APS 2015 Annual Report Download - page 130

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Table of Contents
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
future contributions. Pinnacle West recorded expenses for this plan of approximately $9 million for 2015, $9 million for 2014, and $9
million for 2013.
8. Leases
We lease certain vehicles, land, buildings, equipment and miscellaneous other items through operating rental agreements with
varying terms, provisions and expiration dates.
Total lease expense recognized in the Consolidated Statements of Income was $17 million in 2015, $18 million in 2014, and
$18 million in 2013. APS’s lease expense was $14 million in 2015, $15 million in 2014, and $15 million in 2013.
Estimated future minimum lease payments for Pinnacle West’s and APS’s operating leases, excluding purchased power
agreements, are approximately as follows (dollars in thousands):
Year
Pinnacle West
Consolidated
APS
2016
$ 9,182
$ 8,797
2017
8,557
8,317
2018
7,045
6,880
2019
6,121
5,961
2020
4,835
4,680
Thereafter
61,251
61,101
Total future lease commitments
$ 96,991
$ 95,736
In 1986, APS entered into agreements with three separate lessor trust entities in order to sell and lease back interests in Palo
Verde Unit 2 and related common facilities. These lessor trust entities have been deemed VIEs for which APS is the primary
beneficiary. As the primary beneficiary, APS consolidated these lessor trust entities. The impacts of these sale leaseback transactions
are excluded from our lease disclosures as lease accounting is eliminated upon consolidation. See Note 18 for a discussion of VIEs.
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