EX-99.1 2 a07216991.htm EXHIBIT 99.1 Exhibit


 
 
 
 
Entergy
639 Loyola Avenue
New Orleans, LA 70113


Date:
August 2, 2016
 
News
 
 
 
Release
For Release:
Immediately
 
 
 
 
 
 
Contact:
Kay Jones (Media)
(504) 576-4238
cjone22@entergy.com
David Borde (Investor Relations)
(504) 576-5668
dborde@entergy.com

ENTERGY REPORTS SECOND QUARTER EARNINGS
Solid second quarter results position company to meet full year goals

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported second quarter 2016 earnings per share of $3.16 on an as-reported basis and $3.11 on an operational basis.

Consolidated Earnings (GAAP and Non-GAAP Measures)
Second Quarter 2016 (See Appendix A and Appendix C for reconciliation of GAAP to non-GAAP measures and description of special items)
(Per share in $)
 
 
 
 
Utility, Parent & Other
EWC
Consolidated
As-Reported
1.77
1.39
3.16
  Specials
—
0.05
0.05
Operational
1.77
1.34
3.11
 
 
 
 
Included in As-Reported and Operational:
  Weather
(0.09)
—
(0.09)
  Income Taxes, Net of Sharing
0.68
1.33
2.01
 
 
 
 
Utility, Parent & Other Adjusted
1.18
 
 
 
 
 
 

“We delivered solid results through the first half of the year, and we continue to make progress toward meeting our objective of steady, predictable growth at the Utility while reducing our EWC footprint,” said Entergy chairman and chief executive officer Leo Denault. “As-reported earnings for both businesses were higher than expected, with Utility, Parent & Other Adjusted earnings substantially higher than last year and in line with our growth expectations for our core business. We are confident we can deliver on our 2016 commitments, as well as our Utility, Parent & Other long-term outlook.”




Table of Contents Page
 
 
 
News Release1
Appendices7
A: Consolidated Results and Special Items8
B: Variance Analysis10
C: Utility Financial and Operational Measures12
D: EWC Financial and Operational Measures13
E: Consolidated Financial Performance Measures14
F: Definitions, Abbreviations and Acronyms15
G: GAAP to Non-GAAP Reconciliations19
Financial Statements23
 
 
 


Business highlights included the following:
•
Entergy updated its consolidated operational EPS guidance range.
•
Self-build resources were selected in ELL and ETI RFPs, as well as a PPA for ELL.
•
EAI filed its first forward test year FRP.
•
The PUCT approved ETI’s TCRF.
•
Moody’s Investors Service upgraded EMI to positive outlook.
Consolidated Earnings (GAAP and Non-GAAP Measures)
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items)
 
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
As-Reported Earnings ($ in millions)
567.3
148.8
418.5
797.3
446.9
350.4
Less Special Items
9.6
(1.1)
10.7
(3.3)
(5.7)
2.4
Operational Earnings
557.7
149.9
407.8
800.6
452.6
348.0
Weather Impact
(16.3)
(2.9)
(13.4)
(41.8)
11.4
(53.2)
 
 
 
 
 
 
 
As-Reported Earnings (per share in $)
3.16
0.83
2.33
4.45
2.48
1.97
Less: Special Items
0.05
—
0.05
(0.02)
(0.03)
0.01
Operational Earnings
3.11
0.83
2.28
4.47
2.51
1.96
Weather Impact
(0.09)
(0.02)
(0.07)
(0.23)
0.06
(0.29)
 
 
 
 
 
 
 
Totals may not foot due to rounding

Consolidated Results

Second quarter 2016 EPS were $3.16 on an as-reported basis and $3.11 on an operational basis, compared to second quarter 2015 as-reported and operational EPS of 83 cents. Current period results were favorably impacted by income tax items, which resulted from resolution of previous positions at Utility, as well as a tax election at EWC. Summary discussions by business are below.

Additional details, including information on operating cash flow by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.

Utility, Parent & Other Results

For second quarter 2016, Utility, Parent and Other EPS were $1.77 on an as-reported basis and $1.18 on an adjusted basis. In comparison, second quarter 2015 as-reported EPS were 85 cents and adjusted EPS were 87 cents. The current period results reflected growth in the Utility




business, including effects of new rate actions that recover investments and improve returns, as well as income tax items recorded during the quarter.

Utility, Parent & Other second quarter 2016 results included income tax items for resolution of previous positions, which drove 68 cents EPS for income taxes, net of a reserve of approximately 6 cents for guaranteed customer sharing. Weather was milder than normal in both the current and prior periods, with the earnings effect more negative in second quarter 2016 compared to 2015.

Net revenue increased quarter-over-quarter driven by the Union acquisition and EAI’s 2015 rate case. Revenue increases for the Union acquisition included amounts to recover operating expenses for the asset. Industrial sales growth also contributed to the increase in net revenue.

Industrial sales were higher on continued growth for new and expansion customers as well as higher sales to existing customers. New and expansion customers across several sectors continued to operate, ramp up and come online. For existing customers, petroleum refiners comprised the majority of that increase as they continued to operate at high capacity levels compared to last year and.

Utility non-fuel O&M was lower than second quarter 2015 due partly to lower pension and OPEB expenses. Fossil spending was also lower due to outage scope, partially offset by spending for Union, which was acquired earlier this year.

Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other Adjusted EPS calculations which exclude special items and weather and normalizes income taxes.

Entergy Wholesale Commodities Results

EWC earned $1.39 per share on an as-reported basis and $1.34 per share on an operational basis for second quarter 2016. EWC recorded a 2 cents per share loss in second quarter 2015 on both an as-reported basis and an operational basis.

The EWC quarter-over-quarter increase was due largely to income tax items recorded in the current quarter, which increased EPS $1.33. Current quarter results were also affected by 2015 impairments, which reduced fuel, non-fuel O&M and depreciation expenses, as well as spent nuclear fuel litigation proceeds (a portion of which was considered “special” as discussed below). Conversely, net revenue declined as a result of lower energy and capacity prices as well as lower volume which resulted from the extended refueling outage at Indian Point 2.

EWC second quarter 2016 as-reported EPS included 5 cents for special items resulting from the decisions to close certain nuclear plants. These special items included 12 cents for a portion of litigation proceeds received from the DOE in connection with capitalized spent nuclear fuel storage costs that were previously impaired and written off, partially offset by 7 cents for severance and retention costs and capital that was expensed because the plants are impaired.

Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC Operational Adjusted EBITDA calculations.





Earnings Guidance

Entergy updated its 2016 operational guidance to be $6.60 to $7.40 per share and affirmed its Utility, Parent & Other Adjusted EPS guidance range of $4.20 to $4.50. The updated guidance range for Entergy includes tax benefits recorded in second quarter 2016, year-to-date weather, the extended outage at Indian Point 2 and lower commodity prices. See webcast presentation slides for additional details.

The company has provided 2016 earnings guidance with regard to the non-GAAP measures operational earnings per share and Utility, Parent and Other Adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items, which are non-routine items, such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as the company’s recent decisions to shut down certain of its nuclear plants. Consistent with SEC rules, the company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company’s current estimate for special items in 2016 relates to the decisions to close certain nuclear plants and for DOE litigation awards for those plants; those anticipated special items total approximately 35 cents per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.

Earnings Teleconference

A teleconference will be held at 10 a.m. CT on Tuesday, August 2, 2016, to discuss Entergy’s second quarter 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 85416349, 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 August 9, 2016, by dialing (855) 859-2056, conference ID 85416349. 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.”

Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents 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 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.






Second Quarter 2016 Earnings Release Appendices and Financial Statements

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 Operational Measures
•
Appendix D: EWC Financial and Operational Measures
•
Appendix E: Consolidated Financial Performance Measures
•
Appendix F: Definitions, Abbreviations and Acronyms
•
Appendix G: GAAP to Non-GAAP Reconciliations

Also included in this earnings release are:
•
Financial Statements






A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for current quarter and year-to-date 2016 versus 2015, 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
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items)
(Per share in $)
 
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
As-reported
 
 
 
 
 
 
Utility
2.09
1.11
0.98
3.18
2.35
0.83
Parent & Other
(0.32)
(0.26)
(0.06)
(0.57)
(0.53)
(0.04)
EWC
1.39
(0.02)
1.41
1.84
0.66
1.18
  Consolidated as-reported earnings
3.16
0.83
2.33
4.45
2.48
1.97
 
 
 
 
 
 
 
Less special items
 
 
 
 
 
 
Utility
—
—
—
—
—
—
Parent & Other
—
—
—
—
—
—
EWC
0.05
—
0.05
(0.02)
(0.03)
0.01
  Consolidated special items
0.05
—
0.05
(0.02)
(0.03)
0.01
 
 
 
 
 
 
 
Operational
 
 
 
 
 
 
Utility
2.09
1.11
0.98
3.18
2.35
0.83
Parent & Other
(0.32)
(0.26)
(0.06)
(0.57)
(0.53)
(0.04)
EWC
1.34
(0.02)
1.36
1.86
0.69
1.17
  Consolidated operational earnings
3.11
0.83
2.28
4.47
2.51
1.96
Weather impact
(0.09)
(0.02)
(0.07)
(0.23)
0.06
(0.29)
 
 
 
 
 
 
 

See Appendix B for detailed earnings variance analysis.

Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.

Appendix A-2: Consolidated Operating Cash Flow
Second Quarter and Year-to-Date 2016 vs. 2015
($ in millions)
 
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
Utility
690
762
(72)
1,149
1,216
(67)
Parent & Other
(47)
(43)
(4)
(109)
(94)
(15)
EWC
76
8
68
212
216
(4)
  Total Operating Cash Flow
719
727
(8)
1,252
1,338
(86)
 
 
 
 
 
 
 
Totals may not foot due to rounding

The quarter-over-quarter decrease in OCF was not significant. Intercompany income tax payments contributed to the line of business variances.






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 earnings consistent with GAAP, but are excluded from operational earnings. 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)
Second Quarter and Year-to-Date 2016 vs. 2015
(After-tax, per share in $)
 
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
EWC
 
 
 
 
 
 
Decisions to close VY, FitzPatrick and Pilgrim
(0.07)
—
(0.07)
(0.14)
(0.03)
(0.11)
DOE litigation awards for VY and FitzPatrick
0.12
—
0.12
0.12
—
0.12
  Total EWC
0.05
—
0.05
(0.02)
(0.03)
0.01
 
 
 
 
 
 
 
Total special items
0.05
—
0.05
(0.02)
(0.03)
0.01
 
 
 
 
 
 
 

Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Second Quarter and Year-to-Date 2016 vs. 2015
(Pre-tax except for Income taxes - other and Total, $ in millions)
 
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
EWC
 
 
 
 
 
 
Non-fuel O&M
22.7
(1.6)
24.3
11.2
(9.1)
20.3
Taxes other than income taxes
(0.9)
—
(0.9)
(1.9)
0.3
(2.2)
Asset write-off and impairments
(7.0)
—
(7.0)
(14.3)
—
(14.3)
Income taxes - other
(5.2)
0.6
(5.8)
1.8
3.0
(1.2)
  Total EWC
9.6
(1.1)
10.7
(3.3)
(5.7)
2.4
 
 
 
 
 
 
 
Total Special Items (after-tax)
9.6
(1.1)
10.7
(3.3)
(5.7)
2.4
 
 
 
 
 
 
 
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 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.

Appendix B-1: As-Reported and Operational EPS Variance Analysis
Second Quarter 2016 vs. 2015
(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
2015 earnings
1.11
1.11
 
(0.26)
(0.26)
 
(0.02)
(0.02)
 
0.83
0.83
Income taxes - other
0.79
0.79
(a)
(0.04)
(0.04)
 
1.33
1.33
(b)
2.08
2.08
Non-fuel O&M
0.09
0.09
(c)
(0.01)
(0.01)
 
0.22
0.14
(d)
0.30
0.22
Other income (deductions)-other
0.05
0.05
(e)
—
—
 
0.01
0.01
 
0.06
0.06
Taxes other than income taxes
(0.01)
(0.01)
 
—
—
 
0.04
0.04
 
0.03
0.03
Depreciation/amortization expense
(0.04)
(0.04)
 
—
—
 
0.06
0.06
(f)
0.02
0.02
Share effect
0.01
0.01
 
—
—
 
—
—
 
0.01
0.01
Asset write-offs and impairments
—
—
 
—
—
 
(0.03)
—
 
(0.03)
—
Decommissioning expense
(0.01)
(0.01)
 
—
—
 
(0.02)
(0.02)
 
(0.03)
(0.03)
Interest expense and other charges
(0.03)
(0.03)
 
(0.01)
(0.01)
 
—
—
 
(0.04)
(0.04)
Net revenue
0.13
0.13
(g)
—
—
 
(0.20)
(0.20)
(h)
(0.07)
(0.07)
2016 earnings
2.09
2.09
 
(0.32)
(0.32)
 
1.39
1.34
 
3.16
3.11
 
 
 
 
 
 
 
 
 
 
 
 





Appendix B-2: As-Reported and Operational EPS Variance Analysis
Year-to-Date 2016 vs. 2015
(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
2015 earnings
2.35
2.35
 
(0.53)
(0.53)
 
0.66
0.69
 
2.48
2.51
Income taxes - other
0.66
0.66
(a)
—
—
 
1.30
1.30
(b)
1.96
1.96
Non-fuel O&M
0.22
0.22
(c)
(0.01)
(0.01)
 
0.28
0.21
(d)
0.49
0.42
Taxes other than income taxes
0.02
0.02
 
—
—
 
0.03
0.04
 
0.05
0.06
Share effect
0.02
0.02
 
—
—
 
0.01
0.01
 
0.03
0.03
Depreciation/amortization expense
(0.07)
(0.07)
(i)
—
—
 
0.08
0.08
(f)
0.01
0.01
Asset write-offs and impairments
—
—
 
—
—
 
(0.05)
—
(j)
(0.05)
—
Decommissioning expense
(0.01)
(0.01)
 
—
—
 
(0.01)
(0.01)
 
(0.02)
(0.02)
Other income (deductions)-other
0.02
0.02
 
(0.01)
(0.01)
 
(0.06)
(0.06)
(k)
(0.05)
(0.05)
Interest expense and other charges
(0.03)
(0.03)
 
(0.02)
(0.02)
 
—
—
 
(0.05)
(0.05)
Net revenue
—
—
 
—
—
 
(0.40)
(0.40)
(h)
(0.40)
(0.40)
2016 earnings
3.18
3.18
 
(0.57)
(0.57)
 
1.84
1.86
 
4.45
4.47
 
 
 
 
 
 
 
 
 
 
 
 

See appendix in the webcast slide presentation for additional details on EWC line item variances.

(a)
The current quarter and year-to-date increases were due largely to the reversal of a portion of the provision for uncertain tax positions totaling $136 million for two previous positions that were resolved in the 2010-2011 tax audit. This was partly offset by customer sharing recorded as a regulatory charge ($16 million pre-tax, included in net revenue). The year-to-date variance also reflected a first quarter 2015 reversal of a portion of the provision for uncertain tax provisions related to interest accrual of approximately $24 million.
(b)
The current quarter and year-to-date increases were attributable largely to a tax election which reduced income tax expense $238 million.
(c)
The current quarter and year-to-date increases reflected lower pension and OPEB expenses stemming partly from a higher discount rate and lower fossil spending due to lower scope of work for outage activity. The expense decreases were partially offset by the Union acquisition (offset in net revenue). The year-to-date variance also reflected a deferral recorded at EAI in first quarter 2016, expenses in second quarter 2015 related to the ELL business combination and higher nuclear generation spending in 2016 due primarily to an increase in regulatory compliance costs, an overall higher scope of work done during plant outages and higher nuclear labor costs, including contract labor.
(d)
The current quarter and year-to-date increases reflected a reduction in expense for litigation proceeds received from the DOE in connection with spent nuclear fuel storage costs in second quarter 2016, a portion of the amounts received for VY and FitzPatrick (approximately 12 cents EPS) was considered “special.” Lower refueling outage expense, largely as a result of 2015 impairments, also contributed to the increase. Partially offsetting were higher expenses resulting from the decisions to close certain nuclear plants (these expenses were also considered “special”).
(e)
The current quarter increase was due largely to higher realized earnings on nuclear decommissioning trust funds (substantially offset in net revenue).
(f)
The current quarter and year-to-date increases resulted from 2015 impairments and recording the effects of DOE litigation proceeds related to spent nuclear fuel storage costs. These items were partially offset by the sale of RISEC.




