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-3A-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. The following are the subsidiaries of the
Claimant:
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. APS Energy Services Company, Inc. ("APSES") -- an Arizona corporation
having been incorporated on November 6, 1998 and having its principal
executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was
organized primarily to sell energy, products and services. APSES is a
wholly-owned subsidiary of the Claimant.
c. SunCor Development Company ("SunCor") - an Arizona corporation having
been incorporated on June 30, 1965 and having its
2
<PAGE>
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.
(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, Sanctuary
Gold Club at West World 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 111 West Wigwam Boulevard, 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) Golden Heritage Homes, Inc. ("Golden Heritage Homes") --
(previously named "SunCor Homes, Inc.", "LGR, Inc." and "WGP Realty,
Inc.") an Arizona corporation having been incorporated on May 14, 1986
and having its principal executive offices at 7025 East Greenway
Parkway, Suite 100, Scottsdale, Arizona 85254, was organized to
provide brokerage and realty services in the sale of commercial and
residential real property. Golden Heritage Homes is a wholly-owned
subsidiary of SunCor.
(i) Golden Heritage Construction, Inc. ("GH Construction") -- an
Arizona corporation having been incorporated on December 30, 1993
and having its principal executive offices at 3838 North Central
Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to
serve as a general residential contractor. GH Construction became
a wholly-owned
3
<PAGE>
subsidiary of Golden Heritage 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, 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. Golf de Mexico has been inactive since 1997.
(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
management 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 1590-B Pacheco Street, Santa Fe, New
Mexico 87505, was organized to engage in real estate development in
New Mexico. Rancho Viego is a wholly-owned subsidiary of SunCor.
4
<PAGE>
(9) Ranchland Utility Company ("Ranchland") -- a New Mexico
corporation having been incorporated on September 5, 1997 and having
its principal executive offices at 1590-B Pacheco Street, Santa Fe,
New Mexico 87505 is a waste water utility. Ranchland is a wholly-owned
subsidiary of Rancho Viejo.
d. 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 800, 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.
e. Pinnacle West Energy Corporation ("PWEC") - an Arizona corporation
having been incorporated on September 27, 1999, and having its principal
executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was
organized primarily for the development, production and sale of wholesale
energy. PWEC is a wholly-owned subsidiary of the Claimant.
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
3,986,900 kilowatts, comprised as follows:
Coal: Capacity (kW)
----------
Units 1, 2 and 3 at Four Corners,
aggregating................................................. 560,000
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
Gas or Oil:
Two steam units at Ocotillo and two steam
units at Saguaro, aggregating............................... 435,000(1)
Eleven combustion turbine units,
aggregating................................................. 493,000
Three combined cycle units,
aggregating................................................. 255,000
----------
1,183,000
Nuclear:
29.1 % owned or leased Units 1, 2 and 3
at Palo Verde, representing 1,086,300
==========
Other 5,600
==========
- ----------
(1) West Phoenix steam units (108,300 kw) are currently mothballed.
6
<PAGE>
APS' transmission facilities consist of approximately 5,273 pole miles of
overhead lines and approximately 23 miles of underground lines, all of which are
located within the State of Arizona. APS' distribution facilities consist of
approximately 11,541 pole miles of overhead lines and approximately 10,711 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:
(DATA IS NOT MAINTAINED IN A FORMAT IDENTIFYING THE STATE IN WHICH THE SALES AND
PURCHASES ARE MADE OR THE AMOUNT OF THEIR ASSOCIATED REVENUES OR EXPENSES.)
a. NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT RETAIL OR WHOLESALE), AND
MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL.
36,768,404,000 kwh of electric energy sold at wholesale or
retail
0 Mcf. of natural or manufactured gas distributed at
wholesale or retail
b. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR
MANUFACTURED GAS DISTRIBUTED AT RETAIL OUTSIDE THE STATE IN WHICH EACH SUCH
COMPANY IS ORGANIZED.
73,792,000 kwh of electric energy was distributed at retail
outside Arizona
0 Mcf. of natural or manufactured gas distributed at retail
outside Arizona
7
<PAGE>
c. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR
MANUFACTURED GAS SOLD AT WHOLESALE OUTSIDE THE STATE IN WHICH EACH SUCH
COMPANY IS ORGANIZED, OR AT THE STATE LINE.
964,100 kwh of electric energy was sold at wholesale outside
Arizona or at state line (excluding power marketing
activities).
0 Mcf. of natural or manufactured gas sold at wholesale
outside Arizona or at state line (excluding power marketing
activities).
d. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR
MANUFACTURED GAS PURCHASED OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS
ORGANIZED OR AT THE STATE LINE.
1,337,740,000 kwh of electric energy was purchased outside
Arizona or at state line (excluding power marketing
activities).
23,829,168 Mcf. of natural or manufactured gas purchased
outside Arizona or at state line (excluding power marketing
activities).
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
8
<PAGE>
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.
9
<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, El
Dorado Investment Company, and APS Energy Services Company, Inc. 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.
10
<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.
11
<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.
12
<PAGE>
EXHIBIT D
In accordance with Item 304 of Regulation S-T of the Securities Exchange
Act of 1934, APS' Service Territory map contained as Exhibit D to this Form
U-3A-2 is a map of the State of Arizona showing APS' service area, the location
of its major power plants and principal transmission lines, and the location of
transmission lines operated by APS for others. The major power plants shown on
such map are the Navajo Generating Station located in Coconino County, Arizona;
the Four Corners Power Plant located near Farmington, New Mexico; the Cholla
Power Plant, located in Navajo County, Arizona; the Yucca Power Plant, located
near Yuma, Arizona; and the Palo Verde Nuclear Generating Station, located about
55 miles west of Phoenix, Arizona (each of which plants is reflected on such map
as being jointly owned with other utilities), as well as the Ocotillo Power
Plant and West Phoenix Power Plant, each located near Phoenix, Arizona, and the
Saguaro Power Plant, located near Tucson, Arizona. APS' major transmission lines
shown on such map are reflected as running between the power plants named above
and certain major cities in the State of Arizona. The transmission lines
operated for others shown on such map are reflected as running from the Four
Corners Plant through a portion of northern Arizona to the California border.
13
<PAGE>
The above-named Claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 29th day of February, 2000.
Pinnacle West Capital corporation
----------------------------------------
(Name of Claimant)
By Barbara M. Gomez
-------------------------------------
Barbara M. Gomez
Treasurer
[CORPORATE SEAL]
Attest:
Suzanne Debes
- ---------------------------------------
Suzanne Debes
Associate Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Barbara M. Gomez Treasurer
- ---------------- ---------
(Name) (Title)
400 North Fifth Street, Station 9996, Phoenix, Arizona 85004
- ------------------------------------------------------------
(Address)
14
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
EXHIBIT B
FINANCIAL DATA SCHEDULE
HOLDING COMPANY REPORT
12/31/99
The Claimant submits the following consolidated financial information:
1 Total Assets: $6,608,506,000
2 Total Operating Revenues: $2,423,353,000
3 Net Income: $ 167,887,000
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET (UNAUDITED)
DECEMBER 31, 1999
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PWCC APS SUNCOR ELDO
----------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,057 $ 7,477 $ 7,900 $ 2,863
Customer and other receivables - net 496 235,851 7,277 2,746
Accrued utility revenue 72,919
Materials and supplies 69,977
Fossil fuel 21,869
Deferred income taxes 0 8,163 8,000 0
Other current assets 290 30,885 30,118 0
----------------------------------------------
Total current assets 2,843 447,141 53,295 5,609
----------------------------------------------
INVESTMENTS AND OTHER ASSETS
Real estate investments, net (cap interest) 1145.1 343,747
Other assets 2,349,257 208,457 9,020 31,006
----------------------------------------------
Total investments and other 2,349,257 208,457 352,767 31,006
----------------------------------------------
PROPERTY, PLANT AND EQUIPMENT
plant in service 7,545,575
Nuclear Fuel 49,114
Construction work in progress 20,273 184,763
----------------------------------------------
Total 20,273 7,779,452
Less accumulated depreciation and amortization 3,026,041
----------------------------------------------
Net Property, Plant and Equipment 20,273 4,753,411
----------------------------------------------
DEFERRED DEBITS
Deferred income taxes 25,257
Regulatory assets 613,729
Other deferred debits 1,009 94,886 10,826 0
----------------------------------------------
Total deferred debits 1,009 708,615 36,083 0
----------------------------------------------
TOTAL ASSETS $2,373,382 $6,117,624 $ 442,145 $ 36,615
==============================================
<CAPTION>
*ELIMINATIONS AND ADJUSTING ENTRIES*
ENERGY ----------------------------------
SERVICES DEBIT CREDIT TOTAL
----------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 408 $ 20,705
Customer and other receivables - net 133 --(n) 1,904 (b,d,l,p,q) 244,599
Accrued utility revenue 72,919
Materials and supplies 69,977
Fossil fuel 21,869
Deferred income taxes 8,000 (o) 8,163
Other current assets 731 (c) 60,562
----------------------------------------------------------
