APS 2015 Annual Report Download - page 64

Table of Contents
operating cash flows included income tax refunds of approximately $86 million in 2014 compared with payments of $8 million in
2013.
Retirement plans and other postretirement benefits. Pinnacle West sponsors a qualified defined benefit pension plan and a non-
qualified supplemental excess benefit retirement plan for the employees of Pinnacle West and our subsidiaries. The requirements of the
Employee Retirement Income Security Act of 1974 ("ERISA") require us to contribute a minimum amount to the qualified plan. We
contribute at least the minimum amount required under ERISA regulations, but no more than the maximum tax-deductible amount. The
minimum required funding takes into consideration the value of plan assets and our pension benefit obligations. Under ERISA, the
qualified pension plan was 116% funded as of January 1, 2015 and is estimated to be approximately 116% funded as of January 1,
2016. Under GAAP, the qualified pension plan was 89% funded as of January 1, 2015 and is estimated to be approximately 88%
funded as of January 1, 2016. See Note 7 for additional details. The assets in the plan are comprised of fixed-income, equity, real estate,
and short-term investments. Future year contribution amounts are dependent on plan asset performance and plan actuarial
assumptions. We made contributions to our pension plan totaling $100 million in 2015, $175 million in 2014, and $141 million in
2013. The minimum required contributions for the pension plan are zero for the next three years. We expect to make voluntary
contributions up to a total of $300 million during the 2016-2018 period. With regard to our contributions to our other postretirement
benefit plans, we made a contribution of approximately $1 million in 2015, $1 million in 2014, and $14 million in 2013. We expect to
make contributions of approximately $1 million in each of the next three years to our other postretirement benefit plans.
Investing Cash Flows
2015 Compared with 2014. Pinnacle West’s consolidated net cash used for investing activities was $1,066 million in 2015,
compared to $923 million in 2014, an increase of $143 million in net cash used primarily related to increased capital expenditures.
2014 Compared with 2013. Pinnacle West’s consolidated net cash used for investing activities was $923 million in 2014,
compared to $1,009 million in 2013, a decrease of $86 million in net cash used. The decrease in net cash used for investing activities is
primarily related to APS's purchase of SCE’s interest in Units 4 and 5 of Four Corners of approximately $209 million in 2013, partially
offset by an increase of approximately $123 million in other capital expenditures.
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