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:
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 North Fifth Street, 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.
(3) PWENewco, Inc. ("PWENewco") - an Arizona corporation having been
incorporated on January 30, 2001 and having its principal executive
offices at 400 North Fifth Street, Phoenix, Arizona 85004, was
organized primarily to own real and personal property. PWENewco 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.
2
c. 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.
(1) SunCor Golf, Inc. ("SunCor Golf") (previously named "SunCor Resort
& Golf 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 golf, food and
beverage for the Coral Canyon Golf Course, Sedona Golf Resort,
StoneRidge Golf Club, SunRidge Canyon Golf Club, Sanctuary Golf Club
at West World and Palm Valley Golf Club. SunCor Golf 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, builds and sells single
family residential real property. Golden Heritage Homes is a
wholly-owned subsidiary of SunCor.
(4) 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
subsidiary of Golden Heritage Homes, Inc. on January 1, 1996.
(5) 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,
3
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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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
4
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
and PWEC, each a "public utility company" as that term is defined in the Public
Utility Holding Company Act of 1935, are the only two of Claimant's subsidiaries
that own property used for the generation, transmission or distribution of
electric energy for sale.
Exhibit D attached hereto shows the location of (i) 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; and (ii) PWEC's major generating
plant. 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.
5
Claimant's present generating facilities have an accredited capacity
aggregating 4,094,885 kilowatts, comprised as follows:
APS
APS' present generating facilities have an accredited capacity as follows:
Capacity(kW)
------------
Coal:
Units 1, 2, and 3 at Four Corners............................ 560,000
15% owned Units 4 and 5 at Four Corners...................... 222,000
Units 1, 2, and 3 at Cholla Plant............................ 615,000
14% owned Units 1, 2, and 3 at the Navajo Plant.............. 315,000
----------
1,712,000
----------
Gas or Oil:
Two steam units at Ocotillo and two steam units at Saguaro... 430,000(1)
Eleven combustion turbine units.............................. 493,000
Three combined cycle units................................... 255,000
----------
1,178,000
----------
Nuclear:
29.1% owned or leased Units 1, 2, and 3 at Palo Verde........ 1,086,300
----------
Hydro and Solar................................................... 6,585
----------
PINNACLE WEST ENERGY
PWEC's present generating facility has an accredited capacity as follows:
Gas or Oil:
One combined cycle unit...................................... 112,000
----------
Total 4,094,885
----------
----------
(1) West Phoenix steam units (108,300 kW) are currently mothballed.
APS' transmission facilities consist of approximately 4,908 pole miles of
overhead lines and approximately 20 miles of underground lines, all of which are
located within the State of Arizona. APS' distribution facilities consist of
approximately 11,888 pole miles of overhead lines and approximately 11,834 miles
of underground lines, all of which are located within the State of Arizona.
6
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.
43,606,848,000 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.
65,235,000 kwh of electric energy was distributed at retail
outside Arizona
0 Mcf. of natural or manufactured gas distributed at retail
outside Arizona
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.
2,373,985,000 kwh of electric energy was sold at wholesale
outside Arizona or at state line (excluding power marketing
activities).
3,358,145 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.
1,092,701,000 kwh of electric energy was purchased outside
Arizona or at state line (excluding power marketing activities).
7
32,180,580 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 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
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, APS Energy Services Company, Inc. and Pinnacle West
Energy Corporation. 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
EXHIBIT B
AN ORGANIZATIONAL CHART SHOWING THE RELATIONSHIP OF EACH EWG OR FOREIGN
UTILITY COMPANY TO ASSOCIATE COMPANIES IN THE HOLDING-COMPANY SYSTEM.
Not applicable.
10
EXHIBIT C
In accordance with Item 304 of Regulation S-T of the Securities Exchange
Act of 1934, APS' Service Territory map contained as Exhibit C 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, the location of
Pinnacle West Energy's power plant and the location of transmission lines
operated by APS for others. APS' 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 the West
Phoenix Power Plant, each located near Phoenix, Arizona, and the Saguaro Power
Plant, located near Tucson, Arizona. PWEC's power plant shown on such map is
Unit 4 of the West Phoenix Power Plant located near Phoenix, 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.
11
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, 2002.
Pinnacle West Capital Corporation
----------------------------------------
(Name of Claimant)
By Barbara M. Gomez
-------------------------------------
Barbara M. Gomez
Treasurer
[CORPORATE SEAL]
Attest:
Betsy A. Pregulman
----------------------------------
Betsy A. Pregulman
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)
12
Exhibit B
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
12/31/01
(THOUSANDS OF DOLLARS)
(UNAUDITED)
PWCC APS PWMT SUNCOR ELDO
--------- --------- --------- --------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 472 16,821 145 9,176 44
Customer and other receivables-net 754,736 332,107 134,115 10,568 12,547
Accrued utility revenue 76,131
Materials and supplies 81,215
Fossil fuel 27,023
Assets from risk management activities 10,097 56,876
Other current assets 3,344 42,009 33,729
--------- --------- --------- --------- ---------
Total current assets 758,552 585,403 191,136 53,473 12,591
--------- --------- --------- --------- ---------
INVESTMENTS AND OTHER ASSETS
Real estate investments, net 430,107
Assets from Risk Management Activities-Long Term 3,363 196,416
Other assets 2,732,859 278,358 572 4,029 10,137
--------- --------- --------- --------- ---------
Total investments and other 2,732,859 281,721 196,988 434,136 10,137
--------- --------- --------- --------- ---------
PROPERTY, PLANT AND EQUIPMENT
Plant in service 8,105,106
Nuclear Fuel 49,282
Construction work in progress 321,305 4,459
--------- --------- --------- --------- ---------
Total 8,475,693 4,459
Less accumulated depreciation and amortization 3,374,098
--------- --------- --------- --------- ---------
Net Property, Plant and Equipment 5,101,595 4,459
--------- --------- --------- --------- ---------
DEFERRED DEBITS
Deferred income taxes 25,091
Regulatory assets 342,383
Other deferred debits 55,952 (98) 5,403
--------- --------- --------- --------- ---------
Total deferred debits 398,335 (98) 30,494
--------- --------- --------- --------- ---------
TOTAL ASSETS 3,491,411 6,367,054 392,485 518,103 22,728
========= ========= ========= ========= =========
*ELIMINATIONS AND ADJUSTING ENTRIES*
ENERGY ------------------------------------
PWE SERVICES DEBIT CREDIT TOTAL
--------- --------- --------- --------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 534 1,427 28,619
Customer and other receivables-net 5,230 40,489 959,587(b,h) 330,205
Accrued utility revenue 76,131
Materials and supplies 81,215
Fossil fuel 27,023
Assets from risk management activities 66,973
Other current assets 3 1,118 80,203
--------- --------- --------- --------- ---------
Total current assets 5,767 43,034 959,587 690,369
--------- --------- --------- --------- ---------
INVESTMENTS AND OTHER ASSETS
Real estate investments, net 4,753(d) 16,187(c) 418,673
Assets from Risk Management Activities-Long Term 199,779
Other assets 320 2,704,679(a,d,f) 321,596
--------- --------- --------- --------- ---------
Total investments and other 320 4,753 2,720,866 940,048
--------- --------- --------- --------- ---------
PROPERTY, PLANT AND EQUIPMENT
Plant in service 76,135 22,647 8,203,888
Nuclear Fuel 49,282
Construction work in progress 700,335 6,135 1,032,234
--------- --------- ---------
Total 776,470 28,782 9,285,404
Less accumulated depreciation and amortization 2,061 1,930 3,378,089
--------- --------- ---------
Net Property, Plant and Equipment 774,409 26,852 5,907,315
--------- --------- --------- --------- ---------
DEFERRED DEBITS
Deferred income taxes 25,091(g)
Regulatory assets 342,383
Other deferred debits 429 2,911(f) 64,597
--------- --------- --------- --------- ---------
Total deferred debits 429 2,911 25,091 406,980
--------- --------- --------- --------- ---------
TOTAL ASSETS 780,605 70,206 7,664 3,705,544 7,944,712
========= ========= ========= ========= =========
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
December 31, 2001
(THOUSANDS OF DOLLARS)
(UNAUDITED)
PWCC APS PWMT SUNCOR ELDO
---------- ---------- ---------- ---------- ----------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable 21,358 98,959 74,683 17,268 546
Accrued taxes 6,355 105,352 (17,563) 1,150 3,820
Accrued interest 7,160 41,043 603
Short-term borrowings 246,000
Commerical paper, net 171,162
Current maturities of long-term debt 357 125,451 332
Customer Deposits 28,664 1,568
Deferred income taxes 3,244
Liabilities from risk management activities 21,840 14,154
Other current liabilities 32,445 117,770 144,926 26,808 737
