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Previous: C FUNDS GROUP INC, 485BPOS, 1997-02-28 |
Next: SMITH BARNEY INCOME FUNDS, NSAR-B, 1997-02-28 |
Adopted November 9, 1939 File No. 69-306
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
Statement by Holding Company
Claiming Exemption under Rule U-2
from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
Pinnacle West Capital Corporation
------------------------------------------------
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to
Rule 2, its statement claiming exemption as a holding company from the
provisions of the Public Utility Holding Company Act of 1935, and
submits the following information:
<PAGE>
1. Name, state of organization, location and nature of business of
Claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which Claimant directly
or indirectly holds an interest.
Pinnacle West Capital Corporation ("Claimant"), having been
incorporated on February 20, 1985 under the laws of the State of Arizona, and
having its principal executive offices at 400 East Van Buren, Suite 700,
Phoenix, Arizona 85004, was organized principally to acquire and hold securities
of other corporations for investment purposes. Claimant currently holds stock in
the following subsidiaries:
a. Arizona Public Service Company ("APS" or the "Company"), is engaged
principally in serving electricity in the State of Arizona.
Incorporated in 1920 under the laws of the State of Arizona and having
its principal executive offices at 400 North Fifth Street, Phoenix,
Arizona 85004, APS became a subsidiary of the Claimant pursuant to a
corporate restructuring plan approved by the Company's shareholders on
April 18, 1985.
(1) AXIOM Power Solutions, Inc. ("AXIOM") -- an Arizona
corporation having been incorporated on October 29, 1996 and
having its principal executive offices at 400 E. Van Buren,
Phoenix, Arizona 85004, was organized primarily to sell
security and energy management products and services. AXIOM is
a wholly-owned subsidiary of APS.
(2) Bixco, Inc. ("Bixco") -- an Arizona corporation having
been incorporated on June 4, 1971 and having its principal
executive offices at 400 North Fifth Street, Phoenix, Arizona
85004, was organized primarily to conduct exploration
activities for energy resources and other valuable minerals.
Subsequent to the sale of its oil and natural gas properties
in 1981, Bixco has been inactive. Bixco is a wholly-owned
subsidiary of APS.
b. SunCor Development Company ("SunCor") -- an Arizona
corporation having been incorporated on June 30, 1965 and having its
principal executive offices at 3838 North Central Avenue, Suite 1500,
Phoenix, Arizona 85012, is a wholly-owned subsidiary of Claimant
engaged primarily in the owning, holding and development of real
property.
2
<PAGE>
(1) SunCor Resort & Golf Management, Inc. ("Resort & Golf
Management") (previously named "SunCor Resort Management,
Inc." and "SunCor Farms, Inc.") -- an Arizona corporation
having been incorporated on December 31, 1986 and having its
principal executive offices at 3838 North Central Avenue,
Suite 1500, Phoenix, Arizona 85012 operates and manages hotel,
golf, food and beverage for the Wigwam Resort and Country
Club, Sedona Golf Resort, SunRidge Canyon Golf Club, Real del
Mar Golf Club, and Palm Valley Golf Club. Resort & Golf
Management is a wholly-owned subsidiary of SunCor.
(2) Litchfield Park Service Company ("LPSCO") -- an Arizona
corporation having been incorporated on September 21, 1954 and
having its principal executive offices at 501 East Plaza
Circle, Suite B, Litchfield Park, Arizona 85340, is a
regulated public utility engaged in providing water and sewer
services to commercial and residential customers. LPSCO became
a wholly-owned subsidiary of SunCor on December 31, 1986.
(3) SunCor Homes, Inc. ("SunCor Homes") -- (previously named
"LGR, Inc." and "WGP Realty, Inc.") an Arizona corporation
having been incorporated on May 14, 1986 and having its
principal executive offices at 3838 North Central Avenue,
Suite 1500, Phoenix, Arizona 85012, was organized to provide
brokerage and realty services in the sale of commercial and
residential real property. SunCor Homes is a wholly-owned
subsidiary of SunCor.
(i) Golden Heritage Construction, Inc. ("Golden
Heritage") -- an Arizona corporation having been
incorporated on December 30, 1993 and having its
principal executive offices at 7975 North Hayden Rd.
Suite D-280, Scottsdale, Arizona 85258, was organized
to serve as a general residential contractor. Golden
Heritage became a wholly-owned subsidiary of SunCor
Homes, Inc. on January 1, 1996.
(4) SCM, Inc. ("SCM") -- an Arizona corporation having been
incorporated on May 14, 1991 and having its principal
executive offices at 3838 North Central Avenue,
3
<PAGE>
Suite 1500, Phoenix, Arizona 85012, was organized to
participate in real estate joint ventures and other real
estate related activities. SCM is a wholly-owned subsidiary of
SunCor.
(5) Golf de Mexico, S.A. DE C.V. ("Golf de Mexico") -- a
Mexican variable capital corporation having been incorporated
on February 8, 1992 in Tijuana, Baja California, Mexico, and
having its principal executive offices at 3838 North Central
Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to
operate and manage the Real del Mar Golf Course in Mexico.
(6) SunCor Realty & Management Company ("SunCor Realty") --
(previously named Russell Ranch Development Company) an
Arizona corporation having been incorporated on April 1, 1994
and having its principal executive offices at 3838 North
Central Avenue, Suite 1500, Phoenix, Arizona 85012 was
organized to participate in real estate joint ventures and
other real estate related activities. SunCor Realty is a
wholly-owned subsidiary of SunCor.
(7) Palm Valley Golf Club, Inc. ("Palm Valley Golf") -- an
Arizona corporation having been incorporated on January 23,
1996 and having its principal executive offices at 3838 North
Central Avenue, Suite 1500, Phoenix, Arizona 85012 was
organized to hold title to the Palm Valley Golf Course. Palm
Valley Golf is a wholly-owned subsidiary of SunCor.
(8) Rancho Viejo de Santa Fe, Inc. ("Rancho Viejo") -- a New
Mexico corporation having been incorporated on March 18, 1996
and having its principal executive offices at 3838 North
Central Avenue, Suite 1500, Phoenix, Arizona 85012 was
organized to engage in real estate development in New Mexico.
Rancho Viego is a wholly-owned subsidiary of SunCor.
c. El Dorado Investment Company -- an Arizona corporation
having been incorporated on July 27, 1983 and having its principal
executive offices at 400 East Van Buren, Suite 750, Phoenix, Arizona
85004, is a wholly-owned subsidiary of Claimant engaged primarily in
the acquisition and holding of stocks and securities of other companies
for investment purposes.
4
<PAGE>
2. A brief description of the properties of Claimant and each of its
subsidiary public utility companies used for the generation,
transmission and distribution of electric energy for sale, or for the
production, transmission and distribution of natural or manufactured
gas, indicating the location of principal generating plants,
transmission lines, producing fields, gas manufacturing plants and
electric and gas distribution facilities, including all such properties
which are outside the state in which Claimant and its subsidiaries are
organized and all transmission or pipelines which deliver or receive
electric energy or gas at the borders of such state.
Neither the Claimant nor any of its subsidiaries own property used for
the production, transmission and distribution of natural or manufactured gas.
APS, a "public utility company" as that term is defined in the Public Utility
Holding Company Act of 1935, is the only one of Claimant's subsidiaries that
owns property used for the generation, transmission and distribution of electric
energy for sale.
5
<PAGE>
Exhibit D attached hereto shows the location of APS' major generating
plants (including those owned jointly with others), principal transmission lines
(including those operated for others) and interconnections of transmission lines
with out-of-state utilities at state lines. All of such facilities, except the
Four Corners Generating Station ("Four Corners"), and all of APS' distribution
facilities, are located within the State of Arizona. Four Corners is a
mine-mouth power plant, located in the northwest corner of New Mexico, near the
city of Farmington, approximately 40 miles east of the Arizona-New Mexico
border.
APS' present generating facilities have an accredited capacity
aggregating 4,039,220 kilowatts, comprised as follows:
Coal: Capacity
Units 1, 2 and 3 at Four Corners,
aggregating............................ 560,000 kw
15% owned Units 4 and 5 at Four Corners,
representing........................... 222,000
Units 1, 2, and 3 at the Cholla Plant,
aggregating............................ 615,000
14% owned Units 1, 2 and 3 at the Navajo
Plant, representing.................... 315,000
1,712,000 kw
Gas or Oil:
Two steam units at Ocotillo, two steam
units at Saguaro and one steam
unit at Yucca, aggregating............. 463,400 kw(1)
Eleven combustion turbine units,
aggregating.......................... 500,600
Three combined cycle units,
aggregating.......................... 253,500
1,217,500 kw
Nuclear:
29.1% owned or leased Units 1, 2 and 3
at Palo Verde, representing 1,105,520 kw
Other 4,200 kw
6
- - ---------------------------------------
(1) West Phoenix steam units (96,300) are currently mothballed.
