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Earnings per share and shareholders' equity | 3 Months Ended
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Mar. 31, 2015
Equity [Abstract] |
Earnings per share and shareholders' equity | Earnings per share and shareholders’ equity Earnings per share. Under the two-class method of computing earnings per share (EPS), EPS was comprised as follows for both participating securities (i.e., restricted shares that became fully vested in the fourth quarter of 2014) and unrestricted common stock:
Three months ended March 31, 2014 |  | Basic and diluted
Distributed earnings |  | $ | 0.31 |
Undistributed earnings |  | 0.14 |
|  | $ | 0.45 |
As of March 31, 2015, there were no remaining share awards that could have been potentially antidilutive. As of March 31, 2014, the antidilutive effect of SARs on 102,000 shares of HEI common stock (for which the exercise prices were greater than the closing market prices of HEI’s common stock on such dates), was not included in the computation of diluted EPS. Shareholders’ equity. Equity forward transaction. On March 19, 2013, HEI entered into an equity forward transaction in connection with a public offering on that date of 6.1 million shares of HEI common stock at $26.75 per share. On March 19, 2013, HEI common stock closed at $27.01 per share. On March 20, 2013, the underwriters exercised their over-allotment option in full and HEI entered into an equity forward transaction in connection with the resulting additional 0.9 million shares of HEI common stock. The use of an equity forward transaction substantially eliminates future equity market price risk by fixing a common equity offering sales price under the then existing market conditions, while mitigating immediate share dilution resulting from the offering by postponing the actual issuance of common stock until funds are needed in accordance with the Company’s capital investment plans. Pursuant to the terms of these transactions, a forward counterparty borrowed 7 million shares of HEI’s common stock from third parties and sold them to a group of underwriters for $26.75 per share, less an underwriting discount equal to $1.00312 per share. Under the terms of the equity forward transactions, HEI was required to issue and deliver shares of HEI common stock to the forward counterparty at the then applicable forward sale price. The forward sale price was initially determined to be $25.74688 per share at the time the equity forward transactions were entered into, and the amount of cash to be received by HEI upon physical settlement of the equity forward was subject to certain adjustments in accordance with the terms of the equity forward transactions. The equity forward transactions had no initial fair value since they were entered into at the then market price of the common stock. HEI concluded that the equity forward transactions were equity instruments based on the accounting guidance in Accounting Standards Codification (ASC) Topic 480, “Distinguishing Liabilities from Equity,” and ASC Topic 815, “Derivatives and Hedging,” and that they qualified for an exception from derivative accounting under ASC Topic 815 because the forward sale transactions were indexed to its own stock. On December 19, 2013 and July 14, 2014, HEI settled 1.3 million and 1.0 million shares under the equity forward for proceeds of $32.1 million (net of the underwriting discount of $1.3 million) and $23.9 million (net of underwriting discount of $1.0 million), respectively, which funds were ultimately used to purchase Hawaiian Electric shares. On March 20, 2015, HEI settled the remaining 4.7 million shares under the equity forward for proceeds of $104.5 million (net of the underwriting discount of $4.7 million), which funds were were used to purchase Hawaiian Electric shares, for the reduction of debt and for general corporate purposes. The proceeds were recorded in equity at the time of settlement. Prior to their settlement, the shares remaining under the equity forward transactions were reflected in HEI’s diluted EPS calculations using the treasury stock method. Accumulated other comprehensive income. Changes in the balances of each component of accumulated other comprehensive income/(loss) (AOCI) were as follows:
| HEI Consolidated |  | Hawaiian Electric Consolidated
(in thousands) | Net unrealized gains (losses) on securities |  | Unrealized losses on derivatives |  | Retirement benefit plans |  | AOCI |  | AOCI -retirement benefit plans
Balance, December 31, 2014 | $ | 462 |  |  | $ | (289 | ) |  | $ | (27,551 | ) |  | $ | (27,378 | ) |  | $ | 45 |
Current period other comprehensive income | 3,451 |  |  | 59 |  |  | 548 |  |  | 4,058 |  |  | 22 |
Balance, March 31, 2015 | $ | 3,913 |  |  | $ | (230 | ) |  | $ | (27,003 | ) |  | $ | (23,320 | ) |  | $ | 67 |
Balance, December 31, 2013 | $ | (3,663 | ) |  | $ | (525 | ) |  | $ | (12,562 | ) |  | $ | (16,750 | ) |  | $ | 608 |
Current period other comprehensive income | 805 |  |  | 59 |  |  | 303 |  |  | 1,167 |  |  | 9 |
Balance, March 31, 2014 | $ | (2,858 | ) |  | $ | (466 | ) |  | $ | (12,259 | ) |  | $ | (15,583 | ) |  | $ | 617 |
Reclassifications out of AOCI were as follows:
|  | Amount reclassified from AOCI |  |
|  | Three months ended March 31 |  |
(in thousands) |  | 2015 |  | 2014 |  | Affected line item in the Statement of Income
HEI consolidated |  |  |  |  |  |
Net realized gains on securities |  | $ | 3,451 |  |  | $ | (1,715 | ) |  | Revenues-bank (net gains on sales of securities)
Derivatives qualified as cash flow hedges |  |  |  |  |  |  |  |
Interest rate contracts (settled in 2011) |  | 59 |  |  | 59 |  |  | Interest expense
Retirement benefit plan items |  |  |  |  |  |  |  |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost |  | 5,459 |  |  | 2,813 |  |  | See Note 6 for additional details
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets |  | (4,911 | ) |  | (2,510 | ) |  | See Note 6 for additional details
Total reclassifications |  | $ | 4,058 |  |  | $ | (1,353 | ) |  |
Hawaiian Electric consolidated |  |  |  |  |  |
Retirement benefit plan items |  |  |  |  |  |  |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost |  | $ | 4,933 |  |  | $ | 2,519 |  |  | See Note 6 for additional details
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets |  | (4,911 | ) |  | (2,510 | ) |  | See Note 6 for additional details
Total reclassifications |  | $ | 22 |  |  | $ | 9 |  |  |

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- Definition The entire disclosure for earnings per share, and shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. + References No definition available. + Details
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