-----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, P2s1ZG85X1Vrnsy9CJPw525egzTF3ubi015+VNmr0km6WtC+8JuKhRpzuQ1VYe9/ 4q4c7ZpMhxdTjRX95CsoNA== 0000950147-99-000171.txt : 19990302 0000950147-99-000171.hdr.sgml : 19990302 ACCESSION NUMBER: 0000950147-99-000171 CONFORMED SUBMISSION TYPE: U-3A-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990301 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: 99554524 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-3A-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. (3) APS Energy Services Company, Inc. ("APSES") -- an Arizona Corporation having been incorporated on November 6, 1998 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to sell energy, products and services. APSES 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 2 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. (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, 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 3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to serve as a general residential contractor. GH Construction became a wholly-owned 3 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 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 management 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 1590-B Pacheco Street, Santa Fe, New Mexico 87505, was organized to engage in real estate development in New Mexico. Rancho Viego is a wholly-owned subsidiary of SunCor. 4 (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. 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. 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. 5 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 3,986,900 kilowatts, comprised as follows: Coal: CAPACITY (kW) Units 1, 2 and 3 at Four Corners, aggregating ............................................. 560,000 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 ========= Gas or Oil: Two steam units at Ocotillo, two steam units at Saguaro and one steam unit at Yucca, aggregating ............................... 435,000(1) Eleven combustion turbine units, aggregating ............................................. 493,000 Three combined cycle units, aggregating ............................................. 255,000 --------- 1,183,000 ========= Nuclear: 29.1 % owned or leased Units 1, 2 and 3 at Palo Verde, representing ............................. 1,086,300 ========= Other ..................................................... 5,600 ========= - ------------------------- (1) West Phoenix steam units (108,300 kw) are currently mothballed. 6 APS' transmission facilities consist of approximately 5,268 pole miles of overhead lines and approximately 23 miles of underground lines, all of which are located within the State of Arizona. APS' distribution facilities consist of approximately 11,444 pole miles of overhead lines and approximately 10,110 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 (DATA IS NOT CURRENTLY MAINTAINED IN A FORMAT IDENTIFYING THE STATE IN WHICH THE SALES AND PURCHASES ARE MADE OR THE AMOUNT OF THEIR ASSOCIATED REVENUES OR EXPENSES.): a. NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT RETAIL OR WHOLESALE), AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL. CLAIMANT APS None 30,780,474,000 kwh of electric energy sold at wholesale or retail 0 Mcf. of natural or manufactured gas distributed at wholesale or retail b. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED. CLAIMANT APS None 62,591,000 kwh of electric energy was distributed at retail outside Arizona. 0 Mcf. of natural or manufactured gas distributed at retail outside Arizona 7 c. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS SOLD AT WHOLESALE OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED, OR AT THE STATE LINE. CLAIMANT APS None 976,200 kwh of electric energy was sold at wholesale (to meet wholesale native load) outside Arizona or at state line. Data on wholesale non-native load is not currently maintained in this format. 0 Mcf. of natural or manufactured gas sold at wholesale (to meet wholesale native load) outside Arizona or at state line. d. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS PURCHASED OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED OR AT THE STATE LINE. CLAIMANT APS None 0 kwh of electric energy was purchased outside Arizona or at state line. Data is not currently maintained in this format. 19,380,577 Mcf. of natural or manufactured gas (used for generation) purchased outside Arizona or at state line. 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. 8 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. 11 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. 12 EXHIBIT D In accordance with Item 304 of Regulation S-T of the Securities Exchange Act of 1934, APS' Service Territory map contained as Exhibit D to this Form U-3A-2 is a map of the State of Arizona showing APS' service area, the location of its major power plants and principal transmission lines, and the location of transmission lines operated by APS for others. The major power plants shown on such map are the Navajo Generating Station located in Coconino County, Arizona; the Four Corners Power Plant located near Farmington, New Mexico; the Cholla Power Plant, located in Navajo County, Arizona; the Yucca Power Plant, located near Yuma, Arizona; and the Palo Verde Nuclear Generating Station, located about 55 miles west of Phoenix, Arizona (each of which plants is reflected on such map as being jointly owned with other utilities), as well as the Ocotillo Power Plant and West Phoenix Power Plant, each located near Phoenix, Arizona, and the Saguaro Power Plant, located near Tucson, Arizona. APS' major transmission lines shown on such map are reflected as running between the power plants named above and certain major cities in the State of Arizona. The transmission lines operated for others shown on such map are reflected as running from the Four Corners Plant through a portion of northern Arizona to the California border. 13 The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 1st day of March, 1999. PINNACLE WEST CAPITAL CORPORATION (Name of Claimant) By Michael V. Palmeri -------------------------------- Michael V. Palmeri Treasurer [CORPORATE SEAL] Attest: Suzanne Debes - ------------------------- Suzanne Debes Associate Secretary Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed: MICHAEL V. PALMERI TREASURER (Name) (Title) 400 EAST VAN BUREN, SUITE 7OO, PHOENIX, ARIZONA 85004 (Address) 14 EXHIBIT B Financial Data Schedule The Claimant submits the following consolidated financial information: 1. Total Assets: $6,824,546,000 2. Total Operating Revenues: $2,130,586,000 3 Net Income: $242,892,000 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING BALANCE SHEET (UNAUDITED) December 31, 1998 (THOUSANDS OF DOLLARS)
