SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2011

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

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	2011		2010
(dollars in thousands)
Assets
Cash and cash equivalents	$       1,765		$       1,540
Accounts receivable	1,361		1,773
Property, plant and equipment, net	6,076		582
Deferred income tax assets	14,208		12,684
Other assets	7,661		6,041
Investments in subsidiaries, at equity	1,902,154		1,838,679
	$1,933,225		$1,861,299
Liabilities and shareholders’ equity
Liabilities
Accounts payable	$       3,602		$          722
Interest payable	5,270		6,826
Notes payable to subsidiaries	7,019		6,777
Commercial paper	68,821		24,923
Long-term debt, net	282,000		307,000
Retirement benefits liability	26,201		20,888
Other	8,363		10,526
	401,276		377,662
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: 96,038,328 shares and 94,690,932 shares	1,349,446		1,314,199
Retained earnings	201,640		181,910
Accumulated other comprehensive loss	(19,137	)	(12,472	)
	1,531,949		1,483,637
	$1,933,225		$1,861,299
Note to Balance Sheets
Long-term debt consisted of :
HEI medium-term notes 4.23 and 6.141%, paid in 2011	$           –		$150,000
HEI medium-term note 7.13%, due 2012	7,000		7,000
HEI medium-term note 5.25%, due 2013	50,000		50,000
HEI medium-term note 6.51%, due 2014	100,000		100,000
HEI senior note 4.41%, due 2016	75,000		–
HEI senior note 5.67%, due 2021	50,000		–
	$282,000		$307,000

The aggregate payments of principal required subsequent to December 31, 2011 on long-term debt are $7 million in 2012, $50 million in 2013, $100 million in 2014, nil in 2015 and $75 million in 2016.

As of December 31, 2011, HEI has a General Agreement of Indemnity in favor of both SAFECO Insurance Company of America (SAFECO) 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 SAFECO or Travelers, including, but not limited to, a $0.2 million self-insured United States Longshore & Harbor bond and a $0.5 million self-insured automobile bond.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF INCOME

Years ended December 31	2011	2010	2009
(in thousands)
Revenues	$       253	$       204	$      400
Equity in net income of subsidiaries	158,722	134,470	100,896
	158,975	134,674	101,296
Expenses:
Operating, administrative and general	15,401	13,336	12,675
Depreciation of property, plant and equipment	227	320	409
Taxes, other than income taxes	409	314	337
	16,037	13,970	13,421
Operating income	142,938	120,704	87,875
Interest expense	22,013	19,961	18,517
Income before income tax benefits	120,925	100,743	69,358
Income tax benefits	17,305	12,792	13,653
Net income	$138,230	$113,535	$ 83,011

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.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

	Years ended December 31,
(in thousands)	2011			2010			2009
Cash flows from operating activities
Net income	$	138,230		$	113,535		$	83,011
Adjustments to reconcile net income to net cash provided by operating activities
Equity in net income	(158,722		)	(134,470		)	(100,896		)
Common stock dividends/distributions received from subsidiaries	128,558			110,769			105,128
Depreciation of property, plant and equipment	227			320			409
Other amortization	981			625			373
Changes in deferred income taxes	276			(1,432		)	(78		)
Changes in excess tax benefits from share-based payment arrangements	35			45			310
Changes in assets and liabilities
Decrease (increase) in accounts receivable	412			(148		)	213
Increase in accounts and interest payable	1,324			936			165
Changes in prepaid and accrued income taxes	3,550			(1,897		)	(2,799		)
Contribution to defined benefit pension and other postretirement benefit plans	(1,785		)	(724		)	(1,267		)
Changes in other assets and liabilities	5,183			4,381			4,922
Net cash provided by operating activities	118,269			91,940			89,491
Cash flows from investing activities
Net decrease in notes receivable from subsidiaries	–			–			10,464
Capital expenditures	(110		)	(84		)	(246		)
Investments in subsidiaries	(40,000		)	(4,364		)	(61,969		)
Other	(4,206		)	–			–
Net cash used in investing activities	(44,316		)	(4,448		)	(51,751		)
Cash flows from financing activities
Net decrease in notes payable to subsidiaries with original maturities of three months or less	(1,757		)	(1,428		)	(2,120		)
Net increase (decrease) in short-term borrowings with original maturities of three months or less	43,897			(17,066		)	41,989
Proceeds from issuance of long-term debt	125,000			–			–
Repayment of long-term debt	(150,000		)	–			–
Changes in excess tax benefits from share-based payment arrangements	(35		)	(45		)	(310		)
Net proceeds from issuance of common stock	15,979			22,706			15,329
Common stock dividends	(106,812		)	(93,034		)	(96,843		)
Net cash used in financing activities	(73,728		)	(88,867		)	(41,955		)
Net increase (decrease) in cash and equivalents	225			(1,375		)	(4,215		)
Cash and cash equivalents, January 1	1,540			2,915			7,130
Cash and cash equivalents, December 31	$	1,765		$	1,540		$	2,915

Supplemental disclosures of noncash activities:

In 2011, 2010 and 2009, $1.3 million, $1.1 million and $1.3 million, respectively, of HEI advances to ASHI were converted to equity in noncash transactions.

Under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), common stock dividends reinvested by shareholders in HEI common stock in noncash transactions amounted to $12 million, $23 million and $17 million in 2011, 2010 and 2009, respectively. HEI satisfied the requirements of the HEI DRIP and the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) (from April 16, 2009 through September 3, 2009 and from August 18, 2011 through December 31, 2011) and the ASB 401(k) Plan (from its inception on May 7, 2009 through September 3, 2009 and from August 18, 2011 through December 31, 2011) by acquiring for cash its common shares through open market purchases rather than by issuing additional shares.