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 Consolidated
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 Consolidated
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 Consolidated
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 Consolidated
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 Consolidated
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 Consolidated
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 Consolidated
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 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	)	[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 Consolidated
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 Consolidated
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 Consolidated
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 adjustments			Hawaiian Electric Consolidated
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