase agreements | ||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | |||||||||||||||||||||||||||||
PUC request to convert to natural gas, cost | $ 341,000,000 | |||||||||||||||||||||||||||||
PUC request for containers, cost | 117,000,000 | |||||||||||||||||||||||||||||
PUC request, construction of generation system at power plant, cost | $ 859,000,000 | |||||||||||||||||||||||||||||
Renewable projects | ||||||||||||||||||||||||||||||
ERP/EAM Implementation project cost | $ 82,400,000 | |||||||||||||||||||||||||||||
Software acquisition cost | $ 4,800,000 | |||||||||||||||||||||||||||||
ERP/EAM cost recovery cap | $ 77,600,000 | |||||||||||||||||||||||||||||
ERP/EAM required pass-through savings | $ 244,000,000 | |||||||||||||||||||||||||||||
ERP/EAM project service period (in years) | 12 years | |||||||||||||||||||||||||||||
Project facility capacity (in mW) | MW | 50 | |||||||||||||||||||||||||||||
Maximum project budget | $ 157,300,000 | $ 167,000,000 | ||||||||||||||||||||||||||||
Percent of costs recoverable through recovery mechanisms other than base rates | 90.00% | |||||||||||||||||||||||||||||
Decrease In project costs | $ 9,700,000 | |||||||||||||||||||||||||||||
Project, lease term (in years) | 35 years | |||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Revenue requirement for plant additions | $ 35,700,000 | $ 40,300,000 | ||||||||||||||||||||||||||||
Power supply improvement plan, percent of energy produced from renewable sources | 65.00% | |||||||||||||||||||||||||||||
Derivative financial instrument | ||||||||||||||||||||||||||||||
Derivative, maturity window | 30 days | |||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 237,950,000 | $ 242,766,000 | ||||||||||||||||||||||||||||
Cash Flow Hedging | Foreign Exchange Forward | Designated as Hedging Instrument | ||||||||||||||||||||||||||||||
Derivative financial instrument | ||||||||||||||||||||||||||||||
Notional amount | 20,734,000 | |||||||||||||||||||||||||||||
Fair value | (743,000) | |||||||||||||||||||||||||||||
Scenario, Forecast | ||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Percentage of expected renewable portfolio standard | 100.00% | |||||||||||||||||||||||||||||
PCB Contamination | ||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||
Accrual for environmental loss contingencies | $ 4,100,000 | |||||||||||||||||||||||||||||
Biodiesel Fuel | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | contract | 3 | |||||||||||||||||||||||||||||
Chevron | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | contract | 2 | |||||||||||||||||||||||||||||
Pacific Biodiesel Technologies | Biodiesel Fuel | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | contract | 2 | |||||||||||||||||||||||||||||
Power purchase agreement, extension period (in years) | 1 year | |||||||||||||||||||||||||||||
REG Marketing & Logistics | Biodiesel Fuel | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | contract | 1 | |||||||||||||||||||||||||||||
Power purchase agreement, extension period (in years) | 1 year | |||||||||||||||||||||||||||||
Kalaeloa Partners, L.P. (Kalaeloa) | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Period following written notification of contract negotiation termination (in days) | 60 days | |||||||||||||||||||||||||||||
AES Hawaii, Inc. (AES Hawaii) | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Hu Honua Bioenergy | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Purchase commitment, minimum power volume required to be purchased | MW | 21.5 | |||||||||||||||||||||||||||||
Hawaiian Telcom | ||||||||||||||||||||||||||||||
Derivative financial instrument | ||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 21,300,000 | |||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | |||||||||||||||||||||||||||||
Purchased power | $ 431,009,000 | 440,983,000 | $ 537,821,000 | |||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||
Number of generating units subject to new regulation | generation_unit | 14 | |||||||||||||||||||||||||||||
Extension period resulting in mercury and air toxics standards compliance date | 1 year | |||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Annual incremental RAM adjusted revenues | $ 11,000,000 | |||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | Hawaiian Telcom | ||||||||||||||||||||||||||||||
Derivative financial instrument | ||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 14,200,000 | |||||||||||||||||||||||||||||
Hawaii Electric Light Company, Inc. (HELCO) | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Purchased power | 81,018,000 | 97,503,000 | 123,226,000 | |||||||||||||||||||||||||||
Maui Electric Company, Limited (MECO) | ||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Purchased power | 50,713,000 | 55,610,000 | 60,961,000 | |||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||
Additional accrued investigation and estimated cleanup costs | 3,600,000 | |||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||
Fuel contracts | ||||||||||||||||||||||||||||||
Estimated cost of minimum purchase within 2015 year | 125,000,000 | |||||||||||||||||||||||||||||
Estimated cost of minimum purchase in 2016 year | 119,000,000 | |||||||||||||||||||||||||||||
Estimated cost of minimum purchase in 2017 year | 119,000,000 | |||||||||||||||||||||||||||||
Cost of purchases | $ 400,000,000 | 600,000,000 | 1,100,000,000 | |||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 551 | |||||||||||||||||||||||||||||
Purchased power | $ 562,740,000 | 594,096,000 | 722,008,000 | |||||||||||||||||||||||||||
Expected fixed capacity charges per year for 2015 through 2019, minimum | 100,000,000 | |||||||||||||||||||||||||||||
Expected fixed capacity charges from 2019 through 2033 | 400,000,000 | |||||||||||||||||||||||||||||
Renewable projects | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Percent of reduction in GHG emissions mandated by regulations | 16.00% | |||||||||||||||||||||||||||||
Percentage of reduction in GHG emissions by 2020 | 16.00% | |||||||||||||||||||||||||||||
Estimated annual fee, emissions regulation | 500,000 | |||||||||||||||||||||||||||||
ARO, recognition impact on earnings | 0 | |||||||||||||||||||||||||||||
Changes in the asset retirement obligation liability | ||||||||||||||||||||||||||||||
Balance at the beginning of the period | 26,848,000 | 29,419,000 | ||||||||||||||||||||||||||||
Accretion expense | 10,000 | 24,000 | ||||||||||||||||||||||||||||
Liabilities incurred | 0 | 0 | ||||||||||||||||||||||||||||
Liabilities settled | (1,269,000) | (2,595,000) | ||||||||||||||||||||||||||||
Revisions in estimated cash flows | 0 | 0 | ||||||||||||||||||||||||||||
Balance at the end of the period | 25,589,000 | $ 26,848,000 | $ 29,419,000 | |||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Reduction in pro forma net earnings | $ 14,000,000 | |||||||||||||||||||||||||||||
Decoupling implementation experience (in years) | 3 years | |||||||||||||||||||||||||||||
Public Utilities, proposed rate base adjustment, percent of previous rate base adjustment | 90.00% | |||||||||||||||||||||||||||||
Public Utilities, effective interest rate, revenue balancing account | 6.00% | |||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | ||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Public Utilities, proposed effective interest rate, revenue balancing account | 1.25% | |||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | ||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Public Utilities, proposed effective interest rate, revenue balancing account | 3.25% | |||||||||||||||||||||||||||||
HELCO | ||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Annual incremental RAM adjusted revenues | 2,300,000 | |||||||||||||||||||||||||||||
HELCO | Hamakua Energy Partners, L.P. (HEP) | ||||||||||||||||||||||||||||||
Renewable projects | ||||||||||||||||||||||||||||||
Consideration transferred | $ 84,500,000 | |||||||||||||||||||||||||||||
HELCO | Maximum | ||||||||||||||||||||||||||||||
Renewable projects | ||||||||||||||||||||||||||||||
Power purchase capacity (in megawatts) | MW | 60 | |||||||||||||||||||||||||||||
HELCO | Hawaiian Telcom | ||||||||||||||||||||||||||||||
Derivative financial instrument | ||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 5,700,000 | |||||||||||||||||||||||||||||
Hamakua Energy Partners, L.P. (HEP) | ||||||||||||||||||||||||||||||
Renewable projects | ||||||||||||||||||||||||||||||
Percent of generating capacity for area | 23.00% | |||||||||||||||||||||||||||||
MECO | ||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||
Revenue requirement for plant additions | $ 4,300,000 | |||||||||||||||||||||||||||||
Revenue requirement for plant additions, recovery requested | $ 27,200,000 | |||||||||||||||||||||||||||||
Annual incremental RAM adjusted revenues | $ 2,400,000 | |||||||||||||||||||||||||||||
MECO | Hawaiian Telcom | ||||||||||||||||||||||||||||||
Derivative financial instrument | ||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 1,400,000 |
Electric utility segment - 2014
Electric utility segment - 2014 Agreement (Details) - order | 1 Months Ended | 12 Months Ended |
Apr. 30, 2014 | Dec. 31, 2016 | |
Regulatory projects and legal obligations | ||
Number of orders from regulatory agency | 4 | |
MECO | ||
Regulatory projects and legal obligations | ||
Period to file required plan | 120 days |
Electric utility segment - Cons
Electric utility segment - Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Expenses | |||||||||||
Total expenses | $ 2,032,479 | $ 2,280,429 | $ 2,906,942 | ||||||||
Operating income | $ 88,427 | $ 105,442 | $ 85,455 | $ 68,851 | $ 83,222 | $ 97,095 | $ 72,730 | $ 69,506 | 348,175 | 322,553 | 332,600 |
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 | ||||||||
Allowance for borrowed funds used during construction | (3,144) | (2,457) | (2,579) | ||||||||
Income before income taxes | 373,841 | 254,788 | 265,598 | ||||||||
Income taxes | 123,695 | 93,021 | 95,579 | ||||||||
Net income | 45,107 | 127,613 | 44,601 | 32,825 | 42,793 | 51,144 | 35,491 | 32,339 | 250,146 | 161,767 | 170,019 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 44,634 | 127,142 | 44,128 | 32,352 | 42,320 | 50,673 | 35,018 | 31,866 | 248,256 | 159,877 | 168,129 |
HECO | |||||||||||
Revenues | 1,474,384 | 1,644,181 | 2,142,245 | ||||||||
Expenses | |||||||||||
Fuel oil | 305,359 | 458,069 | 821,246 | ||||||||
Purchased power | 431,009 | 440,983 | 537,821 | ||||||||
Other operation and maintenance | 273,176 | 284,583 | 283,532 | ||||||||
Depreciation | 126,086 | 117,682 | 109,204 | ||||||||
Taxes, other than income taxes | 141,615 | 156,871 | 201,426 | ||||||||
Total expenses | 1,277,245 | 1,458,188 | 1,953,229 | ||||||||
Operating income | 197,139 | 185,993 | 189,016 | ||||||||
Allowance for equity funds used during construction | 6,659 | 5,641 | 6,085 | ||||||||
Equity in earnings of subsidiaries | 42,391 | 42,920 | 40,964 | ||||||||
Interest expense and other charges, net | (45,839) | (45,899) | (44,041) | ||||||||
Allowance for borrowed funds used during construction | (2,484) | (1,967) | (2,306) | ||||||||
Income before income taxes | 202,834 | 190,622 | 194,330 | ||||||||
Income taxes | 59,437 | 53,828 | 55,609 | ||||||||
Net income | 143,397 | 136,794 | 138,721 | ||||||||
Net income attributable to Hawaiian Electric | 143,397 | 136,794 | 138,721 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | 142,317 | 135,714 | 137,641 | ||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Revenues | 311,385 | 345,549 | 422,200 | ||||||||
Expenses | |||||||||||
Fuel oil | 55,094 | 71,851 | 117,215 | ||||||||
Purchased power | 81,018 | 97,503 | 123,226 | ||||||||
Other operation and maintenance | 63,897 | 63,098 | 65,471 | ||||||||
Depreciation | 37,797 | 37,250 | 35,904 | ||||||||
Taxes, other than income taxes | 29,017 | 32,312 | 39,521 | ||||||||
Total expenses | 266,823 | 302,014 | 381,337 | ||||||||
Operating income | 44,562 | 43,535 | 40,863 | ||||||||
Allowance for equity funds used during construction | 765 | 604 | 472 | ||||||||
Interest expense and other charges, net | (11,555) | (10,773) | (11,030) | ||||||||
Allowance for borrowed funds used during construction | (294) | (215) | (182) | ||||||||
Income before income taxes | 34,066 | 33,581 | 30,487 | ||||||||
Income taxes | 12,277 | 12,292 | 11,264 | ||||||||
Net income | 21,789 | 21,289 | 19,223 | ||||||||
Preferred stock dividends of subsidiaries | 534 | 534 | 534 | ||||||||
Net income attributable to Hawaiian Electric | 21,255 | 20,755 | 18,689 | ||||||||
Net income for common stock | 21,255 | 20,755 | 18,689 | ||||||||
MECO | |||||||||||
Revenues | 308,705 | 345,517 | 422,965 | ||||||||
Expenses | |||||||||||
Fuel oil | 94,251 | 124,680 | 193,224 | ||||||||
Purchased power | 50,713 | 55,610 | 60,961 | ||||||||
Other operation and maintenance | 68,460 | 65,408 | 61,609 | ||||||||
Depreciation | 23,178 | 22,448 | 21,279 | ||||||||
Taxes, other than income taxes | 29,230 | 32,702 | 39,916 | ||||||||
Total expenses | 265,832 | 300,848 | 376,989 | ||||||||
Operating income | 42,873 | 44,669 | 45,976 | ||||||||
Allowance for equity funds used during construction | 901 | 683 | 214 | ||||||||
Interest expense and other charges, net | (9,536) | (9,779) | (9,773) | ||||||||
Allowance for borrowed funds used during construction | (366) | (275) | (91) | ||||||||
Income before income taxes | 34,604 | 35,848 | 36,508 | ||||||||
Income taxes | 13,087 | 13,302 | 13,852 | ||||||||
Net income | 21,517 | 22,546 | 22,656 | ||||||||
Preferred stock dividends of subsidiaries | 381 | 381 | 381 | ||||||||
Net income attributable to Hawaiian Electric | 21,136 | 22,165 | 22,275 | ||||||||
Net income for common stock | 21,136 | 22,165 | 22,275 | ||||||||
Consolidating adjustments | |||||||||||
Revenues | (106) | (81) | (87) | ||||||||
Expenses | |||||||||||
Operating income | (106) | (81) | (87) | ||||||||
Equity in earnings of subsidiaries | (42,391) | (42,920) | (40,964) | ||||||||
Interest expense and other charges, net | 106 | 81 | 87 | ||||||||
Income before income taxes | (42,391) | (42,920) | (40,964) | ||||||||
Income taxes | 0 | ||||||||||
Net income | (42,391) | (42,920) | (40,964) | ||||||||
Net income attributable to Hawaiian Electric | (42,391) | (42,920) | (40,964) | ||||||||
Net income for common stock | (42,391) | (42,920) | (40,964) | ||||||||
HECO Consolidated | |||||||||||
Revenues | 2,094,368 | 2,335,166 | 2,987,323 | ||||||||
Expenses | |||||||||||
Fuel oil | 454,704 | 654,600 | 1,131,685 | ||||||||
Purchased power | 562,740 | 594,096 | 722,008 | ||||||||
Other operation and maintenance | 405,533 | 413,089 | 410,612 | ||||||||
Depreciation | 187,061 | 177,380 | 166,387 | ||||||||
Taxes, other than income taxes | 199,862 | 221,885 | 280,863 | ||||||||
Total expenses | 1,809,900 | 2,061,050 | 2,711,555 | ||||||||
Operating income | 68,644 | 89,812 | 70,686 | 55,326 | 67,662 | 82,657 | 66,161 | 57,636 | 284,468 | 274,116 | 275,768 |
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 | ||||||||
Interest expense and other charges, net | (66,824) | (66,370) | (64,757) | ||||||||
Allowance for borrowed funds used during construction | (3,144) | (2,457) | (2,579) | ||||||||
Income before income taxes | 229,113 | 217,131 | 220,361 | ||||||||
Income taxes | 84,801 | 79,422 | 80,725 | ||||||||
Net income | 34,618 | 47,472 | 36,356 | 25,866 | 33,492 | 43,504 | 33,340 | 27,373 | 144,312 | 137,709 | 139,636 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 143,397 | 136,794 | 138,721 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | $ 142,317 | $ 135,714 | $ 137,641 |
Electric utility segment - Co68
Electric utility segment - Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income for common stock | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 42,320 | $ 50,673 | $ 35,018 | $ 31,866 | $ 248,256 | $ 159,877 | $ 168,129 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281) | 0 | 0 | ||||||||
Less: reclassification adjustment to net income, net of (taxes) benefit of $(76), $150 and $150 for 2016, 2015 and 2014, respectively | (119) | 235 | 236 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (43,510) | 5,889 | (234,166) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 14,518 | 22,465 | 11,344 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139) | 207,833 | ||||||||
Other comprehensive income (loss), net of taxes | (6,867) | 1,116 | (10,628) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 241,389 | 160,993 | 157,501 | ||||||||
HECO | |||||||||||
Net income for common stock | 142,317 | 135,714 | 137,641 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281) | ||||||||||
Less: reclassification adjustment to net income, net of (taxes) benefit of $(76), $150 and $150 for 2016, 2015 and 2014, respectively | (173) | ||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (42,631) | 5,638 | (218,608) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 13,254 | 20,381 | 10,212 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139) | 207,833 | ||||||||
Other comprehensive income (loss), net of taxes | (1,247) | 880 | (563) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 141,070 | 136,594 | 137,078 | ||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Net income for common stock | 21,255 | 20,755 | 18,689 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (5,141) | (2,710) | (28,725) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 1,718 | 2,728 | 1,270 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 3,269 | 104 | 27,437 | ||||||||
Other comprehensive income (loss), net of taxes | (154) | 122 | (18) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 21,101 | 20,877 | 18,671 | ||||||||
MECO | |||||||||||
Net income for common stock | 21,136 | 22,165 | 22,275 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (5,447) | (1,352) | (29,352) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 1,549 | 2,503 | 1,090 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 3,852 | (1,107) | 28,257 | ||||||||
Other comprehensive income (loss), net of taxes | (46) | 44 | (5) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 21,090 | 22,209 | 22,270 | ||||||||
Other subsidiaries | |||||||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | 0 | ||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 0 | ||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 0 | ||||||||||
Other comprehensive income (loss), net of taxes | 0 | ||||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 0 | 0 | 0 | ||||||||
Consolidating adjustments | |||||||||||
Net income for common stock | (42,391) | (42,920) | (40,964) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | 10,588 | 4,062 | 58,077 | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | (3,267) | (5,231) | (2,360) | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | (7,121) | 1,003 | (55,694) | ||||||||
Other comprehensive income (loss), net of taxes | 200 | (166) | 23 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | (42,191) | (43,086) | (40,941) | ||||||||
HECO Consolidated | |||||||||||
Net income for common stock | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | $ 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | 142,317 | 135,714 | 137,641 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281) | 0 | 0 | ||||||||
Less: reclassification adjustment to net income, net of (taxes) benefit of $(76), $150 and $150 for 2016, 2015 and 2014, respectively | (173) | 0 | 0 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (42,631) | 5,638 | (218,608) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 13,254 | 20,381 | 10,212 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139) | 207,833 | ||||||||
Other comprehensive income (loss), net of taxes | (1,247) | 880 | (563) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 141,070 | $ 136,594 | $ 137,078 |
Electric utility segment - Co69
Electric utility segment - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 4,603,465 | $ 4,377,658 | ||
Other long-term assets | ||||
Total assets | 12,425,506 | 11,782,018 | $ 11,177,143 | |
Capitalization | ||||
Common stock equity | 2,066,753 | 1,927,640 | 1,790,573 | $ 1,726,406 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Liabilities | ||||
Interest and dividends payable | 25,225 | 26,042 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 728,806 | 680,877 | ||
Contributions in aid of construction | 543,525 | 506,087 | ||
Total capitalization and liabilities | 12,425,506 | 11,782,018 | ||
HECO | ||||
Utility property, plant and equipment | ||||
Land | 43,956 | 43,557 | ||
Plant and equipment | 4,241,060 | 4,026,079 | ||
Less accumulated depreciation | (1,382,972) | (1,316,467) | ||
Construction in progress | 180,194 | 147,979 | ||
Utility property, plant and equipment, net | 3,082,238 | 2,901,148 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,760 | 5,659 | ||
Total property, plant and equipment, net | 3,087,998 | 2,906,807 | ||
