-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QpJr6m5I8+wW1bxJy1KPY/tZxBYrtN+yEcD0+fNg+y2vaUH+/Cqi35XGoxn/45Jb WCc3SGVFuNzBmLOLvwanfw== 0000950147-98-000151.txt : 19980302 0000950147-98-000151.hdr.sgml : 19980302 ACCESSION NUMBER: 0000950147-98-000151 CONFORMED SUBMISSION TYPE: U-3A-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980227 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PINNACLE WEST CAPITAL CORP CENTRAL INDEX KEY: 0000764622 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 860512431 STATE OF INCORPORATION: AZ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-3A-2 SEC ACT: SEC FILE NUMBER: 069-00306 FILM NUMBER: 98553146 BUSINESS ADDRESS: STREET 1: 400 E VAN BUREN ST PO BOX 52132 STREET 2: P O BOX 52132 CITY: PHOENIX STATE: AZ ZIP: 85072-2132 BUSINESS PHONE: 6023792616 MAIL ADDRESS: STREET 1: 400 E VAN BUREN ST STREET 2: PO BOX 52132 CITY: PHOENIX STATE: AZ ZIP: 85072-2132 FORMER COMPANY: FORMER CONFORMED NAME: AZP GROUP INC DATE OF NAME CHANGE: 19870506 U-3A-2 1 FORM U-3A-2 Adopted November 9, 1939 File No. 69-306 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM U-3A-2 Statement by Holding Company Claiming Exemption under Rule U-2 from the Provisions of the Public Utility Holding Company Act of 1935 To Be Filed Annually Prior to March 1 Pinnacle West Capital Corporation ------------------------------------------------ (Name of Company) hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information: 1. Name, state of organization, location and nature of business of Claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which Claimant directly or indirectly holds an interest. Pinnacle West Capital Corporation ("Claimant"), having been incorporated on February 20, 1985 under the laws of the State of Arizona, and having its principal executive offices at 400 East Van Buren, Suite 700, Phoenix, Arizona 85004, was organized principally to acquire and hold securities of other corporations for investment purposes. Claimant currently holds stock in the following subsidiaries: a. Arizona Public Service Company ("APS" or the "Company"), is engaged principally in serving electricity in the State of Arizona. Incorporated in 1920 under the laws of the State of Arizona and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, APS became a subsidiary of the Claimant pursuant to a corporate restructuring plan approved by the Company's shareholders on April 18, 1985. (1) AXIOM Power Solutions, Inc. ("AXIOM") -- an Arizona corporation having been incorporated on October 29, 1996 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to sell security and energy management products and services. AXIOM is a wholly-owned subsidiary of APS. (2) Bixco, Inc. ("Bixco") -- an Arizona corporation having been incorporated on June 4, 1971 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized primarily to conduct exploration activities for energy resources and other valuable minerals. Subsequent to the sale of its oil and natural gas properties in 1981, Bixco has been inactive. Bixco is a wholly-owned subsidiary of APS. b. SunCor Development Company ("SunCor") -- an Arizona corporation having been incorporated on June 30, 1965 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012, is a wholly-owned subsidiary of Claimant engaged primarily in the owning, holding and development of real property. 2 (1) SunCor Resort & Golf Management, Inc. ("Resort & Golf Management") (previously named "SunCor Resort Management, Inc." and "SunCor Farms, Inc.") -- an Arizona corporation having been incorporated on December 31, 1986 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012 operates and manages hotel, golf, food and beverage for the Wigwam Resort and Country Club, Sedona Golf Resort, SunRidge Canyon Golf Club, Real del Mar Golf Club, and Palm Valley Golf Club. Resort & Golf Management is a wholly-owned subsidiary of SunCor. (2) Litchfield Park Service Company ("LPSCO") -- an Arizona corporation having been incorporated on September 21, 1954 and having its principal executive offices at 501 East Plaza Circle, Suite B, Litchfield Park, Arizona 85340, is a regulated public utility engaged in providing water and sewer services to commercial and residential customers. LPSCO became a wholly-owned subsidiary of SunCor on December 31, 1986. (3) Golden Heritage Homes, Inc.. ("Golden Heritage Homes") -- (previously named "SunCor Homes, Inc.", LGR, Inc. and "WGP Realty, Inc.") an Arizona corporation having been incorporated on May 14, 1986 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to provide brokerage and realty services in the sale of commercial and residential real property. Golden Heritage Homes is a wholly-owned subsidiary of SunCor. (i) Golden Heritage Construction, Inc. ("GH Construction") -- an Arizona corporation having been incorporated on December 30, 1993 and having its principal executive offices at 7975 North Hayden Rd. Suite D-280, Scottsdale, Arizona 85258, was organized to serve as a general residential contractor. GH Construction became a wholly-owned subsidiary of Golden Heritage Homes, Inc. on January 1, 1996. (4) SCM, Inc. ("SCM") -- an Arizona corporation having been incorporated on May 14, 1991 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to 3 participate in real estate joint ventures and other real estate related activities. SCM is a wholly-owned subsidiary of SunCor. (5) Golf de Mexico, S.A. DE C.V. ("Golf de Mexico") -- a Mexican variable capital corporation having been incorporated on February 8, 1992 in Tijuana, Baja California, Mexico, and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to operate and manage the Real del Mar Golf Course in Mexico. Golf de Mexico has been inactive. (6) SunCor Realty & Management Company ("SunCor Realty") -- (previously named Russell Ranch Development Company) an Arizona corporation having been incorporated on April 1, 1994 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012 was organized to participate in real estate joint ventures and other real estate related activities. SunCor Realty is a wholly-owned subsidiary of SunCor. (7) Palm Valley Golf Club, Inc. ("Palm Valley Golf") -- an Arizona corporation having been incorporated on January 23, 1996 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012 was organized to hold title to the Palm Valley Golf Course. Palm Valley Golf is a wholly-owned subsidiary of SunCor. (8) Rancho Viejo de Santa Fe, Inc. ("Rancho Viejo") -- a New Mexico corporation having been incorporated on March 18, 1996 and having its principal executive offices at 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012 was organized to engage in real estate development in New Mexico. Rancho Viego is a wholly-owned subsidiary of SunCor. (9) Ranchland Utility Company ("Ranchland") - - A New Mexico Corporation having been incorporated on September 5, 1997 and having its principal executive offices at 1590-B Pacheco Street, Santa Fe, New Mexico 87505 is a waste water utility. Ranchland is a wholly-owned subsidiary of Rancho Viejo. 4 c. El Dorado Investment Company -- an Arizona corporation having been incorporated on July 27, 1983 and having its principal executive offices at 400 East Van Buren, Suite 800, Phoenix, Arizona 85004, is a wholly-owned subsidiary of Claimant engaged primarily in the acquisition and holding of stocks and securities of other companies for investment purposes. 5 2. A brief description of the properties of Claimant and each of its subsidiary public utility companies used for the generation, transmission and distribution of electric energy for sale, or for the production, transmission and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants and electric and gas distribution facilities, including all such properties which are outside the state in which Claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such state. Neither the Claimant nor any of its subsidiaries own property used for the production, transmission and distribution of natural or manufactured gas. APS, a "public utility company" as that term is defined in the Public Utility Holding Company Act of 1935, is the only one of Claimant's subsidiaries that owns property used for the generation, transmission and distribution of electric energy for sale. 6 Exhibit D attached hereto shows the location of APS' major generating plants (including those owned jointly with others), principal transmission lines (including those operated for others) and interconnections of transmission lines with out-of-state utilities at state lines. All of such facilities, except the Four Corners Generating Station ("Four Corners"), and all of APS' distribution facilities, are located within the State of Arizona. Four Corners is a mine-mouth power plant, located in the northwest corner of New Mexico, near the city of Farmington, approximately 40 miles east of the Arizona-New Mexico border. APS' present generating facilities have an accredited capacity aggregating 4,006,109 kilowatts, comprised as follows: Capacity Coal: -------- Units 1, 2 and 3 at Four Corners, aggregating............................ 560,000 kw 15% owned Units 4 and 5 at Four Corners, representing........................... 222,000 Units 1, 2, and 3 at the Cholla Plant, aggregating............................ 615,000 14% owned Units 1, 2 and 3 at the Navajo Plant, representing.................... 315,000 --------- 1,712,000 kw ========= Gas or Oil: Two steam units at Ocotillo, two steam units at Saguaro aggregating......... 435,000 kw(1) Eleven combustion turbine units, aggregating.......................... 493,000 Three combined cycle units, aggregating.......................... 255,000 --------- 1,183,000 kw ========= Nuclear: 29.1% owned or leased Units 1, 2 and 3 at Palo Verde, representing 1,105,509 kw --------- Other (Hydro) 5,600 kw ========= - -------------------------- (1)West Phoenix steam units (96,300 kw) are currently mothballed. 7 APS' transmission facilities consist of approximately 4,544 pole miles of overhead lines and approximately 9,587 miles of underground lines, all of which are located within the State of Arizona. APS' distribution facilities consist of approximately 11,197 pole miles of overhead lines and approximately 9,587 miles of underground lines, all of which are located within the State of Arizona. 3. The following information for the last calendar year with respect to Claimant and each of its subsidiary public utility companies: a. Number of kwh of electric energy sold at retail or wholesale. Claimant APS None 29,050,500,000 kwh of electric energy sold at wholesale or retail b. Number of kwh of electric energy distributed at retail outside the state in which each such company is organized. Claimant APS None 59,405,000 kwh of electric energy distributed at retail outside Arizona c. Number of kwh of electric energy sold at wholesale outside the state in which each such company is organized, or at the state line. Claimant APS None 926,900 kwh of electric energy sold at wholesale outside Arizona or at state line d. Number of kwh of electric energy purchased outside the state in which each such company is organized or at the state line. Claimant APS None 0 kwh of electric energy purchased outside Arizona or at state line 8 4. The following information for the reporting period with respect to Claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars: The Claimant holds no interest, direct or indirect, in an EWG or a foreign utility company. a. Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas. Not applicable. b. Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held. Not applicable. c. Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company. Not applicable. d. Capitalization and earnings of the EWG or foreign utility company during the reporting period. Not applicable. e. Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s). Not applicable. 9 EXHIBIT A A consolidating statement of income and surplus of the Claimant and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of Claimant and its subsidiary companies as of the close of such calendar year. Exhibit A hereto includes consolidating statements of income and consolidating balance sheets for the Claimant and the following of its subsidiaries: Arizona Public Service Company, SunCor Development Company and El Dorado Investment Company. Subsidiaries have been consolidated for financial reporting purposes in accordance with Statement of Financial Accounting Standards No. 94, Consolidation of All Majority-Owned Subsidiaries. Also included are consolidating statements of income and consolidating balance sheets for SunCor Development Company and its subsidiaries. 10 EXHIBIT B FINANCIAL DATA STATEMENT If, at the time a report on this form is filed, the registrant is required to submit this report and any amendments thereto electronically via EDGAR, the registrant shall furnish a Financial Data Schedule. The Schedule shall set forth the financial and other data specified below that are applicable to the registrant on a consolidated basis. 1. Total Assets. 2. Total Operating Revenues. 3. Net Income. See Exhibit B hereto. EXHIBIT B Financial Data Schedule The Claimant submits the following consolidated financial information: 1. Total Assets: $6,850,417,000 2. Total Operating Revenues: $1,995,026,000 3. Net Income: $235,856,000 EXHIBIT C An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding-company system. Not applicable. EXHIBIT D Exhibit D is a map of the state of Arizona showing the following: APS Service Area; Major APS Power Plants, including joint ownership; Principal APS Transmission Lines; and Transmission Lines Operated for Others. The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 27th day of February, 1998. Pinnacle West Capital Corporation --------------------------------- (Name of Claimant) By /s/ Michael S. Ash -------------------------------- Michael S. Ash Corporate Counsel [CORPORATE SEAL] Attest: /s/Suzanne Debes - ------------------------- Suzanne Debes Associate Secretary Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed: Michael S. Ash Corporate Counsel (Name) (Title) - -------------- --------------------------------------- 400 East Van Buren, Suite 700, Phoenix, Arizona 85004 (Address) - --------------------------------------------------------- PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING BALANCE SHEET 31-Dec-97 (THOUSANDS OF DOLLARS)
