Consolidating financial information (Tables) - HECO

6 Months Ended

Jun. 30, 2013

Schedule of consolidating statements of income (loss)

	Three months ended June 30					Six months ended June 30
(in thousands)	2013			2012		2013		2012
Interest income
Interest and fees on loans	$	43,624		$	44,473	$	86,227	$	89,361
Interest on investment and mortgage-related securities	3,234			3,297		6,698		7,102
Total interest income	46,858			47,770		92,925		96,463
Interest expense
Interest on deposit liabilities	1,296			1,696		2,608		3,475
Interest on other borrowings	1,178			1,214		2,342		2,475
Total interest expense	2,474			2,910		4,950		5,950
Net interest income	44,384			44,860		87,975		90,513
Provision (credit) for loan losses	(959		)	2,378		899		5,924
Net interest income after provision (credit) for loan losses	45,343			42,482		87,076		84,589
Noninterest income
Fees from other financial services	7,996			7,463		15,639		14,800
Fee income on deposit liabilities	4,433			4,322		8,747		8,600
Fee income on other financial products	1,780			1,532		3,574		3,081
Mortgage banking income	2,003			2,185		5,349		4,220
Gain on sale of securities	1,226			134		1,226		134
Other income	1,731			1,315		3,323		2,675
Total noninterest income	19,169			16,951		37,858		33,510
Noninterest expense
Compensation and employee benefits	20,063			18,696		40,151		37,342
Occupancy	4,219			4,241		8,342		8,466
Data processing	2,827			2,489		5,814		4,600
Services	2,328			2,221		4,431		4,004
Equipment	1,870			1,807		3,644		3,537
Other expense	8,500			8,106		16,095		14,813
Total noninterest expense	39,807			37,560		78,477		72,762
Income before income taxes	24,705			21,873		46,457		45,337
Income taxes	8,786			7,684		16,383		15,271
Net income	$	15,919		$	14,189	$	30,074	$	30,066

Schedule of consolidating balance sheets

(in thousands)	June 30, 2013						December 31, 2012
Assets
Cash and cash equivalents				$	143,912					$	184,430
Available-for-sale investment and mortgage-related securities				560,172						671,358
Investment in stock of Federal Home Loan Bank of Seattle				94,281						96,022
Loans receivable held for investment				3,953,634						3,779,218
Allowance for loan losses				(41,004		)				(41,985		)
Loans receivable held for investment, net				3,912,630						3,737,233
Loans held for sale, at lower of cost or fair value				34,073						26,005
Other				241,513						244,435
Goodwill				82,190						82,190
Total assets				$	5,068,771					$	5,041,673
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing				$	1,168,937					$	1,164,308
Deposit liabilities—interest-bearing				3,107,306						3,065,608
Other borrowings				187,884						195,926
Other				102,516						117,752
Total liabilities				4,566,643						4,543,594
Commitments and contingencies (see “Litigation” below)
Common stock				334,937						333,712
Retained earnings				189,837						179,763
Accumulated other comprehensive income (loss), net of taxes
Net unrealized gains on securities	$	888					$	10,761
Retirement benefit plans	(23,534		)	(22,646		)	(26,157		)	(15,396		)
Total shareholder’s equity				502,128						498,079
Total liabilities and shareholder’s equity				$	5,068,771					$	5,041,673
Other assets
Bank-owned life insurance				$	127,851					$	125,726
Premises and equipment, net				68,124						62,458
Prepaid expenses				4,064						13,199
Accrued interest receivable				13,472						13,228
Mortgage-servicing rights				11,363						10,818
Real estate acquired in settlement of loans, net				2,987						6,050
Other				13,652						12,956
				$	241,513					$	244,435
Other liabilities
Accrued expenses				$	15,456					$	17,103
Federal and state income taxes payable				30,932						35,408
Cashier’s checks				22,737						23,478
Advance payments by borrowers				10,300						9,685
Other				23,091						32,078
				$	102,516					$	117,752

Hawaiian Electric Company, Inc. and Subsidiaries

Schedule of consolidating statements of income (loss)

