APS 2011 Annual Report Download - page 164
Download and view the complete annual report
Please find page 164 of the 2011 APS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154 -
155 -
156 -
157 -
158 -
159 -
160 -
161 -
162 -
163 -
164 -
165 -
166 -
167 -
168 -
169 -
170 -
171 -
172 -
173 -
174 -
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
 |
 |
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
139
The following table is a summary of the performance shares granted and the weighted
average fair value for the years ended 2011, 2010 and 2009:
2011 2010 2009
Units granted 175,072 178,722 240,624
Grant date fair value (a) $41.71 $37.57 $30.19
(a) weighted average grant date fair value
The following table is a summary of the status of performance shares, as of December 31,
2011 and changes during the year:
Nonvested shares Shares
Weighted-Average
Grant-Date Fair Value
Nonvested at January 1, 2011 395,312 $ 33.44
Granted 175,072 41.71
Vested 218,310 30.14
Forfeited 4,128 36.09
Nonvested at December 31, 2011 347,946 39.64
Retention Units
The retention unit awards have fully vested and settled on January 4, 2010; for any employee
that was eligible to retire before that date, the employee’s retention units vested by retirement date
and the compensation expense was recognized by retirement eligibility. Retention unit awards were
granted to key employees in 2006 and 2007. Each retention unit award represented the right to
receive a cash payment equal to the fair market value of one share of Pinnacle West’s common stock,
determined on pre-established valuation dates. Each retention unit award vested and settled in equal
annual installments over a four-year period. In addition, the employee received a cash payment equal
to the amount of dividends that the employee would have received if the employee had owned the
stock from the date of grant to the date of payment plus interest. As this award was accounted for as
a liability award, compensation costs, initially measured based on Pinnacle West’s stock price on the
grant date, were remeasured at each balance sheet date, using Pinnacle West’s closing stock price.
The amount of cash to settle the payment on the first business day of 2010 was $1.3 million,
and 2009 was $1.1 million.
Incentive Shares
On January 21, 2009, the Human Resources Committee approved under the 2007 Plan
payment of 2008 incentive awards to officers in the form of a Pinnacle West common stock grant. A
total of 138,756 shares were issued for this stock grant with a grant date fair value of $32.58 per
share. The stock grant was included in stock compensation expense in 2008.