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Retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2017
Compensation and Retirement Disclosure [Abstract]  
Schedule of changes in the obligations and assets of the Company's retirement benefit plans and the changes in AOCI (gross) and the funded status
The changes in the obligations and assets of the Company’s and Utilities' retirement benefit plans and the changes in AOCI (gross) for 2017 and 2016 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities' consolidated balance sheet as of December 31, 2017 and 2016 were as follows:
 
2017
 
2016
(in thousands)
Pension
benefits
 
Other
benefits
 
Pension
benefits
 
Other
benefits
HEI consolidated
 
 
 
 
 
 
 
Benefit obligation, January 1
$
1,935,494

 
$
233,835

 
$
1,798,030

 
$
221,540

Service cost
64,906

 
3,374

 
60,555

 
3,331

Interest cost
81,185

 
9,453

 
81,549

 
9,670

Actuarial losses (gains)
87,399

 
(25,557
)
 
67,741

 
7,831

Participants contributions
—

 
2,078

 
—

 
1,405

Benefits paid and expenses
(74,628
)
 
(10,582
)
 
(72,381
)
 
(9,942
)
Benefit obligation, December 31
2,094,356

 
212,601

 
1,935,494

 
233,835

Fair value of plan assets, January 1
1,369,701

 
174,251

 
1,271,474

 
170,687

Actual return on plan assets
255,324

 
28,248

 
103,836

 
11,352

Employer contributions
66,983

 
—

 
65,463

 
42

Participants contributions
—

 
2,078

 
—

 
1,405

Benefits paid and expenses
(73,305
)
 
(10,582
)
 
(71,072
)
 
(9,235
)
Fair value of plan assets, December 31
1,618,703

 
193,995

 
1,369,701

 
174,251

Accrued benefit asset (liability), December 31
$
(475,653
)
 
$
(18,606
)
 
$
(565,793
)
 
$
(59,584
)
Other assets
$
15,443

 
$
—

 
$
13,477

 
$
—

Defined benefit pension and other postretirement benefit plans liability
(491,096
)
 
(18,606
)
 
(579,270
)
 
(59,584
)
Accrued benefit asset (liability), December 31
$
(475,653
)
 
$
(18,606
)
 
$
(565,793
)
 
$
(59,584
)
AOCI debit, January 1 (excluding impact of PUC D&Os)
$
619,451

 
$
42,290

 
$
581,763

 
$
32,550

Recognized during year – prior service credit
55

 
1,793

 
57

 
1,793

Recognized during year – net actuarial losses
(26,496
)
 
(1,130
)
 
(24,832
)
 
(804
)
Occurring during year – net actuarial losses (gains)
(65,180
)
 
(41,479
)
 
62,463

 
8,751

AOCI debit before cumulative impact of PUC D&Os, December 31
527,830

 
1,474

 
619,451

 
42,290

Cumulative impact of PUC D&Os
(489,894
)
 
(2,767
)
 
(576,933
)
 
(43,974
)
AOCI debit/(credit), December 31
$
37,936

 
$
(1,293
)
 
$
42,518

 
$
(1,684
)
Net actuarial loss
$
527,907

 
$
10,183

 
$
619,582

 
$
52,792

Prior service gain
(77
)
 
(8,709
)
 
(131
)
 
(10,502
)
AOCI debit before cumulative impact of PUC D&Os, December 31
527,830

 
1,474

 
619,451

 
42,290

Cumulative impact of PUC D&Os
(489,894
)
 
(2,767
)
 
(576,933
)
 
(43,974
)
AOCI debit/(credit), December 31
37,936

 
(1,293
)
 
42,518

 
(1,684
)
Income taxes (benefits)
(9,986
)
 
333

 
(16,746
)
 
656

AOCI debit/(credit), net of taxes (benefits), December 31
$
27,950

 
$
(960
)
 
$
25,772

 
$
(1,028
)

As of December 31, 2017 and 2016, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets.

