EX-99.10 11 p71360exv99w10.htm EXHIBIT 99.10 exv99w10
 

Exhibit 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME (GAAP MEASURE) TO GROSS MARGIN
(NON-GAAP FINANCIAL MEASURE)
(in thousands)
                                 
    THREE MONTHS ENDED     Pretax     After Tax  
    SEPTEMBER 30,     Increase     Increase  
    2005     2004     (Decrease)     (Decrease)  
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 162,113     $ 209,356     $ (47,243 )   $ (28,710 )
Plus:
                                
Operations and maintenance
     158,940       158,607       333       202  
Real estate segment operations
     65,880       66,414       (534 )     (325 )
Depreciation and amortization
     87,123       93,360       (6,237 )     (3,790 )
Taxes other than income taxes
     34,325       31,020       3,305       2,008  
Regulatory disallowance
     143,217       —       143,217       87,033  
Other expenses
     13,521       9,568       3,953       2,402  
Marketing and trading segment purchased power and fuel
     86,945       76,684       10,261       6,236  
Less:
                                
Real estate segment revenues
     78,755       72,754       6,001       3,647  
Other revenues
     16,369       12,585       3,784       2,300  
Marketing and trading segment revenues
     107,031       91,267       15,764       9,580  
 
                        
 
                                
Regulated electricity segment gross margin
   $ 549,909     $ 468,403     $ 81,506     $ 49,529  
 
                        
 
                                
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 162,113     $ 209,356     $ (47,243 )   $ (28,710 )
Plus:
                                
Operations and maintenance
     158,940       158,607       333       202  
Real estate segment operations
     65,880       66,414       (534 )     (325 )
Depreciation and amortization
     87,123       93,360       (6,237 )     (3,790 )
Taxes other than income taxes
     34,325       31,020       3,305       2,008  
Regulatory disallowance
     143,217       —       143,217       87,033  
Other expenses
     13,521       9,568       3,953       2,402  
Regulated electricity segment purchased power and fuel
     203,519       202,156       1,363       828  
Less:
                                
Real estate segment revenues
     78,755       72,754       6,001       3,647  
Other revenues
     16,369       12,585       3,784       2,300  
Regulated electricity segment revenues
     753,428       670,559       82,869       50,359  
 
                        
 
                                
Marketing and trading segment gross margin
   $ 20,086     $ 14,583     $ 5,503     $ 3,342  
 
                        

 

 

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME (GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
                                 
    NINE MONTHS ENDED     Pretax     After Tax  
    SEPTEMBER 30,     Increase     Increase  
    2005     2004     (Decrease)     (Decrease)  
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 432,502     $ 416,159     $ 16,343     $ 9,932  
Plus:
                                
Operations and maintenance
     467,121       434,588       32,533       19,770  
Real estate segment operations
     190,555       175,560       14,995       9,112  
Depreciation and amortization
     262,030       294,942       (32,912 )     (20,001 )
Taxes other than income taxes
     103,528       93,658       9,870       5,998  
Regulatory disallowance
     143,217       —       143,217       87,033  
Other expenses
     39,451       25,893       13,558       8,239  
Marketing and trading segment purchased power and fuel
     215,347       232,516       (17,169 )     (10,434 )
Less:
                                
Real estate segment revenues
     232,950       186,762       46,188       28,068  
Other revenues
     46,763       32,904       13,859       8,422  
Marketing and trading segment revenues
     267,460       290,107       (22,647 )     (13,763 )
 
                        
 
                                
Regulated electricity segment gross margin
   $ 1,306,578     $ 1,163,543     $ 143,035     $ 86,922  
 
                        
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 432,502     $ 416,159     $ 16,343     $ 9,932  
Plus:
                                
Operations and maintenance
     467,121       434,588       32,533       19,770  
Real estate segment operations
     190,555       175,560       14,995       9,112  
Depreciation and amortization
     262,030       294,942       (32,912 )     (20,001 )
Taxes other than income taxes
     103,528       93,658       9,870       5,998  
Regulatory disallowance
     143,217       —       143,217       87,033  
Other expenses
     39,451       25,893       13,558       8,239  
Regulated electricity segment purchased power and fuel
     442,532       442,409       123       75  
Less:
                                
Real estate segment revenues
     232,950       186,762       46,188       28,068  
Other revenues
     46,763       32,904       13,859       8,422  
Regulated electricity segment revenues
     1,749,110       1,605,952       143,158       86,997  
 
                        
 
                                
Marketing and trading segment gross margin
   $ 52,113     $ 57,591     $ (5,478 )   $ (3,329 )