APS 2013 Annual Report Download - page 73

Table of Contents
over the long-term, and the assumed healthcare cost trend rates. We review these assumptions on an annual basis and adjust them as necessary.
The following chart reflects the sensitivities that a change in certain actuarial assumptions would have had on the December 31, 2013 reported
pension liability on the Consolidated Balance Sheets and our 2013 reported pension expense, after consideration of amounts capitalized or billed to electric
plant participants, on Pinnacle West’s Consolidated Statements of Income (dollars in millions):
Increase (Decrease)
Actuarial Assumption (a)
Impact on
Pension
Liability
Impact on
Pension
Expense
Discount rate:
Increase 1% $(280) $ (14)
Decrease 1% 337 16
Expected long-term rate of return on plan assets:
Increase 1% —(10)
Decrease 1% —10
(a) Each fluctuation assumes that the other assumptions of the calculation are held constant while the rates are changed by one percentage point.
The following chart reflects the sensitivities that a change in certain actuarial assumptions would have had on the December 31, 2013 reported other
postretirement benefit obligation on the Consolidated Balance Sheets and our 2013 reported other postretirement benefit expense, after consideration of amounts
capitalized or billed to electric plant participants, on Pinnacle West’s Consolidated Statements of Income (dollars in millions):
Increase (Decrease)
Actuarial Assumption (a)
Impact on Other
Postretirement Benefit
Obligation
Impact on Other
Postretirement
Benefit Expense
Discount rate:
Increase 1% $(120) $ (7)
Decrease 1% 151 9
Healthcare cost trend rate (b):
Increase 1% 149 13
Decrease 1% (120)(10)
Expected long-term rate of return on plan assets – pretax:
Increase 1% —(3)
Decrease 1% —3
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