Consolidating financial information (unaudited) - HECO (Hawaiian Electric Company and Subsidiaries)

12 Months Ended

Dec. 31, 2011

Hawaiian Electric Company and Subsidiaries

Consolidating financial information (unaudited)

16.  Consolidating financial information (unaudited)

HECO is not required to provide separate financial statements or other disclosures concerning HELCO and MECO to holders of the 2004 Debentures issued by HELCO and MECO to Trust III since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by HECO. Consolidating information is provided below for these and other HECO subsidiaries for the periods ended and as of the dates indicated.

HECO also unconditionally guarantees HELCO’s and MECO’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of HELCO and MECO and (b) relating to the trust preferred securities of Trust III (see Note 3 above). HECO is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on HELCO’s and MECO’s preferred stock if the respective subsidiary is unable to make such payments.

Consolidating balance sheet

	December 31, 2011
(in thousands)	HECO	HELCO	MECO	RHI	UBC	Reclassi- fications and Elimina- tions		HECO Consolidated
Assets
Utility plant, at cost
Land	$      43,316	5,182	3,016	–	–	–		$      51,514
Plant and equipment	3,091,908	1,048,599	911,520	–	–	–		5,052,027
Less accumulated depreciation	(1,141,839)	(414,769)	(410,286)	–	–	–		(1,966,894)
Construction in progress	117,625	8,144	13,069	–	–	–		138,838
Net utility plant	2,111,010	647,156	517,319	–	–	–		3,275,485
Investment in wholly owned subsidiaries, at equity	517,216	–	–	–	–	(517,216)	[2]	–
Current assets
Cash and equivalents	44,819	3,383	496	82	26	–		48,806
Advances to affiliates	–	46,150	18,500	–	–	(64,650)	[1]	–
Customer accounts receivable, net	130,190	28,602	24,536	–	–	–		183,328
Accrued unbilled revenues, net	103,328	18,499	15,999	–	–	–		137,826
Other accounts receivable, net	8,987	1,186	3,008	–	–	(4,558)	[1]	8,623
Fuel oil stock, at average cost	128,037	19,217	24,294	–	–	–		171,548
Materials & supplies, at average cost	25,096	4,700	13,392	–	–	–		43,188
Prepayments and other	21,135	6,575	7,033	–	–	(141)	[3]	34,602
Regulatory assets	18,038	1,115	1,130	–	–	–		20,283
Total current assets	479,630	129,427	108,388	82	26	(69,349)		648,204
Other long-term assets
Regulatory assets	478,851	86,394	83,861	–	–	–		649,106
Unamortized debt expense	8,446	2,464	1,876	–	–	–		12,786
Other	58,672	11,843	15,846	–	–	–		86,361
Total other long-term assets	545,969	100,701	101,583	–	–	–		748,253
	$ 3,653,825	877,284	727,290	82	26	(586,565)		$ 4,671,942
Capitalization and liabilities
Capitalization
Common stock equity	$ 1,406,084	281,055	236,054	81	26	(517,216)	[2]	$ 1,406,084
Cumulative preferred stock–not subject to mandatory redemption	22,293	7,000	5,000	–	–	–		34,293
Long-term debt, net	629,757	204,110	166,703	–	–	–		1,000,570
Total capitalization	2,058,134	492,165	407,757	81	26	(517,216)		2,440,947
Current liabilities
Current portion of long-term debt	42,580	7,200	7,720	–	–	–		57,500
Short-term borrowings-affiliate	64,650	–	–	–	–	(64,650)	[1]	–
Accounts payable	140,044	29,616	18,920	–	–	–		188,580
Interest and preferred dividends payable	12,648	4,074	2,762	–	–	(1)	[1]	19,483
Taxes accrued	152,315	37,638	34,956	–	–	(141)	[3]	224,768
Other	50,828	9,478	13,603	1	–	(4,557)	[1]	69,353
Total current liabilities	463,065	88,006	77,961	1	–	(69,349)		559,684
Deferred credits and other liabilities
Deferred income taxes	236,890	61,044	39,929	–	–	–		337,863
Regulatory liabilities	215,401	62,049	38,016	–	–	–		315,466
Unamortized tax credits	34,877	12,951	12,786	–	–	–		60,614
Retirement benefits liability	368,245	62,036	64,840	–	–	–		495,121
Other	72,418	22,391	11,235	–	–	–		106,044
Total deferred credits and other liabilities	927,831	220,471	166,806	–	–	–		1,315,108
Contributions in aid of construction	204,795	76,642	74,766	–	–	–		356,203
	$ 3,653,825	877,284	727,290	82	26	(586,565)		$ 4,671,942

