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Basis of presentation | 6 Months Ended
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Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Basis of presentation | Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, the instructions to SEC Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements and the following notes should be read in conjunction with the audited consolidated financial statements and the notes thereto in HEI’s and Hawaiian Electric’s Form 10-K, as amended by Amendment No. 1 on Form 10-K/A, for the year ended December 31, 2014. In the opinion of HEI’s and Hawaiian Electric’s management, the accompanying unaudited consolidated financial statements contain all material adjustments required by GAAP to fairly state consolidated HEI’s and Hawaiian Electric’s financial positions as of June 30, 2015 and December 31, 2014, the results of their operations for the three and six months ended June 30, 2015 and 2014, and their cash flows for the six months ended June 30, 2015 and 2014. All such adjustments are of a normal recurring nature, unless otherwise disclosed below or elsewhere in this Form 10-Q (see “Restatement of previously issued financial statements” below) or other referenced material. Results of operations for interim periods are not necessarily indicative of results for the full year. Prior period financial statements reflect the retrospective application of Accounting Standards Update (ASU) No. 2014-01, “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects,” which was adopted as of January 1, 2015 and did not have a material impact on the Company’s financial condition or results of operations. See “Investments in qualified affordable housing projects” in Note 11. Restatement of previously issued financial statements. Management discovered that the Utilities’ capital expenditures on HEI’s and Hawaiian Electric’s Consolidated Statements of Cash Flows did not correctly account for the beginning of period unpaid invoices and accruals (that were paid in cash during the period) and is restating its previously filed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 to correct for such misstatement by adjusting cash used for “Capital expenditures” (investing activity) and change in accounts payable (operating activity). Management also discovered that the eliminating journal entry to offset the Hawaiian Electric consolidated net operating loss deferred tax asset did not properly reflect the adjustment on the components of income taxes (current and deferred federal income taxes) and is restating its previously filed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 to correct for such misstatement by adjusting “Increase in deferred income taxes” and “Change in other assets and liabilities” (operating activities). Management determined it needed to correct the presentation for share-based compensation expense on the Company’s Consolidated Statement of Cash Flows, resulting in a corresponding change in the “Change in other assets and liabilities” amount. This restatement to correct for such misstatements and other immaterial items does not impact HEI’s and Hawaiian Electric’s previously reported overall net change in cash and cash equivalents in their Consolidated Statements of Cash Flows for any period presented. Additionally, this restatement does not impact HEI’s and Hawaiian Electric’s Consolidated Balance Sheets or Consolidated Statements of Income for any period presented. The table below illustrates the effects of the restatement on the previously filed financial statements:
|  | Six months ended June 30, 2015 |  | Six months ended June 30, 2014
|  | As |  |  |  |  |  |  | As |  |  |  |  |
|  | previously |  |  | As |  |  |  |  | previously |  |  | As |  |  |
(in thousands) |  | filed |  |  | restated |  |  | Difference |  |  | filed |  |  | restated |  |  | Difference |
Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |  |  |  |
HEI consolidated |  |  |  |  |  |  |  |  |  |  |  |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |
Other amortization |  | $ | 4,320 |  |  | $ | 4,792 |  |  | $ | 472 |  |  | N/A |  |  | N/A |  |  | N/A |
Increase/(decrease) in deferred income taxes (1) |  | 22,980 |  |  | (4,463 | ) |  | (27,443 | ) |  | $ | 28,570 |  |  | $ | 44,494 |  |  | $ | 15,924 |
Share-based compensation expense |  | — |  |  | 3,769 |  |  | 3,769 |  |  | — |  |  | 5,206 |  |  | 5,206 |
Increase/(decrease) in accounts, interest and dividends payable |  | (56,076 | ) |  | 8,504 |  |  | 64,580 |  |  | (64,843 | ) |  | (40,230 | ) |  | 24,613 |
Change in other assets and liabilities (1) |  | (47,146 | ) |  | (24,455 | ) |  | 22,691 |  |  | (16,909 | ) |  | (38,540 | ) |  | (21,631 | )
Net cash provided by operating activities |  | 104,303 |  |  | 168,372 |  |  | 64,069 |  |  | 46,195 |  |  | 70,307 |  |  | 24,112 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | (142,236 | ) |  | (206,816 | ) |  | (64,580 | ) |  | (149,253 | ) |  | (173,866 | ) |  | (24,613 | )
Cash flows from investing activities-Other |  | 3,308 |  |  | 3,819 |  |  | 511 |  |  | (16 | ) |  | 485 |  |  | 501 |
Net cash used in investing activities |  | (227,706 | ) |  | (291,775 | ) |  | (64,069 | ) |  | (272,102 | ) |  | (296,214 | ) |  | (24,112 | )
Hawaiian Electric consolidated |  |  |  |  |  |  |  |  |  |  |  |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |
Other amortization |  | 2,748 |  |  | 3,220 |  |  | 472 |  |  | N/A |  |  | N/A |  |  | N/A |
Decrease in accounts payable |  | (68,951 | ) |  | (4,371 | ) |  | 64,580 |  |  | (63,306 | ) |  | (38,693 | ) |  | 24,613 |
Change in other assets and liabilities |  | (13,102 | ) |  | (14,085 | ) |  | (983 | ) |  | (26,258 | ) |  | (26,759 | ) |  | (501 | )
Net cash provided by operating activities |  | 63,607 |  |  | 127,676 |  |  | 64,069 |  |  | 25,132 |  |  | 49,244 |  |  | 24,112 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | (134,563 | ) |  | (199,143 | ) |  | (64,580 | ) |  | (145,734 | ) |  | (170,347 | ) |  | (24,613 | )
Cash flows from investing activities-Other |  | — |  |  | 511 |  |  | 511 |  |  | — |  |  | 501 |  |  | 501 |
Net cash used in investing activities |  | (115,474 | ) |  | (179,543 | ) |  | (64,069 | ) |  | (132,525 | ) |  | (156,637 | ) |  | (24,112 | )
Note 10 |  |  |  |  |  |  |  |  |  |  |  |
HEI consolidated and Hawaiian Electric consolidated |  |  |  |  |  |  |  |  |  |  |  |
Additions to electric utility property, plant and equipment - unpaid invoices and accruals (investing) (in millions) |  | 53 |  |  | (12 | ) |  | (65 | ) |  | 28 |  |  | 3 |  |  | (25 | )
(1) As previously filed and adjusted by ASU No. 2014-01 (see Note 11). N/A - Not applicable.

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