APS 2015 Annual Report Download - page 157

Table of Contents
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Other Income and Other Expense
The following table provides detail of Pinnacle West's Consolidated other income and other expense for 2015, 2014 and 2013
(dollars in thousands):
2015
2014
2013
Other income:
Interest income $ 493
$ 1,010
$ 1,629
Debt return on the purchase of Four Corners units 4 & 5 —
8,386
—
Miscellaneous 128
212
75
Total other income $ 621
$ 9,608
$ 1,704
Other expense:
Non-operating costs $ (11,292)
$ (9,657)
$ (8,207)
Investment loss — net (2,080)
(9,426)
(3,711)
Miscellaneous (4,451)
(2,663)
(4,106)
Total other expense $ (17,823)
$ (21,746)
$ (16,024)
Other Income and Other Expense - APS
The following table provides detail of APS’s other income and other expense for 2015, 2014 and 2013 (dollars in thousands):
2015
2014
2013
Other income:
Interest income $ 163
$ 689
$ 1,234
Debt return on the purchase of Four Corners units 4 & 5 —
8,386
—
Gain on disposition of property 716
1,197
1,024
Miscellaneous 1,955
1,023
1,638
Total other income $ 2,834
$ 11,295
$ 3,896
Other expense:
Non-operating costs (a) $ (11,648)
$ (10,397)
$ (9,626)
Loss on disposition of property (2,219)
(615)
(4,992)
Miscellaneous (5,152)
(2,391)
(5,831)
Total other expense $ (19,019)
$ (13,403)
$ (20,449)
(a) As defined by FERC, includes non-operating utility income and expense (items excluded from utility rate recovery).
18. Palo Verde Sale Leaseback Variable Interest Entities
In 1986, APS entered into agreements with three separate VIE lessor trust entities in order to sell and lease back interests in Palo
Verde Unit 2 and related common facilities. The original lease was scheduled to end on December 31, 2015; however, the lease
agreements include fixed rate renewal options which APS exercised on July 7, 2014. As a result, APS will retain the assets through
2023 under one lease and 2033 under the other two leases. APS will be required to make payments relating to these leases of
approximately $23 million annually for the period 2016 through 2023, and about $16 million annually for the period 2024 through
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