<PAGE>
APS' transmission facilities consist of approximately 4,862 pole miles
of overhead lines and approximately 18 miles of underground lines, all of which
are located within the State of Arizona. APS' distribution facilities consist of
approximately 11,335 pole miles of overhead lines and approximately 8,993 miles
of underground lines, all of which are located within the State of Arizona.
3. The following information for the last calendar year with respect to
Claimant and each of its subsidiary public utility companies:
a. Number of kwh of electric energy sold at retail or
wholesale.
Claimant APS
-------- ---
None 22,387,930,000 kwh of electric energy
sold at wholesale or retail
b. Number of kwh of electric energy distributed at retail
outside the state in which each such company is organized.
Claimant APS
-------- ---
None 62,766,000 kwh of electric energy
distributed at retail outside Arizona
c. Number of kwh of electric energy sold at wholesale outside
the state in which each such company is organized, or at the state
line.
Claimant APS
-------- ---
None 973,300 kwh of electric energy sold at
wholesale outside Arizona or at state
line
d. Number of kwh of electric energy purchased outside the
state in which each such company is organized or at the state line.
Claimant APS
-------- ---
None 4,605,356 kwh of electric energy
purchased outside Arizona or at state
line
7
<PAGE>
4. The following information for the reporting period with respect to
Claimant and each interest it holds directly or indirectly in an EWG or
a foreign utility company, stating monetary amounts in United States
dollars:
The Claimant holds no interest, direct or indirect, in an EWG or a
foreign utility company.
a. Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the
generation, transmission and distribution of electric energy for sale
or for the distribution at retail of natural or manufactured gas.
Not applicable.
b. Name of each system company that holds an interest in such
EWG or foreign utility company; and description of the interest held.
Not applicable.
c. Type and amount of capital invested, directly or
indirectly, by the holding company claiming exemption; any direct or
indirect guarantee of the security of the EWG or foreign utility
company by the holding company claiming exemption; and any debt or
other financial obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or another system
company, other than the EWG or foreign utility company.
Not applicable.
d. Capitalization and earnings of the EWG or foreign utility
company during the reporting period.
Not applicable.
e. Identify any service, sales or construction contract(s)
between the EWG or foreign utility company and a system company, and
describe the services to be rendered or goods sold and fees or revenues
under such agreement(s).
Not applicable.
8
<PAGE>
EXHIBIT A
A consolidating statement of income and surplus of the Claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of Claimant and its subsidiary companies as of the close of such
calendar year.
Exhibit A hereto includes consolidating statements of income and
consolidating balance sheets for the Claimant and the following of its
subsidiaries: Arizona Public Service Company, SunCor Development Company and El
Dorado Investment Company. Subsidiaries have been consolidated for financial
reporting purposes in accordance with Statement of Financial Accounting
Standards No. 94, Consolidation of All Majority-Owned Subsidiaries. Also
included are consolidating statements of income and consolidating balance sheets
for SunCor Development Company and its subsidiaries.
9
<PAGE>
EXHIBIT B FINANCIAL DATA STATEMENT
If, at the time a report on this form is filed, the registrant is required to
submit this report and any amendments thereto electronically via EDGAR, the
registrant shall furnish a Financial Data Schedule. The Schedule shall set forth
the financial and other data specified below that are applicable to the
registrant on a consolidated basis.
1. Total Assets.
2. Total Operating Revenues.
3. Net Income.
See Exhibit B hereto.
10
<PAGE>
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
Not applicable.
11
<PAGE>
EXHIBIT D
Exhibit D is a map of the state of Arizona showing the following:
APS Service Area;
Major APS Power Plants, including joint ownership;
Principal APS Transmission Lines;
and Transmission Lines Operated for Others.
12
<PAGE>
The above-named Claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 28th day of February, 1997.
Pinnacle West Capital Corporation
---------------------------------
(Name of Claimant)
By /s/ Michael S. Ash
---------------------------------
Michael S. Ash
Corporate Counsel
[CORPORATE SEAL]
Attest:
/s/Suzanne Debes
------------------------
Suzanne Debes
Associate Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Michael S. Ash Corporate Counsel (Name) (Title)
- - -------------- ---------------------------------------
400 East Van Buren, Suite 700, Phoenix, Arizona 85004 (Address)
- - ---------------------------------------------------------
13
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PWCC APS SUNCOR ELDO
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Electric $1,718,272
Real Estate 99,488
-------------------------------------------------
Total -- 1,718,272 99,488 --
-------------------------------------------------
FUEL EXPENSES:
Fuel for electric generation 230,393
Purchased power 95,130
-------------------------------------------------
Total -- 325,523 -- --
-------------------------------------------------
OPERATING EXPENSES:
Utility operations and maintenance 430,714
Real estate operations 94,874
Depreciation and amortization 216 297,210 2,081 --
Taxes other than income taxes 33 121,104 940
-------------------------------------------------
Total 249 849,028 97,895 --
-------------------------------------------------
OPERATING INCOME (249) 543,721 1,593 --
-------------------------------------------------
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 5,209
Interest on long-term debt (22,208) (147,666) (2,790) --
Other interest (4,967) (18,797) -- --
Allowance for borrowed funds used during construction 9,509
Preferred stock dividend requirements (17,092)
Other, net 233,977 (15,544) 5,351 372
-------------------------------------------------
Total 206,802 (184,381) 2,561 372
-------------------------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 206,553 359,340 4,154 372
Income Tax Benefits (Expense) 4,506 (132,961) (1)
-------------------------------------------------
INCOME FROM CONTINUING OPERATIONS 211,059 226,379 4,154 371
DISCONTINUED OPERATIONS, NET OF TAX (9,539)
EXTRAORDINARY ITEM FOR EARLY RETIREMENT OF DEBT, NET OF TAX (20,340)
=================================================
NET INCOME (L0SS) $ 181,180 $ 226,379 $ 4,154 $ 371
=================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
* E L I M I N A T I O N S *
DEBIT CREDIT TOTAL
<S> <C> <C> <C>
OPERATING REVENUES:
Electric $ 1,718,272
Real Estate 99,488
------------ ------------ ------------
Total -- -- 1,817,760
------------ ------------ ------------
FUEL EXPENSES:
Fuel for electric generation 230,393
Purchased power 95,130
------------ ------------ ------------
Total -- -- 325,523
------------ ------------ ------------
OPERATING EXPENSES:
Utility operations and maintenance 430,714
Real estate operations 1,206 (c) 96,080
Depreciation and amortization 299,507
Taxes other than income taxes 122,077
------------ ------------ ------------
Total 1,206 -- 948,378
------------ ------------ ------------
OPERATING INCOME (1,206) -- 543,859
------------ ------------ ------------
OTHER INCOME (DEDUCTIONS):
Allowance for equity funds used during construction 5,209
Interest on long-term debt 1,206 (c) (171,458)
Other interest -- (b) (23,764)
Allowance for borrowed funds used during construction 9,509
Preferred stock dividend requirements (17,092)
Other, net 230,904 (a,b) (6,748)
------------ ------------ ------------
Total 230,904 1,206 (204,344)
------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 229,698 1,206 339,515
Income Tax Benefits (Expense) (128,456)
------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS 229,698 1,206 211,059
DISCONTINUED OPERATIONS, NET OF TAX (9,539)
EXTRAORDINARY ITEM FOR EARLY RETIREMENT OF DEBT, NET OF TAX (20,340)
============ ============ ============
NET INCOME (L0SS) $ 229,698 $ 1,206 $ 181,180
============ ============ ============
EXHIBIT A PAGE 1 OF 12
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
ELIMINATING ENTRIES
<TABLE>
<S> <C> <C>
(a) Income from Subsidiaries $ 230,904
Retained Earnings $ 230,904
To eliminate PWCC Equity in earnings from subsidiairies
PWCC
APS 226,379
SUNCOR 4,154
EL DORADO 371
------------
230,904
------------
(b) Interest Income (SunCor) $ --
Interest Expense (El Dorado) $ --
To eliminate SunCor interest charges to El Dorado.
(c) Real Estate Operations $ 1,206
Interest Expense (PWCC) $ 1,206
To reclass Capitalized Interest for SunCor Land Sales.
