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Share-based compensation (Tables)
 6 Months Ended
Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of share-based compensation expense and related income tax benefit
Share-based compensation expense and the related income tax benefit were as follows:
 
 
Three months ended June 30
 
Six months ended June 30
(in millions)
 
2014
 
2013
 
2014
 
2013
HEI consolidated
 
 
 
 
 
 
 
 
Share-based compensation expense 1
 
$
2.8

 
$
1.3

 
$
5.2

 
$
3.5

Income tax benefit
 
1.1

 
0.5

 
1.9

 
1.3

Hawaiian Electric consolidated
 
 
 
 
 
 
 
 
Share-based compensation expense 1
 
$
0.9

 
$
0.3

 
1.6

 
1.1

Income tax benefit
 
$
0.3

 
$
0.1

 
0.6

 
0.4

1 
$0.03 million and $0.02 million of this share-based compensation expense was capitalized in the second quarter of 2014 and 2013, respectively. $0.07 million and $0.05 million of this share-based compensation expense was capitalized in the six months ended June 30, 2014 and 2013, respectively.
Schedule of effects of this revision on previous disclosures
The table below illustrates the effects of the revisions on the previously filed financial statements:
 
 
 As previously

 
As

 
 
(in thousands)
 
 filed

 
revised

 
 Difference

HEI consolidated
 
 
 
 
 
 
Consolidated Statements of Income
 
 
 
 
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Revenues
 
$
796,730

 
$
794,567

 
$
(2,163
)
Operating income
 
82,370

 
80,207

 
(2,163
)
Interest expense, net—other than on deposit liabilities and other bank borrowings
 
(19,613
)
 
(18,442
)
 
1,171

Income before income taxes
 
64,715

 
63,723

 
(992
)
Income taxes
 
23,654

 
22,662

 
(992
)
Six months ended June 30, 2013
 
 
 
 
 
 
Revenues
 
1,580,794

 
1,576,799

 
(3,995
)
Operating income
 
153,027

 
149,032

 
(3,995
)
Interest expense, net—other than on deposit liabilities and other bank borrowings
 
(39,401
)
 
(37,173
)
 
2,228

Income before income taxes
 
117,529

 
115,762

 
(1,767
)
Income taxes
 
42,316

 
40,549

 
(1,767
)
Consolidated Balance Sheets
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
Property, plant and equipment, net of accumulated depreciation
 
3,858,947

 
3,865,514

 
6,567

Accumulated depreciation
 
(2,191,199
)
 
(2,192,422
)
 
(1,223
)
Other assets
 
519,194

 
512,627

 
(6,567
)
Hawaiian Electric consolidated
 
 
 
 
 
 
Consolidated Balance Sheets
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
Other assets
 
73,993

 
67,426

 
(6,567
)
The table below illustrates the effects of this revision on the previous disclosures (the revised disclosures had no impact on the Company’s and the Utilities' Consolidated Balance Sheets, Consolidated Statements of Income or Consolidated Statements of Cash Flows):
 
 
HEI consolidated
 
Hawaiian Electric consolidated

 
 As previously

 
 
 
 
 
 As previously

 
 
 
 
(in thousands)
 
 filed

 
 As revised

 
 Difference

 
 filed

 
 As revised

 
 Difference

Three months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Pension benefits:
 
 
 
 
 
 
 
 
 
 
 
 
Impact of PUC D&Os
 
$
(5,286
)
 
$
(10,724
)
 
$
(5,438
)
 
$
(5,286
)
 
$
(10,724
)
 
$
(5,438
)
Net periodic benefit cost (adjusted
 
 
 
 
 
 
 
 
 
 
 
 
   for impact of PUC D&Os)
 
16,434

 
10,996

 
(5,438
)
 
15,443

 
10,005

 
(5,438
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Pension benefits:
 
 
 
 
 
 
 
 
 
 
 
 
Impact of PUC D&Os
 
(12,722
)
 
(19,590
)
 
(6,868
)
 
(12,722
)
 
(19,590
)
 
(6,868
)
Net periodic benefit cost (adjusted
 
 
 
 
 
 
 
 
 
 
 
 
   for impact of PUC D&Os)
 
30,903

 
24,035

 
(6,868
)
 
28,870

 
22,002

 
(6,868
)
(in millions)
 
 

 
 

 
 

 
 

 
 

 
 

Retirement benefits expense
 
$
23

 
$
18

 
$
(5
)
 
$
21

 
$
15

 
$
(6
)
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):
 
 
Three months ended June 30, 2013
 
Six months ended June 30, 2013
(in millions)
 
As previously filed

 
As revised

 
Difference

 
As previously filed

 
As revised

 
Difference

Share-based compensation expense
 
$
1.1

 
$
1.3

 
$
0.2

 
$
3.0

 
$
3.5

 
$
0.5

Income tax benefit
 
0.4

 
0.5

 
0.1

 
1.1

 
1.3

 
0.2
Schedule of nonemployee director stock award plan activity
Stock awards. HEI granted HEI common stock to nonemployee directors of HEI, Hawaiian Electric and ASB under the 2011 Director Plan as follows:
 