PWCC APS SUNCOR ELDO ---------- ---------- ---------- ---------- A S S E T S CURRENT ASSETS Cash and cash equivalents $ 7,322 $ 12,552 $ 5,108 $ 2,502 Customer and other receivables - net 1,023 170,997 4,507 10,072 Accrued utility revenue 58,559 Materials and supplies 70,634 Fossil fuel 9,621 Deferred income taxes 53,601 3,496 790 Other current assets 52 24,529 16,955 -- ------------------------------------------------- Total current assets 61,998 350,388 26,570 13,364 ------------------------------------------------- INVESTMENTS AND OTHER ASSETS Real estate investments, net 365,799 Other assets 2,201,006 164,906 6,721 21,152 ------------------------------------------------- Total investments and other 2,201,006 164,906 372,520 21,152 ------------------------------------------------- UTILITY PLANT Electric plant in service and held for future use 7,009,059 Less accumulated depreciation and amortization 2,620,607 ------------------------------------------------- Total 4,388,452 Construction work in progress 237,492 Nuclear Fuel 51,624 ------------------------------------------------- Net Utility Plant 4,677,568 ------------------------------------------------- DEFERRED DEBITS Regulatory asset for income taxes -- 458,369 Rate synchronization deferral 358,871 Other deferred debits 9,288 321,040 4,465 -- ------------------------------------------------- Total deferred debits 9,288 1,138,280 4,465 -- ------------------------------------------------- TOTAL ASSETS $2,272,292 $6,331,142 $ 403,555 $ 34,516 ================================================= *ELIMINATIONS AND ADJUSTING ENTRIES* DEBIT CREDIT TOTAL ---------- ---------- ---------- A S S E T S CURRENT ASSETS Cash and cash equivalents $ 27,484 Customer and other receivables - net 3,092(b,h) 183,507 Accrued utility revenue 58,559 Materials and supplies 70,634 Fossil fuel 9,621 Deferred income taxes 57,887 Other current assets 128(c) 41,408 ---------- ---------- ---------- Total current assets 3,220 449,100 ---------- ---------- ---------- INVESTMENTS AND OTHER ASSETS Real estate investments, net 6,892(e) 6,770(d) 365,921 Other assets 2,069(h) 2,180,827(a,e) 215,027 ---------- ---------- ---------- Total investments and other 8,961 2,187,597 580,948 ---------- ---------- ---------- UTILITY PLANT Electric plant in service and held for future use 7,009,059 Less accumulated depreciation and amortization 2,620,607 ---------- ---------- ---------- Total 4,388,452 Construction work in progress 237,492 Nuclear Fuel 51,624 ---------- ---------- ---------- Net Utility Plant 4,677,568 ---------- ---------- ---------- DEFERRED DEBITS Regulatory asset for income taxes 458,369 Rate synchronization deferral 358,871 Other deferred debits 9,232(f) 325,561 ---------- ---------- ---------- Total deferred debits 9,232 1,142,801 ---------- ---------- ---------- TOTAL ASSETS $ 8,961 $2,200,049 $6,850,417 ========== ========== ==========
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING BALANCE SHEET 31-Dec-97 (THOUSANDS OF DOLLARS)
PWCC APS SUNCOR ELDO ----------- ----------- ----------- ----------- L I A B I L I T I E S A N D E Q U I T Y CURRENT LIABILITIES Accounts payable $ 2,089 $ 107,423 $ 7,786 $ 131 Accrued taxes -- 85,886 -- Accrued interest 829 31,660 485 -- Commerical paper, net -- 130,750 Current maturities of long-term debt -- 104,068 4,627 Customer Deposits 29,116 1,556 Other current liabilities (420) 19,588 511 6 ------------------------------------------------------- Total current liabilities 2,498 508,491 14,965 137 ------------------------------------------------------- LONG-TERM DEBT LESS CURRENT MATURITIES 205,000 1,953,162 86,086 -- DEFERRED CREDITS AND OTHER Deferred income taxes 17,008 1,345,177 Deferred investment tax credit 60,093 Unamortized gain-sale of utility plant 82,363 Other deferred credits 20,350 361,371 5,502 ------------------------------------------------------- Total deferred credits 37,358 1,849,004 5,502 -- ------------------------------------------------------- COMMITMENTS AND CONTINGENCIES (NOTE) MINORITY INTERESTS: Non-Redeemable preferred stock of APS 142,051 Redeemable preferred stock of APS 29,110 Scottsdale Mountain of SunCor 6,770 COMMON STOCK EQUITY: Common stock 2,026,872 1,320,526 406,391 50,046 Retained earnings 564 528,798 (116,159) (15,667) ------------------------------------------------------- Total 2,027,436 1,849,324 290,232 34,379 ------------------------------------------------------- TOTAL LIABILITIES AND EQUITY $ 2,272,292 $ 6,331,142 $ 403,555 $ 34,516 ======================================================= *ELIMINATIONS AND ADJUSTING ENTRIES* DEBIT CREDIT TOTAL ---------- ---------- ---------- L I A B I L I T I E S A N D E Q U I T Y CURRENT LIABILITIES Accounts payable $ 117,429 Accrued taxes 1,276(g) 84,610 Accrued interest 32,974 Commerical paper, net 130,750 Current maturities of long-term debt 108,695 Customer Deposits 30,672 Other current liabilities 1,151(b,c) 18,534 ---------- ---------- ---------- Total current liabilities 2,427 -- 523,664 ---------- ---------- ---------- LONG-TERM DEBT LESS CURRENT MATURITIES -- -- 2,244,248 DEFERRED CREDITS AND OTHER Deferred income taxes 1,276(g) 1,363,461 Deferred investment tax credit 9,232(f) 50,861 Unamortized gain-sale of utility plant 82,363 Other deferred credits 387,223 ---------- ---------- ---------- Total deferred credits 9,232 1,276 1,883,908 ---------- ---------- ---------- COMMITMENTS AND CONTINGENCIES (NOTE) MINORITY INTERESTS: Non-Redeemable preferred stock of APS 142,051 Redeemable preferred stock of APS 29,110 Scottsdale Mountain of SunCor 6,770(d) -- COMMON STOCK EQUITY: Common stock 2,250,064(a) 1,553,771 Retained earnings 76,129(a) 473,665 ---------- ---------- ---------- Total 2,250,064 76,129 2,027,436 ---------- ---------- ---------- TOTAL LIABILITIES AND EQUITY $2,268,493 $ 77,405 $6,850,417 ========== ========== ==========
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING BALANCE SHEET ELIMINATING AND ADJUSTING ENTRIES
(a) Common stock $2,250,064 Accumulated deficit $76,129 Other assets 2,173,935 To eliminate PNW investment in subsidiaries Common Earnings/ Stock Dividends Total ---------- --------- ---------- APS $1,793,627 $55,697 $1,849,324 SunCor 406,391 (116,159) 290,232 El Dorado 50,046 (15,667) 34,379 ---------- --------- ---------- Total $2,250,064 ($76,129) $2,173,935 ========== ========= ========== (b) Other current liabilities $1,023 Customer and other receivables - net $1,023 To eliminate intercompany receivables/payables A/R A/P PNW Subs Books ---------- ---------- APS $636 $636 SunCor 381 381 El Dorado 6 6 ---------- --------- Total $ 1,023 $ 1,023 ========== ========= (c) Other current liabilities $128 Other current assets $128 To eliminate PNW payable to APS (d) Minority interest-Suncor $6,770 Real estate investments - net $6,770 To eliminate minority interest of Suncor JV partners (e) Real estate investments - net $6,892 Other - assets $6,892 To reclass PNW capitalized interest related to SunCor (f) Deferred investment tax credit $9,232 Other deferred debits $9,232 To relcass PNW ITC (g) Accrued taxes $1,276 Deferred income taxes $1,276 To relcass PNW accrued taxes (h) Other assets $2,069 Customer and other receivables - net $2,069 To reclass ELD Unity Note & interest to long term.
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1997 (THOUSANDS OF DOLLARS)
PWCC APS SUNCOR ELDO ----------- ----------- ----------- ----------- OPERATING REVENUES: Electric $ 1,878,553 Real Estate 116,473 -------------------------------------------------------- Total -- 1,878,553 116,473 -- -------------------------------------------------------- FUEL EXPENSES: Fuel for electric generation 201,341 Purchased power 235,286 -------------------------------------------------------- Total -- 436,627 -- -- -------------------------------------------------------- OPERATING EXPENSES: Utility operations and maintenance 399,434 Real estate operations 111,112 Depreciation and amortization 268 365,671 2,346 -- Taxes other than income taxes 120,259 -------------------------------------------------------- Total 268 885,364 113,458 -- -------------------------------------------------------- OPERATING INCOME (268) 556,562 3,015 -- -------------------------------------------------------- OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction -- Interest on long-term debt (17,318) (140,931) (4,197) -- Other interest (1,478) (17,195) -- -- Capital interest 16,208 Preferred stock dividend requirements (12,803) Other - net 252,170 (9,827) 6,516 7,897 -------------------------------------------------------- Total 233,374 (164,548) 2,319 7,897 -------------------------------------------------------- INCOME BEFORE INCOME TAXES 233,106 392,014 5,334 7,897 Income Tax Expense (Benefit) (2,750) 153,324 (293) -------------------------------------------------------- NET INCOME (L0SS) $ 235,856 $ 238,690 $ 5,334 $ 8,190 ======================================================== * E L I M I N A T I O N S * DEBIT CREDIT TOTAL OPERATING REVENUES: Electric $ 1,878,553 Real Estate 116,473 ----------- ----------- ----------- Total -- -- 1,995,026 ----------- ----------- ----------- FUEL EXPENSES: Fuel for electric generation 201,341 Purchased power 235,286 ----------- ----------- ----------- Total -- -- 436,627 ----------- ----------- ----------- OPERATING EXPENSES: Utility operations and maintenance 399,434 Real estate operations 1,776(b) 1,260(d) 111,628 Depreciation and amortization 368,285 Taxes other than income taxes 1,287(c,d) 121,546 ----------- ----------- ----------- Total 3,063 1,260 1,000,893 ----------- ----------- ----------- OPERATING INCOME (3,063) (1,260) 557,506 ----------- ----------- ----------- OTHER INCOME (DEDUCTIONS): Allowance for equity funds used during construction -- Interest on long-term debt 1,776(b) (160,670) Other interest (18,673) Capital interest 16,208 Preferred stock dividend requirements (12,803) Other - net 252,214(a) 27(c) 4,569 ----------- ----------- ----------- Total 252,214 1,803 (171,369) ----------- ----------- ----------- INCOME BEFORE INCOME TAXES 255,277 543 386,137 Income Tax Expense (Benefit) 150,281 ----------- ----------- ----------- NET INCOME (L0SS) $ 255,277 $ 543 $ 235,856 =========== =========== ===========
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING INCOME STATEMENT ELIMINATING ENTRIES
(a) Other - net (Subsiary income) $252,214 Retained Earnings $252,214 To eliminate PWCC Equity in earnings from subsidiairies PWCC APS 238,690 SunCor 5,334 El Dorado 8,190 -------------- Total 252,214 -------------- (b) Real Estate Operations $1,776 Interest on long term debt $1,776 To reclass Capitalized Interest for SunCor Land Sales. (c) Taxes other than income taxes $27 Other - net $27 To reclass PNW property taxes (d) Taxes other than income taxes $1,260 Real estate operations $1,260 To reclass SunCor property taxes
SUNCOR DEVELOPMENT COMPANY CONSOLIDATING BALANCE SHEET FOR THE MONTH ENDED DECEMBER 31, 1997
SUNCOR SUNCOR SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO FARMING SMLP PVGC HOMES PALM VALLEY -------------------------------------------------------------------------------------------------------------------- ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS 3,847,842 316,271 100,708 864,098 (1,583) (173,224) 406,000 1 ACCOUNTS RECEIVABLE 297,492 110,197 78,866 350,872 29,467 1,154,192 INTERCOMPANY ACCOUNTS: 1 SASI 95 1 LPSCO 91,260 1 SMLP 18,788 1 KABUTO JV 1 PVGC 4,090,907 1 SCM & GH - 129 (3,616,182) 1 WWOS 12,397 1 GOLDEN HERITAGE - GENERAL 421,643 1 SCM-GENERAL 4,626,804 1 HOMEBUILDING I/C INTEREST 1,345,579 (1,345,580) 1 HOMEBUILDING CASH ADVANCES 8,996,796 1 SUNRIDGE - DEVELOPMENT 86,771 1 SUNRIDGE - GOLF 123,139 1 SEDONA - DEVELOPMENT 23,754 1 SEDONA - GOLF 92,155 1 WIGWAM RESORT 302,257 1 INTEREST RECEIVABLE 354,540 2,921 NOTES RECEIVABLE 334,939 307,749 0 2 INVENTORIES 68,300 2 PREPAID EXPENSES 38,272 21,863 46,503 2,028 HOME INVENTORY 7,356 18,674,570 ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 21,021,877 448,331 179,574 1,522,719 4,233,594 14,693,776 410,948 ------------------------------------------------------------------------------------ SUNCOR ACCOUNT DESCRIPTION WWOS KABUTO JV COMMERCIAL H HILLS R VIEJO ------------------------------------------------------------------------------------------- ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS 31,769 250 (326,546) 42,820 1 ACCOUNTS RECEIVABLE 96,566 122,241 INTERCOMPANY ACCOUNTS: 1 SASI 1 LPSCO 1 SMLP 1 KABUTO JV 1 PVGC 1 SCM & GH - 129 1 WWOS 1 GOLDEN HERITAGE - GENERAL 1 SCM-GENERAL 1 HOMEBUILDING I/C INTEREST 1 HOMEBUILDING CASH ADVANCES 1 SUNRIDGE - DEVELOPMENT 1 SUNRIDGE - GOLF 1 SEDONA - DEVELOPMENT 1 SEDONA - GOLF 1 WIGWAM RESORT 1 INTEREST RECEIVABLE 5,605 223 NOTES RECEIVABLE 915,763 2 INVENTORIES 33,892 2 PREPAID EXPENSES 0 HOME INVENTORY ------------------------------------------------------ TOTAL CURRENT ASSETS 128,335 250 750,955 0 43,042 ------------------------------------------------------ ELIMINATIONS ----------------------------------- ACCOUNT DESCRIPTION REF DEBIT REF CREDIT CONSOLIDATED ------------------------------------------------------------------- ------------ ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS 5,108,404 1 ACCOUNTS RECEIVABLE J 158,000 2,081,894 INTERCOMPANY ACCOUNTS: 1 SASI K 95 0 1 LPSCO H 114,257 (22,997) 1 SMLP J 18,788 0 1 KABUTO JV 0 1 PVGC N 4,090,907 0 1 SCM & GH - 129 A 4,797,280 A 1,181,097 (0) 1 WWOS Q 12,397 0 1 GOLDEN HERITAGE - GENERAL A 421,643 0 1 SCM-GENERAL A 4,626,804 0 1 HOMEBUILDING I/C INTEREST C 1,345,580 C 1,345,580 (0) 1 HOMEBUILDING CASH ADVANCES B 8,996,796 0 1 SUNRIDGE - DEVELOPMENT 86,771 1 SUNRIDGE - GOLF 123,139 1 SEDONA - DEVELOPMENT 23,754 1 SEDONA - GOLF 92,155 1 WIGWAM RESORT 302,257 1 INTEREST RECEIVABLE P 101,480 261,807 NOTES RECEIVABLE 1,558,451 2 INVENTORIES 102,192 2 PREPAID EXPENSES 108,666 HOME INVENTORY E 1,938,311 16,743,614 ----------- ------------- ------------ TOTAL CURRENT ASSETS 6,142,859 23,006,155 26,570,106 ----------- ------------- ------------
