XML 70 R47.htm IDEA: XBRL DOCUMENT v3.22.4
Retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2022
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 2022 and 2021 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, 2022 and 2021 were as follows:
 20222021
(in thousands)Pension
benefits		Other
benefits		Pension
benefits		Other
benefits
HEI consolidated
Benefit obligation, January 1$2,644,639 $218,151 $2,624,530 $226,421 
Service cost78,173 2,580 81,432 2,827 
Interest cost80,062 6,502 75,361 6,122 
Actuarial gains(848,905)(60,283)(43,300)(8,527)
Participants contributions— 3,348 — 2,943 
Benefits paid and expenses(97,204)(12,862)(93,384)(11,635)
Benefit obligation, December 311,856,765 157,436 2,644,639 218,151 
Fair value of plan assets, January 12,320,745 239,311 2,089,491 219,873 
Actual return on plan assets(461,669)(39,469)271,443 28,130 
Employer contributions42,542 — 51,777 — 
Participants contributions— 3,348 — 2,943 
Benefits paid and expenses(95,239)(12,643)(91,966)(11,635)
Fair value of plan assets, December 311,806,379 190,547 2,320,745 239,311 
Accrued benefit asset (liability), December 31$(50,386)$33,111 $(323,894)$21,160 
Other assets$21,012 $33,526 $23,675 $21,663 
Defined benefit pension and other postretirement benefit plans liability
(71,398)(415)(347,569)(503)
Accrued benefit asset (liability), December 31$(50,386)$33,111 $(323,894)$21,160 
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os)$347,799 $(19,975)$557,564 $2,395 
Recognized during year – prior service credit— 928 — 1,533 
Recognized during year – net actuarial gain (loss)(27,412)12 (27,245)(203)
Occurring during year – net actuarial gain(245,969)(7,203)(182,520)(23,700)
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 3174,418 (26,238)347,799 (19,975)
Cumulative impact of PUC D&Os(55,201)19,486 (324,162)19,166 
AOCI debit/(credit), December 31$19,217 $(6,752)$23,637 $(809)
Net actuarial loss (gain)$74,418 $(25,363)$347,799 $(18,172)
Prior service gain— (875)— (1,803)
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 3174,418 (26,238)347,799 (19,975)
Cumulative impact of PUC D&Os(55,201)19,486 (324,162)19,166 
AOCI debit/(credit), December 3119,217 (6,752)23,637 (809)
Income taxes (benefits)(5,088)1,740 (6,199)209 
AOCI debit/(credit), net of taxes (benefits), December 31$14,129 $(5,012)$17,438 $(600)
As shown in the table above, as of December 31, 2022, the other postretirement benefit plan with APBO in excess of plan assets is an unfunded plan, and as of December 31, 2021, the other postretirement benefit plans with APBOs in excess of plan assets are unfunded plans.
 20222021
(in thousands)Pension
benefits		Other
benefits		Pension
benefits		Other
benefits
Hawaiian Electric consolidated
Benefit obligation, January 1$2,464,944 $209,470 $2,440,758 $217,074 
Service cost75,845 2,554 79,463 2,802 
Interest cost74,363 6,227 70,235 5,875 
Actuarial gains(804,498)(58,253)(39,755)(7,779)
Participants contributions— 3,286 — 2,886 
Benefits paid and expenses(88,450)(12,750)(85,425)(11,388)
Transfers(6,079)— (332)— 
Benefit obligation, December 311,716,125 150,534 2,464,944 209,470 
Fair value of plan assets, January 12,142,617 235,525 1,909,730 216,315 
Actual return on plan assets(426,825)(38,764)266,922 27,712 
Employer contributions41,894 — 51,079 — 
Participants contributions— 3,286 — 2,886 
Benefits paid and expenses(87,952)(12,541)(84,852)(11,388)
Other(3,854)(12)(262)— 
Fair value of plan assets, December 311,665,880 187,494 2,142,617 235,525 
Accrued benefit asset (liability), December 31$(50,245)$36,960 $(322,327)$26,055 
Other assets$— $36,960 $— $26,055 
Other liabilities (short-term)(497)— (547)— 
Defined benefit pension and other postretirement benefit plans liability
(49,748)— (321,780)— 
Accrued benefit asset (liability), December 31$(50,245)$36,960 $(322,327)$26,055 
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os)$329,645 $(20,231)$538,521 $1,181 
Recognized during year – prior service credit— 925 — 1,530 