Consolidating balance sheet

	December 31, 2010
(in thousands)	HECO	HELCO	MECO	RHI	UBC	Reclassi- fications and Elimina- tions		HECO Consolidated
Assets
Utility plant, at cost
Land	$    43,240	5,108	3,016	–	–	–		$     51,364
Plant and equipment	2,984,887	1,030,520	881,567	–	–	–		4,896,974
Less accumulated depreciation	(1,134,423)	(408,704)	(397,932)	–	–	–		(1,941,059)
Construction in progress	78,934	9,828	12,800	–	–	–		101,562
Net utility plant	1,972,638	636,752	499,451	–	–	–		3,108,841
Investment in wholly owned subsidiaries, at equity	500,801	–	–	–	–	(500,801)	[2]	–
Current assets
Cash and equivalents	121,019	1,229	594	89	5	–		122,936
Advances to affiliates	–	30,950	29,500	–	–	(60,450)	[1]	–
Customer accounts receivable, net	93,474	23,484	21,213	–	–	–		138,171
Accrued unbilled revenues, net	71,712	16,018	16,654	–	–	–		104,384
Other accounts receivable, net	11,536	3,319	668	–	–	(6,147)	[1]	9,376
Fuel oil stock, at average cost	121,280	15,751	15,674	–	–	–		152,705
Materials & supplies, at average cost	18,890	4,498	13,329	–	–	–		36,717
Prepayments and other	36,974	9,825	8,417	–	–	–		55,216
Regulatory assets	5,294	1,064	991	–	–	–		7,349
Total current assets	480,179	106,138	107,040	89	5	(66,597)		626,854
Other long-term assets
Regulatory assets	352,038	61,051	57,892	–	–	–		470,981
Unamortized debt expense	9,240	2,681	2,109	–	–	–		14,030
Other	41,236	8,257	15,481	–	–	–		64,974
Total other long-term assets	402,514	71,989	75,482	–	–	–		549,985
	$ 3,356,132	814,879	681,973	89	5	(567,398)		$ 4,285,680
Capitalization and liabilities
Capitalization
Common stock equity	$ 1,337,398	270,573	230,137	86	5	(500,801)	[2]	$ 1,337,398
Cumulative preferred stock–not subject to mandatory redemption	22,293	7,000	5,000	–	–	–		34,293
Long-term debt, net	672,268	211,279	174,395	–	–	–		1,057,942
Total capitalization	2,031,959	488,852	409,532	86	5	(500,801)		2,429,633
Current liabilities
Short-term borrowings-affiliate	60,450	–	–	–	–	(60,450)	[1]	–
Accounts payable	135,739	22,888	20,332	–	–	–		178,959
Interest and preferred dividends payable	13,648	4,196	2,762	–	–	(3)	[1]	20,603
Taxes accrued	116,840	31,229	27,891	–	–	–		175,960
Other	35,784	13,065	13,646	3	–	(6,144)	[1]	56,354
Total current liabilities	362,461	71,378	64,631	3	–	(66,597)		431,876
Deferred credits and other liabilities
Deferred income taxes	198,753	44,971	25,562	–	–	–		269,286
Regulatory liabilities	201,587	56,190	39,020	–	–	–		296,797
Unamortized tax credits	33,661	12,857	12,292	–	–	–		58,810
Retirement benefits liability	271,499	39,811	44,534	–	–	–		355,844
Other	66,898	28,739	12,433	–	–	–		108,070
Total deferred credits and other liabilities	772,398	182,568	133,841	–	–	–		1,088,807
Contributions in aid of construction	189,314	72,081	73,969	–	–	–		335,364
	$ 3,356,132	814,879	681,973	89	5	(567,398)		$ 4,285,680

