Hawaiian Electric Company, Inc. PFD SER E 5% (HAWEL) 8-K Results of Operations and Financial Condition

HECO Exhibit 99.2

Consolidating financial information (unaudited)

HECO is not required to provide separate financial statements or other disclosures concerning Hawaii Electric Light Company, Inc. (HELCO) and Maui Electric Company, Limited (MECO) to holders of the 2004 Debentures issued by HELCO and MECO to HECO Capital Trust III (Trust III) since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by HECO. Consolidating information is provided below for these and other HECO subsidiaries for the periods ended and as of the dates indicated.

HECO also unconditionally guarantees HELCO’s and MECO’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of HELCO and MECO and (b) relating to the trust preferred securities of Trust III. HECO is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on HELCO’s and MECO’s preferred stock if the respective subsidiary is unable to make such payments.

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Consolidating balance sheet

	December 31, 2011
(in thousands)	HECO			HELCO		MECO		RHI	UBC	Reclassifications and Eliminations		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,316		5,182		3,016		—	—	—		$	51,514
Plant and equipment	3,091,908			1,048,599		911,520		—	—	—		5,052,027
Less accumulated depreciation	(1,141,839		)	(414,769	)	(410,286	)	—	—	—		(1,966,894		)
Construction in progress	117,625			8,144		13,069		—	—	—		138,838
Net utility plant	2,111,010			647,156		517,319		—	—	—		3,275,485
Investment in wholly owned subsidiaries, at equity	517,216			—		—		—	—	(517,216	)[2]	—
Current assets
Cash and equivalents	44,819			3,383		496		82	26	—		48,806
Advances to affiliates	—			46,150		18,500		—	—	(64,650	)[1]	—
Customer accounts receivable, net	130,190			28,602		24,536		—	—	—		183,328
Accrued unbilled revenues, net	103,328			18,499		15,999		—	—	—		137,826
Other accounts receivable, net	8,987			1,186		3,008		—	—	(4,558	)[1]	8,623
Fuel oil stock, at average cost	128,037			19,217		24,294		—	—	—		171,548
Materials & supplies, at average cost	25,096			4,700		13,392		—	—	—		43,188
Prepayments and other	21,135			6,575		7,033		—	—	(141	)[3]	34,602
Regulatory assets	5,916			1,115		1,130		—	—	—		8,161
Total current assets	467,508			129,427		108,388		82	26	(69,349	)	636,082
Other long-term assets
Regulatory assets	490,973			86,394		83,861		—	—	—		661,228
Unamortized debt expense	8,446			2,464		1,876		—	—	—		12,786
Other	58,672			11,843		15,846		—	—	—		86,361
Total other long-term assets	558,091			100,701		101,583		—	—	—		760,375
	$	3,653,825		877,284		727,290		82	26	(586,565	)	$	4,671,942
Capitalization and liabilities
Capitalization
Common stock equity	$	1,406,084		281,055		236,054		81	26	(517,216	)[2]	$	1,406,084
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—	—		34,293
Long-term debt, net	629,757			204,110		166,703		—	—	—		1,000,570
Total capitalization	2,058,134			492,165		407,757		81	26	(517,216	)	2,440,947
Current liabilities
Current portion of long-term debt	42,580			7,200		7,720		—	—	—		57,500
Short-term borrowings-affiliate	64,650			—		—		—	—	(64,650	)[1]	—
Accounts payable	140,044			29,616		18,920		—	—	—		188,580
Interest and preferred dividends payable	12,648			4,074		2,762		—	—	(1	)[1]	19,483
Taxes accrued	152,315			37,638		34,956		—	—	(141	)[3]	224,768
Other	50,828			9,478		13,603		1	—	(4,557	)[1]	69,353
Total current liabilities	463,065			88,006		77,961		1	—	(69,349	)	559,684
Deferred credits and other liabilities
Deferred income taxes	236,890			61,044		39,929		—	—	—		337,863
Regulatory liabilities	215,401			62,049		38,016		—	—	—		315,466
Unamortized tax credits	34,877			12,951		12,786		—	—	—		60,614
Retirement benefits liability	368,245			62,036		64,840		—	—	—		495,121
Other	72,418			22,391		11,235		—	—	—		106,044
Total deferred credits and other liabilities	927,831			220,471		166,806		—	—	—		1,315,108
Contributions in aid of construction	204,795			76,642		74,766		—	—	—		356,203
	$	3,653,825		877,284		727,290		82	26	(586,565	)	$	4,671,942

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Consolidating statement of income

