EX-99.1 2 a00716991.htm EXHIBIT 99.1 Exhibit


                    
Entergy
639 Loyola Avenue
New Orleans, LA 70113 



Date:
Feb. 18, 2016
 
 
 
 
 
 
For Release:
Immediately
 
 
 
 
 
 
Contact:
Kay Jones (Media)
(504) 576-4238
cjone22@entergy.com
Paula Waters (Investor Relations)
(504) 576-4380
pwater1@entergy.com

ENTERGY REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS,
INITIATES 2016 OPERATIONAL EARNINGS GUIDANCE
2015 results consistent with latest guidance; accomplishments set stage for future growth

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported fourth quarter 2015 earnings per share of 56 cents on an as-reported basis and $1.58 on an operational basis. For the full year, the company realized a loss of 99 cents per share on an as-reported basis and operational EPS of $6.00 per share. The as-reported loss resulted from asset impairments in the third and fourth quarters reflecting the effects of strategic decisions in the Entergy Wholesale Commodities business to reduce the company’s exposure to volatile and poorly structured wholesale power markets.

“In 2015, we successfully worked through an extensive to-do list aimed at laying the foundation for steady and predictable Utility, Parent & Other earnings growth and improving certainty in our merchant generation business. Some of these actions, while necessary, were difficult for our stakeholders and impacted our as-reported financial results for the year,” said Entergy chairman and chief executive officer Leo Denault. “On an operational basis, our final 2015 results are in line with the expectations we shared with you last fall. We are also initiating 2016 guidance indicating strong Utility growth in large part due to the strategic accomplishments of last year, again consistent with indications on Utility, Parent & Other growth since the middle of last year and the ranges we gave at our last Analyst Day in 2014.”





Table of Contents Page
News Release1
Appendices6
A: Consolidated Results and Special Items8
B: Variance Analysis10
C: Utility Financial and Performance Measures12
D: EWC Performance Measures14
E: Financial Performance Measures15
F: Definitions, Abbreviations and Acronyms16
G: GAAP to Non-GAAP Reconciliations20
Financial Statements24
Additional business highlights included the following:
•
2016 operational EPS guidance range is $4.95 to $5.75 for Entergy consolidated; the range for Utility, Parent & Other Adjusted EPS is $4.20 to $4.50.
•
Entergy Arkansas, Inc. filed an unopposed settlement agreement in its rate case.
•
The sale of the Rhode Island State Energy Center power plant closed in December.
•
Entergy announced the shutdown date for the James A. FitzPatrick Nuclear Power Plant is planned to be Jan. 27, 2017.
•
Independent system operators’ reliability studies found that FitzPatrick and the Pilgrim Nuclear Power Station (beyond June 1, 2019) are not required for their respective regions.
•
For the 18th consecutive year, the Edison Electric Institute awarded Entergy’s storm team with a national storm restoration award.

Consolidated Earnings (GAAP and Non-GAAP measures)
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A for reconciliation of GAAP to non-GAAP measures)
 
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
As-Reported Earnings (Loss) ($ in millions)
99.6
120.1
(20.6)
(176.6)
940.7
(1,117.3)
Less Special Items
(183.0)
(15.2)
(167.8)
(1,252.4)
(109.4)
(1,143.0)
Operational Earnings
282.6
135.3
147.3
1,075.9
1,050.0
25.8
Weather Impact
(6.1)
9.6
(15.7)
34.6
12.8
21.8
 
 
 
 
 
 
 
As-Reported Earnings (Loss) (per share in $)
0.56
0.66
(0.10)
(0.99)
5.22
(6.21)
Less: Special Items
(1.02)
(0.09)
(0.93)
(6.99)
(0.61)
(6.38)
Operational Earnings
1.58
0.75
0.83
6.00
5.83
0.17
Weather Impact
(0.03)
0.05
(0.08)
0.19
0.07
0.12
 
 
 
 
 
 
 
Totals may not foot due to rounding

Business Unit Results

In addition to the summary business unit discussions below and results provided in Appendix A, a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B to this release. Appendix A also provides information on operating cash flow by business.

Utility, Parent & Other Results

For fourth quarter 2015, Utility, Parent and Other EPS were $1.42 on an as-reported and an operational basis. In comparison, 2014 fourth quarter earnings were 35 cents per share on an as-reported basis and 36 cents per share on an operational basis. Operational results for the 2015 quarterly period included a significant income tax item, a portion of which will be shared with customers of Entergy Louisiana, LLC. The quarter’s results also reflected the effects of productive




investments as well as milder weather, charges reflecting progress in resolving long outstanding regulatory matters and higher operating expenses.

Billed retail sales volume decreased (1.1) percent quarter-to-quarter on the effects of weather. On a weather-adjusted basis, billed volume increased 0.8 percent; the components of the weather-adjusted sales growth were:
•
Weather-adjusted residential sales increase of 1.6 percent,
•
Commercial sales slight decrease of (0.1) percent on a weather-adjusted basis,
•
Weather-adjusted governmental sales increase of 4.2 percent and
•
Industrial sales increase of 0.6 percent.

Industrial sales were higher on continued growth for new and expansion customers. Sales to existing industrial customers declined on lower usage from large chlor-alkali customers, due to both outages as well as softer economics. Partially offsetting was favorable macro conditions for existing petroleum refining customers who operated at high levels.

Utility results reflected rate adjustments for the Ninemile Point Unit 6 plant that went in service at the end of 2014 and the Entergy Mississippi, Inc. rate case. Revenue increases from rate actions were largely offset by changes in other line items (e.g., non-fuel operation and maintenance and depreciation expenses).

For the full year, 2015 Utility, Parent and Other EPS were $4.97 on an as-reported and an operational basis. In comparison, 2014 earnings were $3.60 per share on an as-reported basis and $3.64 per share on an operational basis. Operational results for 2015 included significant income tax items, as discussed above. Results also reflected productive investments and favorable weather, as well as higher operating expenses.

For a schedule of Utility, Parent & Other Adjusted EPS for the quarter and full year excluding special items and weather, normalizing tax items and excluding utility charges, see Appendix C. Appendix C also contains additional details on the Utility’s performance for both periods.

Entergy Wholesale Commodities Results

EWC operational adjusted earnings before interest, taxes, depreciation and amortization were $70 million in fourth quarter 2015, compared to $183 million in the same period a year ago. The quarter-over-quarter decrease was driven largely by lower energy and capacity prices for EWC’s nuclear assets. Quarter-over-quarter results were also affected by impairments of FitzPatrick and Pilgrim recorded in third quarter 2015 which lowered fuel and non-fuel O&M expenses.





EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2015 vs. 2014
($ in millions)
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
Net income
(154)
58
(212)
(1,066)
295
(1,361)
Add back: interest expense
8
5
3
27
17
10
Add back: income tax expense
(123)
36
(159)
(610)
177
(787)
Add back: depreciation and amortization
53
63
(10)
239
276
(37)
Subtract: interest and investment income
33
37
(4)
149
114
35
Add back: decommissioning expense
36
38
(2)
138
142
(4)
Adjusted EBITDA
(213)
162
(375)
(1,421)
792
(2,213)
Add back pre-tax special items for:
 
 
 
 
 
 
  HCM implementation
—
1
(1)
—
3
(3)
  Decisions to close VY, FitzPatrick and Pilgrim
5
20
(15)
1,658
154
1,504
  Palisades asset impairment and related write-offs
396
—
396
396
—
396
  Top Deer investment impairment
37
—
37
37
—
37
  Gain on the sale of RISEC
(154)
—
(154)
(154)
—
(154)
Operational adjusted EBITDA
70
183
(113)
515
950
(435)
 
 
 
 
 
 
 
Totals may not foot due to rounding
EWC reported an as-reported loss of (86) cents per share in the current quarter compared to a fourth quarter 2014 as-reported EPS of 31 cents. Fourth quarter 2015 as-reported results included non-cash asset impairments for Palisades and EWC’s wind investment, which were classified as a special item and therefore, excluded from operational results. The impairment charges resulted from analyzing EWC’s remaining assets for impairment in light of Entergy’s decisions to operate its other northern U.S. single unit nuclear sites for a shorter period than their operating license expiration dates and the sale of non-nuclear assets in the fourth quarter 2015. Depressed market prices were a significant factor in the analysis resulting in impairment charges for Palisades and the wind investment. The Palisades impairment does not reflect any decision to modify the continuing operations of the plant, which operates under a power purchase agreement that runs until April 2022. The sale of RISEC (a non-nuclear asset) in the current quarter resulted in a 56 cent per share gain, which is also classified as a special and excluded from operational results.

Fourth quarter 2015 EWC operational earnings were 16 cents per share, compared to 39 cents per share in the fourth quarter 2014. This decline was driven by lower operational adjusted EBITDA. The current quarter results also included income tax items.

For the year, EWC reported a loss of $5.96 per share on an as-reported basis and earnings of $1.03 per share on an operational basis, compared to as-reported EPS of $1.62 and operational EPS of $2.19 in 2014. The decline in operational earnings was driven by lower energy and capacity revenue for the nuclear fleet, which is also reflected in the lower operational adjusted EBITDA. The closure of VY at the end of 2014 also contributed to the reduced operational adjusted EBITDA and operational EPS.

For additional details on EWC’s performance for the quarter and full year, see Appendix D and the webcast slide presentation.





Earnings Guidance

Entergy is initiating 2016 operational earnings guidance in the range of $4.95 to $5.75 per share. The Utility, Parent & Other Adjusted EPS guidance range is $4.20 to $4.50. See the webcast slide presentation for additional details.

Earnings Teleconference

A teleconference will be held at 10 a.m. CT on Thursday, Feb. 18, 2016, to discuss Entergy’s fourth quarter and full year 2015 earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing (855) 893-9849, conference ID 85410755, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through Feb. 25, 2016, by dialing (855) 859-2056, conference ID 85410755. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.

Entergy Corporation’s common stock is listed on the New York and Chicago exchanges under the symbol “ETR.”

Additional information regarding Entergy’s quarterly and full year results of operations, regulatory proceedings and other matters is available in Entergy’s earnings release package, a copy of which will be filed with the U.S. Securities and Exchange Commission, and the webcast slide presentation. The earnings package contains appendices to this release and financial statements. Both the earnings release package and webcast slide presentation are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations and on Entergy’s Investor Relations mobile web app at iretr.com.

-30-

Cautionary Note Regarding Forward-Looking Statements

In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2016 earnings guidance, its current financial and operational outlook, and other statements of Entergy’s plans, beliefs or expectations included in this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery




mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning FitzPatrick, Pilgrim or VY or any of Entergy’s other nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the pending acquisition of the Union Power Station near El Dorado, Arkansas, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.

For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the quarterly materials, see Appendix F and Appendix G.







Fourth Quarter 2015 Earnings Release Package

Appendices
Seven appendices are presented in this section as follows:
•
Appendix A: Consolidated Results and Special Items
•
Appendix B: Variance Analysis
•
Appendix C: Utility Financial and Performance Measures
•
Appendix D: EWC Performance Measures
•
Appendix E: Financial Performance Measures
•
Appendix F: Definitions, Abbreviations and Acronyms
•
Appendix G: GAAP to Non-GAAP Reconciliations

Also included in this earnings release package are:
•
Financial Statements

Accompanying the earnings package is a webcast slide presentation.


















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A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for fourth quarter and year-to-date 2015 versus 2014, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A-3 and Appendix A-4 for details on special items)
(Per share in $)
 
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
As-Reported
 
 
 
 
 
 
Utility
1.75
0.60
1.15
6.12
4.60
1.52
Parent & Other
(0.33)
(0.25)
(0.08)
(1.15)
(1.00)
(0.15)
EWC
(0.86)
0.31
(1.17)
(5.96)
1.62
(7.58)
  Consolidated As-Reported Earnings (Loss)
0.56
0.66
(0.10)
(0.99)
5.22
(6.21)
 
 
 
 
 
 
 
Less Special Items
 
 
 
 
 
 
Utility
—
(0.01)
0.01
—
(0.04)
0.04
Parent & Other
—
—
—
—
—
—
EWC
(1.02)
(0.08)
(0.94)
(6.99)
(0.57)
(6.42)
  Consolidated Special Items
(1.02)
(0.09)
(0.93)
(6.99)
(0.61)
(6.38)
 
 
 
 
 
 
 
Operational
 
 
 
 
 
 
Utility
1.75
0.61
1.14
6.12
4.64
1.48
Parent & Other
(0.33)
(0.25)
(0.08)
(1.15)
(1.00)
(0.15)
EWC
0.16
0.39
(0.23)
1.03
2.19
(1.16)
  Consolidated Operational Earnings
1.58
0.75
0.83
6.00
5.83
0.17
Weather Impact
(0.03)
0.05
(0.08)
0.19
0.07
0.12
 
 
 
 
 
 
 

Detailed earnings variance analyses are included in Appendix B-1 and Appendix B-2.

Appendix A-2 provides the components of OCF contributed by each business with current quarter and year-to-date comparisons.

Appendix A-2: Consolidated Operating Cash Flow
Fourth Quarter and Year-to-Date 2015 vs. 2014
($ in millions)
 
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
Utility
858
1,076
(218)
2,907
3,319
(412)
Parent & Other
3
(256)
259
(78)
(463)
385
EWC
81
178
(97)
462
1,034
(572)
  Total Operating Cash Flow
942
998
(56)
3,291
3,890
(599)
 
 
 
 
 
 
 
Totals may not foot due to rounding

The primary driver of the $(56) million quarter-over-quarter decrease was lower EWC net revenue, partially offset by lower pension funding. Favorable changes in the timing of working capital at the Utility primarily in deferred fuel from low natural gas prices were largely offset by unfavorable changes in working capital at EWC. Intercompany income tax payments contributed to the line of business variances, but netted to a small number at the consolidated level.





The primary drivers of the year-over-year $(599) million decrease were lower EWC net revenue and receipt of securitization funds in 2014. Favorable deferred fuel changes at the Utility also benefitted the full year period. Intercompany income tax payments affected line of business variances but had a small bottom-line impact.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an EPS basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported EPS consistent with GAAP, but are excluded from operational EPS. As a result, operational EPS is considered a non-GAAP measure.
    
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS)
Fourth Quarter and Year-to-Date 2015 vs. 2014
(After-tax, per share in $)
 
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
Utility
 
 
 
 
 
 
HCM implementation expenses
—
(0.01)
0.01
—
(0.04)
0.04
  Total Utility
—
(0.01)
0.01
—
(0.04)
0.04
 
 
 
 
 
 
 
EWC
 
 
 
 
 
 
HCM implementation expenses
—
—
—
—
(0.01)
0.01
Decisions to close VY, FitzPatrick and Pilgrim
(0.02)
(0.08)
0.06
(5.99)
(0.56)
(5.43)
Palisades asset impairment and related write-offs
(1.43)
—
(1.43)
(1.43)
—
(1.43)
Top Deer investment impairment
(0.13)
—
(0.13)
(0.13)
—
(0.13)
Gain on the sale of RISEC
0.56
—
0.56
0.56
—
0.56
  Total EWC
(1.02)
(0.08)
(0.94)
(6.99)
(0.57)
(6.42)
 
 
 
 
 
 
 
Total Special Items
(1.02)
(0.09)
(0.93)
(6.99)
(0.61)
(6.38)
 
 
 
 
 
 
 

Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Fourth Quarter and Year-to-Date 2015 vs. 2014
(Pre-tax except for Income taxes - other, $ in millions)
 
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
Utility
 
 
 
 
 
 
Non-fuel O&M
—
(2.4)
2.4
—
(12.6)
12.6
Taxes other than income taxes
—
(0.1)
0.1
—
(0.6)
0.6
Income taxes - other
—
1.0
(1.0)
—
5.6
(5.6)
  Total Utility
—
(1.5)
1.5
—
(7.6)
7.6
 
 
 
 
 
 
 
EWC
 
 
 
 
 
 
Non-fuel O&M
(6.2)
(19.1)
12.9
(17.0)
(46.8)
29.8
Taxes other than income taxes
(0.5)
(1.4)
0.9
(0.3)
(3.6)
3.3
Asset write-off and impairments
(394.0)
(0.6)
(393.4)
(2,036.2)
(107.5)
(1,928.7)
Gain on sale of asset
154.0
—
154.0
154.0
—
154.0
Miscellaneous net (other income)
(36.8)
—
(36.8)
(36.8)
—
(36.8)
Income taxes - other
100.4
7.4
93.0
683.8
56.1
627.7
  Total EWC
(183.0)
(13.7)
(169.3)
(1,252.4)
(101.8)
(1,150.6)
 
 
 
 
 
 
 
Total Special Items
(183.0)
(15.2)
(167.8)
(1,252.4)
(109.4)
(1,143.0)
 
 
 
 
 
 
 
Totals may not foot due to rounding







B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2015 versus 2014 as-reported and operational earnings variance analysis for Utility, EWC, Parent & Other and Consolidated.

Appendix B-1: As-Reported and Operational EPS Variance Analysis
Fourth Quarter 2015 vs. 2014
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Opera-tional
 
As-Reported
Opera-tional
 
As- Reported
Opera-tional
 
As- Reported
Opera-tional
2014 earnings
0.60
0.61
 
(0.25)
(0.25)
 
0.31
0.39
 
0.66
0.75
Income taxes - other
1.96
1.96
(a)
(0.04)
(0.04)
 
0.14
0.14
(b)
2.06
2.06
Non-fuel O&M
(0.01)
(0.02)
 
—
—
 
0.13
0.08
(c)
0.12
0.06
Share effect
0.03
0.03
 
(0.01)
(0.01)
 
—
—
 
0.02
0.02
Gain on sale of asset
—
—
 
—
—
 
0.56
—
(d)
0.56
—
Interest expense and other charges
0.01
0.01
 
—
—
 
(0.01)
(0.01)
 
—
—
Decommissioning expense
(0.01)
(0.01)
 
—
—
 
—
—
 
(0.01)
(0.01)
Depreciation/amortization expense
(0.05)
(0.05)
(e)
—
—
 
0.04
0.04
 
(0.01)
(0.01)
Taxes other than income taxes
(0.05)
(0.05)
(f)
—
—
 
0.02
0.01
 
(0.03)
(0.04)
Other income (deductions)-other
(0.02)
(0.02)
 
(0.03)
(0.03)
 
(0.14)
(0.01)
(g)
(0.19)
(0.06)
Asset write-offs and impairments
(0.19)
(0.19)
(h)
—
—
 
(1.43)
—
(i)
(1.62)
(0.19)
Net revenue
(0.52)
(0.52)
(j)
—
—
 
(0.48)
(0.48)
(k)
(1.00)
(1.00)
2015 earnings
1.75
1.75
 
(0.33)
(0.33)
 
(0.86)
0.16
 
0.56
1.58
 
 
 
 
 
 
 
 
 
 
 
 





Appendix B-2: As-Reported and Operational EPS Variance Analysis
Year-to-Date 2015 vs. 2014
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)
 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Opera-tional
 
As-Reported
Opera-tional
 
As- Reported
Opera-tional
 
As- Reported
Opera-tional
2014 earnings
4.60
4.64
 
(1.00)
(1.00)
 
1.62
2.19
 
5.22
5.83
Income taxes - other
2.08
2.08
(a)
(0.07)
(0.07)
(l)
0.11
0.11
(b)
2.12
2.12
Asset write-offs and impairments
0.04
0.04
 
—
—
 
(6.97)
—
(i)
(6.93)
0.04
Other income (deductions) - other
0.01
0.01
 
(0.09)
(0.09)
(m)
(0.02)
0.11
(g)
(0.10)
0.03
Share effect
0.03
0.03
 
—
—
 
—
—
 
0.03
0.03
Gain on sale of asset
—
—
 
—
—
 
0.56
—
(d)
0.56
—
Decommissioning expense
(0.04)
(0.04)
 
