EX-99.10 12 p71793exv99w10.htm EXHIBIT 99.10 exv99w10
 

Exhibit 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
                                 
    THREE MONTHS ENDED        
    DECEMBER 31,     Increase (Decrease)  
    2005     2004     Pretax     After Tax  
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 82,787     $ 101,806     $ (19,019 )   $ (11,596 )
Plus:
                                
Operations and maintenance
     168,706       157,732       10,974       6,691  
Real estate segment operations
     87,811       108,634       (20,823 )     (12,696 )
Depreciation and amortization
     85,622       96,655       (11,033 )     (6,727 )
Taxes other than income taxes
     28,512       27,064       1,448       883  
Other expenses
     12,536       8,215       4,321       2,635  
Regulatory disallowance
     (4,655 )     —       (4,655 )     (2,838 )
Marketing and trading segment fuel and purchased power
     77,744       88,151       (10,407 )     (6,345 )
Less:
                                
Real estate segment revenues
     105,081       163,553       (58,472 )     (35,650 )
Other revenues
     14,458       9,912       4,546       2,772  
Marketing and trading segment revenues
     84,098       110,521       (26,423 )     (16,110 )
 
                        
Regulated electricity segment gross margin
   $ 335,426     $ 304,271     $ 31,155     $ 18,995  
 
                        
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 82,787     $ 101,806     $ (19,019 )   $ (11,596 )
Plus:
                                
Operations and maintenance
     168,706       157,732       10,974       6,691  
Real estate segment operations
     87,811       108,634       (20,823 )     (12,696 )
Depreciation and amortization
     85,622       96,655       (11,033 )     (6,727 )
Taxes other than income taxes
     28,512       27,064       1,448       883  
Other expenses
     12,536       8,215       4,321       2,635  
Regulatory disallowance
     (4,655 )     —       (4,655 )     (2,838 )
Regulated electricity segment fuel and purchased power
     152,609       125,024       27,585       16,819  
Less:
                                
Real estate segment revenues
     105,081       163,553       (58,472 )     (35,650 )
Other revenues
     14,458       9,912       4,546       2,772  
Regulated electricity segment revenues
     488,035       429,295       58,740       35,814  
 
                        
Marketing and trading segment gross margin
   $ 6,354     $ 22,370     $ (16,016 )   $ (9,765 )
 
                        

 

 

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
                                 
    TWELVE MONTHS ENDED        
    DECEMBER 31,     Increase (Decrease)  
    2005     2004     Pretax     After Tax  
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 515,289     $ 517,965     $ (2,676 )   $ (1,632 )
Plus:
                                
Operations and maintenance
     635,827       592,320       43,507       26,526  
Real estate segment operations
     278,366       284,194       (5,828 )     (3,553 )
Depreciation and amortization
     347,652       391,597       (43,945 )     (26,793 )
Taxes other than income taxes
     132,040       120,722       11,318       6,901  
Other expenses
     51,987       34,108       17,879       10,901  
Regulatory disallowance
     138,562       —       138,562       84,481  
Marketing and trading segment fuel and purchased power
     293,091       320,667       (27,576 )     (16,813 )
Less:
                                
Real estate segment revenues
     338,031       350,315       (12,284 )     (7,490 )
Other revenues
     61,221       42,816       18,405       11,222  
Marketing and trading segment revenues
     351,558       400,628       (49,070 )     (29,918 )
 
                        
Regulated electricity segment gross margin
   $ 1,642,004     $ 1,467,814     $ 174,190     $ 106,204  
 
                        
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
                                
Operating Income (closest GAAP measure)
   $ 515,289     $ 517,965     $ (2,676 )   $ (1,632 )
Plus:
                                
Operations and maintenance
     635,827       592,320       43,507       26,526  
Real estate segment operations
     278,366       284,194       (5,828 )     (3,553 )
Depreciation and amortization
     347,652       391,597       (43,945 )     (26,793 )
Taxes other than income taxes
     132,040       120,722       11,318       6,901  
Other expenses
     51,987       34,108       17,879       10,901  
Regulatory disallowance
     138,562       —       138,562       84,481  
Regulated electricity segment fuel and purchased power
     595,141       567,433       27,708       16,894  
Less:
                                
Real estate segment revenues
     338,031       350,315       (12,284 )     (7,490 )
Other revenues
     61,221       42,816       18,405       11,222  
Regulated electricity segment revenues
     2,237,145       2,035,247       201,898       123,097  
 
                        
Marketing and trading segment gross margin
   $ 58,467     $ 79,961     $ (21,494 )   $ (13,104 )