Recognized during year – net actuarial loss(26,358)— (27,534)(206)
Occurring during year – net actuarial gain(246,023)(6,096)(181,342)(22,736)
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 3157,264 (25,402)329,645 (20,231)
Cumulative impact of PUC D&Os(55,201)19,486 (324,162)19,166 
AOCI debit/(credit), December 31$2,063 $(5,916)$5,483 $(1,065)
Net actuarial loss (gain)$57,264 $(24,530)$329,645 $(18,434)
Prior service gain— (872)— (1,797)
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 3157,264 (25,402)329,645 (20,231)
Cumulative impact of PUC D&Os(55,201)19,486 (324,162)19,166 
AOCI debit/(credit), December 312,063 (5,916)5,483 (1,065)
Income taxes (benefits)(531)1,523 (1,412)274 
AOCI debit/(credit), net of taxes (benefits), December 31$1,532 $(4,393)$4,071 $(791)
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 3120222021Target
Range3
20222021Target
Range3
Assets held by category        
U.S. equity securities58 %59 %50 %
40-65%
57 %58 %50 %
40-65%
Non-U.S equity securities13 13 15 
5-25%
15 15 15 
5-25%
Fixed income securities 27 27 30 
20-60%
28 27 30 
20-60%
Private equity2 1 5 
0-10%
— — 5 
0-10%
 100 %100 %100 % 100 %100 %100 % 
1     Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2022 and 2021, 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.
3    Broad range for equity securities is a minimum of 60% and a maximum of 80% for pension benefits and 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 benefitsOther benefits
  Fair value measurements using Fair value measurements using
(in millions)December 31Quoted prices in active markets for identical assets
 (Level 1)		Significant other observable inputs
(Level 2)		December 31Quoted prices in active markets for identical assets
 (Level 1)		Significant other observable inputs
(Level 2)
2022      
U.S. equity securities$387 $387 $— $48 $48 $— 
Non-U.S. equity securities147 147 — 18 18 — 
U.S. equity index and exchange-traded funds580 580 — 58 58 — 
Non-U.S. equity investments at net asset value (NAV)75 — — 10 — — 
   Total equity investments
1,189 1,114 — 134 124 — 
Fixed income securities83 10 73 — — — 
Fixed income mutual and exchange-traded funds225 225 — 50 50 — 
Fixed income investments at NAV
226 — — 3 — — 
   Total fixed income investments
534 235 73 53 50 — 
Private equity at NAV34 — — — — — 
Cash equivalents, fund and at NAV48 15 — 4 3 — 
Total1,805 $1,364 $73 191 $177 $— 
Cash, receivables and payables, net
1   —   
Fair value of plan assets
$1,806   $191   
2021      
U.S. equity securities$432 $431 $1 $53 $53 $— 
Non-U.S. equity securities188 188 — 24 24 — 
U.S. equity index and exchange-traded funds830 830 — 84 84 — 
Non-U.S. equity investments at NAV96 — — 12 — — 
   Total equity investments
1,546 1,449 1 173 161 — 
Fixed income securities and mutual funds393 146 247 58 56 2 
Fixed income investments at NAV
307 — — 5 — — 
   Total fixed income investments
700 146 247 63 56 2 
Private equity at NAV22 — — — — — 
Cash equivalents, fund and at NAV50 15 — 3 3 — 
Total2,318 $1,610 $248 239 $220 $2 
Cash, receivables and payables, net
3   —   
Fair value of plan assets
$2,321   $239   
The following table represents assets measured at NAV.
Pension benefitsOther benefits
Measured at NAVDecember 31Redemption frequency Redemption notice periodDecember 31Redemption frequency Redemption notice period
(in millions)
2022
Non-U.S. equity funds (a)$75 Daily-Monthly
5-30 days
$10 Daily-Monthly
5-30 days
Fixed income investments (b)
226 Daily
15 days
3 Daily
15 days
Private equity (c)34 NANA— NANA
Cash equivalents (d)33 Daily
0-1 day
1 Daily
0-1 day
$368 $14 
2021
Non-U.S. equity funds (a)$96 Daily-Monthly
5-30 days
$12 Daily-Monthly
5-30 days
Fixed income investments (b)
307 Daily
15 days
5 Daily
15 days
Private equity (c)22 NANA— NANA
Cash equivalents (d)35 Daily
0-1 day
— Daily
0-1 day
$460 $17 
NA Not applicable
None of the investments presented in the tables above have unfunded commitments, other than private equity disclosed in (c) below.
