Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 13, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
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 | $ 3,522,474,037 | ||
Entity Common Stock, Shares Outstanding | 108,841,157 | ||
Document Fiscal Year Focus | 2,017 | ||
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, 2017 | ||
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 | 16,142,216 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Revenues | $ 2,555,625 | $ 2,380,654 | $ 2,602,982 |
Expenses | |||
Total expenses | 2,217,334 | 2,032,479 | 2,280,429 |
Operating income (loss) | |||
Operating income | 338,291 | 348,175 | 322,553 |
Merger termination fee | 0 | 90,000 | 0 |
Interest expense, net – other than on deposit liabilities and other bank borrowings | (78,972) | (75,803) | (77,150) |
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 |
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 |
Income before income taxes | 276,580 | 373,841 | 254,788 |
Income taxes | 109,393 | 123,695 | 93,021 |
Net income (loss) | 167,187 | 250,146 | 161,767 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 |
Net income for common stock | $ 165,297 | $ 248,256 | $ 159,877 |
Basic earnings per common share (in dollars per share) | $ 1.52 | $ 2.30 | $ 1.50 |
Diluted earnings per common share (in dollars per share) | $ 1.52 | $ 2.29 | $ 1.50 |
Weighted-average number of common shares outstanding (in shares) | 108,749 | 108,102 | 106,418 |
Net effect of potentially dilutive shares (in shares) | 184 | 207 | 303 |
Weighted-average shares assuming dilution (in shares) | 108,933 | 108,309 | 106,721 |
Electric utility | |||
Revenues | |||
Revenues | $ 2,257,566 | $ 2,094,368 | $ 2,335,166 |
Expenses | |||
Total expenses | 2,000,045 | 1,809,900 | 2,061,050 |
Operating income (loss) | |||
Operating income | 257,521 | 284,468 | 274,116 |
Income before income taxes | 205,145 | 229,113 | 217,131 |
Income taxes | 83,199 | 84,801 | 79,422 |
Net income (loss) | 121,946 | 144,312 | 137,709 |
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 |
Net income for common stock | 119,951 | 142,317 | 135,714 |
Bank | |||
Revenues | |||
Revenues | 297,640 | 285,924 | 267,733 |
Expenses | |||
Total expenses | 198,924 | 198,572 | 183,921 |
Operating income (loss) | |||
Operating income | 98,716 | 87,352 | 83,812 |
Income before income taxes | 98,716 | 87,352 | 83,812 |
Income taxes | 31,719 | 30,073 | 29,082 |
Net income (loss) | 66,997 | 57,279 | 54,730 |
Preferred stock dividends of subsidiaries | 0 | 0 | 0 |
Net income for common stock | 66,997 | 57,279 | 54,730 |
Other | |||
Revenues | |||
Revenues | 419 | 362 | 83 |
Expenses | |||
Total expenses | 18,365 | 24,007 | 35,458 |
Operating income (loss) | |||
Operating income | (17,946) | (23,645) | (35,375) |
Income before income taxes | (27,281) | 57,376 | (46,155) |
Income taxes | (5,525) | 8,821 | (15,483) |
Net income (loss) | (21,756) | 48,555 | (30,672) |
Preferred stock dividends of subsidiaries | (105) | (105) | (105) |
Net income for common stock | $ (21,651) | $ 48,660 | $ (30,567) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income for common stock | $ 32,370 | $ 60,073 | $ 38,661 | $ 34,193 | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 165,297 | $ 248,256 | $ 159,877 |
Net unrealized losses on available-for sale investment securities: | |||||||||||
Net unrealized losses on available-for sale investment securities arising during the period, net of tax benefits of $2,886, $3,763 and $1,541 for 2017, 2016 and 2015, respectively | (4,370) | (5,699) | (2,334) | ||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238 and nil for 2017, 2016 and 2015, respectively | 0 | (360) | 0 | ||||||||
Derivatives qualified as cash flow hedges: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | (281) | 0 | ||||||||
Reclassification adjustment to net income, net of (taxes) benefits of $289, $(76) and $150 for 2017, 2016 and 2015, respectively | 454 | (119) | 235 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 65,531 | (43,510) | 5,889 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 15,737 | 14,518 | 22,465 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (78,724) | 28,584 | (25,139) | ||||||||
Other comprehensive income (loss), net of taxes | (1,372) | (6,867) | 1,116 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 163,925 | $ 241,389 | $ 160,993 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on securities arising during the period, tax (benefits) | $ (2,886) | $ (3,763) | $ (1,541) |
Reclassification adjustment for net realized gains included in net income, taxes | 0 | 238 | 0 |
Foreign currency hedge net unrealized loss, (taxes) benefits | 0 | 179 | 0 |
Reclassification adjustment to net income, (taxes) benefits | 289 | (76) | 150 |
Net gains (losses) arising during the period, (taxes) benefits | (41,129) | 27,703 | (3,753) |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (10,041) | (9,267) | (14,344) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | $ 49,523 | $ (18,206) | $ 16,011 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 261,881 | $ 278,452 |
Accounts receivable and unbilled revenues, net | 263,209 | 237,950 |
Available-for-sale investment securities, at fair value | 1,401,198 | 1,105,182 |
Held-to-maturity investment securities, at amortized cost | 44,515 | 0 |
Stock in Federal Home Loan Bank, at cost | 9,706 | 11,218 |
Loans receivable held for investment, net | 4,617,131 | 4,683,160 |
Loans held for sale, at lower of cost or fair value | 11,250 | 18,817 |
Property, plant and equipment, net | ||
Land | 106,435 | 97,423 |
Plant and equipment | 7,140,427 | 6,727,935 |
Construction in progress | 332,349 | 222,455 |
Property, plant and equipment, gross | 7,579,211 | 7,047,813 |
Less – accumulated depreciation | (2,553,295) | (2,444,348) |
Total property, plant and equipment, net | 5,025,916 | 4,603,465 |
Regulatory assets | 869,297 | 957,451 |
Other | 513,535 | 447,621 |
Goodwill | 82,190 | 82,190 |
Total assets | 13,099,828 | 12,425,506 |
Liabilities | ||
Accounts payable | 193,714 | 143,279 |
Interest and dividends payable | 25,837 | 25,225 |
Deposit liabilities | 5,890,597 | 5,548,929 |
Short-term borrowings—other than bank | 117,945 | 0 |
Other bank borrowings | 190,859 | 192,618 |
Long-term debt, net—other than bank | 1,683,797 | 1,619,019 |
Deferred income taxes | 388,430 | 728,806 |
Regulatory liabilities | 880,770 | 410,693 |
Contributions in aid of construction | 565,668 | 543,525 |
Defined benefit pension and other postretirement benefit plans liability | 509,514 | 638,854 |
Other | 521,018 | 473,512 |
Total liabilities | 10,968,149 | 10,324,460 |
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: 108,787,807 shares and 108,583,413 shares at December 31, 2017 and 2016, respectively | 1,662,491 | 1,660,910 |
Retained earnings | 476,836 | 438,972 |
Accumulated other comprehensive loss, net of tax benefits | ||
Net unrealized losses on securities | (14,951) | (7,931) |
Unrealized losses on derivatives | 0 | (454) |
Retirement benefit plans | (26,990) | (24,744) |
Accumulated other comprehensive loss, net of tax benefits | (41,941) | (33,129) |
Total shareholders’ equity | 2,097,386 | 2,066,753 |
Total capitalization and liabilities | $ 13,099,828 | $ 12,425,506 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 108,787,807 | 108,583,413 |
Common stock, outstanding shares | 108,787,807 | 108,583,413 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Retained earnings | AOCI |
Beginning 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 | ||
Issuance of common stock: Partial settlement of equity forward | 109,183 | $ 109,183 | ||
Issuance of common stock: 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 | 107,460,000 | |||
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 | ||
Increase (decrease) in stockholders' equity | ||||
Net income for common stock | $ 165,297 | 165,297 | ||
Other comprehensive income (loss), net of tax benefits | (1,372) | (1,372) | ||
Reclass of AOCI for tax rate reduction impact | 0 | 7,440 | (7,440) | |
Issuance of common stock: Retirement savings and other plans | 4,664 | $ 4,664 | ||
Issuance of common stock: Retirement savings and other plans (in shares) | 205,000 | |||
Issuance of common stock: Expenses and other, net | (3,083) | $ (3,083) | ||
Common stock dividends | (134,873) | (134,873) | ||
Ending Balance at Dec. 31, 2017 | $ 2,097,386 | $ 1,662,491 | $ 476,836 | $ (41,941) |
Balance (in shares) at Dec. 31, 2017 | 108,787,807 | 108,788,000 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 167,187 | $ 250,146 | $ 161,767 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 200,658 | 194,273 | 183,966 |
Other amortization | 21,340 | 10,473 | 11,619 |
Provision for loan losses | 10,901 | 16,763 | 6,275 |
Impairment of utility assets | 0 | 0 | 6,021 |
Loans receivable originated and purchased, held for sale | (115,104) | (236,769) | (268,279) |
Proceeds from sale of loans receivable, held for sale | 127,951 | 236,062 | 275,296 |
Deferred income taxes | 37,835 | 47,118 | 41,432 |
Share-based compensation expense | 5,404 | 4,789 | 6,542 |
Allowance for equity funds used during construction | (12,483) | (8,325) | (6,928) |
Other | (3,324) | (12,422) | 1,672 |
Changes in assets and liabilities | |||
Decrease (increase) in accounts receivable and unbilled revenues, net | (12,875) | (898) | 62,304 |
Decrease (increase) in fuel oil stock | (20,794) | 4,786 | 34,830 |
Increase in regulatory assets | (17,256) | (18,273) | (24,182) |
Increase (decrease) in accounts, interest and dividends payable | 34,985 | (9,643) | (52,663) |
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | 20,685 | 39,109 | (42,596) |
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 882 | 1,587 | 852 |
Change in other assets and liabilities | (25,551) | (23,118) | (41,070) |
Net cash provided by operating activities | 420,441 | 495,658 | 356,858 |
Cash flows from investing activities | |||
Available-for-sale investment securities purchased | (528,379) | (533,956) | (429,262) |
Principal repayments on available-for-sale investment securities | 220,231 | 219,845 | 153,271 |
Proceeds from sale of available-for-sale investment securities | 0 | 16,423 | 0 |
Purchases of held-to-maturity investment securities | (44,515) | 0 | 0 |
Purchase of stock from Federal Home Loan Bank | (2,868) | (7,773) | (1,600) |
Redemption of stock from Federal Home Loan Bank | 4,380 | 7,233 | 60,223 |
Net decrease (increase) in loans held for investment | 15,887 | (194,042) | (181,343) |
Proceeds from sale of commercial loans | 36,760 | 52,299 | 0 |
Proceeds from sale of real estate acquired in settlement of loans | 1,019 | 829 | 1,329 |
Proceeds from sale of real estate held for sale | 0 | 1,764 | 7,283 |
Capital expenditures | (495,187) | (330,043) | (363,804) |
Contributions in aid of construction | 64,733 | 30,100 | 40,239 |
Contributions to low income housing investments | (17,505) | 0 | 0 |
Acquisition of business | (76,323) | 0 | 0 |
Other | 6,468 | 856 | 7,940 |
Net cash used in investing activities | (815,299) | (736,465) | (705,724) |
Cash flows from financing activities | |||
Net increase in deposit liabilities | 341,668 | 523,675 | 401,839 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 67,992 | (103,063) | (15,909) |
Proceeds from issuance of short-term debt | 125,000 | 0 | 0 |
Repayment of short-term debt | (75,000) | 0 | 0 |
Net increase (decrease) in retail repurchase agreements | 61,776 | (43,601) | 37,925 |
Proceeds from other bank borrowings | 59,500 | 180,835 | 50,000 |
Repayments of other bank borrowings | (123,034) | (272,902) | (50,000) |
Proceeds from issuance of long-term debt | 532,325 | 115,000 | 80,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (465,000) | (75,000) | 0 |
Withheld shares for employee taxes on vested share-based compensation | (3,828) | (2,416) | (3,260) |
Net proceeds from issuance of common stock | 0 | 13,220 | 104,435 |
Common stock dividends | (134,873) | (117,274) | (131,765) |
Preferred stock dividends of subsidiaries | (1,890) | (1,890) | (1,890) |
Other | (6,349) | 2,197 | 2,427 |
Net cash used in financing activities | 378,287 | 218,781 | 473,802 |
Net increase (decrease) in cash and equivalents | (16,571) | (22,026) | 124,936 |
Cash and cash equivalents, January 1 | 278,452 | 300,478 | 175,542 |
Cash and cash equivalents, December 31 | $ 261,881 | $ 278,452 | $ 300,478 |
Consolidated Statements of In10
Consolidated Statements of Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 658,597 | $ 673,185 | $ 632,281 | $ 591,562 | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 2,555,625 | $ 2,380,654 | $ 2,602,982 |
Expenses | |||||||||||
Purchased power | 587,000 | 563,000 | 594,000 | ||||||||
Total expenses | 2,217,334 | 2,032,479 | 2,280,429 | ||||||||
Operating income | 84,988 | 109,545 | 75,896 | 67,862 | 88,427 | 105,442 | 85,455 | 68,851 | 338,291 | 348,175 | 322,553 |
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 | ||||||||
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 | ||||||||
Income before income taxes | 276,580 | 373,841 | 254,788 | ||||||||
Income taxes | 109,393 | 123,695 | 93,021 | ||||||||
Net income (loss) | 32,843 | 60,544 | 39,134 | 34,666 | 45,107 | 127,613 | 44,601 | 32,825 | 167,187 | 250,146 | 161,767 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 32,370 | 60,073 | 38,661 | 34,193 | 44,634 | 127,142 | 44,128 | 32,352 | 165,297 | 248,256 | 159,877 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Revenues | 583,311 | 598,769 | 556,875 | 518,611 | 544,668 | 572,253 | 495,395 | 482,052 | 2,257,566 | 2,094,368 | 2,335,166 |
Expenses | |||||||||||
Fuel oil | 587,768 | 454,704 | 654,600 | ||||||||
Purchased power | 586,634 | 562,740 | 594,096 | ||||||||
Other operation and maintenance | 417,910 | 405,533 | 413,089 | ||||||||
Depreciation | 192,784 | 187,061 | 177,380 | ||||||||
Taxes, other than income taxes | 214,949 | 199,862 | 221,885 | ||||||||
Total expenses | 2,000,045 | 1,809,900 | 2,061,050 | ||||||||
Operating income | 66,460 | 87,076 | 55,047 | 48,938 | 68,644 | 89,812 | 70,686 | 55,326 | 257,521 | 284,468 | 274,116 |
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 | ||||||||
Interest expense and other charges, net | (69,637) | (66,824) | (66,370) | ||||||||
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 | ||||||||
Income before income taxes | 205,145 | 229,113 | 217,131 | ||||||||
Income taxes | 83,199 | 84,801 | 79,422 | ||||||||
Net income (loss) | 25,854 | 47,985 | 26,143 | 21,964 | 34,618 | 47,472 | 36,356 | 25,866 | 121,946 | 144,312 | 137,709 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 121,031 | 143,397 | 136,794 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 25,355 | $ 47,487 | $ 25,644 | $ 21,465 | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | $ 119,951 | $ 142,317 | $ 135,714 |
Consolidated Statements of Co11
Consolidated Statements of Comprehensive Income - HECO - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income for common stock | $ 32,370 | $ 60,073 | $ 38,661 | $ 34,193 | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 165,297 | $ 248,256 | $ 159,877 |
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 nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | (281) | 0 | ||||||||
Reclassification adjustment to net income, net of taxes of $289, $110 and nil for 2017, 2016 and 2015, respectively | 454 | (119) | 235 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains arising during the period, net of taxes of nil, nil and $59 for 2017, 2016 and 2015, respectively | 65,531 | (43,510) | 5,889 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $812, $566 and $1,011 for 2017, 2016 and 2015, respectively | 15,737 | 14,518 | 22,465 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (78,724) | 28,584 | (25,139) | ||||||||
Other comprehensive income (loss), net of taxes | (1,372) | (6,867) | 1,116 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 163,925 | 241,389 | 160,993 | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Net income for common stock | $ 25,355 | $ 47,487 | $ 25,644 | $ 21,465 | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | 119,951 | 142,317 | 135,714 |
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 nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | (281) | 0 | ||||||||
Reclassification adjustment to net income, net of taxes of $289, $110 and nil for 2017, 2016 and 2015, respectively | 454 | (173) | 0 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains arising during the period, net of taxes of nil, nil and $59 for 2017, 2016 and 2015, respectively | 63,105 | (42,631) | 5,638 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $812, $566 and $1,011 for 2017, 2016 and 2015, respectively | 14,477 | 13,254 | 20,381 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (78,724) | 28,584 | (25,139) | ||||||||
Other comprehensive income (loss), net of taxes | (688) | (1,247) | 880 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 119,263 | $ 141,070 | $ 136,594 |
Consolidated Statements of Co12
Consolidated Statements of Comprehensive Income (Parenthetical) - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign currency hedge net unrealized loss, (taxes) benefits | $ 0 | $ 179 | $ 0 |
Reclassification adjustment to net income, tax (benefits) | (289) | 76 | (150) |
Net gains (losses) arising during the period, (taxes) benefits | (41,129) | 27,703 | (3,753) |
Amortization of transition obligation, prior service credit and net losses recognized during the period, tax benefits | (10,041) | (9,267) | (14,344) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | 49,523 | (18,206) | 16,011 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Foreign currency hedge net unrealized loss, (taxes) benefits | 0 | 179 | 0 |
Reclassification adjustment to net income, tax (benefits) | 289 | 110 | 0 |
Net gains (losses) arising during the period, (taxes) benefits | (39,587) | 27,153 | (3,590) |
Amortization of transition obligation, prior service credit and net losses recognized during the period, tax benefits | (9,211) | (8,442) | (12,981) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, (taxes) benefits | $ 49,523 | $ (18,206) | $ 16,011 |
Consolidated Balance Sheets - H
Consolidated Balance Sheets - HECO - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, plant and equipment, net | ||
Total property, plant and equipment, net | $ 5,025,916 | $ 4,603,465 |
Current assets | ||
Total assets | 13,099,828 | 12,425,506 |
Capitalization and liabilities | ||
Common stock equity | 2,097,386 | 2,066,753 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 |
Commitments and contingencies | ||
Current liabilities | ||
Interest and dividends payable | 25,837 | 25,225 |
Deferred credits and other liabilities | ||
Deferred income taxes | 388,430 | 728,806 |
Contributions in aid of construction | 565,668 | 543,525 |
Total capitalization and liabilities | 13,099,828 | 12,425,506 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Property, plant and equipment, net | ||
Land | 53,177 | 53,153 |
Plant and equipment | 6,946,563 | 6,605,732 |
Less accumulated depreciation | (2,476,352) | (2,369,282) |
Construction in progress | 283,239 | 211,742 |
Utility property, plant and equipment, net | 4,806,627 | 4,501,345 |
Nonutility property, plant and equipment, less accumulated depreciation of $1,251 as of December 31, 2017 and $1,232 as of December 31, 2016 | 7,580 | 7,407 |
Total property, plant and equipment, net | 4,814,207 | 4,508,752 |
Current assets | ||
Cash and cash equivalents | 12,517 | 74,286 |
Customer accounts receivable, net | 127,889 | 123,688 |
Accrued unbilled revenues, net | 107,054 | 91,693 |
Other accounts receivable, net | 7,163 | 5,233 |
Fuel oil stock, at average cost | 86,873 | 66,430 |
Materials and supplies, at average cost | 54,397 | 53,679 |
Prepayments and other | 25,355 | 23,100 |
Regulatory assets | 88,390 | 66,032 |
Total current assets | 509,638 | 504,141 |
Regulatory assets | 780,907 | 891,419 |
Unamortized debt expense | 611 | 208 |
Other | 90,918 | 70,908 |
Total other long-term assets | 872,436 | 962,535 |
Total assets | 6,196,281 | 5,975,428 |
Capitalization and liabilities | ||
Common stock equity | 1,845,283 | 1,799,787 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 |
Commitments and contingencies | ||
Long-term debt, net | 1,318,516 | 1,319,260 |
Total capitalization | 3,198,092 | 3,153,340 |
Current liabilities | ||
Current portion of long-term debt | 49,963 | 0 |
Short-term borrowings from non-affiliate | 4,999 | 0 |
Accounts payable | 159,610 | 117,814 |
Interest and dividends payable | 22,575 | 22,838 |
Taxes accrued, including revenue taxes | 199,101 | 172,730 |
Regulatory liabilities | 3,401 | 3,762 |
Other | 59,456 | 55,221 |
Total current liabilities | 499,105 | 372,365 |
Deferred credits and other liabilities | ||
Deferred income taxes | 394,041 | 733,659 |
Regulatory liabilities | 877,369 | 406,931 |
Unamortized tax credits | 90,369 | 88,961 |
Defined benefit pension and other postretirement benefit plans liability | 472,948 | 599,726 |
Other | 98,689 | 76,921 |
Total deferred credits and other liabilities | 1,933,416 | 1,906,198 |
Contributions in aid of construction | 565,668 | 543,525 |
Total capitalization and liabilities | $ 6,196,281 | $ 5,975,428 |
Consolidated Balance Sheets -14
Consolidated Balance Sheets - HECO (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Accumulated depreciation on other property, plant and equipment | $ 1,251 | $ 1,232 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - HECO - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock equity | ||
Retained earnings | $ 476,836,000 | $ 438,972,000 |
Retirement benefit plans | (26,990,000) | (24,744,000) |
Accumulated other comprehensive loss, net of tax benefits | (41,941,000) | (33,129,000) |
Total shareholders’ equity | 2,097,386,000 | 2,066,753,000 |
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 |
3.10%, Refunding series 2017A, due 2026 | ||
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 | 125,000,000 | 0 |
4.00%, Refunding series 2017B, due 2037 | ||
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 | 140,000,000 | 0 |
3.25%, Refunding series 2015, due 2025 | ||
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 | 47,000,000 | 47,000,000 |
6.50%, Series 2009, due 2039 | ||
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 | 150,000,000 | 150,000,000 |
4.65%, Series 2007A, paid in 2017 | ||
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 0 | 140,000,000 |
4.60%, Refunding series 2007B, paid in 2017 | ||
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | ||
Secured long-term debt | 0 | 125,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Common stock equity | ||
Common stock of $6 2/3 par value, Authorized: 50,000,000 shares. Outstanding: 16,142,216 shares and 16,019,785 shares at December 31, 2017 and 2016, respectively | 107,634,000 | 106,818,000 |
Premium on capital stock | 614,675,000 | 601,491,000 |
Retained earnings | 1,124,193,000 | 1,091,800,000 |
Accumulated other comprehensive income (loss), net of taxes - Unrealized losses on derivatives | 0 | (454,000) |
Retirement benefit plans | (1,219,000) | 132,000 |
Accumulated other comprehensive loss, net of tax benefits | (1,219,000) | (322,000) |
Total shareholders’ equity | $ 1,845,283,000 | 1,799,787,000 |
Shares outstanding December 31, 2017 and 2016 | 1,234,657 | |
Preferred stock of subsidiaries - not subject to mandatory redemption | $ 34,293,000 | 34,293,000 |
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 914,546,000 | 864,546,000 |
Total long-term debt | 1,376,546,000 | 1,326,546,000 |
Less unamortized debt issuance costs | 8,067,000 | 7,286,000 |
Less current portion long-term debt, net of unamortized debt issuance costs | 49,963,000 | 0 |
Long-term debt, net | 1,318,516,000 | 1,319,260,000 |
Total capitalization | 3,198,092,000 | 3,153,340,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Senior notes | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 863,000,000 | 813,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 4.31%, Series 2017A, due 2047 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 50,000,000 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | 5.23%, Series 2015A, due 2045 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 80,000,000 | 80,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 4.45%, Series 2013A and 2013B, due 2022 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 52,000,000 | 52,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 4.84%, Series 2013A, 2013B and 2013C, due 2027 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 100,000,000 | 100,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 5.65%, Series 2013B and 2013C, due 2043 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 70,000,000 | 70,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 3.79%, Series 2012A, due 2018 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 50,000,000 | 50,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 4.03%, Series 2012B, due 2020 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 82,000,000 | 82,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | 4.55%, Series 2012B and 2012C, due 2023 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 100,000,000 | $ 100,000,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Series C, 4.25% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding December 31, 2017 and 2016 | 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 | |
Shares outstanding December 31, 2017 and 2016 | 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 | |
Shares outstanding December 31, 2017 and 2016 | 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 | |
Shares outstanding December 31, 2017 and 2016 | 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 | |
Shares outstanding December 31, 2017 and 2016 | 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 | |
Shares outstanding December 31, 2017 and 2016 | 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 | |
Shares outstanding December 31, 2017 and 2016 | 175,000 | 175,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | $ 3,500,000 | $ 3,500,000 |
Hawaii Electric Light Company, Inc. (HELCO) | ||
Common stock equity | ||
Total shareholders’ equity | 286,647,000 | 291,291,000 |
Other long-term debt – unsecured: | ||
Less current portion long-term debt, net of unamortized debt issuance costs | 10,992,000 | |
Long-term debt, net | 202,701,000 | 213,703,000 |
Total capitalization | 496,348,000 | 511,994,000 |
Hawaii Electric Light Company, Inc. (HELCO) | 3.83%, Series 2013A, due 2020 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | $ 14,000,000 | $ 14,000,000 |
Hawaii Electric Light Company, Inc. (HELCO) | Series G, 7.625% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding December 31, 2017 and 2016 | 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 | 270,265,000 | 259,554,000 |
Other long-term debt – unsecured: | ||
Less current portion long-term debt, net of unamortized debt issuance costs | 8,993,000 | |
Long-term debt, net | 190,836,000 | 190,120,000 |
Total capitalization | $ 466,101,000 | $ 454,674,000 |
Maui Electric Company, Limited (MECO) | Series H, 7.625% Preferred Stock | ||
Common stock equity | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding December 31, 2017 and 2016 | 50,000 | 50,000 |
Preferred stock of subsidiaries - not subject to mandatory redemption | $ 5,000,000 | $ 5,000,000 |
Hawaiian Electric Company, Inc (HECO) | ||
Common stock equity | ||
Total shareholders’ equity | 1,845,283,000 | 1,799,787,000 |
Other long-term debt – unsecured: | ||
Less current portion long-term debt, net of unamortized debt issuance costs | 29,978,000 | |
Long-term debt, net | 924,979,000 | 915,437,000 |
Total capitalization | 2,792,555,000 | 2,737,517,000 |
Hawaiian Electric Company, Inc (HECO) | 4.54%, Series 2016A, due 2046 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 40,000,000 | 40,000,000 |
Hawaiian Electric Company, Inc (HECO) | 4.72%, Series 2012D, due 2029 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 35,000,000 | 35,000,000 |
Hawaiian Electric Company, Inc (HECO) | 5.39%, Series 2012E, due 2042 | ||
Other long-term debt – unsecured: | ||
Other long-term debt - unsecured | 150,000,000 | 150,000,000 |
Hawaiian Electric Company, Inc (HECO) | 4.53%, Series 2012F, due 2032 | ||
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 |
Consolidated Statements of Ca16
Consolidated Statements of Capitalization - HECO (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, outstanding shares | 108,787,807 | 108,583,413 |
3.10% Refunding Series 2017A Due 2026 | ||
Debt instrument, stated interest rate | 3.10% | |
4.00% Refunding Series 2017B, Due 2037 | ||
Debt instrument, stated interest rate | 4.00% | |
3.25% Refunding Series 2015 SPRBs due 2025 | ||
Debt instrument, stated interest rate | 3.25% | |
6.50%, series 2009, due 2039 | ||
Debt instrument, stated interest rate | 6.50% | |
4.65%, series 2007A, due 2037 | ||
Debt instrument, stated interest rate | 4.65% | |
Refunding Series 2007B Special Purpose Revenue Bonds | ||
Debt instrument, stated interest rate | 4.60% | |
4.31%, Series 2017A, due 2047 | ||
Debt instrument, stated interest rate | 4.31% | |
4.54%, Series 2016A, due 2046 | ||
Debt instrument, stated interest rate | 4.54% | |
5.23%, Series 2015A, due 2045 | ||
Debt instrument, stated interest rate | 5.23% | |
3.83%, Series 2013A, due 2020 | ||
Debt instrument, stated interest rate | 3.83% | |
4.45%, Series 2013A and 2013B, due 2022 | ||
Debt instrument, stated interest rate | 4.45% | |
4.84%, Series 2013A, 2013B and 2013C, due 2027 | ||
Debt instrument, stated interest rate | 4.84% | |
5.65%, Series 2013B and 2013C, due 2043 | ||
Debt instrument, stated interest rate | 5.65% | |
3.79%, Series 2012A, due 2018 | ||
Debt instrument, stated interest rate | 3.79% | |
4.03%, Series 2012B, due 2020 | ||
Debt instrument, stated interest rate | 4.03% | |
4.55%, Series 2012B and 2012C, due 2023 | ||
Debt instrument, stated interest rate | 4.55% | |
4.72%, Series 2012D, due 2029 | ||
Debt instrument, stated interest rate | 4.72% | |
5.39%, Series 2012E, due 2042 | ||
Debt instrument, stated interest rate | 5.39% | |
4.53%, Series 2012F, due 2032 | ||
Debt instrument, stated interest rate | 4.53% | |
6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 | ||
Debt instrument, stated interest rate | 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 | 16,142,216 | 16,019,785 |
Shares outstanding | 1,234,657 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series C, 4.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 150,000 | 150,000 |
Preferred stock, stated dividend rate | 4.25% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series D, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 50,000 | 50,000 |
Preferred stock, stated dividend rate | 5.00% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series E, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 150,000 | 150,000 |
Preferred stock, stated dividend rate | 5.00% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series H, 5.25% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 250,000 | 250,000 |
Preferred stock, stated dividend rate | 5.25% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series I, 5.00% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 89,657 | 89,657 |
Preferred stock, stated dividend rate | 5.00% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series J, 4.75% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 250,000 | 250,000 |
Preferred stock, stated dividend rate | 4.75% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Series K, 4.65% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 20 | |
Shares outstanding | 175,000 | 175,000 |
Preferred stock, stated dividend rate | 4.65% | |
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 |
Hawaii Electric Light Company, Inc. (HELCO) | Series G, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding | 70,000 | 70,000 |
Preferred stock, stated dividend rate | 7.625% | |
Maui Electric Company, Limited (MECO) | Series H, 7.625% Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Shares outstanding | 50,000 | 50,000 |
Preferred stock, stated dividend rate | 7.625% |
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, 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 | 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 | ||||||
Increase (decrease) in stockholders' equity | ||||||||
Net income for common stock | $ 165,297 | 165,297 | 119,951 | 119,951 | ||||
Other comprehensive income (loss), net of tax benefits | (1,372) | (1,372) | (688) | (688) | ||||
Reclass of AOCI for tax rate reduction impact | 0 | 7,440 | (7,440) | 0 | 209 | (209) | ||
Issuance of common stock, net of expenses | 14,000 | $ 816 | 13,184 | |||||
Issuance of common stock, net of expenses (in shares) | 122,000 | |||||||
Common stock dividends | (134,873) | (134,873) | (87,767) | (87,767) | ||||
Ending Balance at Dec. 31, 2017 | $ 2,097,386 | $ 476,836 | $ (41,941) | $ 1,845,283 | $ 107,634 | $ 614,675 | $ 1,124,193 | $ (1,219) |
Balance (in shares) at Dec. 31, 2017 | 108,787,807 | 16,142,000 |
Consolidated Statements of Ca18
Consolidated Statements of Cash Flows - HECO - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 167,187 | $ 250,146 | $ 161,767 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 200,658 | 194,273 | 183,966 |
Other amortization | 21,340 | 10,473 | 11,619 |
Impairment of utility assets | 0 | 0 | 6,021 |
Deferred income taxes | 37,835 | 47,118 | 41,432 |
Allowance for equity funds used during construction | (12,483) | (8,325) | (6,928) |
Other | (3,324) | (12,422) | 1,672 |
Changes in assets and liabilities | |||
Decrease (increase) in fuel oil stock | (20,794) | 4,786 | 34,830 |
Increase in regulatory assets | (17,256) | (18,273) | (24,182) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 20,685 | 39,109 | (42,596) |
Increase in defined benefit pension and other postretirement benefit plans liability | 882 | 1,587 | 852 |
Change in other assets and liabilities | (25,551) | (23,118) | (41,070) |
Net cash provided by operating activities | 420,441 | 495,658 | 356,858 |
Cash flows from investing activities | |||
Capital expenditures | (495,187) | (330,043) | (363,804) |
Contributions in aid of construction | 64,733 | 30,100 | 40,239 |
Other | 6,468 | 856 | 7,940 |
Net cash used in investing activities | (815,299) | (736,465) | (705,724) |
Cash flows from financing activities | |||
Common stock dividends | (134,873) | (117,274) | (131,765) |
Proceeds from issuance of common stock | 0 | 13,220 | 104,435 |
Proceeds from issuance of long-term debt | 532,325 | 115,000 | 80,000 |
Funds transferred for redemption of special purpose revenue bonds | (465,000) | (75,000) | 0 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 67,992 | (103,063) | (15,909) |
Other | (6,349) | 2,197 | 2,427 |
Net cash used in financing activities | 378,287 | 218,781 | 473,802 |
Net increase (decrease) in cash and equivalents | (16,571) | (22,026) | 124,936 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Cash flows from operating activities | |||
Net income | 121,946 | 144,312 | 137,709 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property, plant and equipment | 192,784 | 187,061 | 177,380 |
Other amortization | 8,498 | 6,935 | 8,939 |
Impairment of utility assets | 0 | 0 | 6,021 |
Deferred income taxes | 38,037 | 74,386 | 75,626 |
Allowance for equity funds used during construction | (12,483) | (8,325) | (6,928) |
Other | (1,066) | (3,700) | 6,516 |
Changes in assets and liabilities | |||
Decrease in accounts receivable | 2,914 | 8,551 | 23,727 |
Decrease (increase) in accrued unbilled revenues | (15,361) | (7,184) | 40,093 |
Decrease (increase) in fuel oil stock | (20,443) | 4,786 | 34,830 |
Decrease (increase) in materials and supplies | (718) | 750 | 2,821 |
Increase in regulatory assets | (17,256) | (18,273) | (24,182) |
Increase (decrease) in accounts payable | 25,734 | (10,614) | (54,555) |
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 29,862 | 2,123 | (63,096) |
Increase in defined benefit pension and other postretirement benefit plans liability | 604 | 484 | 1,125 |
Change in other assets and liabilities | (17,866) | (11,375) | (32,620) |
Net cash provided by operating activities | 335,186 | 369,917 | 333,406 |
Cash flows from investing activities | |||
Capital expenditures | (441,598) | (320,437) | (350,161) |
Contributions in aid of construction | 64,733 | 30,100 | 40,239 |
Other | 4,578 | 2,138 | 1,140 |
Net cash used in investing activities | (372,287) | (288,199) | (308,782) |
Cash flows from financing activities | |||
Common stock dividends | (87,767) | (93,599) | (90,405) |
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) |
Proceeds from issuance of common stock | 14,000 | 24,000 | 0 |
Proceeds from issuance of long-term debt | 315,000 | 40,000 | 80,000 |
Funds transferred for redemption of special purpose revenue bonds | (265,000) | 0 | 0 |
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 4,999 | 0 | 0 |
Other | (3,905) | (287) | (1,537) |
Net cash used in financing activities | (24,668) | (31,881) | (13,937) |
Net increase (decrease) in cash and equivalents | (61,769) | 49,837 | 10,687 |
Cash and cash equivalents, beginning of period | 74,286 | 24,449 | 13,762 |
Cash and cash equivalents, end of period | $ 12,517 | $ 74,286 | $ 24,449 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
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) and Hamakua Energy, LLC (Hamakua Energy). 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. See Note 2 . 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. Hamakua Energy owns and operates a 60 -megawatt (MW) combined-cycle power plant, which sells the power it produces only to Hawaii Electric Light. 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; regulatory assets and liabilities (Utilities only); electric utility unbilled revenues (Utilities only); and allowance for loan losses (ASB only). Consolidation. The HEI consolidated financial statements include the accounts of HEI and its subsidiaries, except for HECO Capital Trust III (Trust III), as the Company does not exercise control over Trust III. Hamakua Energy, LLC (which was formed in 2017) has been included in the HEI consolidated financial statements. The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries, except for Trust III. When HEI or Hawaiian Electric has a controlling financial interest in another entity (usually, majority voting interest), that entity is consolidated. 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. The consolidated financial statements exclude variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. Hawaiian Electric is not the primary beneficiary of Trust III, which is a VIE, and accounts for Trust III under the equity method. See Note 3 for information regarding unconsolidated VIEs. In general, intercompany amounts are eliminated in consolidation (see Note 2 for exceptions). 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. 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 are included in regulatory liabilities. See discussion regarding “Utility projects” in Note 3 . 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% in 2017 , 2016 and 2015 . 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 $20 million , $19 million and $18 million in 2017 , 2016 and 2015 , respectively. The Utilities' operating lease expense was $11 million , $10 million and $9 million in 2017 , 2016 and 2015 , respectively. HEI's consolidated and the Utilities' future minimum lease payments are as follows: (in millions) HEI Hawaiian Electric 2018 $ 11 $ 6 2019 10 5 2020 8 5 2021 7 5 2022 4 3 Thereafter 36 29 $ 76 $ 53 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. 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. 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. 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. The Utilities review their sites and measure the liability quarterly by assessing a range of reasonably likely costs of each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. 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. As a result of the 2017 Tax Cuts and Jobs Act (Tax Act), the accumulated deferred income tax balances (ADIT) were adjusted in 2017 for the lower federal income tax rate expected to be in effect when the deferred tax assets or liabilities are realized or settled. See further discussion under "Recent tax developments" in Note 10 . 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 Utilities' investment tax credits 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 each utility filed a separate income tax return and Hawaiian Electric filed a consolidated Hawaiian Electric income tax return. 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 acquired in settlement of loans, goodwill and asset retirement obligations (AROs). Earnings per share (HEI only). Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation and the equity forward transactions are added to the denominator. 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 undiscounted 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. Stock compensation . In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 No. 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. From January 1, 2017, no excess tax benefits or 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 cashflow guidance for taxes paid (equivalent to the value of withheld shares for tax withholding purposes) and excess tax benefits. Excess tax benefits are 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 are classified as financing activities on the Company's consolidated statements of cash flows for all periods that are presented. Goodwill impairment . In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to the adoption of ASU No. 2017-04, an entity was required to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compared the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the entity performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill would then be recorded. ASU No. 2017-04 removes the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value. ASU No. 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The Company adopted ASU No. 2017-04 prospectively in the fourth quarter of 2017 and the adoption had no impact on the Company’s consolidated financial statements. 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, 2017, the Company has identified its revenue streams from, and performance obligations related to, contracts with customers and has performed an analysis of these revenue streams for the impacts of Topic 606. The revenue subject to Topic 606 is largely the Utilities’ electric sales revenue and the Utilities’ and ASB’s fee income. The Company and Hawaiian Electric adopted ASU No. 2014-09 (and subsequently issued revenue-related ASUs) in the first quarter of 2018 using the modified retrospective approach with no impact on the timing or pattern of revenue recognition, but with impacts on the presentation of revenues. Also, expanded disclosures around the amount, timing, nature and uncertainty of revenues from contracts with customers will be presented. 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 adopted ASU No. 2016-01 in the first quarter of 2018 and expects changes to disclosures, but otherwise the impact of adoption is not material to the Company’s and Hawaiian Electric’s consolidated financial statements. 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 adopted ASU No. 2016-15 in the first quarter of 2018 using a retrospective transition method and the impact of adoption is not material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. 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 adopted ASU No. 2016-18 in the first quarter of 2018 using a retrospective transition method and the impact of adoption is not material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. Net periodic pension cost and net periodic postretirement benefit cost . In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost (NPPC) and net periodic postretirement benefit cost (NPBC) as defined in paragraphs 715-30-35-4 and 715-60-35-9 to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization under GAAP, when applicable. The Company adopted ASU No. 2017-07 in the first quarter of 2018: (1) retrospectively for the presentation in the income statement of the service cost component and the other components of NPPC and NPBC, and (2) prospectively for the capitalization in assets of the service cost component of NPPC and NPBC. HEI and ASB do not capitalize pension and OPEB costs. In Settlement Agreements in the 2017 Hawaiian Electric and 2016 Hawaii Electric Light rate cases, Hawaiian Electric and Hawaii Electric Light, respectively, and the Consumer Advocate agreed to the deferral of the non-service cost components of NPPC and NPBC which would have been capitalized as part of the pension tracking mechanism. In the Hawaiian Electric Interim D&O, the PUC did not identify this item for further review, and Hawaiian Electric will follow the Settlement Agreement. Hawaii Electric Light and Maui Electric plan to seek PUC clarification to follow Hawaiian Electric’s treatment until rates are set in the next rate cases. The treatment under the Settlement Agreement will be followed beginning in 2018 until each utility’s next rate case. In the next rate cases, each utility’s future rates would include recovery of the deferred non-service cost components and seek to adopt the capitalization policy which reflects the requirements of ASU No. 2017-07 (i.e., only the service cost components of NPPC and NPBC will be capitalized). Thus, the adoption of ASU 2017-07 in the first quarter of 2018 does not have a net income impact. 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election and recognize lease expense for such leases generally on a straight-line basis over the lease term. For finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the right-of-use asset in the consolidated statements of income. For operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. The Company plans to adopt ASU No. 2016-02 in the first quarter of 2019 and has not yet determined the impact of adoption. 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 (AFS) 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 credit 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 No. 2016-13 in the first quarter of 2020 and has not yet determined the impact of adoption. Tax effects in AOCI . In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, ” which contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act (Tax Act) and requires certain disclosures regarding the stranded tax effects. The Company and the Utilities adopted ASU No. 2018-02 as of the beginning of the fourth quarter of 2017 and elected to reclassify the income tax effects of the Tax Act (i.e., the effect of the federal tax rate change only) of $7.4 million and $0.2 million , respectively, from AOCI to retained earnings. Other than this reclassification to retained earnings, the Company and the Utilities release the income tax effects in AOCI from AOCI when the specific AOCI items (e.g., on a security-by-security basis for ASB’s gains/losses on investment securities) are included in net income. 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. Management believes the Utilities’ operations currently satisfy the ASC Topic 980 criteria. If events or circumstances should change so that those criteria are no longer satisfied, the Utilities expect that their regulatory assets, net of regulatory liabilities, would be charged to the statement of income in the period of discontinuance. Accounts receivable. Accounts receivable are recorded at the invoiced amount. The Utilities generally assess a late payment charge on balances unpaid from the previous month. The allowance for doubtful accounts is the Utilities’ best estimate of the amount of probable credit losses in the Utilities existing accounts receivable. At December 31, 2017 and 2016 , the allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable was $1.2 million and $1.1 million , respectively. Contributions in aid of construction. The Utilities receive contributions from customers for special construction requirements. As directed by the PUC, contributions are amortized on a straight-line basis over 30 to 55 years as an offset against depreciation expense. Electric utility revenues. Electric utility revenues are based on rates authorized by the PUC. Revenues related to 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 |
Segment financial information
Segment financial information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment financial information | 2 · 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 Hamakua Energy revenues, 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. 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) 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. Acquisition of Hamakua power plant. In September 2017, HEI formed new 100% owned subsidiaries--Pacific Current, LLC and its subsidiary Hamakua Holdings, LLC and its subsidiary, Hamakua Energy, LLC. On November 24, 2017, Hamakua Energy, LLC acquired Hamakua Energy Partners, L.P.’s 60 -MW combined cycle power plant and other assets from affiliates of ArcLight Capital Partners, a private equity firm focused on energy infrastructure investments. The plant sells the power it produces only to Hawaii Electric Light under an existing power purchase agreement (PPA) that expires in 2030. On December 26, 2017, Hamakua Energy, LLC closed on $67 million of non-recourse project financing in the form of 4.02% senior secured notes due December 31, 2030. Acquisition of a Solar + Storage Power Purchase Agreement (PPA). In November 2017, HEI, through its wholly-owned subsidiary Pacific Current, LLC, formed a new subsidiary, Mauo Holdings, LLC and its subsidiary Mauo, LLC. On February 2, 2018, Mauo, LLC executed definitive agreements to acquire a solar-plus-storage PPA for a multi-site, commercial-scale project that will provide 8.6 MW of solar capacity and 42.3 MWH of storage capacity on the islands of Maui and Oahu. The PPA has a 15 -year term with an option to extend for an additional five years. The system will be constructed by a third party contractor under an Engineering, Procurement and Construction (EPC) contract that was contemporaneously negotiated and executed by Mauo, LLC. The EPC contract provides a fixed price for the purchase of the completed system, a project completion schedule and performance obligations designed to match the requirements of the PPA. Mauo, LLC plans to fund the construction of the project with a construction facility that will be repaid at the commercial operation date (ultimately with cash from investment tax credits, state renewable tax credits and non-recourse project debt). The facilities are expected to be operational in 2019. Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2017 Revenues from external customers $ 2,257,455 $ 297,640 $ 530 $ 2,555,625 Intersegment revenues (eliminations) 111 — (111 ) — Revenues 2,257,566 297,640 419 2,555,625 Depreciation and amortization 201,282 19,416 1,300 221,998 Interest expense, net 69,637 12,156 9,335 91,128 Income (loss) before income taxes 205,145 98,716 (27,281 ) 276,580 Income taxes (benefit) 83,199 31,719 (5,525 ) 109,393 Net income (loss) 121,946 66,997 (21,756 ) 167,187 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 119,951 66,997 (21,651 ) 165,297 Capital expenditures 441,598 53,272 317 495,187 Assets (at December 31, 2017) 6,196,281 6,798,659 104,888 13,099,828 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 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. Hamakua Energy's profit on electricity sales to Hawaii Electric Light are not eliminated because profit on sales to regulated affiliates is not required to be eliminated because the PPA was approved by the PUC and it is probable that, through the ratemaking process, future revenue from Hawaii Electric Light’s sale of the electricity will approximate its purchase price from Hamakua Energy under the PPA. |
Electric utility segment
Electric utility segment | 12 Months Ended |
Dec. 31, 2017 | |
Electric utility subsidiary | |