EXHIBIT A PAGE 2 OF 12
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
December 31, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PWCC APS SUNCOR ELDO
----------- ----------- --------- ---------
A S S E T S
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 4,485 $ 12,521 $ 6,225 $ 3,455
Customer and other receivables - net 572 159,928 7,416 1,893
Accrued utility revenue 55,470
Materials and supplies 74,120
Fossil fuel 13,928
Deferred income taxes 61,264 8,424
Other current assets 314 22,767 18,150 --
----------------------------------------------
Total current assets 66,635 347,158 31,791 5,348
----------------------------------------------
INVESTMENTS AND OTHER ASSETS
Real estate investments, net (cap interest) 8,668 398,809
Other assets 2,111,100 113,666 5,861 33,459
----------------------------------------------
Total investments and other 2,119,768 113,666 404,670 33,459
----------------------------------------------
UTILITY PLANT
Electric plant in service and held for future use 6,803,211
Less accumulated depreciation and amortization 2,426,143
----------------------------------------------
Total -- 4,377,068 -- --
Construction work in progress 226,935
Nuclear Fuel 51,137
----------------------------------------------
Net Utility Plant -- 4,655,140 -- --
----------------------------------------------
DEFERRED DEBITS
Regulatory asset for income taxes -- 516,722
Rate synchronization deferral 414,082
Other deferred debits 69 376,454 4,917
----------------------------------------------
Total deferred debits 69 1,307,258 4,917 --
----------------------------------------------
TOTAL ASSETS $ 2,186,472 $ 6,423,222 $ 441,378 $ 38,807
==============================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
*ELIMINATIONS AND ADJUSTING ENTRIES*
DEBIT CREDIT TOTAL
--------- ----------- -----------
A S S E T S
<S> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 26,686
Customer and other receivables - net 572 (b) 169,237
Accrued utility revenue 55,470
Materials and supplies 74,120
Fossil fuel 13,928
Deferred income taxes 69,688
Other current assets 91 (c) 41,140
--------- ----------- -----------
Total current assets -- 663 450,269
--------- ----------- -----------
INVESTMENTS AND OTHER ASSETS
Real estate investments, net (cap interest) 8,950 (f) 398,527
Other assets 2,090,977 (a) 173,109
--------- ----------- -----------
Total investments and other -- 2,099,927 571,636
--------- ----------- -----------
UTILITY PLANT
Electric plant in service and held for future us 6,803,211
Less accumulated depreciation and amortization 2,426,143
--------- ----------- -----------
Total -- -- 4,377,068
Construction work in progress 226,935
Nuclear Fuel 51,137
--------- ----------- -----------
Net Utility Plant -- -- 4,655,140
--------- ----------- -----------
DEFERRED DEBITS
Regulatory asset for income taxes 516,722
Rate synchronization deferral 414,082
Other deferred debits 381,440
--------- ----------- -----------
Total deferred debits -- -- 1,312,244
--------- ----------- -----------
TOTAL ASSETS $ -- $ 2,100,590 $ 6,989,289
========= =========== ===========
EXHIBIT A PAGE 3 of 12
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
December 31, 1996
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PWCC APS SUNCOR ELDO
----------- ----------- ---------- ---------
L I A B I L I T I E S A N D E Q U I T Y
<S> <C> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 2,958 $ 174,394 $ 6,625 $ 118
Accrued taxes (3,914) 86,327 --
Accrued interest 208 39,115 326
Dividend payable -- --
Short-term borrowings -- --
Commerical paper, net -- 16,900
Current maturities of long-term debt -- 153,780 2,497
Customer Deposits 32,137 2,085
Other current liabilities 18,199 21,150 907
----------- ----------- ---------- ---------
Total current liabilities 17,451 523,803 12,440 118
----------- ----------- ---------- ---------
LONG-TERM DEBT LESS CURRENT MATURITIES 250,000 2,029,482 92,631
DEFERRED CREDITS AND OTHER
Deferred income taxes (54,930) 1,414,242
Deferred investment tax credit (13,344) 87,723
Unamortized gain-sale of utility plant 86,939
Other deferred credits 16,972 332,970 4,459
----------- ----------- ---------- ---------
Total deferred credits (51,302) 1,921,874 4,459 --
----------- ----------- ---------- ---------
COMMITMENTS AND CONTINGENCIES (NOTE)
MINORITY INTERESTS:
Non-Redeemable preferred stock of APS 165,673
Redeemable preferred stock of APS 53,000
Joint Ventures of SunCor 8,950
COMMON STOCK EQUITY:
Common stock 2,109,455 1,269,284 444,391 62,546
Accumulated deficit (139,132) 460,106 (121,493) (23,857)
----------- ----------- ---------- ---------
Total 1,970,323 1,729,390 322,898 38,689
----------- ----------- ---------- ---------
TOTAL LIABILITIES AND EQUITY $ 2,186,472 $ 6,423,222 $ 441,378 $ 38,807
=========== =========== ========== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
*ELIMINATIONS AND ADJUSTING ENTRIES*
DEBIT CREDIT TOTAL
----------- ---------- -----------
L I A B I L I T I E S A N D E Q U I T Y
<S> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 184,095
Accrued taxes 82,413
Accrued interest 39,652
Dividend payable -- (d) --
Short-term borrowings --
Commerical paper, net 16,900
Current maturities of long-term debt 156,277
Customer Deposits 34,222
Other current liabilities 3,197 (b),(c), (e) 37,056
----------- ---------- -----------
Total current liabilities 3,197 -- 550,615
----------- ---------- -----------
LONG-TERM DEBT LESS CURRENT MATURITIES 2,372,113
DEFERRED CREDITS AND OTHER
Deferred income taxes 1,359,312
Deferred investment tax credit 74,379
Unamortized gain-sale of utility plant 86,939
Other deferred credits 2,534 (e) 356,935
----------- ---------- -----------
Total deferred credits -- 2,534 1,877,565
----------- ---------- -----------
COMMITMENTS AND CONTINGENCIES (NOTE)
MINORITY INTERESTS:
Non-Redeemable preferred stock of APS 165,673
Redeemable preferred stock of APS 53,000
Joint Ventures of SunCor 8,950 (e) --
COMMON STOCK EQUITY:
Common stock 2,249,322 (a) 1,636,354
Accumulated deficit 158,345 (a) 333,969
----------- ---------- -----------
Total 2,249,322 158,345 1,970,323
----------- ---------- -----------
TOTAL LIABILITIES AND EQUITY $ 2,261,469 $ 160,879 $ 6,989,289
=========== ========== ===========
EXHIBIT A PAGE 4 of 12
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
ELIMINATING AND ADJUSTING ENTRIES
<TABLE>
<S> <C> <C>
(a) Common stock 2,249,322