(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, 2022 were: daily, 59% and monthly, 41%, and as of December 31, 2021 were daily, 61% and monthly, 39%. Redemption frequency for other benefits assets as of December 31, 2022 were: daily, 56% and monthly, 44% and as of December 31, 2021 were: daily, 57% and monthly, 43%.
(b)     Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Bloomberg US Long Corporate A or Better Bond Index through investments in US-dollar denominated fixed income securities and commingled vehicles.
(c)     Represents investment in a private equity fund. The fund is valued as reported by the General Partner, based on the valuation of the underlying investments. As of December 31, 2022 and 2021, the unfunded commitment of the private equity fund was $56 million and $66 million, respectively; the fund does not allow redemptions but may be dissolved with six months written notice. The termination date of the fund is November 1, 2100, unless dissolved earlier.
(d)     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 benefitsOther benefits
December 31202220212020202220212020
Benefit obligation
Discount rate1
5.67 %3.05 %2.92 %5.66 %3.07 %2.83 %
Rate of compensation increase3.5 3.5 3.5 NA   NA   NA   
Net periodic pension/benefit cost (years ended)
Discount rate2
3.05 2.92 3.61 3.07 2.83 3.52 
Expected return on plan assets3
7.25 7.25 7.25 7.25 7.25 7.25 
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, 2022, 2021 and 2020. ASB’s pension benefits discount rate at December 31, 2022, 2021 and 2020 was 5.63%, 3.04% and 2.76%, 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, 2022, 2021 and 2020 was 3.04%, 2.76% and 3.49%. All other disclosed rates apply to the Company and the Utilities.
3     HEI and the Utilities’ plan assets only (gross return). For 2022, 2021 and 2020, ASB’s expected return on plan assets was 3.24%, 2.96% and 3.69%, respectively.
4     HEI 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. NA for ASB.
Schedule of components of net periodic benefit cost for consolidated HEI
The components of NPPC and NPBC were as follows:
 Pension benefitsOther benefits
(in thousands)202220212020202220212020
HEI consolidated
Service cost$78,173 $81,432 $73,387 $2,580 $2,827 $2,537 
Interest cost80,062 75,361 81,335 6,502 6,122 7,407 
Expected return on plan assets(141,266)(132,223)(113,800)(13,621)(12,957)(12,124)
Amortization of net prior service (gain) cost— — 8 (928)(1,533)(1,761)
Amortization of net actuarial losses
27,412 27,245 33,456 (12)203 208 
Net periodic pension/benefit cost44,381 51,815 74,386 (5,479)(5,338)(3,733)
Impact of PUC D&Os37,148 27,963 20,997 4,966 4,839 3,179 
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$81,529 $79,778 $95,383 $(513)$(499)$(554)
Hawaiian Electric consolidated
Service cost
$75,845 $79,463 $71,604 $2,554 $2,802 $2,515 
Interest cost
74,363 70,235 75,484 6,227 5,875 7,103 
Expected return on plan assets
(133,873)(125,404)(107,369)(13,381)(12,755)(11,957)
Amortization of net prior service (gain) cost
— — 9 (925)(1,530)(1,758)
Amortization of net actuarial losses
26,358 27,534 30,566 — 206 207 
Net periodic pension/benefit cost42,693 51,828 70,294 (5,525)(5,402)(3,890)
Impact of PUC D&Os
37,148 27,963 20,997 4,966 4,839 3,179 
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)
$79,841 $79,791 $91,291 $(559)$(563)$(711)
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 consolidatedHawaiian Electric consolidated
December 312022202120222021
(in billions)
Defined benefit plans - ABOs
$1.7 $2.3 $1.5 $2.1 
Defined benefit plans with PBOs in excess of plan assets
     PBOs
1.8 2.5 1.7 2.5 
     Fair value of plan assets
1.7 2.2 1.7 2.1