Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations

Discontinued Operations

21. Discontinued Operations

SunCor — In February 2012, SunCor filed for protection under the United States Bankruptcy Code to complete an orderly liquidation of its business.  We do not expect SunCor’s bankruptcy to have a material impact on Pinnacle West’s financial position, results of operations, or cash flows.

APSES — On August 19, 2011, Pinnacle West sold its investment in APSES.  The sale resulted in an after-tax gain from discontinued operations of approximately $10 million.  In June 2010, APSES sold its district cooling business.  As a result of that sale, we recorded an after-tax gain from discontinued operations of approximately $25 million.  Prior period income statement amounts related to these sales and the associated revenues and costs are reflected in discontinued operations.

The following table provides revenue, income (loss) before income taxes and income (loss) after taxes classified as discontinued operations in Pinnacle West’s Consolidated Statements of Income for the years ended December 31, 2012, 2011 and 2010 (dollars in millions):

	2012			2011			2010
Revenue:
SunCor	$	—		$	1		$	30
APSES	—			36			127
Total revenue	$	—		$	37		$	157
Income (loss) before taxes:
SunCor	$	(10	)	$	(2	)	$	(10	)
APSES	—			21			51
Total income (loss) before taxes	$	(10	)	$	19		$	41
Income (loss) after taxes:
SunCor	$	(6	)	$	(1	)	$	(6	)
APSES	—			12			31
Total income (loss) after taxes	$	(6	)	$	11		$	25