APS 2012 Annual Report Download - page 167

Download and view the complete annual report

Please find page 167 of the 2012 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.

Page out of 256

  • 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
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256

PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
142
Options Shares
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value (dollars
in thousands)
Outstanding at
January 1, 2012
22,958
$ 34.75
Exercised
15,033
36.05
Forfeited or expired
--
--
Outstanding at
December 31, 2012
7,925
32.29
.21
$ 148
Exercisable at
December 31, 2012
7,925
32.29
.21
$ 148
Cash received from options exercised under our share-based payment arrangements was $0.5
million for 2012, $1.8 million for 2011, and $4.6 million for 2010. The tax benefit realized for the
tax deductions from option exercises of the share-based payment arrangements were immaterial for
all years.
The intrinsic value of options exercised was immaterial for all years.
As of December 31, 2012, there was $17 million of total unrecognized compensation cost
related to nonvested share-based compensation arrangements granted under the plans. That cost is
expected to be recognized over a weighted-average period of 2.0 years. The total fair value of shares
vested during 2012 was $19 million, 2011 was $14 million, and 2010 was $11 million.
The compensation cost that has been charged against Pinnacle West’s income for share-based
compensation plans was $32 million in 2012, $23 million in 2011, and $15 million in 2010. The
compensation cost that Pinnacle West has capitalized is immaterial for all years. Pinnacle West’s
total income tax benefit recognized in the Consolidated Statements of Income for share-based
compensation arrangements was $13 million in 2012, $9 million in 2011, and $6 million in 2010.
APS’s share of compensation cost that has been charged against income was $32 million in 2012,
$22 million in 2011, and $15 million in 2010.
Pinnacle West’s current policy is to issue new shares to satisfy share requirements for stock
compensation plans and it does not expect to repurchase any shares except to satisfy tax withholding
obligations upon the vesting of restricted stock units and performance shares.
17. Business Segments
Pinnacle West’s reportable business segment is our regulated electricity segment, which
consists of traditional regulated retail and wholesale electricity businesses (primarily electricity
service to Native Load customers) and related activities and includes electricity generation,
transmission and distribution.
Financial data for 2012, 2011 and 2010 is provided as follows (dollars in millions):