*ELIMINATIONS AND ADJUSTING ENTRIES* PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL ---- --- ------ ---- ----- ------ ----- ASSET CURRENT ASSETS Cash and cash equivalents $ 8,833 $ 5,558 $ 4,332 $ 1,815 $ -- $ -- $ 20,538 Customer and other receivables - net 1,679 227,487 5,400 1,000 --(n) 1,690(b) 233,876 Accrued utility revenue 67,740 67,740 Materials and supplies 69,074 69,074 Fossil fuel 13,978 13,978 Deferred income taxes -- 3,999 3,975 -- 3,975(o) 3,999 Other current assets 619 26,695 21,287 33 1,040(c) 47,594 ---------- ---------- -------- -------- ------- ---------- ---------- Total current assets 11,131 414,531 34,994 2,848 -- 6,705 456,799 ---------- ---------- -------- -------- ------- ---------- ---------- INVESTMENTS AND OTHER ASSETS Real estate investments net (cap interest) 330,622 6,161(f) 5,762(e) 331,021 Other assets 2,333,482 183,549 9,018 24,295 2,313,782(a,f,h) 236,562 ---------- ---------- -------- -------- ------- ---------- ---------- Total investments and other 2,333,482 183,549 339,640 24,295 6,161 2,319,544 567,583 ---------- ---------- -------- -------- ------- ---------- ---------- UTILITY PLANT Electric plant in service and held for future use 7,265,604 7,265,604 Less accumulated depreciation and amortization 2,814,762 2,814,762 ---------- ---------- -------- -------- ------- ---------- ---------- Total Utility Plant 4,450,842 4,450,842 Nuclear Fuel, net of amortizaton 51,078 51,078 Construction work in progress 228,643 228,643 ---------- ---------- -------- -------- ------- ---------- ---------- Net Utility Plant 4,730,563 4,730,563 ---------- ---------- -------- -------- ------- ---------- ---------- DEFERRED DEBITS Deferred income taxes 33,228 33,228(o) -- Regulatory asset for income taxes 400,795 400,795 Rate synchronization cost deferrals 303,660 303,660 Other deferred debits 5,120 360,201 4,937 -- 8(h) 5,120(j) 365,146 ---------- ---------- -------- -------- ------- ---------- ---------- Total deferred debits 5,120 1,064,656 38,165 -- 8 38,348 1,069,601 ---------- ---------- -------- -------- ------- ---------- ---------- TOTAL ASSETS $2,349,733 $6,393,299 $412,799 $ 27,143 $ 6,169 $2,364,597 $6,824,546 ========== ========== ======== ======== ======= ========== ==========
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING BALANCE SHEET (UNAUDITED) December 31, 1998 (THOUSANDS OF DOLLARS)
LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $ 1,785 $ 145,139 $ 8,847 $ 34 $ 5(i) $ 155,800 Accrued taxes 59,827 -- 8 2,685(l,k) 62,520 Accrued interest 199 31,218 449 -- 31,866 Dividend payable -- -- --(d) -- Short-term borrowings -- -- --(m) -- Commerical paper, net -- 178,830 178,830 Current maturities of long-term debt 154,378 3,667 158,045 Customer Deposits 26,815 1,695 28,510 Other current liabilities 3,311 16,755 629 195 6,258(b,c,g) 14,632 ---------- ---------- --------- -------- ---------- --------- ---------- Total current liabilities 5,295 612,962 15,287 237 6,263 2,685 630,203 ---------- ---------- --------- -------- ---------- --------- ---------- NON-CURRENT LIABILITIES Long-term debt less current maturities 92,000 1,886,540 80,421 2,058,961 ---------- ---------- --------- -------- ---------- --------- ---------- DEFERRED CREDITS AND OTHER Deferred income taxes 71,412 1,312,007 39,883(k,o) 1,343,536 Deferred investment tax credit 32,465 5,120(j) 27,345 Unamortized gain-sale of utility plant 77,787 77,787 Other deferred credits 17,675 400,542 6,377 3,528(g) 428,122 ---------- ---------- --------- -------- ---------- --------- ---------- Total deferred credits 89,087 1,822,801 6,377 -- 45,003 3,528 1,876,790 ---------- ---------- --------- -------- ---------- --------- ---------- COMMITMENTS AND CONTINGENCIES (NOTE) MINORITY INTERESTS: Non-Redeemable preferred stock of APS 85,840 85,840 Redeemable preferred stock of APS 9,401 9,401 Joint Ventures of SunCor 5,762 5,762(e) -- COMMON STOCK EQUITY: Common stock 2,023,744 1,373,787 376,391 38,046 2,261,325(a) 1,550,643 Accumulated deficit 139,607 601,968 (71,439) (11,140) 46,288(a) 612,708 ---------- ---------- --------- -------- ---------- --------- ---------- Total 2,163,351 1,975,755 304,952 26,906 2,307,613 2,163,351 ---------- ---------- --------- -------- ---------- --------- ---------- TOTAL LIABILITIES AND EQUITY $2,349,733 $6,393,299 $ 412,799 $ 27,143 $2,364,641 $ 6,213 $6,824,546 ========== ========== ========= ======== ========== ========= ==========
