Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule I - 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,
	2022		2021		2020
Operating expenses	$	8,850	$	10,245	$	7,901
Other
Equity in earnings of subsidiaries	500,042		628,916		566,147
Other expense	(4,725)		(4,919)		(4,586)
Total	495,317		623,997		561,561
Interest expense	18,861		10,672		14,021
Income before income taxes	467,606		603,080		539,639
Income tax benefit	(15,996)		(15,640)		(10,920)
Net income attributable to common shareholders	483,602		618,720		550,559
Other comprehensive income (loss) — attributable to common shareholders	23,426		7,935		(5,700)
Total comprehensive income — attributable to common shareholders	$	507,028	$	626,655	$	544,859

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,
	2022		2021
ASSETS
Current assets
Cash and cash equivalents	$	—	$	594
Accounts receivable	132,061		125,457
Income tax receivable	14,494		1,498
Other current assets	288		13
Total current assets	146,843		127,562
Investments and other assets
Investments in subsidiaries	7,105,789		6,797,528
Deferred income taxes	1,521		19,520
Other assets	23,153		57,608
Total investments and other assets	7,130,463		6,874,656
TOTAL ASSETS	$	7,277,306	$	7,002,218
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	6,499	$	3,071
Accrued taxes	7,694		19,855
Common dividends payable	97,895		95,988
Short-term borrowings	15,720		13,300
Current maturities of long-term debt	—		150,000
Operating lease liabilities	117		107
Other current liabilities	14,637		14,684
Total current liabilities	142,562		297,005
Long-term debt less current maturities (Note 6)	947,892		647,139
Pension liabilities	8,218		14,537
Operating lease liabilities	1,459		1,576
Other	17,299		20,501
Total deferred credits and other	26,976		36,614
COMMITMENTS AND CONTINGENCIES (SEE NOTES)
Common stock equity
Common stock	2,719,735		2,696,342
Accumulated other comprehensive loss	(31,435)		(54,861)
Retained earnings	3,360,347		3,264,719
Total Pinnacle West Shareholders’ equity	6,048,647		5,906,200
Noncontrolling interests	111,229		115,260
Total Equity	6,159,876		6,021,460
TOTAL LIABILITIES AND EQUITY	$	7,277,306	$	7,002,218

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,
	2022		2021		2020
Cash flows from operating activities
Net income	$	483,602	$	618,720	$	550,559
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries — net	(500,042)		(628,916)		(566,147)
Depreciation and amortization	76		93		76
Deferred income taxes	17,256		(11,381)		33,007
Accounts receivable	(8,535)		8,897		(7,903)
Accounts payable	3,431		(2,598)		(1,964)
Accrued taxes and income tax receivables — net	(25,157)		16,079		9,610
Dividends received from subsidiaries	385,800		376,500		357,500
Other	47,719		4,214		20,163
Net cash flow provided by operating activities	404,150		381,608		394,901
Cash flows from investing activities
Investments in subsidiaries	(186,630)		(145,266)		(137,881)
Repayments of loans from subsidiaries	14,308		4,017		932
Advances of loans to subsidiaries	(3,308)		(12,256)		(7,261)
Net cash flow used for investing activities	(175,630)		(153,505)		(144,210)
Cash flows from financing activities
Issuance of long-term debt	300,000		300,000		496,950
Short-term debt borrowings under revolving credit facility	—		—		211,690
Short-term debt repayments under revolving credit facility	—		(19,000)		(230,690)
Short-term borrowings and (repayments) — net	2,420		(136,700)		73,325
Dividends paid on common stock	(378,881)		(369,478)		(350,577)
Repayment of long-term debt	(150,000)		—		(450,000)
Common stock equity issuance and purchases — net	(2,653)		(2,350)		(1,389)
Net cash flow used for financing activities	(229,114)		(227,528)		(250,691)
Net decrease in cash and cash equivalents	(594)		575		—
Cash and cash equivalents at beginning of year	594		19		19
Cash and cash equivalents at end of year	$	—	$	594	$	19

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