SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED BALANCE SHEETS

December 31	2016			2015
(dollars in thousands)
Assets
Cash and cash equivalents	$	14,924		$	55,116
Accounts receivable	3,788			5,459
Property, plant and equipment, net	4,143			4,514
Deferred income tax assets	17,280			16,715
Other assets	9,858			11,650
Investments in subsidiaries, at equity	2,383,405			2,293,679
Total assets	$	2,433,398		$	2,387,133
Liabilities and shareholders’ equity
Liabilities
Accounts payable	$	379		$	1,254
Interest payable	1,735			2,450
Notes payable to subsidiaries	5,373			5,946
Commercial paper	—			103,063
Long-term debt, net	299,759			299,666
Retirement benefits liability	33,939			31,704
Other	25,460			15,410
Total liabilities	366,645			459,493
Shareholders’ equity
Preferred stock, no par value, authorized 10,000,000 shares; issued: none	—			—
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 108,583,413 shares and 107,460,406 shares at December 31, 2016 and 2015, respectively	1,660,910			1,629,136
Retained earnings	438,972			324,766
Accumulated other comprehensive loss	(33,129		)	(26,262		)
Total shareholders' equity	2,066,753			1,927,640
Total liabilities and shareholders' equity	$	2,433,398		$	2,387,133

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF INCOME

Years ended December 31	2016			2015		2014
(in thousands)
Revenues	$	647		$	327	$	303
Equity in net income of subsidiaries	199,485			190,033		188,727
Expenses:
Operating, administrative and general	18,701			34,350		20,921
Depreciation of property, plant and equipment	566			576		575
Taxes, other than income taxes	4,726			440		469
Total expenses	23,993			35,366		21,965
Income before merger termination fee, interest expense and income (taxes) benefits	176,139			154,994		167,065
Merger termination fee	90,000			—		—
Income before interest expense and income (taxes) benefits	266,139			154,994		167,065
Interest expense	9,037			10,788		11,599
Income before income (taxes) benefits	257,102			144,206		155,466
Income (taxes) benefits	(8,846		)	15,671		13,047
Net income	$	248,256		$	159,877	$	168,513

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

STATEMENTS OF COMPREHENSIVE INCOME

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Incorporated by reference are HEI and Subsidiaries’ Statements of Consolidated Comprehensive Income and Consolidated Statements of Changes in Shareholders’ Equity in Part II, Item 8.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31	2016			2015			2014
(in thousands)
Net cash provided by operating activities	$	191,306		$	97,141		$	100,794
Cash flows from investing activities
Capital expenditures	(212		)	(173		)	(74		)
Investments in subsidiaries	(24,000		)	—			(40,000		)
Other	1			—			—
Net cash used in investing activities	(24,211		)	(173		)	(40,074		)
Cash flows from financing activities
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less	(618		)	87			(222		)
Net increase (decrease) in short-term borrowings with original maturities of three months or less	(103,063		)	(15,909		)	13,490
Proceeds from issuance of long-term debt	75,000			—			125,000
Repayment of long-term debt	(75,000		)	—			(100,000		)
Excess tax benefits from share-based payment arrangements	404			978			277
Net proceeds from issuance of common stock	13,220			104,435			26,898
Common stock dividends	(117,274		)	(131,765		)	(126,458		)
Other	44			46			—
Net cash used in financing activities	(207,287		)	(42,128		)	(61,015		)
Net increase (decrease) in cash and equivalents	(40,192		)	54,840			(295		)
Cash and cash equivalents, January 1	55,116			276			571
Cash and cash equivalents, December 31	$	14,924		$	55,116		$	276

NOTES TO CONDENSED FINANCIAL INFORMATION

Long-term debt

The components of long-term debt, net, were as follows:

December 31	2016			2015
(dollars in thousands)
HEI Term loan LIBOR + .75%, due 2017	$	125,000		$	125,000
HEI Term loan LIBOR + .75%, due 2018	75,000			—
HEI senior note 4.41%, paid in 2016	—			75,000
HEI senior note 5.67%, due 2021	50,000			50,000
HEI senior note 3.99%, due 2023	50,000			50,000
Less unamortized debt issuance costs	(241		)	(334		)
Long-term debt, net	$	299,759		$	299,666

See Note 1 of the Consolidated Financial Statements for the impact to prior period financial information of the adoption of ASU No. 2015-03.

The aggregate payments of principal required within five years after December 31, 2016 on long-term debt are $125 million in 2017, $75 million in 2018 and nil in 2019 and 2020 and $50 million in 2021.

Indemnities

As of December 31, 2016, HEI has a General Agreement of Indemnity in favor of both Liberty Mutual Insurance Company (Liberty) and Travelers Casualty and Surety Company of America (Travelers) for losses in connection with any and all bonds, undertakings or instruments of guarantee and any renewals or extensions thereof executed by Liberty or Travelers, including, but not limited to, a $0.2 million self-insured United States Longshore & Harbor bond and a $0.6 million self-insured automobile bond.

Income taxes

The Company’s financial reporting policy for income tax allocations is based upon a separate entity concept whereby each subsidiary provides income tax expense (or benefits) as if each were a separate taxable entity. The difference between the aggregate separate tax return income tax provisions and the consolidated financial reporting income tax provision is charged or credited to HEI’s separate tax provision.

Dividends from subsidiaries

In 2016, 2015 and 2014, cash dividends received from subsidiaries were $130 million, $121 million and $124 million, respectively.

Supplemental disclosures of noncash activities

In 2016, 2015 and 2014, $2.3 million, $2.3 million and $2.4 million, respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions.

In 2016, 2015 and 2014, $2.3 million, $0.3 million and $2.5 million, respectively, were contributed as equity by HEI into ASB Hawaii with a corresponding increase in HEI notes payable to ASB Hawaii in noncash transactions.

Under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), common stock dividends reinvested by shareholders in HEI common stock in noncash transactions amounted to $17 million, nil and nil in 2016, 2015 and 2014, respectively. HEI satisfied the requirements of the HEI DRIP, Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and ASB 401(k) Plan from March 6, 2014 through January 5, 2016 by acquiring for cash its common shares through open market purchases rather than by issuing additional shares. From January 6, 2016 through December 6, 2016, HEI satisfied its share purchase requirements for the plans through new issuances, except that from June 2, 2016 through August 9, 2016, HEI satisfied the share purchase requirements of the HEIRSP and ASB 401(k) Plan through open market purchases of its common stock. From December 7, 2016 to date, HEI satisfied the share purchase requirements of these three plans through open market purchases of its common stock rather than through new issuances.

Other

The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements.