16 · Quarterly information (unaudited)

Selected quarterly information was as follows:



	Quarters ended								Years ended
(in thousands, except per share amounts)	March 31		June 30		Sept. 30		Dec. 31		December 31
HEI consolidated
2017¹
Revenues	$	591,562	$	632,281	$	673,185	$	658,597	$	2,555,625
Operating income	67,862		75,896		109,545		84,988		338,291
Net income	34,666		39,134		60,544		32,843		167,187
Net income for common stock	34,193		38,661		60,073		32,370		165,297
Basic earnings per common share ³	0.31		0.36		0.55		0.30		1.52
Diluted earnings per common share ⁴	0.31		0.36		0.55		0.30		1.52
Dividends per common share	0.31		0.31		0.31		0.31		1.24
2016²
Revenues	$	550,960	$	566,244	$	646,055	$	617,395	$	2,380,654
Operating income	68,851		85,455		105,442		88,427		348,175
Net income	32,825		44,601		127,613		45,107		250,146
Net income for common stock	32,352		44,128		127,142		44,634		248,256
Basic earnings per common share ³	0.30		0.41		1.17		0.41		2.30
Diluted earnings per common share ⁴	0.30		0.41		1.17		0.41		2.29
Dividends per common share	0.31		0.31		0.31		0.31		1.24
Hawaiian Electric consolidated
2017⁵
Revenues	$	518,611	$	556,875	$	598,769	$	583,311	$	2,257,566
Operating income	48,938		55,047		87,076		66,460		257,521
Net income	21,964		26,143		47,985		25,854		121,946
Net income for common stock	21,465		25,644		47,487		25,355		119,951
2016
Revenues	482,052		495,395		572,253		544,668		2,094,368
Operating income	55,326		70,686		89,812		68,644		284,468
Net income	25,866		36,356		47,472		34,618		144,312
Net income for common stock	25,367		35,857		46,974		34,119		142,317

Note: HEI owns all of Hawaiian Electric's common stock, therefore per share data for Hawaiian Electric is not meaningful.

In the fourth quarter of 2017, the Company recorded a $14.2 million adjustment, primarily to reduce deferred tax net asset balances (not accounted for under Utility regulatory ratemaking) to reflect the lower rates enacted by the Tax Act. Also included in this adjustment is $0.7 million (net of tax) of non-executive bonuses paid by ASB related to the enactment of federal tax reform. See below for the impact of the Utilities lower RAM revenues due to the expiration of the 2013 settlement agreement.

In the third quarter of 2016, HEI received a $90 million termination fee from NEE and in 2016 received and incurred other merger and spin-off-related amounts (see Note 15 to the Consolidated Financial Statements). For the first quarter of 2016, second quarter of 2016 and third quarter of 2016, the Company recorded merger- and spin-off-related income/(expenses), net of tax impacts of $(2) million, $(2) million and $64 million, respectively.


³	The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter.


⁴	The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end.

⁵

In the fourth quarter of 2017, Hawaiian Electric consolidated recorded a $9.2 million adjustment to reduce deferred tax net asset balances (not accounted for under regulatory ratemaking) to reflect the lower rates enacted by the Tax Act. In the first five months of 2017, the Utilities recorded lower RAM revenues due to the expiration of the 2013 settlement agreement that allowed the accrual of RAM revenues on January 1 (vs. June 1) for years 2014 to 2016 at Hawaiian Electric. For the first and second quarters of 2017, the Utilities recorded lower revenues of $12 million ($7 million, net of tax impacts) and $8 million ($4 million, net of tax impacts) due to this RAM lag, respectively.

Condensed Consolidated Statements of Cash Flows error. Subsequent to the issuance of interim Condensed Consolidated Financial Statements (unaudited) for the quarter ended September 30, 2017, the Company and the Utilities identified an error within their previously reported interim Condensed Consolidated Statements of Cash Flows (unaudited). The timing of certain capital expenditure payments that had retainage balances or were related to certain capitalized amounts were not reflected timely. The Company and the Utilities have evaluated the effect of the error, both qualitatively and quantitatively, and concluded that it is immaterial to their respective previously issued condensed consolidated financial statements, and will correct prospectively in subsequent quarterly filings. For the nine months ended September 30, 2017, six months ended June 30, 2017 and three months ended March 31, 2017, the correction of this error will result in an increase (decrease) in Net Cash Provided by Operating Activities (impacting the change in Accounts, Interest and Dividends Payable for the Company and Accounts Payable for the Utilities) of $33 million, ($7 million) and ($42 million), respectively, and an increase (decrease) in Capital Expenditures and Net Cash Used in Investing Activities of ($33 million), $7 million and $42 million, respectively.