EX-12.1 3 he-9302013xex121.htm HEI EXHIBIT 12.1
HEI Exhibit 12.1 (page 1 of 2)
Hawaiian Electric Industries, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)

Nine months ended September 30 |  | 2013 (1) |  | 2013 (2) |  | 2012 (1) |  | 2012 (2)
(dollars in thousands) |  |  |  |  |  |  |  |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |
Total interest charges (3) |  | $ | 63,253 |  |  | $ | 67,123 |  |  | $ | 41,213 |  |  | $ | 44,688 |
Interest component of rentals |  | 4,830 |  |  | 4,830 |  |  | 3,464 |  |  | 3,464 |
Pretax preferred stock dividend requirements of subsidiaries |  | 2,162 |  |  | 2,162 |  |  | 1,481 |  |  | 1,481 |
Total fixed charges |  | $ | 70,245 |  |  | $ | 74,115 |  |  | $ | 46,158 |  |  | $ | 49,633 |
Earnings |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 187,660 |  |  | $ | 187,660 |  |  | $ | 121,238 |  |  | $ | 121,238 |
Fixed charges, as shown |  | 70,245 |  |  | 74,115 |  |  | 46,158 |  |  | 49,633 |
Interest capitalized |  | (1,626 | ) |  | (1,626 | ) |  | (1,763 | ) |  | (1,763 | )
Earnings available for fixed charges |  | $ | 256,279 |  |  | $ | 260,149 |  |  | $ | 165,633 |  |  | $ | 169,108 |
Ratio of earnings to fixed charges |  | 3.65 |  |  | 3.51 |  |  | 3.59 |  |  | 3.41 |

Years ended December 31 |  | 2012 (1) |  | 2012 (2) |  | 2011 (1) |  | 2011 (2) |  | 2010 (1) |  | 2010 (2)
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total interest charges (3) |  | $ | 83,020 |  |  | $ | 89,443 |  |  | $ | 87,592 |  |  | $ | 96,575 |  |  | $ | 87,191 |  |  | $ | 101,887 |
Interest component of rentals |  | 6,493 |  |  | 6,493 |  |  | 4,757 |  |  | 4,757 |  |  | 4,282 |  |  | 4,282 |
Pretax preferred stock dividend requirements of subsidiaries |  | 2,924 |  |  | 2,924 |  |  | 2,914 |  |  | 2,914 |  |  | 3,001 |  |  | 3,001 |
Total fixed charges |  | $ | 92,437 |  |  | $ | 98,860 |  |  | $ | 95,263 |  |  | $ | 104,246 |  |  | $ | 94,474 |  |  | $ | 109,170 |
Earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 215,517 |  |  | $ | 215,517 |  |  | $ | 214,162 |  |  | $ | 214,162 |  |  | $ | 181,357 |  |  | $ | 181,357 |
Fixed charges, as shown |  | 92,437 |  |  | 98,860 |  |  | 95,263 |  |  | 104,246 |  |  | 94,474 |  |  | 109,170 |
Interest capitalized |  | (4,355 | ) |  | (4,355 | ) |  | (2,498 | ) |  | (2,498 | ) |  | (2,558 | ) |  | (2,558 | )
Earnings available for fixed charges |  | $ | 303,599 |  |  | $ | 310,022 |  |  | $ | 306,927 |  |  | $ | 315,910 |  |  | $ | 273,273 |  |  | $ | 287,969 |
Ratio of earnings to fixed charges |  | 3.28 |  |  | 3.14 |  |  | 3.22 |  |  | 3.03 |  |  | 2.89 |  |  | 2.64 |

See notes on page 2 of 2.

HEI Exhibit 12.1 (page 2 of 2)
Hawaiian Electric Industries, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
(continued)

Years ended December 31 |  | 2009 (1) |  | 2009 (2) |  | 2008 (1) |  | 2008 (2)
(dollars in thousands) |  |  |  |  |  |  |  |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |
Total interest charges (3) |  | $ | 85,827 |  |  | $ | 119,873 |  |  | $ | 120,083 |  |  | $ | 181,566 |
Interest component of rentals |  | 5,339 |  |  | 5,339 |  |  | 5,354 |  |  | 5,354 |
Pretax preferred stock dividend requirements of subsidiaries |  | 2,868 |  |  | 2,868 |  |  | 2,894 |  |  | 2,894 |
Total fixed charges |  | $ | 94,034 |  |  | $ | 128,080 |  |  | $ | 128,331 |  |  | $ | 189,814 |
Earnings |  |  |  |  |  |  |  |  |  |  |  |
Pretax income from continuing operations |  | $ | 126,934 |  |  | $ | 126,934 |  |  | $ | 139,256 |  |  | $ | 139,256 |
Fixed charges, as shown |  | 94,034 |  |  | 128,080 |  |  | 128,331 |  |  | 189,814 |
Interest capitalized |  | (5,268 | ) |  | (5,268 | ) |  | (3,741 | ) |  | (3,741 | )
Earnings available for fixed charges |  | $ | 215,700 |  |  | $ | 249,746 |  |  | $ | 263,846 |  |  | $ | 325,329 |
Ratio of earnings to fixed charges |  | 2.29 |  |  | 1.95 |  |  | 2.06 |  |  | 1.71 |

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(1) | Excluding interest on ASB deposits.

(2) | Including interest on ASB deposits.

(3) | Interest on nonrecourse debt from leveraged leases is not included in total interest charges nor in interest expense in HEI’s consolidated statements of income.

For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income from continuing operations (before adjustment for undistributed income or loss from equity investees) and (ii) fixed charges (as hereinafter defined, but excluding capitalized interest). “Fixed charges” are calculated both excluding and including interest on ASB’s deposits during the applicable periods and represent the sum of (i) interest, whether capitalized or expensed, but excluding interest on nonrecourse debt from leveraged leases which is not included in interest expense in HEI’s consolidated statements of income, (ii) amortization of debt expense and discount or premium related to any indebtedness, whether capitalized or expensed, (iii) the estimate of the interest within rental expense, and (iv) the non-intercompany preferred stock dividend requirements of HEI’s subsidiaries, increased to an amount representing the pretax earnings required to cover such dividend requirements.