Electric utility segment | 3 · Electric utility segment Regulatory assets and liabilities. Regulatory assets represent deferred costs and accrued decoupling revenues which are expected to be 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, or amounts collected in excess of costs incurred that are refundable to customers. 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, 2017 are noted. Regulatory assets were as follows: December 31 2017 2016 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 637,204 $ 745,367 Income taxes (1 to 55 years) 118,201 90,100 Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) 64,087 73,485 Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) 11,993 12,299 Vacation earned, but not yet taken (1 year) 11,224 10,970 Other (1 to 50 years; 1 to 46 years remaining) 26,588 25,230 $ 869,297 $ 957,451 Included in: Current assets $ 88,390 $ 66,032 Long-term assets 780,907 891,419 $ 869,297 $ 957,451 Regulatory liabilities were as follows: December 31 2017 2016 (in thousands) Cost of removal in excess of salvage value (1 to 60 years) $ 453,986 $ 394,072 Income taxes (1 to 55 years) 406,324 — Retirement benefit plans (5 years beginning with respective utility’s next rate case) 9,961 10,824 Other (5 years; 1 to 2 years remaining) 10,499 5,797 $ 880,770 $ 410,693 Included in: Current liabilities $ 3,401 $ 3,762 Long-term liabilities 877,369 406,931 $ 880,770 $ 410,693 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 8 ). Major customers. The Utilities received 11% ( $239 million ), 11% ( $226 million ) and 11% ( $265 million ) of their operating revenues from the sale of electricity to various federal government agencies in 2017 , 2016 and 2015 , 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, 2017 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 $ 6.2 million , $6.5 million and $6.5 million for general management and administrative services in 2017 , 2016 and 2015 , 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. From November 24, 2017 to December 31, 2017, Hamakua Energy, LLC (an indirect subsidiary of HEI) sold energy and capacity to Hawaii Electric Light (subsidiary of Hawaiian Electric and indirect subsidiary of HEI) under a PPA in the amount of $3 million . Hawaiian Electric’s short-term borrowings totaled nil at December 31, 2017 and 2016 . 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 not material for the years ended December 31, 2017 and 2016. 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 have the power to direct the activities that most significantly impact the economic performance of Trust III nor the obligation to absorb their expected losses, if any, that could potentially be significant to the 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, 2017 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 2017 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, 2017 , 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 is currently required to be consolidated as VIEs. Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its consolidated financial statements. HEI, however, owns Hamakua Energy and consolidates it in the HEI consolidated financial statements. For the other IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPPs were either a “business” or “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. Two IPPs of as-available energy declined to provide the information necessary for Utilities to determine the applicability of accounting standards for VIEs. If information is ultimately received from the IPPs, a possible outcome of future analyses of such information is the consolidation of one or both 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. Commitments and contingencies. Fuel contracts . The Utilities have contractual agreements to purchase minimum quantities of low sulfur fuel oil (LSFO), industrial fuel oil (IFO), 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, 2017 , the estimated cost of minimum purchases under the fuel supply contracts is $130 million in 2018 and $130 million in 2019 . The actual cost of purchases in 2018 and future years could vary substantially from this estimate of minimum purchases as a result of changes in market prices, quantities actually purchased, entry into new supply contracts and/or other factors. The Utilities purchased $0.6 billion , $0.4 billion and $0.6 billion of fuel under contractual agreements in 2017 , 2016 and 2015 , respectively. On February 18, 2016, the Utilities 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) IFO, 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 by Chevron 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 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. On October 27, 2017, Hawaiian Electric signed a new biodiesel supply contract with PBT that will replace the existing PBT contract in November 2018, upon PUC approval. 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 and 2017. Hawaiian Electric has secured a one -year extension of this contract through November 2018. 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. 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. Contingencies . The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future. Interim increases . For the year ended December 31, 2017, the Utilities recognized $3 million of revenues with respect to interim orders related to general rate increase requests. Such amounts recorded are subject to refund, with interest, if they exceed amounts in a final order. Power purchase agreements . Purchases from all IPPs were as follows: Years ended December 31 2017 2016 2015 (in millions) Kalaeloa $ 180 $ 152 $ 187 AES Hawaii 140 149 134 HPOWER 67 71 66 Puna Geothermal Venture 38 28 29 Hamakua Energy 35 29 44 Hawaiian Commercial & Sugar — 1 8 Other IPPs 127 133 126 Total IPPs $ 587 $ 563 $ 594 As of December 31, 2017 , the Utilities had five firm capacity PPAs for a total of 551 megawatts (MW) of firm capacity. 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 2018 through 2022 and a total of $0.9 billion in the period from 2023 through 2048. 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. 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. 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, but would end 60 days after either party notifies the other in writing that negotiations have terminated. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA prior to October 31, 2018. This agreement contemplates continued negotiations between the parties and accounts for time needed for PUC approval of a negotiated resolution. 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 the 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 and PUC approval of an amendment to the existing PPA. In November 2015, Hawaiian Electric entered into Amendment No. 3 for which PUC approval was requested and subsequently denied in January 2017. 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 agreed to extend the stay of the arbitration proceeding while settlement discussions continued. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on Amendment No. 4 which is subject to PUC approval. Amendment No. 4 among other things, provides, (1) that AES Hawaii will make certain operational commitments to improve reliability, (2) for inclusion of AES Hawaii in the Utilities’ greenhouse gas partnership, (3) provisions to allow AES Hawaii to reduce coal combustion by modifying its fuel consumption to include biomass upon approval, and (4) for release of an option agreement by Hawaiian Electric for land owned by AES Hawaii. Amendment No. 4 includes a stay of the arbitration proceeding pending review by the PUC. If approved by the PUC, Amendment No. 4 will resolve AES Hawaii’s claims. 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 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. On November 30, 2016, Hu Honua filed a civil complaint in the United States District Court for the District of Hawaii that included claims purportedly arising out of the termination of Hu Honua’s PPA. On May 26, 2017, Hawaii Electric Light and Hu Honua entered into a settlement agreement that will settle all claims related to the termination of the original PPA. The settlement agreement was contingent on the PUC’s approval of an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 5, 2017. In July 2017, the PUC approved the amended and restated PPA. On August 25, 2017, the PUC’s approval was appealed by a third party. The appeal is still pending. Hu Honua is expected to be on-line by the end of 2018. 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 expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income. Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. On August 11, 2016, the PUC approved 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 benefits associated with the system over its 12 -year service life. The decision and order (D&O) approved the deferral of certain project costs and allowed the accrual of allowance for funds used during construction (AFUDC), but limited the AFUDC rate to 1.75% . Pursuant to the D&O and subsequent orders, in September 2017, the Utilities filed a bottom-up, low-level analysis of the project’s benefits and performance metrics and tracking mechanism for passing the project’s benefits on to customers. On November 30, 2017, the PUC issued an order, which, among other things, directed the Utilities’ to file a position statement regarding the reasonableness of the project, a reworked low-level benefits analysis and initial details of the metrics that will be used to demonstrate the achievement of benefits. On December 18, 2017, the Utilities’ filed their response to the order, re-affirming the need for the project and guaranteed minimum level of $244 million in benefits to customers. The updated low-level benefits analysis provided in the response estimated total benefits to be as much as $256 million . The response further noted that in Hawaiian Electric’s 2017 test year rate case, Hawaiian Electric and the Consumer Advocate have agreed in principle to a “rate case-centric” approach for a benefits delivery mechanism pending PUC approval. On January 4, 2018, the Consumer Advocate filed a statement of position on the Utilities’ response, stating that it does not recommend revocation of the PUC’s prior conditional approval of the project or reductions to the previously ordered cost caps, and continues to recommend the use of a rate case-centric approach to facilitate pass through of the system’s benefits to customers. Monthly reports on the status and costs of the project continue to be filed. The ERP/EAM Implementation Project is expected to go-live by October 1, 2018. As of December 31, 2017, the Project incurred costs of $35.3 million of which $6.7 million were charged to other operation and maintenance expense, $2.6 million relate to capital costs and $26.0 million are deferred costs. 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 window forward contracts 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 second quarter of 2018. A request to recover the costs of the project and related operations and maintenance expense through the newly-established Major Project Interim Recovery (MPIR) adjustment mechanism is pending PUC approval. (See “Decoupling” section below for MPIR guidelines and capital cost recovery discussion.) Project costs incurred as of December 31, 2017 amounted to $121.6 million . West Loch PV Project. In July 2016, Hawaiian Electric announced plans to build, own and operate a utility-owned, grid-tied 20 -MW (ac) solar facility in conjunction with the Department of the Navy at a Navy/Air Force joint base. In June 2017, the PUC approved the expenditure of funds for the project, including Hawaiian Electric’s proposed project cost cap of $67 million and a performance guarantee to provide energy at 9.56 cents/KWH or less to the system. Project costs incurred as of December 31, 2017 amounted to $6.4 million . In approving the project, the PUC agreed that the project is eligible for recovery of costs offset by related net benefits under the newly-established MPIR adjustment mechanism. (See “Decoupling” section below for MPIR guidelines and capital cost recovery discussion.) Hawaiian Electric provided supplemental materials in August 2017, as requested by the PUC, to support meeting the MPIR guidelines, accompanied by system performance guarantee and cost savings sharing mechanisms. A decision on these matters is pending. Hawaiian Electric executed a fixed-price Engineering, Procurement, and Construction (EPC) contract for the project on December 5, 2017. Hawaiian Telcom . The Utilities each have separate agreements for the joint ownership and maintenance of utility poles with Hawaiian Telcom, Inc. (Hawaiian Telcom), the respective county or counties in which each utility operates and other third parties, such as the State of Hawaii. The agreements set forth various circumstances requiring pole removal/installation/replacement and the sharing of costs among the joint pole owners. The agreements allow for the cost of work done by one joint pole owner to be shared by the other joint pole owners based on the apportionment of costs in the agreements. The Utilities have maintained, replaced and installed the majority of the jointly-owned poles in each of the respective service territories, and have billed the other joint pole owners for their respective share of the costs. The counties and the State have been reimbursing the Utilities for their share of the costs. However, Hawaiian Telcom has been delinquent in reimbursing the Utilities for its share of the costs. Hawaiian Electric has initiated a dispute resolution process to collect the unpaid amounts from Hawaiian Telcom as specified by the joint pole agreement. This dispute resolution process is stayed pending settlement negotiations. For Hawaii Electric Light, the agreement does not specify an alternative dispute resolution process, and thus a complaint for payment was filed with the Circuit Court in June 2016. This complaint is stayed pending settlement negotiations. Maui Electric has not yet commenced any legal action to recover the delinquent amounts. The Utilities and Hawaiian Telcom have entered into a non-binding memorandum of understanding to endeavor to negotiate agreements, subject to PUC approval, for purchase by the Utilities of Hawaiian Telcom’s interest in all the joint poles, with payment of the purchase price of such interest in the poles to be offset in part by the receivables owed by Hawaiian Telcom to the Utilities. As of December 31, 2017, total receivables under the joint pole agreement, including interest, from Hawaiian Telcom are $22.3 million ( $15.0 million at Hawaiian Electric, $6.0 million at Hawaii Electric Light, and $1.3 million at Maui Electric). Management expects to prevail on these claims but has reserved for the accrued interest of $4.9 million on the receivables. 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. 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 effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity. Former Molokai Electric Company generation site . In 1989, Maui Electric a |
Bank segment (HEI only)
Bank segment (HEI only) | 12 Months Ended |
Dec. 31, 2017 | |
Bank Segment Disclosure [Abstract] | |
Bank segment (HEI only) | 4 · Bank segment (HEI only) Selected financial information American Savings Bank, F.S.B. Statements of Income Data Years ended December 31 2017 2016 2015 (in thousands) Interest and dividend income Interest and fees on loans $ 207,255 $ 199,774 $ 184,782 Interest and dividends on investment securities 28,823 19,184 15,120 Total interest and dividend income 236,078 218,958 199,902 Interest expense Interest on deposit liabilities 9,660 7,167 5,348 Interest on other borrowings 2,496 5,588 5,978 Total interest expense 12,156 12,755 11,326 Net interest income 223,922 206,203 188,576 Provision for loan losses 10,901 16,763 6,275 Net interest income after provision for loan losses 213,021 189,440 182,301 Noninterest income Fees from other financial services 22,796 22,384 22,211 Fee income on deposit liabilities 22,204 21,759 22,368 Fee income on other financial products 7,205 8,707 8,094 Bank-owned life insurance 5,539 4,637 4,078 Mortgage banking income 2,201 6,625 6,330 Gains on sale of investment securities, net — 598 — Other income, net 1,617 2,256 4,750 Total noninterest income 61,562 66,966 67,831 Noninterest expense Compensation and employee benefits 95,751 90,117 90,518 Occupancy 16,699 16,321 16,365 Data processing 13,280 13,030 12,103 Services 10,994 11,054 10,204 Equipment 7,232 6,938 6,577 Office supplies, printing and postage 6,182 6,075 5,749 Marketing 3,501 3,489 3,463 FDIC insurance 2,904 3,543 3,274 Other expense 19,324 18,487 18,067 Total noninterest expense 175,867 169,054 166,320 Income before income taxes 98,716 87,352 83,812 Income taxes 31,719 30,073 29,082 Net income $ 66,997 $ 57,279 $ 54,730 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2017 2016 2015 Interest and dividend income $ 236,078 $ 218,958 $ 199,902 Noninterest income 61,562 66,966 67,831 *Revenues-Bank 297,640 285,924 267,733 Total interest expense 12,156 12,755 11,326 Provision for loan losses 10,901 16,763 6,275 Total noninterest expense 175,867 169,054 166,320 *Expenses-Bank 198,924 198,572 183,921 Income before income taxes/*Operating income-Bank $ 98,716 $ 87,352 $ 83,812 Statements of Comprehensive Income Data Years ended December 31 2017 2016 2015 (in thousands) Net income $ 66,997 $ 57,279 $ 54,730 Other comprehensive income (loss), net of taxes: Net unrealized losses on available-for sale investment securities: Net unrealized losses on available-for sale investment securities arising during the period, net of tax benefits of $2,886, $3,763 and $1,541 for 2017, 2016 and 2015, respectively (4,370 ) (5,699 ) (2,334 ) Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238 and nil for 2017, 2016 and 2015, respectively — (360 ) — Retirement benefit plans: Net gains arising during the period, net of taxes of nil, nil and $59 for 2017, 2016 and 2015, respectively — — 90 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $812, $566 and $1,011 for 2017, 2016 and 2015, respectively 1,231 857 1,531 Other comprehensive loss, net of tax benefits (3,139 ) (5,202 ) (713 ) Comprehensive income $ 63,858 $ 52,077 $ 54,017 Balance Sheets Data December 31 2017 2016 (in thousands) Assets Cash and due from banks $ 140,934 $ 137,083 Interest-bearing deposits 93,165 52,128 Restricted cash — 1,764 Investment securities Available-for-sale, at fair value 1,401,198 1,105,182 Held-to-maturity, at amortized cost (fair value of $44,412 and nil, respectively) 44,515 — Stock in Federal Home Loan Bank, at cost 9,706 11,218 Loans receivable held for investment 4,670,768 4,738,693 Allowance for loan losses (53,637 ) (55,533 ) Net loans 4,617,131 4,683,160 Loans held for sale, at lower of cost or fair value 11,250 18,817 Other 398,570 329,815 Goodwill 82,190 82,190 Total assets $ 6,798,659 $ 6,421,357 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,760,233 $ 1,639,051 Deposit liabilities–interest-bearing 4,130,364 3,909,878 Other borrowings 190,859 192,618 Other 110,356 101,635 Total liabilities 6,191,812 5,843,182 Commitments and contingencies Common stock 1 1 Additional paid in capital 345,018 342,704 Retained earnings 292,957 257,943 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (14,951 ) $ (7,931 ) Retirement benefit plans (16,178 ) (31,129 ) (14,542 ) (22,473 ) Total shareholder’s equity 606,847 578,175 Total liabilities and shareholder’s equity $ 6,798,659 $ 6,421,357 December 31 2017 2016 (in thousands) Other assets Bank-owned life insurance $ 148,775 $ 143,197 Premises and equipment, net 136,270 90,570 Prepaid expenses 3,961 3,348 Accrued interest receivable 18,724 16,824 Mortgage-servicing rights 8,639 9,373 Low-income housing investments 59,016 47,081 Real estate acquired in settlement of loans, net 133 1,189 Other 23,052 18,233 $ 398,570 $ 329,815 Other liabilities Accrued expenses $ 39,312 $ 36,754 Federal and state income taxes payable 3,736 4,728 Cashier’s checks 27,000 24,156 Advance payments by borrowers 10,245 10,335 Other 30,063 25,662 $ 110,356 $ 101,635 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. The increase in premises and equipment, net was due to the expenditures of $32.7 million for the new campus project. 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, 2017 Available-for-sale U.S. Treasury and federal agency obligations $ 185,891 $ 438 $ (2,031 ) $ 184,298 15 $ 83,137 $ (825 ) 8 $ 62,296 $ (1,206 ) Mortgage-related securities- FNMA, FHLMC and GNMA 1,220,304 793 (19,624 ) 1,201,473 67 653,635 (6,839 ) 77 459,912 (12,785 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,421,622 $ 1,231 $ (21,655 ) $ 1,401,198 82 $ 736,772 $ (7,664 ) 85 $ 522,208 $ (13,991 ) Held-to-maturity Mortgage-related securities- FNMA, FHLMC and GNMA $ 44,515 $ 1 $ (104 ) $ 44,412 2 $ 35,744 $ (104 ) — $ — $ — $ 44,515 $ 1 $ (104 ) $ 44,412 2 $ 35,744 $ (104 ) — $ — $ — 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 ) ASB did not have any investment securities classified as held-to-maturity as of December 31, 2016. ASB does not believe that the investment securities that were in an unrealized loss position as of December 31, 2017 , represent an OTTI. 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 2017 , 2016 and 2015 . 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 investment securities were as follows: Amortized Fair December 31, 2017 Cost value (in thousands) Available-for-sale Due in one year or less $ 5,000 $ 4,992 Due after one year through five years 87,404 87,020 Due after five years through ten years 80,161 79,358 Due after ten years 28,753 28,355 201,318 199,725 Mortgage-related securities-FNMA, FHLMC and GNMA 1,220,304 1,201,473 $ 1,421,622 $ 1,401,198 Held-to-maturity Mortgage-related securities-FNMA, FHLMC and GNMA $ 44,515 $ 44,412 $ 44,515 $ 44,412 The proceeds, gross gains and losses from sales of available-for-sale investment securities were as follows: Years ended December 31 2017 2016 2015 (in millions) Proceeds $ — $ 16.4 $ — Gross gains — 0.6 — Gross losses — — — Interest income from taxable and non-taxable investment securities were as follows: Years ended December 31 2017 2016 2015 (in thousands) Taxable $ 28,398 $ 19,166 $ 15,120 Non-taxable 425 18 — $ 28,823 $ 19,184 $ 15,120 ASB pledged securities with a market value of approximately $411.4 million and $277.1 million as of December 31, 2017 and 2016 , respectively, as collateral for public funds and other deposits, automated clearinghouse transactions with Bank of Hawaii, 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, 2017 and 2016 , securities with a carrying value of $165.1 million and $114.9 million , respectively, were pledged as collateral for securities sold under agreements to repurchase. Stock in FHLB . As of December 31, 2017 and 2016 , ASB’s stock in FHLB was carried at cost ( $9.7 million and $11.2 million , respectively) because it can only be redeemed at par and it is a required investment based on measurements of ASB’s capital, assets and borrowing levels. Periodically and as conditions warrant, ASB reviews its investment in the stock of the FHLB for impairment. ASB evaluated its investment in FHLB stock for OTTI as of December 31, 2017 , consistent with its accounting policy. ASB did not recognize an OTTI loss for 2017 based on its evaluation of the underlying investment. Future deterioration in the FHLB's financial position and/or negative developments in any of the factors considered in ASB's impairment evaluation may result in future impairment losses. Loans receivable. The components of loans receivable were summarized as follows: December 31 2017 2016 (in thousands) Real estate: Residential 1-4 family $ 2,118,047 $ 2,048,051 Commercial real estate 733,106 800,395 Home equity line of credit 913,052 863,163 Residential land 15,797 18,889 Commercial construction 108,273 126,768 Residential construction 14,910 16,080 Total real estate 3,903,185 3,873,346 Commercial 544,828 692,051 Consumer 223,564 178,222 Total loans 4,671,577 4,743,619 Less: Deferred fees and discounts (809 ) (4,926 ) Allowance for loan losses (53,637 ) (55,533 ) Total loans, net $ 4,617,131 $ 4,683,160 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 , $1.2 billion and $1.5 billion as of December 31, 2017 , 2016 and 2015 , respectively), which are not included in the accompanying 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, 2017 and 2016 , ASB had pledged loans with an amortized cost of approximately $2.4 billion as collateral to secure advances from the FHLB. As of December 31, 2017 and 2016 , 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 $23.8 million and $22.9 million , respectively. As of December 31, 2017 and 2016 , $18.7 million and $19.0 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. 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, 2017 Allowance for loan losses: Beginning balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ — $ 55,533 Charge-offs (826 ) — (14 ) (210 ) — — (4,006 ) (11,757 ) — (16,813 ) Recoveries 157 — 308 482 — — 1,852 1,217 — 4,016 Provision 698 (208 ) 2,189 (1,114 ) (1,778 ) — (3,613 ) 14,727 — 10,901 Ending balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ — $ 53,637 Ending balance: individually evaluated for impairment $ 1,248 $ 65 $ 647 $ 47 $ — $ — $ 694 $ 29 $ 2,730 Ending balance: collectively evaluated for impairment $ 1,654 $ 15,731 $ 6,875 $ 849 $ 4,671 $ 12 $ 10,157 $ 10,958 $ — $ 50,907 Financing Receivables: Ending balance $ 2,118,047 $ 733,106 $ 913,052 $ 15,797 $ 108,273 $ 14,910 $ 544,828 $ 223,564 $ 4,671,577 Ending balance: individually evaluated for impairment $ 18,284 $ 1,016 $ 8,188 $ 1,265 $ — $ — $ 4,574 $ 66 $ 33,393 Ending balance: collectively evaluated for impairment $ 2,099,763 $ 732,090 $ 904,864 $ 14,532 $ 108,273 $ 14,910 $ 540,254 $ 223,498 $ 4,638,184 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 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. An asset classified Loss is considered uncollectible and has such little value that its continuance as a bankable asset is not warranted. The credit risk profile by internally assigned grade for loans was as follows: December 31 2017 2016 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 630,877 $ 83,757 $ 492,942 $ 1,207,576 $ 701,657 $ 102,955 $ 614,139 $ 1,418,751 Special mention 49,347 22,500 27,997 99,844 65,541 — 25,229 90,770 Substandard 52,882 2,016 23,421 78,319 33,197 23,813 52,683 109,693 Doubtful — — 468 468 — — — — Loss — — — — — — — — Total $ 733,106 $ 108,273 $ 544,828 $ 1,386,207 $ 800,395 $ 126,768 $ 692,051 $ 1,619,214 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, 2017 Real estate: Residential 1-4 family $ 1,532 $ 1,715 $ 5,071 $ 8,318 $ 2,109,729 $ 2,118,047 $ — Commercial real estate — — — — 733,106 733,106 — Home equity line of credit 425 114 2,051 2,590 910,462 913,052 — Residential land 23 — 625 648 15,149 15,797 — Commercial construction — — — — 108,273 108,273 — Residential construction — — — — 14,910 14,910 — Commercial 1,825 2,025 730 4,580 540,248 544,828 — Consumer 3,432 2,159 1,876 7,467 216,097 223,564 — Total loans $ 7,237 $ 6,013 $ 10,353 $ 23,603 $ 4,647,974 $ 4,671,577 $ — 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 $ — The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due, and TDR loans was as follows: December 31 2017 2016 (in thousands) Real estate: Residential 1-4 family $ 12,598 $ 11,154 Commercial real estate — 223 Home equity line of credit 4,466 3,080 Residential land 841 878 Commercial construction — — Residential construction — — Commercial 3,069 6,708 Consumer 2,617 1,282 Total nonaccrual loans $ 23,591 $ 23,325 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 $ 10,982 $ 14,450 Commercial real estate 1,016 1,346 Home equity line of credit 6,584 4,934 Residential land 425 2,751 Commercial construction — — Residential construction — — Commercial 1,741 14,146 Consumer 66 10 Total troubled debt restructured loans not included above $ 20,814 $ 37,637 The total carrying amount and the total unpaid principal balance of impaired loans were as follows: December 31 2017 2016 (in thousands) Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded Real estate: Residential 1-4 family $ 9,097 $ 9,644 $ — $ 9,571 $ 10,400 $ — Commercial real estate — — — 223 228 — Home equity line of credit 1,496 1,789 — 1,500 1,900 — Residential land 1,143 1,434 — 1,218 1,803 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 2,328 3,166 — 6,299 8,869 — Consumer 8 8 — — — — 14,072 16,041 — 18,811 23,200 — With an allowance recorded Real estate: Residential 1-4 family 9,187 9,390 1,248 10,283 10,486 1,352 Commercial real estate 1,016 1,016 65 1,346 1,346 80 Home equity line of credit 6,692 6,736 647 4,658 4,712 215 Residential land 122 122 47 2,411 2,411 789 Commercial construction — — — — — — Residential construction — — — — — — Commercial 2,246 2,252 694 14,240 14,240 1,641 Consumer 58 58 29 10 10 6 19,321 19,574 2,730 32,948 33,205 4,083 Total Real estate: Residential 1-4 family 18,284 19,034 1,248 19,854 20,886 1,352 Commercial real estate 1,016 1,016 65 1,569 1,574 80 Home equity line of credit 8,188 8,525 647 6,158 6,612 215 Residential land 1,265 1,556 47 3,629 4,214 789 Commercial construction — — — — — — Residential construction — — — — — — Commercial 4,574 5,418 694 20,539 23,109 1,641 Consumer 66 66 29 10 10 6 $ 33,393 $ 35,615 $ 2,730 $ 51,759 $ 56,405 $ 4,083 ASB's average recorded investment of, and interest income recognized from, impaired loans were as follows: December 31 2017 2016 2015 (in thousands) Average Interest Average Interest Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 9,440 $ 316 $ 10,136 $ 324 $ 11,215 $ 332 Commercial real estate 91 11 1,124 — 370 74 Home equity line of credit 1,976 101 1,105 23 484 4 Residential land 1,094 117 1,518 66 2,397 137 Commercial construction — — — — — — Residential construction — — — — — — Commercial 2,776 54 8,694 370 5,185 157 Consumer 1 — 2 — — — 15,378 599 22,579 783 19,651 704 With an allowance recorded Real estate: Residential 1-4 family 9,818 493 11,589 457 11,578 562 Commercial real estate 1,241 54 1,962 15 1,699 — Home equity line of credit 5,045 251 3,765 137 1,597 49 Residential land 1,308 97 2,964 206 4,337 318 Commercial construction — — — — — — Residential construction — — — — — — Commercial 3,691 723 16,106 456 12,507 211 Consumer 57 3 12 — 14 — 21,160 1,621 36,398 1,271 31,732 1,140 Total Real estate: Residential 1-4 family 19,258 809 21,725 781 22,793 894 Commercial real estate 1,332 65 3,086 15 2,069 74 Home equity line of credit 7,021 352 4,870 160 2,081 53 Residential land 2,402 214 4,482 272 6,734 455 Commercial construction — — — — — — Residential construction — — — — — — Commercial 6,467 777 24,800 826 17,692 368 Consumer 58 3 14 — 14 — $ 36,538 $ 2,220 $ 58,977 $ 2,054 $ 51,383 $ 1,844 * Since loan was classified as impaired. Troubled debt restructurings. A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider. 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 2017 , 2016 , and 2015 and the impact on the allowance for loan losses were as follows: (dollars in thousands) Number of contracts Outstanding recorded investment Net increase in ALLL Years ended Pre-modification Post-modification December 31, 2017 Real estate: Residential 1-4 family 7 $ 742 $ 750 $ 45 Commercial real estate — — — — Home equity line of credit 46 3,016 3,002 557 Residential land 1 92 92 — Commercial construction — — — — Residential construction — — — — Commercial 9 889 889 248 Consumer 1 59 59 27 64 $ 4,798 $ 4,792 $ 877 December 31, 2016 Real estate: Residential 1-4 family 14 $ 3,131 $ 3,245 $ 337 Commercial real estate — — — — Home equity line of credit 36 3,337 3,337 554 Residential land 2 203 204 — Commercial construction — — — — Residential construction — — — — Commercial 15 20,266 20,266 865 Consumer — — — — 67 $ 26,937 $ 27,052 $ 1,756 December 31, 2015 Real estate: Residential 1-4 family 19 $ 3,594 $ 3,668 $ 87 Commercial real estate 1 1,500 1,500 — Home equity line of credit 39 2,441 2,441 370 Residential land 1 218 218 — Commercial construction — — — — Residential construction — — — — Commercial 8 2,267 2,267 486 Consumer — — — — 68 $ 10,020 $ 10,094 $ 943 Loans modified in TDRs that experienced a payment default of 90 days or more in 2017 , 2016 , and 2015 and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2017 2016 2015 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Number of Recorded Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family 1 $ 222 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 — — — — — — 1 $ 222 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 nil and $2.6 million at December 31, 2017 and 2016 , respectively. The Company had $4.3 million and $3.9 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at December 31, 2017 and 2016 , respectively. 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 $128.0 million , $236.1 million and $275.3 million of proceeds from the sale of residential mortgages in 2017 , 2016 , and 2015 , respectively, and recognized gains on such sales of $2.2 million , $6.6 million , and $6.3 million in 2017 , 2016 , and 2015 , respectively. Repurchased mortgage loans were nil for 2017 , 2016 and 2015 . Mortgage servicing fees, a component of other income, net, were $3.0 million , $2.9 million , and $3.5 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Changes in the carrying value of mortgage servicing rights were as follows: (in thousands) Gross 1 Accumulated amortization 1 Valuation allowance Net December 31, 2017 $ 17,511 $ (8,872 ) $ — $ 8,639 December 31, 2016 $ 17,271 $ (7,898 ) $ — $ 9,373 1 Reflects impact of loans paid in full. Changes related to mortgage servicing rights were as follows: (in thousands) 2017 2016 2015 Mortgage servicing rights Balance, January 1 $ 9,373 $ 8,884 $ 11,749 Amount capitalized 1,239 2,740 3,123 Amortization (1,973 ) (2,251 ) (2,682 ) Sale of mortgage servicing rights — — (3,302 ) Other-than-temporary impairment — — (4 ) Carrying amount before valuation allowance, December 31 8,639 9,373 8,884 Valuation allowance for mortgage servicing rights Balance, January 1 — — 209 Provision (recovery) — — (205 ) Other-than-temporary impairment — — (4 ) Balance, December 31 — — — Net carrying value of mortgage servicing rights $ 8,639 $ 9,373 $ 8,884 The estimated aggregate amortization expenses of mortgage servicing rights for 2018 , 2019 , 2020 , 2021 and 2022 are $1.3 million , $1.1 million , $1.0 million , $0.9 million and $0.8 million , respectively. ASB capitalizes mortgage servicing rights acquired upon the sale of mortgage loans 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 serv |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-term borrowings | 5 · Short-term borrowings As of December 31, 2017 , HEI had $63 million of outstanding commercial paper, with a weighted-average interest rate of 2.5% and Hawaiian Electric had $5 million of outstanding commercial paper, with a weighted-average interest rate of 2.3% . As of December 31, 2016 , HEI and Hawaiian Electric had no commercial paper outstanding. On October 6, 2017, HEI entered into a 364 -day, $125 million unsecured loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., which includes substantially the same financial covenant and customary conditions as the loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank, National Association that matured on the same date. On October 6, 2017, HEI drew a $125 million Eurodollar loan for a term of 364 days at resetting 1-month interest periods, with interest rates that ranged from 1.99% to 2.14% through December 31, 2017. The proceeds from this loan were used to pay off a $125 million long-term loan maturing on the same date. Further, $75 million of this loan was repaid in November 2017 with proceeds from a $150 million long-term loan (described in Note 6 below). As of December 31, 2017 , HEI and Hawaiian Electric maintained syndicated credit facilities of $150 million and $200 million , respectively (see description of credit agreements below). Both HEI and Hawaiian Electric had no borrowings under their respective facilities during 2016 and 2017 . None of the facilities are collateralized. In December 2017, HEI entered into three letters of credit in the aggregate amount of $6.7 million on behalf of Hamakua Energy. Credit agreements. HEI and Hawaiian Electric each entered into a separate agreement with a syndicate of eight financial institutions (the HEI Facility and Hawaiian Electric Facility, respectively, and together, the Facilities), effective July 3, 2017, to amend and restate their respective previously existing revolving unsecured credit agreements. The $150 million HEI Facility extended the term of the facility to June 30, 2022. The $200 million Hawaiian Electric Facility has an initial term that expires on June 29, 2018, but its term will extend to June 30, 2022 upon approval by the PUC during the initial term, which approval is currently being requested. Under the Facilities, draws would generally bear interest, based on each company’s respective current long-term credit ratings, at the “Adjusted LIBO Rate,” as defined in the agreement, plus 1.375% and annual fees on undrawn commitments, excluding swingline borrowings, of 20 basis points. The Facilities contain provisions for pricing adjustments in the event of a long-term ratings change based on the respective Facilities’ ratings-based pricing grid, which includes the ratings by Fitch, Moody’s and S&P. Certain modifications were made to incorporate some updated terms and conditions customary for facilities of this type. The Facilities continue to contain customary conditions that must be met in order to draw on them, including compliance with covenants (such as covenants preventing HEI’s/Hawaiian Electric’s subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, HEI/Hawaiian Electric; and a covenant in Hawaiian Electric’s facility restricting Hawaiian Electric’s 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% ). Under the HEI Facility, it is an event of default if HEI fails to maintain an unconsolidated “Capitalization Ratio” (funded debt) of 50% or less or if HEI no longer owns Hawaiian Electric or ASB. Under the Hawaiian Electric Facility, it is an event of default if Hawaiian Electric fails to maintain a “Consolidated Capitalization Ratio” (equity) of at least 35% , or if Hawaiian Electric is no longer owned by HEI. The Facilities will be maintained to support each company’s respective short-term commercial paper program, but may be drawn on to meet each company’s respective working capital needs and general corporate purposes. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term debt | 6 · Long-term debt December 31 2017 2016 (dollars in thousands) Long-term debt of Utilities, net of unamortized debt issuance costs 1 $ 1,368,479 $ 1,319,260 Hamakua Energy 4.02% notes, due 2030 67,325 — HEI 2.99% term loan, due 2022 150,000 — HEI 5.67% senior notes, due 2021 50,000 50,000 HEI 3.99% senior notes, due 2023 50,000 50,000 HEI term loans LIBOR + 0.75%, paid 2017 — 200,000 Less unamortized debt issuance costs (2,007 ) (241 ) $ 1,683,797 $ 1,619,019 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, 2017 , the aggregate principal payments required on the Company’s long-term debt for 2018 through 2022 are $54 million in 2018 , $4 million in 2019 , $100 million in 2020 , $54 million in 2021 and $206 million in 2022 . As of December 31, 2017 , the aggregate payments of principal required on the Utilities' long-term debt for 2018 through 2022 are $50 million in 2018 , nil in 2019 , $96 million in 2020 , nil in 2021 and $52 million in 2022 . 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 existing second amended revolving noncollateralized credit agreement, expiring on June 30, 2022. Upon a change of control or certain dispositions of assets (as defined in the Master Note Purchase Agreement dated March 24, 2011), HEI is required to offer to prepay the senior notes. The Utilities’ senior notes contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the notes of each and all of the utilities then outstanding becoming immediately due and payable) and provisions requiring the maintenance by Hawaiian Electric, and each of Hawaii Electric Light and Maui Electric, of certain financial ratios generally consistent with those in Hawaiian Electric’s existing second amended revolving noncollateralized credit agreement, expiring on June 29, 2018, but its term will extend to June 30, 2022, upon approval by the PUC during the initial term. (See Note 5 of the Consolidated Financial Statements). Changes in long-term debt. HEI . On October 6, 2017, HEI entered into a loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and drew a $125 million unsecured Eurodollar loan for a term of 364 days at resetting interest periods and rates (described in Note 5 above). HEI used the proceeds of this short-term loan to pay off a $125 million long-term loan maturing on the same date. On November 20, 2017, HEI entered into a $150 million unsecured loan agreement with Bank of America, N.A. (BOA Loan Agreement) at a fixed interest rate of 2.99% with a maturity date of November 20, 2022. The BOA Loan Agreement includes substantially the same financial covenant and customary conditions as the HEI credit agreement described in Note 5 above. Proceeds of the loan were used to repay a $75 million term loan ahead of its March 2018 maturity and to repay $75 million of the $125 million short-term loan drawn on October 6, 2017. The loan under the BOA Loan Agreement may be prepaid in full or in part at any time with a prepayment fee calculated by Bank of America, N.A. Hamakua Energy . On December 26, 2017, Hamakua Energy issued $67.3 million of senior secured notes at a fixed interest rate of 4.02% with quarterly principal and interest payments as defined in the note purchase agreement and a final maturity date of December 31, 2030. The net proceeds were used to pay down an intercompany loan from HEI. HEI used the proceeds primarily to pay down commercial paper. The loan may be prepaid in full or in part with a "make-whole" amount as defined in the agreement. Hawaiian Electric . On June 29, 2017, the DBF for the benefit of the Utilities, issued, at par: Refunding Series 2017A Special Purpose Revenue Bonds Refunding Series 2017B Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 3.10% 4.00% Maturity date May 1, 2026 March 1, 2037 DBF loaned the proceeds to: Hawaiian Electric $62 million $100 million Hawaii Electric Light $8 million $20 million Maui Electric $55 million $20 million Proceeds from the sale were applied to redeem at par bonds previously issued by the DBF for the benefit of the Utilities: Refunding Series 2007B Special Purpose Revenue Bonds Series 2007A Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 4.60% 4.65% Maturity date May 1, 2026 March 1, 2037 On December 14, 2017, Hawaiian Electric and Maui Electric issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), $40 million and $10 million , respectively, of Series 2017A unsecured senior notes bearing taxable interest of 4.31% , which are due December 1, 2047 (the Notes) and include substantially the same financial covenants and customary conditions as Hawaiian Electric's credit agreement as described above. Hawaiian Electric is also a party as guarantor under the Note Purchase Agreement entered into by Maui Electric. All the proceeds of the Notes were used by Hawaiian Electric and Maui Electric to finance their 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.” |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' equity | 7 · Shareholders’ equity Reserved shares. As of December 31, 2017 , HEI had reserved a total of 12,158,460 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 for 6.1 million shares of HEI common stock at $26.75 per share. On March 20, 2015, HEI settled the remaining 4.7 million shares under the equity forward for proceeds of $104.5 million (net of the underwriting discount of $4.7 million ), which funds were used for the reduction of debt and for general corporate purposes. The proceeds were recorded in equity at the time of settlement. Prior to their settlement, the shares remaining under the equity forward transactions were reflected in HEI’s diluted EPS calculations using the treasury stock method. For 2015, 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 gains (losses) on derivatives Retirement benefit plans AOCI Balance, December 31, 2014 $ 462 $ (289 ) $ (27,551 ) $ (27,378 ) $ — $ 45 $ 45 Current period other comprehensive income (loss), net of taxes (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 income (loss), net of taxes (6,059 ) (400 ) (408 ) (6,867 ) (454 ) (793 ) (1,247 ) Balance, December 31, 2016 (7,931 ) (454 ) (24,744 ) (33,129 ) (454 ) 132 (322 ) Current period other comprehensive income (loss), net of taxes (4,370 ) 454 2,544 (1,372 ) 454 (1,142 ) (688 ) Reclass of AOCI for tax rate reduction impact (2,650 ) — (4,790 ) (7,440 ) — (209 ) (209 ) Balance, December 31, 2017 $ (14,951 ) $ — $ (26,990 ) $ (41,941 ) $ — $ (1,219 ) (1,219 ) Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Statement of Years ended December 31 2017 2016 2015 Income/Balance Sheet (in thousands) HEI consolidated Net realized gains on securities included in net income $ — $ (360 ) $ — Revenues-bank (gains on sale of investment securities, net) Derivatives qualifying as cash flow hedges: Window forward contracts 454 (173 ) — Property, plant and equipment-electric utilities (2017); Revenues-electric utilities (gains on window forward contracts (2016) Interest rate contracts (settled in 2011) — 54 235 Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 15,737 14,518 22,465 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (78,724 ) 28,584 (25,139 ) See Note 8 for additional details Total reclassifications $ (62,533 ) $ 42,623 $ (2,439 ) Hawaiian Electric consolidated Derivatives qualifying as cash flow hedges Window forward contracts 454 (173 ) — Property, plant and equipment (2017); Revenues (gains on window forward contracts (2016) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 14,477 $ 13,254 $ 20,381 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (78,724 ) 28,584 (25,139 ) See Note 8 for additional details Total reclassifications $ (63,793 ) $ 41,665 $ (4,758 ) |
Retirement benefits
Retirement benefits | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement benefits | 8 · 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 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. 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 for participants at benefit levels as of that date. The Company’s and Utilities' cost for OPEB has been adjusted to reflect the plan amendments, which reduced benefits and created prior service credits to be amortized over average future service of affected participants. The amortization of the prior service credit will reduce benefit costs over the next few years until the various credit bases are fully recognized. Each participating employer reserves the right to terminate its participation in the Hawaiian Electric Benefits Plan at any time. Balance sheet recognition of the funded status of retirement plans. Employers must recognize on their balance sheets the funded status of defined benefit pension and other postretirement benefit plans with an offset to AOCI in shareholders’ equity (using the projected benefit obligation (PBO) and accumulated postretirement benefit obligation (APBO), to calculate the funded status). The PUC allowed the Utilities to adopt pension and OPEB tracking mechanisms in previous rate cases. The amount of the net periodic pension cost (NPPC) and net periodic benefits costs (NPBC) to be recovered in rates is established by the PUC in each rate case. Under the Utilities’ tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case. Accordingly, all retirement benefit expenses (except for executive life and nonqualified pension plan expenses, which amounted to $1.1 million and $0.9 million in 2017 and 2016 , 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), 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 $(128) million pretax and $47 million pretax for 2017 and 2016 , 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 deductible contribution limit 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, (excluding amounts for executive life), except when limited by material, adverse consequences imposed by federal regulations. 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 2017 and 2016 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, 2017 and 2016 were as follows: 2017 2016 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,935,494 $ 233,835 $ 1,798,030 $ 221,540 Service cost 64,906 3,374 60,555 3,331 Interest cost 81,185 9,453 81,549 9,670 Actuarial losses (gains) 87,399 (25,557 ) 67,741 7,831 Participants contributions — 2,078 — 1,405 Benefits paid and expenses (74,628 ) (10,582 ) (72,381 ) (9,942 ) Benefit obligation, December 31 2,094,356 212,601 1,935,494 233,835 Fair value of plan assets, January 1 1,369,701 174,251 1,271,474 170,687 Actual return on plan assets 255,324 28,248 103,836 11,352 Employer contributions 66,983 — 65,463 42 Participants contributions — 2,078 — 1,405 Benefits paid and expenses (73,305 ) (10,582 ) (71,072 ) (9,235 ) Fair value of plan assets, December 31 1,618,703 193,995 1,369,701 174,251 Accrued benefit asset (liability), December 31 $ (475,653 ) $ (18,606 ) $ (565,793 ) $ (59,584 ) Other assets $ 15,443 $ — $ 13,477 $ — Defined benefit pension and other postretirement benefit plans liability (491,096 ) (18,606 ) (579,270 ) (59,584 ) Accrued benefit asset (liability), December 31 $ (475,653 ) $ (18,606 ) $ (565,793 ) $ (59,584 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 619,451 $ 42,290 $ 581,763 $ 32,550 Recognized during year – prior service credit 55 1,793 57 1,793 Recognized during year – net actuarial losses (26,496 ) (1,130 ) (24,832 ) (804 ) Occurring during year – net actuarial losses (gains) (65,180 ) (41,479 ) 62,463 8,751 AOCI debit before cumulative impact of PUC D&Os, December 31 527,830 1,474 619,451 42,290 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 $ 37,936 $ (1,293 ) $ 42,518 $ (1,684 ) Net actuarial loss $ 527,907 $ 10,183 $ 619,582 $ 52,792 Prior service gain (77 ) (8,709 ) (131 ) (10,502 ) AOCI debit before cumulative impact of PUC D&Os, December 31 527,830 1,474 619,451 42,290 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 37,936 (1,293 ) 42,518 (1,684 ) Income taxes (benefits) (9,986 ) 333 (16,746 ) 656 AOCI debit/(credit), net of taxes (benefits), December 31 $ 27,950 $ (960 ) $ 25,772 $ (1,028 ) As of December 31, 2017 and 2016, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. 2017 2016 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,779,626 $ 225,723 $ 1,649,690 $ 213,990 Service cost 63,059 3,353 58,796 3,284 Interest cost 74,632 9,115 74,808 9,337 Actuarial losses (gains) 80,186 (25,172 ) 63,121 7,545 Participants contributions — 2,047 — 1,389 Benefits paid and expenses (68,691 ) (10,419 ) (66,789 ) (9,822 ) Transfers (164 ) (3 ) — — Benefit obligation, December 31 1,928,648 204,644 1,779,626 225,723 Fair value of plan assets, January 1 1,233,184 171,383 1,141,833 167,930 Actual return on plan assets 237,830 27,806 93,441 11,168 Employer contributions 65,669 — 64,236 11 Participants contributions — 2,047 — 1,389 Benefits paid and expenses (68,225 ) (10,419 ) (66,326 ) (9,115 ) Other (55 ) (3 ) — — Fair value of plan assets, December 31 1,468,403 190,814 1,233,184 171,383 Accrued benefit liability, December 31 $ (460,245 ) $ (13,830 ) $ (546,442 ) $ (54,340 ) Other liabilities (short-term) (494 ) (633 ) (460 ) (596 ) Defined benefit pension and other postretirement benefit plans liability (459,751 ) (13,197 ) (545,982 ) (53,744 ) Accrued benefit liability, December 31 $ (460,245 ) $ (13,830 ) $ (546,442 ) $ (54,340 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 579,725 $ 40,967 $ 541,118 $ 31,485 Recognized during year – prior service credit (cost) (8 ) 1,804 (13 ) 1,803 Recognized during year – net actuarial losses (24,392 ) (1,102 ) (22,693 ) (793 ) Occurring during year – net actuarial losses (gains) (61,861 ) (40,830 ) 61,313 8,472 AOCI debit before cumulative impact of PUC D&Os, December 31 493,464 839 579,725 40,967 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 $ 3,570 $ (1,928 ) $ 2,792 $ (3,007 ) Net actuarial loss $ 493,439 $ 9,531 $ 579,691 $ 51,463 Prior service cost (gain) 25 (8,692 ) 34 (10,496 ) AOCI debit before cumulative impact of PUC D&Os, December 31 493,464 839 579,725 40,967 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 3,570 (1,928 ) 2,792 (3,007 ) Income taxes (benefits) (920 ) 497 (1,087 ) 1,170 AOCI debit/(credit), net of taxes (benefits), December 31 $ 2,650 $ (1,431 ) $ 1,705 $ (1,837 ) As of December 31, 2017 and 2016 , the other postretirement benefit plan shown in the table above had ABOs in excess of plan assets. The dates used to determine retirement benefit measurements for the defined benefit plans were December 31 of 2017 , 2016 and 2015 . The Pension Protection Act of 2006 (Pension Protection Act), 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. In 2014, the Highway and Transportation Funding Act of 2014 (HATFA) further amended the Pension Protection Act. 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. 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 2016 and 2017. Nevertheless, to satisfy the requirements of the Utilities pension tracking mechanism, the Utilities contributed the net periodic cost in 2016 and 2017 and expect to contribute the net periodic cost in 2018. 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 and related investment policy targets and ranges were as follows: Pension benefits 1 Other benefits 2 Investment policy Investment policy December 31 2017 2016 Target Range 2017 2016 Target Range Assets held by category Equity securities 73 % 71 % 70 % 65-75 73 % 70 % 70 % 65-75 Fixed income securities 27 29 30 25-35 27 30 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation is applicable to only HEI and the Utilities. As of December 31, 2017 and 2016, nearly all of ASB's 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 2017 Equity securities $ 568 $ 568 $ — $ — $ 75 $ 75 $ — $ — Equity index funds 435 435 — — 52 52 — — Equity investments at net asset value (NAV) 76 — — — 12 — — — Total equity investments 1,079 1,003 — — 139 127 — — Fixed income securities and public mutual funds 297 81 216 — 46 43 3 — Fixed income investments at NAV 203 — — — 4 — — — Total fixed income investments 500 81 216 — 50 43 3 — Cash equivalents at NAV 36 — — — 5 — — — Total $ 1,615 $ 1,084 $ 216 $ — $ 194 $ 170 $ 3 $ — Cash, receivables and payables, net 4 — Fair value of plan assets $ 1,619 $ 194 2016 Equity securities $ 692 $ 692 $ — $ — $ 94 $ 94 $ — $ — Equity index funds 129 129 — — 17 17 — — Equity investments at 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 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) 2017 Non U.S. equity funds (a) 76 Daily-Monthly 5 - 30 days 12 Daily-Monthly 5-30 days Fixed income investments (b) 203 Monthly 15 days 4 Monthly 15 days Cash equivalents (c) 36 Daily 0-1 day 5 Daily 0-1 day $ 315 $ 21 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 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, 2017 were: daily, 32% and monthly, 68% and as of December 31, 2016 were: daily, 31% ; monthly, 31% ; and quarterly, 38% . Redemption frequency for other benefits assets as of December 31, 2017 were: daily, 26% and monthly, 74% and as of December 31, 2016 were: monthly, 57% ; and quarterly, 42% . (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 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, 2017 and 2016 . 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 2017 2016 2015 2017 2016 2015 Benefit obligation Discount rate 3.74 % 4.26 % 4.60 % 3.72 % 4.22 % 4.57 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.26 4.60 4.22 4.22 4.57 4.17 Expected return on plan assets 1 7.50 7.75 7.75 7.50 7.75 7.75 Rate of compensation increase 2 3.5 3.5 3.5 NA NA NA NA Not applicable 1 For 2017 and 2016, HEI's and Utilities' plan assets only. For 2017 and 2016, ASB's expected return on plan assets was 4.46% and 4.80% , respectively. 