Three months ended June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Operating revenues	$	521,730		106,374		100,689		—		—		$	728,793
Operating expenses
Fuel oil	203,379			33,569		52,330		—		—		289,278
Purchased power	135,271			29,278		13,895		—		—		178,444
Other operation	48,084			10,146		7,954		—		—		66,184
Maintenance	19,651			4,301		3,388		—		—		27,340
Depreciation	25,001			8,547		5,042		—		—		38,590
Taxes, other than income taxes	49,287			9,960		9,512		—		—		68,759
Income taxes	12,886			3,060		2,387		—		—		18,333
Total operating expenses	493,559			98,861		94,508		—		—		686,928
Operating income	28,171			7,513		6,181		—		—		41,865
Other income (loss)
Allowance for equity funds used during construction	1,247			192		121		—		—		1,560
Equity in earnings of subsidiaries	8,667			—		—		—		(8,667	)	—
Other, net	702			167		111		(1	)	(39	)	940
Income tax benefits (expense)	41			(18	)	(15	)	—		—		8
Total other income (loss)	10,657			341		217		(1	)	(8,706	)	2,508
Interest and other charges
Interest on long-term debt	9,901			2,751		1,962		—		—		14,614
Amortization of net bond premium and expense	411			117		119		—		—		647
Other interest charges (credits)	(105		)	16		446		—		(39	)	318
Allowance for borrowed funds used during construction	(342		)	(43	)	(13	)	—		—		(398		)
Total interest and other charges	9,865			2,841		2,514		—		(39	)	15,181
Net income (loss)	28,963			5,013		3,884		(1	)	(8,667	)	29,192
Preferred stock dividend of subsidiaries	—			133		96		—		—		229
Net income (loss) attributable to HECO	28,963			4,880		3,788		(1	)	(8,667	)	28,963
Preferred stock dividends of HECO	270			—		—		—		—		270
Net income (loss) for common stock	$	28,693		4,880		3,788		(1	)	(8,667	)	$	28,693

Three months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Operating revenues	$	567,527		111,741		108,417		—		—		$	787,685
Operating expenses
Fuel oil	241,393			30,616		59,055		—		—		331,064
Purchased power	141,136			37,395		9,821		—		—		188,352
Other operation	44,621			9,948		9,947		—		—		64,516
Maintenance	20,542			4,885		5,808		—		—		31,235
Depreciation	22,737			8,301		5,095		—		—		36,133
Taxes, other than income taxes	55,440			10,423		10,441		—		—		76,304
Income taxes	13,361			2,831		2,382		—		—		18,574
Total operating expenses	539,230			104,399		102,549		—		—		746,178
Operating income	28,297			7,342		5,868		—		—		41,507
Other income (loss)
Allowance for equity funds used during construction	1,654			160		183		—		—		1,997
Equity in earnings of subsidiaries	8,250			—		—		—		(8,250	)	—
Other, net	1,173			117		144		(1	)	(18	)	1,415
Income tax benefits (expense)	(36		)	(18	)	2		—		—		(52		)
Total other income (loss)	11,041			259		329		(1	)	(8,268	)	3,360
Interest and other charges
Interest on long-term debt	10,190			2,913		2,220		—		—		15,323
Amortization of net bond premium and expense	429			108		124		—		—		661
Other interest charges	(167		)	20		66		—		(18	)	(99		)
Allowance for borrowed funds used during construction	(760		)	(64	)	(69	)	—		—		(893		)
Total interest and other charges	9,692			2,977		2,341		—		(18	)	14,992
Net income (loss)	29,646			4,624		3,856		(1	)	(8,250	)	29,875
Preferred stock dividend of subsidiaries	—			133		96		—		—		229
Net income (loss) attributable to HECO	29,646			4,491		3,760		(1	)	(8,250	)	29,646
Preferred stock dividends of HECO	270			—		—		—		—		270
Net income (loss) for common stock	$	29,376		4,491		3,760		(1	)	(8,250	)	$	29,376