---------- ---------- ---------- ---------- ----------
Total current liabilities 313,675 713,485 216,200 47,729 5,103
---------- ---------- ---------- ---------- ----------
NON-CURRENT LIABILITIES
Long-term debt less current maturities 575,710 1,949,074 148,294
---------- ---------- ---------- ---------- ----------
Total 575,710 1,949,074 148,294
---------- ---------- ---------- ---------- ----------
DEFERRED CREDITS AND OTHER
Liabilities from Risk Management Activities-Long Term 95,159 112,417
Deferred income taxes 22,913 1,025,322 38,864 1,051
Unamortized gain-sale of utility plant 64,060
Other deferred credits 15,225 369,264 (7,740)
---------- ---------- ---------- ---------- ----------
Total deferred credits 38,138 1,553,805 143,541 1,051
---------- ---------- ---------- ---------- ----------
COMMITMENTS AND CONTINGENCIES
Joint Ventures of SunCor 16,187
---------- ---------- ---------- ---------- ----------
COMMON STOCK EQUITY:
Common stock 2,004,139 1,424,966 356,391 14,046
Accumulated Other Comprehensive Income (64,565)
Retained Earnings 559,749 790,289 32,744 (50,498) 2,528
---------- ---------- ---------- ---------- ----------
Total 2,563,888 2,150,690 32,744 305,893 16,574
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES AND EQUITY 3,491,411 6,367,054 392,485 518,103 22,728
========== ========== ========== ========== ==========
*ELIMINATIONS*
ENERGY -------------------------
PWE SERVICES DEBIT CREDIT TOTAL
---------- ---------- ---------- ---------- ----------
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable 35,060 21,251 269,125
Accrued taxes (3,040) 145 96,219
Accrued interest 48,806
Short-term borrowings 11,400(h) 234,600
Commerical paper, net 171,162
Current maturities of long-term debt 126,140
Customer Deposits 30,232
Deferred income taxes 3,244
Liabilities from risk management activities 35,994
Other current liabilities 662,510 5,892 953,226(b,e) 37,862
---------- ---------- ---------- ---------- ----------
Total current liabilities 694,530 27,288 964,626 1,053,384
---------- ---------- ---------- ---------- ----------
NON-CURRENT LIABILITIES
Long-term debt less current maturities 2,673,078
---------- ---------- ---------- ---------- ----------
Total 2,673,078
---------- ---------- ---------- ---------- ----------
DEFERRED CREDITS AND OTHER
Liabilities from Risk Management Activities-Long Term 207,576
Deferred income taxes 2,444 25,091(g) 1,065,503
Unamortized gain-sale of utility plant 64,060
Other deferred credits 5,039(e) 381,788
---------- ---------- ---------- ---------- ----------
Total deferred credits 2,444 25,091 5,039 1,718,927
---------- ---------- ---------- ---------- ----------
COMMITMENTS AND CONTINGENCIES
Joint Ventures of SunCor 16,187(c)
---------- ---------- ---------- ---------- ----------
COMMON STOCK EQUITY:
Common stock 68,096 75,246 2,411,846(a) 1,531,038
Accumulated Other Comprehensive Income (64,565)
Retained Earnings 15,535 (32,328) (285,169)(a) 1,032,850
---------- ---------- ---------- ---------- ----------
Total 83,631 42,918 2,411,846 (285,169) 2,499,323
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES AND EQUITY 780,605 70,206 3,417,750 (280,130) 7,944,712
========== ========== ========== ========== ==========
ADJUSTING AND ELIMINATION ENTRIES
DECEMBER 31, 2001
(a) Common stock $2,411,846
Accumulated deficit $ (285,169)
Other investments 2,697,015
To eliminate PNW investment in subsidiaries
Common Earnings/
Stock Dividends Total
---------- ---------- ----------
APS $1,898,067 $ 317,188 $2,215,255
Power Marketing 0 32,744 32,744
Pinnacle West Energy 68,096 15,535 83,631
Energy Services 75,246 (32,328) 42,918
SunCor 356,391 (50,498) 305,893
El Dorado 14,046 2,528 16,574
---------- ---------- ----------
Total $2,411,846 $ 285,169 $2,697,015
========== ========== ==========
(b) Other current liabilities $ 948,187
Customer and other receivables - net $ 948,187
To eliminate intercompany receivables/payables between all entities
Intercompany Intercompany
Receivables Payables
---------- ----------
Pinnacle West CC $ 744,821 $ 744,821
APS 113,384 $ 113,384
Pinnacle West Energy 5,299 $ 5,299
Energy Services 968 $ 968
Power Marketing 83,715 $ 83,715
---------- ----------
Total $ 948,187 $ 948,187
========== ==========
(c) Minority interest $ 16,187
Real estate investments - net $ 16,187
To eliminate minority interest of SunCor JV partners
(d) Real estate investments - net $ 4,753
Other - assets $ 4,753
To reclass PNW capitalized interest related to SunCor (65-1210-00001)
Account #1211
(e) Other current liabilities $ 5,039
Other deferred credits $ 5,039
To reclass PNW deferred comp to long-term (65-2420-00006 thru 00008)
Account #2421
ADJUSTING AND ELIMINATION ENTRIES
DECEMBER 31, 2001
(f) Other deferred debits $ 2,911
Other - assets $ 2,911
To reclass PNW unamortized debt to long-term (acct 1810 UNAMORT DEBT)
(g) Deferred income taxes (liability) $ 25,091
Deferred income taxes (asset) $ 25,091
(h) Short term borrowing $ 11,400
A/R $ 11,400
To eliminate loan from eldo
Account 2230&2330
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
PERIOD ENDED DECEMBER 31, 2001
(THOUSANDS OF DOLLARS)
(UNAUDITED)
PWCC APS PWMT SUNCOR ELDO
----------- ----------- ----------- ----------- -----------
OPERATING REVENUES:
Electric $ 3,310,792 $ 1,165,498
Real Estate 168,908
----------- ----------- ----------- ----------- -----------
Total -- 3,310,792 1,165,498 168,908 --
----------- ----------- ----------- ----------- -----------
FUEL EXPENSES:
Fuel for electric generation 391,771
Purchased power 1,348,872 1,087,744
----------- ----------- ----------- ----------- -----------
Total -- 1,740,643 1,087,744 -- --
----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Operations and maintenance (2,801) 465,561 18,970
Real estate operations 153,365
Depreciation and amortization 175 420,893 3,775
Taxes other than income taxes 101,077
----------- ----------- ----------- ----------- -----------
Total (2,626) 987,531 18,970 157,140 --
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 2,626 582,618 58,784 11,768 --
----------- ----------- ----------- ----------- -----------
INTEREST AND OTHER EXPENSES
Interest on long-term debt 28,768 126,118 10,546
Other interest 3,675 7,057 106
Capitalized interest (146) (14,964) (106) (6,952)
Other, net (334,977) 583 2,582 (340)
----------- ----------- ----------- ----------- -----------
Total (302,680) 118,794 -- 6,176 (340)
----------- ----------- ----------- ----------- -----------
Income from continuing operations
before income taxes 305,306 463,824 58,784 5,592 340
Income Tax Expense (Benefit) (6,860) 183,136 23,173 2,255 134
----------- ----------- ----------- ----------- -----------
Income from continuing operations 312,166 280,688 35,611 3,337 206
Accounting change (15,201)
----------- ----------- ----------- ----------- -----------
NET INCOME (L0SS) 312,166 265,487 35,611 3,337 206
=========== =========== =========== =========== ===========
ADJUSTMENTS & ELIMINATIONS
ENERGY ------------------------------------
PWE SERVICES DEBIT CREDIT TOTAL
----------- ----------- ----------- ----------- -----------
OPERATING REVENUES:
Electric $ 79,481 24,237 $ 197,543(f,i,j,k,n) 4,382,465
Real Estate 168,908
----------- ----------- ----------- ----------- -----------
Total 79,481 24,237 197,543 -- 4,551,373
----------- ----------- ----------- ----------- -----------
FUEL EXPENSES:
Fuel for electric generation 13,156 404,927
Purchased power 20,218 (197,543)(f,i,j,k,n) 2,259,291
----------- ----------- ----------- ----------- -----------
Total 13,156 20,218 -- (197,543) 2,664,218
----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES:
Operations and maintenance 33,972 14,384 (9)(c) 530,095
Real estate operations 97(b) -- 153,462
Depreciation and amortization 2,061 999 427,903
Taxes other than income taxes -- (9)(c) 101,068
----------- ----------- ----------- ----------- -----------
Total 36,033 15,383 88 (9) 1,212,528
----------- ----------- ----------- ----------- -----------
OPERATING INCOME 30,292 (11,364) 197,455 (197,552) 674,627
----------- ----------- ----------- ----------- -----------
INTEREST AND OTHER EXPENSES
Interest on long-term debt -- 165,432
Other interest 25,136 558 (26,142)(e,g,l,m) 10,390
Capitalized interest (25,136) (558) (47,862)
Other, net 619 (1,391) (338,786)(a,e,g,l,m) 97(b) 5,765
----------- ----------- ----------- ----------- -----------
Total 619 (1,391) (338,786) (26,045) 133,725
----------- ----------- ----------- ----------- -----------
Income from continuing operations
before income taxes 29,673 (9,973) 536,241 (223,597) 540,902
Income Tax Expense (Benefit) 11,697 213,535
----------- ----------- ----------- ----------- -----------
Income from continuing operations 17,976 (9,973) 536,241 (223,597) 327,367
Accounting change -- (15,201)
----------- ----------- ----------- ----------- -----------
NET INCOME (L0SS) 17,976 (9,973) 536,241 (223,597) 312,166
=========== =========== =========== =========== ===========
ADJUSTING AND ELIMINATING ENTRIES
PERIOD ENDED DECEMBER 31, 2001
(a) Other - net (Subs income) $ 312,644
Retained Earnings $ 312,644
To eliminate PWCC Equity in earnings from subsidiaries
PWCC
----------
APS $ 265,487
PWMT $ 35,611
Pinnacle West Energy 17,976
Energy Services (9,973)
SunCor 3,337
El Dorado 206
----------
Total $ 312,644
==========
(b) Real Estate Operations $ 97
Other - net $ 97
To reclass Capitalized Interest for SunCor Land Sales
(c) Taxes other than income taxes $ (9)
Other - net $ (9)
To reclass PNW property taxes
(d) Taxes other than income taxes $ --
Real estate operations $ --
To reclass SunCor property taxes
(e) Other, net (El Dorado interest income) $ 342
Other interest $ 342
Equal to interest income on eldo income statement
(f) Electricity Sales $ 15,148
Purchased Power $ 15,148
To eliminate sales from APS to APSES (Amount is equal to ES purchased
power)