2 The Company and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. The Company and the Utilities based their selection of an assumed discount rate for 2018 NPPC and NPBC and December 31, 2017 disclosure on a cash flow matching analysis that utilized bond information provided by Bloomberg for all non-callable, high quality bonds (generally rated Aa or better) as of December 31, 2017 . In selecting the expected rate of return on plan assets for 2018 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 3.94% , which is consistent with the assumed discount rate as of December 31, 2017 with a 20 basis point active manager premium. For 2017, retirement benefit plans' assets of HEI and the Utilities had a net return of 19.3% . 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, 2017 and 2016 (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, 2017 and 2016. As of December 31, 2017 , the assumed health care trend rates for 2018 and future years were as follows: medical, 7.5% , grading down to 5% for 2028 and thereafter; dental, 5% ; and vision, 4% . 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% . The components of NPPC and NPBC were as follows: Pension benefits Other benefits (in thousands) 2017 2016 2015 2017 2016 2015 HEI consolidated Service cost $ 64,906 $ 60,555 $ 66,260 $ 3,374 $ 3,331 $ 3,927 Interest cost 81,185 81,549 76,960 9,453 9,670 9,011 Expected return on plan assets (102,745 ) (98,559 ) (88,554 ) (12,326 ) (12,273 ) (11,664 ) Amortization of net prior service (gain) cost (55 ) (57 ) 4 (1,793 ) (1,793 ) (1,793 ) Amortization of net actuarial losses 26,496 24,832 36,800 1,130 804 1,796 Net periodic pension/benefit cost 69,787 68,320 91,470 (162 ) (261 ) 1,277 Impact of PUC D&Os (18,004 ) (18,117 ) (40,011 ) 1,211 1,343 (240 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 51,783 $ 50,203 $ 51,459 $ 1,049 $ 1,082 $ 1,037 Hawaiian Electric consolidated Service cost $ 63,059 $ 58,796 $ 64,262 $ 3,353 $ 3,284 $ 3,870 Interest cost 74,632 74,808 70,529 9,115 9,337 8,700 Expected return on plan assets (95,892 ) (91,633 ) (82,541 ) (12,147 ) (12,096 ) (11,495 ) Amortization of net prior service (gain) cost 8 13 40 (1,804 ) (1,803 ) (1,804 ) Amortization of net actuarial losses 24,392 22,693 33,371 1,102 793 1,754 Net periodic pension/benefit cost 66,199 64,677 85,661 (381 ) (485 ) 1,025 Impact of PUC D&Os (18,004 ) (18,117 ) (40,011 ) 1,211 1,343 (240 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 48,195 $ 46,560 $ 45,650 $ 830 $ 858 $ 785 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 2018 is as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Pension benefits Other benefits Pension benefits Other benefits Estimated prior service credit $ — $ (1.8 ) $ — $ (1.8 ) Net actuarial loss 29.6 — 26.8 — The Company recorded pension expense of $33 million , $33 million and $35 million and OPEB expense of $1.0 million , $1.0 million and $0.9 million in 2017 , 2016 and 2015 , respectively, and charged the remaining amounts primarily to electric utility plant. The Utilities recorded pension expense of $30 million , $30 million and $29 million and OPEB expense of $0.8 million , $0.7 million and $0.7 million in 2017 , 2016 and 2015 , 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, 2017 , 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 $2.7 million , and a one-percentage-point decrease would have reduced the total service and interest cost by $0.2 million and the APBO by $3.1 million . As of December 31, 2017 , 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 $2.7 million , and a one-percentage-point decrease would have reduced the total service and interest cost by $0.2 million and the APBO by $3.1 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 2017 2016 2017 2016 (in billions) Defined benefit plans - ABOs $ 1.8 $ 1.7 $ 1.7 $ 1.5 Defined benefit plans with ABO in excess of plan assets ABOs 1.7 1.6 1.7 1.5 Plan assets 1.5 1.3 1.5 1.2 Defined benefit plans with PBOs in excess of plan assets PBOs 2.0 1.8 1.9 1.8 Plan assets 1.5 1.3 1.5 1.2 HEI consolidated . The Company estimates that the cash funding for the qualified defined benefit pension plans in 2018 will be $62 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 2018 is nil . As of December 31, 2017 , the benefits expected to be paid under all retirement benefit plans in 2018 , 2019 , 2020 , 2021 , 2022 and 2023 through 2027 amount to $86 million , $89 million , $92 million , $95 million , $99 million and $552 million , respectively. Hawaiian Electric consolidated . The Utilities estimate that the cash funding for the qualified defined benefit pension plan in 2018 will be $61 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 2018 is nil . As of December 31, 2017 , the benefits expected to be paid under all retirement benefit plans in 2018 , 2019 , 2020 , 2021 , 2022 and 2023 through 2027 amounted to $79 million , $81 million , $84 million , $87 million , $90 million and $504 million , respectively. Defined contribution plans information. For 2017 , 2016 and 2015 , the Company’s expenses for its defined contribution pension plans under the HEIRSP and the ASB 401(k) Plan were $7 million , $5 million and $6 million , respectively, and cash contributions were $6 million , $5 million and $5 million , respectively. The Utilities’ expenses and cash contributions for its defined contribution pension plan under the HEIRSP Plan for 2017 , 2016 and 2015 were $2.0 million , $1.5 million and $1.5 million , respectively. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | 9 · 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, 2017 , approximately 3.3 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 0.4 million shares that could be issued upon the vesting of outstanding restricted stock units and the achievement of performance goals for awards outstanding under long-term incentive plans (assuming that such performance goals are achieved at maximum levels). Restricted stock units awarded under the 2010 Equity and Incentive Plan in 2017, 2016, 2015 and 2014 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 2017-2019 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, 2017 , there were 85,428 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) 2017 2016 2015 HEI consolidated Share-based compensation expense 1 $ 5.4 $ 4.8 $ 6.5 Income tax benefit 1.9 1.6 2.3 Hawaiian Electric consolidated Share-based compensation expense 1 1.9 1.4 1.9 Income tax benefit 0.7 0.5 0.7 1 For 2017 and 2016, the Company has not capitalized any share-based compensation. In 2015, $0.15 million of this share-based compensation expense was capitalized. 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) 2017 2016 2015 Shares granted 35,770 19,846 28,246 Fair value $ 1.2 $ 0.6 $ 0.8 Income tax benefit 0.5 0.2 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. Restricted stock units. Information about HEI’s grants of restricted stock units was as follows: 2017 2016 2015 Shares (1) Shares (1) Shares (1) Outstanding, January 1 220,683 $ 29.57 210,634 $ 28.82 261,235 $ 25.77 Granted 97,873 33.47 114,431 29.70 85,772 33.69 Vested (92,147 ) 28.88 (85,003 ) 27.84 (102,173 ) 25.67 Forfeited (29,362 ) 31.57 (19,379 ) 29.82 (34,200 ) 27.09 Outstanding, December 31 197,047 $ 31.53 220,683 $ 29.57 210,634 $ 28.82 Total weighted-average grant-date fair value of shares granted ($ millions) $ 3.3 $ 3.4 $ 2.9 (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2017 , 2016 and 2015 , total restricted stock units and related dividends that vested had a fair value of $3.5 million , $2.8 million and $3.7 million , respectively, and the related tax benefits were $1.1 million , $0.9 million and $1.1 million , respectively. As of December 31, 2017 , there was $4.0 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 2017-2019 LTIP provides for performance awards under the EIP of shares of HEI common stock based on the satisfaction of performance goals including a market condition goal. 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 and calculated dividend equivalents. The potential payout varies from 0% to 200% of the number of target shares depending on the achievement of the goals. The market condition goal is based on HEI’s total shareholder return (TSR) compared to the Edison Electric Institute Index over the three -year period. The other performance condition goals relate to EPS growth, return on average common equity (ROACE) and ASB’s efficiency ratio. The 2015-2017 and 2016-2018 LTIPs provide for performance awards payable in cash, and thus, are not included in the tables below. LTIP linked to TSR . Information about HEI’s LTIP grants linked to TSR was as follows: 2017 2016 2015 Shares (1) Shares (1) Shares (1) Outstanding, January 1 83,106 $ 22.95 162,500 $ 27.66 257,956 $ 28.45 Granted 37,204 39.51 — — — — Vested (issued or unissued and cancelled) (83,106 ) 22.95 (78,553 ) 32.69 (75,915 ) 30.71 Forfeited (4,300 ) 39.51 (841 ) 22.95 (19,541 ) 26.25 Outstanding, December 31 32,904 $ 39.51 83,106 $ 22.95 162,500 $ 27.66 Total weighted-average grant-date fair value of shares granted ($ millions) $ 1.5 $ — $ — (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. The grant date fair values of the shares were determined using a Monte Carlo simulation model utilizing actual information for the common shares of HEI and its peers for the period from the beginning of the performance period to the grant date and estimated future stock volatility and dividends of HEI and its peers over the remaining three -year performance period. The expected stock volatility assumptions for HEI and its peer group were based on the three-year historic stock volatility, and the annual dividend yield assumptions were based on dividend yields calculated on the basis of daily stock prices over the same three -year historical period. The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2017 Risk-free interest rate 1.46 % Expected life in years 3 Expected volatility 20.1 % Range of expected volatility for Peer Group 15.4% to 26.0% Grant date fair value (per share) $ 39.51 For 2017 , total vested LTIP awards linked to TSR and related dividends had a fair value of $1.9 million and the related tax benefits were $0.7 million . For 2016 and 2015 , all vested shares in the table above were unissued and cancelled (i.e., lapsed) because the TSR performance goal was not met. As of December 31, 2017 , there was $0.9 million of total unrecognized compensation cost related to the nonvested performance awards payable in shares linked to TSR. The cost is expected to be recognized over a weighted-average period of 2.0 years . LTIP awards linked to other performance conditions . Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows: 2017 2016 2015 Shares (1) Shares (1) Shares (1) Outstanding, January 1 109,816 $ 25.18 222,647 $ 26.02 364,731 $ 26.01 Granted 148,818 33.47 — — — — Vested (109,816 ) 25.18 (109,097 ) 26.89 (121,249 ) 26.05 Increase above target (cancelled) — — (1,989 ) 25.26 3,412 26.89 Forfeited (17,202 ) 33.48 (1,745 ) 25.19 (24,247 ) 25.82 Outstanding, December 31 131,616 $ 33.47 109,816 $ 25.18 222,647 $ 26.02 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ 5.0 $ — $ — (1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. For 2017 , 2016 and 2015 , total vested LTIP awards linked to other performance conditions and related dividends had a fair value of $4.2 million , $3.6 million and $4.7 million , respectively, and the related tax benefits were $1.6 million , $1.4 million and $1.8 million , respectively. As of December 31, 2017 , there was $2.9 million of total unrecognized compensation cost related to the nonvested shares linked to performance conditions other than TSR. The cost is expected to be recognized over a weighted-average period of 2.0 years . |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10 · 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 2017 2016 2015 2017 2016 2015 (in thousands) Federal Current $ 61,534 $ 59,873 $ 44,343 $ 36,267 $ 952 $ — Deferred* 33,967 43,666 36,664 35,229 70,513 68,757 Deferred tax credits, net (20 ) 268 318 (20 ) 268 318 95,481 103,807 81,325 71,476 71,733 69,075 State Current 10,076 16,473 2,402 8,947 9,232 (1,048 ) Deferred 3,868 3,452 4,768 2,808 3,873 6,869 Deferred tax credits, net (32 ) (37 ) 4,526 (32 ) (37 ) 4,526 13,912 19,888 11,696 11,723 13,068 10,347 Total $ 109,393 $ 123,695 $ 93,021 $ 83,199 $ 84,801 $ 79,422 * Included in the amounts for 2017 are federal deferred income tax expenses of $13.4 million and $9.2 million for the Company and Hawaiian Electric consolidated, respectively, primarily to reduce federal accumulated deferred income tax net asset balances (not accounted for under Utility regulatory ratemaking) to reflect the impact of the Tax Act. See “Lower tax rate” below. 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 2017 2016 2015 2017 2016 2015 (in thousands) Amount at the federal statutory income tax rate $ 96,796 $ 130,844 $ 89,176 $ 71,801 $ 80,190 $ 75,996 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 9,789 13,915 8,097 7,584 8,494 6,726 Net deferred tax asset adjustment related to the Tax Act 13,420 — — 9,168 — — Other, net (10,612 ) (21,064 ) (4,252 ) (5,354 ) (3,883 ) (3,300 ) Total $ 109,393 $ 123,695 $ 93,021 $ 83,199 $ 84,801 $ 79,422 Effective income tax rate 39.6 % 33.1 % 36.5 % 40.6 % 37.0 % 36.6 % 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 2017 2016 2017 2016 (in thousands) Deferred tax assets Regulatory liabilities, excluding amounts attributable to property, plant and equipment $ 104,984 $ — $ 104,984 $ — Net operating loss 1 — — — 9,158 Allowance for bad debts 16,192 24,500 1,812 2,364 Other 24,397 47,201 11,253 18,720 Total deferred tax assets 145,573 71,701 118,049 30,242 Deferred tax liabilities Property, plant and equipment related 415,452 642,266 413,891 640,667 Regulatory assets, excluding amounts attributable to property, plant and equipment 38,314 35,107 38,314 35,107 Deferred RAM and RBA revenues 15,038 26,053 15,038 26,053 Retirement benefits 32,952 48,400 38,020 51,445 Other 32,247 48,681 6,827 10,629 Total deferred tax liabilities 534,003 800,507 512,090 763,901 Net deferred income tax liability $ 388,430 $ 728,806 $ 394,041 $ 733,659 1 The Hawaiian Electric deferred tax asset for 2016 includes the tax effect of the federal net operating loss carryforward of $9 million , which was utilized in 2017, and federal general business credit carryforwards of $3 million utilized in 2017, 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, 2017 and 2016, valuation allowances for deferred tax benefits was nil and no t significant, respectively. In 2017 , the net deferred income tax liability increased primarily as a result of accelerated tax deductions taken for bonus depreciation enacted in the Protecting Americans from Tax Hikes Act of 2015. However, the December 31, 2017 balance decreased following the passage of the Tax Act as described below in "Recent tax developments". 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 did not anticipate any unutilized net operating loss (NOL) as of December 31, 2016 , standalone Hawaiian Electric consolidated recognized an unutilized NOL for federal tax purposes in accordance with the HEI tax sharing agreement. In 2017, the NOL was utilized by Hawaiian Electric consolidated, which reduced the deferred tax asset associated with this NOL to nil . The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2017, 2016 and 2015. HEI consolidated Hawaiian Electric consolidated (in millions) 2017 2016 2015 2017 2016 2015 Unrecognized tax benefits, January 1 $ 3.8 $ 3.6 $ — $ 3.8 $ 3.6 — Additions based on tax positions taken during the year 0.9 — — 0.4 — — Reductions based on tax positions taken during the year (0.2 ) (0.1 ) — (0.2 ) (0.1 ) — Additions for tax positions of prior years — 0.3 3.6 — 0.3 3.6 Reductions for tax positions of prior years (0.5 ) — — (0.5 ) — — Settlements — — — — — — Unrecognized tax benefits, December 31 $ 4.0 $ 3.8 $ 3.6 $ 3.5 $ 3.8 $ 3.6 At December 31, 2017 and 2016 , there were $0.5 million and nil , respectively, of unrecognized tax benefits that, if recognized, would affect the Company's annual effective tax rate. As of December 31, 2017 and 2016 , there were no unrecognized tax benefits that, if recognized, would affect the Utilities' annual effective tax rate. The Company and Utilities believe that the unrecognized tax benefits will not significantly increase or decrease within the next 12 months. 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 2017, 2016 and 2015, the Company recognized approximately $0.2 million , $0.2 million and $0.1 million in interest expense. The Company had $0.5 million and $0.3 million of interest accrued as of December 31, 2017 and 2016 , respectively. Hawaiian Electric consolidated. The Utilities recognize interest accrued related to unrecognized tax benefits in “Interest expense and other charges, net” and penalties, if any, in operating expenses. In 2017, 2016 and 2015, the Utilities recognized approximately $0.08 million , $0.03 million and $0.1 million , respectively, in interest expense. Additional interest expense related to the Utilities' unrecognized tax benefits was recognized at HEI Consolidated because of the Utilities NOL position. The Utilities had $0.2 million and $0.1 million of interest accrued as of December 31, 2017 and 2016 , respectively. As of December 31, 2017 , the disclosures above present the Company’s and the Utilities' accruals for potential tax liabilities, which involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts. 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 2013, 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 22, 2017, President Trump signed into law H.R. 1, originally known as the Tax Cuts and Jobs Act, as passed by Congress (Tax Act). This Tax Act is the first comprehensive change in the law since the 1986 Tax Reform Act and will impact all U.S. taxpayers. The changes for corporate taxpayers are numerous but the following summarizes the provisions that have the most impact on the Company. Lower tax rate. For the non-regulated entities (HEI corporate and ASB), the corporate income tax rate reduction from 35% to 21% for 2018 and subsequent years had an immediate income statement impact in 2017, as all accumulated deferred income tax balances (ADIT) were adjusted to reflect the new lower rate as of the enactment date with an offsetting net charge to income tax expense. The Utilities’ excess ADIT that was related to items excluded from regulatory rate base or ratemaking was also recorded as a charge to income tax expense in 2017. However, for regulated entities such as the Utilities, the excess ADIT included in their rates is expected to be returned to customers. The method and timing of returning this benefit will be determined with the approval of the PUC. Going forward for years after 2017, the Company will compute its income tax expense at the new 21% federal rate. The benefit of this lower rate will be reflected in the Utilities' rates, thereby passing the lower tax cost to their customers. The method and timing of adjusting rates for the new tax rate will be determined with the approval of the PUC, along with the return of excess ADIT discussed above. 100% bonus depreciation. The Tax Act allows 100% bonus depreciation through the end of 2022 for qualified property purchased and placed in service after September 27, 2017. However, the Tax Act provides that property used in the trade or business of a regulated utility (including the furnishing or selling electrical energy) is not qualified property. Thus, the Utilities have not taken any bonus depreciation on property placed in service after September 27, 2017. With respect to all other property, the Company expects to take the 100% bonus depreciation on qualified property purchased and placed in service after September 27, 2017. It is not clear what property will be grandfathered based on previous tax law, or whether property subject to written binding purchase contracts prior to September 28, 2017 will qualify for the 100% bonus depreciation. The Company has assumed that bonus depreciation does not apply in the areas that have not been clarified. Interest expense limitation. The Tax Act generally provides a limitation on the deductibility of interest expense in excess of 30% of a business’ adjusted taxable income plus interest income. Adjusted taxable income is essentially taxable income before interest income or expense, depreciation and amortization (adjustment for depreciation and amortization phases out after 2021). This limitation does not apply to interest properly allocable to the trade or business of furnishing or selling electricity and various other regulated utility activities. Thus, the Utilities are not subject to the interest limitation. With respect to the holding company and the bank activities, interest deductibility should not be limited by this new law since the interest income of the Bank more than offsets the interest expense allocated to the non-Utility activity. Other applicable provisions. There are a number of other provisions in the Tax Act that have an impact on the Company, including the narrowing of the exclusions from taxability of certain contributions in aid of construction (CIAC), the repeal of the domestic production activities deduction (DPAD), non-deductibility of transportation fringe benefits excluded from employees income, and the increased limitation on the deductibility of executive compensation. Staff Accounting Bulletin No. 118 (SAB No. 118). On December 22, 2017, the SEC staff issued SAB No. 118 to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In connection with its initial analysis of the impact of the Tax Act, the Company has calculated its best estimate in accordance with its understanding of the law and guidance available as of this filing. The Company has recorded a provisional discrete net tax expense of $13.4 million ( $9.2 million at the Utilities), in the period ended December 31, 2017. The provisional net expense primarily consists of the effect of the corporate rate reduction. The Act reduces the corporate tax rate to 21%, effective January 1, 2018 and results in a net deferred tax balance that is in excess of the taxes the Company expects to pay or be refunded in the future when the temporary differences creating these deferred taxes reverse. The excess related to the Utilities' deferred taxes that are expected to be refunded in rates is reclassified to a regulatory liability that will be returned to the customers prospectively. The remaining excess must be written off through deferred tax expense. Consequently the Company has recorded a provisional decrease in net deferred tax liabilities of $271.5 million ( $275.7 million at the Utilities), with the corresponding net adjustment to increase deferred income tax expense of $13.4 million ( $9.2 million at the Utilities) and to increase regulatory liabilities by $284.9 million . The provisional tax impacts included in the Company’s and Utilities financial statements for the year ended December 31, 2017 may differ from the ultimate impact due to additional analysis, changes in interpretations and assumptions the Company and Utilities have made, Internal Revenue Service and Joint Committee on Taxation guidance that may be issued, and actions the Company and Utilities may take as a result of the Tax Act. The accounting is expected to be complete in 2018. |
Cash flows
Cash flows | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash flows | 11 · Cash flows Years ended December 31 2017 2016 2015 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 83 $ 84 $ 83 Income taxes paid (including refundable credits) 55 55 75 Income taxes refunded (including refundable credits) 1 45 55 Hawaiian Electric consolidated Interest paid to non-affiliates 63 62 61 Income taxes paid (including refundable credits) 26 1 13 Income taxes refunded (including refundable credits) — 20 12 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 38 84 70 Common stock dividends reinvested in HEI common stock (financing) 1 — 17 — Loans transferred from held for investment to held for sale (investing) 41 24 — Real estate acquired in settlement of loans (investing) — 1 1 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) — 1 5 Common stock issued (gross) for director and executive/management compensation (financing) 2 11 7 10 Obligations to fund low income housing investments, net (investing) 13 — — Hawaiian Electric consolidated Electric utility property, plant and equipment Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 38 84 70 HEI Consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 18 28 3 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. 2 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Regulatory restrictions on net
Regulatory restrictions on net assets | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory restrictions on net assets | 12 · Regulatory restrictions on net assets As of December 31, 2017 , the Utilities could not transfer approximately $755 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, 2017 , in order to maintain its “well-capitalized” position, ASB could not transfer approximately $441 million of net assets to HEI. 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, 2017 | |
Risks and Uncertainties [Abstract] | |
Significant group concentrations of credit risk | 13 · 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, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 14 · Fair value measurements 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 of short-term borrowings 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 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. 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 . Residential and commercial loans are carried at the lower of cost or market and are valued using market observable pricing inputs, which are derived from third party loan sales 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. Since 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. Real estate acquired in settlement of loans . Foreclosed assets are carried at fair value (less estimated costs to sell) and are 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 (MSRs) 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. MSRs are evaluated for impairment at each reporting date. ASB's MSRs are 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 "Revenues - bank" 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 MSRs 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 of long-term debt of HEI and the Utilities 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 contracts . The estimated fair value of the Utilities’ window forward contracts 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 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, 2017 Financial assets HEI consolidated Available-for-sale investment securities $ 1,401,198 $ — $ 1,385,771 $ 15,427 $ 1,401,198 Held-to-maturity investment securities 44,515 — 44,412 — 44,412 Stock in Federal Home Loan Bank 9,706 — 9,706 — 9,706 Loans receivable, net 4,628,381 — 11,254 4,770,497 4,781,751 Mortgage servicing rights 8,639 — — 12,052 12,052 Derivative assets 17,812 — 393 — 393 Hawaiian Electric consolidated Derivative assets-window forward contracts 3,240 — 256 — 256 Financial liabilities HEI consolidated Deposit liabilities 5,890,597 — 5,884,071 — 5,884,071 Short-term borrowings—other than bank 117,945 — 117,945 — 117,945 Other bank borrowings 190,859 — 190,829 — 190,829 Long-term debt, net—other than bank 1,683,797 — 1,813,295 — 1,813,295 Derivative liabilities 13,562 20 10 — 30 Hawaiian Electric consolidated Short-term borrowings 4,999 — 4,999 — 4,999 Long-term debt, net 1,368,479 — 1,497,079 — 1,497,079 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 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—window forward contracts 20,734 — 743 — 743 Fair value measurements on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were as follows: December 31 2017 2016 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 $ — Available-for-sale investment securities (bank segment) Mortgage-related securities-FNMA, FHLMC and GNMA $ — $ 1,201,473 $ — $ — $ 897,474 $ — U.S. Treasury and federal agency obligations — 184,298 — — 192,281 — Mortgage revenue bond — — 15,427 — — 15,427 $ — $ 1,385,771 $ 15,427 $ — $ 1,089,755 $ 15,427 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 133 $ — $ — $ 445 $ — Forward commitments (bank segment) 1 — 4 — — 8 — Window forward contracts (electric utility segment) 2 — 256 — — — — $ — $ 393 $ — $ — $ 453 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 2 $ — $ — $ 24 $ — Forward commitments (bank segment) 1 20 8 — 129 56 — Window forward contracts (electric utility segment) 2 — — — — 743 — $ 20 $ 10 $ — $ 129 $ 823 $ — 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 Derivatives are included in regulatory assets and/or 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, 2017 and 2016. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in thousands) 2017 2016 Mortgage revenue bond Balance, January 1 $ 15,427 $ — Principal payments received — — Purchases — 15,427 Unrealized gain (loss) included in other comprehensive income — — Balance, December 31 $ 15,427 $ 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, 2017, the weighted average discount rate was 3.048% 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, 2017 Loans $ 2,621 $ — $ — $ 2,621 December 31, 2016 Loans 2,767 — — 2,767 Real estate acquired in settlement of loans 1,189 — — 1,189 For 2017 and 2016 , 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, 2017 Residential loans $ 613 Fair value of collateral Appraised value less 7% selling cost 71-92% 84% Commercial loans 2,008 Fair value of collateral Appraised value 71-76% 75% Total loans $ 2,621 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% (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, 2017 | |
Related Party Transactions [Abstract] | |
Other related-party transactions | 15 · Other related-party transactions Mr. Timothy Johns, a member of the Hawaiian Electric Board of Directors, was an executive officer of Hawaii Medical Service Association (HMSA) in 2011 through June 29, 2017. 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) 2017 2016 2015 2017 2016 2015 HMSA costs $ 28 $ 28 $ 30 $ 23 $ 22 $ 23 HMSA expense* 19 20 21 14 14 14 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). |
Termination of proposed merger
Termination of proposed merger and other matters | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Termination of proposed merger and other matters | 15 · 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 July 2016: (1) the PUC dismissed the NEE and Hawaiian Electric's application requesting approval of the proposed Merger, (2) NEE terminated the Merger Agreement, (3) pursuant to the terms of the Merger Agreement, 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, which application was conditioned on the PUC’s approval of the proposed Merger. Subsequently, the Utilities terminated the agreement and withdrew the application. 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. |
Quarterly information (unaudite
Quarterly information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information (unaudited) | 16 · 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 2017 1 Revenues $ 591,562 $ 632,281 $ 673,185 $ 658,597 $ 2,555,625 Operating income 67,862 75,896 109,545 84,988 338,291 Net income 34,666 39,134 60,544 32,843 167,187 Net income for common stock 34,193 38,661 60,073 32,370 165,297 Basic earnings per common share 3 0.31 0.36 0.55 0.30 1.52 Diluted earnings per common share 4 0.31 0.36 0.55 0.30 1.52 Dividends per common share 0.31 0.31 0.31 0.31 1.24 2016 2 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 3 0.30 0.41 1.17 0.41 2.30 Diluted earnings per common share 4 0.30 0.41 1.17 0.41 2.29 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Hawaiian Electric consolidated 2017 5 Revenues $ 518,611 $ 556,875 $ 598,769 $ 583,311 $ 2,257,566 Operating income 48,938 55,047 87,076 66,460 257,521 Net income 21,964 26,143 47,985 25,854 121,946 Net income for common stock 21,465 25,644 47,487 25,355 119,951 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 Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful. 1 In the fourth quarter of 2017, the Company recorded a $14.2 million adjustment, primarily to reduce deferred tax net asset balances (not accounted for under Utility regulatory ratemaking) to reflect the lower rates enacted by the Tax Act. Also included in this adjustment is $0.7 million (net of tax) of non-executive bonuses paid by ASB related to the enactment of federal tax reform. See below for the impact of the Utilities lower RAM revenues due to the expiration of the 2013 settlement agreement. 2 In the third quarter of 2016, HEI received a $90 million termination fee from NEE and in 2016 received and incurred other merger and spin-off-related amounts (see Note 15 to the Consolidated Financial Statements). For the 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 $(2) million , $(2) million and $64 million , respectively. 3 The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. 4 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. 5 In the fourth quarter of 2017, Hawaiian Electric consolidated recorded a $9.2 million adjustment to reduce deferred tax net asset balances (not accounted for under regulatory ratemaking) to reflect the lower rates enacted by the Tax Act. In the first five months of 2017, the Utilities recorded lower RAM revenues due to the expiration of the 2013 settlement agreement that allowed the accrual of RAM revenues on January 1 (vs. June 1) for years 2014 to 2016 at Hawaiian Electric. For the first and second quarters of 2017, the Utilities recorded lower revenues of $12 million ( $7 million , net of tax impacts) and $8 million ( $4 million , net of tax impacts) due to this RAM lag, respectively. Condensed Consolidated Statements of Cash Flows error. Subsequent to the issuance of interim Condensed Consolidated Financial Statements (unaudited) for the quarter ended September 30, 2017, the Company and the Utilities identified an error within their previously reported interim Condensed Consolidated Statements of Cash Flows (unaudited). The timing of certain capital expenditure payments that had retainage balances or were related to certain capitalized amounts were not reflected timely. The Company and the Utilities have evaluated the effect of the error, both qualitatively and quantitatively, and concluded that it is immaterial to their respective previously issued condensed consolidated financial statements, and will correct prospectively in subsequent quarterly filings. For the nine months ended September 30, 2017, six months ended June 30, 2017 and three months ended March 31, 2017, the correction of this error will result in an increase (decrease) in Net Cash Provided by Operating Activities (impacting the change in Accounts, Interest and Dividends Payable for the Company and Accounts Payable for the Utilities) of $33 million , ( $7 million ) and ( $42 million ), respectively, and an increase (decrease) in Capital Expenditures and Net Cash Used in Investing Activities of ( $33 million ), $7 million and $42 million , respectively. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 (dollars in thousands) Assets Cash and cash equivalents $ 11,702 $ 14,924 Accounts receivable 2,347 3,788 Property, plant and equipment, net 3,910 4,143 Deferred income tax assets 8,710 17,280 Other assets 15,480 9,858 Investments in subsidiaries, at equity 2,466,342 2,383,405 Total assets $ 2,508,491 $ 2,433,398 Liabilities and shareholders’ equity Liabilities Accounts payable $ 561 $ 379 Interest payable 2,319 1,735 Notes payable to subsidiaries 1,918 5,373 Commercial paper 62,993 — Short-term debt, net 49,953 — Long-term debt, net 249,588 299,759 Retirement benefits liability 31,518 33,939 Other 12,255 25,460 Total liabilities 411,105 366,645 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: 108,787,807 1,662,491 1,660,910 Retained earnings 476,836 438,972 Accumulated other comprehensive loss (41,941 ) (33,129 ) Total shareholders' equity 2,097,386 2,066,753 Total liabilities and shareholders' equity $ 2,508,491 $ 2,433,398 SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued) HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY) CONDENSED STATEMENTS OF INCOME Years ended December 31 2017 2016 2015 (in thousands) Revenues $ 798 $ 647 $ 327 Equity in net income of subsidiaries 187,097 199,485 190,033 Expenses: Operating, administrative and general 17,697 18,701 34,350 Depreciation of property, plant and equipment 548 566 576 Taxes, other than income taxes 496 4,726 440 Total expenses 18,741 23,993 35,366 Income before merger termination fee, interest expense and income (taxes) benefits 169,154 176,139 154,994 Merger termination fee — 90,000 — Income before interest expense and income (taxes) benefits 169,154 266,139 154,994 Interest expense 9,389 9,037 10,788 Income before income (taxes) benefits 159,765 257,102 144,206 Income (taxes) benefits 5,532 (8,846 ) 15,671 Net income $ 165,297 $ 248,256 $ 159,877 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 2017 2016 2015 (in thousands) Net cash provided by operating activities $ 99,600 $ 191,710 $ 98,119 Cash flows from investing activities Increase in note receivable from subsidiary (70,000 ) — — Decrease in note receivable from subsidiary 66,391 — — Capital expenditures (317 ) (212 ) (173 ) Investments in subsidiaries (22,353 ) (24,000 ) — Other (177 ) 1 — Net cash used in investing activities (26,456 ) (24,211 ) (173 ) Cash flows from financing activities Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less 98 (618 ) 87 Net increase (decrease) in short-term borrowings with original maturities of three months or less 62,993 (103,063 ) (15,909 ) Proceeds from issuance of short-term debt 125,000 — — Repayment of short-term debt (75,000 ) — — Proceeds from issuance of long-term debt 150,000 75,000 — Repayment of long-term debt (200,000 ) (75,000 ) — Withheld shares for employee taxes on vested share-based compensation (3,828 ) (2,416 ) (3,260 ) Net proceeds from issuance of common stock — 13,220 104,435 Common stock dividends (134,873 ) (117,274 ) (131,765 ) Other (756 ) 2,460 3,306 Net cash used in financing activities (76,366 ) (207,691 ) (43,106 ) Net increase (decrease) in cash and equivalents (3,222 ) (40,192 ) 54,840 Cash and cash equivalents, January 1 14,924 55,116 276 Cash and cash equivalents, December 31 $ 11,702 $ 14,924 $ 55,116 NOTES TO CONDENSED FINANCIAL INFORMATION The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. All HEI subsidiaries are reflected in the Condensed Financial Statements under the equity method. Long-term debt The components of long-term debt, net, were as follows: December 31 2017 2016 (dollars in thousands) HEI 2.99% term loan, due 2022 $ 150,000 $ — HEI 5.67% senior note, due 2021 50,000 50,000 HEI 3.99% senior note, due 2023 50,000 50,000 HEI Term loans (LIBOR + 0.75%), paid in 2017 — 200,000 Less unamortized debt issuance costs (412 ) (241 ) Long-term debt, net $ 249,588 $ 299,759 The aggregate payments of principal required within five years after December 31, 2017 on long-term debt are nil in 2018, 2019 and 2020 and $50 million in 2021 and $150 million in 2022 . Indemnities As of December 31, 2017 , 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 HEI subsidiaries In 2017 , 2016 and 2015 , cash dividends received from subsidiaries were $125 million , $130 million and $121 million , respectively. Supplemental disclosures of noncash activities In 2017 , 2016 and 2015 , $2.8 million , $2.3 million and $2.3 million , respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions. In 2017 , 2016 and 2015 , $2.8 million , $2.3 million and $0.3 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. In 2017, $3.6 million of HEI notes receivable from Hamakua Energy, LLC were converted to equity in a noncash transaction. Under the HEI DRIP, common stock dividends reinvested by shareholders in HEI common stock in noncash transactions amounted to nil , $17 million and nil in 2017 , 2016 and 2015 , respectively. From March 6, 2014 through January 5, 2016, and from December 7, 2016 to date, HEI satisfied the share purchase requirements of the DRIP through open market purchases of its common stock rather than new issuances. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2017, 2016 and 2015 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 2017 Allowance for uncollectible accounts – electric utility $ 1,121 $ 1,810 $ 785 (a) $ 2,538 (b),(c) $ 1,178 Allowance for uncollectible interest – bank $ 1,834 $ — $ — $ 1,467 $ 367 Allowance for losses for loans receivable – bank $ 55,533 $ 10,901 (d) $ 4,016 (a) $ 16,813 (b) $ 53,637 Deferred tax valuation allowance – HEI $ 38 $ — $ — $ 38 $ — 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),(c) $ 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 (a) Primarily recoveries. (b) Bad debts charged off. (c) Reclass of allowance for one customer account into other long term assets in 2017, 2016 and 2015 were $841 , $1,790 and $2,303 , respectively. (d) Represents provision for loan loss. |
Summary of significant accoun38
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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. |
Use of 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; regulatory assets and liabilities (Utilities only); electric utility unbilled revenues (Utilities only); and allowance for loan losses (ASB only). |
Consolidation | The HEI consolidated financial statements include the accounts of HEI and its subsidiaries, except for HECO Capital Trust III (Trust III), as the Company does not exercise control over Trust III. Hamakua Energy, LLC (which was formed in 2017) has been included in the HEI consolidated financial statements. The Hawaiian Electric consolidated financial statements include the accounts of Hawaiian Electric and its subsidiaries, except for Trust III. When HEI or Hawaiian Electric has a controlling financial interest in another entity (usually, majority voting interest), that entity is consolidated. 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. The consolidated financial statements exclude variable interest entities (VIEs) when the Company or the Utilities are not the primary beneficiaries. Hawaiian Electric is not the primary beneficiary of Trust III, which is a VIE, and accounts for Trust III under the equity method. See Note 3 for information regarding unconsolidated VIEs. In general, intercompany amounts are eliminated in consolidation |
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. |
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 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. 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. 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. |
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. The Utilities review their sites and measure the liability quarterly by assessing a range of reasonably likely costs of each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. |
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. As a result of the 2017 Tax Cuts and Jobs Act (Tax Act), the accumulated deferred income tax balances (ADIT) were adjusted in 2017 for the lower federal income tax rate expected to be in effect when the deferred tax assets or liabilities are realized or settled. See further discussion under "Recent tax developments" in Note 10 . 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 Utilities' investment tax credits 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 each utility filed a separate income tax return and Hawaiian Electric filed a consolidated Hawaiian Electric income tax return. 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 acquired in settlement of loans, goodwill and asset retirement obligations (AROs). |
Earnings per share (HEI only) | Basic earnings per share (EPS) is computed by dividing net income for common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that dilutive common shares for stock compensation and the equity forward transactions are added to the denominator. |
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 undiscounted 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 | Stock compensation . In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 No. 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. From January 1, 2017, no excess tax benefits or 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 cashflow guidance for taxes paid (equivalent to the value of withheld shares for tax withholding purposes) and excess tax benefits. Excess tax benefits are 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 are classified as financing activities on the Company's consolidated statements of cash flows for all periods that are presented. Goodwill impairment . In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to the adoption of ASU No. 2017-04, an entity was required to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compared the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the entity performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill would then be recorded. ASU No. 2017-04 removes the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value. ASU No. 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The Company adopted ASU No. 2017-04 prospectively in the fourth quarter of 2017 and the adoption had no impact on the Company’s consolidated financial statements. 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, 2017, the Company has identified its revenue streams from, and performance obligations related to, contracts with customers and has performed an analysis of these revenue streams for the impacts of Topic 606. The revenue subject to Topic 606 is largely the Utilities’ electric sales revenue and the Utilities’ and ASB’s fee income. The Company and Hawaiian Electric adopted ASU No. 2014-09 (and subsequently issued revenue-related ASUs) in the first quarter of 2018 using the modified retrospective approach with no impact on the timing or pattern of revenue recognition, but with impacts on the presentation of revenues. Also, expanded disclosures around the amount, timing, nature and uncertainty of revenues from contracts with customers will be presented. 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 adopted ASU No. 2016-01 in the first quarter of 2018 and expects changes to disclosures, but otherwise the impact of adoption is not material to the Company’s and Hawaiian Electric’s consolidated financial statements. 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 adopted ASU No. 2016-15 in the first quarter of 2018 using a retrospective transition method and the impact of adoption is not material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. 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 adopted ASU No. 2016-18 in the first quarter of 2018 using a retrospective transition method and the impact of adoption is not material to the Company’s and Hawaiian Electric’s consolidated statements of cash flows. Net periodic pension cost and net periodic postretirement benefit cost . In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost (NPPC) and net periodic postretirement benefit cost (NPBC) as defined in paragraphs 715-30-35-4 and 715-60-35-9 to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component is eligible for capitalization under GAAP, when applicable. The Company adopted ASU No. 2017-07 in the first quarter of 2018: (1) retrospectively for the presentation in the income statement of the service cost component and the other components of NPPC and NPBC, and (2) prospectively for the capitalization in assets of the service cost component of NPPC and NPBC. HEI and ASB do not capitalize pension and OPEB costs. In Settlement Agreements in the 2017 Hawaiian Electric and 2016 Hawaii Electric Light rate cases, Hawaiian Electric and Hawaii Electric Light, respectively, and the Consumer Advocate agreed to the deferral of the non-service cost components of NPPC and NPBC which would have been capitalized as part of the pension tracking mechanism. In the Hawaiian Electric Interim D&O, the PUC did not identify this item for further review, and Hawaiian Electric will follow the Settlement Agreement. Hawaii Electric Light and Maui Electric plan to seek PUC clarification to follow Hawaiian Electric’s treatment until rates are set in the next rate cases. The treatment under the Settlement Agreement will be followed beginning in 2018 until each utility’s next rate case. In the next rate cases, each utility’s future rates would include recovery of the deferred non-service cost components and seek to adopt the capitalization policy which reflects the requirements of ASU No. 2017-07 (i.e., only the service cost components of NPPC and NPBC will be capitalized). Thus, the adoption of ASU 2017-07 in the first quarter of 2018 does not have a net income impact. 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. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election and recognize lease expense for such leases generally on a straight-line basis over the lease term. For finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the right-of-use asset in the consolidated statements of income. For operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. The Company plans to adopt ASU No. 2016-02 in the first quarter of 2019 and has not yet determined the impact of adoption. 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 (AFS) 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 credit 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 No. 2016-13 in the first quarter of 2020 and has not yet determined the impact of adoption. Tax effects in AOCI . In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, ” which contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act (Tax Act) and requires certain disclosures regarding the stranded tax effects. The Company and the Utilities adopted ASU No. 2018-02 as of the beginning of the fourth quarter of 2017 and elected to reclassify the income tax effects of the Tax Act (i.e., the effect of the federal tax rate change only) of $7.4 million and $0.2 million , respectively, from AOCI to retained earnings. Other than this reclassification to retained earnings, the Company and the Utilities release the income tax effects in AOCI from AOCI when the specific AOCI items (e.g., on a security-by-security basis for ASB’s gains/losses on investment securities) are included in net income |
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. 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 3 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 recovery of various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the year the related revenues are recognized. |
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 amortized 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, 2017 and 2016, 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 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 supplements performance data with external credit bureau data and credit scores such as the Fair Isaac Corporation (FICO) score on a quarterly basis. ASB has built portfolio loss models for each major segment based on the combination of internal and external data to predict the probability of default at the loan level. 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. In 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 conjunction with the above enhancement, management also adopted an enhanced risk rating system for monitoring and managing credit risk in the non-homogeneous 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. The allowance for loan losses is 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 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 commercial or commercial real estate 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. Such 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 | 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. ASC Topic 350 "Intangibles-Goodwill and Other" (ASC 350) permits an entity to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test. An entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the quantitative impairment test. An entity shall assess relevant events and circumstances and determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is unnecessary. ASB performed a qualitative analysis and determined that it was not more than likely than not that the fair value of ASB was less than its carrying amount and, accordingly, a quantitative impairment analysis was not considered necessary |
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,” ASB amortizes 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 "Revenues - bank" 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. 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. 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, 2017, ASB did not have any impairment losses resulting from forfeiture or ineligibility of tax credits or other circumstances related to its low income housing tax credit (LIHTC) investments. |
Summary of significant accoun39
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2018 $ 11 $ 6 2019 10 5 2020 8 5 2021 7 5 2022 4 3 Thereafter 36 29 $ 76 $ 53 |
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 2017 2016 2015 (in millions) Amounts in income taxes related to investments in qualifying affordable housing projects Amortization recognized in the provision for income taxes $ (7.4 ) $ (5.8 ) $ (5.4 ) Tax credits and other tax benefits recognized in the provision for income taxes 10.7 8.4 8.0 Net benefit to income tax expense $ 3.3 $ 2.6 $ 2.6 |
Segment financial information (
Segment financial information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Segment financial information was as follows: (in thousands) Electric utility Bank Other Total 2017 Revenues from external customers $ 2,257,455 $ 297,640 $ 530 $ 2,555,625 Intersegment revenues (eliminations) 111 — (111 ) — Revenues 2,257,566 297,640 419 2,555,625 Depreciation and amortization 201,282 19,416 1,300 221,998 Interest expense, net 69,637 12,156 9,335 91,128 Income (loss) before income taxes 205,145 98,716 (27,281 ) 276,580 Income taxes (benefit) 83,199 31,719 (5,525 ) 109,393 Net income (loss) 121,946 66,997 (21,756 ) 167,187 Preferred stock dividends of subsidiaries 1,995 — (105 ) 1,890 Net income (loss) for common stock 119,951 66,997 (21,651 ) 165,297 Capital expenditures 441,598 53,272 317 495,187 Assets (at December 31, 2017) 6,196,281 6,798,659 104,888 13,099,828 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 |