Total current assets 541 0 10,635 498,794
----------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Real estate investments, net (cap interest) 1145.1 5,450(f) 4,904 (e) 344,293
Other assets 2,330,282 (a,f,h,m,n) 267,458
----------------------------------------------------------
Total investments and other 0 5,450 2,335,186 611,751
----------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT
plant in service 739 7,546,314
Nuclear Fuel 49,114
Construction work in progress 4,245 209,281
----------------------------------------------------------
Total 4,984 7,804,709
Less accumulated depreciation and amortization 153 3,026,194
----------------------------------------------------------
Net Property, Plant and Equipment 4,831 4,778,515
----------------------------------------------------------
DEFERRED DEBITS
Deferred income taxes 25,257 (o) --
Regulatory assets 613,729
Other deferred debits 5(h) 1,009 (j) 105,717
----------------------------------------------------------
Total deferred debits 0 5 26,266 719,446
----------------------------------------------------------
TOTAL ASSETS $ 5,372 $ 5,455 $2,372,087 $6,608,506
==========================================================
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
December 31, 1999
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PWCC APS SUNCOR ELDO
----------------------------------------------
<S> <C> <C> <C> <C>
LIABIITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,409 $ 170,663 $ 11,200 $ 88
Accrued taxes 62,858 8
Accrued interest 277 32,299 677
Dividend payable -- --
Short-term borrowings -- --
Commerical paper, net -- 38,300
Current maturities of long-term debt 114,711 87
Deferred fuel
Customer Deposits 24,682 1,416
Other current liabilities 3,839 26,248 1,292 361
----------------------------------------------
Total current liabilities 6,525 469,761 14,672 457
----------------------------------------------
NON-CURRENT LIABILITIES
Long-term debt less current maturities 106,000 1,997,400 102,652
----------------------------------------------
Total 106,000 1,997,400 102,652 --
----------------------------------------------
DEFERRED CREDITS AND OTHER
Deferred income taxes 38,865 1,178,085 7,774
Deferred investment tax credit 2123.1 4,839
Unamortized gain-sale of utility plant 73,212
Other deferred credits 16,259 411,154 8,901
----------------------------------------------
Total deferred credits 55,124 1,667,290 8,901 7,774
----------------------------------------------
COMMITMENTS AND CONTINGENCIES (NOTE)
MINORITY INTERESTS:
Joint Ventures of SunCor 4,904
COMMON STOCK EQUITY:
Common stock 2,010,550 1,424,966 376,391 28,046
Accumulated deficit 195,183 558,207 (65,375) 338
----------------------------------------------
Total 2,205,733 1,983,173 311,016 28,384
----------------------------------------------
TOTAL LIABILITIES AND EQUITY $2,373,382 $6,117,624 $ 442,145 $ 36,615
==============================================
<CAPTION>
ENERGY *ELIMINATIONS*
SERVICES DEBIT CREDIT TOTAL
----------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABIITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 3,118 $ 954 (l,p) $ 186,524
Accrued taxes (7,612)(k) 32(k,i) 70,510
Accrued interest 33,253
Dividend payable (d) 0
Short-term borrowings (m) 0
Commerical paper, net 38,300
Current maturities of long-term debt 114,798
Deferred fuel 0
Customer Deposits 26,098
Other current liabilities 5,733 (b,c,g,l,q) 26,007
----------------------------------------------------------------
Total current liabilities 3,118 (925) 32 495,490
----------------------------------------------------------------
NON-CURRENT LIABILITIES
Long-term debt less current maturities 2,206,052
----------------------------------------------------------------
Total -- -- 2,206,052
----------------------------------------------------------------
DEFERRED CREDITS AND OTHER
Deferred income taxes (k) (40,869)(k,o) 1,183,855
Deferred investment tax credit 2123.1 1,009 (j) 3,830
Unamortized gain-sale of utility plant 73,212
Other deferred credits 4,020 (g) 440,334
----------------------------------------------------------------
Total deferred credits 1,009 (36,849) 1,701,231
----------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES (NOTE)
MINORITY INTERESTS:
Joint Ventures of SunCor 4,904 (e) 0
COMMON STOCK EQUITY:
Common stock 11,444 2,313,948 (a) 1,537,449
Accumulated deficit (9,190) (10,879)(a) 668,284
----------------------------------------------------------------
Total 2,254 2,313,948 (10,879) 2,205,733
----------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY $ 5,372 $2,318,936 $ (47,696) $6,608,506
================================================================
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
ELIMINATING AND ADJUSTING ENTRIES
<TABLE>
<S> <C> <C> <C>
(a) Common stock $2,313,948
Accumulated deficit $ 10,879
Other investments 2,324,827
To eliminate PNW investment in subsidiaries
Common Earnings/
Stock Dividends Total
---------- ---------- ----------
APS $1,898,067 $ 85,106 $1,983,173
Energy Services 11,444 (9,190) $ 2,254
SunCor 376,391 (65,375) 311,016
El Dorado 28,046 338 28,384
---------- ---------- ----------
Total $2,313,948 $ 10,879 $2,324,827
========== ========== ==========
(b) Other current liabilities $ 496
Customer and other receivables - net $ 496
To eliminate intercompany receivables/payables
A/R A/P
PNW Subs Books
---------- ----------
APS $ 189 $ 189
Energy Services 212 212
SunCor 29 29
El Dorado 66 66
---------- ----------
Total $ 496 $ 496
========== ==========
(c) Other current liabilities $ 731
Other current assets $ 731
To eliminate PNW payable to APS
(e) Minority interest $ 4,904
Real estate investments - net $ 4,904
To eliminate minority interest of SunCor JV partners
(f) Real estate investments - net $ 5,450
Other - assets $ 5,450
To reclass PNW capitalized interest related to SunCor
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
(g) Other current liabilities $ 4,020
Other deferred credits $ 4,020
To reclass PNW deferred comp to long-term
(h) Other deferred debits $ 5
Other - assets $ 5
To relcass PNW unamortized debt to long-term
(i) Accounts payable $ 32
Accrued taxes $ 32
To relcass PNW property tax
(j) Deferred investment tax credit $ 1,009
Other deferred debits $ 1,009
To relcass PNW ITC from Deferred taxes to Deferred ITC
(k) Accrued taxes $ (11,825)
Other deferred debits $ (11,825)
To relcass PNW accrued taxes
(o) Deferred income taxes-current portion $ 8,000
Deferred income taxes-noncurrent portion 25,257
Deferred income taxes $ 33,257
(p) Energy Services due to APS $ 922
APS due from Energy Services $ 922
(q) Other current liabilities $ 486
Other receivables $ 486
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT (UNAUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 1999
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
PWCC APS SUNCOR ELDO
--------- ---------- -------- -------
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Electric $2,292,798
Real Estate 130,169
-------------------------------------------
Total -- 2,292,798 130,169 --
-------------------------------------------
FUEL EXPENSES:
Fuel for electric generation 243,849
Purchased power 551,645
-------------------------------------------
Total -- 795,494 -- --
-------------------------------------------
OPERATING EXPENSES:
Utility operations and maintenance 437,729
Real estate operations 118,805
Depreciation and amortization 266 382,057 3,092 --
Taxes other than income taxes 96,579
-------------------------------------------
Total 266 916,365 121,897 --
-------------------------------------------
OPERATING INCOME (266) 580,939 8,272 --
-------------------------------------------
OTHER INCOME (DEDUCTIONS):
Interest on long-term debt (5,661) (132,676) (8,058) --
Other interest (517) (15,595) -- --
Capitalized interest 240 6,679 4,745
Preferred stock dividend requirements (1,016)
Other, net 132,814 (11,537) 5,185 19,257
-------------------------------------------
Total 126,876 (154,145) 1,872 19,257
-------------------------------------------
Income from continuing operations b4 income taxes 126,610 426,794 10,144 19,257
Income Tax Expense (Benefit) (3,277) 159,488 4,080 7,774
-------------------------------------------
Income from continuing operations 129,887 267,306 6,064 11,483
Extraordinary charge -- (139,885)
discontinued operations 38,000
-------------------------------------------
NET INCOME (L0SS) 167,887 127,421 6,064 11,483
===========================================
<CAPTION>
ADJUSTMENTS & ELIMINATIONS
ENERGY -----------------------
SERVICES DEBIT CREDIT TOTAL
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Electric 386 $ -- (f) 2,293,184
Real Estate 130,169
---------------------- -------- ---------
Total 386 -- -- 2,423,353
---------------------- -------- ---------
FUEL EXPENSES:
Fuel for electric generation 243,849
Purchased power 615 -- (f) 552,260
---------------------- -------- ---------
Total 615 -- -- 796,109
---------------------- -------- ---------
OPERATING EXPENSES:
Utility operations and maintenance 9,048 446,777
Real estate operations 711 (b) -- (d) 119,516
Depreciation and amortization 153 385,568
Taxes other than income taxes 27 (c,d) 96,606
---------------------- -------- ---------
Total 9,201 738 -- 1,048,467
---------------------- -------- ---------
OPERATING INCOME (9,430) (738) -- 578,777
---------------------- -------- ---------
OTHER INCOME (DEDUCTIONS):
Interest on long-term debt (146,395)
Other interest 126 (e) (15,986)
Capitalized interest 11,664
Preferred stock dividend requirements (1,016)
Other, net 239 135,903 (a,e) 738 (b,c) 10,793
---------------------- -------- ---------
Total 239 135,903 864 (140,940)
---------------------- -------- ---------
Income from continuing operations b4 income taxes (9,191) 136,641 864 437,837
Income Tax Expense (Benefit) 168,065
---------------------- -------- ---------
Income from continuing operations (9,191) 136,641 864 269,772
Extraordinary charge (139,885)
discontinued operations 38,000
---------------------- -------- ---------
NET INCOME (L0SS) (9,191) 136,641 864 167,887
====================== ======== =========
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
ELIMINATING ENTRIES
(a) Other - net (Subs income) $135,777
Retained Earnings $135,777
To eliminate PWCC Equity in earnings from subsidiairies
PWCC
--------
APS $127,421
APS Extraordinary Chg 0
Energy Services (9,191)
SunCor 6,064
El Dorado 11,483
--------
Total $135,777
========
(b) Real Estate Operations $ 711
Interest Expense (PWCC) $ 711
To reclass Capitalized Interest for SunCor Land Sales.