—
—
 
0.01
0.01
 
(0.03)
(0.03)
Taxes other than income taxes
(0.12)
(0.12)
(f)
—
—
 
0.07
0.06
(n)
(0.05)
(0.06)
Depreciation/amortization expense
(0.19)
(0.19)
(e)
0.01
0.01
 
0.12
0.12
(o)
(0.06)
(0.06)
Interest expense and other charges
(0.04)
(0.04)
 
0.02
0.02
 
(0.04)
(0.04)
 
(0.06)
(0.06)
Non-fuel O&M
(0.57)
(0.61)
(p)
(0.01)
(0.01)
 
0.48
0.37
(c)
(0.10)
(0.25)
Net revenue
0.32
0.32
(j)
(0.01)
(0.01)
 
(1.90)
(1.90)
(k)
(1.59)
(1.59)
2015 earnings
6.12
6.12
 
(1.15)
(1.15)
 
(5.96)
1.03
 
(0.99)
6.00
 
 
 
 
 
 
 
 
 
 
 
 
See appendix in the webcast slide presentation for more details on the effects of the VY closure on EWC line item variances.
(a)
The current quarter and year-to-date increases were due primarily to the income tax item of approximately $334 million resulting from the ELL business combination; this was partly offset by customer sharing recorded as a regulatory charge (included in net revenue in (j)). An audit settlement in Mississippi of $15 million also contributed to the increases. The year-to-date increase also reflected a first quarter 2015 adjustment of $24 million involving the reversal of a portion of the provision for uncertain tax provisions related to interest accrual. Partially offsetting was a state income tax item of $10 million in third quarter 2014.
(b)
The increases in the current quarter and year-to-date periods were due largely to state tax effects from the 2015 settlement on the 2008/2009 audit.
(c)
The current quarter and year-to-date increases were attributable to the closure of VY at the end of 2014.
(d)
The as-reported increases in the current quarter and year-to-date periods reflect the gain on sale of the RISEC facility.
(e)
The current quarter and year-to-date decreases were due primarily to additions to plant, including Ninemile 6 placed in service in December 2014, as well as higher depreciation rates implemented at EMI for 2015.
(f)
The decreases in the current quarter and year-to-date periods were due partly to higher ad valorem taxes. In addition, fourth quarter 2014 results reflected the franchise tax settlement in Louisiana.
(g)
The as-reported decrease in the current quarter was due largely to the asset impairment on EWC’s 50% ownership interest in the Top Deer wind generation investment (accounted for under the equity method of accounting). The year-to-date operational increase was due primarily to higher realized gains on decommissioning trusts, including the rebalancing of VY's decommissioning trust portfolio.
(h)
The current quarter decrease was driven by regulatory charges arising from the Waterford 3 replacement steam generator prudence review proceeding and the System Agreement termination settlement agreement. Partially offsetting was an earlier regulatory charge in 2014 for the Waterford 3 prudence review proceeding.
(i)
The as-reported current quarter and year-to-date decreases reflected the fourth quarter 2015 non-cash impairment charges and related write-offs for the Palisades nuclear plant. The year-to date decrease also reflected third quarter 2015 impairment charges and related write-offs for the Pilgrim and FitzPatrick plants. Partially offsetting the year-to-date decrease was a third quarter 2014 charge for an updated VY decommissioning cost study.




Utility As-Reported Net Revenue
Variance Analysis
2015 vs. 2014 ($ EPS)
 
Fourth Quarter
Year-to-Date
Weather
(0.08)
0.12
Sales growth/pricing
0.10
0.83
Regulatory charges
(0.46)
(0.46)
Other
(0.08)
(0.17)
Total
(0.52)
0.32
(j)
The current quarter decrease was attributable to the fourth quarter 2015 ELL business combination regulatory charge for customer sharing of $0.37 per share and the regulatory charge for the Waterford 3 prudence review proceeding of $0.09 per share (a portion of which is reflected in asset impairment in (h)). The effects of weather, which was milder-than-normal in the current quarter compared to colder-than-normal in fourth quarter 2014, also contributed. Weather for the full year was positive in both periods, but more favorable in 2015 compared to 2014. Annual net revenue was higher due to increased weather-adjusted sales volume and the Louisiana FRP rate adjustments for placing Ninemile 6 in rates and the EMI rate case.
(k)
The current quarter and year-to-date decreases were largely due to the retirement of VY at the end of 2014 along with lower realized nuclear capacity and energy pricing on the operating plants.
(l)
The decrease in the year-to-date period was primarily the result of a Louisiana tax law change effective July 1, 2015.
(m)
The year-to-date decrease is due to the elimination of intersegment activity, primarily higher affiliate dividend income resulting from Hurricane Isaac Act 55 financing (offset at Utility).
(n)
The increase year-to-date is attributable largely to lower VY property taxes due to the plant’s closure in late 2014.
(o)
The year-to-date increase was mainly attributable to the absence of VY depreciation. Lower depreciation expense resulting from the third quarter 2015 nuclear plant impairments also contributed.
(p)
The year-to-date decrease reflected higher nuclear expenses, including regulatory compliance costs resulting from the NRC’s decision to move ANO into Column 4 of the reactor oversight process action matrix ($53 million pre-tax). Pension and OPEB and distribution reliability expenses were also higher. Other non-fuel O&M changes with offsets in net revenue in the current and year-to date periods included transmission costs allocated by MISO and energy efficiency program costs.

C: Utility Financial and Performance Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, excluding the effects of special items and weather and normalizing tax items for the fourth quarter and full year periods. Appendix C-1 also provides Utility, Parent & Other Adjusted EPS excluding the effects of charges from resolving long outstanding regulatory matters.

Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A for details on special items)
(per share in $)
Fourth Quarter
Year-to-Date
 
2015
2014
Change
2015
2014
Change
As-Reported Earnings
1.42
0.35
1.07
4.97
3.60
1.37
Less:
 
 
 
 
 
 
  Special Items
—
(0.01)
0.01
—
(0.04)
0.04
  Weather
(0.03)
0.05
(0.08)
0.19
0.07
0.12
  Tax Items, net of customer sharing
1.57
0.03
1.54
1.70
0.09
1.61
Adjusted Earnings (Loss)
(0.12)
0.28
(0.40)
3.08
3.48
(0.40)
Less: Regulatory Charges
(0.35)
(0.05)
(0.30)
(0.35)
(0.28)
(0.07)
Adjusted Earnings, excluding Regulatory Charges (q)
0.23
0.33
(0.10)
3.43
3.76
(0.33)
 
 
 
 
 
 
 
(q)
Reflects charges for System Agreement termination settlement agreement (fourth quarter and year-to-date 2015), the Waterford 3 replacement steam generator prudence review proceeding (fourth quarter and year-to-date 2014 and fourth quarter and year-to-date 2015) and the EMI rate case settlement (2014), accounted for on multiple income statement line items.






Appendix C-2 provides a comparative summary of Utility operational performance measures.

Appendix C-2: Utility Operational Performance Measures
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
 
Fourth Quarter
Year-to-Date
 
2015
2014
% Change
% Weather Adjusted (r)
2015
2014
% Change
GWh billed
 
 
 
 
 
 
 
Residential
7,385
7,770
(4.9)
1.6
36,068
35,932
0.4
Commercial
6,979
6,984
(0.1)
(0.1)
29,348
28,827
1.8
Governmental
627
599
4.7
4.2
2,514
2,428
3.5
Industrial
11,152
11,087
0.6
0.6
44,382
43,723
1.5
Total Retail Sales
26,143
26,440
(1.1)
0.8
112,312
110,910
1.3
Wholesale
1,739
3,105
(44.0)
 
9,274
9,462
(2.0)
Total Sales
27,882
29,545
(5.6)
 
121,586
120,372
1.0
 
 
 
 
 
 
 
 
Weather-adjusted GWh billed (r)
 
 
 
 
 
 
 
Residential
 
 
 
 
35,413
35,188
0.6
Commercial
 
 
 
 
29,022
28,907
0.4
Governmental
 
 
 
 
2,509
2,430
3.2
Industrial
 
 
 
 
44,382
43,723
1.5
Total Retail Sales
 
 
 
 
111,326
110,248
1.0
 
 
 
 
 
 
 
 
Number of electric retail customers
 
 
 
 
 
 
 
Residential
 
 
 
 
2,431,984
2,409,732
0.9
Commercial
 
 
 
 
348,840
345,008
1.1
Governmental
 
 
 
 
17,899
17,373
3.0
Industrial
 
 
 
 
46,572
46,177
0.9
Total Retail Customers
 
 
 
 
2,845,295
2,818,290
1.0
 
 
 
 
 
 
 
 
Net Revenue ($ millions)
1,181
1,334
(11.5)
 
5,829
5,735
1.6
As-reported non-fuel O&M per MWh
$24.05
$22.57
6.6
 
$21.06
$19.89
5.9
Operational non-fuel O&M per MWh
$24.05
$22.48
7.0
 
$21.06
$19.79
6.4
 
 
 
 
 
 
 
 
(r)
The effects of weather are estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to “normal” weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change.

See appendix in the webcast slide presentation for information on select regulatory cases.
 




D: EWC Performance Measures
Appendix D-1 provides a comparative summary of EWC operational performance measures.