(g) Interest Income - PNW $ 25,136
Interest Expense - PWE $ 25,136
To eliminate interest expense/income on loan from PNW to PWE
(h) Interest Income - PNW $ --
Interest Expense - Suncor $ --
To eliminate interest expense/income on unpaid Suncor dividend
(i) Electric Revenues $ 63,663
Purchased Power $ 63,663
To eliminate transfer pricing transactions BETWEEN ENTITY 20,75 AND 00
ADJUSTING AND ELIMINATING ENTRIES
PERIOD ENDED DECEMBER 31, 2001
(j) Electric Revenues $ 3,252
cwip - PWE $ 3,252
cwip - PWE 3,252
Purchased Power $ 3,252
To eliminate transfer pricing transactions BETWEEN ENTITY 20 AND 75
(k) Electric Revenues $ 65,643
Purchased Power $ 65,643
To eliminate revenue and pp between entity 20 and 75
(l) Interest Income - PNW $ 106
Interest Expense - PM $ 106
To eliminate interest expense/income on loan from PNW to PM
(m) Interest Income - PNW $ 558
Interest Expense - ES $ 558
To eliminate interest expense/income on loan from PNW to ES
(n) Electric Revenues $ 49,837
Purchased Power $ 49,837
To eliminate Citizens revenue between 00 and 20
CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS OF DECEMBER 31, 2001
1000 SCOTT D. LENA M. PAUL N. 3500 ALICE K.
SUNCOR LPSCO RANCHLAND SASI SMLP PVGC
------------------------------------------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 6,188,317 979,336 508,222 320,765 487,319 (37,483)
ACCOUNTS RECEIVABLE 93,075 287,056 18,545 87,882 3,000,000 36,525
INTERCOMPANY ACCOUNTS:
SASI 86
LPSCO 137,030
CORAL CANYON 650,371
SMLP 2,736
PVGC
CORAL CANYON GOLF (140,602)
NORTHEAST 7,378,171
NORTHEAST CONSTRUCTION 7,675,340
PV MARKETING & CONSTRUCTION (3,548,396)
HOMEBUILDING I/C INTEREST 7,126,277
HOMEBUILDING CASH ADVANCES (5,825,883)
COMMERCIAL - GENERAL
SUNRIDGE - DEVELOPMENT 6,085
SUNRIDGE - GOLF 139,179
STONERIDGE - DEVELOPMENT I/C 116,854
STONERIDGE HOMEBUILDING I/C (21,086)
SEDONA - DEVELOPMENT 23,770
SEDONA - GOLF 99,291
CLUB WEST 98,193
WIGWAM RESORT 36,561
HFS FINANCIAL SERVICES 13,696
WESTWORLD DEVELOPMENT 5,786
SANCTUARY GOLF 94,258
INTEREST RECEIVABLE 114,720
NOTES RECEIVABLE 1,612,901
INVENTORIES 78,164
PREPAID EXPENSES 107,666 54,214
HOME INVENTORY GOLDEN HERITAGE 6,888
HOME INVENTORY RANCHO VIEJO
HOME INVENTORY CORAL CANYON
HOME INVENTORY STONERIDGE
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 22,191,284 1,266,392 526,767 408,647 3,487,319 131,420
LONG-TERM ASSETS
INVESTMENT IN HOMEBUILDING:
INVEST IN GOLDEN HERITAGE 13,600,821
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM 517,850
INVESTMENT IN GENERAL COMM OPS 93,052,838
INVESTMENT IN FIDDLESTICKS-SCOTTS (3,916,947)
INVESTMENT IN FUNTASTICKS (965,769)
INVESTMENT IN FIDDLESTICKS-TEMPE (1,387,523)
INVESTMENT IN APS PROPERTIES 559,796
INVESTMENT IN BLACK CANYON CP 1,659,298
INVESTMENT IN PV MARKETPLACE 9,838,129
INVESTMENT IN PV PAVILIONS 4,358,331
INVESTMENT IN ALAMEDA CROSSING 859,781
INVESTMENT IN PV CORNERSTONE 4,219,079
INVESTMENT IN PV CROSSING 1,086,538
INVESTMENT IN PALM VALLEY OFFICE PARK 577,835
INVESTMENT IN METROCENTER 281,411
INVESTMENT IN RESTORATION PLACE (103,015)
INVESTMENT IN LITCHFIELD PARK OPS 198,016
INVESTMENT IN AUTOPLEX (261,979)
INVESTMENT IN TALAVI (236,689)
INVESTMENT IN LP PROF. PLAZA 19,758
INVESTMENT IN PV PAVILIONS/WEST (2,044,837)
DEVELOPMENT PROJECTS:
CORAL CANYON
HIDDEN HILLS
RANCHO VIEJO
PALM VALLEY
STONERIDGE
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS
SCOTTSDALE MOUNTAIN 539,709
MARKETPLACE - AUTOPLEX
TALAVI
WIGWAM OUTLET STORES
GOLDEN HERITAGE
BILTMORE ESTATES
BLACK CANYON COMMERCE PARK
OTHER COMMERCIAL LAND
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP
INVEST IN HAYDEN FERRY LAKESIDE
INVEST IN PV APARTMENTS (I & II)
INVESTMENT IN SUNRIDGE CANYON LLC 1,076,208
INVESTMENT IN SEDONA GOLF LC 3,380,294
INVEST IN TALAVI ASSOCIATES LLC
INVESTMENT IN SANCTUARY GOLF 4,631,608
INVESTMENT IN HFS MORTGAGE
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV 7,160,049
INVEST IN SCOTTS MTN LTD PART 2,599,464
INVESTMENT IN CLUB WEST G.C. 3,296,282
INVESTMENT IN LPSCO 16,723,242
INVESTMENT IN SASI
INVESTMENT IN STONERIDGE 14,299,452
INVESTMENT IN PALM VALLEY GOLF 3,696,861
PALM VALLEY GOLF CONTRIB. CAP 5,412,516
INVESTMENT IN RANCHO VIEJO 24,742,322
INVESTMENT IN PALM VALLEY 154,514,358
INVESTMENT IN CORAL CANYON 27,215,856
INVESTMENT IN RANCHLAND UTILITY (217,956)
INVESTMENT IN HIDDEN HILLS 15,082,432
COMMERCIAL PROPERTIES 11,893,390
WWOS
LONG-TERM NOTES RECEIVABLE 1,067,390
SDC LOAN TO LPSCO 300,000
PROPERTY & EQUIPMENT, NET 1,206,041 36,696 404,939
PREPAID ASSETS AND OTHER 1,973,738
DEFERRED ASSETS (13,946) 711,624 25,425 119,772
DEFERRED INCOME TAXES 25,090,469
WATER & SEWER UTILITY PROP, NET 36,333,268 1,105,775
LPSCO RESTRICTED CASH FUNDS 2,000,509
RANCHO VIEJO RESTRICTED CASH FUNDS
SCOTTSDALE MOUNTAIN RESTRICTED CASH FUNDS
DEPOSITS
--------------------------------------------------------------------------
TOTAL LONG-TERM ASSETS 435,149,402 39,045,401 1,131,200 36,696 539,709 12,418,101
--------------------------------------------------------------------------
TOTAL ASSETS 457,340,686 40,311,793 1,657,967 445,343 4,027,028 12,549,521
==========================================================================
TONYA LARRY W. 5500 5501 3300
CLUB WEST GHH PV KABUTO JV COMM. H HILLS
-------------------------------------------------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 61,109 (597,939) (1,065,384) 1,947,434 (1,153,340) (144,991)
ACCOUNTS RECEIVABLE 17,703 1,151,911 2,868 519,291 26,250
INTERCOMPANY ACCOUNTS:
SASI
LPSCO
CORAL CANYON
SMLP
PVGC
CORAL CANYON GOLF
NORTHEAST
NORTHEAST CONSTRUCTION
PV MARKETING & CONSTRUCTION
HOMEBUILDING I/C INTEREST
HOMEBUILDING CASH ADVANCES
COMMERCIAL - GENERAL
SUNRIDGE - DEVELOPMENT
SUNRIDGE - GOLF
STONERIDGE - DEVELOPMENT I/C
STONERIDGE HOMEBUILDING I/C
SEDONA - DEVELOPMENT
SEDONA - GOLF
CLUB WEST
WIGWAM RESORT
HFS FINANCIAL SERVICES
WESTWORLD DEVELOPMENT
SANCTUARY GOLF
INTEREST RECEIVABLE
NOTES RECEIVABLE 20,000
INVENTORIES 73,287 65,974
PREPAID EXPENSES 25,783 9,215 11,324
HOME INVENTORY GOLDEN HERITAGE 29,799,243
HOME INVENTORY RANCHO VIEJO
HOME INVENTORY CORAL CANYON
HOME INVENTORY STONERIDGE
-------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 177,882 30,362,430 (1,042,516) 1,947,434 (556,751) (118,741)
LONG-TERM ASSETS
INVESTMENT IN HOMEBUILDING:
INVEST IN GOLDEN HERITAGE
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM
INVESTMENT IN GENERAL COMM OPS
INVESTMENT IN FIDDLESTICKS-SCOTTS
INVESTMENT IN FUNTASTICKS
INVESTMENT IN FIDDLESTICKS-TEMPE
INVESTMENT IN APS PROPERTIES
INVESTMENT IN BLACK CANYON CP
INVESTMENT IN PV MARKETPLACE
INVESTMENT IN PV PAVILIONS
INVESTMENT IN ALAMEDA CROSSING
INVESTMENT IN PV CORNERSTONE
INVESTMENT IN PV CROSSING
INVESTMENT IN PALM VALLEY OFFICE PARK
INVESTMENT IN METROCENTER
INVESTMENT IN RESTORATION PLACE
INVESTMENT IN LITCHFIELD PARK OPS
INVESTMENT IN AUTOPLEX
INVESTMENT IN TALAVI
INVESTMENT IN LP PROF. PLAZA
INVESTMENT IN PV PAVILIONS/WEST
DEVELOPMENT PROJECTS:
CORAL CANYON
HIDDEN HILLS 13,272,762
RANCHO VIEJO
PALM VALLEY 157,600,296 23,360,385
STONERIDGE
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS 12,473,162
SCOTTSDALE MOUNTAIN
MARKETPLACE - AUTOPLEX 4,833,157
TALAVI 782,548
WIGWAM OUTLET STORES
GOLDEN HERITAGE
BILTMORE ESTATES
BLACK CANYON COMMERCE PARK 3,120,465
OTHER COMMERCIAL LAND 1,402,736
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP 22,133,596
INVEST IN HAYDEN FERRY LAKESIDE 8,243,058
INVEST IN PV APARTMENTS (I & II) (55,582)
INVESTMENT IN SUNRIDGE CANYON LLC
INVESTMENT IN SEDONA GOLF LC
INVEST IN TALAVI ASSOCIATES LLC 1,871,394
INVESTMENT IN SANCTUARY GOLF
INVESTMENT IN HFS MORTGAGE
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV
INVEST IN SCOTTS MTN LTD PART
INVESTMENT IN CLUB WEST G.C.