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING BALANCE SHEET ELIMINATING AND ADJUSTING ENTRIES DEBITS CREDITS ------ ------- (a) Common stock $2,261,325 Accumulated earnings 46,288 Other investments $2,307,613 To eliminate PNW investment in subsidiaries Common Earnings/ Stock Dividends Total ----- --------- ----- APS $1,846,888 $ 128,867 $1,975,755 SunCor 376,391 (71,439) 304,952 El Dorado 38,046 (11,140) 26,906 ---------- ---------- ---------- Total $2,261,325 $ 46,288 $2,307,613 ========== ========== ========== (b) Other current liabilities $ 1,690 Customer and other receivables - net 1,690 To eliminate intercompany receivables/payables A/R A/P PNW Subs Books ---------- ---------- APS $1,276 $1,276 SunCor 225 225 El Dorado 189 189 ------ ------ Total $1,690 $1,690 ====== ====== (c) Other current liabilities $1,040 Other current assets $1,040 To eliminate PNW payable to APS (d) Dividends Payable -- Customer and other receivable - net -- To eliminate APS Dividend to PNW (e) Minority interest $5,762 Real estate investments - net $5,762 To eliminate minority interest of SunCor JV partners (f) Real estate investments - net $6,161 Other - assets $6,161 To reclass PNW capitalized interest related to SunCor (g) Other current liabilities $3,528 Other deferred credits $3,528 To reclass PNW deferred comp to long-term (h) Other deferred debits $8 Other - assets $8 To reclass PNW unamortized debt to long-term (i) Accounts payable $5 Accrued taxes $5 To reclass PNW property tax (j) Deferred investment tax credit $5,120 Other deferred debits $5,120 To reclass PNW ITC from Deferred taxes to Deferred ITC (k) Other deferred debits $2,680 Accrued taxes $2,680 To reclass PNW accrued taxes (o) Deferred income taxes-current portion $3,975 Deferred income taxes-noncurrent portion 33,228 Deferred income taxes $37,203 To eliminate Suncor deferred tax asset and PNW deferred tax liability. PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING INCOME STATEMENT (UNAUDITED) FOR THE PERIODS ENDED DECEMBER 31, 1998 (THOUSANDS OF DOLLARS)
ADJUSTMENTS & ELIMINATIONS PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL ---- --- ------ ---- ----- ------ ----- OPERATING REVENUES: Electric $ -- $2,006,398 $ -- $ -- $ -- $ -- $2,006,398 Real Estate 124,188 124,188 -------- ---------- --------- -------- --------- -------- ---------- Total -- 2,006,398 124,188 -- -- -- 2,130,586 -------- ---------- --------- -------- --------- -------- ---------- FUEL EXPENSES: Fuel for electric generation 231,967 231,967 Purchased power 305,534 305,534 -------- ---------- --------- -------- --------- -------- ---------- Total -- 537,501 -- -- -- -- 537,501 -------- ---------- --------- -------- --------- -------- ---------- OPERATING EXPENSES: Utility operations and maintenance 414,041 414,041 Real estate operations 116,216 731(b) 1,616(d) 115,331 Depreciation and amortization 209 376,574 2,896 -- 379,679 Taxes other than income taxes 115,264 1,642(c,d) 116,906 -------- ---------- --------- -------- --------- -------- ---------- Total 209 905,879 119,112 -- 2,373 1,616 1,025,957 -------- ---------- --------- -------- --------- -------- ---------- OPERATING INCOME (209) 563,018 5,076 -- (2,373) (1,616) 567,128 -------- ---------- --------- -------- --------- -------- ---------- OTHER INCOME (DEDUCTIONS): Interest on long-term debt (9,874) (137,214) (6,648) -- (153,736) Other interest (673) (15,061) -- -- 325(e) (15,409) Capitalized interest 16,263 2,333 18,596 Preferred stock dividend requirements (9,703) (9,703) Other, net 292,897 (12,303) 6,758 7,616 295,116(a,e) 757(b,c) 609 -------- ---------- --------- -------- --------- -------- ---------- Total 282,350 (158,018) 2,443 7,616 295,116 1,082 (159,643) -------- ---------- --------- -------- --------- -------- ---------- INCOME BEFORE INCOME TAXES 282,141 405,000 7,519 7,616 297,489 (534) 407,485 Income Tax Expense (Benefit) 39,249 159,456 (37,200) 3,088 164,593 -------- ---------- --------- -------- --------- -------- ---------- NET INCOME (L0SS) $242,892 $ 245,544 $ 44,719 $ 4,528 $ 297,489 $ (534) $ 242,892 ======== ========== ========= ======== ========= ======== ==========
PINNACLE WEST CAPITAL CORPORATION CONSOLIDATING INCOME STATEMENT ELIMINATING ENTRIES (a) Other - net (Subs income) $ 294,791 Retained Earnings $ 294,791 To eliminate PWCC Equity in earnings from subsidiaries PWCC ---- APS $245,544 SunCor 44,719 El Dorado 4,528 ------- Total $294,791 ======= (b) Real Estate Operations $ 731 Interest Expense (PWCC) $ 731 To reclass Capitalized Interest for SunCor Land Sales (c) Taxes other than income taxes $ 26 Other - net $ 26 To reclass PNW property taxes (d) Taxes other than income taxes $ 1,616 Real estate operations $ 1,616 To reclass SunCor property taxes (e) Other, net (El Dorado interest income) $ 325 Other interest $ 325 To eliminate interest on ELD loan to PNW SUNCOR DEVELOPMENT COMPANY CONSOLIDATED BALANCE SHEET (UNAUDITED) FOR THE MONTH ENDED DECEMBER 31, 1998
SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC ------------------- --------- ----- ---- ---- ---- ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS $ 1,019,737 $430,710 $ 395,991 $ 575,390 $ (1,126) 1 ACCOUNTS RECEIVABLE 266,375 141,342 66,609 1,224,420 20,757 INTERCOMPANY ACCOUNTS: 1 SASI 0 1 LPSCO 21,391 1 SMLP 27,761 1 PVGC 0 4,060,675 1 WWOS 48,503 1 GOLDEN HERITAGE - GENERAL 767,728 1 SCM-GENERAL 4,981,309 1 HOMEBUILDING I/C INTEREST 2,592,637 1 HOMEBUILDING CASH ADVANCES 12,778,208 COMMERCIAL - GENERAL 0 1 SUNRIDGE - DEVELOPMENT 38,671 1 SUNRIDGE - GOLF 218,991 1 SEDONA - DEVELOPMENT 43,125 1 SEDONA - GOLF 152,365 1 WIGWAM RESORT 179,892 1 INTEREST RECEIVABLE 371,731 NOTES RECEIVABLE 2,174,874 0 2 INVENTORIES 63,252 2 PREPAID EXPENSES 115,158 4,664 46,108 HOME INVENTORY 6,888 DEFERRED INCOME TAX 3,974,512 ---------- ------- ------- --------- --------- TOTAL CURRENT ASSETS 29,779,855 576,716 462,600 1,799,810 4,189,667 ---------- ------- ------- --------- --------- ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. ------------------- ----- ------ ---- --------- ----- ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS $ 926,993 $1,300,540 $ 193,117 $ 174 $ (416,346) 1 ACCOUNTS RECEIVABLE 269,382 173,920 428,734 INTERCOMPANY ACCOUNTS: 1 SASI 1 LPSCO 1 SMLP 1 PVGC 1 WWOS 1 GOLDEN HERITAGE - GENERAL 667,368 1 SCM-GENERAL (4,981,309) 1 HOMEBUILDING I/C INTEREST (2,592,637) 1 HOMEBUILDING CASH ADVANCES COMMERCIAL - GENERAL 1 SUNRIDGE - DEVELOPMENT 1 SUNRIDGE - GOLF 1 SEDONA - DEVELOPMENT 1 SEDONA - GOLF 1 WIGWAM RESORT 1 INTEREST RECEIVABLE 10,407 16,325 NOTES RECEIVABLE 12,120 2 INVENTORIES 36,162 2 PREPAID EXPENSES 1,014 11,850 HOME INVENTORY 23,553,307 DEFERRED INCOME TAX ---------- --------- ------- ----- --------- TOTAL CURRENT ASSETS 17,843,105 1,311,961 367,037 174 88,845 ---------- --------- ------- ----- --------- ELIMINATIONS -------------------------------- ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT ------------------- ------- ------- --------- --- ----- --- ------ ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS $ 1,892 $ (96,606) $ 1,445 $ -- $ -- 1 ACCOUNTS RECEIVABLE J,Q 315,272 INTERCOMPANY ACCOUNTS: 1 SASI 0 1 LPSCO H 21,391 1 SMLP J 0 J 27,761 1 PVGC N 4,060,675 1 WWOS Q 0 Q 48,503 1 GOLDEN HERITAGE - GENERAL A 1,432,265 1 SCM-GENERAL A 4,981,309 A 4,981,309 1 HOMEBUILDING I/C INTEREST C 2,592,637 C 2,592,637 1 HOMEBUILDING CASH ADVANCES B 12,777,915 COMMERCIAL - GENERAL 1 SUNRIDGE - DEVELOPMENT 1 SUNRIDGE - GOLF 1 SEDONA - DEVELOPMENT 1 SEDONA - GOLF 1 WIGWAM RESORT 1 INTEREST RECEIVABLE P 97,398 NOTES RECEIVABLE 0 2 INVENTORIES 12,480 2 PREPAID EXPENSES 1,839 HOME INVENTORY E 2,565,923 DEFERRED INCOME TAX ------ -------- ------- --------- ---------- TOTAL CURRENT ASSETS 1,892 (96,606) 15,763 7,573,946 28,921,050 ------ -------- ------- --------- ---------- ACCOUNT DESCRIPTION CONSOLIDATED ------------------- ------------ ASSETS: CURRENT ASSETS CASH AND SHORT TERM INVESTMENTS $ 4,331,912 1 ACCOUNTS RECEIVABLE 2,276,268 INTERCOMPANY ACCOUNTS: 1 SASI 0 1 LPSCO 0 1 SMLP 0 1 PVGC 0 1 WWOS 0 1 GOLDEN HERITAGE - GENERAL 2,831 1 SCM-GENERAL 0 1 HOMEBUILDING I/C INTEREST 0 1 HOMEBUILDING CASH ADVANCES 292 COMMERCIAL - GENERAL 0 1 SUNRIDGE - DEVELOPMENT 38,671 1 SUNRIDGE - GOLF 218,991 1 SEDONA - DEVELOPMENT 43,125 1 SEDONA - GOLF 152,365 1 WIGWAM RESORT 179,892 1 INTEREST RECEIVABLE 301,065 NOTES RECEIVABLE 2,186,994 2 INVENTORIES 111,894 2 PREPAID EXPENSES 180,632 HOME INVENTORY 20,994,272 DEFERRED INCOME TAX 3,974,512 ------------ TOTAL CURRENT ASSETS 34,993,716 ------------
SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC ------------------- --------- ----- ---- ---- ---- LONG-TERM ASSETS DEVELOPMENT PROJECTS CORAL CANYON HIDDEN HILLS RANCHO VIEJO PALM VALLEY LITCHFIELD GREENS VILLAGE OF LITCHFIELD GREENS SCOTTSDALE MOUNTAIN 5,597,906 MARKETPLACE - AUTOPLEX TATUM RANCH 7,011,475 TALAVI WIGWAM OUTLET STORES GOLDEN HERITAGE LAND BILTMORE ESTATES 0 OTHER COMMERCIAL LAND EQUITY INVESTMENTS: EQUITY IN CTRPT ASSOC-LLP INVEST IN KYRENE ASSOCIATES LLC INVEST IN PV APARTMENTS (I & II) INVESTMENT IN SUNRIDGE CANYON LLC 9,652,389 INVESTMENT IN SEDONA GOLF LC 3,589,437 INVESTMENT IN PLUMCOR REALTY LLC INVEST IN TALAVI ASSOCIATES LLC INVESTMENT IN WESTWORLD GOLF 782,907 CONSOLIDATED ELIMINATING ENTITIES: INVEST IN KABUTO/SUNCOR JV 5,882,342 INVESTMENT IN WIGWAM OUTLET LLC INVEST IN SCOTTS MTN LTD PART 5,245,299 INVEST IN GOLDEN HERITAGE 1,154,335 GOLDEN HERITAGE DUE DILIGENCE 0 INVESTMENT IN SCM 525,943 5 INVESTMENT IN LPSCO 12,173,458 INVESTMENT IN SASI 0 INVESTMENT IN PALM VALLEY 167,221,252 INVESTMENT IN PALM VALLEY GOLF 6,231,352 PALM VALLEY GOLF CONTRIB. CAP (4,060,675) INVESTMENT IN RANCHO VIEJO 8,674,183 INVESTMENT IN HIDDEN HILLS 1,170,838 INVESTMENT IN CORAL CANYON 481,241 PROJECT 2000: INVESTMENT IN FIDDLESTICKS-SCOTTS (603,562) INVESTMENT IN FIDDLESTICKS-TEMPE 1,623,517 INVESTMENT IN FUNTASTICKS 2,334,403 INVESTMENT IN GENERAL COMM OPS 79,255,821 INVESTMENT IN PV MARKETPLACE 1,406,129 INVESTMENT IN PV PAVILIONS 899,849 INVESTMENT IN PV CROSSING 311,587 INVESTMENT IN AUTOPLEX (574,137) INVESTMENT IN TALAVI (139,299) INVESTMENT IN METROCENTER 253,727 INVESTMENT IN RESTORATION PLACE (65,725) INVESTMENT IN LITCHFIELD PARK OPS 73,203 INVESTMENT IN LP PROF. PLAZA (18,428) INVESTMENT IN WWOS LLC (11,397) INVESTMENT IN APS PROPERTIES (126,084) COMMERCIAL PROPERTIES 5,294,782 LONG-TERM NOTES RECEIVABLE 5,964,889 SDC PHASE I LAND NOTE TO WWOS 1,304,153 SDC PAYOFF OF WWOS RLC 10,000,000 SDC LOAN TO LPSCO 300,000 PROPERTY & EQUIPMENT, NET 785,336 36,696 142,635 3 DEFERRED ASSETS 2,696,758 1,195,557 202,691 DEFERRED INCOME TAXES 33,225,488 WATER & SEWER UTILITY PROP, NET 13,503,454 3 DEPOSITS ------------ ------------- ------------- ------------ ------------- TOTAL LONG-TERM ASSETS 364,632,003 14,699,011 36,696 5,597,906 5,640,108 ------------ ------------- ------------- ------------ ------------- TOTAL ASSETS $394,411,858 $ 15,275,727 $ 499,296 $ 7,397,716 $ 9,829,775 ------------ ------------- ------------- ------------ ------------- ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. ------------------- ----- ------- ---- --------- ----- LONG-TERM ASSETS DEVELOPMENT PROJECTS CORAL CANYON HIDDEN HILLS RANCHO VIEJO PALM VALLEY 164,717,178 16,567,774 LITCHFIELD GREENS 943,106 VILLAGE OF LITCHFIELD GREENS 12,705,211 SCOTTSDALE MOUNTAIN MARKETPLACE - AUTOPLEX 12,962,803 TATUM RANCH TALAVI 2,414,265 WIGWAM OUTLET STORES 16,232,891 GOLDEN HERITAGE LAND 1,393,876 BILTMORE ESTATES OTHER COMMERCIAL LAND 3,500,641 EQUITY INVESTMENTS: EQUITY IN CTRPT ASSOC-LLP 23,472,509 INVEST IN KYRENE ASSOCIATES LLC 1,440,528 INVEST IN PV APARTMENTS (I & II) 936,291 INVESTMENT IN SUNRIDGE CANYON LLC INVESTMENT IN SEDONA GOLF LC INVESTMENT IN PLUMCOR REALTY LLC 120,000 INVEST IN TALAVI ASSOCIATES LLC 2,842,332 INVESTMENT IN WESTWORLD GOLF CONSOLIDATED ELIMINATING ENTITIES: INVEST IN KABUTO/SUNCOR JV INVESTMENT IN WIGWAM OUTLET LLC 3,807,232 INVEST IN SCOTTS MTN LTD PART INVEST IN GOLDEN HERITAGE GOLDEN HERITAGE DUE DILIGENCE INVESTMENT IN SCM 5 INVESTMENT IN LPSCO 373,781 INVESTMENT IN SASI INVESTMENT IN PALM VALLEY INVESTMENT IN PALM VALLEY GOLF PALM VALLEY GOLF CONTRIB. CAP INVESTMENT IN RANCHO VIEJO INVESTMENT IN HIDDEN HILLS INVESTMENT IN CORAL CANYON 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 LP PROF. PLAZA INVESTMENT IN WWOS LLC INVESTMENT IN APS PROPERTIES COMMERCIAL PROPERTIES 18,007,355 LONG-TERM NOTES RECEIVABLE 187,817 265,654 SDC PHASE I LAND NOTE TO WWOS SDC PAYOFF OF WWOS RLC SDC LOAN TO LPSCO PROPERTY & EQUIPMENT, NET 1,388,591 99,108 71,783 3 DEFERRED ASSETS 169,620 157,599 441,233 DEFERRED INCOME TAXES WATER & SEWER UTILITY PROP, NET 3 DEPOSITS 72,915 ---------- ------------- ------------- ------------- ------------- TOTAL LONG-TERM ASSETS 2,855,382 167,426,901 16,462,273 12,705,211 85,842,327 ---------- ------------- ------------- ------------- ------------- TOTAL ASSETS 