Share-based compensation (Tables)

9 Months Ended

Sep. 30, 2018

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)	2018		2017		2018		2017
HEI consolidated
Share-based compensation expense 1	$	1.5	$	1.1	$	5.9	$	4.4
Income tax benefit	0.2		0.4		0.9		1.5
Hawaiian Electric consolidated
Share-based compensation expense 1	0.6		0.4		2.1		1.6
Income tax benefit	0.1		0.2		0.4		0.6

¹  For the three and nine months ended September 30, 2018 and 2017, the Company has not capitalized any share-based compensation.

Schedule of common stock granted to a nonemployee director under the 2011 Director Plan

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

	Three months ended September 30				Nine months ended September 30
(dollars in millions)	2018		2017		2018		2017
Shares granted	—		—		38,821		35,770
Fair value	$	—	$	—	$	1.3	$	1.2
Income tax benefit	—		—		0.3		0.5

Schedule of 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
	2018					2017					2018					2017
	Shares			(1)		Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, beginning of period	200,856			$	33.03	206,483			$	31.50	197,047			$	31.53	220,683			$	29.57
Granted	1,789			35.61		—			—		93,853			34.12		97,873			33.47
Vested	—			—		(687		)	24.48		(75,683		)	30.56		(89,681		)	28.84
Forfeited	(2,287		)	32.83		—			—		(14,859		)	32.35		(23,079		)	31.50
Outstanding, end of period	200,358			$	33.05	205,796			$	31.53	200,358			$	33.05	205,796			$	31.53
Total weighted-average grant-date fair value of shares granted (in millions)	$	0.1				$	—				$	3.2				$	3.3

(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

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

	Three months ended September 30									Nine months ended September 30
	2018					2017				2018					2017
	Shares			(1)		Shares		(1)		Shares			(1)		Shares			(1)
Outstanding, beginning of period	66,177			$	38.82	33,770		$	39.51	32,904			$	39.51	83,106			$	22.95
Granted	878			38.20		—		—		37,819			38.21		37,204			39.51
Vested (issued or unissued and cancelled)	—			—		—		—		—			—		(83,106		)	22.95
Forfeited	(1,490		)	38.85		—		—		(5,158		)	38.84		(3,434		)	39.51
Outstanding, end of period	65,565			$	38.81	33,770		$	39.51	65,565			$	38.81	33,770			$	39.51
Total weighted-average grant-date fair value of shares granted (in millions)	$	—				$	—			$	1.4				$	1.5

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

Schedule of Long-Term Incentive Program fair value awards granted

Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:

(dollars in thousands)	September 30, 2018			December 31, 2017
Unpaid principal balance	$	1,206,025		$	1,195,454
Weighted average note rate	3.98		%	3.94		%
Weighted average discount rate	10.0		%	10.0		%
Weighted average prepayment speed	7.0		%	9.0		%

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

	2018		2017
Risk-free interest rate	2.29	%	1.46	%
Expected life in years	3		3
Expected volatility	17.0	%	20.1	%
Range of expected volatility for Peer Group	15.1% to 26.2%		15.4% to 26.0%
Grant date fair value (per share)	$38.20		$39.51

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:

					Significant unobservable  input value (1)
($ in thousands)	Fair value		Valuation technique	Significant unobservable input	Range	Weighted Average
September 30, 2018
Home equity lines of credit	$	77	Fair value of collateral	Appraised value less 7% selling cost		N/A (2)
Total loans	$	77
December 31, 2017
Residential loans	$	613	Fair value of collateral	Appraised value less 7% selling cost	71-92%	84%
Commercial loans	2,008		Fair value of collateral	Appraised value	71-76%	75%
Total loans	$	2,621

(1) Represent percent of outstanding principal balance.

(2) N/A - Not applicable. There is one loan in each fair value measurement type.

Schedule of Long-Term Incentive Plan (LTIP) 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
	2018					2017				2018					2017
	Shares			(1)		Shares		(1)		Shares			(1)		Shares			(1)
Outstanding, beginning of period	264,707			$	33.79	135,078		$	33.47	131,616			$	33.47	109,816			$	25.18
Granted	3,511			35.58		—		—		151,277			34.12		148,818			33.47
Vested	—			—		—		—		—			—		(109,816		)	25.18
Forfeited	(5,958		)	33.80		—		—		(20,633		)	33.80		(13,740		)	33.48
Outstanding, end of period	262,260			$	33.82	135,078		$	33.47	262,260			$	33.82	135,078			$	33.47
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions)	$	0.1				$	—			$	5.2				$	5.0

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