SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

	Year Ended December 31,
	2016			2015			2014
Operating revenues	$	370		$	550		$	642
Operating expenses	26,424			12,733			23,507
Operating loss	(26,054		)	(12,183		)	(22,865		)
Other
Equity in earnings of subsidiaries	462,027			446,508			411,528
Other expense	(1,771		)	(3,302		)	(3,276		)
Total	460,256			443,206			408,252
Interest expense	3,151			2,672			3,663
Income before income taxes	431,051			428,351			381,724
Income tax benefit	(10,983		)	(8,906		)	(15,871		)
Net income attributable to common shareholders	442,034			437,257			397,595
Other comprehensive income — attributable to common shareholders	926			23,393			9,912
Total comprehensive income — attributable to common shareholders	$	442,960		$	460,650		$	407,507

See Combined Notes to Consolidated Financial Statements.

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED BALANCE SHEETS

(dollars in thousands)

	December 31,
	2016			2015
ASSETS
Current assets
Cash and cash equivalents	$	41		$	17,432
Accounts receivable	81,751			93,093
Income tax receivable	—			14,895
Other current assets	340			197
Total current assets	82,132			125,617
Investments and other assets
Investments in subsidiaries	5,084,035			4,815,236
Deferred income taxes	53,805			41,065
Other assets	38,500			43,422
Total investments and other assets	5,176,340			4,899,723
Total Assets	$	5,258,472		$	5,025,340
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	5,421		$	5,901
Accrued taxes	12,050			6,904
Common dividends payable	72,926			69,363
Short-term borrowings	41,700			—
Current maturities of long-term debt	125,000			—
Other current liabilities	31,182			33,120
Total current liabilities	288,279			115,288
Long-term debt less current maturities	—			125,000
Pension liabilities	21,057			21,933
Other	13,224			43,662
Total deferred credits and other	34,281			65,595
Common stock equity
Common stock	2,591,897			2,535,862
Accumulated other comprehensive loss	(43,822		)	(44,748		)
Retained earnings	2,255,547			2,092,803
Total Pinnacle West Shareholders’ equity	4,803,622			4,583,917
Noncontrolling interests	132,290			135,540
Total Equity	4,935,912			4,719,457
Total Liabilities and Equity	$	5,258,472		$	5,025,340

See Combined Notes to Consolidated Financial Statements.

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

(dollars in thousands)

	Year Ended December 31,
	2016			2015			2014
Cash flows from operating activities
Net income	$	442,034		$	437,257		$	397,595
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries — net	(462,027		)	(446,508		)	(411,528		)
Depreciation and amortization	85			92			94
Deferred income taxes	(12,402		)	12,967			4,406
Accounts receivable	15,823			11,336			(22,945		)
Accounts payable	10,402			637			2,017
Accrued taxes and income tax receivables — net	20,041			(12,882		)	(1,795		)
Dividends received from subsidiaries	239,300			266,900			253,600
Other	5,514			(6,995		)	18,432
Net cash flow provided by operating activities	258,770			262,804			239,876
Cash flows from investing activities
Construction work in progress	(18,457		)	(3,462		)	—
Investments in subsidiaries	(19,242		)	(3,491		)	(10,236		)
Repayments of loans from subsidiaries	1,026			157			322
Advances of loans to subsidiaries	(2,092		)	(1,010		)	(1,450		)
Net cash flow used for investing activities	(38,765		)	(7,806		)	(11,364		)
Cash flows from financing activities
Issuance of long-term debt	—			—			125,000
Short-term debt borrowings under revolving credit facility	40,000			—			—
Commercial Paper - net	1,700			—			—
Dividends paid on common stock	(274,229		)	(260,027		)	(246,671		)
Repayment of long-term debt	—			—			(125,000		)
Common stock equity issuance - net of purchases	(4,867		)	19,373			15,288
Other	—			—			161
Net cash flow used for financing activities	(237,396		)	(240,654		)	(231,222		)
Net increase (decrease) in cash and cash equivalents	(17,391		)	14,344			(2,710		)
Cash and cash equivalents at beginning of year	17,432			3,088			5,798
Cash and cash equivalents at end of year	$	41		$	17,432		$	3,088

     See Combined Notes to Consolidated Financial Statements.

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

NOTES TO FINANCIAL STATEMENTS OF HOLDING COMPANY

The Combined Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Pinnacle West Capital Corporation Holding Company Financial Statements.

The Pinnacle West Capital Corporation Holding Company Financial Statements have been prepared to present the financial position, results of operations and cash flows of the Pinnacle West Capital Corporation on a stand-alone basis as a holding company. Investments in subsidiaries are accounted for using the equity method.