20,698,487 $ 168,738,862 $ 16,829,310 $ 12,705,385 $ 85,931,172 ---------- ------------- ------------- ------------- ------------- ELIMINATIONS --------------------------------- ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT ------------------- ------- ------- --------- --- ----- --- ------ LONG-TERM ASSETS DEVELOPMENT PROJECTS CORAL CANYON 465,261 HIDDEN HILLS 1,199,790 RANCHO VIEJO 9,258,472 PALM VALLEY LITCHFIELD GREENS VILLAGE OF LITCHFIELD GREENS SCOTTSDALE MOUNTAIN MARKETPLACE - AUTOPLEX TATUM RANCH TALAVI WIGWAM OUTLET STORES GOLDEN HERITAGE LAND BILTMORE ESTATES OTHER COMMERCIAL LAND EQUITY INVESTMENTS: EQUITY IN CTRPT ASSOC-LLP INVEST IN KYRENE ASSOCIATES LLC INVEST IN PV APARTMENTS (I & II) INVESTMENT IN SUNRIDGE CANYON LLC INVESTMENT IN SEDONA GOLF LC INVESTMENT IN PLUMCOR REALTY LLC INVEST IN TALAVI ASSOCIATES LLC INVESTMENT IN WESTWORLD GOLF CONSOLIDATED ELIMINATING ENTITIES: INVEST IN KABUTO/SUNCOR JV R 8,853,122 INVESTMENT IN WIGWAM OUTLET LLC O 18,539,382 O 23,340,125 INVEST IN SCOTTS MTN LTD PART I 15,730,119 I 20,999,080 INVEST IN GOLDEN HERITAGE 0 D 1,154,335 GOLDEN HERITAGE DUE DILIGENCE INVESTMENT IN SCM D 525,943 5 INVESTMENT IN LPSCO F 11,925,668 INVESTMENT IN SASI L 650,000 L 1,023,781 INVESTMENT IN PALM VALLEY 0 V 167,221,252 INVESTMENT IN PALM VALLEY GOLF M 6,231,352 PALM VALLEY GOLF CONTRIB. CAP N 4,060,675 INVESTMENT IN RANCHO VIEJO U 85,702 U 8,759,885 INVESTMENT IN HIDDEN HILLS T 3,070 T 1,173,907 INVESTMENT IN CORAL CANYON W 481,241 PROJECT 2000: INVESTMENT IN FIDDLESTICKS-SCOTTS S 2,426,077 S 1,822,515 INVESTMENT IN FIDDLESTICKS-TEMPE S 1,623,517 INVESTMENT IN FUNTASTICKS S 2,334,403 INVESTMENT IN GENERAL COMM OPS S 0 S 79,255,821 INVESTMENT IN PV MARKETPLACE S 1,406,129 INVESTMENT IN PV PAVILIONS S 899,849 INVESTMENT IN PV CROSSING S 0 S 311,587 INVESTMENT IN AUTOPLEX S 574,137 INVESTMENT IN TALAVI S 139,299 INVESTMENT IN METROCENTER S 253,727 INVESTMENT IN RESTORATION PLACE S 65,725 INVESTMENT IN LITCHFIELD PARK OPS S 73,203 INVESTMENT IN LP PROF. PLAZA S 18,428 S 0 INVESTMENT IN WWOS LLC S 11,397 S 0 INVESTMENT IN APS PROPERTIES S 126,084 S COMMERCIAL PROPERTIES LONG-TERM NOTES RECEIVABLE SDC PHASE I LAND NOTE TO WWOS P 1,304,153 SDC PAYOFF OF WWOS RLC P 10,000,000 SDC LOAN TO LPSCO G 300,000 PROPERTY & EQUIPMENT, NET 70,633 5,264 3 DEFERRED ASSETS 0 DEFERRED INCOME TAXES WATER & SEWER UTILITY PROP, NET 3 DEPOSITS 150 ------------ ------------ --------- ------------ -------------- TOTAL LONG-TERM ASSETS 1,199,790 9,329,105 470,675 42,430,095 351,274,594 ------------ ------------ --------- ------------ -------------- TOTAL ASSETS $ 1,201,682 $ 9,232,499 $ 486,439 $ 50,004,040 $ 380,195,645 ------------ ------------ --------- ------------ -------------- ACCOUNT DESCRIPTION CONSOLIDATED ------------------- ------------ LONG-TERM ASSETS DEVELOPMENT PROJECTS CORAL CANYON HIDDEN HILLS 465,261 RANCHO VIEJO 1,199,790 PALM VALLEY 9,258,472 LITCHFIELD GREENS 181,284,952 VILLAGE OF LITCHFIELD GREENS 943,106 SCOTTSDALE MOUNTAIN 12,705,211 MARKETPLACE - AUTOPLEX 5,597,906 TATUM RANCH 12,962,803 TALAVI 7,011,475 WIGWAM OUTLET STORES 2,414,265 GOLDEN HERITAGE LAND 16,232,891 BILTMORE ESTATES 1,393,876 OTHER COMMERCIAL LAND 0 EQUITY INVESTMENTS: 3,500,641 EQUITY IN CTRPT ASSOC-LLP 0 INVEST IN KYRENE ASSOCIATES LLC 23,472,509 INVEST IN PV APARTMENTS (I & II) 1,440,528 INVESTMENT IN SUNRIDGE CANYON LLC 936,291 INVESTMENT IN SEDONA GOLF LC 9,652,389 INVESTMENT IN PLUMCOR REALTY LLC 3,589,437 INVEST IN TALAVI ASSOCIATES LLC 120,000 INVESTMENT IN WESTWORLD GOLF 2,842,332 CONSOLIDATED ELIMINATING ENTITIES: 782,907 INVEST IN KABUTO/SUNCOR JV 0 INVESTMENT IN WIGWAM OUTLET LLC (2,970,780) INVEST IN SCOTTS MTN LTD PART (993,511) INVEST IN GOLDEN HERITAGE (23,662) GOLDEN HERITAGE DUE DILIGENCE 0 INVESTMENT IN SCM 0 5 INVESTMENT IN LPSCO 0 INVESTMENT IN SASI 247,790 INVESTMENT IN PALM VALLEY 0 INVESTMENT IN PALM VALLEY GOLF 0 PALM VALLEY GOLF CONTRIB. CAP 0 INVESTMENT IN RANCHO VIEJO 0 INVESTMENT IN HIDDEN HILLS 0 INVESTMENT IN CORAL CANYON 0 PROJECT 2000: 0 INVESTMENT IN FIDDLESTICKS-SCOTTS INVESTMENT IN FIDDLESTICKS-TEMPE 0 INVESTMENT IN FUNTASTICKS 0 INVESTMENT IN GENERAL COMM OPS 0 INVESTMENT IN PV MARKETPLACE 0 INVESTMENT IN PV PAVILIONS 0 INVESTMENT IN PV CROSSING 0 INVESTMENT IN AUTOPLEX 0 INVESTMENT IN TALAVI 0 INVESTMENT IN METROCENTER 0 INVESTMENT IN RESTORATION PLACE 0 INVESTMENT IN LITCHFIELD PARK OPS 0 INVESTMENT IN LP PROF. PLAZA 0 INVESTMENT IN WWOS LLC 0 INVESTMENT IN APS PROPERTIES 0 COMMERCIAL PROPERTIES 0 LONG-TERM NOTES RECEIVABLE 23,302,137 SDC PHASE I LAND NOTE TO WWOS 6,418,360 SDC PAYOFF OF WWOS RLC 0 SDC LOAN TO LPSCO 0 PROPERTY & EQUIPMENT, NET 0 3 DEFERRED ASSETS 2,600,045 DEFERRED INCOME TAXES 4,863,457 WATER & SEWER UTILITY PROP, NET 33,225,488 3 DEPOSITS 13,503,454 73,065 TOTAL LONG-TERM ASSETS ------------- 378,052,887 TOTAL ASSETS ------------- $ 413,046,603 -------------
SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC ------------------- --------- ----- ---- ---- ---- LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION $ 198,218 $ 193,109 $ 19,428 $ 69,484 $ 35,838 4 ACCRUED LIABILITIES 2,083,844 226,417 38,726 104,121 73,731 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC 21,391 4 SMLP - SDC 27,761 4 SCM-SDC CASH ADVANCES 267 4 GH-SDC INTERCO CAPITAL 265 4 WWOS-SDC INTEREST PAYABLE 443,916 S/T NOTES PAYABLE $45 MILLION TERM LOAN 3,208,144 $55 MILLION RLC GOLDEN HERITAGE (PEW) TEXTRON LOAN - PVGC DEF PROFIT & UNEARNED REVENUE 2,661,923 18,569 0 PWCC INTERCO PAYABLE 358,870 APS LAND INTERCO PAYABLE CUSTOMER DEPOSITS --------- ------- ------ ------- ------- TOTAL CURRENT LIABILITIES 8,954,915 440,917 76,723 201,366 109,569 --------- ------- ------ ------- ------- LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE WWOS RLC PAYOFF BY SDC CORPORATE TERM NOTE 38,853,019 CORPORATE RLC 38,138,836 LPSCO OWES SDC 300,000 TEXTRON LOAN - PVGC 3,488,854 5 OTHER ACCRUED LIABILITIES 3,513,221 889,149 48,792 5 DEFERRED TAXES 216,617 5 LONG-TERM CUSTOMER DEPOSITS 586,162 5 CONTRIB PROPERTY AIA 