Six months ended June 30
($ in millions)
2014
 
2013
Shares granted
33,170

 
33,184

Fair value
$
0.8

 
$
0.8

Income tax benefit
0.3

 
0.3
Schedule of nonqualified stock options activity and statistics
NQSO activity and statistics were as follows:
(dollars in thousands, except prices)
 
Three months ended June 30, 2013
 
Six months ended 
 June 30, 2013
Shares exercised
 
12,000

 
14,000

Weighted-average exercise price
 
$
20.49

 
$
20.49

Cash received from exercise
 
$
246

 
$
287

Intrinsic value of shares exercised 1
 
$
113

 
$
128

Tax benefit realized for the deduction of exercises
 
$
44

 
$
50

 

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.
Schedule of stock appreciation rights by grant year
Stock appreciation rights.  Information about HEI’s SARs was as follows:
June 30, 2014
Outstanding & Exercisable (Vested)
Year of
grant
 
Number of shares
underlying SARs
 
Weighted-average
remaining
contractual life
 
Weighted-average
exercise price
2005
 
102,000

 
0.8
 
$
26.18
Schedule of restricted stock units
Restricted stock units.  Information about HEI’s grants of restricted stock units was as follows:
 
Three months ended June 30
 
Six months ended June 30
 
2014
 
2013
 
2014
 
2013
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
Outstanding, beginning of period
332,158

 
$
25.04

 
301,145

 
$
25.15

 
288,151

 
$
25.17

 
315,094

 
$
22.82

Granted
—


—

 
—

 
—

 
115,036


25.19

 
107,231


26.89

Vested
(67,832
)
 
22.31

 
(832
)
 
26.60

 
(138,861
)
 
24.09

 
(114,044
)
 
20.34

Forfeited
—

 
—

 
—

 
—

 
—

 
—

 
(7,968
)
 
25.26

Outstanding, end of period
264,326

 
$
25.74

 
300,313

 
$
25.15

 
264,326

 
$
25.74

 
300,313

 
$
25.15

Total weighted-average grant-date fair value of shares granted ($ millions)
$
—

 
 
 
$
—

 
 
 
$
2.9

 
 
 
$
2.9

 
 
(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
LTIP linked to TRS.  Information about HEI’s LTIP grants linked to TRS was as follows:
 
Three months ended June 30
 
Six months ended June 30
 
2014
 
2013
 
2014
 
2013
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
Outstanding, beginning of period
258,243

 
$
28.46

 
235,064

 
$
32.87

 
232,127

 
$
32.88

 
239,256

 
$
29.12

Granted (target level)
731

 
22.95

 
—

 
—

 
97,524

 
22.95

 
89,533


32.69

Vested (issued or unissued and cancelled)
—

 
—

 
—

 
—

 
(70,189
)
 
35.46

 
(87,753
)
 
22.45

Forfeited
(1,018
)
 
26.50

 
—

 
—

 
(1,506
)
 
28.32

 
(5,972
)
 
32.96

Outstanding, end of period
257,956

 
$
28.45

 
235,064

 
$
32.87

 
257,956

 
$
28.45

 
235,064

 
$
32.87

Total weighted-average grant-date fair value of shares granted ($ millions)
$
—

 
 
 
$
—

 
 
 
$
2.2

 
 
 
$
2.9

 
 
(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:
 
2014
 
2013
Risk-free interest rate
0.66
%
 
0.38
%
Expected life in years
3

 
3

Expected volatility
17.8
%
 
19.4
%
Range of expected volatility for Peer Group
12.4% to 23.3%

 
12.4% to 25.3%

Grant date fair value (per share)
$
22.95

 
$
32.69
Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions
LTIP awards linked to other performance conditions.  Information about HEI’s LTIP awards payable in shares linked to other performance conditions was as follows:
 
Three months ended June 30
 
Six months ended June 30
 
2014
 
2013
 
2014
 
2013
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
 
Shares
 
(1)
Outstanding, beginning of period
360,070

 
$
26.01

 
341,824

 
$
26.00

 
296,843

 
$
26.14

 
247,175

 
$
25.04

Granted (target level)
730

 
23.34

 
—


—

 
129,603

 
25.18

 
118,895


26.89

Vested (issued)
—

 
—

 
—

 
—

 
(65,089
)
 
24.95

 
(18,275
)
 
18.95

Cancelled
—

 
—

 
(37,351
)
 
24.96

 
—

 
—

 
(37,351
)
 
24.96

Forfeited
(1,018
)
 
25.81

 
—

 
—

 
(1,575
)
 
26.07

 
(5,971
)
 
25.94

Outstanding, end of period
359,782

 
$
26.01

 
304,473

 
$
26.12

 
359,782

 
$
26.01

 
304,473

 
$
26.12

Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions)
$
—

 
 
 
$
—

 
 
 
$
3.3

 
 
 
$
3.2

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