 
 
 
 
 
 
 
 
 
2017
 
2016
(in thousands)
Pension
benefits
 
Other
benefits
 
Pension
benefits
 
Other
benefits
Hawaiian Electric consolidated
 
 
 
 
 
 
 
Benefit obligation, January 1
$
1,779,626

 
$
225,723

 
$
1,649,690

 
$
213,990

Service cost
63,059

 
3,353

 
58,796

 
3,284

Interest cost
74,632

 
9,115

 
74,808

 
9,337

Actuarial losses (gains)
80,186

 
(25,172
)
 
63,121

 
7,545

Participants contributions
—

 
2,047

 
—

 
1,389

Benefits paid and expenses
(68,691
)
 
(10,419
)
 
(66,789
)
 
(9,822
)
Transfers
(164
)
 
(3
)
 
—

 
—

Benefit obligation, December 31
1,928,648

 
204,644

 
1,779,626

 
225,723

Fair value of plan assets, January 1
1,233,184

 
171,383

 
1,141,833

 
167,930

Actual return on plan assets
237,830

 
27,806

 
93,441

 
11,168

Employer contributions
65,669

 
—

 
64,236

 
11

Participants contributions
—

 
2,047

 
—

 
1,389

Benefits paid and expenses
(68,225
)
 
(10,419
)
 
(66,326
)
 
(9,115
)
Other
(55
)
 
(3
)
 
—

 
—

Fair value of plan assets, December 31
1,468,403

 
190,814

 
1,233,184

 
171,383

Accrued benefit liability, December 31
$
(460,245
)
 
$
(13,830
)
 
$
(546,442
)
 
$
(54,340
)
Other liabilities (short-term)
(494
)
 
(633
)
 
(460
)
 
(596
)
Defined benefit pension and other postretirement benefit plans liability
(459,751
)
 
(13,197
)
 
(545,982
)
 
(53,744
)
Accrued benefit liability, December 31
$
(460,245
)
 
$
(13,830
)
 
$
(546,442
)
 
$
(54,340
)
AOCI debit, January 1 (excluding impact of PUC D&Os)
$
579,725

 
$
40,967

 
$
541,118

 
$
31,485

Recognized during year – prior service credit (cost)
(8
)
 
1,804

 
(13
)
 
1,803

Recognized during year – net actuarial losses
(24,392
)
 
(1,102
)
 
(22,693
)
 
(793
)
Occurring during year – net actuarial losses (gains)
(61,861
)
 
(40,830
)
 
61,313

 
8,472

AOCI debit before cumulative impact of PUC D&Os, December 31
493,464

 
839

 
579,725

 
40,967

Cumulative impact of PUC D&Os
(489,894
)
 
(2,767
)
 
(576,933
)
 
(43,974
)
AOCI debit/(credit), December 31
$
3,570

 
$
(1,928
)
 
$
2,792

 
$
(3,007
)
Net actuarial loss
$
493,439

 
$
9,531

 
$
579,691

 
$
51,463

Prior service cost (gain)
25

 
(8,692
)
 
34

 
(10,496
)
AOCI debit before cumulative impact of PUC D&Os, December 31
493,464

 
839

 
579,725

 
40,967

Cumulative impact of PUC D&Os
(489,894
)
 
(2,767
)
 
(576,933
)
 
(43,974
)
AOCI debit/(credit), December 31
3,570

 
(1,928
)
 
2,792

 
(3,007
)
Income taxes (benefits)
(920
)
 
497

 
(1,087
)
 
1,170

AOCI debit/(credit), net of taxes (benefits), December 31
$
2,650

 
$
(1,431
)
 
$
1,705

 
$
(1,837
)
Schedule of weighted-average asset allocation of defined benefit retirement plans
The asset allocation of defined benefit retirement plans to equity and fixed income securities and related investment policy targets and ranges were as follows:
 
Pension benefits1
 
Other benefits2
 
 
 
 
 
Investment policy
 
 
 
 
 
Investment policy
December 31
2017

 
2016

 
Target

 
Range
 
2017

 
2016

 
Target

 
Range
Assets held by category
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Equity securities
73
%
 
71
%
 
70
%
 
65-75
 
73
%
 
70
%
 
70
%
 
65-75
Fixed income securities
27

 
29

 
30

 
25-35
 
27

 
30

 
30

 
25-35
 
100
%
 
100
%
 
100
%
 
 
 
100
%
 
100
%
 
100
%
 
 

1  
Asset allocation is applicable to only HEI and the Utilities. As of December 31, 2017 and 2016, nearly all of ASB's pension assets were invested in fixed income securities.
2 
Asset allocation is applicable to only HEI and the Utilities. ASB does not fund its other benefits.
Schedule of assets held in various trusts are measured at fair value on a recurring basis
Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows:
 
Pension benefits
 
Other benefits
 
 
 
Fair value measurements using
 
 
 