(c) Taxes other than income taxes $ 27
Other - net $ 27
To reclass PNW property taxes
(e) Other, net (El Dorado interest income) $ 126
Other interest $ 126
To eliminate interest on ELD loan to PNW
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATED BALANCE SHEET (UNAUDITED)
FOR THE MONTH ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
1000 SCOTT D. ANDY D. TERRY O. 3500 LINDA H.
ACCOUNT DESCRIPTION SUNCOR LPSCO RANCHLAND SASI SMLP PVGC
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 6,814,271 1,551,346 287,653 317,208 1,495,236 (16,650)
ACCOUNTS RECEIVABLE 409,109 1,591,526 2,922 94,972 303,750 38,691
INTERCOMPANY ACCOUNTS:
SASI
LPSCO 36,630
SMLP 20,006
PVGC 3,566,740
WWOS (147,949)
GOLDEN HERITAGE - GENERAL 129 1,164,402
SCM-GENERAL 129 5,386,541
HOMEBUILDING I/C INTEREST 12904 4,259,103
HOMEBUILDING CASH ADVANCES 13,617,899
COMMERCIAL - GENERAL
SUNRIDGE - DEVELOPMENT 10,985
SUNRIDGE - GOLF 183,387
SEDONA - DEVELOPMENT 123,201
SEDONA - GOLF 131,247
WIGWAM RESORT 304,244
HFS FINANCIAL SERVICES 4,712
SANCTUARY GOLF 116,967
INTEREST RECEIVABLE 358,026
NOTES RECEIVABLE 3,242,262
INVENTORIES 77,335
PREPAID EXPENSES 16,718 86,017
HOME INVENTORY 6,888
DEFERRED INCOME TAXES 8,000,000
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 44,058,649 3,142,872 290,575 412,180 1,798,986 3,752,133
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON
HIDDEN HILLS
RANCHO VIEJO
PALM VALLEY
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS
SCOTTSDALE MOUNTAIN 2,990,878
MARKETPLACE - AUTOPLEX
TATUM RANCH 2,296,981
TALAVI
WIGWAM OUTLET STORES
GOLDEN HERITAGE LAND
BILTMORE ESTATES
BLACK CANYON COMMERCE PARK
OTHER COMMERCIAL LAND
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP
INVEST IN KYRENE ASSOCIATES LLC
INVEST IN PV APARTMENTS (I & II)
INVESTMENT IN SUNRIDGE CANYON LLC 4,733,057
INVESTMENT IN SEDONA GOLF LC 4,532,343
INVESTMENT IN PLUMCOR REALTY LLC
INVEST IN TALAVI ASSOCIATES LLC
INVESTMENT IN WESTWORLD GOLF 2,462,925
INVESTMENT IN HFS MORTGAGE
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV 5,989,478
INVESTMENT IN WIGWAM OUTLET LLC
INVEST IN SCOTTS MTN LTD PART 3,661,279
INVEST IN GOLDEN HERITAGE 2,360,474
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM 517,850
INVESTMENT IN LPSCO 12,370,410
INVESTMENT IN SASI
INVESTMENT IN PALM VALLEY 167,320,786
INVESTMENT IN PALM VALLEY GOLF 5,696,556
PALM VALLEY GOLF CONTRIB. CAP (3,566,740)
INVESTMENT IN RANCHO VIEJO 14,150,291
INVESTMENT IN RANCHLAND UTILITY (92,139)
INVESTMENT IN HIDDEN HILLS 8,831,359
INVESTMENT IN CORAL CANYON 9,935,792
LARRY W. 5500 5501 3300
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. H HILLS
- -------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 318,818 (528,388) 89,489 (26,250) (537,677) (504,712)
ACCOUNTS RECEIVABLE 173,037 109,951 253,504
INTERCOMPANY ACCOUNTS:
SASI
LPSCO
SMLP
PVGC
WWOS 372,210
GOLDEN HERITAGE - GENERAL 129 270,788
SCM-GENERAL 129 (5,386,541)
HOMEBUILDING I/C INTEREST 12904 (4,259,103)
HOMEBUILDING CASH ADVANCES
COMMERCIAL - GENERAL
SUNRIDGE - DEVELOPMENT
SUNRIDGE - GOLF
SEDONA - DEVELOPMENT
SEDONA - GOLF
WIGWAM RESORT
HFS FINANCIAL SERVICES
SANCTUARY GOLF
INTEREST RECEIVABLE
NOTES RECEIVABLE 141,519
INVENTORIES 53,128
PREPAID EXPENSES 31,826 85
HOME INVENTORY 28,380,385
DEFERRED INCOME TAXES
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 19,529,209 (528,304) 199,441 (26,250) 282,684 (504,712)
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON
HIDDEN HILLS 10,617,585
RANCHO VIEJO
PALM VALLEY 168,160,448 15,488,115
LITCHFIELD GREENS 216,402
VILLAGE OF LITCHFIELD GREENS 12,865,293
SCOTTSDALE MOUNTAIN
MARKETPLACE - AUTOPLEX 7,056,083
TATUM RANCH
TALAVI 2,317,465
WIGWAM OUTLET STORES 15,215,844
GOLDEN HERITAGE LAND 1,417,382
BILTMORE ESTATES
BLACK CANYON COMMERCE PARK 2,370,320
OTHER COMMERCIAL LAND 2,851,358
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP 22,699,776
INVEST IN KYRENE ASSOCIATES LLC (89,199)
INVEST IN PV APARTMENTS (I & II) 623,373
INVESTMENT IN SUNRIDGE CANYON LLC
INVESTMENT IN SEDONA GOLF LC
INVESTMENT IN PLUMCOR REALTY LLC
INVEST IN TALAVI ASSOCIATES LLC 2,428,130
INVESTMENT IN WESTWORLD GOLF
INVESTMENT IN HFS MORTGAGE
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV
INVESTMENT IN WIGWAM OUTLET LLC 3,127,396
INVEST IN SCOTTS MTN LTD PART
INVEST IN GOLDEN HERITAGE
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM
INVESTMENT IN LPSCO
INVESTMENT IN SASI 311,290
INVESTMENT IN PALM VALLEY
INVESTMENT IN PALM VALLEY GOLF
PALM VALLEY GOLF CONTRIB. CAP
INVESTMENT IN RANCHO VIEJO
INVESTMENT IN RANCHLAND UTILITY
INVESTMENT IN HIDDEN HILLS
INVESTMENT IN CORAL CANYON
CONSOLIDATING & ELIMINATING ENTRIES
---------------------------------------------------
ANDY D. 3900
ACCOUNT DESCRIPTION R. VIEJO C. CANYON REF DEBIT REF CREDIT
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS (73,037) (1,287,140)
ACCOUNTS RECEIVABLE 258,811 J,Q,X 484,456
INTERCOMPANY ACCOUNTS:
SASI
LPSCO H 36,630
SMLP J 20,006
PVGC N 3,566,740
WWOS Q,O 147,949 Q,O 372,210
GOLDEN HERITAGE - GENERAL 129 A 1,435,189
SCM-GENERAL 129 A 5,386,541 A 5,386,541
HOMEBUILDING I/C INTEREST 12904 C 4,259,103 C 4,259,103
HOMEBUILDING CASH ADVANCES B 13,617,899
COMMERCIAL - GENERAL
SUNRIDGE - DEVELOPMENT
SUNRIDGE - GOLF
SEDONA - DEVELOPMENT
SEDONA - GOLF
WIGWAM RESORT
HFS FINANCIAL SERVICES
SANCTUARY GOLF
INTEREST RECEIVABLE P 91,841
NOTES RECEIVABLE
INVENTORIES
PREPAID EXPENSES 47,961
HOME INVENTORY 2,825,908 339,614 E 1,750,166
DEFERRED INCOME TAXES
------------------------- ------------ ------------
TOTAL CURRENT ASSETS 3,011,682 (899,565) 9,793,593 31,020,780
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON 11,316,475
HIDDEN HILLS T 6,687,713
RANCHO VIEJO 10,626,364
PALM VALLEY
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS
SCOTTSDALE MOUNTAIN
MARKETPLACE - AUTOPLEX
TATUM RANCH
TALAVI
WIGWAM OUTLET STORES
GOLDEN HERITAGE LAND
BILTMORE ESTATES
BLACK CANYON COMMERCE PARK
OTHER COMMERCIAL LAND
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP
INVEST IN KYRENE ASSOCIATES LLC
INVEST IN PV APARTMENTS (I & II)
INVESTMENT IN SUNRIDGE CANYON LLC
INVESTMENT IN SEDONA GOLF LC