Investment in wholly-owned subsidiaries, at equity | 550,946 | 556,528 | ||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 61,388 | 16,281 | 12,416 | 61,245 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 86,373 | 93,515 | ||
Accrued unbilled revenues, net | 65,821 | 60,080 | ||
Other accounts receivable, net | 7,652 | 16,421 | ||
Fuel oil stock, at average cost | 47,239 | 49,455 | ||
Materials and supplies, at average cost | 29,928 | 30,921 | ||
Prepayments and other | 16,502 | 25,505 | ||
Regulatory assets | 60,185 | 63,615 | ||
Total current assets | 375,088 | 355,793 | ||
Other long-term assets | ||||
Regulatory assets | 662,232 | 608,957 | ||
Unamortized debt expense | 151 | 359 | ||
Other | 43,743 | 47,731 | ||
Total other long-term assets | 706,126 | 657,047 | ||
Total assets | 4,720,158 | 4,476,175 | ||
Capitalization | ||||
Common stock equity | 1,799,787 | 1,728,325 | 1,682,144 | 1,593,564 |
Cumulative preferred stock – not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 915,437 | 875,163 | ||
Total capitalization | 2,737,517 | 2,625,781 | ||
Liabilities | ||||
Short-term borrowings-affiliate | 13,500 | 23,000 | ||
Accounts payable | 86,369 | 84,631 | ||
Interest and dividends payable | 15,761 | 15,747 | ||
Taxes accrued | 120,176 | 131,668 | ||
Regulatory liabilities | 0 | 0 | ||
Other | 41,352 | 41,083 | ||
Total current liabilities | 277,158 | 296,129 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 524,433 | 466,133 | ||
Regulatory liabilities | 281,112 | 254,033 | ||
Unamortized tax credits | 57,844 | 54,078 | ||
Defined benefit pension and other postretirement benefit plans liability | 444,458 | 409,021 | ||
Other | 49,191 | 51,273 | ||
Total deferred credits and other liabilities | 1,357,038 | 1,234,538 | ||
Contributions in aid of construction | 348,445 | 319,727 | ||
Total capitalization and liabilities | 4,720,158 | 4,476,175 | ||
Hawaii Electric Light Company, Inc. (HELCO) | ||||
Utility property, plant and equipment | ||||
Land | 6,181 | 6,219 | ||
Plant and equipment | 1,255,185 | 1,212,195 | ||
Less accumulated depreciation | (507,666) | (486,028) | ||
Construction in progress | 12,510 | 11,455 | ||
Utility property, plant and equipment, net | 766,210 | 743,841 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 82 | ||
Total property, plant and equipment, net | 766,325 | 743,923 | ||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 10,749 | 2,682 | 612 | 1,326 |
Advances to affiliates | 3,500 | 15,500 | ||
Customer accounts receivable, net | 20,055 | 20,508 | ||
Accrued unbilled revenues, net | 13,564 | 12,531 | ||
Other accounts receivable, net | 2,445 | 1,275 | ||
Fuel oil stock, at average cost | 8,229 | 8,310 | ||
Materials and supplies, at average cost | 7,380 | 6,865 | ||
Prepayments and other | 5,352 | 9,091 | ||
Regulatory assets | 3,483 | 4,501 | ||
Total current assets | 74,757 | 81,263 | ||
Other long-term assets | ||||
Regulatory assets | 120,863 | 114,562 | ||
Unamortized debt expense | 23 | 74 | ||
Other | 13,573 | 14,693 | ||
Total other long-term assets | 134,459 | 129,329 | ||
Total assets | 975,541 | 954,515 | ||
Capitalization | ||||
Common stock equity | 291,291 | 292,702 | 281,846 | 274,802 |
Cumulative preferred stock – not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 213,703 | 213,580 | ||
Total capitalization | 511,994 | 513,282 | ||
Liabilities | ||||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 18,126 | 17,702 | ||
Interest and dividends payable | 4,206 | 4,255 | ||
Taxes accrued | 28,100 | 30,342 | ||
Regulatory liabilities | 2,219 | 1,030 | ||
Other | 7,637 | 8,760 | ||
Total current liabilities | 60,288 | 62,089 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 108,052 | 100,681 | ||
Regulatory liabilities | 93,974 | 84,623 | ||
Unamortized tax credits | 15,994 | 15,406 | ||
Defined benefit pension and other postretirement benefit plans liability | 75,005 | 69,893 | ||
Other | 13,024 | 13,243 | ||
Total deferred credits and other liabilities | 306,049 | 283,846 | ||
Contributions in aid of construction | 97,210 | 95,298 | ||
Total capitalization and liabilities | 975,541 | 954,515 | ||
MECO | ||||
Utility property, plant and equipment | ||||
Land | 3,016 | 3,016 | ||
Plant and equipment | 1,109,487 | 1,077,424 | ||
Less accumulated depreciation | (478,644) | (463,509) | ||
Construction in progress | 19,038 | 15,875 | ||
Utility property, plant and equipment, net | 652,897 | 632,806 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,531 | ||
Total property, plant and equipment, net | 654,429 | 634,337 | ||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 2,048 | 5,385 | 633 | 153 |
Advances to affiliates | 10,000 | 7,500 | ||
Customer accounts receivable, net | 17,260 | 18,755 | ||
Accrued unbilled revenues, net | 12,308 | 11,898 | ||
Other accounts receivable, net | 1,416 | 1,674 | ||
Fuel oil stock, at average cost | 10,962 | 13,451 | ||
Materials and supplies, at average cost | 16,371 | 16,643 | ||
Prepayments and other | 2,179 | 2,295 | ||
Regulatory assets | 2,364 | 4,115 | ||
Total current assets | 74,908 | 81,716 | ||
Other long-term assets | ||||
Regulatory assets | 108,324 | 100,981 | ||
Unamortized debt expense | 34 | 64 | ||
Other | 13,592 | 13,062 | ||
Total other long-term assets | 121,950 | 114,107 | ||
Total assets | 851,287 | 830,160 | ||
Capitalization | ||||
Common stock equity | 259,554 | 263,725 | 256,692 | 248,771 |
Cumulative preferred stock – not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 190,120 | 189,959 | ||
Total capitalization | 454,674 | 458,684 | ||
Liabilities | ||||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 13,319 | 12,513 | ||
Interest and dividends payable | 2,882 | 3,113 | ||
Taxes accrued | 25,387 | 29,325 | ||
Regulatory liabilities | 1,543 | 1,174 | ||
Other | 12,501 | 13,194 | ||
Total current liabilities | 55,632 | 59,319 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 100,911 | 87,706 | ||
Regulatory liabilities | 31,845 | 30,683 | ||
Unamortized tax credits | 15,123 | 14,730 | ||
Defined benefit pension and other postretirement benefit plans liability | 80,263 | 74,060 | ||
Other | 14,969 | 13,916 | ||
Total deferred credits and other liabilities | 243,111 | 221,095 | ||
Contributions in aid of construction | 97,870 | 91,062 | ||
Total capitalization and liabilities | 851,287 | 830,160 | ||
Other subsidiaries | ||||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 101 | 101 | 101 | 101 |
Total current assets | 101 | 101 | ||
Other long-term assets | ||||
Total assets | 101 | 101 | ||
Capitalization | ||||
Common stock equity | 101 | 101 | 101 | 101 |
Total capitalization | 101 | 101 | ||
Liabilities | ||||
Other | 0 | |||
Total current liabilities | 0 | |||
Deferred credits and other liabilities | ||||
Total capitalization and liabilities | 101 | 101 | ||
Consolidating adjustments | ||||
Utility property, plant and equipment | ||||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | |||
Investment in wholly-owned subsidiaries, at equity | (550,946) | (556,528) | ||
Assets, Current [Abstract] | ||||
Advances to affiliates | (13,500) | (23,000) | ||
Other accounts receivable, net | (6,280) | (8,962) | ||
Prepayments and other | (933) | (251) | ||
Total current assets | (20,713) | (32,213) | ||
Other long-term assets | ||||
Regulatory assets | 0 | 0 | ||
Total other long-term assets | 0 | 0 | ||
Total assets | (571,659) | (588,741) | ||
Capitalization | ||||
Common stock equity | (550,946) | (556,528) | (538,639) | (523,674) |
Total capitalization | (550,946) | (556,528) | ||
Liabilities | ||||
Short-term borrowings-affiliate | (13,500) | (23,000) | ||
Interest and dividends payable | (11) | (4) | ||
Taxes accrued | (933) | (251) | ||
Regulatory liabilities | 0 | |||
Other | (6,269) | (8,958) | ||
Total current liabilities | (20,713) | (32,213) | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 263 | 286 | ||
Regulatory liabilities | 0 | 0 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | |||
Other | (263) | (286) | ||
Total deferred credits and other liabilities | 0 | 0 | ||
Total capitalization and liabilities | (571,659) | (588,741) | ||
HECO Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 53,153 | 52,792 | ||
Plant and equipment | 6,605,732 | 6,315,698 | ||
Less accumulated depreciation | (2,369,282) | (2,266,004) | ||
Construction in progress | 211,742 | 175,309 | ||
Utility property, plant and equipment, net | 4,501,345 | 4,277,795 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 7,407 | 7,272 | ||
Total property, plant and equipment, net | 4,508,752 | 4,285,067 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | |||
Assets, Current [Abstract] | ||||
Cash and cash equivalents | 74,286 | 24,449 | 13,762 | 62,825 |
Customer accounts receivable, net | 123,688 | 132,778 | ||
Accrued unbilled revenues, net | 91,693 | 84,509 | ||
Other accounts receivable, net | 5,233 | 10,408 | ||
Fuel oil stock, at average cost | 66,430 | 71,216 | ||
Materials and supplies, at average cost | 53,679 | 54,429 | ||
Prepayments and other | 23,100 | 36,640 | ||
Regulatory assets | 66,032 | 72,231 | ||
Total current assets | 504,141 | 486,660 | ||
Other long-term assets | ||||
Regulatory assets | 891,419 | 824,500 | ||
Unamortized debt expense | 208 | 497 | ||
Other | 70,908 | 75,486 | ||
Total other long-term assets | 962,535 | 900,483 | ||
Total assets | 5,975,428 | 5,672,210 | ||
Capitalization | ||||
Common stock equity | 1,799,787 | 1,728,325 | $ 1,682,144 | $ 1,593,564 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,319,260 | 1,278,702 | ||
Total capitalization | 3,153,340 | 3,041,320 | ||
Liabilities | ||||
Accounts payable | 117,814 | 114,846 | ||
Interest and dividends payable | 22,838 | 23,111 | ||
Taxes accrued | 172,730 | 191,084 | ||
Regulatory liabilities | 3,762 | 2,204 | ||
Other | 55,221 | 54,079 | ||
Total current liabilities | 372,365 | 385,324 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 733,659 | 654,806 | ||
Regulatory liabilities | 406,931 | 369,339 | ||
Unamortized tax credits | 88,961 | 84,214 | ||
Defined benefit pension and other postretirement benefit plans liability | 599,726 | 552,974 | ||
Other | 76,921 | 78,146 | ||
Total deferred credits and other liabilities | 1,906,198 | 1,739,479 | ||
Contributions in aid of construction | 543,525 | 506,087 | ||
Total capitalization and liabilities | $ 5,975,428 | $ 5,672,210 |
Electric utility segment - Co70
Electric utility segment - Consolidating Statements of Changes in Common Stock Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | $ 1,927,640 | $ 1,790,573 | $ 1,927,640 | $ 1,790,573 | $ 1,726,406 | ||||||
Net income for common stock | $ 44,634 | $ 127,142 | $ 44,128 | 32,352 | $ 42,320 | $ 50,673 | $ 35,018 | 31,866 | 248,256 | 159,877 | 168,129 |
Other comprehensive income (loss), net of tax benefits | (6,867) | 1,116 | (10,628) | ||||||||
Issuance of common stock, net of expenses | 26,844 | 2,461 | |||||||||
Common stock dividends | (134,050) | (131,765) | (126,505) | ||||||||
Ending Balance | 2,066,753 | 1,927,640 | 2,066,753 | 1,927,640 | 1,790,573 | ||||||
HECO | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 1,728,325 | 1,682,144 | 1,728,325 | 1,682,144 | 1,593,564 | ||||||
Net income for common stock | 142,317 | 135,714 | 137,641 | ||||||||
Other comprehensive income (loss), net of tax benefits | (1,247) | 880 | (563) | ||||||||
Issuance of common stock, net of expenses | 23,991 | (8) | 39,994 | ||||||||
Common stock dividends | (93,599) | (90,405) | (88,492) | ||||||||
Ending Balance | 1,799,787 | 1,728,325 | 1,799,787 | 1,728,325 | 1,682,144 | ||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 292,702 | 281,846 | 292,702 | 281,846 | 274,802 | ||||||
Net income for common stock | 21,255 | 20,755 | 18,689 | ||||||||
Other comprehensive income (loss), net of tax benefits | (154) | 122 | (18) | ||||||||
Issuance of common stock, net of expenses | (5) | 0 | |||||||||
Common stock dividends | (22,507) | (10,021) | (11,627) | ||||||||
Ending Balance | 291,291 | 292,702 | 291,291 | 292,702 | 281,846 | ||||||
MECO | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 263,725 | 256,692 | 263,725 | 256,692 | 248,771 | ||||||
Net income for common stock | 21,136 | 22,165 | 22,275 | ||||||||
Other comprehensive income (loss), net of tax benefits | (46) | 44 | (5) | ||||||||
Issuance of common stock, net of expenses | 0 | (1) | 0 | ||||||||
Common stock dividends | (25,261) | (15,175) | (14,349) | ||||||||
Ending Balance | 259,554 | 263,725 | 259,554 | 263,725 | 256,692 | ||||||
Other subsidiaries | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 101 | 101 | 101 | 101 | 101 | ||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
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 | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | (556,528) | (538,639) | (556,528) | (538,639) | (523,674) | ||||||
Net income for common stock | (42,391) | (42,920) | (40,964) | ||||||||
Other comprehensive income (loss), net of tax benefits | 200 | (166) | 23 | ||||||||
Issuance of common stock, net of expenses | 5 | 1 | 0 | ||||||||
Common stock dividends | 47,768 | 25,196 | 25,976 | ||||||||
Ending Balance | (550,946) | (556,528) | (550,946) | (556,528) | (538,639) | ||||||
HECO Consolidated | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 1,728,325 | 1,682,144 | 1,728,325 | 1,682,144 | 1,593,564 | ||||||
Net income for common stock | 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | 32,993 | $ 43,006 | $ 32,841 | $ 26,874 | 142,317 | 135,714 | 137,641 |
Other comprehensive income (loss), net of tax benefits | (1,247) | 880 | (563) | ||||||||
Issuance of common stock, net of expenses | 23,991 | (8) | 39,994 | ||||||||
Common stock dividends | (93,599) | (90,405) | (88,492) | ||||||||
Ending Balance | $ 1,799,787 | $ 1,728,325 | $ 1,799,787 | $ 1,728,325 | $ 1,682,144 |
Electric utility segment - Co71
Electric utility segment - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||||||||||
Net income (loss) | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | $ 250,146 | $ 161,767 | $ 170,019 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 194,273 | 183,966 | 172,762 | ||||||||
Other amortization | 10,473 | 11,619 | 10,282 | ||||||||
Deferred income taxes | 47,118 | 41,432 | 104,225 | ||||||||
Allowance for equity funds used during construction | (8,325) | (6,928) | (6,771) | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 | ||||||||
Increase in regulatory assets | (18,273) | (24,182) | (17,000) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 1,587 | 852 | 22,251 | ||||||||
Net cash provided by operating activities | 495,254 | 355,880 | 325,420 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (330,043) | (363,804) | (364,826) | ||||||||
Contributions in aid of construction | 30,100 | 40,239 | 41,806 | ||||||||
Other | 856 | 7,940 | 1,125 | ||||||||
Net cash used in investing activities | (736,465) | (705,724) | (592,449) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (117,274) | (131,765) | (126,458) | ||||||||
Proceeds from issuance of common stock | 13,220 | 104,435 | 26,898 | ||||||||
Proceeds from issuance of long-term debt | 115,000 | 80,000 | 125,000 | ||||||||
Repayment of long-term debt | (75,000) | 0 | (111,400) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (103,063) | (15,909) | 13,490 | ||||||||
Other | (219) | (833) | (456) | ||||||||
Net cash used in financing activities | 219,185 | 474,780 | 222,535 | ||||||||
Net increase (decrease) in cash and equivalents | (22,026) | 124,936 | (44,494) | ||||||||
HECO | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 143,397 | 136,794 | 138,721 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (42,491) | (43,020) | (41,064) | ||||||||
Common stock dividends received from subsidiaries | 47,843 | 25,296 | 26,076 | ||||||||
Depreciation of property, plant and equipment | 126,086 | 117,682 | 109,204 | ||||||||
Other amortization | 2,979 | 4,678 | 4,535 | ||||||||
Impairment of utility assets | 4,573 | 1,866 | |||||||||
Deferred income taxes | 54,721 | 53,338 | 56,901 | ||||||||
Change in tax credits, net | 177 | 4,284 | 4,998 | ||||||||
Allowance for equity funds used during construction | (6,659) | (5,641) | (6,085) | ||||||||
Change in cash overdraft | 0 | ||||||||||
Other | (2,694) | 4,403 | 758 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 10,175 | 15,652 | 16,213 | ||||||||
Decrease (increase) in accrued unbilled revenues | (5,741) | 29,733 | 4,680 | ||||||||
Decrease in fuel oil stock | 2,216 | 25,060 | 25,098 | ||||||||
Decrease (increase) in materials and supplies | 993 | 2,233 | 2,357 | ||||||||
Increase in regulatory assets | (16,161) | (20,356) | (14,620) | ||||||||
Increase (decrease) in accounts payable | (10,247) | (42,751) | (56,044) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 2,933 | (50,382) | (4,166) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 599 | 870 | (562) | ||||||||
Changes in other assets and liabilities | (11,682) | (24,197) | (50,180) | ||||||||
Net cash provided by operating activities | 296,444 | 238,249 | 218,686 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (236,425) | (267,621) | (237,970) | ||||||||
Contributions in aid of construction | 23,611 | 35,955 | 30,021 | ||||||||
Advances from (to) affiliates | 0 | 16,100 | (9,261) | ||||||||
Other | 1,932 | 924 | 604 | ||||||||
Net cash used in investing activities | (210,882) | (214,642) | (216,606) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (93,599) | (90,405) | (88,492) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080) | (1,080) | (1,080) | ||||||||
Proceeds from issuance of common stock | 24,000 | 40,000 | |||||||||
Proceeds from issuance of long-term debt | 40,000 | 50,000 | |||||||||
Repayment 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 | (9,500) | 23,000 | (1,000) | ||||||||
Other | (276) | (1,257) | (337) | ||||||||
Net cash used in financing activities | (40,455) | (19,742) | (50,909) | ||||||||
Net increase (decrease) in cash and equivalents | 45,107 | 3,865 | (48,829) | ||||||||
Cash and cash equivalents, beginning of period | 16,281 | 12,416 | 16,281 | 12,416 | 61,245 | ||||||
Cash and cash equivalents, end of period | 61,388 | 16,281 | 61,388 | 16,281 | 12,416 | ||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 21,789 | 21,289 | 19,223 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 37,797 | 37,250 | 35,904 | ||||||||
Other amortization | 1,817 | 2,124 | 2,926 | ||||||||
Impairment of utility assets | 724 | ||||||||||
Deferred income taxes | 7,027 | 8,295 | 12,083 | ||||||||
Change in tax credits, net | 60 | 527 | 680 | ||||||||
Allowance for equity funds used during construction | (765) | (604) | (472) | ||||||||
Change in cash overdraft | 0 | ||||||||||
Other | (810) | (2,476) | |||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | (718) | 3,420 | 7,150 | ||||||||
Decrease (increase) in accrued unbilled revenues | (1,033) | 4,593 | 1,174 | ||||||||
Decrease in fuel oil stock | 81 | 5,490 | 378 | ||||||||
Decrease (increase) in materials and supplies | (515) | (201) | 219 | ||||||||
Increase in regulatory assets | (1,243) | (3,930) | (3,357) | ||||||||
Increase (decrease) in accounts payable | 768 | (6,425) | (6,645) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 2,645 | (6,166) | (3,251) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 53 | (161) | 0 | ||||||||
Changes in other assets and liabilities | (78) | (3,545) | (12,907) | ||||||||
Net cash provided by operating activities | 66,875 | 60,204 | 53,105 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (51,344) | (48,645) | (49,895) | ||||||||
Contributions in aid of construction | 3,412 | 2,160 | 7,695 | ||||||||
Advances from (to) affiliates | 12,000 | (15,500) | 1,000 | ||||||||
Other | 175 | 132 | 492 | ||||||||
Net cash used in investing activities | (35,757) | (61,853) | (40,708) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (22,507) | (10,021) | (11,627) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (534) | (534) | (534) | ||||||||
Proceeds from issuance of common stock | 0 | ||||||||||
Proceeds from issuance of long-term debt | 0 | 25,000 | |||||||||
Repayment of long-term debt | (11,400) | ||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | (10,500) | 10,500 | ||||||||
Other | (10) | (226) | (50) | ||||||||
Net cash used in financing activities | (23,051) | 3,719 | (13,111) | ||||||||
Net increase (decrease) in cash and equivalents | 8,067 | 2,070 | (714) | ||||||||
Cash and cash equivalents, beginning of period | 2,682 | 612 | 2,682 | 612 | 1,326 | ||||||
Cash and cash equivalents, end of period | 10,749 | 2,682 | 10,749 | 2,682 | 612 | ||||||
MECO | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 21,517 | 22,546 | 22,656 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 23,178 | 22,448 | 21,279 | ||||||||
Other amortization | 2,139 | 2,137 | 2,436 | ||||||||
Impairment of utility assets | 724 | ||||||||||
Deferred income taxes | 12,661 | 13,707 | 13,963 | ||||||||
Change in tax credits, net | (6) | 33 | 384 | ||||||||
Allowance for equity funds used during construction | (901) | (683) | (214) | ||||||||
Change in cash overdraft | (1,038) | ||||||||||
