SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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	2015			2014
(dollars in thousands)
Assets
Cash and cash equivalents	$	55,116		$	276
Accounts receivable	5,459			1,991
Property, plant and equipment, net	4,514			4,917
Deferred income tax assets	16,715			15,922
Other assets	11,984			11,070
Investments in subsidiaries, at equity	2,293,679			2,223,597
	$	2,387,467		$	2,257,773
Liabilities and shareholders’ equity
Liabilities
Accounts payable	$	1,254		$	1,993
Interest payable	2,450			2,583
Notes payable to subsidiaries	5,946			7,857
Commercial paper	103,063			118,972
Long-term debt, net	300,000			300,000
Retirement benefits liability	31,704			32,030
Other	15,410			3,765
	459,827			467,200
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: 107,460,406 shares and 102,565,266 shares	1,629,136			1,521,297
Retained earnings	324,766			296,654
Accumulated other comprehensive loss	(26,262		)	(27,378		)
	1,927,640			1,790,573
	$	2,387,467		$	2,257,773
Note to Balance Sheets
HEI Term loan LIBOR + .75% (effective October 8, 2015), due 2017	$	125,000		$	125,000
HEI senior note 4.41%, due 2016	75,000			75,000
HEI senior note 5.67%, due 2021	50,000			50,000
HEI senior note 3.99%, due 2023	50,000			50,000
	$	300,000		$	300,000

See Note 1 for the impact to prior period financial information of the adoption of ASU No. 2014-01.

The aggregate payments of principal required subsequent to December 31, 2015 on long-term debt are $75 million in 2016, $125 million in 2017 and nil in 2018, 2019 and 2020.

As of December 31, 2015, HEI has a General Agreement of Indemnity in favor of both Liberty Mutual Insurance Company (Liberty) 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 Liberty or Travelers, including, but not limited to, a $0.2 million self-insured United States Longshore & Harbor bond and a $0.6 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	2015		2014		2013
(in thousands)
Revenues	$	327	$	303	$	288
Equity in net income of subsidiaries	190,033		188,727		180,552
Expenses:
Operating, administrative and general	34,350		20,921		16,063
Depreciation of property, plant and equipment	576		575		596
Taxes, other than income taxes	440		469		497
Interest expense	10,788		11,599		16,207
Income before income tax benefits	144,206		155,466		147,477
Income tax benefits	15,671		13,047		14,232
Net income	$	159,877	$	168,513	$	161,709

See Note 1 for the impact to prior period financial information of the adoption of ASU No. 2014-01.

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.

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

STATEMENTS OF COMPREHENSIVE INCOME

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Incorporated by reference are HEI and Subsidiaries’ Statements of Consolidated Comprehensive Income and Consolidated Statements of Changes in Shareholders’ Equity in Part II, Item 8.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)

HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS



Years ended December 31	2015			2014			2013
(in thousands)
Net cash provided by operating activities	$	97,141		$	100,794		$	82,274
Cash flows from investing activities
Capital expenditures	(173		)	(74		)	(201		)
Investments in subsidiaries	—			(40,000		)	(78,500		)
Net cash used in investing activities	(173		)	(40,074		)	(78,701		)
Cash flows from financing activities
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less	87			(222		)	56
Net increase (decrease) in short-term borrowings with original maturities of three months or less	(15,909		)	13,490			21,788
Proceeds from issuance of long-term debt	—			125,000			50,000
Repayment of long-term debt	—			(100,000		)	(50,000		)
Excess tax benefits from share-based payment arrangements	978			277			430
Net proceeds from issuance of common stock	104,435			26,898			55,086
Common stock dividends	(131,765		)	(126,458		)	(98,383		)
Other	46			—			—
Net cash used in financing activities	(42,128		)	(61,015		)	(21,023		)
Net increase (decrease) in cash and equivalents	54,840			(295		)	(17,450		)
Cash and cash equivalents, January 1	276			571			18,021
Cash and cash equivalents, December 31	$	55,116		$	276		$	571

In 2015, 2014 and 2013, cash dividends received from subsidiaries were $121 million, $124 million and $122 million, respectively.

Supplemental disclosures of noncash activities:

In 2015, 2014 and 2013, $2.3 million, $2.4 million and $2.3 million, respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions.

In 2015, 2014 and 2013, $0.3 million, $2.5 million and $2.5 million, respectively, were contributed as equity by HEI into ASB Hawaii with a corresponding increase in HEI notes payable to ASB Hawaii 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 nil, nil and $24 million in 2015, 2014 and 2013, respectively. HEI satisfied the requirements of the HEI DRIP, Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and ASB 401(k) Plan from March 6, 2014 through January 5, 2016 by acquiring for cash its common shares through open market purchases rather than by issuing additional shares.

Note:

The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements.