EX-99.1 2 a04018991.htm EXHIBIT 99.1 Exhibit



entergylogoa58.gif
Exhibit 99.1

 
 
 
Entergy
639 Loyola Avenue
New Orleans, LA 70113


News
Release
Date:
August 1, 2018
 
 
 
 
 
 
For Release:
Immediately
 
 
 
 
 
 
Contact:
Emily Parenteau (Media)
(504) 576-4238
eparent@entergy.com
David Borde (Investor Relations)
(504) 576-5668
dborde@entergy.com

Entergy Reports Second Quarter Earnings

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported second quarter 2018 earnings per share of $1.34 on an as-reported basis and $1.79 on an operational basis (non-GAAP), which excludes the effects of special items. Results included 31 cents of income tax benefits from the settlement of its 2012-2013 IRS audit.

“Our results this quarter keep us on track to meet the strategic, operational and financial objectives that we reinforced at our Analyst Day in June,” said Entergy Chairman and Chief Executive Officer Leo Denault. “We continue to make significant progress toward transitioning to a pure play utility, as evidenced by our announcement to sell EWC’s Pilgrim and Palisades nuclear plants after their scheduled shutdowns.”
Table of Contents Page
News Release1
Appendices8
A: Consolidated Results and Special Items9
B: Earnings Variance Analysis12
C: Utility Financial and Operating Measures14
D: EWC Financial and Operating Measures16
E: Consolidated Financial Measures17
F: Definitions and Abbreviations and Acronyms18
G: GAAP to Non-GAAP Reconciliations22
Financial Statements26






Business highlights included the following:
•
Entergy entered into purchase and sale agreements for EWC’s Pilgrim and Palisades nuclear plants.
•
The LPSC approved Entergy Louisiana’s planned acquisition of Washington Parish Energy Center.
•
ANO Units 1 and 2 returned to Column 1 of the NRC’s reactor oversight process.
•
Entergy Louisiana and Entergy Arkansas each submitted annual formula rate plan filings and Entergy New Orleans and Entergy Texas each filed base rate cases.
•
In June, Entergy Corporation completed a $1.15 billion common stock offering with a forward component.
•
For the third consecutive year, Entergy Corporation was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the nation.


Consolidated Earnings (GAAP and Non-GAAP Measures)
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items)
 
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
(After-tax, $ in millions)
 
 
 
 
 
 
As-reported earnings
245
410
(165)
378
493
(114)
Less special items
(82)
(151)
70
(160)
(246)
87
Operational earnings (non-GAAP)
327
561
(234)
538
739
(201)
  Estimated weather in billed sales
21
(16)
36
37
(45)
82
 
 
 
 
 
 
 
(After-tax, per share in $)
 
 
 
 
 
 
As-reported earnings
1.34
2.27
(0.93)
2.08
2.74
(0.66)
Less special items
(0.45)
(0.84)
0.39
(0.88)
(1.37)
0.49
Operational earnings (non-GAAP)
1.79
3.11
(1.32)
2.96
4.11
(1.15)
  Estimated weather in billed sales
0.11
(0.09)
0.20
0.20
(0.25)
0.45
 
 
 
 
 
 
 
Calculations may differ due to rounding

Consolidated Results

For second quarter 2018, the company reported earnings of $245 million, or $1.34 per share, on an as-reported basis and earnings of $327 million, or $1.79 per share, on an operational basis. This compared to second quarter 2017 earnings of $410 million, or $2.27 per share, on an as-reported basis and earnings of $561 million, or $3.11 per share on an operational basis. Second quarter 2017 results included a $373 million, or $2.07 per share income tax item at EWC.

Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.

Utility, Parent & Other Results

For second quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $376 million, or $2.05 per share, compared to $243 million, or $1.35 per share, in second quarter 2017. Drivers for the quarterly increase included higher retail sales volume and lower income taxes, partially offset by higher operating expenses.





The current period results reflected a $278 million reduction in income taxes, with a corresponding reduction in net revenue, for the amortization of unprotected excess ADIT. Approximately $150 million was credited to customer bills and the balance was recorded as a regulatory charge for recovery of certain rate base and related assets. The net effect was neutral to earnings.

Excluding the $278 million unprotected excess ADIT, net revenue increased, driven by higher retail sales volume, including favorable weather in second quarter 2018 compared to unfavorable weather a year ago. Weather-adjusted billed sales declined period over period, but was more than offset by higher volume in the unbilled period. Rate actions to recover investments that benefit customers also contributed to the increase. Current period results also included regulatory provisions recorded to return benefits of the lower federal tax rate to customers at Entergy Louisiana and Entergy New Orleans.

On a weather-adjusted basis, billed sales decreased (1.3) percent, including (3.4) percent and (1.6) percent for residential and commercial sales, respectively. Industrial sales volume was essentially flat driven by continued growth from new and expansion customers as well as small industrials, largely offset by decreased cogeneration sales.

Excluding the $278 million unprotected excess ADIT, income taxes were lower driven by tax benefits from the settlement of the 2012-2013 IRS audit and the reduction of the federal income tax rate.

Utility non-fuel O&M increased quarter-over-quarter. The primary driver was higher spending on fossil operations. Energy efficiency spending and storm reserves were also higher, but were largely offset in net revenue.

For second quarter 2018, Parent & Other reported a loss of $(73 million), or (40) cents per share, compared to a loss of $(57 million), or (32) cents per share, in second quarter 2017.

On a combined basis, Utility, Parent & Other (non-GAAP) contributed $1.65 to second quarter 2018 consolidated EPS compared to $1.03 in second quarter 2017 consolidated EPS. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed $1.23 in second quarter 2018 to consolidated EPS, compared to $1.12 in second quarter 2017.

Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.

Entergy Wholesale Commodities Results

For second quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(57 million), or (31) cents per share, on an as-reported basis and earned $25 million, or 14 cents per share, on an operational basis. This compared to second quarter 2017 earnings of $223 million, or $1.24 per share, on an as-reported basis and earnings of $375 million, or $2.08 per share, on an operational basis. The prior period results included an income tax item which reduced income taxes and increased earnings by $373 million, or $2.07 per share.

As-reported results in both periods reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items totaled $(82 million), or (45)




cents per share, in second quarter 2018, compared to $(151 million), or (84) cents per share, a year ago. These costs were considered special items and excluded from operational earnings.

Quarterly earnings also reflected higher net revenue as a result of higher nuclear energy volume, partially offset by lower nuclear energy pricing.

Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC operational adjusted EBITDA.

Earnings Guidance

Entergy affirmed its 2018 consolidated operational earnings guidance range of $6.25 to $6.85 per share and its Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share.

The company has provided 2018 earnings guidance with regard to the non-GAAP measures of consolidated operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company’s merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.75) per share in 2018.

Earnings Teleconference

A teleconference will be held at 9:00 a.m. Central Time on Wednesday, August 1, 2018, to discuss Entergy’s quarterly 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 844-309-6569, conference ID 3594779, 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 8, 2018, by dialing 855-859-2056, conference ID 3594779. 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 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
 
Entergy Corporation’s common stock is listed on the New York and Chicago stock 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.

Entergy maintains a web page as part of its Investor Relations website, entitled “Regulatory and Other Information,” which provides investors with key updates of regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of “special items.” Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy’s decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as “operational” would exclude the effect of special items as defined above.

Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy’s businesses and assist investors in comparing Entergy’s financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.

In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock




outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy’s consolidated results of operations.

Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt and operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector.

The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. Non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

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 2018 earnings guidance; its current financial and operational outlook; and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of 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 (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and 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 Entergy’s 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; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.







Second Quarter 2018 Earnings Release Appendices and Financial Statements

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

Financial Statements
Financial statements are presented in this section.





A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments)
 
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
(After-tax, $ in millions)
 
 
 
 
 
 
Earnings (loss)
 
 
 
 
 
 
Utility
376
243
132
591
408
182
Parent & Other
(73)
(57)
(16)
(137)
(111)
(26)
EWC
(57)
223
(280)
(75)
196
(271)
Consolidated
245
410
(165)
378
493
(114)
 
 
 
 
 
 
 
Less special items
 
 
 
 
 
 
Utility
—
—
—
—
—
—
Parent & Other
—
—
—
—
—
—
EWC
(82)
(151)
70
(160)
(246)
87
Consolidated
(82)
(151)
70
(160)
(246)
87
 
 
 
 
 
 
 
Operational earnings (loss) (non-GAAP)
 
 
 
 
 
 
Utility
376
243
132
591
408
182
Parent & Other
(73)
(57)
(16)
(137)
(111)
(26)
EWC
25
375
(350)
84
442
(358)
Consolidated
327
561
(234)
538
739
(201)
Estimated weather in billed sales
21
(16)
36
37
(45)
82
 
 
 
 
 
 
 
Diluted average number of common shares outstanding (in millions)
183.0
180.2
 
182.2
180.0
 
 
 
 
 
 
 
 
(After-tax, per share in $) (a)
 
 
 
 
 
 
Earnings (loss)
 
 
 
 
 
 
Utility
2.05
1.35
0.7
3.24
2.27
0.97
Parent & Other
(0.4)
(0.32)
(0.08)
(0.75)
(0.62)
(0.13)
EWC
(0.31)
1.24
(1.55)
(0.41)
1.09
(1.5)
Consolidated
1.34
2.27
(0.93)
2.08
2.74
(0.66)
 
 
 
 
 
 
 
Less special items
 
 
 
 
 
 
Utility
—
—
—
—
—
—
Parent & Other
—
—
—
—
—
—
EWC
(0.45)
(0.84)
0.39
(0.88)
(1.37)
0.49
Consolidated
(0.45)
(0.84)
0.39
(0.88)
(1.37)
0.49
 
 
 
 
 
 
 
Operational earnings (loss) (non-GAAP)
 
 
 
 
 
 
Utility
2.05
1.35
0.70
3.24
2.27
0.97
Parent & Other
(0.40)
(0.32)
(0.08)
(0.75)
(0.62)
(0.13)
EWC
0.14
2.08
(1.94)
0.47
2.46
(1.99)
Consolidated
1.79
3.11
(1.32)
2.96
4.11
(1.15)
Estimated weather in billed sales
0.11
(0.09)
0.20
0.20
(0.25)
0.45
 
 
 
 
 
 
 
Calculations may differ due to rounding
(a)
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.





Appendix A-2 provides a comparative summary OCF, by business.

Appendix A-2: Consolidated Operating Cash Flow
Second Quarter and Year-to-Date 2018 vs. 2017
($ in millions)
 
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
Utility
626
569
57
1,149
1,127
22
Parent & Other
(58)
(51)
(7)
(115)
(226)
111
EWC
(45)
(228)
183
46
(81)
127
Consolidated
523
290
232
1,080
820
260
 
 
 
 
 
 
 
Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to lower severance and retention payments at EWC and increased collections for fuel and purchased power cost recovery at the Utility. Another contributing factor was lower refueling outage costs at both EWC and the Utility. The increase was partially offset by the return of the unprotected excess ADIT to customers.

Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.

Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS)
Second Quarter and Year-to-Date 2018 vs. 2017
(Pre-tax except for income tax effects and total, $ in millions)
 
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
 
 
 
 
 
 
 
EWC
 
 
 
 
 
 
Items associated with decisions to close or sell EWC nuclear plants
(103)
(233)
129
(202)
(464)
262
Gain on the sale of FitzPatrick
—
—
—
—
16
(16)
Income tax effect on adjustments above (b)
22
82
(60)
42
157
(114)
Income tax benefit resulting from FitzPatrick transaction
—
—
—
—
45
(45)
Total EWC
(82)
(151)
70
(160)
(246)
87
 
 
 
 
 
 
 
Total special items
(82)
(151)
70
(160)
(246)
87
 
 
 
 
 
 
 
(After-tax, per share in $) (c)
 
 
 
 
 
 
EWC
 
 
 
 
 
 
Items associated with decisions to close or sell EWC nuclear plants
(0.45)
(0.84)
0.39
(0.88)
(1.68)
0.80
Gain on the sale of FitzPatrick
—
—
—
—
0.06
(0.06)
Income tax benefit resulting from FitzPatrick transaction
—
—
—
—
0.25
(0.25)
Total EWC
(0.45)
(0.84)
0.39
(0.88)
(1.37)
0.49
 
 
 
 
 
 
 
Total special items
(0.45)
(0.84)
0.39
(0.88)
(1.37)
0.49
 
 
 
 
 
 
 
Calculations may differ due to rounding
(b)
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply.
(c)
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period.





Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Second Quarter and Year-to-Date 2018 vs. 2017
(Pre-tax except for Income taxes and Total, $ in millions)
 
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
EWC
 
 
 
 
 
 
Net revenue
—
1
(1)
—
91
(91)
Non-fuel O&M
(32)
(37)
5
(57)
(157)
100
Taxes other than income taxes
(2)
(3)
1
(3)
(7)
4
Asset write-off and impairments
(69)
(194)
125
(142)
(405)
264
Gain on sale of assets
—
—
—
—
16
(16)
Miscellaneous net (other income)
—
—
—
—
15
(15)
Income taxes (d)
22
82
(60)
42
201
(159)
Total EWC
(82)
(151)
70
(160)
(246)
87
 
 
 
 
 
 
 
Total special items (after-tax)
(82)
(151)
70
(160)
(246)
87
 
 
 
 
 
 
 
Calculations may differ due to rounding
(d)
Income taxes included the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also included the income tax benefit which resulted from the FitzPatrick transaction.

B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.

Appendix B-1: As-Reported and Operational Earnings Variance Analysis
Second Quarter 2018 vs. 2017
(Pre-tax except for Income taxes, $ in millions)
 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Opera-tional
 
As-Reported
Opera-tional
 
As-
Reported
Opera-tional
 
As-
Reported
Opera-
tional
2017 earnings
243
243
 
(57)
(57)
 
223
375
 
410
561
Net revenue
(179)
(179)
(e)
—
—
 
22
22
(f)
(157)
(157)
Non-fuel O&M
(31)
(31)
(g)
(5)
(5)
 
(6)
(11)
 
(42)
(47)
Asset write-offs and impairments
—
—
 
—
—
 
125
—
(h)
125
—
Decommissioning expense
3
3
 
—
—
 
—
—
 
3
3
Taxes other than income taxes
(2)
(2)
 
—
—
 
(3)
(3)
 
(5)
(5)
Depreciation/amortization exp.
(14)
(14)
 
—
—
 
13
13
 
(1)
(1)
Other income (deductions)-other
(11)
(11)
 
(1)
(1)
 
(4)
(4)
 
(16)
(16)
Interest exp. and other charges
(5)
(5)
 
(7)
(7)
 
(2)
(2)
 
(14)
(14)
Income taxes
371
371
(i)
(3)
(3)
 
(425)
(365)
(j)
(57)
3
2018 earnings
376
376
 
(73)
(73)
 
(57)
25
 
245
327
 
 
 
 
 
 
 
 
 
 
 
 





Appendix B-2: As-Reported and Operational Earnings Variance Analysis
Year-to-Date 2018 vs. 2017
(Pre-tax except for Income taxes, $ in millions)
 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Opera-tional
 
As-Reported
Opera-tional
 
As-
Reported
Opera-tional
 
As-
Reported
Opera-
tional
2017 earnings
408
408
 
(111)
(111)
 
196
442
 
493
739
Net revenue
(124)
(124)
(e)
—
—
 
(90)
1
(f)
(214)
(123)
Non-fuel O&M
(66)
(66)
(g)
(5)
(5)
 
92
(8)
(k)
21
(79)
Asset write-offs and impairments
—
—
 
—
—
 
263
—
(h)
263
—
Decommissioning expense
6
6
 
—
—
 
17
17
(l)
23
23
Taxes other than income taxes
(17)
(17)
(m)
—
—
 
3
(1)
 
(14)
(18)
Depreciation/amortization exp.
(28)
(28)
(n)
—
—
 
28
28
(o)
—
—
Gain on sale of assets
—
—
 
—
—
 
(16)
—
(p)
(16)
—
Other income (deductions)-other
—
—
 
(2)
(2)
 
(61)
(46)
(q)
(63)
(48)
Interest exp. and other charges
(7)
(7)
 
(11)
(11)
 
(4)
(4)
 
(22)
(22)
Income taxes
417
417
(i)
(8)
(8)
 
(502)
(344)
(j)
(93)
65
2018 earnings
591
591
 
(137)
(137)
 
(75)
84
 
378
538
 
 
 
 
 
 
 
 
 
 
 
 
Calculations may differ due to rounding

See appendix in the webcast slide presentation for additional details on EWC line item variances.
Utility Net Revenue
Variance Analysis
2018 vs. 2017 (Pre-tax, $ in millions)
 
Second Quarter
Year-to-Date
Estimated weather
53
123
Volume/unbilled
48
36
Retail electric price
10
28
Unprotected excess ADIT
(278)
(278)
Reg. provisions for lower tax rate
(29)
(58)
Other
17
25
Total
(179)
(124)
(e)
The second quarter and year-to-date earnings decreases from lower Utility net revenue were driven by unprotected excess ADIT (offset in income taxes), as well as regulatory provisions at E-LA and E-NO to reflect regulatory agreements to return the benefits of the lower federal tax rate to customers. The decreases were partially offset by higher retail sales volume, including the effects of weather and volume in the unbilled period. In the second quarter, weather-adjusted billed sales volume decreased, however this was more than offset by higher volume in the unbilled period. 2018 results also included rate changes from E-AR’s 2018 FRP and E-TX’s DCRF.
(f)
The second quarter earnings increase from higher EWC net revenue reflected higher volume from merchant nuclear plants, partially offset by lower nuclear energy prices. The year-to-date as-reported variance reflected cost reimbursements from the buyer related to the FitzPatrick sale in first quarter 2017 (classified as a special item and offset in non-fuel O&M).
(g)
The second quarter earnings decrease from higher Utility non-fuel O&M was due primarily to higher spending on fossil operations. Energy efficiency spending and storm reserves were also higher (largely offset in net revenue). The year-to-date variance was due to higher spending on fossil and nuclear operations, as well as higher vegetation spending. Higher energy efficiency spending and storm reserves also contributed (largely offset in net revenue). This was partly offset by higher nuclear insurance refunds in 2018 compared to 2017.
(h)
The second quarter and year-to-date as-reported earnings increases from lower EWC asset write-offs and impairments were due to lower impairment charges for EWC nuclear plants, partly due to Palisades no longer being impaired as a result of the decision to operate that plant until May 2022, as well as lower refueling outage costs charged to impairment (classified as special items).




(i)
The second quarter and year-to-date earnings increases from lower Utility income taxes were primarily due to the amortization of the unprotected excess ADIT (offset in net revenue), tax benefits from the settlement of the 2012-2013 IRS audit totaling $44 million and the change in the federal income tax rate.
(j)
The second quarter and year-to-date earnings decreases from higher EWC income taxes were due primarily to a tax election in second quarter 2017 that reduced income taxes by $373 million. 2018 results also reflected $13 million in tax benefits from the settlement of the 2012-2013 IRS audit and the change in the federal income tax rate. The year-to-date as-reported earnings decrease also reflected a tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item).
(k)
The as-reported earnings increase from lower EWC non-fuel O&M was due primarily to costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue).
(l)
The earnings increase from lower EWC decommissioning expense was due primarily to the sale of FitzPatrick in first quarter 2017.
(m)
The earnings decrease from higher Utility taxes other than income taxes was due to higher franchise, ad valorem and payroll taxes.
(n)
The earnings decrease from higher depreciation expense was due primarily to higher plant in service.
(o)
The earnings increase from lower depreciation expense was due primarily to the decision to operate Palisades until May 2022, thereby extending the period in which the plant is depreciated.
(p)
The as-reported earnings decrease from lower EWC gain on sale of assets was due to the gain on the sale of FitzPatrick in first quarter 2017 (classified as a special item).
(q)
The earnings decrease from lower EWC other income (deductions)-other was due largely to losses on the decommissioning trust fund investments in first quarter 2018, including unrealized losses on equity investments that were previously recorded as other comprehensive income on the balance sheet, now recorded to the income statement. The as-reported earnings decrease also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item).












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

Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for details on special items)
 
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
($ in millions)
 
 
 
 
 
 
Utility as-reported earnings
376
243
132
591
408
182
Parent & Other as-reported (loss)
(73)
(57)
(16)
(137)
(111)
(26)
UP&O as-reported earnings
303
187
116
454
297
156
 
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
   Special items
—
—
—
—
—
—
   Estimated weather (r)
28
(26)
53
49
(73)
123
   Tax effect of estimated weather (s)
(7)
10
(17)
(13)
28
(41)
   Estimated weather impact (after-tax)
21
(16)
36
37
(45)
82
 
 
 
 
 
 
 
   Other income tax items (t)
57
1
57
64
(9)
72
 
 
 
 
 
 
 
UP&O adjusted earnings
224
202
23
353
351
2
 
 
 
 
 
 
 
(After-tax, per share in $) (u)
 
 
 
 
 
 
Utility as-reported earnings
2.05
1.35
0.70
3.24
2.27
0.97
Parent & Other as-reported (loss)
(0.40)
(0.32)
(0.08)
(0.75)
(0.62)
(0.13)
UP&O as-reported earnings
1.65
1.03
0.62
2.49
1.65
0.84
 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
   Special items
—
—
—
—
—
—
   Estimated weather
0.11
(0.09)
0.20
0.20
(0.25)
0.45
   Other income tax items
0.31
—
0.31
0.35
(0.05)
0.40
UP&O adjusted earnings
1.23
1.12
0.11
1.94
1.95
(0.01)
 
 
 
 
 
 
 
Calculations may differ due to rounding
(r)
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.
(s)
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply.
(t)
Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. The second quarter and year-to-date 2018 periods exclude $278 million reduction in net revenue and income taxes for unprotected excess ADIT (no earnings impact).
(u)
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.






Appendix C-2 and Appendix C-3 provides comparative summaries of Utility operating and financial measures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appendix C-2: Utility Operating and Financial Measures
Second Quarter and Year-to-Date 2018 vs. 2017
 
Second Quarter
Year-to-Date
 
2018
2017
%
Change
% Weather Adjusted (v)
2018
2017
%
Change
% Weather Adjusted (v)
GWh billed
 
 
 
 
 
 
 
 
Residential
7,749
7,340
5.6%
(3.4%)
17,036
14,977
13.7%
0.6%
Commercial
6,943
6,886
0.8%
(1.6%)
13,675
13,325
2.6%
0.3%
Governmental
612
609
0.5%
(0.5%)
1,220
1,202
1.5%
0.8%
Industrial
12,219
12,209
0.1%
0.1%
23,624
23,326
1.3%
1.3%
Total retail sales
27,523
27,044
1.8%
(1.3%)
55,555
52,830
5.2%
0.8%
Wholesale
2,566
1,845
39.1%
 
5,810
4,867
19.4%
 
Total sales
30,089
28,889
4.2%
 
61,365
57,697
6.4%
 
 
 
 
 
 
 
 
 
 
Number of electric retail customers
 
 
 
 
 
 
 
 
Residential
 
 
 
 
2,481,598
2,470,348
0.5%
 
Commercial
 
 
 
 
357,177
355,751
0.4%
 
Governmental
 
 
 
 
17,917
17,844
0.4%
 
Industrial
 
 
 
 
47,694
45,872
4.0%
 
Total retail customers
 
 
 
 
2,904,386
2,889,815
0.5%
 
 
 
 
 
 
 
 
 
 
Net revenue ($ in millions)
1,382
1,549
(10.8%)
 
2,842
2,954
(3.8%)
 
Non-fuel O&M (per MWh in $)
22.05
21.88
0.8%
 
21.05
21.25
(0.9%)
 
 
 
 
 
 
 
 
 
 



Appendix C-3: Utility Operating Measures
Twelve Months Ended June 30, 2018 vs. 2017
 
Twelve Months Ended June 30
 
2018
2017
%
Change
% Weather Adjusted (v)
GWh billed
 
 
 
 
Residential
35,893
34,871
2.9%
1.6%
Commercial
29,096
29,234
(0.5%)
1.0%
Governmental
2,529
2,540
(0.4%)
(0.2%)
Industrial
48,067
46,501
3.4%
3.4%
Total retail sales
115,585
113,146
2.2%
2.1%
 
 
 
 
 
Calculations may differ due to rounding
Certain prior year data has been reclassified to conform with current year presentation
(v)
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.





D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2018 vs. 2017
($ in millions)
Second Quarter
Year-to-Date
 
2018
2017
Change
2018
2017
Change
Net income (loss)
(56)
224
(280)
(74)
197
(271)
Add back: interest expense
8
6
2
17
12
5
Add back: income taxes
(30)
(455)
425
(31)
(533)
502
Add back: depreciation and amortization
39
52
(13)
77
105
(28)
Subtract: interest and investment income
58
59
(1)
56
102
(46)
Add back: decommissioning expense
60
60
—
118
135
(17)
Adjusted EBITDA (non-GAAP)
(37)
(172)
135
50
(186)
236
Add back pre-tax special items for:
 
 
 
 
 
 
Items associated with decisions to close or sell EWC nuclear plants
103
233
(129)
202
464
(262)
Gain on the sale of FitzPatrick
—
—
—
—
(16)
16
Operational adjusted EBITDA (non-GAAP)
66
61
5
252
261
(10)
 
 
 
 
 
 
 
Calculations may differ due to rounding

Appendix D-2 provides a comparative summary of EWC operating and financial measures.

Appendix D-2: EWC Operating and Financial Measures
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures)
 
Second Quarter
Year-to-Date
 
2018
2017
% Change
2018
2017
% Change
Owned capacity (MW)
 
 
 
3,962
3,962
—
GWh billed
7,281
6,019
21.0
14,277
14,382
(0.7)
As-reported net revenue ($ in millions)
272
250
8.8
654
744
(12.1)
Operational net revenue (non-GAAP) ($ in millions)
272
250
8.8
654
653
0.2
 
 
 
 
 
 
 
EWC Nuclear Fleet
 
 
 
 
 
 
Capacity factor
86%
59%
45.8
85%
71%
19.7
GWh billed
6,713
5,393
24.5
13,121
13,228
(0.8)
Production cost per MWh
$17.15
$27.11
(36.7)
$17.93
$20.96
(14.5)
Average energy/capacity revenue per MWh (w)
$41.82
$51.76
(19.2)
$49.21
$53.79
(8.5)
As-reported net revenue ($ in millions)
267
247
8.1
646
738
(12.6)
Operational net revenue (non-GAAP) ($ in millions)
267
246
8.4
646
647
(0.3)
Refueling outage days
 
 
 
 
 
 
FitzPatrick
—
—
 
—
42
 
Indian Point 2
20
—
 
33
—
 
Indian Point 3
—
47
 
—
66
 
Palisades
—
27
 
—
27
 
Pilgrim
—
43
 
—
43
 
 
 
 
 
 
 
 
Calculations may differ due to rounding
(w)
Average energy and capacity revenue per MWh excluding FitzPatrick was $52.02 in year-to-date 2017.
See appendix in the webcast slide presentation for EWC hedging and price disclosures.





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

Appendix E: GAAP and Non-GAAP Financial Measures
Second Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
 
 
For 12 months ending June 30
2018
2017
Change
GAAP Measures
 
 
 
ROIC - as-reported
3.2%
(1.9%)
5.1%
ROE - as-reported
3.6%
(9.8%)
13.4%
Non-GAAP Measures
 
 
 
ROIC - operational
6.4%
6.5%
(0.1%)
ROE - operational
13.4%
13.3%
0.1%
 
 
 
 
As of June 30 ($ in millions)
2018
2017
Change
GAAP Measures
 
 
 
Cash and cash equivalents
813
934
(121)
Revolver capacity
3,885
4,163
(278)
Commercial paper
1,945
1,147
798
Total debt
17,881
16,285
1,596
Securitization debt
483
602
(119)
Debt to capital ratio
68.5%
65.5%
3.0%
Off-balance sheet liabilities:
 
 
 
Debt of joint ventures - Entergy’s share
64
70
(6)
Leases - Entergy’s share
429
397
32
Power purchase agreements accounted for as leases
136
166
(30)
Total off-balance sheet liabilities
629
633
(4)
Non-GAAP Financial Measures
 
 
 
Debt to capital ratio, excluding securitization debt
67.9%
64.7%
3.2%
Gross liquidity
4,698
5,097
(399)
Net debt to net capital ratio, excluding securitization debt
66.9%
63.2%
3.7%
Parent debt to total debt ratio, excluding securitization debt
24.1%
20.5%
3.6%
Operational FFO to debt ratio, excluding securitization debt
15.4%
15.2%
0.2%
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT
15.9%
15.2%
0.7%
 
 
 
 






F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.

Appendix F-1: Definitions
Utility Operating and Financial Measures
GWh billed
Total number of GWh billed to retail and wholesale customers
Net revenue
Operating revenues 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 electric retail customers
Number of electric customers at the end of the period
 
 
EWC Operating and Financial Measures
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
Average revenue under contract (applies to capacity contracts only) (in $/kW-month)
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
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 New England, 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





Appendix F-1: Definitions
EWC Operating and Financial Measures (continued)
GWh billed
Total number of GWh billed to customers and financially-settled instruments
Net revenue
Operating revenues less fuel, fuel-related expenses and purchased power
Offsetting positions
Transactions for the purchase of energy, generally to offset a Firm LD transaction
Owned capacity (MW)
Installed capacity owned by EWC
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 (average)
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
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 (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
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 a scheduled refueling and maintenance outage during the period
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is in 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
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
ROE - as-reported
12-months rolling net income attributable to Entergy Corporation divided by average common equity
ROIC - as-reported
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Securitization debt
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA
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 and excluding decommissioning expense
Debt to capital ratio, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
FFO
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges
Gross liquidity
Sum of cash and revolver capacity
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
Operational adjusted EBITDA
Adjusted EBITDA excluding effects of special items
Operational EPS
As-reported EPS excluding special items
Operational FFO
FFO excluding the effects of special items
Operational FFO to debt ratio, excluding securitization debt
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt and return of unprotected excess ADIT
Parent debt to total debt ratio, excluding securitization debt
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt
ROE - operational
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity
ROIC - operational
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
UP&O adjusted earnings
As-reported earnings excluding special items and normalizing weather and income taxes
Utility, Parent & Other
Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment
 
 







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

Appendix F-2: Abbreviations and Acronyms
ADIT
AFUDC -
borrowed funds
AMI
ANO

APSC
ARO
bps
CCGT
CCNO
COD
CT
DCRF
E-AR
E-LA
E-MS
E-NO
E-TX
EBITDA

ENGC
ENP
ENVY
ESI
EPS
ETR
EWC
FERC
FFO
Firm LD
FitzPatrick

FRP
GAAP
Grand Gulf or GGNS
Indian Point 1
or IP1
Indian Point 2
or IP2
Indian Point 3
or IP3
IPEC
IRS
ISO
ISES 2
Accumulated deferred income taxes
Allowance for borrowed funds used during construction
Advanced metering infrastructure
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)
Arkansas Public Service Commission
Asset retirement obligation
Basis points
Combined cycle gas turbine
Council of the City of New Orleans, Louisiana
Commercial operation date
Simple cycle combustion turbine
Distribution cost recovery factor
Entergy Arkansas, Inc.
Entergy Louisiana, LLC
Entergy Mississippi, Inc.
Entergy New Orleans, LLC
Entergy Texas, Inc.
Earnings before interest, income taxes, depreciation and amortization
Entergy Nuclear Generation Company
Entergy Nuclear Palisades, LLC
Entergy Nuclear Vermont Yankee
Entergy Services, Inc.
Earnings per share
Entergy Corporation
Entergy Wholesale Commodities
Federal Energy Regulatory Commission
Funds from operations
Firm liquidated damages
James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017)
Formula rate plan
U.S. generally accepted accounting principles
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI
Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)
Indian Point Energy Center Unit 2 (nuclear)

Indian Point Energy Center Unit 3 (nuclear)

Indian Point Energy Center (nuclear)
Internal Revenue Service
Independent system operator
Unit 2 of Independence Steam Electric Station (coal)
LPSC
LTM
MISO
Moody’s
MPSC
MTEP
Nelson 6
NEPOOL
Ninemile 6
Non-fuel O&M
NDT
NOPS

NorthStar
NRC
NYISO
NYPA
NYSE
O&M
OCF
OpCo
OPEB
Palisades
Pilgrim
PPA

PUCT
RICE
RFP
ROE
ROIC
RPCE
RS Cogen
RSP
S&P
SEC
SERI
TCRF
Union
UPSA
UP&O
VPUC
VY or Vermont Yankee
WACC
WPEC
Louisiana Public Service Commission
Last twelve months
Midcontinent Independent System Operator, Inc.
Moody’s Investor Service
Mississippi Public Service Commission
MISO Transmission Expansion Planning
Unit 6 of Roy S. Nelson plant (coal)
New England Power Pool
Ninemile Point Unit 6 (CCGT)
Non-fuel operation and maintenance expense
Nuclear decommissioning trust
New Orleans Power Station (reciprocating internal combustion engine/natural gas)
NorthStar Decommissioning Holdings, LLC
Nuclear Regulatory Commission
New York Independent System Operator, Inc.
New York Power Authority
New York Stock Exchange
Operation and maintenance expense
Net cash flow provided by operating activities
Operating Company
Other post-employment benefits
Palisades Power Plant (nuclear)
Pilgrim Nuclear Power Station (nuclear)
Power purchase agreement or purchased power agreement
Public Utility Commission of Texas
Reciprocating Internal Combustion Engine
Request for proposals
Return on equity
Return on invested capital
Rough production cost equalization
RS Cogen facility (CCGT cogeneration)
Rate Stabilization Plan (E-LA Gas)
Standard & Poor’s
U.S. Securities and Exchange Commission
System Energy Resources, Inc.
Transmission cost recovery factor
Union Power Station (CCGT)
Unit Power Sales Agreement
Utility, Parent & Other
Vermont Public Utility Commission
Vermont Yankee Nuclear Power Station (nuclear)

Weighted-average cost of capital
Washington Parish Energy Center (CT/natural gas)




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 - EWC Operational Net Revenue
 
($ in millions except where noted)
 
Second Quarter
Year-to-Date
 
 
 
 
2018
2017
2018
2017
EWC
 
 
 
 
 
As-reported net revenue
(A)
272
250
654
744
Special items included in net revenue:
 
 
 
 
 
EWC Nuclear costs associated with decisions to close or sell plants
 
—
1
—
91
Total special items included in net revenue
(B)
—
1
—
91
Operational net revenue
(A-B)
272
250
654
653
 
 
 
 
 
 
EWC Nuclear
 
 
 
 
 
As-reported EWC Nuclear net revenue
(C)
267
247
646
738
Special items included in EWC Nuclear net revenue:
 
 
 
 
 
EWC Nuclear costs associated with decisions to close or sell plants
 
—
1
—
91
Total special items included in EWC Nuclear net revenue
(D)
—
1
—
91
Operational EWC Nuclear net revenue
(C-D)
267
247
646
647
 
 
 
 
 
 
 
 
Calculations may differ due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
($ in millions except where noted)
 
Second Quarter
 
 
2018
2017
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months
(A)
297
(888)
Preferred dividends
 
14
15
Tax effected interest expense
 
510
404
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense
(B)
821
(469)
 
 
 
 
Special items in prior quarters
 
(720)
(1,947)
Items associated with decisions to close or sell EWC nuclear plants
 
(82)
(151)
Total special items, rolling 12 months
(C)
(802)
(2,098)
 
 
 
 
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP)
(B-C)
1,624
1,629
 
 
 
 
Operational earnings, rolling 12 months (non-GAAP)
(A-C)
1,099
1,210
 
 
 
 
Average invested capital
(D)
25,480
24,886
 
 
 
 
Average common equity
(E)
8,197
9,064
 
 
 
 
ROIC - as-reported
(B/D)
3.2%
(1.9%)
ROIC - operational
[(B-C)/D]
6.4%
6.5%
ROE - as-reported
(A/E)
3.6%
(9.8%)
ROE - operational
[(A-C)/E]
13.4%
13.3%
 
 
 
 
Calculations may differ due to rounding





Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT
($ in millions except where noted)
 
Second Quarter
 
 
2018
2017
Total debt
(A)
17,881
16,285
Less securitization debt
(B)
483
602
Total debt, excluding securitization debt
(C)
17,398
15,683
Less cash and cash equivalents
(D)
813
934
Net debt, excluding securitization debt
(E)
16,585
14,749
 
 
 
 
Total capitalization
(F)
26,102
24,859
Less securitization debt
(B)
483
602
Total capitalization, excluding securitization debt
(G)
25,619
24,257
Less cash and cash equivalents
(D)
813
934
Net capital, excluding securitization debt
(H)
24,806
23,323
 
 
 
 
Debt to capital ratio
(A/F)
68.5%
65.5%
Debt to capital ratio, excluding securitization debt
(C/G)
67.9%
64.7%
Net debt to net capital ratio, excluding securitization debt
(E/H)
66.9%
63.2%
 
 
 
 
Revolver capacity
(I)
3,885
4,163
 
 
 
 
Gross liquidity
(D+I)
4,698
5,097
 
 
 
 
Entergy Corporation notes:
 
 
 
Due September 2020
 
450
450
Due July 2022
 
650
650
Due September 2026
 
750
750
Total parent long-term debt
(J)
1,850
1,850
Revolver draw
(K)
390
225
Commercial paper
(L)
1,945
1,147
Total parent debt
(J+K+L)
4,185
3,222
 
 
 
 
Parent debt to total debt ratio, excluding securitization debt
[(J+K+L)/C]
24.1%
20.5%
 
 
 
 






Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT (continued)
($ in millions except where noted)
 
Second Quarter
 
 
2018
2017
Total debt
(A)
17,881
16,285
Less securitization debt
(B)
483
602
Total debt, excluding securitization debt
(C)
17,398
15,683
 