SUNCOR SUNCOR SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO FARMING SMLP PVGC HOMES PALM VALLEY ------------------------------------------------------------------------------------------------------------------- LONG-TERM ASSETS DEVELOPMENT PROJECTS HIDDEN HILLS RANCHO VIEJO PALM VALLEY 177,275,730 LITCHFIELD GREENS 2,277,974 KABUTO JV SCOTTSDALE MTN 8,838,343 MARKETPLACE - AUTOPLEX TATUM RANCH 31,750,234 TALAVI WIGWAM OUTLET STORES GOLDEN HERITAGE LAND 895,891 BILTMORE ESTATES 41,893 EQUITY INVESTMENTS: EQUITY IN CTRPT ASSOC-LLP 22,843,447 INVEST IN KYRENE ASSOCIATES LLC INVEST IN PV APARTMENTS 1,368,213 INVESTMENT IN SUNRIDGE CANYON LLC 11,218,584 INVESTMENT IN SEDONA GOLF LC 6,620,633 INVESTMENT IN PLUMCOR REALTY LLC INVEST IN TALAVI ASSOCIATES LLC CONSOLIDATED ELIMINATING ENTITIES: INVEST IN KABUTO JV 5,797,485 INVESTMENT IN WIGWAM OUTLET LLC 4,455,629 INVEST IN SCOTTS MTN LTD PART 7,086,924 INVEST IN GOLDEN HERITAGE 151,062 GOLDEN HERITAGE DUE DILIGENCE 7,001 INVESTMENT IN SCM 483,214 6 INVESTMENT IN LPSCO 8,368,589 INVESTMENT IN SASI 64,415 INVESTMENT IN PALM VALLEY 181,041,431 SUNCOR ACCOUNT DESCRIPTION WWOS KABUTO JV COMMERCIAL H HILLS R VIEJO ------------------------------------------------------------------------------------------------------ LONG-TERM ASSETS DEVELOPMENT PROJECTS HIDDEN HILLS 478,017 RANCHO VIEJO 2,437,315 PALM VALLEY 15,327,464 LITCHFIELD GREENS KABUTO JV 12,617,550 SCOTTSDALE MTN MARKETPLACE - AUTOPLEX 17,125,079 TATUM RANCH TALAVI 3,492,629 WIGWAM OUTLET STORES 17,370,149 GOLDEN HERITAGE LAND BILTMORE ESTATES EQUITY INVESTMENTS: EQUITY IN CTRPT ASSOC-LLP INVEST IN KYRENE ASSOCIATES LLC 1,446,636 INVEST IN PV APARTMENTS INVESTMENT IN SUNRIDGE CANYON LLC INVESTMENT IN SEDONA GOLF LC INVESTMENT IN PLUMCOR REALTY LLC 847,741 INVEST IN TALAVI ASSOCIATES LLC 2,325,106 CONSOLIDATED ELIMINATING ENTITIES: INVEST IN KABUTO JV INVESTMENT IN WIGWAM OUTLET LLC INVEST IN SCOTTS MTN LTD PART INVEST IN GOLDEN HERITAGE GOLDEN HERITAGE DUE DILIGENCE INVESTMENT IN SCM 6 INVESTMENT IN LPSCO INVESTMENT IN SASI INVESTMENT IN PALM VALLEY ELIMINATIONS -------------------------------------- ACCOUNT DESCRIPTION REF DEBIT REF CREDIT CONSOLIDATED ----------------------------------------------------------------------------- ------------ LONG-TERM ASSETS DEVELOPMENT PROJECTS HIDDEN HILLS 478,017 RANCHO VIEJO 2,437,315 PALM VALLEY 192,603,194 LITCHFIELD GREENS 2,277,974 KABUTO JV 12,617,550 SCOTTSDALE MTN 8,838,343 MARKETPLACE - AUTOPLEX 17,125,079 TATUM RANCH 31,750,234 TALAVI 3,492,629 WIGWAM OUTLET STORES 17,370,149 GOLDEN HERITAGE LAND 895,891 BILTMORE ESTATES 41,893 EQUITY INVESTMENTS: EQUITY IN CTRPT ASSOC-LLP 22,843,447 INVEST IN KYRENE ASSOCIATES LLC 1,446,636 INVEST IN PV APARTMENTS 1,368,213 INVESTMENT IN SUNRIDGE CANYON LLC 11,218,584 INVESTMENT IN SEDONA GOLF LC 6,620,633 INVESTMENT IN PLUMCOR REALTY LLC 847,741 INVEST IN TALAVI ASSOCIATES LLC 2,325,106 CONSOLIDATED ELIMINATING ENTITIES: 0 INVEST IN KABUTO JV R 8,768,265 (2,970,780) INVESTMENT IN WIGWAM OUTLET LLC O 17,498,042 O 23,026,125 (1,072,454) INVEST IN SCOTTS MTN LTD PART I 10,764,769 I 17,905,448 (53,755) INVEST IN GOLDEN HERITAGE D 151,062 0 GOLDEN HERITAGE DUE DILIGENCE 7,001 INVESTMENT IN SCM D 483,214 0 6 INVESTMENT IN LPSCO F 8,368,589 0 INVESTMENT IN SASI L 650,000 L 714,415 0 INVESTMENT IN PALM VALLEY V 181,041,431 0
SUNCOR SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO FARMING SMLP PVGC ------------------------------------------------------------------------------------------------------------- INVESTMENT IN PALM VALLEY GOLF 6,359,255 1 PALM VALLEY GOLF CONTRIB. CAP (4,090,907) PROJECT 2000: INVESTMENT IN FIDDLESTICKS-SCOTTS 394,249 INVESTMENT IN FIDDLESTICKS-TEMPE 2,544,985 INVESTMENT IN FUNTASTICKS 3,444,214 INVESTMENT IN GENERAL COMM OPS 50,453,138 INVESTMENT IN PV MARKETPLACE 920,669 INVESTMENT IN PV PAVILIONS 671,963 INVESTMENT IN PV CROSSING (151,342) INVESTMENT IN AUTOPLEX (244,933) INVESTMENT IN TALAVI (92,150) INVESTMENT IN METROCENTER 123,793 INVESTMENT IN RESTORATION PLACE (29,982) INVESTMENT IN LITCHFIELD PARK OPS 30,064 INVESTMENT IN RANCHO VIEJO 2,420,586 INVESTMENT IN HIDDEN HILLS 477,117 COMMERCIAL PROPERTIES 0 5,431,977 LONG-TERM NOTES RECEIVABLE 4,462,797 SDC PHASE I LAND NOTE TO WWOS 1,484,153 SDC PAYOFF OF WWOS RLC 10,000,000 SDC LOAN TO LPSCO 300,000 PROPERTY & EQUIPMENT, NET 605,533 36,696 1,082 102,799 3 DEFERRED ASSETS 2,621,179 885,811 230,331 WATER, SEWER UTILITY PROP (NET) 9,768,026 3 DEPOSITS ------------------------------------------------------------------------ TOTAL LONG-TERM ASSETS 362,570,507 10,653,837 36,696 8,839,425 5,765,107 ------------------------------------------------------------------------ TOTAL ASSETS 383,592,384 11,102,168 216,270 10,362,144 9,998,701 ======================================================================== SUNCOR SUNCOR ACCOUNT DESCRIPTION HOMES PALM VALLEY WWOS KABUTO JV COMMERCIAL ------------------------------------------------------------------------------------------------------------------- INVESTMENT IN PALM VALLEY GOLF 1 PALM VALLEY GOLF CONTRIB. CAP PROJECT 2000: INVESTMENT IN FIDDLESTICKS-SCOTTS INVESTMENT IN FIDDLESTICKS-TEMPE INVESTMENT IN FUNTASTICKS INVESTMENT IN GENERAL COMM OPS INVESTMENT IN PV MARKETPLACE INVESTMENT IN PV PAVILIONS INVESTMENT IN PV CROSSING INVESTMENT IN AUTOPLEX INVESTMENT IN TALAVI INVESTMENT IN METROCENTER INVESTMENT IN RESTORATION PLACE INVESTMENT IN LITCHFIELD PARK OPS INVESTMENT IN RANCHO VIEJO INVESTMENT IN HIDDEN HILLS COMMERCIAL PROPERTIES 18,090,608 LONG-TERM NOTES RECEIVABLE 459,833 SDC PHASE I LAND NOTE TO WWOS SDC PAYOFF OF WWOS RLC SDC LOAN TO LPSCO PROPERTY & EQUIPMENT, NET 955,170 71,604 16,691 3 DEFERRED ASSETS 145,380 236,504 187,249 WATER, SEWER UTILITY PROP (NET) 3 DEPOSITS 158,805 ------------------------------------------------------------------------------ TOTAL LONG-TERM ASSETS 2,009,866 181,663,150 17,623,344 12,617,550 58,842,513 ------------------------------------------------------------------------------ TOTAL ASSETS 16,703,642 182,074,098 17,751,680 12,617,800 59,593,467 ============================================================================== ELIMINATIONS ------------------------------------------ ACCOUNT DESCRIPTION H HILLS R VIEJO REF DEBIT REF CREDIT CONSOLIDATED ---------------------------------------------------------------------------------------------------------- ------------ INVESTMENT IN PALM VALLEY GOLF M 6,359,255 0 1 PALM VALLEY GOLF CONTRIB. CAP N 4,090,907 0 PROJECT 2000: 0 INVESTMENT IN FIDDLESTICKS-SCOTTS S 1,428,266 S 1,822,515 0 INVESTMENT IN FIDDLESTICKS-TEMPE S 2,544,985 0 INVESTMENT IN FUNTASTICKS S 3,444,214 0 INVESTMENT IN GENERAL COMM OPS S 890,859 S 51,343,998 0 INVESTMENT IN PV MARKETPLACE S 920,669 0 INVESTMENT IN PV PAVILIONS S 671,963 0 INVESTMENT IN PV CROSSING S 151,342 0 INVESTMENT IN AUTOPLEX S 244,933 0 INVESTMENT IN TALAVI S 92,150 0 INVESTMENT IN METROCENTER S 123,793 0 INVESTMENT IN RESTORATION PLACE S 29,982 0 INVESTMENT IN LITCHFIELD PARK OPS S 30,064 0 INVESTMENT IN RANCHO VIEJO U 23,942 U 2,444,528 0 INVESTMENT IN HIDDEN HILLS T 1,567 T 478,683 0 COMMERCIAL PROPERTIES 23,522,585 LONG-TERM NOTES RECEIVABLE 4,922,630 SDC PHASE I LAND NOTE TO WWOS P 1,484,153 0 SDC PAYOFF OF WWOS RLC P 10,000,000 0 SDC LOAN TO LPSCO G 300,000 0 PROPERTY & EQUIPMENT, NET 8,298 1,797,872 3 DEFERRED ASSETS 4,306,454 WATER, SEWER UTILITY PROP (NET) 9,768,026 3 DEPOSITS 158,805 ---------------------- ----------- ----------- ----------- TOTAL LONG-TERM ASSETS 478,017 2,445,613 35,866,759 322,427,370 376,985,014 ---------------------- ----------- ----------- ----------- TOTAL ASSETS 478,017 2,488,655 42,009,619 345,433,525 403,555,121 ====================== =========== =========== ===========
