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Retirement benefits (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Schedule of changes in the obligations and assets of the Company's retirement benefit plans and the changes in AOCI (gross) and the funded status

The changes in the obligations and assets of the Company’s and Utilities’ retirement benefit plans and the changes in AOCI (gross) for 2020 and 2019 and the funded status of these plans and amounts related to these plans reflected in the Company’s and Utilities’ consolidated balance sheets as of December 31, 2020 and 2019 were as follows:

			2020												2019
(in thousands)			Pension benefits						Other benefits						Pension benefits						Other benefits
HEI consolidated
Benefit obligation, January 1			$	2,278,283					$	215,639					$	1,991,384					$	188,666
Service cost			73,387						2,537						62,135						2,209
Interest cost			81,335						7,407						84,267						8,004
Actuarial losses			275,973						9,785						224,421						25,998
Participants contributions			—						2,768						—						2,351
Benefits paid and expenses			(84,448)						(11,715)						(83,924)						(11,589)
Benefit obligation, December 31			2,624,530						226,421						2,278,283						215,639
Fair value of plan assets, January 1			1,799,200						200,831						1,479,067						173,693
Actual return on plan assets			302,566						27,678						354,072						35,525
Employer contributions			70,844						—						48,629						—
Participants contributions			—						2,768						—						2,351
Benefits paid and expenses			(83,119)						(11,404)						(82,568)						(10,738)
Fair value of plan assets, December 31			2,089,491						219,873						1,799,200						200,831
Accrued benefit asset (liability), December 31			$	(535,039)					$	(6,548)					$	(479,083)					$	(14,808)
Other assets			$	25,851					$	—					$	19,396					$	—
Defined benefit pension and other postretirement benefit plans liability			(560,890)						(6,548)						(498,479)						(14,808)
Accrued benefit asset (liability), December 31			$	(535,039)					$	(6,548)					$	(479,083)					$	(14,808)
AOCI debit, January 1 (excluding impact of PUC D&Os)			$	503,821					$	6,610					$	536,920					$	1,962
Recognized during year – prior service credit (cost)			(8)						1,761						42						1,806
Recognized during year – net actuarial (losses) gains			(33,456)						(208)						(15,479)						13
Occurring during year – net actuarial losses (gains)			87,207						(5,768)						(17,662)						2,829
AOCI debit before cumulative impact of PUC D&Os, December 31			557,564						2,395						503,821						6,610
Cumulative impact of PUC D&Os			(534,594)						(1,177)						(474,628)						(7,458)
AOCI debit/(credit), December 31			$	22,970					$	1,218					$	29,193					$	(848)
Net actuarial loss			$	557,564					$	5,731					$	503,813					$	11,707
Prior service cost (gain)			—						(3,336)						8						(5,097)
AOCI debit before cumulative impact of PUC D&Os, December 31			557,564						2,395						503,821						6,610
Cumulative impact of PUC D&Os			(534,594)						(1,177)						(474,628)						(7,458)
AOCI debit/(credit), December 31			22,970						1,218						29,193						(848)
Income taxes (benefits)			(5,988)						(313)						(7,677)						219
AOCI debit/(credit), net of taxes (benefits), December 31			$	16,982					$	905					$	21,516					$	(629)
As of December 31, 2020 and 2019, the other postretirement benefit plans shown in the table above had APBOs in excess of plan assets.