916,642 ---------- --------- ------- ------- --------- TOTAL L/T LIABILITIES 80,505,077 2,908,570 48,792 0 3,488,854 ---------- --------- ------- ------- --------- TOTAL LIABILITIES 89,459,992 3,349,487 125,515 201,366 3,598,423 ---------- --------- ------- ------- --------- MINORITY INTEREST ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. ------------------- ----- -- ---- --------- ----- LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION $ 2,714,754 $ 1,036,745 $ 578,516 $ $ 202,637 4 ACCRUED LIABILITIES (5,282) 159,457 17,728 820,338 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC 4 SMLP - SDC 4 SCM-SDC CASH ADVANCES 267 12,777,915 4 GH-SDC INTERCO CAPITAL 265 1,432,265 4 WWOS-SDC 48,503 INTEREST PAYABLE 5,371 97,397 S/T NOTES PAYABLE $45 MILLION TERM LOAN $55 MILLION RLC GOLDEN HERITAGE (PEW) 398,595 TEXTRON LOAN - PVGC DEF PROFIT & UNEARNED REVENUE 97,416 58,449 PWCC INTERCO PAYABLE APS LAND INTERCO PAYABLE (0) CUSTOMER DEPOSITS 1,694,749 ---------- --------- ------- ------ --------- TOTAL CURRENT LIABILITIES 19,018,368 1,293,618 724,417 17,728 1,081,424 ---------- --------- ------- ------ --------- LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE 1,304,153 WWOS RLC PAYOFF BY SDC 10,000,000 CORPORATE TERM NOTE CORPORATE RLC LPSCO OWES SDC TEXTRON LOAN - PVGC 5 OTHER ACCRUED LIABILITIES 224,212 230,145 5 DEFERRED TAXES 5 LONG-TERM CUSTOMER DEPOSITS 5 CONTRIB PROPERTY AIA ---------- --------- ---------- ------ --------- TOTAL L/T LIABILITIES 0 224,212 11,304,153 0 230,145 ---------- --------- ---------- ------ --------- TOTAL LIABILITIES 19,018,368 1,517,830 12,028,570 17,728 1,311,568 ---------- --------- ---------- ------ --------- MINORITY INTEREST ELIMINATIONS ----------------------------------- ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT ------------------- ------- ------- --------- --- ----- --- ------ LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION $ 1,200 $ 350,326 $ 5,197 J,K,Q $ 315,272 $ -- 4 ACCRUED LIABILITIES 29,837 207,991 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC H 21,391 4 SMLP - SDC J 27,761 0 4 SCM-SDC CASH ADVANCES 267 B 12,777,915 0 4 GH-SDC INTERCO CAPITAL 265 A 1,432,265 0 4 WWOS-SDC Q 48,503 0 INTEREST PAYABLE P 97,398 S/T NOTES PAYABLE $45 MILLION TERM LOAN $55 MILLION RLC GOLDEN HERITAGE (PEW) 0 TEXTRON LOAN - PVGC * 59,956 DEF PROFIT & UNEARNED REVENUE E 2,565,923 PWCC INTERCO PAYABLE APS LAND INTERCO PAYABLE CUSTOMER DEPOSITS ------ ------- ----- --- ---------- --- ------ TOTAL CURRENT LIABILITIES 31,037 558,317 5,197 0 17,286,430 O 59,956 ------ ------- ----- --- ---------- --- ------ LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE P 1,304,153 WWOS RLC PAYOFF BY SDC P 10,000,000 CORPORATE TERM NOTE CORPORATE RLC LPSCO OWES SDC G 300,000 TEXTRON LOAN - PVGC * 59,956 5 OTHER ACCRUED LIABILITIES 5 DEFERRED TAXES 5 LONG-TERM CUSTOMER DEPOSITS 5 CONTRIB PROPERTY AIA ------ ------- ----- ---------- ------ TOTAL L/T LIABILITIES 0 0 0 11,664,109 0 ------ ------- ----- ---------- ------ TOTAL LIABILITIES 31,037 558,317 5,197 28,950,539 59,956 ------ ------- ----- ---------- ------ MINORITY INTEREST I 7,985,114 I,R 13,747,038 ACCOUNT DESCRIPTION CONSOLIDATED ------------------- ------------ LIABILITIES: CURRENT LIABILITIES 4 A/P & RETENTION $ 5,090,181 4 ACCRUED LIABILITIES 3,756,908 INTERCOMPANY ACCOUNTS: 4 LPSCO - SDC 0 4 SMLP - SDC 0 4 SCM-SDC CASH ADVANCES 267 0 4 GH-SDC INTERCO CAPITAL 265 0 4 WWOS-SDC 0 INTEREST PAYABLE 449,286 S/T NOTES PAYABLE $45 MILLION TERM LOAN 3,208,144 $55 MILLION RLC 0 GOLDEN HERITAGE (PEW) 398,595 TEXTRON LOAN - PVGC 59,956 DEF PROFIT & UNEARNED REVENUE 270,434 PWCC INTERCO PAYABLE 358,870 APS LAND INTERCO PAYABLE (0) CUSTOMER DEPOSITS 1,694,749 ------------- TOTAL CURRENT LIABILITIES 15,287,123 ------------- LONG-TERM LIABILITIES LONG-TERM NOTES PAYABLE WWOS OWES SDC PH I LAND NOTE 0 WWOS RLC PAYOFF BY SDC 0 CORPORATE TERM NOTE 38,853,019 CORPORATE RLC 38,138,836 LPSCO OWES SDC 0 TEXTRON LOAN - PVGC 3,428,898 5 OTHER ACCRUED LIABILITIES 4,905,519 5 DEFERRED TAXES 216,617 5 LONG-TERM CUSTOMER DEPOSITS 586,162 5 CONTRIB PROPERTY AIA 916,642 ------------- TOTAL L/T LIABILITIES 87,045,693 ------------- TOTAL LIABILITIES 102,332,816 ------------- MINORITY INTEREST 5,761,924
SUNCOR ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC ------------------- --------- ----- ---- ---- ---- EQUITY: SDC COMMON STOCK 1,022,000 SDC ADDITIONAL PAID IN CAPITAL 375,368,522 SDC EARNED SURPLUS-BEGINNING (116,158,648) SDC EARNED SURPLUS-CURRENT 44,719,992 SUBSIDIARY EARNINGS-CURRENT 30,780 159,366 4,759,433 (127,903) SUBSIDIARY EQUITY: LPSCO 11,895,460 SASI 214,415 SMLP #3500 2,436,916 PVGC 6,359,255 HOMEBUILDING PALM VALLEY #5500 WWOS #4400 KABUTO JV #3000 COMMERCIAL PROPERTIES #2000 HIDDEN HILLS #3300 RANCHO VIEJO #6600 CORAL CANYON #3900 ------------ ------------- ------------ ------------ ------------ TOTAL EQUITY 304,951,866 11,926,240 373,781 7,196,349 6,231,352 ------------ ------------- ------------ ------------ ------------ TOTAL LIABS AND EQUITY $394,411,858 $ 15,275,727 $ 499,296 $ 7,397,716 $ 9,829,775 ============ ============= ============ ============ ============ ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. ------------------- ----- -- ---- --------- ----- EQUITY: SDC COMMON STOCK SDC ADDITIONAL PAID IN CAPITAL SDC EARNED SURPLUS-BEGINNING SDC EARNED SURPLUS-CURRENT SUBSIDIARY EARNINGS-CURRENT 1,046,001 6,128,499 (90,343) 0 3,604,982 SUBSIDIARY EQUITY: LPSCO SASI SMLP #3500 PVGC HOMEBUILDING 634,276 PALM VALLEY #5500 161,092,534 WWOS #4400 4,891,083 KABUTO JV #3000 12,687,657 COMMERCIAL PROPERTIES #2000 81,014,621 HIDDEN HILLS #3300 RANCHO VIEJO #6600 CORAL CANYON #3900 ------------ ------------- ------------- ------------- ------------- TOTAL EQUITY 1,680,277 167,221,032 4,800,740 12,687,657 84,619,603 ------------ ------------- ------------- ------------- ------------- TOTAL LIABS AND EQUITY $ 20,698,645 $ 168,738,862 $ 16,829,310 $ 12,705,385 $ 85,931,172 ============ ============= ============= ============= ============= ELIMINATIONS --------------------------------------- ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT ------------------- ------- ------- --------- --- ----- --- ------ EQUITY: SDC COMMON STOCK SDC ADDITIONAL PAID IN CAPITAL SDC EARNED SURPLUS-BEGINNING SDC EARNED SURPLUS-CURRENT SUBSIDIARY EARNINGS-CURRENT (1,502) (61,761) F,L,I,S,V 15,729,061 O,T,U,M 281,505 SUBSIDIARY EQUITY: LPSCO F 11,895,460 SASI L 864,415 L 650,000 SMLP #3500 I 26,152,149 I 23,715,233 PVGC M 6,359,255 0 HOMEBUILDING D 634,276 0 PALM VALLEY #5500 V 161,092,534 WWOS #4400 O 23,860,125 O 18,969,042 KABUTO JV #3000 R 12,687,657 COMMERCIAL PROPERTIES #2000 S 81,014,621 0 HIDDEN HILLS #3300 1,172,147 T 1,173,714 T 1,567 RANCHO VIEJO #6600 8,735,943 U 8,759,885 U 23,942 CORAL CANYON #3900 481,241 W 481,241 ------------- ------------- --------- ------------ ------------ TOTAL EQUITY 1,170,645 8,674,182 481,241 350,704,393 43,641,289 ------------- ------------- --------- ------------ ------------ TOTAL LIABS AND EQUITY $ 1,201,682 $ 9,232,499 $ 486,439 $387,640,045 $ 57,448,282 ============= ============= ========= ============ ============ ACCOUNT DESCRIPTION CONSOLIDATED ------------------- ------------ EQUITY: SDC COMMON STOCK 1,022,000 SDC ADDITIONAL PAID IN CAPITAL 375,368,522 SDC EARNED SURPLUS-BEGINNING (116,158,648) SDC EARNED SURPLUS-CURRENT 44,719,992 SUBSIDIARY EARNINGS-CURRENT (3) 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 VIEJO #6600 0 CORAL CANYON #3900 0 ------------- TOTAL EQUITY 304,951,863 ------------- TOTAL LIABS AND EQUITY $ 413,046,603 =============
SUNCOR DEVELOPMENT COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES DEBIT CREDIT ----- ------ A. SCM INTERCO A/P TO SDC $ 4,981,309 SDC A/R FROM SCM $ 4,981,309 GH INTERCO CAPITAL FROM SDC - ACQUISITION $ 1,432,265 GH INTERCO A/P TO SDC $ 664,537 SDC A/R FROM GH $ 767,728 B. HOMEBUILDING CASH ADVANCES FROM SDC $12,777,915 SDC CASH ADVANCES TO HOMEBUILDING $12,777,915 C. SCM INTERCO CAPPED INTEREST $ 2,592,637 SDC INTERCO INTEREST A/R FROM SCM $ 2,592,637 ELIMINATE INTERCO RECEIVABLES/PAYABLES BETWEEN HOMEBUILDING AND SDC D. HOMEBUILDING ACCUMULATED EARNINGS $ 634,276 SDC INVESTMENT IN GH $ 1,154,335 SDC INVESTMENT IN SCM $ 525,943 HOMEBUILDING CURRENT YEAR EARNINGS $ 1,046,001 ELIMINATE SDC INVESTMENT IN GOLDEN HERITAGE & SCM E. DEFERRED INTERCO PROFIT $ 2,565,923 HOME INVENTORY $ 2,565,923 ELIMINATE DEFERRED PROFIT ON INTERCO LOT SALES TO HOMEBUILDING F. LPSCO COMMON STOCK $ 78,200 LPSCO PAID IN CAPITAL $11,151,953 LPSCO EARNINGS - PRIOR $ 665,307 LPSCO EARNINGS - CURRENT YEAR $ 30,780 SDC INVESTMENT IN LPSCO - CONTRIB CAPITAL $11,230,153 SDC INVESTMENT IN LPSCO - EARNINGS $ 695,515 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 $ 21,391 SDC ACCOUNTS RECEIVABLE $ 21,391 ELIMINATE LPSCO INTERCOMPANY A/R WITH SDC SUNCOR DEVELOPMENT COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES DEBIT CREDIT ----- ------ I. SMLP CONTRIBUTED CAPITAL - MINORITY INT $ 7,985,114 SMLP CONTRIBUTED CAPITAL - SDC GP $ 490,147 SMLP DISTRIBUTED CAPITAL - SDC GP $ 9,878,612 SMLP CONTRIBUTED CAPITAL - SDC LP $ 2,100,000 SMLP DISTRIBUTED CAPITAL - SDC LP $ 5,851,507 SMLP EARNINGS - PRIOR $23,562,002 SMLP EARNINGS - CURRENT YEAR $ 4,759,433 MINORITY INTEREST CONTRIBUTED CAPITAL $ 7,985,114 MINORITY INTEREST - PRIOR (35%) $ 8,246,701 MINORITY INTEREST - CURRENT YEAR (35%) $ 1,665,802 SDC INVESTMENT IN SMLP - LP $ 2,100,000 SDC DISTRIBUTIONS FROM SMLP - LP $ 5,851,507 SDC INVESTMENT IN SMLP - GP $ 490,147 SDC DISTRIBUTIONS FROM SMLP - GP $ 9,878,612 SDC INVESTMENT IN SMLP - EARNINGS $18,408,933 ELIMINATE SDC INVESTMENT IN SMLP #3500 J. SMLP ACCOUNTS PAYABLE $ 27,761 SDC ACCOUNTS RECEIVABLE $ 27,761 GH ACCOUNTS PAYABLE $ 310,000 SMLP ACCOUNTS RECEIVABLE $ 310,000 ELIMINATE SMLP INTERCOMPANY A/R WITH SDC AND HOMEBUILDING (PREMIUMS) K. SASI ACCOUNTS PAYABLE $ 0 $ 0 SDC ACCOUNTS RECEIVABLE $ 0 $ 0 ELIMINATE SASI INTERCOMPANY A/R WITH SDC L. SASI CONTRIBUTED CAPITAL $ 489,023 SASI CAPITAL DISTRIBUTIONS $ 650,000 SASI EARNINGS - PRIOR $ 375,392 SASI EARNINGS - CURRENT YEAR $ 159,366 PV INVESTMENT IN SASI - CONTRIB CAPITAL $ 489,023 PV INVESTMENT IN SASI - DISTRIBUTIONS $ 650,000 PV INVESTMENT IN SASI - EARNINGS $ 534,758 ELIMINATE PALM VALLEY INVESTMENT IN SASI M. PVGC CONTRIBUTED CAPITAL $ 6,158,173 PVGC EARNINGS - PRIOR $ 201,082 PVGC EARNINGS - CURRENT YEAR $ 127,903 SDC INVESTMENT IN PVGC - EARNINGS $ 73,179 SDC INVESTMENT IN PVGC - CONTRIB CAPITAL $ 6,158,173 ELIMINATE SDC INVESTMENT IN PALM VALLEY GOLF N. SDC CONTRIB. CAPITAL TO PVGC $ 4,060,675 PVGC ACCOUNTS RECEIVABLE $ 4,060,675 SUNCOR DEVELOPMENT COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES DEBIT CREDIT ----- ------ ELIMINATE PALM VALLEY GOLF INTERCOMPANY A/R WITH SDC O. WWOS CONTRIBUTED CAPITAL - PHASE 1 $ 9,500,000 WWOS CONTRIBUTED CAPITAL - PHASE 2 $13,522,531 WWOS CONTRIBUTED WORKING CAPITAL $ 837,594 WWOS EARNINGS - PRIOR $ 1,933,052 WWOS EARNINGS - CURRENT YEAR $ 90,340 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 $ 2,281,296 SDC INVESTMENT IN WWOS - PHASE 1 $ 9,500,000 SDC INVESTMENT IN WWOS - PHASE 2 $13,408,870 SDC INVESTMENT IN WWOS -CONTRIBUTED CAPITAL $ 431,255 SDC INVESTMENT IN WWOS - EARNINGS $ 2,023,392 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 $ 1,761,296 ELIMINATE SDC COMMERCIAL INVESTMENT IN WIGWAM OUTLET STORES #4400 P. WWOS INTEREST PAYABLE - PHASE 1 LAND $ 29,585 WWOS INTEREST PAYABLE - RLC $ 67,813 SDC INTEREST RECEIVABLE - PHASE 1 LAND $ 29,585 SDC INTEREST RECEIVABLE - RLC $ 67,813 WWOS NOTES PAYABLE - PHASE 1 LAND $ 1,304,153 SDC NOTES RECEIVABLE - PHASE 1 LAND $ 1,304,153 WWOS NOTES PAYABLE - RLC $10,000,000 SDC NOTES RECEIVABLE - RLC $10,000,000 ELIMINATE WWOS INTERCOMPANY NOTES AND INTEREST WITH SDC Q. WWOS ACCOUNTS PAYABLE $ 48,503 SDC ACCOUNTS RECEIVABLE $ 48,503 WWOS MANAGEMENT FEE PAYABLE $ 5,272 SDC COMMERCIAL A/R $ 5,272 ELIMINATE WWOS INTERCOMPANY A/R WITH SDC R. KABUTO CONTRIBUTED CAPITAL - SDC $ 8,853,122 KABUTO CONTRIBUTED CAPITAL - KABUTO $ 3,834,535 MINORITY INTEREST $ 3,834,535 SDC