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Electric utility segment (Tables)

9 Months Ended

Sep. 30, 2017

Regulatory Projects and Legal Obligations [Line Items]

Schedule of condensed consolidating statements of income (loss)

Statements of Income Data



	Three months ended September 30				Nine months ended September 30
(in thousands)	2017		2016		2017		2016
Interest and dividend income
Interest and fees on loans	$	52,210	$	50,444	$	155,269	$	148,571
Interest and dividends on investment securities	6,850		4,759		20,593		14,219
Total interest and dividend income	59,060		55,203		175,862		162,790
Interest expense
Interest on deposit liabilities	2,444		1,871		6,858		5,154
Interest on other borrowings	470		1,464		2,110		4,416
Total interest expense	2,914		3,335		8,968		9,570
Net interest income	56,146		51,868		166,894		153,220
Provision for loan losses	490		5,747		7,231		15,266
Net interest income after provision for loan losses	55,656		46,121		159,663		137,954
Noninterest income
Fees from other financial services	5,635		5,599		17,055		16,799
Fee income on deposit liabilities	5,533		5,627		16,526		16,045
Fee income on other financial products	1,904		2,151		5,741		6,563
Bank-owned life insurance	1,257		1,616		4,165		3,620
Mortgage banking income	520		2,347		1,896		5,096
Gains on sale of investment securities, net	—		—		—		598
Other income, net	380		1,165		1,229		1,786
Total noninterest income	15,229		18,505		46,612		50,507
Noninterest expense
Compensation and employee benefits	23,724		22,844		71,703		67,197
Occupancy	4,284		3,991		12,623		12,244
Data processing	3,262		3,150		9,749		9,599
Services	2,863		2,427		7,989		8,093
Equipment	1,814		1,759		5,333		5,193
Office supplies, printing and postage	1,444		1,483		4,506		4,431
Marketing	934		747		2,290		2,507
FDIC insurance	746		907		2,296		2,704
Other expense	5,050		4,591		14,066		13,948
Total noninterest expense	44,121		41,899		130,555		125,916
Income before income taxes	26,764		22,727		75,720		62,545
Income taxes	9,172		7,623		25,582		21,483
Net income	$	17,592	$	15,104	$	50,138	$	41,062

Schedule of condensed consolidating balance sheet

Balance Sheets Data



(in thousands)	September 30, 2017						December 31, 2016
Assets
Cash and due from banks				$	120,492					$	137,083
Interest-bearing deposits				69,223						52,128
Restricted cash				—						1,764
Available-for-sale investment securities, at fair value				1,320,110						1,105,182
Stock in Federal Home Loan Bank, at cost				9,706						11,218
Loans receivable held for investment				4,676,281						4,738,693
Allowance for loan losses				(53,047		)				(55,533		)
Net loans				4,623,234						4,683,160
Loans held for sale, at lower of cost or fair value				15,728						18,817
Other				378,224						329,815
Goodwill				82,190						82,190
Total assets				$	6,618,907					$	6,421,357

Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing				$	1,710,698					$	1,639,051
Deposit liabilities—interest-bearing				4,041,628						3,909,878
Other borrowings				153,552						192,618
Other				107,558						101,635
Total liabilities				6,013,436						5,843,182
Commitments and contingencies
Common stock				1						1
Additional paid in capital				344,512						342,704
Retained earnings				279,956						257,943
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(5,479	)				$	(7,931	)
Retirement benefit plans	(13,519		)	(18,998		)	(14,542		)	(22,473		)
Total shareholder’s equity				605,471						578,175
Total liabilities and shareholder’s equity				$	6,618,907					$	6,421,357

Other assets
Bank-owned life insurance				$	147,391					$	143,197
Premises and equipment, net				123,326						90,570
Prepaid expenses				5,356						3,348
Accrued interest receivable				17,488						16,824
Mortgage-servicing rights				9,070						9,373
Low-income housing equity investments				54,515						47,081
Real estate acquired in settlement of loans, net				1,183						1,189
Other				19,895						18,233
				$	378,224					$	329,815
Other liabilities
Accrued expenses				$	41,698					$	36,754
Federal and state income taxes payable				6,829						4,728
Cashier’s checks				27,448						24,156
Advance payments by borrowers				4,867						10,335
Other				26,716						25,662
				$	107,558					$	101,635

