NOTES TO CONDENSED FINANCIAL INFORMATION Long-term debt The components of long-term debt, net, were as follows: December 31 (dollars in thousands) HEI Term loan LIBOR + .75%, due 2017
2016 $
HEI Term loan LIBOR + .75%, due 2018 HEI senior note 4.41%, paid in 2016
2015
125,000
$
125,000
75,000
—
—
75,000
HEI senior note 5.67%, due 2021
50,000
50,000
HEI senior note 3.99%, due 2023
50,000
50,000
Less unamortized debt issuance costs Long-term debt, net
(241) $
299,759
(334) $
299,666
See Note 1 of the Consolidated Financial Statements for the impact to prior period financial information of the adoption of ASU No. 2015-03. The aggregate payments of principal required within five years after December 31, 2016 on long-term debt are $125 million in 2017, $75 million in 2018 and nil in 2019 and 2020 and $50 million in 2021. Indemnities As of December 31, 2016, HEI has a General Agreement of Indemnity in favor of both Liberty Mutual Insurance Company (Liberty) and Travelers Casualty and Surety Company of America (Travelers) for losses in connection with any and all bonds, undertakings or instruments of guarantee and any renewals or extensions thereof executed by Liberty or Travelers, including, but not limited to, a $0.2 million self-insured United States Longshore & Harbor bond and a $0.6 million self-insured automobile bond. Income taxes The Company’s financial reporting policy for income tax allocations is based upon a separate entity concept whereby each subsidiary provides income tax expense (or benefits) as if each were a separate taxable entity. The difference between the aggregate separate tax return income tax provisions and the consolidated financial reporting income tax provision is charged or credited to HEI’s separate tax provision. Dividends from subsidiaries In 2016, 2015 and 2014, cash dividends received from subsidiaries were $130 million, $121 million and $124 million, respectively. Supplemental disclosures of noncash activities In 2016, 2015 and 2014, $2.3 million, $2.3 million and $2.4 million, respectively, of HEI accounts receivable from ASB Hawaii were reduced with a corresponding reduction in HEI notes payable to ASB Hawaii in noncash transactions. In 2016, 2015 and 2014, $2.3 million, $0.3 million and $2.5 million, respectively, were contributed as equity by HEI into ASB Hawaii with a corresponding increase in HEI notes payable to ASB Hawaii in noncash transactions. Under the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP), common stock dividends reinvested by shareholders in HEI common stock in noncash transactions amounted to $17 million, nil and nil in 2016, 2015 and 2014, respectively. HEI satisfied the requirements of the HEI DRIP, Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and ASB 401(k) Plan from March 6, 2014 through January 5, 2016 by acquiring for cash its common shares through open market purchases rather than by issuing additional shares. From January 6, 2016 through December 6, 2016, HEI satisfied its share purchase requirements for the plans through new issuances, except that from June 2, 2016 through August 9, 2016, HEI satisfied the share purchase requirements of the HEIRSP and ASB 401(k) Plan through open market purchases of its common stock. From December 7, 2016 to date, HEI satisfied the share purchase requirements of these three plans through open market purchases of its common stock rather than through new issuances. Other The “Notes to Consolidated Financial Statements” in Part II, Item 8 should be read in conjunction with the above HEI (Parent Company) financial statements. 188