EX-12.1 10 heiexhbit121201510k.htm EXHIBIT 12.1 Exhibit


HEI Exhibit 12.1 (page 1 of 2)
 
Hawaiian Electric Industries, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
2015
 
2014
 
2013
Years ended December 31
(1)
 
(2)
 
(1)
 
(2)
 
(1)
 
(2)
(dollars in thousands)
 

 
 

 
 

 
 

 
 

 
 

Fixed charges
 

 
 

 
 

 
 

 
 

 
 

Total interest charges
$
83,936

 
$
89,284

 
$
83,458

 
$
88,535

 
$
85,315

 
$
90,407

Interest component of rentals
6,065

 
6,065

 
6,366

 
6,366

 
6,345

 
6,345

Pretax preferred stock dividend requirements of subsidiaries
2,977

 
2,977

 
2,952

 
2,952

 
2,886

 
2,886

Total fixed charges
$
92,978

 
$
98,326

 
$
92,776

 
$
97,853

 
$
94,546

 
$
99,638

Earnings
 

 
 

 
 

 
 

 
 

 
 

Pretax income from continuing operations
$
252,898

 
$
252,898

 
$
263,708

 
$
263,708

 
$
247,946

 
$
247,946

Fixed charges, as shown
92,978

 
98,326

 
92,776

 
97,853

 
94,546

 
99,638

Interest capitalized
(3,265
)
 
(3,265
)
 
(3,954
)
 
(3,954
)
 
(7,097
)
 
(7,097
)
Earnings available for fixed charges
$
342,611

 
$
347,959

 
$
352,530

 
$
357,607

 
$
335,395

 
$
340,487

Ratio of earnings to fixed charges
3.68

 
3.54

 
3.80

 
3.65

 
3.55

 
3.42

See notes on page 2 of 2





HEI Exhibit 12.1 (page 2 of 2)
 
Hawaiian Electric Industries, Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Continued
 
2012
 
2011
Years ended December 31
(1)
 
(2)
 
(1)
 
(2)
(dollars in thousands)
 

 
 

 
 

 
 

Fixed charges
 

 
 

 
 

 
 

Total interest charges
$
83,020

 
$
89,443

 
$
87,592

 
$
96,575

Interest component of rentals
6,493

 
6,493

 
4,757

 
4,757

Pretax preferred stock dividend requirements of subsidiaries
2,943

 
2,943

 
2,944

 
2,944

Total fixed charges
$
92,456

 
$
98,879

 
$
95,293

 
$
104,276

Earnings
 

 
 

 
 

 
 

Pretax income from continuing operations
$
217,064

 
$
217,064

 
$
215,686

 
$
215,686

Fixed charges, as shown
92,456

 
98,879

 
95,293

 
104,276

Interest capitalized
(4,355
)
 
(4,355
)
 
(2,498
)
 
(2,498
)
Earnings available for fixed charges
$
305,165

 
$
311,588

 
$
308,481

 
$
317,464

Ratio of earnings to fixed charges
3.30

 
3.15

 
3.24

 
3.04

(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 1 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.