INVESTMENT IN LPSCO
INVESTMENT IN SASI 268,691
INVESTMENT IN STONERIDGE
INVESTMENT IN PALM VALLEY GOLF
PALM VALLEY GOLF CONTRIB. CAP
INVESTMENT IN RANCHO VIEJO
INVESTMENT IN PALM VALLEY
INVESTMENT IN CORAL CANYON
INVESTMENT IN RANCHLAND UTILITY
INVESTMENT IN HIDDEN HILLS
COMMERCIAL PROPERTIES 8,374,513 25,742,307
WWOS 17,913,187
LONG-TERM NOTES RECEIVABLE 89,100 276,308 1,046,725
SDC LOAN TO LPSCO
PROPERTY & EQUIPMENT, NET 1,047,791 270,439
PREPAID ASSETS AND OTHER
DEFERRED ASSETS 264,214 1,408,922
DEFERRED INCOME TAXES
WATER & SEWER UTILITY PROP, NET
LPSCO RESTRICTED CASH FUNDS
RANCHO VIEJO RESTRICTED CASH FUNDS
SCOTTSDALE MOUNTAIN RESTRICTED CASH FUNDS
DEPOSITS 86,411
-------------------------------------------------------------------------------
TOTAL LONG-TERM ASSETS 8,374,513 1,223,302 158,624,366 13,519,887 110,811,755 13,272,762
-------------------------------------------------------------------------------
TOTAL ASSETS 8,552,395 31,585,732 157,581,850 15,467,321 110,255,004 13,154,021
===============================================================================
7500 6600 3900
STONERIDGE RANCHO VIEJO C. CANYON
---------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 508,983 1,023,812 150,337
ACCOUNTS RECEIVABLE 176,174 (1,087)
INTERCOMPANY ACCOUNTS:
SASI
LPSCO
CORAL CANYON
SMLP
PVGC
CORAL CANYON GOLF 140,602
NORTHEAST
NORTHEAST CONSTRUCTION
PV MARKETING & CONSTRUCTION
HOMEBUILDING I/C INTEREST
HOMEBUILDING CASH ADVANCES
COMMERCIAL - GENERAL
SUNRIDGE - DEVELOPMENT
SUNRIDGE - GOLF
STONERIDGE - DEVELOPMENT I/C
STONERIDGE HOMEBUILDING I/C
SEDONA - DEVELOPMENT
SEDONA - GOLF
CLUB WEST
WIGWAM RESORT
HFS FINANCIAL SERVICES
WESTWORLD DEVELOPMENT
SANCTUARY GOLF
INTEREST RECEIVABLE
NOTES RECEIVABLE 682,703
INVENTORIES 65,578
PREPAID EXPENSES 450 314,290
HOME INVENTORY GOLDEN HERITAGE
HOME INVENTORY RANCHO VIEJO 4,914,185
HOME INVENTORY CORAL CANYON 3,390,924
HOME INVENTORY STONERIDGE 336,257
------------------------------------
TOTAL CURRENT ASSETS 845,240 6,114,621 4,743,347
LONG-TERM ASSETS
INVESTMENT IN HOMEBUILDING:
INVEST IN GOLDEN HERITAGE
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM
INVESTMENT IN GENERAL COMM OPS
INVESTMENT IN FIDDLESTICKS-SCOTTS
INVESTMENT IN FUNTASTICKS
INVESTMENT IN FIDDLESTICKS-TEMPE
INVESTMENT IN APS PROPERTIES
INVESTMENT IN BLACK CANYON CP
INVESTMENT IN PV MARKETPLACE
INVESTMENT IN PV PAVILIONS
INVESTMENT IN ALAMEDA CROSSING
INVESTMENT IN PV CORNERSTONE
INVESTMENT IN PV CROSSING
INVESTMENT IN PALM VALLEY OFFICE PARK
INVESTMENT IN METROCENTER
INVESTMENT IN RESTORATION PLACE
INVESTMENT IN LITCHFIELD PARK OPS
INVESTMENT IN AUTOPLEX
INVESTMENT IN TALAVI
INVESTMENT IN LP PROF. PLAZA
INVESTMENT IN PV PAVILIONS/WEST
DEVELOPMENT PROJECTS:
CORAL CANYON 14,907,616
HIDDEN HILLS
RANCHO VIEJO 18,580,794
PALM VALLEY
STONERIDGE 24,847,945
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS
SCOTTSDALE MOUNTAIN
MARKETPLACE - AUTOPLEX
TALAVI
WIGWAM OUTLET STORES
GOLDEN HERITAGE
BILTMORE ESTATES
BLACK CANYON COMMERCE PARK
OTHER COMMERCIAL LAND
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP
INVEST IN HAYDEN FERRY LAKESIDE
INVEST IN PV APARTMENTS (I & II)
INVESTMENT IN SUNRIDGE CANYON LLC
INVESTMENT IN SEDONA GOLF LC
INVEST IN TALAVI ASSOCIATES LLC
INVESTMENT IN SANCTUARY GOLF
INVESTMENT IN HFS MORTGAGE
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV
INVEST IN SCOTTS MTN LTD PART
INVESTMENT IN CLUB WEST G.C.
INVESTMENT IN LPSCO
INVESTMENT IN SASI
INVESTMENT IN STONERIDGE
INVESTMENT IN PALM VALLEY GOLF
PALM VALLEY GOLF CONTRIB. CAP
INVESTMENT IN RANCHO VIEJO
INVESTMENT IN PALM VALLEY
INVESTMENT IN CORAL CANYON
INVESTMENT IN RANCHLAND UTILITY 1,120,126
INVESTMENT IN HIDDEN HILLS
COMMERCIAL PROPERTIES 8,528,736
WWOS
LONG-TERM NOTES RECEIVABLE
SDC LOAN TO LPSCO
PROPERTY & EQUIPMENT, NET 223,529 266,015 573,886
PREPAID ASSETS AND OTHER 100,120
DEFERRED ASSETS 1,989
DEFERRED INCOME TAXES
WATER & SEWER UTILITY PROP, NET 264,261
LPSCO RESTRICTED CASH FUNDS
RANCHO VIEJO RESTRICTED CASH FUNDS (7,746)
SCOTTSDALE MOUNTAIN RESTRICTED CASH FUNDS
DEPOSITS
------------------------------------
TOTAL LONG-TERM ASSETS 25,171,594 20,223,450 24,012,227
------------------------------------
TOTAL ASSETS 26,016,834 26,338,071 28,755,574
====================================
CONSOLIDATING AND ELIMINATING ENTRIES
--------------------------------------------------
REF DEBIT REF CREDIT CONSOLIDATED
----------------------------------------------------------------
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS 9,176,497
ACCOUNTS RECEIVABLE AA 176,174 5,240,019
INTERCOMPANY ACCOUNTS:
SASI K 86 0
LPSCO H 137,030 0
CORAL CANYON X 650,371 0
SMLP J 2,736 0
PVGC 0
CORAL CANYON GOLF 0
NORTHEAST A 7,378,171 0
NORTHEAST CONSTRUCTION A 7,675,340 0
PV MARKETING & CONSTRUCTION A 16,175,670 A 12,627,274 0
HOMEBUILDING I/C INTEREST C 7,126,277 0
HOMEBUILDING CASH ADVANCES B 5,825,883 0
COMMERCIAL - GENERAL 0
SUNRIDGE - DEVELOPMENT 6,085
SUNRIDGE - GOLF 139,179
STONERIDGE - DEVELOPMENT I/C CC 116,854 0
STONERIDGE HOMEBUILDING I/C CC 21,267 CC 181 0
SEDONA - DEVELOPMENT 23,770
SEDONA - GOLF 99,291
CLUB WEST BB 98,193 0
WIGWAM RESORT 36,561
HFS FINANCIAL SERVICES 13,696
WESTWORLD DEVELOPMENT 5,786
SANCTUARY GOLF 94,258
INTEREST RECEIVABLE 114,720
NOTES RECEIVABLE 2,315,604
INVENTORIES 283,003
PREPAID EXPENSES 522,942
HOME INVENTORY GOLDEN HERITAGE E 4,719,745 25,086,386
HOME INVENTORY RANCHO VIEJO 4,914,185
HOME INVENTORY CORAL CANYON 3,390,924
HOME INVENTORY STONERIDGE 336,257
---------- -------------------------
TOTAL CURRENT ASSETS 22,022,820 40,708,432 51,799,163
LONG-TERM ASSETS
INVESTMENT IN HOMEBUILDING:
INVEST IN GOLDEN HERITAGE D 13,600,821 0