Consolidating statement of income

	Year ended December 31, 2011
(in thousands)	HECO	HELCO	MECO	RHI	UBC	Reclassi- fications and Elimina- tions		HECO Consolidated
Operating revenues	$2,110,249	444,266	419,249	–	–	–		$2,973,764
Operating expenses
Fuel oil	909,172	121,839	234,115	–	–	–		1,265,126
Purchased power	522,503	137,453	29,696	–	–	–		689,652
Other operation	183,633	36,318	37,114	–	–	–		257,065
Maintenance	81,583	19,668	19,968	–	–	–		121,219
Depreciation	89,324	32,767	20,884	–	–	–		142,975
Taxes, other than income taxes	196,170	41,028	39,306	–	–	–		276,504
Income taxes	37,652	16,863	11,473	–	–	–		65,988
	2,020,037	405,936	392,556	–	–	–		2,818,529
Operating income	90,212	38,330	26,693	–	–	–		155,235
Other income (deductions)
Allowance for equity funds used during construction	4,572	592	800	–	–	–		5,964
Equity in earnings of subsidiaries	44,616	–	–	–	–	(44,616)	[2]	–
Impairment of utility plant	(5,496)	–	–	–	–	–		(5,496)
Other, net	2,845	569	433	(5)	(4)	(27)	[1]	3,811
	46,537	1,161	1,233	(5)	(4)	(44,643)		4,279
Interest and other charges
Interest on long-term debt	36,522	11,938	9,072	–	–	–		57,532
Amortization of net bond premium and expense	2,023	554	504	–	–	–		3,081
Other interest charges	(921)	62	304	–	–	(27)	[1]	(582)
Allowance for borrowed funds used during construction	(1,941)	(248)	(309)	–	–	–		(2,498)
	35,683	12,306	9,571	–	–	(27)		57,533
Net income (loss)	101,066	27,185	18,355	(5)	(4)	(44,616)		101,981
Preferred stock of subsidiaries	–	534	381	–	–	–		915
Net income (loss) attributable to HECO	101,066	26,651	17,974	(5)	(4)	(44,616)		101,066
Preferred stock dividends of HECO	1,080	–	–	–	–	–		1,080
Net income (loss) for common stock	$    99,986	26,651	17,974	(5)	(4)	(44,616)		$   99,986

Consolidating statement of income

	Year ended December 31, 2010
(in thousands)	HECO	HELCO	MECO	RHI	UBC	Reclassi- fications and Elimina- tions		HECO Consolidated
Operating revenues	$1,649,608	372,633	345,200	–	–	–		$2,367,441
Operating expenses
Fuel oil	631,159	93,480	175,769	–	–	–		900,408
Purchased power	412,382	113,031	23,387	–	–	–		548,800
Other operation	180,095	34,273	36,659	–	–	–		251,027
Maintenance	76,792	23,800	26,895	–	–	–		127,487
Depreciation	86,932	36,483	26,293	–	–	–		149,708
Taxes, other than income taxes	155,084	34,664	32,369	–	–	–		222,117
Income taxes	32,307	10,341	5,405	–	–	–		48,053
	1,574,751	346,072	326,777	–	–	–		2,247,600
Operating income	74,857	26,561	18,423	–	–	–		119,841
Other income
Allowance for equity funds used during construction	4,956	507	553	–	–	–		6,016
Equity in earnings of subsidiaries	25,600	–	–	–	–	(25,600)	[2]	–
Other, net	9,190	2,356	231	(8)	(12)	(78)	[1]	11,679
	39,746	2,863	784	(8)	(12)	(25,678)		17,695
Interest and other charges
Interest on long-term debt	36,522	11,938	9,072	–	–	–		57,532
Amortization of net bond premium and expense	1,942	537	496	–	–	–		2,975
Other interest charges	553	65	463	–	–	(78)	[1]	1,003
Allowance for borrowed funds used during construction	(2,083)	(258)	(217)	–	–	–		(2,558)
	36,934	12,282	9,814	–	–	(78)		58,952
Net income (loss)	77,669	17,142	9,393	(8)	(12)	(25,600)		78,584
Preferred stock of subsidiaries	–	534	381	–	–	–		915
Net income (loss) attributable to HECO	77,669	16,608	9,012	(8)	(12)	(25,600)		77,669
Preferred stock dividends of HECO	1,080	–	–	–	–	–		1,080
Net income (loss) for common stock	$    76,589	16,608	9,012	(8)	(12)	(25,600)		$   76,589