Other | (427) | (255) | |||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 1,776 | 4,617 | 3,483 | ||||||||
Decrease (increase) in accrued unbilled revenues | (410) | 5,767 | 896 | ||||||||
Decrease in fuel oil stock | 2,489 | 4,280 | 2,565 | ||||||||
Decrease (increase) in materials and supplies | 272 | 789 | (2,648) | ||||||||
Increase in regulatory assets | (869) | 104 | 977 | ||||||||
Increase (decrease) in accounts payable | (1,135) | (5,379) | (2,838) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (3,478) | (6,548) | 3,381 | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (168) | 416 | (399) | ||||||||
Changes in other assets and liabilities | (2,272) | (4,554) | (3,703) | ||||||||
Net cash provided by operating activities | 54,366 | 60,149 | 61,180 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (32,668) | (33,895) | (48,814) | ||||||||
Contributions in aid of construction | 3,077 | 2,124 | 4,090 | ||||||||
Advances from (to) affiliates | (2,500) | (7,500) | 0 | ||||||||
Other | 31 | 84 | 68 | ||||||||
Net cash used in investing activities | (32,060) | (39,187) | (44,656) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (25,261) | (15,175) | (14,349) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (381) | (381) | (381) | ||||||||
Proceeds from issuance of common stock | 0 | 0 | |||||||||
Proceeds from issuance of long-term debt | 0 | 5,000 | |||||||||
Repayment 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 | 0 | (5,600) | (1,239) | ||||||||
Other | (1) | (54) | (75) | ||||||||
Net cash used in financing activities | (25,643) | (16,210) | (16,044) | ||||||||
Net increase (decrease) in cash and equivalents | (3,337) | 4,752 | 480 | ||||||||
Cash and cash equivalents, beginning of period | 5,385 | 633 | 5,385 | 633 | 153 | ||||||
Cash and cash equivalents, end of period | 2,048 | 5,385 | 2,048 | 5,385 | 633 | ||||||
Other subsidiaries | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities | |||||||||||
Changes in other assets and liabilities | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 0 | 0 | 0 | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of common stock | 0 | ||||||||||
Net increase (decrease) in cash and equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents, beginning of period | 101 | 101 | 101 | 101 | 101 | ||||||
Cash and cash equivalents, end of period | 101 | 101 | 101 | 101 | 101 | ||||||
Consolidating adjustments | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | (42,391) | (42,920) | (40,964) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 42,391 | 42,920 | 40,964 | ||||||||
Common stock dividends received from subsidiaries | (47,768) | (25,196) | (25,976) | ||||||||
Deferred income taxes | (23) | 286 | |||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | (2,682) | 38 | (103) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 23 | ||||||||||
Changes in other assets and liabilities | 2,682 | (324) | 103 | ||||||||
Net cash provided by operating activities | (47,768) | (25,196) | (25,976) | ||||||||
Cash flows from investing activities | |||||||||||
Advances from (to) affiliates | (9,500) | 6,900 | 8,261 | ||||||||
Other | 0 | 0 | |||||||||
Net cash used in investing activities | (9,500) | 6,900 | 8,261 | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | 47,768 | 25,196 | 25,976 | ||||||||
Proceeds from issuance of common stock | 0 | 0 | |||||||||
Proceeds from issuance of long-term debt | 0 | 0 | |||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 9,500 | (6,900) | (8,261) | ||||||||
Net cash used in financing activities | 57,268 | 18,296 | 17,715 | ||||||||
HECO Consolidated | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 34,618 | $ 47,472 | $ 36,356 | 25,866 | 33,492 | $ 43,504 | $ 33,340 | 27,373 | 144,312 | 137,709 | 139,636 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (100) | (100) | (100) | ||||||||
Common stock dividends received from subsidiaries | 75 | 100 | 100 | ||||||||
Depreciation of property, plant and equipment | 187,061 | 177,380 | 166,387 | ||||||||
Other amortization | 6,935 | 8,939 | 9,897 | ||||||||
Impairment of utility assets | 6,021 | 1,866 | |||||||||
Deferred income taxes | 74,386 | 75,626 | 82,947 | ||||||||
Change in tax credits, net | 231 | 4,844 | 6,062 | ||||||||
Allowance for equity funds used during construction | (8,325) | (6,928) | (6,771) | ||||||||
Change in cash overdraft | 0 | 0 | (1,038) | ||||||||
Other | (3,931) | 1,672 | 758 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 8,551 | 23,727 | 26,743 | ||||||||
Decrease (increase) in accrued unbilled revenues | (7,184) | 40,093 | 6,750 | ||||||||
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 | ||||||||
Decrease (increase) in materials and supplies | 750 | 2,821 | (72) | ||||||||
Increase in regulatory assets | (18,273) | (24,182) | (17,000) | ||||||||
Increase (decrease) in accounts payable | (10,614) | (54,555) | (65,527) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 2,123 | (63,096) | (4,036) | ||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 484 | 1,125 | (961) | ||||||||
Changes in other assets and liabilities | (11,350) | (32,620) | (66,687) | ||||||||
Net cash provided by operating activities | 369,917 | 333,406 | 306,995 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (320,437) | (350,161) | (336,679) | ||||||||
Contributions in aid of construction | 30,100 | 40,239 | 41,806 | ||||||||
Advances from (to) affiliates | 0 | ||||||||||
Other | 2,138 | 1,140 | 1,164 | ||||||||
Net cash used in investing activities | (288,199) | (308,782) | (293,709) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (93,599) | (90,405) | (88,492) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) | ||||||||
Proceeds from issuance of common stock | 24,000 | 0 | 40,000 | ||||||||
Proceeds from issuance of long-term debt | 40,000 | 80,000 | 0 | ||||||||
Repayment of long-term debt | 0 | 0 | (11,400) | ||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | |||||||||
Other | (287) | (1,537) | (462) | ||||||||
Net cash used in financing activities | (31,881) | (13,937) | (62,349) | ||||||||
Net increase (decrease) in cash and equivalents | 49,837 | 10,687 | (49,063) | ||||||||
Cash and cash equivalents, beginning of period | $ 24,449 | $ 13,762 | 24,449 | 13,762 | 62,825 | ||||||
Cash and cash equivalents, end of period | $ 74,286 | $ 24,449 | $ 74,286 | $ 24,449 | $ 13,762 |
Bank segment (HEI only) - State
Bank segment (HEI only) - Statements of Income Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest expense | |||||||||||
Interest on deposit liabilities | $ 7,167 | $ 5,348 | $ 5,077 | ||||||||
Total interest expense | 88,558 | 88,476 | 87,160 | ||||||||
Provision for loan losses | 16,763 | 6,275 | 6,126 | ||||||||
Noninterest expense | |||||||||||
Income before income taxes | 373,841 | 254,788 | 265,598 | ||||||||
Income taxes | 123,695 | 93,021 | 95,579 | ||||||||
Net income | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | 250,146 | 161,767 | 170,019 |
American Savings Bank (ASB) | |||||||||||
Interest and dividend income | |||||||||||
Interest and fees on loans | 199,774 | 184,782 | 179,341 | ||||||||
Interest and dividends on investment securities | 19,184 | 15,120 | 11,945 | ||||||||
Total interest and dividend income | 218,958 | 199,902 | 191,286 | ||||||||
Interest expense | |||||||||||
Interest on deposit liabilities | 7,167 | 5,348 | 5,077 | ||||||||
Interest on other borrowings | 5,588 | 5,978 | 5,731 | ||||||||
Total interest expense | 12,755 | 11,326 | 10,808 | ||||||||
Net interest income | 206,203 | 188,576 | 180,478 | ||||||||
Provision for loan losses | 16,763 | 6,275 | 6,126 | ||||||||
Net interest income after provision for loan losses | 189,440 | 182,301 | 174,352 | ||||||||
Noninterest income | |||||||||||
Fees from other financial services | 22,384 | 22,211 | 21,747 | ||||||||
Fee income on deposit liabilities | 21,759 | 22,368 | 19,249 | ||||||||
Fee income on other financial products | 8,707 | 8,094 | 8,131 | ||||||||
Bank-owned life insurance | 4,637 | 4,078 | 3,949 | ||||||||
Mortgage banking income | 6,625 | 6,330 | 2,913 | ||||||||
Gain on sale of investment securities | 598 | 0 | 2,847 | ||||||||
Other income, net | 2,256 | 4,750 | 2,375 | ||||||||
Total noninterest income | 66,966 | 67,831 | 61,211 | ||||||||
Noninterest expense | |||||||||||
Compensation and employee benefits | 90,117 | 90,518 | 79,885 | ||||||||
Occupancy | 16,321 | 16,365 | 17,197 | ||||||||
Data processing | 13,030 | 12,103 | 11,690 | ||||||||
Services | 11,054 | 10,204 | 10,269 | ||||||||
Equipment | 6,938 | 6,577 | 6,564 | ||||||||
Office supplies, printing and postage | 6,075 | 5,749 | 6,089 | ||||||||
Marketing | 3,489 | 3,463 | 3,999 | ||||||||
FDIC insurance | 3,543 | 3,274 | 3,261 | ||||||||
Other expense | 18,487 | 18,067 | 17,314 | ||||||||
Total noninterest expense | 169,054 | 166,320 | 156,268 | ||||||||
Income before income taxes | 87,352 | 83,812 | 79,295 | ||||||||
Income taxes | 30,073 | 29,082 | 27,994 | ||||||||
Net income | $ 57,279 | $ 54,730 | $ 51,301 |
Bank segment (HEI only) - Sta73
Bank segment (HEI only) - Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | $ 250,146 | $ 161,767 | $ 170,019 |
Net unrealized gains (losses) on available-for sale investment securities: | |||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $3,763, $1,541 and $(3,856) for 2016, 2015 and 2014, respectively | (5,699) | (2,334) | 5,840 | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $238, nil and $1,132 for 2016, 2015 and 2014, respectively | (360) | 0 | (1,715) | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively | (43,510) | 5,889 | (234,166) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively | 14,518 | 22,465 | 11,344 | ||||||||
Other comprehensive income (loss), net of taxes | (6,867) | 1,116 | (10,628) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 241,389 | 160,993 | 157,501 | ||||||||
American Savings Bank (ASB) | |||||||||||
Net income | 57,279 | 54,730 | 51,301 | ||||||||
Net unrealized gains (losses) on available-for sale investment securities: | |||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $3,763, $1,541 and $(3,856) for 2016, 2015 and 2014, respectively | (5,699) | (2,334) | 5,840 | ||||||||
Less: reclassification adjustment for net realized gains included in net income, net of taxes of $238, nil and $1,132 for 2016, 2015 and 2014, respectively | (360) | 0 | (1,715) | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively | 0 | 90 | (9,336) | ||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively | 857 | 1,531 | 850 | ||||||||
Other comprehensive income (loss), net of taxes | (5,202) | (713) | (4,361) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 52,077 | $ 54,017 | $ 46,940 |
Bank segment (HEI only) - Sta74
Bank segment (HEI only) - Statements of Comprehensive Income - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net unrealized gains (losses) on securities arising during the period, taxes | $ (3,763) | $ (1,541) | $ 3,856 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 238 | 0 | 1,132 |
Net gains (losses) arising during the period, tax benefits | 27,703 | (3,753) | 149,364 |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | 9,267 | 14,344 | 7,245 |
American Savings Bank (ASB) | |||
Net unrealized gains (losses) on securities arising during the period, taxes | (3,763) | (1,541) | 3,856 |
Less: reclassification adjustment for net realized gains included in net income, taxes | 238 | 0 | 1,132 |
Net gains (losses) arising during the period, tax benefits | 0 | 59 | (6,164) |
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | $ (566) | $ (1,011) | $ (561) |
Bank segment (HEI only) - Balan
Bank segment (HEI only) - Balance Sheets Data (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 278,452 | $ 300,478 | $ 175,542 | $ 220,036 |
Available-for-sale investment securities, at fair value | 1,105,182 | 820,648 | ||
Stock in Federal Home Loan Bank, at cost | 11,218 | 10,678 | ||
Allowance for loan losses | (55,533) | (50,038) | ||
Total loans, net | 4,683,160 | 4,565,781 | ||
Loans held for sale, at lower of cost or fair value | 18,817 | 4,631 | ||
Other | 447,621 | 480,457 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 12,425,506 | 11,782,018 | 11,177,143 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other | 473,512 | 471,828 | ||
Total liabilities | 10,324,460 | 9,820,085 | ||
Commitments and contingencies | ||||
Retained earnings | 438,972 | 324,766 | ||
Net unrealized losses on securities | (7,931) | (1,872) | ||
Accumulated other comprehensive loss, net of tax benefits | (33,129) | (26,262) | ||
Total shareholders’ equity | 2,066,753 | 1,927,640 | $ 1,790,573 | $ 1,726,406 |
Total capitalization and liabilities | 12,425,506 | 11,782,018 | ||
Other assets | ||||
Premises and equipment, net | 4,603,465 | 4,377,658 | ||
Total other assets | 447,621 | 480,457 | ||
Other liabilities | ||||
Total other liabilities | 473,512 | 471,828 | ||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and cash equivalents | 137,083 | 127,201 | ||
Interest-bearing deposits | 52,128 | 93,680 | ||
Restricted cash | 1,764 | 0 | ||
Available-for-sale investment securities, at fair value | 1,105,182 | 820,648 | ||
Stock in Federal Home Loan Bank, at cost | 11,218 | 10,678 | ||
Loans receivable held for investment | 4,738,693 | 4,615,819 | ||
Allowance for loan losses | (55,533) | (50,038) | ||
Total loans, net | 4,683,160 | 4,565,781 | ||
Loans held for sale, at lower of cost or fair value | 18,817 | 4,631 | ||
Other | 329,815 | 309,946 | ||
Goodwill | 82,190 | 82,190 | ||
Total assets | 6,421,357 | 6,014,755 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Deposit liabilities-noninterest-bearing | 1,639,051 | 1,520,374 | ||
Deposit liabilities-interest-bearing | 3,909,878 | 3,504,880 | ||
Other borrowings | 192,618 | 328,582 | ||
Other | 101,635 | 101,029 | ||
Total liabilities | 5,843,182 | 5,454,865 | ||
Commitments and contingencies | ||||
Common stock | 1 | 1 | ||
Additional paid in capital | 342,704 | 340,496 | ||
Retained earnings | 257,943 | 236,664 | ||
Net unrealized losses on securities | (7,931) | (1,872) | ||
Retirement benefit plans | (14,542) | (15,399) | ||
Accumulated other comprehensive loss, net of tax benefits | (22,473) | (17,271) | ||
Total shareholders’ equity | 578,175 | 559,890 | ||
Total capitalization and liabilities | 6,421,357 | 6,014,755 | ||
Other assets | ||||
Bank-owned life insurance | 143,197 | 138,139 | ||
Premises and equipment, net | 90,570 | 88,077 | ||
Prepaid expenses | 3,348 | 3,550 | ||
Accrued interest receivable | 16,824 | 15,192 | ||
Mortgage servicing rights | 9,373 | 8,884 | ||
Low-income housing equity investments | 47,081 | 37,793 | ||
Real estate acquired in settlement of loans, net | 1,189 | 1,030 | ||
Other | 18,233 | 17,281 | ||
Total other assets | 329,815 | 309,946 | ||
Other liabilities | ||||
Accrued expenses | 36,754 | 30,705 | ||
Federal and state income taxes payable | 4,728 | 13,448 | ||
Cashier's checks | 24,156 | 21,768 | ||
Advance payments by borrowers | 10,335 | 10,311 | ||
Other | 25,662 | 24,797 | ||
Total other liabilities | $ 101,635 | $ 101,029 |
Bank segment (HEI only) - Avail
Bank segment (HEI only) - Available For Sale Investment Securities (Details) $ in Thousands | Dec. 31, 2016USD ($)issue | Dec. 31, 2015USD ($)issue |
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | $ 1,118,350 | $ 823,756 |
Gross unrealized gains | 2,662 | 4,589 |
Gross unrealized losses | (15,830) | (7,697) |
Available-for-sale investment securities | $ 1,105,182 | $ 820,648 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 106 | 51 |
Fair value, less than 12 months | $ 833,130 | $ 388,838 |
Gross unrealized losses, less than 12 months | $ (14,153) | $ (3,732) |
Number of issues, more than 12 months | issue | 14 | 28 |
Fair value, 12 months or longer | $ 50,970 | $ 143,195 |
Gross unrealized losses, 12 months or longer | (1,677) | (3,965) |
U.S. Treasury and federal agency obligations | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 193,515 | 213,234 |
Gross unrealized gains | 920 | 1,025 |
Gross unrealized losses | (2,154) | (1,300) |
Available-for-sale investment securities | $ 192,281 | $ 212,959 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 18 | 13 |
Fair value, less than 12 months | $ 123,475 | $ 83,053 |
Gross unrealized losses, less than 12 months | $ (2,010) | $ (866) |
Number of issues, more than 12 months | issue | 1 | 3 |
Fair value, 12 months or longer | $ 3,485 | $ 17,378 |
Gross unrealized losses, 12 months or longer | (144) | (434) |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 909,408 | 610,522 |
Gross unrealized gains | 1,742 | 3,564 |
Gross unrealized losses | (13,676) | (6,397) |
Available-for-sale investment securities | $ 897,474 | $ 607,689 |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 88 | 38 |
Fair value, less than 12 months | $ 709,655 | $ 305,785 |
Gross unrealized losses, less than 12 months | $ (12,143) | $ (2,866) |
Number of issues, more than 12 months | issue | 13 | 25 |
Fair value, 12 months or longer | $ 47,485 | $ 125,817 |
Gross unrealized losses, 12 months or longer | (1,533) | $ (3,531) |
Mortgage revenue bond | ||
Available-for-sale securities | ||
Total available-for-sale securities, amortized cost | 15,427 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Available-for-sale investment securities | $ 15,427 | |
Available-for-sale Securities, Continuous Unrealized Loss Position | ||
Number of issues, less than 12 months | issue | 0 | |
Fair value, less than 12 months | $ 0 | |
Gross unrealized losses, less than 12 months | $ 0 | |
Number of issues, more than 12 months | issue | 0 | |
Fair value, 12 months or longer | $ 0 | |
Gross unrealized losses, 12 months or longer | $ 0 |
Bank segment (HEI only) - Inves
Bank segment (HEI only) - Investment Securities (Details) | Jun. 01, 2015bank | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Amortized Cost | ||||
Due in one year or less | $ 9,979,000 | |||
Due after one year through five years | 77,179,000 | |||
Due after five years through ten years | 81,411,000 | |||
Due after ten years | 40,373,000 | |||
Total amortized cost | 208,942,000 | |||
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 909,408,000 | |||
Total available-for-sale securities, amortized cost | 1,118,350,000 | $ 823,756,000 | ||
Fair value | ||||
Due in one year or less | 10,001,000 | |||
Due after one year through five years | 77,126,000 | |||
Due after five years through ten years | 81,083,000 | |||
Due after ten years | 39,498,000 | |||
Total fair value | 207,708,000 | |||
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 897,474,000 | |||
Estimated fair value | 1,105,182,000 | 820,648,000 | ||
Gains (losses) from sales of available-for-sale investments | ||||
Proceeds | 16,423,000 | 0 | $ 79,564,000 | |
Available-for-sale securities pledged at carrying value | 277,100,000 | 100,500,000 | ||
Available-for-sale securities, pledged at carrying value as collateral for securities sold under agreements to repurchase | 114,900,000 | 260,500,000 | ||
Interest income from taxable and non-taxable investment securities | ||||
Taxable | 19,166,000 | 15,120,000 | 11,666,000 | |
Non-taxable | 18,000 | 0 | 279,000 | |
Total | 19,184,000 | 15,120,000 | 11,945,000 | |
Number of banks merging | bank | 2 | |||
Redemption of stock from Federal Home Loan Bank | 7,233,000 | 60,223,000 | 23,244,000 | |
FHLB Seattle | ||||
Interest income from taxable and non-taxable investment securities | ||||
Cost method investments | 11,200,000 | 10,700,000 | ||
Redemption of stock from Federal Home Loan Bank | 0 | 58,600,000 | ||
Mortgage-related securities - FNMA, FHLMC and GNMA | ||||
Gains (losses) from sales of available-for-sale investments | ||||
Proceeds | 16,400,000 | 0 | 79,600,000 | |
Gross gains | 600,000 | 0 | 2,800,000 | |
Gross losses | $ 0 | $ 0 | $ 0 |
Bank segment (HEI only) - Loans
Bank segment (HEI only) - Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loans receivable | ||
Loans Receivable | $ 4,743,619 | $ 4,622,068 |
Less: Deferred fees and discounts | (4,926) | (6,249) |
Allowance for loan losses | (55,533) | (50,038) |
Total loans, net | 4,683,160 | 4,565,781 |
Real estate loans | ||
Loans receivable | ||
Loans Receivable | 3,873,346 | 3,739,634 |
Residential 1-4 family | ||
Loans receivable | ||
Loans Receivable | 2,048,051 | 2,069,665 |
Commercial real estate | ||
Loans receivable | ||
Loans Receivable | 800,395 | 690,561 |
Home equity line of credit | ||
Loans receivable | ||
Loans Receivable | 863,163 | 846,294 |
Residential land | ||
Loans receivable | ||
Loans Receivable | 18,889 | 18,229 |
Commercial construction | ||
Loans receivable | ||
Loans Receivable | 126,768 | 100,796 |
Residential construction | ||
Loans receivable | ||
Loans Receivable | 16,080 | 14,089 |
Commercial loans | ||
Loans receivable | ||
Loans Receivable | 692,051 | 758,659 |
Consumer loans | ||
Loans receivable | ||
Loans Receivable | $ 178,222 | $ 123,775 |
Bank segment (HEI only) - Loa79
Bank segment (HEI only) - Loans Receivable, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Bank Segment Disclosure [Abstract] | |||
Percentage of benchmark loan to appraisal ratio in excess of which mortgage insurance is required | 80.00% | ||
Real estate loans for investors | $ 1,200 | $ 1,500 | $ 1,400 |
Loans pledged as collateral to secure advances from the FHLB of Seattle | 2,400 | 2,300 | |
Loans to directors, executive directors, affiliates and any related interest of such individuals | 22.9 | 27.8 | |
Lines of credit closed and repaid, net of new loans and lines of credit to executive directors | 4.9 | ||
Lines of credit closed and repaid | 4.9 | ||
Loan balances, related interests of individuals who are directors | $ 19 | $ 25.8 |
Bank segment (HEI only) - Allow
Bank segment (HEI only) - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | $ 50,038 | $ 45,618 |
Charge-offs | (14,245) | (6,426) |
Recoveries | 2,977 | 4,571 |
Provision | 16,763 | 6,275 |
Valuation allowance, balance at the end of the period | 55,533 | 50,038 |
Ending balance: individually evaluated for impairment | 4,083 | 6,320 |
Ending balance: collectively evaluated for impairment | 51,450 | 43,718 |
Financing Receivables: | ||
Total financing receivables | 4,743,619 | 4,622,068 |
Ending balance: individually evaluated for impairment | 51,759 | 53,685 |
Ending balance: collectively evaluated for impairment | 4,691,860 | 4,568,383 |
Residential 1-4 family | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 4,186 | 4,662 |
Charge-offs | (639) | (356) |
Recoveries | 421 | 226 |
Provision | (1,095) | (346) |
Valuation allowance, balance at the end of the period | 2,873 | 4,186 |
Ending balance: individually evaluated for impairment | 1,352 | 1,453 |
Ending balance: collectively evaluated for impairment | 1,521 | 2,733 |
Financing Receivables: | ||
Total financing receivables | 2,048,051 | 2,069,665 |
Ending balance: individually evaluated for impairment | 19,854 | 22,457 |
Ending balance: collectively evaluated for impairment | 2,028,197 | 2,047,208 |
Commercial real estate | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 11,342 | 8,954 |
Provision | 4,662 | 2,388 |
Valuation allowance, balance at the end of the period | 16,004 | 11,342 |
Ending balance: individually evaluated for impairment | 80 | 0 |
Ending balance: collectively evaluated for impairment | 15,924 | 11,342 |
Financing Receivables: | ||
Total financing receivables | 800,395 | 690,561 |
Ending balance: individually evaluated for impairment | 1,569 | 1,188 |
Ending balance: collectively evaluated for impairment | 798,826 | 689,373 |
Home equity line of credit | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 7,260 | 6,982 |
Charge-offs | (112) | (205) |
Recoveries | 59 | 80 |
Provision | (2,168) | 403 |
Valuation allowance, balance at the end of the period | 5,039 | 7,260 |
Ending balance: individually evaluated for impairment | 215 | 442 |
Ending balance: collectively evaluated for impairment | 4,824 | 6,818 |
Financing Receivables: | ||
Total financing receivables | 863,163 | 846,294 |
Ending balance: individually evaluated for impairment | 6,158 | 3,225 |
Ending balance: collectively evaluated for impairment | 857,005 | 843,069 |
Residential land | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 1,671 | 1,875 |
Charge-offs | (138) | 0 |
Recoveries | 461 | 507 |
Provision | (256) | (711) |
Valuation allowance, balance at the end of the period | 1,738 | 1,671 |
Ending balance: individually evaluated for impairment | 789 | 891 |
Ending balance: collectively evaluated for impairment | 949 | 780 |
Financing Receivables: | ||
Total financing receivables | 18,889 | 18,229 |
Ending balance: individually evaluated for impairment | 3,629 | 5,683 |
Ending balance: collectively evaluated for impairment | 15,260 | 12,546 |
Commercial construction | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 4,461 | 5,471 |
Provision | 1,988 | (1,010) |
Valuation allowance, balance at the end of the period | 6,449 | 4,461 |
Ending balance: collectively evaluated for impairment | 6,449 | 4,461 |
Financing Receivables: | ||
Total financing receivables | 126,768 | 100,796 |
Ending balance: collectively evaluated for impairment | 126,768 | 100,796 |
Residential construction | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 13 | 28 |
Provision | (1) | (15) |
Valuation allowance, balance at the end of the period | 12 | 13 |
Ending balance: collectively evaluated for impairment | 12 | 13 |
Financing Receivables: | ||
Total financing receivables | 16,080 | 14,089 |
Ending balance: collectively evaluated for impairment | 16,080 | 14,089 |
Commercial loans | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 17,208 | 14,017 |
Charge-offs | (5,943) | (1,074) |
Recoveries | 1,093 | 2,773 |
Provision | 4,260 | 1,492 |
Valuation allowance, balance at the end of the period | 16,618 | 17,208 |
Ending balance: individually evaluated for impairment | 1,641 | 3,527 |
Ending balance: collectively evaluated for impairment | 14,977 | 13,681 |
Financing Receivables: | ||
Total financing receivables | 692,051 | 758,659 |
Ending balance: individually evaluated for impairment | 20,539 | 21,119 |
Ending balance: collectively evaluated for impairment | 671,512 | 737,540 |
Consumer loans | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 3,897 | 3,629 |
Charge-offs | (7,413) | (4,791) |
Recoveries | 943 | 985 |
Provision | 9,373 | 4,074 |
Valuation allowance, balance at the end of the period | 6,800 | 3,897 |
Ending balance: individually evaluated for impairment | 6 | 7 |
Ending balance: collectively evaluated for impairment | 6,794 | 3,890 |
Financing Receivables: | ||
Total financing receivables | 178,222 | 123,775 |
Ending balance: individually evaluated for impairment | 10 | 13 |
Ending balance: collectively evaluated for impairment | 178,212 | 123,762 |
Unallocated | ||
Allowance for loan losses: | ||
Valuation allowance, balance at the beginning of the period | 0 | 0 |
Provision | 0 | |
Valuation allowance, balance at the end of the period | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 |
Bank segment (HEI only) - Chang
Bank segment (HEI only) - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | $ 50,038 | $ 45,618 | $ 40,116 |
Provision for loan losses | 16,763 | 6,275 | 6,126 |
Charge-offs | 11,268 | 1,855 | 624 |
Valuation allowance, balance at the end of the period | $ 55,533 | $ 50,038 | $ 45,618 |
Ratio of net charge-offs to average loans outstanding (as a percent) | 0.24% | 0.04% | 0.01% |
Real estate loans | |||
Allowance for loan losses: | |||
Charge-offs | $ (52) | $ (252) | $ (1,137) |
Other loans | |||
Allowance for loan losses: | |||
Charge-offs | $ 11,320 | $ 2,107 | $ 1,761 |
Bank segment (HEI only) - Credi
Bank segment (HEI only) - Credit Risk Profile by Internally Assigned Grade for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | $ 4,743,619 | $ 4,622,068 |
Loans, Excluding Consumer Loans | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 1,619,214 | 1,550,016 |
Loans, Excluding Consumer Loans | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 1,418,751 | 1,432,609 |
Loans, Excluding Consumer Loans | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 90,770 | 28,544 |
Loans, Excluding Consumer Loans | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 109,693 | 88,416 |
Loans, Excluding Consumer Loans | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 447 |
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 | 800,395 | 690,561 |
Commercial real estate | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 701,657 | 642,410 |
Commercial real estate | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 65,541 | 7,710 |
Commercial real estate | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 33,197 | 40,441 |
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 | 126,768 | 100,796 |
Commercial construction | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 102,955 | 86,991 |
Commercial construction | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 13,805 |
Commercial construction | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 23,813 | 0 |
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 | 692,051 | 758,659 |
Commercial loans | Pass | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 614,139 | 703,208 |
Commercial loans | Special mention | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 25,229 | 7,029 |
Commercial loans | Substandard | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 52,683 | 47,975 |
Commercial loans | Doubtful | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | 0 | 447 |
Commercial loans | Loss | ||
Credit risk profile by internally assigned grade for loans | ||
Total financing receivables | $ 0 | $ 0 |
Bank segment (HEI only) - Cre83
Bank segment (HEI only) - Credit Risk Profile Based on Payment Activity for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Credit risk profile based on payment activity for loans | ||
Total past due | $ 23,102 | $ 26,099 |
Current | 4,720,517 | 4,595,969 |
Total financing receivables | 4,743,619 | 4,622,068 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 11,310 | 19,759 |
Current | 2,036,741 | 2,049,906 |
Total financing receivables | 2,048,051 | 2,069,665 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,416 | 0 |
Current | 797,979 | 690,561 |
Total financing receivables | 800,395 | 690,561 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,986 | 2,079 |
Current | 860,177 | 844,215 |
Total financing receivables | 863,163 | 846,294 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 255 | 415 |
Current | 18,634 | 17,814 |
Total financing receivables | 18,889 | 18,229 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Current | 126,768 | 100,796 |
Total financing receivables | 126,768 | 100,796 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Current | 16,080 | 14,089 |
Total financing receivables | 16,080 | 14,089 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,226 | 1,226 |
Current | 689,825 | 757,433 |
Total financing receivables | 692,051 | 758,659 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 3,909 | 2,620 |
Current | 174,313 | 121,155 |
Total financing receivables | 178,222 | 123,775 |
Recorded Investment greater than 90 days and accruing | 0 | 0 |
30-59 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 11,504 | 7,371 |
30-59 days past due | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 5,467 | 4,967 |
30-59 days past due | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,416 | 0 |
30-59 days past due | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,263 | 896 |
30-59 days past due | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
30-59 days past due | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
30-59 days past due | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
30-59 days past due | Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 413 | 125 |
30-59 days past due | Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,945 | 1,383 |
60-89 days past due | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 4,230 | 4,811 |
60-89 days past due | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 2,338 | 3,289 |
60-89 days past due | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 381 | 706 |
60-89 days past due | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
60-89 days past due | Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 510 | 223 |
60-89 days past due | Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,001 | 593 |
Greater than 90 days | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 7,368 | 13,917 |
Greater than 90 days | Residential 1-4 family | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 3,505 | 11,503 |
Greater than 90 days | Commercial real estate | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Greater than 90 days | Home equity line of credit | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,342 | 477 |
Greater than 90 days | Residential land | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 255 | 415 |
Greater than 90 days | Commercial construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Greater than 90 days | Residential construction | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 0 | 0 |
Greater than 90 days | Commercial loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | 1,303 | 878 |
Greater than 90 days | Consumer loans | ||
Credit risk profile based on payment activity for loans | ||
Total past due | $ 963 | $ 644 |
Bank segment (HEI only) - Cre84
Bank segment (HEI only) - Credit Risk Profile Based on Aging Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $ 23,325 | $ 46,035 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 37,637 | 22,246 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 11,154 | 20,554 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 14,450 | 13,962 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 223 | 1,188 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 1,346 | 0 |
Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 3,080 | 2,254 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 4,934 | 2,467 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 878 | 970 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 2,751 | 4,713 |
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 | 6,708 | 20,174 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 14,146 | 1,104 |
Consumer loans | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 1,282 | 895 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | $ 10 | $ 0 |
Bank segment (HEI only) - Carry
Bank segment (HEI only) - Carrying Amount of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Recorded investment: | ||
With no related allowance recorded | $ 18,811 | $ 19,806 |
With an allowance recorded | 32,948 | 33,879 |
Recorded investment | 51,759 | 53,685 |
Unpaid principal balance: | ||
With no related allowance recorded | 23,200 | 22,934 |
With an allowance recorded | 33,205 | 34,696 |
Unpaid principal balance | 56,405 | 57,630 |
Related Allowance | 4,083 | 6,320 |
Average recorded investment: | ||
With no related allowance recorded | 22,579 | 19,651 |
With an allowance recorded | 36,398 | 31,732 |
Average recorded investment | 58,977 | 51,383 |
Interest income recognized: | ||
With no related allowance recorded | 783 | 704 |
With an allowance recorded | 1,271 | 1,140 |
Interest income recognized | 2,054 | 1,844 |
Residential 1-4 family | ||
Recorded investment: | ||
With no related allowance recorded | 9,571 | 10,596 |
With an allowance recorded | 10,283 | 11,861 |
Recorded investment | 19,854 | 22,457 |
Unpaid principal balance: | ||
With no related allowance recorded | 10,400 | 11,805 |
With an allowance recorded | 10,486 | 11,914 |
Unpaid principal balance | 20,886 | 23,719 |
Related Allowance | 1,352 | 1,453 |
Average recorded investment: | ||
With no related allowance recorded | 10,136 | 11,215 |
With an allowance recorded | 11,589 | 11,578 |
Average recorded investment | 21,725 | 22,793 |
Interest income recognized: | ||
With no related allowance recorded | 324 | 332 |
With an allowance recorded | 457 | 562 |
Interest income recognized | 781 | 894 |
Commercial real estate | ||
Recorded investment: | ||
With no related allowance recorded | 223 | 1,188 |
With an allowance recorded | 1,346 | 0 |
Recorded investment | 1,569 | 1,188 |
Unpaid principal balance: | ||
With no related allowance recorded | 228 | 1,436 |
With an allowance recorded | 1,346 | 0 |
Unpaid principal balance | 1,574 | 1,436 |
Related Allowance | 80 | 0 |
Average recorded investment: | ||
With no related allowance recorded | 1,124 | 370 |
With an allowance recorded | 1,962 | 1,699 |
Average recorded investment | 3,086 | 2,069 |
Interest income recognized: | ||
With no related allowance recorded | 0 | 74 |
With an allowance recorded | 15 | 0 |
Interest income recognized | 15 | 74 |
Home equity line of credit | ||
Recorded investment: | ||
With no related allowance recorded | 1,500 | 707 |
With an allowance recorded | 4,658 | 2,518 |
Recorded investment | 6,158 | 3,225 |
Unpaid principal balance: | ||
With no related allowance recorded | 1,900 | 948 |
With an allowance recorded | 4,712 | 2,579 |
Unpaid principal balance | 6,612 | 3,527 |
Related Allowance | 215 | 442 |
Average recorded investment: | ||
With no related allowance recorded | 1,105 | 484 |
With an allowance recorded | 3,765 | 1,597 |
Average recorded investment | 4,870 | 2,081 |
Interest income recognized: | ||
With no related allowance recorded | 23 | 4 |
With an allowance recorded | 137 | 49 |
Interest income recognized | 160 | 53 |
Residential land | ||
Recorded investment: | ||
With no related allowance recorded | 1,218 | 1,644 |
With an allowance recorded | 2,411 | 4,039 |
Recorded investment | 3,629 | 5,683 |
Unpaid principal balance: | ||
With no related allowance recorded | 1,803 | 2,412 |
With an allowance recorded | 2,411 | 4,117 |
Unpaid principal balance | 4,214 | 6,529 |
Related Allowance | 789 | 891 |
Average recorded investment: | ||
With no related allowance recorded | 1,518 | 2,397 |
With an allowance recorded | 2,964 | 4,337 |
Average recorded investment | 4,482 | 6,734 |
Interest income recognized: | ||
With no related allowance recorded | 66 | 137 |
With an allowance recorded | 206 | 318 |
Interest income recognized | 272 | 455 |
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 | 6,299 | 5,671 |
With an allowance recorded | 14,240 | 15,448 |
Recorded investment | 20,539 | 21,119 |
Unpaid principal balance: | ||
With no related allowance recorded | 8,869 | 6,333 |
With an allowance recorded | 14,240 | 16,073 |
Unpaid principal balance | 23,109 | 22,406 |
Related Allowance | 1,641 | 3,527 |
Average recorded investment: | ||
With no related allowance recorded | 8,694 | 5,185 |
With an allowance recorded | 16,106 | 12,507 |
Average recorded investment | 24,800 | 17,692 |
Interest income recognized: | ||
With no related allowance recorded | 370 | 157 |
With an allowance recorded | 456 | 211 |
Interest income recognized | 826 | 368 |
Consumer loans | ||
Recorded investment: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 10 | 13 |
Recorded investment | 10 | 13 |
Unpaid principal balance: | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 10 | 13 |
Unpaid principal balance | 10 | 13 |
Related Allowance | 6 | 7 |
Average recorded investment: | ||
With no related allowance recorded | 2 | 0 |
With an allowance recorded | 12 | 14 |
Average recorded investment | 14 | 14 |
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 N
Bank segment (HEI only) - TDR Narrative (Details) - Residential land | 12 Months Ended |
Dec. 31, 2016 | |
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
Bank segment (HEI only) - Loan Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | Dec. 31, 2014 | |
Loan modifications determined to be troubled debt restructurings | |||
Commitments to Borrowers whose Loan Terms are Impaired or Modified under Troubled Debt Restructuring | $ 2,600 | ||
Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 67 | 68 | |
Pre-modification outstanding recorded investment | $ 26,937 | $ 10,020 | |
Post-modification outstanding recorded investment | 27,052 | 10,094 | |
Net increase in ALLL | $ 1,756 | $ 943 | |
Minimum period of payment default of loans determined to be TDRs | 90 days | 90 days | 90 days |
Troubled debt restructurings real estate loans | Residential 1-4 family | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 14 | 19 | |
Pre-modification outstanding recorded investment | $ 3,131 | $ 3,594 | |
Post-modification outstanding recorded investment | 3,245 | 3,668 | |
Net increase in ALLL | $ 337 | $ 87 | |
Troubled debt restructurings real estate loans | Commercial real estate | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 1 | |
Pre-modification outstanding recorded investment | $ 0 | $ 1,500 | |
Post-modification outstanding recorded investment | 0 | 1,500 | |
Net increase in ALLL | $ 0 | $ 0 | |
Troubled debt restructurings real estate loans | Home equity line of credit | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 36 | 39 | |
Pre-modification outstanding recorded investment | $ 3,337 | $ 2,441 | |
Post-modification outstanding recorded investment | 3,337 | 2,441 | |
Net increase in ALLL | $ 554 | $ 370 | |
Troubled debt restructurings real estate loans | Residential land | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 2 | 1 | |
Pre-modification outstanding recorded investment | $ 203 | $ 218 | |
Post-modification outstanding recorded investment | 204 | 218 | |
Net increase in ALLL | $ 0 | $ 0 | |
Troubled debt restructurings real estate loans | Commercial construction | |||
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 | |
Troubled debt restructurings real estate loans | Residential construction | |||
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 | |
Troubled debt restructurings real estate loans | Commercial loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 15 | 8 | |
Pre-modification outstanding recorded investment | $ 20,266 | $ 2,267 | |