Hawaiian Electric Company, Inc. and Subsidiaries

Regulatory Projects and Legal Obligations [Line Items]

Schedule of purchases from all IPPs

Purchases from all IPPs were as follows:



	Three months ended September 30				Nine months ended September 30
(in millions)	2017		2016		2017		2016
Kalaeloa	$	48	$	44	$	136	$	109
AES Hawaii	39		38		103		112
HPOWER	18		19		51		52
Puna Geothermal Venture	10		7		28		19
HEP	8		8		25		23
Other IPPs ¹	38		42		98		98
Total IPPs	$	161	$	158	$	441	$	413


¹	Includes wind power, solar power, feed-in tariff projects and other PPAs.

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 earnings sharing credits	$	—		$	—		$	—
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 condensed consolidating statements of income (loss)

Condensed Consolidating Statement of Income

Nine months ended September 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	1,088,537		229,940		231,295		—	(72	)	$	1,549,700
Expenses
Fuel oil	224,995			40,725		68,543		—	—		334,263
Purchased power	313,730			58,885		40,052		—	—		412,667
Other operation and maintenance	202,438			46,574		49,248		—	—		298,260
Depreciation	94,564			28,347		17,389		—	—		140,300
Taxes, other than income taxes	104,764			21,632		21,990		—	—		148,386
Total expenses	940,491			196,163		197,222		—	—		1,333,876
Operating income	148,046			33,777		34,073		—	(72	)	215,824
Allowance for equity funds used during construction	4,771			571		668		—	—		6,010
Equity in earnings of subsidiaries	33,541			—		—		—	(33,541	)	—
Interest expense and other charges, net	(34,113		)	(8,606	)	(7,087	)	—	72		(49,734		)
Allowance for borrowed funds used during construction	1,785			219		272		—	—		2,276
Income before income taxes	154,030			25,961		27,926		—	(33,541	)	174,376
Income taxes	45,022			9,075		10,585		—	—		64,682
Net income	109,008			16,886		17,341		—	(33,541	)	109,694
Preferred stock dividends of subsidiaries	—			400		286		—	—		686
Net income attributable to Hawaiian Electric	109,008			16,486		17,055		—	(33,541	)	109,008
Preferred stock dividends of Hawaiian Electric	810			—		—		—	—		810
Net income for common stock	$	108,198		16,486		17,055		—	(33,541	)	$	108,198

Condensed Consolidating Statement of Income

Three months ended September 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	404,352		83,105		84,831		—	(35	)	$	572,253
Expenses
Fuel oil	88,676			14,603		25,345		—	—		128,624
Purchased power	118,751			22,728		16,271		—	—		157,750
Other operation and maintenance	64,683			15,017		15,089		—	—		94,789
Depreciation	31,520			9,449		5,790		—	—		46,759
Taxes, other than income taxes	38,666			7,836		8,017		—	—		54,519
Total expenses	342,296			69,633		70,512		—	—		482,441
Operating income	62,056			13,472		14,319		—	(35	)	89,812
Allowance for equity funds used during construction	1,806			238		230		—	—		2,274
Equity in earnings of subsidiaries	14,729			—		—		—	(14,729	)	—
Interest expense and other charges, net	(11,903		)	(2,972	)	(2,483	)	—	35		(17,323		)
Allowance for borrowed funds used during construction	669			91		94		—	—		854
Income before income taxes	67,357			10,829		12,160		—	(14,729	)	75,617
Income taxes	20,113			3,392		4,640		—	—		28,145
Net income	47,244			7,437		7,520		—	(14,729	)	47,472
Preferred stock dividends of subsidiaries	—			133		95		—	—		228
Net income attributable to Hawaiian Electric	47,244			7,304		7,425		—	(14,729	)	47,244
Preferred stock dividends of Hawaiian Electric	270			—		—		—	—		270
Net income for common stock	$	46,974		7,304		7,425		—	(14,729	)	$	46,974