Electric utility segment (Table
Electric utility segment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Electric utility subsidiary | |
Schedule of consolidating statements of income | Statements of Income Data Years ended December 31 2017 2016 2015 (in thousands) Interest and dividend income Interest and fees on loans $ 207,255 $ 199,774 $ 184,782 Interest and dividends on investment securities 28,823 19,184 15,120 Total interest and dividend income 236,078 218,958 199,902 Interest expense Interest on deposit liabilities 9,660 7,167 5,348 Interest on other borrowings 2,496 5,588 5,978 Total interest expense 12,156 12,755 11,326 Net interest income 223,922 206,203 188,576 Provision for loan losses 10,901 16,763 6,275 Net interest income after provision for loan losses 213,021 189,440 182,301 Noninterest income Fees from other financial services 22,796 22,384 22,211 Fee income on deposit liabilities 22,204 21,759 22,368 Fee income on other financial products 7,205 8,707 8,094 Bank-owned life insurance 5,539 4,637 4,078 Mortgage banking income 2,201 6,625 6,330 Gains on sale of investment securities, net — 598 — Other income, net 1,617 2,256 4,750 Total noninterest income 61,562 66,966 67,831 Noninterest expense Compensation and employee benefits 95,751 90,117 90,518 Occupancy 16,699 16,321 16,365 Data processing 13,280 13,030 12,103 Services 10,994 11,054 10,204 Equipment 7,232 6,938 6,577 Office supplies, printing and postage 6,182 6,075 5,749 Marketing 3,501 3,489 3,463 FDIC insurance 2,904 3,543 3,274 Other expense 19,324 18,487 18,067 Total noninterest expense 175,867 169,054 166,320 Income before income taxes 98,716 87,352 83,812 Income taxes 31,719 30,073 29,082 Net income $ 66,997 $ 57,279 $ 54,730 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2017 2016 2015 Interest and dividend income $ 236,078 $ 218,958 $ 199,902 Noninterest income 61,562 66,966 67,831 *Revenues-Bank 297,640 285,924 267,733 Total interest expense 12,156 12,755 11,326 Provision for loan losses 10,901 16,763 6,275 Total noninterest expense 175,867 169,054 166,320 *Expenses-Bank 198,924 198,572 183,921 Income before income taxes/*Operating income-Bank $ 98,716 $ 87,352 $ 83,812 |
Schedule of consolidating balance sheets | Balance Sheets Data December 31 2017 2016 (in thousands) Assets Cash and due from banks $ 140,934 $ 137,083 Interest-bearing deposits 93,165 52,128 Restricted cash — 1,764 Investment securities Available-for-sale, at fair value 1,401,198 1,105,182 Held-to-maturity, at amortized cost (fair value of $44,412 and nil, respectively) 44,515 — Stock in Federal Home Loan Bank, at cost 9,706 11,218 Loans receivable held for investment 4,670,768 4,738,693 Allowance for loan losses (53,637 ) (55,533 ) Net loans 4,617,131 4,683,160 Loans held for sale, at lower of cost or fair value 11,250 18,817 Other 398,570 329,815 Goodwill 82,190 82,190 Total assets $ 6,798,659 $ 6,421,357 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,760,233 $ 1,639,051 Deposit liabilities–interest-bearing 4,130,364 3,909,878 Other borrowings 190,859 192,618 Other 110,356 101,635 Total liabilities 6,191,812 5,843,182 Commitments and contingencies Common stock 1 1 Additional paid in capital 345,018 342,704 Retained earnings 292,957 257,943 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (14,951 ) $ (7,931 ) Retirement benefit plans (16,178 ) (31,129 ) (14,542 ) (22,473 ) Total shareholder’s equity 606,847 578,175 Total liabilities and shareholder’s equity $ 6,798,659 $ 6,421,357 December 31 2017 2016 (in thousands) Other assets Bank-owned life insurance $ 148,775 $ 143,197 Premises and equipment, net 136,270 90,570 Prepaid expenses 3,961 3,348 Accrued interest receivable 18,724 16,824 Mortgage-servicing rights 8,639 9,373 Low-income housing investments 59,016 47,081 Real estate acquired in settlement of loans, net 133 1,189 Other 23,052 18,233 $ 398,570 $ 329,815 Other liabilities Accrued expenses $ 39,312 $ 36,754 Federal and state income taxes payable 3,736 4,728 Cashier’s checks 27,000 24,156 Advance payments by borrowers 10,245 10,335 Other 30,063 25,662 $ 110,356 $ 101,635 |
Hawaiian Electric Company, Inc. and Subsidiaries | |
Electric utility subsidiary | |
Schedule of regulatory assets | Regulatory assets were as follows: December 31 2017 2016 (in thousands) Retirement benefit plans (balance primarily varies with plans’ funded statuses) $ 637,204 $ 745,367 Income taxes (1 to 55 years) 118,201 90,100 Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) 64,087 73,485 Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) 11,993 12,299 Vacation earned, but not yet taken (1 year) 11,224 10,970 Other (1 to 50 years; 1 to 46 years remaining) 26,588 25,230 $ 869,297 $ 957,451 Included in: Current assets $ 88,390 $ 66,032 Long-term assets 780,907 891,419 $ 869,297 $ 957,451 |
Schedule of regulatory liabilities | Regulatory liabilities were as follows: December 31 2017 2016 (in thousands) Cost of removal in excess of salvage value (1 to 60 years) $ 453,986 $ 394,072 Income taxes (1 to 55 years) 406,324 — Retirement benefit plans (5 years beginning with respective utility’s next rate case) 9,961 10,824 Other (5 years; 1 to 2 years remaining) 10,499 5,797 $ 880,770 $ 410,693 Included in: Current liabilities $ 3,401 $ 3,762 Long-term liabilities 877,369 406,931 $ 880,770 $ 410,693 |
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, 2017 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 purchases from all IPPs | Purchases from all IPPs were as follows: Years ended December 31 2017 2016 2015 (in millions) Kalaeloa $ 180 $ 152 $ 187 AES Hawaii 140 149 134 HPOWER 67 71 66 Puna Geothermal Venture 38 28 29 Hamakua Energy 35 29 44 Hawaiian Commercial & Sugar — 1 8 Other IPPs 127 133 126 Total IPPs $ 587 $ 563 $ 594 |
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) 2017 2016 Balance, January 1 $ 25,589 $ 26,848 Accretion expense 10 10 Liabilities incurred 5,370 — Liabilities settled (527 ) (1,269 ) Revisions in estimated cash flows (24,407 ) — Balance, December 31 $ 6,035 $ 25,589 |
Schedule of net annual incremental amounts proposed to be collected (refunded) | The net annual incremental amounts to be collected (refunded) are as follows: ($ in millions) Hawaiian Electric Hawaii Electric Light Maui Electric 2017 Annual incremental RAM adjusted revenues $ 12.7 $ 3.2 $ 1.6 Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) $ (2.4 ) $ (2.5 ) $ (0.2 ) Net annual incremental amount to be collected under the tariffs $ 10.3 $ 0.7 $ 1.4 |
Schedule of consolidating statements of income | Consolidating statement of income Year ended December 31, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Revenues $ 1,598,504 333,467 325,678 — (83 ) [1] $ 2,257,566 Expenses Fuel oil 408,204 63,894 115,670 — — 587,768 Purchased power 454,189 87,772 44,673 — — 586,634 Other operation and maintenance 279,440 66,277 72,193 — — 417,910 Depreciation 130,889 38,741 23,154 — — 192,784 Taxes, other than income taxes 152,933 31,184 30,832 — — 214,949 Total expenses 1,425,655 287,868 286,522 — — 2,000,045 Operating income 172,849 45,599 39,156 — (83 ) 257,521 Allowance for equity funds used during construction 10,896 554 1,033 — — 12,483 Equity in earnings of subsidiaries 38,057 — — — (38,057 ) [2] — Interest expense and other charges, net (48,277 ) (11,799 ) (9,644 ) — 83 [1] (69,637 ) Allowance for borrowed funds used during construction 4,089 238 451 — — 4,778 Income before income taxes 177,614 34,592 30,996 — (38,057 ) 205,145 Income taxes 56,583 13,912 12,704 — — 83,199 Net income 121,031 20,680 18,292 — (38,057 ) 121,946 Preferred stock dividends of subsidiaries — 534 381 — — 915 Net income attributable to Hawaiian Electric 121,031 20,146 17,911 — (38,057 ) 121,031 Preferred stock dividends of Hawaiian Electric 1,080 — — — — 1,080 Net income for common stock $ 119,951 20,146 17,911 — (38,057 ) $ 119,951 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, 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 |
Schedule of consolidating statements of comprehensive income | Consolidating statement of comprehensive income Year ended December 31, 2015 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 135,714 20,755 22,165 — (42,920 ) $ 135,714 Other comprehensive income (loss), net of taxes: Retirement benefit plans: Net gains (losses) arising during the period, net of taxes 5,638 (2,710 ) (1,352 ) — 4,062 [1] 5,638 Adjustment for 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 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits (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 Year ended December 31, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Net income for common stock $ 119,951 20,146 17,911 — (38,057 ) $ 119,951 Other comprehensive income (loss), net of taxes: Derivatives qualified as cash flow hedges: Reclassification adjustment to net income, net of taxes 454 — — — — 454 Retirement benefit plans: Net gains arising during the period, net of taxes 63,105 3,093 7,329 — (10,422 ) [1] 63,105 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits 14,477 1,903 1,619 — (3,522 ) [1] 14,477 Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes (78,724 ) (4,994 ) (9,003 ) — 13,997 [1] (78,724 ) Other comprehensive income (loss), net of taxes (688 ) 2 (55 ) — 53 (688 ) Comprehensive income attributable to common shareholder $ 119,263 20,148 17,856 — (38,004 ) $ 119,263 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 ) 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 ) Adjustment for 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 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 |
Schedule of consolidating balance sheets | Consolidating balance sheet December 31, 2017 (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 $ 43,972 6,189 3,016 — — $ 53,177 Plant and equipment 4,492,568 1,299,920 1,154,075 — — 6,946,563 Less accumulated depreciation (1,451,612 ) (528,024 ) (496,716 ) — — (2,476,352 ) Construction in progress 245,995 11,922 25,322 — — 283,239 Utility property, plant and equipment, net 3,330,923 790,007 685,697 — — 4,806,627 Nonutility property, plant and equipment, less accumulated depreciation 5,933 115 1,532 — — 7,580 Total property, plant and equipment, net 3,336,856 790,122 687,229 — — 4,814,207 Investment in wholly-owned subsidiaries, at equity 557,013 — — — (557,013 ) [2] — Current assets Cash and cash equivalents 2,059 4,025 6,332 101 — 12,517 Advances to affiliates — — 12,000 — (12,000 ) [1] — Customer accounts receivable, net 86,987 22,510 18,392 — — 127,889 Accrued unbilled revenues, net 77,176 15,940 13,938 — — 107,054 Other accounts receivable, net 11,376 2,268 1,210 — (7,691 ) [1] 7,163 Fuel oil stock, at average cost 64,972 8,698 13,203 — — 86,873 Materials and supplies, at average cost 28,325 8,041 18,031 — — 54,397 Prepayments and other 17,928 4,514 2,913 — — 25,355 Regulatory assets 76,203 5,038 7,149 — — 88,390 Total current assets 365,026 71,034 93,168 101 (19,691 ) 509,638 Other long-term assets Regulatory assets 557,464 122,783 100,660 — — 780,907 Unamortized debt expense 436 77 98 — — 611 Other 59,721 16,234 14,963 — — 90,918 Total other long-term assets 617,621 139,094 115,721 — — 872,436 Total assets $ 4,876,516 1,000,250 896,118 101 (576,704 ) $ 6,196,281 Capitalization and liabilities Capitalization Common stock equity $ 1,845,283 286,647 270,265 101 (557,013 ) [2] $ 1,845,283 Cumulative preferred stock–not subject to mandatory redemption 22,293 7,000 5,000 — — 34,293 Long-term debt, net 924,979 202,701 190,836 — — 1,318,516 Total capitalization 2,792,555 496,348 466,101 101 (557,013 ) 3,198,092 Current liabilities Current portion of long-term debt 29,978 10,992 8,993 — — 49,963 Short-term borrowings-non-affiliate 4,999 — — — — 4,999 Short-term borrowings-affiliate 12,000 — — — (12,000 ) [1] — Accounts payable 121,328 17,855 20,427 — — 159,610 Interest and preferred dividends payable 15,677 4,174 2,735 — (11 ) [1] 22,575 Taxes accrued 133,839 34,950 30,312 — — 199,101 Regulatory liabilities 607 1,245 1,549 — — 3,401 Other 43,121 9,818 14,197 — (7,680 ) [1] 59,456 Total current liabilities 361,549 79,034 78,213 — (19,691 ) 499,105 Deferred credits and other liabilities Deferred income taxes 281,223 56,955 55,863 — — 394,041 Regulatory liabilities 613,329 169,139 94,901 — — 877,369 Unamortized tax credits 59,039 16,167 15,163 — — 90,369 Defined benefit pension and other postretirement benefit plans liability 340,983 66,447 65,518 — — 472,948 Other 61,738 19,276 17,675 — — 98,689 Total deferred credits and other liabilities 1,356,312 327,984 249,120 — — 1,933,416 Contributions in aid of construction 366,100 96,884 102,684 — — 565,668 Total capitalization and liabilities $ 4,876,516 1,000,250 896,118 101 (576,704 ) $ 6,196,281 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 cash 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 |
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, 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 Issuance of common stock, net of 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 Net income for common stock 119,951 20,146 17,911 — (38,057 ) 119,951 Other comprehensive income (loss), net of taxes (688 ) 2 (55 ) — 53 (688 ) Issuance of common stock, net of expenses 14,000 4 4,801 — (4,805 ) 14,000 Common stock dividends (87,767 ) (24,796 ) (11,946 ) — 36,742 (87,767 ) Balance, December 31, 2017 $ 1,845,283 286,647 270,265 101 (557,013 ) $ 1,845,283 |
Schedule of consolidating statements of cash flows | Consolidating statement of cash flows Year ended December 31, 2017 (in thousands) Hawaiian Electric Hawaii Electric Light Maui Electric Other subsidiaries Consolidating adjustments Hawaiian Electric Cash flows from operating activities Net income $ 121,031 20,680 18,292 — (38,057 ) [2] $ 121,946 Adjustments to reconcile net income to net cash provided by operating activities Equity in earnings of subsidiaries (38,157 ) — — — 38,057 [2] (100 ) Common stock dividends received from subsidiaries 36,867 — — — (36,742 ) [2] 125 Depreciation of property, plant and equipment 130,889 38,741 23,154 — — 192,784 Other amortization 2,398 3,225 2,875 — — 8,498 Deferred income taxes 26,342 3,954 8,004 — (263 ) [1] 38,037 Allowance for equity funds used during construction (10,896 ) (554 ) (1,033 ) — — (12,483 ) Other (1,154 ) 430 (342 ) — — (1,066 ) Changes in assets and liabilities: Decrease (increase) in accounts receivable 1,817 (359 ) 45 — 1,411 [1] 2,914 Increase in accrued unbilled revenues (11,355 ) (2,376 ) (1,630 ) — — (15,361 ) Increase in fuel oil stock (17,733 ) (469 ) (2,241 ) — — (20,443 ) Decrease (increase) in materials and supplies 1,603 (661 ) (1,660 ) — — (718 ) Increase in regulatory assets (8,395 ) (4,007 ) (4,854 ) — — (17,256 ) Increase (decrease) in accounts payable 23,519 (3,547 ) 5,762 — — 25,734 Change in prepaid and accrued income taxes, tax credits and revenue taxes 16,716 7,961 5,362 — (177 ) [1] 29,862 Increase (decrease) in defined benefit pension and other postretirement benefit plans liability 709 52 (157 ) — — 604 Change in other assets and liabilities (16,213 ) (433 ) 166 — (1,411 ) [1] (17,891 ) Net cash provided by operating activities 257,988 62,637 51,743 — (37,182 ) 335,186 Cash flows from investing activities Capital expenditures (339,279 ) (52,077 ) (50,242 ) — — (441,598 ) Contributions in aid of construction 57,527 4,293 2,913 — — 64,733 Advances from (to) affiliates — 3,500 (2,000 ) — (1,500 ) [1] — Other (1,711 ) 649 400 — 5,240 [1], [2] 4,578 Net cash used in investing activities (283,463 ) (43,635 ) (48,929 ) — 3,740 (372,287 ) Cash flows from financing activities Common stock dividends (87,767 ) (24,796 ) (11,946 ) — 36,742 [2] (87,767 ) Preferred stock dividends of Hawaiian Electric and subsidiaries (1,080 ) (534 ) (381 ) — — (1,995 ) Proceeds from issuance of common stock 14,000 — 4,800 — (4,800 ) [2] 14,000 Proceeds from issuance of long-term debt 202,000 28,000 85,000 — — 315,000 Funds transferred for redemption of special purpose revenue bonds (162,000 ) (28,000 ) (75,000 ) — — (265,000 ) Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less 3,499 — — — 1,500 [1] 4,999 Other (2,506 ) (396 ) (1,003 ) — — (3,905 ) Net cash used in financing activities (33,854 ) (25,726 ) 1,470 — 33,442 (24,668 ) Net increase (decrease) in cash and cash equivalents (59,329 ) (6,724 ) 4,284 — — (61,769 ) Cash and cash equivalents, January 1 61,388 10,749 2,048 101 — 74,286 Cash and cash equivalents, December 31 $ 2,059 4,025 6,332 101 — $ 12,517 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 of subsidiaries (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 Allowance for equity funds used during construction (6,659 ) (765 ) (901 ) — — (8,325 ) Other (2,517 ) (750 ) (433 ) — — (3,700 ) 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 (to) 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 the issuance of common stock 24,000 — — — — 24,000 Proceeds from the 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 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 of subsidiaries (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 assets 4,573 724 724 — — 6,021 Deferred income taxes 53,338 8,295 13,707 — 286 [1] 75,626 Allowance for equity funds used during construction (5,641 ) (604 ) (683 ) — — (6,928 ) Other 8,687 (1,949 ) (222 ) — — 6,516 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 ) 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 |
Bank segment (HEI only) (Tables
Bank segment (HEI only) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Bank Segment Disclosure [Abstract] | |
Schedule of statements of income data | Statements of Income Data Years ended December 31 2017 2016 2015 (in thousands) Interest and dividend income Interest and fees on loans $ 207,255 $ 199,774 $ 184,782 Interest and dividends on investment securities 28,823 19,184 15,120 Total interest and dividend income 236,078 218,958 199,902 Interest expense Interest on deposit liabilities 9,660 7,167 5,348 Interest on other borrowings 2,496 5,588 5,978 Total interest expense 12,156 12,755 11,326 Net interest income 223,922 206,203 188,576 Provision for loan losses 10,901 16,763 6,275 Net interest income after provision for loan losses 213,021 189,440 182,301 Noninterest income Fees from other financial services 22,796 22,384 22,211 Fee income on deposit liabilities 22,204 21,759 22,368 Fee income on other financial products 7,205 8,707 8,094 Bank-owned life insurance 5,539 4,637 4,078 Mortgage banking income 2,201 6,625 6,330 Gains on sale of investment securities, net — 598 — Other income, net 1,617 2,256 4,750 Total noninterest income 61,562 66,966 67,831 Noninterest expense Compensation and employee benefits 95,751 90,117 90,518 Occupancy 16,699 16,321 16,365 Data processing 13,280 13,030 12,103 Services 10,994 11,054 10,204 Equipment 7,232 6,938 6,577 Office supplies, printing and postage 6,182 6,075 5,749 Marketing 3,501 3,489 3,463 FDIC insurance 2,904 3,543 3,274 Other expense 19,324 18,487 18,067 Total noninterest expense 175,867 169,054 166,320 Income before income taxes 98,716 87,352 83,812 Income taxes 31,719 30,073 29,082 Net income $ 66,997 $ 57,279 $ 54,730 Reconciliation to amounts per HEI Consolidated Statements of Income*: Years ended December 31 2017 2016 2015 Interest and dividend income $ 236,078 $ 218,958 $ 199,902 Noninterest income 61,562 66,966 67,831 *Revenues-Bank 297,640 285,924 267,733 Total interest expense 12,156 12,755 11,326 Provision for loan losses 10,901 16,763 6,275 Total noninterest expense 175,867 169,054 166,320 *Expenses-Bank 198,924 198,572 183,921 Income before income taxes/*Operating income-Bank $ 98,716 $ 87,352 $ 83,812 |
Schedule of statements of comprehensive income data | Statements of Comprehensive Income Data Years ended December 31 2017 2016 2015 (in thousands) Net income $ 66,997 $ 57,279 $ 54,730 Other comprehensive income (loss), net of taxes: Net unrealized losses on available-for sale investment securities: Net unrealized losses on available-for sale investment securities arising during the period, net of tax benefits of $2,886, $3,763 and $1,541 for 2017, 2016 and 2015, respectively (4,370 ) (5,699 ) (2,334 ) Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238 and nil for 2017, 2016 and 2015, respectively — (360 ) — Retirement benefit plans: Net gains arising during the period, net of taxes of nil, nil and $59 for 2017, 2016 and 2015, respectively — — 90 Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $812, $566 and $1,011 for 2017, 2016 and 2015, respectively 1,231 857 1,531 Other comprehensive loss, net of tax benefits (3,139 ) (5,202 ) (713 ) Comprehensive income $ 63,858 $ 52,077 $ 54,017 |
Schedule of balance sheets data | Balance Sheets Data December 31 2017 2016 (in thousands) Assets Cash and due from banks $ 140,934 $ 137,083 Interest-bearing deposits 93,165 52,128 Restricted cash — 1,764 Investment securities Available-for-sale, at fair value 1,401,198 1,105,182 Held-to-maturity, at amortized cost (fair value of $44,412 and nil, respectively) 44,515 — Stock in Federal Home Loan Bank, at cost 9,706 11,218 Loans receivable held for investment 4,670,768 4,738,693 Allowance for loan losses (53,637 ) (55,533 ) Net loans 4,617,131 4,683,160 Loans held for sale, at lower of cost or fair value 11,250 18,817 Other 398,570 329,815 Goodwill 82,190 82,190 Total assets $ 6,798,659 $ 6,421,357 Liabilities and shareholder’s equity Deposit liabilities–noninterest-bearing $ 1,760,233 $ 1,639,051 Deposit liabilities–interest-bearing 4,130,364 3,909,878 Other borrowings 190,859 192,618 Other 110,356 101,635 Total liabilities 6,191,812 5,843,182 Commitments and contingencies Common stock 1 1 Additional paid in capital 345,018 342,704 Retained earnings 292,957 257,943 Accumulated other comprehensive loss, net of tax benefits Net unrealized losses on securities $ (14,951 ) $ (7,931 ) Retirement benefit plans (16,178 ) (31,129 ) (14,542 ) (22,473 ) Total shareholder’s equity 606,847 578,175 Total liabilities and shareholder’s equity $ 6,798,659 $ 6,421,357 December 31 2017 2016 (in thousands) Other assets Bank-owned life insurance $ 148,775 $ 143,197 Premises and equipment, net 136,270 90,570 Prepaid expenses 3,961 3,348 Accrued interest receivable 18,724 16,824 Mortgage-servicing rights 8,639 9,373 Low-income housing investments 59,016 47,081 Real estate acquired in settlement of loans, net 133 1,189 Other 23,052 18,233 $ 398,570 $ 329,815 Other liabilities Accrued expenses $ 39,312 $ 36,754 Federal and state income taxes payable 3,736 4,728 Cashier’s checks 27,000 24,156 Advance payments by borrowers 10,245 10,335 Other 30,063 25,662 $ 110,356 $ 101,635 |
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, 2017 Available-for-sale U.S. Treasury and federal agency obligations $ 185,891 $ 438 $ (2,031 ) $ 184,298 15 $ 83,137 $ (825 ) 8 $ 62,296 $ (1,206 ) Mortgage-related securities- FNMA, FHLMC and GNMA 1,220,304 793 (19,624 ) 1,201,473 67 653,635 (6,839 ) 77 459,912 (12,785 ) Mortgage revenue bond 15,427 — — 15,427 — — — — — — $ 1,421,622 $ 1,231 $ (21,655 ) $ 1,401,198 82 $ 736,772 $ (7,664 ) 85 $ 522,208 $ (13,991 ) Held-to-maturity Mortgage-related securities- FNMA, FHLMC and GNMA $ 44,515 $ 1 $ (104 ) $ 44,412 2 $ 35,744 $ (104 ) — $ — $ — $ 44,515 $ 1 $ (104 ) $ 44,412 2 $ 35,744 $ (104 ) — $ — $ — 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 ) |
Schedule of contractual maturities of available-for-sale securities | The contractual maturities of investment securities were as follows: Amortized Fair December 31, 2017 Cost value (in thousands) Available-for-sale Due in one year or less $ 5,000 $ 4,992 Due after one year through five years 87,404 87,020 Due after five years through ten years 80,161 79,358 Due after ten years 28,753 28,355 201,318 199,725 Mortgage-related securities-FNMA, FHLMC and GNMA 1,220,304 1,201,473 $ 1,421,622 $ 1,401,198 Held-to-maturity Mortgage-related securities-FNMA, FHLMC and GNMA $ 44,515 $ 44,412 $ 44,515 $ 44,412 |
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 2017 2016 2015 (in millions) Proceeds $ — $ 16.4 $ — Gross gains — 0.6 — 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 2017 2016 2015 (in thousands) Taxable $ 28,398 $ 19,166 $ 15,120 Non-taxable 425 18 — $ 28,823 $ 19,184 $ 15,120 |
Schedule of loans receivable | The components of loans receivable were summarized as follows: December 31 2017 2016 (in thousands) Real estate: Residential 1-4 family $ 2,118,047 $ 2,048,051 Commercial real estate 733,106 800,395 Home equity line of credit 913,052 863,163 Residential land 15,797 18,889 Commercial construction 108,273 126,768 Residential construction 14,910 16,080 Total real estate 3,903,185 3,873,346 Commercial 544,828 692,051 Consumer 223,564 178,222 Total loans 4,671,577 4,743,619 Less: Deferred fees and discounts (809 ) (4,926 ) Allowance for loan losses (53,637 ) (55,533 ) Total loans, net $ 4,617,131 $ 4,683,160 |
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, 2017 Allowance for loan losses: Beginning balance $ 2,873 $ 16,004 $ 5,039 $ 1,738 $ 6,449 $ 12 $ 16,618 $ 6,800 $ — $ 55,533 Charge-offs (826 ) — (14 ) (210 ) — — (4,006 ) (11,757 ) — (16,813 ) Recoveries 157 — 308 482 — — 1,852 1,217 — 4,016 Provision 698 (208 ) 2,189 (1,114 ) (1,778 ) — (3,613 ) 14,727 — 10,901 Ending balance $ 2,902 $ 15,796 $ 7,522 $ 896 $ 4,671 $ 12 $ 10,851 $ 10,987 $ — $ 53,637 Ending balance: individually evaluated for impairment $ 1,248 $ 65 $ 647 $ 47 $ — $ — $ 694 $ 29 $ 2,730 Ending balance: collectively evaluated for impairment $ 1,654 $ 15,731 $ 6,875 $ 849 $ 4,671 $ 12 $ 10,157 $ 10,958 $ — $ 50,907 Financing Receivables: Ending balance $ 2,118,047 $ 733,106 $ 913,052 $ 15,797 $ 108,273 $ 14,910 $ 544,828 $ 223,564 $ 4,671,577 Ending balance: individually evaluated for impairment $ 18,284 $ 1,016 $ 8,188 $ 1,265 $ — $ — $ 4,574 $ 66 $ 33,393 Ending balance: collectively evaluated for impairment $ 2,099,763 $ 732,090 $ 904,864 $ 14,532 $ 108,273 $ 14,910 $ 540,254 $ 223,498 $ 4,638,184 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 credit risk profile by internally assigned grade for loans | The credit risk profile by internally assigned grade for loans was as follows: December 31 2017 2016 (in thousands) Commercial real estate Commercial construction Commercial Total Commercial real estate Commercial construction Commercial Total Grade: Pass $ 630,877 $ 83,757 $ 492,942 $ 1,207,576 $ 701,657 $ 102,955 $ 614,139 $ 1,418,751 Special mention 49,347 22,500 27,997 99,844 65,541 — 25,229 90,770 Substandard 52,882 2,016 23,421 78,319 33,197 23,813 52,683 109,693 Doubtful — — 468 468 — — — — Loss — — — — — — — — Total $ 733,106 $ 108,273 $ 544,828 $ 1,386,207 $ 800,395 $ 126,768 $ 692,051 $ 1,619,214 |
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, 2017 Real estate: Residential 1-4 family $ 1,532 $ 1,715 $ 5,071 $ 8,318 $ 2,109,729 $ 2,118,047 $ — Commercial real estate — — — — 733,106 733,106 — Home equity line of credit 425 114 2,051 2,590 910,462 913,052 — Residential land 23 — 625 648 15,149 15,797 — Commercial construction — — — — 108,273 108,273 — Residential construction — — — — 14,910 14,910 — Commercial 1,825 2,025 730 4,580 540,248 544,828 — Consumer 3,432 2,159 1,876 7,467 216,097 223,564 — Total loans $ 7,237 $ 6,013 $ 10,353 $ 23,603 $ 4,647,974 $ 4,671,577 $ — 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 $ — |
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 2017 2016 (in thousands) Real estate: Residential 1-4 family $ 12,598 $ 11,154 Commercial real estate — 223 Home equity line of credit 4,466 3,080 Residential land 841 878 Commercial construction — — Residential construction — — Commercial 3,069 6,708 Consumer 2,617 1,282 Total nonaccrual loans $ 23,591 $ 23,325 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 $ 10,982 $ 14,450 Commercial real estate 1,016 1,346 Home equity line of credit 6,584 4,934 Residential land 425 2,751 Commercial construction — — Residential construction — — Commercial 1,741 14,146 Consumer 66 10 Total troubled debt restructured loans not included above $ 20,814 $ 37,637 |
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 2017 2016 (in thousands) Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded Real estate: Residential 1-4 family $ 9,097 $ 9,644 $ — $ 9,571 $ 10,400 $ — Commercial real estate — — — 223 228 — Home equity line of credit 1,496 1,789 — 1,500 1,900 — Residential land 1,143 1,434 — 1,218 1,803 — Commercial construction — — — — — — Residential construction — — — — — — Commercial 2,328 3,166 — 6,299 8,869 — Consumer 8 8 — — — — 14,072 16,041 — 18,811 23,200 — With an allowance recorded Real estate: Residential 1-4 family 9,187 9,390 1,248 10,283 10,486 1,352 Commercial real estate 1,016 1,016 65 1,346 1,346 80 Home equity line of credit 6,692 6,736 647 4,658 4,712 215 Residential land 122 122 47 2,411 2,411 789 Commercial construction — — — — — — Residential construction — — — — — — Commercial 2,246 2,252 694 14,240 14,240 1,641 Consumer 58 58 29 10 10 6 19,321 19,574 2,730 32,948 33,205 4,083 Total Real estate: Residential 1-4 family 18,284 19,034 1,248 19,854 20,886 1,352 Commercial real estate 1,016 1,016 65 1,569 1,574 80 Home equity line of credit 8,188 8,525 647 6,158 6,612 215 Residential land 1,265 1,556 47 3,629 4,214 789 Commercial construction — — — — — — Residential construction — — — — — — Commercial 4,574 5,418 694 20,539 23,109 1,641 Consumer 66 66 29 10 10 6 $ 33,393 $ 35,615 $ 2,730 $ 51,759 $ 56,405 $ 4,083 ASB's average recorded investment of, and interest income recognized from, impaired loans were as follows: December 31 2017 2016 2015 (in thousands) Average Interest Average Interest Average Interest With no related allowance recorded Real estate: Residential 1-4 family $ 9,440 $ 316 $ 10,136 $ 324 $ 11,215 $ 332 Commercial real estate 91 11 1,124 — 370 74 Home equity line of credit 1,976 101 1,105 23 484 4 Residential land 1,094 117 1,518 66 2,397 137 Commercial construction — — — — — — Residential construction — — — — — — Commercial 2,776 54 8,694 370 5,185 157 Consumer 1 — 2 — — — 15,378 599 22,579 783 19,651 704 With an allowance recorded Real estate: Residential 1-4 family 9,818 493 11,589 457 11,578 562 Commercial real estate 1,241 54 1,962 15 1,699 — Home equity line of credit 5,045 251 3,765 137 1,597 49 Residential land 1,308 97 2,964 206 4,337 318 Commercial construction — — — — — — Residential construction — — — — — — Commercial 3,691 723 16,106 456 12,507 211 Consumer 57 3 12 — 14 — 21,160 1,621 36,398 1,271 31,732 1,140 Total Real estate: Residential 1-4 family 19,258 809 21,725 781 22,793 894 Commercial real estate 1,332 65 3,086 15 2,069 74 Home equity line of credit 7,021 352 4,870 160 2,081 53 Residential land 2,402 214 4,482 272 6,734 455 Commercial construction — — — — — — Residential construction — — — — — — Commercial 6,467 777 24,800 826 17,692 368 Consumer 58 3 14 — 14 — $ 36,538 $ 2,220 $ 58,977 $ 2,054 $ 51,383 $ 1,844 * Since loan was classified as impaired. |
Schedule of loan modifications | Loan modifications that occurred during 2017 , 2016 , and 2015 and the impact on the allowance for loan losses were as follows: (dollars in thousands) Number of contracts Outstanding recorded investment Net increase in ALLL Years ended Pre-modification Post-modification December 31, 2017 Real estate: Residential 1-4 family 7 $ 742 $ 750 $ 45 Commercial real estate — — — — Home equity line of credit 46 3,016 3,002 557 Residential land 1 92 92 — Commercial construction — — — — Residential construction — — — — Commercial 9 889 889 248 Consumer 1 59 59 27 64 $ 4,798 $ 4,792 $ 877 December 31, 2016 Real estate: Residential 1-4 family 14 $ 3,131 $ 3,245 $ 337 Commercial real estate — — — — Home equity line of credit 36 3,337 3,337 554 Residential land 2 203 204 — Commercial construction — — — — Residential construction — — — — Commercial 15 20,266 20,266 865 Consumer — — — — 67 $ 26,937 $ 27,052 $ 1,756 December 31, 2015 Real estate: Residential 1-4 family 19 $ 3,594 $ 3,668 $ 87 Commercial real estate 1 1,500 1,500 — Home equity line of credit 39 2,441 2,441 370 Residential land 1 218 218 — Commercial construction — — — — Residential construction — — — — Commercial 8 2,267 2,267 486 Consumer — — — — 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 2017 , 2016 , and 2015 and for which the payment default occurred within one year of the modification, were as follows: Years ended December 31 2017 2016 2015 (dollars in thousands) Number of contracts Recorded investment Number of contracts Recorded investment Number of Recorded Troubled debt restructurings that subsequently defaulted Real estate: Residential 1-4 family 1 $ 222 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 — — — — — — 1 $ 222 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 1 Accumulated amortization 1 Valuation allowance Net December 31, 2017 $ 17,511 $ (8,872 ) $ — $ 8,639 December 31, 2016 $ 17,271 $ (7,898 ) $ — $ 9,373 1 Reflects impact of loans paid in full. Changes related to mortgage servicing rights were as follows: (in thousands) 2017 2016 2015 Mortgage servicing rights Balance, January 1 $ 9,373 $ 8,884 $ 11,749 Amount capitalized 1,239 2,740 3,123 Amortization (1,973 ) (2,251 ) (2,682 ) Sale of mortgage servicing rights — — (3,302 ) Other-than-temporary impairment — — (4 ) Carrying amount before valuation allowance, December 31 8,639 9,373 8,884 Valuation allowance for mortgage servicing rights Balance, January 1 — — 209 Provision (recovery) — — (205 ) Other-than-temporary impairment — — (4 ) Balance, December 31 — — — Net carrying value of mortgage servicing rights $ 8,639 $ 9,373 $ 8,884 |
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 2017 2016 (dollars in thousands) Unpaid principal balance $ 1,195,454 $ 1,188,380 Weighted average note rate 3.94 % 3.96 % Weighted average discount rate 10.0 % 9.4 % Weighted average prepayment speed 9.0 % 8.5 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2017 Residential loans $ 613 Fair value of collateral Appraised value less 7% selling cost 71-92% 84% Commercial loans 2,008 Fair value of collateral Appraised value 71-76% 75% Total loans $ 2,621 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% (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 MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows: December 31 2017 2016 (in thousands) Prepayment rate: 25 basis points adverse rate change $ (869 ) $ (567 ) 50 basis points adverse rate change (1,828 ) (1,154 ) Discount rate: 25 basis points adverse rate change (111 ) (128 ) 50 basis points adverse rate change (220 ) (254 ) |
Schedule of deposit liabilities | The summarized components of deposit liabilities were as follows: December 31 2017 2016 (dollars in thousands) Weighted-average stated rate Amount Weighted-average stated rate Amount Savings 0.07 % $ 2,303,450 0.07 % $ 2,208,594 Checking Interest-bearing 0.03 944,833 0.02 890,633 Noninterest-bearing — 896,292 — 817,867 Commercial checking — 863,941 — 821,184 Money market 0.09 114,797 0.12 153,126 Time certificates 1.26 767,284 1.00 657,525 0.20 % $ 5,890,597 0.15 % $ 5,548,929 |
Schedule of maturities of term certificates | The approximate scheduled maturities of time certificates outstanding at December 31, 2017 were as follows: (in thousands) 2018 $ 401,650 2019 114,434 2020 123,310 2021 71,729 2022 52,860 Thereafter 3,301 $ 767,284 |
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 2017 2016 2015 (in thousands) Time certificates $ 7,687 $ 5,390 $ 3,747 Savings 1,567 1,402 1,257 Money market 168 202 205 Interest-bearing checking 238 173 139 $ 9,660 $ 7,167 $ 5,348 |
Schedule of securities sold under agreements to repurchase | The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties: (in millions) Gross amount of recognized liabilities Gross amount offset in the Balance Sheet Net amount of liabilities presented in the Balance Sheet Repurchase agreements December 31, 2017 $ 141 $ — $ 141 December 31, 2016 93 — 93 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, 2017 Commercial account holders $ 141 $ 165 $ — Total $ 141 $ 165 $ — December 31, 2016 Government entities $ 14 $ 15 $ — Commercial account holders 79 101 — Total $ 93 $ 116 $ — Securities sold under agreements to repurchase were summarized as follows: December 31 2017 2016 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 $ 140,859 0.65 % $ 165,464 $ 79,083 0.15 % $ 100,305 1 to 29 days — — — — — — 30 to 90 days — — — 13,535 0.70 15,239 Over 90 days — — — — — — $ 140,859 0.65 % $ 165,464 $ 92,618 0.23 % $ 115,544 |
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) 2017 2016 2015 Amount outstanding as of December 31 $ 141 $ 93 $ 229 Average amount outstanding during the year $ 98 $ 170 $ 219 Maximum amount outstanding as of any month-end $ 141 $ 229 $ 277 Weighted-average interest rate as of December 31 0.65 % 0.23 % 1.24 % Weighted-average interest rate during the year 0.26 % 1.43 % 1.29 % Weighted-average remaining days to maturity as of December 31 1 6 117 |
Schedule of advances from Federal Home Loan Bank | FHLB advances are fixed rate for a specific term and consist of the following: December 31, 2017 Weighted-average stated rate Amount (dollars in thousands) Due in 2018 1.95 % $ 50,000 2019 — — 2020 — — 2021 — — 2022 — — Thereafter — — 1.95 % $ 50,000 |
Schedule of actual and minimum required capital amounts and ratios | The tables below set forth actual and minimum required capital amounts and ratios: Actual Minimum required Required to be well capitalized (dollars in thousands) Capital Ratio Capital Ratio Capital Ratio December 31, 2017 Tier 1 leverage 571,810 8.58 % 266,430 4.00 % 333,038 5.00 % Common equity tier 1 571,810 12.95 % 198,628 4.50 % 286,907 6.50 % Tier 1 capital 571,810 12.95 % 264,838 6.00 % 353,117 8.00 % Total capital 626,987 14.20 % 353,117 8.00 % 441,396 10.00 % December 31, 2016 Tier 1 leverage 542,239 8.59 % 252,515 4.00 % 315,644 5.00 % Common equity tier 1 542,239 12.17 % 200,455 4.50 % 289,545 6.50 % Tier 1 capital 542,239 12.17 % 267,273 6.00 % 356,364 8.00 % Total capital 597,940 13.42 % 356,364 8.00 % 445,455 10.00 % |
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 2017 2016 (in thousands) Notional amount Fair value Notional amount Fair value Interest rate lock commitments $ 13,669 $ 131 $ 25,883 $ 421 Forward commitments 14,465 (24 ) 30,813 (177 ) |
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 2017 2016 (in thousands) Asset derivatives Liability derivatives Asset derivatives Liability derivatives Interest rate lock commitments $ 133 $ 2 $ 445 $ 24 Forward commitments 4 28 8 185 $ 137 $ 30 $ 453 $ 209 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 ASB's 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 2017 2016 2015 Interest rate lock commitments Mortgage banking income $ (290 ) $ 37 $ (6 ) Forward commitments Mortgage banking income 153 (148 ) 77 $ (137 ) $ (111 ) $ 71 |
Schedule of off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: December 31 2017 2016 (in thousands) Unfunded commitments to extend credit: Home equity line of credit $ 1,214,103 $ 1,146,339 Commercial and commercial real estate 466,510 577,410 Consumer 68,053 64,762 Residential 1-4 family 18,635 38,271 Commercial and financial standby letters of credit 13,136 16,017 Total $ 1,780,437 $ 1,842,799 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of long-term debt | December 31 2017 2016 (dollars in thousands) Long-term debt of Utilities, net of unamortized debt issuance costs 1 $ 1,368,479 $ 1,319,260 Hamakua Energy 4.02% notes, due 2030 67,325 — HEI 2.99% term loan, due 2022 150,000 — HEI 5.67% senior notes, due 2021 50,000 50,000 HEI 3.99% senior notes, due 2023 50,000 50,000 HEI term loans LIBOR + 0.75%, paid 2017 — 200,000 Less unamortized debt issuance costs (2,007 ) (241 ) $ 1,683,797 $ 1,619,019 1 See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. On June 29, 2017, the DBF for the benefit of the Utilities, issued, at par: Refunding Series 2017A Special Purpose Revenue Bonds Refunding Series 2017B Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 3.10% 4.00% Maturity date May 1, 2026 March 1, 2037 DBF loaned the proceeds to: Hawaiian Electric $62 million $100 million Hawaii Electric Light $8 million $20 million Maui Electric $55 million $20 million Proceeds from the sale were applied to redeem at par bonds previously issued by the DBF for the benefit of the Utilities: Refunding Series 2007B Special Purpose Revenue Bonds Series 2007A Special Purpose Revenue Bonds Aggregate principal amount $125 million $140 million Fixed coupon interest rate 4.60% 4.65% Maturity date May 1, 2026 March 1, 2037 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 gains (losses) on derivatives Retirement benefit plans AOCI Balance, December 31, 2014 $ 462 $ (289 ) $ (27,551 ) $ (27,378 ) $ — $ 45 $ 45 Current period other comprehensive income (loss), net of taxes (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 income (loss), net of taxes (6,059 ) (400 ) (408 ) (6,867 ) (454 ) (793 ) (1,247 ) Balance, December 31, 2016 (7,931 ) (454 ) (24,744 ) (33,129 ) (454 ) 132 (322 ) Current period other comprehensive income (loss), net of taxes (4,370 ) 454 2,544 (1,372 ) 454 (1,142 ) (688 ) Reclass of AOCI for tax rate reduction impact (2,650 ) — (4,790 ) (7,440 ) — (209 ) (209 ) Balance, December 31, 2017 $ (14,951 ) $ — $ (26,990 ) $ (41,941 ) $ — $ (1,219 ) (1,219 ) |
Reclassification Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI were as follows: Amount reclassified from AOCI Affected line item in the Statement of Years ended December 31 2017 2016 2015 Income/Balance Sheet (in thousands) HEI consolidated Net realized gains on securities included in net income $ — $ (360 ) $ — Revenues-bank (gains on sale of investment securities, net) Derivatives qualifying as cash flow hedges: Window forward contracts 454 (173 ) — Property, plant and equipment-electric utilities (2017); Revenues-electric utilities (gains on window forward contracts (2016) Interest rate contracts (settled in 2011) — 54 235 Interest expense Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost 15,737 14,518 22,465 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (78,724 ) 28,584 (25,139 ) See Note 8 for additional details Total reclassifications $ (62,533 ) $ 42,623 $ (2,439 ) Hawaiian Electric consolidated Derivatives qualifying as cash flow hedges Window forward contracts 454 (173 ) — Property, plant and equipment (2017); Revenues (gains on window forward contracts (2016) Retirement benefit plans: Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost $ 14,477 $ 13,254 $ 20,381 See Note 8 for additional details Impact of D&Os of the PUC included in regulatory assets (78,724 ) 28,584 (25,139 ) See Note 8 for additional details Total reclassifications $ (63,793 ) $ 41,665 $ (4,758 ) |
Retirement benefits (Tables)
Retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 and 2016 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, 2017 and 2016 were as follows: 2017 2016 (in thousands) Pension benefits Other benefits Pension benefits Other benefits HEI consolidated Benefit obligation, January 1 $ 1,935,494 $ 233,835 $ 1,798,030 $ 221,540 Service cost 64,906 3,374 60,555 3,331 Interest cost 81,185 9,453 81,549 9,670 Actuarial losses (gains) 87,399 (25,557 ) 67,741 7,831 Participants contributions — 2,078 — 1,405 Benefits paid and expenses (74,628 ) (10,582 ) (72,381 ) (9,942 ) Benefit obligation, December 31 2,094,356 212,601 1,935,494 233,835 Fair value of plan assets, January 1 1,369,701 174,251 1,271,474 170,687 Actual return on plan assets 255,324 28,248 103,836 11,352 Employer contributions 66,983 — 65,463 42 Participants contributions — 2,078 — 1,405 Benefits paid and expenses (73,305 ) (10,582 ) (71,072 ) (9,235 ) Fair value of plan assets, December 31 1,618,703 193,995 1,369,701 174,251 Accrued benefit asset (liability), December 31 $ (475,653 ) $ (18,606 ) $ (565,793 ) $ (59,584 ) Other assets $ 15,443 $ — $ 13,477 $ — Defined benefit pension and other postretirement benefit plans liability (491,096 ) (18,606 ) (579,270 ) (59,584 ) Accrued benefit asset (liability), December 31 $ (475,653 ) $ (18,606 ) $ (565,793 ) $ (59,584 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 619,451 $ 42,290 $ 581,763 $ 32,550 Recognized during year – prior service credit 55 1,793 57 1,793 Recognized during year – net actuarial losses (26,496 ) (1,130 ) (24,832 ) (804 ) Occurring during year – net actuarial losses (gains) (65,180 ) (41,479 ) 62,463 8,751 AOCI debit before cumulative impact of PUC D&Os, December 31 527,830 1,474 619,451 42,290 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 $ 37,936 $ (1,293 ) $ 42,518 $ (1,684 ) Net actuarial loss $ 527,907 $ 10,183 $ 619,582 $ 52,792 Prior service gain (77 ) (8,709 ) (131 ) (10,502 ) AOCI debit before cumulative impact of PUC D&Os, December 31 527,830 1,474 619,451 42,290 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 37,936 (1,293 ) 42,518 (1,684 ) Income taxes (benefits) (9,986 ) 333 (16,746 ) 656 AOCI debit/(credit), net of taxes (benefits), December 31 $ 27,950 $ (960 ) $ 25,772 $ (1,028 ) As of December 31, 2017 and 2016, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. 2017 2016 (in thousands) Pension benefits Other benefits Pension benefits Other benefits Hawaiian Electric consolidated Benefit obligation, January 1 $ 1,779,626 $ 225,723 $ 1,649,690 $ 213,990 Service cost 63,059 3,353 58,796 3,284 Interest cost 74,632 9,115 74,808 9,337 Actuarial losses (gains) 80,186 (25,172 ) 63,121 7,545 Participants contributions — 2,047 — 1,389 Benefits paid and expenses (68,691 ) (10,419 ) (66,789 ) (9,822 ) Transfers (164 ) (3 ) — — Benefit obligation, December 31 1,928,648 204,644 1,779,626 225,723 Fair value of plan assets, January 1 1,233,184 171,383 1,141,833 167,930 Actual return on plan assets 237,830 27,806 93,441 11,168 Employer contributions 65,669 — 64,236 11 Participants contributions — 2,047 — 1,389 Benefits paid and expenses (68,225 ) (10,419 ) (66,326 ) (9,115 ) Other (55 ) (3 ) — — Fair value of plan assets, December 31 1,468,403 190,814 1,233,184 171,383 Accrued benefit liability, December 31 $ (460,245 ) $ (13,830 ) $ (546,442 ) $ (54,340 ) Other liabilities (short-term) (494 ) (633 ) (460 ) (596 ) Defined benefit pension and other postretirement benefit plans liability (459,751 ) (13,197 ) (545,982 ) (53,744 ) Accrued benefit liability, December 31 $ (460,245 ) $ (13,830 ) $ (546,442 ) $ (54,340 ) AOCI debit, January 1 (excluding impact of PUC D&Os) $ 579,725 $ 40,967 $ 541,118 $ 31,485 Recognized during year – prior service credit (cost) (8 ) 1,804 (13 ) 1,803 Recognized during year – net actuarial losses (24,392 ) (1,102 ) (22,693 ) (793 ) Occurring during year – net actuarial losses (gains) (61,861 ) (40,830 ) 61,313 8,472 AOCI debit before cumulative impact of PUC D&Os, December 31 493,464 839 579,725 40,967 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 $ 3,570 $ (1,928 ) $ 2,792 $ (3,007 ) Net actuarial loss $ 493,439 $ 9,531 $ 579,691 $ 51,463 Prior service cost (gain) 25 (8,692 ) 34 (10,496 ) AOCI debit before cumulative impact of PUC D&Os, December 31 493,464 839 579,725 40,967 Cumulative impact of PUC D&Os (489,894 ) (2,767 ) (576,933 ) (43,974 ) AOCI debit/(credit), December 31 3,570 (1,928 ) 2,792 (3,007 ) Income taxes (benefits) (920 ) 497 (1,087 ) 1,170 AOCI debit/(credit), net of taxes (benefits), December 31 $ 2,650 $ (1,431 ) $ 1,705 $ (1,837 ) |
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 and related investment policy targets and ranges were as follows: Pension benefits 1 Other benefits 2 Investment policy Investment policy December 31 2017 2016 Target Range 2017 2016 Target Range Assets held by category Equity securities 73 % 71 % 70 % 65-75 73 % 70 % 70 % 65-75 Fixed income securities 27 29 30 25-35 27 30 30 25-35 100 % 100 % 100 % 100 % 100 % 100 % 1 Asset allocation is applicable to only HEI and the Utilities. As of December 31, 2017 and 2016, nearly all of ASB's 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 2017 Equity securities $ 568 $ 568 $ — $ — $ 75 $ 75 $ — $ — Equity index funds 435 435 — — 52 52 — — Equity investments at net asset value (NAV) 76 — — — 12 — — — Total equity investments 1,079 1,003 — — 139 127 — — Fixed income securities and public mutual funds 297 81 216 — 46 43 3 — Fixed income investments at NAV 203 — — — 4 — — — Total fixed income investments 500 81 216 — 50 43 3 — Cash equivalents at NAV 36 — — — 5 — — — Total $ 1,615 $ 1,084 $ 216 $ — $ 194 $ 170 $ 3 $ — Cash, receivables and payables, net 4 — Fair value of plan assets $ 1,619 $ 194 2016 Equity securities $ 692 $ 692 $ — $ — $ 94 $ 94 $ — $ — Equity index funds 129 129 — — 17 17 — — Equity investments at 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 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) 2017 Non U.S. equity funds (a) 76 Daily-Monthly 5 - 30 days 12 Daily-Monthly 5-30 days Fixed income investments (b) 203 Monthly 15 days 4 Monthly 15 days Cash equivalents (c) 36 Daily 0-1 day 5 Daily 0-1 day $ 315 $ 21 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 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, 2017 were: daily, 32% and monthly, 68% and as of December 31, 2016 were: daily, 31% ; monthly, 31% ; and quarterly, 38% . Redemption frequency for other benefits assets as of December 31, 2017 were: daily, 26% and monthly, 74% and as of December 31, 2016 were: monthly, 57% ; and quarterly, 42% . (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 |
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 2017 2016 2015 2017 2016 2015 Benefit obligation Discount rate 3.74 % 4.26 % 4.60 % 3.72 % 4.22 % 4.57 % Rate of compensation increase 3.5 3.5 3.5 NA NA NA Net periodic pension/benefit cost (years ended) Discount rate 4.26 4.60 4.22 4.22 4.57 4.17 Expected return on plan assets 1 7.50 7.75 7.75 7.50 7.75 7.75 Rate of compensation increase 2 3.5 3.5 3.5 NA NA NA NA Not applicable 1 For 2017 and 2016, HEI's and Utilities' plan assets only. For 2017 and 2016, ASB's expected return on plan assets was 4.46% and 4.80% , respectively. 2 The Company and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population. |
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) 2017 2016 2015 2017 2016 2015 HEI consolidated Service cost $ 64,906 $ 60,555 $ 66,260 $ 3,374 $ 3,331 $ 3,927 Interest cost 81,185 81,549 76,960 9,453 9,670 9,011 Expected return on plan assets (102,745 ) (98,559 ) (88,554 ) (12,326 ) (12,273 ) (11,664 ) Amortization of net prior service (gain) cost (55 ) (57 ) 4 (1,793 ) (1,793 ) (1,793 ) Amortization of net actuarial losses 26,496 24,832 36,800 1,130 804 1,796 Net periodic pension/benefit cost 69,787 68,320 91,470 (162 ) (261 ) 1,277 Impact of PUC D&Os (18,004 ) (18,117 ) (40,011 ) 1,211 1,343 (240 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 51,783 $ 50,203 $ 51,459 $ 1,049 $ 1,082 $ 1,037 Hawaiian Electric consolidated Service cost $ 63,059 $ 58,796 $ 64,262 $ 3,353 $ 3,284 $ 3,870 Interest cost 74,632 74,808 70,529 9,115 9,337 8,700 Expected return on plan assets (95,892 ) (91,633 ) (82,541 ) (12,147 ) (12,096 ) (11,495 ) Amortization of net prior service (gain) cost 8 13 40 (1,804 ) (1,803 ) (1,804 ) Amortization of net actuarial losses 24,392 22,693 33,371 1,102 793 1,754 Net periodic pension/benefit cost 66,199 64,677 85,661 (381 ) (485 ) 1,025 Impact of PUC D&Os (18,004 ) (18,117 ) (40,011 ) 1,211 1,343 (240 ) Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) $ 48,195 $ 46,560 $ 45,650 $ 830 $ 858 $ 785 |
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 2018 is as follows: HEI consolidated Hawaiian Electric consolidated (in millions) Pension benefits Other benefits Pension benefits Other benefits Estimated prior service credit $ — $ (1.8 ) $ — $ (1.8 ) Net actuarial loss 29.6 — 26.8 — |
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 2017 2016 2017 2016 (in billions) Defined benefit plans - ABOs $ 1.8 $ 1.7 $ 1.7 $ 1.5 Defined benefit plans with ABO in excess of plan assets ABOs 1.7 1.6 1.7 1.5 Plan assets 1.5 1.3 1.5 1.2 Defined benefit plans with PBOs in excess of plan assets PBOs 2.0 1.8 1.9 1.8 Plan assets 1.5 1.3 1.5 1.2 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 HEI consolidated Share-based compensation expense 1 $ 5.4 $ 4.8 $ 6.5 Income tax benefit 1.9 1.6 2.3 Hawaiian Electric consolidated Share-based compensation expense 1 1.9 1.4 1.9 Income tax benefit 0.7 0.5 0.7 1 For 2017 and 2016, the Company has not capitalized any share-based compensation. In 2015, $0.15 million of this share-based compensation expense was capitalized. |
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) 2017 2016 2015 Shares granted 35,770 19,846 28,246 Fair value $ 1.2 $ 0.6 $ 0.8 Income tax benefit 0.5 0.2 0.3 |
Schedule of restricted stock units | Information about HEI’s grants of restricted stock units was as follows: 2017 2016 2015 Shares (1) Shares (1) Shares (1) Outstanding, January 1 220,683 $ 29.57 210,634 $ 28.82 261,235 $ 25.77 Granted 97,873 33.47 114,431 29.70 85,772 33.69 Vested (92,147 ) 28.88 (85,003 ) 27.84 (102,173 ) 25.67 Forfeited (29,362 ) 31.57 (19,379 ) 29.82 (34,200 ) 27.09 Outstanding, December 31 197,047 $ 31.53 220,683 $ 29.57 210,634 $ 28.82 Total weighted-average grant-date fair value of shares granted ($ millions) $ 3.3 $ 3.4 $ 2.9 (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 TSR was as follows: 2017 2016 2015 Shares (1) Shares (1) Shares (1) Outstanding, January 1 83,106 $ 22.95 162,500 $ 27.66 257,956 $ 28.45 Granted 37,204 39.51 — — — — Vested (issued or unissued and cancelled) (83,106 ) 22.95 (78,553 ) 32.69 (75,915 ) 30.71 Forfeited (4,300 ) 39.51 (841 ) 22.95 (19,541 ) 26.25 Outstanding, December 31 32,904 $ 39.51 83,106 $ 22.95 162,500 $ 27.66 Total weighted-average grant-date fair value of shares granted ($ millions) $ 1.5 $ — $ — (1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS) | The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TSR and the resulting fair value of LTIP awards granted: 2017 Risk-free interest rate 1.46 % Expected life in years 3 Expected volatility 20.1 % Range of expected volatility for Peer Group 15.4% to 26.0% Grant date fair value (per share) $ 39.51 |
