SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2019

Condensed Financial Information 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	2019			2018
(dollars in thousands)
Assets
Cash and cash equivalents	$	953		$	3,742
Accounts receivable	779			2,604
Notes receivable from subsidiaries	22,598			20,789
Property, plant and equipment, net	2,931			3,456
Deferred income tax assets	10,754			10,147
Other assets and intercompany receivables	21,770			11,963
Investments in subsidiaries, at equity	2,761,802			2,605,038
Total assets	$	2,821,587		$	2,657,739
Liabilities and shareholders’ equity
Liabilities
Accounts payable	$	1,509		$	2,001
Interest payable	3,041			3,476
Notes payable to subsidiaries	—			34
Commercial paper	96,723			48,992
Long-term debt, net	399,064			398,874
Retirement benefits liability	29,367			29,565
Other	11,623			12,517
Total liabilities	541,327			495,459
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: 108,973,328 shares and 108,879,245 shares at December 31, 2019 and 2018, respectively	1,678,257			1,669,267
Retained earnings	622,042			543,623
Accumulated other comprehensive loss	(20,039		)	(50,610		)
Total shareholders’ equity	2,280,260			2,162,280
Total liabilities and shareholders’ equity	$	2,821,587		$	2,657,739

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF INCOME

Years ended December 31	2019		2018		2017
(in thousands)
Revenues	$	777	$	429	$	798
Equity in net income of subsidiaries	246,005		226,972		187,097
Expenses:
Operating, administrative and general	19,195		19,515		16,578
Depreciation of property, plant and equipment	570		597		548
Taxes, other than income taxes	570		509		496
Total expenses	20,335		20,621		17,622
Income before interest expense and income (taxes) benefits	226,447		206,780		170,273
Retirement defined benefits expense—other than service costs	442		674		1,119
Interest expense	17,930		12,664		9,389
Income before income benefits	208,075		193,442		159,765
Income benefits	9,807		8,332		5,532
Net income	$	217,882	$	201,774	$	165,297

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	2019			2018			2017
(in thousands)
Net cash provided by operating activities	$	131,120		$	135,470		$	99,600
Cash flows from investing activities
Increase in note receivable from subsidiary	(1,187		)	(20,596		)	(70,000		)
Decrease in note receivable from subsidiary	—			—			66,391
Capital expenditures	(47		)	(143		)	(317		)
Investments in subsidiaries	(38,935		)	(71,970		)	(22,353		)
Other	(1,001		)	140			(177		)
Net cash used in investing activities	(41,170		)	(92,569		)	(26,456		)
Cash flows from financing activities
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less	—			(30		)	98
Net increase (decrease) in short-term borrowings with original maturities of three months or less	47,731			(14,000		)	62,993
Proceeds from issuance of short-term debt	—			—			125,000
Repayment of short-term debt	—			(50,000		)	(75,000		)
Proceeds from issuance of long-term debt	—			150,000			150,000
Repayment of long-term debt	—			—			(200,000		)
Withheld shares for employee taxes on vested share-based compensation	(997		)	(996		)	(3,828		)
Common stock dividends	(139,463		)	(134,987		)	(134,873		)
Other	(10		)	(848		)	(756		)
Net cash used in financing activities	(92,739		)	(50,861		)	(76,366		)
Net decrease in cash and equivalents	(2,789		)	(7,960		)	(3,222		)
Cash and cash equivalents, January 1	3,742			11,702			14,924
Cash and cash equivalents, December 31	$	953		$	3,742		$	11,702

NOTES TO CONDENSED FINANCIAL INFORMATION

Basis of Presentation

The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. All HEI subsidiaries are reflected in the Condensed Financial Statements under the equity method. Income taxes for equity method investments are included in “Equity in net income of subsidiaries.”

Long-term debt

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

December 31	2019			2018
(dollars in thousands)
HEI 2.99% term loan, due 2022	$	150,000		$	150,000
HEI 5.67% senior note, due 2021	50,000			50,000
HEI 3.99% senior note, due 2023	50,000			50,000
HEI 4.58% senior notes, due 2025	50,000			50,000
HEI 4.72% senior notes, due 2028	100,000			100,000
Less unamortized debt issuance costs	(936		)	(1,126		)
Long-term debt, net	$	399,064		$	398,874

The aggregate payments of principal required within five years after December 31, 2019 on long-term debt are nil in 2020, $50 million in 2021, $150 million in 2022, $50 million in 2023, nil for 2024, and $150 million thereafter.

Indemnities

As of December 31, 2019, 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 $0.6 million self-insured United States Longshore & Harbor bond and a $0.7 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 HEI subsidiaries

In 2019, 2018 and 2017, cash dividends received from subsidiaries were $157 million, $154 million and $125 million, respectively.

Supplemental disclosures of noncash activities

In 2019, 2018 and 2017, $2.3 million, $2.3 million and $2.8 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 2019, 2018 and 2017, $2.3 million, $2.3 million and $2.8 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.

In 2017, $3.6 million of HEI notes receivable from Hamakua Energy, LLC were converted to equity in a noncash transaction.

Under the HEI DRIP, common stock dividends reinvested by shareholders in HEI common stock in noncash transactions was immaterial for 2019, 2018 and 2017 as HEI satisfied the share purchase requirements of the DRIP in 2019, 2018 and 2017 through open market purchases of its common stock rather than new issuances.