			2020												2019
(in thousands)			Pension benefits						Other benefits						Pension benefits						Other benefits
Hawaiian Electric consolidated
Benefit obligation, January 1			$	2,110,904					$	207,073					$	1,837,653					$	181,162
Service cost			71,604						2,515						60,461						2,191
Interest cost			75,484						7,103						77,851						7,673
Actuarial losses			260,102						9,151						212,310						25,123
Participants contributions			—						2,717						—						2,311
Benefits paid and expenses			(77,336)						(11,485)						(77,060)						(11,382)
Transfers			—						—						(311)						(5)
Benefit obligation, December 31			2,440,758						217,074						2,110,904						207,073
Fair value of plan assets, January 1			1,640,417						197,564						1,343,113						170,862
Actual return on plan assets			276,453						27,207						326,204						34,928
Employer contributions			69,720						—						47,808						—
Participants contributions			—						2,717						—						2,311
Benefits paid and expenses			(76,860)						(11,173)						(76,581)						(10,532)
Other			—						—						(127)						(5)
Fair value of plan assets, December 31			1,909,730						216,315						1,640,417						197,564
Accrued benefit liability, December 31			$	(531,028)					$	(759)					$	(470,487)					$	(9,509)
Other liabilities (short-term)			(535)						(720)						(518)						(715)
Defined benefit pension and other postretirement benefit plans liability			(530,493)						(39)						(469,969)						(8,794)
Accrued benefit liability, December 31			$	(531,028)					$	(759)					$	(470,487)					$	(9,509)
AOCI debit, January 1 (excluding impact of PUC D&Os)			$	478,078					$	5,730					$	502,189					$	1,551
Recognized during year – prior service credit (cost)			(9)						1,758						(7)						1,803
Recognized during year – net actuarial losses			(30,566)						(207)						(14,658)						—
Occurring during year – net actuarial losses (gains)			91,018						(6,100)						(9,446)						2,376
AOCI debit before cumulative impact of PUC D&Os, December 31			538,521						1,181						478,078						5,730
Cumulative impact of PUC D&Os			(534,594)						(1,177)						(474,628)						(7,458)
AOCI debit/(credit), December 31			$	3,927					$	4					$	3,450					$	(1,728)
Net actuarial loss			$	538,521					$	4,508					$	478,069					$	10,815
Prior service cost (gain)			—						(3,327)						9						(5,085)
AOCI debit before cumulative impact of PUC D&Os, December 31			538,521						1,181						478,078						5,730
Cumulative impact of PUC D&Os			(534,594)						(1,177)						(474,628)						(7,458)
AOCI debit/(credit), December 31			3,927						4						3,450						(1,728)
Income taxes (benefits)			(1,011)						(1)						(888)						445
AOCI debit/(credit), net of taxes (benefits), December 31			$	2,916					$	3					$	2,562					$	(1,283)

Schedule of asset allocation of plan assets

The asset allocation of defined benefit retirement plans to equity and fixed income securities (excluding cash) and related investment policy targets and ranges were as follows:

			Pension benefits1																								Other benefits2
															Investment policy																								Investment policy
December 31			2020						2019						Target						Range						2020						2019						Target						Range
Assets held by category
Equity securities			72		%				71		%				70		%				65-75						73		%				71		%				70		%				65-75
Fixed income securities			28						29						30						25-35						27						29						30						25-35
			100		%				100		%				100		%										100		%				100		%				100		%

1     Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2020 and 2019, nearly all of ASB’s pension assets were invested in fixed income securities.

2    Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits.

Assets held in various trusts for the retirement benefit plans are measured at fair value on a recurring basis and were as follows:

			Pension benefits																								Other benefits
									Fair value measurements using																								Fair value measurements using
(in millions)			December 31						Quoted prices in active markets for identical assets (Level 1)						Significant other observable inputs (Level 2)						Significant unobservable inputs (Level 3)						December 31						Level 1						Level 2						Level 3
2020
Equity securities			$	540					$	540					$	—					$	—					$	68					$	68					$	—					$	—
Equity index and exchange-traded funds			734						734						—						—						77						77						—						—
Equity investments at net asset value (NAV)			102						—						—						—						13						—						—						—
Total equity investments			1,376						1,274						—						—						158						145						—						—
Fixed income securities and public mutual funds			363						105						258						—						53						51						2						—
Fixed income investments at NAV			278						—						—						—						5						—						—						—
Total fixed income investments			641						105						258						—						58						51						2						—
Cash equivalents, fund and at NAV			68						25						—						—						4						3						—						—
Total			2,085						$	1,404					$	258					$	—					220						$	199					$	2					$	—
Cash, receivables and payables, net			4																								—
Fair value of plan assets			$	2,089																							$	220
2019
Equity securities			$	470					$	470					$	—					$	—					$	61					$	61					$	—					$	—
Equity index and exchange-traded funds			610						610						—						—						69						69						—						—
Equity investments at NAV			78						—						—						—						11						—						—						—
Total equity investments			1,158						1,080						—						—						141						130						—						—
Fixed income securities and public mutual funds			353						123						230						—						52						49						2						—
Fixed income investments at NAV			245						—						—						—						4						—						—						—
Total fixed income investments			598						123						230						—						56						49						2						—
Cash equivalents at NAV			39						—						—						—						4						—						—						—
Total			1,795						$	1,203					$	230					$	—					201						$	179					$	2					$	—
Cash, receivables and payables, net			4																								—
Fair value of plan assets			$	1,799																							$	201

Pension benefits

Other benefits

Measured at net asset value

December 31

Redemption frequency

Redemption notice period

December 31

Redemption frequency

Redemption notice period

(in millions)

2020

Non U.S. equity funds (a)

$

102

Daily-Monthly

5-30 days

$

13

Daily-Monthly

5-30 days

Fixed income investments (b)

278

Monthly

15 days

5

Monthly

15 days

Cash equivalents (c)

43

Daily

0-1 day

1

Daily

0-1 day

$

423

$

19

2019

Non U.S. equity funds (a)

$

78

Daily-Monthly

5-30 days

$

11

Daily-Monthly

5-30 days

Fixed income investments (b)

245

Monthly

15 days

4

Monthly

15 days

Cash equivalents (c)

39

Daily

0-1 day

4

Daily

0-1 day

$

362

$

19

None of the investments presented in the tables above have unfunded commitments.