Utility As-Reported Net Revenue
Variance Analysis
2016 vs. 2015 ($ EPS)
 
Second Quarter
Year-to-
Date
Weather
(0.07)
(0.29)
Sales growth/pricing
0.29
0.43
Other
(0.09)
(0.14)
Total
0.13
—
(g)
The current quarter increase was due primarily to rate changes associated with the Union acquisition, EAI’s 2015 rate case and industrial sales growth. Higher volume in the unbilled period also contributed. Partially offsetting the increase was a $16 million (pre-tax) reserve for the portion of tax benefit noted above to be shared with customers. The effect of weather was more unfavorable in the current period than a year ago.
(h)
The current quarter and year-to-date decreases were driven by lower energy and capacity pricing for nuclear assets. Volume from nuclear assets was also lower due largely to the extended Indian Point 2 refueling outage. The sale of RISEC facility in December 2015 also contributed to the decline. These decreases were partially offset by lower nuclear fuel expense (due largely to 2015 impairments).
(i)
The year-to-date decrease was due primarily to additions to plant, including the Union acquisition in March 2016.
(j)
The year-to-date decrease is attributable to capital that is recorded as non-fuel O&M for nuclear plants that have closed or are identified to close.
(k)
The year-to-date decrease was due largely to realized earnings from decommissioning trusts in 2015 from rebalancing of VY’s decommissioning trust.

C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, which excludes the effects of special items and weather and normalizes income tax expense.

Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items)
(Per share in $)
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
As-reported earnings
1.77
0.85
0.92
2.61
1.82
0.79
Less:
 
 
 
 
 
 
  Special items
—
—
—
—
—
—
  Weather
(0.09)
(0.02)
(0.07)
(0.23)
0.06
(0.29)
  Income taxes, net of sharing (l)
0.68
—
0.68
0.71
0.13
0.58
Adjusted EPS
1.18
0.87
0.31
2.13
1.63
0.50
 
 
 
 
 
 
 
(l)
Tax items recorded in second quarter 2016 are net of the reserve recorded for amounts to be shared with customers (reflected as a reduction in net revenue).





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

Appendix C-2: Utility Operational Performance Measures
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
Second Quarter
Year-to-Date
 
2016
2015
%
Change
% Weather Adjusted
2016
2015
%
Change
% Weather Adjusted
GWh billed
 
 
 
 
 
 
 
 
Residential
7,081
7,364
(3.8%)
(0.6%)
15,218
16,796
(9.4%)
(0.6%)
Commercial
6,777
6,904
(1.8%)
(0.6%)
13,288
13,625
(2.5%)
(1.2%)
Governmental
609
602
1.2%
1.8%
1,209
1,194
1.3%
1.5%
Industrial
11,509
10,737
7.2%
7.2%
22,564
21,144
6.7%
6.7%
Total retail sales
25,976
25,607
1.4%
2.7%
52,279
52,759
(0.9%)
2.2%
Wholesale
3,579
3,138
14.1%
 
6,719
4,949
35.8%
 
Total sales
29,555
28,745
2.8%
 
58,998
57,708
2.2%
 
 
 
 
 
 
 
Number of electric retail customers
 
 
 
 
 
Residential
 
 
 
 
2,448,934
2,430,698
0.8%
 
Commercial
 
 
 
 
352,615
348,337
1.2%
 
Governmental
 
 
 
 
17,641
17,487
0.9%
 
Industrial
 
 
 
 
46,752
45,892
1.9%
 
Total retail customers
 
 
 
 
2,865,942
2,842,414
0.8%
 
 
 
 
 
 
 
Net revenue ($ millions)
1,524
1,488
2.4%
 
2,899
2,898
—
 
As-reported non-fuel O&M per MWh
$20.80
$22.35
(6.9%)
 
$19.69
$21.26
(7.4%)
 
Operational non-fuel O&M per MWh
$20.80
$22.35
(6.9%)
 
$19.69
$21.26
(7.4%)
 
 
 
 
 
 
 

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




D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted earnings before interest, taxes, depreciation and amortization.

Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2016 vs. 2015
($ in millions)
Second Quarter
Year-to-Date
 
2016
2015
Change
2016
2015
Change
Net income
251
(4)
255
330
120
210
Add back: interest expense
6
6
—
13
12
1
Add back: income tax expense
(235)
(3)
(232)
(183)
67
(250)
Add back: depreciation and amortization
46
64
(18)
102
126
(24)
Subtract: interest and investment income
34
36
(2)
60
86
(26)
Add back: decommissioning expense
39
33
6
70
68
2
Adjusted EBITDA
73
60
13
272
307
(35)
Add back pre-tax special items for:
 
 
 
 
 
 
  Decisions to close VY, FitzPatrick and Pilgrim
19
2
17
39
9
30
  DOE litigation awards for VY and FitzPatrick
(34)
—
(34)
(34)
—
(34)
Operational adjusted EBITDA
58
62
(4)
277
315
(39)
 
 
 
 
 
 
 
Totals may not foot due to rounding





Appendix D-2 provides a comparative summary of EWC operational performance measures.

Appendix D-2: EWC Operational Performance Measures
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
Second Quarter
Year-to-Date
 
2016
2015
% Change
2016
2015
% Change
Owned capacity (MW) (m)
4,880
5,463
(10.7%)
4,880
5,463
(10.7%)
GWh billed
7,866
9,578
(17.9%)
17,112
19,170
(10.7%)
As-reported average total revenue per MWh
$43.74
$45.87
(4.6%)
$50.62
$56.44
(10.3%)
Adjusted average total revenue per MWh
$43.32
$45.47
(4.7%)
$50.22
$56.04
(10.4%)
Net revenue ($ millions)
293
350
(16.3%)
759
877
(13.5%)
As-reported non-fuel O&M per MWh
$23.50
$25.97
(9.5%)
$24.39
$25.93
(5.9%)
Operational non-fuel O&M per MWh
$26.38
$25.80
2.2%
$25.04
$25.46
(1.6%)
 
 
 
 
 
EWC Nuclear Fleet
 
 
 
 
Capacity factor
76%
89%
(14.6%)
83%
89%
(6.7%)
GWh billed
7,308
8,555
(14.6%)
15,996
17,173
(6.9%)
As-reported average total revenue per MWh
$43.52
$45.84
(5.1%)
$51.07
$55.85
(8.6%)
Adjusted average total revenue per MWh
$43.06
$45.40
(5.2%)
$50.65
$55.41
(8.6%)
Production cost per MWh
$23.06
$26.21
(12.0%)
$22.44
$25.91
(13.4%)
Net revenue ($ millions)
290
336
(13.7%)
754
847
(11.0%)
Refueling outage days
 
 
 
 
 
 
  Indian Point 2
77
—
 
102
—
 
  Indian Point 3
—
—
 
—
23
 
  Pilgrim
—
34
 
—
34
 
 
 
 
 
 
(m)
Second quarter and year-to-date 2016 exclude RISEC (583 MW) that was sold in December 2015.

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





E: Consolidated 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
Second Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
 
For 12 months ending June 30
2016
2015
 
Change
GAAP Measures
 
 
 
 
ROIC - as-reported
2.4%
5.0%
 
(2.6%)
ROE - as-reported
1.7%
7.9%
 
(6.2%)
Book value per share
$54.54
$56.58
 
($2.04)
End of period shares outstanding (millions)
178.9
179.5
 
(0.6)
Non-GAAP Measures
 
 
 
 
ROIC - operational
7.5%
5.4%
 
2.1%
ROE - operational
14.3%
8.8%
 
5.5%
 
 
 
 
 
As of June 30 ($ in millions)
 
 
 
 
GAAP Measures
 
 
 
 
Cash and cash equivalents
996
910
 
86
Revolver capacity
4,173
4,158
 
15
Commercial paper outstanding
853
895
 
(42)
Total debt
14,837
13,858
 
979
Securitization debt
716
734
 
(18)
Debt to capital ratio
59.6%
57.0%
 
2.6%
Off-balance sheet liabilities:
 
 
 
 
Debt of joint ventures - Entergy’s share
76
80
 
(4)
Leases - Entergy’s share
359
422
 
(63)
Power purchase agreements accounted for as leases
195
224
 
(29)
Total off-balance sheet liabilities
630
726
 
(96)
Non-GAAP Measures
 
 
 
 
Debt to capital ratio, excluding securitization debt
58.4%
55.6%
 
2.8%
Gross liquidity
5,169
5,068
 
101
Net debt to net capital ratio, excluding securitization debt
56.6%
53.9%
 
2.7%
Parent debt to total debt ratio, excluding securitization debt
19.1%
20.3%
 
(1.2%)
Debt to operational adjusted EBITDA, excluding securitization debt
4.4x
3.9x
 
0.5x
Operational FFO to debt ratio, excluding securitization debt
21.1%
28.4%
 
(7.3%)
 
 
 
 
 






F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures 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 (does not include revenue from investments in wind generation that is 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-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 and financially-settled instruments (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting)
 
 




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 (does not include amounts from investments in wind generation that are 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; 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 intent to shutdown Pilgrim on May 31, 2019 and FitzPatrick on 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 intent to shutdown Pilgrim on May 31, 2019 and FitzPatrick on 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 Corp. adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
ROE - as-reported
12-months rolling net income attributable to Entergy Corp. 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; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds
Adjusted EPS
As-reported EPS 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 EPS
As-reported EPS 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 attributable to Entergy Corp. adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
ROE - operational
12-months rolling operational net income attributable to Entergy Corp. 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
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
MTEP
MISO Transmission Expansion Planning
ADIT
Accumulated deferred income taxes
NEPOOL
New England Power Pool
ANO
Arkansas Nuclear One (nuclear)
Ninemile 6
Ninemile Point Unit 6
APSC
Arkansas Public Service Commission
NOAA
National Oceanic and Atmosphere Administration
BP
Basis point
Non-fuel O&M
Non-fuel operation and maintenance expense
CCGT
Combined cycle gas turbine
NRC
Nuclear Regulatory Commission
CCNO
Council of the City of New Orleans, Louisiana
NYISO
New York Independent System Operator, Inc.
COD
Commercial operation date
NYS
New York State
Cooper
Cooper Nuclear Station
NYSDEC
NYSDOS
New York State Department of Environmental
  Conservation
New York State Department of State
CT
Simple cycle combustion turbine
CZM
Coastal zone management
NYSE
New York Stock Exchange
DCRF
Distribution cost recovery factor
NYSE
New York Stock Exchange
DOE
U.S. Department of Energy
O&M
Operation and maintenance expense
EAI
EBITDA
Entergy Arkansas, Inc.
Earnings before interest, income taxes,
  depreciation and amortization
OCF
Net cash flow provided by operating activities
OPEB
Other post-employment benefits
EGSL
Entergy Gulf States Louisiana, L.L.C.
Palisades
Palisades Power Plant (nuclear)
ELL
Entergy Louisiana, LLC
Pilgrim
Pilgrim Nuclear Power Station (nuclear)
EMI
Entergy Mississippi, Inc.
PPA
PUCT
Power purchase agreement or purchased power agreement
Public Utility Commission of Texas
ENOI
Entergy New Orleans, Inc.
ESI
Entergy Services, Inc.
RFP
Request for proposal
EPS
Earnings per share
RFP
Request for proposal
ETI
Entergy Texas, Inc.
RISEC
Rhode Island State Energy Center (CCGT)
ETR
Entergy Corporation
ROE
Return on equity
EWC
Entergy Wholesale Commodities
ROIC
Return on invested capital
FCA
Forward capacity auction
ROS
Rest of state
FERC
Federal Energy Regulatory Commission
RPCE
Rough production cost equalization
FFO
Funds from operations
RSP
Rate Stabilization Plan (ELL Gas)
Firm LD
Firm liquidated damages
SEC
U.S. Securities and Exchange Commission
FitzPatrick
James A. FitzPatrick Nuclear Power Plant (nuclear)
SEMARI
Southeast Massachusetts/Rhode Island
FRP
Formula rate plan
SERI
System Energy Resources, Inc.
GAAP
Grand Gulf
Generally accepted accounting principles
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy
SPDES
State Pollutant Discharge Elimination System
HCM
Human Capital Management program
SPP
Southwest Power Pool
TCRF
Transmission cost recovery factor
Indian Point 2
Indian Point Energy Center Unit 2 (nuclear)
Top Deer
Top Deer Wind Ventures, LLC
Indian Point 3
Indian Point Energy Center Unit 3 (nuclear)
Union
Union Power Station
IPEC
Indian Point Energy Center (nuclear)
UP&O
Utility, Parent & Other
ISES
Independence Steam Electric Station (coal)
VY
Vermont Yankee Nuclear Power Station (nuclear)
ISO
Independent system operator
WACC
Weighted-average cost of capital
ISO-NE
ISO New England
WOTAB
West of the Atchafalaya Basin
LHV
Lower Hudson Valley
WQC
YOY
Water Quality Certification
Year-over-year
LPSC
Louisiana Public Service Commission
 
 
 
 






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)
 
Second Quarter
Year-to-Date
 
 
2016
2015
2016
2015
Utility
 
 
 
 
 
As-reported Utility non-fuel O&M
(A)
614,820
642,538
1,161,402
1,226,839
Operational Utility non-fuel O&M
(B)
614,820
642,538
1,161,402
1,226,839
Utility billed sales (GWh)
(C)
29,555
28,745
58,998
57,708
As-reported Utility non-fuel O&M per MWh
(A/C)
20.80
22.35
19.69
21.26
Operational Utility non-fuel O&M per MWh
(B/C)
20.80
22.35
19.69
21.26
 
 
 
 
 
 
EWC
 
 
 
 
 
As-reported EWC non-fuel O&M
(D)
184,820
248,738
417,285
497,063
Special Items included in non-fuel O&M:
 
 
 
 
 
 Decisions to close VY, FitzPatrick and Pilgrim
 
11,104
1,579
22,625
9,068
 DOE litigation awards for VY and FitzPatrick
 
(33,823)
—
(33,823)
—
     Total special items included in non-fuel O&M
(E)
(22,719)
1,579
(11,198)
9,068
Operational EWC non-fuel O&M
(D-E)
207,539
247,159
428,483
487,995
EWC billed sales (GWh)
(F)
7,866
9,578
17,112
19,170
 
 
 
 
 
 
As-reported EWC non-fuel O&M per MWh
(D/F)
23.50
25.97
24.39
25.93
Operational EWC non-fuel O&M per MWh
[(D-E)/(F)]
26.38
25.80
25.04
25.46
 
 
 
 
 
 
As-reported EWC operating revenue
(G)
344,110
439,306
866,189
1,081,896
Less Palisades below-market PPA amortization
(H)
3,364
3,800
6,728
7,600
Adjusted EWC operating revenue
(G-H)
340,746
435,506
859,461
1,074,296
 
 
 
 
 
 
As-reported EWC nuclear operating revenue
(I)
318,031
392,188
816,932
959,096
Less Palisades below-market PPA amortization
(H)
3,364
3,800
6,728
7,600
Adjusted EWC nuclear operating revenue
(I-H)
314,667
388,388
810,204
951,496
 
 
 
 
 
 
As-reported EWC average total revenue per MWh
(G)/(F)
43.74
45.87
50.62
56.44
Adjusted EWC average total revenue per MWh
[(G-H)/(F)]
43.32
45.47
50.22
56.04
 
 
 
 
 
 
EWC nuclear billed sales (GWh)
(J)
7,308
8,555
15,996
17,173
 
 
 
 
 
 
As-reported EWC nuclear average total revenue per MWh
(I)/(J)
43.52
45.84
51.07
55.85
Adjusted EWC nuclear average total revenue per MWh
[(I-H)/(J)]
43.06
45.40
50.65
55.41
 
 
 
 
 
 
Totals may not foot due to rounding




Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC Metrics
($ in millions)
 
Second Quarter
 
 
2016
2015
As-reported net income attributable to Entergy Corporation, rolling 12 months
(A)
174
797
Preferred dividends
 
21
20
Tax effected interest expense
 
404
391
As-reported net income attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense
(B)
599
1,208
 
 
 
 
Special items in prior quarters
 
(1,260)
(95)
Decisions to close VY, FitzPatrick and Pilgrim
 
(12)
(1)
DOE litigation awards for VY and FitzPatrick
 
22
—
  Total special items, rolling 12 months
(C)
(1,250)
(95)
 
 
 
 
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense
(B-C)
1,849
1,303
 
 
 
 
Operational earnings, rolling 12 months
(A-C)
1,424
892
 
 
 
 
Average invested capital
(D)
24,617
24,190
 
 
 
 
Average common equity
(E)
9,958
10,110
 
 
 
 
ROIC - as-reported
(B/D)
2.4%
5.0%
ROIC - operational
[(B-C)/D]
7.5%
5.4%
ROE - as-reported
(A/E)
1.7%
7.9%
ROE - operational
[(A-C)/E]
14.3%
8.8%
 
 
 
 
Totals may not foot due to rounding






Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics
($ in millions)
 
Second Quarter
 
 
2016
2015
Total debt
(A)
14,837
13,858
Less securitization debt
(B)
716
734
Total debt, excluding securitization debt
(C)
14,121
13,124
Less cash and cash equivalents
(D)
996
910
  Net debt, excluding securitization debt
(E)
13,125
12,214
 
 
 
 
Total capitalization
(F)
24,913
24,321
Less securitization debt
(B)
716
734
Total capitalization, excluding securitization debt
(G)
24,197
23,587
Less cash and cash equivalents
(D)
996
910
Net capital, excluding securitization debt
(H)
23,201
22,677
 
 
 
 
Debt to capital ratio
(A/F)
59.6%
57.0%
Debt to capital ratio, excluding securitization debt
(C/G)
58.4%
55.6%
Net debt to net capital ratio, excluding securitization debt
(E/H)
56.6%
53.9%
 
 
 
 
Revolver capacity
(I)
4,173
4,158
 
 
 
 
Gross liquidity
(D+I)
5,169
5,068
 
 
 
 
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)
240
271
Commercial paper
(L)
853
895
Total parent debt
(J)+(K)+(L)
2,693
2,666
 
 
 
 
Parent debt to total debt ratio, excluding securitization debt %
[((J)+(K)+
(L))/(C)]
19.1%
20.3%
 
 
 
 






Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued)
($ in millions)
 
Second Quarter
 
 
2016
2015
Total debt
(A)
14,837
13,858
Less securitization debt
(B)
716
734
Total debt, excluding securitization debt
(C)
14,121
13,124
As-reported consolidated net income, rolling 12 months
 
194
817
Add back: interest expense, rolling 12 months
 
658
636
Add back: income tax expense, rolling 12 months
 
(1,002)
494
Add back: depreciation and amortization, rolling 12 months
 
1,335
1,331
Add back: regulatory charges (credits), rolling 12 months
 
185
10
Subtract: securitization proceeds, rolling 12 months
 
137
130
Subtract: interest and investment income, rolling 12 months
 
158
196
Subtract: AFUDC-equity funds, rolling 12 months
 
61
59
Add back: decommissioning expense, rolling 12 months
 
287
278
  Adjusted EBITDA, rolling 12 months
(D)
1,301
3,181
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax)
 
—
4
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax)
 
1,688
143
Add back: special item for DOE litigation awards for VY and FitzPatrick
 
(34)
—
Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax)
 
396
—
Add back: special item for 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)
3,234
3,328
Debt to operational adjusted EBITDA, excluding securitization debt
(C)/(E)
4.4
3.9
 
 
 
 
Net cash flow provided by operating activities, rolling 12 months
(F)
3,205
3,699
AFUDC-borrowed funds used during construction, rolling 12 months
(G)
(31)
(30)
Working capital items in net cash flow provided by operating activities, rolling 12 months:
 
 
 
  Receivables
 
81
45
  Fuel inventory
 
1
(32)
  Accounts payable
 
15
(164)
  Prepaid taxes and taxes accrued
 
108
(43)
  Interest accrued
 
(2)
5
  Other working capital accounts
 
(111)
104
  Securitization regulatory charge
 
107
99
       Total
(H)
199
14
FFO, rolling 12 months
(F)+(G)-(H)
2,975
3,655
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax)
 
—
15
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax)
 
6
57
Operational FFO, rolling 12 months
(I)
2,981
3,727
Operational FFO to debt ratio, excluding securitization debt
(I)/(C)
21.1%
28.4%
 
 
 
 
Totals may not foot due to rounding





Financial Statements
Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
101,136

 
$
908

 
$
1,238

 
$
103,282

    Temporary cash investments
 
391,327

 
19,854

 
481,636

 
892,817

     Total cash and cash equivalents
 
492,463

 
20,762

 
482,874

 
996,099

Notes receivable
 
(251
)
 
(527,870
)
 
528,121

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
417,427

 
—

 
125,171

 
542,598

   Allowance for doubtful accounts
 
(42,938
)
 
—

 
—

 
(42,938
)
   Associated companies
 
17,663

 
(27,559
)
 
9,896

 
—

   Other
 
225,717

 
2,309

 
9,454

 
237,480

   Accrued unbilled revenues
 
432,830

 
—

 
—

 
432,830

     Total accounts receivable
 
1,050,699

 
(25,250
)
 
144,521

 
1,169,970

Deferred fuel costs
 
31,895

 
—

 
—

 
31,895

Fuel inventory - at average cost
 
199,910

 
—

 
8,314

 
208,224

Materials and supplies - at average cost
 
657,674

 
—

 
246,299

 
903,973

Deferred nuclear refueling outage costs
 
114,806

 
—

 
134,126

 
248,932

Prepayments and other
 
196,931

 
(8,974
)
 
104,878

 
292,835

TOTAL
 
2,744,127

 
(541,332
)
 
1,649,133

 
3,851,928

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

 
(1,390,674
)
 
4,733

 
4,845

Decommissioning trust funds
 
2,638,692

 
—

 
2,916,959

 
5,555,651

Non-utility property - at cost (less accumulated depreciation)
219,435

 
(10
)
 
6,571

 
225,996

Other
 
467,795

 
—

 
1,996

 
469,791

TOTAL
 
4,716,708

 
(1,390,684
)
 
2,930,259

 
6,256,283

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
Electric
 
43,535,925

 
3,584

 
3,407,603

 
46,947,112

Property under capital lease
 
610,225

 
—

 
—

 
610,225

Natural gas
 
400,423

 
—

 
—

 
400,423

Construction work in progress
 
1,121,288

 
512

 
136,570

 
1,258,370

Nuclear fuel
 
808,573

 
—

 
437,857

 
1,246,430

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
46,476,434

 
4,096

 
3,982,030

 
50,462,560

Less - accumulated depreciation and amortization
 
20,182,992

 
198

 
1,209,691

 
21,392,881

PROPERTY, PLANT AND EQUIPMENT - NET
 
26,293,442

 
3,898

 
2,772,339

 
29,069,679

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Regulatory asset for income taxes - net
 
769,535

 
—

 
—

 
769,535

    Other regulatory assets
 
4,603,489

 
—

 
—

 
4,603,489

    Deferred fuel costs
 
239,001

 
—

 
—

 
239,001

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
12,768

 
41,942

 
67,679

 
122,389

Other
 
87,931

 
8,676

 
490,959

 
587,566

TOTAL
 
6,086,823

 
50,618

 
561,711

 
6,699,152

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
39,841,100

 
$
(1,877,500
)
 
$
7,913,442

 
$
45,877,042

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
166,006

 
$
500,000

 
$
5,726

 
$
671,732

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
(23,497
)
 
23,497

 
—

  Other
 
171,685

 
853,203

 
—

 
1,024,888

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
14,106

 
(30,362
)
 
16,256

 
—

  Other
 
748,727

 
326

 
218,027

 
967,080

Customer deposits
 
424,977

 
—

 
—

 
424,977

Taxes accrued
 
78,430

 
(232,370
)
 
371,073

 
217,133

Interest accrued
 
154,891

 
30,071

 
59

 
185,021

Deferred fuel costs
 
271,736

 
—

 
—

 
271,736

Obligations under capital leases
 
2,815

 
—

 
—

 
2,815

Pension and other postretirement liabilities
 
53,174

 
—

 
9,615

 
62,789

Other
 
162,700

 
2,197

 
28,775

 
193,672

TOTAL
 
2,249,247

 
1,099,568

 
673,028

 
4,021,843

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
7,573,664

 
436,402

 
172,982

 
8,183,048

Accumulated deferred investment tax credits
 
228,917

 
—

 
—

 
228,917

Obligations under capital leases
 
25,567

 
—

 
—

 
25,567

Other regulatory liabilities
 
1,485,402

 
—

 
—

 
1,485,402

Decommissioning and retirement cost liabilities
 
2,799,607

 
—

 
2,069,181

 
4,868,788

Accumulated provisions
 
460,234

 
—

 
1,980

 
462,214

Pension and other postretirement liabilities
 
2,282,199

 
—

 
736,027

 
3,018,226

Long-term debt
 
11,691,219

 
1,332,560

 
88,293

 
13,112,072

Other
 
685,005

 
(591,994
)
 
301,982

 
394,993

TOTAL
 
27,231,814

 
1,176,968

 
3,370,445

 
31,779,227

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
293,936

 
—

 
24,249

 
318,185

 
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
      issued 254,752,788 shares in 2016
 
2,051,268

 
(2,249,823
)
 
201,103

 
2,548

  Paid-in capital
 
2,796,506

 
1,088,038

 
1,508,002

 
5,392,546

  Retained earnings
 
5,466,767

 
2,403,251

 
2,017,332

 
9,887,350

  Accumulated other comprehensive income (loss)
 
(128,438
)
 
—

 
119,283

 
(9,155
)
  Less - treasury stock, at cost (75,856,619 shares in 2016)
 
120,000

 
5,395,502

 
—

 
5,515,502

TOTAL
 
10,066,103

 
(4,154,036
)
 
