Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations

Discontinued Operations

13.          Discontinued Operations

SunCor — In February 2012, SunCor filed for protection under the United States Bankruptcy Code to complete an orderly liquidation of its business.  We do not expect SunCor’s bankruptcy to have a material impact on Pinnacle West’s financial position, results of operations, or cash flows.  All activity for the income statement for the three and nine months ended September 30, 2012 and prior comparative period income statement amounts are included in discontinued operations.

APSES — On August 19, 2011, Pinnacle West sold its investment in APSES.  The sale resulted in an after-tax gain from discontinued operations of approximately $10 million. Prior-period income statement amounts related to the sale of APSES and the associated revenues and costs are reflected in discontinued operations.

The following table provides revenue, income (loss) before income taxes and income (loss) after taxes classified as discontinued operations in Pinnacle West’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2012 and 2011 (dollars in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
Revenue:
SunCor	$	—	$	1		$	—		$	4
APSES	—		11			—			36
Total revenue	$	—	$	12		$	—		$	40
Income (loss) before taxes:
SunCor	$	—	$	(2	)	$	(3	)	$	(2	)
APSES	—		18			—			20
Total income (loss) before taxes	$	—	$	16		$	(3	)	$	18
Income (loss) after taxes:
SunCor	$	—	$	(1	)	$	(2	)	$	(1	)
APSES	—		10			—			12
Total income (loss) after taxes	$	—	$	9		$	(2	)	$	11