Condensed Consolidating Statement of Income

Three months ended September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	429,267		84,334		85,198		—	(30	)	$	598,769
Expenses
Fuel oil	103,959			15,754		26,545		—	—		146,258
Purchased power	123,893			21,332		15,122		—	—		160,347
Other operation and maintenance	66,221			16,593		17,288		—	—		100,102
Depreciation	32,722			9,685		5,799		—	—		48,206
Taxes, other than income taxes	40,824			7,928		8,028		—	—		56,780
Total expenses	367,619			71,292		72,782		—	—		511,693
Operating income	61,648			13,042		12,416		—	(30	)	87,076
Allowance for equity funds used during construction	3,108			167		207		—	—		3,482
Equity in earnings of subsidiaries	12,767			—		—		—	(12,767	)	—
Interest expense and other charges, net	(11,786		)	(2,899	)	(2,252	)	—	30		(16,907		)
Allowance for borrowed funds used during construction	1,173			72		94		—	—		1,339
Income before income taxes	66,910			10,382		10,465		—	(12,767	)	74,990
Income taxes	19,153			3,815		4,037		—	—		27,005
Net income	47,757			6,567		6,428		—	(12,767	)	47,985
Preferred stock dividends of subsidiaries	—			133		95		—	—		228
Net income attributable to Hawaiian Electric	47,757			6,434		6,333		—	(12,767	)	47,757
Preferred stock dividends of Hawaiian Electric	270			—		—		—	—		270
Net income for common stock	$	47,487		6,434		6,333		—	(12,767	)	$	47,487

Condensed Consolidating Statement of Income

Nine months ended September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	1,186,524		245,026		242,756		—	(51	)	$	1,674,255
Expenses
Fuel oil	301,774			47,486		82,527		—	—		431,787
Purchased power	340,498			63,403		36,637		—	—		440,538
Other operation and maintenance	204,460			49,667		52,589		—	—		306,716
Depreciation	98,167			29,056		17,355		—	—		144,578
Taxes, other than income taxes	113,483			23,080		23,012		—	—		159,575
Total expenses	1,058,382			212,692		212,120		—	—		1,483,194
Operating income	128,142			32,334		30,636		—	(51	)	191,061
Allowance for equity funds used during construction	7,823			416		669		—	—		8,908
Equity in earnings of subsidiaries	29,306			—		—		—	(29,306	)	—
Interest expense and other charges, net	(36,405		)	(8,899	)	(7,372	)	—	51		(52,625		)
Allowance for borrowed funds used during construction	2,910			172		289		—	—		3,371
Income before income taxes	131,776			24,023		24,222		—	(29,306	)	150,715
Income taxes	36,370			8,973		9,280		—	—		54,623
Net income	95,406			15,050		14,942		—	(29,306	)	96,092
Preferred stock dividends of subsidiaries	—			400		286		—	—		686
Net income attributable to Hawaiian Electric	95,406			14,650		14,656		—	(29,306	)	95,406
Preferred stock dividends of Hawaiian Electric	810			—		—		—	—		810
Net income for common stock	$	94,596		14,650		14,656		—	(29,306	)	$	94,596

Schedule of condensed consolidating statement of comprehensive income

Condensed Consolidating Statement of Comprehensive Income

Three months ended September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	47,487		6,434		6,333		—	(12,767	)	$	47,487
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	3,618			476		404		—	(880	)	3,618
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,596		)	(476	)	(404	)	—	880		(3,596		)
Other comprehensive income, net of taxes	22			—		—		—	—		22
Comprehensive income attributable to common shareholder	$	47,509		6,434		6,333		—	(12,767	)	$	47,509

Condensed Consolidating Statement of Comprehensive Income

Nine months ended September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	94,596		14,650		14,656		—	(29,306	)	$	94,596
Other comprehensive income (loss), net of taxes:
Derivatives qualifying as cash flow hedges:
Reclassification adjustment to net income, net of tax benefits	454			—		—		—	—		454
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	10,857			1,428		1,214		—	(2,642	)	10,857
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(10,790		)	(1,427	)	(1,214	)	—	2,641		(10,790		)
Other comprehensive income, net of taxes	521			1		—		—	(1	)	521
Comprehensive income attributable to common shareholder	$	95,117		14,651		14,656		—	(29,307	)	$	95,117

Condensed Consolidating Statement of Comprehensive Income

Nine months ended September 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	108,198		16,486		17,055		—	(33,541	)	$	108,198
Other comprehensive income (loss), net of taxes:
Derivatives qualifying as cash flow hedges:
Effective portion of foreign currency hedge net unrealized gain, net of taxes	578			—		—		—	—		578
Reclassification adjustment to net income, net of taxes	(173		)	—		—		—	—		(173		)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	9,941			1,288		1,162		—	(2,450	)	9,941
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(9,934		)	(1,289	)	(1,166	)	—	2,455		(9,934		)
Other comprehensive income (loss), net of taxes	412			(1	)	(4	)	—	5		412
Comprehensive income attributable to common shareholder	$	108,610		16,485		17,051		—	(33,536	)	$	108,610

Condensed Consolidating Statement of Comprehensive Income

Three months ended September 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	46,974		7,304		7,425		—	(14,729	)	$	46,974
Other comprehensive income (loss), net of taxes:
Derivatives qualified as cash flow hedges:
Effective portion of foreign currency hedge net unrealized loss, net of tax benefits	321			—		—		—	—		321
Reclassification adjustment to net income, net of taxes	(173		)	—		—		—	—		(173		)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	3,314			429		387		—	(816	)	3,314
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,311		)	(429	)	(389	)	—	818		(3,311		)
Other comprehensive income (loss), net of taxes	151			—		(2	)	—	2		151
Comprehensive income attributable to common shareholder	$	47,125		7,304		7,423		—	(14,727	)	$	47,125

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet

December 31, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consoli- dating adjustments		Hawaiian Electric Consolidated
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	)	—
Current assets
Cash and cash equivalents	61,388			10,749		2,048		101	—		74,286
Advances to affiliates	—			3,500		10,000		—	(13,500	)	—
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	)	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	)	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	)	$	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 from affiliate	13,500			—		—		—	(13,500	)	—
Accounts payable	86,369			18,126		13,319		—	—		117,814
Interest and preferred dividends payable	15,761			4,206		2,882		—	(11	)	22,838
Taxes accrued	120,176			28,100		25,387		—	(933	)	172,730
Regulatory liabilities	—			2,219		1,543		—	—		3,762
Other	41,352			7,637		12,501		—	(6,269	)	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		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	)	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

Condensed Consolidating Balance Sheet

September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consoli- dating adjustments		Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	44,706		6,191		3,016		—	—		$	53,913
Plant and equipment	4,368,428			1,278,884		1,130,942		—	—		6,778,254
Less accumulated depreciation	(1,441,963		)	(524,759	)	(493,707	)	—	—		(2,460,429		)
Construction in progress	262,098			16,459		28,935		—	—		307,492
Utility property, plant and equipment, net	3,233,269			776,775		669,186		—	—		4,679,230
Nonutility property, plant and equipment, less accumulated depreciation	5,762			115		1,532		—	—		7,409
Total property, plant and equipment, net	3,239,031			776,890		670,718		—	—		4,686,639
Investment in wholly owned subsidiaries, at equity	559,671			—		—		—	(559,671	)	—
Current assets
Cash and cash equivalents	3,454			4,714		1,718		101	—		9,987
Advances to affiliates	—			6,600		4,000		—	(10,600	)	—
Customer accounts receivable, net	92,961			20,830		19,344		—	—		133,135
Accrued unbilled revenues, net	80,644			15,145		13,918		—	—		109,707
Other accounts receivable, net	7,402			2,797		1,244		—	(7,346	)	4,097
Fuel oil stock, at average cost	40,460			8,034		11,759		—	—		60,253
Materials and supplies, at average cost	28,865			8,960		18,134		—	—		55,959
Prepayments and other	22,197			4,183		3,647		—	(156	)	29,871
Regulatory assets	63,608			4,341		4,824		—	—		72,773
Total current assets	339,591			75,604		78,588		101	(18,102	)	475,782
Other long-term assets
Regulatory assets	639,689			118,655		105,847		—	—		864,191
Unamortized debt expense	472			83		106		—	—		661
Other	50,424			14,981		14,823		—	—		80,228
Total other long-term assets	690,585			133,719		120,776		—	—		945,080
Total assets	$	4,828,878		986,213		870,082		101	(577,773	)	$	6,107,501
Capitalization and liabilities
Capitalization
Common stock equity	$	1,829,075		294,319		265,251		101	(559,671	)	$	1,829,075
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	915,097			213,658		189,868		—	—		1,318,623
Total capitalization	2,766,465			514,977		460,119		101	(559,671	)	3,181,991
Current liabilities
Short-term borrowings from non-affiliates	6,000			—		—		—	—		6,000
Short-term borrowings from affiliate	10,600			—		—		—	(10,600	)	—
Accounts payable	94,618			15,291		14,331		—	—		124,240
Interest and preferred dividends payable	17,870			3,973		3,429		—	(11	)	25,261
Taxes accrued	134,935			27,571		25,919		—	(5,060	)	183,365
Regulatory liabilities	576			1,029		1,794		—	—		3,399
Other	45,662			8,173		13,111		—	(7,335	)	59,611
Total current liabilities	310,261			56,037		58,584		—	(23,006	)	401,876
Deferred credits and other liabilities
Deferred income taxes	540,857			113,277		108,573		—	4,904		767,611
Regulatory liabilities	328,530			100,973		33,314		—	—		462,817
Unamortized tax credits	57,577			16,048		15,202		—	—		88,827
Defined benefit pension and other postretirement benefit plans liability	431,191			72,366		78,156		—	—		581,713
Other	27,097			14,383		16,068		—	—		57,548
Total deferred credits and other liabilities	1,385,252			317,047		251,313		—	4,904		1,958,516
Contributions in aid of construction	366,900			98,152		100,066		—	—		565,118
Total capitalization and liabilities	$	4,828,878		986,213		870,082		101	(577,773	)	$	6,107,501