Post-modification outstanding recorded investment | 20,266 | 2,267 | |
Net increase in ALLL | $ 865 | $ 486 | |
Troubled debt restructurings real estate loans | Consumer 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 | |
Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 2 | 2 | |
Recorded investment | $ 263 | $ 1,062 | |
Troubled debt restructurings that subsequently defaulted | Residential 1-4 family | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 0 | |
Recorded investment | $ 239 | $ 0 | |
Troubled debt restructurings that subsequently defaulted | Commercial real estate | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 | |
Troubled debt restructurings that subsequently defaulted | Home equity line of credit | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 1 | |
Recorded investment | $ 0 | $ 6 | |
Troubled debt restructurings that subsequently defaulted | Residential land | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 | |
Troubled debt restructurings that subsequently defaulted | Commercial construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 | |
Troubled debt restructurings that subsequently defaulted | Residential construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 | |
Troubled debt restructurings that subsequently defaulted | Commercial loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 1 | |
Recorded investment | $ 24 | $ 1,056 | |
Troubled debt restructurings that subsequently defaulted | Consumer loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 |
Bank segment (HEI only) - Mortg
Bank segment (HEI only) - Mortgage Servicing Rights, Narrative (Details) - American Savings Bank (ASB) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans receivable | |||
Repurchased mortgage loans | $ 0 | $ 0 | $ 500,000 |
Mortgage servicing fees | $ 2,900,000 | 3,500,000 | 3,500,000 |
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 | $ 236,100,000 | 275,300,000 | 155,000,000 |
Gain on sale of mortgage loans | $ 6,600,000 | $ 6,300,000 | $ 2,900,000 |
Bank segment (HEI only) - Mor89
Bank segment (HEI only) - Mortgage Servicing Rights (Details) - American Savings Bank (ASB) - Allowance for mortgage-servicing assets – bank - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans receivable | ||||
Gross carrying amount | $ 17,271 | $ 14,531 | ||
Accumulated amortization | (7,898) | (5,647) | ||
Valuation allowance | 0 | 0 | $ (209) | $ (251) |
Net carrying amount | $ 9,373 | $ 8,884 | $ 11,540 |
Bank segment (HEI only) - Mor90
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | $ 8,884 | ||
Ending balance | 9,373 | $ 8,884 | |
Allowance for mortgage-servicing assets – bank | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 8,884 | 11,749 | $ 11,938 |
Amount capitalized | 2,740 | 3,123 | 1,637 |
Amortization | (2,251) | (2,682) | (1,731) |
Sale of mortgage servicing rights | 0 | (3,302) | 0 |
Other-than-temporary impairment | 0 | (4) | (95) |
Ending balance | 9,373 | 8,884 | 11,749 |
Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning balance | 0 | 209 | 251 |
Provision (recovery) | 0 | (205) | 53 |
Other-than-temporary impairment | 0 | (4) | (95) |
Valuation allowance, ending balance | 0 | 0 | 209 |
Net carrying amount | 9,373 | $ 8,884 | $ 11,540 |
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | |||
2,017 | 1,300 | ||
2,018 | 1,200 | ||
2,019 | 1,000 | ||
2,020 | 900 | ||
2,021 | $ 800 |
Bank segment (HEI only) - Key A
Bank segment (HEI only) - Key Assumptions Used in Estimating the Fair Value of ASB's Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans receivable | ||
Weighted average discount rate | 2.517% | |
American Savings Bank (ASB) | ||
Loans receivable | ||
Weighted average discount rate | 8.90% | |
Allowance for mortgage-servicing assets – bank | ||
Prepayment rate: | ||
25 basis points adverse rate change | $ (567) | $ (561) |
50 basis points adverse rate change | (1,154) | (1,104) |
Discount rate: | ||
25 basis points adverse rate change | (128) | (111) |
50 basis points adverse rate change | (254) | (220) |
Allowance for mortgage-servicing assets – bank | American Savings Bank (ASB) | ||
Loans receivable | ||
Unpaid principal balance | $ 1,188,380 | $ 1,097,314 |
Weighted average note rate | 3.96% | 4.05% |
Weighted average discount rate | 9.40% | 9.60% |
Weighted average prepayment speed | 8.50% | 9.30% |
Bank segment (HEI only) - Depos
Bank segment (HEI only) - Deposit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted-average stated rate | |||
Savings (as a percent) | 0.07% | 0.07% | |
Other checking, interest bearing (as a percent) | 0.02% | 0.02% | |
Money market (as a percent) | 0.12% | 0.13% | |
Term certificates (as a percent) | 1.00% | 0.93% | |
Total weighted-average stated rate (as a percent) | 0.15% | 0.12% | |
Deposit liabilities | |||
Savings | $ 2,208,594 | $ 2,030,644 | |
Other checking | |||
Interest-bearing | 890,633 | 831,143 | |
Noninterest-bearing | 817,867 | 746,875 | |
Commercial checking | 821,184 | 773,499 | |
Money market | 153,126 | 167,641 | |
Term certificates | 657,525 | 475,452 | |
Total Amount | 5,548,929 | 5,025,254 | |
Certificate accounts of $100,000 or more | 328,100 | 163,200 | |
Term certificates outstanding, scheduled maturities | |||
2,017 | 322,661 | ||
2,018 | 70,611 | ||
2,019 | 105,478 | ||
2,020 | 81,818 | ||
2,021 | 73,686 | ||
Thereafter | 3,271 | ||
Total | 657,525 | ||
Interest expense on deposit liabilities by type of deposit | |||
Term certificates | 5,390 | 3,747 | $ 3,603 |
Savings | 1,402 | 1,257 | 1,134 |
Money market | 202 | 205 | 214 |
Interest-bearing checking | 173 | 139 | 126 |
Interest expense on deposit liabilities | $ 7,167 | $ 5,348 | $ 5,077 |
Bank segment (HEI only) - Secur
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Securities sold under agreements to repurchase | ||||
Gross amount of recognized liabilities, repurchase agreements | $ 93,000 | $ 229,000 | ||
Gross amount offset in the Balance Sheet | 0 | 0 | ||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 93,000 | 229,000 | ||
Financial instruments | 116,000 | 261,000 | ||
Cash collateral pledged | 0 | $ 0 | ||
Identical securities | ||||
Securities sold under agreements to repurchase | ||||
Repurchase liability | 92,618 | 228,582 | $ 191,000 | |
Average amount outstanding during the year | 170,000 | 219,000 | 155,000 | |
Maximum amount outstanding as of any month-end | $ 229,000 | $ 277,000 | $ 195,000 | |
Weighted-average interest rate as of end of the period (as a percent) | 0.23% | 1.24% | 1.45% | |
Weighted-average interest rate during the year (as a percent) | 1.43% | 1.29% | 1.67% | |
Weighted-average remaining days to maturity as of end of the period | 6 days | 117 days | 343 days | |
Financial institution | ||||
Securities sold under agreements to repurchase | ||||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | $ 0 | $ 50,000 | ||
Financial instruments | 0 | 56,000 | ||
Cash collateral pledged | 0 | 0 | ||
Government entities | ||||
Securities sold under agreements to repurchase | ||||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 14,000 | 56,000 | ||
Financial instruments | 15,000 | 61,000 | ||
Cash collateral pledged | 0 | 0 | ||
Commercial account holders | ||||
Securities sold under agreements to repurchase | ||||
Net amount of liabilities presented in the Balance Sheet, repurchase agreements | 79,000 | 123,000 | ||
Financial instruments | $ 101,000 | 144,000 | ||
Cash collateral pledged | $ 0 | $ 0 |
Bank segment (HEI only) - Sec94
Bank segment (HEI only) - Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
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 | $ 79,083 | $ 122,684 | |
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 | $ 13,535 | $ 18,535 | |
Weighted-average interest rate | 0.70% | 0.29% | |
Over 90 days | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 0 | $ 87,363 | |
Weighted-average interest rate | 0.00% | 2.96% | |
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 | $ 115,544 | $ 261,063 | |
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 | 100,305 | 144,146 | |
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 | 15,239 | 20,364 | |
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 | 0 | 96,553 | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 92,618 | $ 228,582 | $ 191,000 |
Weighted-average interest rate | 0.23% | 1.24% | 1.45% |
Bank segment (HEI only) - FHLB
Bank segment (HEI only) - FHLB Advances (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Weighted-average stated rate | |
2017 (as a percent) | 4.28% |
2018 (as a percent) | 1.95% |
2019 (as a percent) | 0.00% |
2020 (as a percent) | 0.00% |
2021 (as a percent) | 0.00% |
Thereafter (as a percent) | 0.00% |
Total weighted-average stated rate (as a percent) | 3.12% |
Due in | |
2,017 | $ 50,000 |
2,018 | 50,000 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total amount due | $ 100,000 |
Bank segment (HEI only) - Addit
Bank segment (HEI only) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 1988 | |
Maximum | ||||
Prepaid assessment rate for financial institutions, lowest risk category | 0.09% | |||
Prepaid assessment rate for financial institutions, highest risk category | 0.45% | |||
Minimum | ||||
Prepaid assessment rate for financial institutions, lowest risk category | 0.025% | |||
Prepaid assessment rate for financial institutions, highest risk category | 0.30% | |||
American Savings Bank (ASB) | ||||
Borrowing capacity | $ 1,800 | $ 1,700 | ||
Cash dividends paid | 36 | 30 | ||
Hawaiian Electric Industries, Inc. | ||||
Cash dividends paid | 130 | 121 | $ 124 | |
Hawaiian Electric Industries, Inc. | Consolidated subsidiary | American Savings Bank (ASB) | Management and administrative services | ||||
Revenue from related party | 2.3 | $ 2.1 | $ 2.3 | |
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 |
Bank segment (HEI only) - Deriv
Bank segment (HEI only) - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ (111) | $ 71 | $ (319) |
Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 453 | 385 | |
Liability derivative | 209 | 30 | |
Interest Rate Lock Commitments | |||
Derivative instrument | |||
Notional amount | 25,883 | 22,241 | |
Fair value | 421 | 384 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 445 | 384 | |
Liability derivative | 24 | 0 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | 37 | (6) | (74) |
Forward commitments | |||
Derivative instrument | |||
Notional amount | 30,813 | 23,644 | |
Fair value | (177) | (29) | |
Forward commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 8 | 1 | |
Liability derivative | 185 | 30 | |
Forward commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ (148) | $ 77 | $ (245) |
Bank segment (HEI only) - Off B
Bank segment (HEI only) - Off Balance Sheet Arrangements and Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
American Savings Bank (ASB) | ||
Guarantees | ||
FDIC insurance assessment | $ 3,200 | $ 3,000 |
American Savings Bank (ASB) | Indemnification Agreement | ||
Guarantees | ||
Accrued indemnification litigation obligation | 1,100 | |
Reserve for Off-balance Sheet Activities | ||
Guarantees | ||
Unused Commitments to Extend Credit | 1,842,799 | 1,832,082 |
Home equity line of credit | ||
Guarantees | ||
Unused Commitments to Extend Credit | 1,146,339 | 1,096,532 |
Commercial and commercial real estate | ||
Guarantees | ||
Unused Commitments to Extend Credit | 577,410 | 631,780 |
Consumer loans | ||
Guarantees | ||
Unused Commitments to Extend Credit | 64,762 | 60,198 |
Residential 1-4 family | ||
Guarantees | ||
Unused Commitments to Extend Credit | 38,271 | 24,863 |
Commercial and financial standby letters of credit | ||
Guarantees | ||
Unused Commitments to Extend Credit | $ 16,017 | $ 18,709 |
Unconsolidated variable inter99
Unconsolidated variable interest entities (Details) | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2015MW | Oct. 31, 2015MW | Oct. 31, 2004MW | Mar. 31, 2004USD ($)security | Oct. 31, 1988MW | Mar. 31, 1988MW | Dec. 31, 2016USD ($)agreemententity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Power purchase agreement | |||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | ||||||||
Accounts payable | $ 143,279,000 | $ 138,523,000 | |||||||
HECO | |||||||||
Power purchase agreement | |||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | ||||||||
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 | $ 431,009,000 | 440,983,000 | $ 537,821,000 | ||||||
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 | $ 13,000,000 | ||||||||
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 | 12,000,000 | ||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 81,018,000 | 97,503,000 | 123,226,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 562,740,000 | 594,096,000 | 722,008,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | AES Hawaii, Inc. (AES Hawaii) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 149,000,000 | 134,000,000 | 145,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Kalaeloa Partners, L.P. (Kalaeloa) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 152,000,000 | 187,000,000 | 279,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hamakua Energy Partners, L.P. (HEP) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 29,000,000 | 44,000,000 | 51,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | HPOWER | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 71,000,000 | 66,000,000 | 66,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Puna Geothermal Venture | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 28,000,000 | 29,000,000 | 45,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Hawaiian Commercial & Sugar (HC&S) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 1,000,000 | 8,000,000 | 15,000,000 | ||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Other IPPs | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | 133,000,000 | 126,000,000 | 121,000,000 | ||||||
Maui Electric Company, Limited (MECO) | |||||||||
Power purchase agreement | |||||||||
Purchases from IPPs | $ 50,713,000 | $ 55,610,000 | $ 60,961,000 | ||||||
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, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 02, 2014USD ($)Institution | Apr. 01, 2014USD ($) | |
Short-term borrowings | ||||
Outstanding amount | $ 0 | $ 103,063,000 | ||
HEI | ||||
Credit agreements | ||||
Number of financial institutions | Institution | 9 | |||
Line of credit facility, reference rate | Adjusted LIBO Rate | |||
Actual capitalization ratio (as a percent) | 13.00% | |||
HEI | Maximum | ||||
Credit agreements | ||||
Capitalization ratio required to be maintained as per the debt covenant (as a percent) | 50.00% | |||
HEI | Line of credit facility | ||||
Short-term borrowings | ||||
Line of credit outstanding | $ 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% | |||
HEI | Line of credit facility | Adjusted LIBO Rate | ||||
Credit agreements | ||||
Line of credit facility basis point spread (as a percent) | 1.375% | |||
HEI | Commercial paper | ||||
Short-term borrowings | ||||
Outstanding amount | $ 103,000,000 | |||
Weighted-average interest rate (as a percent) | 1.10% | |||
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% | |||
Hawaiian Electric Company, Inc (HECO) | Line of credit facility | ||||
Short-term borrowings | ||||
Outstanding amount | $ 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) | 0.20% | |||
Hawaiian Electric Company, Inc (HECO) | Line of credit facility | Adjusted LIBO Rate | ||||
Credit agreements | ||||
Line of credit facility basis point spread (as a percent) | 1.375% | |||
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% |
Long-term debt (Details)
Long-term debt (Details) - USD ($) | Mar. 23, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 15, 2016 | Mar. 24, 2016 | Mar. 21, 2016 |
Long-term debt | |||||||
Less unamortized debt issuance costs | $ (241,000) | $ (334,000) | |||||
Long-term debt | 1,619,019,000 | 1,578,368,000 | |||||
Aggregate principal payments | |||||||
2,017 | 125,000,000 | ||||||
2,018 | 125,000,000 | ||||||
2,019 | 0 | ||||||
2,020 | 96,000,000 | ||||||
2,021 | 50,000,000 | ||||||
Proceeds from issuance of long-term debt | 115,000,000 | 80,000,000 | $ 125,000,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||
Long-term debt | |||||||
Total long-term debt | 1,326,546,000 | 1,286,546,000 | |||||
Aggregate principal payments | |||||||
Proceeds from issuance of long-term debt | 40,000,000 | 80,000,000 | $ 0 | ||||
Electric utility | |||||||
Aggregate principal payments | |||||||
2,017 | 0 | ||||||
2,018 | 50,000,000 | ||||||
2,019 | 0 | ||||||
2,020 | 96,000,000 | ||||||
2,021 | 0 | ||||||
Special purpose revenue bonds issued on behalf of electric utility subsidiaries | |||||||
Long-term debt | |||||||
Total long-term debt | 1,319,260,000 | 1,278,702,000 | |||||
Term loan | HEI Term loan LIBOR .75%, due 2017 | |||||||
Long-term debt | |||||||
Total long-term debt | $ 125,000,000 | $ 125,000,000 | |||||
Term loan | HEI Term loan LIBOR .75%, due 2017 | LIBOR | |||||||
Aggregate principal payments | |||||||
Line of credit facility basis point spread (as a percent) | 0.75% | 0.75% | |||||
Term loan | HEI term loan LIBOR .75%, due 2018 | |||||||
Long-term debt | |||||||
Total long-term debt | $ 75,000,000 | $ 0 | |||||
Term loan | HEI term loan LIBOR .75%, due 2018 | LIBOR | |||||||
Aggregate principal payments | |||||||
Line of credit facility basis point spread (as a percent) | 0.75% | 0.75% | |||||
Senior notes | HEI senior note 4.41%, paid 2016 | |||||||
Long-term debt | |||||||
Total long-term debt | $ 0 | $ 75,000,000 | |||||
Aggregate principal payments | |||||||
Debt instrument, stated interest rate (as a percent) | 4.41% | 4.41% | |||||
Senior notes | HEI senior note 5.67%, due 2021 | |||||||
Long-term debt | |||||||
Total long-term debt | $ 50,000,000 | $ 50,000,000 | |||||
Aggregate principal payments | |||||||
Debt instrument, stated interest rate (as a percent) | 5.67% | 5.67% | |||||
Senior notes | HEI senior note 3.99%, due 2023 | |||||||
Long-term debt | |||||||
Total long-term debt | $ 50,000,000 | $ 50,000,000 | |||||
Aggregate principal payments | |||||||
Debt instrument, stated interest rate (as a percent) | 3.99% | 3.99% | |||||
Senior notes | Senior Notes, 4.41% | |||||||
Aggregate principal payments | |||||||
Debt instrument, stated interest rate (as a percent) | 4.41% | ||||||
Line of credit facility | Bank of American Term Loan | |||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | ||||
Line of credit facility | Eurodollar Term Loan | |||||||
Aggregate principal payments | |||||||
Initial interest rate (as a percent) | 1.18% | ||||||
Subsequent interest rate (as a percent) | 1.25% | ||||||
Unsecured Debt | Hawaiian Electric, 5.23%, Series 2015A, due 2045 | |||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 40,000,000 | ||||||
Unsecured Debt | Hawaii Electric Light, 5.23%, Series 2015A, due 2045 | |||||||
Aggregate principal payments | |||||||
Debt instrument, stated interest rate (as a percent) | 4.54% |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Mar. 20, 2015 | Jul. 14, 2014 | Dec. 19, 2013 | Mar. 20, 2013 | Mar. 19, 2013 |
Equity [Abstract] | ||||||
Common stock reserved for future issuance (in shares) | 11,857,869 | |||||
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 - Accumula
Shareholders' equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | $ 1,927,640 | $ 1,790,573 | $ 1,726,406 |
Other comprehensive income (loss), net of tax benefits | (6,867) | 1,116 | (10,628) |
Ending Balance | 2,066,753 | 1,927,640 | 1,790,573 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (26,262) | (27,378) | (16,750) |
Ending Balance | (33,129) | (26,262) | (27,378) |
Net unrealized gains (losses) on securities | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (1,872) | 462 | (3,663) |
Other comprehensive income (loss), net of tax benefits | (6,059) | (2,334) | 4,125 |
Ending Balance | (7,931) | (1,872) | 462 |
Unrealized gains(losses) on derivatives | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (54) | (289) | (525) |
Other comprehensive income (loss), net of tax benefits | (400) | 235 | 236 |
Ending Balance | (454) | (54) | (289) |
Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (24,336) | (27,551) | (12,562) |
Other comprehensive income (loss), net of tax benefits | (408) | 3,215 | (14,989) |
Ending Balance | (24,744) | (24,336) | (27,551) |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 1,728,325 | 1,682,144 | 1,593,564 |
Other comprehensive income (loss), net of tax benefits | (1,247) | 880 | (563) |
Ending Balance | 1,799,787 | 1,728,325 | 1,682,144 |
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 925 | 45 | 608 |
Ending Balance | (322) | 925 | 45 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unrealized gains(losses) on derivatives | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax benefits | (454) | 0 | 0 |
Ending Balance | (454) | 0 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 925 | 45 | 608 |