Appendix D-1: EWC Operational Performance Measures
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
Fourth Quarter
Year-to-Date
 
2015
2014
% Change
2015
2014
% Change
Owned capacity (MW) (s)
4,880
6,068
(19.6)
4,880
6,068
(19.6)
GWh billed
10,135
11,550
(12.3)
39,745
44,424
(10.5)
As-reported average total revenue per MWh
$45.21
$54.00
(16.3)
$51.88
$61.21
(15.2)
Adjusted average total revenue per MWh (t)
$44.83
$53.64
(16.4)
$51.49
$60.84
(15.4)
Net revenue ($ millions)
379
521
(27.3)
1,666
2,224
(25.1)
As-reported non-fuel O&M per MWh
$27.67
$27.44
0.8
$25.99
$26.39
(1.5)
Operational non-fuel O&M per MWh (u)
$27.06
$25.78
5.0
$25.57
$25.34
0.9
 
 
 
 
 
 
 
EWC Nuclear Fleet
 
 
 
 
 
 
Capacity factor
94%
95%
(1.1)
91%
91%
0
GWh billed
9,561
10,635
(10.1)
35,859
40,253
(10.9)
As-reported average total revenue per MWh
$44.71
$53.56
(16.5)
$51.49
$60.76
(15.3)
Adjusted average total revenue per MWh (v)
$44.31
$53.17
(16.7)
$51.07
$60.35
(15.4)
Production cost per MWh
$22.63
$26.18
(13.6)
$25.30
$26.44
(4.3)
Net revenue ($ millions)
371
506
(26.7)
1,613
2,166
(25.5)
Refueling outage days
 
 
 
 
 
 
  FitzPatrick
—
7
 
—
44
 
  Indian Point 2
—
—
 
—
24
 
  Indian Point 3
—
—
 
23
—
 
  Palisades
19
—
 
32
56
 
  Pilgrim
—
—
 
34
—
 
 
 
 
 
 
 
 
(s)
Fourth quarter and year-to-date 2015 exclude VY (605 MW) that was shut down in December 2014 and RISEC (583 MW) that was sold in December 2015.
(t)
Excluding VY, $54.26/MWh and $60.65/MWh in fourth quarter and year-to-date 2014 periods, respectively.
(u)
Excluding VY, $25.45/MWh and $24.80/MWh in fourth quarter and year-to-date 2014 periods, respectively.
(v)
Excluding VY, $53.79/MWh and $60.07/MWh in fourth quarter and year-to-date 2014 periods, respectively.

See appendix in the webcast slide presentation for EWC hedging and price disclosures.






E: Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.

As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.

Appendix E: GAAP and Non-GAAP Financial Performance Measures
Fourth Quarter 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
 
For 12 months ending Dec. 31
2015
2014
 
Change
GAAP Measures
 
 
 
 
ROIC - as-reported
1.0%
5.6%
 
(4.6%)
ROE - as-reported
(1.8%)
9.6%
 
(11.4%)
Book value per share
$51.89
$55.83
 
($3.94)
End of period shares outstanding (millions)
178.4
179.2
 
(0.8)
Non-GAAP Measures
 
 
 
 
ROIC - operational
6.3%
6.1%
 
0.2%
ROE - operational
11.2%
10.7%
 
0.5%
 
 
 
 
 
As of Dec. 31 ($ in millions)
2015
2014
 
Change
GAAP Measures
 
 
 
 
Cash and cash equivalents
1,351
1,422
 
(71)
Revolver capacity
3,582
3,592
 
(10)
Commercial paper outstanding
422
484
 
(62)
Total debt
13,850
13,917
 
(67)
Securitization debt
775
777
 
(2)
Debt to capital ratio
59.1%
57.4%
 
1.7%
Off-balance sheet liabilities:
 
 
 
 
Debt of joint ventures - Entergy’s share
77
81
 
(4)
Leases - Entergy’s share
359
422
 
(63)
Power purchase agreements accounted for as leases
195
224
 
(29)
Total off-balance sheet liabilities
631
727
 
(96)
Non-GAAP Measures
 
 
 
 
Debt to capital ratio, excluding securitization debt
57.7%
56.0%
 
1.7%
Gross liquidity
4,933
5,014
 
(81)
Net debt to net capital ratio, excluding securitization debt
55.0%
53.2%
 
1.8%
Parent debt to total debt ratio, excluding securitization debt
21.9%
20.4%
 
1.5%
Debt to operational adjusted EBITDA, excluding securitization debt
4.1
3.7
 
 0.4
Operational FFO to debt ratio, excluding securitization debt
25.7%
27.8%
 
(2.1%)
 
 
 
 
 






F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures which are referenced in the quarterly and full year materials. Non-GAAP measures are included in these materials to provide metrics that remove the effect of financial events that are not routine from commonly used financial metrics.

Appendix F-1: Definitions
Utility Operational Performance Measures
GWh billed
Total number of GWh billed to all retail and wholesale customers
Net revenue
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net
Non-fuel O&M
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power
Non-fuel O&M per MWh
Non-fuel O&M per MWh of billed sales
Number of retail customers
Number of customers at end of period
 
 
EWC Operational Performance Measures
As-reported average total revenue per MWh
As-reported revenue per MWh billed, excluding revenue from investments in wind generation accounted for under the equity method of accounting
Adjusted average total revenue per MWh
As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA
Average revenue under contract per kW per month (applies to capacity contracts only)
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Average revenue per MWh on contracted volumes
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs
Bundled capacity and energy contracts
A contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity contracts
A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO
Capacity factor
Normalized percentage of the period that the nuclear plants generate power
Expected sold and market total revenue per MWh
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA
Firm LD
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products
GWh billed
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting and financially-settled instruments
 
 






Appendix F-1: Definitions
EWC Operational Performance Measures (continued)
Net revenue
Operating revenue less fuel, fuel related expenses and purchased power
Non-fuel O&M
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power and investments in wind generation accounted for under the equity method of accounting
Non-fuel O&M per MWh
Non-fuel O&M per MWh billed
Offsetting positions
Transactions for the purchase of energy, generally to offset a Firm LD transaction
Owned capacity (MW)
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; VY (nuclear) was retired on Dec. 29, 2014, and RISEC (non-nuclear) was sold on Dec. 17, 2015
Percent of capacity sold forward
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Percent of planned generation under contract
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract
Planned net MW in operation
Amount of installed capacity to generate power and/or sell capacity, assuming shutdown of Pilgrim June 1, 2019 and FitzPatrick planned for Jan. 27, 2017
Planned TWh of generation
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming shutdown of Pilgrim June 1, 2019 and FitzPatrick planned for Jan. 27, 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC
Production cost per MWh
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items
Refueling outage days
Number of days lost for scheduled refueling outage during the period
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is on operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee
 
 
Financial Measures - GAAP
Book value per share
End of period common equity divided by end of period shares outstanding
Debt of joint ventures - Entergy’s share
Entergy’s share of debt issued by business joint ventures at EWC
Debt to capital ratio
Total debt divided by total capitalization
Leases - Entergy’s share
Operating leases held by subsidiaries capitalized at implicit interest rate
Revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee
ROIC - as-reported
12-months rolling net income attributable to Entergy Corporation or Subsidiary (Net Income) adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
ROE - as-reported
12-months rolling Net Income divided by average common equity
Securitization debt
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL
Total debt
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet
 
 






Appendix F-1: Definitions
Financial Measures - Non-GAAP
Adjusted EBITDA
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds
Adjusted EPS
As-reported earnings per share excluding special items and weather and normalizing for income tax
Debt to capital ratio, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
Debt to EBITDA
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA
FFO
Net cash flow provided by operations less AFUDC-borrowed funds, working capital items in operating cash flow (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge
FFO to debt
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt
Gross liquidity
Sum of cash and revolver capacity
Operational adjusted EBITDA
Adjusted EBITDA excluding effects of special items
Operational earnings
As-reported Net Income adjusted to exclude the impact of special items
Operational FFO
FFO excluding effects of special items
Parent debt to total debt
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt
Net debt to net capital ratio, excluding securitization debt
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
ROIC - operational
12-months rolling operational Net Income adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
ROE - operational
12-months rolling operational Net Income divided by average common equity
 
 







Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.

Appendix F-2: Abbreviations and Acronyms
AFUDC-
borrowed funds
Allowance for borrowed funds used during construction
LPSC
Louisiana Public Service Commission
LTM
Last twelve months
MISO
Midcontinent Independent System Operator, Inc.
AFUDC-
equity funds
Allowance for equity funds used during
   construction
MPSC
Mississippi Public Service Commission
NEPOOL
New England Power Pool
ADIT
Accumulated deferred income taxes
Ninemile 6
Ninemile Point Unit 6
ANO
Arkansas Nuclear One (nuclear)
NOAA
National Oceanic and Atmosphere Administration
APSC
Arkansas Public Service Commission
Non-fuel O&M
Non-fuel operation and maintenance expense
ARO
Asset retirement obligation
NRC
Nuclear Regulatory Commission
BP
Basis point
NYISO
New York Independent System Operator, Inc.
CCGT
Combined cycle gas turbine
NYPA
New York Power Authority
CCNO
Council of the City of New Orleans, Louisiana
NYS
NYSDEC
New York State
New York State Department of Environmental Conservation
COD
Commercial operation date
NYS
NYSDEC
NYSDOS
New York State
New York State Department of Environmental Conservation
New York State Department of State
Cooper
Cooper Nuclear Station
CT
Simple cycle combustion turbine
NYSE
New York Stock Exchange
CZM
Coastal zone management
O&M
Operation and maintenance expense
DCRF
Distribution cost recovery factor
OCF
Operating cash flow
DOJ
U.S. Department of Justice
OPEB
Other post-employment benefits
EAI
EBITDA

EEI
EGSL
Entergy Arkansas, Inc.
Earnings before interest, income taxes,
  depreciation and amortization
Edison Electric Institute
Entergy Gulf States Louisiana, L.L.C.
Palisades
Palisades Power Plant (nuclear)
Pilgrim
Pilgrim Nuclear Power Station (nuclear)
ELL
Entergy Louisiana, LLC
PPA
Power purchase agreement
EMI
Entergy Mississippi, Inc.
PUCT
Public Utility Commission of Texas
ENOI
Entergy New Orleans, Inc.
RFO
Refueling outage
ESI
Entergy Services, Inc.
RFP
Request for proposal
EPS
Earnings per share
RISEC
Rhode Island State Energy Center (CCGT)
ETI
Entergy Texas, Inc.
ROE
Return on equity
ETR
Entergy Corporation
ROIC
Return on invested capital
EWC
Entergy Wholesale Commodities
ROS
Rest of state
FCA
Forward capacity auction
RPCE
Rough production cost equalization
FERC
Federal Energy Regulatory Commission
SEC
U.S. Securities and Exchange Commission
FFO
Funds from operations
SEMARI
Southeast Massachusetts/Rhode Island
Firm LD
Firm liquidated damages
SERI
System Energy Resources, Inc.
FitzPatrick
James A. FitzPatrick Nuclear Power Plant
SPDES
State Pollutant Discharge Elimination System
FRP
Formula rate plan
SPP
Southwest Power Pool
GAAP
Generally accepted accounting principles
TCRF
Transmission cost recovery factor
Grand Gulf
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy
Top Deer
Top Deer Wind Ventures, LLC
HCM
Human Capital Management program
Union
Union Power Station
HSR
Hart-Scott-Rodino
UP&O
Utility, Parent & Other
Indian Point 2
Indian Point Energy Center Unit 2 (nuclear)
VY
Vermont Yankee Nuclear Power Station (nuclear)
Indian Point 3
Indian Point Energy Center Unit 3 (nuclear)
WACC
Weighted-average cost of capital
IPEC
Indian Point Energy Center (nuclear)
WOTAB
West of the Atchafalaya Basin
ISES
Independence Steam Electric Station (coal)
Waterford 3
Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana
ISO-NE
ISO New England
WQC
Water Quality Certification
LHV
Lower Hudson Valley
YOY
Year-over-year





