XML 102 R48.htm IDEA: XBRL DOCUMENT v3.22.0.1
Retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [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 2021 and 2020 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheets as of December 31, 2021 and 2020 were as follows:
 20212020
(in thousands)Pension
benefits		Other
benefits		Pension
benefits		Other
benefits
HEI consolidated
Benefit obligation, January 1$2,624,530 $226,421 $2,278,283 $215,639 
Service cost81,432 2,827 73,387 2,537 
Interest cost75,361 6,122 81,335 7,407 
Actuarial (gains) losses(43,300)(8,527)275,973 9,785 
Participants contributions— 2,943 — 2,768 
Benefits paid and expenses(93,384)(11,635)(84,448)(11,715)
Benefit obligation, December 312,644,639 218,151 2,624,530 226,421 
Fair value of plan assets, January 12,089,491 219,873 1,799,200 200,831 
Actual return on plan assets271,443 28,130 302,566 27,678 
Employer contributions51,777 — 70,844 — 
Participants contributions— 2,943 — 2,768 
Benefits paid and expenses(91,966)(11,635)(83,119)(11,404)
Fair value of plan assets, December 312,320,745 239,311 2,089,491 219,873 
Accrued benefit asset (liability), December 31$(323,894)$21,160 $(535,039)$(6,548)
Other assets$23,675 $21,663 $25,851 $— 
Defined benefit pension and other postretirement benefit plans liability
(347,569)(503)(560,890)(6,548)
Accrued benefit asset (liability), December 31$(323,894)$21,160 $(535,039)$(6,548)
AOCI debit, January 1 (excluding impact of PUC D&Os)$557,564 $2,395 $503,821 $6,610 
Recognized during year – prior service credit (cost)— 1,533 (8)1,761 
Recognized during year – net actuarial loss(27,245)(203)(33,456)(208)
Occurring during year – net actuarial loss (gain)(182,520)(23,700)87,207 (5,768)
AOCI debit before cumulative impact of PUC D&Os, December 31
347,799 (19,975)557,564 2,395 
Cumulative impact of PUC D&Os(324,162)19,166 (534,594)(1,177)
AOCI debit/(credit), December 31$23,637 $(809)$22,970 $1,218 
Net actuarial loss (gain)$347,799 $(18,172)$557,564 $5,731 
Prior service gain— (1,803)— (3,336)
AOCI debit before cumulative impact of PUC D&Os, December 31
347,799 (19,975)557,564 2,395 
Cumulative impact of PUC D&Os(324,162)19,166 (534,594)(1,177)
AOCI debit/(credit), December 3123,637 (809)22,970 1,218 
Income taxes (benefits)(6,199)209 (5,988)(313)
AOCI debit/(credit), net of taxes (benefits), December 31$17,438 $(600)$16,982 $905 
As shown in the table above, as of December 31, 2021, the other postretirement benefit plans with APBOs in excess of plan assets are unfunded plans, and as of December 31, 2020, all of the other postretirement benefit plans had APBOs in excess of plan assets.
 20212020
(in thousands)Pension
benefits		Other
benefits		Pension
benefits		Other
benefits
Hawaiian Electric consolidated
Benefit obligation, January 1$2,440,758 $217,074 $2,110,904 $207,073 
Service cost79,463 2,802 71,604 2,515 
Interest cost70,235 5,875 75,484 7,103 
Actuarial (gains) losses(39,755)(7,779)260,102 9,151 
Participants contributions— 2,886 — 2,717 
Benefits paid and expenses(85,425)(11,388)(77,336)(11,485)
Transfers(332)— — — 
Benefit obligation, December 312,464,944 209,470 2,440,758 217,074 
Fair value of plan assets, January 11,909,730 216,315 1,640,417 197,564 
Actual return on plan assets266,922 27,712 276,453 27,207 
Employer contributions51,079 — 69,720 — 
Participants contributions— 2,886 — 2,717 
Benefits paid and expenses(84,852)(11,388)(76,860)(11,173)
Other(262)— — — 
Fair value of plan assets, December 312,142,617 235,525 1,909,730 216,315 
Accrued benefit asset (liability), December 31$(322,327)$26,055 $(531,028)$(759)
Other assets$— $26,055 $— $— 
Other liabilities (short-term)(547)— (535)(720)
Defined benefit pension and other postretirement benefit plans liability
(321,780)— (530,493)(39)
Accrued benefit asset (liability), December 31$(322,327)$26,055 $(531,028)$(759)
AOCI debit, January 1 (excluding impact of PUC D&Os)$538,521 $1,181 $478,078 $5,730 
Recognized during year – prior service credit (cost)— 1,530 (9)1,758 
Recognized during year – net actuarial loss(27,534)(206)(30,566)(207)
Occurring during year – net actuarial loss (gain)(181,342)(22,736)91,018 (6,100)
AOCI debit before cumulative impact of PUC D&Os, December 31
329,645 (20,231)538,521 1,181 