Other comprehensive income (loss), net of tax benefits | (793) | 880 | (563) |
Ending Balance | $ 132 | $ 925 | $ 45 |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification Out Of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | $ (617,395) | $ (646,055) | $ (566,244) | $ (550,960) | $ (624,032) | $ (717,176) | $ (623,912) | $ (637,862) | $ (2,380,654) | $ (2,602,982) | $ (3,239,542) |
Interest rate contracts (settled in 2011) | 75,803 | 77,150 | 76,352 | ||||||||
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | (14,518) | (22,465) | (11,344) | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (28,584) | 25,139 | (207,833) | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | $ (544,668) | $ (572,253) | $ (495,395) | $ (482,052) | $ (555,434) | $ (648,127) | $ (558,163) | $ (573,442) | (2,094,368) | (2,335,166) | (2,987,323) |
Amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost | (13,254) | (20,381) | (10,212) | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | (28,584) | 25,139 | (207,833) | ||||||||
Bank | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | (285,924) | (267,733) | (252,497) | ||||||||
Electric utility | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | (2,094,368) | (2,335,166) | (2,987,323) | ||||||||
Amount reclassified from AOCI | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 42,623 | (2,439) | 217,698 | ||||||||
Amount reclassified from AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 41,665 | (4,758) | 218,045 | ||||||||
Amount reclassified from AOCI | Net unrealized gains (losses) on securities | Bank | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | (360) | 0 | (1,715) | ||||||||
Amount reclassified from AOCI | Unrealized gains(losses) on derivatives | Interest rate contracts | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest rate contracts (settled in 2011) | 54 | 235 | 236 | ||||||||
Amount reclassified from AOCI | Unrealized gains(losses) on derivatives | Electric utility | Window forward contracts | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | (173) | 0 | 0 | ||||||||
Amount reclassified from AOCI | Unrealized gains(losses) on derivatives | Electric utility | Window forward contracts | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on securities | (173) | 0 | 0 | ||||||||
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 | 14,518 | 22,465 | 11,344 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 28,584 | (25,139) | 207,833 | ||||||||
Amount reclassified from AOCI | Retirement benefit plans | 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 | 13,254 | 20,381 | 10,212 | ||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | $ 28,584 | $ (25,139) | $ 207,833 |
Retirement benefits - Additiona
Retirement benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 0.9 | $ 1 | |
Regulatory asset charges pretax | $ 47 | (41) | |
Fair value of plan assets, valuation difference amortized in first year (as a percent) | 0.00% | ||
Fair value of plan assets, valuation difference amortized in two to five years (as a percent) | 25.00% | ||
Number of past years for adding or subtracting the unamortized differences from fair value | 4 years | ||
Percentage of range around fair value | 15.00% | ||
Expected cash funding for qualified defined benefit plans | |||
Defined contribution plan, expenses recognized | $ 5 | 6 | $ 5 |
Cash contributions by the employer to defined contribution plan | $ 5 | 5 | 5 |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rate of return on plan assets (as a percent) | 7.50% | ||
Discount rate (as a percent) | 4.46% | ||
Actual net return on plan assets (as a percent) | 8.00% | ||
Assumed discount rate, active manager premium | 20.00% | ||
Pension expense | $ 33 | 35 | 32 |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | |||
Aggregate accumulated benefit obligations | 1,600 | 1,500 | |
Plan assets | 1,300 | 1,200 | |
Defined benefit plans with benefit obligations in excess of plan assets | |||
Aggregate projected benefit obligations | 1,800 | 1,700 | |
Plan assets | 1,300 | $ 1,200 | |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | $ 67 | ||
Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed health care trend rate for medical in next fiscal year (as a percent) | 7.75% | 8.00% | |
Assumed health care trend rate for grading down plan in 12 fiscal years 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% | |
Assumed health care trend rate for grading down in 2024 and thereafter (as a percent) | 5.00% | ||
Postretirement benefits other than pension expense | $ 1 | $ 0.9 | 1.2 |
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased total service and interest cost | 0.1 | ||
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased the accumulated postretirement benefit obligation (APBO) | 3.5 | ||
Effect of one-percentage-point decrease that would have reduced total service and interest cost | 0.2 | ||
Effect of one-percentage-point decrease that would have reduced APBO | 4.2 | ||
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | 0.2 | ||
2,017 | 85 | ||
2,018 | 89 | ||
2,019 | 92 | ||
2,020 | 97 | ||
2,021 | 101 | ||
2022 through 2025 | $ 570 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Threshold percentage around fair value | 85.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Threshold percentage around fair value | 115.00% | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefits expense | $ 31 | 30 | 32 |
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 | $ 1.5 | 1.5 | 0.9 |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | 30 | 29 | 31 |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | |||
Aggregate accumulated benefit obligations | 1,500 | 1,400 | |
Plan assets | 1,200 | 1,100 | |
Defined benefit plans with benefit obligations in excess of plan assets | |||
Aggregate projected benefit obligations | 1,800 | 1,600 | |
Plan assets | 1,200 | 1,100 | |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | 66 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits other than pension expense | 0.7 | $ 0.7 | $ 1 |
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased total service and interest cost | 0.1 | ||
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased the accumulated postretirement benefit obligation (APBO) | 3.4 | ||
Effect of one-percentage-point decrease that would have reduced total service and interest cost | 0.2 | ||
Effect of one-percentage-point decrease that would have reduced APBO | 4.1 | ||
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2015 | 0.2 | ||
2,017 | 79 | ||
2,018 | 81 | ||
2,019 | 84 | ||
2,020 | 89 | ||
2,021 | 92 | ||
2022 through 2025 | $ 522 | ||
Hawaii Electric Light Company, Inc. (HELCO) | |||
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% | ||
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 i
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ (599,726) | $ (552,974) | |||
Pension benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | $ 1,798,030 | $ 1,847,228 | |||
Service cost | 60,555 | 66,260 | $ 49,264 | ||
Interest cost | 81,549 | 76,960 | 72,202 | ||
Actuarial losses (gains) | 67,741 | (124,239) | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (72,381) | (68,179) | |||
Benefit obligation, balance at the end of the period | 1,935,494 | 1,798,030 | 1,847,228 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,271,474 | 1,266,060 | |||
Actual return on plan assets | 103,836 | (14,422) | |||
Employer contributions | 65,463 | 86,802 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (71,072) | (66,966) | |||
Fair value of plan assets, balance at the end of the period | 1,369,701 | 1,271,474 | 1,266,060 | ||
Accrued benefit asset (liability), balance | (565,793) | (526,556) | |||
Other assets | 13,477 | 12,509 | |||
Defined benefit pension and other postretirement benefit plans liability | (579,270) | (539,065) | |||
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) | 581,763 | 639,831 | |||
Recognized during year - prior service credit (cost) | 57 | (4) | |||
Recognized during year - net actuarial losses | (24,832) | (36,800) | |||
Occurring during year - net actuarial losses (gains) | 62,463 | (21,264) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 619,451 | 581,763 | 639,831 | ||
Cumulative impact of PUC D&Os | (576,933) | (538,784) | |||
AOCI debit/(credit), balance at end of the period | 42,518 | 42,979 | |||
Net actuarial loss (gain) | 619,582 | 581,951 | |||
Prior service gain | (131) | (188) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 581,763 | 639,831 | 639,831 | 619,451 | 581,763 |
Income taxes | (16,746) | (16,944) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 25,772 | 26,035 | |||
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 | 1,649,690 | 1,690,777 | |||
Service cost | 58,796 | 64,262 | 47,597 | ||
Interest cost | 74,808 | 70,529 | 65,979 | ||
Actuarial losses (gains) | 63,121 | (114,286) | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (66,789) | (63,037) | |||
Transfers | 0 | 1,445 | |||
Benefit obligation, balance at the end of the period | 1,779,626 | 1,649,690 | 1,690,777 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,141,833 | 1,129,005 | |||
Actual return on plan assets | 93,441 | (10,646) | |||
Employer contributions | 64,236 | 85,139 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (66,326) | (62,584) | |||
Other | 0 | 919 | |||
Fair value of plan assets, balance at the end of the period | 1,233,184 | 1,141,833 | 1,129,005 | ||
Accrued benefit asset (liability), balance | (546,442) | (507,857) | |||
Other liabilities (short-term) | (460) | (425) | |||
Defined benefit pension and other postretirement benefit plans liability | (545,982) | (507,432) | |||
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) | 541,118 | 595,103 | |||
Recognized during year - prior service credit (cost) | (13) | (40) | |||
Recognized during year - net actuarial losses | (22,693) | (33,371) | |||
Occurring during year - net actuarial losses (gains) | 61,313 | (20,574) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 579,725 | 541,118 | 595,103 | ||
Cumulative impact of PUC D&Os | (576,933) | (538,784) | |||
AOCI debit/(credit), balance at end of the period | 2,792 | 2,334 | |||
Net actuarial loss (gain) | 579,691 | 541,071 | |||
Prior service gain | 34 | 47 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 541,118 | 595,103 | 595,103 | 579,725 | 541,118 |
Income taxes | (1,087) | (908) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 1,705 | 1,426 | |||
Other benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 221,540 | 219,209 | |||
Service cost | 3,331 | 3,927 | 3,490 | ||
Interest cost | 9,670 | 9,011 | 8,550 | ||
Actuarial losses (gains) | 7,831 | (2,911) | |||
Participants contributions | 1,405 | 1,274 | |||
Benefits paid and expenses | (9,942) | (8,970) | |||
Benefit obligation, balance at the end of the period | 233,835 | 221,540 | 219,209 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 170,687 | 180,332 | |||
Actual return on plan assets | 11,352 | (2,866) | |||
Employer contributions | 42 | 917 | |||
Participants contributions | 1,405 | 1,274 | |||
Benefits paid and expenses | (9,235) | (8,970) | |||
Fair value of plan assets, balance at the end of the period | 174,251 | 170,687 | 180,332 | ||
Accrued benefit asset (liability), balance | (59,584) | (50,853) | |||
Other assets | 0 | 0 | |||
Defined benefit pension and other postretirement benefit plans liability | (59,584) | (50,853) | |||
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) | 32,550 | 20,933 | |||
Recognized during year - prior service credit (cost) | 1,793 | 1,793 | |||
Recognized during year - net actuarial losses | (804) | (1,796) | |||
Occurring during year - net actuarial losses (gains) | 8,751 | 11,620 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 42,290 | 32,550 | 20,933 | ||
Cumulative impact of PUC D&Os | (43,974) | (35,333) | |||
AOCI debit/(credit), balance at end of the period | (1,684) | (2,783) | |||
Net actuarial loss (gain) | 52,792 | 44,845 | |||
Prior service gain | (10,502) | (12,295) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 32,550 | 20,933 | 20,933 | 42,290 | 32,550 |
Income taxes | 656 | 1,084 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | (1,028) | (1,699) | |||
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 | 213,990 | 211,760 | |||
Service cost | 3,284 | 3,870 | 3,392 | ||
Interest cost | 9,337 | 8,700 | 8,234 | ||
Actuarial losses (gains) | 7,545 | (2,860) | |||
Participants contributions | 1,389 | 1,260 | |||
Benefits paid and expenses | (9,822) | (8,858) | |||
Transfers | 0 | 118 | |||
Benefit obligation, balance at the end of the period | 225,723 | 213,990 | 211,760 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 167,930 | 177,256 | |||
Actual return on plan assets | 11,168 | (2,712) | |||
Employer contributions | 11 | 864 | |||
Participants contributions | 1,389 | 1,260 | |||
Benefits paid and expenses | (9,115) | (8,858) | |||
Other | 0 | 120 | |||
Fair value of plan assets, balance at the end of the period | 171,383 | 167,930 | 177,256 | ||
Accrued benefit asset (liability), balance | (54,340) | (46,060) | |||
Other liabilities (short-term) | (596) | (518) | |||
Defined benefit pension and other postretirement benefit plans liability | (53,744) | (45,542) | |||
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) | 31,485 | 20,090 | |||
Recognized during year - prior service credit (cost) | 1,803 | 1,804 | |||
Recognized during year - net actuarial losses | (793) | (1,754) | |||
Occurring during year - net actuarial losses (gains) | 8,472 | 11,345 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 40,967 | 31,485 | 20,090 | ||
Cumulative impact of PUC D&Os | (43,974) | (35,333) | |||
AOCI debit/(credit), balance at end of the period | (3,007) | (3,848) | |||
Net actuarial loss (gain) | 51,463 | 43,784 | |||
Prior service gain | (10,496) | (12,299) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | $ 31,485 | $ 20,090 | $ 20,090 | 40,967 | 31,485 |
Income taxes | 1,170 | 1,497 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | $ (1,837) | $ (2,351) |
Retirement benefits - Weighted
Retirement benefits - Weighted Average Asset Allocation of Defined Benefit Retirement Plans and Weighted Average Assumptions(Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Net periodic pension/benefit cost (years ended) | |||
Employer's additional matching contribution on employee deferrals (as a percent) | 50.00% | ||
Maximum percentage of participant deferrals eligible for Employer contribution match, towards defined contribution plan | 6.00% | ||
American Savings Bank (ASB) | |||
Net periodic pension/benefit cost (years ended) | |||
Maximum percentage of participant deferrals eligible for Employer contribution match, towards defined contribution plan | 4.00% | ||
Hawaii Electric Light Company, Inc. (HELCO) | |||
Net periodic pension/benefit cost (years ended) | |||
Employer's additional matching contribution on employee deferrals (as a percent) | 50.00% | ||
Maximum percentage of participant deferrals eligible for Employer contribution match, towards defined contribution plan | 6.00% | ||
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) | 4.26% | 4.60% | 4.22% |
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) | 4.60% | 4.22% | 5.09% |
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) | 4.80% | 4.22% | |
Pension benefits | Equity securities managers | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation (as a percent) | 71.00% | 70.00% | |
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) | 29.00% | 30.00% | |
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) | 4.22% | 4.57% | 4.17% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate (as a percent) | 4.57% | 4.17% | 5.03% |
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% | 70.00% | |
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% | 30.00% | |
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 Retirement
Retirement benefits Retirement benefits - Assets Held In Retirement Benefit Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 1,369,701,000 | $ 1,271,474,000 | $ 1,266,060,000 |
Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 174,251,000 | 170,687,000 | $ 180,332,000 |
Fair value measurements on a recurring basis | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,366,000,000 | 1,268,000,000 | |
NAV of plan assets | 269,000,000 | 249,000,000 | |
Cash, receivables and payables, net | 4,000,000 | 3,000,000 | |
Fair value of plan assets, net | 1,370,000,000 | 1,271,000,000 | |
Fair value measurements on a recurring basis | Pension benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 877,000,000 | 805,000,000 | |
Fair value measurements on a recurring basis | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 692,000,000 | 640,000,000 | |
NAV of plan assets | 56,000,000 | 46,000,000 | |
Fair value measurements on a recurring basis | Pension benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 129,000,000 | 119,000,000 | |
Fair value measurements on a recurring basis | Pension benefits | Non-U.S. Equity Funds | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | $ 56,000,000 | $ 46,000,000 | |
Redemption frequency, daily | 31.00% | 24.00% | |
Redemption frequency, monthly | 31.00% | 29.00% | |
Redemption frequency, quarterly | 38.00% | 47.00% | |
Fair value measurements on a recurring basis | Pension benefits | Non-U.S. Equity Funds | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 0 days | 0 days | |
Fair value measurements on a recurring basis | Pension benefits | Non-U.S. Equity Funds | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 30 days | 30 days | |
Fair value measurements on a recurring basis | Pension benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 456,000,000 | $ 425,000,000 | |
Fair value measurements on a recurring basis | Pension benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 276,000,000 | 260,000,000 | |
NAV of plan assets | $ 180,000,000 | $ 165,000,000 | |
Redemption notice period (in days) | 10 days | 10 days | |
Fair value measurements on a recurring basis | Pension benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | $ 33,000,000 | $ 38,000,000 | |
Fair value measurements on a recurring basis | Pension benefits | Cash Equivalents | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 0 days | 0 days | |
Fair value measurements on a recurring basis | Pension benefits | Cash Equivalents | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 1 day | 1 day | |
Fair value measurements on a recurring basis | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 174,000,000 | $ 171,000,000 | |
NAV of plan assets | 19,000,000 | 18,000,000 | |
Cash, receivables and payables, net | 0 | 0 | |
Fair value of plan assets, net | 174,000,000 | 171,000,000 | |
Fair value measurements on a recurring basis | Other benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 120,000,000 | 118,000,000 | |
Fair value measurements on a recurring basis | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 94,000,000 | 92,000,000 | |
NAV of plan assets | 9,000,000 | 9,000,000 | |
Fair value measurements on a recurring basis | Other benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 17,000,000 | 17,000,000 | |
Fair value measurements on a recurring basis | Other benefits | Non-U.S. Equity Funds | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | $ 9,000,000 | $ 9,000,000 | |
Redemption frequency, monthly | 57.00% | 54.00% | |
Redemption frequency, quarterly | 42.00% | 46.00% | |
Fair value measurements on a recurring basis | Other benefits | Non-U.S. Equity Funds | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 10 days | 10 days | |
Fair value measurements on a recurring basis | Other benefits | Non-U.S. Equity Funds | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 30 days | 30 days | |
Fair value measurements on a recurring basis | Other benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 48,000,000 | $ 48,000,000 | |
Fair value measurements on a recurring basis | Other benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 44,000,000 | 44,000,000 | |
NAV of plan assets | $ 4,000,000 | $ 4,000,000 | |
Redemption notice period (in days) | 10 days | 10 days | |
Fair value measurements on a recurring basis | Other benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | $ 6,000,000 | $ 5,000,000 | |
Fair value measurements on a recurring basis | Other benefits | Cash Equivalents | Minimum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 0 days | 0 days | |
Fair value measurements on a recurring basis | Other benefits | Cash Equivalents | Maximum | |||
Fair value measurements on a recurring basis | |||