INVESTMENT IN PLUMCOR REALTY LLC
INVEST IN TALAVI ASSOCIATES LLC
INVESTMENT IN WESTWORLD GOLF
INVESTMENT IN HFS MORTGAGE
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV R 8,987,210
INVESTMENT IN WIGWAM OUTLET LLC O 20,243,786 O 24,295,125
INVEST IN SCOTTS MTN LTD PART I 19,595,019 I 23,271,427
INVEST IN GOLDEN HERITAGE - D 2,360,474
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM D 517,850
INVESTMENT IN LPSCO F 12,233,823
INVESTMENT IN SASI L 650,000 L 961,290
INVESTMENT IN PALM VALLEY - V 167,320,786
INVESTMENT IN PALM VALLEY GOLF M 461,618 M 6,158,173
PALM VALLEY GOLF CONTRIB. CAP N 3,566,740
INVESTMENT IN RANCHO VIEJO U 0 U 14,150,291
INVESTMENT IN RANCHLAND UTILITY 1,063,044 X 92,236 X 1,062,944
INVESTMENT IN HIDDEN HILLS T 0 T 8,831,359
INVESTMENT IN CORAL CANYON W 42,620 W 9,978,412
ACCOUNT DESCRIPTION CONSOLIDATED
- --------------------------------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 7,900,166.81
ACCOUNTS RECEIVABLE 2,751,817.08
INTERCOMPANY ACCOUNTS:
SASI 0.00
LPSCO 0.00
SMLP 0.00
PVGC 0.00
WWOS 0.00
GOLDEN HERITAGE - GENERAL 129 0.00
SCM-GENERAL 129 0.00
HOMEBUILDING I/C INTEREST 12904 0.00
HOMEBUILDING CASH ADVANCES 0.00
COMMERCIAL - GENERAL 0.00
SUNRIDGE - DEVELOPMENT 10,985.35
SUNRIDGE - GOLF 183,387.29
SEDONA - DEVELOPMENT 123,200.67
SEDONA - GOLF 131,247.08
WIGWAM RESORT 304,243.52
HFS FINANCIAL SERVICES 4,712.37
SANCTUARY GOLF 116,966.90
INTEREST RECEIVABLE 266,185.50
NOTES RECEIVABLE 3,383,781.12
INVENTORIES 130,463.35
PREPAID EXPENSES 182,606.47
HOME INVENTORY 29,802,628.36
DEFERRED INCOME TAXES 8,000,000.00
------------------
TOTAL CURRENT ASSETS 53,292,391.87
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON 11,316,475.00
HIDDEN HILLS 3,929,872.00
RANCHO VIEJO 10,626,364.30
PALM VALLEY 183,648,562.82
LITCHFIELD GREENS 216,401.50
VILLAGE OF LITCHFIELD GREENS 12,865,293.32
SCOTTSDALE MOUNTAIN 2,990,878.00
MARKETPLACE - AUTOPLEX 7,056,082.50
TATUM RANCH 2,296,981.30
TALAVI 2,317,464.93
WIGWAM OUTLET STORES 15,215,844.02
GOLDEN HERITAGE LAND 1,417,382.32
BILTMORE ESTATES 0.00
BLACK CANYON COMMERCE PARK 2,370,319.68
OTHER COMMERCIAL LAND 2,851,358.19
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP 22,699,776.23
INVEST IN KYRENE ASSOCIATES LLC (89,199.41)
INVEST IN PV APARTMENTS (I & II) 623,372.96
INVESTMENT IN SUNRIDGE CANYON LLC 4,733,057.28
INVESTMENT IN SEDONA GOLF LC 4,532,343.08
INVESTMENT IN PLUMCOR REALTY LLC 0.00
INVEST IN TALAVI ASSOCIATES LLC 2,428,130.22
INVESTMENT IN WESTWORLD GOLF 2,462,925.00
INVESTMENT IN HFS MORTGAGE 0.00
CONSOLIDATED ELIMINATING ENTITIES: 0.00
INVEST IN KABUTO/SUNCOR JV (2,997,731.29)
INVESTMENT IN WIGWAM OUTLET LLC (923,943.20)
INVEST IN SCOTTS MTN LTD PART (15,128.48)
INVEST IN GOLDEN HERITAGE 0.00
GOLDEN HERITAGE DUE DILIGENCE 0.00
INVESTMENT IN SCM 0.00
INVESTMENT IN LPSCO 136,586.22
INVESTMENT IN SASI 0.00
INVESTMENT IN PALM VALLEY 0.00
INVESTMENT IN PALM VALLEY GOLF 0.00
PALM VALLEY GOLF CONTRIB. CAP 0.00
INVESTMENT IN RANCHO VIEJO 0.00
INVESTMENT IN RANCHLAND UTILITY 196.46
INVESTMENT IN HIDDEN HILLS 0.00
INVESTMENT IN CORAL CANYON 0.00
</TABLE>
<TABLE>
<CAPTION>
SCOTT D. ANDY D. TERRY O. LINDA H.
ACCOUNT DESCRIPTION SUNCOR LPSCO RANCHLAND SASI SMLP PVGC
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PROJECT 2000:
INVESTMENT IN FIDDLESTICKS-SCOTTS (1,557,881)
INVESTMENT IN FIDDLESTICKS-TEMPE 596,193
INVESTMENT IN FUNTASTICKS 1,213,707
INVESTMENT IN GENERAL COMM OPS 78,582,545
INVESTMENT IN PV MARKETPLACE 2,307,137
INVESTMENT IN DYSART/MCDOWELL 872,316
INVESTMENT IN PV PAVILIONS 2,694,953
INVESTMENT IN PV CROSSING 150,310
INVESTMENT IN PALM VALLEY OFFICE PARK (8,156)
INVESTMENT IN AUTOPLEX (203,224)
INVESTMENT IN TALAVI (182,886)
INVESTMENT IN METROCENTER 281,411
INVESTMENT IN RESTORATION PLACE (82,105)
INVESTMENT IN LITCHFIELD PARK OP 121,246
INVESTMENT IN LP PROF. PLAZA (643)
INVESTMENT IN WWOS LLC (397,454)
INVESTMENT IN APS PROPERTIES 113,667
INVESTMENT IN BLACK CANYON CP (8,126)
COMMERCIAL PROPERTIES 5,163,154
LONG-TERM NOTES RECEIVABLE 5,687,701
SDC PHASE I LAND NOTE TO WWOS 1,059,207
SDC PAYOFF OF WWOS RLC 10,000,000
SDC LOAN TO LPSCO 300,000
PROPERTY & EQUIPMENT, NET 773,367 36,696 143,980
DEFERRED ASSETS 3,329,080 366,079 44,008 93,923 175,051
DEFERRED INCOME TAXES 25,120,119
WATER & SEWER UTILITY PROP, NET 13,921,090 1,134,035
LPSCO RESTRICTED CASH FUNDS 3,800,491
DEPOSITS
--------------------------------------------------------------------------------
TOTAL LONG-TERM ASSETS 371,963,183 18,087,660 1,178,043 36,696 3,084,801 5,482,185
--------------------------------------------------------------------------------
TOTAL ASSETS 416,021,832 21,230,532 1,468,618 448,876 4,883,787 9,234,318
================================================================================
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION 119,490 237,174 0 29,787 68,109 56,165
ACCRUED LIABILITIES 2,561,017 400,672 101 147 49,404 77,263
INTERCOMPANY ACCOUNTS:
LPSCO - SDC 36,630
SMLP - SDC 20,006
SCM-SDC CASH ADVANCES 267
GH-SDC INTERCO CAPITAL 265
WWOS-COM
WWOS-SDC
RANCHLAND-RANCHO VIEJO 176,174
INTEREST PAYABLE 676,610
S/T NOTES PAYABLE
$45 MILLION TERM LOAN 3,208,144
$55 MILLION RLC
GOLDEN HERITAGE (PEW)
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE 2,318,943 37,193 0
PWCC INTERCO PAYABLE 635,090
APS LAND INTERCO PAYABLE
CUSTOMER DEPOSITS
--------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 9,519,295 674,476 176,275 67,127 137,519 133,428
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE
WWOS RLC PAYOFF BY SDC
CORPORATE TERM NOTE 38,791,856
CORPORATE RLC 52,000,000
LPSCO BONDS 5,335,000
TEXTRON LOAN - PVGC 3,404,335
OTHER ACCRUED LIABILITIES 4,694,788 1,177,095 0 70,459
DEFERRED TAXES 17,613 113,584
LONG-TERM CUSTOMER DEPOSITS 1,492,524 208,050
CONTRIB PROPERTY AIA
--------------------------------------------------------------------------------
TOTAL L/T LIABILITIES 95,486,644 8,022,232 321,634 70,459 0 3,404,335
--------------------------------------------------------------------------------
TOTAL LIABILITIES 105,005,939 8,696,708 497,909 137,586 137,519 3,537,763
LARRY W.
