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Shareholders' equity | 6 Months Ended
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Jun. 30, 2016
Equity [Abstract] |
Shareholders' equity | 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 used 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 gains (losses) on derivatives |  | Retirement benefit plans |  | AOCI |  | Unrealized gains on derivatives |  | Retirement benefit plans |  | AOCI
Balance, December 31, 2015 | $ | (1,872 | ) |  | $ | (54 | ) |  | $ | (24,336 | ) |  | $ | (26,262 | ) |  | $ | — |  |  | $ | 925 |  |  | $ | 925 |
Current period other comprehensive income | 9,984 |  |  | 311 |  |  | 613 |  |  | 10,908 |  |  | 257 |  |  | 4 |  |  | 261 |
Balance, June 30, 2016 | $ | 8,112 |  |  | $ | 257 |  |  | $ | (23,723 | ) |  | $ | (15,354 | ) |  | $ | 257 |  |  | $ | 939 |  |  | $ | 1,186 |
Balance, December 31, 2014 | $ | 462 |  |  | $ | (289 | ) |  | $ | (27,551 | ) |  | $ | (27,378 | ) |  | $ | — |  |  | $ | 45 |  |  | $ | 45 |
Current period other comprehensive income | (243 | ) |  | 118 |  |  | 1,056 |  |  | 931 |  |  | — |  |  | 7 |  |  | 7 |
Balance, June 30, 2015 | $ | 219 |  |  | $ | (171 | ) |  | $ | (26,495 | ) |  | $ | (26,447 | ) |  | $ | — |  |  | $ | 52 |  |  | $ | 52 |
Reclassifications out of AOCI were as follows:
|  | Amount reclassified from AOCI |  |
|  | Three months ended June 30 |  | Six months ended June 30 |  | Affected line item in the
(in thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | Statement of Income
HEI consolidated |  |  |  |  |  |  |  |  |  |
Net realized gains on securities |  | $ | (360 | ) |  | $ | — |  |  | $ | (360 | ) |  | $ | — |  |  | Revenues-bank (net gains on sales of securities)
Derivatives qualified as cash flow hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts (settled in 2011) |  | — |  |  | 59 |  |  | 54 |  |  | 118 |  |  | Interest expense
Retirement benefit plan items |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost |  | 3,698 |  |  | 5,780 |  |  | 7,236 |  |  | 11,239 |  |  | See Note 6 for additional details
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets |  | (3,401 | ) |  | (5,272 | ) |  | (6,623 | ) |  | (10,183 | ) |  | See Note 6 for additional details
Total reclassifications |  | $ | (63 | ) |  | $ | 567 |  |  | $ | 307 |  |  | $ | 1,174 |  |  |
Hawaiian Electric consolidated |  |  |  |  |  |  |  |  |  |
Retirement benefit plan items |  |  |  |  |  |  |  |  |  |  |  |
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost |  | $ | 3,391 |  |  | $ | 5,257 |  |  | $ | 6,627 |  |  | $ | 10,190 |  |  | See Note 6 for additional details
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets |  | (3,401 | ) |  | (5,272 | ) |  | (6,623 | ) |  | (10,183 | ) |  | See Note 6 for additional details
Total reclassifications |  | $ | (10 | ) |  | $ | (15 | ) |  | $ | 4 |  |  | $ | 7 |  |  |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(29)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(31)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(30)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(d)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 + Details
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