Redemption notice period (in days) | 1 day | 1 day | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 905,000,000 | $ 844,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 821,000,000 | 759,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 692,000,000 | 640,000,000 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 129,000,000 | 119,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 84,000,000 | 85,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 84,000,000 | 85,000,000 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Pension benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 153,000,000 | 151,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 111,000,000 | 109,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 94,000,000 | 92,000,000 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 17,000,000 | 17,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 42,000,000 | 42,000,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 42,000,000 | 42,000,000 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 192,000,000 | 175,000,000 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 192,000,000 | 175,000,000 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 192,000,000 | 175,000,000 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000,000 | 2,000,000 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000,000 | 2,000,000 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 2,000,000 | 2,000,000 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Pension benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Equity Securities, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | U.S. Equity Index Fund | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Fixed Income Funds, Measured at Fair Value and Net Asset Value | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Total fixed income investments | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 0 | 0 | |
NAV of plan assets | 0 | 0 | |
Fair value measurements on a recurring basis | Level 3 | Other benefits | Cash Equivalents | |||
Fair value measurements on a recurring basis | |||
NAV of plan assets | $ 0 | $ 0 |
Retirement benefits - Component
Retirement benefits - Components of NPBC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension benefits | |||
Defined benefit plans | |||
Service cost | $ 60,555 | $ 66,260 | $ 49,264 |
Interest cost | 81,549 | 76,960 | 72,202 |
Expected return on plan assets | (98,559) | (88,554) | (81,355) |
Amortization of net prior service (gain) cost | (57) | 4 | 88 |
Amortization of net actuarial loss (gain) | 24,832 | 36,800 | 20,304 |
Net periodic pension/benefit cost | 68,320 | 91,470 | 60,503 |
Impact of PUC D&Os | (18,117) | (40,011) | (13,324) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 50,203 | 51,459 | 47,179 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (100) | ||
Net actuarial loss | 26,100 | ||
Defined benefit plans - ABOs | 1,700,000 | 1,600,000 | |
Aggregate accumulated benefit obligations | 1,600,000 | 1,500,000 | |
Plan assets | 1,300,000 | 1,200,000 | |
Aggregate projected benefit obligations | 1,800,000 | 1,700,000 | |
Plan assets | 1,300,000 | 1,200,000 | |
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 58,796 | 64,262 | 47,597 |
Interest cost | 74,808 | 70,529 | 65,979 |
Expected return on plan assets | (91,633) | (82,541) | (72,661) |
Amortization of net prior service (gain) cost | 13 | 40 | 62 |
Amortization of net actuarial loss (gain) | 22,693 | 33,371 | 18,459 |
Net periodic pension/benefit cost | 64,677 | 85,661 | 59,436 |
Impact of PUC D&Os | (18,117) | (40,011) | (13,324) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 46,560 | 45,650 | 46,112 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | 0 | ||
Net actuarial loss | 24,000 | ||
Defined benefit plans - ABOs | 1,500,000 | 1,400,000 | |
Aggregate accumulated benefit obligations | 1,500,000 | 1,400,000 | |
Plan assets | 1,200,000 | 1,100,000 | |
Aggregate projected benefit obligations | 1,800,000 | 1,600,000 | |
Plan assets | 1,200,000 | 1,100,000 | |
Other benefits | |||
Defined benefit plans | |||
Service cost | 3,331 | 3,927 | 3,490 |
Interest cost | 9,670 | 9,011 | 8,550 |
Expected return on plan assets | (12,273) | (11,664) | (10,902) |
Amortization of net prior service (gain) cost | (1,793) | (1,793) | (1,793) |
Amortization of net actuarial loss (gain) | 804 | 1,796 | (11) |
Net periodic pension/benefit cost | (261) | 1,277 | (666) |
Impact of PUC D&Os | 1,343 | (240) | 1,976 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 1,082 | 1,037 | 1,310 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (1,800) | ||
Net actuarial loss | 1,500 | ||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 3,284 | 3,870 | 3,392 |
Interest cost | 9,337 | 8,700 | 8,234 |
Expected return on plan assets | (12,096) | (11,495) | (10,739) |
Amortization of net prior service (gain) cost | (1,803) | (1,804) | (1,804) |
Amortization of net actuarial loss (gain) | 793 | 1,754 | 0 |
Net periodic pension/benefit cost | (485) | 1,025 | (917) |
Impact of PUC D&Os | 1,343 | (240) | 1,976 |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 858 | $ 785 | $ 1,059 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (1,800) | ||
Net actuarial loss | $ 1,400 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) $ in Millions | Mar. 01, 2014shares | Jul. 31, 2016USD ($) | Dec. 31, 2016USD ($)incrementshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Share-based compensation | |||||
Share-based compensation expense (in dollars) | $ 4.8 | $ 6.5 | $ 9.3 | ||
Income tax benefit (in dollars) | $ 1.6 | 2.3 | 3.4 | ||
Restricted shares | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | 0.1 | ||||
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% | ||||
Restricted stock units | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | $ 2.8 | 3.7 | 4.1 | ||
Income tax benefit (in dollars) | 0.9 | 1.1 | 1.2 | ||
Unrecognized compensation cost | $ 4.2 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years 4 months 24 days | ||||
LTIP awards linked to other performance conditions | |||||
Share-based compensation | |||||
Fair value of vested stock (in dollars) | $ 3.6 | 4.7 | 1.9 | ||
Income tax benefit (in dollars) | $ 1.4 | $ 1.8 | $ 0.8 | ||
Equity and Incentive Plan (EIP) | |||||
Share-based compensation | |||||
Additional shares available for issuance | shares | 1,500,000 | ||||
Shares remaining available for future issuance | shares | 3,400,000 | ||||
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | shares | 300,000 | ||||
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 | 121,198 | ||||
Nonemployee Director Stock Plan | Stock Compensation Plan | |||||
Share-based compensation | |||||
Share-based compensation expense (in dollars) | $ 0.2 |
Share-based compensation - Rela
Share-based compensation - Related Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | $ 4,800 | $ 6,500 | $ 9,300 |
Income tax benefit (in dollars) | 1,600 | 2,300 | 3,400 |
Capitalized share-based compensation expense | 150 | 160 | |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | 1,400 | 1,900 | 3,100 |
Income tax benefit (in dollars) | $ 500 | $ 700 | $ 1,200 |
Share-based compensation Share-
Share-based compensation Share-based compensation - The 2011 Director Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit (in dollars) | $ 1.6 | $ 2.3 | $ 3.4 |
Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 19,846 | 28,246 | 33,170 |
Fair value of vested stock (in dollars) | $ 0.6 | $ 0.8 | $ 0.8 |
Income tax benefit (in dollars) | $ 0.2 | $ 0.3 | $ 0.3 |
Share-based compensation - Stoc
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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Outstanding, beginning of period | 80,000 | 164,000 |
Granted | 0 | 0 |
Exercised | (80,000) | (22,000) |
Forfeited | 0 | (62,000) |
Expired | 0 | 0 |
Outstanding, end of period | 0 | 80,000 |
Exercisable | 0 | 80,000 |
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 |
Granted (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 26.18 | 26.18 |
Forfeited (in dollars per share) | 0 | 26.02 |
Expired (in dollars per share) | 0 | 0 |
Outstanding, at the end of the period (in dollars per share) | 0 | 26.18 |
Exercisable (in dollars per share) | $ 0 | $ 26.18 |
Intrinsic value of shares exercised | $ 502 | $ 29 |
Tax benefit realized for the deduction of exercises | $ 82 | $ 11 |
Share-based compensation - Rest
Share-based compensation - Restricted Shares and Restricted Stock Awards (Details) - Restricted shares | 12 Months Ended |
Dec. 31, 2014$ / sharesshares | |
Share-based Compensation, Restricted Shares [Roll Forward] | |
Outstanding, beginning of period | shares | 4,503 |
Granted | shares | 0 |
Vested | shares | (4,503) |
Forfeited | shares | 0 |
Outstanding, end of period | shares | 0 |
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) | $ / shares | $ 22.21 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 22.21 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 0 |
Share-based compensation - R115
Share-based compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period | 210,634 | 261,235 | 288,151 |
Granted | 114,431 | 85,772 | 117,786 |
Vested | (85,003) | (102,173) | (144,702) |
Forfeited | (19,379) | (34,200) | 0 |
Outstanding, end of period | 220,683 | 210,634 | 261,235 |
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) | $ 28.82 | $ 25.77 | $ 25.17 |
Granted (in dollars per share) | 29.70 | 33.69 | 25.17 |
Vested (in dollars per share) | 27.84 | 25.67 | 24.09 |
Forfeited (in dollars per share) | 29.82 | 27.09 | 0 |
Outstanding, end of period (in dollars per share) | $ 29.57 | $ 28.82 | $ 25.77 |
Total weighted-average grant-date fair value | $ 3.4 | $ 2.9 | $ 3 |
Share-based compensation - LTIP
Share-based compensation - LTIP Linked to TRS (Details) - LTIP linked to TRS - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period | 162,500 | 257,956 | 232,127 |
Granted | 0 | 0 | 97,524 |
Vested | (78,553) | (75,915) | (70,189) |
Forfeited | (841) | (19,541) | (1,506) |
Outstanding, end of period | 83,106 | 162,500 | 257,956 |
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) | $ 27.66 | $ 28.45 | $ 32.88 |
Granted (in dollars per share) | 0 | 0 | 22.95 |
Vested (in dollars per share) | 32.69 | 30.71 | 35.46 |
Forfeited (in dollars per share) | 22.95 | 26.25 | 28.32 |
Outstanding, end of period (in dollars per share) | $ 22.95 | $ 27.66 | $ 28.45 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 2.2 |
Share-based compensation - Assu
Share-based compensation - Assumptions to Determine the Fair Value of LTIP Awards Linked to TRS (Details) - LTIP linked to TRS | 12 Months Ended |
Dec. 31, 2014$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (as a percent) | 0.66% |
Expected life (in years) | 3 years |
Expected volatility (as a percent) | 17.80% |
Range of expected volatility for Peer Group, minimum (as a percent) | 12.40% |
Range of expected volatility for Peer Group, maximum (as a percent) | 25.30% |
Grant date fair value (in dollars per share) | $ 22.95 |
Share-based compensation - L118
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period | 222,647 | 364,731 | 296,843 |
Granted | 0 | 0 | 129,603 |
Vested | (109,097) | (121,249) | (65,089) |
Increased above target (in shares) | (1,989) | 3,412 | 4,949 |
Forfeited | (1,745) | (24,247) | (1,575) |
Outstanding, end of period | 109,816 | 222,647 | 364,731 |
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) | $ 26.02 | $ 26.01 | $ 26.14 |
Granted (in dollars per share) | 0 | 0 | 25.18 |
Vested (in dollars per share) | 26.89 | 26.05 | 24.95 |
Increased above target (in dollars per share) | 25.26 | 26.89 | 26.70 |
Forfeited (in dollars per share) | 25.19 | 25.82 | 26.07 |
Outstanding, end of period (in dollars per share) | $ 25.18 | $ 26.02 | $ 26.01 |
Total weighted-average grant-date fair value | $ 0 | $ 0 | $ 3.3 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit) [Line Items] | ||||
Reconciliation percentage of amount of income taxes computed at federal statutory rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | $ 3,800 | $ 3,600 | $ 0 | $ 900 |
Credit adjustments to interest expense on income taxes | 200 | 100 | (1,700) | |
Amount of accrued interest related to uncertain tax positions | 300 | 100 | ||
Expected increase in depreciation expense | $ 126,000 | |||
Renewable energy investment tax credit, percent | 30.00% | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Income Tax Expense (Benefit) [Line Items] | ||||
Unrecognized tax benefits | $ 3,800 | 3,600 | 0 | $ 500 |
Credit adjustments to interest expense on income taxes | 30 | 100 | $ (700) | |
Amount of accrued interest related to uncertain tax positions | 100 | $ 100 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Federal Tax Authority | ||||
Income Tax Expense (Benefit) [Line Items] | ||||
Net operating loss | 9,000 | |||
Unrecognized tax benefits | 3,000 | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Federal Tax Authority | General Business Tax Credit Carryforward | ||||
Income Tax Expense (Benefit) [Line Items] | ||||
Federal general business credit carryforward | $ 3,000 |
Income taxes - Components of In
Income taxes - Components of Income Taxes Attributable to Net Income for Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal | |||
Federal current taxes | $ 59,873 | $ 44,343 | $ (8,959) |
Federal deferred taxes | 43,666 | 36,664 | 91,412 |
Deferred tax credits, net | 268 | 318 | 0 |
Federal taxes | 103,807 | 81,325 | 82,453 |
State | |||
Current | 16,473 | 2,402 | (5,793) |
Deferred | 3,452 | 4,768 | 12,813 |
Deferred tax credits, net | (37) | 4,526 | 6,106 |
State taxes | 19,888 | 11,696 | 13,126 |
Federal and state taxes | 123,695 | 93,021 | 95,579 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Federal | |||
Federal current taxes | 952 | 0 | 1,108 |
Federal deferred taxes | 70,513 | 68,757 | 68,775 |
Deferred tax credits, net | 268 | 318 | 0 |
Federal taxes | 71,733 | 69,075 | 69,883 |
State | |||
Current | 9,232 | (1,048) | (9,436) |
Deferred | 3,873 | 6,869 | 14,172 |
Deferred tax credits, net | (37) | 4,526 | 6,106 |
State taxes | 13,068 | 10,347 | 10,842 |
Federal and state taxes | $ 84,801 | $ 79,422 | $ 80,725 |
Income taxes - Income Tax Recon
Income taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 130,844 | $ 89,176 | $ 92,959 |
Increase (decrease) resulting from: | |||
State income taxes, net of effect on federal income taxes | 13,915 | 8,097 | 9,073 |
Other, net | (21,064) | (4,252) | (6,453) |
Federal and state taxes | $ 123,695 | $ 93,021 | $ 95,579 |
Effective income tax rate (as a percent) | 33.10% | 36.50% | 36.00% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 80,190 | $ 75,996 | $ 77,126 |
Increase (decrease) resulting from: | |||
State income taxes, net of effect on federal income taxes | 8,494 | 6,726 | 7,047 |
Other, net | (3,883) | (3,300) | (3,448) |
Federal and state taxes | $ 84,801 | $ 79,422 | $ 80,725 |
Effective income tax rate (as a percent) | 37.00% | 36.60% | 36.60% |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities Due to Book/Tax Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Net operating loss | $ 0 | $ 0 |
Allowance for bad debts | 24,500 | 21,781 |
Other | 47,201 | 43,089 |
Total deferred tax assets | 71,701 | 64,870 |
Deferred tax liabilities | ||
Property, plant and equipment | 538,484 | 492,441 |
Repairs deduction | 103,782 | 104,081 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 35,107 | 34,261 |
Deferred RAM and RBA revenues | 26,053 | 26,400 |
Retirement benefits | 48,400 | 42,006 |
Other | 48,681 | 46,558 |
Total deferred tax liabilities | 800,507 | 745,747 |
Net deferred income tax liability | 728,806 | 680,877 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax assets | ||
Net operating loss | 9,158 | 37,283 |
Allowance for bad debts | 2,364 | 1,852 |
Other | 18,720 | 18,386 |
Total deferred tax assets | 30,242 | 57,521 |
Deferred tax liabilities | ||
Property, plant and equipment | 536,885 | 489,884 |
Repairs deduction | 103,782 | 104,081 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 35,107 | 34,261 |
Deferred RAM and RBA revenues | 26,053 | 26,400 |
Retirement benefits | 51,445 | 44,991 |
Other | 10,629 | 12,710 |
Total deferred tax liabilities | 763,901 | 712,327 |
Net deferred income tax liability | $ 733,659 | $ 654,806 |
Income taxes - Changes in Unrec
Income taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | $ 3.6 | $ 0 | $ 0.9 |
Reductions based on tax positions taken during the year | (0.1) | 0 | 0 |
Additions for tax positions of prior years | 0.3 | 3.6 | 0.1 |
Settlements | (1) | ||
Unrecognized tax benefits, at the end of the period | 3.8 | 3.6 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | 3.6 | 0 | 0.5 |
Reductions based on tax positions taken during the year | (0.1) | 0 | 0 |
Additions for tax positions of prior years | 0.3 | 3.6 | 0.1 |
Settlements | 0 | 0 | (0.6) |
Unrecognized tax benefits, at the end of the period | $ 3.8 | $ 3.6 | $ 0 |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | $ 84,000 | $ 83,000 | $ 84,000 |
Income taxes paid | 55,000 | 75,000 | 47,000 |
Income taxes refunded | 45,000 | 55,000 | 24,000 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and other | 14,000 | 5,000 | 43,000 |
Common stock dividends reinvested in HEI common stock (financing) | 17,000 | 0 | 0 |
Loans transferred from held for investment to held for sale (investing) | 24,000 | 0 | 0 |
Real estate acquired in settlement of loans (investing) | 1,000 | 1,000 | 3,000 |
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 1,000 | 5,000 | 0 |
Obligations to fund low income housing investments, net (operating) | 14,000 | 4,000 | 14,000 |
Electric utility property, plant and equipment | |||
AFUDC-equity | 8,325 | 6,928 | 6,771 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | 62,000 | 61,000 | 61,000 |
Income taxes paid | 1,000 | 13,000 | 6,000 |
Income taxes refunded | 20,000 | 12,000 | 8,000 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and other | 14,000 | 5,000 | 40,000 |
Electric utility property, plant and equipment | |||
AFUDC-equity | 8,325 | 6,928 | 6,771 |
Estimated fair value of noncash contributions in aid of construction | 28,000 | 3,000 | 3,000 |
Refinancing of long-term debt (financing) | $ 0 | $ 47,000 | $ 0 |
Regulatory restrictions on n125
Regulatory restrictions on net assets (Details) $ in Millions | Dec. 31, 2016USD ($) |
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 | $ 729 |
American Savings Bank (ASB) | |
Regulatory restrictions on net assets | |
Amount of net assets available for transfer | $ 152 |
Significant group concentrat126
Significant group concentrations of credit risk (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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
Fair value measurements - Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets | ||
Available-for-sale investment securities | $ 1,105,182 | $ 820,648 |
Financial liabilities | ||
Short-term borrowings—other than bank | 0 | 103,063 |
Other bank borrowings | 192,618 | 328,582 |
Carrying or notional amount | ||
Financial assets | ||
Money market funds | 13,085 | 10 |
Available-for-sale investment securities | 1,105,182 | 820,648 |
Stock in Federal Home Loan Bank | 11,218 | 10,678 |
Loans receivable, net | 4,701,977 | 4,570,412 |
Mortgage servicing rights | 9,373 | 8,884 |
Bank-owned life insurance | 143,197 | 138,139 |
Derivative assets | 23,578 | 22,616 |
Financial liabilities | ||
Deposit liabilities | 5,548,929 | 5,025,254 |
Short-term borrowings—other than bank | 103,063 | |
Other bank borrowings | 192,618 | 328,582 |
Long-term debt, net—other than bank | 1,619,019 | 1,578,368 |
Derivative liabilities | 53,852 | 23,269 |
Estimated fair value | ||
Financial assets | ||
Money market funds | 13,085 | 10 |
Available-for-sale investment securities | 1,105,182 | 820,648 |
Stock in Federal Home Loan Bank | 11,218 | 10,678 |
Loans receivable, net | 4,852,826 | 4,749,525 |
Mortgage servicing rights | 13,216 | 11,790 |
Bank-owned life insurance | 143,197 | 138,139 |
Derivative assets | 453 | 385 |
Financial liabilities | ||
Deposit liabilities | 5,546,644 | 5,024,500 |
Short-term borrowings—other than bank | 103,063 | |
Other bank borrowings | 193,991 | 333,392 |
Long-term debt, net—other than bank | 1,704,717 | 1,669,087 |
Derivative liabilities | 952 | 30 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Money market funds | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans receivable, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | |
Other bank borrowings | 0 | 0 |
Long-term debt, net—other than bank | 0 | 0 |
Derivative liabilities | 129 | 15 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Money market funds | 13,085 | 10 |
Available-for-sale investment securities | 1,089,755 | 820,648 |
Stock in Federal Home Loan Bank | 11,218 | 10,678 |
Loans receivable, net | 13,333 | 4,639 |
Mortgage servicing rights | 0 | 0 |
Bank-owned life insurance | 143,197 | 138,139 |
Derivative assets | 453 | 385 |
Financial liabilities | ||
Deposit liabilities | 5,546,644 | 5,024,500 |
Short-term borrowings—other than bank | 103,063 | |
Other bank borrowings | 193,991 | 333,392 |
Long-term debt, net—other than bank | 1,704,717 | 1,669,087 |
Derivative liabilities | 823 | 15 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Money market funds | 0 | 0 |