Schedule of condensed consolidating statement of changes in common stock equity

Condensed Consolidating Statement of Changes in Common Stock Equity

Nine months ended September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2016	$	1,799,787		291,291		259,554		101	(550,946	)	$	1,799,787
Net income for common stock	94,596			14,650		14,656		—	(29,306	)	94,596
Other comprehensive income, net of taxes	521			1		—		—	(1	)	521
Common stock dividends	(65,825		)	(11,622	)	(8,959	)	—	20,581		(65,825		)
Common stock issuance expenses	(4		)	(1	)	—		—	1		(4		)
Balance, September 30, 2017	$	1,829,075		294,319		265,251		101	(559,671	)	$	1,829,075

Condensed Consolidating Statement of Changes in Common Stock Equity

Nine months ended September 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2015	$	1,728,325		292,702		263,725		101	(556,528	)	$	1,728,325
Net income for common stock	108,198			16,486		17,055		—	(33,541	)	108,198
Other comprehensive income (loss), net of taxes	412			(1	)	(4	)	—	5		412
Common stock dividends	(70,199		)	(9,906	)	(9,795	)	—	19,701		(70,199		)
Common stock issuance expenses	(9		)	(5	)	—		—	5		(9		)
Balance, September 30, 2016	$	1,766,727		299,276		270,981		101	(570,358	)	$	1,766,727

Schedule of condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows

Nine months ended September 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities
Net income	$	109,008		16,886		17,341		—	(33,541	)	$	109,694
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(33,616		)	—		—		—	33,541		(75		)
Common stock dividends received from subsidiaries	19,776			—		—		—	(19,701	)	75
Depreciation of property, plant and equipment	94,564			28,347		17,389		—	—		140,300
Other amortization	2,462			1,366		1,552		—	—		5,380
Deferred income taxes	41,005			4,529		10,085		—	29		55,648
Allowance for equity funds used during construction	(4,771		)	(571	)	(668	)	—	—		(6,010		)
Other	2,925			162		147		—	—		3,234
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	328			(2,716	)	(1,313	)	—	3,046		(655		)
Increase in accrued unbilled revenues	(9,673		)	(373	)	(612	)	—	—		(10,658		)
Decrease in fuel oil stock	4,157			1,425		1,154		—	—		6,736
Decrease (increase) in materials and supplies	(1,755		)	(1,559	)	387		—	—		(2,927		)
Decrease (increase) in regulatory assets	(2,474		)	(150	)	373		—	—		(2,251		)
Increase (decrease) in accounts payable	(2,628		)	143		1,809		—	—		(676		)
Change in prepaid and accrued income taxes, tax credits and revenue taxes	(7,324		)	2,230		(4,472	)	—	(29	)	(9,595		)
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability	449			40		(129	)	—	—		360
Change in other assets and liabilities	(10,548		)	2,856		(2,571	)	—	(3,046	)	(13,309		)
Net cash provided by operating activities	201,885			52,615		40,472		—	(19,701	)	275,271
Cash flows from investing activities
Capital expenditures	(188,415		)	(37,835	)	(24,454	)	—	—		(250,704		)
Contributions in aid of construction	18,181			2,691		2,696		—	—		23,568
Other	901			169		30		—	—		1,100
Advances from affiliates	—			(3,000	)	(8,000	)	—	11,000		—
Net cash used in investing activities	(169,333		)	(37,975	)	(29,728	)	—	11,000		(226,036		)
Cash flows from financing activities
Common stock dividends	(70,199		)	(9,906	)	(9,795	)	—	19,701		(70,199		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(810		)	(400	)	(286	)	—	—		(1,496		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	32,000			—		—		—	(11,000	)	21,000
Other	(3		)	(8	)	(1	)	—	—		(12		)
Net cash used in financing activities	(39,012		)	(10,314	)	(10,082	)	—	8,701		(50,707		)
Net increase (decrease) in cash and cash equivalents	(6,460		)	4,326		662		—	—		(1,472		)
Cash and cash equivalents, beginning of period	16,281			2,682		5,385		101	—		24,449
Cash and cash equivalents, end of period	$	9,821		7,008		6,047		101	—		$	22,977