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. H HILLS
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT IN FIDDLESTICKS-SCOTTS
INVESTMENT IN FIDDLESTICKS-TEMPE
INVESTMENT IN FUNTASTICKS
INVESTMENT IN GENERAL COMM OPS
INVESTMENT IN PV MARKETPLACE
INVESTMENT IN DYSART/MCDOWELL
INVESTMENT IN PV PAVILIONS
INVESTMENT IN PV CROSSING
INVESTMENT IN PALM VALLEY OFFICE PARK
INVESTMENT IN AUTOPLEX
INVESTMENT IN TALAVI
INVESTMENT IN METROCENTER
INVESTMENT IN RESTORATION PLACE
INVESTMENT IN LITCHFIELD PARK OP
INVESTMENT IN LP PROF. PLAZA
INVESTMENT IN WWOS LLC
INVESTMENT IN APS PROPERTIES
INVESTMENT IN BLACK CANYON CP
COMMERCIAL PROPERTIES 27,158,053
LONG-TERM NOTES RECEIVABLE 498,808
SDC PHASE I LAND NOTE TO WWOS
SDC PAYOFF OF WWOS RLC
SDC LOAN TO LPSCO
PROPERTY & EQUIPMENT, NET 1,206,867 164,299 77,893
DEFERRED ASSETS 162,500 75,852 850,452 5,603,404
DEFERRED INCOME TAXES
WATER & SEWER UTILITY PROP, NET
LPSCO RESTRICTED CASH FUNDS
DEPOSITS 123,830
-----------------------------------------------------------------------------------
TOTAL LONG-TERM ASSETS 2,748,079 170,137,119 15,369,589 12,865,293 86,257,949 16,220,989
-----------------------------------------------------------------------------------
TOTAL ASSETS 22,277,288 169,608,815 15,569,029 12,839,044 86,540,632 15,716,277
===================================================================================
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION 2,660,070 1,047,497 568,172 516,891 117,872
ACCRUED LIABILITIES 272,800 172,490 17,299 1,001,464 79,333
INTERCOMPANY ACCOUNTS:
LPSCO - SDC
SMLP - SDC
SCM-SDC CASH ADVANCES 267 13,617,456
GH-SDC INTERCO CAPITAL 265 1,432,265
WWOS-COM 372,210
WWOS-SDC (147,949)
RANCHLAND-RANCHO VIEJO
INTEREST PAYABLE 91,841
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
GOLDEN HERITAGE (PEW)
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE 50,000
PWCC INTERCO PAYABLE
APS LAND INTERCO PAYABLE
CUSTOMER DEPOSITS 1,416,373
-----------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 19,398,964 1,269,987 884,273 17,299 1,518,354 197,205
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE 1,059,207
WWOS RLC PAYOFF BY SDC 10,000,000
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO BONDS
TEXTRON LOAN - PVGC
OTHER ACCRUED LIABILITIES 1,018,042 29,833 78,792
DEFERRED TAXES
LONG-TERM CUSTOMER DEPOSITS
CONTRIB PROPERTY AIA
-----------------------------------------------------------------------------------
TOTAL L/T LIABILITIES 0 1,018,042 11,089,039 0 78,792 0
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 19,398,964 2,288,029 11,973,313 17,299 1,597,147 197,205
ANDY D.
ACCOUNT DESCRIPTION R. VIEJO C. CANYON REF DEBIT REF CREDIT
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT IN FIDDLESTICKS-SCOTTS S 3,380,396 S 1,822,515
INVESTMENT IN FIDDLESTICKS-TEMPE S 316,640 S 912,833
INVESTMENT IN FUNTASTICKS S 1,213,707
INVESTMENT IN GENERAL COMM OPS 0 S 78,582,545
INVESTMENT IN PV MARKETPLACE S 2,307,137
INVESTMENT IN DYSART/MCDOWELL S 872,316
INVESTMENT IN PV PAVILIONS S 2,694,953
INVESTMENT IN PV CROSSING 0 S 150,310
INVESTMENT IN PALM VALLEY OFFICE PARK S 8,156
INVESTMENT IN AUTOPLEX S 203,224
INVESTMENT IN TALAVI S 182,886
INVESTMENT IN METROCENTER S 281,411
INVESTMENT IN RESTORATION PLACE S 82,105
INVESTMENT IN LITCHFIELD PARK OP S 121,246
INVESTMENT IN LP PROF. PLAZA S 643 0
INVESTMENT IN WWOS LLC S 397,454 0
INVESTMENT IN APS PROPERTIES 0 S 113,667
INVESTMENT IN BLACK CANYON CP S 8,126 0
COMMERCIAL PROPERTIES
LONG-TERM NOTES RECEIVABLE
SDC PHASE I LAND NOTE TO WWOS P 1,059,207
SDC PAYOFF OF WWOS RLC P 10,000,000
SDC LOAN TO LPSCO G 300,000
PROPERTY & EQUIPMENT, NET 387,982 41,756
DEFERRED ASSETS
DEFERRED INCOME TAXES
WATER & SEWER UTILITY PROP, NET
LPSCO RESTRICTED CASH FUNDS
DEPOSITS 1,989
------------------------- ------------ ------------
TOTAL LONG-TERM ASSETS 12,077,391 11,360,220 49,231,649 387,248,724
------------------------- ------------ ------------
TOTAL ASSETS 15,089,073 10,460,655 59,025,242 418,269,504
========================= ============ ============
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION 189,928 496,863 J,K,Q 312,809
ACCRUED LIABILITIES 744,870 28,000
INTERCOMPANY ACCOUNTS:
LPSCO - SDC H 36,630
SMLP - SDC J 20,006
SCM-SDC CASH ADVANCES 267 B 13,617,456
GH-SDC INTERCO CAPITAL 265 A 1,432,265
WWOS-COM O 372,210
WWOS-SDC Q 0 Q 147,949
RANCHLAND-RANCHO VIEJO X 176,174 0
INTEREST PAYABLE P 91,841
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
GOLDEN HERITAGE (PEW)
TEXTRON LOAN - PVGC * 59,956
DEF PROFIT & UNEARNED REVENUE E 1,750,166
PWCC INTERCO PAYABLE
APS LAND INTERCO PAYABLE
CUSTOMER DEPOSITS
------------------------- ------------ ------------
TOTAL CURRENT LIABILITIES 934,798 524,863 0 17,809,557 0 207,905
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE P 1,059,207
WWOS RLC PAYOFF BY SDC P 10,000,000
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO BONDS
TEXTRON LOAN - PVGC * 59,956
OTHER ACCRUED LIABILITIES
DEFERRED TAXES
LONG-TERM CUSTOMER DEPOSITS
CONTRIB PROPERTY AIA
------------------------- ------------ ------------
TOTAL L/T LIABILITIES 0 0 11,119,163 0
------------------------- ------------ ------------
TOTAL LIABILITIES 934,798 524,863 28,928,720 207,905
ACCOUNT DESCRIPTION CONSOLIDATED
- --------------------------------------------------------------
INVESTMENT IN FIDDLESTICKS-SCOTTS 0.00
INVESTMENT IN FIDDLESTICKS-TEMPE 0.00
INVESTMENT IN FUNTASTICKS 0.00
INVESTMENT IN GENERAL COMM OPS 0.00
INVESTMENT IN PV MARKETPLACE 0.00
INVESTMENT IN DYSART/MCDOWELL 0.00
INVESTMENT IN PV PAVILIONS 0.00
INVESTMENT IN PV CROSSING 0.00
INVESTMENT IN PALM VALLEY OFFICE PARK 0.00
INVESTMENT IN AUTOPLEX 0.00
INVESTMENT IN TALAVI 0.00
INVESTMENT IN METROCENTER 0.00
INVESTMENT IN RESTORATION PLACE 0.00
INVESTMENT IN LITCHFIELD PARK OP 0.00
INVESTMENT IN LP PROF. PLAZA 0.00
INVESTMENT IN WWOS LLC 0.00
INVESTMENT IN APS PROPERTIES 0.00
INVESTMENT IN BLACK CANYON CP 0.00