Cumulative impact of PUC D&Os(324,162)19,166 (534,594)(1,177)
AOCI debit/(credit), December 31$5,483 $(1,065)$3,927 $4 
Net actuarial loss (gain)$329,645 $(18,434)$538,521 $4,508 
Prior service gain— (1,797)— (3,327)
AOCI debit before cumulative impact of PUC D&Os, December 31
329,645 (20,231)538,521 1,181 
Cumulative impact of PUC D&Os(324,162)19,166 (534,594)(1,177)
AOCI debit/(credit), December 315,483 (1,065)3,927 4 
Income taxes (benefits)(1,412)274 (1,011)(1)
AOCI debit/(credit), net of taxes (benefits), December 31$4,071 $(791)$2,916 $3 
Schedule of asset allocation of plan assets
The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows:
 
Pension benefits1
Other benefits2
   Investment policy  Investment policy
December 3120212020Target
Range3
20212020Target
Range3
Assets held by category        
U.S. equity securities59 %58 %52 %
45-65%
58 %57 %52 %
45-65%
Non-U.S equity securities13 14 15 
5-25%
15 16 15 
5-25%
Fixed income securities 27 28 30 
20-40%
27 27 30 
20-40%
Private equity1 — 3 
0-5%
— — 3 
0-5%
 100 %100 %100 % 100 %100 %100 % 
1     Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2021 and 2020, nearly all of ASB’s pension assets were invested in fixed income securities.
2    Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits.
3    Broad range for equity securities is a minimum of 60% and a maximum of 80% for pension benefits and other benefits.
The fair values of the investments shown in the tables below represent the Company’s best estimates of the amounts that would be received upon sale of those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset. Those judgments are developed by the Company based on the best information available in the circumstances.
The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2021 and 2020.
Equity securities equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds (Level 1).  Equity securities, equity index and exchange-traded funds, U.S. Treasury fixed income securities and public mutual funds are valued at the closing price reported on the active market on which the individual securities or funds are traded.
Fixed income securities, preferred securities (Level 2).  Fixed income and preferred securities, other than those issued by the U.S. Treasury, are valued based on yields currently available on comparable securities of issuers with similar credit ratings.
Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows:
 Pension benefitsOther benefits
  Fair value measurements using Fair value measurements using
(in millions)December 31Quoted prices in active markets for identical assets
 (Level 1)		Significant other observable inputs
(Level 2)		December 31Quoted prices in active markets for identical assets
 (Level 1)		Significant other observable inputs
(Level 2)
2021      
U.S. equity securities$432 $431 $1 $53 $53 $— 
Non-U.S. equity securities188 188 — 24 24 — 
U.S. equity index and exchange-traded funds830 830 — 84 84 — 
Non-U.S. equity investments at net asset value (NAV)96 — — 12 — — 
   Total equity investments
1,546 1,449 1 173 161 — 
Fixed income securities and public mutual funds
393 146 247 58 56 2 
Fixed income investments at NAV
307 — — 5 — — 
   Total fixed income investments
700 146 247 63 56 2 
Private equity at NAV22 — — — — — 
Cash equivalents, fund and at NAV50 15 — 3 3 — 
Total2,318 $1,610 $248 239 $220 $2 
Cash, receivables and payables, net
3   —   
Fair value of plan assets
$2,321   $239   
2020      
U.S. equity securities$368 $368 $— $46 $46 $— 
Non-U.S. equity securities172 172 — 22 22 — 
U.S. equity index and exchange-traded funds734 734 — 77 77 — 
Non-U.S. equity investments at NAV102 — — 13 — — 
   Total equity investments
1,376 1,274 — 158 145 — 
Fixed income securities and public mutual funds
363 105 258 53 51 2 
Fixed income investments at NAV
278 — — 5 — — 
   Total fixed income investments
641 105 258 58 51 2 
Cash equivalents at NAV
68 25 — 4 3 — 
Total2,085 $1,404 $258 220 $199 $2 
Cash, receivables and payables, net
4   —   
Fair value of plan assets
$2,089   $220   
The fair value of investments measured at NAV presented in the table above is intended to permit reconciliation to the fair value of plan assets amounts.
The following table represents assets measured at NAV.