Notes payable - SunCor, El Dorado --
Accumulated deficit -- 158,345
Other investments 2,090,977
-------------------------------
Total 2,249,322 2,249,322
-------------------------------
To eliminate PWCC investment in subsidiaries
Common Earnings/
Stock Dividends Notes Total
APS 1,742,385 (12,995) -- 1,729,390
SunCor 444,391 (121,493) -- 322,898
El Dorado 62,546 (23,857) -- 38,689
- - -------------------------------------------------------------------------------- -------------
Total 2,249,322 (158,345) -- 2,090,977
- - -------------------------------------------------------------------------------- -------------
(b) Other current liabilities 572
Customer and other receivables - net 572
To eliminate intercompany receivable/payable
A/R A/P
PWCC's Books SUB's Books
APS 130 130
SunCor 443 443
El Dorado (1) (1)
-------- --------
Total 572 572
-------- --------
(c) Other current liabilities (PWCC) 91
Other current assets (APS) 91
To eliminate PWCC payable to APS
(d) Dividends Payable (APS) --
Customer and other receiv. (PNW) --
To eliminate APS Dividend to PNW
(e) Current Liabilities (PNW) 2,534
Deferred Credits (PNW) 2,534
Reclass deferred compensation
(f) Scottsdale Mountain - Minority Interest 8,950
Real estate investments - net 8,950
To eliminate Minority Interest - SunCor Scottsdale Mountain
EXHIBIT A PAGE 5 of 12
</TABLE>
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
FOR THE MONTH ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION SUNCOR LPSCO SASI SCTS MTN PVGC SHI SCM
------------------- ------ ----- ---- -------- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 4,666,819 $ 345,533 $ 417,524 $ 1,509,499 $ 47,652 $ (14,235) $ (352,503)
ACCOUNTS RECEIVABLE 356,927 84,647 141,936 327,513 28,180 83,181 49,263
INTERCOMPANY ACCOUNTS:
SASI 368
LPSCO 85,521
SMLP 18,333
KABUTO JV --
PVGC --
SCM/SHI I/C - 12901 & 12201 -- 1,685,351 (1,685,351)
SCM/SHI I/C - 12902 -- (2,379,358) 2,379,358
SCM - SDC -12903 -- (4,663,344)
SHI - SDC - 12903 & 265 125,501 333,738
WWOS 18,733
GOLDEN HERITAGE 42,465
HOMEBUILDING I/C INTEREST 135,646
GOLDEN HERITAGE CASH ADVANCE 11,692,358 (11,692,358)
SUNRIDGE - DEVELOPMENT 60,698
SUNRIDGE - GOLF 114,958
SEDONA - DEVELOPMENT 44,281
SEDONA - GOLF (205,396)
WIGWAM RESORT 377,474
OUTER LIMITS (2000) (58,140)
COMMERCIAL PROJECT - GENERAL 5,051,459
FIDDLESTICKS 3,685,231
FUNTASTICKS 4,590,012
HIDDEN HILLS 174,208
RANCHO VIEJO 756,736
INTEREST RECEIVABLE 132,659 117,857
NOTES RECEIVABLE 3,145,422 4,746 2,603,250
INVENTORIES -- 72,984
PREPAID EXPENSES -- 14,564 57,875
HOME INVENTORY 52,919 2,442,969 16,518,852
-----------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 35,064,824 449,490 559,828 4,558,119 206,691 2,151,646 553,917
-----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ELIMINATIONS
HIDDEN RANCHO ---------------------------
ACCOUNT DESCRIPTION WWOS GH HOMES KABUTO JV COMMERCIAL HILLS VIEJO REF DEBIT REF CREDIT
------------------- ---- -------- --------- ---------- ----- ------ --- ----- --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 93,801 $ 250 $ (494,705) $ 5,000
ACCOUNTS RECEIVABLE (25,497) 38,451
INTERCOMPANY ACCOUNTS:
SASI P 172
LPSCO M 85,521
SMLP O 18,333
KABUTO JV
PVGC
SCM/SHI I/C - 12901 & 12201 AB 6,603,859 AB 6,603,859
SCM/SHI I/C - 12902 C 2,379,358 C 2,379,358
SCM - SDC -12903 D 4,663,344
SHI - SDC - 12903 & 265 D 1,432,265 D 1,891,504
WWOS U 18,733
GOLDEN HERITAGE G 42,465
HOMEBUILDING I/C INTEREST F 135,646
GOLDEN HERITAGE CASH ADVANCE E 11,692,358 E 11,692,358
SUNRIDGE - DEVELOPMENT
SUNRIDGE - GOLF
SEDONA - DEVELOPMENT
SEDONA - GOLF
WIGWAM RESORT
OUTER LIMITS (2000) X 58,140
COMMERCIAL PROJECT - GENERAL X 5,051,459
FIDDLESTICKS X 3,685,231
FUNTASTICKS X 4,590,012
HIDDEN HILLS Z 174,208
RANCHO VIEJO AA 756,736
INTEREST RECEIVABLE T 72,611
NOTES RECEIVABLE 8,041
INVENTORIES 21,609
PREPAID EXPENSES 44,358
HOME INVENTORY J 1,075,417
----------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 76,345 -- 250 (390,287) -- 5,000 26,829,496 38,273,451
----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
<S> <C>
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 6,224,635
ACCOUNTS RECEIVABLE 1,084,601
INTERCOMPANY ACCOUNTS:
SASI 540
LPSCO --
SMLP --
KABUTO JV --
PVGC --
SCM/SHI I/C - 12901 & 12201 --
SCM/SHI I/C - 12902 --
SCM - SDC -12903 --
SHI - SDC - 12903 & 265 --
WWOS --
GOLDEN HERITAGE --
HOMEBUILDING I/C INTEREST --
GOLDEN HERITAGE CASH ADVANCE 60,698
SUNRIDGE - DEVELOPMENT 114,958
SUNRIDGE - GOLF 44,281
SEDONA - DEVELOPMENT (205,396)
SEDONA - GOLF 377,474
WIGWAM RESORT --
OUTER LIMITS (2000) --
COMMERCIAL PROJECT - GENERAL --
FIDDLESTICKS --
FUNTASTICKS --
HIDDEN HILLS --
RANCHO VIEJO --
--
INTEREST RECEIVABLE 177,905
NOTES RECEIVABLE 5,761,459
INVENTORIES 94,593
PREPAID EXPENSES 116,797
HOME INVENTORY 17,939,323
-----------------------------
TOTAL CURRENT ASSETS 31,791,868
-----------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION SUNCOR LPSCO SASI SCTS MTN PVGC SHI SCM
------------------- ------ ----- ---- -------- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
HIDDEN HILLS
RANCHO VIEJO
PALM VALLEY 202,486,457
LITCHFIELD GREENS 2,987,026
KABUTO JV --
SCOTTSDALE MTN -- 10,637,107
MARKETPLACE - CENTERPOINT 21,464,829
TATUM RANCH 40,840,941
TALAVI 8,494,198
RESTORATION PLACE - TOWNE CNTR (11,827)
WIGWAM OUTLET STORES --
GOLDEN HERITAGE LAND -- 955,487
EQUITY INVESTMENTS:
EQUITY IN TEMPE MKTPL JV 4,657,017
EQUITY IN CTRPT ASSOC-JV 23,216,298
INVESTMENT IN BILTMORE ESTATES 464,583
INVEST IN PV APARTMENTS 817,002
INVESTMENT IN SUNRIDGE CANYON 11,201,128
INVESTMENT IN SEDONA GOLF 6,116,340
INVESTMENT IN PLUMCOR OFFICE JV 2,569,397
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO JV 5,769,120
INVESTMENT IN WIGWAM OUTLET 5,501,073
INVEST IN SCOTTS MTN LTD PART 11,106,848
INVEST IN SUNCOR HOMES:
SUNCOR HOMES EARNINGS 223,493
GOLDEN HERITAGE EARNINGS (1,794,677)
INVEST IN GOLDEN HERITAGE HOMES 26,501
INVESTMENT IN LPSCO 8,277,474
INVESTMENT IN SASI 400,109
INVESTMENT IN PALM VALLEY GOLF 6,553,930
INVESTMENT IN OUTER LIMITS 1,668,979
INVESTMENT IN FIDDLESTICKS (31,249)
INVESTMENT IN FUNTASTICKS (43,535)
INVESTMENT IN COMM OPS 5,351
INVESTMENT IN PV PAVILIONS (100)
INVESTMENT IN PV CROSSING (31,673)
INVESTMENT IN AUTOPLEX (286)
INVESTMENT IN TALAVI (2,841)
INVESTMENT IN RANCHO VIEJO (13,893)
COMMERCIAL PROPERTIES 2,480,405 5,598,637
LONG-TERM NOTES RECEIVABLE 1,229,007 2,901,096
SDC PHASE I LAND NOTE TO WWOS 1,611,156
