Changes in Equity

6 Months Ended

Jun. 30, 2011

Changes in Equity

Changes in Equity

9. Changes in Equity

The following tables show Pinnacle West’s changes in shareholders’ equity and changes in equity of noncontrolling interests for the three and six months ended June 30, 2011 and 2010 (dollars in thousands):

	Three Months Ended June 30, 2011									Three Months Ended June 30, 2010
	Common Shareholders			Noncontrolling Interests			Total			Common Shareholders			Noncontrolling Interests			Total
Beginning balance, April 1	$	3,631,411		$	97,360		$	3,728,771		$	3,213,933		$	116,067		$	3,330,000
Net income	86,685			7,154			93,839			114,797			4,769			119,566
Other comprehensive income (loss):
Net unrealized losses on derivative instruments (a)	(16,324		)	—			(16,324		)	(8,588		)	—			(8,588		)
Net reclassification of realized losses to income (b)	25,287			—			25,287			29,143			—			29,143
Reclassification of pension and other postretirement benefits to income	1,046			—			1,046			1,362			—			1,362
Net unrealized gains (losses) related to pension and other postretirement benefits	974			—			974			(6,933		)	—			(6,933		)
Net income tax expense related to items of other comprehensive income (loss)	(4,337		)	—			(4,337		)	(5,914		)	—			(5,914		)
Total other comprehensive income	6,646			—			6,646			9,070			—			9,070
Total comprehensive income	93,331			7,154			100,485			123,867			4,769			128,636
Issuance of capital stock	3,505			—			3,505			255,480			—			255,480
Other (primarily stock compensation)	(33		)	—			(33		)	140			—			140
Dividends on common stock	(114,509		)	—			(114,509		)	(113,872		)	—			(113,872		)
Net capital activities by noncontrolling interests	—			(2,609		)	(2,609		)	—			(7,381		)	(7,381		)
Ending balance, June 30	$	3,613,705		$	101,905		$	3,715,610		$	3,479,548		$	113,455		$	3,593,003

	Six Months Ended June 30, 2011									Six Months Ended June 30, 2010
	Common Shareholders			Noncontrolling Interests			Total			Common Shareholders			Noncontrolling Interests			Total
Beginning balance, January 1	$	3,683,327		$	91,899		$	3,775,226		$	3,316,109		$	111,895		$	3,428,004
Net income	71,550			12,615			84,165			108,783			9,886			118,669
Other comprehensive income (loss):
Net unrealized losses on derivative instruments (a)	(15,335		)	—			(15,335		)	(100,255		)	—			(100,255		)
Net reclassification of realized losses to income (b)	40,133			—			40,133			42,329			—			42,329
Reclassification of pension and other postretirement benefits to income	2,478			—			2,478			2,755			—			2,755
Net unrealized gains (losses) related to pension and other postretirement benefits	974			—			974			(6,933		)	—			(6,933		)
Net income tax benefit related to items of other comprehensive income (loss)	(11,158		)	—			(11,158		)	24,511			—			24,511
Total other comprehensive income (loss)	17,092			—			17,092			(37,593		)	—			(37,593		)
Total comprehensive income	88,642			12,615			101,257			71,190			9,886			81,076
Issuance of capital stock	17,065			—			17,065			258,160			—			258,160
Purchase of treasury stock, net of reissuances	(3,530		)	—			(3,530		)	1,078			—			1,078
Other (primarily stock compensation)	(181		)	—			(181		)	142			—			142
Dividends on common stock	(171,618		)	—			(171,618		)	(167,131		)	—			(167,131		)
Net capital activities by noncontrolling interests	—			(2,609		)	(2,609		)	—			(8,326		)	(8,326		)
Ending balance, June 30	$	3,613,705		$	101,905		$	3,715,610		$	3,479,548		$	113,455		$	3,593,003

(a) These amounts primarily include unrealized losses on contracts used to hedge our forecasted electricity and natural gas requirements to serve Native Load.  These changes are primarily due to changes in forward natural gas prices and wholesale electricity prices.

(b) These amounts primarily include the reclassification of unrealized losses to realized losses for contracted commodities delivered during the period.