G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh
($ in thousands except where noted)
 
Fourth Quarter
Year-to-Date
 
 
2015
2014
2015
2014
Utility
 
 
 
 
 
As-reported Utility non-fuel O&M
(A)
670,638
666,742
2,560,620
2,394,621
Special Items included in non-fuel O&M:
 
 
 
 
 
  HCM implementation expenses
 
—
2,423
—
12,625
     Total special items included in non-fuel O&M
(B)
—
2,423
—
12,625
Operational Utility non-fuel O&M
(A-B)
670,638
664,319
2,560,620
2,381,996
Utility billed sales (GWh)
(C)
27,882
29,545
121,586
120,372
As-reported Utility non-fuel O&M per MWh
(A/C)
24.05
22.57
21.06
19.89
Operational Utility non-fuel O&M per MWh
[(A-B)/(C)]
24.05
22.48
21.06
19.79
 
 
 
 
 
 
EWC
 
 
 
 
 
As-reported EWC non-fuel O&M
(D)
280,425
316,917
1,033,144
1,172,339
Special Items included in non-fuel O&M:
 
 
 
 
 
 Decisions to close VY, FitzPatrick and Pilgrim
 
6,205
18,402
16,979
43,516
  HCM implementation expenses
 
—
736
—
3,261
     Total special items included in non-fuel O&M
(E)
6,205
19,138
16,979
46,777
Operational EWC non-fuel O&M
(D-E)
274,220
297,779
1,016,165
1,125,562
EWC billed sales (GWh)
(F)
10,135
11,550
39,745
44,424
As-reported EWC non-fuel O&M per MWh
(D/F)
27.67
27.44
25.99
26.39
Operational EWC non-fuel O&M per MWh
[(D-E)/(F)]
27.06
25.78
25.57
25.34
 
 
 
 
 
 
As-reported EWC operating revenue
(G)
458,184
623,652
2,061,827
2,719,404
Less Palisades below-market PPA amortization
(H)
3,800
4,124
15,200
16,496
Adjusted EWC operating revenue
(G-H)
454,384
619,528
2,046,627
2,702,908
As-reported EWC nuclear operating revenue
(I)
427,447
569,581
1,846,508
2,445,695
Less Palisades below-market PPA amortization
(H)
3,800
4,124
15,200
16,496
Adjusted EWC nuclear operating revenue
(I-H)
423,647
565,457
1,831,308
2,429,199
As-reported EWC average total revenue per MWh
(G)/(F)
45.21
54.00
51.88
61.21
Adjusted EWC average total revenue per MWh
[(G-H)/(F)]
44.83
53.64
51.49
60.84
 
 
 
 
 
 
EWC nuclear billed sales (GWh)
(J)
9,561
10,635
35,859
40,253
As-reported EWC nuclear average total revenue per MWh
(I)/(J)
44.71
53.56
51.49
60.76
Adjusted EWC nuclear average total revenue per MWh
[(I-H)/(J)]
44.31
53.17
51.07
60.35
 
 
 
 
 
 
VY operational non-fuel O&M
(K)
 
32,054
 
149,527
VY operating revenue
(L)
 
52,981
 
315,293
VY billed sales
(M)
 
1,108
 
5,061
 
 
 
 
 
 
Operational EWC non-fuel O&M per MWh excluding VY
[(D-E)-(K)]/[(F)-(M)]
 
25.45
 
24.80
Adjusted EWC average total revenue per MWh excluding VY
[(G-H)-(L)]/(F)-(M)]
 
54.26
 
60.65
Adjusted EWC nuclear average total revenue per MWh excluding VY
[(I-H)-(L)]/(J)-(M)]
 
53.79
 
60.07
Totals may not foot due to rounding




Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC Metrics
($ in millions)
 
Fourth Quarter
 
 
2015
2014
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months
(A)
(177)
941
Preferred dividends
 
20
20
Tax effected interest expense
 
396
386
As-reported net income attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense
(B)
239
1,347
 
 
 
 
Special items in prior quarters
 
(1,070)
(95)
HCM implementation expenses
 
—
(2)
Decisions to close VY, FitzPatrick and Pilgrim
 
(3)
(13)
Palisades asset impairment and related write-offs
 
(256)
—
Top Deer investment impairment
 
(24)
—
Gain on the sale of RISEC
 
100
—
  Total special items, rolling 12 months
(C)
(1,253)
(109)
 
 
 
 
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense
(B-C)
1,492
1,456
 
 
 
 
Operational earnings, rolling 12 months
(A-C)
1,076
1,050
 
 
 
 
Average invested capital
(D)
23,827
23,864
 
 
 
 
Average common equity
(E)
9,632
9,820
 
 
 
 
ROIC - as-reported %
(B/D)
1.0
5.6
ROIC - operational %
[(B-C)/D]
6.3
6.1
ROE - as-reported %
(A/E)
(1.8)
9.6
ROE - operational %
[(A-C)/E]
11.2
10.7
Totals may not foot due to rounding






Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics
($ in millions)
 
Fourth Quarter
 
 
2015
2014
Total debt
(A)
13,850
13,917
Less securitization debt
(B)
775
777
Total debt, excluding securitization debt
(C)
13,075
13,140
Less cash and cash equivalents
(D)
1,351
1,422
  Net debt, excluding securitization debt
(E)
11,724
11,718
 
 
 
 
Total capitalization
(F)
23,425
24,229
Less securitization debt
(B)
775
777
Total capitalization, excluding securitization debt
(G)
22,650
23,452
Less cash and cash equivalents
(D)
1,351
1,422
Net capital, excluding securitization debt
(H)
21,299
22,030
 
 
 
 
Debt to capital ratio %
(A/F)
59.1
57.4
Debt to capital ratio, excluding securitization debt %
(C/G)
57.7
56.0
Net debt to net capital ratio, excluding securitization debt %
(E/H)
55.0
53.2
 
 
 
 
Revolver capacity
(I)
3,582
3,592
 
 
 
 
Gross liquidity
(D+I)
4,933
5,014
 
 
 
 
Entergy Corporation notes:
 
 
 
  Due September 2015
 
—
550
  Due January 2017
 
500
500
  Due September 2020
 
450
450
  Due July 2022
 
650
—
    Total parent long-term debt
(J)
1,600
1,500
Revolver draw
(K)
835
695
Commercial paper
(L)
422
484
Total parent debt
(J)+(K)+(L)
2,857
2,679
 
 
 
 
Parent debt to total debt ratio, excluding securitization debt %
[((J)+(K)+(L))/(C)]
21.9%
20.4%






Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued)
($ in millions)
 
Fourth Quarter
 
 
2015
2014
Total debt
(A)
13,850
13,917
Less securitization debt
(B)
775
777
Total debt, excluding securitization debt
(C)
13,075
13,140
As-reported consolidated net income (loss), rolling 12 months
 
(157)
960
Add back: interest expense, rolling 12 months
 
643
628
Add back: income tax expense, rolling 12 months
 
(643)
590
Add back: depreciation and amortization, rolling 12 months
 
1,337
1,319
Add back: regulatory charges (credits), rolling 12 months
 
175
(14)
Subtract: securitization proceeds, rolling 12 months
 
137
130
Subtract: interest and investment income, rolling 12 months
 
187
148
Subtract: AFUDC-equity funds, rolling 12 months
 
52
65
Add back: decommissioning expense, rolling 12 months
 
280
273
  Adjusted EBITDA, rolling 12 months
(D)
1,259
3,413
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax)
 
—
16
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax)
 
1,658
154
Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax)
 
396
—
Add back: Top Deer investment impairment, rolling 12 months (pre-tax)
 
37
—
Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax)
 
(154)
—
 
 
 
 
  Operational adjusted EBITDA, rolling 12 months
(E)
3,196
3,583
Debt to operational adjusted EBITDA, excluding securitization debt
(C)/(E)
4.1
3.7
 
 
 
 
Net cash flow provided by operating activities, rolling 12 months
(F)
3,291
3,890
AFUDC-borrowed funds used during construction, rolling 12 months
(G)
(27)
(34)
Working capital items in net cash flow provided by operating activities, rolling 12 months:
 
 
 
  Receivables
 
38
98
  Fuel inventory
 
(12)
4
  Accounts payable
 
(135)
(13)
  Prepaid taxes and taxes accrued
 
82
(63)
  Interest accrued
 
(11)
25
  Other working capital accounts
 
(114)
112
  Securitization regulatory charge
 
107
97
       Total
(H)
(45)
260
FFO, rolling 12 months
(F)+(G)-(H)
3,309
3,596
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax)
 
—
51
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax)
 
55
7
Operational FFO, rolling 12 months
(I)
3,364
3,654
Operational FFO to debt ratio, excluding securitization debt %
(I)/(C)
25.7%
27.8%
Totals may not foot due to rounding






Financial Statements

Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
57,098

 
$
682

 
$
5,717

 
$
63,497

    Temporary cash investments
 
561,970

 
12,208

 
713,285

 
1,287,464

     Total cash and cash equivalents
 
619,068

 
12,890

 
719,002

 
1,350,961

Notes receivable
 
—

 
(513,778
)
 