(a)     Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2020 were: daily, 62% and monthly, 38%, and as of December 31, 2019 were daily, 60% and monthly, 40%. Redemption frequency for other benefits assets as of December 31, 2020 were: daily, 58% and monthly, 42% and as of December 31, 2019 were: daily, 59% and monthly, 41%.

(b)     Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles.

(c)     Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers.

Schedule of weighted-average assumptions used in accounting for plans

The following weighted-average assumptions were used in the accounting for the plans:

			Pension benefits																		Other benefits
December 31			2020						2019						2018						2020						2019						2018
Benefit obligation
Discount rate1			2.92		%				3.61		%				4.31		%				2.83		%				3.52		%				4.34		%
Rate of compensation increase			3.5						3.5						3.5						NA						NA						NA
Net periodic pension/benefit cost (years ended)
Discount rate2			3.61						4.31						3.74						3.52						4.34						3.72
Expected return on plan assets3			7.25						7.25						7.50						7.25						7.25						7.50
Rate of compensation increase4			3.5						3.5						3.5						NA						NA						NA

NA  Not applicable

1 HEI and the Utilities pension benefits discount rate only at December 31, 2020 and 2019. ASB’s pension benefits discount rate at December 31, 2020 and 2019 was 2.76% and 3.49%, respectively. All other disclosed rates apply to the Company and the Utilities.

2 ASB’s pension benefits discount rate for the year ended December 31, 2020 was 3.49%. All other disclosed rates apply to the Company and the Utilities.

3 HEI’s and Utilities’ plan assets only. For 2020, 2019 and 2018, ASB’s expected return on plan assets was 3.69%, 4.51% and 3.94%, respectively.

4 The Company and the Utilities use a graded rate of compensation increase assumption based on age. The rate provided above is an average across all future years of service for the current population.

Schedule of components of net periodic benefit cost for consolidated HEI

The components of NPPC and NPBC were as follows:

			Pension benefits																		Other benefits
(in thousands)			2020						2019						2018						2020						2019						2018
HEI consolidated
Service cost			$	73,387					$	62,135					$	68,987					$	2,537					$	2,209					$	2,721
Interest cost			81,335						84,267						77,374						7,407						8,004						7,933
Expected return on plan assets			(113,800)						(111,989)						(108,953)						(12,124)						(12,356)						(12,908)
Amortization of net prior service gain			8						(42)						(42)						(1,761)						(1,806)						(1,805)
Amortization of net actuarial losses			33,456						15,479						30,084						208						(13)						95
Net periodic pension/benefit cost			74,386						49,850						67,450						(3,733)						(3,962)						(3,964)
Impact of PUC D&Os			20,997						48,143						25,828						3,179						3,258						3,842
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)			$	95,383					$	97,993					$	93,278					$	(554)					$	(704)					$	(122)
Hawaiian Electric consolidated
Service cost			$	71,604					$	60,461					$	67,359					$	2,515					$	2,191					$	2,704
Interest cost			75,484						77,851						71,294						7,103						7,673						7,628
Expected return on plan assets			(107,369)						(104,632)						(102,368)						(11,957)						(12,180)						(12,713)
Amortization of net prior service (gain) cost			9						7						8						(1,758)						(1,803)						(1,803)
Amortization of net actuarial losses			30,566						14,658						27,302						207						—						98
Net periodic pension/benefit cost			70,294						48,345						63,595						(3,890)						(4,119)						(4,086)
Impact of PUC D&Os			20,997						48,143						25,828						3,179						3,258						3,842
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)			$	91,291					$	96,488					$	89,423					$	(711)					$	(861)					$	(244)

Schedule of projected benefit obligations and assets

Additional information on the defined benefit pension plans’ accumulated benefit obligations (ABOs), which do not consider projected pay increases (unlike the PBOs shown in the table above), and pension plans with ABOs and PBOs in excess of plan assets were as follows:

			HEI consolidated												Hawaiian Electric consolidated
December 31			2020						2019						2020						2019
(in billions)
Defined benefit plans - ABOs			$	2.3					$	2.0					$	2.1					$	1.8
Defined benefit plans with ABO in excess of plan assets
ABOs			2.1						1.9						2.1						1.8
Fair value of plan assets			2.0						1.7						1.9						1.6
Defined benefit plans with PBOs in excess of plan assets
PBOs			2.5						2.2						2.4						2.1
Fair value of plan assets			2.0						1.7						1.9						1.6

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