Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of share-based compensation expense and related income tax benefit

The Company’s share-based compensation expense and related income tax benefit were as follows:

(in millions)	2013		2012		2011
Share-based compensation expense 1	$	7.8	$	6.7	$	4.3
Income tax benefit	2.8		2.4		1.5

¹  The Company has not capitalized any share-based compensation cost.

Schedule of effects of revision on previous disclosure

The table below illustrates the effects of this revision on the previous disclosure (the revised disclosure had no impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Income or Consolidated Statements of Cash Flows):

	2012						2011
(in millions)	As previously  filed		As revised		Difference		As previously  filed		As revised		Difference
Share-based compensation expense	$	5.9	$	6.7	$	0.8	$	3.8	$	4.3	$	0.5
Income tax benefit	2.0		2.4		0.4		1.3		1.5		0.2

Schedule of common stock granted to nonemployee directors

HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows:

($ in millions)	2013		2012		2011
Shares granted	33,184		29,448		34,908
Fair value	$	0.8	$	0.8	$	0.8
Income tax benefit	0.3		0.3		0.3

Summary of information about nonqualified stock options

Information about HEI’s NQSOs was as follows:

	2013				2012				2011
	Shares		(1)		Shares		(1)		Shares		(1)
Outstanding, January 1	14,000		$	20.49	55,500		$	20.92	215,500		$	20.76
Granted	—		—		—		—		—		—
Exercised	(14,000	)	20.49		(41,500	)	21.06		(160,000	)	20.70
Forfeited	—		—		—		—		—		—
Expired	—		—		—		—		—		—
Outstanding, December 31	—		$	—	14,000		$	20.49	55,500		$	20.92
Exercisable, December 31	—		$	—	14,000		$	20.49	55,500		$	20.92

(1) Weighted-average exercise price

Schedule of nonqualified stock options activity and statistics

NQSO activity and statistics were as follows:

(dollars in thousands)	2013		2012		2011
Cash received from exercise	$	287	$	874	$	3,312
Intrinsic value of shares exercised 1	128		354		1,270
Tax benefit realized for the deduction of exercises	50		138		181

¹  Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option.

Summary of information about stock appreciation rights

Information about HEI’s SARs is summarized as follows:

	2013			2012				2011
	Shares	(1)		Shares		(1)		Shares		(1)
Outstanding, January 1	164,000	$	26.12	282,000		$	26.14	450,000		$	26.13
Granted	—	—		—		—		—		—
Exercised	—	—		(114,000	)	26.17		(110,000	)	26.09
Forfeited	—	—		—		—		—		—
Expired	—	—		(4,000	)	26.18		(58,000	)	26.13
Outstanding, December 31	164,000	$	26.12	164,000		$	26.12	282,000		$	26.14
Exercisable, December 31	164,000	$	26.12	164,000		$	26.12	282,000		$	26.14

(1) Weighted-average exercise price

Schedule of stock appreciation rights by grant year

December 31, 2013		Outstanding & Exercisable (Vested)
Year of  Grant	Range of  exercise prices	Number of shares underlying SARs	Weighted-average  remaining contractual life	Weighted-average  exercise price
2004	$26.02	62,000	0.3	$	26.02
2005	26.18	102,000	1.3	26.18
	$26.02 –26.18	164,000	0.9	$	26.12

Schedule of stock appreciation rights activity and statistics

SARs activity and statistics were as follows:

(dollars in thousands, except prices)	2013		2012		2011
Intrinsic value of shares exercised 1	$	—	$	197	$	64
Tax benefit realized for the deduction of exercises	—		77		25

¹  Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the right.

Schedule of restricted share and stock awards

Information about HEI’s grants of restricted shares and restricted stock awards was as follows:

	2013				2012				2011
	Shares		(1)		Shares		(1)		Shares		(1)
Outstanding, January 1	9,005		$	22.21	46,807		$	24.45	89,709		$	24.64
Granted	—		—		—		—		—		—
Vested	(4,502	)	22.21		(37,802	)	24.99		(40,102	)	24.83
Forfeited	—		—		—		—		(2,800	)	24.93
Outstanding, December 31	4,503		$	22.21	9,005		$	22.21	46,807		$	24.45

(1) Weighted-average grant-date fair value per share based on the closing or average price of HEI common stock on the date of grant.

Schedule of restricted stock units

Restricted stock units. Information about HEI’s grants of restricted stock units was as follows:

	2013					2012					2011
	Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, January 1	315,094			$	22.82	247,286			$	21.80	146,500			$	19.80
Granted	111,231			26.88		98,446			25.99		101,786			24.68
Vested	(118,885		)	20.48		(25,728		)	24.68		—			—
Forfeited	(19,289		)	25.62		(4,910		)	24.92		(1,000		)	22.60
Outstanding, December 31	288,151			$	25.17	315,094			$	22.82	247,286			$	21.80
Total weighted-average grant-date fair value of shares granted ($ millions)	$	3.0				$	2.6				$	2.5

(1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders

Information about HEI’s LTIP grants linked to TRS was as follows:

	2013					2012					2011
	Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, January 1	239,256			$	29.12	197,385			$	25.94	126,782			$	20.33
Granted	91,038			32.69		81,223			30.71		75,015			35.46
Vested (settled or lapsed)	(87,753		)	22.45		(35,397		)	14.85		—			—
Forfeited	(10,414		)	32.72		(3,955		)	30.82		(4,412		)	29.56
Outstanding, December 31	232,127			$	32.88	239,256			$	29.12	197,385			$	25.94
Total weighted-average grant-date fair value of shares granted ($ millions)	$	3.0				$	2.5				$	2.7

(1) Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS)

The following table summarizes the assumptions used to determine the fair value of the LTIP awards linked to TRS and the resulting fair value of LTIP awards granted:

	2013			2012			2011
Risk-free interest rate	0.38		%	0.33		%	1.25		%
Expected life in years	3			3			3
Expected volatility	19.4		%	25.3		%	27.8		%
Range of expected volatility for Peer Group	12.4% to 25.3%			15.5% to 34.5%			21.2% to 82.6%
Grant date fair value (per share)	$	32.69		$	30.71		$	35.46

Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions

Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:

	2013					2012					2011
	Shares			(1)		Shares			(1)		Shares			(1)
Outstanding, January 1	247,175			$	25.04	182,498			$	22.63	161,310			$	18.66
Granted	120,399			26.89		125,157			26.05		113,831			24.96
Vested and settled	(18,280		)	18.95		—			—		—			—
Cancelled	(41,599		)	24.97		(50,786		)	18.95		(81,908		)	18.38
Forfeited	(10,852		)	26.20		(9,694		)	24.44		(10,735		)	20.12
Outstanding, December 31	296,843			$	26.14	247,175			$	25.04	182,498			$	22.63
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions)	$	3.2				$	3.3				$	2.8

(1) Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.