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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2017
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
2017
 
2016
(dollars in thousands)
 

 
 

Assets
 

 
 

Cash and cash equivalents
$
11,702

 
$
14,924

Accounts receivable
2,347

 
3,788

Property, plant and equipment, net
3,910

 
4,143

Deferred income tax assets
8,710

 
17,280

Other assets
15,480

 
9,858

Investments in subsidiaries, at equity
2,466,342

 
2,383,405

   Total assets
$
2,508,491

 
$
2,433,398

Liabilities and shareholders’ equity
 

 
 

Liabilities
 

 
 

Accounts payable
$
561

 
$
379

Interest payable
2,319

 
1,735

Notes payable to subsidiaries
1,918

 
5,373

Commercial paper
62,993

 
—

Short-term debt, net
49,953

 
—

Long-term debt, net
249,588

 
299,759

Retirement benefits liability
31,518

 
33,939

Other
12,255

 
25,460

   Total liabilities
411,105

 
366,645

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: 108,787,807
shares and 108,583,413 shares at December 31, 2017 and 2016, respectively
1,662,491

 
1,660,910

Retained earnings
476,836

 
438,972

Accumulated other comprehensive loss
(41,941
)
 
(33,129
)
   Total shareholders' equity
2,097,386

 
2,066,753

   Total liabilities and shareholders' equity
$
2,508,491

 
$
2,433,398

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)
HAWAIIAN ELECTRIC INDUSTRIES, INC. (PARENT COMPANY)
CONDENSED STATEMENTS OF INCOME
Years ended December 31
2017
 
2016
 
2015
(in thousands)
 

 
 

 
 

Revenues
$
798

 
$
647

 
$
327

Equity in net income of subsidiaries
187,097

 
199,485

 
190,033

Expenses:
 

 
 

 
 

Operating, administrative and general
17,697

 
18,701

 
34,350

Depreciation of property, plant and equipment
548

 
566

 
576

Taxes, other than income taxes
496

 
4,726

 
440

       Total expenses
18,741

 
23,993

 
35,366

Income before merger termination fee, interest expense and income (taxes) benefits
169,154

 
176,139

 
154,994

Merger termination fee
—

 
90,000

 
—

Income before interest expense and income (taxes) benefits
169,154

 
266,139

 
154,994

Interest expense
9,389

 
9,037

 
10,788

Income before income (taxes) benefits
159,765

 
257,102

 
144,206

Income (taxes) benefits
5,532

 
(8,846
)
 
15,671

Net income
$
165,297

 
$
248,256

 
$
159,877


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
2017
 
2016
 
2015
(in thousands)
 
 
 
 
 
Net cash provided by operating activities
$
99,600

 
$
191,710

 
$
98,119

Cash flows from investing activities
 

 
 

 
 

Increase in note receivable from subsidiary
(70,000
)
 
—

 
—

Decrease in note receivable from subsidiary
66,391

 
—

 
—

Capital expenditures
(317
)
 
(212
)
 
(173
)
Investments in subsidiaries
(22,353
)
 
(24,000
)
 
—

Other
(177
)
 
1

 
—

Net cash used in investing activities
(26,456
)
 
(24,211
)
 
(173
)
Cash flows from financing activities
 

 
 

 
 

Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less
98

 
(618
)
 
87

Net increase (decrease) in short-term borrowings with original maturities of three months or less
62,993

 
(103,063
)
 
(15,909
)
Proceeds from issuance of short-term debt
125,000

 
—

 
—

Repayment of short-term debt
(75,000
)
 
—

 
—

Proceeds from issuance of long-term debt
150,000

 
75,000

 
—

Repayment of long-term debt
(200,000
)
 
(75,000
)
 
—

Withheld shares for employee taxes on vested share-based compensation
(3,828
)
 
(2,416
)
 
(3,260
)
Net proceeds from issuance of common stock
—

 
13,220

 
104,435

Common stock dividends
(134,873
)
 
(117,274
)
 
(131,765
)
Other
(756
)
 
2,460

 
3,306

Net cash used in financing activities
(76,366
)
 
(207,691
)
 
(43,106
)
Net increase (decrease) in cash and equivalents
(3,222
)
 
(40,192
)
 
54,840

Cash and cash equivalents, January 1
14,924

 
55,116

 
276

Cash and cash equivalents, December 31
$
11,702

 
$
14,924

 
$
55,116


NOTES TO CONDENSED FINANCIAL INFORMATION

The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. All HEI subsidiaries are reflected in the Condensed Financial Statements under the equity method.
Long-term debt
The components of long-term debt, net, were as follows:
December 31
2017
 
2016
(dollars in thousands)
 

 
 

HEI 2.99% term loan, due 2022
$
150,000

 
$
—

HEI 5.67% senior note, due 2021
50,000

 
50,000

HEI 3.99% senior note, due 2023
50,000

 
50,000

HEI Term loans (LIBOR + 0.75%), paid in 2017
—

 
200,000

Less unamortized debt issuance costs
(412
)
 
(241
)
Long-term debt, net
$
249,588

 
$
299,759

The aggregate payments of principal required within five years after December 31, 2017 on long-term debt are nil in 2018, 2019 and 2020 and $50 million in 2021 and $150 million in 2022.
Indemnities
As of December 31, 2017, 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.
Income taxes
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.
Dividends from HEI subsidiaries
In 2017, 2016 and 2015, cash dividends received from subsidiaries were $125 million, $130 million and $121 million, respectively.
Supplemental disclosures of noncash activities
In 2017, 2016 and 2015, $2.8 million, $2.3 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 2017, 2016 and 2015, $2.8 million, $2.3 million and $0.3 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.
In 2017, $3.6 million of HEI notes receivable from Hamakua Energy, LLC were converted to equity in a noncash transaction.
Under the HEI DRIP, common stock dividends reinvested by shareholders in HEI common stock in noncash transactions amounted to nil, $17 million and nil in 2017, 2016 and 2015, respectively. From March 6, 2014 through January 5, 2016, and from December 7, 2016 to date, HEI satisfied the share purchase requirements of the DRIP through open market purchases of its common stock rather than new issuances.