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: 2017 2016 2015 Shares (1) Shares (1) Shares (1) Outstanding, January 1 109,816 $ 25.18 222,647 $ 26.02 364,731 $ 26.01 Granted 148,818 33.47 — — — — Vested (109,816 ) 25.18 (109,097 ) 26.89 (121,249 ) 26.05 Increase above target (cancelled) — — (1,989 ) 25.26 3,412 26.89 Forfeited (17,202 ) 33.48 (1,745 ) 25.19 (24,247 ) 25.82 Outstanding, December 31 131,616 $ 33.47 109,816 $ 25.18 222,647 $ 26.02 Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) $ 5.0 $ — $ — (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, 2017 | |
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 2017 2016 2015 2017 2016 2015 (in thousands) Federal Current $ 61,534 $ 59,873 $ 44,343 $ 36,267 $ 952 $ — Deferred* 33,967 43,666 36,664 35,229 70,513 68,757 Deferred tax credits, net (20 ) 268 318 (20 ) 268 318 95,481 103,807 81,325 71,476 71,733 69,075 State Current 10,076 16,473 2,402 8,947 9,232 (1,048 ) Deferred 3,868 3,452 4,768 2,808 3,873 6,869 Deferred tax credits, net (32 ) (37 ) 4,526 (32 ) (37 ) 4,526 13,912 19,888 11,696 11,723 13,068 10,347 Total $ 109,393 $ 123,695 $ 93,021 $ 83,199 $ 84,801 $ 79,422 * Included in the amounts for 2017 are federal deferred income tax expenses of $13.4 million and $9.2 million for the Company and Hawaiian Electric consolidated, respectively, primarily to reduce federal accumulated deferred income tax net asset balances (not accounted for under Utility regulatory ratemaking) to reflect the impact of the Tax Act. See “Lower tax rate” below. |
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 2017 2016 2015 2017 2016 2015 (in thousands) Amount at the federal statutory income tax rate $ 96,796 $ 130,844 $ 89,176 $ 71,801 $ 80,190 $ 75,996 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 9,789 13,915 8,097 7,584 8,494 6,726 Net deferred tax asset adjustment related to the Tax Act 13,420 — — 9,168 — — Other, net (10,612 ) (21,064 ) (4,252 ) (5,354 ) (3,883 ) (3,300 ) Total $ 109,393 $ 123,695 $ 93,021 $ 83,199 $ 84,801 $ 79,422 Effective income tax rate 39.6 % 33.1 % 36.5 % 40.6 % 37.0 % 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 2017 2016 2017 2016 (in thousands) Deferred tax assets Regulatory liabilities, excluding amounts attributable to property, plant and equipment $ 104,984 $ — $ 104,984 $ — Net operating loss 1 — — — 9,158 Allowance for bad debts 16,192 24,500 1,812 2,364 Other 24,397 47,201 11,253 18,720 Total deferred tax assets 145,573 71,701 118,049 30,242 Deferred tax liabilities Property, plant and equipment related 415,452 642,266 413,891 640,667 Regulatory assets, excluding amounts attributable to property, plant and equipment 38,314 35,107 38,314 35,107 Deferred RAM and RBA revenues 15,038 26,053 15,038 26,053 Retirement benefits 32,952 48,400 38,020 51,445 Other 32,247 48,681 6,827 10,629 Total deferred tax liabilities 534,003 800,507 512,090 763,901 Net deferred income tax liability $ 388,430 $ 728,806 $ 394,041 $ 733,659 1 The Hawaiian Electric deferred tax asset for 2016 includes the tax effect of the federal net operating loss carryforward of $9 million , which was utilized in 2017, and federal general business credit carryforwards of $3 million utilized in 2017, 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 2017, 2016 and 2015. HEI consolidated Hawaiian Electric consolidated (in millions) 2017 2016 2015 2017 2016 2015 Unrecognized tax benefits, January 1 $ 3.8 $ 3.6 $ — $ 3.8 $ 3.6 — Additions based on tax positions taken during the year 0.9 — — 0.4 — — Reductions based on tax positions taken during the year (0.2 ) (0.1 ) — (0.2 ) (0.1 ) — Additions for tax positions of prior years — 0.3 3.6 — 0.3 3.6 Reductions for tax positions of prior years (0.5 ) — — (0.5 ) — — Settlements — — — — — — Unrecognized tax benefits, December 31 $ 4.0 $ 3.8 $ 3.6 $ 3.5 $ 3.8 $ 3.6 |
Cash flows (Tables)
Cash flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash and noncash activity | Years ended December 31 2017 2016 2015 (in millions) Supplemental disclosures of cash flow information HEI consolidated Interest paid to non-affiliates $ 83 $ 84 $ 83 Income taxes paid (including refundable credits) 55 55 75 Income taxes refunded (including refundable credits) 1 45 55 Hawaiian Electric consolidated Interest paid to non-affiliates 63 62 61 Income taxes paid (including refundable credits) 26 1 13 Income taxes refunded (including refundable credits) — 20 12 Supplemental disclosures of noncash activities HEI consolidated Property, plant and equipment Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 38 84 70 Common stock dividends reinvested in HEI common stock (financing) 1 — 17 — Loans transferred from held for investment to held for sale (investing) 41 24 — Real estate acquired in settlement of loans (investing) — 1 1 Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) — 1 5 Common stock issued (gross) for director and executive/management compensation (financing) 2 11 7 10 Obligations to fund low income housing investments, net (investing) 13 — — Hawaiian Electric consolidated Electric utility property, plant and equipment Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) 38 84 70 HEI Consolidated and Hawaiian Electric consolidated Electric utility property, plant and equipment Estimated fair value of noncash contributions in aid of construction (investing) 18 28 3 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. 2 The amounts shown represent the market value of common stock issued for director and executive/management compensation and withheld to satisfy statutory tax liabilities. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 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, 2017 Financial assets HEI consolidated Available-for-sale investment securities $ 1,401,198 $ — $ 1,385,771 $ 15,427 $ 1,401,198 Held-to-maturity investment securities 44,515 — 44,412 — 44,412 Stock in Federal Home Loan Bank 9,706 — 9,706 — 9,706 Loans receivable, net 4,628,381 — 11,254 4,770,497 4,781,751 Mortgage servicing rights 8,639 — — 12,052 12,052 Derivative assets 17,812 — 393 — 393 Hawaiian Electric consolidated Derivative assets-window forward contracts 3,240 — 256 — 256 Financial liabilities HEI consolidated Deposit liabilities 5,890,597 — 5,884,071 — 5,884,071 Short-term borrowings—other than bank 117,945 — 117,945 — 117,945 Other bank borrowings 190,859 — 190,829 — 190,829 Long-term debt, net—other than bank 1,683,797 — 1,813,295 — 1,813,295 Derivative liabilities 13,562 20 10 — 30 Hawaiian Electric consolidated Short-term borrowings 4,999 — 4,999 — 4,999 Long-term debt, net 1,368,479 — 1,497,079 — 1,497,079 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 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—window forward contracts 20,734 — 743 — 743 |
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 2017 2016 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 $ — Available-for-sale investment securities (bank segment) Mortgage-related securities-FNMA, FHLMC and GNMA $ — $ 1,201,473 $ — $ — $ 897,474 $ — U.S. Treasury and federal agency obligations — 184,298 — — 192,281 — Mortgage revenue bond — — 15,427 — — 15,427 $ — $ 1,385,771 $ 15,427 $ — $ 1,089,755 $ 15,427 Derivative assets Interest rate lock commitments (bank segment) 1 $ — $ 133 $ — $ — $ 445 $ — Forward commitments (bank segment) 1 — 4 — — 8 — Window forward contracts (electric utility segment) 2 — 256 — — — — $ — $ 393 $ — $ — $ 453 $ — Derivative liabilities Interest rate lock commitments (bank segment) 1 $ — $ 2 $ — $ — $ 24 $ — Forward commitments (bank segment) 1 20 8 — 129 56 — Window forward contracts (electric utility segment) 2 — — — — 743 — $ 20 $ 10 $ — $ 129 $ 823 $ — 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 Derivatives are included in regulatory assets and/or 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) 2017 2016 Mortgage revenue bond Balance, January 1 $ 15,427 $ — Principal payments received — — Purchases — 15,427 Unrealized gain (loss) included in other comprehensive income — — Balance, December 31 $ 15,427 $ 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, 2017 Loans $ 2,621 $ — $ — $ 2,621 December 31, 2016 Loans 2,767 — — 2,767 Real estate acquired in settlement of loans 1,189 — — 1,189 |
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 2017 2016 (dollars in thousands) Unpaid principal balance $ 1,195,454 $ 1,188,380 Weighted average note rate 3.94 % 3.96 % Weighted average discount rate 10.0 % 9.4 % Weighted average prepayment speed 9.0 % 8.5 % The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis: Significant unobservable input value (1) (dollars in thousands) Fair value Valuation technique Significant unobservable input Range Weighted December 31, 2017 Residential loans $ 613 Fair value of collateral Appraised value less 7% selling cost 71-92% 84% Commercial loans 2,008 Fair value of collateral Appraised value 71-76% 75% Total loans $ 2,621 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% (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 transacti50
Other related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 2017 2016 2015 HMSA costs $ 28 $ 28 $ 30 $ 23 $ 22 $ 23 HMSA expense* 19 20 21 14 14 14 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 (unaudi51
Quarterly information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 1 Revenues $ 591,562 $ 632,281 $ 673,185 $ 658,597 $ 2,555,625 Operating income 67,862 75,896 109,545 84,988 338,291 Net income 34,666 39,134 60,544 32,843 167,187 Net income for common stock 34,193 38,661 60,073 32,370 165,297 Basic earnings per common share 3 0.31 0.36 0.55 0.30 1.52 Diluted earnings per common share 4 0.31 0.36 0.55 0.30 1.52 Dividends per common share 0.31 0.31 0.31 0.31 1.24 2016 2 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 3 0.30 0.41 1.17 0.41 2.30 Diluted earnings per common share 4 0.30 0.41 1.17 0.41 2.29 Dividends per common share 0.31 0.31 0.31 0.31 1.24 Hawaiian Electric consolidated 2017 5 Revenues $ 518,611 $ 556,875 $ 598,769 $ 583,311 $ 2,257,566 Operating income 48,938 55,047 87,076 66,460 257,521 Net income 21,964 26,143 47,985 25,854 121,946 Net income for common stock 21,465 25,644 47,487 25,355 119,951 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 Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful. 1 In the fourth quarter of 2017, the Company recorded a $14.2 million adjustment, primarily to reduce deferred tax net asset balances (not accounted for under Utility regulatory ratemaking) to reflect the lower rates enacted by the Tax Act. Also included in this adjustment is $0.7 million (net of tax) of non-executive bonuses paid by ASB related to the enactment of federal tax reform. See below for the impact of the Utilities lower RAM revenues due to the expiration of the 2013 settlement agreement. 2 In the third quarter of 2016, HEI received a $90 million termination fee from NEE and in 2016 received and incurred other merger and spin-off-related amounts (see Note 15 to the Consolidated Financial Statements). For the 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 $(2) million , $(2) million and $64 million , respectively. 3 The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. 4 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. 5 In the fourth quarter of 2017, Hawaiian Electric consolidated recorded a $9.2 million adjustment to reduce deferred tax net asset balances (not accounted for under regulatory ratemaking) to reflect the lower rates enacted by the Tax Act. In the first five months of 2017, the Utilities recorded lower RAM revenues due to the expiration of the 2013 settlement agreement that allowed the accrual of RAM revenues on January 1 (vs. June 1) for years 2014 to 2016 at Hawaiian Electric. For the first and second quarters of 2017, the Utilities recorded lower revenues of $12 million ( $7 million , net of tax impacts) and $8 million ( $4 million , net of tax impacts) due to this RAM lag, respectively. |
Summary of significant accoun52
Summary of significant accounting policies - Depreciation (Details) - MW | Nov. 24, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Depreciation | ||||
Composite annual depreciation rate | 3.20% | 3.20% | 3.20% | |
Minimum | ||||
Depreciation | ||||
Estimated useful life under production plant (in years) | 20 years | |||
Estimated useful life under transmission and distribution plant (in years) | 25 years | |||
Estimated useful life under general plant (in years) | 5 years | |||
Maximum | ||||
Depreciation | ||||
Estimated useful life under production plant (in years) | 88 years | |||
Estimated useful life under transmission and distribution plant (in years) | 65 years | |||
Estimated useful life under general plant (in years) | 65 years | |||
Hamakua Energy Partners, L.P. (HEP) | ||||
Depreciation | ||||
Power produced by power plants (in megawatts) | 60 | 60 |
Summary of significant accoun53
Summary of significant accounting policies - Leases and Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases | |||
Operating lease expense | $ 20,000 | $ 19,000 | $ 18,000 |
Future minimum lease payments | |||
2,018 | 11,000 | ||
2,019 | 10,000 | ||
2,020 | 8,000 | ||
2,021 | 7,000 | ||
2,022 | 4,000 | ||
Thereafter | 36,000 | ||
Total | 76,000 | ||
Reclass of AOCI for tax rate reduction impact | 0 | ||
Retained earnings | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | 7,440 | ||
Retained earnings | Accounting Standards Update 2018-02 | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | 7,400 | ||
AOCI | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | (7,440) | ||
AOCI | Accounting Standards Update 2018-02 | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | (7,400) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Leases | |||
Operating lease expense | 11,000 | $ 10,000 | $ 9,000 |
Future minimum lease payments | |||
2,018 | 6,000 | ||
2,019 | 5,000 | ||
2,020 | 5,000 | ||
2,021 | 5,000 | ||
2,022 | 3,000 | ||
Thereafter | 29,000 | ||
Total | 53,000 | ||
Reclass of AOCI for tax rate reduction impact | 0 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Retained earnings | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | 209 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Retained earnings | Accounting Standards Update 2018-02 | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | 200 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | (209) | ||
Hawaiian Electric Company, Inc. and Subsidiaries | AOCI | Accounting Standards Update 2018-02 | |||
Future minimum lease payments | |||
Reclass of AOCI for tax rate reduction impact | $ (200) |
Summary of significant accoun54
Summary of significant accounting policies - Accounts Receivable and Additional Information (Details) - USD ($) $ in Thousands | Aug. 11, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable | ||||
Allowance for customer accounts receivable, accrued unbilled revenues and other accounts receivable | $ 1,200 | $ 1,100 | ||
Electric utility revenues | ||||
Weighted average AFUDC rate | 1.75% | |||
Goodwill and other intangibles | ||||
Goodwill | 82,190 | 82,190 | ||
American Savings Bank (ASB) | ||||
Goodwill and other intangibles | ||||
Goodwill | 82,190 | 82,190 | ||
Affordable housing investment, carrying value | 59,016 | 47,081 | ||
Commitments to fund affordable housing investments | $ 15,800 | 14,000 | ||
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 | ||||
Nonperforming loans | ||||
Period for write-off | 120 days | |||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||
Electric utility revenues | ||||
Revenue taxes included in revenues and in taxes, other than income taxes expense | $ 202,000 | 187,000 | $ 209,000 | |
Revenue taxes accrued | $ 115,000 | $ 104,000 | ||
Weighted average AFUDC rate | 7.70% | 7.60% | 7.60% | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | ||||
Contributions in aid of construction | ||||
Contributions amortized period | 30 years | |||
Hawaiian Electric Company, Inc. and Subsidiaries | Maximum | ||||
Contributions in aid of construction | ||||
Contributions amortized period | 55 years | |||
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 | $ 82,200 |
Summary of significant accoun55
Summary of significant accounting policies - Summary of Income Tax Expense Related to Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | $ (109,393) | $ (123,695) | $ (93,021) |
American Savings Bank (ASB) | |||
Tax Credit Carryforward [Line Items] | |||
Net benefit to income tax expense | (31,719) | (30,073) | (29,082) |
American Savings Bank (ASB) | Variable Interest Entity, Not Primary Beneficiary | |||
Tax Credit Carryforward [Line Items] | |||
Amortization recognized in the provision for income taxes | (7,400) | (5,800) | (5,400) |
Tax credits and other tax benefits recognized in the provision for income taxes | 10,700 | 8,400 | 8,000 |
Net benefit to income tax expense | $ 3,300 | $ 2,600 | $ 2,600 |
Segment financial information56
Segment financial information (Details) $ in Thousands | Feb. 02, 2018MWhMW | Dec. 26, 2017USD ($) | Nov. 24, 2017MW | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)MW | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Segment financial information | ||||||||||||||
Revenues | $ 658,597 | $ 673,185 | $ 632,281 | $ 591,562 | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 2,555,625 | $ 2,380,654 | $ 2,602,982 | |||
Depreciation and amortization | 221,998 | 204,746 | 195,585 | |||||||||||
Interest expense, net | 91,128 | 88,558 | 88,476 | |||||||||||
Income (loss) before income taxes | 276,580 | 373,841 | 254,788 | |||||||||||
Income taxes (benefit) | 109,393 | 123,695 | 93,021 | |||||||||||
Net income (loss) | 32,843 | 60,544 | 39,134 | 34,666 | 45,107 | 127,613 | 44,601 | 32,825 | 167,187 | 250,146 | 161,767 | |||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | |||||||||||
Net income for common stock | 32,370 | $ 60,073 | $ 38,661 | $ 34,193 | 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | 165,297 | 248,256 | 159,877 | |||
Capital expenditures | 495,187 | 330,043 | 363,804 | |||||||||||
Assets | 13,099,828 | 12,425,506 | 13,099,828 | 12,425,506 | 11,782,018 | |||||||||
Electric utility | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 2,257,566 | 2,094,368 | 2,335,166 | |||||||||||
Depreciation and amortization | 201,282 | 193,996 | 186,319 | |||||||||||
Interest expense, net | 69,637 | 66,824 | 66,370 | |||||||||||
Income (loss) before income taxes | 205,145 | 229,113 | 217,131 | |||||||||||
Income taxes (benefit) | 83,199 | 84,801 | 79,422 | |||||||||||
Net income (loss) | 121,946 | 144,312 | 137,709 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | 1,995 | 1,995 | |||||||||||
Net income for common stock | 119,951 | 142,317 | 135,714 | |||||||||||
Capital expenditures | 441,598 | 320,437 | 350,161 | |||||||||||
Assets | 6,196,281 | 5,975,428 | 6,196,281 | 5,975,428 | 5,672,210 | |||||||||
Bank | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 297,640 | 285,924 | 267,733 | |||||||||||
Depreciation and amortization | 19,416 | 9,813 | 7,928 | |||||||||||
Interest expense, net | 12,156 | 12,755 | 11,326 | |||||||||||
Income (loss) before income taxes | 98,716 | 87,352 | 83,812 | |||||||||||
Income taxes (benefit) | 31,719 | 30,073 | 29,082 | |||||||||||
Net income (loss) | 66,997 | 57,279 | 54,730 | |||||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | |||||||||||
Net income for common stock | 66,997 | 57,279 | 54,730 | |||||||||||
Capital expenditures | 53,272 | 9,394 | 13,470 | |||||||||||
Assets | 6,798,659 | 6,421,357 | 6,798,659 | 6,421,357 | 6,014,755 | |||||||||
Other | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 419 | 362 | 83 | |||||||||||
Depreciation and amortization | 1,300 | 937 | 1,338 | |||||||||||
Interest expense, net | 9,335 | 8,979 | 10,780 | |||||||||||
Income (loss) before income taxes | (27,281) | 57,376 | (46,155) | |||||||||||
Income taxes (benefit) | (5,525) | 8,821 | (15,483) | |||||||||||
Net income (loss) | (21,756) | 48,555 | (30,672) | |||||||||||
Preferred stock dividends of subsidiaries | (105) | (105) | (105) | |||||||||||
Net income for common stock | (21,651) | 48,660 | (30,567) | |||||||||||
Capital expenditures | 317 | 212 | 173 | |||||||||||
Assets | $ 104,888 | $ 28,721 | 104,888 | 28,721 | 95,053 | |||||||||
Operating Segments | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 2,555,625 | 2,380,654 | 2,602,982 | |||||||||||
Operating Segments | Electric utility | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 2,257,455 | 2,094,224 | 2,335,135 | |||||||||||
Operating Segments | Bank | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 297,640 | 285,924 | 267,733 | |||||||||||
Operating Segments | Other | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 530 | 506 | 114 | |||||||||||
Intersegment eliminations | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Intersegment eliminations | Electric utility | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 111 | 144 | 31 | |||||||||||
Intersegment eliminations | Bank | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Intersegment eliminations | Other | ||||||||||||||
Segment financial information | ||||||||||||||
Revenues | $ (111) | $ (144) | $ (31) | |||||||||||
Hamakua Energy Partners, L.P. (HEP) | ||||||||||||||
Segment financial information | ||||||||||||||
Power produced by power plants (in megawatts) | MW | 60 | 60 | ||||||||||||
Hamakua Energy Partners, L.P. (HEP) | Secured Debt | ||||||||||||||
Segment financial information | ||||||||||||||
Proceeds from issuance of secured notes | $ 67,000 | |||||||||||||
Debt instrument, stated interest rate | 4.02% | 4.02% | ||||||||||||
Mauo, LLC | Subsequent Event | ||||||||||||||
Segment financial information | ||||||||||||||
Power produced by power plants (in megawatts) | MW | 8.6 | |||||||||||||
Power storage capacity (in megawatt hours) | MWh | 42.3 | |||||||||||||
Power purchase agreement term | 15 years | |||||||||||||
Power purchase agreement extension term | 5 years |
Electric utility segment - Regu
Electric utility segment - Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory assets | ||
Regulatory assets | $ 869,297 | $ 957,451 |
Regulatory liabilities | ||
Regulatory liabilities | $ 880,770 | 410,693 |
Minimum | Income taxes | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Maximum | Income taxes | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 55 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Regulatory assets | ||
Regulatory assets | $ 869,297 | 957,451 |
Regulatory liabilities | ||
Regulatory liabilities | 880,770 | 410,693 |
Hawaiian Electric Company, Inc. and Subsidiaries | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Regulatory liabilities | 453,986 | 394,072 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | ||
Regulatory liabilities | ||
Regulatory liabilities | 406,324 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 9,961 | 10,824 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | $ 10,499 | 5,797 |
Authorized amortization or recovery periods | 5 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Cost of removal in excess of salvage value | ||
Regulatory liabilities | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Minimum | Other, regulatory liabilities | ||
Regulatory liabilities | ||
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | 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 | Current assets | ||
Regulatory assets | ||
Regulatory assets | $ 88,390 | 66,032 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term assets | ||
Regulatory assets | ||
Regulatory assets | 780,907 | 891,419 |
Hawaiian Electric Company, Inc. and Subsidiaries | Current liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 3,401 | 3,762 |
Hawaiian Electric Company, Inc. and Subsidiaries | Long-term liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 877,369 | 406,931 |
Hawaiian Electric Company, Inc. and Subsidiaries | Retirement benefit plans, regulatory assets | ||
Regulatory assets | ||
Regulatory assets | 637,204 | 745,367 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | ||
Regulatory assets | ||
Regulatory assets | $ 118,201 | 90,100 |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Income taxes | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 55 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account | ||
Regulatory assets | ||
Regulatory assets | $ 64,087 | 73,485 |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Decoupling revenue balancing account | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 2 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | ||
Regulatory assets | ||
Regulatory assets | $ 11,993 | 12,299 |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 19 years | |
Remaining amortization or recovery periods | 6 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Unamortized expense and premiums on retired debt and equity issuances | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 30 years | |
Remaining amortization or recovery periods | 18 years | |
Hawaiian Electric Company, Inc. and Subsidiaries | Vacation earned, but not yet taken | ||
Regulatory assets | ||
Regulatory assets | $ 11,224 | 10,970 |
Authorized amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory assets | ||
Regulatory assets | ||
Regulatory assets | $ 26,588 | $ 25,230 |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory assets | Minimum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 1 year | |
Remaining amortization or recovery periods | 1 year | |
Hawaiian Electric Company, Inc. and Subsidiaries | Other, regulatory assets | Maximum | ||
Regulatory assets | ||
Authorized amortization or recovery periods | 50 years | |
Remaining amortization or recovery periods | 46 years |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major customers | |||
Operating revenues percentage | 11.00% | 11.00% | 11.00% |
Operating revenues amount | $ 239 | $ 226 | $ 265 |
Electric utility segment - Cumu
Electric utility segment - Cumulative Preferred Stock (Details) | Dec. 31, 2017$ / shares |
Hawaiian Electric Company, Inc (HECO) | Series C, D, E, H, J and K Preferred Stock | |
Class of Stock [Line Items] | |
Voluntary liquidation price | $ 20 |
Redemption price | 21 |
Hawaiian Electric Company, Inc (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 |
Maui Electric Company, Limited (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 ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Hamakua Energy Partners, L.P. (HEP) | ||||
Related Party Transaction [Line Items] | ||||
Amount charged to subsidiaries for general management and administrative services | $ 3 | |||
Hawaiian Electric Company, Inc (HECO) | ||||
Related Party Transaction [Line Items] | ||||
Amount charged to subsidiaries for general management and administrative services | $ 6.2 | $ 6.5 | $ 6.5 | |
Effective interest rate basis term | 30 days | |||
Line of credit facility basis point spread | 0.15% |
Electric utility segment - Unco
Electric utility segment - Unconsolidated Variable Interest Entities (Details) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2004USD ($)security | Dec. 31, 2017USD ($)agreemententity | |
Variable Interest Entity [Line Items] | ||
Number of power purchase agreements (PPAs) | agreement | 5 | |
Hawaiian Electric Company, Inc (HECO) | ||
Variable Interest Entity [Line Items] | ||
Number of power purchase agreements (PPAs) | agreement | 5 | |
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 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment in 2004 Debentures | $ 51,500,000 | |
Interest income | 3,400,000 | |
Variable Interest Entity, Not Primary Beneficiary | Hawaiian Electric Company, Inc (HECO) | ||
Variable Interest Entity [Line Items] | ||
Principal amount of 2004 Debentures | $ 31,500,000 | |
Variable Interest Entity, Not Primary Beneficiary | Hawaii Electric Light Company, Inc. (HELCO) | ||
Variable Interest Entity [Line Items] | ||
Principal amount of 2004 Debentures | $ 10,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | 2004 Trust Preferred Securities | Hawaiian Electric Company, Inc (HECO) | ||
Variable Interest Entity [Line Items] | ||
Number of 2004 Trust Preferred Securities issued | security | 2,000,000 | |
Dividend rate on 2004 Trust Preferred Securities | 6.50% | |
Aggregate Liquidation preference | $ 50,000,000 | |
Balance of Trust Securities | 50,000,000 | |
Dividend distributions on Trust Preferred Securities | 3,300,000 | |
Variable Interest Entity, Not Primary Beneficiary | Trust Common Securities | Hawaiian Electric Company, Inc (HECO) | ||
Variable Interest Entity [Line Items] | ||
Aggregate Liquidation preference | $ 1,500,000 | |
Balance of Trust Securities | 1,500,000 | |
Common dividend | $ 100,000 |
Electric utility segment - Addi
Electric utility segment - Additional Information (Details) | Feb. 16, 2018USD ($) | Feb. 14, 2018USD ($) | Jan. 19, 2018USD ($) | Dec. 15, 2017USD ($) | Nov. 15, 2017 | Oct. 12, 2017USD ($) | Aug. 21, 2017USD ($) | Jul. 11, 2017 | Apr. 27, 2017USD ($) | Dec. 16, 2016USD ($) | Sep. 19, 2016USD ($) | Aug. 11, 2016USD ($) | May 23, 2016 | Feb. 18, 2016contract | Jan. 05, 2016USD ($) | Jun. 30, 2017USD ($)$ / kWh | Jul. 31, 2016MW | Sep. 30, 2015USD ($) | Jun. 30, 2015MW | Aug. 31, 2012MW | May 31, 2012MW | Oct. 31, 2004MW | Oct. 31, 1988MW | Mar. 31, 1988MW | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)MWagreementcontract | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 18, 2017USD ($) |
Power purchase agreements | ||||||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | |||||||||||||||||||||||||||||||||
Revenue subject to refund | $ 3,000,000 | |||||||||||||||||||||||||||||||||
Renewable projects | ||||||||||||||||||||||||||||||||||
ERP/EAM implementation project costs | $ 35,300,000 | |||||||||||||||||||||||||||||||||
ERP/EAM cost recovery cap | $ 77,600,000 | |||||||||||||||||||||||||||||||||
ERP/EAM required pass-through savings | $ 244,000,000 | $ 244,000,000 | ||||||||||||||||||||||||||||||||
ERP/EAM project service period (in years) | 12 years | |||||||||||||||||||||||||||||||||
Weighted average AFUDC rate | 1.75% | |||||||||||||||||||||||||||||||||
ERP/EAM estimated total benefits | $ 256,000,000 | |||||||||||||||||||||||||||||||||
ERP/EAM implementation project costs, operations and management | 6,700,000 | |||||||||||||||||||||||||||||||||
ERP/EAM implementation project costs, capital costs | 2,600,000 | |||||||||||||||||||||||||||||||||
ERP/EAM implementation project costs, deferred costs | 26,000,000 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Total project costs incurred | $ 121,600,000 | |||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Solar project, energy production (in megawatts) | MW | 20 | |||||||||||||||||||||||||||||||||
Solar project, project cap | $ 67,000,000 | $ 67,000,000 | ||||||||||||||||||||||||||||||||
Solar project, maximum energy costs (in dollars per KWH) | $ / kWh | 9.56 | |||||||||||||||||||||||||||||||||
Solar project, cost incurred | $ 6,400,000 | |||||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 263,209,000 | $ 237,950,000 | 263,209,000 | 263,209,000 | 263,209,000 | |||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
Target performance historical measurement period | 10 years | |||||||||||||||||||||||||||||||||
Service reliability, maximum penalty, percent of return on equity | 0.20% | |||||||||||||||||||||||||||||||||
Maximum penalty amount | $ 6,000,000 | |||||||||||||||||||||||||||||||||
Dead band percentage above or below target | 3.00% | |||||||||||||||||||||||||||||||||
Call center performance, maximum penalty amount | $ 1,200,000 | |||||||||||||||||||||||||||||||||
Threshold of capital expenditures in excess of customer contributions for qualification for major project interim recovery | $ 2,500,000 | |||||||||||||||||||||||||||||||||
General rate increase, revenue | $ 106,400,000 | |||||||||||||||||||||||||||||||||
Revenue, calculation assumption, rate of return | 8.28% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions, rate of return, return on average common equity | 9.75% | 10.60% | ||||||||||||||||||||||||||||||||
Decoupling order, requirement for application for general rate case | 3 years | |||||||||||||||||||||||||||||||||
Stipulated settlement letter, basis spread on reduction amount | 0.25% | |||||||||||||||||||||||||||||||||
Stipulated settlement letter, perent of pass-through of minor energy generation fuel recovery | 100.00% | |||||||||||||||||||||||||||||||||
Statement of probable entitlement, calculation assumptions, rate of return | 7.57% | |||||||||||||||||||||||||||||||||
Statement of probable entitlement, calculation assumptions, rate of return, ROACE | 9.50% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions, rate of return, common equity capitalization | 57.00% | |||||||||||||||||||||||||||||||||
Interim D&O, reduction in revenue requirement, pension regulatory asset | $ 6,000,000 | |||||||||||||||||||||||||||||||||
Interim D&O, reduction in revenue requirement, pension contribution regulatory asset | 5,000,000 | |||||||||||||||||||||||||||||||||
Interim D&O, reduction in revenue requirement, pension contribution regulatory asset in 2011 | 17,200,000 | |||||||||||||||||||||||||||||||||
Interim D&O, reduction in revenue requirement, baseline plant additions | $ 5,000,000 | |||||||||||||||||||||||||||||||||
PCB Contamination | ||||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Accrual for environmental loss contingencies | $ 4,800,000 | 4,800,000 | 4,800,000 | 4,800,000 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 22,300,000 | 22,300,000 | 22,300,000 | 22,300,000 | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts receivable | 4,900,000 | 4,900,000 | 4,900,000 | 4,900,000 | ||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||
Fuel contracts | ||||||||||||||||||||||||||||||||||
Estimated cost of minimum purchase within 2018 year | 130,000,000 | |||||||||||||||||||||||||||||||||
Estimated cost of minimum purchase in 2019 year | 130,000,000 | |||||||||||||||||||||||||||||||||
Cost of purchases | $ 600,000,000 | 400,000,000 | $ 600,000,000 | |||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||||||
Power purchase capacity excluding agreements with smaller IPPs (in megawatts) | MW | 551 | |||||||||||||||||||||||||||||||||
Expected fixed capacity charges per year for 2018 through 2022, minimum | $ 100,000,000 | |||||||||||||||||||||||||||||||||
Expected fixed capacity charges from 2023 through 2033 | 900,000,000 | |||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
ARO, recognition impact on earnings | 0 | |||||||||||||||||||||||||||||||||
Changes in the asset retirement obligation liability | ||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ 25,589,000 | $ 6,035,000 | 25,589,000 | 26,848,000 | ||||||||||||||||||||||||||||||
Accretion expense | 10,000 | 10,000 | ||||||||||||||||||||||||||||||||
Liabilities incurred | 5,370,000 | 0 | ||||||||||||||||||||||||||||||||
Liabilities settled | (527,000) | (1,269,000) | ||||||||||||||||||||||||||||||||
Revisions in estimated cash flows | (24,407,000) | 0 | ||||||||||||||||||||||||||||||||
Balance at the end of the period | 6,035,000 | $ 25,589,000 | $ 26,848,000 | 6,035,000 | 6,035,000 | 6,035,000 | ||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
Decoupling, revision in estimated cash flows | $ 8,000,000 | $ 12,000,000 | $ 20,000,000 | |||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | Scenario, Forecast | ||||||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
Estimated income tax expense (benefit) resulting from Tax Act | 28,000,000 | |||||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | ||||||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||||||
Number of power purchase agreements (PPAs) | agreement | 5 | |||||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | Kalaeloa Partners, L.P. (Kalaeloa) | ||||||||||||||||||||||||||||||||||
Power purchase agreements | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc (HECO) | Hawaiian Telcom | ||||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | $ 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||||||||||||||||||||||
HELCO | ||||||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
General rate increase, revenue | $ 19,300,000 | |||||||||||||||||||||||||||||||||
Revenue, calculation assumption, rate of return | 8.44% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions, rate of return, return on average common equity | 10.60% | |||||||||||||||||||||||||||||||||
Stipulated return on average common equity rate | 9.50% | 9.75% | ||||||||||||||||||||||||||||||||
General rate increase, return on average common equity percent decrease | 0.25% | |||||||||||||||||||||||||||||||||
Interim general rate increase | $ 9,900,000 | |||||||||||||||||||||||||||||||||
HELCO | Scenario, Forecast | ||||||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
Estimated income tax expense (benefit) resulting from Tax Act | 6,600,000 | |||||||||||||||||||||||||||||||||
HELCO | Hawaiian Telcom | ||||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | ||||||||||||||||||||||||||||||
MECO | ||||||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
General rate increase, revenue | $ 30,100,000 | |||||||||||||||||||||||||||||||||
Revenue, calculation assumption, rate of return | 8.05% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions, rate of return, return on average common equity | 10.60% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions, rate of return, common equity capitalization | 56.90% | |||||||||||||||||||||||||||||||||
General rate increase, revenue, percent | 9.30% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions rate base | $ 473,000,000 | |||||||||||||||||||||||||||||||||
Conditional general rate increase amount | $ 46,600,000 | |||||||||||||||||||||||||||||||||
Conditional general rate increase, revenue | 14.30% | |||||||||||||||||||||||||||||||||
MECO | Scenario, Forecast | ||||||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
Estimated income tax expense (benefit) resulting from Tax Act | $ 2,500,000 | |||||||||||||||||||||||||||||||||
MECO | Hawaiian Telcom | ||||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | ||||||||||||||||||||||||||||||
Maui Electric Company, Limited (MECO) | ||||||||||||||||||||||||||||||||||
Environmental regulation | ||||||||||||||||||||||||||||||||||
Additional accrued investigation and estimated cleanup costs | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | ||||||||||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||||||||
Decoupling | ||||||||||||||||||||||||||||||||||
Statement of probable entitlement, interim increase | $ 36,000,000 | $ 15,600,000 | $ 36,000,000 | |||||||||||||||||||||||||||||||
Statement of probable entitlement, calculation assumptions, rate of return | 7.57% | |||||||||||||||||||||||||||||||||
Statement of probable entitlement, calculation assumptions, rate of return, ROACE | 9.50% | |||||||||||||||||||||||||||||||||
Stipulated settlement letter, rate of return ROACE | 9.75% | |||||||||||||||||||||||||||||||||
Revenue, calculation assumptions, rate of return, common equity capitalization | 57.00% |
Electric utility segment - Powe
Electric utility segment - Power Purchase Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | $ 587 | $ 563 | $ 594 |
Kalaeloa Partners, L.P. (Kalaeloa) | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | 180 | 152 | 187 |
AES Hawaii, Inc. (AES Hawaii) | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | 140 | 149 | 134 |
HPOWER | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | 67 | 71 | 66 |
Puna Geothermal Venture | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | 38 | 28 | 29 |
Hamakua Energy Partners, L.P. (HEP) | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | 35 | 29 | 44 |
Hawaiian Commercial & Sugar (HC&S) | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | 0 | 1 | 8 |
Other IPPs | |||
Regulatory Projects and Legal Obligations [Line Items] | |||
Purchased power | $ 127 | $ 133 | $ 126 |
Electric utility segment - Annu
Electric utility segment - Annual Decoupling Filings (Details) $ in Millions | May 31, 2017USD ($) |
Hawaiian Electric Company, Inc (HECO) | |
Regulatory Projects and Legal Obligations [Line Items] | |
2017 Annual incremental RAM adjusted revenues | $ 12.7 |
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) | (2.4) |
Net annual incremental amount to be collected under the tariffs | 10.3 |
HELCO | |
Regulatory Projects and Legal Obligations [Line Items] | |
2017 Annual incremental RAM adjusted revenues | 3.2 |
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) | (2.5) |
Net annual incremental amount to be collected under the tariffs | 0.7 |
MECO | |
Regulatory Projects and Legal Obligations [Line Items] | |
2017 Annual incremental RAM adjusted revenues | 1.6 |
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded) | (0.2) |
Net annual incremental amount to be collected under the tariffs | $ 1.4 |
Electric utility segment - Cons
Electric utility segment - Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 658,597 | $ 673,185 | $ 632,281 | $ 591,562 | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 2,555,625 | $ 2,380,654 | $ 2,602,982 |
Expenses | |||||||||||
Purchased power | 587,000 | 563,000 | 594,000 | ||||||||
Total expenses | 2,217,334 | 2,032,479 | 2,280,429 | ||||||||
Operating income | 84,988 | 109,545 | 75,896 | 67,862 | 88,427 | 105,442 | 85,455 | 68,851 | 338,291 | 348,175 | 322,553 |
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 | ||||||||
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 | ||||||||
Income before income taxes | 276,580 | 373,841 | 254,788 | ||||||||
Income taxes | 109,393 | 123,695 | 93,021 | ||||||||
Net income (loss) | 32,843 | 60,544 | 39,134 | 34,666 | 45,107 | 127,613 | 44,601 | 32,825 | 167,187 | 250,146 | 161,767 |
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | ||||||||
Net income for common stock | 32,370 | 60,073 | 38,661 | 34,193 | 44,634 | 127,142 | 44,128 | 32,352 | 165,297 | 248,256 | 159,877 |
Hawaiian Electric Company, Inc (HECO) | |||||||||||
Revenues | 1,598,504 | 1,474,384 | 1,644,181 | ||||||||
Expenses | |||||||||||
Fuel oil | 408,204 | 305,359 | 458,069 | ||||||||
Purchased power | 454,189 | 431,009 | 440,983 | ||||||||
Other operation and maintenance | 279,440 | 273,176 | 284,583 | ||||||||
Depreciation | 130,889 | 126,086 | 117,682 | ||||||||
Taxes, other than income taxes | 152,933 | 141,615 | 156,871 | ||||||||
Total expenses | 1,425,655 | 1,277,245 | 1,458,188 | ||||||||
Operating income | 172,849 | 197,139 | 185,993 | ||||||||
Allowance for equity funds used during construction | 10,896 | 6,659 | 5,641 | ||||||||
Equity in earnings of subsidiaries | 38,057 | 42,391 | 42,920 | ||||||||
Interest expense and other charges, net | (48,277) | (45,839) | (45,899) | ||||||||
Allowance for borrowed funds used during construction | 4,089 | 2,484 | 1,967 | ||||||||
Income before income taxes | 177,614 | 202,834 | 190,622 | ||||||||
Income taxes | 56,583 | 59,437 | 53,828 | ||||||||
Net income (loss) | 121,031 | 143,397 | 136,794 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income attributable to Hawaiian Electric | 121,031 | 143,397 | 136,794 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | 119,951 | 142,317 | 135,714 | ||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Revenues | 333,467 | 311,385 | 345,549 | ||||||||
Expenses | |||||||||||
Fuel oil | 63,894 | 55,094 | 71,851 | ||||||||
Purchased power | 87,772 | 81,018 | 97,503 | ||||||||
Other operation and maintenance | 66,277 | 63,897 | 63,098 | ||||||||
Depreciation | 38,741 | 37,797 | 37,250 | ||||||||
Taxes, other than income taxes | 31,184 | 29,017 | 32,312 | ||||||||
Total expenses | 287,868 | 266,823 | 302,014 | ||||||||
Operating income | 45,599 | 44,562 | 43,535 | ||||||||
Allowance for equity funds used during construction | 554 | 765 | 604 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Interest expense and other charges, net | (11,799) | (11,555) | (10,773) | ||||||||
Allowance for borrowed funds used during construction | 238 | 294 | 215 | ||||||||
Income before income taxes | 34,592 | 34,066 | 33,581 | ||||||||
Income taxes | 13,912 | 12,277 | 12,292 | ||||||||
Net income (loss) | 20,680 | 21,789 | 21,289 | ||||||||
Preferred stock dividends of subsidiaries | 534 | 534 | 534 | ||||||||
Net income attributable to Hawaiian Electric | 20,146 | 21,255 | 20,755 | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | 20,146 | 21,255 | 20,755 | ||||||||
Maui Electric Company, Limited (MECO) | |||||||||||
Revenues | 325,678 | 308,705 | 345,517 | ||||||||
Expenses | |||||||||||
Fuel oil | 115,670 | 94,251 | 124,680 | ||||||||
Purchased power | 44,673 | 50,713 | 55,610 | ||||||||
Other operation and maintenance | 72,193 | 68,460 | 65,408 | ||||||||
Depreciation | 23,154 | 23,178 | 22,448 | ||||||||
Taxes, other than income taxes | 30,832 | 29,230 | 32,702 | ||||||||
Total expenses | 286,522 | 265,832 | 300,848 | ||||||||
Operating income | 39,156 | 42,873 | 44,669 | ||||||||
Allowance for equity funds used during construction | 1,033 | 901 | 683 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Interest expense and other charges, net | (9,644) | (9,536) | (9,779) | ||||||||
Allowance for borrowed funds used during construction | 451 | 366 | 275 | ||||||||
Income before income taxes | 30,996 | 34,604 | 35,848 | ||||||||
Income taxes | 12,704 | 13,087 | 13,302 | ||||||||
Net income (loss) | 18,292 | 21,517 | 22,546 | ||||||||
Preferred stock dividends of subsidiaries | 381 | 381 | 381 | ||||||||
Net income attributable to Hawaiian Electric | 17,911 | 21,136 | 22,165 | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | 17,911 | 21,136 | 22,165 | ||||||||
Other subsidiaries | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Fuel oil | 0 | 0 | 0 | ||||||||
Purchased power | 0 | 0 | 0 | ||||||||
Other operation and maintenance | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Taxes, other than income taxes | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Interest expense and other charges, net | 0 | 0 | |||||||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income attributable to Hawaiian Electric | 0 | 0 | 0 | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
Consolidating adjustments | |||||||||||
Revenues | (83) | (106) | (81) | ||||||||
Expenses | |||||||||||
Fuel oil | 0 | 0 | 0 | ||||||||
Purchased power | 0 | 0 | 0 | ||||||||
Other operation and maintenance | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Taxes, other than income taxes | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Operating income | (83) | (106) | (81) | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (38,057) | (42,391) | (42,920) | ||||||||
Interest expense and other charges, net | 83 | 106 | 81 | ||||||||
Allowance for borrowed funds used during construction | 0 | 0 | 0 | ||||||||
Income before income taxes | (38,057) | (42,391) | (42,920) | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | (38,057) | (42,391) | (42,920) | ||||||||
Preferred stock dividends of subsidiaries | 0 | 0 | 0 | ||||||||
Net income attributable to Hawaiian Electric | (38,057) | (42,391) | (42,920) | ||||||||
Preferred stock dividends of Hawaiian Electric | 0 | 0 | 0 | ||||||||
Net income for common stock | (38,057) | (42,391) | (42,920) | ||||||||
HECO Consolidated | |||||||||||
Revenues | 583,311 | 598,769 | 556,875 | 518,611 | 544,668 | 572,253 | 495,395 | 482,052 | 2,257,566 | 2,094,368 | 2,335,166 |
Expenses | |||||||||||
Fuel oil | 587,768 | 454,704 | 654,600 | ||||||||
Purchased power | 586,634 | 562,740 | 594,096 | ||||||||
Other operation and maintenance | 417,910 | 405,533 | 413,089 | ||||||||
Depreciation | 192,784 | 187,061 | 177,380 | ||||||||
Taxes, other than income taxes | 214,949 | 199,862 | 221,885 | ||||||||
Total expenses | 2,000,045 | 1,809,900 | 2,061,050 | ||||||||
Operating income | 66,460 | 87,076 | 55,047 | 48,938 | 68,644 | 89,812 | 70,686 | 55,326 | 257,521 | 284,468 | 274,116 |
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Interest expense and other charges, net | (69,637) | (66,824) | (66,370) | ||||||||
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 | ||||||||
Income before income taxes | 205,145 | 229,113 | 217,131 | ||||||||
Income taxes | 83,199 | 84,801 | 79,422 | ||||||||
Net income (loss) | 25,854 | 47,985 | 26,143 | 21,964 | 34,618 | 47,472 | 36,356 | 25,866 | 121,946 | 144,312 | 137,709 |
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | ||||||||
Net income attributable to Hawaiian Electric | 121,031 | 143,397 | 136,794 | ||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | ||||||||
Net income for common stock | $ 25,355 | $ 47,487 | $ 25,644 | $ 21,465 | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | $ 119,951 | $ 142,317 | $ 135,714 |
Electric utility segment - Co66
Electric utility segment - Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income for common stock | $ 32,370 | $ 60,073 | $ 38,661 | $ 34,193 | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 165,297 | $ 248,256 | $ 159,877 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | (281) | 0 | ||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 454 | (119) | 235 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 65,531 | (43,510) | 5,889 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 15,737 | 14,518 | 22,465 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (78,724) | 28,584 | (25,139) | ||||||||
Other comprehensive income (loss), net of taxes | (1,372) | (6,867) | 1,116 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 163,925 | 241,389 | 160,993 | ||||||||
Hawaiian Electric Company, Inc (HECO) | |||||||||||
Net income for common stock | 119,951 | 142,317 | 135,714 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | (281) | ||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 454 | (173) | |||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 63,105 | (42,631) | 5,638 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 14,477 | 13,254 | 20,381 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (78,724) | 28,584 | (25,139) | ||||||||
Other comprehensive income (loss), net of taxes | (688) | (1,247) | 880 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 119,263 | 141,070 | 136,594 | ||||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Net income for common stock | 20,146 | 21,255 | 20,755 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | ||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | 0 | |||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 3,093 | (5,141) | (2,710) | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 1,903 | 1,718 | 2,728 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (4,994) | 3,269 | 104 | ||||||||
Other comprehensive income (loss), net of taxes | 2 | (154) | 122 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 20,148 | 21,101 | 20,877 | ||||||||
Maui Electric Company, Limited (MECO) | |||||||||||
Net income for common stock | 17,911 | 21,136 | 22,165 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | ||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | 0 | |||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 7,329 | (5,447) | (1,352) | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 1,619 | 1,549 | 2,503 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (9,003) | 3,852 | (1,107) | ||||||||
Other comprehensive income (loss), net of taxes | (55) | (46) | 44 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 17,856 | 21,090 | 22,209 | ||||||||
Other subsidiaries | |||||||||||
Net income for common stock | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | ||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | 0 | |||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 0 | 0 | 0 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 0 | 0 | 0 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 0 | 0 | 0 | ||||||||
Consolidating adjustments | |||||||||||
Net income for common stock | (38,057) | (42,391) | (42,920) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | ||||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 0 | 0 | |||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | (10,422) | 10,588 | 4,062 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | (3,522) | (3,267) | (5,231) | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | 13,997 | (7,121) | 1,003 | ||||||||
Other comprehensive income (loss), net of taxes | 53 | 200 | (166) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | (38,004) | (42,191) | (43,086) | ||||||||
HECO Consolidated | |||||||||||
Net income for common stock | $ 25,355 | $ 47,487 | $ 25,644 | $ 21,465 | $ 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | 119,951 | 142,317 | 135,714 |
Other comprehensive income (loss), net of taxes: | |||||||||||
Effective portion of foreign currency hedge net unrealized gains (losses) arising during the period, net of (taxes) benefits of nil, $179 and nil for 2017, 2016 and 2015, respectively | 0 | (281) | 0 | ||||||||
Reclassification adjustment to net income, net of (taxes) benefit | 454 | (173) | 0 | ||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(41,129), $27,703 and $(3,753) for 2017, 2016 and 2015, respectively | 63,105 | (42,631) | 5,638 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $10,041, $9,267 and $14,344 for 2017, 2016 and 2015, respectively | 14,477 | 13,254 | 20,381 | ||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $49,523, $(18,206) and $16,011 for 2017, 2016 and 2015, respectively | (78,724) | 28,584 | (25,139) | ||||||||
Other comprehensive income (loss), net of taxes | (688) | (1,247) | 880 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 119,263 | $ 141,070 | $ 136,594 |
Electric utility segment - Co67
Electric utility segment - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Utility property, plant and equipment | ||||
Total property, plant and equipment, net | $ 5,025,916 | $ 4,603,465 | ||
Other long-term assets | ||||
Total assets | 13,099,828 | 12,425,506 | $ 11,782,018 | |
Capitalization | ||||
Common stock equity | 2,097,386 | 2,066,753 | 1,927,640 | $ 1,790,573 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Current liabilities | ||||
Interest and dividends payable | 25,837 | 25,225 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 388,430 | 728,806 | ||
Contributions in aid of construction | 565,668 | 543,525 | ||
Total capitalization and liabilities | 13,099,828 | 12,425,506 | ||
Hawaiian Electric Company, Inc (HECO) | ||||
Utility property, plant and equipment | ||||
