No, it is the conditional welfare.
The formula is (evaluate_objective_function.m)
planner_objective_value = Wbar+Wy*yhat+W_u*u+W_yu*yhat*u ...
+ 0.5*(W_yy*yhat^2 + Wuu_u^2+W_ss);
That is, it is a full second order expansion. Note that the concept of welfare is
W_t=U_t+beta*E_t (W_t+1)
so that today’s endogenous and exogenous states are contained in the information set at time t and affect U_t. You can specify these initial conditions with histval.