XML 70 R50.htm IDEA: XBRL DOCUMENT v3.20.4

Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of income taxes attributable to net income for common stock

The components of income taxes attributable to net income for common stock were as follows:

			HEI consolidated																		Hawaiian Electric consolidated
Years ended December 31			2020						2019						2018						2020						2019						2018
(in thousands)
Federal
Current			$	23,207					$	28,736					$	42,903					$	31,950					$	21,751					$	29,649
Deferred			(4,215)						(4,353)						(6,099)						(5,408)						(7,793)						(5,245)
Deferred tax credits, net*			10,979						13,410						(12)						1,549						13,155						(12)
			29,971						37,793						36,792						28,091						27,113						24,392
State
Current			8,430						10,472						17,361						3,768						5,579						13,210
Deferred			2,509						(10,732)						(3,269)						8,559						(8,491)						(2,737)
Deferred tax credits, net*			—						14,104						(87)						—						14,104						(87)
			10,939						13,844						14,005						12,327						11,192						10,386
Total			$	40,910					$	51,637					$	50,797					$	40,418					$	38,305					$	34,778

*     In 2020, primarily represents federal tax credits related to Mauo’s solar-plus-storage project, deferred and amortized starting in 2020. In 2019, primarily represents federal and state credits related to Hawaiian Electric’s West Loch PV project, deferred and amortized starting in 2020.

Schedule of reconciliation of amount of income taxes computed at federal statutory rate

A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows:

			HEI consolidated																		Hawaiian Electric consolidated
Years ended December 31			2020						2019						2018						2020						2019						2018
(in thousands)
Amount at the federal statutory income tax rate			$	50,531					$	56,996					$	53,437					$	44,468					$	41,399					$	37,889
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit			9,448						11,658						11,832						9,658						8,703						8,080
Net deferred tax asset (liability) adjustment related to the Tax Act			(11,267)						(9,255)						(9,540)						(11,267)						(9,255)						(9,285)
Other, net			(7,802)						(7,762)						(4,932)						(2,441)						(2,542)						(1,906)
Total			$	40,910					$	51,637					$	50,797					$	40,418					$	38,305					$	34,778
Effective income tax rate			17.0		%				19.0		%				20.0		%				19.1		%				19.4		%				19.3		%

Schedule of deferred tax assets and liabilities

The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows:

			HEI consolidated												Hawaiian Electric consolidated
December 31			2020						2019						2020						2019
(in thousands)
Deferred tax assets
Regulatory liabilities, excluding amounts attributable to property, plant and equipment			$	93,684					$	100,427					$	93,684					$	100,427
Operating lease liabilities			41,582						51,573						34,586						45,608
Revenue taxes			22,726						20,922						22,726						20,922
Allowance for bad debts			31,973						14,858						4,835						560
Other1			44,127						33,106						24,741						20,259
Total deferred tax assets			234,092						220,886						180,572						187,776
Deferred tax liabilities
Property, plant and equipment related			487,209						464,312						473,734						458,349
Operating lease right-of-use assets			41,370						51,542						34,586						45,608
Regulatory assets, excluding amounts attributable to property, plant and equipment			25,841						33,897						25,841						33,897
Retirement benefits			18,407						9,684						20,537						13,072
Other			56,354						40,776						23,672						14,001
Total deferred tax liabilities			629,181						600,211						578,370						564,927
Net deferred income tax liability			$	395,089					$	379,325					$	397,798					$	377,151

1     As of December 31, 2020, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $10.9 million and $5.8 million respectively, relating to the benefit of state tax credit carryforwards of $14.6 million and $7.8 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2020, a valuation allowance is not required.

Schedule of changes in total unrecognized tax benefits

The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2020, 2019 and 2018.

			HEI consolidated																		Hawaiian Electric consolidated
(in millions)			2020						2019						2018						2020						2019						2018
Unrecognized tax benefits, January 1			$	2.2					$	2.1					$	4.0					$	1.7					$	1.6					$	3.5
Additions based on tax positions taken during the year			0.2						0.5						0.3						0.2						0.5						0.3
Reductions based on tax positions taken during the year			—						—						—						—						—						—
Additions for tax positions of prior years			11.6						0.1						0.1						11.6						0.1						0.1
Reductions for tax positions of prior years			(0.1)						(0.2)						(0.1)						(0.1)						(0.2)						(0.1)
Lapses of statute of limitations			(0.2)						(0.3)						(2.2)						(0.2)						(0.3)						(2.2)
Settlement			(1.0)						—						—						(0.5)						—						—
Unrecognized tax benefits, December 31			$	12.7					$	2.2					$	2.1					$	12.7					$	1.7					$	1.6

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration