APS 2015 Annual Report Download - page 76
Download and view the complete annual report
Please find page 76 of the 2015 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.-
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
-
257
-
258
-
259
-
260
-
261
-
262
-
263
-
264
 |
 |
Table of Contents
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO FINANCIAL STATEMENTS AND
FINANCIAL STATEMENT SCHEDULES
Page
Management’s Report on Internal Control over Financial Reporting (Pinnacle West Capital Corporation) 74
Report of Independent Registered Public Accounting Firm 75
Pinnacle West Consolidated Statements of Income for 2015, 2014 and 2013 77
Pinnacle West Consolidated Statements of Comprehensive Income for 2015, 2014, and 2013 78
Pinnacle West Consolidated Balance Sheets as of December 31, 2015 and 2014 79
Pinnacle West Consolidated Statements of Cash Flows for 2015, 2014 and 2013 81
Pinnacle West Consolidated Statements of Changes in Equity for 2015, 2014 and 2013 82
Management’s Report on Internal Control over Financial Reporting (Arizona Public Service Company) 83
Report of Independent Registered Public Accounting Firm 84
APS Consolidated Statements of Income for 2015, 2014 and 2013 86
APS Consolidated Statements of Comprehensive Income for 2015, 2014 and 2013 87
APS Consolidated Balance Sheets as of December 31, 2015 and 2014 88
APS Consolidated Statements of Cash Flows for 2015, 2014 and 2013 90
APS Consolidated Statements of Changes in Equity for 2015, 2014 and 2013 91
Combined Notes to Consolidated Financial Statements 92
Note 1. Summary of Significant Accounting Policies 92
Note 2. New Accounting Standards 98
Note 3. Regulatory Matters 99
Note 4. Income Taxes 107
Note 5. Lines of Credit and Short-Term Borrowings 112
Note 6. Long-Term Debt and Liquidity Matters 113
Note 7. Retirement Plans and Other Postretirement Benefits 116
Note 8. Leases 125
Note 9. Jointly-Owned Facilities 126
Note 10. Commitments and Contingencies 126
Note 11. Asset Retirement Obligations 135
Note 12. Selected Quarterly Financial Data (Unaudited) 136
Note 13. Fair Value Measurements 137
Note 14. Earnings Per Share 144
Note 15. Stock-Based Compensation 144
Note 16. Derivative Accounting 147
Note 17. Other Income and Other Expense 152
Note 18. Palo Verde Sale Leaseback Variable Interest Entities 152
Note 19. Nuclear Decommissioning Trusts 154
Note 20. Changes in Accumulated Other Comprehensive Loss 155
See Note 12 for the selected quarterly financial data (unaudited) required to be presented in this Item.
73