Six months ended June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Operating revenues	$	1,027,559		212,390		205,041		—		—		$	1,444,990
Operating expenses
Fuel oil	425,346			66,505		102,527		—		—		594,378
Purchased power	246,426			59,400		25,982		—		—		331,808
Other operation	98,195			21,210		18,202		—		—		137,607
Maintenance	41,303			8,107		7,632		—		—		57,042
Depreciation	49,708			17,094		10,068		—		—		76,870
Taxes, other than income taxes	97,372			19,646		19,428		—		—		136,446
Income taxes	20,197			5,774		6,457		—		—		32,428
Total operating expenses	978,547			197,736		190,296		—		—		1,366,579
Operating income	49,012			14,654		14,745		—		—		78,411
Other income (loss)
Allowance for equity funds used during construction	2,230			330		215		—		—		2,775
Equity in earnings of subsidiaries	19,652			—		—		—		(19,652	)	—
Other, net	2,723			309		288		(1	)	(67	)	3,252
Income tax expense	(189		)	(41	)	(61	)	—		—		(291		)
Total other income (loss)	24,416			598		442		(1	)	(19,719	)	5,736
Interest and other charges
Interest on long-term debt	19,803			5,501		3,924		—		—		29,228
Amortization of net bond premium and expense	821			234		239		—		—		1,294
Other interest charges	52			85		563		—		(67	)	633
Allowance for borrowed funds used during construction	(910		)	(135	)	(83	)	—		—		(1,128		)
Total interest and other charges	19,766			5,685		4,643		—		(67	)	30,027
Net income (loss)	53,662			9,567		10,544		(1	)	(19,652	)	54,120
Preferred stock dividend of subsidiaries	—			267		191		—		—		458
Net income (loss) attributable to HECO	53,662			9,300		10,353		(1	)	(19,652	)	53,662
Preferred stock dividends of HECO	540			—		—		—		—		540
Net income (loss) for common stock	$	53,122		9,300		10,353		(1	)	(19,652	)	$	53,122

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Operating revenues	$	1,098,140		224,068		213,415		—		—		$	1,535,623
Operating expenses
Fuel oil	476,419			63,026		119,458		—		—		658,903
Purchased power	265,916			71,303		15,922		—		—		353,141
Other operation	84,569			18,963		22,833		—		—		126,365
Maintenance	41,378			9,134		10,761		—		—		61,273
Depreciation	45,308			16,737		10,570		—		—		72,615
Taxes, other than income taxes	105,993			20,886		20,420		—		—		147,299
Income taxes	25,324			7,054		3,561		—		—		35,939
Total operating expenses	1,044,907			207,103		203,525		—		—		1,455,535
Operating income	53,233			16,965		9,890		—		—		80,088
Other income (loss)
Allowance for equity funds used during construction	3,235			285		417		—		—		3,937
Equity in earnings of subsidiaries	16,740			—		—		—		(16,740	)	—
Other, net	2,266			232		255		(2	)	(28	)	2,723
Income tax benefits	(65		)	(32	)	2		—		—		(95		)
Total other income (loss)	22,176			485		674		(2	)	(16,768	)	6,565
Interest and other charges
Interest on long-term debt	19,320			5,898		4,488		—		—		29,706
Amortization of net bond premium and expense	912			245		249		—		—		1,406
Other interest charges	(554		)	53		159		—		(28	)	(370		)
Allowance for borrowed funds used during construction	(1,485		)	(115	)	(163	)	—		—		(1,763		)
Total interest and other charges	18,193			6,081		4,733		—		(28	)	28,979
Net income (loss)	57,216			11,369		5,831		(2	)	(16,740	)	57,674
Preferred stock dividend of subsidiaries	—			267		191		—		—		458
Net income (loss) attributable to HECO	57,216			11,102		5,640		(2	)	(16,740	)	57,216
Preferred stock dividends of HECO	540			—		—		—		—		540
Net income (loss) for common stock	$	56,676		11,102		5,640		(2	)	(16,740	)	$	56,676

Schedule of consolidating statement of comprehensive income (loss)