SDC PAYOFF OF WWOS RLC 10,000,000
SDC LOAN TO LPSCO 300,000
PALM VALLEY GOLF INTERCOMPANY (4,021,827) 4,021,827
BUILDING, EQUIPMENT AND OTHER (NET) 701,119 -- 36,696 1,127 45,773 841,862 104,245
DEFERRED ASSETS 3,314,819 576,836 -- 257,173
WATER, SEWER UTILITY PROP (NET) -- 8,609,113
CONTRIBUTED PROPERTY -- 1,059,926 8,630 153,175
DEPOSITS
--------------------------------------------------------------------------------------------
TOTAL LONG-TERM ASSETS 378,532,692 10,245,875 36,696 13,539,330 9,923,410 850,492 1,212,907
--------------------------------------------------------------------------------------------
TOTAL ASSETS $413,597,516 $10,695,365 $ 596,524 $18,097,449 $10,130,101 $3,002,138 $1,766,824
============================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ELIMINATIONS
HIDDEN RANCHO ---------------------------
ACCOUNT DESCRIPTION WWOS GH HOMES KABUTO JV COMMERCIAL HILLS VIEJO REF DEBIT REF CREDIT
------------------- ---- -------- --------- ---------- ----- ------ --- ----- --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
HIDDEN HILLS 174,208
RANCHO VIEJO 737,843
PALM VALLEY 5,286,144
LITCHFIELD GREENS 12,574,976
KABUTO JV V 2,956,571
SCOTTSDALE MTN N 83,503
MARKETPLACE - CENTERPOINT 504,883
TATUM RANCH
TALAVI 32,623
RESTORATION PLACE - TOWNE CNTR
WIGWAM OUTLET STORES 18,241,943 S 451,398 S 1,559,870
GOLDEN HERITAGE LAND
EQUITY INVESTMENTS:
EQUITY IN TEMPE MKTPL JV
EQUITY IN CTRPT ASSOC-JV
INVESTMENT IN BILTMORE ESTATES
INVEST IN PV APARTMENTS
INVESTMENT IN SUNRIDGE CANYON
INVESTMENT IN SEDONA GOLF
INVESTMENT IN PLUMCOR OFFICE JV
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO JV V 5,769,120
INVESTMENT IN WIGWAM OUTLET S 5,501,073
INVEST IN SCOTTS MTN LTD PART N 11,106,848
INVEST IN SUNCOR HOMES:
SUNCOR HOMES EARNINGS H 223,493
GOLDEN HERITAGE EARNINGS H 1,794,677
INVEST IN GOLDEN HERITAGE HOMES
INVESTMENT IN LPSCO K 8,277,474
INVESTMENT IN SASI P 400,109
INVESTMENT IN PALM VALLEY GOLF Q 6,553,930
INVESTMENT IN OUTER LIMITS Y 1,668,979
INVESTMENT IN FIDDLESTICKS Y 31,249
INVESTMENT IN FUNTASTICKS Y 43,535
INVESTMENT IN COMM OPS Y 5,351
INVESTMENT IN PV PAVILIONS Y 100
INVESTMENT IN PV CROSSING Y 31,673
INVESTMENT IN AUTOPLEX Y 286
INVESTMENT IN TALAVI Y 2,841
INVESTMENT IN RANCHO VIEJO BB 13,893
COMMERCIAL PROPERTIES 10,733,633
LONG-TERM NOTES RECEIVABLE T 1,611,156
SDC PHASE I LAND NOTE TO WWOS T 10,000,000
SDC PAYOFF OF WWOS RLC L 300,000
SDC LOAN TO LPSCO R 4,021,827 R 4,021,827
PALM VALLEY GOLF INTERCOMPANY
BUILDING, EQUIPMENT AND OTHER (NET)
DEFERRED ASSETS 523,145 72,193
WATER, SEWER UTILITY PROP (NET)
CONTRIBUTED PROPERTY
DEPOSITS
-------------------------------------------------------------------------------------------------
TOTAL LONG-TERM ASSETS 18,765,088 -- 12,574,976 16,629,476 174,208 737,843 6,391,479 60,039,304
-------------------------------------------------------------------------------------------------
TOTAL ASSETS $18,841,433 $ -- $12,575,226 $16,239,189 $174,208 $742,843 $33,220,975 $98,312,755
=================================================================================================
</TABLE>
<PAGE>
<TABLE>
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
<S> <C>
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
HIDDEN HILLS 174,208
RANCHO VIEJO 737,843
PALM VALLEY 207,772,601
LITCHFIELD GREENS 2,987,601
KABUTO JV 9,618,405
SCOTTSDALE MTN 10,553,604
MARKETPLACE - CENTERPOINT 21,969,712
TATUM RANCH 40,840,941
TALAVI 8,526,941
RESTORATION PLACE - TOWNE CNTR (11,827)
WIGWAM OUTLET STORES 17,133,471
GOLDEN HERITAGE LAND 955,487
EQUITY INVESTMENTS:
EQUITY IN TEMPE MKTPL JV 4,657,017
EQUITY IN CTRPT ASSOC-JV 23,216,298
INVESTMENT IN BILTMORE ESTATES 464,583
INVEST IN PV APARTMENTS 817,002
INVESTMENT IN SUNRIDGE CANYON 11,201,128
INVESTMENT IN SEDONA GOLF 6,116,340
INVESTMENT IN PLUMCOR OFFICE JV 2,569,397
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO JV --
INVESTMENT IN WIGWAM OUTLET --
INVEST IN SCOTTS MTN LTD PART --
INVEST IN SUNCOR HOMES:
SUNCOR HOMES EARNINGS --
GOLDEN HERITAGE EARNINGS --
INVEST IN GOLDEN HERITAGE HOMES 26,501
INVESTMENT IN LPSCO --
INVESTMENT IN SASI --
INVESTMENT IN PALM VALLEY GOLF --
INVESTMENT IN OUTER LIMITS --
INVESTMENT IN FIDDLESTICKS --
INVESTMENT IN FUNTASTICKS --
INVESTMENT IN COMM OPS --
INVESTMENT IN PV PAVILIONS --
INVESTMENT IN PV CROSSING --
INVESTMENT IN AUTOPLEX --
INVESTMENT IN TALAVI --
INVESTMENT IN RANCHO VIEJO --
COMMERCIAL PROPERTIES 18,812,675
LONG-TERM NOTES RECEIVABLE 4,130,103
SDC PHASE I LAND NOTE TO WWOS --
SDC PAYOFF OF WWOS RLC --
SDC LOAN TO LPSCO --
PALM VALLEY GOLF INTERCOMPANY --
BUILDING, EQUIPMENT AND OTHER (NET) 1,730,822
DEFERRED ASSETS 4,744,166
WATER, SEWER UTILITY PROP (NET) 8,609,113
CONTRIBUTED PROPERTY 1,059,926
DEPOSITS 161,805
-------------
TOTAL LONG-TERM ASSETS 409,575,168
-------------
TOTAL ASSETS $ 441,367,036
=============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION SUNCOR LPSCO SASI SCTS MTN PVGC SHI SCM
------------------- ------ ----- ---- -------- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION $ 1,054,550 $ 389,898 $ 40,744 $ 111,922 $ 40,654 $ 138,251 $ 582,108
ACCRUED LIABILITIES 1,806,502 34,416 155,843 336,426 54,334 33,559
INTERCOMPANY ACCOUNTS:
LPSCO - SDC 117,889
SMLP - SDC 18,333
PVGC
SCM-SDC INTERCOMPANY (4,204,105)
SHI-SDC INTERCOMPANY 129,234,240 25,158
SCM EARNINGS (395,624)
WWOS
KABUTO JV
OUTER LIMITS - SDC
COMMERCIAL OPERATIONS - GENERAL
FIDDLESTICKS
FUNTASTICKS
HIDDEN HILLS
RANCHO VIEJO
INTEREST PAYABLE 325,581 17,307 135,646
S/T NOTES PAYABLE OTHER
TATUM RANCH MONK NOTE 78,027
SMLP -- 936,893
GOLDEN HERITAGE (PEW)
TEXTRON LOAN
DEFERRED PROFIT 1,237,716 387,692
PWCC INTERCO PAYABLE 337,995
CUSTOMER DEPOSITS 117,067 1,314,797 653,446
ACCRUED TAXES 18,714
---------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 357,709 560,917 196,587 1,791,266 94,988 1,529,072 1,371,200
---------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
TATUM RANCH MONK NOTE 156,053
WWOS OWES SCD PH I LAND NOTE
WWOS RLC PAYOFF BY SDC
CORPORATE TERM NOTE 45,000,000
CORPORATE RLC 42,431,700
LPSCO OWES SDC 300,000
GOLDEN HERITAGE (PEW) 3,044,250
TEXTRON LOAN 3,481,183
OTHER ACCRUED LIABILITIES 2,754,358
DEFERRED TAXES 238,404
LONG-TERM ADVANCE-IN-AID --
LONG-TERM METER DEPOSITS 405,425
CONTRIB PROPERTY AIA 1,059,925
---------------------------------------------------------------------------------------------
