XML 33 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Retirement benefits
 6 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
Retirement benefits Retirement benefits
Defined benefit pension and other postretirement benefit plans information.  For the first six months of 2020, the Company contributed $17 million ($17 million by the Utilities) to its pension and other postretirement benefit plans, compared to $24 million ($23 million by the Utilities) in the first six months of 2019. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2020 is $71 million ($70 million by the Utilities, $1 million by HEI and nil by ASB), compared to $49 million ($48 million by the Utilities, $1 million by HEI and nil by ASB) in 2019. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2020, compared to $2 million ($1 million by the Utilities) paid in 2019.
The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows:
Three months ended June 30Six months ended June 30
 Pension benefitsOther benefitsPension benefitsOther benefits
(in thousands)20202019202020192020201920202019
HEI consolidated
Service cost$18,362  $15,382  $631  $542  $36,725  $30,764  $1,262  $1,083  
Interest cost20,164  21,033  1,856  1,997  40,327  42,066  3,711  3,994  
Expected return on plan assets(28,465) (27,999) (3,039) (3,086) (56,931) (55,997) (6,077) (6,172) 
Amortization of net prior period (gain)/cost
2  (11) (441) (452) 5  (22) (881) (904) 
Amortization of net actuarial (gains)/losses
8,058  3,839  51  (4) 16,115  7,678  101  (7) 
Net periodic pension/benefit cost (return)
18,121  12,244  (942) (1,003) 36,241  24,489  (1,884) (2,006) 
Impact of PUC D&Os6,261  12,278  777  811  12,523  24,557  1,554  1,622  
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$24,382  $24,522  $(165) $(192) $48,764  $49,046  $(330) $(384) 
Hawaiian Electric consolidated
Service cost$17,891  $15,001  $625  $538  $35,782  $30,002  $1,251  $1,075  
Interest cost18,715  19,414  1,781  1,918  37,430  38,828  3,563  3,835  
Expected return on plan assets(26,857) (26,164) (2,990) (3,036) (53,712) (52,328) (5,980) (6,071) 
Amortization of net prior period (gain)/cost
3  2  (439) (451) 5  4  (879) (902) 
Amortization of net actuarial losses
7,369  3,576  51  —  14,737  7,152  102  —  
Net periodic pension/benefit cost (return)
17,121  11,829  (972) (1,031) 34,242  23,658  (1,943) (2,063) 
Impact of PUC D&Os6,261  12,278  777  811  12,523  24,557  1,554  1,622  
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$23,382  $24,107  $(195) $(220) $46,765  $48,215  $(389) $(441) 
HEI consolidated recorded retirement benefits expense of $31 million ($29 million by the Utilities) in the first six months of 2020 and $29 million ($29 million by the Utilities) in the first six months of 2019 and charged the remaining net periodic benefit cost primarily to electric utility plant.
The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, any actual costs determined in accordance with GAAP that are over/under
amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case.
Defined contribution plans information.  For the first six months of 2020 and 2019, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $3.7 million and $3.6 million, respectively, and cash contributions were $4.6 million and $4.9 million, respectively. For the first six months of 2020 and 2019, the Utilities’ expenses for its defined contribution plan under the HEIRSP were $1.4 million and $1.3 million, respectively, and cash contributions were $1.4 million and $1.3 million, respectively.