3,845,720

 
9,757,787

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
39,841,100

 
$
(1,877,500
)
 
$
7,913,442

 
$
45,877,042

 
 
 
 
 
 
 
 
 
*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
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

 
 
 
 
 
 
 
 
 
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
 
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 Income Statement
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,093,357

 
$
(26
)
 
$
—

 
$
2,093,331

     Natural gas
 
25,121

 
—

 
—

 
25,121

     Competitive businesses
 
—

 
—

 
344,110

 
344,110

                         Total
 
2,118,478

 
(26
)
 
344,110

 
2,462,562

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
344,663

 
(26
)
 
36,829

 
381,465

          Purchased power
 
228,308

 
26

 
14,338

 
242,672

          Nuclear refueling outage expenses
 
32,861

 
—

 
14,184

 
47,045

          Other operation and maintenance
 
581,959

 
6,663

 
170,636

 
759,258

     Asset write-offs, impairments and related charges
 
—

 
—

 
6,969

 
6,969

     Decommissioning
 
37,802

 
—

 
38,823

 
76,625

     Taxes other than income taxes
 
123,412

 
295

 
25,542

 
149,249

     Depreciation and amortization
 
289,121

 
716

 
45,831

 
335,668

     Other regulatory charges
 
21,353

 
—

 
—

 
21,353

                         Total
 
1,659,479

 
7,674

 
353,152

 
2,020,304

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
458,999

 
(7,700
)
 
(9,042
)
 
442,258

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
13,860

 
—

 
—

 
13,860

     Interest and investment income
 
51,607

 
(38,753
)
 
33,521

 
46,375

     Miscellaneous - net
 
(3,964
)
 
(2,187
)
 
(2,225
)
 
(8,377
)
                          Total
 
61,503

 
(40,940
)
 
31,296

 
51,858

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
151,102

 
20,094

 
6,435

 
177,631

     Allowance for borrowed funds used during construction
 
(7,132
)
 
—

 
—

 
(7,132
)
                         Total
 
143,970

 
20,094

 
6,435

 
170,499

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
376,532

 
(68,734
)
 
15,819

 
323,617

 
 
 
 
 
 
 
 
 
Income taxes
 
(3,785
)
 
(10,133
)
 
(235,055
)
 
(248,973
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
380,317

 
(58,601
)
 
250,874

 
572,590

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
4,729

 
—

 
547

 
5,276

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
375,588

 
$
(58,601
)
 
$
250,327

 
$
567,314

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$2.10

 
($0.33)

 
$1.40

 
$3.17

   DILUTED
 
$2.09

 
($0.32)

 
$1.39

 
$3.16

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
178,808,149

   DILUTED
 
 
 
 
 
 
 
179,503,582

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,246,168

 
$
(20
)
 
$
—

 
$
2,246,148

     Natural gas
 
27,777

 
—

 
—

 
27,777

     Competitive businesses
 
—

 
—

 
439,306

 
439,306

                         Total
 
2,273,945

 
(20
)
 
439,306

 
2,713,231

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
474,333

 
(20
)
 
75,389

 
549,702

          Purchased power
 
309,369

 
19

 
13,541

 
322,929

          Nuclear refueling outage expenses
 
30,673

 
—

 
36,456

 
67,129

          Other operation and maintenance
 
611,865

 
3,725

 
212,282

 
827,872

     Decommissioning
 
35,386

 
—

 
33,444

 
68,830

     Taxes other than income taxes
 
121,266

 
195

 
34,917

 
156,378

     Depreciation and amortization
 
275,917

 
602

 
63,835

 
340,354

     Other regulatory charges
 
2,654

 
—

 
—

 
2,654

                         Total
 
1,861,463

 
4,521

 
469,864

 
2,335,848

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
412,482

 
(4,541
)
 
(30,558
)
 
377,383

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
11,974

 
—

 
—

 
11,974

     Interest and investment income
 
40,723

 
(37,292
)
 
36,274

 
39,705

     Miscellaneous - net
 
(6,328
)
 
(2,659
)
 
(6,756
)
 
(15,743
)
                          Total
 
46,369

 
(39,951
)
 
29,518

 
35,936

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
143,062

 
16,993

 
5,805

 
165,860

     Allowance for borrowed funds used during construction
 
(6,044
)
 
—

 
—

 
(6,044
)
                         Total
 
137,018

 
16,993

 
5,805

 
159,816

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
321,833

 
(61,485
)
 
(6,845
)
 
253,503

 
 
 
 
 
 
 
 
 
Income taxes
 
117,798

 
(14,717
)
 
(3,300
)
 
99,781

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
204,035

 
(46,768
)
 
(3,545
)
 
153,722

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
4,332

 
—

 
547

 
4,879

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
199,703

 
$
(46,768
)
 
$
(4,092
)
 
$
148,843

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$1.11

 
($0.26)

 
($0.02)

 
$0.83

   DILUTED
 
$1.11

 
($0.26)

 
($0.02)

 
$0.83

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,521,276

   DILUTED
 
 
 
 
 
 
 
180,119,837

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
4,135,538

 
$
(46
)
 
$
—

 
$
4,135,492

     Natural gas
 
70,734

 
—

 
—

 
70,734

     Competitive businesses
 
—

 
—

 
866,189

 
866,189

                         Total
 
4,206,272

 
(46
)
 
866,189

 
5,072,415

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
805,632

 
(46
)
 
80,846

 
886,432

          Purchased power
 
478,918

 
46

 
26,031

 
504,996

          Nuclear refueling outage expenses
 
65,294

 
—

 
32,982

 
98,276

          Other operation and maintenance
 
1,096,108

 
10,764

 
384,303

 
1,491,174

     Asset write-offs, impairments and related charges
 
—

 
—

 
14,329

 
14,329

     Decommissioning
 
75,045

 
—

 
70,208

 
145,253

     Taxes other than income taxes
 
248,433

 
811

 
49,783

 
299,027

     Depreciation and amortization
 
567,029

 
973

 
101,937

 
669,939

     Other regulatory charges
 
22,512

 
—

 
—

 
22,512

                         Total
 
3,358,971

 
12,548

 
760,419

 
4,131,938

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
847,301

 
(12,594
)
 
105,770

 
940,477

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
32,792

 
—

 
—

 
32,792

     Interest and investment income
 
96,137

 
(77,339
)
 
60,330

 
79,128

     Miscellaneous - net
 
(9,944
)
 
(3,145
)
 
(5,873
)
 
(18,963
)
                          Total
 
118,985

 
(80,484
)
 
54,457

 
92,957

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
299,080

 
39,825

 
12,538

 
351,442

     Allowance for borrowed funds used during construction
 
(16,813
)
 
—

 
—

 
(16,813
)
                         Total
 
282,267

 
39,825

 
12,538

 
334,629

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
684,019

 
(132,903
)
 
147,689

 
698,805

 
 
 
 
 
 
 
 
 
Income taxes
 
104,051

 
(30,337
)
 
(182,741
)
 
(109,027
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
579,968

 
(102,566
)
 
330,430

 
807,832

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
9,458

 
—

 
1,094

 
10,552

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
570,510

 
$
(102,566
)
 
$
329,336

 
$
797,280

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$3.19

 
($0.57)

 
$1.84

 
$4.46

   DILUTED
 
$3.18

 
($0.57)

 
$1.84

 
$4.45

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
178,693,342

   DILUTED
 
 
 
 
 
 
 
179,233,209

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
4,464,167

 
$
(30
)
 
$
—

 
$
4,464,137

     Natural gas
 
87,288

 
—

 
—

 
87,288

     Competitive businesses
 
—

 
—

 
1,081,896

 
1,081,896

                         Total
 
4,551,455

 
(30
)
 
1,081,896

 
5,633,321

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
1,003,641

 
(30
)
 
176,545

 
1,180,156

          Purchased power
 
636,632

 
30

 
28,289

 
664,951

          Nuclear refueling outage expenses
 
59,547

 
—

 
72,451

 
131,998

          Other operation and maintenance
 
1,167,292

 
6,079

 
424,612

 
1,597,983

     Decommissioning
 
70,247

 
—

 
68,482

 
138,729

     Taxes other than income taxes
 
252,748

 
1,021

 
60,132

 
313,901

     Depreciation and amortization
 
545,206

 
1,035

 
126,099

 
672,340

     Other regulatory charges
 
13,111

 
—

 
—

 
13,111

                         Total
 
3,748,424

 
8,135

 
956,610

 
4,713,169

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
803,031

 
(8,165
)
 
125,286

 
920,152

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
23,712

 
—

 
—

 
23,712

     Interest and investment income
 
95,740

 
(74,338
)
 