TOTAL L/T LIABILITIES 90,342,111 2,003,754 -- -- 3,481,183 3,044,250 --
---------------------------------------------------------------------------------------------
TOTAL LIABILITIES 90,699,820 2,564,671 196,587 1,791,266 3,576,171 4,573,322 1,371,200
---------------------------------------------------------------------------------------------
MINORITY INTEREST
EQUITY:
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION SUNCOR LPSCO SASI SCTS MTN PVGC SHI SCM
------------------- ------ ----- ---- -------- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 443,368,522
SDC EARNED SURPLUS-BEGINNING (125,646,609)
SDC EARNED SURPLUS-CURRENT 4,153,783
SUBSIDIARY EARNINGS-CURRENT 19,237 4,468 7,168,410 100,993 (1,359,913) 16,338
SUBSIDIARY EQUITY:
LPSCO 8,111,457
SASI 395,469
SMLP 9,137,773
PVGC 6,452,937
SCM 379,286
SHOMES (211,271)
WWOS
GOLDEN HERITAGE
KABUTO JV
OUTER LIMITS
---------------------------------------------------------------------------------------------
TOTAL EQUITY 322,897,696 8,130,694 399,937 16,306,183 6,553,930 (1,571,184) 395,624
---------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY $413,597,516 $10,695,365 $ 596,524 $ 18,097,449 $ 10,130,101 $3,002,138 $ 1,766,824
=============================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ELIMINATIONS
HIDDEN RANCHO ---------------------------
ACCOUNT DESCRIPTION WWOS GH HOMES KABUTO JV COMMERCIAL HILLS VIEJO REF DEBIT REF CREDIT
------------------- ---- -------- --------- --------- ----- ------ --- ----- --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION $ -- $ 1,204,911
ACCRUED LIABILITIES 529,388 15,000 63,963
INTERCOMPANY ACCOUNTS:
LPSCO - SDC M 85,521
SMLP - SDC O 18,333
PVGC
SCM-SDC INTERCOMPANY D 4,204,105
SHI-SDC INTERCOMPANY 129,234,240 G 25,158
SCM EARNINGS I 395,624
WWOS 18,733 U 18,733
KABUTO JV --
OUTER LIMITS - SDC (58,140) X 58,140
COMMERCIAL OPERATIONS - GENERAL 5,051,459 X 5,051,459
FIDDLESTICKS 3,685,231 X 3,685,231
FUNTASTICKS 4,590,012 X 4,590,012
HIDDEN HILLS 174,208 Z 174,208
RANCHO VIEJO 756,736 AA 756,736
INTEREST PAYABLE 72,611 FGT 225,564
S/T NOTES PAYABLE OTHER
TATUM RANCH MONK NOTE
SMLP
GOLDEN HERITAGE (PEW) ** 1,420,000
TEXTRON LOAN * 61,892
DEFERRED PROFIT J 1,075,417
PWCC INTERCO PAYABLE
CUSTOMER DEPOSITS
ACCRUED TAXES
----------- ------- ----------- ----------- -------- -------- ----------- -----------
TOTAL CURRENT LIABILITIES 620,732 -- 15,000 14,537,436 174,208 756,736 15,706,372 6,139,761
----------- ------- ----------- ----------- -------- -------- ----------- -----------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
TATUM RANCH MONK NOTE
WWOS OWES SCD PH I LAND NOTE 1,611,156 T 1,611,156
WWOS RLC PAYOFF BY SDC 10,000,000 T 10,000,000
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO OWES SDC L 300,000
GOLDEN HERITAGE (PEW) ** 1,420,000
TEXTRON LOAN * 61,892
OTHER ACCRUED LIABILITIES 137,107
DEFERRED TAXES 146,780
LONG-TERM ADVANCE-IN-AID
LONG-TERM METER DEPOSITS
CONTRIB PROPERTY AIA
----------- ------- ----------- ----------- -------- -------- ----------- -----------
TOTAL L/T LIABILITIES 11,611,156 -- -- 137,107 -- -- 13,539,828 --
----------- ------- ----------- ----------- -------- -------- ----------- -----------
TOTAL LIABILITIES 12,231,888 -- 15,000 14,674,543 174,208 756,736 29,246,200 6,139,761
----------- ------- ----------- ----------- -------- -------- ----------- -----------
MINORITY INTEREST NV 8,950,367
EQUITY:
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ELIMINATIONS
HIDDEN RANCHO ---------------------------
ACCOUNT DESCRIPTION WWOS GH HOMES KABUTO JV COMMERCIAL HILLS VIEJO REF DEBIT REF CREDIT
------------------- ---- -------- --------- --------- ----- ------ --- ----- --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT (1,101,590) -- (257,869) (13,893)IKNPQ 7,309,446 HSY(BB)2,733,265
SUBSIDIARY EQUITY:
LPSCO K 8,111,457
SASI P 395,469
SMLP N 9,137,773
PVGC Q 6,452,937
SCM I 379,286
SHOMES H 211,271
WWOS 7,711,135 S 7,711,135
GOLDEN HERITAGE
KABUTO JV 12,560,226 V 12,560,226
OUTER LIMITS 1,822,515 Y 1,822,515
----------- ------- ----------- ----------- -------- -------- ----------- -----------
TOTAL EQUITY 6,609,545 -- 12,560,226 1,564,646 -- (13,893) 53,880,244 2,944,536
----------- ------- ----------- ----------- -------- -------- ----------- -----------
TOTAL LIABILITIES AND EQUITY $18,841,433 $ -- $12,575,226 $16,239,189 $174,208 $742,843 $83,126,444 $18,034,664
=========== ======= =========== =========== ======== ======== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
<S> <C>
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION $ 3,563,038
ACCRUED LIABILITIES 3,029,431
INTERCOMPANY ACCOUNTS:
LPSCO - SDC 32,368
SMLP - SDC --
PVGC --
SCM-SDC INTERCOMPANY --
SHI-SDC INTERCOMPANY 129,234,240 --
SCM EARNINGS --
WWOS --
KABUTO JV --
OUTER LIMITS - SDC --
COMMERCIAL OPERATIONS - GENERAL --
FIDDLESTICKS --
FUNTASTICKS --
HIDDEN HILLS --
RANCHO VIEJO --
INTEREST PAYABLE 325,581
S/T NOTES PAYABLE OTHER
TATUM RANCH MONK NOTE 78,027
SMLP 936,893
GOLDEN HERITAGE (PEW) 1,420,000
TEXTRON LOAN 61,892
DEFERRED PROFIT 549,991
PWCC INTERCO PAYABLE 337,995
CUSTOMER DEPOSITS 2,085,310
ACCRUED TAXES 18,714
-------------
TOTAL CURRENT LIABILITIES 12,439,240
-------------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE --
TATUM RANCH MONK NOTE 156,053
WWOS OWES SCD PH I LAND NOTE --
WWOS RLC PAYOFF BY SDC --
CORPORATE TERM NOTE 45,000,000
CORPORATE RLC 42,431,700
LPSCO OWES SDC --
GOLDEN HERITAGE (PEW) 1,624,250
TEXTRON LOAN 3,419,291
OTHER ACCRUED LIABILITIES 2,891,465
DEFERRED TAXES 91,624
LONG-TERM ADVANCE-IN-AID --
LONG-TERM METER DEPOSITS 405,425
CONTRIB PROPERTY AIA 1,059,925
-------------
TOTAL L/T LIABILITIES 97,079,733
-------------
TOTAL LIABILITIES 109,518,973
-------------
MINORITY INTEREST 8,950,367
EQUITY:
</TABLE>
<PAGE>
<TABLE>
<S> <C>
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 443,368,522
SDC EARNED SURPLUS-BEGINNING (125,646,609)
SDC EARNED SURPLUS-CURRENT 4,153,783
SUBSIDIARY EARNINGS-CURRENT --
SUBSIDIARY EQUITY:
LPSCO --
SASI --
SMLP --
PVGC --
SCM --
SHOMES --
WWOS --
GOLDEN HERITAGE --
KABUTO JV --
OUTER LIMITS --
-------------
TOTAL EQUITY 322,897,696
-------------
TOTAL LIABILITIES AND EQUITY $ 441,367,036
=============
</TABLE>
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 1996
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION SUNCOR LPSCO SCTS MTN
- - ------------------------------------------------ ----------------- ----------------- ------------------