GOLDEN HERITAGE DUE DILIGENCE 0
INVESTMENT IN SCM D 517,850 0
INVESTMENT IN GENERAL COMM OPS S 93,052,838 0
INVESTMENT IN FIDDLESTICKS-SCOTTS S 5,739,462 S 1,822,515 0
INVESTMENT IN FUNTASTICKS S 1,642,350 S 676,581 0
INVESTMENT IN FIDDLESTICKS-TEMPE S 2,980,199 S 1,592,676 0
INVESTMENT IN APS PROPERTIES S 559,796 0
INVESTMENT IN BLACK CANYON CP S 1,659,298 0
INVESTMENT IN PV MARKETPLACE S 9,838,129 0
INVESTMENT IN PV PAVILIONS S 4,358,331 0
INVESTMENT IN ALAMEDA CROSSING S 859,781 0
INVESTMENT IN PV CORNERSTONE S 4,219,079 0
INVESTMENT IN PV CROSSING S 1,086,538 0
INVESTMENT IN PALM VALLEY OFFICE PARK S 577,835 0
INVESTMENT IN METROCENTER S 281,411 0
INVESTMENT IN RESTORATION PLACE S 103,015 S 0
INVESTMENT IN LITCHFIELD PARK OPS S 198,016 0
INVESTMENT IN AUTOPLEX S 261,979 0
INVESTMENT IN TALAVI S 236,689 0
INVESTMENT IN LP PROF. PLAZA S 19,758 0
INVESTMENT IN PV PAVILIONS/WEST S 2,044,837 0
DEVELOPMENT PROJECTS:
CORAL CANYON 14,907,616
HIDDEN HILLS T 3,770,897 17,043,659
RANCHO VIEJO 18,580,794
PALM VALLEY 180,960,681
STONERIDGE 24,847,945
LITCHFIELD GREENS 0
VILLAGE OF LITCHFIELD GREENS 12,473,162
SCOTTSDALE MOUNTAIN 539,709
MARKETPLACE - AUTOPLEX 4,833,157
TALAVI 782,548
WIGWAM OUTLET STORES 0
GOLDEN HERITAGE 0
BILTMORE ESTATES 0
BLACK CANYON COMMERCE PARK 3,120,465
OTHER COMMERCIAL LAND 1,402,736
EQUITY INVESTMENTS: 0
EQUITY IN CTRPT ASSOC-LLP 22,133,596
INVEST IN HAYDEN FERRY LAKESIDE 8,243,058
INVEST IN PV APARTMENTS (I & II) (55,582)
INVESTMENT IN SUNRIDGE CANYON LLC 1,076,208
INVESTMENT IN SEDONA GOLF LC 3,380,294
INVEST IN TALAVI ASSOCIATES LLC 1,871,394
INVESTMENT IN SANCTUARY GOLF 4,631,608
INVESTMENT IN HFS MORTGAGE 0
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV R 10,051,996 (2,891,947)
INVEST IN SCOTTS MTN LTD PART I 20,413,693 I 23,016,106 (2,949)
INVESTMENT IN CLUB WEST G.C. BB 603,718 BB 3,900,000
INVESTMENT IN LPSCO F 16,723,242
INVESTMENT IN SASI L 650,000 L 918,691
INVESTMENT IN STONERIDGE CC 180,878 CC 14,480,330
INVESTMENT IN PALM VALLEY GOLF M 2,461,312 M 6,158,173
PALM VALLEY GOLF CONTRIB. CAP N 5,412,516
INVESTMENT IN RANCHO VIEJO U 24,742,322
INVESTMENT IN PALM VALLEY V 154,514,358
INVESTMENT IN CORAL CANYON W 475,917 W 27,691,773
INVESTMENT IN RANCHLAND UTILITY AA 217,956 AA 1,120,126
INVESTMENT IN HIDDEN HILLS T 15,082,432
COMMERCIAL PROPERTIES 54,538,946
WWOS 17,913,187
LONG-TERM NOTES RECEIVABLE 2,479,523
SDC LOAN TO LPSCO G 300,000 0
PROPERTY & EQUIPMENT, NET 4,029,336
PREPAID ASSETS AND OTHER 2,073,858
DEFERRED ASSETS 2,518,000
DEFERRED INCOME TAXES 25,090,469
WATER & SEWER UTILITY PROP, NET 37,703,304
LPSCO RESTRICTED CASH FUNDS 2,000,509
RANCHO VIEJO RESTRICTED CASH FUNDS (7,746)
SCOTTSDALE MOUNTAIN RESTRICTED CASH FUNDS
DEPOSITS 86,411
---------- -------------------------
TOTAL LONG-TERM ASSETS 41,782,902 439,033,318 466,303,949
---------- -------------------------
TOTAL ASSETS 63,805,722 479,741,750 518,103,112
========== =========================
1000 SCOTT D. LENA M. PAUL N. 3500 ALICE K.
SUNCOR LPSCO RANCHLAND SASI SMLP PVGC
------------------------------------------------------------------------
CURRENT LIABILITIES
A/P & RETENTION (21,589) 407,518 34,370 33,246 22,445
ACCRUED LIABILITIES 2,398,617 1,767,642 771 100,470 13,769 212,569
STATE INCOME TAX LIABILITY 1,150,056
INTERCOMPANY ACCOUNTS:
LPSCO - SDC 137,030
SMLP - SDC 2,736
SCM-SDC CASH ADVANCES
PV MARKETING & CONSTRUCTION
NORTHEAST
NORTHEAST CONSTRUCTION
INTERCOMPANY INTEREST PAYABLE
CLUB WEST GOLF COURSE
PALM VALLEY GOLF COURSE 5,412,516
CORAL CANYON GOLF COURSE
RANCHLAND-RANCHO VIEJO 176,174
STONERIDGE
INTEREST PAYABLE - RLC 602,717
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE 4,719,745
PWCC INTERCO PAYABLE 124,350
CUSTOMER DEPOSITS 41,813
CURRENT MATURITIES OF LTD
LPSCO BONDS PAYABLE 125,000
TEXTRON LOAN - PVGC 67,236
CLUB WEST GOLF COURSE LOAN
-------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 8,973,896 2,437,190 176,945 176,653 49,751 5,714,766
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
CORPORATE TERM NOTE
CORPORATE RLC 128,000,000
LPSCO BONDS 12,590,000
TEXTRON LOAN - PVGC 3,137,893
LOAN - CLUB WEST
PENSION LIABILITY - SUNCOR 6,896,252
PENSION LIABILITY - WIGWAM RESORT 276,203
ACCRUED STATE INCOME TAX
OTHER ACCRUED LIABILITIES 7,302,085 582,118
DEFERRED TAXES
LONG-TERM CUSTOMER DEPOSITS 8,512,172 578,852
CONTRIB PROPERTY AIA
-------------------------------------------------------------------------
TOTAL L/T LIABILITIES 142,474,540 21,684,290 578,852 3,137,893
-------------------------------------------------------------------------
TOTAL LIABILITIES 151,448,436 24,121,480 755,797 176,653 49,751 8,852,659
=========================================================================
MINORITY INTEREST
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 355,368,523
SDC EARNED SURPLUS-BEGINNING (53,835,377)
SDC EARNED SURPLUS-CURRENT 3,337,104
SUBSIDIARY EARNINGS-CURRENT 762,146 (65,388) 33,447 444,537 (1,047,254)
SUBSIDIARY EQUITY:
LPSCO 15,428,167
SASI 235,244
SMLP #3500 3,532,741
PVGC 4,744,115
CLUB WEST
HOMEBUILDING
PALM VALLEY #5500
KABUTO JV #3000
COMMERCIAL PROPERTIES #2000
HIDDEN HILLS #3300
RANCHO VIEJO #6600
RANCHLAND UTILITY 967,558
CORAL CANYON #3900
STONERIDGE
-------------------------------------------------------------------------
TOTAL EQUITY 305,892,250 16,190,313 902,170 268,691 3,977,278 3,696,861
-------------------------------------------------------------------------
TOTAL LIABS AND EQUITY 457,340,686 40,311,793 1,657,967 445,344 4,027,029 12,549,520
=========================================================================
TONYA LARRY W. 5500 5501
CLUB WEST GHH PV KABUTO JV COMM.