Fair value measurements using
(in millions)
December 31
 
Quoted prices in active markets for identical assets
(Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
December 31
 
Level 1
 
Level 2
 
Level 3
2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Equity securities
$
568

 
$
568

 
$
—

 
$
—

 
$
75

 
$
75

 
$
—

 
$
—

Equity index funds
435

 
435

 
—

 
—

 
52

 
52

 
—

 
—

Equity investments at net asset value (NAV)
76

 
—

 
—

 
—

 
12

 
—

 
—

 
—

   Total equity investments
1,079

 
1,003

 
—

 
—

 
139

 
127

 
—

 
—

Fixed income securities and public mutual funds
297

 
81

 
216

 
—

 
46

 
43

 
3

 
—

Fixed income investments at NAV
203

 
—

 
—

 
—

 
4

 
—

 
—

 
—

   Total fixed income investments
500

 
81

 
216

 
—

 
50

 
43

 
3

 
—

Cash equivalents at NAV
36

 
—

 
—

 
—

 
5

 
—

 
—

 
—

Total
$
1,615

 
$
1,084

 
$
216

 
$
—

 
$
194

 
$
170

 
$
3

 
$
—

Cash, receivables and payables, net
4

 
 

 
 

 
 

 
—

 
 

 
 

 
 

Fair value of plan assets
$
1,619

 
 

 
 

 
 

 
$
194

 
 

 
 

 
 

2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Equity securities
$
692

 
$
692

 
$
—

 
$
—

 
$
94

 
$
94

 
$
—

 
$
—

Equity index funds
129

 
129

 
—

 
—

 
17

 
17

 
—

 
—

Equity investments at NAV
56

 
—

 
—

 
—

 
9

 
—

 
—

 
—

   Total equity investments
877

 
821

 
—

 
—

 
120

 
111

 
—

 
—

Fixed income securities and public mutual funds
276

 
84

 
192

 
—

 
44

 
42

 
2

 
—

Fixed income investments at NAV
180

 
—

 
—

 
—

 
4

 
—

 
—

 
—

   Total fixed income investments
456

 
84

 
192

 
—

 
48

 
42

 
2

 
—

Cash equivalents at NAV
33

 
—

 
—

 
—

 
6

 
—

 
—

 
—

Total
1,366

 
$
905

 
$
192

 
$
—

 
174

 
$
153

 
$
2

 
$
—

Cash, receivables and payables, net
4

 
 

 
 

 
 

 
—

 
 

 
 

 
 

Fair value of plan assets
$
1,370

 
 

 
 

 
 

 
$
174

 
 

 
 

 
 


 
Pension benefits
 
Other benefits
Measured at net asset value
December 31

 
Redemption frequency
 
Redemption notice period
 
December 31

 
Redemption frequency
 
Redemption notice period
(in millions)
 
 
 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
Non U.S. equity funds (a)
76

 
Daily-Monthly
 
5 - 30 days
 
12

 
Daily-Monthly
 
5-30 days
Fixed income investments (b)
203

 
Monthly
 
15 days
 
4

 
Monthly
 
15 days
Cash equivalents (c)
36

 
Daily
 
0-1 day
 
5

 
Daily
 
0-1 day
 
$
315

 
 
 
 
 
$
21

 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
Non U.S. equity funds (a)
56

 
Daily - Quarterly
 
0 - 30 days
 
9

 
Monthly - Quarterly
 
10-30 days
Fixed income investments (b)
180

 
Monthly
 
10 days
 
4

 
Monthly
 
10 days
Cash equivalents (c)
33

 
Daily
 
0-1 day
 
6

 
Daily
 
0-1 day
 
$
269

 
 
 
 
 
$
19

 
 
 
 
None of the investments presented in the tables above have unfunded commitments.
(a)
Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2017 were: daily, 32% and monthly, 68% and as of December 31, 2016 were: daily, 31%; monthly, 31%; and quarterly, 38%. Redemption frequency for other benefits assets as of December 31, 2017 were: daily, 26% and monthly, 74% and as of December 31, 2016 were: monthly, 57%; and quarterly, 42%.
(b )
Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles.
(c)
Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers
Schedule of weighted-average assumptions used in accounting for plans
The following weighted-average assumptions were used in the accounting for the plans:
 
Pension benefits
 
Other benefits
December 31
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.74
%
 