Land | 43,972 | 43,956 | ||
Plant and equipment | 4,492,568 | 4,241,060 | ||
Less accumulated depreciation | (1,451,612) | (1,382,972) | ||
Construction in progress | 245,995 | 180,194 | ||
Utility property, plant and equipment, net | 3,330,923 | 3,082,238 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 5,933 | 5,760 | ||
Total property, plant and equipment, net | 3,336,856 | 3,087,998 | ||
Investment in wholly-owned subsidiaries, at equity | 557,013 | 550,946 | ||
Current assets | ||||
Cash and cash equivalents | 2,059 | 61,388 | 16,281 | 12,416 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 86,987 | 86,373 | ||
Accrued unbilled revenues, net | 77,176 | 65,821 | ||
Other accounts receivable, net | 11,376 | 7,652 | ||
Fuel oil stock, at average cost | 64,972 | 47,239 | ||
Materials and supplies, at average cost | 28,325 | 29,928 | ||
Prepayments and other | 17,928 | 16,502 | ||
Regulatory assets | 76,203 | 60,185 | ||
Total current assets | 365,026 | 375,088 | ||
Other long-term assets | ||||
Regulatory assets | 557,464 | 662,232 | ||
Unamortized debt expense | 436 | 151 | ||
Other | 59,721 | 43,743 | ||
Total other long-term assets | 617,621 | 706,126 | ||
Total assets | 4,876,516 | 4,720,158 | ||
Capitalization | ||||
Common stock equity | 1,845,283 | 1,799,787 | 1,728,325 | 1,682,144 |
Cumulative preferred stock – not subject to mandatory redemption | 22,293 | 22,293 | ||
Long-term debt, net | 924,979 | 915,437 | ||
Total capitalization | 2,792,555 | 2,737,517 | ||
Current liabilities | ||||
Current portion of long-term debt | 29,978 | |||
Short-term borrowings from non-affiliate | 4,999 | |||
Short-term borrowings-affiliate | 12,000 | 13,500 | ||
Accounts payable | 121,328 | 86,369 | ||
Interest and dividends payable | 15,677 | 15,761 | ||
Taxes accrued, including revenue taxes | 133,839 | 120,176 | ||
Regulatory liabilities | 607 | 0 | ||
Other | 43,121 | 41,352 | ||
Total current liabilities | 361,549 | 277,158 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 281,223 | 524,433 | ||
Regulatory liabilities | 613,329 | 281,112 | ||
Unamortized tax credits | 59,039 | 57,844 | ||
Defined benefit pension and other postretirement benefit plans liability | 340,983 | 444,458 | ||
Other | 61,738 | 49,191 | ||
Total deferred credits and other liabilities | 1,356,312 | 1,357,038 | ||
Contributions in aid of construction | 366,100 | 348,445 | ||
Total capitalization and liabilities | 4,876,516 | 4,720,158 | ||
Hawaii Electric Light Company, Inc. (HELCO) | ||||
Utility property, plant and equipment | ||||
Land | 6,189 | 6,181 | ||
Plant and equipment | 1,299,920 | 1,255,185 | ||
Less accumulated depreciation | (528,024) | (507,666) | ||
Construction in progress | 11,922 | 12,510 | ||
Utility property, plant and equipment, net | 790,007 | 766,210 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 115 | 115 | ||
Total property, plant and equipment, net | 790,122 | 766,325 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 4,025 | 10,749 | 2,682 | 612 |
Advances to affiliates | 0 | 3,500 | ||
Customer accounts receivable, net | 22,510 | 20,055 | ||
Accrued unbilled revenues, net | 15,940 | 13,564 | ||
Other accounts receivable, net | 2,268 | 2,445 | ||
Fuel oil stock, at average cost | 8,698 | 8,229 | ||
Materials and supplies, at average cost | 8,041 | 7,380 | ||
Prepayments and other | 4,514 | 5,352 | ||
Regulatory assets | 5,038 | 3,483 | ||
Total current assets | 71,034 | 74,757 | ||
Other long-term assets | ||||
Regulatory assets | 122,783 | 120,863 | ||
Unamortized debt expense | 77 | 23 | ||
Other | 16,234 | 13,573 | ||
Total other long-term assets | 139,094 | 134,459 | ||
Total assets | 1,000,250 | 975,541 | ||
Capitalization | ||||
Common stock equity | 286,647 | 291,291 | 292,702 | 281,846 |
Cumulative preferred stock – not subject to mandatory redemption | 7,000 | 7,000 | ||
Long-term debt, net | 202,701 | 213,703 | ||
Total capitalization | 496,348 | 511,994 | ||
Current liabilities | ||||
Current portion of long-term debt | 10,992 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 17,855 | 18,126 | ||
Interest and dividends payable | 4,174 | 4,206 | ||
Taxes accrued, including revenue taxes | 34,950 | 28,100 | ||
Regulatory liabilities | 1,245 | 2,219 | ||
Other | 9,818 | 7,637 | ||
Total current liabilities | 79,034 | 60,288 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 56,955 | 108,052 | ||
Regulatory liabilities | 169,139 | 93,974 | ||
Unamortized tax credits | 16,167 | 15,994 | ||
Defined benefit pension and other postretirement benefit plans liability | 66,447 | 75,005 | ||
Other | 19,276 | 13,024 | ||
Total deferred credits and other liabilities | 327,984 | 306,049 | ||
Contributions in aid of construction | 96,884 | 97,210 | ||
Total capitalization and liabilities | 1,000,250 | 975,541 | ||
Maui Electric Company, Limited (MECO) | ||||
Utility property, plant and equipment | ||||
Land | 3,016 | 3,016 | ||
Plant and equipment | 1,154,075 | 1,109,487 | ||
Less accumulated depreciation | (496,716) | (478,644) | ||
Construction in progress | 25,322 | 19,038 | ||
Utility property, plant and equipment, net | 685,697 | 652,897 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 1,532 | 1,532 | ||
Total property, plant and equipment, net | 687,229 | 654,429 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 6,332 | 2,048 | 5,385 | 633 |
Advances to affiliates | 12,000 | 10,000 | ||
Customer accounts receivable, net | 18,392 | 17,260 | ||
Accrued unbilled revenues, net | 13,938 | 12,308 | ||
Other accounts receivable, net | 1,210 | 1,416 | ||
Fuel oil stock, at average cost | 13,203 | 10,962 | ||
Materials and supplies, at average cost | 18,031 | 16,371 | ||
Prepayments and other | 2,913 | 2,179 | ||
Regulatory assets | 7,149 | 2,364 | ||
Total current assets | 93,168 | 74,908 | ||
Other long-term assets | ||||
Regulatory assets | 100,660 | 108,324 | ||
Unamortized debt expense | 98 | 34 | ||
Other | 14,963 | 13,592 | ||
Total other long-term assets | 115,721 | 121,950 | ||
Total assets | 896,118 | 851,287 | ||
Capitalization | ||||
Common stock equity | 270,265 | 259,554 | 263,725 | 256,692 |
Cumulative preferred stock – not subject to mandatory redemption | 5,000 | 5,000 | ||
Long-term debt, net | 190,836 | 190,120 | ||
Total capitalization | 466,101 | 454,674 | ||
Current liabilities | ||||
Current portion of long-term debt | 8,993 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 20,427 | 13,319 | ||
Interest and dividends payable | 2,735 | 2,882 | ||
Taxes accrued, including revenue taxes | 30,312 | 25,387 | ||
Regulatory liabilities | 1,549 | 1,543 | ||
Other | 14,197 | 12,501 | ||
Total current liabilities | 78,213 | 55,632 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 55,863 | 100,911 | ||
Regulatory liabilities | 94,901 | 31,845 | ||
Unamortized tax credits | 15,163 | 15,123 | ||
Defined benefit pension and other postretirement benefit plans liability | 65,518 | 80,263 | ||
Other | 17,675 | 14,969 | ||
Total deferred credits and other liabilities | 249,120 | 243,111 | ||
Contributions in aid of construction | 102,684 | 97,870 | ||
Total capitalization and liabilities | 896,118 | 851,287 | ||
Other subsidiaries | ||||
Utility property, plant and equipment | ||||
Land | 0 | 0 | ||
Plant and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Construction in progress | 0 | 0 | ||
Utility property, plant and equipment, net | 0 | 0 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||
Total property, plant and equipment, net | 0 | 0 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 101 | 101 | 101 | 101 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | 0 | 0 | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Regulatory assets | 0 | 0 | ||
Total current assets | 101 | 101 | ||
Other long-term assets | ||||
Regulatory assets | 0 | 0 | ||
Unamortized debt expense | 0 | 0 | ||
Other | 0 | 0 | ||
Total other long-term assets | 0 | 0 | ||
Total assets | 101 | 101 | ||
Capitalization | ||||
Common stock equity | 101 | 101 | 101 | 101 |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | 101 | 101 | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | 0 | 0 | ||
Taxes accrued, including revenue taxes | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Other | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 0 | 0 | ||
Regulatory liabilities | 0 | 0 | ||
Unamortized tax credits | 0 | 0 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Other | 0 | 0 | ||
Total deferred credits and other liabilities | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
Total capitalization and liabilities | 101 | 101 | ||
Consolidating adjustments | ||||
Utility property, plant and equipment | ||||
Land | 0 | 0 | ||
Plant and equipment | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Construction in progress | 0 | 0 | ||
Utility property, plant and equipment, net | 0 | 0 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 0 | 0 | ||
Total property, plant and equipment, net | 0 | 0 | ||
Investment in wholly-owned subsidiaries, at equity | (557,013) | (550,946) | ||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Advances to affiliates | (12,000) | (13,500) | ||
Customer accounts receivable, net | 0 | 0 | ||
Accrued unbilled revenues, net | 0 | 0 | ||
Other accounts receivable, net | (7,691) | (6,280) | ||
Fuel oil stock, at average cost | 0 | 0 | ||
Materials and supplies, at average cost | 0 | 0 | ||
Prepayments and other | 0 | (933) | ||
Regulatory assets | 0 | 0 | ||
Total current assets | (19,691) | (20,713) | ||
Other long-term assets | ||||
Regulatory assets | 0 | 0 | ||
Unamortized debt expense | 0 | 0 | ||
Other | 0 | 0 | ||
Total other long-term assets | 0 | 0 | ||
Total assets | (576,704) | (571,659) | ||
Capitalization | ||||
Common stock equity | (557,013) | (550,946) | (556,528) | (538,639) |
Cumulative preferred stock – not subject to mandatory redemption | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Total capitalization | (557,013) | (550,946) | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | |||
Short-term borrowings from non-affiliate | 0 | |||
Short-term borrowings-affiliate | (12,000) | (13,500) | ||
Accounts payable | 0 | 0 | ||
Interest and dividends payable | (11) | (11) | ||
Taxes accrued, including revenue taxes | 0 | (933) | ||
Regulatory liabilities | 0 | 0 | ||
Other | (7,680) | (6,269) | ||
Total current liabilities | (19,691) | (20,713) | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 0 | 263 | ||
Regulatory liabilities | 0 | 0 | ||
Unamortized tax credits | 0 | 0 | ||
Defined benefit pension and other postretirement benefit plans liability | 0 | 0 | ||
Other | 0 | (263) | ||
Total deferred credits and other liabilities | 0 | 0 | ||
Contributions in aid of construction | 0 | 0 | ||
Total capitalization and liabilities | (576,704) | (571,659) | ||
HECO Consolidated | ||||
Utility property, plant and equipment | ||||
Land | 53,177 | 53,153 | ||
Plant and equipment | 6,946,563 | 6,605,732 | ||
Less accumulated depreciation | (2,476,352) | (2,369,282) | ||
Construction in progress | 283,239 | 211,742 | ||
Utility property, plant and equipment, net | 4,806,627 | 4,501,345 | ||
Nonutility property, plant and equipment, less accumulated depreciation | 7,580 | 7,407 | ||
Total property, plant and equipment, net | 4,814,207 | 4,508,752 | ||
Investment in wholly-owned subsidiaries, at equity | 0 | 0 | ||
Current assets | ||||
Cash and cash equivalents | 12,517 | 74,286 | 24,449 | 13,762 |
Advances to affiliates | 0 | 0 | ||
Customer accounts receivable, net | 127,889 | 123,688 | ||
Accrued unbilled revenues, net | 107,054 | 91,693 | ||
Other accounts receivable, net | 7,163 | 5,233 | ||
Fuel oil stock, at average cost | 86,873 | 66,430 | ||
Materials and supplies, at average cost | 54,397 | 53,679 | ||
Prepayments and other | 25,355 | 23,100 | ||
Regulatory assets | 88,390 | 66,032 | ||
Total current assets | 509,638 | 504,141 | ||
Other long-term assets | ||||
Regulatory assets | 780,907 | 891,419 | ||
Unamortized debt expense | 611 | 208 | ||
Other | 90,918 | 70,908 | ||
Total other long-term assets | 872,436 | 962,535 | ||
Total assets | 6,196,281 | 5,975,428 | ||
Capitalization | ||||
Common stock equity | 1,845,283 | 1,799,787 | $ 1,728,325 | $ 1,682,144 |
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 | ||
Long-term debt, net | 1,318,516 | 1,319,260 | ||
Total capitalization | 3,198,092 | 3,153,340 | ||
Current liabilities | ||||
Current portion of long-term debt | 49,963 | 0 | ||
Short-term borrowings from non-affiliate | 4,999 | 0 | ||
Short-term borrowings-affiliate | 0 | 0 | ||
Accounts payable | 159,610 | 117,814 | ||
Interest and dividends payable | 22,575 | 22,838 | ||
Taxes accrued, including revenue taxes | 199,101 | 172,730 | ||
Regulatory liabilities | 3,401 | 3,762 | ||
Other | 59,456 | 55,221 | ||
Total current liabilities | 499,105 | 372,365 | ||
Deferred credits and other liabilities | ||||
Deferred income taxes | 394,041 | 733,659 | ||
Regulatory liabilities | 877,369 | 406,931 | ||
Unamortized tax credits | 90,369 | 88,961 | ||
Defined benefit pension and other postretirement benefit plans liability | 472,948 | 599,726 | ||
Other | 98,689 | 76,921 | ||
Total deferred credits and other liabilities | 1,933,416 | 1,906,198 | ||
Contributions in aid of construction | 565,668 | 543,525 | ||
Total capitalization and liabilities | $ 6,196,281 | $ 5,975,428 |
Electric utility segment - Co68
Electric utility segment - Consolidating Statements of Changes in Common Stock Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | $ 2,066,753 | $ 1,927,640 | $ 2,066,753 | $ 1,927,640 | $ 1,790,573 | ||||||
Net income for common stock | $ 32,370 | $ 60,073 | $ 38,661 | 34,193 | $ 44,634 | $ 127,142 | $ 44,128 | 32,352 | 165,297 | 248,256 | 159,877 |
Other comprehensive income (loss), net of tax benefits | (1,372) | (6,867) | 1,116 | ||||||||
Issuance of common stock, net of expenses | 26,844 | ||||||||||
Common stock dividends | (134,873) | (134,050) | (131,765) | ||||||||
Ending Balance | 2,097,386 | 2,066,753 | 2,097,386 | 2,066,753 | 1,927,640 | ||||||
Hawaiian Electric Company, Inc (HECO) | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 1,799,787 | 1,728,325 | 1,799,787 | 1,728,325 | 1,682,144 | ||||||
Net income for common stock | 119,951 | 142,317 | 135,714 | ||||||||
Other comprehensive income (loss), net of tax benefits | (688) | (1,247) | 880 | ||||||||
Issuance of common stock, net of expenses | 14,000 | 23,991 | (8) | ||||||||
Common stock dividends | (87,767) | (93,599) | (90,405) | ||||||||
Ending Balance | 1,845,283 | 1,799,787 | 1,845,283 | 1,799,787 | 1,728,325 | ||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 291,291 | 292,702 | 291,291 | 292,702 | 281,846 | ||||||
Net income for common stock | 20,146 | 21,255 | 20,755 | ||||||||
Other comprehensive income (loss), net of tax benefits | 2 | (154) | 122 | ||||||||
Issuance of common stock, net of expenses | 4 | (5) | 0 | ||||||||
Common stock dividends | (24,796) | (22,507) | (10,021) | ||||||||
Ending Balance | 286,647 | 291,291 | 286,647 | 291,291 | 292,702 | ||||||
Maui Electric Company, Limited (MECO) | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 259,554 | 263,725 | 259,554 | 263,725 | 256,692 | ||||||
Net income for common stock | 17,911 | 21,136 | 22,165 | ||||||||
Other comprehensive income (loss), net of tax benefits | (55) | (46) | 44 | ||||||||
Issuance of common stock, net of expenses | 4,801 | 0 | (1) | ||||||||
Common stock dividends | (11,946) | (25,261) | (15,175) | ||||||||
Ending Balance | 270,265 | 259,554 | 270,265 | 259,554 | 263,725 | ||||||
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 | 0 | 0 | ||||||||
Issuance of common stock, net of expenses | 0 | 0 | 0 | ||||||||
Common stock dividends | 0 | 0 | 0 | ||||||||
Ending Balance | 101 | 101 | 101 | 101 | 101 | ||||||
Consolidating adjustments | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | (550,946) | (556,528) | (550,946) | (556,528) | (538,639) | ||||||
Net income for common stock | (38,057) | (42,391) | (42,920) | ||||||||
Other comprehensive income (loss), net of tax benefits | 53 | 200 | (166) | ||||||||
Issuance of common stock, net of expenses | (4,805) | 5 | 1 | ||||||||
Common stock dividends | 36,742 | 47,768 | 25,196 | ||||||||
Ending Balance | (557,013) | (550,946) | (557,013) | (550,946) | (556,528) | ||||||
HECO Consolidated | |||||||||||
Increase (decrease) in stockholders' equity | |||||||||||
Beginning Balance | 1,799,787 | 1,728,325 | 1,799,787 | 1,728,325 | 1,682,144 | ||||||
Net income for common stock | 25,355 | $ 47,487 | $ 25,644 | $ 21,465 | 34,119 | $ 46,974 | $ 35,857 | $ 25,367 | 119,951 | 142,317 | 135,714 |
Other comprehensive income (loss), net of tax benefits | (688) | (1,247) | 880 | ||||||||
Issuance of common stock, net of expenses | 14,000 | 23,991 | (8) | ||||||||
Common stock dividends | (87,767) | (93,599) | (90,405) | ||||||||
Ending Balance | $ 1,845,283 | $ 1,799,787 | $ 1,845,283 | $ 1,799,787 | $ 1,728,325 |
Electric utility segment - Co69
Electric utility segment - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||||||||||
Net income (loss) | $ 32,843 | $ 60,544 | $ 39,134 | $ 34,666 | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | $ 167,187 | $ 250,146 | $ 161,767 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 200,658 | 194,273 | 183,966 | ||||||||
Other amortization | 21,340 | 10,473 | 11,619 | ||||||||
Impairment of assets | 0 | 0 | 6,021 | ||||||||
Deferred income taxes | 37,835 | 47,118 | 41,432 | ||||||||
Allowance for equity funds used during construction | (12,483) | (8,325) | (6,928) | ||||||||
Other | (3,324) | (12,422) | 1,672 | ||||||||
Changes in assets and liabilities | |||||||||||
Increase in fuel oil stock | (20,794) | 4,786 | 34,830 | ||||||||
Increase in regulatory assets | (17,256) | (18,273) | (24,182) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 20,685 | 39,109 | (42,596) | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 882 | 1,587 | 852 | ||||||||
Net cash provided by operating activities | 420,441 | 495,658 | 356,858 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (495,187) | (330,043) | (363,804) | ||||||||
Contributions in aid of construction | 64,733 | 30,100 | 40,239 | ||||||||
Other | 6,468 | 856 | 7,940 | ||||||||
Net cash used in investing activities | (815,299) | (736,465) | (705,724) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (134,873) | (117,274) | (131,765) | ||||||||
Net proceeds from issuance of common stock | 0 | 13,220 | 104,435 | ||||||||
Proceeds from issuance of long-term debt | 532,325 | 115,000 | 80,000 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | (465,000) | (75,000) | 0 | ||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 67,992 | (103,063) | (15,909) | ||||||||
Other | (6,349) | 2,197 | 2,427 | ||||||||
Net cash used in financing activities | 378,287 | 218,781 | 473,802 | ||||||||
Net increase (decrease) in cash and equivalents | (16,571) | (22,026) | 124,936 | ||||||||
Hawaiian Electric Company, Inc (HECO) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 121,031 | 143,397 | 136,794 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (38,157) | (42,491) | (43,020) | ||||||||
Common stock dividends received from subsidiaries | 36,867 | 47,843 | 25,296 | ||||||||
Depreciation of property, plant and equipment | 130,889 | 126,086 | 117,682 | ||||||||
Other amortization | 2,398 | 2,979 | 4,678 | ||||||||
Impairment of assets | 4,573 | ||||||||||
Deferred income taxes | 26,342 | 54,721 | 53,338 | ||||||||
Allowance for equity funds used during construction | (10,896) | (6,659) | (5,641) | ||||||||
Other | (1,154) | (2,517) | 8,687 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 1,817 | 10,175 | 15,652 | ||||||||
Decrease (increase) in accrued unbilled revenues | (11,355) | (5,741) | 29,733 | ||||||||
Increase in fuel oil stock | (17,733) | 2,216 | 25,060 | ||||||||
Decrease (increase) in materials and supplies | 1,603 | 993 | 2,233 | ||||||||
Increase in regulatory assets | (8,395) | (16,161) | (20,356) | ||||||||
Increase (decrease) in accounts payable | 23,519 | (10,247) | (42,751) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 16,716 | 2,933 | (50,382) | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 709 | 599 | 870 | ||||||||
Changes in other assets and liabilities | (16,213) | (11,682) | (24,197) | ||||||||
Net cash provided by operating activities | 257,988 | 296,444 | 238,249 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (339,279) | (236,425) | (267,621) | ||||||||
Contributions in aid of construction | 57,527 | 23,611 | 35,955 | ||||||||
Advances from (to) affiliates | 0 | 0 | 16,100 | ||||||||
Other | (1,711) | 1,932 | 924 | ||||||||
Net cash used in investing activities | (283,463) | (210,882) | (214,642) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (87,767) | (93,599) | (90,405) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080) | (1,080) | (1,080) | ||||||||
Net proceeds from issuance of common stock | 14,000 | 24,000 | |||||||||
Proceeds from issuance of long-term debt | 202,000 | 40,000 | 50,000 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | (162,000) | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 3,499 | (9,500) | 23,000 | ||||||||
Other | (2,506) | (276) | (1,257) | ||||||||
Net cash used in financing activities | (33,854) | (40,455) | (19,742) | ||||||||
Net increase (decrease) in cash and equivalents | (59,329) | 45,107 | 3,865 | ||||||||
Cash and cash equivalents, beginning of period | 61,388 | 16,281 | 61,388 | 16,281 | 12,416 | ||||||
Cash and cash equivalents, end of period | 2,059 | 61,388 | 2,059 | 61,388 | 16,281 | ||||||
Hawaii Electric Light Company, Inc. (HELCO) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 20,680 | 21,789 | 21,289 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Common stock dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Depreciation of property, plant and equipment | 38,741 | 37,797 | 37,250 | ||||||||
Other amortization | 3,225 | 1,817 | 2,124 | ||||||||
Impairment of assets | 724 | ||||||||||
Deferred income taxes | 3,954 | 7,027 | 8,295 | ||||||||
Allowance for equity funds used during construction | (554) | (765) | (604) | ||||||||
Other | 430 | (750) | (1,949) | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | (359) | (718) | 3,420 | ||||||||
Decrease (increase) in accrued unbilled revenues | (2,376) | (1,033) | 4,593 | ||||||||
Increase in fuel oil stock | (469) | 81 | 5,490 | ||||||||
Decrease (increase) in materials and supplies | (661) | (515) | (201) | ||||||||
Increase in regulatory assets | (4,007) | (1,243) | (3,930) | ||||||||
Increase (decrease) in accounts payable | (3,547) | 768 | (6,425) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 7,961 | 2,645 | (6,166) | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 52 | 53 | (161) | ||||||||
Changes in other assets and liabilities | (433) | (78) | (3,545) | ||||||||
Net cash provided by operating activities | 62,637 | 66,875 | 60,204 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (52,077) | (51,344) | (48,645) | ||||||||
Contributions in aid of construction | 4,293 | 3,412 | 2,160 | ||||||||
Advances from (to) affiliates | 3,500 | 12,000 | (15,500) | ||||||||
Other | 649 | 175 | 132 | ||||||||
Net cash used in investing activities | (43,635) | (35,757) | (61,853) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (24,796) | (22,507) | (10,021) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (534) | (534) | (534) | ||||||||
Net proceeds from issuance of common stock | 0 | 0 | |||||||||
Proceeds from issuance of long-term debt | 28,000 | 0 | 25,000 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | (28,000) | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | (10,500) | ||||||||
Other | (396) | (10) | (226) | ||||||||
Net cash used in financing activities | (25,726) | (23,051) | 3,719 | ||||||||
Net increase (decrease) in cash and equivalents | (6,724) | 8,067 | 2,070 | ||||||||
Cash and cash equivalents, beginning of period | 10,749 | 2,682 | 10,749 | 2,682 | 612 | ||||||
Cash and cash equivalents, end of period | 4,025 | 10,749 | 4,025 | 10,749 | 2,682 | ||||||
Maui Electric Company, Limited (MECO) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 18,292 | 21,517 | 22,546 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Common stock dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Depreciation of property, plant and equipment | 23,154 | 23,178 | 22,448 | ||||||||
Other amortization | 2,875 | 2,139 | 2,137 | ||||||||
Impairment of assets | 724 | ||||||||||
Deferred income taxes | 8,004 | 12,661 | 13,707 | ||||||||
Allowance for equity funds used during construction | (1,033) | (901) | (683) | ||||||||
Other | (342) | (433) | (222) | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 45 | 1,776 | 4,617 | ||||||||
Decrease (increase) in accrued unbilled revenues | (1,630) | (410) | 5,767 | ||||||||
Increase in fuel oil stock | (2,241) | 2,489 | 4,280 | ||||||||
Decrease (increase) in materials and supplies | (1,660) | 272 | 789 | ||||||||
Increase in regulatory assets | (4,854) | (869) | 104 | ||||||||
Increase (decrease) in accounts payable | 5,762 | (1,135) | (5,379) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 5,362 | (3,478) | (6,548) | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | (157) | (168) | 416 | ||||||||
Changes in other assets and liabilities | 166 | (2,272) | (4,554) | ||||||||
Net cash provided by operating activities | 51,743 | 54,366 | 60,149 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (50,242) | (32,668) | (33,895) | ||||||||
Contributions in aid of construction | 2,913 | 3,077 | 2,124 | ||||||||
Advances from (to) affiliates | (2,000) | (2,500) | (7,500) | ||||||||
Other | 400 | 31 | 84 | ||||||||
Net cash used in investing activities | (48,929) | (32,060) | (39,187) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (11,946) | (25,261) | (15,175) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (381) | (381) | (381) | ||||||||
Net proceeds from issuance of common stock | 4,800 | 0 | |||||||||
Proceeds from issuance of long-term debt | 85,000 | 0 | 5,000 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | (75,000) | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | (5,600) | ||||||||
Other | (1,003) | (1) | (54) | ||||||||
Net cash used in financing activities | 1,470 | (25,643) | (16,210) | ||||||||
Net increase (decrease) in cash and equivalents | 4,284 | (3,337) | 4,752 | ||||||||
Cash and cash equivalents, beginning of period | 2,048 | 5,385 | 2,048 | 5,385 | 633 | ||||||
Cash and cash equivalents, end of period | 6,332 | 2,048 | 6,332 | 2,048 | 5,385 | ||||||
Other subsidiaries | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||
Common stock dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Depreciation of property, plant and equipment | 0 | 0 | 0 | ||||||||
Other amortization | 0 | 0 | 0 | ||||||||
Impairment of assets | 0 | ||||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 0 | 0 | 0 | ||||||||
Decrease (increase) in accrued unbilled revenues | 0 | 0 | 0 | ||||||||
Increase in fuel oil stock | 0 | 0 | 0 | ||||||||
Decrease (increase) in materials and supplies | 0 | 0 | 0 | ||||||||
Increase in regulatory assets | 0 | 0 | 0 | ||||||||
Increase (decrease) in accounts payable | 0 | 0 | 0 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 0 | 0 | 0 | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | 0 | ||||||||
Changes in other assets and liabilities | 0 | 0 | 0 | ||||||||
Net cash provided by operating activities | 0 | 0 | 0 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Contributions in aid of construction | 0 | 0 | 0 | ||||||||
Advances from (to) affiliates | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash used in investing activities | 0 | 0 | 0 | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | 0 | 0 | 0 | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | 0 | ||||||||
Net proceeds from issuance of common stock | 0 | 0 | |||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | 0 | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash used in financing activities | 0 | 0 | 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) | (38,057) | (42,391) | (42,920) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | 38,057 | 42,391 | 42,920 | ||||||||
Common stock dividends received from subsidiaries | (36,742) | (47,768) | (25,196) | ||||||||
Depreciation of property, plant and equipment | 0 | 0 | 0 | ||||||||
Other amortization | 0 | 0 | 0 | ||||||||
Impairment of assets | 0 | ||||||||||
Deferred income taxes | (263) | (23) | 286 | ||||||||
Allowance for equity funds used during construction | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 1,411 | (2,682) | 38 | ||||||||
Decrease (increase) in accrued unbilled revenues | 0 | 0 | 0 | ||||||||
Increase in fuel oil stock | 0 | 0 | 0 | ||||||||
Decrease (increase) in materials and supplies | 0 | 0 | 0 | ||||||||
Increase in regulatory assets | 0 | 0 | 0 | ||||||||
Increase (decrease) in accounts payable | 0 | 0 | 0 | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (177) | 23 | 0 | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 0 | 0 | 0 | ||||||||
Changes in other assets and liabilities | (1,411) | 2,682 | (324) | ||||||||
Net cash provided by operating activities | (37,182) | (47,768) | (25,196) | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Contributions in aid of construction | 0 | 0 | 0 | ||||||||
Advances from (to) affiliates | (1,500) | (9,500) | 6,900 | ||||||||
Other | 5,240 | 0 | 0 | ||||||||
Net cash used in investing activities | 3,740 | (9,500) | 6,900 | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | 36,742 | 47,768 | 25,196 | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | 0 | 0 | 0 | ||||||||
Net proceeds from issuance of common stock | (4,800) | 0 | |||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | 0 | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 1,500 | 9,500 | (6,900) | ||||||||
Other | 0 | 0 | 0 | ||||||||
Net cash used in financing activities | 33,442 | 57,268 | 18,296 | ||||||||
Net increase (decrease) in cash and equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 | ||||||
HECO Consolidated | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | 25,854 | $ 47,985 | $ 26,143 | 21,964 | 34,618 | $ 47,472 | $ 36,356 | 25,866 | 121,946 | 144,312 | 137,709 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in earnings | (100) | (100) | (100) | ||||||||
Common stock dividends received from subsidiaries | 125 | 75 | 100 | ||||||||
Depreciation of property, plant and equipment | 192,784 | 187,061 | 177,380 | ||||||||
Other amortization | 8,498 | 6,935 | 8,939 | ||||||||
Impairment of assets | 0 | 0 | 6,021 | ||||||||
Deferred income taxes | 38,037 | 74,386 | 75,626 | ||||||||
Allowance for equity funds used during construction | (12,483) | (8,325) | (6,928) | ||||||||
Other | (1,066) | (3,700) | 6,516 | ||||||||
Changes in assets and liabilities | |||||||||||
Decrease in accounts receivable | 2,914 | 8,551 | 23,727 | ||||||||
Decrease (increase) in accrued unbilled revenues | (15,361) | (7,184) | 40,093 | ||||||||
Increase in fuel oil stock | (20,443) | 4,786 | 34,830 | ||||||||
Decrease (increase) in materials and supplies | (718) | 750 | 2,821 | ||||||||
Increase in regulatory assets | (17,256) | (18,273) | (24,182) | ||||||||
Increase (decrease) in accounts payable | 25,734 | (10,614) | (54,555) | ||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 29,862 | 2,123 | (63,096) | ||||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 604 | 484 | 1,125 | ||||||||
Changes in other assets and liabilities | (17,891) | (11,350) | (32,620) | ||||||||
Net cash provided by operating activities | 335,186 | 369,917 | 333,406 | ||||||||
Cash flows from investing activities | |||||||||||
Capital expenditures | (441,598) | (320,437) | (350,161) | ||||||||
Contributions in aid of construction | 64,733 | 30,100 | 40,239 | ||||||||
Advances from (to) affiliates | 0 | 0 | 0 | ||||||||
Other | 4,578 | 2,138 | 1,140 | ||||||||
Net cash used in investing activities | (372,287) | (288,199) | (308,782) | ||||||||
Cash flows from financing activities | |||||||||||
Common stock dividends | (87,767) | (93,599) | (90,405) | ||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995) | (1,995) | (1,995) | ||||||||
Net proceeds from issuance of common stock | 14,000 | 24,000 | 0 | ||||||||
Proceeds from issuance of long-term debt | 315,000 | 40,000 | 80,000 | ||||||||
Funds transferred for redemption of special purpose revenue bonds | (265,000) | 0 | 0 | ||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 4,999 | 0 | 0 | ||||||||
Other | (3,905) | (287) | (1,537) | ||||||||
Net cash used in financing activities | (24,668) | (31,881) | (13,937) | ||||||||
Net increase (decrease) in cash and equivalents | (61,769) | 49,837 | 10,687 | ||||||||
Cash and cash equivalents, beginning of period | $ 74,286 | $ 24,449 | 74,286 | 24,449 | 13,762 | ||||||
Cash and cash equivalents, end of period | $ 12,517 | $ 74,286 | $ 12,517 | $ 74,286 | $ 24,449 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expense | |||||||||||
Interest on deposit liabilities | $ 9,660 | $ 7,167 | $ 5,348 | ||||||||
Total interest expense | 91,128 | 88,558 | 88,476 | ||||||||
Noninterest expense | |||||||||||
Income before income taxes | 276,580 | 373,841 | 254,788 | ||||||||
Income taxes | 109,393 | 123,695 | 93,021 | ||||||||
Net income (loss) | $ 32,843 | $ 60,544 | $ 39,134 | $ 34,666 | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | 167,187 | 250,146 | 161,767 |
American Savings Bank (ASB) | |||||||||||
Interest and dividend income | |||||||||||
Interest and fees on loans | 207,255 | 199,774 | 184,782 | ||||||||
Interest and dividends on investment securities | 28,823 | 19,184 | 15,120 | ||||||||
Total interest and dividend income | 236,078 | 218,958 | 199,902 | ||||||||
Interest expense | |||||||||||
Interest on deposit liabilities | 9,660 | 7,167 | 5,348 | ||||||||
Interest on other borrowings | 2,496 | 5,588 | 5,978 | ||||||||
Total interest expense | 12,156 | 12,755 | 11,326 | ||||||||
Net interest income | 223,922 | 206,203 | 188,576 | ||||||||
Provision for loan losses | 10,901 | 16,763 | 6,275 | ||||||||
Net interest income after provision for loan losses | 213,021 | 189,440 | 182,301 | ||||||||
Noninterest income | |||||||||||
Fees from other financial services | 22,796 | 22,384 | 22,211 | ||||||||
Fee income on deposit liabilities | 22,204 | 21,759 | 22,368 | ||||||||
Fee income on other financial products | 7,205 | 8,707 | 8,094 | ||||||||
Bank-owned life insurance | 5,539 | 4,637 | 4,078 | ||||||||
Mortgage banking income | 2,201 | 6,625 | 6,330 | ||||||||
Gains on sale of investment securities, net | 0 | 598 | 0 | ||||||||
Other income, net | 1,617 | 2,256 | 4,750 | ||||||||
Total noninterest income | 61,562 | 66,966 | 67,831 | ||||||||
Noninterest expense | |||||||||||
Compensation and employee benefits | 95,751 | 90,117 | 90,518 | ||||||||
Occupancy | 16,699 | 16,321 | 16,365 | ||||||||
Data processing | 13,280 | 13,030 | 12,103 | ||||||||
Services | 10,994 | 11,054 | 10,204 | ||||||||
Equipment | 7,232 | 6,938 | 6,577 | ||||||||
Office supplies, printing and postage | 6,182 | 6,075 | 5,749 | ||||||||
Marketing | 3,501 | 3,489 | 3,463 | ||||||||
FDIC insurance | 2,904 | 3,543 | 3,274 | ||||||||
Other expense | 19,324 | 18,487 | 18,067 | ||||||||
Total noninterest expense | 175,867 | 169,054 | 166,320 | ||||||||
Income before income taxes | 98,716 | 87,352 | 83,812 | ||||||||
Income taxes | 31,719 | 30,073 | 29,082 | ||||||||
Net income (loss) | $ 66,997 | $ 57,279 | $ 54,730 |
Bank segment (HEI only) - Recon
Bank segment (HEI only) - Reconciliation of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Revenues | $ 658,597 | $ 673,185 | $ 632,281 | $ 591,562 | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 2,555,625 | $ 2,380,654 | $ 2,602,982 |
Total interest expense | 91,128 | 88,558 | 88,476 | ||||||||
Total expenses | 2,217,334 | 2,032,479 | 2,280,429 | ||||||||
Operating income | $ 84,988 | $ 109,545 | $ 75,896 | $ 67,862 | $ 88,427 | $ 105,442 | $ 85,455 | $ 68,851 | 338,291 | 348,175 | 322,553 |
American Savings Bank (ASB) | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Interest and dividend income | 236,078 | 218,958 | 199,902 | ||||||||
Noninterest income | 61,562 | 66,966 | 67,831 | ||||||||
Revenues | 297,640 | 285,924 | 267,733 | ||||||||
Total interest expense | 12,156 | 12,755 | 11,326 | ||||||||
Provision for loan losses | 10,901 | 16,763 | 6,275 | ||||||||
Noninterest expense | 175,867 | 169,054 | 166,320 | ||||||||
Total expenses | 198,924 | 198,572 | 183,921 | ||||||||
Operating income | $ 98,716 | $ 87,352 | $ 83,812 |
Bank segment (HEI only) - Sta72
Bank segment (HEI only) - Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | $ 32,370 | $ 60,073 | $ 38,661 | $ 34,193 | $ 44,634 | $ 127,142 | $ 44,128 | $ 32,352 | $ 165,297 | $ 248,256 | $ 159,877 |
Net unrealized losses on available-for sale investment securities: | |||||||||||
Net unrealized losses on available-for sale investment securities arising during the period, net of tax benefits of $2,886, $3,763 and $1,541 for 2017, 2016 and 2015, respectively | (4,370) | (5,699) | (2,334) | ||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238 and nil for 2017, 2016 and 2015, respectively | 0 | (360) | 0 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains arising during the period, net of taxes of nil, nil and $59 for 2017, 2016 and 2015, respectively | 65,531 | (43,510) | 5,889 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $812, $566 and $1,011 for 2017, 2016 and 2015, respectively | 15,737 | 14,518 | 22,465 | ||||||||
Other comprehensive income (loss), net of taxes | (1,372) | (6,867) | 1,116 | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | 163,925 | 241,389 | 160,993 | ||||||||
American Savings Bank (ASB) | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income for common stock | 66,997 | 57,279 | 54,730 | ||||||||
Net unrealized losses on available-for sale investment securities: | |||||||||||
Net unrealized losses on available-for sale investment securities arising during the period, net of tax benefits of $2,886, $3,763 and $1,541 for 2017, 2016 and 2015, respectively | (4,370) | (5,699) | (2,334) | ||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes of nil, $238 and nil for 2017, 2016 and 2015, respectively | 0 | (360) | 0 | ||||||||
Retirement benefit plans: | |||||||||||
Net gains arising during the period, net of taxes of nil, nil and $59 for 2017, 2016 and 2015, respectively | 0 | 0 | 90 | ||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $812, $566 and $1,011 for 2017, 2016 and 2015, respectively | 1,231 | 857 | 1,531 | ||||||||
Other comprehensive income (loss), net of taxes | (3,139) | (5,202) | (713) | ||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ 63,858 | $ 52,077 | $ 54,017 |
Bank segment (HEI only) - Sta73
Bank segment (HEI only) - Statements of Comprehensive Income - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statement of Income Captions [Line Items] | |||
Net unrealized loss on available-for-sale securities, tax benefits | $ (2,886) | $ (3,763) | $ (1,541) |
Reclassification adjustment for net realized gains included in net income, taxes | 0 | 238 | 0 |
Net gains (losses) arising during the period, retirement benefits, taxes | 41,129 | (27,703) | 3,753 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | (10,041) | (9,267) | (14,344) |
American Savings Bank (ASB) | |||
Condensed Statement of Income Captions [Line Items] | |||
Net unrealized loss on available-for-sale securities, tax benefits | (2,886) | (3,763) | (1,541) |
Reclassification adjustment for net realized gains included in net income, taxes | 0 | 238 | 0 |
Net gains (losses) arising during the period, retirement benefits, taxes | 0 | 0 | 59 |
Amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, tax benefits | $ (812) | $ (566) | $ (1,011) |
Bank segment (HEI only) - Balan
Bank segment (HEI only) - Balance Sheets Data (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 261,881,000 | $ 278,452,000 | $ 300,478,000 | $ 175,542,000 |
Investment securities | ||||
Available-for-sale, at fair value | 1,401,198,000 | 1,105,182,000 | ||
Held-to-maturity, at amortized cost (fair value of $44,412 and nil, respectively) | 44,515,000 | 0 | ||
Stock in Federal Home Loan Bank, at cost | 9,706,000 | 11,218,000 | ||
Allowance for loan losses | (53,637,000) | (55,533,000) | ||
Total loans, net | 4,617,131,000 | 4,683,160,000 | ||
Loans held for sale, at lower of cost or fair value | 11,250,000 | 18,817,000 | ||
Other | 513,535,000 | 447,621,000 | ||
Goodwill | 82,190,000 | 82,190,000 | ||
Total assets | 13,099,828,000 | 12,425,506,000 | 11,782,018,000 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other | 521,018,000 | 473,512,000 | ||
Total liabilities | 10,968,149,000 | 10,324,460,000 | ||
Commitments and contingencies | ||||
Retained earnings | 476,836,000 | 438,972,000 | ||
Net unrealized losses on securities | (14,951,000) | (7,931,000) | ||
Accumulated other comprehensive loss, net of tax benefits | (41,941,000) | (33,129,000) | ||
Total shareholders’ equity | 2,097,386,000 | 2,066,753,000 | $ 1,927,640,000 | $ 1,790,573,000 |
Total capitalization and liabilities | 13,099,828,000 | 12,425,506,000 | ||
Other assets | ||||
Premises and equipment, net | 5,025,916,000 | 4,603,465,000 | ||
Total other assets | 513,535,000 | 447,621,000 | ||
Other liabilities | ||||
Total other liabilities | 521,018,000 | 473,512,000 | ||
Held-to-maturity investment securities | 44,412,000 | |||
American Savings Bank (ASB) | ||||
Assets | ||||
Cash and due from banks | 140,934,000 | 137,083,000 | ||
Interest-bearing deposits | 93,165,000 | 52,128,000 | ||
Restricted cash | 0 | 1,764,000 | ||
Investment securities | ||||
Available-for-sale, at fair value | 1,401,198,000 | 1,105,182,000 | ||
Held-to-maturity, at amortized cost (fair value of $44,412 and nil, respectively) | 44,515,000 | 0 | ||
Stock in Federal Home Loan Bank, at cost | 9,706,000 | 11,218,000 | ||
Loans receivable held for investment | 4,670,768,000 | 4,738,693,000 | ||
Allowance for loan losses | (53,637,000) | (55,533,000) | ||
Total loans, net | 4,617,131,000 | 4,683,160,000 | ||
Loans held for sale, at lower of cost or fair value | 11,250,000 | 18,817,000 | ||
Other | 398,570,000 | 329,815,000 | ||
Goodwill | 82,190,000 | 82,190,000 | ||
Total assets | 6,798,659,000 | 6,421,357,000 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Deposit liabilities–noninterest-bearing | 1,760,233,000 | 1,639,051,000 | ||
Deposit liabilities–interest-bearing | 4,130,364,000 | 3,909,878,000 | ||
Other borrowings | 190,859,000 | 192,618,000 | ||
Other | 110,356,000 | 101,635,000 | ||
Total liabilities | 6,191,812,000 | 5,843,182,000 | ||
Commitments and contingencies | ||||
Common stock | 1,000 | 1,000 | ||
Additional paid in capital | 345,018,000 | 342,704,000 | ||
Retained earnings | 292,957,000 | 257,943,000 | ||
Net unrealized losses on securities | (14,951,000) | (7,931,000) | ||
Retirement benefit plans | (16,178,000) | (14,542,000) | ||
Accumulated other comprehensive loss, net of tax benefits | (31,129,000) | (22,473,000) | ||
Total shareholders’ equity | 606,847,000 | 578,175,000 | ||
Total capitalization and liabilities | 6,798,659,000 | 6,421,357,000 | ||
Other assets | ||||
Bank-owned life insurance | 148,775,000 | 143,197,000 | ||
Premises and equipment, net | 136,270,000 | 90,570,000 | ||
Prepaid expenses | 3,961,000 | 3,348,000 | ||
Accrued interest receivable | 18,724,000 | 16,824,000 | ||
Mortgage servicing rights | 8,639,000 | 9,373,000 | ||
Low-income housing investments | 59,016,000 | 47,081,000 | ||
Real estate acquired in settlement of loans, net | 133,000 | 1,189,000 | ||
Other | 23,052,000 | 18,233,000 | ||
Total other assets | 398,570,000 | 329,815,000 | ||
Other liabilities | ||||
Accrued expenses | 39,312,000 | 36,754,000 | ||
Federal and state income taxes payable | 3,736,000 | 4,728,000 | ||
Cashier’s checks | 27,000,000 | 24,156,000 | ||
Advance payments by borrowers | 10,245,000 | 10,335,000 | ||
Other | 30,063,000 | 25,662,000 | ||
Total other liabilities | 110,356,000 | 101,635,000 | ||
Held-to-maturity investment securities | $ 44,412,000 | $ 0 |
Bank segment (HEI only) - Avail
Bank segment (HEI only) - Available For Sale Investment Securities (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)issue | Dec. 31, 2016USD ($)issue | |
Available-for-sale | ||
Total available-for-sale securities, amortized cost | $ 1,421,622,000 | $ 1,118,350,000 |
Gross unrealized gains | 1,231,000 | 2,662,000 |
Gross unrealized losses | (21,655,000) | (15,830,000) |
Available-for-sale investment securities | $ 1,401,198,000 | $ 1,105,182,000 |
Number of issues, less than 12 months | issue | 82 | 106 |
Fair value, less than 12 months | $ 736,772,000 | $ 833,130,000 |
Gross unrealized losses, less than 12 months | $ (7,664,000) | $ (14,153,000) |
Number of issues, more than 12 months | issue | 85 | 14 |
Fair value, 12 months or longer | $ 522,208,000 | $ 50,970,000 |
Gross unrealized losses, 12 months or longer | (13,991,000) | (1,677,000) |
Held-to-maturity Securities [Abstract] | ||
Held-to-maturity Securities | 44,515,000 | 0 |
Gross unrealized gains | 1,000 | |
Gross unrealized losses | (104,000) | |
Held-to-maturity investment securities | $ 44,412,000 | |
Number of issues, less than 12 months | issue | 2 | |
Fair value, less than 12 months | $ 35,744,000 | |
Gross unrealized losses, less than 12 months | $ (104,000) | |
Number of issues, more than 12 months | issue | 0 | |
Fair value, 12 months or longer | $ 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
U.S. Treasury and federal agency obligations | ||
Available-for-sale | ||
Total available-for-sale securities, amortized cost | 185,891,000 | 193,515,000 |
Gross unrealized gains | 438,000 | 920,000 |
Gross unrealized losses | (2,031,000) | (2,154,000) |
Available-for-sale investment securities | $ 184,298,000 | $ 192,281,000 |
Number of issues, less than 12 months | issue | 15 | 18 |
Fair value, less than 12 months | $ 83,137,000 | $ 123,475,000 |
Gross unrealized losses, less than 12 months | $ (825,000) | $ (2,010,000) |
Number of issues, more than 12 months | issue | 8 | 1 |
Fair value, 12 months or longer | $ 62,296,000 | $ 3,485,000 |
Gross unrealized losses, 12 months or longer | (1,206,000) | (144,000) |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Available-for-sale | ||
Total available-for-sale securities, amortized cost | 1,220,304,000 | 909,408,000 |
Gross unrealized gains | 793,000 | 1,742,000 |
Gross unrealized losses | (19,624,000) | (13,676,000) |
Available-for-sale investment securities | $ 1,201,473,000 | $ 897,474,000 |
Number of issues, less than 12 months | issue | 67 | 88 |
Fair value, less than 12 months | $ 653,635,000 | $ 709,655,000 |
Gross unrealized losses, less than 12 months | $ (6,839,000) | $ (12,143,000) |
Number of issues, more than 12 months | issue | 77 | 13 |
Fair value, 12 months or longer | $ 459,912,000 | $ 47,485,000 |
Gross unrealized losses, 12 months or longer | (12,785,000) | (1,533,000) |
Held-to-maturity Securities [Abstract] | ||
Held-to-maturity Securities | 44,515,000 | |
Gross unrealized gains | 1,000 | |
Gross unrealized losses | (104,000) | |
Held-to-maturity investment securities | $ 44,412,000 | |
Number of issues, less than 12 months | issue | 2 | |
Fair value, less than 12 months | $ 35,744,000 | |
Gross unrealized losses, less than 12 months | $ (104,000) | |
Number of issues, more than 12 months | issue | 0 | |
Fair value, 12 months or longer | $ 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Mortgage revenue bond | ||
Available-for-sale | ||
Total available-for-sale securities, amortized cost | 15,427,000 | 15,427,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Available-for-sale investment securities | $ 15,427,000 | $ 15,427,000 |
Number of issues, less than 12 months | issue | 0 | 0 |
Fair value, less than 12 months | $ 0 | $ 0 |
Gross unrealized losses, less than 12 months | $ 0 | $ 0 |
Number of issues, more than 12 months | issue | 0 | 0 |
Fair value, 12 months or longer | $ 0 | $ 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
American Savings Bank (ASB) | ||
Available-for-sale securities | ||
Payments to acquire new campus project | 32,700,000 | |
Available-for-sale | ||
Available-for-sale investment securities | 1,401,198,000 | 1,105,182,000 |
Held-to-maturity Securities [Abstract] | ||
Held-to-maturity Securities | 44,515,000 | 0 |
Held-to-maturity investment securities | $ 44,412,000 | $ 0 |
Bank segment (HEI only) - Inves
Bank segment (HEI only) - Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortized Cost | |||
Due in one year or less | $ 5,000 | ||
Due after one year through five years | 87,404 | ||
Due after five years through ten years | 80,161 | ||
Due after ten years | 28,753 | ||
Total amortized cost | 201,318 | ||
Mortgage-related securities-FNMA, FHLMC and GNMA - amortized cost | 1,220,304 | ||
Total available-for-sale securities, amortized cost | 1,421,622 | $ 1,118,350 | |
Mortgage-related securities-FNMA, FHLMC and GNMA, amortized cost basis | 44,515 | ||
Held-to-maturity Securities | 44,515 | 0 | |
Fair value | |||
Due in one year or less | 4,992 | ||
Due after one year through five years | 87,020 | ||
Due after five years through ten years | 79,358 | ||
Due after ten years | 28,355 | ||
Total fair value | 199,725 | ||
Mortgage-related securities-FNMA, FHLMC and GNMA - fair value | 1,201,473 | ||
Estimated fair value | 1,401,198 | 1,105,182 | |
Mortgage-related securities - FNMA, FHLMC and GNMA, Fair Value | 44,412 | ||
Held-to-maturity securities, Fair Value | 44,412 | ||
Gains (losses) from sales of available-for-sale investments | |||
Proceeds | 0 | 16,423 | $ 0 |
Interest income from taxable and non-taxable investment securities | |||
Taxable | 28,398 | 19,166 | 15,120 |
Non-taxable | 425 | 18 | 0 |
Total | 28,823 | 19,184 | 15,120 |
Available-for-sale securities pledged at carrying value | 411,400 | 277,100 | |
Available-for-sale securities, pledged at carrying value as collateral for securities sold under agreements to repurchase | 165,100 | 114,900 | |
FHLB Des Moines | |||
Interest income from taxable and non-taxable investment securities | |||
Cost method investments | 9,700 | 11,200 | |
Mortgage-related securities - FNMA, FHLMC and GNMA | |||
Gains (losses) from sales of available-for-sale investments | |||
Proceeds | 0 | 16,400 | 0 |
Gross gains | 0 | 600 | 0 |
Gross losses | $ 0 | $ 0 | $ 0 |
Bank segment (HEI only) - Loans
Bank segment (HEI only) - Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans receivable | ||
Loans Receivable | $ 4,671,577 | $ 4,743,619 |
Less: Deferred fees and discounts | (809) | (4,926) |
Allowance for loan losses | (53,637) | (55,533) |
Total loans, net | 4,617,131 | 4,683,160 |
Real estate loans | ||
Loans receivable | ||
Loans Receivable | 3,903,185 | 3,873,346 |
Residential 1-4 family | ||
Loans receivable | ||
Loans Receivable | 2,118,047 | 2,048,051 |
Commercial real estate | ||
Loans receivable | ||
Loans Receivable | 733,106 | 800,395 |
Home equity line of credit | ||
Loans receivable | ||
Loans Receivable | 913,052 | 863,163 |
Residential land | ||
Loans receivable | ||
Loans Receivable | 15,797 | 18,889 |
Commercial construction | ||
Loans receivable | ||
Loans Receivable | 108,273 | 126,768 |
Residential construction | ||
Loans receivable | ||
Loans Receivable | 14,910 | 16,080 |
Commercial | ||
Loans receivable | ||
Loans Receivable | 544,828 | 692,051 |
Consumer | ||
Loans receivable | ||
Loans Receivable | $ 223,564 | $ 178,222 |
Bank segment (HEI only) - Loa78
Bank segment (HEI only) - Loans Receivable, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 1,200 | $ 1,500 |
Loans pledged as collateral to secure advances from the FHLB of Des Moines | 2,400 | 2,400 | |
Loans to directors, executive directors, affiliates and any related interest of such individuals | 23.8 | 22.9 | |
Loan balances, related interests of individuals who are directors | $ 18.7 | $ 19 |
Bank segment (HEI only) - Allow
Bank segment (HEI only) - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | $ 55,533 | $ 50,038 | $ 45,618 |
Charge-offs | (16,813) | (14,245) | (6,426) |
Recoveries | 4,016 | 2,977 | 4,571 |
Provision | 10,901 | 16,763 | 6,275 |
Valuation allowance, balance at the end of the period | 53,637 | 55,533 | 50,038 |
Ending balance: individually evaluated for impairment | 2,730 | 4,083 | 6,320 |
Ending balance: collectively evaluated for impairment | 50,907 | 51,450 | 43,718 |
Financing Receivables: | |||
Total financing receivables | 4,671,577 | 4,743,619 | 4,622,068 |
Ending balance: individually evaluated for impairment | 33,393 | 51,759 | 53,685 |
Ending balance: collectively evaluated for impairment | 4,638,184 | 4,691,860 | 4,568,383 |
Residential 1-4 family | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 2,873 | 4,186 | 4,662 |
Charge-offs | (826) | (639) | (356) |
Recoveries | 157 | 421 | 226 |
Provision | 698 | (1,095) | (346) |
Valuation allowance, balance at the end of the period | 2,902 | 2,873 | 4,186 |
Ending balance: individually evaluated for impairment | 1,248 | 1,352 | 1,453 |
Ending balance: collectively evaluated for impairment | 1,654 | 1,521 | 2,733 |
Financing Receivables: | |||
Total financing receivables | 2,118,047 | 2,048,051 | 2,069,665 |
Ending balance: individually evaluated for impairment | 18,284 | 19,854 | 22,457 |
Ending balance: collectively evaluated for impairment | 2,099,763 | 2,028,197 | 2,047,208 |
Commercial real estate | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 16,004 | 11,342 | 8,954 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | (208) | 4,662 | 2,388 |
Valuation allowance, balance at the end of the period | 15,796 | 16,004 | 11,342 |
Ending balance: individually evaluated for impairment | 65 | 80 | 0 |
Ending balance: collectively evaluated for impairment | 15,731 | 15,924 | 11,342 |
Financing Receivables: | |||
Total financing receivables | 733,106 | 800,395 | 690,561 |
Ending balance: individually evaluated for impairment | 1,016 | 1,569 | 1,188 |
Ending balance: collectively evaluated for impairment | 732,090 | 798,826 | 689,373 |
Home equity line of credit | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 5,039 | 7,260 | 6,982 |
Charge-offs | (14) | (112) | (205) |
Recoveries | 308 | 59 | 80 |
Provision | 2,189 | (2,168) | 403 |
Valuation allowance, balance at the end of the period | 7,522 | 5,039 | 7,260 |