Condensed Consolidating Statement of Cash Flows

Nine months ended September 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities
Net income	$	95,406		15,050		14,942		—	(29,306	)	$	96,092
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(29,381		)	—		—		—	29,306		(75		)
Common stock dividends received from subsidiaries	20,656			—		—		—	(20,581	)	75
Depreciation of property, plant and equipment	98,167			29,056		17,355		—	—		144,578
Other amortization	2,168			1,718		2,232		—	—		6,118
Deferred income taxes	12,166			5,237		7,493		—	4,641		29,537
Allowance for equity funds used during construction	(7,823		)	(416	)	(669	)	—	—		(8,908		)
Other	216			566		(256	)	—	—		526
Changes in assets and liabilities:
Increase in accounts receivable	(6,114		)	(1,127	)	(1,912	)	—	1,066		(8,087		)
Increase in accrued unbilled revenues	(14,823		)	(1,581	)	(1,610	)	—	—		(18,014		)
Decrease (increase) in fuel oil stock	6,779			195		(797	)	—	—		6,177
Decrease (increase) in materials and supplies	1,063			(1,580	)	(1,763	)	—	—		(2,280		)
Decrease (increase) in regulatory assets	9,471			(2,935	)	(2,614	)	—	—		3,922
Increase (decrease) in accounts payable	(22,224		)	(2,955	)	2,338		—	—		(22,841		)
Change in prepaid and accrued income taxes, tax credits and revenue taxes	10,920			(758	)	210		—	(5,081	)	5,291
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability	532			39		(118	)	—	—		453
Change in other assets and liabilities	(2,709		)	1,059		54		—	(1,066	)	(2,662		)
Net cash provided by operating activities	174,470			41,568		34,885		—	(21,021	)	229,902
Cash flows from investing activities
Capital expenditures	(207,493		)	(36,405	)	(34,106	)	—	—		(278,004		)
Contributions in aid of construction	34,787			3,460		2,356		—	—		40,603
Other	6,089			871		714		—	440		8,114
Advances from affiliates	—			(3,100	)	6,000		—	(2,900	)	—
Net cash used in investing activities	(166,617		)	(35,174	)	(25,036	)	—	(2,460	)	(229,287		)
Cash flows from financing activities
Common stock dividends	(65,825		)	(11,622	)	(8,959	)	—	20,581		(65,825		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(810		)	(400	)	(286	)	—	—		(1,496		)
Proceeds from issuance of special purpose revenue bonds	162,000			28,000		75,000		—			265,000
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	3,100			—		—		—	2,900		6,000
Other	(2,252		)	(407	)	(934	)	—	—		(3,593		)
Net cash used in financing activities	(65,787		)	(12,429	)	(10,179	)	—	23,481		(64,914		)
Net decrease in cash and cash equivalents	(57,934		)	(6,035	)	(330	)	—	—		(64,299		)
Cash and cash equivalents, beginning of period	61,388			10,749		2,048		101	—		74,286
Cash and cash equivalents, end of period	$	3,454		4,714		1,718		101	—		$	9,987

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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