Consolidating statement of income

	Year ended December 31, 2009
(in thousands)	HECO	HELCO	MECO	RHI	UBC	Reclassi- fications and Elimina- tions		HECO Consolidated
Operating revenues	$1,384,885	343,943	297,844	–	–	–		$2,026,672
Operating expenses
Fuel oil	460,070	74,403	137,497	–	–	–		671,970
Purchased power	367,110	112,640	20,054	–	–	–		499,804
Other operation	174,573	36,998	36,944	–	–	–		248,515
Maintenance	65,910	21,391	20,230	–	–	–		107,531
Depreciation	82,031	33,005	29,497	–	–	–		144,533
Taxes, other than income taxes	131,367	32,219	28,113	–	–	–		191,699
Income taxes	32,538	9,527	6,147	–	–	–		48,212
	1,313,599	320,183	278,482	–	–	–		1,912,264
Operating income	71,286	23,760	19,362	–	–	–		114,408
Other income
Allowance for equity funds used during construction	9,945	1,621	656	–	–	–		12,222
Equity in earnings of subsidiaries	25,825	–	–	–	–	(25,825)	[2]	–
Other, net	6,591	1,126	350	(11)	(149)	(420)	[1]	7,487
	42,361	2,747	1,006	(11)	(149)	(26,245)		19,709
Interest and other charges
Interest on long-term debt	33,109	9,639	9,072	–	–	–		51,820
Amortization of net bond premium and expense	2,174	602	478	–	–	–		3,254
Other interest charges	2,135	673	482	–	–	(420)	[1]	2,870
Allowance for borrowed funds used during construction	(4,297)	(702)	(269)	–	–	–		(5,268)
	33,121	10,212	9,763	–	–	(420)		52,676
Net income (loss)	80,526	16,295	10,605	(11)	(149)	(25,825)		81,441
Preferred stock dividends of subsidiaries	–	534	381	–	–	–		915
Net income (loss) attributable to HECO	80,526	15,761	10,224	(11)	(149)	(25,825)		80,526
Preferred stock dividends of HECO	1,080	–	–	–	–	–		1,080
Net income (loss) for common stock	$    79,446	15,761	10,224	(11)	(149)	(25,825)		$   79,446

Consolidating Statements of Changes in Common Stock Equity

(in thousands)	HECO		HELCO		MECO		RHI		UBC		Reclassi- ficationsandElimina-tions		HECOConsoli-dated
Balance, December 31, 2008	$1,188,842		221,405		215,382		105		141		(437,033	)	$1,188,842
Comprehensive income:
Net income (loss) for common stock	79,446		15,761		10,224		(11	)	(149	)	(25,825	)	79,446
Retirement benefit plans:
Net transition asset arising during the period, net of taxes of $4,172	6,549		–		–		–		–		–		6,549
Prior service credit arising during the period, net of taxes of $922	1,446		–		–		–		–		–		1,446
Net gains arising during the period, net of taxes of $36,990	58,081		9,942		6,928		–		–		(16,870	)	58,081
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $6,250	9,811		1,601		1,325		–		–		(2,926	)	9,811
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes of $48,251	(75,756	)	(11,531	)	(8,276	)	–		–		19,807		(75,756	)
Comprehensive income (loss)	79,577		15,773		10,201		(11	)	(149	)	(25,814	)	79,577
Issuance of common stock, net of expenses	92,989		3,398		–		–		25		(3,423	)	92,989
Common stock dividends	(55,000	)	–		(4,264	)	–		–		4,264		(55,000	)
Balance, December 31, 2009	1,306,408		240,576		221,319		94		17		(462,006	)	1,306,408
Comprehensive income:
Net income (loss) for common stock	76,589		16,608		9,012		(8	)	(12	)	(25,600	)	76,589
Retirement benefit plans:
Prior service credit arising during the period, net of taxes of $3,001	4,712		2,679		2,033		–		–		(4,712	)	4,712
Net gains arising during the period, net of tax benefits of $27,408	(43,031	)	(6,131	)	(5,601	)	–		–		11,732		(43,031	)
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $2,387	3,747		759		566		–		–		(1,325	)	3,747
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits of $21,336	33,499		2,617		2,959		–		–		(5,576	)	33,499
Comprehensive income (loss)	75,516		16,532		8,969		(8	)	(12	)	(25,481	)	75,516
Issuance of common stock, net of expenses	4,243		22,948		2,850		–		–		(25,798	)	4,243
Common stock dividends	(48,769	)	(9,483	)	(3,001	)	–		–		12,484		(48,769	)
Balance, December 31, 2010	$1,337,398		270,573		230,137		86		5		(500,801	)	$1,337,398
Comprehensive income:
Net income (loss) for common stock	99,986		26,651		17,974		(5	)	(4	)	(44,616	)	99,986
Retirement benefit plans:
Prior service credit arising during the period, net of taxes of $4,408	6,921		1,419		1,239		–		–		(2,658	)	6,921
Net gains arising during the period, net of tax benefits of $74,346	(116,726	)	(18,224	)	(16,816	)	–		–		35,040		(116,726	)
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $5,332	8,372		1,324		1,158		–		–		(2,482	)	8,372
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits of $64,134	100,692		15,436		14,366		–		–		(29,802	)	100,692
Comprehensive income (loss)	99,245		26,606		17,921		(5	)	(4	)	(44,518	)	99,245
Issuance of common stock, net of expenses	39,999		–		–		–		25		(25	)	39,999
Common stock dividends	(70,558	)	(16,124	)	(12,004	)	–		–		28,128		(70,558	)
Balance, December 31, 2011	$1,406,084		281,055		236,054		81		26		(517,216	)	$1,406,084