COMMERCIAL PROPERTIES 32,321,206.48
LONG-TERM NOTES RECEIVABLE 6,186,508.60
SDC PHASE I LAND NOTE TO WWOS 0.00
SDC PAYOFF OF WWOS RLC 0.00
SDC LOAN TO LPSCO 0.00
PROPERTY & EQUIPMENT, NET 2,832,839.84
DEFERRED ASSETS 10,700,349.77
DEFERRED INCOME TAXES 25,120,118.87
WATER & SEWER UTILITY PROP, NET 15,055,125.04
LPSCO RESTRICTED CASH FUNDS 3,800,490.75
DEPOSITS 125,819.26
------------------
TOTAL LONG-TERM ASSETS 388,852,123.56
------------------
TOTAL ASSETS 442,144,515.43
==================
LIABILITIES:
CURRENT LIABILITIES
A/P & RETENTION 5,795,209.16
ACCRUED LIABILITIES 5,404,859.61
INTERCOMPANY ACCOUNTS: 0.00
LPSCO - SDC 0.00
SMLP - SDC 0.00
SCM-SDC CASH ADVANCES 267 0.00
GH-SDC INTERCO CAPITAL 265 (0.00)
WWOS-COM 0.00
WWOS-SDC 0.00
RANCHLAND-RANCHO VIEJO 0.00
INTEREST PAYABLE 676,610.21
S/T NOTES PAYABLE
$45 MILLION TERM LOAN 3,208,144.14
$55 MILLION RLC 0.00
GOLDEN HERITAGE (PEW) 0.00
TEXTRON LOAN - PVGC 59,955.93
DEF PROFIT & UNEARNED REVENUE 655,970.05
PWCC INTERCO PAYABLE 635,090.27
APS LAND INTERCO PAYABLE 0.00
CUSTOMER DEPOSITS 1,416,372.50
------------------
TOTAL CURRENT LIABILITIES 17,852,211.87
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE 0.00
WWOS RLC PAYOFF BY SDC 0.00
CORPORATE TERM NOTE 38,791,855.86
CORPORATE RLC 52,000,000.00
LPSCO BONDS 5,335,000.00
TEXTRON LOAN - PVGC 3,344,379.10
OTHER ACCRUED LIABILITIES 7,069,009.45
DEFERRED TAXES 131,196.96
LONG-TERM CUSTOMER DEPOSITS 1,700,574.20
CONTRIB PROPERTY AIA 0.00
------------------
TOTAL L/T LIABILITIES 108,372,015.57
------------------
TOTAL LIABILITIES 126,224,227.44
</TABLE>
<TABLE>
<CAPTION>
SCOTT D. ANDY D. TERRY O. LINDA H.
ACCOUNT DESCRIPTION SUNCOR LPSCO RANCHLAND SASI SMLP PVGC
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MINORITY INTEREST
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 375,368,522
SDC EARNED SURPLUS-BEGINNING (71,438,657)
SDC EARNED SURPLUS-CURRENT 6,064,028
SUBSIDIARY EARNINGS-CURRENT 820,619 (92,236) (62,491) 3,495,918 (534,796)
SUBSIDIARY EQUITY:
LPSCO 11,713,205
SASI 373,781
SMLP #3500 1,250,349
PVGC 6,231,352
HOMEBUILDING
PALM VALLEY #5500
WWOS #4400
KABUTO JV #3000
COMMERCIAL PROPERTIES #2000
HIDDEN HILLS #3300
RANCHO VIEJO #6600
RANCHLAND UTILITY 1,062,944
CORAL CANYON #3900
--------------------------------------------------------------------------------
TOTAL EQUITY 311,015,893 12,533,823 970,709 311,290 4,746,268 5,696,556
--------------------------------------------------------------------------------
TOTAL LIABS AND EQUITY 416,021,832 21,230,531 1,468,618 448,876 4,883,787 9,234,318
================================================================================
LARRY W.
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM. H HILLS
- -------------------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT 1,198,047 4,926,636 (455,622) 6,553,333 90,290
SUBSIDIARY EQUITY:
LPSCO
SASI
SMLP #3500
PVGC
HOMEBUILDING 1,680,277
PALM VALLEY #5500 162,394,150
WWOS #4400 4,051,339
KABUTO JV #3000 12,821,745
COMMERCIAL PROPERTIES #2000 78,390,152
HIDDEN HILLS #3300 15,428,782
RANCHO VIEJO #6600
RANCHLAND UTILITY
CORAL CANYON #3900
-----------------------------------------------------------------------------------
TOTAL EQUITY 2,878,324 167,320,786 3,595,717 12,821,745 84,943,486 15,519,072
-----------------------------------------------------------------------------------
TOTAL LIABS AND EQUITY 22,277,288 169,608,815 15,569,029 12,839,044 86,540,632 15,716,277
===================================================================================
ANDY D.
ACCOUNT DESCRIPTION R. VIEJO C. CANYON REF DEBIT REF CREDIT
- -----------------------------------------------------------------------------------------------------------------------------------
MINORITY INTEREST I 10,066,214 I,R 14,970,609
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT 1,414,717 (42,620) D,I,M,O,S,U,V,W,T 18,499,560 F,L,T,X 1,187,765
SUBSIDIARY EQUITY:
LPSCO F,G 11,713,205
SASI L 1,023,781 L 650,000
SMLP #3500 I 30,911,582 I 29,661,233
PVGC M 6,231,352 0
HOMEBUILDING D 1,680,277 0
PALM VALLEY #5500 V 162,394,150
WWOS #4400 O 24,295,125 O 20,243,786
KABUTO JV #3000 R 12,821,745
COMMERCIAL PROPERTIES #2000 S 78,390,152 0
HIDDEN HILLS #3300 T 15,431,852 T 3,070
RANCHO VIEJO #6600 12,739,558 U 12,825,260 U 85,702
RANCHLAND UTILITY X 1,062,944 X 0
CORAL CANYON #3900 9,978,412 W 9,978,412 W 0
-------------------------- ------------ ------------
TOTAL EQUITY 14,154,275 9,935,792 387,259,398 51,831,555
-------------------------- ------------ ------------
TOTAL LIABS AND EQUITY 15,089,073 10,460,655 426,254,331 67,010,069
========================== ============ ============
ACCOUNT DESCRIPTION CONSOLIDATED
- ---------------------------------------------------------------
MINORITY INTEREST 4,904,395.09
SDC COMMON STOCK 1,022,000.00
SDC ADDITIONAL PAID IN CAPITAL 375,368,521.94
SDC EARNED SURPLUS-BEGINNING (71,438,656.87)
SDC EARNED SURPLUS-CURRENT 6,064,028.14
SUBSIDIARY EARNINGS-CURRENT (0.00)
SUBSIDIARY EQUITY:
LPSCO 0.00
SASI 0.00
SMLP #3500 0.00
PVGC 0.00
HOMEBUILDING 0.00
PALM VALLEY #5500 0.00
WWOS #4400 0.00
KABUTO JV #3000 0.00
COMMERCIAL PROPERTIES #2000 0.00
HIDDEN HILLS #3300 0.00
RANCHO VIEJO #6600 0.00
RANCHLAND UTILITY 0.00
CORAL CANYON #3900 0.00
-------------------
TOTAL EQUITY 311,015,893.21
-------------------
TOTAL LIABS AND EQUITY 442,144,515.74
===================
</TABLE>
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1999 CONSOLIDATING AND ELIMINATING ENTRIES
<TABLE>
<CAPTION>
DEBIT CREDIT
--------------- ---------------
<S> <C> <C>
A. SCM INTERCO A/P TO SDC $5,386,541.01
SDC A/R FROM SCM $5,386,541.01
GH INTERCO CAPITAL FROM SDC - ACQUISITION $1,432,265.22
GH INTERCO A/P TO SDC $270,787.72
SDC A/R FROM GH $1,164,401.51
B. HOMEBUILDING CASH ADVANCES FROM SDC $13,617,456.15
SDC CASH ADVANCES TO HOMEBUILDING $13,617,898.62
C. SCM INTERCO CAPPED INTEREST $4,259,103.31 $0.00
SDC INTERCO INTEREST A/R FROM SCM $4,259,103.32
