EX-12.1 2 hei-9302015xex121.htm EXHIBIT 12.1 Exhibit


HEI Exhibit 12.1 (page 1 of 2)
 
Hawaiian Electric Industries, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
 
Nine months ended September 30
 
2015 (1)
 
2015 (2)
 
2014 (1)
 
2014 (2)
(dollars in thousands)
 
 
 
 
 
 
 
 
Fixed charges
 
 

 
 

 
 

 
 

Total interest charges
 
$
62,333

 
$
66,214

 
$
64,032

 
$
67,806

Interest component of rentals
 
4,571

 
4,571

 
4,772

 
4,772

Pretax preferred stock dividend requirements of subsidiaries
 
2,256

 
2,256

 
2,210

 
2,210

Total fixed charges
 
$
69,160

 
$
73,041

 
$
71,014

 
$
74,788

Earnings
 
 

 
 

 
 

 
 

Pretax income from continuing operations
 
$
187,963

 
$
187,963

 
$
211,178

 
$
211,178

Fixed charges, as shown
 
69,160

 
73,041

 
71,014

 
74,788

Interest capitalized
 
(2,548
)
 
(2,548
)
 
(2,998
)
 
(2,998
)
Earnings available for fixed charges
 
$
254,575

 
$
258,456

 
$
279,194

 
$
282,968

Ratio of earnings to fixed charges
 
3.68

 
3.54

 
3.93

 
3.78

 
Years ended December 31
 
2014 (1)
 
2014 (2)
 
2013 (1)
 
2013 (2)
 
2012 (1)
 
2012 (2)
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 

 
 

 
 

 
 

 
 

 
 

Total interest charges
 
$
83,458

 
$
88,535

 
$
85,315

 
$
90,407

 
$
83,020

 
$
89,443

Interest component of rentals
 
6,366

 
6,366

 
6,345

 
6,345

 
6,493

 
6,493

Pretax preferred stock dividend requirements of subsidiaries
 
2,952

 
2,952

 
2,886

 
2,886

 
2,943

 
2,943

Total fixed charges
 
$
92,776

 
$
97,853

 
$
94,546

 
$
99,638

 
$
92,456

 
$
98,879

Earnings
 
 

 
 

 
 

 
 

 
 

 
 

Pretax income from continuing operations
 
$
263,708

 
$
263,708

 
$
247,946

 
$
247,946

 
$
217,064

 
$
217,064

Fixed charges, as shown
 
92,776

 
97,853

 
94,546

 
99,638

 
92,456

 
98,879

Interest capitalized
 
(3,954
)
 
(3,954
)
 
(7,097
)
 
(7,097
)
 
(4,355
)
 
(4,355
)
Earnings available for fixed charges
 
$
352,530

 
$
357,607

 
$
335,395

 
$
340,487

 
$
305,165

 
$
311,588

Ratio of earnings to fixed charges
 
3.80

 
3.65

 
3.55

 
3.42

 
3.30

 
3.15

 
See notes on page 2 of 2.




HEI Exhibit 12.1 (page 2 of 2)
 
Hawaiian Electric Industries, Inc. and Subsidiaries
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
 
(continued)
 
Years ended December 31
 
2011 (1)
 
2011 (2)
 
2010 (1)
 
2010 (2)
(dollars in thousands)
 
 
 
 
 
 
 
 
Fixed charges
 
 

 
 

 
 

 
 

Total interest charges (3) 
 
$
87,592

 
$
96,575

 
$
87,191

 
$
101,887

Interest component of rentals
 
4,757

 
4,757

 
4,282

 
4,282

Pretax preferred stock dividend requirements of subsidiaries
 
2,944

 
2,944

 
3,016

 
3,016

Total fixed charges
 
$
95,293

 
$
104,276

 
$
94,489

 
$
109,185

Earnings
 
 

 
 

 
 

 
 

Pretax income from continuing operations
 
$
215,686

 
$
215,686

 
$
182,207

 
$
182,207

Fixed charges, as shown
 
95,293

 
104,276

 
94,489

 
109,185

Interest capitalized
 
(2,498
)
 
(2,498
)
 
(2,558
)
 
(2,558
)
Earnings available for fixed charges
 
$
308,481

 
$
317,464

 
$
274,138

 
$
288,834

Ratio of earnings to fixed charges
 
3.24

 
3.04

 
2.90

 
2.65


(1)
Excluding interest on ASB deposits.

(2)
Including interest on ASB deposits.

Prior period ratios reflect the retrospective application of Accounting Standards Update (ASU) No. 2014-01, “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects,” which was adopted as of January 1, 2015 and did not have a material impact on the Company’s financial condition or results of operations. See “Investments in qualified affordable housing projects” in Note 11 of the Consolidated Financial Statements.

For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income from continuing operations (before adjustment for undistributed income or loss from equity investees) and (ii) fixed charges (as hereinafter defined, but excluding capitalized interest). “Fixed charges” are calculated both excluding and including interest on ASB’s deposits during the applicable periods and represent the sum of (i) interest, whether capitalized or expensed, (ii) amortization of debt expense and discount or premium related to any indebtedness, whether capitalized or expensed, (iii) the estimate of the interest within rental expense, and (iv) the non-intercompany preferred stock dividend requirements of HEI’s subsidiaries, increased to an amount representing the pretax earnings required to cover such dividend requirements.