Consolidating statement of cash flows

	Year ended December 31, 2011
(in thousands)	HECO		HELCO		MECO		RHI		UBC		Elimination addition to (deduction from) cash flows		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$  101,066		27,185		18,355		(5	)	(4	)	(44,616	)    [2]	$ 101,981
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings	(44,716	)	–		–		–		–		44,616	[2]	(100	)
Common stock dividends received from subsidiaries	28,228		–		–		–		–		(28,128	)    [2]	100
Depreciation of property, plant and equipment	89,324		32,767		20,884		–		–		–		142,975
Other amortization	9,890		2,528		4,960		–		–		–		17,378
Impairment of utility plant	9,215		–		–		–		–		–		9,215
Changes in deferred income taxes	38,548		16,101		14,442		–		–		–		69,091
Changes in tax credits, net	1,464		117		506		–		–		–		2,087
Allowance for equity funds used during construction	(4,572	)	(592	)	(800	)	–		–		–		(5,964	)
Decrease in cash overdraft	–		(2,527	)	(161	)	–		–		–		(2,688	)
Changes in assets and liabilities:
Increase in accounts receivable	(34,167	)	(2,985	)	(5,663	)	–		–		(1,589	)    [1]	(44,404	)
Decrease (Increase) in accrued unbilled revenues	(31,616	)	(2,481	)	655		–		–		–		(33,442	)
Increase in fuel oil stock	(6,757	)	(3,466	)	(8,620	)	–		–		–		(18,843	)
Increase in materials and supplies	(6,206	)	(202	)	(63	)	–		–		–		(6,471	)
Increase in regulatory assets	(31,774	)	(2,025	)	(6,333	)	–		–		–		(40,132	)
Increase (decrease) in accounts payable	(34,515	)	4,391		(5,691	)	–		–		–		(35,815	)
Changes in prepaid and accrued income taxes and revenue taxes	51,593		9,641		8,502		–		–		–		69,736
Contributions to defined benefit pension and other postretirement benefit plans	(54,183	)	(9,191	)	(9,802	)	–		–		–		(73,176	)
Changes in other assets and liabilities	16,312		(7,174	)	(859	)	(2	)	–		1,589	[2]	9,866
Net cash provided by (used in) operating activities	97,134		62,087		30,312		(7	)	(4	)	(28,128	)	161,394
Cash flows from investing activities:
Capital expenditures	(160,528	)	(34,230	)	(31,264	)	–		–		–		(226,022	)
Contributions in aid of construction	15,003		6,271		2,260		–		–		–		23,534
Advances from (to) affiliates	–		(15,200	)	11,000		–		–		4,200	[1]	–
Other	77		–		–		–		–		–		77
Investment in consolidated subsidiary	(25	)	–		–		–		–		25	[2]	–
Net cash used in investing activities	(145,473	)	(43,159	)	(18,004	)	–		–		4,225		(202,411	)
Cash flows from financing activities:
Common stock dividends	(70,558	)	(16,124	)	(12,004	)	–		–		28,128	[2]	(70,558	)
Preferred stock dividends of HECO and subsidiaries	(1,080	)	(534	)	(381	)	–		–		–		(1,995	)
Proceeds from issuance of common stock	40,000		–		–		–		25		(25	)    [2]	40,000
Net increase in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	4,200		–		–		–		–		(4,200	)    [1]	–
Other	(423	)	(116	)	(21	)	–		–		–		(560	)
Net cash provided by (used in) financing activities	(27,861	)	(16,774	)	(12,406	)	–		25		23,903		(33,113	)
Net increase (decrease) in cash and cash equivalents	(76,200	)	2,154		(98	)	(7	)	21		–		(74,130	)
Cash and cash equivalents, beginning of year	121,019		1,229		594		89		5		–		122,936
Cash and cash equivalents, end of year	$  44,819		3,383		496		82		26		–		$   48,806