<S> <C> <C> <C>
REVENUES:
SALE OF ASSETS $ 30,633 $ -- $ --
DEFERRED PROFIT (163,914) -- 91,639
LAND SALES 30,253,994 -- 13,194,485
HOME SALES -- -- --
COMMERCIAL PROPERTIES 4,660,516 -- --
UTILITY SALES -- 1,448,257 --
MANAGEMENT FEES 1,329,474 -- --
----------------- ----------------- ------------------
TOTAL OPERATING REVENUES 36,110,703 1,448,257 13,286,124
----------------- ----------------- ------------------
OPERATING EXPENSES
COST OF ASSETS SOLD 49,726 -- --
COST OF LAND SOLD 23,696,669 -- 5,590,797
COST OF HOMES SOLD (1,685,689) -- --
LAND PROJECT COSTS 2,148,254 -- 346,884
COMMERCIAL PROPERTIES 3,588,341 -- --
GENERAL & ADMINISTRATIVE 8,273,501 -- 377,161
UTILITY EXPENSE -- 1,288,886 --
RESORT OPERATIONS 69,436 -- --
DEPRECIATION & AMORTIZATION 668,010 233,190 563
----------------- ----------------- ------------------
TOTAL OPERATING EXPENSES 36,808,248 1,522,076 6,315,405
----------------- ----------------- ------------------
NET OPERATING INCOME (697,545) (73,819) 6,970,719
----------------- ----------------- ------------------
OTHER INCOME AND GAINS:
EQUITY IN JOINT VENTURES 3,399,538 -- --
INTEREST INCOME 399,334 6,716 212,962
----------------- ----------------- ------------------
TOTAL OTHER INCOME AND GAINS 3,798,872 6,716 212,962
----------------- ----------------- ------------------
INTEREST EXPENSE
INTEREST EXPENSE 4,332,252 26,872 330,309
LESS: CAPITALIZED INTEREST (2,865,470) -- (315,036)
----------------- ----------------- ------------------
TOTAL INTEREST EXPENSE 1,466,782 26,872 15,273
----------------- ----------------- ------------------
NET INCOME BEFORE MINORITY INTEREST 1,634,545 (93,975) 7,168,408
MINORITY INTEREST 2,216,127 -- --
================= ================= ==================
NET INCOME/(LOSS) $ (581,582) $ (93,975) $ 7,168,408
================= ================= ==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION PVGC SCM S HOMES
- - ------------------------------------------------ ------------------ ----------------- -----------------
<S> <C> <C> <C>
REVENUES:
SALE OF ASSETS $ -- $ -- $ --
DEFERRED PROFIT -- -- --
LAND SALES -- -- --
HOME SALES -- 18,566,949 45,860,575
COMMERCIAL PROPERTIES 2,137,042 -- --
UTILITY SALES -- -- --
MANAGEMENT FEES -- -- --
------------------ ----------------- -----------------
TOTAL OPERATING REVENUES 2,137,042 18,566,949 45,860,575
------------------ ----------------- -----------------
OPERATING EXPENSES
COST OF ASSETS SOLD -- -- --
COST OF LAND SOLD -- -- --
COST OF HOMES SOLD -- 18,136,772 42,738,830
LAND PROJECT COSTS -- -- --
COMMERCIAL PROPERTIES 1,753,380 -- --
GENERAL & ADMINISTRATIVE -- 409,754 4,336,226
UTILITY EXPENSE -- -- --
RESORT OPERATIONS -- -- --
DEPRECIATION & AMORTIZATION 162,495 4,084 162,030
------------------ ----------------- -----------------
TOTAL OPERATING EXPENSES 1,915,875 18,550,610 47,237,086
------------------ ----------------- -----------------
NET OPERATING INCOME 221,167 16,339 (1,376,511)
------------------ ----------------- -----------------
OTHER INCOME AND GAINS:
EQUITY IN JOINT VENTURES -- -- --
INTEREST INCOME -- -- 16,599
------------------ ----------------- -----------------
TOTAL OTHER INCOME AND GAINS -- -- 16,599
------------------ ----------------- -----------------
INTEREST EXPENSE
INTEREST EXPENSE 120,175 -- --
LESS: CAPITALIZED INTEREST -- -- --
------------------ ----------------- -----------------
TOTAL INTEREST EXPENSE 120,175 -- --
------------------ ----------------- -----------------
NET INCOME BEFORE MINORITY INTEREST 100,992 16,339 (1,359,912)
MINORITY INTEREST -- -- --
================== ================= =================
NET INCOME/(LOSS) $ 100,992 $ 16,339 $ (1,359,912)
================== ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RANCHO ELIMINATING
ACCOUNT DESCRIPTION WWOS VIEJO ENTRIES
- - ------------------------------------------------ ------------------ ------------------ -----------------
<S> <C> <C> <C>
REVENUES:
SALE OF ASSETS $ -- $ -- $ --
DEFERRED PROFIT -- -- --
LAND SALES -- -- --
HOME SALES -- -- (18,566,949) A
COMMERCIAL PROPERTIES 2,005,457 -- --
UTILITY SALES -- -- --
MANAGEMENT FEES -- -- --
------------------ ------------------ -----------------
TOTAL OPERATING REVENUES 2,005,457 -- (18,566,949)
------------------ ------------------ -----------------
OPERATING EXPENSES
COST OF ASSETS SOLD -- -- --
COST OF LAND SOLD -- -- --
COST OF HOMES SOLD -- -- (18,566,949) A
LAND PROJECT COSTS -- -- --
COMMERCIAL PROPERTIES 1,082,120 -- --
GENERAL & ADMINISTRATIVE -- 13,894 --
UTILITY EXPENSE -- -- --
RESORT OPERATIONS -- -- --
DEPRECIATION & AMORTIZATION 850,975 -- --
------------------ ------------------ -----------------
TOTAL OPERATING EXPENSES 1,933,095 13,894 (18,566,949)
------------------ ------------------ -----------------
NET OPERATING INCOME 72,362 (13,894) --
------------------ ------------------ -----------------
OTHER INCOME AND GAINS:
EQUITY IN JOINT VENTURES -- -- --
INTEREST INCOME 5,622 -- --
------------------ ------------------ -----------------
TOTAL OTHER INCOME AND GAINS 5,622 -- --
------------------ ------------------ -----------------
INTEREST EXPENSE
INTEREST EXPENSE 1,327,300 -- --
LESS: CAPITALIZED INTEREST (166,760) -- --
------------------ ------------------ -----------------
TOTAL INTEREST EXPENSE 1,160,540 -- --
------------------ ------------------ -----------------
NET INCOME BEFORE MINORITY INTEREST (1,082,556) (13,894) --
MINORITY INTEREST -- -- --
================== ================== =================
NET INCOME/(LOSS) $ (1,082,556) $ (13,894) $ --
================== ================== =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED
ACCOUNT DESCRIPTION INCOME
- - ------------------------------------------------ ------------------
<S> <C>
REVENUES:
SALE OF ASSETS $ 30,633
DEFERRED PROFIT (72,275)
LAND SALES 43,448,479
HOME SALES 45,860,575
COMMERCIAL PROPERTIES 8,803,015
UTILITY SALES 1,448,257
MANAGEMENT FEES 1,329,474
------------------
TOTAL OPERATING REVENUES 100,848,158
------------------
OPERATING EXPENSES
COST OF ASSETS SOLD 49,726
COST OF LAND SOLD 29,287,466
COST OF HOMES SOLD 40,622,964
LAND PROJECT COSTS 2,495,138
COMMERCIAL PROPERTIES 6,423,841
GENERAL & ADMINISTRATIVE 13,563,521
UTILITY EXPENSE 1,135,901
RESORT OPERATIONS 69,436
DEPRECIATION & AMORTIZATION 2,081,347
------------------
TOTAL OPERATING EXPENSES 95,729,340
------------------
NET OPERATING INCOME 5,118,818
