SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
Operating revenues	$	119		$	370		$	550
Operating expenses	24,298			26,424			12,733
Operating loss	(24,179		)	(26,054		)	(12,183		)
Other
Equity in earnings of subsidiaries	507,495			462,027			446,508
Other expense	(2,715		)	(1,771		)	(3,302		)
Total	504,780			460,256			443,206
Interest expense	5,633			3,151			2,672
Income before income taxes	474,968			431,051			428,351
Income tax benefit	(13,488		)	(10,983		)	(8,906		)
Net income attributable to common shareholders	488,456			442,034			437,257
Other comprehensive income (loss) — attributable to common shareholders	(1,180		)	926			23,393
Total comprehensive income — attributable to common shareholders	$	487,276		$	442,960		$	460,650

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,
	2017			2016
ASSETS
Current assets
Cash and cash equivalents	$	41		$	41
Accounts receivable	93,554			81,751
Income tax receivable	19,124			—
Other current assets	267			340
Total current assets	112,986			82,132
Investments and other assets
Investments in subsidiaries	5,465,137			5,084,035
Deferred income taxes	54,352			53,805
Other assets	44,613			38,500
Total investments and other assets	5,564,102			5,176,340
Total Assets	$	5,677,088		$	5,258,472
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	7,638		$	5,421
Accrued taxes	8,927			12,050
Common dividends payable	77,667			72,926
Short-term borrowings	95,400			41,700
Current maturities of long-term debt	—			125,000
Other current liabilities	17,417			31,182
Total current liabilities	207,049			288,279
Long-term debt less current maturities	298,421			—
Pension liabilities	20,758			21,057
Other	15,130			13,224
Total deferred credits and other	35,888			34,281
Common stock equity
Common stock	2,609,181			2,591,897
Accumulated other comprehensive loss	(45,002		)	(43,822		)
Retained earnings	2,442,511			2,255,547
Total Pinnacle West Shareholders’ equity	5,006,690			4,803,622
Noncontrolling interests	129,040			132,290
Total Equity	5,135,730			4,935,912
Total Liabilities and Equity	$	5,677,088		$	5,258,472

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,
	2017			2016			2015
Cash flows from operating activities
Net income	$	488,456		$	442,034		$	437,257
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries — net	(507,495		)	(462,027		)	(446,508		)
Depreciation and amortization	76			85			92
Deferred income taxes	(264		)	(12,402		)	12,967
Accounts receivable	(2,106		)	15,823			11,336
Accounts payable	(11,162		)	10,402			637
Accrued taxes and income tax receivables — net	(22,247		)	20,041			(12,882		)
Dividends received from subsidiaries	296,800			239,300			266,900
Other	15,092			5,514			(6,995		)
Net cash flow provided by operating activities	257,150			258,770			262,804
Cash flows from investing activities
Construction work in progress	—			(18,457		)	(3,462		)
Investments in subsidiaries	(178,027		)	(19,242		)	(3,491		)
Repayments of loans from subsidiaries	2,987			1,026			157
Advances of loans to subsidiaries	(6,388		)	(2,092		)	(1,010		)
Net cash flow used for investing activities	(181,428		)	(38,765		)	(7,806		)
Cash flows from financing activities
Issuance of long-term debt	298,761			—			—
Short-term debt borrowings under revolving credit facility	58,000			40,000			—
Short-term debt repayments under revolving credit facility	(32,000		)	—			—
Commercial paper - net	27,700			1,700			—
Dividends paid on common stock	(289,793		)	(274,229		)	(260,027		)
Repayment of long-term debt	(125,000		)	—			—
Common stock equity issuance - net of purchases	(13,390		)	(4,867		)	19,373
Net cash flow used for financing activities	(75,722		)	(237,396		)	(240,654		)
Net increase (decrease) in cash and cash equivalents	—			(17,391		)	14,344
Cash and cash equivalents at beginning of year	41			17,432			3,088
Cash and cash equivalents at end of year	$	41		$	41		$	17,432

     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 Pinnacle West Capital Corporation on a stand-alone basis as a holding company. Investments in subsidiaries are accounted for using the equity method.