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 | ||||||||||||||||
SEPTEMBER 30, | Increase (Decrease) | |||||||||||||||
2006 | 2005 | Pretax | After Tax | |||||||||||||
RECONCILIATION OF GROSS MARGIN | ||||||||||||||||
Operating Income (closest GAAP measure) | $ | 200,580 | $ | 174,415 | $ | 26,165 | $ | 15,948 | ||||||||
Plus: | ||||||||||||||||
Operations and maintenance | 156,170 | 149,198 | 6,972 | 4,249 | ||||||||||||
Depreciation and amortization | 88,999 | 81,701 | 7,298 | 4,448 | ||||||||||||
Income taxes | 93,061 | 88,984 | 4,077 | 2,485 | ||||||||||||
Other taxes | 31,371 | 34,407 | (3,036 | ) | (1,850 | ) | ||||||||||
Gross margin | $ | 570,181 | $ | 528,705 | $ | 41,476 | $ | 25,280 | ||||||||
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)
NINE MONTHS ENDED | ||||||||||||||||
SEPTEMBER 30, | Increase (Decrease) | |||||||||||||||
2006 | 2005 | Pretax | After Tax | |||||||||||||
RECONCILIATION OF GROSS MARGIN | ||||||||||||||||
Operating Income (closest GAAP measure) | $ | 345,591 | $ | 328,479 | $ | 17,112 | $ | 10,430 | ||||||||
Plus: | ||||||||||||||||
Operations and maintenance | 493,896 | 429,806 | 64,090 | 39,063 | ||||||||||||
Depreciation and amortization | 263,279 | 240,723 | 22,556 | 13,748 | ||||||||||||
Income taxes | 136,682 | 147,136 | (10,454 | ) | (6,372 | ) | ||||||||||
Other taxes | 99,585 | 97,174 | 2,411 | 1,470 | ||||||||||||
Gross margin | $ | 1,339,033 | $ | 1,243,318 | $ | 95,715 | $ | 58,339 | ||||||||