Available-for-sale investment securities | 15,427 | 0 |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans receivable, net | 4,839,493 | 4,744,886 |
Mortgage servicing rights | 13,216 | 11,790 |
Bank-owned life insurance | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings—other than bank | 0 | |
Other bank borrowings | 0 | 0 |
Long-term debt, net—other than bank | 0 | 0 |
Derivative liabilities | 0 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Carrying or notional amount | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,319,260 | 1,278,702 |
Derivative liabilities | 20,734 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,399,490 | 1,363,766 |
Derivative liabilities | 743 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 1 | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 0 | 0 |
Derivative liabilities | 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 2 | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 1,399,490 | 1,363,766 |
Derivative liabilities | 743 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 3 | ||
Financial liabilities | ||
Long-term debt, net—other than bank | 0 | $ 0 |
Derivative liabilities | $ 0 |
Fair value measurements - Fa128
Fair value measurements - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | $ 1,105,182 | $ 820,648 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Weighted average discount rate | 2.517% | |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | $ 897,474 | 607,689 |
U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 192,281 | 212,959 |
Mortgage revenue bond | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 15,427 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at December 31, 2015 | 0 | |
Principal payments received | 0 | |
Purchases | 15,427 | |
Unrealized gain (loss) included in other comprehensive income | 0 | |
Balance at December 31, 2016 | 15,427 | 0 |
Fair value measurements on a recurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 129 | 15 |
Fair value measurements on a recurring basis | Level 1 | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 129 | 15 |
Fair value measurements on a recurring basis | Level 1 | Foreign Exchange Forward | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Other | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Money market funds | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | 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 | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | 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 | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | Mortgage revenue bond | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 453 | 385 |
Derivative liabilities | 823 | 15 |
Fair value measurements on a recurring basis | Level 2 | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 445 | 384 |
Derivative liabilities | 24 | 0 |
Fair value measurements on a recurring basis | Level 2 | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 8 | 1 |
Derivative liabilities | 56 | 15 |
Fair value measurements on a recurring basis | Level 2 | Foreign Exchange Forward | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 743 | 0 |
Fair value measurements on a recurring basis | Level 2 | Other | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Money market funds | 13,085 | 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 | 1,089,755 | 820,648 |
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 | 897,474 | 607,689 |
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 | 192,281 | 212,959 |
Fair value measurements on a recurring basis | Level 2 | Bank | Mortgage revenue bond | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Foreign Exchange Forward | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative liabilities | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Other | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Money market funds | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | 15,427 | 0 |
Fair value measurements on a recurring basis | Level 3 | 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 | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | 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 | 0 | 0 |
Fair value measurements on a recurring basis | Level 3 | Bank | Mortgage revenue bond | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale investment securities, at fair value | $ 15,427 | $ 0 |
Fair value measurements - Fa129
Fair value measurements - Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 4,852,826 | $ 4,749,525 |
Level 1 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | 0 |
Level 2 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 13,333 | 4,639 |
Level 3 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 4,839,493 | 4,744,886 |
Fair value measurements on a nonrecurring basis | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 2,767 | 178 |
Real estate acquired in settlement of loans | 1,189 | 1,030 |
Fair value measurements on a nonrecurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | 0 |
Real estate acquired in settlement of loans | 0 | 0 |
Fair value measurements on a nonrecurring basis | Level 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 0 | 0 |
Real estate acquired in settlement of loans | 0 | 0 |
Fair value measurements on a nonrecurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 2,767 | 178 |
Real estate acquired in settlement of loans | $ 1,189 | $ 1,030 |
Fair value measurements - Quant
Fair value measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Residential loan | Sales price | ||
Fair value measurements | ||
Fair value | $ 2,468 | |
Residential loan | Sales price | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 95.00% | |
Residential loan | Sales price | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 100.00% | |
Residential loan | Sales price | Weighted Average | ||
Fair value measurements | ||
Appraised value (as a percent) | 97.00% | |
Residential loan | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 287 | $ 50 |
Selling cost (as a percent) | 7.00% | 7.00% |
Residential loan | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value (as a percent) | 42.00% | |
Residential loan | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value (as a percent) | 65.00% | |
Residential loan | Fair value of property or collateral | Weighted Average | ||
Fair value measurements | ||
Appraised value (as a percent) | 61.00% | |
Home equity line of credit | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 12 | $ 128 |
Selling cost (as a percent) | 7.00% | 7.00% |
Loans | ||
Fair value measurements | ||
Fair value | $ 2,767 | $ 178 |
Real estate acquired in settlement of loans | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 1,189 | $ 1,030 |
Selling cost (as a 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% |
Other related-party transact131
Other related-party transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Hawaii Medical Service Association (HMSA) | Gross costs | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | $ 28 | $ 30 | $ 25 |
Hawaii Medical Service Association (HMSA) | Gross costs | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 22 | 23 | 20 |
Hawaii Medical Service Association (HMSA) | Net expense | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 20 | 21 | 18 |
Hawaii Medical Service Association (HMSA) | Net expense | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 14 | 14 | 13 |
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 (unaud132
Quarterly information (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 19, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Revenues | $ 617,395,000 | $ 646,055,000 | $ 566,244,000 | $ 550,960,000 | $ 624,032,000 | $ 717,176,000 | $ 623,912,000 | $ 637,862,000 | $ 2,380,654,000 | $ 2,602,982,000 | $ 3,239,542,000 | |
Operating income | 88,427,000 | 105,442,000 | 85,455,000 | 68,851,000 | 83,222,000 | 97,095,000 | 72,730,000 | 69,506,000 | 348,175,000 | 322,553,000 | 332,600,000 | |
Net income | 45,107,000 | 127,613,000 | 44,601,000 | 32,825,000 | 42,793,000 | 51,144,000 | 35,491,000 | 32,339,000 | 250,146,000 | 161,767,000 | 170,019,000 | |
Net income for common stock | $ 44,634,000 | $ 127,142,000 | $ 44,128,000 | $ 32,352,000 | $ 42,320,000 | $ 50,673,000 | $ 35,018,000 | $ 31,866,000 | $ 248,256,000 | $ 159,877,000 | $ 168,129,000 | |
Basic earnings per common share (in dollars per share) | $ 0.41 | $ 1.17 | $ 0.41 | $ 0.30 | $ 0.39 | $ 0.47 | $ 0.33 | $ 0.31 | $ 2.30 | $ 1.50 | $ 1.65 | |
Diluted earnings per common share (in dollars per share) | 0.41 | 1.17 | 0.41 | 0.30 | 0.39 | 0.47 | 0.33 | 0.31 | 2.29 | 1.50 | 1.63 | |
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) | 34.08 | 33.57 | 34.98 | 32.69 | 30.29 | 31.28 | 32.58 | 34.86 | 34.98 | 34.86 | ||
Low end of range (in dollars per share) | $ 28.31 | $ 29.14 | $ 31.35 | $ 27.30 | $ 27.45 | $ 27.02 | $ 29.62 | $ 31.75 | $ 27.30 | $ 27.02 | ||
NextEra Energy, Inc Merger | ||||||||||||
Market price per common share | ||||||||||||
Merger contract termination fee | $ 90,000,000 | $ 90,000,000 | ||||||||||
Merger termination, merger expenses during the quarter | 64,000,000 | $ (2,000,000) | $ (2,000,000) | $ (2,000,000) | $ (2,000,000) | $ (7,000,000) | $ (5,000,000) | $ (6,000,000) | $ (16,000,000) | $ (5,000,000) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Revenues | $ 544,668,000 | 572,253,000 | 495,395,000 | 482,052,000 | 555,434,000 | 648,127,000 | 558,163,000 | 573,442,000 | 2,094,368,000 | 2,335,166,000 | 2,987,323,000 | |
Operating income | 68,644,000 | 89,812,000 | 70,686,000 | 55,326,000 | 67,662,000 | 82,657,000 | 66,161,000 | 57,636,000 | 284,468,000 | 274,116,000 | 275,768,000 | |
Net income | 34,618,000 | 47,472,000 | 36,356,000 | 25,866,000 | 33,492,000 | 43,504,000 | 33,340,000 | 27,373,000 | 144,312,000 | 137,709,000 | 139,636,000 | |
Net income for common stock | $ 34,119,000 | $ 46,974,000 | $ 35,857,000 | $ 25,367,000 | $ 32,993,000 | $ 43,006,000 | $ 32,841,000 | $ 26,874,000 | $ 142,317,000 | $ 135,714,000 | $ 137,641,000 |
SCHEDULE I - CONDENSED FINAN133
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- BALANCE SHEETS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assets | ||||
Cash and cash equivalents | $ 278,452,000 | $ 300,478,000 | $ 175,542,000 | $ 220,036,000 |
Accounts receivable | 237,950,000 | 242,766,000 | ||
Property, plant and equipment, net | 4,603,465,000 | 4,377,658,000 | ||
Other assets | 447,621,000 | 480,457,000 | ||
Total assets | 12,425,506,000 | 11,782,018,000 | 11,177,143,000 | |
Liabilities | ||||
Accounts payable | 143,279,000 | 138,523,000 | ||
Long-term debt | 1,619,019,000 | 1,578,368,000 | ||
Other | 473,512,000 | 471,828,000 | ||
Total liabilities | 10,324,460,000 | 9,820,085,000 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,660,910,000 | 1,629,136,000 | ||
Retained earnings | 438,972,000 | 324,766,000 | ||
Accumulated other comprehensive loss | (33,129,000) | (26,262,000) | ||
Total shareholders’ equity | 2,066,753,000 | 1,927,640,000 | 1,790,573,000 | 1,726,406,000 |
Total capitalization and liabilities | 12,425,506,000 | 11,782,018,000 | ||
Less unamortized debt issuance costs | (241,000) | $ (334,000) | ||
Aggregate principal payments | ||||
2,017 | 125,000,000 | |||
2,018 | 125,000,000 | |||
2,019 | 0 | |||
2,020 | 96,000,000 | |||
2,021 | $ 50,000,000 | |||
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 | 108,583,413 | 107,460,406 | ||
Common stock, outstanding shares | 108,583,413 | 107,460,406 | ||
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%, due 2017 | LIBOR | ||||
Shareholders' equity | ||||
Line of credit facility basis point spread (as a percent) | 0.75% | |||
HEI term loan LIBOR .75%, due 2018 | LIBOR | ||||
Shareholders' equity | ||||
Line of credit facility basis point spread (as a percent) | 0.75% | |||
Hawaiian Electric Industries, Inc. | ||||
Assets | ||||
Cash and cash equivalents | $ 14,924,000 | $ 55,116,000 | $ 276,000 | $ 571,000 |
Accounts receivable | 3,788,000 | 5,459,000 | ||
Property, plant and equipment, net | 4,143,000 | 4,514,000 | ||
Deferred income tax assets | 17,280,000 | 16,715,000 | ||
Other assets | 9,858,000 | 11,650,000 | ||
Investments in subsidiaries, at equity | 2,383,405,000 | 2,293,679,000 | ||
Total assets | 2,433,398,000 | 2,387,133,000 | ||
Liabilities | ||||
Accounts payable | 379,000 | 1,254,000 | ||
Interest payable | 1,735,000 | 2,450,000 | ||
Notes payable to subsidiaries | 5,373,000 | 5,946,000 | ||
Commercial paper | 0 | 103,063,000 | ||
Long-term debt | 299,759,000 | 299,666,000 | ||
Retirement benefits liability | 33,939,000 | 31,704,000 | ||
Other | 25,460,000 | 15,410,000 | ||
Total liabilities | 366,645,000 | 459,493,000 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,660,910,000 | 1,629,136,000 | ||
Retained earnings | 438,972,000 | 324,766,000 | ||
Accumulated other comprehensive loss | (33,129,000) | (26,262,000) | ||
Total shareholders’ equity | 2,066,753,000 | 1,927,640,000 | ||
Total capitalization and liabilities | 2,433,398,000 | 2,387,133,000 | ||
Less unamortized debt issuance costs | (241,000) | $ (334,000) | ||
Aggregate principal payments | ||||
2,017 | 125,000,000 | |||
2,018 | 75,000,000 | |||
2,019 | 0 | |||
2,020 | 0 | |||
2,021 | $ 50,000,000 | |||
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 | 108,583,413 | 107,460,406 | ||
Common stock, outstanding shares | 108,583,413 | 107,460,406 | ||
Hawaiian Electric Industries, Inc. | HEI Term loan LIBOR .75%, due 2017 | ||||
Liabilities | ||||
Long-term debt | $ 125,000,000 | $ 125,000,000 | ||
Hawaiian Electric Industries, Inc. | HEI Term loan LIBOR .75%, due 2017 | LIBOR | ||||
Shareholders' equity | ||||
Line of credit facility basis point spread (as a percent) | 75.00% | |||
Hawaiian Electric Industries, Inc. | HEI term loan LIBOR .75%, due 2018 | ||||
Liabilities | ||||
Long-term debt | $ 75,000,000 | 0 | ||
Hawaiian Electric Industries, Inc. | HEI term loan LIBOR .75%, due 2018 | LIBOR | ||||
Shareholders' equity | ||||
Line of credit facility basis point spread (as a percent) | 75.00% | |||
Hawaiian Electric Industries, Inc. | HEI senior note 4.41%, paid 2016 | ||||
Liabilities | ||||
Long-term debt | $ 0 | 75,000,000 | ||
Shareholders' equity | ||||
Interest rate of medium-term notes (as a percent) | 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% | |||
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% |
SCHEDULE I - CONDENSED FINAN134
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Expenses: | |||||||||||
Depreciation of property, plant and equipment | $ 194,273 | $ 183,966 | $ 172,762 | ||||||||
Total expenses | 2,032,479 | 2,280,429 | 2,906,942 | ||||||||
Merger termination fee | 90,000 | 0 | 0 | ||||||||
Interest expense, net | 88,558 | 88,476 | 87,160 | ||||||||
Income before income taxes | 373,841 | 254,788 | 265,598 | ||||||||
Income tax benefits | (123,695) | (93,021) | (95,579) | ||||||||
Net income | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | $ 42,793 | $ 51,144 | $ 35,491 | $ 32,339 | 250,146 | 161,767 | 170,019 |
Hawaiian Electric Industries, Inc. | |||||||||||
Revenues | |||||||||||
Revenues | 647 | 327 | 303 | ||||||||
Equity in income of subsidiaries | 199,485 | 190,033 | 188,727 | ||||||||
Expenses: | |||||||||||
Operating, administrative and general | 18,701 | 34,350 | 20,921 | ||||||||
Depreciation of property, plant and equipment | 566 | 576 | 575 | ||||||||
Taxes, other than income taxes | 4,726 | 440 | 469 | ||||||||
Total expenses | 23,993 | 35,366 | 21,965 | ||||||||
Income before merger termination fee, interest expense and income (taxes) benefits | 176,139 | 154,994 | 167,065 | ||||||||
Merger termination fee | 90,000 | 0 | 0 | ||||||||
Income before interest expense and income (taxes) benefits | 266,139 | 154,994 | 167,065 | ||||||||
Interest expense, net | 9,037 | 10,788 | 11,599 | ||||||||
Income before income taxes | 257,102 | 144,206 | 155,466 | ||||||||
Income tax benefits | (8,846) | 15,671 | 13,047 | ||||||||
Net income | $ 248,256 | $ 159,877 | $ 168,513 |
SCHEDULE I - CONDENSED FINAN135
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT- STATEMENT OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 495,254,000 | $ 355,880,000 | $ 325,420,000 |
Cash flows from investing activities | |||
Capital expenditures | (330,043,000) | (363,804,000) | (364,826,000) |
Other | 856,000 | 7,940,000 | 1,125,000 |
Net cash used in investing activities | (736,465,000) | (705,724,000) | (592,449,000) |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (103,063,000) | (15,909,000) | 13,490,000 |
Proceeds from issuance of long-term debt | 115,000,000 | 80,000,000 | 125,000,000 |
Repayment of long-term debt | (75,000,000) | 0 | (111,400,000) |
Excess tax benefits from share-based payment arrangements | 404,000 | 978,000 | 277,000 |
Net proceeds from issuance of common stock | 13,220,000 | 104,435,000 | 26,898,000 |
Common stock dividends | (117,274,000) | (131,765,000) | (126,458,000) |
Other | (219,000) | (833,000) | (456,000) |
Net cash used in financing activities | 219,185,000 | 474,780,000 | 222,535,000 |
Net increase (decrease) in cash and equivalents | (22,026,000) | 124,936,000 | (44,494,000) |
Cash and cash equivalents, January 1 | 300,478,000 | 175,542,000 | 220,036,000 |
Cash and cash equivalents, December 31 | 278,452,000 | 300,478,000 | 175,542,000 |
Issuance of common stock: Dividend reinvestment and stock purchase plan | 26,844,000 | 2,461,000 | |
Common stock | |||
Cash flows from financing activities | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 26,844,000 | 2,461,000 | |
Hawaiian Electric Industries, Inc. | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 191,306,000 | 97,141,000 | 100,794,000 |
Cash flows from investing activities | |||
Capital expenditures | (212,000) | (173,000) | (74,000) |
Investments in subsidiaries | (24,000,000) | 0 | (40,000,000) |
Other | 1,000 | 0 | 0 |
Net cash used in investing activities | (24,211,000) | (173,000) | (40,074,000) |
Cash flows from financing activities | |||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | (618,000) | 87,000 | (222,000) |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (103,063,000) | (15,909,000) | 13,490,000 |
Proceeds from issuance of long-term debt | 75,000,000 | 0 | 125,000,000 |
Repayment of long-term debt | (75,000,000) | 0 | (100,000,000) |
Excess tax benefits from share-based payment arrangements | 404,000 | 978,000 | 277,000 |
Net proceeds from issuance of common stock | 13,220,000 | 104,435,000 | 26,898,000 |
Common stock dividends | (117,274,000) | (131,765,000) | (126,458,000) |
Other | 44,000 | 46,000 | 0 |
Net cash used in financing activities | (207,287,000) | (42,128,000) | (61,015,000) |
Net increase (decrease) in cash and equivalents | (40,192,000) | 54,840,000 | (295,000) |
Cash and cash equivalents, January 1 | 55,116,000 | 276,000 | 571,000 |
Cash and cash equivalents, December 31 | 14,924,000 | 55,116,000 | 276,000 |
Cash dividends received from subsidiaries | 130,000,000 | 121,000,000 | 124,000,000 |
Hawaiian Electric Industries, Inc. | Common stock | |||
Cash flows from financing activities | |||
Issuance of common stock: Dividend reinvestment and stock purchase plan | 17,000,000 | 0 | 0 |
Hawaiian Electric Industries, Inc. | ASB Hawaii, Inc. | Consolidated subsidiary | |||
Cash flows from financing activities | |||
Accounts receivable reduction | 2,300,000 | 2,300,000 | 2,400,000 |
HEI notes payable increase to ASHI | $ 2,300,000 | $ 300,000 | $ 2,500,000 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for uncollectible accounts – electric utility | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | $ 1,699 | $ 1,959 | $ 2,329 |
Charged to costs and expenses | 2,383 | 3,653 | 1,384 |
Charged to other accounts | 877 | 977 | 1,613 |
Deductions | 3,838 | 4,890 | 3,367 |
Balance at end of period | 1,121 | 1,699 | 1,959 |
Allowance for uncollectible interest – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 1,679 | 1,514 | 1,661 |
Charged to costs and expenses | 0 | 0 | 0 |
Charged to other accounts | 155 | 165 | 0 |
Deductions | 0 | 0 | 147 |
Balance at end of period | 1,834 | 1,679 | 1,514 |
Allowance for losses for loans receivable – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 50,038 | 45,618 | 40,116 |
Charged to costs and expenses | 16,763 | 6,275 | 6,126 |
Charged to other accounts | 2,977 | 4,571 | 4,926 |
Deductions | 14,245 | 6,426 | 5,550 |
Balance at end of period | 55,533 | 50,038 | 45,618 |
Allowance for mortgage-servicing assets – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 0 | 209 | 251 |
Charged to costs and expenses | 0 | 53 | |
Charged to other accounts | (205) | 0 | |
Deductions | 4 | 95 | |
Balance at end of period | 0 | 209 | |
Deferred tax valuation allowance – HEI | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 54 | 45 | 278 |
Charged to costs and expenses | 0 | 9 | 17 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 16 | 0 | 250 |
Balance at end of period | $ 38 | $ 54 | $ 45 |