513,778

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
440,869

 
—

 
167,622

 
608,491

   Allowance for doubtful accounts
 
(39,895
)
 
—

 
—

 
(39,895
)
   Associated companies
 
30,948

 
(34,177
)
 
3,230

 
—

   Other
 
169,447

 
—

 
8,917

 
178,364

   Accrued unbilled revenues
 
321,940

 
—

 
—

 
321,940

     Total accounts receivable
 
923,309

 
(34,177
)
 
179,769

 
1,068,900

Deferred fuel costs
 
—

 
—

 
—

 
—

Fuel inventory - at average cost
 
210,861

 
—

 
6,949

 
217,810

Materials and supplies - at average cost
 
627,702

 
—

 
245,654

 
873,357

Deferred nuclear refueling outage costs
 
140,423

 
—

 
71,089

 
211,512

Prepayments and other
 
141,096

 
(8,576
)
 
212,352

 
344,872

TOTAL
 
2,662,459

 
(543,641
)
 
1,948,593

 
4,067,412

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,390,786

 
(1,390,673
)
 
4,228

 
4,341

Decommissioning trust funds
 
2,515,066

 
—

 
2,834,887

 
5,349,953

Non-utility property - at cost (less accumulated depreciation)
212,997

 
(10
)
 
7,012

 
219,999

Other
 
460,322

 
—

 
8,382

 
468,704

TOTAL
 
4,579,171

 
(1,390,683
)
 
2,854,509

 
6,042,997

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
Electric
 
41,079,998

 
3,579

 
3,383,581

 
44,467,159

Property under capital lease
 
952,465

 
—

 
—

 
952,465

Natural gas
 
392,032

 
—

 
—

 
392,032

Construction work in progress
 
1,326,728

 
349

 
129,659

 
1,456,735

Nuclear fuel
 
856,573

 
—

 
488,850

 
1,345,422

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
44,607,796

 
3,928

 
4,002,090

 
48,613,813

Less - accumulated depreciation and amortization
 
19,654,374

 
198

 
1,134,880

 
20,789,452

PROPERTY, PLANT AND EQUIPMENT - NET
 
24,953,422

 
3,730

 
2,867,210

 
27,824,361

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Regulatory asset for income taxes - net
 
775,528

 
—

 
—

 
775,528

    Other regulatory assets
 
4,704,796

 
—

 
—

 
4,704,796

    Deferred fuel costs
 
238,902

 
—

 
—

 
238,902

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
15,888

 
1,206

 
37,809

 
54,903

Other
 
52,641

 
9,980

 
498,989

 
561,610

TOTAL
 
6,161,854

 
11,186

 
539,871

 
6,712,911

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
38,356,906

 
$
(1,919,408
)
 
$
8,210,183

 
$
44,647,681

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
209,374

 
$
—

 
$
5,000

 
$
214,374

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
(324,315
)
 
324,315

 
—

  Other
 
72,047

 
422,302

 
—

 
494,348

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
25,119

 
(50,553
)
 
25,433

 
—

  Other
 
877,395

 
593

 
193,810

 
1,071,798

Customer deposits
 
419,407

 
—

 
—

 
419,407

Taxes accrued
 
159,650

 
(105,466
)
 
155,893

 
210,077

Interest accrued
 
163,391

 
31,161

 
13

 
194,565

Deferred fuel costs
 
235,986

 
—

 
—

 
235,986

Obligations under capital leases
 
2,709

 
—

 
—

 
2,709

Pension and other postretirement liabilities
 
53,143

 
—

 
9,370

 
62,513

Other
 
150,308

 
1,936

 
31,937

 
184,181

TOTAL
 
2,368,529

 
(24,342
)
 
745,771

 
3,089,958

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
7,459,787

 
300,243

 
546,835

 
8,306,865

Accumulated deferred investment tax credits
 
234,300

 
—

 
—

 
234,300

Obligations under capital leases
 
27,001

 
—

 
—

 
27,001

Other regulatory liabilities
 
1,414,898

 
—

 
—

 
1,414,898

Decommissioning and retirement cost liabilities
 
2,720,676

 
—

 
2,069,511

 
4,790,187

Accumulated provisions
 
458,366

 
—

 
2,361

 
460,727

Pension and other postretirement liabilities
 
2,423,018

 
—

 
764,339

 
3,187,357

Long-term debt
 
10,643,726

 
2,426,571

 
41,259

 
13,111,556

Other
 
736,685

 
(594,523
)
 
307,694

 
449,856

TOTAL
 
26,118,457

 
2,132,291

 
3,731,999

 
31,982,747

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
293,936

 
—

 
24,249

 
318,185

 
 
 
 
 
 
 
 
 
EQUITY
 
 
 
 
 
 
 
 
Common Shareholders' Equity:
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
      issued 254,752,788 shares in 2015
 
2,091,268

 
(2,289,823
)
 
201,103

 
2,548

  Paid-in capital
 
2,548,659

 
1,174,256

 
1,680,843

 
5,403,758

  Retained earnings
 
5,185,328

 
2,520,589

 
1,687,996

 
9,393,913

  Accumulated other comprehensive income (loss)
 
(129,271
)
 
—

 
138,222

 
8,951

  Less - treasury stock, at cost (76,363,763 shares in 2015)
 
120,000

 
5,432,379

 
—

 
5,552,379

  Total common shareholders' equity
 
9,575,984

 
(4,027,357
)
 
3,708,164

 
9,256,791

Subsidiaries' preferred stock without sinking fund
 
—

 
—

 
—

 
—

TOTAL
 
9,575,984

 
(4,027,357
)
 
3,708,164

 
9,256,791

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
38,356,906

 
$
(1,919,408
)
 
$
8,210,183

 
$
44,647,681

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 





Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
109,253

 
$
4,306

 
$
17,768

 
$
131,327

    Temporary cash investments
 
864,162

 
11,606

 
414,931

 
1,290,699

     Total cash and cash equivalents
 
973,415

 
15,912

 
432,699

 
1,422,026

Notes receivable
 
—

 
(521,183
)
 
521,183

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
473,695

 
—

 
123,222

 
596,917

   Allowance for doubtful accounts
 
(35,663
)
 
—

 
—

 
(35,663
)
   Associated companies
 
28,475

 
(30,281
)
 
1,806

 
—

   Other
 
198,525

 
11,315

 
10,502

 
220,342

   Accrued unbilled revenues
 
321,659

 
—

 
—

 
321,659

     Total accounts receivable
 
986,691

 
(18,966
)
 
135,530

 
1,103,255

Deferred fuel costs
 
155,140

 
—

 
—

 
155,140

Accumulated deferred income taxes
 
107,482

 
(139,913
)
 
60,214

 
27,783

Fuel inventory - at average cost
 
193,710

 
—

 
11,724

 
205,434

Materials and supplies - at average cost
 
602,656

 
—

 
315,928

 
918,584

Deferred nuclear refueling outage costs
 
86,753

 
—

 
127,435

 
214,188

Prepayments and other
 
155,219

 
(4,784
)
 
192,788

 
343,223

TOTAL
 
3,261,066

 
(668,934
)
 
1,797,501

 
4,389,633

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,390,786

 
(1,390,674
)
 
36,122

 
36,234

Decommissioning trust funds
 
2,471,082

 
—

 
2,899,850

 
5,370,932

Non-utility property - at cost (less accumulated depreciation)
 
201,618

 
4,261

 
7,912

 
213,791

Other
 
396,102

 
—

 
9,067

 
405,169

TOTAL
 
4,459,588

 
(1,386,413
)
 
2,952,951

 
6,026,126

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
Electric
 
39,845,364

 
3,402

 
5,032,653

 
44,881,419

Property under capital lease
 
945,784

 
—

 
—

 
945,784

Natural gas
 
377,565

 
—

 
—

 
377,565

Construction work in progress
 
970,629

 
289

 
455,063

 
1,425,981

Nuclear fuel
 
839,694

 
—

 
702,361

 
1,542,055

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
42,979,036

 
3,691

 
6,190,077

 
49,172,804

Less - accumulated depreciation and amortization
 
19,007,189

 
204

 
1,442,465

 
20,449,858

PROPERTY, PLANT AND EQUIPMENT - NET
 
23,971,847

 
3,487

 
4,747,612

 
28,722,946

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Regulatory asset for income taxes - net
 
836,064

 
—

 
—

 
836,064

    Other regulatory assets
 
4,968,553

 
—

 
—

 
4,968,553

    Deferred fuel costs
 
238,102

 
—

 
—

 
238,102

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
9,804

 
1,825

 
36,722

 
48,351

Other
 
67,163

 
(1,296
)
 
741,641

 
807,508

TOTAL
 
6,493,785

 
529

 
781,436

 
7,275,750

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
38,186,286

 
$
(2,051,331
)
 
$
10,279,500

 
$
46,414,455

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
327,790

 
$
550,000

 
$
21,585

 
$
899,375

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
(238,196
)
 
238,196

 
—

  Other
 
114,417

 
483,990

 
—

 
598,407

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
19,617

 
(39,323
)
 
19,706

 
—

  Other
 
889,763

 
332

 
276,336

 
1,166,431

Customer deposits
 
412,166

 
—

 
—

 
412,166

Taxes accrued
 
88,681

 
19,887

 
19,540

 
128,108

Accumulated deferred income taxes
 
20,653

 
17,386

 
—

 
38,039

Interest accrued
 
181,359

 
24,550

 
101

 
206,010

Deferred fuel costs
 
91,602

 
—

 
—

 
91,602

Obligations under capital leases
 
2,508

 
—

 
—

 
2,508

Pension and other postretirement liabilities
 
47,269

 
—

 
10,725

 
57,994

Other
 
148,473

 
2,339

 
97,439

 
248,251

TOTAL
 
2,344,298

 
820,965

 
683,628

 
3,848,891

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
7,780,487

 
88,150

 
1,264,524

 
9,133,161

Accumulated deferred investment tax credits
 
247,521

 
—

 
—

 
247,521

Obligations under capital leases
 
29,710

 
—

 
—

 
29,710

Other regulatory liabilities
 
1,383,609

 
—

 
—

 
1,383,609

Decommissioning and retirement cost liabilities
 
2,540,529

 
—

 
1,917,767

 
4,458,296

Accumulated provisions
 
413,842

 
—

 
4,286

 
418,128

Pension and other postretirement liabilities
 
2,767,800

 
—

 
870,495

 
3,638,295

Long-term debt
 
10,688,366

 
1,640,291

 
58,053

 
12,386,710

Other
 
803,136

 
(584,460
)
 