-----------------------------------------------------------------
CURRENT LIABILITIES
A/P & RETENTION 53,531 414,491 507,447 131,082 429,803
ACCRUED LIABILITIES 204,978 3,726,150 1,298,405 860,962 758,872
STATE INCOME TAX LIABILITY
INTERCOMPANY ACCOUNTS:
LPSCO - SDC
SMLP - SDC
SCM-SDC CASH ADVANCES (5,825,883)
PV MARKETING & CONSTRUCTION (3,548,396)
NORTHEAST 6,674,727
NORTHEAST CONSTRUCTION 7,675,340
INTERCOMPANY INTEREST PAYABLE 7,126,277
CLUB WEST GOLF COURSE 98,193
PALM VALLEY GOLF COURSE
CORAL CANYON GOLF COURSE
RANCHLAND-RANCHO VIEJO
STONERIDGE
INTEREST PAYABLE - RLC
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE
PWCC INTERCO PAYABLE
CUSTOMER DEPOSITS 1,224,354
CURRENT MATURITIES OF LTD
LPSCO BONDS PAYABLE
TEXTRON LOAN - PVGC
CLUB WEST GOLF COURSE LOAN 140,109
-----------------------------------------------------------------
TOTAL CURRENT LIABILITIES 496,811 17,467,060 1,805,852 992,044 1,188,675
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO BONDS
TEXTRON LOAN - PVGC
LOAN - CLUB WEST 4,566,405
PENSION LIABILITY - SUNCOR
PENSION LIABILITY - WIGWAM RESORT
ACCRUED STATE INCOME TAX
OTHER ACCRUED LIABILITIES 1,261,639 1,274,967
DEFERRED TAXES
LONG-TERM CUSTOMER DEPOSITS
CONTRIB PROPERTY AIA
-----------------------------------------------------------------
TOTAL L/T LIABILITIES 4,566,405 1,261,639 1,274,967
-----------------------------------------------------------------
TOTAL LIABILITIES 5,063,216 17,467,060 3,067,491 992,044 2,463,642
=================================================================
MINORITY INTEREST
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT (619,963) 6,960,586 1,904,267 1,662,895 13,415,567
SUBSIDIARY EQUITY:
LPSCO
SASI
SMLP #3500
PVGC
CLUB WEST 4,109,143
HOMEBUILDING 7,158,086
PALM VALLEY #5500 152,610,091
KABUTO JV #3000 12,812,383
COMMERCIAL PROPERTIES #2000 94,375,793
HIDDEN HILLS #3300
RANCHO VIEJO #6600
RANCHLAND UTILITY
CORAL CANYON #3900
STONERIDGE
-----------------------------------------------------------------
TOTAL EQUITY 3,489,180 14,118,672 154,514,358 14,475,278 107,791,360
-----------------------------------------------------------------
TOTAL LIABS AND EQUITY 8,552,396 31,585,732 157,581,849 15,467,322 110,255,002
=================================================================
3300 7500 6600 3900
H HILLS STONERIDGE RANCHO VIEJO C. CANYON
---------------------------------------------------
CURRENT LIABILITIES
A/P & RETENTION 339,426 598,116 1,017,397 853,315
ACCRUED LIABILITIES 797,297 802,121 276,495 36,033
STATE INCOME TAX LIABILITY
INTERCOMPANY ACCOUNTS:
LPSCO - SDC
SMLP - SDC
SCM-SDC CASH ADVANCES (SunCor Wire 107260)
PV MARKETING & CONSTRUCTION
NORTHEAST
NORTHEAST CONSTRUCTION
INTERCOMPANY INTEREST PAYABLE
CLUB WEST GOLF COURSE
PALM VALLEY GOLF COURSE
CORAL CANYON GOLF COURSE 650,371
RANCHLAND-RANCHO VIEJO
STONERIDGE 117,036
INTEREST PAYABLE - RLC
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE
PWCC INTERCO PAYABLE
CUSTOMER DEPOSITS 301,859
CURRENT MATURITIES OF LTD
LPSCO BONDS PAYABLE
TEXTRON LOAN - PVGC
CLUB WEST GOLF COURSE LOAN
-------------------------------------------------
TOTAL CURRENT LIABILITIES 1,136,723 1,517,273 1,595,751 1,539,719
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO BONDS
TEXTRON LOAN - PVGC
LOAN - CLUB WEST
PENSION LIABILITY - SUNCOR
PENSION LIABILITY - WIGWAM RESORT
ACCRUED STATE INCOME TAX
OTHER ACCRUED LIABILITIES
DEFERRED TAXES
LONG-TERM CUSTOMER DEPOSITS
CONTRIB PROPERTY AIA
---------------------------------------------------
TOTAL L/T LIABILITIES
---------------------------------------------------
TOTAL LIABILITIES 1,136,723 1,517,273 1,595,751 1,539,719
===================================================
MINORITY INTEREST
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT 909,962 (361,756) 1,529,638 (276,572)
SUBSIDIARY EQUITY:
LPSCO
SASI
SMLP #3500
PVGC
CLUB WEST
HOMEBUILDING
PALM VALLEY #5500
KABUTO JV #3000
COMMERCIAL PROPERTIES #2000
HIDDEN HILLS #3300 11,107,336
RANCHO VIEJO #6600 23,212,683
RANCHLAND UTILITY
CORAL CANYON #3900 27,492,428
STONERIDGE 24,861,318
---------------------------------------------------
TOTAL EQUITY 12,017,298 24,499,562 24,742,321 27,215,856
---------------------------------------------------
TOTAL LIABS AND EQUITY 13,154,021 26,016,835 26,338,072 28,755,575
===================================================
CONSOLIDATING AND ELIMINATING ENTRIES
--------------------------------------------------
REF DEBIT REF CREDIT CONSOLIDATED
---------------------------------------------------------------------------
CURRENT LIABILITIES
A/P & RETENTION 64,518 4,885,116
ACCRUED LIABILITIES (K,F) 872,639 12,382,512
STATE INCOME TAX LIABILITY 1,150,056
INTERCOMPANY ACCOUNTS:
LPSCO - SDC H 137,030 0
SMLP - SDC J 2,736 0
SCM-SDC CASH ADVANCES (SunCor Wire 107260) A 5,825,883 0
PV MARKETING & CONSTRUCTION A 12,627,274 A 16,175,670 0
NORTHEAST A 6,674,727 0
NORTHEAST CONSTRUCTION A 7,675,340 0
INTERCOMPANY INTEREST PAYABLE C 7,126,277 0
CLUB WEST GOLF COURSE BB 98,193 0
PALM VALLEY GOLF COURSE N 5,412,516 0
CORAL CANYON GOLF COURSE X 650,371 0
RANCHLAND-RANCHO VIEJO AA 176,174 0
STONERIDGE CC 138,121 CC 21,085 0
INTEREST PAYABLE - RLC 602,717
S/T NOTES PAYABLE 0
$45 MILLION TERM LOAN 0
$55 MILLION RLC 0
TEXTRON LOAN - PVGC 0
DEF PROFIT & UNEARNED REVENUE E 4,719,745 0
PWCC INTERCO PAYABLE 124,350
CUSTOMER DEPOSITS 1,568,026
CURRENT MATURITIES OF LTD 0
LPSCO BONDS PAYABLE 125,000
TEXTRON LOAN - PVGC 67,236
CLUB WEST GOLF COURSE LOAN 140,109
---------- -----------------------------
TOTAL CURRENT LIABILITIES 46,311,143 22,087,156 21,045,122
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
CORPORATE TERM NOTE 0
CORPORATE RLC 128,000,000
LPSCO BONDS 12,590,000
TEXTRON LOAN - PVGC 3,137,893
LOAN - CLUB WEST 4,566,405
PENSION LIABILITY - SUNCOR 6,896,252
PENSION LIABILITY - WIGWAM RESORT 276,203
ACCRUED STATE INCOME TAX
OTHER ACCRUED LIABILITIES 10,420,809
DEFERRED TAXES
LONG-TERM CUSTOMER DEPOSITS 9,091,024
CONTRIB PROPERTY AIA
----------- -----------------------------
TOTAL L/T LIABILITIES 174,978,586
----------- -----------------------------
TOTAL LIABILITIES 46,311,143 22,087,156 196,023,708
=========== =============================
MINORITY INTEREST (BB,I) 10,972,020 (C,I,R,BB) 27,159,174 16,187,154
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 355,368,523
SDC EARNED SURPLUS-BEGINNING (53,835,377)
SDC EARNED SURPLUS-CURRENT 3,337,104
SUBSIDIARY EARNINGS-CURRENT (D,F,I,L,R,S,U,V,T) 27,623,045 (M,W,AA,BB,CC) 2,370,933 0
SUBSIDIARY EQUITY:
LPSCO (F,G) 15,428,167
SASI L 885,244 L 650,000
SMLP #3500 I 34,453,474 I 30,920,733
PVGC M 6,158,173 M 1,414,058
CLUB WEST BB 4,377,000 BB 267,857
HOMEBUILDING D 7,158,086
PALM VALLEY #5500 V 152,610,091
KABUTO JV #3000 R 12,814,302 R 1,919
COMMERCIAL PROPERTIES #2000 S 94,375,793
HIDDEN HILLS #3300 T 14,878,234 T 3,770,897 (1)
RANCHO VIEJO #6600 U 23,212,683
RANCHLAND UTILITY AA 1,120,126 AA 152,569 1
CORAL CANYON #3900 W 27,691,773 CC 199,345
STONERIDGE CC 24,861,318
----------- -------------------------
TOTAL EQUITY 458,619,529 66,907,485 322,079,404