86,437

 
107,839

     Miscellaneous - net
 
(7,303
)
 
(4,236
)
 
(13,225
)
 
(24,764
)
                          Total
 
112,149

 
(78,574
)
 
73,212

 
106,787

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
286,507

 
33,970

 
11,720

 
332,197

     Allowance for borrowed funds used during construction
 
(12,161
)
 
—

 
—

 
(12,161
)
                         Total
 
274,346

 
33,970

 
11,720

 
320,036

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
640,834

 
(120,709
)
 
186,778

 
706,903

 
 
 
 
 
 
 
 
 
Income taxes
 
209,048

 
(25,687
)
 
66,891

 
250,252

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
431,786

 
(95,022
)
 
119,887

 
456,651

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
8,665

 
—

 
1,094

 
9,759

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
423,121

 
$
(95,022
)
 
$
118,793

 
$
446,892

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$2.36

 
($0.53)

 
$0.66

 
$2.49

   DILUTED
 
$2.35

 
($0.53)

 
$0.66

 
$2.48

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,589,748

   DILUTED
 
 
 
 
 
 
 
180,298,233

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended June 30, 2016
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
8,980,111

 
$
(78
)
 
$
—

 
$
8,980,033

     Natural gas
 
126,192

 
—

 
—

 
126,192

     Competitive businesses
 
—

 
—

 
1,846,120

 
1,846,120

                         Total
 
9,106,303

 
(78
)
 
1,846,120

 
10,952,345

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
1,939,113

 
(78
)
 
219,412

 
2,158,447

          Purchased power
 
1,152,462

 
82

 
78,306

 
1,230,850

          Nuclear refueling outage expenses
 
123,292

 
—

 
94,302

 
217,594

          Other operation and maintenance
 
2,371,890

 
17,219

 
859,063

 
3,248,172

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

 
—

 
2,050,563

 
2,119,235

     Decommissioning
 
147,542

 
—

 
139,254

 
286,796

     Taxes other than income taxes
 
503,424

 
939

 
100,185

 
604,548

     Depreciation and amortization
 
1,117,911

 
2,093

 
214,871

 
1,334,875

     Other regulatory charges
 
184,705

 
—

 
—

 
184,705

                         Total
 
7,609,011

 
20,255

 
3,755,956

 
11,385,222

 
 
 
 
 
 
 
 
 
     Gain on sale of asset
 
—

 
—

 
154,037

 
154,037

 
 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS)
 
1,497,292

 
(20,333
)
 
(1,755,799
)
 
(278,840
)
 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
60,987

 
—

 
—

 
60,987

     Interest and investment income
 
191,943

 
(156,138
)
 
122,546

 
158,351

     Miscellaneous - net
 
(24,707
)
 
(11,262
)
 
(54,227
)
 
(90,196
)
                          Total
 
228,223

 
(167,400
)
 
68,319

 
129,142

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
582,331

 
79,405

 
27,605

 
689,341

     Allowance for borrowed funds used during construction
 
(31,279
)
 
—

 
—

 
(31,279
)
                         Total
 
551,052

 
79,405

 
27,605

 
658,062

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
1,174,463

 
(267,138
)
 
(1,715,085
)
 
(807,760
)
 
 
 
 
 
 
 
 
 
Income taxes
 
(88,235
)
 
(54,000
)
 
(859,972
)
 
(1,002,207
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME (LOSS)
 
1,262,698

 
(213,138
)
 
(855,113
)
 
194,447

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
18,434

 
—

 
2,188

 
20,622

 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
1,244,264

 
$
(213,138
)
 
$
(857,301
)
 
$
173,825

 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$6.96

 
($1.19)

 
($4.80)

 
$0.97

   DILUTED
 
$6.94

 
($1.19)

 
($4.78)

 
$0.97

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
178,731,731

   DILUTED
 
 
 
 
 
 
 
179,330,664

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended June 30, 2015
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,455,784

 
$
(50
)
 
$
—

 
$
9,455,734

     Natural gas
 
155,393

 
—

 
—

 
155,393

     Competitive businesses
 
—

 
334

 
2,311,288

 
2,311,622

                         Total
 
9,611,177

 
284

 
2,311,288

 
11,922,749

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
2,301,082

 
(91
)
 
363,813

 
2,664,804

          Purchased power
 
1,422,301

 
217

 
65,322

 
1,487,840

          Nuclear refueling outage expenses
 
120,789

 
—

 
152,847

 
273,636

          Other operation and maintenance
 
2,389,896

 
11,431

 
956,542

 
3,357,869

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

 
—

 
103,590

 
175,815

     Decommissioning
 
137,013

 
—

 
141,289

 
278,302

     Taxes other than income taxes
 
485,159

 
1,366

 
124,777

 
611,302

     Depreciation and amortization
 
1,066,915

 
2,660

 
260,937

 
1,330,512

     Other regulatory charges
 
9,984

 
—

 
—

 
9,984

                         Total
 
8,005,364

 
15,583

 
2,169,117

 
10,190,064

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
1,605,813

 
(15,299
)
 
142,171

 
1,732,685

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
58,597

 
—

 
—

 
58,597

     Interest and investment income
 
192,619

 
(148,903
)
 
152,315

 
196,031

     Miscellaneous - net
 
(8,613
)
 
(7,238
)
 
(24,547
)
 
(40,398
)
                          Total
 
242,603

 
(156,141
)
 
127,768

 
214,230

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
574,662

 
71,681

 
20,059

 
666,402

     Allowance for borrowed funds used during construction
 
(30,202
)
 
—

 
—

 
(30,202
)
                         Total
 
544,460

 
71,681

 
20,059

 
636,200

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
1,303,956

 
(243,121
)
 
249,880

 
1,310,715

 
 
 
 
 
 
 
 
 
Income taxes
 
443,249

 
(54,121
)
 
105,014

 
494,142

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
860,707

 
(189,000
)
 
144,866

 
816,573

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
17,329

 
—

 
2,188

 
19,517

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
843,378

 
$
(189,000
)
 
$
142,678

 
$
797,056

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$4.69

 
($1.05)

 
$0.79

 
$4.43

   DILUTED
 
$4.67

 
($1.05)

 
$0.79

 
$4.41

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,760,169

   DILUTED
 
 
 
 
 
 
 
180,577,715

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Three Months Ended June 30, 2016 vs. 2015
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2016
 
2015
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
572,590

 
$
153,722

 
$
418,868

Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
512,505

 
543,880

 
(31,375
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(245,441
)
 
84,274

 
(329,715
)
  Asset write-offs, impairments and related charges
 
6,969

 
—

 
6,969

  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(134,205
)
 
(122,456
)
 
(11,749
)
     Fuel inventory
 
18,675

 
18,805

 
(130
)
     Accounts payable
 
112,776

 
49,105

 
63,671

     Prepaid taxes and taxes accrued
 
23,052

 
48,914

 
(25,862
)
     Interest accrued
 
17,992

 
23,567

 
(5,575
)
     Deferred fuel costs
 
(93,809
)
 
(8,822
)
 
(84,987
)
     Other working capital accounts
 
(26,638
)
 
(33,527
)
 
6,889

  Changes in provisions for estimated losses
 
5,501

 
(8,321
)
 
13,822

  Changes in other regulatory assets
 
53,653

 
31,703

 
21,950

  Changes in other regulatory liabilities
 
51,770

 
(30,916
)
 
82,686

  Changes in pensions and other postretirement liabilities
 
(79,810
)
 
(64,387
)
 
(15,423
)
  Other
 
(76,321
)
 
41,862

 
(118,183
)
Net cash flow provided by operating activities
 
719,259

 
727,403

 
(8,144
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(658,487
)
 
(562,968
)
 
(95,519
)
Allowance for equity funds used during construction
 
14,045

 
12,088

 
1,957

Nuclear fuel purchases
 
(38,288
)
 
(69,312
)
 
31,024

Payment for purchase of plant
 
(125
)
 
—

 
(125
)
Changes in securitization account
 
14,638

 
6,855

 
7,783

Payments to storm reserve escrow account
 
(438
)
 
(1,824
)
 
1,386

Decrease (increase) in other investments
 
196,566

 
(54,300
)
 
250,866

Proceeds from nuclear decommissioning trust fund sales
 
503,258

 
455,701

 
47,557

Investment in nuclear decommissioning trust funds
 
(508,787
)
 
(456,452
)
 
(52,335
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
89,407

 
—

 
89,407

Net cash flow used in investing activities
 
(388,211
)
 
(670,212
)
 
282,001

FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
986,960

 
377,569

 
609,391

    Treasury stock
 
11,068

 
741

 
10,327

  Retirement of long-term debt
 
(1,516,526
)
 