338,973

 
557,649

TOTAL
 
26,655,000

 
1,143,981

 
4,454,098

 
32,253,079

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
186,511

 
—

 
24,249

 
210,760

 
 
 
 
 
 
 
 
 
EQUITY
 
 
 
 
 
 
 
 
Common Shareholders' Equity:
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
      issued 254,752,788 shares in 2014
 
2,161,268

 
(2,359,824
)
 
201,104

 
2,548

  Paid-in capital
 
2,458,397

 
1,239,983

 
1,676,973

 
5,375,353

  Retained earnings
 
4,572,383

 
2,481,090

 
3,116,184

 
10,169,657

  Accumulated other comprehensive income (loss)
 
(165,571
)
 
—

 
123,264

 
(42,307
)
  Less - treasury stock, at cost (75,512,079 shares in 2014)
 
120,000

 
5,377,526

 
—

 
5,497,526

  Total common shareholders' equity
 
8,906,477

 
(4,016,277
)
 
5,117,525

 
10,007,725

Subsidiaries' preferred stock without sinking fund
 
94,000

 
—

 
—

 
94,000

TOTAL
 
9,000,477

 
(4,016,277
)
 
5,117,525

 
10,101,725

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
38,186,286

 
$
(2,051,331
)
 
$
10,279,500

 
$
46,414,455

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,019,409

 
$
(11
)
 
$
—

 
$
2,019,398

     Natural gas
 
30,941

 
—

 
—

 
30,941

     Competitive businesses
 
—

 
—

 
458,184

 
458,184

                         Total
 
2,050,350

 
(11
)
 
458,184

 
2,508,523

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
478,902

 
(11
)
 
53,674

 
532,565

          Purchased power
 
250,851

 
11

 
25,208

 
276,070

          Nuclear refueling outage expenses
 
27,904

 
—

 
22,838

 
50,741

          Other operation and maintenance
 
642,734

 
4,291

 
257,587

 
904,612

     Asset write-offs, impairments and related charges
 
68,672

 
—

 
394,030

 
462,702

     Decommissioning
 
36,520

 
—

 
36,136

 
72,656

     Taxes other than income taxes
 
119,959

 
(84
)
 
27,511

 
147,386

     Depreciation and amortization
 
276,944

 
632

 
52,518

 
330,095

     Other regulatory charges (credits) - net
 
140,033

 
—

 
—

 
140,033

                         Total
 
2,042,519

 
4,839

 
869,502

 
2,916,860

 
 
 
 
 
 
 
 
 
     Gain on sale of asset
 
—

 
—

 
154,037

 
154,037

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
7,831

 
(4,850
)
 
(257,281
)
 
(254,300
)
 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
14,067

 
—

 
—

 
14,067

     Interest and investment income
 
48,826

 
(41,460
)
 
32,803

 
40,169

     Miscellaneous - net
 
(9,677
)
 
(7,016
)
 
(44,536
)
 
(61,229
)
                          Total
 
53,216

 
(48,476
)
 
(11,733
)
 
(6,993
)
 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
140,990

 
17,724

 
7,836

 
166,550

     Allowance for borrowed funds used during construction
 
(7,177
)
 
—

 
—

 
(7,177
)
                         Total
 
133,813

 
17,724

 
7,836

 
159,373

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
(72,766
)
 
(71,050
)
 
(276,850
)
 
(420,666
)
 
 
 
 
 
 
 
 
 
Income taxes
 
(391,231
)
 
(11,567
)
 
(122,717
)
 
(525,515
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
318,465

 
(59,483
)
 
(154,133
)
 
104,849

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
4,729

 
—

 
547

 
5,276

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
313,736

 
$
(59,483
)
 
$
(154,680
)
 
$
99,573

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$1.76

 
($0.33)

 
($0.87)

 
$0.56

   DILUTED
 
$1.75

 
($0.33)

 
($0.86)

 
$0.56

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
178,387,574

   DILUTED
 
 
 
 
 
 
 
179,069,948

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended December 31, 2014
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,167,568

 
$
(26
)
 
$
—

 
$
2,167,542

     Natural gas
 
40,067

 
—

 
—

 
40,067

     Competitive businesses
 
—

 
57

 
623,652

 
623,709

                         Total
 
2,207,635

 
31

 
623,652

 
2,831,318

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
535,527

 
(26
)
 
90,246

 
625,747

          Purchased power
 
344,879

 
26

 
12,878

 
357,783

          Nuclear refueling outage expenses
 
30,479

 
—

 
39,508

 
69,987

          Other operation and maintenance
 
636,263

 
4,274

 
277,409

 
917,946

     Asset write-offs, impairments and related charges
 
11,368

 
—

 
612

 
11,980

     Decommissioning
 
33,636

 
—

 
37,567

 
71,203

     Taxes other than income taxes
 
105,460

 
140

 
32,067

 
137,667

     Depreciation and amortization
 
262,119

 
761

 
63,213

 
326,093

     Other regulatory charges (credits) - net
 
(6,762
)
 
—

 
—

 
(6,762
)
                         Total
 
1,952,969

 
5,175

 
553,500

 
2,511,644

 
 
 
 
 
 
 
 
 
     Gain on sale of asset
 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
254,666

 
(5,144
)
 
70,152

 
319,674

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
18,148

 
—

 
—

 
18,148

     Interest and investment income
 
38,343

 
(36,919
)
 
37,222

 
38,646

     Miscellaneous - net
 
2,188

 
(1,872
)
 
(9,307
)
 
(8,991
)
                          Total
 
58,679

 
(38,791
)
 
27,915

 
47,803

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
147,051

 
18,121

 
4,552

 
169,724

     Allowance for borrowed funds used during construction
 
(9,377
)
 
—

 
—

 
(9,377
)
                         Total
 
137,674

 
18,121

 
4,552

 
160,347

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
175,671

 
(62,056
)
 
93,515

 
207,130

 
 
 
 
 
 
 
 
 
Income taxes
 
62,013

 
(15,723
)
 
35,834

 
82,124

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
113,658

 
(46,333
)
 
57,681

 
125,006

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
4,332

 
—

 
547

 
4,879

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
109,326

 
$
(46,333
)
 
$
57,134

 
$
120,127

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$0.61

 
($0.26)

 
$0.32

 
$0.67

   DILUTED
 
$0.60

 
($0.25)

 
$0.31

 
$0.66

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,245,555

   DILUTED
 
 
 
 
 
 
 
181,603,441

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Year to Date December 31, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,308,740

 
$
(62
)
 
$
—

 
$
9,308,678

     Natural gas
 
142,746

 
—

 
—

 
142,746

     Competitive businesses
 
—

 
—

 
2,061,827

 
2,061,827

                         Total
 
9,451,486

 
(62
)
 
2,061,827

 
11,513,251

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
2,137,122

 
(62
)
 
315,111

 
2,452,171

          Purchased power
 
1,310,175

 
66

 
80,564

 
1,390,805

          Nuclear refueling outage expenses
 
117,545

 
—

 
133,771

 
251,316

          Other operation and maintenance
 
2,443,075

 
12,533

 
899,373

 
3,354,981

     Asset write-offs, impairments and related charges
 
68,672

 
—

 
2,036,234

 
2,104,906

     Decommissioning
 
142,744

 
—

 
137,528

 
280,272

     Taxes other than income taxes
 
507,739

 
1,150

 
110,533

 
619,422

     Depreciation and amortization
 
1,096,088

 
2,156

 
239,032

 
1,337,276

     Other regulatory charges (credits) - net
 
175,304

 
—

 
—

 
175,304

                         Total
 
7,998,464

 
15,843

 
3,952,146

 
11,966,453

 
 
 
 
 
 
 
 
 
     Gain on sale of asset
 
—

 
—

 
154,037

 
154,037

 
 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS)
 
1,453,022

 
(15,905
)
 
(1,736,282
)
 
(299,165
)
 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
51,908

 
—

 
—

 
51,908

     Interest and investment income
 
191,546

 
(153,138
)
 
148,654

 
187,062

     Miscellaneous - net
 
(22,067
)
 
(12,350
)
 
(61,580
)
 
(95,997
)
                          Total
 
221,387

 
(165,488
)
 
87,074

 
142,973

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
569,759

 
73,549

 
26,788

 
670,096

     Allowance for borrowed funds used during construction
 
(26,627
)
 
—

 
—

 
(26,627
)
                         Total
 
543,132

 
73,549

 
26,788

 
643,469

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
1,131,277

 
(254,942
)
 
(1,675,996
)
 
(799,661
)
 
 
 
 
 
 
 
 
 
Income taxes
 
16,761

 
(49,349
)
 
(610,339
)
 
(642,927
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME (LOSS)
 
1,114,516

 
(205,593
)
 
(1,065,657
)
 
(156,734
)
 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
17,641

 
—

 
2,187

 
19,828

 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
1,096,875

 
$
(205,593
)
 
$
(1,067,844
)
 
$
(176,562
)
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$6.12

 
($1.15)

 
($5.96)

 
($0.99)

   DILUTED
 
$6.12

 
($1.15)

 
($5.96)

 
($0.99)

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,176,356

   DILUTED
 
 
 
 
 
 
 
179,176,356

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Year to Date December 31, 2014
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,592,028

 
$
(126
)
 
$
—

 
$
9,591,902

     Natural gas
 
181,794

 
—

 
—

 
181,794

     Competitive businesses
 
—

 
1,821

 
2,719,404

 
2,721,225

                         Total
 
9,773,822

 
1,695

 
2,719,404

 
12,494,921

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
2,219,637

 
(166
)
 
