BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2018 are Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2018 and 2017 is as follows:



	Utility		Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2018
Operating revenues		$2,304,990		$418,924			$—			($33	)		$2,723,881
Income taxes		$52,224		($1,078	)		($7,483	)		$—			$43,663
Consolidated net income (loss)		$217,940		($17,779	)		($32,063	)		($31,898	)		$136,200
Total assets as of March 31, 2018		$43,690,561		$5,504,233			$834,463			($2,747,732	)		$47,281,525
2017
Operating revenues		$2,035,112		$553,367			$—			($21	)		$2,588,458
Income taxes		$98,492		($78,337	)		($12,392	)		$—			$7,763
Consolidated net income (loss)		$167,623		($27,197	)		($22,477	)		($31,898	)		$86,051
Total assets as of December 31, 2017		$42,978,669		$5,638,009			$1,011,612			($2,921,141	)		$46,707,149

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarter 2018 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2018		$83		$14		$97
Restructuring costs accrued	26		—		26
Balance as of March 31, 2018		$109		$14		$123

Total restructuring charges for the first quarter 2017 were comprised of the following:



	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1, 2017		$70		$21		$91
Restructuring costs accrued	24		—		24
Balance as of March 31, 2017		$94		$21		$115

In addition, Entergy incurred $73 million in the first quarter 2018 and $212 million in the first quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $165 million in 2018, of which $26 million has been incurred as of March 31, 2018, and approximately $205 million from 2019 through mid-2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.