Consolidating statement of cash flows

	Year ended December 31, 2010
(in thousands)	HECO		HELCO		MECO		RHI		UBC		Elimination addition to (deduction from) cash flows		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$  77,669		17,142		9,393		(8	)	(12	)	(25,600	)    [2]	$   78,584
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings	(25,700	)	–		–		–		–		25,600	[2]	(100	)
Common stock dividends received from subsidiaries	12,584		–		–		–		–		(12,484	)    [2]	100
Depreciation of property, plant and equipment	86,932		36,483		26,293		–		–		–		149,708
Other amortization	4,958		3,410		(643	)	–		–		–		7,725
Changes in deferred income taxes	62,089		20,939		12,657		–		–		–		95,685
Changes in tax credits, net	2,796		100		(55	)	–		–		–		2,841
Allowance for equity funds used during construction	(4,956	)	(507	)	(553	)	–		–		–		(6,016	)
Decrease in cash overdraft	–		–		(141	)	–		–		–		(141	)
Changes in assets and liabilities:
Increase in accounts receivable	(9,678	)	(7	)	(1,145	)	–		–		5,018	[1]	(5,812	)
Increase in accrued unbilled revenues	(13,690	)	(2,370	)	(4,048	)	–		–		–		(20,108	)
Decrease (increase) in fuel oil stock	(71,433	)	(3,111	)	500		–		–		–		(74,044	)
Decrease (increase) in materials and supplies	(512	)	(492	)	195		–		–		–		(809	)
Increase in regulatory assets	(812	)	(1,652	)	(472	)	–		–		–		(2,936	)
Increase in accounts payable	21,378		1,438		2,576		–		–		–		25,392
Changes in prepaid and accrued income taxes and revenue taxes	(8,647	)	(22	)	(1,501	)	–		–		–		(10,170	)
Contributions to defined benefit pension and other postretirement benefit plans	(21,003	)	(4,981	)	(5,084	)	–		–		–		(31,068	)
Changes in other assets and liabilities	38,009		62		5,908		(1	)	(2	)	(5,018	)    [2]	38,958
Net cash provided by (used in) operating activities	149,984		66,432		43,880		(9	)	(14	)	(12,484	)	247,789
Cash flows from investing activities:
Capital expenditures	(112,448	)	(35,146	)	(26,750	)	–		–		–		(174,344	)
Contributions in aid of construction	14,030		6,359		2,166		–		–		–		22,555
Advances from (to) affiliates	20,100		(30,950	)	(18,500	)	–		–		29,350	[1]	–
Other	1,327		–		–		–		–		–		1,327
Investment in consolidated subsidiary	(25,800	)	–		–		–		–		25,800	[2]	–
Net cash used in investing activities	(102,791	)	(59,737	)	(43,084	)	–		–		55,150		(150,462	)
Cash flows from financing activities:
Common stock dividends	(48,769	)	(9,483	)	(3,001	)	–		–		12,484	[2]	(48,769	)
Preferred stock dividends of HECO and subsidiaries	(1,080	)	(534	)	(381	)	–		–		–		(1,995	)
Proceeds from issuance of common stock	4,250		22,950		2,850		–		–		(25,800	)    [2]	4,250
Net increase (decrease) in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	49,450		(20,100	)	–		–		–		(29,350	)    [1]	–
Other	(1,006	)	(305	)	(144	)	–		–		–		(1,455	)
Net cash provided by (used in) financing activities	2,845		(7,472	)	(676	)	–		–		(42,666	)	(47,969	)
Net increase (decrease) in cash and cash equivalents	50,038		(777	)	120		(9	)	(14	)	–		49,358
Cash and cash equivalents, beginning of year	70,981		2,006		474		98		19		–		73,578
Cash and cash equivalents, end of year	$  121,019		1,229		594		89		5		–		$   122,936