ELIMINATE INTERCO RECEIVABLES/PAYABLES BETWEEN HOMEBUILDING AND SDC
D. HOMEBUILDING ACCUMULATED EARNINGS $1,680,277.20
SDC INVESTMENT IN GH $2,360,474.40
SDC DUE DILIGENCE COSTS - GHH ACQUISITION
SDC INVESTMENT IN SCM $517,849.94
HOMEBUILDING CURRENT YEAR EARNINGS $1,198,047.14
ELIMINATE SDC INVESTMENT IN GOLDEN HERITAGE & SCM
E. DEFERRED INTERCO PROFIT $1,750,166.26
HOME INVENTORY $1,750,166.26
ELIMINATE DEFERRED PROFIT ON INTERCO LOT SALES TO HOMEBUILDING
F. LPSCO COMMON STOCK $78,200.00
LPSCO PAID IN CAPITAL $10,638,917.85
LPSCO EARNINGS - PRIOR $696,086.70
LPSCO INCOME TAXES
LPSCO EARNINGS - CURRENT YEAR $820,618.80
SDC INVESTMENT IN LPSCO - CONTRIB CAPITAL $10,717,117.86
SDC INVESTMENT IN LPSCO - EARNINGS $1,516,705.49
SDC DEFERRED TAXES DIFFERENTIAL $0.00
ELIMINATE SDC INVESTMENT IN LPSCO
G. LPSCO LONG-TERM NOTES PAYABLE $300,000.00
SDC LONG-TERM NOTES RECEIVABLE $300,000.00
ELIMINATE LPSCO INTERCOMPANY NOTE WITH SDC
H. LPSCO ACCOUNTS PAYABLE $36,630.11
SDC ACCOUNTS RECEIVABLE $36,630.11
ELIMINATE LPSCO INTERCOMPANY A/R WITH SDC
I. SMLP CONTRIBUTED CAPITAL - MINORITY INT $10,066,214.00
SMLP CONTRIBUTED CAPITAL - SDC GP $490,147.01
SMLP DISTRIBUTED CAPITAL - SDC GP $12,853,612.00
SMLP CONTRIBUTED CAPITAL - SDC LP $2,100,000.00
SMLP DISTRIBUTED CAPITAL - SDC LP $6,741,407.00
SMLP EARNINGS - PRIOR $28,321,435.40
SMLP EARNINGS - CURRENT YEAR $3,495,918.29
MINORITY INTEREST CONTRIBUTED CAPITAL $10,066,214.00
MINORITY INTEREST - PRIOR (35%) $9,912,502.39
MINORITY INTEREST - CURRENT YEAR (35%) $1,223,571.40
SDC INVESTMENT IN SMLP - LP $2,100,000.00
SDC DISTRIBUTIONS FROM SMLP - LP $6,743,407.00
SDC INVESTMENT IN SMLP - GP $490,147.01
SDC DISTRIBUTIONS FROM SMLP - GP $12,851,612.00
SDC INVESTMENT IN SMLP - EARNINGS $20,681,279.90
SDC LAND BASIS DIFFERENTIAL
ELIMINATE SDC INVESTMENT IN SMLP #3500
J. SMLP ACCOUNTS PAYABLE $20,005.97
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
SDC ACCOUNTS RECEIVABLE $20,005.97
GH ACCOUNTS PAYABLE $303,750.00
SMLP ACCOUNTS RECEIVABLE $303,750.00
ELIMINATE SMLP INTERCOMPANY A/R WITH SDC AND HOMEBUILDING (PREMIUMS)
L. SASI CONTRIBUTED CAPITAL $489,023.22
SASI CAPITAL DISTRIBUTIONS $650,000.00
SASI EARNINGS - PRIOR $534,757.95
SASI EARNINGS - CURRENT YEAR $62,491.00
PV INVESTMENT IN SASI - CONTRIB CAPITAL $489,023.22
PV INVESTMENT IN SASI - DISTRIBUTIONS $650,000.00
PV INVESTMENT IN SASI - EARNINGS $472,266.95
ELIMINATE PALM VALLEY INVESTMENT IN SASI
M. PVGC CONTRIBUTED CAPITAL $6,158,173.14
PVGC EARNINGS - PRIOR $73,178.79
PVGC EARNINGS - CURRENT YEAR $534,796.30
SDC INVESTMENT IN PVGC - EARNINGS $461,617.51
SDC INVESTMENT IN PVGC - CONTRIB CAPITAL $6,158,173.14
ELIMINATE SDC INVESTMENT IN PALM VALLEY GOLF
N. SDC CONTRIB. CAPITAL TO PVGC $3,566,739.66
PVGC ACCOUNTS RECEIVABLE $3,566,739.66
ELIMINATE PALM VALLEY GOLF INTERCOMPANY A/R WITH SDC
O. WWOS CONTRIBUTED CAPITAL - PHASE 1 $9,500,000.00
WWOS CONTRIBUTED CAPITAL - PHASE 2 $13,408,869.75
WWOS CONTRIBUTED WORKING CAPITAL $1,386,255.25
WWOS EARNINGS - PRIOR $2,023,394.41
WWOS EARNINGS - CURRENT YEAR $455,622.46
WWOS CAPITAL DISTRIBUTIONS - PHASE 1 $9,500,000.00
WWOS CAPITAL DISTRIBUTIONS - PHASE 2 $4,967,126.16
WWOS PREFERRED RETURN - PHASE 1 $287,567.78
WWOS PREFERRED RETURN - PHASE 2 $3,465,697.50
SDC INVESTMENT IN WWOS - PHASE 1 $9,500,000.00
SDC INVESTMENT IN WWOS - PHASE 2 $13,408,869.75
SDC INVESTMENT IN WWOS -CONTRIBUTED CAPITAL $1,386,255.25
SDC INVESTMENT IN WWOS - EARNINGS $2,023,394.41
SDC DISTRIBUTIONS FROM WWOS - PHASE 1 $9,500,000.00
SDC DISTRIBUTIONS FROM WWOS - PHASE 2 $4,967,126.16
SDC PREFERRED RETURN - PHASE 1 $287,567.78
SDC PREFERRED RETURN - PHASE 2 $3,465,697.50
SDC BASIS DIFFERENTIAL PH I BUILDINGS
SDC BASIS DIFFERENTIAL LAND
SDC 1994 CAPPED INTEREST ON WWOS
SDC 1995 DEVELOPMENT FEES
WWOS I/C A/P - COMMERCIAL $372,209.61
COMMERCIAL I/C A/R - WWOS $372,209.61
ELIMINATE SDC COMMERCIAL INVESTMENT IN WIGWAM OUTLET STORES #4400
P. WWOS INTEREST PAYABLE - PHASE 1 LAND $24,028.03
WWOS INTEREST PAYABLE - RLC $67,812.50
SDC INTEREST RECEIVABLE - PHASE 1 LAND $24,028.03
SDC INTEREST RECEIVABLE - RLC $67,812.50
WWOS NOTES PAYABLE - PHASE 1 LAND $1,059,206.67
SDC NOTES RECEIVABLE - PHASE 1 LAND $1,059,206.67
WWOS NOTES PAYABLE - RLC $10,000,000.00
SDC NOTES RECEIVABLE - RLC $10,000,000.00
ELIMINATE WWOS INTERCOMPANY NOTES AND INTEREST WITH SDC
Q. WWOS ACCOUNTS PAYABLE $147,948.78
SDC ACCOUNTS RECEIVABLE $147,948.78
WWOS MANAGEMENT FEE PAYABLE $4,532.05
SDC COMMERCIAL A/R $4,532.05
ELIMINATE WWOS INTERCOMPANY A/R WITH SDC
R. KABUTO CONTRIBUTED CAPITAL - SDC $8,987,209.60
KABUTO CONTRIBUTED CAPITAL - KABUTO $3,834,535.30
MINORITY INTEREST $3,834,535.30
SDC INVESTMENT IN KABUTO - CONTR CAPITAL $6,098,494.79
</TABLE>
<TABLE>
<S> <C> <C>
BALANCING PLUG $2,888,714.81
SDC BASIS DIFFERENTIAL IN LAND
SDC DEVELOPMENT COSTS
ELIMINATE SDC INVESTMENT IN KABUTO JV #3000
S. COMMERCIAL OPS CONTRIBUTED CAPITAL $74,293,346.97
COMMERCIAL EARNINGS - PRIOR $4,096,805.16
COMMERCIAL EARNINGS - CURRENT YEAR $6,553,333.43
SDC INVEST IN GEN COMMERCIAL OPS - EARNINGS $3,711,897.29
SDC INVEST IN GEN COMMERCIAL OPS - CONT CAPITAL $74,870,647.30
SDC INVESTMENT IN OUTER LIMITS - PURCHASE $1,822,514.94
SDC INVESTMENT IN FIDDLE (SCOTTS) - CONT CAPITAL $2,856,749.32
SDC INVESTMENT IN FIDDLE (SCOTTS) - EARNINGS $523,646.70
SDC INVESTMENT IN FUNTASTICKS - CONT CAPITAL $779,466.39
SDC INVESTMENT IN FUNTASTICKS - EARNINGS $434,240.58
SDC INVESTMENT IN FIDDLE (TEMPE) - CONT CAPITAL $316,639.78
SDC INVESTMENT IN FIDDLE (TEMPE) - EARNINGS $912,832.69
SDC INVESTMENT IN APS PROPERTIES - EARNINGS $113,667.31
SDC INVESTMENT IN BLACK CANYON CP - EARNINGS $8,126.09
SDC INVESTMENT IN PV MARKETPLACE - EARNINGS $2,307,137.27
SDC INVESTMENT IN PV PAVILIONS - EARNINGS $2,694,953.30
SDC INVESTMENT IN DYSART/MCDOWELL CENTER $872,316.24
SDC INVESTMENT IN PV CROSSING - EARNINGS $150,309.61
SDC INVESTMENT IN PV OFFICE PARK - EARNINGS $8,156.32
SDC INVESTMENT IN METROCENTER - EARNINGS $281,410.66
SDC INVESTMENT IN REST PLACE - EARNINGS $82,105.37