SUNCOR SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO FARMING SMLP PVGC -------------------------------------------------------------------------------------------------------------- LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION 38,723 104,211 30,761 13,467 32,464 4 ACCRUED LIABILITIES 1,926,954 120,572 61,648 146,177 56,920 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC 114,257 4 SMLP - SDC 18,788 4 SCM-SDC CASH ADVANCES 267 4 GH-SDC INTERCO CAPITAL 265 4 WWOS-SDC 4 KABUTO JV-SDC INTEREST PAYABLE 484,591 S/T NOTES PAYABLE OTHER $45 MILLION TERM LOAN 3,005,169 $55 MILLION RLC GOLDEN HERITAGE (PEW) TEXTRON LOAN 5 DEFERRED PROFIT 1,938,311 5,350 107,796 PWCC INTERCO PAYABLE 236,126 CUSTOMER DEPOSITS 0 ------------------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 7,629,874 339,040 97,759 286,228 89,384 ------------------------------------------------------------------------------- LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE WWOS RLC PAYOFF BY SDC CORPORATE TERM NOTE $41,994,831 CORPORATE RLC 40,600,000 LPSCO OWES SDC 300,000 GOLDEN HERITAGE (PEW) TEXTRON LOAN 3,550,062 6 OTHER ACCRUED LIABILITIES 3,124,805 585,186 54,096 6 DEFERRED TAXES 238,404 6 LONG-TERM CUSTOMER DEPOSITS 479,788 6 CONTRIB PROPERTY AIA 999,073 DEFERRED CREDIT 11,000 ------------------------------------------------------------------------------- TOTAL L/T LIABILITIES 85,730,636 2,602,451 54,096 0 3,550,062 ------------------------------------------------------------------------------- TOTAL LIABILITIES 93,360,510 2,941,491 151,855 286,228 3,639,446 ------------------------------------------------------------------------------- SUNCOR SUNCOR ACCOUNT DESCRIPTION HOMES PALM VALLEY WWOS KABITO JV COMMERCIAL ------------------------------------------------------------------------------------------------------------------------ LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION 2,110,634 748,284 625,567 244,648 4 ACCRUED LIABILITIES 410,842 122,084 15,000 1,066,471 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC 4 SMLP - SDC 4 SCM-SDC CASH ADVANCES 267 8,996,796 4 GH-SDC INTERCO CAPITAL 265 1,432,265 4 WWOS-SDC 12,397 4 KABUTO JV-SDC INTEREST PAYABLE 0 101,480 S/T NOTES PAYABLE OTHER $45 MILLION TERM LOAN $55 MILLION RLC GOLDEN HERITAGE (PEW) 1,562,863 TEXTRON LOAN 5 DEFERRED PROFIT 162,299 PWCC INTERCO PAYABLE CUSTOMER DEPOSITS 1,555,966 ----------------------------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 16,069,366 1,032,667 739,444 15,000 1,311,120 ----------------------------------------------------------------------------------------- LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE 1,484,153 WWOS RLC PAYOFF BY SDC 10,000,000 CORPORATE TERM NOTE CORPORATE RLC LPSCO OWES SDC GOLDEN HERITAGE (PEW) TEXTRON LOAN 6 OTHER ACCRUED LIABILITIES 0 217,679 6 DEFERRED TAXES 6 LONG-TERM CUSTOMER DEPOSITS 6 CONTRIB PROPERTY AIA DEFERRED CREDIT ----------------------------------------------------------------------------------------- TOTAL L/T LIABILITIES 0 0 11,484,153 0 217,679 ----------------------------------------------------------------------------------------- TOTAL LIABILITIES 16,069,366 1,032,667 12,223,597 15,000 1,528,799 ----------------------------------------------------------------------------------------- ELIMINATIONS ------------------------------------- ACCOUNT DESCRIPTION H HILLS R VIEJO REF DEBIT REF CREDIT CONSOLIDATED --------------------------------------------------------------------------------------------------------------------------- LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION 900 32,301 J,K,A 158,095 3,823,866 4 ACCRUED LIABILITIES 35,768 3,962,437 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC H 114,257 0 4 SMLP - SDC J 18,788 0 4 SCM-SDC CASH ADVANCES 267 B 8,996,796 0 4 GH-SDC INTERCO CAPITAL 265 A 1,432,265 0 4 WWOS-SDC Q 12,397 0 4 KABUTO JV-SDC 0 INTEREST PAYABLE P 101,480 484,591 S/T NOTES PAYABLE OTHER $45 MILLION TERM LOAN 3,005,169 $55 MILLION RLC 0 GOLDEN HERITAGE (PEW) 1,562,863 TEXTRON LOAN * 58,445 58,445 5 DEFERRED PROFIT E 1,938,311 275,445 PWCC INTERCO PAYABLE 236,126 CUSTOMER DEPOSITS 1,555,966 ------------------------- ----------- ---------- -------------- X TOTAL CURRENT LIABILITIES 900 68,069 12,772,389 58,445 14,964,908 ------------------------- ----------- ---------- -------------- LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE P 1,484,153 0 WWOS RLC PAYOFF BY SDC P 10,000,000 0 CORPORATE TERM NOTE 41,994,831 CORPORATE RLC 40,600,000 LPSCO OWES SDC G 300,000 0 GOLDEN HERITAGE (PEW) 0 TEXTRON LOAN * 58,445 3,491,617 6 OTHER ACCRUED LIABILITIES 3,981,766 6 DEFERRED TAXES F 207,912 30,492 6 LONG-TERM CUSTOMER DEPOSITS 479,788 6 CONTRIB PROPERTY AIA 999,073 DEFERRED CREDIT 11,000 ------------------------- ----------- ---------- -------------- TOTAL L/T LIABILITIES 0 0 12,050,510 0 91,588,567 ------------------------- ----------- ---------- -------------- TOTAL LIABILITIES 900 68,069 24,822,899 58,445 106,553,475 ------------------------- ----------- ---------- --------------
SUNCOR SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO FARMING SMLP PVGC ------------------------------------------------------------------------------------------------------------------ MINORITY INTEREST EQUITY: SDC COMMON STOCK 1,022,000 SDC ADDITIONAL PAID IN CAPITAL 405,368,522 SDC EARNED SURPLUS-BEGINNING (121,492,825) SDC EARNED SURPLUS-CURRENT 5,334,177 SUBSIDIARY EARNINGS-CURRENT 29,982 (85,522) 2,907,509 (194,675) SUBSIDIARY EQUITY: LPSCO 8,130,695 SASI 149,937 SMLP #3500 7,168,407 PVGC 6,553,929 HOMEBUILDING PALM VALLEY #5500 WWOS #4400 KABUTO JV #3000 COMMERCIAL PROPERTIES #2000 HIDDEN HILLS #3300 RANCHO SANTE FE #6600 --------------------------------------------------------------------------------- TOTAL EQUITY 290,231,874 8,160,677 64,415 10,075,916 6,359,255 --------------------------------------------------------------------------------- TOTAL LIABILITIES AND EQUITY 383,592,384 11,102,168 216,270 10,362,144 9,998,701 ================================================================================= SUNCOR SUNCOR ACCOUNT DESCRIPTION HOMES PALM VALLEY WWOS KABITO JV COMMERCIAL -------------------------------------------------------------------------------------------------------------------------- MINORITY INTEREST EQUITY: SDC COMMON STOCK SDC ADDITIONAL PAID IN CAPITAL SDC EARNED SURPLUS-BEGINNING SDC EARNED SURPLUS-CURRENT SUBSIDIARY EARNINGS-CURRENT 1,809,835 3,496,839 (831,462) 0 749,681 SUBSIDIARY EQUITY: LPSCO SASI SMLP #3500 PVGC HOMEBUILDING (1,175,560) PALM VALLEY #5500 177,544,592 WWOS #4400 6,359,545 KABUTO JV #3000 12,602,800 COMMERCIAL PROPERTIES #2000 57,314,987 HIDDEN HILLS #3300 RANCHO SANTE FE #6600 ----------------------------------------------------------------------------------------- TOTAL EQUITY 634,276 181,041,431 5,528,083 12,602,800 58,064,668 ----------------------------------------------------------------------------------------- TOTAL LIABILITIES AND EQUITY 16,703,642 182,074,098 17,751,680 12,617,800 59,593,467 ========================================================================================= ELIMINATIONS ----------------------------------------------- ACCOUNT DESCRIPTION H HILLS R VIEJO REF DEBIT REF CREDIT ------------------------------------------------------------------------------------------------------------------ MINORITY INTEREST I,R 6,769,772 ----------- EQUITY: SDC COMMON STOCK SDC ADDITIONAL PAID IN CAPITAL SDC EARNED SURPLUS-BEGINNING SDC EARNED SURPLUS-CURRENT SUBSIDIARY EARNINGS-CURRENT (1,567) (10,049)D,F,I,M,S,V 8,799,172 L,O,T,U 928,599 SUBSIDIARY EQUITY: LPSCO F 8,130,695 SASI L 799,937 L 650,000 SMLP #3500 I 23,244,640 I 16,076,233 PVGC M 6,553,929 HOMEBUILDING D 1,175,560 PALM VALLEY #5500 V 177,544,592 WWOS #4400 O 23,026,125 O 16,666,580 KABUTO JV #3000 R 12,602,800 COMMERCIAL PROPERTIES #2000 S 57,572,855 S 257,868 HIDDEN HILLS #3300 478,683 T 478,683 RANCHO SANTE FE #6600 2,430,635 U 2,444,528 U 13,893 ------------------------- ------------------ ----------- TOTAL EQUITY 477,117 2,420,586 321,197,958 35,768,733 ------------------------- ------------------ ----------- TOTAL LIABILITIES AND EQUITY 478,017 2,488,655 346,020,857 42,596,951 ========================= ================== =========== ACCOUNT DESCRIPTION CONSOLIDATED --------------------------------------------------- MINORITY INTEREST 6,769,772 ------------ EQUITY: SDC COMMON STOCK 1,022,000 SDC ADDITIONAL PAID IN CAPITAL 405,368,522 SDC EARNED SURPLUS-BEGINNING (121,492,825) SDC EARNED SURPLUS-CURRENT 5,334,177 SUBSIDIARY EARNINGS-CURRENT 0 SUBSIDIARY EQUITY: LPSCO 0 SASI 0 SMLP #3500 0 PVGC 0 HOMEBUILDING 0 PALM VALLEY #5500 0 WWOS #4400 0 KABUTO JV #3000 (0) COMMERCIAL PROPERTIES #2000 0 HIDDEN HILLS #3300 0 RANCHO SANTE FE #6600 (0) ------------- TOTAL EQUITY 290,231,874 ------------- TOTAL LIABILITIES AND EQUITY 403,555,121 =============
* TO RECLASS CURRENT PORTION OF PVGC LOAN AS OF 12/31/97 SUNCOR DEVELOPMENT COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 1997 CONSOLIDATING & ELIMINATING ENTRIES
DEBIT CREDIT A. SCM INTERCO A/P TO SDC $4,797,280 GH INTERCO CAPITAL FROM SDC - ACQUISITION $1,432,265 GH INTERCO A/P TO SDC $1,181,097 SDC A/R FROM GH $421,643 SDC A/R FROM SCM $4,626,804 B. HOMEBUILDING CASH ADVANCES FROM SDC $8,996,796 SDC CASH ADVANCES TO HOMEBUILDING $8,996,796 C. SCM INTERCO CAPPED INTEREST $1,345,580 SDC INTERCO INTEREST A/R FROM SCM $1,345,580 TO ELIMINATE INTERCO RECEIVABLES/PAYABLES BETWEEN HOMEBUILDING AND SDC D. SDC INVESTMENT IN GH $151,062 SDC DUE DILIGENCE COSTS - GHH ACQUISITION -- SDC INVESTMENT IN SCM $483,214 HOMEBUILDING CURRENT YEAR INCOME $1,809,835 HOMEBUILDING ACCUMULATED LOSSES $1,175,560 TO ELIMINATE INVESTMENT IN GH & SCM ON SDC BOOKS E. DEFERRED INTERCO PROFIT $1,938,311 HOME INVENTORY $1,938,311 TO ELIMINATE B/S GROSS UP ON INTERCO LOT SALES BETWEEN SDC AND HOMEBUILDING F. LPSCO COMMON STOCK $78,200 LPSCO PAID IN CAPITAL $7,417,170 LPSCO EARNINGS - PRIOR $635,325 SDC DEFERRED TAXES DIFFERENTIAL $207,912 LPSCO EARNINGS - CURRENT YEAR $29,982 SDC INVESTMENT IN LPSCO - CONTRIB CAPITAL $7,495,370 SDC INVESTMENT IN LPSCO - EARNINGS $665,307 SDC INVESTMENT IN LPSCO - DEFERRED TAXES DIFFERENTIAL $207,912 ELIMINATE SDC INVESTMENT IN LPSCO G. LPSCO LONG-TERM NOTES PAYABLE $300,000 SDC LONG-TERM NOTES RECEIVABLE $300,000 ELIMINATE LPSCO INTERCOMPANY NOTE WITH SDC H. LPSCO ACCOUNTS PAYABLE $114,257 SDC ACCOUNTS RECEIVABLE $114,257 ELIMINATE LPSCO INTERCOMPANY A/R WITH SDC I. SMLP CONTRIBUTED CAPITAL-MINORITY INT $5,311,464
DEBIT CREDIT SMLP CONTRIBUTED CAPITAL-SDC GP $490,147 SMLP DISTRIBUTED CAPITAL-SDC GP $6,059,112 SMLP CONTRIBUTED CAPITAL-SDC LP $2,100,000 SMLP DISTRIBUTED CAPITAL-SDC LP $4,705,657 SMLP EARNINGS - PRIOR $20,654,493 SMLP EARNINGS - CURRENT YEAR $2,907,509 MINORITY INTEREST CONTRIBUTED CAPITAL $5,311,464 MINORITY INTEREST - PRIOR (35%) $7,229,073 MINORITY INTEREST - CURRENT YEAR (35%) $1,017,628 SDC INVESTMENT IN SMLP-LP $2,100,000 SDC DISTRIBUTIONS FROM SMLP-LP $4,705,657 SDC INVESTMENT IN SMLP-GP $490,147 SDC DISTRIBUTIONS FROM SMLP -GP $6,059,112 SDC INVESTMENT IN SMLP - EARNINGS $15,315,301 SDC LAND BASIS DIFFERENTIAL -- ELIMINATE SDC INVESTMENT IN SMLP #3500 J. SMLP ACCOUNTS PAYABLE $18,788 SDC ACCOUNTS RECEIVABLE $18,788 GH ACCOUNTS PAYABLE $158,000 SMLP ACCOUNTS RECEIVABLE $158,000 ELIMINATE SMLP INTERCOMPANY A/R WITH SDC AND HOMEBUILDING (PREMIUMS) K. SASI ACCOUNTS PAYABLE $95 SDC ACCOUNTS RECEIVABLE $95 ELIMINATE SASI INTERCOMPANY A/R WITH SDC L. SASI CONTRIBUTED CAPITAL $339,023 SASI CAPITAL DISTRIBUTIONS $650,000 SASI EARNINGS - PRIOR $460,914 SASI EARNINGS - CURRENT YEAR $85,522 PV INVESTMENT IN SASI - CONTRIB CAPITAL $339,023 PV INVESTMENT IN SASI - DISTRIBUTIONS $650,000 PV INVESTMENT IN SASI - EARNINGS $375,392 ELIMINATE PALM VALLEY INVESTMENT IN SASI M. PVGC CONTRIBUTED CAPITAL $6,158,173 PVGC EARNINGS - PRIOR $395,756 PVGC EARNINGS - CURRENT YEAR ($194,675) SDC INVESTMENT IN PVGC - EARNINGS $201,082 SDC INVESTMENT IN PVGC - CONTRIB CAPITAL $6,158,173 ELIMINATE SDC INVESTMENT IN PALM VALLEY GOLF N. SDC CONTRIB. CAPITAL TO PVGC $4,090,907 PVGC ACCOUNTS RECEIVABLE $4,090,907
DEBIT CREDIT ELIMINATE PVGC INTERCOMPANY A/R WITH SDC O. WWOS CONTRIBUTED CAPITAL-PHASE 1 $9,500,000 WWOS CONTRIBUTED CAPITAL-PHASE 2 $13,526,125 WWOS EARNINGS - PRIOR $1,101,590 WWOS EARNINGS - CURRENT YEAR $831,462 WWOS CAPITAL DISTRIBUTIONS-PHASE 1 $9,500,000 WWOS CAPITAL DISTRIBUTIONS-PHASE 2 $4,967,126 WWOS PREFERRED RETURN-PHASE 1 $287,568 WWOS PREFERRED RETURN-PHASE 2 $810,296 SDC INVESTMENT IN WWOS -PHASE 1 $9,500,000 SDC INVESTMENT IN WWOS -PHASE 2 $13,526,125 SDC INVESTMENT IN WWOS - EARNINGS $1,933,052 SDC DISTRIBUTIONS FROM WWOS-PHASE 1 $9,500,000 SDC DISTRIBUTIONS FROM WWOS-PHASE 2 $4,967,126 SDC PREFERRED RETURN -PHASE 1 $287,568 SDC PREFERRED RETURN -PHASE 2 $810,296 SDC BASIS DIFFERENTIAL PH I BUILDINGS -- SDC BASIS DIFFERENTIAL PH I LAND -- SDC BASIS DIFFERENTIAL PH II LAND -- SDC 1994 CAPPED INTEREST ON WWOS -- SDC 1995 DEVELOPMENT FEES -- ELIMINATE SDC INVESTMENT IN WIGWAM OUTLET STORES #4400 P. WWOS INTEREST PAYABLE $33,668 WWOS INTEREST PAYABLE $67,813 SDC INTEREST RECEIVABLE $33,668 SDC INTEREST RECEIVABLE $67,813 WWOS NOTES PAYABLE $1,484,153 SDC NOTES RECEIVABLE $1,484,153 WWOS NOTES PAYABLE $10,000,000 SDC NOTES RECEIVABLE $10,000,000 ELIMINATE WWOS INTERCOMPANY NOTES AND INTEREST WITH SDC Q. WWOS ACCOUNTS PAYABLE $12,397 SDC ACCOUNTS RECEIVABLE $12,397 ELIMINATE WWOS INTERCOMPANY A/R WITH SDC R. KABUTO CONTRIBUTED CAPITAL - SDC $8,768,265 KABUTO CONTRIBUTED CAPITAL - KABUTO $3,834,535 MINORITY INTEREST $3,834,535 SDC INVESTMENT IN KABUTO - CONTR CAPITAL $5,914,509 BALANCING PLUG $2,853,757 SDC BASIS DIFFERENTIAL IN LAND -- SDC DEVELOPMENT COSTS --