------------------
OTHER INCOME AND GAINS:
EQUITY IN JOINT VENTURES 3,399,538
INTEREST INCOME 641,233
------------------
TOTAL OTHER INCOME AND GAINS 4,040,771
------------------
INTEREST EXPENSE
INTEREST EXPENSE 6,136,908
LESS: CAPITALIZED INTEREST (3,347,266)
------------------
TOTAL INTEREST EXPENSE 2,789,642
------------------
NET INCOME BEFORE MINORITY INTEREST 6,369,947
MINORITY INTEREST 2,216,127
==================
NET INCOME/(LOSS) $ 4,153,820
==================
A. HOME SALES 18,566,949
COST OF HOME SALES 18,136,772
COST OF HOME SALES (SCM MARGIN) 430,177
ELIMINATE INTERCOMPANY SALES AND PROFITS BETWEEN SCM AND SUNCOR HOMES
EXHIBIT A PAGE 9 of 12
</TABLE>
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1996 ELIMINATING ENTRIES
DEBIT CREDIT
K. LPSCO EQUITY 8,111,457
EARNED SURPLUS - CURRENT 19,237
INVESTMENT IN LPSCO 8,277,474
DEFERRED TAXES 146,780
ELIMINATE SDC INVESTMENT IN LPSCO
L LONG-TERM NOTES PAYABLE 300,000
LONG-TERM NOTES RECEIVABLE 300,000
ELIMINATE LPSCO INTERCOMPANY NOTE WITH SDC
M ACCOUNTS PAYABLE 85,521
ACCOUNTS RECEIVABLE 85,521
ELIMINATE LPSCO INTERCOMPANY A/R WITH SDC
N SMLP EQUITY 9,137,773
EARNED SURPLUS - CURRENT 7,168,410
MINORITY INTEREST - PRIOR YEAR 2,606,888
MINORITY INTEREST - CURRENT YEAR 2,508,944
SMLP LAND 83,503
INVESTMENT IN SMLP 11,106,848
ELIMINATE SDC INVESTMENT IN SMLP
O ACCOUNTS PAYABLE 18,333
ACCOUNTS RECEIVABLE 18,333
ELIMINATE SMLP INTERCOMPANY A/R WITH SDC
P SASI EQUITY 395,469
EARNED SURPLUS - CURRENT 4,468
ACCOUNTS PAYABLE 172
INVESTMENT IN SASI 400,109
ELIMINATE SDC INVESTMENT IN SASI
Q EARNED SURPLUS - CURRENT 100,993
PALM VALLEY EQUITY 6,452,937
INVESTMENT IN PV GOLF CLUB 6,553,930
ELIMINATE SDC INVESTMENT IN PALM VALLEY GOLF
R ACCOUNTS PAYABLE 4,021,827
ACCOUNTS RECEIVABLE 4,021,827
ELIMINATE PVGC INTERCOMPANY A/R WITH SDC
S WWOS EQUITY 7,711,135
1994 CAPITALIZED INTEREST 344,558
DEVELOPMENT FEES 106,840
EARNED SURPLUS - CURRENT 1,101,590
INVESTMENT IN WWOS 5,501,073
BASIS DIFFERENTIAL IN LAND PH1 854,972
BASIS DIFFERENTIAL IN BLDG 156,750
BASIS DIFFERENTIAL IN LAND PH2 548,148
ELIMINATE SDC INVESTMENT IN WIGWAM OUTLET STORES
T INTEREST PAYABLE 72,611
<PAGE>
INTEREST RECEIVABLE 72,611
NOTES PAYABLE 1,611,156
NOTES RECEIVABLE 1,611,156
NOTES PAYABLE 10,000,000
NOTES RECEIVABLE 10,000,000
ELIMINATE WWOS INTERCOMPANY NOTES AND INTEREST WITH SDC
U ACCOUNTS PAYABLE 18,733
ACCOUNTS RECEIVABLE 18,733
ELIMINATE WWOS INTERCOMPANY A/R WITH SDC
V KABUTO JV EQUITY 12,560,226
MINORITY INTEREST 3,834,535
INVESTMENT IN KABUTO JV 5,769,120
KABUTO JV LAND 2,956,571
ELIMINATE SDC INVESTMENT IN KABUTO JV
W ACCOUNTS PAYABLE --
ACCOUNTS RECEIVABLE --
ELIMINATE KABUTO JV INTERCOMPANY A/R WITH SDC
X COMMERCIAL OPERATIONS - GENERAL A/P 5,051,459
COMMERCIAL OPERATIONS - OUTER LIMITS A/P 58,140
COMMERCIAL OPERATIONS - FIDDLESTICKS A/P 3,685,231
COMMERCIAL OPERATIONS - FUNTASTICKS A/P 4,590,012
SUNCOR COMMERCIAL OPS - GENERAL A/R 5,051,459
SUNCOR COMMERCIAL OPS - OUTER LIMITS A/R 58,140
SUNCOR COMMERCIAL OPS - FIDDLESTICKS A/R 3,685,231
SUNCOR COMMERCIAL OPS - FUNTASTICKS A/R 4,590,012
ELIMINATE COMMERCIAL OPERATIONS INTERCOMPANY A/R WITH SDC
Y COMMERCIAL OPERATIONS EQUITY 1,822,515
EARNED SURPLUS - CURRENT 257,869
INVESTMENT IN OUTER LIMITS 1,668,979
INVESTMENT IN FIDDLESTICKS 31,249
INVESTMENT IN FUNTASTICKS 43,535
INVESTMENT IN PV PAVILLIONS 100
INVESTMENT IN PV CROSSING 31,673
INVESTMENT IN COMM OPS 5,351
INVESTMENT IN AUTOPLEX 286
INVESTMENT IN TALAVI 2,841
ELIMINATE SDC INVESTMENT IN COMMERCIAL OPERATIONS
Z ACCOUNTS PAYABLE 174,208
ACCOUNTS RECEIVABLE 174,208
ELIMINATE HIDDEN HILLS INTERCOMPANY A/R WITH SDC
AA ACCOUNTS PAYABLE 756,736
ACCOUNTS RECEIVABLE 756,736
ELIMINATE RANCO VIEJO INTERCOMPANY A/R WITH SDC
BB INVESTMENT IN RANCHO VIEJO 13,893
EARNED SURPLUS - CURRENT 13,893
ELIMINATE SDC INVESTMENT IN RANCHO VIEJO JV
84,636,621 84,636,621
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1996 ELIMINATING ENTRIES
<TABLE>
<CAPTION>
G/L Debit Credit
- - ------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
(A)
SHI - 12201 a SHI A/P TO SCM 2,459,254
SCM-12201 b SCM A/R FROM SHI 2,459,254
(B)
SCM-12901 c SCM INTERCO A/P TO SHI - GHH 4,144,605
SHI - 12901 d SHI INTERCO A/R FROM SCM - GHH 4,144,605
(C)
SHI - 12902 e SHI INTERCO A/P TO SCM - GENTRY 2,379,358
SCM-12902 f SCM INTERCO A/R FROM SHI - GENTRY 2,379,358
TO ELIMINATE INTERCO RECEIVABLES/PAYABLES
BETWEEN HOMEBUILDING COMPANIES
(D)
SCM-12903 g SCM INTERCO A/P TO SDC - GENTRY 4,663,344
SHI - 265 h SHI INTERCO NOTE TO SDC - ACQUISITION 1,432,265
SHI - 12903 i SHI INTERCO A/R FROM SDC - GENTRY 1,766,003
1000-206575 j SDC A/R FROM SCM 4,204,106
1000-107230 k SDC A/R FROM S HOMES 125,501
(E)
(E)
SCM-267 l GOLDEN HERITAGE CASH ADVANCES FROM SDC 11,692,358
1000-107260 m SDC CASH ADVANCES TO GOLDEN HERITAGE 11,692,358
(F)
SCM-267 n SCM INTERCO NOTE TO SDC - GH INTEREST 71,856
SCM-268 o SCM INTERCO NOTE TO SDC - SH INTEREST 63,790
1000-107255 p SDC INTERCO INTEREST A/R FROM HOMEBUILDING 135,646
(G)
SHI - 129 q SHI INTERCO PAYABLE TO SDC 2,825
SHI - 234 r SHI INTERCO PAYROLL PAYABLE TO SDC 8,733
SHI - 240 s SHI INTERCO PAYROLL PAYABLE TO SDC 13,600
SHI - 275 t SHI INTERCO INTEREST PAYABLE TO SDC 17,307
1000-107250 u SDC A/R FROM GOLDEN HERITAGE 42,465
TO ELIMINATE INTERCO RECEIVABLES/PAYABLES
BETWEEN HOMEBUILDING COMPANIES AND SDC
(H)
1000-176135 v SDC INVESTMENT IN SHI - GOLDEN HERITAGE 1,794,677
1000-176132 w SDC INVESTMENT IN SHI - SUNCOR HOMES 223,493
SHI - P&L x SHI CURRENT YEAR LOSS 1,359,913
SHI - B/S y SHI ACCUMULATED LOSSES 211,271
TO ELIMINATE INVESTMENT IN SHI ON SDC BOOKS
SCM-P&L z SCM CURRENT YEAR INCOME (I) 16,339
SCM aa SCM ACCUMULATED INCOME 379,286
1000-206576 bb SDC INVESTMENT IN SCM 395,624
TO ELIMINATE INVESTMENT IN SCM ON SDC BOOKS
1000-235990 cc DEFERRED INTERCO PROFIT (J) 1,075,417
HOME INVENTORY 1,075,417
TO ELIMINATE BALANCE SHEET GROSS UP ON INTERCO
LOT SALES BETWEEN SDC AND HOMEBUILDING
TOTALS 30,215,014 30,215,014
</TABLE>
<PAGE>
EXHIBIT B Financial Data Schedule
The Claimant submits the following consolidated financial information:
1. Total Assets: $6,989,289,000
2. Total Operating Revenues: $1,817,760,000
3. Net Income: $181,180,000
14
<PAGE>
EXHIBIT D
Map of the state of Arizona showing the following:
APS Service Area;
Major APS Power Plants, including joint ownership;
Principal APS Transmission Lines; and
Transmission Lines Operated for Others.
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