Three months ended June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	28,693		4,880		3,788		(1	)	(8,667	)	$	28,693
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	5,016			681		622		—		(1,303	)	5,016
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(4,999		)	(680	)	(623	)	—		1,303		(4,999		)
Other comprehensive income (loss), net of taxes	17			1		(1	)	—		—		17
Comprehensive income (loss) attributable to common shareholder	$	28,710		4,881		3,787		(1	)	(8,667	)	$	28,710

Three months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	29,376		4,491		3,760		(1	)	(8,250	)	$	29,376
Other comprehensive income, net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	3,364			518		412		—		(930	)	3,364
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,289		)	(511	)	(406	)	—		917		(3,289		)
Other comprehensive income, net of taxes	75			7		6		—		(13	)	75
Comprehensive income (loss) attributable to common shareholder	$	29,451		4,498		3,766		(1	)	(8,263	)	$	29,451

Six months ended June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	53,122		9,300		10,353		(1	)	(19,652	)	$	53,122
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	10,347			1,440		1,279		—		(2,719	)	10,347
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(10,312		)	(1,441	)	(1,279	)	—		2,720		(10,312		)
Other comprehensive income (loss), net of taxes	35			(1	)	—		—		1		35
Comprehensive income (loss) attributable to common shareholder	$	53,157		9,299		10,353		(1	)	(19,651	)	$	53,157

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	56,676		11,102		5,640		(2	)	(16,740	)	$	56,676
Other comprehensive income, net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	6,836			1,050		885		—		(1,935	)	6,836
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(6,684		)	(1,037	)	(873	)	—		1,910		(6,684		)
Other comprehensive income, net of taxes	152			13		12		—		(25	)	152
Comprehensive income (loss) attributable to common shareholder	$	56,828		11,115		5,652		(2	)	(16,765	)	$	56,828

Schedule of consolidating balance sheets

June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries	Consolidating adjustments		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,424		5,182		3,016		—	—		$	51,622
Plant and equipment	3,423,045			1,095,425		973,648		—	—		5,492,118
Less accumulated depreciation	(1,208,090		)	(445,035	)	(429,407	)	—	—		(2,082,532		)
Construction in progress	131,745			21,635		13,522		—	—		166,902
Net utility plant	2,390,124			677,207		560,779		—	—		3,628,110
Investment in wholly owned subsidiaries, at equity	503,388			—		—		—	(503,388	)	—
Current assets
Cash and cash equivalents	4,914			3,401		199		103	—		8,617
Advances to affiliates	18,000			9,600		—		—	(27,600	)	—
Customer accounts receivable, net	137,171			30,867		28,605		—	—		196,643
Accrued unbilled revenues, net	102,695			17,241		19,251		—	—		139,187
Other accounts receivable, net	15,027			2,308		1,420		—	(8,696	)	10,059
Fuel oil stock, at average cost	84,748			9,673		23,024		—	—		117,445
Materials and supplies, at average cost	35,848			6,816		15,560		—	—		58,224
Prepayments and other	26,194			5,805		6,385		—	(83	)	38,301
Regulatory assets	51,214			5,815		6,643		—	—		63,672
Total current assets	475,811			91,526		101,087		103	(36,379	)	632,148
Other long-term assets
Regulatory assets	606,971			110,163		104,219		—	—		821,353
Unamortized debt expense	6,655			1,943		1,350		—	—		9,948
Other	45,995			9,281		14,984		—	—		70,260
Total other long-term assets	659,621			121,387		120,553		—	—		901,561
Total assets	$	4,028,944		890,120		782,419		103	(539,767	)	$	5,161,819
Capitalization and liabilities
Capitalization
Common stock equity	$	1,484,504		271,013		232,272		103	(503,388	)	$	1,484,504
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	780,546			201,331		166,000		—	—		1,147,877
Total capitalization	2,287,343			479,344		403,272		103	(503,388	)	2,666,674
Current liabilities
Short-term borrowings from nonaffiliates	53,992			—		—		—	—		53,992
Short-term borrowings from affiliate	9,600			—		18,000		—	(27,600	)	—
Accounts payable	101,725			23,747		25,405		—	—		150,877
Interest and preferred dividends payable	13,805			4,105		2,427		—	(12	)	20,325
Taxes accrued	152,905			33,299		32,646		—	—		218,850
Other	51,807			9,564		25,291		—	(8,767	)	77,895
Total current liabilities	383,834			70,715		103,769		—	(36,379	)	521,939
Deferred credits and other liabilities
Deferred income taxes	330,551			74,285		52,116		—	—		456,952
Regulatory liabilities	222,193			70,171		34,890		—	—		327,254
Unamortized tax credits	42,396			13,508		13,622		—	—		69,526
Defined benefit pension and other postretirement benefit plans liability	449,039			78,265		77,722			—		605,026
Other	65,242			16,146		13,723		—	—		95,111
Total deferred credits and other liabilities	1,109,421			252,375		192,073		—	—		1,553,869
Contributions in aid of construction	248,346			87,686		83,305		—	—		419,337
Total capitalization and liabilities	$	4,028,944		890,120		782,419		103	(539,767	)	$	5,161,819