----------- -------------------------
TOTAL LIABS AND EQUITY 504,930,672 88,994,641 518,103,112
=========== =========================
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2001 (UNAUDITED)
RANCHLAND
ACCOUNT DESCRIPTION SUNCOR LPSCO UTILITY SCTS MTN
------------------- ------------- ------------- ------------- -------------
REVENUES
Home Sales
Land Sales 13,043,793 773,000
Sale of Assets 14,600,000
Commercial Properties 10,869,721
Utility Sales 128,345 3,708,202 122,642
Management Fees 933,006
------------- ------------- ------------- -------------
TOTAL OPERATING REVENUES 39,574,865 3,708,202 122,642 773,000
OPERATING EXPENSES
Cost of Homes Sold
Cost of Land Sold 3,502,811 269,552
Sale of Assets 8,581,401
Commercial Properties 7,717,105
Utility Expense (6,178) 2,274,164 149,146
Land Project Costs 1,566,759 24,949
General & Administrative 15,175,038 53,465
Depreciation & Amortization 2,474,015 406,106 38,884
------------- ------------- ------------- -------------
TOTAL OPERATING EXPENSES 39,010,951 2,680,270 188,030 347,966
NET OPERATING INCOME/(LOSS) 563,914 1,027,932 (65,388) 425,034
OTHER INCOME AND GAINS
Equity in Joint Ventures 2,574,542
Interest Income 554,579 133,254 7,841
Other (6,652,022) 276,708 14,942
------------- ------------- ------------- -------------
TOTAL OTHER INCOME AND GAINS (3,522,901) 409,962 22,783
INTEREST EXPENSE, NET
Interest Expense 9,690,077 527,191 3,279
Less: Capitalized Interest (6,614,227) (338,061)
------------- ------------- ------------- -------------
TOTAL INTEREST EXPENSE, NET 3,075,850 189,130 3,279
Minority Interest (209,585) --
INCOME BEFORE TAXES (5,825,252) 1,248,764 (65,388) 444,538
Income Taxes 2,255,297 --
------------- ------------- ------------- -------------
NET INCOME/(LOSS) $ (8,080,549) $ 1,248,764 $ (65,388) $ 444,538
============= ============= ============= =============
HIDDEN CORAL
ACCOUNT DESCRIPTION PVGC GHH HILLS CANYON
------------------- ------------- ------------- ------------- -------------
REVENUES
Home Sales 72,882,646 9,455,693
Land Sales 128,750 5,318,750 1,001,000
Sale of Assets
Commercial Properties 2,564,722 2,022,992
Utility Sales
Management Fees
------------- ------------- ------------- -------------
TOTAL OPERATING REVENUES 2,564,722 73,011,396 5,318,750 12,479,685
OPERATING EXPENSES
Cost of Homes Sold 58,929,795 7,953,203
Cost of Land Sold 103,962 3,955,905 831,792
Sale of Assets
Commercial Properties 2,757,802 2,035,132
Utility Expense
Land Project Costs 24,401 300,262 154,132
General & Administrative -- 5,508,264 155,421 1,721,299
Depreciation & Amortization 537,528 243,412 44,341
------------- ------------- ------------- -------------
TOTAL OPERATING EXPENSES 3,295,330 64,809,834 4,411,588 12,739,899
NET OPERATING INCOME/(LOSS) (730,608) 8,201,562 907,162 (260,214)
OTHER INCOME AND GAINS
Equity in Joint Ventures 320,688
Interest Income 2,525 10,385
Other 149,189 2,800 (23,135)
------------- ------------- ------------- -------------
TOTAL OTHER INCOME AND GAINS 472,402 2,800 (12,750)
INTEREST EXPENSE, NET
Interest Expense 316,647 3,610
Less: Capitalized Interest
------------- ------------- ------------- -------------
TOTAL INTEREST EXPENSE, NET 316,647 -- -- 3,610
Minority Interest
INCOME BEFORE TAXES (1,047,255) 8,673,964 909,962 (276,574)
Income Taxes
------------- ------------- ------------- -------------
NET INCOME/(LOSS) $ (1,047,255) $ 8,673,964 $ 909,962 $ (276,574)
============= ============= ============= =============
RANCHO CONSOLIDATED
ACCOUNT DESCRIPTION VIEJO INCOME
------------------- ------------- -------------
REVENUES
Home Sales 29,992,804 112,331,143
Land Sales 1,094,765 21,360,058
Sale of Assets 14,600,000
Commercial Properties 266,805 15,724,240
Utility Sales 3,959,189
Management Fees 933,006
------------- -------------
TOTAL OPERATING REVENUES 31,354,374 168,907,636
OPERATING EXPENSES
Cost of Homes Sold 25,658,879 92,541,877
Cost of Land Sold 1,055,607 9,719,629
Sale of Assets 8,581,401
Commercial Properties 12,510,039
Utility Expense 2,417,132
Land Project Costs 399,002 2,469,505
General & Administrative 2,721,042 25,334,529
Depreciation & Amortization 30,600 3,774,886
------------- -------------
TOTAL OPERATING EXPENSES 29,865,130 157,348,998
NET OPERATING INCOME/(LOSS) 1,489,244 11,558,638
OTHER INCOME AND GAINS
Equity in Joint Ventures 2,895,230
Interest Income 21,967 730,551
Other 23,500 (6,208,018)
------------- -------------
TOTAL OTHER INCOME AND GAINS 45,467 (2,582,237)
INTEREST EXPENSE, NET
Interest Expense 5,071 10,545,875
Less: Capitalized Interest (6,952,288)
------------- -------------
TOTAL INTEREST EXPENSE, NET 5,071 3,593,587
Minority Interest (209,585)
INCOME BEFORE TAXES 1,529,640 5,592,399
Income Taxes 2,255,297
------------- -------------
NET INCOME/(LOSS) $ 1,529,640 $ 3,337,102
============= =============
DECEMBER 2001 CONSOLIDATING & ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
A. NE CONSTRUCTION INTERCO A/P TO SDC (107245-000 $ 7,675,340.42
PV CONSTRUCTION INTERCO TO SDC (107246-000) $ 12,627,274.26
SDC A/R FROM SCM $ 7,675,340.42
SDC A/R FROM PV CONSTRUCTION $ 12,627,274.26
GH INTERCO CAPITAL FROM SDC - ACQUISITION $ 1,432,265.22
GH INTERCO A/P TO SDC (107250-000) $ 5,242,461.83
PV MARKETING I/C TO SDC (107251-000) $ 16,175,669.88
SDC A/R FROM GH $ 7,378,171.12
GHH PV MARKETING $ 16,175,669.88
B. HOMEBUILDING CASH ADVANCES FROM SDC $ 5,825,883.31
SDC CASH ADVANCES TO HOMEBUILDING $ 5,825,883.31
C. N.E. INTERCO CAPPED INTEREST $ 7,126,276.59
SDC INTERCO INTEREST A/R FROM SCM $ 7,126,276.57
ELIMINATE INTERCO RECEIVABLES/PAYABLES BETWEEN HOMEBUILDING AND SDC
D. HOMEBUILDING ACCUMULATED EARNINGS $ 7,158,085.83
SDC INVESTMENT IN GH $ 13,600,821.33
SDC DUE DILIGENCE COSTS - GHH ACQUISITION
SDC INVESTMENT IN SCM $ 517,849.94
HOMEBUILDING CURRENT YEAR EARNINGS $ 6,960,585.51
ELIMINATE SDC INVESTMENT IN GOLDEN HERITAGE & SCM
E. DEFERRED INTERCO PROFIT $ 4,719,745.08
HOME INVENTORY $ 4,719,745.08
ELIMINATE DEFERRED PROFIT ON INTERCO LOT SALES TO HOMEBUILDING
F. LPSCO COMMON STOCK 78,200.00
LPSCO PAID IN CAPITAL 13,168,180.43
LPSCO EARNINGS - PRIOR 1,881,786.74
LPSCO INCOME TAXES
LPSCO EARNINGS - CURRENT YEAR 762,146.22
872,552.78
SDC INVESTMENT IN LPSCO - CONTRIB CAPITAL 13,206,756.85
SDC INVESTMENT IN LPSCO - EARNINGS 2,643,932.60
SDC DEFERRED TAXES DIFFERENTIAL 872,552.78
ELIMINATE SDC INVESTMENT IN LPSCO
G. LPSCO LONG-TERM NOTES PAYABLE 300,000.00
LPSCO LONG-TERM NOTES PAYABLE
SDC LONG-TERM NOTES RECEIVABLE
SDC LONG-TERM NOTES RECEIVABLE 300,000.00
ELIMINATE LPSCO INTERCOMPANY NOTE WITH SDC
H. LPSCO ACCOUNTS PAYABLE 137,029.73
SDC ACCOUNTS RECEIVABLE 137,029.73
DECEMBER 2001 CONSOLIDATING & ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
ELIMINATE LPSCO INTERCOMPANY A/R WITH SDC
I. SMLP CONTRIBUTED CAPITAL - MINORITY INT X 10,507,040.00
SMLP CONTRIBUTED CAPITAL - SDC GP 490,147.01
SMLP DISTRIBUTED CAPITAL - SDC GP 13,483,361.00
SMLP CONTRIBUTED CAPITAL - SDC LP 2,100,000.00
SMLP DISTRIBUTED CAPITAL - SDC LP 6,930,332.00
SMLP EARNINGS - PRIOR 31,863,326.96
SMLP EARNINGS - CURRENT YEAR 444,537.12