(699,400
)
 
(817,126
)
  Changes in credit borrowings and commercial paper - net
 
258,810

 
131,566

 
127,244

  Other
 
(9,632
)
 
16,038

 
(25,670
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(152,004
)
 
(149,002
)
 
(3,002
)
     Preferred stock
 
(5,276
)
 
(4,879
)
 
(397
)
Net cash flow used in financing activities
 
(426,600
)
 
(327,367
)
 
(99,233
)
Net decrease in cash and cash equivalents
 
(95,552
)
 
(270,176
)
 
174,624

Cash and cash equivalents at beginning of period
 
1,091,651

 
1,180,546

 
(88,895
)
Cash and cash equivalents at end of period
 
$
996,099

 
$
910,370

 
$
85,729

 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$159,439

 
$137,207

 
$22,232

     Income taxes
 
$58,225

 
$24,848

 
$33,377





Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Six Months Ended June 30, 2016 vs. 2015
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2016
 
2015
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
807,832

 
$
456,651

 
$
351,181

Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
1,012,753

 
1,069,888

 
(57,135
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(170,026
)
 
180,006

 
(350,032
)
  Asset write-offs, impairments and related charges
 
14,329

 
—

 
14,329

  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(57,673
)
 
(100,168
)
 
42,495

     Fuel inventory
 
9,586

 
(3,748
)
 
13,334

     Accounts payable
 
45,412

 
(104,595
)
 
150,007

     Prepaid taxes and taxes accrued
 
7,056

 
(19,027
)
 
26,083

     Interest accrued
 
(9,543
)
 
(18,984
)
 
9,441

     Deferred fuel costs
 
3,757

 
72,449

 
(68,692
)
     Other working capital accounts
 
(121,929
)
 
(124,146
)
 
2,217

  Changes in provisions for estimated losses
 
1,533

 
(6,987
)
 
8,520

  Changes in other regulatory assets
 
109,700

 
124,785

 
(15,085
)
  Changes in other regulatory liabilities
 
70,505

 
(15,059
)
 
85,564

  Changes in pensions and other postretirement liabilities
 
(168,856
)
 
(116,896
)
 
(51,960
)
  Other
 
(302,356
)
 
(55,808
)
 
(246,548
)
Net cash flow provided by operating activities
 
1,252,080

 
1,338,361

 
(86,281
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(1,294,498
)
 
(1,095,926
)
 
(198,572
)
Allowance for equity funds used during construction
 
33,152

 
25,165

 
7,987

Nuclear fuel purchases
 
(124,107
)
 
(165,704
)
 
41,597

Payment for purchase of plant
 
(947,903
)
 
—

 
(947,903
)
Insurance proceeds received for property damages
 
—

 
12,745

 
(12,745
)
Changes in securitization account
 
13,239

 
6,604

 
6,635

NYPA value sharing payment
 
—

 
(70,790
)
 
70,790

Payments to storm reserve escrow account
 
(805
)
 
(3,689
)
 
2,884

Decrease (increase) in other investments
 
57

 
(54,022
)
 
54,079

Proceeds from nuclear decommissioning trust fund sales
 
1,232,672

 
948,542

 
284,130

Investment in nuclear decommissioning trust funds
 
(1,267,452
)
 
(973,016
)
 
(294,436
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
89,407

 
—

 
89,407

Net cash flow used in investing activities
 
(2,266,238
)
 
(1,370,091
)
 
(896,147
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
3,856,768

 
865,634

 
2,991,134

    Treasury stock
 
16,855

 
23,897

 
(7,042
)
  Retirement of long-term debt
 
(3,420,196
)
 
(1,384,658
)
 
(2,035,538
)
  Repurchase of common stock
 
—

 
(25,078
)
 
25,078

  Changes in credit borrowings and commercial paper - net
 
530,540

 
341,578

 
188,962

  Other
 
(10,276
)
 
6,719

 
(16,995
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(303,843
)
 
(298,259
)
 
(5,584
)
     Preferred stock
 
(10,552
)
 
(9,759
)
 
(793
)
Net cash flow provided by (used in) financing activities
 
659,296

 
(479,926
)
 
1,139,222

Net decrease in cash and cash equivalents
 
(354,862
)
 
(511,656
)
 
156,794

Cash and cash equivalents at beginning of period
 
1,350,961

 
1,422,026

 
(71,065
)
Cash and cash equivalents at end of period
 
$
996,099

 
$
910,370

 
$
85,729

 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$410,744

 
$340,993

 
$69,751

     Income taxes
 
$84,607

 
$90,767

 
($6,160)





Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Twelve Months Ended June 30, 2016 vs. 2015
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2016
 
2015
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
194,447

 
$
816,573

 
$
(622,126
)
Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
2,060,101

 
2,155,810

 
(95,709
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(1,170,382
)
 
419,370

 
(1,589,752
)
  Asset write-offs, impairments and related charges
 
2,119,235

 
119,590

 
1,999,645

  Gain on sale of asset
 
(154,037
)
 
—

 
(154,037
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
80,647

 
45,445

 
35,202

     Fuel inventory
 
958

 
(32,349
)
 
33,307

     Accounts payable
 
14,796

 
(164,288
)
 
179,084

     Prepaid taxes and taxes accrued
 
108,052

 
(42,695
)
 
150,747

     Interest accrued
 
(2,004
)
 
4,521

 
(6,525
)
     Deferred fuel costs
 
230,033

 
239,484

 
(9,451
)
     Other working capital accounts
 
(111,484
)
 
103,849

 
(215,333
)
  Changes in provisions for estimated losses
 
51,086

 
290,570

 
(239,484
)
  Changes in other regulatory assets
 
247,232

 
(962,822
)
 
1,210,054

  Changes in other regulatory liabilities
 
146,805

 
(17,265
)
 
164,070

  Changes in pensions and other postretirement liabilities
 
(498,378
)
 
1,320,192

 
(1,818,570
)
  Other
 
(112,204
)
 
(596,626
)
 
484,422

Net cash flow provided by operating activities
 
3,204,903

 
3,699,359

 
(494,456
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(2,699,432
)
 
(2,255,499
)
 
(443,933
)
Allowance for equity funds used during construction
 
61,622

 
61,963

 
(341
)
Nuclear fuel purchases
 
(452,007
)
 
(466,956
)
 
14,949

Payment for purchase of plant
 
(947,903
)
 
—

 
(947,903
)
Proceeds from sale of assets and businesses
 
487,406

 
—

 
487,406

Insurance proceeds received for property damages
 
11,654

 
25,189

 
(13,535
)
Changes in securitization account
 
829

 
1,128

 
(299
)
NYPA value sharing payment
 
—

 
(70,790
)
 
70,790

Payments to storm reserve escrow account
 
(66,279
)
 
(276,122
)
 
209,843

Receipts from storm reserve escrow account
 
5,916

 
—

 
5,916

Decrease (increase) in other investments
 
54,650

 
133,733

 
(79,083
)
Proceeds from nuclear decommissioning trust fund sales
 
2,776,306

 
1,839,127

 
937,179

Investment in nuclear decommissioning trust funds
 
(2,845,394
)
 
(1,925,692
)
 
(919,702
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
107,703

 
—

 
107,703

Net cash flow used in investing activities
 
(3,504,929
)
 
(2,933,919
)
 
(571,010
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
6,493,323

 
2,733,542

 
3,759,781

    Preferred stock of subsidiary
 
107,426

 
—

 
107,426

    Treasury stock
 
17,324

 
137,405

 
(120,081
)
  Retirement of long-term debt
 
(5,497,056
)
 
(2,483,238
)
 
(3,013,818
)
  Repurchase of common stock
 
(74,729
)
 
(190,090
)
 
115,361

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

 
(94,285
)
  Changes in credit borrowings and commercial paper - net
 
84,915

 
(99,359
)
 
184,274

  Other
 
(26,131
)
 
13,267

 
(39,398
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(604,481
)
 
(597,148
)
 
(7,333
)
     Preferred stock
 
(20,551
)
 
(19,517
)
 
(1,034
)
Net cash flow provided by (used in) financing activities
 
385,755

 
(505,138
)
 
890,893

Net increase in cash and cash equivalents
 
85,729

 
260,302

 
(174,573
)
Cash and cash equivalents at beginning of period
 
910,370

 
650,068

 
260,302

Cash and cash equivalents at end of period
 
$
996,099

 
$
910,370

 
$
85,729

 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$733,381

 
$639,622

 
$93,759

     Income taxes
 
$97,429

 
$149,061

 
($51,632)