December 31, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries	Consolidating  adjustments		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,370		5,182		3,016		—	—		$	51,568
Plant and equipment	3,325,862			1,086,048		952,490		—	—		5,364,400
Less accumulated depreciation	(1,185,899		)	(433,531	)	(421,359	)	—	—		(2,040,789		)
Construction in progress	130,143			12,126		9,109		—	—		151,378
Net utility plant	2,313,476			669,825		543,256		—	—		3,526,557
Investment in wholly owned subsidiaries, at equity	497,939			—		—		—	(497,939	)	—
Current assets
Cash and cash equivalents	8,265			5,441		3,349		104	—		17,159
Advances to affiliates	9,400			18,050		—		—	(27,450	)	—
Customer accounts receivable, net	154,316			29,772		26,691		—	—		210,779
Accrued unbilled revenues, net	100,600			14,393		19,305		—	—		134,298
Other accounts receivable, net	33,313			1,122		3,016		—	(9,275	)	28,176
Fuel oil stock, at average cost	123,176			15,485		22,758		—	—		161,419
Materials and supplies, at average cost	31,779			5,336		13,970		—	—		51,085
Prepayments and other	21,708			5,146		6,011		—	—		32,865
Regulatory assets	42,675			4,056		4,536		—	—		51,267
Total current assets	525,232			98,801		99,636		104	(36,725	)	687,048
Other long-term assets
Regulatory assets	601,451			109,815		102,063		—	—		813,329
Unamortized debt expense	7,042			2,066		1,446		—	—		10,554
Other	46,586			9,871		14,848		—	—		71,305
Total other long-term assets	655,079			121,752		118,357		—	—		895,188
Total assets	$	3,991,726		890,378		761,249		104	(534,664	)	$	5,108,793
Capitalization and liabilities
Capitalization
Common stock equity	$	1,472,136		268,908		228,927		104	(497,939	)	$	1,472,136
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	780,546			201,326		166,000		—	—		1,147,872
Total capitalization	2,274,975			477,234		399,927		104	(497,939	)	2,654,301
Current liabilities
Current portion of long-term debt	—			—		—		—	—		—
Short-term borrowings from affiliate	18,050			—		9,400		—	(27,450	)	—
Accounts payable	134,651			27,457		24,716		—	—		186,824
Interest and preferred dividends payable	14,479			4,027		2,593		—	(7	)	21,092
Taxes accrued	174,477			38,778		37,811		—	—		251,066
Other	47,203			10,310		14,634		—	(9,268	)	62,879
Total current liabilities	388,860			80,572		89,154		—	(36,725	)	521,861
Deferred credits and other liabilities
Deferred income taxes	302,569			68,479		46,563		—	—		417,611
Regulatory liabilities	218,437			67,359		36,278		—	—		322,074
Unamortized tax credits	39,827			13,450		13,307		—	—		66,584
Defined benefit pension and other postretirement benefit plans liability	459,765			80,686		79,754		—	—		620,205
Other	68,783			17,799		14,055		—	—		100,637
Total deferred credits and other liabilities	1,089,381			247,773		189,957		—	—		1,527,111
Contributions in aid of construction	238,510			84,799		82,211		—	—		405,520
Total capitalization and liabilities	$	3,991,726		890,378		761,249		104	(534,664	)	$	5,108,793