MINORITY INTEREST CONTRIBUTED CAPITAL 10,507,040.00
MINORITY INTEREST - PRIOR (35%) 11,726,317.44
MINORITY INTEREST - CURRENT YEAR (35%) 155,587.99
SDC INVESTMENT IN SMLP - LP 2,100,000.00
SDC DISTRIBUTIONS FROM SMLP - LP 6,955,259.26
SDC INVESTMENT IN SMLP - GP 490,147.01
SDC DISTRIBUTIONS FROM SMLP - GP 13,458,433.74
SDC INVESTMENT IN SMLP - EARNINGS 20,425,958.62
SDC LAND BASIS DIFFERENTIAL
ELIMINATE SDC INVESTMENT IN SMLP #3500
J. SMLP ACCOUNTS PAYABLE X 2,735.71
SDC ACCOUNTS RECEIVABLE 2,735.71
SMLP BRIDGE LOAN PAYABLE
SDC BRIDGE LOAN RECEIVABLE
GH ACCOUNTS PAYABLE (Lot Premiums)
SMLP ACCOUNTS RECEIVABLE
ELIMINATE SMLP INTERCOMPANY A/R WITH SDC AND HOMEBUILDING (PREMIUMS)
K. SASI ACCOUNTS PAYABLE X 85.81
SDC ACCOUNTS RECEIVABLE 85.81
ELIMINATE SASI INTERCOMPANY A/R WITH SDC
L. SASI CONTRIBUTED CAPITAL X 489,023.22
SASI CAPITAL DISTRIBUTIONS 650,000.00
SASI EARNINGS - PRIOR YEARS 396,220.95
SASI EARNINGS - CURRENT YEAR 33,447.00
PV INVESTMENT IN SASI - CONTRIB CAPITAL 489,023.22
PV INVESTMENT IN SASI - DISTRIBUTIONS 650,000.00
PV INVESTMENT IN SASI - EARNINGS 429,667.95
ELIMINATE PALM VALLEY INVESTMENT IN SASI
M. PVGC CONTRIBUTED CAPITAL PVGC BOOKS - SDC CONTRIBUTED CAPITAL X 6,158,173.14
PVGC EARNINGS - PRIOR PVGC EARNINGS - PRIOR YEARS 1,414,057.67
PVGC EARNINGS - CURRENT YEAR PVGC EARNINGS - CURRENT 1,047,254.46
SDC INVESTMENT IN PVGC - EARNINGS 2,461,312.13
SDC INVESTMENT IN PVGC - CONTRIB CAPITAL 6,158,173.14
ELIMINATE SDC INVESTMENT IN PALM VALLEY GOLF
N. PVGC - INTERCOMPANY INVOICES X 5,412,516.15
PVGC ACCOUNTS RECEIVABLE 5,412,516.15
ELIMINATE PALM VALLEY GOLF INTERCOMPANY A/R WITH SDC
DECEMBER 2001 CONSOLIDATING & ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
R. KABUTO CONTRIBUTED CAPITAL - SDC X 8,973,033.57
KABUTO CONTRIBUTED CAPITAL - KABUTO 3,841,268.00
KABUTO PRIOR PERIOD EARNINGS 1,918.95
KABUTO CURRENT PERIOD EARNINGS 1,662,894.69
MINORITY INTEREST 4,423,281.44
SDC INVESTMENT IN KABUTO - CONTR CAPITAL 6,663,390.23
SDC INVESTMENT IN KABUTO - EARNINGS 1,162,683.00
PLUG 2,225,922.64
ELIMINATE KABUTO JV INTERCOMPANY A/R WITH SDC
S. COMMERCIAL OPS CONTRIBUTED CAPITAL X 79,384,626.44
COMMERCIAL EARNINGS - PRIOR 14,991,166.86
COMMERCIAL EARNINGS - CURRENT YEAR 13,415,567.29
SDC INVEST IN GEN COMMERCIAL OPS - EARNINGS 5,587,269.97
SDC INVEST IN GEN COMMERCIAL OPS - CONT CAPITAL 78,374,117.47
SDC INVEST IN HAYDEN FERRY LAKESIDE 8,438,172.08
SDC INVESTMENT IN OUTER LIMITS - PURCHASE 1,822,514.94
SDC INVESTMENT IN FIDDLE (SCOTTS) - CONT CAPITAL 4,624,296.75
SDC INVESTMENT IN FIDDLE (SCOTTS) - EARNINGS 1,115,165.51
SDC INVESTMENT IN FUNTASTICKS - CONT CAPITAL 1,642,349.54
SDC INVESTMENT IN FUNTASTICKS - EARNINGS 676,581.02
SDC INVESTMENT IN FIDDLE (TEMPE) - CONT CAPITAL 2,980,199.30
SDC INVESTMENT IN FIDDLE (TEMPE) - EARNINGS 1,592,676.12
SDC INVESTMENT IN APS PROPERTIES - EARNINGS 559,796.42
SDC INVESTMENT IN BLACK CANYON CP - EARNINGS 1,659,298.20
SDC INVESTMENT IN PV MARKETPLACE - EARNINGS 9,838,128.82
SDC INVESTMENT IN PV PAVILIONS - EARNINGS 4,358,330.71
SDC INVESTMENT IN ALAMEDA CROSSING 859,781.29
SDC INVESTMENT IN PV CORNERSTONE 4,219,078.72
INVESTMENT IN NWC DYSART & MCDOWELL 653,278.83
SDC INVESTMENT IN PV CROSSING - EARNINGS 1,086,538.40
SDC INVESTMENT IN PV OFFICE PARK - EARNINGS 577,835.23
SDC INVESTMENT IN METROCENTER - EARNINGS 281,410.66
SDC INVESTMENT IN REST PLACE - EARNINGS 103,015.12
SDC INVESTMENT IN LITCHFIELD OTHER - EARNINGS 198,015.55
SDC INVESTMENT IN AUTOPLEX - EARNINGS 261,979.00
SDC INVESTMENT IN TALAVI - EARNINGS 236,688.89
SDC INVESTMENT IN LP PROF. PLAZA - EARNINGS 19,758.29
SDC INVESTMENT IN WWOS - EARNINGS 2,044,837.21
ELIMINATE SDC INVESTMENT IN COMMERCIAL OPERATIONS #2000
T. HIDDEN HILLS SDC CONTRIBUTED CAPITAL X 13,394,122.70
GLAZ CONTRIBUTED CAPITAL, NET 3,770,897.47
GLAZ INVESTMENT IN HIDDEN HILLS - CONT CAPITAL 3,770,897.47
HIDDEN HILLS EARNINGS - PRIOR 1,484,110.80
HIDDEN HILLS EARNINGS - CURRENT YEAR 909,961.68
SDC INVESTMENT IN HIDDEN HILLS - EARNINGS 2,394,072.48
SDC INVESTMENT IN HIDDEN HILLS - CONT CAPITAL 12,688,359.02
ELIMINATE SDC INVESTMENT IN HIDDEN HILLS JV #3300
U. SDC INVESTMENT IN RANCHO VIEJO - EARNINGS X 5,466,431.54
SDC INVESTMENT IN RANCHO VIEJO - CAPITAL 19,275,890.12
RANCHO VIEJO CONTRIBUTED CAPITAL 19,275,890.12
RANCHO VIEJO EARNINGS - PRIOR 3,936,793.28
RANCHO VIEJO EARNINGS - CURRENT YEAR 1,529,638.26
ELIMINATE SDC INVESTMENT IN RANCHO VIEJO JV #6600
V. PV CONTRIBUTED CAPITAL X 119,644,732.83
PV EARNINGS - PRIOR 32,965,357.73
PV EARNINGS - CURRENT YEAR 1,904,267.11
SDC INVESTMENT IN PALM VALLEY - EARNINGS 34,869,624.84
SDC INVESTMENT IN PALM VALLEY - DEVELOP 119,644,733.10
ELIMINATE SDC INVESTMENT IN PALM VALLEY #5500
W. CORAL CANYON CONTRIBUTED CAPITAL 27,691,773.00
CORAL CANYON - PRIOR 199,345.28
CORAL CANYON - CURRENT YEAR 276,572.06
DEBIT CREDIT
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SDC INVESTMENT IN CORAL CANYON - DEVELOP 27,691,772.53
SDC INVESTMENT IN CORAL CANYON - EARNINGS 475,916.87
X. CORAL CANYON ACCOUNTS PAYABLE 650,370.50
SDC ACCOUNTS RECEIVABLE 650,370.50
ELIMINATE SDC INVESTMENT IN CORAL CANYON #3900
Z SDC INTERCOMPANY WITH CORAL CANYON GOLF COURSE 140,601.88
CORAL CANYON INTERCOMPANY WITH SDC 140,601.88
ELIMINATE SDC INVESTMENT IN CORAL CANYON GOLF CLUB
AA RANCHLAND - CURRENT YEAR 65,387.78
RANCHLAND - PRIOR YEARS EARNINGS 152,568.51
RANCHLAND - CONTRIBUTED CAPITAL 1,120,126.48
RANCHLAND - DUE TO/FROM RANCHO VIEJO 176,174.00
RANCHO INVESTMENT IN RANCHLAND UTILTY-CAPITAL 1,120,126.48
SDC INVESTMENT IN RL UTILTY-EARNINGS 217,956.29
RANCHO - DUE TO/FROM RANCHLAND UTILITIES 176,174.00
ELIMINATE RANCHO INVESTMENT IN RANCHLAND UTILITY
BB CLUB WEST - MINORITY INTEREST 473,000.00
CLUB WEST - SDC CONTRIBUTED CAPITAL 3,904,000.00
CLUB WEST - PRIOR EARNINGS 267,857.48
CLUB WEST - CURRENT YEAR EARNINGS 619,963.00
MINORITY INTEREST CURRENT-32% 198,388.16
MINORITY INTEREST PRIOR -32% 85,714.39
SDC INVESTMENT - EARNINGS 603,717.88
SDC INVESTMENT - CAPITAL 3,900,000.00
CWGC CONTRIBUTED CAPITAL - MINORITY INT 473,000.00
SDC INTERCOMPANY WITH CLUB WEST 98,192.65
CLUB WEST - INTERCOMPANY WITH SDC 98,192.65
ELIMINATE SDC INVESTMENT IN CLUB WEST
DECEMBER 2001 CONSOLIDATING & ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
CC STONERIDGE CONTRIBUTED CAPITAL - SDC X 14,480,330.30
WLD CONTRIBUTED CAPITAL 10,380,987.30
STONERIDGE PRIOR PERIOD EARNINGS
STONERIDGE CURRENT PERIOD EARNINGS 361,755.68
STONERIDGE CONSTRUCTION AND MARKETING INTERCOMPANY WITH SDC 181.14
STONERIDGE DEVELOPMENT INTERCOMPANY WITH SDC 116,854.39
MINORITY INTEREST 10,380,987.30
MINORITY INTEREST IN EARNINGS 180,877.84
SDC INVESTMENT IN STONERIDGE - CONTR CAPITAL 14,480,330.30
SDC INVESTMENT IN STONERIDGE - EARNINGS 180,877.84
SDC INTERCOMPANY WITH STONERIDGE - CONSTRUCTION AND MARKETING 21,085.43
SDC INTERCOMPANY WITH STONERIDGE DEVELOPMENT 73,027.80
SDC INTERCOMPANY WITH STONERIDGE GOLF COURSE DEVELOPMENT 43,826.59
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TOTAL $568,834,461.95 $568,812,475.98
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