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, | | 2018 | | 2017 | | 2016 | Operating revenues | $ | — |
| | $ | 119 |
| | $ | 370 |
| Operating expenses | 53,844 |
| | 24,591 |
| | 26,573 |
| Operating loss | (53,844 | ) | | (24,472 | ) | | (26,203 | ) | Other | |
| | |
| | |
| Equity in earnings of subsidiaries | 569,249 |
| | 507,495 |
| | 462,027 |
| Other expense | (3,202 | ) | | (2,422 | ) | | (1,622 | ) | Total | 566,047 |
| | 505,073 |
| | 460,405 |
| Interest expense | 12,074 |
| | 5,633 |
| | 3,151 |
| Income before income taxes | 500,129 |
| | 474,968 |
| | 431,051 |
| Income tax benefit | (10,918 | ) | | (13,488 | ) | | (10,983 | ) | Net income attributable to common shareholders | 511,047 |
| | 488,456 |
| | 442,034 |
| Other comprehensive income (loss) — attributable to common shareholders | 5,846 |
| | (1,180 | ) | | 926 |
| Total comprehensive income — attributable to common shareholders | $ | 516,893 |
| | $ | 487,276 |
| | $ | 442,960 |
|
See Combined Notes to Consolidated Financial Statements.PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANYSCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS (dollars in thousands) | | | | | | | | | | December 31, | | 2018 | | 2017 | ASSETS | |
| | |
| Current assets | |
| | |
| Cash and cash equivalents | $ | 41 |
| | $ | 41 |
| Accounts receivable | 99,989 |
| | 93,554 |
| Income tax receivable | 32,737 |
| | 19,124 |
| Other current assets | 1,502 |
| | 267 |
| Total current assets | 134,269 |
| | 112,986 |
| Investments and other assets | |
| | |
| Investments in subsidiaries | 5,859,834 |
| | 5,465,137 |
| Deferred income taxes | 5,243 |
| | 54,352 |
| Other assets | 34,910 |
| | 44,613 |
| Total investments and other assets | 5,899,987 |
| | 5,564,102 |
| Total Assets | $ | 6,034,256 |
| | $ | 5,677,088 |
| LIABILITIES AND EQUITY | |
| | |
| Current liabilities | |
| | |
| Accounts payable | 9,565 |
| | 7,638 |
| Accrued taxes | 9,006 |
| | 8,927 |
| Common dividends payable | 82,675 |
| | 77,667 |
| Short-term borrowings | 76,400 |
| | 95,400 |
| Other current liabilities | 19,215 |
| | 17,417 |
| Total current liabilities | 196,861 |
| | 207,049 |
| | | | | Long-term debt less current maturities (Note 6) | 448,796 |
| | 298,421 |
| | | | | Pension liabilities | 17,766 |
| | 20,758 |
| Other | 22,128 |
| | 15,130 |
| Total deferred credits and other | 39,894 |
| | 35,888 |
| COMMITMENTS AND CONTINGENCIES (SEE NOTES) |
|
| |
|
| Common stock equity | | | | Common stock | 2,629,440 |
| | 2,609,181 |
| Accumulated other comprehensive loss | (47,708 | ) | | (45,002 | ) | Retained earnings | 2,641,183 |
| | 2,442,511 |
| Total Pinnacle West Shareholders’ equity | 5,222,915 |
| | 5,006,690 |
| Noncontrolling interests | 125,790 |
| | 129,040 |
| Total Equity | 5,348,705 |
| | 5,135,730 |
| Total Liabilities and Equity | $ | 6,034,256 |
| | $ | 5,677,088 |
|
See Combined Notes to Consolidated Financial Statements.PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANYSCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF CASH FLOWS (dollars in thousands) | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2017 | | 2016 | Cash flows from operating activities | |
| | |
| | |
| Net income | $ | 511,047 |
| | $ | 488,456 |
| | $ | 442,034 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
| Equity in earnings of subsidiaries — net | (569,249 | ) | | (507,495 | ) | | (462,027 | ) | Depreciation and amortization | 76 |
| | 76 |
| | 85 |
| Deferred income taxes | 49,535 |
| | (264 | ) | | (12,402 | ) | Accounts receivable | (7,881 | ) | | (2,106 | ) | | 15,823 |
| Accounts payable | 1,967 |
| | (11,162 | ) | | 10,402 |
| Accrued taxes and income tax receivables — net | (13,535 | ) | | (22,247 | ) | | 20,041 |
| Dividends received from subsidiaries | 316,000 |
| | 296,800 |
| | 239,300 |
| Other | 31,807 |
| | 15,092 |
| | 5,514 |
| Net cash flow provided by operating activities | 319,767 |
| | 257,150 |
| | 258,770 |
| Cash flows from investing activities | |
| | |
| | |
| Construction work in progress | — |
| | — |
| | (18,457 | ) | Investments in subsidiaries | (142,796 | ) | | (178,027 | ) | | (19,242 | ) | Repayments of loans from subsidiaries | 6,477 |
| | 2,987 |
| | 1,026 |
| Advances of loans to subsidiaries | (500 | ) | | (6,388 | ) | | (2,092 | ) | Net cash flow used for investing activities | (136,819 | ) | | (181,428 | ) | | (38,765 | ) | Cash flows from financing activities | |
| | |
| | |
| Issuance of long-term debt | 150,000 |
| | 298,761 |
| | — |
| Short-term debt borrowings under revolving credit facility | 20,000 |
| | 58,000 |
| | 40,000 |
| Short-term debt repayments under revolving credit facility | (32,000 | ) | | (32,000 | ) | | — |
| Commercial paper - net | (7,000 | ) | | 27,700 |
| | 1,700 |
| Dividends paid on common stock | (308,892 | ) | | (289,793 | ) | | (274,229 | ) | Repayment of long-term debt | — |
| | (125,000 | ) | | — |
| Common stock equity issuance - net of purchases | (5,055 | ) | | (13,390 | ) | | (4,867 | ) | Other | (1 | ) | | — |
| | — |
| Net cash flow used for financing activities | (182,948 | ) | | (75,722 | ) | | (237,396 | ) | Net decrease in cash and cash equivalents | — |
| | — |
| | (17,391 | ) | Cash and cash equivalents at beginning of year | 41 |
| | 41 |
| | 17,432 |
| Cash and cash equivalents at end of year | $ | 41 |
| | $ | 41 |
| | $ | 41 |
|
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.
|