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Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

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			2022						2021						2020						2022						2021						2020
(in thousands)
Federal
Current			$	77,595					$	51,455					$	23,207					$	75,118					$	42,794					$	31,950
Deferred			(37,410)						(11,689)						(4,215)						(39,646)						(12,109)						(5,408)
Deferred tax credits, net*			4,031						4,611						10,979						137						302						1,549
			44,216						44,377						29,971						35,609						30,987						28,091
State
Current			11,981						12,119						8,430						15,780						4,861						3,768
Deferred			4,914						6,290						2,509						(1,769)						8,279						8,559
Deferred tax credits, net*			56						21						—						56						21						—
			16,951						18,430						10,939						14,067						13,161						12,327
Total			$	61,167					$	62,807					$	40,910					$	49,676					$	44,148					$	40,418

*     In 2022, 2021 and 2020, primarily represents federal tax credits related to Mauo’s solar-plus-storage project, deferred and amortized starting in 2022, 2021 and 2020, respectively.

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			2022						2021						2020						2022						2021						2020
(in thousands)
Amount at the federal statutory income tax rate			$	63,881					$	65,281					$	50,531					$	50,526					$	46,995					$	44,468
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit			14,438						15,735						9,448						11,026						10,323						9,658
Net deferred tax asset (liability) adjustment related to the Tax Act			(9,886)						(9,886)						(11,267)						(9,886)						(9,886)						(11,267)
Other, net			(7,266)						(8,323)						(7,802)						(1,990)						(3,284)						(2,441)
Total			$	61,167					$	62,807					$	40,910					$	49,676					$	44,148					$	40,418
Effective income tax rate (%)			20.1						20.2						17.0						20.6						19.7						19.1

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			2022						2021						2022						2021
(in thousands)
Deferred tax assets
Regulatory liabilities, excluding amounts attributable to property, plant and equipment			$	82,488					$	87,817					$	82,488					$	87,817
Operating lease liabilities			45,016						35,449						37,472						29,661
Retirement benefits			7,692						—						6,852						—
Revenue taxes			51,392						35,040						51,392						35,040
Allowance for bad debts			22,734						26,217						2,195						7,156
Available-for-sale investments			120,405						11,728						—						—
Other1			39,399						46,790						20,287						20,529
Total deferred tax assets			369,126						243,041						200,686						180,203
Deferred tax liabilities
Property, plant and equipment related			511,832						500,659						497,929						490,713
Operating lease right-of-use assets			44,461						35,271						37,472						29,661
Regulatory assets, excluding amounts attributable to property, plant and equipment			22,183						23,700						22,183						23,700
Retirement benefits			—						6,863						—						8,261
Other			53,112						61,308						27,532						36,502
Total deferred tax liabilities			631,588						627,801						585,116						588,837
Net deferred income tax liability			$	262,462					$	384,760					$	384,430					$	408,634

1     As of December 31, 2022, HEI consolidated has deferred tax assets of $4.3 million relating to the benefit of state tax credit carryforwards of $5.6 million. 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, 2022, 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 2022, 2021 and 2020.

			HEI consolidated																		Hawaiian Electric consolidated
(in millions)			2022						2021						2020						2022						2021						2020
Unrecognized tax benefits, January 1			$	17.1					$	12.7					$	2.2					$	11.6					$	12.7					$	1.7
Additions based on tax positions taken during the year			19.0						2.8						0.2						0.1						0.3						0.2
Reductions based on tax positions taken during the year			(3.5)						(0.5)						—						—						—						—
Additions for tax positions of prior years			0.6						7.6						11.6						0.2						0.2						11.6
Reductions for tax positions of prior years			(2.6)						(5.5)						(0.1)						(0.2)						(1.6)						(0.1)
Lapses of statute of limitations			—						—						(0.2)						—						—						(0.2)
Settlement			—						—						(1.0)						—						—						(0.5)
Unrecognized tax benefits, December 31			$	30.6					$	17.1					$	12.7					$	11.7					$	11.6					$	12.7

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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.

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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.

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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.

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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.

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