INVESTMENT IN KABUTO - CONTR CAPITAL $ 5,981,619 BALANCING PLUG $ 2,871,502 ELIMINATE SDC INVESTMENT IN KABUTO JV #3000 S. COMMERCIAL OPS CONTRIBUTED CAPITAL $80,522,808 COMMERCIAL EARNINGS - PRIOR $ 491,813 COMMERCIAL EARNINGS - CURRENT YEAR $ 3,604,982 SDC INVEST IN GEN COMMERCIAL OPS - EARNINGS $ 1,636,480 SDC INVEST IN GEN COMMERCIAL OPS - CONT CAPITAL $77,619,340 SDC INVESTMENT IN OUTER LIMITS - PURCHASE $ 1,822,515 SUNCOR DEVELOPMENT COMPANY CONSOLIDATING BALANCE SHEET DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES DEBIT CREDIT ----- ------ SDC INVESTMENT IN FIDDLE (SCOTTS) - CONT CAPITAL $ 2,012,593 SDC INVESTMENT IN FIDDLE (SCOTTS) - EARNINGS $ 413,484 SDC INVESTMENT IN FUNTASTICKS - CONT CAPITAL $ 2,043,745 SDC INVESTMENT IN FUNTASTICKS - EARNINGS $ 290,658 SDC INVESTMENT IN FIDDLE (TEMPE) - CONT CAPITAL $ 1,049,800 SDC INVESTMENT IN FIDDLE (TEMPE) - EARNINGS $ 573,717 SDC INVESTMENT IN PV MARKETPLACE - EARNINGS $ 1,406,129 SDC INVESTMENT IN PV PAVILIONS - EARNINGS $ 899,849 SDC INVESTMENT IN PV CROSSING - EARNINGS $ 311,587 SDC INVESTMENT IN METROCENTER - EARNINGS $ 253,727 SDC INVESTMENT IN REST PLACE - EARNINGS $ 65,725 SDC INVESTMENT IN LITCHFIELD OTHER - EARNINGS $ 73,203 SDC INVESTMENT IN AUTOPLEX - EARNINGS $ 574,137 SDC INVESTMENT IN TALAVI - EARNINGS $ 139,299 SDC INVESTMENT IN WWOS - EARNINGS $ 11,397 SDC INVESTMENT IN LP PROF. PLAZA - EARNINGS $ 18,428 SDC INVESTMENT IN APS PROPERTIES - EARNINGS $ 126,084 ELIMINATE SDC INVESTMENT IN COMMERCIAL OPERATIONS #2000 T. HIDDEN HILLS CONTRIBUTED CAPITAL $ 1,173,714 HIDDEN HILLS EARNINGS - PRIOR $ 1,567 HIDDEN HILLS EARNINGS - CURRENT YEAR $ 1,503 SDC INVESTMENT IN HIDDEN HILLS - EARNINGS $ 3,070 SDC INVESTMENT IN HIDDEN HILLS - CONT CAPITAL $ 1,173,907 ELIMINATE SDC INVESTMENT IN HIDDEN HILLS JV #3300 U. SDC INVESTMENT IN RANCHO VIEJO - EARNINGS $ 85,702 SDC INVESTMENT IN RANCHO VIEJO - CAPITAL $ 8,759,885 RANCHO VIEJO CONTRIBUTED CAPITAL $ 8,759,885 RANCHO VIEJO EARNINGS - PRIOR $ 23,942 RANCHO VIEJO EARNINGS - CURRENT YEAR $ 61,760 ELIMINATE SDC INVESTMENT IN RANCHO VIEJO JV #6600 V. PV CONTRIBUTED CAPITAL $157,595,695 PV EARNINGS - PRIOR $ 3,496,839 PV EARNINGS - CURRENT YEAR $ 6,128,499 SDC INVESTMENT IN PALM VALLEY - EARNINGS $ 9,625,558 SDC INVESTMENT IN PALM VALLEY - DEVELOP $157,595,695 ELIMINATE SDC INVESTMENT IN PALM VALLEY #5500 W. CORAL CANYON CONTRIBUTED CAPITAL $ 481,241 SDC INVESTMENT IN CORAL CANYON $ 481,241 ELIMINATE SDC INVESTMENT IN CORAL CANYON #3900 SunCor Development Company Consolidating Income Statement (Unaudited) For the Year Ending December 31, 1998
Account Description SunCor LPSCo Scts Mtn PVGC GHH - ------------------- ------ ----- -------- ---- --- Revenues Home Sales $ 0 $ 0 $ 0 $ 0 $50,228,047 Land Sales 50,859,043 0 10,017,886 0 0 Commercial Properties 5,143,994 0 0 2,113,400 0 Utility Sales 0 2,095,302 0 0 0 Management Fees 1,180,276 0 0 0 0 ----------- ---------- ----------- ---------- ----------- Total Operating Revenues 57,183,313 2,095,302 10,017,886 2,113,400 50,228,047 Operating Expenses Cost of Homes Sold (2,439,803) 0 0 0 43,395,872 Cost of Land Sold 40,202,747 0 5,042,867 0 0 Commercial Properties 5,552,147 0 0 202,461 0 Utility Expense 0 1,639,443 0 0 0 Land Project Costs 1,901,734 0 123,984 0 0 General & Administrative 10,213,245 0 146,953 1,493,611 5,402,670 Depreciation & Amortization 960,152 385,008 47 192,911 510,016 ----------- ---------- ----------- ---------- ----------- Total Operating Expenses 56,390,222 2,024,451 5,313,850 1,888,983 49,308,558 Net Operating Income/(Loss) 793,091 70,851 4,704,035 224,417 919,490 Other Income and Gains Equity in Joint Ventures 4,585,909 0 0 0 0 Interest Income 737,547 7,799 55,783 0 0 Other 0 0 0 0 180,203 ----------- ---------- ----------- ---------- ----------- Total Other Income and Gains 5,323,456 7,799 55,783 0 180,203 Interest Expense, Net Interest Expense 5,249,779 47,870 385 352,320 53,691 Less: Capitalized Interest (2,333,492) 0 0 0 0 ----------- ---------- ----------- ---------- ----------- Total Interest Expense, Net 2,916,287 47,870 385 352,320 53,691 Minority Interest 1,234,975 0 0 0 0 Income before Taxes 1,965,286 30,780 4,759,433 (127,903) 1,046,001 Income Taxes (37,200,000) 0 0 0 0 ----------- ---------- ----------- ---------- ----------- NET INCOME/(LOSS) $39,165,286 $ 30,780 $ 4,759,433 ($127,903) $ 1,046,001 =========== ========== =========== ========== =========== Hidden Rancho Consolidated Account Description WWOS Hills Viejo Income - ------------------- ---- ----- ----- ------ Revenues Home Sales $ 0 $ 0 $ 0 $ 50,228,047 Land Sales 0 0 634,992 61,511,921 Commercial Properties 3,095,236 0 0 10,352,630 Utility Sales 0 0 0 2,095,302 Management Fees 0 0 0 1,180,276 ---------- -------- ----------- ------------ Total Operating Revenues 3,095,236 0 634,992 125,368,176 Operating Expenses Cost of Homes Sold 0 0 0 40,956,069 Cost of Land Sold 0 0 478,121 45,723,735 Commercial Properties 1,401,090 0 0 7,155,698 Utility Expense 0 0 0 1,639,443 Land Project Costs 0 947 97,682 2,124,347 General & Administrative 0 556 125,340 17,382,374 Depreciation & Amortization 845,355 0 2,306 2,895,795 ---------- -------- ----------- ------------ Total Operating Expenses 2,246,445 1,503 703,449 117,877,461 Net Operating Income/(Loss) 848,791 (1,503) (68,457) 7,490,715 Other Income and Gains Equity in Joint Ventures 0 0 0 4,585,909 Interest Income 4,536 0 6,698 812,363 Other 0 0 0 180,203 ---------- -------- ----------- ------------ Total Other Income and Gains 4,536 0 6,698 5,578,475 Interest Expense, Net Interest Expense 943,670 0 0 6,647,715 Less: Capitalized Interest 0 0 0 (2,333,492) ---------- -------- ----------- ------------ Total Interest Expense, Net 943,670 0 0 4,314,223 Minority Interest 0 0 0 1,234,975 Income before Taxes (90,343) (1,503) (61,760) 7,519,992 Income Taxes 0 0 0 (37,200,000) ---------- -------- ----------- ------------ NET INCOME/(LOSS) ($90,343) ($1,503) ($61,760) $ 44,719,992 ========== ======== =========== ============
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