413,087

 
2,632,558

          Purchased power
 
1,833,267

 
42

 
82,105

 
1,915,414

          Nuclear refueling outage expenses
 
118,358

 
—

 
149,321

 
267,679

          Other operation and maintenance
 
2,276,263

 
11,255

 
1,023,018

 
3,310,536

     Asset write-offs, impairments and related charges
 
72,225

 
—

 
107,527

 
179,752

     Decommissioning
 
131,110

 
—

 
141,511

 
272,621

     Taxes other than income taxes
 
472,729

 
1,148

 
130,729

 
604,606

     Depreciation and amortization
 
1,039,012

 
3,702

 
275,924

 
1,318,638

     Other regulatory charges (credits) - net
 
(13,772
)
 
—

 
—

 
(13,772
)
                         Total
 
8,148,829

 
15,981

 
2,323,222

 
10,488,032

 
 
 
 
 
 
 
 
 
     Gain on sale of asset
 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
1,624,993

 
(14,286
)
 
396,182

 
2,006,889

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
64,802

 
—

 
—

 
64,802

     Interest and investment income
 
171,217

 
(137,490
)
 
113,959

 
147,686

     Miscellaneous - net
 
(10,639
)
 
(9,391
)
 
(21,986
)
 
(42,016
)
                          Total
 
225,380

 
(146,881
)
 
91,973

 
170,472

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
565,305

 
79,132

 
16,646

 
661,083

     Allowance for borrowed funds used during construction
 
(33,576
)
 
—

 
—

 
(33,576
)
                         Total
 
531,729

 
79,132

 
16,646

 
627,507

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
1,318,644

 
(240,299
)
 
471,509

 
1,549,854

 
 
 
 
 
 
 
 
 
Income taxes
 
472,148

 
(59,539
)
 
176,988

 
589,597

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
846,496

 
(180,760
)
 
294,521

 
960,257

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
17,348

 
—

 
2,188

 
19,536

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
829,148

 
$
(180,760
)
 
$
292,333

 
$
940,721

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$4.62

 
($1.01)

 
$1.63

 
$5.24

   DILUTED
 
$4.60

 
($1.00)

 
$1.62

 
$5.22

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,506,151

   DILUTED
 
 
 
 
 
 
 
180,296,885

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Three Months Ended December 31, 2015 vs. 2014
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2015
 
2014
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
104,849

 
$
125,006

 
$
(20,157
)
Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
504,546

 
542,345

 
(37,799
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(552,366
)
 
116,553

 
(668,919
)
  Asset write-offs, impairments and related charges
 
462,702

 
16,612

 
446,090

  Gain on sale of asset
 
(154,037
)
 
—

 
(154,037
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
260,463

 
217,601

 
42,862

     Fuel inventory
 
(4,798
)
 
(26,339
)
 
21,541

     Accounts payable
 
(44,902
)
 
27,171

 
(72,073
)
     Prepaid taxes and taxes accrued
 
(26,260
)
 
(82,730
)
 
56,470

     Interest accrued
 
22,923

 
28,944

 
(6,021
)
     Deferred fuel costs
 
133,341

 
53,784

 
79,557

     Other working capital accounts
 
19,441

 
116,485

 
(97,044
)
  Changes in provisions for estimated losses
 
(12,611
)
 
14,358

 
(26,969
)
  Changes in other regulatory assets
 
107,073

 
(1,208,592
)
 
1,315,665

  Changes in other regulatory liabilities
 
156,568

 
46,060

 
110,508

  Changes in pensions and other postretirement liabilities
 
(138,780
)
 
1,599,620

 
(1,738,400
)
  Other
 
103,387

 
(588,806
)
 
692,193

Net cash flow provided by operating activities
 
941,539

 
998,072

 
(56,533
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(799,102
)
 
(612,580
)
 
(186,522
)
Allowance for equity funds used during construction
 
14,207

 
19,238

 
(5,031
)
Nuclear fuel purchases
 
(153,342
)
 
(184,076
)
 
30,734

Proceeds from sale of assets
 
487,406

 
—

 
487,406

Insurance proceeds received for property damages
 
11,654

 
7,320

 
4,334

Changes in securitization account
 
2,950

 
6,419

 
(3,469
)
Payments to storm reserve escrow account
 
(207
)
 
(1,887
)
 
1,680

Receipts from storm reserve escrow account
 
5,916

 
—

 
5,916

Increase in other investments
 
15,894

 
9,893

 
6,001

Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
18,296

 
—

 
18,296

Proceeds from nuclear decommissioning trust fund sales
 
1,004,417

 
425,298

 
579,119

Investment in nuclear decommissioning trust funds
 
(1,030,497
)
 
(455,672
)
 
(574,825
)
Net cash flow used in investing activities
 
(422,408
)
 
(786,047
)
 
363,639

FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
1,296,305

 
1,432,453

 
(136,148
)
    Preferred stock of subsidiary
 
107,426

 
—

 
107,426

    Treasury stock
 
148

 
106,798

 
(106,650
)
  Retirement of long-term debt
 
(1,166,400
)
 
(787,618
)
 
(378,782
)
  Repurchase of common stock
 
—

 
(165,012
)
 
165,012

  Changes in credit borrowings and commercial paper - net
 
(287,674
)
 
(293,038
)
 
5,364

  Other
 
(2,034
)
 
2,597

 
(4,631
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(151,629
)
 
(149,809
)
 
(1,820
)
     Preferred stock
 
(4,910
)
 
(4,879
)
 
(31
)
Net cash flow provided by (used in) financing activities
 
(208,768
)
 
141,492

 
(350,260
)
Net increase in cash and cash equivalents
 
310,363

 
353,517

 
(43,154
)
Cash and cash equivalents at beginning of period
 
1,040,598

 
1,068,509

 
(27,911
)
Cash and cash equivalents at end of period
 
$
1,350,961

 
$
1,422,026

 
$
(71,065
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$140,141

 
$135,276

 
$4,865

     Income taxes
 
$7,810

 
$29,939

 
($22,129)





Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Year to Date December 31, 2015 vs. 2014
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2015
 
2014
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to reconcile consolidated net income (loss) to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
2,117,236

 
2,127,892

 
(10,656
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(820,350
)
 
596,935

 
(1,417,285
)
  Asset write-offs, impairments and related charges
 
2,104,906

 
123,527

 
1,981,379

  Gain on sale of asset
 
(154,037
)
 
—

 
(154,037
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
38,152

 
98,493

 
(60,341
)
     Fuel inventory
 
(12,376
)
 
3,524

 
(15,900
)
     Accounts payable
 
(135,211
)
 
(12,996
)
 
(122,215
)
     Prepaid taxes and taxes accrued
 
81,969

 
(62,985
)
 
144,954

     Interest accrued
 
(11,445
)
 
25,013

 
(36,458
)
     Deferred fuel costs
 
298,725

 
(70,691
)
 
369,416

     Other working capital accounts
 
(113,701
)
 
112,390

 
(226,091
)
  Changes in provisions for estimated losses
 
42,566

 
301,871

 
(259,305
)
  Changes in other regulatory assets
 
262,317

 
(1,061,537
)
 
1,323,854

  Changes in other regulatory liabilities
 
61,241

 
87,654

 
(26,413
)
  Changes in pensions and other postretirement liabilities
 
(446,418
)
 
1,308,166

 
(1,754,584
)
  Other
 
134,344

 
(647,952
)
 
782,296

Net cash flow provided by operating activities
 
3,291,184

 
3,889,561

 
(598,377
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(2,500,860
)
 
(2,119,191
)
 
(381,669
)
Allowance for equity funds used during construction
 
53,635

 
68,375

 
(14,740
)
Nuclear fuel purchases
 
(493,604
)
 
(537,548
)
 
43,944

Proceeds from sale of assets
 
487,406

 
10,100

 
477,306

Insurance proceeds received for property damages
 
24,399

 
40,670

 
(16,271
)
Changes in securitization account
 
(5,806
)
 
1,511

 
(7,317
)
NYPA value sharing payment
 
(70,790
)
 
(72,000
)
 
1,210

Payments to storm reserve escrow account
 
(69,163
)
 
(276,057
)
 
206,894

Receipts from storm reserve escrow account
 
5,916

 
—

 
5,916

Increase in other investments
 
571

 
46,983

 
(46,412
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
18,296

 
—

 
18,296

Proceeds from nuclear decommissioning trust fund sales
 
2,492,176

 
1,872,115

 
620,061

Investment in nuclear decommissioning trust funds
 
(2,550,958
)
 
(1,989,446
)
 
(561,512
)
Net cash flow used in investing activities
 
(2,608,782
)
 
(2,954,488
)
 
345,706

FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
3,502,189

 
3,100,069

 
402,120

    Preferred stock of subsidiary
 
107,426

 
—

 
107,426

    Treasury stock
 
24,366

 
194,866

 
(170,500
)
  Retirement of long-term debt
 
(3,461,518
)
 
(2,323,313
)
 
(1,138,205
)
  Repurchase of common stock
 
(99,807
)
 
(183,271
)
 
83,464

  Repurchase / redemption of preferred stock
 
(94,285
)
 
—

 
(94,285
)
  Changes in credit borrowings and commercial paper - net
 
(104,047
)
 
(448,475
)
 
344,428

  Other
 
(9,136
)
 
23,579

 
(32,715
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(598,897
)
 
(596,117
)
 
(2,780
)
     Preferred stock
 
(19,758
)
 
(19,511
)
 
(247
)
Net cash flow used in financing activities
 
(753,467
)
 
(252,173
)
 
(501,294
)
Net increase (decrease) in cash and cash equivalents
 
(71,065
)
 
682,900

 
(753,965
)
Cash and cash equivalents at beginning of period
 
1,422,026

 
739,126

 
682,900

Cash and cash equivalents at end of period
 
$
1,350,961

 
$
1,422,026

 
$
(71,065
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$663,630

 
$611,376

 
$52,254

     Income taxes
 
$103,589

 
$77,799

 
$25,790