	Year ended December 31, 2011
(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and Eliminations		HECO Consolidated
Operating revenues	$	2,110,249		444,266		419,249		—		—		—		$	2,973,764
Operating expenses
Fuel oil	909,172			121,839		234,115		—		—		—		1,265,126
Purchased power	522,503			137,453		29,696		—		—		—		689,652
Other operation	183,633			36,318		37,114		—		—		—		257,065
Maintenance	81,583			19,668		19,968		—		—		—		121,219
Depreciation	89,324			32,767		20,884		—		—		—		142,975
Taxes, other than income taxes	196,170			41,028		39,306		—		—		—		276,504
Income taxes	37,652			16,863		11,473		—		—		—		65,988
	2,020,037			405,936		392,556		—		—		—		2,818,529
Operating income	90,212			38,330		26,693		—		—		—		155,235
Other income (deductions)
Allowance for equity funds used during construction	4,572			592		800		—		—		—		5,964
Equity in earnings of subsidiaries	44,616			—		—		—		—		(44,616	)[2]	—
Impairment of utility plant	(5,496		)	—		—		—		—		—		(5,496		)
Other, net	2,845			569		433		(5	)	(4	)	(27	)[1]	3,811
	46,537			1,161		1,233		(5	)	(4	)	(44,643	)	4,279
Interest and other charges
Interest on long-term debt	36,522			11,938		9,072		—		—		—		57,532
Amortization of net bond premium and expense	2,023			554		504		—		—		—		3,081
Other interest charges	(921		)	62		304		—		—		(27	)[1]	(582		)
Allowance for borrowed funds used during construction	(1,941		)	(248	)	(309	)	—		—		—		(2,498		)
	35,683			12,306		9,571		—		—		(27	)	57,533
Net income (loss)	101,066			27,185		18,355		(5	)	(4	)	(44,616	)	101,981
Preferred stock of subsidiaries	—			534		381		—		—		—		915
Net income (loss) attributable to HECO	101,066			26,651		17,974		(5	)	(4	)	(44,616	)	101,066
Preferred stock dividends of HECO	1,080			—		—		—		—		—		1,080
Net income (loss) for common stock	$	99,986		26,651		17,974		(5	)	(4	)	(44,616	)	$	99,986

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Consolidating statement of cash flows

	Year ended December 31, 2011
(in thousands)	HECO			HELCO		MECO		RHI		UBC		Elimination addition to (deduction from) cash flows		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$	101,066		27,185		18,355		(5	)	(4	)	(44,616	)[2]	$	101,981
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings	(44,716		)	—		—		—		—		44,616	[2]	(100		)
Common stock dividends received from subsidiaries	28,228			—		—		—		—		(28,128	)[2]	100
Depreciation of property, plant and equipment	89,324			32,767		20,884		—		—		—		142,975
Other amortization	9,890			2,528		4,960		—		—		—		17,378
Impairment of utility plant	9,215			—		—		—		—		—		9,215
Changes in deferred income taxes	38,548			16,101		14,442		—		—		—		69,091
Changes in tax credits, net	1,464			117		506		—		—		—		2,087
Allowance for equity funds used during construction	(4,572		)	(592	)	(800	)	—		—		—		(5,964		)
Decrease in cash overdraft	—			(2,527	)	(161	)	—		—		—		(2,688		)
Changes in assets and liabilities:
Increase in accounts receivable	(34,167		)	(2,985	)	(5,663	)	—		—		(1,589	)[1]	(44,404		)
Decrease (Increase) in accrued unbilled revenues	(31,616		)	(2,481	)	655		—		—		—		(33,442		)
Increase in fuel oil stock	(6,757		)	(3,466	)	(8,620	)	—		—		—		(18,843		)
Increase in materials and supplies	(6,206		)	(202	)	(63	)	—		—		—		(6,471		)
Increase in regulatory assets	(31,774		)	(2,025	)	(6,333	)	—		—		—		(40,132		)
Increase (decrease) in accounts payable	(34,515		)	4,391		(5,691	)	—		—		—		(35,815		)
Changes in prepaid and accrued income taxes and revenue taxes	51,593			9,641		8,502		—		—		—		69,736
Contributions to defined benefit pension and other postretirement benefit plans	(54,183		)	(9,191	)	(9,802	)					—		(73,176		)
Changes in other assets and liabilities	16,312			(7,174	)	(859	)	(2	)	—		1,589	[2]	9,866
Net cash provided by (used in) operating activities	97,134			62,087		30,312		(7	)	(4	)	(28,128	)	161,394
Cash flows from investing activities:
Capital expenditures	(160,528		)	(34,230	)	(31,264	)	—		—		—		(226,022		)
Contributions in aid of construction	15,003			6,271		2,260		—		—		—		23,534
Advances from (to) affiliates	—			(15,200	)	11,000		—		—		4,200	[1]	—
Other	77			—		—		—		—		—		77
Investment in consolidated subsidiary	(25		)	—		—		—		—		25	[2]	—
Net cash used in investing activities	(145,473		)	(43,159	)	(18,004	)	—		—		4,225		(202,411		)
Cash flows from financing activities:
Common stock dividends	(70,558		)	(16,124	)	(12,004	)	—		—		28,128	[2]	(70,558		)
Preferred stock dividends of HECO and subsidiaries	(1,080		)	(534	)	(381	)	—		—		—		(1,995		)
Proceeds from issuance of common stock	40,000			—		—		—		25		(25	)[2]	40,000
Net increase in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	4,200			—		—		—		—		(4,200	)[1]	—
Other	(423		)	(116	)	(21	)	—		—		—		(560		)
Net cash provided by (used in) financing activities	(27,861		)	(16,774	)	(12,406	)	—		25		23,903		(33,113		)
Net increase (decrease) in cash and cash equivalents	(76,200		)	2,154		(98	)	(7	)	21		—		(74,130		)
Cash and cash equivalents, beginning of year	121,019			1,229		594		89		5		—		122,936
Cash and cash equivalents, end of year	$	44,819		3,383		496		82		26		—		$	48,806

Explanation of reclassifications and eliminations on consolidating schedules:

[1]Eliminations of intercompany receivables and payables and other intercompany transactions.

[2]Elimination of investment in subsidiaries, carried at equity.

[3]Reclassification of accrued income taxes for financial statement presentation.

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