Ending balance: individually evaluated for impairment | 647 | 215 | 442 |
Ending balance: collectively evaluated for impairment | 6,875 | 4,824 | 6,818 |
Financing Receivables: | |||
Total financing receivables | 913,052 | 863,163 | 846,294 |
Ending balance: individually evaluated for impairment | 8,188 | 6,158 | 3,225 |
Ending balance: collectively evaluated for impairment | 904,864 | 857,005 | 843,069 |
Residential land | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 1,738 | 1,671 | 1,875 |
Charge-offs | (210) | (138) | 0 |
Recoveries | 482 | 461 | 507 |
Provision | (1,114) | (256) | (711) |
Valuation allowance, balance at the end of the period | 896 | 1,738 | 1,671 |
Ending balance: individually evaluated for impairment | 47 | 789 | 891 |
Ending balance: collectively evaluated for impairment | 849 | 949 | 780 |
Financing Receivables: | |||
Total financing receivables | 15,797 | 18,889 | 18,229 |
Ending balance: individually evaluated for impairment | 1,265 | 3,629 | 5,683 |
Ending balance: collectively evaluated for impairment | 14,532 | 15,260 | 12,546 |
Commercial construction | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 6,449 | 4,461 | 5,471 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | (1,778) | 1,988 | (1,010) |
Valuation allowance, balance at the end of the period | 4,671 | 6,449 | 4,461 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 4,671 | 6,449 | 4,461 |
Financing Receivables: | |||
Total financing receivables | 108,273 | 126,768 | 100,796 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 108,273 | 126,768 | 100,796 |
Residential construction | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 12 | 13 | 28 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 0 | (1) | (15) |
Valuation allowance, balance at the end of the period | 12 | 12 | 13 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 12 | 12 | 13 |
Financing Receivables: | |||
Total financing receivables | 14,910 | 16,080 | 14,089 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 14,910 | 16,080 | 14,089 |
Commercial | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 16,618 | 17,208 | 14,017 |
Charge-offs | (4,006) | (5,943) | (1,074) |
Recoveries | 1,852 | 1,093 | 2,773 |
Provision | (3,613) | 4,260 | 1,492 |
Valuation allowance, balance at the end of the period | 10,851 | 16,618 | 17,208 |
Ending balance: individually evaluated for impairment | 694 | 1,641 | 3,527 |
Ending balance: collectively evaluated for impairment | 10,157 | 14,977 | 13,681 |
Financing Receivables: | |||
Total financing receivables | 544,828 | 692,051 | 758,659 |
Ending balance: individually evaluated for impairment | 4,574 | 20,539 | 21,119 |
Ending balance: collectively evaluated for impairment | 540,254 | 671,512 | 737,540 |
Consumer | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 6,800 | 3,897 | 3,629 |
Charge-offs | (11,757) | (7,413) | (4,791) |
Recoveries | 1,217 | 943 | 985 |
Provision | 14,727 | 9,373 | 4,074 |
Valuation allowance, balance at the end of the period | 10,987 | 6,800 | 3,897 |
Ending balance: individually evaluated for impairment | 29 | 6 | 7 |
Ending balance: collectively evaluated for impairment | 10,958 | 6,794 | 3,890 |
Financing Receivables: | |||
Total financing receivables | 223,564 | 178,222 | 123,775 |
Ending balance: individually evaluated for impairment | 66 | 10 | 13 |
Ending balance: collectively evaluated for impairment | 223,498 | 178,212 | 123,762 |
Unallocated | |||
Allowance for loan losses: | |||
Valuation allowance, balance at the beginning of the period | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 0 | 0 | 0 |
Valuation allowance, balance at the end of the period | 0 | 0 | 0 |
Ending balance: individually evaluated for impairment | |||
Ending balance: collectively evaluated for impairment | 0 | 0 | 0 |
Financing Receivables: | |||
Total financing receivables | |||
Ending balance: individually evaluated for impairment | |||
Ending balance: collectively evaluated for impairment |
Bank segment (HEI only) - Credi
Bank segment (HEI only) - Credit Risk Profile by Internally Assigned Grade for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | $ 4,671,577 | $ 4,743,619 | $ 4,622,068 |
Loans, Excluding Consumer Loans | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 1,386,207 | 1,619,214 | |
Loans, Excluding Consumer Loans | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 1,207,576 | 1,418,751 | |
Loans, Excluding Consumer Loans | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 99,844 | 90,770 | |
Loans, Excluding Consumer Loans | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 78,319 | 109,693 | |
Loans, Excluding Consumer Loans | Doubtful | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 468 | 0 | |
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 | 733,106 | 800,395 | 690,561 |
Commercial real estate | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 630,877 | 701,657 | |
Commercial real estate | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 49,347 | 65,541 | |
Commercial real estate | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 52,882 | 33,197 | |
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 | 108,273 | 126,768 | 100,796 |
Commercial construction | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 83,757 | 102,955 | |
Commercial construction | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 22,500 | 0 | |
Commercial construction | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 2,016 | 23,813 | |
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 | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 544,828 | 692,051 | $ 758,659 |
Commercial | Pass | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 492,942 | 614,139 | |
Commercial | Special mention | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 27,997 | 25,229 | |
Commercial | Substandard | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 23,421 | 52,683 | |
Commercial | Doubtful | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | 468 | 0 | |
Commercial | Loss | |||
Credit risk profile by internally assigned grade for loans | |||
Total financing receivables | $ 0 | $ 0 |
Bank segment (HEI only) - Cre81
Bank segment (HEI only) - Credit Risk Profile Based on Payment Activity for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Credit risk profile based on payment activity for loans | |||
Total past due | $ 23,603 | $ 23,102 | |
Current | 4,647,974 | 4,720,517 | |
Total financing receivables | 4,671,577 | 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 | 8,318 | 11,310 | |
Current | 2,109,729 | 2,036,741 | |
Total financing receivables | 2,118,047 | 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 | 0 | 2,416 | |
Current | 733,106 | 797,979 | |
Total financing receivables | 733,106 | 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 | 2,590 | 2,986 | |
Current | 910,462 | 860,177 | |
Total financing receivables | 913,052 | 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 | 648 | 255 | |
Current | 15,149 | 18,634 | |
Total financing receivables | 15,797 | 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 | 108,273 | 126,768 | |
Total financing receivables | 108,273 | 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 | 14,910 | 16,080 | |
Total financing receivables | 14,910 | 16,080 | 14,089 |
Recorded Investment greater than 90 days and accruing | 0 | 0 | |
Commercial | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 4,580 | 2,226 | |
Current | 540,248 | 689,825 | |
Total financing receivables | 544,828 | 692,051 | 758,659 |
Recorded Investment greater than 90 days and accruing | 0 | 0 | |
Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 7,467 | 3,909 | |
Current | 216,097 | 174,313 | |
Total financing receivables | 223,564 | 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 | 7,237 | 11,504 | |
30-59 days past due | Residential 1-4 family | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 1,532 | 5,467 | |
30-59 days past due | Commercial real estate | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 0 | 2,416 | |
30-59 days past due | Home equity line of credit | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 425 | 1,263 | |
30-59 days past due | Residential land | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 23 | 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 | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 1,825 | 413 | |
30-59 days past due | Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 3,432 | 1,945 | |
60-89 days past due | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 6,013 | 4,230 | |
60-89 days past due | Residential 1-4 family | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 1,715 | 2,338 | |
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 | 114 | 381 | |
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 | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 2,025 | 510 | |
60-89 days past due | Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 2,159 | 1,001 | |
Greater than 90 days | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 10,353 | 7,368 | |
Greater than 90 days | Residential 1-4 family | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 5,071 | 3,505 | |
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 | 2,051 | 1,342 | |
Greater than 90 days | Residential land | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 625 | 255 | |
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 | |||
Credit risk profile based on payment activity for loans | |||
Total past due | 730 | 1,303 | |
Greater than 90 days | Consumer | |||
Credit risk profile based on payment activity for loans | |||
Total past due | $ 1,876 | $ 963 |
Bank segment (HEI only) - Cre82
Bank segment (HEI only) - Credit Risk Profile Based on Aging Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | $ 23,591 | $ 23,325 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 20,814 | 37,637 |
Residential 1-4 family | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 12,598 | 11,154 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 10,982 | 14,450 |
Commercial real estate | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 0 | 223 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 1,016 | 1,346 |
Home equity line of credit | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 4,466 | 3,080 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 6,584 | 4,934 |
Residential land | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 841 | 878 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 425 | 2,751 |
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 | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 3,069 | 6,708 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | 1,741 | 14,146 |
Consumer | ||
Credit risk profile based on nonaccrual loans | ||
Nonaccrual loans | 2,617 | 1,282 |
Accruing loans 90 days or more past due | 0 | 0 |
Troubled debt restructured loans not included above | $ 66 | $ 10 |
Bank segment (HEI only) - Carry
Bank segment (HEI only) - Carrying Amount of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recorded investment: | |||
With no related allowance recorded | $ 14,072 | $ 18,811 | |
With an allowance recorded | 19,321 | 32,948 | |
Recorded investment | 33,393 | 51,759 | |
Unpaid principal balance: | |||
With no related allowance recorded | 16,041 | 23,200 | |
With an allowance recorded | 19,574 | 33,205 | |
Unpaid principal balance | 35,615 | 56,405 | |
Related Allowance | 2,730 | 4,083 | |
Average recorded investment: | |||
With no related allowance recorded | 15,378 | 22,579 | $ 19,651 |
With an allowance recorded | 21,160 | 36,398 | 31,732 |
Average recorded investment | 36,538 | 58,977 | 51,383 |
Interest income recognized: | |||
With no related allowance recorded | 599 | 783 | 704 |
With an allowance recorded | 1,621 | 1,271 | 1,140 |
Interest income recognized | 2,220 | 2,054 | 1,844 |
Residential 1-4 family | |||
Recorded investment: | |||
With no related allowance recorded | 9,097 | 9,571 | |
With an allowance recorded | 9,187 | 10,283 | |
Recorded investment | 18,284 | 19,854 | |
Unpaid principal balance: | |||
With no related allowance recorded | 9,644 | 10,400 | |
With an allowance recorded | 9,390 | 10,486 | |
Unpaid principal balance | 19,034 | 20,886 | |
Related Allowance | 1,248 | 1,352 | |
Average recorded investment: | |||
With no related allowance recorded | 9,440 | 10,136 | 11,215 |
With an allowance recorded | 9,818 | 11,589 | 11,578 |
Average recorded investment | 19,258 | 21,725 | 22,793 |
Interest income recognized: | |||
With no related allowance recorded | 316 | 324 | 332 |
With an allowance recorded | 493 | 457 | 562 |
Interest income recognized | 809 | 781 | 894 |
Commercial real estate | |||
Recorded investment: | |||
With no related allowance recorded | 0 | 223 | |
With an allowance recorded | 1,016 | 1,346 | |
Recorded investment | 1,016 | 1,569 | |
Unpaid principal balance: | |||
With no related allowance recorded | 0 | 228 | |
With an allowance recorded | 1,016 | 1,346 | |
Unpaid principal balance | 1,016 | 1,574 | |
Related Allowance | 65 | 80 | |
Average recorded investment: | |||
With no related allowance recorded | 91 | 1,124 | 370 |
With an allowance recorded | 1,241 | 1,962 | 1,699 |
Average recorded investment | 1,332 | 3,086 | 2,069 |
Interest income recognized: | |||
With no related allowance recorded | 11 | 0 | 74 |
With an allowance recorded | 54 | 15 | 0 |
Interest income recognized | 65 | 15 | 74 |
Home equity line of credit | |||
Recorded investment: | |||
With no related allowance recorded | 1,496 | 1,500 | |
With an allowance recorded | 6,692 | 4,658 | |
Recorded investment | 8,188 | 6,158 | |
Unpaid principal balance: | |||
With no related allowance recorded | 1,789 | 1,900 | |
With an allowance recorded | 6,736 | 4,712 | |
Unpaid principal balance | 8,525 | 6,612 | |
Related Allowance | 647 | 215 | |
Average recorded investment: | |||
With no related allowance recorded | 1,976 | 1,105 | 484 |
With an allowance recorded | 5,045 | 3,765 | 1,597 |
Average recorded investment | 7,021 | 4,870 | 2,081 |
Interest income recognized: | |||
With no related allowance recorded | 101 | 23 | 4 |
With an allowance recorded | 251 | 137 | 49 |
Interest income recognized | 352 | 160 | 53 |
Residential land | |||
Recorded investment: | |||
With no related allowance recorded | 1,143 | 1,218 | |
With an allowance recorded | 122 | 2,411 | |
Recorded investment | 1,265 | 3,629 | |
Unpaid principal balance: | |||
With no related allowance recorded | 1,434 | 1,803 | |
With an allowance recorded | 122 | 2,411 | |
Unpaid principal balance | 1,556 | 4,214 | |
Related Allowance | 47 | 789 | |
Average recorded investment: | |||
With no related allowance recorded | 1,094 | 1,518 | 2,397 |
With an allowance recorded | 1,308 | 2,964 | 4,337 |
Average recorded investment | 2,402 | 4,482 | 6,734 |
Interest income recognized: | |||
With no related allowance recorded | 117 | 66 | 137 |
With an allowance recorded | 97 | 206 | 318 |
Interest income recognized | 214 | 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 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Average recorded investment | 0 | 0 | 0 |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Interest income recognized | 0 | 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 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Average recorded investment | 0 | 0 | 0 |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Interest income recognized | 0 | 0 | 0 |
Commercial | |||
Recorded investment: | |||
With no related allowance recorded | 2,328 | 6,299 | |
With an allowance recorded | 2,246 | 14,240 | |
Recorded investment | 4,574 | 20,539 | |
Unpaid principal balance: | |||
With no related allowance recorded | 3,166 | 8,869 | |
With an allowance recorded | 2,252 | 14,240 | |
Unpaid principal balance | 5,418 | 23,109 | |
Related Allowance | 694 | 1,641 | |
Average recorded investment: | |||
With no related allowance recorded | 2,776 | 8,694 | 5,185 |
With an allowance recorded | 3,691 | 16,106 | 12,507 |
Average recorded investment | 6,467 | 24,800 | 17,692 |
Interest income recognized: | |||
With no related allowance recorded | 54 | 370 | 157 |
With an allowance recorded | 723 | 456 | 211 |
Interest income recognized | 777 | 826 | 368 |
Consumer | |||
Recorded investment: | |||
With no related allowance recorded | 8 | 0 | |
With an allowance recorded | 58 | 10 | |
Recorded investment | 66 | 10 | |
Unpaid principal balance: | |||
With no related allowance recorded | 8 | 0 | |
With an allowance recorded | 58 | 10 | |
Unpaid principal balance | 66 | 10 | |
Related Allowance | 29 | 6 | |
Average recorded investment: | |||
With no related allowance recorded | 1 | 2 | 0 |
With an allowance recorded | 57 | 12 | 14 |
Average recorded investment | 58 | 14 | 14 |
Interest income recognized: | |||
With no related allowance recorded | 0 | 0 | 0 |
With an allowance recorded | 3 | 0 | 0 |
Interest income recognized | $ 3 | $ 0 | $ 0 |
Bank segment (HEI only) - TDR N
Bank segment (HEI only) - TDR Narrative (Details) - Residential land | 12 Months Ended |
Dec. 31, 2017 | |
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) | 12 Months Ended | ||
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | |
Loan modifications determined to be troubled debt restructurings | |||
Commitments to Borrowers whose Loan Terms are Impaired or Modified under Troubled Debt Restructuring | $ 0 | $ 2,600,000 | |
Troubled debt restructurings real estate loans | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 64 | 67 | 68 |
Pre-modification outstanding recorded investment | $ 4,798,000 | $ 26,937,000 | $ 10,020,000 |
Post-modification outstanding recorded investment | 4,792,000 | 27,052,000 | 10,094,000 |
Net increase in ALLL | $ 877,000 | $ 1,756,000 | $ 943,000 |
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 | 7 | 14 | 19 |
Pre-modification outstanding recorded investment | $ 742,000 | $ 3,131,000 | $ 3,594,000 |
Post-modification outstanding recorded investment | 750,000 | 3,245,000 | 3,668,000 |
Net increase in ALLL | $ 45,000 | $ 337,000 | $ 87,000 |
Troubled debt restructurings real estate loans | Commercial real estate | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 1,500,000 |
Post-modification outstanding recorded investment | 0 | 0 | 1,500,000 |
Net increase in ALLL | $ 0 | $ 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 | 46 | 36 | 39 |
Pre-modification outstanding recorded investment | $ 3,016,000 | $ 3,337,000 | $ 2,441,000 |
Post-modification outstanding recorded investment | 3,002,000 | 3,337,000 | 2,441,000 |
Net increase in ALLL | $ 557,000 | $ 554,000 | $ 370,000 |
Troubled debt restructurings real estate loans | Residential land | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 2 | 1 |
Pre-modification outstanding recorded investment | $ 92,000 | $ 203,000 | $ 218,000 |
Post-modification outstanding recorded investment | 92,000 | 204,000 | 218,000 |
Net increase in ALLL | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings real estate loans | Commercial construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | 0 | 0 | 0 |
Net increase in ALLL | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings real estate loans | Residential construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | 0 | 0 | 0 |
Net increase in ALLL | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings real estate loans | Commercial | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 9 | 15 | 8 |
Pre-modification outstanding recorded investment | $ 889,000 | $ 20,266,000 | $ 2,267,000 |
Post-modification outstanding recorded investment | 889,000 | 20,266,000 | 2,267,000 |
Net increase in ALLL | $ 248,000 | $ 865,000 | $ 486,000 |
Troubled debt restructurings real estate loans | Consumer | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 59,000 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | 59,000 | 0 | 0 |
Net increase in ALLL | $ 27,000 | $ 0 | $ 0 |
Troubled debt restructurings that subsequently defaulted | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 2 | 2 |
Recorded investment | $ 222,000 | $ 263,000 | $ 1,062,000 |
Consumer mortgage loans collateralized by residential real estate property in foreclosure process | $ 4,300,000 | $ 3,900,000 | |
Troubled debt restructurings that subsequently defaulted | Residential 1-4 family | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 1 | 1 | 0 |
Recorded investment | $ 222,000 | $ 239,000 | $ 0 |
Troubled debt restructurings that subsequently defaulted | Commercial real estate | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 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 | 0 | 1 |
Recorded investment | $ 0 | $ 0 | $ 6,000 |
Troubled debt restructurings that subsequently defaulted | Residential land | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings that subsequently defaulted | Commercial construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings that subsequently defaulted | Residential construction | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 0 | $ 0 |
Troubled debt restructurings that subsequently defaulted | Commercial | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 1 | 1 |
Recorded investment | $ 0 | $ 24,000 | $ 1,056,000 |
Troubled debt restructurings that subsequently defaulted | Consumer | |||
Loan modifications determined to be troubled debt restructurings | |||
Number of contracts | contract | 0 | 0 | 0 |
Recorded investment | $ 0 | $ 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans receivable | |||
Repurchased mortgage loans | $ 0 | $ 0 | $ 0 |
Mortgage servicing fees | 3,000,000 | 2,900,000 | 3,500,000 |
Residential loan | |||
Loans receivable | |||
Proceeds from sale of mortgage loans | 128,000,000 | 236,100,000 | 275,300,000 |
Gain on sale of mortgage loans | $ 2,200,000 | $ 6,600,000 | $ 6,300,000 |
Bank segment (HEI only) - Mor87
Bank segment (HEI only) - Mortgage Servicing Rights (Details) - American Savings Bank (ASB) - Allowance for mortgage-servicing assets – bank - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans receivable | ||||
Gross carrying amount | $ 17,511 | $ 17,271 | ||
Accumulated amortization1 | (8,872) | (7,898) | ||
Valuation allowance | 0 | 0 | $ 0 | $ (209) |
Net carrying amount | $ 8,639 | $ 9,373 | $ 8,884 |
Bank segment (HEI only) - Mor88
Bank segment (HEI only) - Mortgage Servicing Rights and Valuation Allowance Roll Forward (Details) - American Savings Bank (ASB) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Servicing Rights [Roll Forward] | ||||
Beginning balance | $ 9,373 | $ 9,373 | ||
Ending balance | 8,639 | $ 9,373 | ||
Allowance for mortgage-servicing assets – bank | ||||
Mortgage Servicing Rights [Roll Forward] | ||||
Beginning balance | 9,373 | 9,373 | 8,884 | $ 11,749 |
Amount capitalized | 1,239 | 2,740 | 3,123 | |
Amortization | (1,973) | (2,251) | (2,682) | |
Sale of mortgage servicing rights | 0 | 0 | (3,302) | |
Other-than-temporary impairment | 0 | 0 | (4) | |
Ending balance | 8,639 | 9,373 | 8,884 | |
Valuation Allowance [Roll Forward] | ||||
Valuation allowance, beginning balance | $ 0 | 0 | 0 | 209 |
Provision (recovery) | 0 | 0 | (205) | |
Other-than-temporary impairment | 0 | 0 | (4) | |
Valuation allowance, ending balance | 0 | 0 | 0 | |
Net carrying amount | 8,639 | $ 9,373 | $ 8,884 | |
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | ||||
2,018 | 1,300 | |||
2,019 | 1,100 | |||
2,020 | 1,000 | |||
2,021 | 900 | |||
2,022 | $ 800 | |||
Measurement Band A | ||||
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | ||||
Risks inherent in servicing assets and servicing liabilities band percent for risk categorization | 0.50% | |||
Measurement Band B | ||||
Estimated Aggregate Amortization Expenses of Mortgage Servicing Rights [Abstract] | ||||
Risks inherent in servicing assets and servicing liabilities band percent for risk categorization | 1.00% |
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, 2017 | Dec. 31, 2016 | |
Mortgage Servicing Rights | ||
Weighted average discount rate | 3.048% | |
Allowance for mortgage-servicing assets – bank | ||
Prepayment rate: | ||
25 basis points adverse rate change | $ (869) | $ (567) |
50 basis points adverse rate change | (1,828) | (1,154) |
Discount rate: | ||
25 basis points adverse rate change | (111) | (128) |
50 basis points adverse rate change | (220) | (254) |
Allowance for mortgage-servicing assets – bank | American Savings Bank (ASB) | ||
Mortgage Servicing Rights | ||
Unpaid principal balance | $ 1,195,454 | $ 1,188,380 |
Weighted average note rate | 3.94% | 3.96% |
Weighted average discount rate | 10.00% | 9.40% |
Weighted average prepayment speed | 9.00% | 8.50% |
Bank segment (HEI only) - Depos
Bank segment (HEI only) - Deposit Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted-average stated rate | |||
Savings | 0.07% | 0.07% | |
Checking, interest-bearing | 0.03% | 0.02% | |
Money market | 0.09% | 0.12% | |
Time certificates | 1.26% | 1.00% | |
Total weighted-average stated rate | 0.20% | 0.15% | |
Deposit liabilities | |||
Savings | $ 2,303,450 | $ 2,208,594 | |
Checking | |||
Interest-bearing | 944,833 | 890,633 | |
Noninterest-bearing | 896,292 | 817,867 | |
Commercial checking | 863,941 | 821,184 | |
Money market | 114,797 | 153,126 | |
Time certificates | 767,284 | 657,525 | |
Total Amount | 5,890,597 | 5,548,929 | |
Certificate accounts of $100,000 or more | 433,400 | 328,100 | |
Term certificates outstanding, scheduled maturities | |||
2,018 | 401,650 | ||
2,019 | 114,434 | ||
2,020 | 123,310 | ||
2,021 | 71,729 | ||
2,022 | 52,860 | ||
Thereafter | 3,301 | ||
Total | 767,284 | ||
Overdrawn deposit accounts classified as loans | 1,700 | 1,800 | |
Interest expense on deposit liabilities by type of deposit | |||
Time certificates | 7,687 | 5,390 | $ 3,747 |
Savings | 1,567 | 1,402 | 1,257 |
Money market | 168 | 202 | 205 |
Interest-bearing checking | 238 | 173 | 139 |
Interest expense on deposit liabilities | $ 9,660 | $ 7,167 | $ 5,348 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Securities sold under agreements to repurchase | |||
Gross amount of recognized liabilities | $ 141,000 | $ 93,000 | |
Gross amount offset in the Balance Sheet | 0 | 0 | |
Net amount of liabilities presented in the Balance Sheet | 141,000 | 93,000 | |
Financial instruments | 165,000 | 116,000 | |
Cash collateral pledged | $ 0 | 0 | |
Fair value of collateral, percent of fair value | 5.00% | ||
Repurchase liability | $ 140,859 | $ 92,618 | |
Weighted-average interest rate as of end of the period | 0.65% | 0.23% | |
Identical securities | |||
Securities sold under agreements to repurchase | |||
Repurchase liability | $ 141,000 | $ 93,000 | $ 229,000 |
Average amount outstanding during the year | 98,000 | 170,000 | 219,000 |
Maximum amount outstanding as of any month-end | $ 141,000 | $ 229,000 | $ 277,000 |
Weighted-average interest rate as of end of the period | 0.65% | 0.23% | 1.24% |
Weighted-average interest rate during the year | 0.26% | 1.43% | 1.29% |
Weighted-average remaining days to maturity as of end of the period | 1 day | 6 days | 117 days |
Government entities | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet | $ 14,000 | ||
Financial instruments | 15,000 | ||
Cash collateral pledged | 0 | ||
Commercial account holders | |||
Securities sold under agreements to repurchase | |||
Net amount of liabilities presented in the Balance Sheet | $ 141,000 | 79,000 | |
Financial instruments | 165,000 | 101,000 | |
Cash collateral pledged | $ 0 | $ 0 |
Bank segment (HEI only) - Sec92
Bank segment (HEI only) - Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 140,859 | $ 92,618 |
Weighted-average interest rate | 0.65% | 0.23% |
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 | $ 165,464 | $ 115,544 |
Overnight | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 140,859 | $ 79,083 |
Weighted-average interest rate | 0.65% | 0.15% |
Overnight | 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 | $ 165,464 | $ 100,305 |
1 to 29 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
1 to 29 days | 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 | $ 0 | $ 0 |
30 to 90 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 13,535 |
Weighted-average interest rate | 0.00% | 0.70% |
30 to 90 days | 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 | $ 0 | $ 15,239 |
Over 90 days | ||
Securities sold under agreements to repurchase | ||
Repurchase liability | $ 0 | $ 0 |
Weighted-average interest rate | 0.00% | 0.00% |
Over 90 days | 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 | $ 0 | $ 0 |
Bank segment (HEI only) - FHLB
Bank segment (HEI only) - FHLB Advances (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Weighted-average stated rate | |
2,018 | 1.95% |
2,019 | 0.00% |
2,020 | 0.00% |
2,021 | 0.00% |
2,022 | 0.00% |
Thereafter | 0.00% |
Total weighted-average stated rate | 1.95% |
Due in | |
2,018 | $ 50,000 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total amount due | $ 50,000 |
Bank segment (HEI only) - Capit
Bank segment (HEI only) - Capital And Ratio (Details) - American Savings Bank (ASB) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage, actual capital | $ 571,810 | $ 542,239 |
Tier 1 leverage, actual ratio | 8.58% | 8.59% |
Tier 1 leverage, required capital | $ 266,430 | $ 252,515 |
Tier 1 leverage, required ratio | 4.00% | 4.00% |
Tier 1 leverage, required to be well capitalized capital | $ 333,038 | $ 315,644 |
Tier 1 leverage, required to be well capitalized ratio | 5.00% | 5.00% |
Common equity tier 1, actual capital | $ 571,810 | $ 542,239 |
Common equity tier 1, actual ratio | 12.95% | 12.17% |
Common equity tier 1, required capital | $ 198,628 | $ 200,455 |
Common equity tier 1, required ratio | 4.50% | 4.50% |
Common equity tier 1, required to be well capitalized, Capital | $ 286,907 | $ 289,545 |
Common equity tier 1, required to be well capitalized, Ratio | 6.50% | 6.50% |
Tier 1 capital, actual capital | $ 571,810 | $ 542,239 |
Tier 1 capital, actual ratio | 12.95% | 12.17% |
Tier 1 capital, required capital | $ 264,838 | $ 267,273 |
Tier 1 capital, required ratio | 6.00% | 6.00% |
Tier 1 capital, Required to be well capitalized, Capital | $ 353,117 | $ 356,364 |
Tier 1 capital, Required to be well capitalized, Ratio | 8.00% | 8.00% |
Total capital, Actual capital | $ 626,987 | $ 597,940 |
Total capital, Actual ratio | 14.20% | 13.42% |
Total capital, Required capital | $ 353,117 | $ 356,364 |
Total capital, Required ratio | 8.00% | 8.00% |
Total capital, Required to be well capitalized, Capital | $ 441,396 | $ 445,455 |
Total capital, Required to be well capitalized, Ratio | 10.00% | 10.00% |
Bank segment (HEI only) - Addit
Bank segment (HEI only) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 1988 | |
Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Prepaid assessment rate for financial institutions, lowest risk category | 0.09% | |||
Prepaid assessment rate for financial institutions, highest risk category | 0.45% | |||
Minimum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
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) | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Borrowing capacity | $ 1,800 | $ 1,800 | ||
Cash dividends paid | 37.5 | 36 | ||
Hawaiian Electric Industries, Inc. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Cash dividends paid | 125 | 130 | $ 121 | |
Hawaiian Electric Industries, Inc. | Consolidated subsidiary | American Savings Bank (ASB) | Management and administrative services | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Revenue from related party | 2.1 | $ 2.3 | $ 2.1 | |
Hawaiian Electric Industries, Inc. | Maximum | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ (137) | $ (111) | $ 71 |
Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 137 | 453 | |
Liability derivative | 30 | 209 | |
Interest Rate Lock Commitments | |||
Derivative instrument | |||
Notional amount | 13,669 | 25,883 | |
Fair value | 131 | 421 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 133 | 445 | |
Liability derivative | 2 | 24 | |
Interest Rate Lock Commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | (290) | 37 | (6) |
Forward commitments | |||
Derivative instrument | |||
Notional amount | 14,465 | 30,813 | |
Fair value | (24) | (177) | |
Forward commitments | Not Designated as Hedging Instrument | |||
Derivative instrument | |||
Asset derivative | 4 | 8 | |
Liability derivative | 28 | 185 | |
Forward commitments | Not Designated as Hedging Instrument | Mortgage banking income | |||
Derivative instrument | |||
Net gains (losses) recognized in the Statement of Income | $ 153 | $ (148) | $ 77 |
Bank segment (HEI only) - Off B
Bank segment (HEI only) - Off Balance Sheet Arrangements and Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
American Savings Bank (ASB) | ||
Guarantees | ||
FDIC insurance assessment | $ 2,600 | $ 3,200 |
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 | 1,780,437 | 1,842,799 |
Home equity line of credit | ||
Guarantees | ||
Unused Commitments to Extend Credit | 1,214,103 | 1,146,339 |
Commercial and commercial real estate | ||
Guarantees | ||
Unused Commitments to Extend Credit | 466,510 | 577,410 |
Consumer | ||
Guarantees | ||
Unused Commitments to Extend Credit | 68,053 | 64,762 |
Residential 1-4 family | ||
Guarantees | ||
Unused Commitments to Extend Credit | 18,635 | 38,271 |
Commercial and financial standby letters of credit | ||
Guarantees | ||
Unused Commitments to Extend Credit | $ 13,136 | $ 16,017 |
Short-term borrowings (Details)
Short-term borrowings (Details) | Oct. 06, 2017USD ($) | Dec. 31, 2017USD ($)instrumentInstitution | Dec. 31, 2017USD ($)Institution | Nov. 30, 2017USD ($) | Nov. 20, 2017USD ($) | Dec. 31, 2016USD ($) |
Short-term borrowings | ||||||
Outstanding amount | $ 117,945,000 | $ 117,945,000 | $ 0 | |||
Line of credit facility | Hamakua Energy Partners, L.P. (HEP) | ||||||
Short-term borrowings | ||||||
Maximum capacity under syndicated credit facilities | $ 6,700,000 | $ 6,700,000 | ||||
Number of letters of credit entered into during the period | instrument | 3 | |||||
Eurodollar Term Loan | Unsecured Debt | ||||||
Short-term borrowings | ||||||
Debt instrument term | 364 days | |||||
Proceeds from issuance of debt | $ 125,000,000 | |||||
Debt instrument, face amount | $ 125,000,000 | |||||
Aggregate repurchased principal amount | $ 125,000,000 | |||||
Eurodollar Term Loan | Line of credit facility | Minimum | ||||||
Short-term borrowings | ||||||
Subsequent interest rate | 1.99% | |||||
Eurodollar Term Loan | Line of credit facility | Maximum | ||||||
Short-term borrowings | ||||||
Subsequent interest rate | 2.14% | |||||
Bank of American Term Loan | Line of credit facility | ||||||
Short-term borrowings | ||||||
Debt instrument, face amount | $ 125,000,000 | |||||
Aggregate repurchased principal amount | $ 75,000,000 | |||||
Bank of America Loan Agreement | ||||||
Short-term borrowings | ||||||
Debt instrument, face amount | $ 150,000,000 | |||||
HEI | ||||||
Credit agreements | ||||||
Number of financial institutions | Institution | 8 | 8 | ||||
HEI | Maximum | ||||||
Credit agreements | ||||||
Capitalization ratio required to be maintained as per the debt covenant | 50.00% | 50.00% | ||||
HEI | Line of credit facility | ||||||
Short-term borrowings | ||||||
Maximum capacity under syndicated credit facilities | $ 150,000,000 | $ 150,000,000 | ||||
Long-term line of credit | 0 | $ 0 | 0 | |||
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 | 1.375% | |||||
HEI | Commercial paper | ||||||
Short-term borrowings | ||||||
Outstanding amount | $ 63,000,000 | $ 63,000,000 | 0 | |||
Weighted-average interest rate | 2.50% | 2.50% | ||||
Hawaiian Electric Company, Inc (HECO) | ||||||
Credit agreements | ||||||
Ratio of consolidated subsidiary debt to total consolidated capitalization required to be maintained as per the debt covenant | 65.00% | 65.00% | ||||
Ratio of consolidated capitalization required to be maintained as per the debt covenant | 35.00% | 35.00% | ||||
Hawaiian Electric Company, Inc (HECO) | Line of credit facility | ||||||
Short-term borrowings | ||||||
Outstanding amount | 0 | |||||
Maximum capacity under syndicated credit facilities | $ 200,000,000 | $ 200,000,000 | ||||
Long-term line of credit | 0 | $ 0 | $ 0 | |||
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 | 1.375% | |||||
Hawaiian Electric Company, Inc (HECO) | Commercial paper | ||||||
Short-term borrowings | ||||||
Outstanding amount | $ 5,000,000 | $ 5,000,000 | ||||
Weighted-average interest rate | 2.30% | 2.30% |
Long-term debt (Details)
Long-term debt (Details) - USD ($) | Nov. 20, 2017 | Oct. 06, 2017 | Jun. 29, 2017 | Dec. 31, 2017 | Dec. 26, 2017 | Dec. 14, 2017 | Dec. 31, 2016 |
Long-term debt | |||||||
Long-term debt, net—other than bank | $ 1,683,797,000 | $ 1,619,019,000 | |||||
Less unamortized debt issuance costs | (2,007,000) | (241,000) | |||||
Aggregate principal payments | |||||||
2,018 | 54,000,000 | ||||||
2,019 | 4,000,000 | ||||||
2,020 | 100,000,000 | ||||||
2,021 | 54,000,000 | ||||||
2,022 | 206,000,000 | ||||||
Electric utility | |||||||
Aggregate principal payments | |||||||
2,018 | 50,000,000 | ||||||
2,019 | 0 | ||||||
2,020 | 96,000,000 | ||||||
2,021 | 0 | ||||||
2,022 | $ 52,000,000 | ||||||
Senior notes | Hamakua Energy Partners, L.P. (HEP) | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.02% | ||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 67,300,000 | ||||||
Term loan | Hamakua Energy Partners, L.P. (HEP) | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.02% | ||||||
Special purpose revenue bonds issued on behalf of electric utility subsidiaries | |||||||
Long-term debt | |||||||
Long-term debt, net—other than bank | $ 1,368,479,000 | 1,319,260,000 | |||||
Hamakua Energy, LLC Loan at 4.02% Due 2030 | Senior notes | |||||||
Long-term debt | |||||||
Gross long-term debt | $ 67,325,000 | 0 | |||||
Debt instrument, stated interest rate | 4.02% | ||||||
Senior Notes 2.99% Due 2022 | Senior notes | |||||||
Long-term debt | |||||||
Gross long-term debt | $ 150,000,000 | 0 | |||||
Senior Notes 2.99% Due 2022 | Term loan | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 2.99% | ||||||
HEI 5.67% senior notes, due 2021 | Senior notes | |||||||
Long-term debt | |||||||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |||||
Debt instrument, stated interest rate | 5.67% | ||||||
HEI 3.99% senior notes, due 2023 | Senior notes | |||||||
Long-term debt | |||||||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |||||
Debt instrument, stated interest rate | 3.99% | ||||||
HEI Term loans (LIBOR 0.75%), paid in 2017 | |||||||
Aggregate principal payments | |||||||
Aggregate repurchased principal amount | $ 75,000,000 | ||||||
HEI Term loans (LIBOR 0.75%), paid in 2017 | Term loan | |||||||
Long-term debt | |||||||
Gross long-term debt | $ 0 | $ 200,000,000 | |||||
HEI Term loans (LIBOR 0.75%), paid in 2017 | Term loan | LIBOR | |||||||
Long-term debt | |||||||
Line of credit facility basis point spread | 0.00% | ||||||
Eurodollar Term Loan | Unsecured Debt | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | $ 125,000,000 | ||||||
Debt instrument term | 364 days | ||||||
Aggregate repurchased principal amount | $ 125,000,000 | ||||||
Debt instrument, face amount | 125,000,000 | ||||||
Repayments of unsecured debt | $ 75,000,000 | ||||||
Refunding Series 2007B Special Purpose Revenue Bonds | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.60% | ||||||
Refunding Series 2007B Special Purpose Revenue Bonds | Unsecured Debt | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.60% | ||||||
Aggregate principal payments | |||||||
Aggregate repurchased principal amount | $ 125,000,000 | ||||||
Bank of America Loan Agreement | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 2.99% | ||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 150,000,000 | ||||||
Refunding Series 2017A Special Purpose Revenue Bonds | Unsecured Debt | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 3.10% | ||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 125,000,000 | ||||||
Refunding Series 2017A Special Purpose Revenue Bonds | Unsecured Debt | Hawaiian Electric Company, Inc (HECO) | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | 62,000,000 | ||||||
Refunding Series 2017A Special Purpose Revenue Bonds | Unsecured Debt | HELCO | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | 8,000,000 | ||||||
Refunding Series 2017A Special Purpose Revenue Bonds | Unsecured Debt | MECO | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | $ 55,000,000 | ||||||
Refunding Series 2017B Special Purpose Revenue Bonds | Unsecured Debt | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.00% | ||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 140,000,000 | ||||||
Refunding Series 2017B Special Purpose Revenue Bonds | Unsecured Debt | Hawaiian Electric Company, Inc (HECO) | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | 100,000,000 | ||||||
Refunding Series 2017B Special Purpose Revenue Bonds | Unsecured Debt | HELCO | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | 20,000,000 | ||||||
Refunding Series 2017B Special Purpose Revenue Bonds | Unsecured Debt | MECO | |||||||
Aggregate principal payments | |||||||
Proceeds from issuance of debt | $ 20,000,000 | ||||||
Series 2007A Special Purpose Revenue Bonds | Unsecured Debt | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.65% | ||||||
Aggregate principal payments | |||||||
Aggregate repurchased principal amount | $ 140,000,000 | ||||||
4.31%, Series 2017A, due 2047 | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.31% | ||||||
4.31%, Series 2017A, due 2047 | Electric utility | |||||||
Long-term debt | |||||||
Debt instrument, stated interest rate | 4.31% | ||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 40,000,000 | ||||||
4.31%, Series 2017A, due 2047 | MECO | |||||||
Aggregate principal payments | |||||||
Debt instrument, face amount | $ 10,000,000 |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2017 | Mar. 20, 2015 | Mar. 19, 2013 |
Equity [Abstract] | |||
Common stock reserved for future issuance (in shares) | 12,158,460 | ||
Public offering related to equity forward transactions (in shares) | 6,100,000 | ||
Sale of common stock related to equity forward transaction (in dollars per share) | $ 26.75 | ||
Delivery of net shares on settlement (in shares) | 4,700,000 | ||
Delivery of cash on settlement | $ 104.5 | ||
Underwriting discount (in dollars per share) | $ 4.7 |
Shareholders' equity - Accumula
Shareholders' equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | $ 2,066,753 | $ 1,927,640 | $ 1,790,573 |
Other comprehensive income (loss), net of taxes | (1,372) | (6,867) | 1,116 |
Reclass of AOCI for tax rate reduction impact | 0 | ||
Ending Balance | 2,097,386 | 2,066,753 | 1,927,640 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 1,799,787 | 1,728,325 | 1,682,144 |
Other comprehensive income (loss), net of taxes | (688) | (1,247) | 880 |
Reclass of AOCI for tax rate reduction impact | 0 | ||
Ending Balance | 1,845,283 | 1,799,787 | 1,728,325 |
AOCI | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (33,129) | (26,262) | (27,378) |
Other comprehensive income (loss), net of taxes | (1,372) | (6,867) | 1,116 |
Reclass of AOCI for tax rate reduction impact | (7,440) | ||
Ending Balance | (41,941) | (33,129) | (26,262) |
AOCI | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (322) | 925 | 45 |
Other comprehensive income (loss), net of taxes | (688) | (1,247) | 880 |
Reclass of AOCI for tax rate reduction impact | (209) | ||
Ending Balance | (1,219) | (322) | 925 |
Net unrealized gains (losses) on securities | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (7,931) | (1,872) | 462 |
Other comprehensive income (loss), net of taxes | (4,370) | (6,059) | (2,334) |
Reclass of AOCI for tax rate reduction impact | (2,650) | ||
Ending Balance | (14,951) | (7,931) | (1,872) |
Unrealized gains (losses) on derivatives | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (454) | (54) | (289) |
Other comprehensive income (loss), net of taxes | 454 | (400) | 235 |
Reclass of AOCI for tax rate reduction impact | 0 | ||
Ending Balance | 0 | (454) | (54) |
Unrealized gains (losses) on derivatives | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (454) | 0 | 0 |
Other comprehensive income (loss), net of taxes | 454 | (454) | 0 |
Reclass of AOCI for tax rate reduction impact | 0 | ||
Ending Balance | 0 | (454) | 0 |
Retirement benefit plans | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (24,744) | (24,336) | (27,551) |
Other comprehensive income (loss), net of taxes | 2,544 | (408) | 3,215 |
Reclass of AOCI for tax rate reduction impact | (4,790) | ||
Ending Balance | (26,990) | (24,744) | (24,336) |
Retirement benefit plans | Hawaiian Electric Company, Inc. and Subsidiaries | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | 132 | 925 | 45 |
Other comprehensive income (loss), net of taxes | (1,142) | (793) | 880 |
Reclass of AOCI for tax rate reduction impact | (209) | ||
Ending Balance | $ (1,219) | $ 132 | $ 925 |
Shareholders' equity - Reclassi
Shareholders' equity - Reclassification Out Of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | $ 658,597 | $ 673,185 | $ 632,281 | $ 591,562 | $ 617,395 | $ 646,055 | $ 566,244 | $ 550,960 | $ 2,555,625 | $ 2,380,654 | $ 2,602,982 |
Total reclassifications | (62,533) | 42,623 | (2,439) | ||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | $ 583,311 | $ 598,769 | $ 556,875 | $ 518,611 | $ 544,668 | $ 572,253 | $ 495,395 | $ 482,052 | 2,257,566 | 2,094,368 | 2,335,166 |
Total reclassifications | (63,793) | 41,665 | (4,758) | ||||||||
Bank | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | 297,640 | 285,924 | 267,733 | ||||||||
Electric utility | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | 2,257,566 | 2,094,368 | 2,335,166 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 15,737 | 14,518 | 22,465 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 14,477 | 13,254 | 20,381 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Impact Of Decision And Orders Of The Public Utility Commission Included In Regulatory Assets | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | (78,724) | 28,584 | (25,139) | ||||||||
Accumulated Defined Benefit Plans Adjustment, Impact Of Decision And Orders Of The Public Utility Commission Included In Regulatory Assets | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | (78,724) | 28,584 | (25,139) | ||||||||
Amount reclassified from AOCI | Net unrealized gains (losses) on securities | Bank | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Revenues | 0 | 360 | 0 | ||||||||
Amount reclassified from AOCI | Unrealized gains (losses) on derivatives | Window forward contracts | Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 454 | (173) | 0 | ||||||||
Amount reclassified from AOCI | Unrealized gains (losses) on derivatives | Interest rate contracts | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | 0 | 54 | 235 | ||||||||
Amount reclassified from AOCI | Unrealized gains (losses) on derivatives | Electric utility | Window forward contracts | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications | $ 454 | $ (173) | $ 0 |
Retirement benefits - Additiona
Retirement benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Vested percentage of interest of each affected participant after participating employer terminates participation | 100.00% | ||
Number of years for which regulatory asset/liability for each utility will be amortized, beginning with respective utility's next rate case | 5 years | ||
Executive life and nonqualified pension plan expenses | $ 1,100,000 | $ 900,000 | |
Regulatory asset charges pretax | $ (128,000,000) | 47,000,000 | |
Fair value of plan assets, valuation difference amortized in first year | 0.00% | ||
Fair value of plan assets, valuation difference amortized in two to five years | 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 | $ 7,000,000 | 5,000,000 | $ 6,000,000 |
Cash contributions by the employer to defined contribution plan | $ 6,000,000 | 5,000,000 | 5,000,000 |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rate of return on plan assets | 7.50% | ||
Discount rate | 3.94% | ||
Assumed discount rate, active manager premium | 0.20% | ||
Pension expense | $ 33,000,000 | 33,000,000 | 35,000,000 |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | |||
Defined benefit plans - ABOs | 1,800,000,000 | 1,700,000,000 | |
Aggregate accumulated benefit obligations | 1,700,000,000 | 1,600,000,000 | |
Plan assets | 1,500,000,000 | 1,300,000,000 | |
Defined benefit plans with benefit obligations in excess of plan assets | |||
Aggregate projected benefit obligations | 2,000,000,000 | 1,800,000,000 | |
Plan assets | 1,500,000,000 | $ 1,300,000,000 | |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2018 | $ 62,000,000 | ||
Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed health care trend rate for medical in next fiscal year | 7.50% | 7.75% | |
Assumed health care trend rate for grading down plan in 12 fiscal years thereafter | 5.00% | ||
Assumed health care trend rate for dental in next fiscal year | 5.00% | 5.00% | |
Assumed health care trend rate for vision in next fiscal year | 4.00% | 4.00% | |
Assumed health care trend rate for grading down in 2028 and thereafter | 5.00% | ||
Postretirement benefits other than pension expense | $ 1,000,000 | $ 1,000,000 | 900,000 |
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased total service and interest cost | 100,000 | ||
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased the accumulated postretirement benefit obligation (APBO) | 2,700,000 | ||
Effect of one-percentage-point decrease that would have reduced total service and interest cost | 200,000 | ||
Effect of one-percentage-point decrease that would have reduced APBO | 3,100,000 | ||
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2018 | 0 | ||
2,018 | 86,000,000 | ||
2,019 | 89,000,000 | ||
2,020 | 92,000,000 | ||
2,021 | 95,000,000 | ||
2,022 | 99,000,000 | ||
2023 through 2026 | $ 552,000,000 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Threshold percentage around fair value | 85.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Threshold percentage around fair value | 115.00% | ||
Hawaiian Electric Company, Inc. and Subsidiaries | |||
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 | 50.00% | ||
Defined contribution plan, expenses recognized | $ 2,000,000 | 1,500,000 | 1,500,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual net return on plan assets | 19.30% | ||
Pension expense | $ 30,000,000 | 30,000,000 | 29,000,000 |
Defined benefit pension plans with accumulated benefit obligations in excess of plan assets | |||
Defined benefit plans - ABOs | 1,700,000,000 | 1,500,000,000 | |
Aggregate accumulated benefit obligations | 1,700,000,000 | 1,500,000,000 | |
Plan assets | 1,500,000,000 | 1,200,000,000 | |
Defined benefit plans with benefit obligations in excess of plan assets | |||
Aggregate projected benefit obligations | 1,900,000,000 | 1,800,000,000 | |
Plan assets | 1,500,000,000 | 1,200,000,000 | |
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2018 | 61,000,000 | ||
Hawaiian Electric Company, Inc. and Subsidiaries | Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits other than pension expense | 800,000 | $ 700,000 | $ 700,000 |
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased total service and interest cost | 100,000 | ||
Effect of one-percentage-point increase in assumed health care cost trend rates that would have increased the accumulated postretirement benefit obligation (APBO) | 2,700,000 | ||
Effect of one-percentage-point decrease that would have reduced total service and interest cost | 200,000 | ||
Effect of one-percentage-point decrease that would have reduced APBO | 3,100,000 | ||
Expected cash funding for qualified defined benefit plans | |||
Estimate of contributions to postretirement benefit plans in 2018 | 0 | ||
2,018 | 79,000,000 | ||
2,019 | 81,000,000 | ||
2,020 | 84,000,000 | ||
2,021 | 87,000,000 | ||
2,022 | 90,000,000 | ||
2023 through 2026 | $ 504,000,000 | ||
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 | 50.00% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ (472,948) | $ (599,726) | |||
Pension benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | $ 1,935,494 | $ 1,798,030 | |||
Service cost | 64,906 | 60,555 | $ 66,260 | ||
Interest cost | 81,185 | 81,549 | 76,960 | ||
Actuarial losses (gains) | 87,399 | 67,741 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (74,628) | (72,381) | |||
Benefit obligation, balance at the end of the period | 2,094,356 | 1,935,494 | 1,798,030 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,369,701 | 1,271,474 | |||
Actual return on plan assets | 255,324 | 103,836 | |||
Employer contributions | 66,983 | 65,463 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (73,305) | (71,072) | |||
Fair value of plan assets, balance at the end of the period | 1,618,703 | 1,369,701 | 1,271,474 | ||
Accrued benefit asset (liability), balance | (475,653) | (565,793) | |||
Other assets | 15,443 | 13,477 | |||
Defined benefit pension and other postretirement benefit plans liability | (491,096) | (579,270) | |||
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) | 619,451 | 581,763 | |||
Recognized during year – prior service credit | 55 | 57 | |||
Recognized during year – net actuarial losses | (26,496) | (24,832) | |||
Occurring during year – net actuarial losses (gains) | (65,180) | 62,463 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 527,830 | 619,451 | 581,763 | ||
Cumulative impact of PUC D&Os | (489,894) | (576,933) | |||
AOCI debit/(credit), balance at end of the period | 37,936 | 42,518 | |||
Net actuarial loss | 527,907 | 619,582 | |||
Prior service gain | (77) | (131) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 619,451 | 581,763 | 581,763 | 527,830 | 619,451 |
Income taxes (benefits) | (9,986) | (16,746) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 27,950 | 25,772 | |||
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 | 1,779,626 | 1,649,690 | |||
Service cost | 63,059 | 58,796 | 64,262 | ||
Interest cost | 74,632 | 74,808 | 70,529 | ||
Actuarial losses (gains) | 80,186 | 63,121 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (68,691) | (66,789) | |||
Transfers | (164) | 0 | |||
