SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

	Year Ended December 31,
	2020		2019		2018
Operating expenses	$	7,901	$	12,451	$	53,844
Other
Equity in earnings of subsidiaries	566,147		562,946		569,249
Other expense	(4,586)		(3,957)		(3,202)
Total	561,561		558,989		566,047
Interest expense	14,021		15,069		12,074
Income before income taxes	539,639		531,469		500,129
Income tax benefit	(10,920)		(6,851)		(10,918)
Net income attributable to common shareholders	550,559		538,320		511,047
Other comprehensive income (loss) — attributable to common shareholders	(5,700)		(9,388)		5,846
Total comprehensive income — attributable to common shareholders	$	544,859	$	528,932	$	516,893

See Combined Notes to Consolidated Financial Statements.

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED BALANCE SHEETS

(dollars in thousands)

 

	December 31,
	2020		2019
ASSETS
Current assets
Cash and cash equivalents	$	19	$	19
Accounts receivable	123,980		104,640
Income tax receivable	14,719		15,905
Other current assets	298		401
Total current assets	139,016		120,965
Investments and other assets
Investments in subsidiaries	6,400,339		6,067,957
Deferred income taxes	7,589		40,757
Other assets	52,595		50,139
Total investments and other assets	6,460,523		6,158,853
Total Assets	$	6,599,539	$	6,279,818
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	5,669	$	7,634
Accrued taxes	16,998		8,573
Common dividends payable	93,531		87,982
Short-term borrowings	169,000		114,675
Current maturities of long-term debt	—		450,000
Operating lease liabilities	90		81
Other current liabilities	15,306		15,126
Total current liabilities	300,594		684,071
Long-term debt less current maturities (Note 7)	496,321		(575)
Pension liabilities	17,541		17,942
Operating lease liabilities	1,683		1,780
Other	30,607		23,412
Total deferred credits and other	49,831		43,134
COMMITMENTS AND CONTINGENCIES (SEE NOTES)
Common stock equity
Common stock	2,671,193		2,650,134
Accumulated other comprehensive loss	(62,796)		(57,096)
Retained earnings	3,025,106		2,837,610
Total Pinnacle West Shareholders’ equity	5,633,503		5,430,648
Noncontrolling interests	119,290		122,540
Total Equity	5,752,793		5,553,188
Total Liabilities and Equity	$	6,599,539	$	6,279,818

See Combined Notes to Consolidated Financial Statements.

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

(dollars in thousands)

	Year Ended December 31,
	2020		2019		2018
Cash flows from operating activities
Net income	$	550,559	$	538,320	$	511,047
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries — net	(566,147)		(562,946)		(569,249)
Depreciation and amortization	76		76		76
Deferred income taxes	33,007		(35,831)		49,535
Accounts receivable	(7,903)		182		(7,881)
Accounts payable	(1,964)		(2,129)		1,967
Accrued taxes and income tax receivables — net	9,610		16,400		(13,535)
Dividends received from subsidiaries	357,500		336,300		316,000
Other	20,163		(1,300)		31,807
Net cash flow provided by operating activities	394,901		289,072		319,767
Cash flows from investing activities
Investments in subsidiaries	(137,881)		1,557		(142,796)
Repayments of loans from subsidiaries	932		4,190		6,477
Advances of loans to subsidiaries	(7,261)		(4,165)		(500)
Net cash flow provided by (used for) investing activities	(144,210)		1,582		(136,819)
Cash flows from financing activities
Issuance of long-term debt	496,950		—		150,000
Short-term debt borrowings under revolving credit facility	211,690		49,000		20,000
Short-term debt repayments under revolving credit facility	(230,690)		(65,000)		(32,000)
Commercial paper — net	73,325		54,275		(7,000)
Dividends paid on common stock	(350,577)		(329,643)		(308,892)
Repayment of long-term debt	(450,000)		—		—
Common stock equity issuance — net of purchases	(1,389)		692		(5,055)
Other	—		—		(1)
Net cash flow used for financing activities	(250,691)		(290,676)		(182,948)
Net decrease in cash and cash equivalents	—		(22)		—
Cash and cash equivalents at beginning of year	19		41		41
Cash and cash equivalents at end of year	$	19	$	19	$	41

See Combined Notes to Consolidated Financial Statements.

PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY

NOTES TO FINANCIAL STATEMENTS OF HOLDING COMPANY

The Combined Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Pinnacle West Capital Corporation Holding Company Financial Statements.

The Pinnacle West Capital Corporation Holding Company Financial Statements have been prepared to present the financial position, results of operations and cash flows of Pinnacle West Capital Corporation on a stand-alone basis as a holding company. Investments in subsidiaries are accounted for using the equity method.