Schedule of consolidating statement of changes in common stock equity

Six months ended June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Balance, December 31, 2012	$	1,472,136		268,908		228,927		104		(497,939	)	$	1,472,136
Net income (loss) for common stock	53,122			9,300		10,353		(1	)	(19,652	)	53,122
Other comprehensive income (loss), net of taxes	35			(1	)	—		—		1		35
Common stock dividends	(40,789		)	(7,194	)	(7,008	)	—		14,202		(40,789		)
Balance, June 30, 2013	1,484,504			271,013		232,272		103		(503,388	)	1,484,504

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Balance, December 31, 2011	$	1,402,841		280,468		235,568		107		(516,143	)	$	1,402,841
Net income (loss) for common stock	56,676			11,102		5,640		(2	)	(16,740	)	56,676
Other comprehensive income, net of taxes	152			13		12		—		(25	)	152
Common stock dividends	(36,522		)	(6,569	)	(4,373	)	—		10,942		(36,522		)
Common stock issue expenses	1			—		—		—		—		1
Balance, June 30, 2012	$	1,423,148		285,014		236,847		105		(521,966	)	$	1,423,148

Schedule of Condensed consolidating statement of cash flows

Six months ended June 30, 2013

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$	53,662		9,567		10,544		(1	)	(19,652	)	$	54,120
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(19,702		)	—		—		—		19,652		(50		)
Common stock dividends received from subsidiaries	14,227			—		—		—		(14,202	)	25
Depreciation of property, plant and equipment	49,708			17,094		10,068		—		—		76,870
Other amortization	(160		)	716		2,328		—		—		2,884
Change in deferred income taxes	27,560			5,584		5,636		—		—		38,780
Change in tax credits, net	2,598			70		329		—		—		2,997
Allowance for equity funds used during construction	(2,230		)	(330	)	(215	)	—		—		(2,775		)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	35,431			(2,281	)	(318	)	—		(579	)	32,253
Decrease (increase) in accrued unbilled revenues	(2,095		)	(2,848	)	54		—		—		(4,889		)
Decrease (increase) in fuel oil stock	38,428			5,812		(266	)	—		—		43,974
Increase in materials and supplies	(4,069		)	(1,480	)	(1,590	)	—		—		(7,139		)
Increase in regulatory assets	(25,647		)	(4,852	)	(7,087	)	—		—		(37,586		)
Decrease in accounts payable	(36,971		)	(2,513	)	(1,750	)	—		—		(41,234		)
Change in prepaid and accrued income and utility revenue taxes	(25,831		)	(6,171	)	(6,121	)	—		—		(38,123		)
Contributions to defined benefit pension and other postretirement benefit plans	(29,766		)	(5,389	)	(5,431	)	—		—		(40,586		)
Other increase in defined benefit pension and other postretirement benefit plans liability	30,929			5,261		5,385		—		—		41,575
Change in other assets and liabilities	(12,731		)	(3,171	)	5,929		—		579		(9,394		)
Net cash provided by (used in) operating activities	93,341			15,069		17,495		(1	)	(14,202	)	111,702
Cash flows from investing activities:
Capital expenditures	(104,846		)	(22,367	)	(23,038	)	—		—		(150,251		)
Contributions in aid of construction	11,924			4,270		994		—		—		17,188
Other	623			—		—		—		—		623
Advances from (to) affiliates	(8,600		)	8,450		—		—		150		—
Net cash used in investing activities	(100,899		)	(9,647	)	(22,044	)	—		150		(132,440		)
Cash flows from financing activities:
Common stock dividends	(40,789		)	(7,194	)	(7,008	)	—		14,202		(40,789		)
Preferred stock dividends of HECO and subsidiaries	(540		)	(267	)	(191	)	—		—		(998		)
Net increase in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	45,542			—		8,600		—		(150	)	53,992
Other	(6		)	(1	)	(2	)	—		—		(9		)
Net cash provided by (used in) financing activities	4,207			(7,462	)	1,399		—		14,052		12,196
Net decrease in cash and cash equivalents	(3,351		)	(2,040	)	(3,150	)	(1	)	—		(8,542		)
Cash and cash equivalents, beginning of period	8,265			5,441		3,349		104		—		17,159
Cash and cash equivalents, end of period	$	4,914		3,401		199		103		—		$	8,617