Benefit obligation, balance at the end of the period | 1,928,648 | 1,779,626 | 1,649,690 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 1,233,184 | 1,141,833 | |||
Actual return on plan assets | 237,830 | 93,441 | |||
Employer contributions | 65,669 | 64,236 | |||
Participants contributions | 0 | 0 | |||
Benefits paid and expenses | (68,225) | (66,326) | |||
Other | (55) | 0 | |||
Fair value of plan assets, balance at the end of the period | 1,468,403 | 1,233,184 | 1,141,833 | ||
Accrued benefit asset (liability), balance | (460,245) | (546,442) | |||
Other liabilities (short-term) | (494) | (460) | |||
Defined benefit pension and other postretirement benefit plans liability | (459,751) | (545,982) | |||
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) | 579,725 | 541,118 | |||
Recognized during year – prior service credit | (8) | (13) | |||
Recognized during year – net actuarial losses | (24,392) | (22,693) | |||
Occurring during year – net actuarial losses (gains) | (61,861) | 61,313 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 493,464 | 579,725 | 541,118 | ||
Cumulative impact of PUC D&Os | (489,894) | (576,933) | |||
AOCI debit/(credit), balance at end of the period | 3,570 | 2,792 | |||
Net actuarial loss | 493,439 | 579,691 | |||
Prior service gain | 25 | 34 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 579,725 | 541,118 | 541,118 | 493,464 | 579,725 |
Income taxes (benefits) | (920) | (1,087) | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | 2,650 | 1,705 | |||
Other benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation, balance at the beginning of the period | 233,835 | 221,540 | |||
Service cost | 3,374 | 3,331 | 3,927 | ||
Interest cost | 9,453 | 9,670 | 9,011 | ||
Actuarial losses (gains) | (25,557) | 7,831 | |||
Participants contributions | 2,078 | 1,405 | |||
Benefits paid and expenses | (10,582) | (9,942) | |||
Benefit obligation, balance at the end of the period | 212,601 | 233,835 | 221,540 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 174,251 | 170,687 | |||
Actual return on plan assets | 28,248 | 11,352 | |||
Employer contributions | 0 | 42 | |||
Participants contributions | 2,078 | 1,405 | |||
Benefits paid and expenses | (10,582) | (9,235) | |||
Fair value of plan assets, balance at the end of the period | 193,995 | 174,251 | 170,687 | ||
Accrued benefit asset (liability), balance | (18,606) | (59,584) | |||
Other assets | 0 | 0 | |||
Defined benefit pension and other postretirement benefit plans liability | (18,606) | (59,584) | |||
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) | 42,290 | 32,550 | |||
Recognized during year – prior service credit | 1,793 | 1,793 | |||
Recognized during year – net actuarial losses | (1,130) | (804) | |||
Occurring during year – net actuarial losses (gains) | (41,479) | 8,751 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 1,474 | 42,290 | 32,550 | ||
Cumulative impact of PUC D&Os | (2,767) | (43,974) | |||
AOCI debit/(credit), balance at end of the period | (1,293) | (1,684) | |||
Net actuarial loss | 10,183 | 52,792 | |||
Prior service gain | (8,709) | (10,502) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 42,290 | 32,550 | 32,550 | 1,474 | 42,290 |
Income taxes (benefits) | 333 | 656 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | (960) | (1,028) | |||
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 | 225,723 | 213,990 | |||
Service cost | 3,353 | 3,284 | 3,870 | ||
Interest cost | 9,115 | 9,337 | 8,700 | ||
Actuarial losses (gains) | (25,172) | 7,545 | |||
Participants contributions | 2,047 | 1,389 | |||
Benefits paid and expenses | (10,419) | (9,822) | |||
Transfers | (3) | 0 | |||
Benefit obligation, balance at the end of the period | 204,644 | 225,723 | 213,990 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets, balance at the beginning of the period | 171,383 | 167,930 | |||
Actual return on plan assets | 27,806 | 11,168 | |||
Employer contributions | 0 | 11 | |||
Participants contributions | 2,047 | 1,389 | |||
Benefits paid and expenses | (10,419) | (9,115) | |||
Other | (3) | 0 | |||
Fair value of plan assets, balance at the end of the period | 190,814 | 171,383 | 167,930 | ||
Accrued benefit asset (liability), balance | (13,830) | (54,340) | |||
Other liabilities (short-term) | (633) | (596) | |||
Defined benefit pension and other postretirement benefit plans liability | (13,197) | (53,744) | |||
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) | 40,967 | 31,485 | |||
Recognized during year – prior service credit | 1,804 | 1,803 | |||
Recognized during year – net actuarial losses | (1,102) | (793) | |||
Occurring during year – net actuarial losses (gains) | (40,830) | 8,472 | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | 839 | 40,967 | 31,485 | ||
Cumulative impact of PUC D&Os | (2,767) | (43,974) | |||
AOCI debit/(credit), balance at end of the period | (1,928) | (3,007) | |||
Net actuarial loss | 9,531 | 51,463 | |||
Prior service gain | (8,692) | (10,496) | |||
AOCI debit/(credit), balance at end of the period (excluding impact of PUC D&Os) | $ 40,967 | $ 31,485 | $ 31,485 | 839 | 40,967 |
Income taxes (benefits) | 497 | 1,170 | |||
AOCI debit/(credit), net of taxes (benefits) balance at the end of the period | $ (1,431) | $ (1,837) |
Retirement benefits - Weighted
Retirement benefits - Weighted Average Asset Allocation of Defined Benefit Retirement Plans and Weighted Average Assumptions(Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation | 100.00% | 100.00% | |
Asset category, Target | |||
Target | 100.00% | ||
Benefit obligation | |||
Discount rate | 3.74% | 4.26% | 4.60% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 4.26% | 4.60% | 4.22% |
Expected return on plan assets | 7.50% | 7.75% | 7.75% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Pension benefits | American Savings Bank (ASB) | |||
Net periodic pension/benefit cost (years ended) | |||
Expected return on plan assets | 4.46% | 4.80% | |
Pension benefits | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation | 73.00% | 71.00% | |
Asset category, Target | |||
Target | 70.00% | ||
Target minimum range | 65.00% | ||
Target maximum range | 75.00% | ||
Pension benefits | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation | 27.00% | 29.00% | |
Asset category, Target | |||
Target | 30.00% | ||
Target minimum range | 25.00% | ||
Target maximum range | 35.00% | ||
Other benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation | 100.00% | 100.00% | |
Asset category, Target | |||
Target | 100.00% | ||
Benefit obligation | |||
Discount rate | 3.72% | 4.22% | 4.57% |
Net periodic pension/benefit cost (years ended) | |||
Discount rate | 4.22% | 4.57% | 4.17% |
Expected return on plan assets | 7.50% | 7.75% | 7.75% |
Other benefits | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation | 73.00% | 70.00% | |
Asset category, Target | |||
Target | 70.00% | ||
Target minimum range | 65.00% | ||
Target maximum range | 75.00% | ||
Other benefits | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual asset allocation | 27.00% | 30.00% | |
Asset category, Target | |||
Target | 30.00% | ||
Target minimum range | 25.00% | ||
Target maximum range | 35.00% |
Retirement benefits - Assets He
Retirement benefits - Assets Held In Retirement Benefit Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | $ 1,618,703 | $ 1,369,701 | $ 1,271,474 |
Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 193,995 | 174,251 | $ 170,687 |
Fair value measurements on a recurring basis | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 1,615,000 | 1,366,000 | |
NAV of plan assets | 315,000 | 269,000 | |
Cash, receivables and payables, net | 4,000 | 4,000 | |
Fair value of plan assets, net | 1,619,000 | 1,370,000 | |
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 | 1,079,000 | 877,000 | |
Fair value measurements on a recurring basis | Pension benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 568,000 | 692,000 | |
NAV of plan assets | 76,000 | 56,000 | |
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 | 435,000 | 129,000 | |
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 | $ 76,000 | $ 56,000 | |
Redemption frequency, daily | 32.00% | 31.00% | |
Redemption frequency, monthly | 68.00% | 31.00% | |
Redemption frequency, quarterly | 38.00% | ||
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) | 5 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 | $ 500,000 | $ 456,000 | |
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 | 297,000 | 276,000 | |
NAV of plan assets | $ 203,000 | $ 180,000 | |
Redemption notice period (in days) | 15 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 | $ 36,000 | $ 33,000 | |
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 | $ 194,000 | $ 174,000 | |
NAV of plan assets | 21,000 | 19,000 | |
Cash, receivables and payables, net | 0 | 0 | |
Fair value of plan assets, net | 194,000 | 174,000 | |
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 | 139,000 | 120,000 | |
Fair value measurements on a recurring basis | Other benefits | Equity securities | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 75,000 | 94,000 | |
NAV of plan assets | 12,000 | 9,000 | |
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 | 52,000 | 17,000 | |
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 | $ 12,000 | $ 9,000 | |
Redemption frequency, daily | 26.00% | ||
Redemption frequency, monthly | 74.00% | 57.00% | |
Redemption frequency, quarterly | 42.00% | ||
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) | 5 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 | $ 50,000 | $ 48,000 | |
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 | 46,000 | 44,000 | |
NAV of plan assets | $ 4,000 | $ 4,000 | |
Redemption notice period (in days) | 15 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 | $ 5,000 | $ 6,000 | |
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 | $ 1,084,000 | $ 905,000 | |
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 | 1,003,000 | 821,000 | |
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 | 568,000 | 692,000 | |
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 | 435,000 | 129,000 | |
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 | 81,000 | 84,000 | |
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 | 81,000 | 84,000 | |
Fair value measurements on a recurring basis | Level 1 | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 170,000 | 153,000 | |
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 | 127,000 | 111,000 | |
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 | 75,000 | 94,000 | |
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 | 52,000 | 17,000 | |
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 | 43,000 | 42,000 | |
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 | 43,000 | 42,000 | |
Fair value measurements on a recurring basis | Level 2 | Pension benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 216,000 | 192,000 | |
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 | |
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 | 216,000 | 192,000 | |
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 | 216,000 | 192,000 | |
Fair value measurements on a recurring basis | Level 2 | Other benefits | |||
Fair value measurements on a recurring basis | |||
Fair value of plan assets | 3,000 | 2,000 | |
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 | |
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 | 3,000 | 2,000 | |
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 | 3,000 | 2,000 | |
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 | |
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 | |
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 | |
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 |
Retirement benefits - Component
Retirement benefits - Components of NPBC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefits | |||
Defined benefit plans | |||
Service cost | $ 64,906 | $ 60,555 | $ 66,260 |
Interest cost | 81,185 | 81,549 | 76,960 |
Expected return on plan assets | (102,745) | (98,559) | (88,554) |
Amortization of net prior service (gain) cost | (55) | (57) | 4 |
Amortization of net actuarial losses | 26,496 | 24,832 | 36,800 |
Net periodic pension/benefit cost | 69,787 | 68,320 | 91,470 |
Impact of PUC D&Os | (18,004) | (18,117) | (40,011) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 51,783 | 50,203 | 51,459 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | 0 | ||
Net actuarial loss | 29,600 | ||
Pension benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 63,059 | 58,796 | 64,262 |
Interest cost | 74,632 | 74,808 | 70,529 |
Expected return on plan assets | (95,892) | (91,633) | (82,541) |
Amortization of net prior service (gain) cost | 8 | 13 | 40 |
Amortization of net actuarial losses | 24,392 | 22,693 | 33,371 |
Net periodic pension/benefit cost | 66,199 | 64,677 | 85,661 |
Impact of PUC D&Os | (18,004) | (18,117) | (40,011) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 48,195 | 46,560 | 45,650 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | 0 | ||
Net actuarial loss | 26,800 | ||
Other benefits | |||
Defined benefit plans | |||
Service cost | 3,374 | 3,331 | 3,927 |
Interest cost | 9,453 | 9,670 | 9,011 |
Expected return on plan assets | (12,326) | (12,273) | (11,664) |
Amortization of net prior service (gain) cost | (1,793) | (1,793) | (1,793) |
Amortization of net actuarial losses | 1,130 | 804 | 1,796 |
Net periodic pension/benefit cost | (162) | (261) | 1,277 |
Impact of PUC D&Os | 1,211 | 1,343 | (240) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 1,049 | 1,082 | 1,037 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (1,800) | ||
Net actuarial loss | 0 | ||
Other benefits | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Defined benefit plans | |||
Service cost | 3,353 | 3,284 | 3,870 |
Interest cost | 9,115 | 9,337 | 8,700 |
Expected return on plan assets | (12,147) | (12,096) | (11,495) |
Amortization of net prior service (gain) cost | (1,804) | (1,803) | (1,804) |
Amortization of net actuarial losses | 1,102 | 793 | 1,754 |
Net periodic pension/benefit cost | (381) | (485) | 1,025 |
Impact of PUC D&Os | 1,211 | 1,343 | (240) |
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 830 | $ 858 | $ 785 |
Amounts amortized from AOCI or regulatory assets into net periodic pension benefit cost during 2015 | |||
Prior service credit | (1,800) | ||
Net actuarial loss | $ 0 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) $ in Millions | Mar. 01, 2014shares | Jul. 31, 2016USD ($) | Dec. 31, 2017USD ($)incrementshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Share-based compensation | |||||
Share-based compensation expense (in dollars) | $ 5.4 | $ 4.8 | $ 6.5 | ||
Income tax benefit | $ 1.9 | 1.6 | 2.3 | ||
Long-term incentive plan (LTIP) | |||||
Share-based compensation | |||||
Performance period | 3 years | ||||
Exception to forfeiture, minimum requisite service period | 12 months | ||||
Unrecognized compensation cost | $ 0.9 | ||||
Payout low end of range | 0.00% | ||||
Payout high end of range | 200.00% | ||||
Intrinsic value of shares exercised | $ 1.9 | ||||
Tax benefit realized for the deduction of exercises | $ 0.7 | ||||
LTIP linked to TRS | |||||
Share-based compensation | |||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years | ||||
Restricted stock units | |||||
Share-based compensation | |||||
Fair value of vested stock | $ 3.5 | 2.8 | 3.7 | ||
Income tax benefit | 1.1 | 0.9 | 1.1 | ||
Unrecognized compensation cost | $ 4 | ||||
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 | $ 4.2 | 3.6 | 4.7 | ||
Income tax benefit | 1.6 | $ 1.4 | $ 1.8 | ||
Unrecognized compensation cost | $ 2.9 | ||||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years | ||||
Equity and Incentive Plan (EIP) | |||||
Share-based compensation | |||||
Additional shares available for issuance | shares | 1,500,000 | ||||
Shares remaining available for future issuance | shares | 3,300,000 | ||||
Shares that can be issued upon vesting of outstanding units and achievement of performance goals | shares | 400,000 | ||||
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 | ||||
Nonemployee Director Stock Plan | |||||
Share-based compensation | |||||
Shares remaining available for future issuance | shares | 85,428 | ||||
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 ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | $ 5,400,000 | $ 4,800,000 | $ 6,500,000 |
Income tax benefit | 1,900,000 | 1,600,000 | 2,300,000 |
Capitalized share-based compensation expense | 0 | 0 | 150,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense (in dollars) | 1,900,000 | 1,400,000 | 1,900,000 |
Income tax benefit | $ 700,000 | $ 500,000 | 700,000 |
Capitalized share-based compensation expense | $ 0 |
Share-based compensation - The
Share-based compensation - The 2011 Director Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | $ 1.9 | $ 1.6 | $ 2.3 |
Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 35,770 | 19,846 | 28,246 |
Fair value of vested stock | $ 1.2 | $ 0.6 | $ 0.8 |
Income tax benefit | $ 0.5 | $ 0.2 | $ 0.3 |
Share-based compensation - Rest
Share-based compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 220,683 | 210,634 | 261,235 |
Granted (in shares) | 97,873 | 114,431 | 85,772 |
Vested (in shares) | (92,147) | (85,003) | (102,173) |
Forfeited (in shares) | (29,362) | (19,379) | (34,200) |
Outstanding, end of period (in shares) | 197,047 | 220,683 | 210,634 |
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) | $ 29.57 | $ 28.82 | $ 25.77 |
Granted (in dollars per share) | 33.47 | 29.70 | 33.69 |
Vested (in dollars per share) | 28.88 | 27.84 | 25.67 |
Forfeited (in dollars per share) | 31.57 | 29.82 | 27.09 |
Outstanding, end of period (in dollars per share) | $ 31.53 | $ 29.57 | $ 28.82 |
Total weighted-average grant-date fair value | $ 3.3 | $ 3.4 | $ 2.9 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 83,106 | 162,500 | 257,956 |
Granted (in shares) | 37,204 | 0 | 0 |
Vested (in shares) | (83,106) | (78,553) | (75,915) |
Forfeited (in shares) | (4,300) | (841) | (19,541) |
Outstanding, end of period (in shares) | 32,904 | 83,106 | 162,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 22.95 | $ 27.66 | $ 28.45 |
Granted (in dollars per share) | 39.51 | 0 | 0 |
Vested (in dollars per share) | 22.95 | 32.69 | 30.71 |
Forfeited (in dollars per share) | 39.51 | 22.95 | 26.25 |
Outstanding, end of period (in dollars per share) | $ 39.51 | $ 22.95 | $ 27.66 |
Total weighted-average grant-date fair value | $ 1.5 | $ 0 | $ 0 |
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, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.46% |
Expected life (in years) | 3 years |
Expected volatility | 20.10% |
Range of expected volatility for Peer Group, minimum | 15.40% |
Range of expected volatility for Peer Group, maximum | 26.00% |
Grant date fair value (in dollars per share) | $ 39.51 |
Share-based compensation - L114
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Restricted Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 109,816 | 222,647 | 364,731 |
Granted (in shares) | 148,818 | 0 | 0 |
Vested (in shares) | (109,816) | (109,097) | (121,249) |
Increased above target (canceled) (in shares) | 0 | (1,989) | 3,412 |
Forfeited (in shares) | (17,202) | (1,745) | (24,247) |
Outstanding, end of period (in shares) | 131,616 | 109,816 | 222,647 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 25.18 | $ 26.02 | $ 26.01 |
Granted (in dollars per share) | 33.47 | 0 | 0 |
Vested (in dollars per share) | 25.18 | 26.89 | 26.05 |
Increased above target (canceled) (in dollars per share) | 0 | 25.26 | 26.89 |
Forfeited (in dollars per share) | 33.48 | 25.19 | 25.82 |
Outstanding, end of period (in dollars per share) | $ 33.47 | $ 25.18 | $ 26.02 |
Total weighted-average grant-date fair value | $ 5 | $ 0 | $ 0 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal | |||
Current | $ 61,534 | $ 59,873 | $ 44,343 |
Deferred | 33,967 | 43,666 | 36,664 |
Deferred tax credits, net | (20) | 268 | 318 |
Federal taxes | 95,481 | 103,807 | 81,325 |
State | |||
Current | 10,076 | 16,473 | 2,402 |
Deferred | 3,868 | 3,452 | 4,768 |
Deferred tax credits, net | (32) | (37) | 4,526 |
State taxes | 13,912 | 19,888 | 11,696 |
Federal and state taxes | 109,393 | 123,695 | 93,021 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Federal | |||
Current | 36,267 | 952 | 0 |
Deferred | 35,229 | 70,513 | 68,757 |
Deferred tax credits, net | (20) | 268 | 318 |
Federal taxes | 71,476 | 71,733 | 69,075 |
State | |||
Current | 8,947 | 9,232 | (1,048) |
Deferred | 2,808 | 3,873 | 6,869 |
Deferred tax credits, net | (32) | (37) | 4,526 |
State taxes | 11,723 | 13,068 | 10,347 |
Federal and state taxes | $ 83,199 | $ 84,801 | $ 79,422 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit) [Line Items] | |||||
Net tax expense due to impact of the Tax Act | $ 14,200,000 | $ 13,400,000 | |||
Effective income tax rate | 39.60% | 33.10% | 36.50% | ||
Unrecognized tax benefits | 4,000,000 | $ 4,000,000 | $ 3,800,000 | $ 3,600,000 | $ 0 |
Deferred tax assets, valuation allowance | 0 | 0 | 0 | ||
Net operating loss | 0 | 0 | 0 | ||
Unrecognized tax benefits that would impact effective tax rate | 500,000 | 500,000 | 0 | ||
Credit adjustments to interest expense on income taxes | 200,000 | 200,000 | $ 100,000 | ||
Amount of accrued interest related to uncertain tax positions | 500,000 | 500,000 | $ 300,000 | ||
Tax Act, decrease related to deferred tax assets | 271,500,000 | ||||
Tax Act, Increase in regulatory liabilities | 284,900,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||
Income Tax Expense (Benefit) [Line Items] | |||||
Net tax expense due to impact of the Tax Act | 9,200,000 | $ 9,200,000 | |||
Effective income tax rate | 40.60% | 37.00% | 36.60% | ||
Unrecognized tax benefits | 3,500,000 | $ 3,500,000 | $ 3,800,000 | $ 3,600,000 | $ 0 |
Net operating loss | 0 | 0 | 9,158,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 0 | 0 | 0 | ||
Credit adjustments to interest expense on income taxes | 80,000 | 30,000 | $ 100,000 | ||
Amount of accrued interest related to uncertain tax positions | 200,000 | 200,000 | $ 100,000 | ||
Tax Act, decrease related to deferred tax assets | 275,700,000 | ||||
Hawaiian Electric Company, Inc. and Subsidiaries | Federal Tax Authority | |||||
Income Tax Expense (Benefit) [Line Items] | |||||
Net operating loss | 9,000,000 | 9,000,000 | |||
Unrecognized tax benefits | 3,000,000 | 3,000,000 | |||
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 | $ 3,000,000 | $ 3,000,000 |
Income taxes - Income Tax Recon
Income taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 96,796 | $ 130,844 | $ 89,176 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal income tax benefit | 9,789 | 13,915 | 8,097 |
Net deferred tax asset adjustment related to the Tax Act | 13,420 | 0 | 0 |
Other, net | (10,612) | (21,064) | (4,252) |
Federal and state taxes | $ 109,393 | $ 123,695 | $ 93,021 |
Effective income tax rate | 39.60% | 33.10% | 36.50% |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Income Tax Expense (Benefit) [Line Items] | |||
Amount at the federal statutory income tax rate | $ 71,801 | $ 80,190 | $ 75,996 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal income tax benefit | 7,584 | 8,494 | 6,726 |
Net deferred tax asset adjustment related to the Tax Act | 9,168 | 0 | 0 |
Other, net | (5,354) | (3,883) | (3,300) |
Federal and state taxes | $ 83,199 | $ 84,801 | $ 79,422 |
Effective income tax rate | 40.60% | 37.00% | 36.60% |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities Due to Book/Tax Differences (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | $ 104,984,000 | $ 0 |
Net operating loss | 0 | 0 |
Allowance for bad debts | 16,192,000 | 24,500,000 |
Other | 24,397,000 | 47,201,000 |
Total deferred tax assets | 145,573,000 | 71,701,000 |
Deferred tax liabilities | ||
Property, plant and equipment related | 415,452,000 | 642,266,000 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 38,314,000 | 35,107,000 |
Deferred RAM and RBA revenues | 15,038,000 | 26,053,000 |
Retirement benefits | 32,952,000 | 48,400,000 |
Other | 32,247,000 | 48,681,000 |
Total deferred tax liabilities | 534,003,000 | 800,507,000 |
Net deferred income tax liability | 388,430,000 | 728,806,000 |
Hawaiian Electric Company, Inc. and Subsidiaries | ||
Deferred tax assets | ||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | 104,984,000 | 0 |
Net operating loss | 0 | 9,158,000 |
Allowance for bad debts | 1,812,000 | 2,364,000 |
Other | 11,253,000 | 18,720,000 |
Total deferred tax assets | 118,049,000 | 30,242,000 |
Deferred tax liabilities | ||
Property, plant and equipment related | 413,891,000 | 640,667,000 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 38,314,000 | 35,107,000 |
Deferred RAM and RBA revenues | 15,038,000 | 26,053,000 |
Retirement benefits | 38,020,000 | 51,445,000 |
Other | 6,827,000 | 10,629,000 |
Total deferred tax liabilities | 512,090,000 | 763,901,000 |
Net deferred income tax liability | $ 394,041,000 | $ 733,659,000 |
Income taxes - Changes in Unrec
Income taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | $ 3.8 | $ 3.6 | $ 0 |
Additions based on tax positions taken during the year | 0.9 | 0 | 0 |
Reductions based on tax positions taken during the year | (0.2) | (0.1) | 0 |
Additions for tax positions of prior years | 0 | 0.3 | 3.6 |
Reductions for tax positions of prior years | (0.5) | 0 | 0 |
Settlements | 0 | 0 | 0 |
Unrecognized tax benefits, at the end of the period | 4 | 3.8 | 3.6 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Changes in total unrecognized tax benefits | |||
Unrecognized tax benefits, at the beginning of the period | 3.8 | 3.6 | 0 |
Additions based on tax positions taken during the year | 0.4 | 0 | 0 |
Reductions based on tax positions taken during the year | (0.2) | (0.1) | 0 |
Additions for tax positions of prior years | 0 | 0.3 | 3.6 |
Reductions for tax positions of prior years | (0.5) | 0 | 0 |
Settlements | 0 | 0 | 0 |
Unrecognized tax benefits, at the end of the period | $ 3.5 | $ 3.8 | $ 3.6 |
Cash flows (Details)
Cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | $ 83 | $ 84 | $ 83 |
Income taxes paid (including refundable credits) | 55 | 55 | 75 |
Income taxes refunded (including refundable credits) | 1 | 45 | 55 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and accruals for capital expenditures (investing), Balance, end of period | 38 | 84 | 70 |
Common stock dividends reinvested in HEI common stock (financing) | 0 | 17 | 0 |
Loans transferred from held for investment to held for sale (investing) | 41 | 24 | 0 |
Real estate acquired in settlement of loans (investing) | 0 | 1 | 1 |
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 0 | 1 | 5 |
Common stock issued (gross) for director and executive/management compensation (financing) | 11 | 7 | 10 |
Obligations to fund low income housing investments, net (investing) | 13 | 0 | 0 |
Hawaiian Electric Company, Inc. and Subsidiaries | |||
Supplemental disclosures of cash flow information | |||
Interest paid to non-affiliates | 63 | 62 | 61 |
Income taxes paid (including refundable credits) | 26 | 1 | 13 |
Income taxes refunded (including refundable credits) | 0 | 20 | 12 |
Supplemental disclosures of noncash activities | |||
Unpaid invoices and accruals for capital expenditures (investing), Balance, end of period | 38 | 0 | 70 |
Electric utility property, plant and equipment | |||
Estimated fair value of noncash contributions in aid of construction (investing) | 18 | 28 | 3 |
Refinancing of long-term debt (financing) | $ 0 | $ 0 | $ 47 |
Regulatory restrictions on n121
Regulatory restrictions on net assets (Details) $ in Thousands | Dec. 31, 2017USD ($) |
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 | $ 755,000 |
American Savings Bank (ASB) | |
Regulatory restrictions on net assets | |
Restrictions on transfer of net assets to the parent in the form of cash dividends, loans and advances | $ 441,000 |
Significant group concentrat122
Significant group concentrations of credit risk (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | Dec. 31, 2016 |
Financial assets | ||
Available-for-sale investment securities | $ 1,401,198 | $ 1,105,182 |
Held-to-maturity investment securities | 44,412 | |
Financial liabilities | ||
Other bank borrowings | 190,859 | 192,618 |
Carrying or notional amount | ||
Financial assets | ||
Money market funds | 13,085 | |
Available-for-sale investment securities | 1,401,198 | 1,105,182 |
Held-to-maturity investment securities | 44,515 | |
Stock in Federal Home Loan Bank | 9,706 | 11,218 |
Loans receivable, net | 4,628,381 | 4,701,977 |
Mortgage servicing rights | 8,639 | 9,373 |
Derivative assets | 17,812 | 23,578 |
Financial liabilities | ||
Deposit liabilities | 5,890,597 | 5,548,929 |
Short-term borrowings | 117,945 | |
Other bank borrowings | 190,859 | 192,618 |
Long-term debt, net—other than bank | 1,683,797 | 1,619,019 |
Derivative liabilities | 13,562 | 53,852 |
Estimated fair value | ||
Financial assets | ||
Money market funds | 13,085 | |
Available-for-sale investment securities | 1,401,198 | 1,105,182 |
Held-to-maturity investment securities | 44,412 | |
Stock in Federal Home Loan Bank | 9,706 | 11,218 |
Loans receivable, net | 4,781,751 | 4,852,826 |
Mortgage servicing rights | 12,052 | 13,216 |
Derivative assets | 393 | 453 |
Financial liabilities | ||
Deposit liabilities | 5,884,071 | 5,546,644 |
Short-term borrowings | 117,945 | |
Other bank borrowings | 190,829 | 193,991 |
Long-term debt, net—other than bank | 1,813,295 | 1,704,717 |
Derivative liabilities | 30 | 952 |
Estimated fair value | Level 1 | ||
Financial assets | ||
Money market funds | 0 | |
Available-for-sale investment securities | 0 | 0 |
Held-to-maturity investment securities | 0 | |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans receivable, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Other bank borrowings | 0 | 0 |
Long-term debt, net—other than bank | 0 | 0 |
Derivative liabilities | 20 | 129 |
Estimated fair value | Level 2 | ||
Financial assets | ||
Money market funds | 13,085 | |
Available-for-sale investment securities | 1,385,771 | 1,089,755 |
Held-to-maturity investment securities | 44,412 | |
Stock in Federal Home Loan Bank | 9,706 | 11,218 |
Loans receivable, net | 11,254 | 13,333 |
Mortgage servicing rights | 0 | 0 |
Derivative assets | 393 | 453 |
Financial liabilities | ||
Deposit liabilities | 5,884,071 | 5,546,644 |
Short-term borrowings | 117,945 | |
Other bank borrowings | 190,829 | 193,991 |
Long-term debt, net—other than bank | 1,813,295 | 1,704,717 |
Derivative liabilities | 10 | 823 |
Estimated fair value | Level 3 | ||
Financial assets | ||
Money market funds | 0 | |
Available-for-sale investment securities | 15,427 | 15,427 |
Held-to-maturity investment securities | 0 | |
Stock in Federal Home Loan Bank | 0 | 0 |
Loans receivable, net | 4,770,497 | 4,839,493 |
Mortgage servicing rights | 12,052 | 13,216 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposit liabilities | 0 | 0 |
Short-term borrowings | 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 assets | ||
Derivative assets | 3,240 | |
Financial liabilities | ||
Short-term borrowings | 4,999 | |
Long-term debt, net—other than bank | 1,368,479 | 1,319,260 |
Derivative liabilities | 20,734 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | ||
Financial assets | ||
Derivative assets | 256 | |
Financial liabilities | ||
Short-term borrowings | 4,999 | |
Long-term debt, net—other than bank | 1,497,079 | 1,399,490 |
Derivative liabilities | 743 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 1 | ||
Financial assets | ||
Derivative assets | 0 | |
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net—other than bank | 0 | 0 |
Derivative liabilities | 0 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 2 | ||
Financial assets | ||
Derivative assets | 256 | |
Financial liabilities | ||
Short-term borrowings | 4,999 | |
Long-term debt, net—other than bank | 1,497,079 | 1,399,490 |
Derivative liabilities | 743 | |
Hawaiian Electric Company, Inc. and Subsidiaries | Estimated fair value | Level 3 | ||
Financial assets | ||
Derivative assets | 0 | |
Financial liabilities | ||
Short-term borrowings | 0 | |
Long-term debt, net—other than bank | $ 0 | 0 |
Derivative liabilities | $ 0 |
Fair value measurements - Fa124
Fair value measurements - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | $ 1,401,198 | $ 1,105,182 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Weighted average discount rate | 3.048% | |
Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | $ 1,201,473 | 897,474 |
U.S. Treasury and federal agency obligations | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 184,298 | 192,281 |
Mortgage revenue bond | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 15,427 | 15,427 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | 15,427 | 0 |
Principal payments received | 0 | 0 |
Purchases | 0 | 15,427 |
Unrealized gain (loss) included in other comprehensive income | 0 | 0 |
Balance, December 31 | 15,427 | 15,427 |
Fair value measurements on a recurring basis | Level 1 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 20 | 129 |
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, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Bank | 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 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 20 | 129 |
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, 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, 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, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Electric utility | Foreign Exchange Forward | ||
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 2 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 393 | 453 |
Derivative liabilities | 10 | 823 |
Fair value measurements on a recurring basis | Level 2 | Other | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Money market funds | 0 | 13,085 |
Fair value measurements on a recurring basis | Level 2 | Bank | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, at fair value | 1,385,771 | 1,089,755 |
Fair value measurements on a recurring basis | Level 2 | Bank | Interest Rate Lock Commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 133 | 445 |
Derivative liabilities | 2 | 24 |
Fair value measurements on a recurring basis | Level 2 | Bank | Forward commitments | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 4 | 8 |
Derivative liabilities | 8 | 56 |
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, at fair value | 1,201,473 | 897,474 |
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, at fair value | 184,298 | 192,281 |
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, at fair value | 0 | 0 |
Fair value measurements on a recurring basis | Level 2 | Electric utility | Foreign Exchange Forward | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 256 | 0 |
Derivative liabilities | 0 | 743 |
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 | 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, at fair value | 15,427 | 15,427 |
Fair value measurements on a recurring basis | Level 3 | Bank | 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 | Bank | 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 | Bank | Mortgage-related securities-FNMA, FHLMC and GNMA | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Available-for-sale, 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, 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, at fair value | 15,427 | 15,427 |
Fair value measurements on a recurring basis | Level 3 | Electric utility | Foreign Exchange Forward | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair value measurements - Fa125
Fair value measurements - Fair Value Measurements on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 4,781,751 | $ 4,852,826 |
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 | 11,254 | 13,333 |
Level 3 | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 4,770,497 | 4,839,493 |
Fair value measurements on a nonrecurring basis | Estimated fair value | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | 2,621 | 2,767 |
Real estate acquired in settlement of loans | 1,189 | |
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 | |
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 | |
Fair value measurements on a nonrecurring basis | Level 3 | ||
Fair value measurements on a recurring and nonrecurring basis | ||
Loans | $ 2,621 | 2,767 |
Real estate acquired in settlement of loans | $ 1,189 |
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, 2017 | Dec. 31, 2016 | |
Residential loan | Sales price | ||
Fair value measurements | ||
Fair value | $ 2,468 | |
Residential loan | Sales price | Minimum | ||
Fair value measurements | ||
Appraised value | 95.00% | |
Residential loan | Sales price | Maximum | ||
Fair value measurements | ||
Appraised value | 100.00% | |
Residential loan | Sales price | Weighted Average | ||
Fair value measurements | ||
Appraised value, weighted average rate | 97.00% | |
Residential loan | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 613 | $ 287 |
Selling cost | 7.00% | 7.00% |
Residential loan | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value | 71.00% | 42.00% |
Residential loan | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value | 92.00% | 65.00% |
Residential loan | Fair value of property or collateral | Weighted Average | ||
Fair value measurements | ||
Appraised value, weighted average rate | 84.00% | 61.00% |
Commercial | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 2,008 | |
Commercial | Fair value of property or collateral | Minimum | ||
Fair value measurements | ||
Appraised value | 71.00% | |
Commercial | Fair value of property or collateral | Maximum | ||
Fair value measurements | ||
Appraised value | 76.00% | |
Commercial | Fair value of property or collateral | Weighted Average | ||
Fair value measurements | ||
Appraised value, weighted average rate | 75.00% | |
Home equity line of credit | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 12 | |
Selling cost | 7.00% | |
Loans | ||
Fair value measurements | ||
Fair value | $ 2,621 | $ 2,767 |
Real estate acquired in settlement of loans | Fair value of property or collateral | ||
Fair value measurements | ||
Fair value | $ 1,189 | |
Selling cost | 7.00% | |
Appraised value | 100.00% | |
Appraised value, weighted average rate | 100.00% |
Other related-party transact127
Other related-party transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Hawaii Medical Service Association (HMSA) | Gross costs | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | $ 28 | $ 28 | $ 30 |
Hawaii Medical Service Association (HMSA) | Gross costs | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 23 | 22 | 23 |
Hawaii Medical Service Association (HMSA) | Net expense | |||
Related Party Transaction [Line Items] | |||
Expenses from related party transactions | 19 | 20 | 21 |
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 | 14 |
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 |
Termination of proposed merg128
Termination of proposed merger and other matters (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Merger termination, expenses recognized | $ 1 | $ 1 | ||||||||||
NextEra Energy, Inc Merger | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Merger contract termination fee | $ 90 | |||||||||||
Maximum expenses paid to party for cancellation of merger | $ 5 | |||||||||||
Gain (loss) recognized, merger termination | $ 60 | |||||||||||
Merger termination, merger-and-spin-off related expenses, net of taxes | $ 64 | $ (2) | $ (2) | $ (2) | $ (2) | $ (7) | $ (5) | $ (6) | $ (16) | $ (5) | ||
Merger termination, termination fee | 55 | |||||||||||
Merger termination, insurance reimbursements | $ 3 | |||||||||||
Recognition of previously disallowed merger and acquisition expenses | $ 8 |
Quarterly information (unaud129
Quarterly information (unaudited) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||
Revenues | $ 658,597,000 | $ 673,185,000 | $ 632,281,000 | $ 591,562,000 | $ 617,395,000 | $ 646,055,000 | $ 566,244,000 | $ 550,960,000 | $ 2,555,625,000 | $ 2,380,654,000 | $ 2,602,982,000 | |||||||
Operating income | 84,988,000 | 109,545,000 | 75,896,000 | 67,862,000 | 88,427,000 | 105,442,000 | 85,455,000 | 68,851,000 | 338,291,000 | 348,175,000 | 322,553,000 | |||||||
Net income | 32,843,000 | 60,544,000 | 39,134,000 | 34,666,000 | 45,107,000 | 127,613,000 | 44,601,000 | 32,825,000 | 167,187,000 | 250,146,000 | 161,767,000 | |||||||
Net income for common stock | $ 32,370,000 | $ 60,073,000 | $ 38,661,000 | $ 34,193,000 | $ 44,634,000 | $ 127,142,000 | $ 44,128,000 | $ 32,352,000 | $ 165,297,000 | $ 248,256,000 | $ 159,877,000 | |||||||
Basic earnings per common share (in dollars per share) | $ 0.30 | $ 0.55 | $ 0.36 | $ 0.31 | $ 0.41 | $ 1.17 | $ 0.41 | $ 0.30 | $ 1.52 | $ 2.30 | $ 1.50 | |||||||
Diluted earnings per common share (in dollars per share) | 0.30 | 0.55 | 0.36 | 0.31 | 0.41 | 1.17 | 0.41 | 0.30 | 1.52 | 2.29 | 1.50 | |||||||
Dividends declared 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 | |||||||
Net tax expense due to impact of the Tax Act | $ 14,200,000 | $ 13,400,000 | ||||||||||||||||
Deferred tax expense (benefit) tax cuts and job act of 2017, adjustment for bonuses paid | 700,000 | |||||||||||||||||
Net cash provided by operating activities | 420,441,000 | $ 495,658,000 | $ 356,858,000 | |||||||||||||||
Net cash used in investing activities | (815,299,000) | (736,465,000) | (705,724,000) | |||||||||||||||
Adjustment | ||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||
Net cash provided by operating activities | $ (42,000,000) | $ (7,000,000) | $ 33,000,000 | |||||||||||||||
Net cash used in investing activities | 42,000,000 | $ 7,000,000 | $ (33,000,000) | |||||||||||||||
NextEra Energy, Inc Merger | ||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||
Merger contract termination fee | $ 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 | 583,311,000 | $ 598,769,000 | $ 556,875,000 | 518,611,000 | $ 544,668,000 | 572,253,000 | 495,395,000 | 482,052,000 | 2,257,566,000 | 2,094,368,000 | 2,335,166,000 | |||||||
Operating income | 66,460,000 | 87,076,000 | 55,047,000 | 48,938,000 | 68,644,000 | 89,812,000 | 70,686,000 | 55,326,000 | 257,521,000 | 284,468,000 | 274,116,000 | |||||||
Net income | 25,854,000 | 47,985,000 | 26,143,000 | 21,964,000 | 34,618,000 | 47,472,000 | 36,356,000 | 25,866,000 | 121,946,000 | 144,312,000 | 137,709,000 | |||||||
Net income for common stock | 25,355,000 | $ 47,487,000 | 25,644,000 | 21,465,000 | $ 34,119,000 | $ 46,974,000 | $ 35,857,000 | $ 25,367,000 | 119,951,000 | 142,317,000 | 135,714,000 | |||||||
Net tax expense due to impact of the Tax Act | $ 9,200,000 | 9,200,000 | ||||||||||||||||
Settlement agreement expiration, tax expense (benefit) | 8,000,000 | 12,000,000 | 20,000,000 | |||||||||||||||
Settlement agreement expiration, revenue adjustment, net of taxes | $ 4,000,000 | $ 7,000,000 | ||||||||||||||||
Net cash provided by operating activities | 335,186,000 | 369,917,000 | 333,406,000 | |||||||||||||||
Net cash used in investing activities | $ (372,287,000) | $ (288,199,000) | $ (308,782,000) |
SCHEDULE I - CONDENSED FINAN130
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 261,881 | $ 278,452 | $ 300,478 | $ 175,542 |
Accounts receivable | 263,209 | 237,950 | ||
Property, plant and equipment, net | 5,025,916 | 4,603,465 | ||
Other assets | 513,535 | 447,621 | ||
Total assets | 13,099,828 | 12,425,506 | 11,782,018 | |
Liabilities | ||||
Accounts payable | 193,714 | 143,279 | ||
Long-term debt, net | 1,683,797 | 1,619,019 | ||
Other | 521,018 | 473,512 | ||
Total liabilities | 10,968,149 | 10,324,460 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,662,491 | 1,660,910 | ||
Retained earnings | 476,836 | 438,972 | ||
Accumulated other comprehensive loss | (41,941) | (33,129) | ||
Total shareholders’ equity | 2,097,386 | 2,066,753 | 1,927,640 | 1,790,573 |
Total capitalization and liabilities | $ 13,099,828 | $ 12,425,506 | ||
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 | 108,787,807 | 108,583,413 | ||
Common stock, outstanding shares | 108,787,807 | 108,583,413 | ||
Hawaiian Electric Industries, Inc. | ||||
Assets | ||||
Cash and cash equivalents | $ 11,702 | $ 14,924 | $ 55,116 | $ 276 |
Accounts receivable | 2,347 | 3,788 | ||
Property, plant and equipment, net | 3,910 | 4,143 | ||
Deferred income tax assets | 8,710 | 17,280 | ||
Other assets | 15,480 | 9,858 | ||
Investments in subsidiaries, at equity | 2,466,342 | 2,383,405 | ||
Total assets | 2,508,491 | 2,433,398 | ||
Liabilities | ||||
Accounts payable | 561 | 379 | ||
Interest payable | 2,319 | 1,735 | ||
Notes payable to subsidiaries | 1,918 | 5,373 | ||
Commercial paper | 62,993 | 0 | ||
Short-term borrowings from non-affiliate | 49,953 | 0 | ||
Long-term debt, net | 249,588 | 299,759 | ||
Retirement benefits liability | 31,518 | 33,939 | ||
Other | 12,255 | 25,460 | ||
Total liabilities | 411,105 | 366,645 | ||
Shareholders' equity | ||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | 0 | 0 | ||
Common stock equity | 1,662,491 | 1,660,910 | ||
Retained earnings | 476,836 | 438,972 | ||
Accumulated other comprehensive loss | (41,941) | (33,129) | ||
Total shareholders’ equity | 2,097,386 | 2,066,753 | ||
Total capitalization and liabilities | $ 2,508,491 | $ 2,433,398 | ||
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 | 108,787,807 | 108,583,413 | ||
Common stock, outstanding shares | 108,787,807 | 108,583,413 |
SCHEDULE I - CONDENSED FINAN131
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF INCOME AND CHANGES IN SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses: | |||||||||||
Depreciation of property, plant and equipment | $ 200,658 | $ 194,273 | $ 183,966 | ||||||||
Total expenses | 2,217,334 | 2,032,479 | 2,280,429 | ||||||||
Merger termination fee | 0 | 90,000 | 0 | ||||||||
Interest expense, net | 91,128 | 88,558 | 88,476 | ||||||||
Income before income taxes | 276,580 | 373,841 | 254,788 | ||||||||
Income (taxes) benefits | (109,393) | (123,695) | (93,021) | ||||||||
Net income (loss) | $ 32,843 | $ 60,544 | $ 39,134 | $ 34,666 | $ 45,107 | $ 127,613 | $ 44,601 | $ 32,825 | 167,187 | 250,146 | 161,767 |
Hawaiian Electric Industries, Inc. | |||||||||||
Revenues | |||||||||||
Revenues | 798 | 647 | 327 | ||||||||
Equity in net income of subsidiaries | 187,097 | 199,485 | 190,033 | ||||||||
Expenses: | |||||||||||
Operating, administrative and general | 17,697 | 18,701 | 34,350 | ||||||||
Depreciation of property, plant and equipment | 548 | 566 | 576 | ||||||||
Taxes, other than income taxes | 496 | 4,726 | 440 | ||||||||
Total expenses | 18,741 | 23,993 | 35,366 | ||||||||
Income before merger termination fee, interest expense and income (taxes) benefits | 169,154 | 176,139 | 154,994 | ||||||||
Merger termination fee | 0 | 90,000 | 0 | ||||||||
Income before interest expense and income (taxes) benefits | 169,154 | 266,139 | 154,994 | ||||||||
Interest expense, net | 9,389 | 9,037 | 10,788 | ||||||||
Income before income taxes | 159,765 | 257,102 | 144,206 | ||||||||
Income (taxes) benefits | 5,532 | (8,846) | 15,671 | ||||||||
Net income (loss) | $ 165,297 | $ 248,256 | $ 159,877 |
SCHEDULE I - CONDENSED FINAN132
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 420,441 | $ 495,658 | $ 356,858 |
Cash flows from investing activities | |||
Capital expenditures | (495,187) | (330,043) | (363,804) |
Other | 6,468 | 856 | 7,940 |
Net cash used in investing activities | (815,299) | (736,465) | (705,724) |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 67,992 | (103,063) | (15,909) |
Proceeds from issuance of short-term debt | 125,000 | 0 | 0 |
Repayment of short-term debt | (75,000) | 0 | 0 |
Proceeds from issuance of long-term debt | 532,325 | 115,000 | 80,000 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (465,000) | (75,000) | 0 |
Net proceeds from issuance of common stock | 0 | 13,220 | 104,435 |
Common stock dividends | (134,873) | (117,274) | (131,765) |
Other | (6,349) | 2,197 | 2,427 |
Net cash used in financing activities | 378,287 | 218,781 | 473,802 |
Net increase (decrease) in cash and equivalents | (16,571) | (22,026) | 124,936 |
Cash and cash equivalents, January 1 | 278,452 | 300,478 | 175,542 |
Cash and cash equivalents, December 31 | 261,881 | 278,452 | 300,478 |
Hawaiian Electric Industries, Inc. | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 99,600 | 191,710 | 98,119 |
Cash flows from investing activities | |||
Increase in note receivable from subsidiary | (70,000) | 0 | 0 |
Decrease in note receivable from subsidiary | (66,391) | 0 | 0 |
Capital expenditures | (317) | (212) | (173) |
Investments in subsidiaries | (22,353) | (24,000) | 0 |
Other | (177) | 1 | 0 |
Net cash used in investing activities | (26,456) | (24,211) | (173) |
Cash flows from financing activities | |||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | 98 | (618) | 87 |
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 62,993 | (103,063) | (15,909) |
Proceeds from issuance of short-term debt | 125,000 | 0 | 0 |
Repayment of short-term debt | (75,000) | 0 | 0 |
Proceeds from issuance of long-term debt | 150,000 | 75,000 | 0 |
Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds | (200,000) | (75,000) | 0 |
Withheld shares for employee taxes on vested share-based compensation | (3,828) | (2,416) | (3,260) |
Net proceeds from issuance of common stock | 0 | 13,220 | 104,435 |
Common stock dividends | (134,873) | (117,274) | (131,765) |
Other | (756) | 2,460 | 3,306 |
Net cash used in financing activities | (76,366) | (207,691) | (43,106) |
Net increase (decrease) in cash and equivalents | (3,222) | (40,192) | 54,840 |
Cash and cash equivalents, January 1 | 14,924 | 55,116 | 276 |
Cash and cash equivalents, December 31 | 11,702 | 14,924 | 55,116 |
Cash dividends received from subsidiaries | $ 125,000 | $ 130,000 | $ 121,000 |
SCHEDULE I - CONDENSED FINAN133
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Less unamortized debt issuance costs | $ (2,007,000) | $ (241,000) | |
Long-term debt, net | 1,683,797,000 | 1,619,019,000 | |
2,018 | 54,000,000 | ||
2,019 | 4,000,000 | ||
2,020 | 100,000,000 | ||
2,021 | 54,000,000 | ||
2,022 | 206,000,000 | ||
Issuance of common stock, net of expenses | 26,844,000 | ||
Common stock | |||
Condensed Financial Statements, Captions [Line Items] | |||
Issuance of common stock, net of expenses | 26,844,000 | ||
Hamakua Energy Partners, L.P. (HEP) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Notes receivable converted into equity | 3,600,000 | ||
Self Insured United States Longshore and Horbor Bond | |||
Condensed Financial Statements, Captions [Line Items] | |||
Maximum undiscounted exposure | 200,000 | ||
Self Insured Automobile Bond | |||
Condensed Financial Statements, Captions [Line Items] | |||
Maximum undiscounted exposure | 600,000 | ||
Hawaiian Electric Industries, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Less unamortized debt issuance costs | (412,000) | (241,000) | |
Long-term debt, net | 249,588,000 | 299,759,000 | |
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 50,000,000 | ||
2,022 | 150,000,000 | ||
Cash dividends paid | 125,000,000 | 130,000,000 | $ 121,000,000 |
Hawaiian Electric Industries, Inc. | Common stock | |||
Condensed Financial Statements, Captions [Line Items] | |||
Issuance of common stock, net of expenses | 0 | 17,000,000 | 0 |
Hawaiian Electric Industries, Inc. | ASB Hawaii, Inc. | Consolidated subsidiary | |||
Condensed Financial Statements, Captions [Line Items] | |||
Accounts receivable reduction | 2,800,000 | 2,300,000 | 2,300,000 |
HEI notes payable increase to ASHI | 2,800,000 | 2,300,000 | $ 300,000 |
Hawaiian Electric Industries, Inc. | HEI loan 2.99%, due 2022 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 150,000,000 | 0 | |
Debt instrument, stated interest rate | 2.99% | ||
Hawaiian Electric Industries, Inc. | HEI 5.67% senior notes, due 2021 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 5.67% | ||
Hawaiian Electric Industries, Inc. | HEI 3.99% senior notes, due 2023 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 50,000,000 | 50,000,000 | |
Debt instrument, stated interest rate | 3.99% | ||
Hawaiian Electric Industries, Inc. | HEI Term loans (LIBOR 0.75%), paid in 2017 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Gross long-term debt | $ 0 | $ 200,000,000 | |
Hawaiian Electric Industries, Inc. | HEI Term loans (LIBOR 0.75%), paid in 2017 | LIBOR | |||
Condensed Financial Statements, Captions [Line Items] | |||
Line of credit facility basis point spread | 0.75% |
SCHEDULE II - VALUATION AND 134
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and qualifying accounts | |||
Reclassifications of allowance from one customer account into long term assets | $ 841 | $ 1,790 | $ 2,303 |
Allowance for uncollectible accounts – electric utility | Hawaiian Electric Company, Inc. and Subsidiaries | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 1,121 | 1,699 | 1,959 |
Charged to costs and expenses | 1,810 | 2,383 | 3,653 |
Charged to other accounts | 785 | 877 | 977 |
Deductions | 2,538 | 3,838 | 4,890 |
Balance at end of period | 1,178 | 1,121 | 1,699 |
Allowance for uncollectible interest – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 1,834 | 1,679 | 1,514 |
Charged to costs and expenses | 0 | 0 | 0 |
Charged to other accounts | 0 | 155 | 165 |
Deductions | 1,467 | 0 | 0 |
Balance at end of period | 367 | 1,834 | 1,679 |
Allowance for losses for loans receivable – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 55,533 | 50,038 | 45,618 |
Charged to costs and expenses | 10,901 | 16,763 | 6,275 |
Charged to other accounts | 4,016 | 2,977 | 4,571 |
Deductions | 16,813 | 14,245 | 6,426 |
Balance at end of period | 53,637 | 55,533 | 50,038 |
Allowance for mortgage-servicing assets – bank | Bank | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 0 | 209 | |
Charged to costs and expenses | 0 | ||
Charged to other accounts | (205) | ||
Deductions | 4 | ||
Balance at end of period | 0 | ||
Deferred tax valuation allowance – HEI | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 38 | 54 | 45 |
Charged to costs and expenses | 0 | 0 | 9 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 38 | 16 | 0 |
Balance at end of period | $ 0 | $ 38 | $ 54 |