Exhibit 99.2
ARIZONA PUBLIC SERVICE COMPANY
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
THREE MONTHS ENDED | ||||||||||||||||
JUNE 30, | Increase (Decrease) | |||||||||||||||
2006 | 2005 | Pretax | After Tax | |||||||||||||
RECONCILIATION OF GROSS MARGIN | ||||||||||||||||
Operating Income (closest GAAP measure) | $ | 119,967 | $ | 95,321 | $ | 24,646 | $ | 15,022 | ||||||||
Plus: | ||||||||||||||||
Operations and maintenance | 164,373 | 138,314 | 26,059 | 15,883 | ||||||||||||
Depreciation and amortization | 87,969 | 76,808 | 11,161 | 6,803 | ||||||||||||
Income taxes | 46,650 | 41,772 | 4,878 | 2,973 | ||||||||||||
Other taxes | 32,666 | 31,322 | 1,344 | 819 | ||||||||||||
Gross margin | $ | 451,625 | $ | 383,537 | $ | 68,088 | $ | 41,500 | ||||||||
ARIZONA PUBLIC SERVICE COMPANY
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
SIX MONTHS ENDED | ||||||||||||||||
JUNE 30, | Increase (Decrease) | |||||||||||||||
2006 | 2005 | Pretax | After Tax | |||||||||||||
RECONCILIATION OF GROSS MARGIN | ||||||||||||||||
Operating Income (closest GAAP measure) | $ | 145,011 | $ | 154,064 | $ | (9,053 | ) | $ | (5,518 | ) | ||||||
Plus: | ||||||||||||||||
Operations and maintenance | 337,726 | 280,608 | 57,118 | 34,813 | ||||||||||||
Depreciation and amortization | 174,280 | 159,022 | 15,258 | 9,300 | ||||||||||||
Income taxes | 43,621 | 58,152 | (14,531 | ) | (8,857 | ) | ||||||||||
Other taxes | 68,214 | 62,767 | 5,447 | 3,320 | ||||||||||||
Gross margin | $ | 768,852 | $ | 714,613 | $ | 54,239 | $ | 33,058 | ||||||||