APS 2012 Annual Report Download - page 140
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PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
115
The following table shows the details related to accumulated other comprehensive loss as of
December 31, 2012 and 2011 (dollars in thousands):
Pension
Other Benefits
2012
2011
2012
2011
Net actuarial loss
$ 644,239
$ 724,605
$ 238,862
$ 400,892
Prior service cost (credit)
3,169
4,312
(475)
(655)
Transition obligation
--
--
--
452
APS’s portion recorded as a regulatory
asset
(550,471)
(632,099)
(230,020)
(390,521)
Income tax benefit
(38,303)
(38,243)
(2,585)
(3,296)
Accumulated other comprehensive loss
$ 58,634
$ 58,575
$ 5,782
$ 6,872
The following table shows the estimated amounts that will be amortized from accumulated other
comprehensive loss and regulatory assets into net periodic benefit cost in 2012 (dollars in thousands):
Pension
Other
Benefits
Net actuarial loss
$ 37,574
$ 12,236
Prior service cost (credit)
1,097
(179)
Total amounts estimated to be amortized from
accumulated other comprehensive loss and
regulatory assets in 2013 $ 38,671
$ 12,057
The following table shows the weighted-average assumptions used for both the pension and
other benefits to determine benefit obligations and net periodic benefit costs:
Benefit Obligations
As of December 31,
Benefit Costs
For the Years Ended December 31,
2012
2011
2012
2011
2010
Discount rate-pension
4.01%
4.42%
4.42%
5.31%
5.90%
Discount rate-other benefits
4.20%
4.59%
4.59%
5.49%
6.00%
Rate of compensation
increase
4.00%
4.00%
4.00%
4.00%
4.00%
Expected long-term return
on plan assets
N/A
N/A
7.75%
7.75%
8.25%
Initial health care cost trend
rate
7.50%
7.50%
7.50%
8.00%
8.00%
Ultimate health care cost
trend rate
5.00%
5.00%
5.00%
5.00%
5.00%
Number of years to ultimate
trend rate
4
4
4
4
4