Share-based compensation (Tables)

9 Months Ended

Sep. 30, 2014

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:

	Three months ended September 30				Nine months ended September 30
(in millions)	2014		2013		2014		2013
HEI consolidated
Share-based compensation expense 1	$	2.0	$	2.5	$	7.2	$	6.0
Income tax benefit	0.7		0.9		2.6		2.2
Hawaiian Electric consolidated
Share-based compensation expense 1	0.6		0.8		2.2		1.9
Income tax benefit	0.2		0.3		0.9		0.7

¹  $0.04 million and $0.03 million of this share-based compensation expense was capitalized in the third quarter of 2014 and 2013, respectively. $0.12 million and $0.09 million of this share-based compensation expense was capitalized in the nine months ended September 30, 2014 and 2013, respectively.

Schedule of effects of this revision on previous disclosures

The table below illustrates the effects of the revisions on the previously filed financial statements:

	As previously			As
(in thousands)	filed			revised			Difference
HEI consolidated
Consolidated Statements of Income
Three months ended September 30, 2013
Revenues	$	831,229		$	829,168		$	(2,061	)
Operating income	90,099			88,038			(2,061		)
Interest expense, net—other than on deposit liabilities and other bank borrowings	(20,304		)	(19,043		)	1,261
Income before income taxes	71,548			70,748			(800		)
Income taxes	22,841			22,041			(800		)
Nine months ended September 30, 2013
Revenues	2,412,023			2,405,967			(6,056		)
Operating income	243,126			237,070			(6,056		)
Interest expense, net—other than on deposit liabilities and other bank borrowings	(59,705		)	(56,216		)	3,489
Income before income taxes	189,077			186,510			(2,567		)
Income taxes	65,157			62,590			(2,567		)
Consolidated Balance Sheets
December 31, 2013
Property, plant and equipment, net of accumulated depreciation	3,858,947			3,865,514			6,567
Accumulated depreciation	(2,191,199		)	(2,192,422		)	(1,223		)
Other assets	519,194			512,627			(6,567		)
Hawaiian Electric consolidated
Consolidated Balance Sheets
December 31, 2013
Other assets	73,993			67,426			(6,567		)

Schedule of nonemployee director stock award plan activity

Stock awards. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows:

	Nine months ended September 30
($ in millions)	2014		2013
Shares granted	33,170		33,184
Fair value	$	0.8	$	0.8
Income tax benefit	0.3		0.3

Schedule of nonqualified stock options activity and statistics

NQSO activity and statistics were as follows:

(dollars in thousands, except prices)	Three months ended September 30, 2013		Nine months ended   September 30, 2013
Shares exercised	—		14,000
Weighted-average exercise price	$	—	$	20.49
Cash received from exercise	$	—	$	287
Intrinsic value of shares exercised 1	$	—	$	128
Tax benefit realized for the deduction of exercises	$	—	$	50

¹   Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option.

Schedule of stock appreciation rights by grant year

Stock appreciation rights.  Information about HEI’s SARs was as follows:

September 30, 2014	Outstanding & Exercisable (Vested)
Year of grant	Number of shares underlying SARs	Weighted-average remaining contractual life	Weighted-average exercise price
2005	102,000	0.5	$	26.18

Schedule of restricted stock units

Restricted stock units.  Information about HEI’s grants of restricted stock units was as follows:

	Three months ended September 30										Nine months ended September 30
	2014					2013					2014					2013
	Shares			(1)		Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, beginning of period	264,326			$	25.74	300,313			$	25.15	288,151			$	25.17	315,094			$	22.82
Granted	2,750			24.48		4,000			26.48		117,786			25.17		111,231			26.88
Vested	(3,500		)	23.50		(2,500		)	22.31		(142,361		)	24.07		(116,544		)	20.39
Forfeited	—			—		(11,321		)	25.88		—			—		(19,289		)	25.62
Outstanding, end of period	263,576			$	25.76	290,492			$	25.16	263,576			$	25.76	290,492			$	25.16
Total weighted-average grant-date fair value of shares granted ($ millions)	$	0.1				$	0.1				$	3.0				$	3.0

(1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders

LTIP linked to TRS.  Information about HEI’s LTIP grants linked to TRS was as follows:

	Three months ended September 30									Nine months ended September 30
	2014				2013					2014					2013
	Shares		(1)		Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, beginning of period	257,956		$	28.45	235,064			$	32.87	232,127			$	32.88	239,256			$	29.12
Granted (target level)	—		—		1,505			32.69		97,524			22.95		91,038			32.69
Vested (issued or unissued and cancelled)	—		—		—			—		(70,189		)	35.46		(87,753		)	22.45
Forfeited	—		—		(4,442		)	32.40		(1,506		)	28.32		(10,414		)	32.72
Outstanding, end of period	257,956		$	28.45	232,127			$	32.88	257,956			$	28.45	232,127			$	32.88
Total weighted-average grant-date fair value of shares granted ($ millions)	$	—			$	—				$	2.2				$	3.0

(1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS)

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TRS and the resulting fair value of LTIP awards granted:

	2014			2013
Risk-free interest rate	0.66		%	0.38		%
Expected life in years	3			3
Expected volatility	17.8		%	19.4		%
Range of expected volatility for Peer Group	12.4% to 23.3%			12.4% to 25.3%
Grant date fair value (per share)	$	22.95		$	32.69

Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions

LTIP awards linked to other performance conditions.  Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	Three months ended September 30									Nine months ended September 30
	2014				2013					2014					2013
	Shares		(1)		Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, beginning of period	359,782		$	26.01	304,473			$	26.12	296,843			$	26.14	247,175			$	25.04
Granted (target level)	—		—		1,504			27.11		129,603			25.18		120,399			26.89
Vested (issued)	—		—		—			—		(65,089		)	24.95		(18,280		)	18.95
Cancelled	—		—		—			—		—			—		(37,346		)	24.96
Forfeited	—		—		(4,881		)	26.53		(1,575		)	26.07		(10,852		)	26.20
Outstanding, end of period	359,782		$	26.01	301,096			$	26.12	359,782			$	26.01	301,096			$	26.12
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions)	$	—			$	—				$	3.3				$	3.2

(1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.