4.26
%
 
4.60
%
 
3.72
%
 
4.22
%
 
4.57
%
Rate of compensation increase
3.5

 
3.5

 
3.5

 
NA   

 
NA   

 
NA   

Net periodic pension/benefit cost (years ended)
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.26

 
4.60

 
4.22

 
4.22

 
4.57

 
4.17

Expected return on plan assets1
7.50

 
7.75

 
7.75

 
7.50

 
7.75

 
7.75

Rate of compensation increase2
3.5

 
3.5

 
3.5

 
NA   

 
NA   

 
NA   

NA  Not applicable
1 For 2017 and 2016, HEI's and Utilities' plan assets only. For 2017 and 2016, ASB's expected return on plan assets was 4.46% and 4.80%, respectively.
2 The Company and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population.
Schedule of components of net periodic benefit cost for consolidated HEI
The components of NPPC and NPBC were as follows:
 
Pension benefits
 
Other benefits
(in thousands)
2017
 
2016
 
2015
 
2017
 
2016
 
2015
HEI consolidated
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
64,906

 
$
60,555

 
$
66,260

 
$
3,374

 
$
3,331

 
$
3,927

Interest cost
81,185

 
81,549

 
76,960

 
9,453

 
9,670

 
9,011

Expected return on plan assets
(102,745
)
 
(98,559
)
 
(88,554
)
 
(12,326
)
 
(12,273
)
 
(11,664
)
Amortization of net prior service (gain) cost
(55
)
 
(57
)
 
4

 
(1,793
)
 
(1,793
)
 
(1,793
)
Amortization of net actuarial losses
26,496

 
24,832

 
36,800

 
1,130

 
804

 
1,796

Net periodic pension/benefit cost
69,787

 
68,320

 
91,470

 
(162
)
 
(261
)
 
1,277

Impact of PUC D&Os
(18,004
)
 
(18,117
)
 
(40,011
)
 
1,211

 
1,343

 
(240
)
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$
51,783

 
$
50,203

 
$
51,459

 
$
1,049

 
$
1,082

 
$
1,037

Hawaiian Electric consolidated
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
63,059

 
$
58,796

 
$
64,262

 
$
3,353

 
$
3,284

 
$
3,870

Interest cost
74,632

 
74,808

 
70,529

 
9,115

 
9,337

 
8,700

Expected return on plan assets
(95,892
)
 
(91,633
)
 
(82,541
)
 
(12,147
)
 
(12,096
)
 
(11,495
)
Amortization of net prior service (gain) cost
8

 
13

 
40

 
(1,804
)
 
(1,803
)
 
(1,804
)
Amortization of net actuarial losses
24,392

 
22,693

 
33,371

 
1,102

 
793

 
1,754

Net periodic pension/benefit cost
66,199

 
64,677

 
85,661

 
(381
)
 
(485
)
 
1,025

Impact of PUC D&Os
(18,004
)
 
(18,117
)
 
(40,011
)
 
1,211

 
1,343

 
(240
)
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$
48,195

 
$
46,560

 
$
45,650

 
$
830

 
$
858

 
$
785
Schedule of amounts in accumulated other comprehensive Income (loss) to be recognized over next fiscal year
The estimated prior service credit and net actuarial loss for defined benefit plans that will be amortized from AOCI or regulatory assets into NPPC and NPBC during 2018 is as follows:
 
HEI consolidated
 
Hawaiian Electric consolidated
(in millions)
Pension benefits
 
Other benefits
 
Pension benefits
 
Other benefits
Estimated prior service credit
$
—

 
$
(1.8
)
 
$
—

 
$
(1.8
)
Net actuarial loss
29.6

 
—

 
26.8

 
—
Schedule of projected benefit obligations and assets
Additional information on the defined benefit pension plans' accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), PBOs and assets were as follows:
 
HEI consolidated
 
Hawaiian Electric consolidated
December 31
2017
 
2016
 
2017
 
2016
(in billions)
 
 
 
 
 
 
 
Defined benefit plans - ABOs
$
1.8

 
$
1.7

 
$
1.7

 
$
1.5

Defined benefit plans with ABO in excess of plan assets
 
 
 
 
 
 
 
     ABOs
1.7

 
1.6

 
1.7

 
1.5

     Plan assets
1.5

 
1.3

 
1.5

 
1.2

Defined benefit plans with PBOs in excess of plan assets
 
 
 
 
 
 
 
     PBOs
2.0

 
1.8

 
1.9

 
1.8

     Plan assets
1.5

 
1.3

 
1.5

 
1.2