Income taxes (Tables)

12 Months Ended

Dec. 31, 2016

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	2016			2015		2014			2016			2015			2014
(in thousands)
Federal
Current	$	59,873		$	44,343	$	(8,959	)	$	952		$	—		$	1,108
Deferred	43,666			36,664		91,412			70,513			68,757			68,775
Deferred tax credits, net	268			318		—			268			318			—
	103,807			81,325		82,453			71,733			69,075			69,883
State
Current	16,473			2,402		(5,793		)	9,232			(1,048		)	(9,436		)
Deferred	3,452			4,768		12,813			3,873			6,869			14,172
Deferred tax credits, net	(37		)	4,526		6,106			(37		)	4,526			6,106
	19,888			11,696		13,126			13,068			10,347			10,842
Total	$	123,695		$	93,021	$	95,579		$	84,801		$	79,422		$	80,725

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 of 35% to the amount provided in the consolidated statements of income was as follows:



	HEI consolidated									Hawaiian Electric consolidated
Years ended December 31	2016			2015			2014			2016			2015			2014
(in thousands)
Amount at the federal statutory income tax rate	$	130,844		$	89,176		$	92,959		$	80,190		$	75,996		$	77,126
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	13,915			8,097			9,073			8,494			6,726			7,047
Other, net	(21,064		)	(4,252		)	(6,453		)	(3,883		)	(3,300		)	(3,448		)
Total	$	123,695		$	93,021		$	95,579		$	84,801		$	79,422		$	80,725
Effective income tax rate	33.1		%	36.5		%	36.0		%	37.0		%	36.6		%	36.6		%

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	2016		2015		2016		2015
(in thousands)
Deferred tax assets
Net operating loss¹	$	—	$	—	$	9,158	$	37,283
Allowance for bad debts	24,500		21,781		2,364		1,852
Other	47,201		43,089		18,720		18,386
Total deferred tax assets	71,701		64,870		30,242		57,521
Deferred tax liabilities
Property, plant and equipment related	538,484		492,441		536,885		489,884
Repairs deduction	103,782		104,081		103,782		104,081
Regulatory assets, excluding amounts attributable to property, plant and equipment	35,107		34,261		35,107		34,261
Deferred RAM and RBA revenues	26,053		26,400		26,053		26,400
Retirement benefits	48,400		42,006		51,445		44,991
Other	48,681		46,558		10,629		12,710
Total deferred tax liabilities	800,507		745,747		763,901		712,327
Net deferred income tax liability	$	728,806	$	680,877	$	733,659	$	654,806


¹	The Hawaiian Electric deferred tax asset includes the tax effect of federal net operating loss carryforwards of $9 million expiring in 2034 and federal general business credit carryforwards of $3 million expiring in 2032 through 2036, net of unrecognized federal tax benefits of $3 million due to uncertain tax positions.

Schedule of changes in total unrecognized tax benefits

The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2016, 2015 and 2014.



	HEI consolidated								Hawaiian Electric consolidated
(in millions)	2016			2015		2014			2016			2015		2014
Unrecognized tax benefits, January 1	$	3.6		$	—	$	0.9		$	3.6		$	—	0.5
Reductions based on tax positions taken during the year	(0.1		)	—		—			(0.1		)	—		—
Additions for tax positions of prior years	0.3			3.6		0.1			0.3			3.6		0.1
Settlements						(1.0		)	—			—		(0.6		)
Unrecognized tax benefits, December 31	$	3.8		$	3.6	$	—		$	3.8		$	3.6	$	—