SDC INVESTMENT IN LITCHFIELD OTHER - EARNINGS $121,246.12
SDC INVESTMENT IN AUTOPLEX - EARNINGS $203,224.40
SDC INVESTMENT IN TALAVI - EARNINGS $182,886.06
SDC INVESTMENT IN WWOS - EARNINGS $397,454.46
SDC INVESTMENT IN LP PROF. PLAZA - EARNINGS $643.44
ELIMINATE SDC INVESTMENT IN COMMERCIAL OPERATIONS #2000
T. HIDDEN HILLS CONTRIBUTED CAPITAL $8,744,139.11
GLAZ CONTRIBUTED CAPITAL, NET $6,687,713.00
GLAZ INVESTMENT IN HIDDEN HILLS - CONT CAPITAL $6,687,713.00
HIDDEN HILLS EARNINGS - PRIOR $3,069.71
HIDDEN HILLS EARNINGS - CURRENT YEAR $90,289.50
SDC INVESTMENT IN HIDDEN HILLS - EARNINGS $87,219.79
SDC INVESTMENT IN HIDDEN HILLS - CONT CAPITAL $8,744,139.11
ELIMINATE SDC INVESTMENT IN HIDDEN HILLS JV #3300
U. SDC INVESTMENT IN RANCHO VIEJO - EARNINGS $1,329,015.08
SDC INVESTMENT IN RANCHO VIEJO - CAPITAL $12,821,275.56
RANCHO VIEJO CONTRIBUTED CAPITAL $12,825,259.78
RANCHO VIEJO EARNINGS - PRIOR $85,701.63
RANCHO VIEJO EARNINGS - CURRENT YEAR $1,414,716.71
ELIMINATE SDC INVESTMENT IN RANCHO VIEJO JV #6600
V. PV CONTRIBUTED CAPITAL $152,768,812.48
PV EARNINGS - PRIOR $9,625,337.53
PV EARNINGS - CURRENT YEAR $4,926,635.98
SDC INVESTMENT IN PALM VALLEY - EARNINGS $14,551,973.51
SDC INVESTMENT IN PALM VALLEY - DEVELOP $152,768,812.48
ELIMINATE SDC INVESTMENT IN PALM VALLEY #5500
W. CORAL CANYON CONTRIBUTED CAPITAL $9,978,412.11
CORAL CANYON - CURRENT YEAR $42,619.70
SDC INVESTMENT IN CORAL CANYON - DEVELOP $9,978,412.11
SDC INVESTMENT IN CORAL CANYON - EARNINGS $42,619.70
ELIMINATE SDC INVESTMENT IN CORAL CANYON #3900
X. RANCHLAND - CURRENT YEAR $92,235.67
RANCHLAND - CONTRIBUTED CAPITAL $1,062,944.39
RANCHLAND - DUE TO/FROM RANCHO VIEJO $176,174.00
RANCHO INVESTMENT IN RANCHLAND UTILTY-CAPITAL $1,062,944.39
RANCHO INVESTMENT IN RANCHLAND UTILTY-EARNINGS $92,235.67
RANCHO - DUE TO/FROM RANCHLAND UTILITIES $176,174.00
ELIMINATE RANCHO INVESTMENT IN RANCHLAND UTILITY
</TABLE>
<PAGE>
SunCor Development Company
Consolidating Income Statement
For the Year Ending December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
RANCHLAND
Account Description SUNCOR LPSCO UTILITY SCTS MTN PVGC GHH
- ------------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Revenues
Home Sales -- -- -- -- -- 64,830,130
Land Sales 30,146,383 -- -- 7,104,128 -- --
Commercial Properties 5,801,571 -- -- -- 1,978,755 --
Utility Sales -- 2,853,412 7,692 -- -- --
Management Fees 1,540,937 -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total Operating Revenues 37,488,891 2,853,412 7,692 7,104,128 1,978,755 64,830,130
Operating Expenses
Cost of Homes Sold (0) -- -- -- -- 54,969,177
Cost of Land Sold 18,807,702 -- -- 3,442,629 -- --
Commercial Properties 5,561,964 -- -- -- 193,879 --
Utility Expense -- 1,785,921 99,915 -- -- --
Land Project Costs 2,329,986 -- -- 98,223 -- --
General & Administrative 10,118,243 -- -- 89,814 1,783,238 5,449,460
Depreciation & Amortization 1,111,951 276,637 -- -- 198,536 647,984
------------- ------------- ------------- ------------- ------------- -------------
Total Operating Expenses 37,929,845 2,062,558 99,915 3,630,666 2,175,653 61,066,621
Net Operating Income/(Loss) (440,954) 790,854 (92,223) 3,473,462 (196,898) 3,763,509
Other Income and Gains
Equity in Joint Ventures 4,854,693 -- -- -- -- --
Interest Income 695,311 123,893 -- 22,457 -- --
Other -- -- -- -- -- (483,855)
------------- ------------- ------------- ------------- ------------- -------------
Total Other Income and Gains 5,550,004 123,893 -- 22,457 -- (483,855)
Interest Expense, Net
Interest Expense 6,509,298 202,569 -- -- 337,898 --
Less: Capitalized Interest (4,745,280) -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total Interest Expense, Net 1,764,018 202,569 -- -- 337,898 --
Minority Interest 1,018,365 -- -- -- -- --
Income before Taxes 2,326,667 712,178 (92,223) 3,495,918 (534,796) 3,279,654
Income Taxes 4,188,321 (108,441) -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME/(LOSS) $ (1,861,653) $ 820,619 $ (92,223) $ 3,495,918 $ (534,796) $ 3,279,654
HIDDEN CORAL RANCHO CONSOLIDATED
Account Description WWOS HILLS CANYON VIEJO INCOME
- ------------------- ------------- ------------- ------------- ------------- -------------
Revenues
Home Sales -- -- -- 12,756,318 77,586,447
Land Sales 675,000 260,000 -- 121,000 38,306,511
Commercial Properties 1,996,347 -- -- -- 9,776,673
Utility Sales -- -- -- -- 2,861,104
Management Fees -- -- -- -- 1,540,937
------------- ------------- ------------- ------------- -------------
Total Operating Revenues 2,671,347 260,000 -- 12,877,318 130,071,672
Operating Expenses
Cost of Homes Sold -- -- -- 9,925,940 64,895,117
Cost of Land Sold 284,427 169,711 -- 88,226 22,792,694
Commercial Properties 1,066,148 -- -- -- 6,821,991
Utility Expense -- -- -- -- 1,885,835
Land Project Costs -- -- -- 543,823 2,972,032
General & Administrative -- -- 42,620 838,239 18,321,614
Depreciation & Amortization 774,396 -- -- 82,902 3,092,406
------------- ------------- ------------- ------------- -------------
Total Operating Expenses 2,124,971 169,711 42,620 11,479,130 120,781,689
Net Operating Income/(Loss) 546,377 90,290 (42,620) 1,398,188 9,289,983
Other Income and Gains
Equity in Joint Ventures -- -- -- -- 4,854,690
Interest Income 6,244 -- -- 829 848,734
Other -- -- -- 15,700 (518,406)
------------- ------------- ------------- ------------- -------------
Total Other Income and Gains 6,244 -- -- 16,529 5,185,018
Interest Expense, Net
Interest Expense 1,008,243 -- -- -- 8,058,008
Less: Capitalized Interest -- -- -- -- (4,745,280)
------------- ------------- ------------- ------------- -------------
Total Interest Expense, Net 1,008,243 -- -- -- 3,312,728
Minority Interest -- -- -- -- 1,018,365
Income before Taxes (455,622) 90,290 (42,620) 1,414,717 10,143,908
Income Taxes -- -- -- -- 4,079,880
------------- ------------- ------------- ------------- -------------
NET INCOME/(LOSS) $ (455,622) $ 90,290 $ (42,620) $ 1,414,717 $ 6,064,028
</TABLE>