Pension benefitsOther benefits
Measured at NAVDecember 31Redemption frequency Redemption notice periodDecember 31Redemption frequency Redemption notice period
(in millions)
2021
Non-U.S. equity funds (a)$96 Daily-Monthly
5-30 days
$12 Daily-Monthly
5-30 days
Fixed income investments (b)
307 Daily
15 days
5 Daily
15 days
Private equity (c)22 NANA— NANA
Cash equivalents (d)35 Daily
0-1 day
— Daily
0-1 day
$460 $17 
2020
Non-U.S. equity funds (a)$102 Daily-Monthly
5-30 days
$13 Daily-Monthly
5-30 days
Fixed income investments (b)
278 Daily
15 days
5 Daily
15 days
Cash equivalents (d)43 Daily
0-1 day
1 Daily
0-1 day
$423 $19 
NA Not applicable
None of the investments presented in the tables above have unfunded commitments, other than private equity disclosed in (c) below.
(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, 2021 were: daily, 61% and monthly, 39%, and as of December 31, 2020 were daily, 62% and monthly, 38%. Redemption frequency for other benefits assets as of December 31, 2021 were: daily, 57% and monthly, 43% and as of December 31, 2020 were: daily, 58% and monthly, 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 investment in a private equity fund. The fund is valued as reported by the General Partner, based on the valuation of the underlying investments. As of December 31, 2021, the unfunded commitment of the private equity fund was $66 million; the fund does not allow redemptions but may be dissolved with six months written notice. The termination date of the fund is November 1, 2100, unless dissolved earlier.
(d)     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 benefitsOther benefits
December 31202120202019202120202019
Benefit obligation
Discount rate1
3.05 %2.92 %3.61 %3.07 %2.83 %3.52 %
Rate of compensation increase3.5 3.5 3.5 NA   NA   NA   
Net periodic pension/benefit cost (years ended)
Discount rate2
2.92 3.61 4.31 2.83 3.52 4.34 
Expected return on plan assets3
7.25 7.25 7.25 7.25 7.25 7.25 
Rate of compensation increase4
3.5 3.5 3.5 NA   NA   NA   
NA  Not applicable
1     HEI and the Utilities pension benefits discount rate only at December 31, 2021, 2020 and 2019. ASB’s pension benefits discount rate at December 31, 2021, 2020 and 2019 was 3.04%, 2.76% and 3.49%, respectively. All other disclosed rates apply to the Company and the Utilities.
2     ASB’s pension benefits discount rate for the year ended December 31, 2021 and 2020 was 2.76% and 3.49%. All other disclosed rates apply to the Company and the Utilities.
3     HEI and the Utilities’ plan assets only (gross return). For 2021, 2020 and 2019, ASB’s expected return on plan assets was 2.96%, 3.69% and 4.51%, respectively.
4     HEI 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. NA for ASB.
Schedule of components of net periodic benefit cost for consolidated HEI
The components of NPPC and NPBC were as follows:
 Pension benefitsOther benefits
(in thousands)202120202019202120202019
HEI consolidated
Service cost$81,432 $73,387 $62,135 $2,827 $2,537 $2,209 
Interest cost75,361 81,335 84,267 6,122 7,407 8,004 
Expected return on plan assets(132,223)(113,800)(111,989)(12,957)(12,124)(12,356)
Amortization of net prior service (gain) cost— 8 (42)(1,533)(1,761)(1,806)
Amortization of net actuarial losses
27,245 33,456 15,479 203 208 (13)
Net periodic pension/benefit cost51,815 74,386 49,850 (5,338)(3,733)(3,962)
Impact of PUC D&Os27,963 20,997 48,143 4,839 3,179 3,258 
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$79,778 $95,383 $97,993 $(499)$(554)$(704)
Hawaiian Electric consolidated
Service cost
$79,463 $71,604 $60,461 $2,802 $2,515 $2,191 
Interest cost
70,235 75,484 77,851 5,875 7,103 7,673 
Expected return on plan assets
(125,404)(107,369)(104,632)(12,755)(11,957)(12,180)
Amortization of net prior service (gain) cost
— 9 7 (1,530)(1,758)(1,803)
Amortization of net actuarial losses
27,534 30,566 14,658 206 207 — 
Net periodic pension/benefit cost51,828 70,294 48,345 (5,402)(3,890)(4,119)
Impact of PUC D&Os
27,963 20,997 48,143 4,839 3,179 3,258 
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$79,791 $91,291 $96,488 $(563)$(711)$(861)
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), and pension plans with ABOs and PBOs in excess of plan assets were as follows:
HEI consolidatedHawaiian Electric consolidated
December 312021202020212020
(in billions)
Defined benefit plans - ABOs
$2.3 $2.3 $2.1 $2.1 
Defined benefit plans with ABO in excess of plan assets
     ABOs
— 2.1 — 2.1 
     Fair value of plan assets
— 2.0 — 1.9 
Defined benefit plans with PBOs in excess of plan assets
     PBOs
2.5 2.5 2.5 2.4 
     Fair value of plan assets
2.2 2.0 2.1 1.9