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$	57,216		11,369		5,831		(2	)	(16,740	)	$	57,674
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(16,790		)	—		—		—		16,740		(50		)
Common stock dividends received from subsidiaries	10,967			—		—		—		(10,942	)	25
Depreciation of property, plant and equipment	45,308			16,737		10,570		—		—		72,615
Other amortization	347			1,418		1,005		—		—		2,770
Change in deferred income taxes	31,673			5,857		4,994		—		—		42,524
Change in tax credits, net	2,641			125		114		—		—		2,880
Allowance for equity funds used during construction	(3,235		)	(285	)	(417	)	—		—		(3,937		)
Changes in assets and liabilities:
Increase in accounts receivable	(17,653		)	(137	)	(702	)	—		7,534		(10,958		)
Increase in accrued unbilled revenues	(21,274		)	(6,456	)	(4,323	)	—		—		(32,053		)
Increase in fuel oil stock	(28,905		)	(514	)	(6,474	)	—		—		(35,893		)
Increase in materials and supplies	(6,172		)	(1,022	)	(405	)	—		—		(7,599		)
Increase in regulatory assets	(28,190		)	(3,234	)	(4,052	)	—		—		(35,476		)
Increase (decrease) in accounts payable	12,843			(6,938	)	26		—		—		5,931
Change in prepaid and accrued income and utility revenue taxes	(9,994		)	(6,347	)	(4,800	)	—		—		(21,141		)
Contributions to defined benefit pension and other postretirement benefit plans	(38,693		)	(6,536	)	(6,857	)	—		—		(52,086		)
Other increase in defined benefit pension and other postretirement benefit plans liability	22,947			4,089		4,130				—		31,166
Change in other assets and liabilities	(26,968		)	(3,432	)	18		(1	)	(7,534	)	(37,917		)
Net cash provided by (used in) operating activities	(13,932		)	4,694		(1,342	)	(3	)	(10,942	)	(21,525		)
Cash flows from investing activities:
Capital expenditures	(111,011		)	(17,405	)	(13,202	)	—		—		(141,618		)
Contributions in aid of construction	23,693			2,327		961		—		—		26,981
Advances from (to) affiliates	(8,700		)	26,800		18,500		—		(36,600	)	—
Net cash provided by (used in) investing activities	(96,018		)	11,722		6,259		—		(36,600	)	(114,637		)
Cash flows from financing activities:
Common stock dividends	(36,522		)	(6,569	)	(4,373	)	—		10,942		(36,522		)
Preferred stock dividends of HECO and subsidiaries	(540		)	(267	)	(191	)	—		—		(998		)
Proceeds from issuance of long-term debt	327,000			31,000		59,000		—		—		417,000
Repayment of long-term debt	(219,580		)	(41,200	)	(67,720	)	—		—		(328,500		)
Net increase (decrease) in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	(1,058		)	—		8,700		—		36,600		44,242
Other	(1,746		)	171		(354	)	—		—		(1,929		)
Net cash provided by (used in) financing activities	67,554			(16,865	)	(4,938	)	—		47,542		93,293
Net decrease in cash and cash equivalents	(42,396		)	(449	)	(21	)	(3	)	—		(42,869		)
Cash and cash equivalents, beginning of period	44,819			3,383		496		108		—		48,806
Cash and cash equivalents, end of period	$	2,423		2,934		475		105		—		$	5,937