Consolidating statement of cash flows

	Year ended December 31, 2009
(in thousands)	HECO		HELCO		MECO		RHI		UBC		Elimination addition to (deduction from) cash flows		HECO Consolidated
Cash flows from operating activities:
Net income	$  80,526		16,295		10,605		(11	)	(149	)	(25,825	)    [2]	$    81,441
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings	(25,925	)	–		–		–		–		25,825	[2]	(100	)
Common stock dividends received from subsidiaries	4,364		–		–		–		–		(4,264	)    [2]	100
Depreciation of property, plant and equipment	82,031		33,005		29,497		–		–		–		144,533
Other amortization	4,177		3,421		2,447		–		–		–		10,045
Changes in deferred income taxes	6,539		6,236		1,987		–		–		–		14,762
Changes in tax credits, net	(464	)	(443	)	(425	)	–		–		–		(1,332	)
Allowance for equity funds used during construction	(9,945	)	(1,621	)	(656	)	–		–		–		(12,222	)
Changes in assets and liabilities:
Decrease in accounts receivable	18,375		7,529		4,997		–		11		1,693	[1]	32,605
Decrease in accrued unbilled revenues	16,635		4,228		1,405		–		–		–		22,268
Decrease (increase) in fuel oil stock	3,699		(2,314	)	(2,331	)	–		–		–		(946	)
Decrease (increase) in materials and supplies	(1,795	)	360		59		–		–		–		(1,376	)
Increase in regulatory assets	(9,542	)	(3,860	)	(4,195	)	–		–		–		(17,597	)
Increase (decrease) in accounts payable	2,744		(8,877	)	(32	)	–		–		–		(6,165	)
Changes in prepaid and accrued income taxes and revenue taxes	(43,210	)	(6,759	)	(11,982	)	–		–		–		(61,951	)
Contributions to defined benefit pension and other postretirement benefit plans	(8,581	)	(7,793	)	(7,712	)	–		–		–		(24,086	)
Changes in other assets and liabilities	24,311		(4,235	)	3,150		(14	)	(4	)	(1,693	)    [2]	21,515
Net cash provided by (used in) operating activities	143,939		35,172		26,814		(25	)	(142	)	(4,264	)	201,494
Cash flows from investing activities:
Capital expenditures	(192,813	)	(67,525	)	(26,107	)	–		–		–		(286,445	)
Contributions in aid of construction	5,348		7,061		1,761		–		–		–		14,170
Advances from (to) affiliates	38,500		–		1,000		–		–		(39,500	)    [1]	–
Other	221		–		–		–		119		–		340
Investment in consolidated subsidiary	(25	)	–		–		–		–		25	[2]	–
Net cash provided by (used in) investing activities	(148,769	)	(60,464	)	(23,346	)	–		119		(39,475	)	(271,935	)
Cash flows from financing activities:
Common stock dividends	(55,000	)	–		(4,264	)	–		–		4,264	[2]	(55,000	)
Preferred stock dividends of HECO and subsidiaries	(1,080	)	(534	)	(381	)	–		–		–		(1,995	)
Proceeds from issuance of long-term debt	90,000		63,186		–		–		–		–		153,186
Proceeds from issuance of common stock	61,914		–		–		–		25		(25	)    [2]	61,914
Net decrease in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	(11,464	)	(38,500	)	–		–		–		39,500	[1]	(10,464	)
Increase (decrease) in cash overdraft	(9,847	)	–		302		–		–		–		(9,545	)
Other	(976	)	(2	)	–		–		–		–		(978	)
Net cash provided by (used in) financing activities	73,547		24,150		(4,343	)	–		25		43,739		137,118
Net increase (decrease) in cash and cash equivalents	68,717		(1,142	)	(875	)	(25	)	2		–		66,677
Cash and cash equivalents, January 1	2,264		3,148		1,349		123		17		–		6,901
Cash and cash equivalents, December 31	$   70,981		2,006		474		98		19		–		$    73,578

Explanation of reclassifications and eliminations on consolidating schedules:

[1]    Eliminations of intercompany receivables and payables and other intercompany transactions.

[2]    Elimination of investment in subsidiaries, carried at equity.

[3]    Reclassification of accrued income taxes for financial statement presentation.