DEBIT CREDIT ELIMINATE SDC INVESTMENT IN KABUTO JV #3000 S. COMMERCIAL OPS CONTRIBUTED CAPITAL $57,572,855 COMMERCIAL EARNINGS - PRIOR $257,868 COMMERCIAL EARNINGS - CURRENT YEAR $749,681 SDC INVEST IN GEN COMMERCIAL OPS - EARNINGS $890,859 SDC INVEST IN GEN COMMERCIAL OPS - CONT CAPITAL $51,343,998 SDC INVESTMENT IN OUTER LIMITS - PURCHASE $1,822,515 SDC INVESTMENT IN FIDDLE (SCOTTS) - CONT CAPITAL $1,090,059 SDC INVESTMENT IN FIDDLE (SCOTTS) - EARNINGS $338,207 SDC INVESTMENT IN FUNTASTICKS - CONT CAPITAL $3,282,433 SDC INVESTMENT IN FUNTASTICKS - EARNINGS $161,781 SDC INVESTMENT IN FIDDLE (TEMPE) - CONT CAPITAL $2,213,969 SDC INVESTMENT IN FIDDLE (TEMPE) - EARNINGS $331,016 SDC INVESTMENT IN PV MARKETPLACE - EARNINGS $920,669 SDC INVESTMENT IN PV PAVILIONS - EARNINGS $671,963 SDC INVESTMENT IN PV CROSSING - EARNINGS $151,342 SDC INVESTMENT IN METROCENTER - EARNINGS $123,793 SDC INVESTMENT IN REST PLACE - EARNINGS $29,982 SDC INVESTMENT IN LITCHFIELD OTHER - EARNINGS $30,064 SDC INVESTMENT IN AUTOPLEX - EARNINGS $244,933 SDC INVESTMENT IN TALAVI - EARNINGS $92,150 ELIMINATE SDC INVESTMENT IN COMMERCIAL OPERATIONS #2000 T. HIDDEN HILLS CONTRIBUTED CAPITAL $478,683 HIDDEN HILLS EARNINGS - PRIOR $0 HIDDEN HILLS EARNINGS - CURRENT YEAR $1,567 SDC INVESTMENT IN HIDDEN HILLS - EARNINGS $1,567 SDC INVESTMENT IN HIDDEN HILLS - CONT CAPITAL $478,683 ELIMINATE SDC INVESTMENT IN HIDDEN HILLS JV #3300 U. SDC INVESTMENT IN RANCHO VIEJO - EARNINGS $23,942 SDC INVESTMENT IN RANCHO VIEJO - CAPITAL $2,444,528 RANCHO VIEJO CONTRIBUTED CAPITAL $2,444,528 RANCHO VIEJO EARNINGS - PRIOR $13,893 RANCHO VIEJO EARNINGS - CURRENT YEAR $10,049 ELIMINATE SDC INVESTMENT IN RANCHO VIEJO JV #6600 V. PV CONTRIBUTED CAPITAL $177,544,592 PV EARNINGS - PRIOR $0 PV EARNINGS - CURRENT YEAR $3,496,839 SDC INVESTMENT IN PALM VALLEY - EARNINGS $3,496,839 SDC INVESTMENT IN PALM VALLEY - DEVELOP $177,544,592 ELIMINATE SDC INVESTMENT IN PALM VALLEY #5500 TOTAL $372,755,514 $372,755,514
SUNCOR DEVELOPMENT COMPANY CONSOLIDATING INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 1997
ACCOUNT DESCRIPTION SUNCOR LPSCO SCTS MTN PVGC G H HOMES WWOS ---------------------------- ----------- ----------- ------------ ----------- ----------- ----------- REVENUES: SALE OF ASSETS $6,000,000 - - - - - DEFERRED PROFIT - - 279,896 - - - LAND SALES 40,827,538 - 4,876,887 - - - HOME SALES - - - - 58,111,924 - COMMERCIAL PROPERTIES 5,975,257 - - 2,194,091 - 2,322,774 UTILITY SALES - 1,618,907 - - - - MANAGEMENT FEES 1,149,442 - - - - - ----------- ----------- ------------ ----------- ----------- ----------- TOTAL OPERATING REVENUES 53,952,237 1,618,907 5,156,783 2,194,091 58,111,924 2,322,774 ----------- ----------- ------------ ----------- ----------- ----------- OPERATING EXPENSES COST OF ASSETS SOLD 5,043,300 - - - - - COST OF LAND SOLD 33,564,613 - 2,079,251 - - - COST OF HOMES SOLD (2,322,193) - - - 50,970,298 - LAND PROJECT COSTS 2,118,718 - 239,337 - - - COMMERCIAL PROPERTIES 4,498,370 - - 1,725,179 - 1,072,563 GENERAL & ADMINISTRATIVE 9,882,277 - 204,301 - 4,909,682 - UTILITY EXPENSE - 1,397,097 - - - - RESORT OPERATIONS 10,202 - - - - - DEPRECIATION & AMORTIZATION 716,227 178,950 563 158,207 336,901 954,720 ----------- ----------- ------------ ----------- ----------- ----------- TOTAL OPERATING EXPENSES 53,511,514 1,576,047 2,523,452 1,883,386 56,216,881 2,027,283 ----------- ----------- ------------ ----------- ----------- ----------- NET OPERATING INCOME 440,723 42,860 2,633,331 310,705 1,895,043 295,491 ----------- ----------- ------------ ----------- ----------- ----------- OTHER INCOME AND GAINS: EQUITY IN JOINT VENTURES 3,182,361 - - - - - INTEREST INCOME 857,924 14,466 281,535 - - 19,422 OTHER - - - - 49,269 - ----------- ----------- ------------ ----------- ----------- ----------- TOTAL OTHER INCOME AND GAINS 4,040,285 14,466 281,535 - 49,269 19,422 ----------- ----------- ------------ ----------- ----------- ----------- INTEREST EXPENSE INTEREST EXPENSE 5,870,928 27,340 7,357 505,378 134,477 1,146,375 LESS: CAPITALIZED INTEREST (3,494,746) - - - - - ----------- ----------- ------------ ----------- ----------- ----------- TOTAL INTEREST EXPENSE 2,376,182 27,340 7,357 505,378 134,477 1,146,375 ----------- ----------- ------------ ----------- ----------- ----------- NET INCOME BEFORE MINORITY INTEREST 2,104,825 29,986 2,907,509 (194,673) 1,809,835 (831,462) MINORITY INTEREST 480,231 - - - - - ----------- ----------- ------------ ----------- ----------- ----------- NET INCOME/(LOSS) $1,624,594 $29,986 $2,907,509 ($194,673) $1,809,835 ($831,462) =========== =========== ============ =========== =========== =========== HIDDEN RANCHO ELIMINATING CONSOLIDATED ACCOUNT DESCRIPTION HILLS VIEJO ENTRIES INCOME ---------------------------- ---------- ---------- ----------- ------------ REVENUES: SALE OF ASSETS - - - $6,000,000 DEFERRED PROFIT - - - 279,896 LAND SALES - 265,847 - 45,970,272 HOME SALES - - - 58,111,924 COMMERCIAL PROPERTIES - - - 10,492,122 UTILITY SALES - - - 1,618,907 MANAGEMENT FEES - - - 1,149,442 ---------- ---------- ----------- ------------ TOTAL OPERATING REVENUES - 265,847 - 123,622,563 ---------- ---------- ----------- ------------ OPERATING EXPENSES COST OF ASSETS SOLD - - - 5,043,300 COST OF LAND SOLD - 220,328 - 35,864,192 COST OF HOMES SOLD - - - 48,648,105 LAND PROJECT COSTS 290 60,945 - 2,419,290 COMMERCIAL PROPERTIES - - - 7,296,112 GENERAL & ADMINISTRATIVE 1,277 - - 15,057,115 UTILITY EXPENSE - - - 1,337,519 RESORT OPERATIONS - - - 10,202 DEPRECIATION & AMORTIZATION - 398 - 2,345,966 ---------- ---------- ----------- ------------ TOTAL OPERATING EXPENSES 1,567 281,671 - 118,021,801 ---------- ---------- ----------- ------------ NET OPERATING INCOME (1,567) (15,824) - 5,600,762 ---------- ---------- ----------- ------------ OTHER INCOME AND GAINS: EQUITY IN JOINT VENTURES - - - 3,182,361 INTEREST INCOME - 5,775 - 1,179,122 OTHER - - - 49,269 ---------- ---------- ----------- ------------ TOTAL OTHER INCOME AND GAINS - 5,775 - 4,410,752 ---------- ---------- ----------- ------------ INTEREST EXPENSE INTEREST EXPENSE - - - 7,691,855 LESS: CAPITALIZED INTEREST - - - (3,494,746) ---------- ---------- ----------- ------------ TOTAL INTEREST EXPENSE - - - 4,197,109 ---------- ---------- ----------- ------------ NET INCOME BEFORE MINORITY INTEREST (1,567) (10,049) - 5,814,405 MINORITY INTEREST - - - 480,231 ---------- ---------- ----------- ------------ NET INCOME/(LOSS) ($1,567) ($10,049) - $5,334,174 ========== ========== =========== ============
-----END PRIVACY-ENHANCED MESSAGE-----