 
 
 
Net cash flow provided by operating activities, rolling 12 months
(D)
2,884
2,566
 
 
 
 
AFUDC-borrowed funds, rolling 12 months
(E)
(53)
(37)
 
 
 
 
Working capital items in net cash flow provided by operating activities (rolling 12 months):
 
 
 
Receivables
 
(149)
(33)
Fuel inventory
 
(1)
35
Accounts payable
 
190
139
Prepaid taxes and taxes accrued
 
28
(38)
Interest accrued
 
3
(2)
Other working capital accounts
 
(48)
62
Securitization regulatory charges
 
123
115
Total
(F)
146
278
 
 
 
 
FFO, rolling 12 months
(G)=(D+E-F)
2,685
2,251
 
 
 
 
Add back special items (rolling 12 months pre-tax):
 
 
 
Items associated with decisions to close or sell EWC nuclear plants
 
0
126
Operational FFO, rolling 12 months
(H)
2,685
2,377
 
 
 
 
Operational FFO to debt ratio, excluding securitization debt
(H/C)
15.4%
15.2%
 
 
 
 
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax)
(I)
76
0
 
 
 
 
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT
[(H)+(I)/(C]
15.9%
15.2%
 
 
 
 
Calculations may differ due to rounding






Financial Statements
Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
48,661

 
$
6,212

 
$
324

 
$
55,197

    Temporary cash investments
 
574,624

 
6,038

 
176,928

 
757,590

     Total cash and cash equivalents
 
623,285

 
12,250

 
177,252

 
812,787

Notes receivable
 
—

 
(514,151
)
 
514,151

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
576,467

 
—

 
86,279

 
662,746

   Allowance for doubtful accounts
 
(14,545
)
 
—

 
—

 
(14,545
)
   Associated companies
 
19,330

 
(40,995
)
 
21,665

 
—

   Other
 
140,166

 
—

 
9,918

 
150,084

   Accrued unbilled revenues
 
460,181

 
—

 
—

 
460,181

     Total accounts receivable
 
1,181,599

 
(40,995
)
 
117,862

 
1,258,466

Deferred fuel costs
 
114,293

 
—

 
—

 
114,293

Fuel inventory - at average cost
 
169,958

 
—

 
4,173

 
174,131

Materials and supplies - at average cost
 
694,914

 
—

 
57,606

 
752,520

Deferred nuclear refueling outage costs
 
169,654

 
—

 
2,954

 
172,608

Prepayments and other
 
211,356

 
(9,088
)
 
47,377

 
249,645

TOTAL
 
3,165,059

 
(551,984
)
 
921,375

 
3,534,450

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

 
(1,390,674
)
 
86

 
198

Decommissioning trust funds
 
3,203,656

 
—

 
4,013,642

 
7,217,298

Non-utility property - at cost (less accumulated depreciation)
 
284,452

 
(13
)
 
10,109

 
294,548

Other
 
433,319

 
—

 
747

 
434,066

TOTAL
 
5,312,213

 
(1,390,687
)
 
4,024,584

 
7,946,110

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
46,851,946

 
4,465

 
949,057

 
47,805,468

Property under capital lease
 
620,419

 
—

 
—

 
620,419

Natural gas
 
477,715

 
—

 
—

 
477,715

Construction work in progress
 
2,504,083

 
287

 
55,420

 
2,559,790

Nuclear fuel
 
760,373

 
—

 
105,856

 
866,229

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
51,214,536

 
4,752

 
1,110,333

 
52,329,621

Less - accumulated depreciation and amortization
 
21,153,503

 
198

 
663,807

 
21,817,508

PROPERTY, PLANT AND EQUIPMENT - NET
 
30,061,033

 
4,554

 
446,526

 
30,512,113

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Other regulatory assets
 
4,828,973

 
—

 
—

 
4,828,973

    Deferred fuel costs
 
239,397

 
—

 
—

 
239,397

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
12,796

 
268

 
4,704

 
17,768

Other
 
124,214

 
9,096

 
33,356

 
166,666

TOTAL
 
5,579,479

 
9,364

 
41,133

 
5,629,976

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
44,117,784

 
$
(1,928,753
)
 
$
5,433,618

 
$
47,622,649

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
1,016,908

 
$
—

 
$
—

 
$
1,016,908

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
(243,862
)
 
243,862

 
—

  Other
 
38,874

 
1,945,229

 
—

 
1,984,103

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
24,651

 
(37,582
)
 
12,931

 
—

  Other
 
1,164,857

 
54

 
294,521

 
1,459,432

Customer deposits
 
404,880

 
—

 
—

 
404,880

Taxes accrued
 
199,390

 
(11,952
)
 
19,436

 
206,874

Interest accrued
 
158,982

 
26,795

 
139

 
185,916

Deferred fuel costs
 
32,904

 
—

 
—

 
32,904

Obligations under capital leases
 
1,442

 
—

 
—

 
1,442

Pension and other postretirement liabilities
 
49,084

 
—

 
12,496

 
61,580

Current portion of unprotected excess accumulated deferred
 
 
 
 
 
 
 
 
      income taxes
 
710,108

 
—

 
—

 
710,108

Other
 
130,609

 
1,843

 
35,474

 
167,926

TOTAL
 
3,932,689

 
1,680,525

 
618,859

 
6,232,073

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
5,448,017

 
(190,563
)
 
(823,146
)
 
4,434,308

Accumulated deferred investment tax credits
 
215,369

 
—

 
—

 
215,369

Obligations under capital leases
 
21,263

 
—

 
—

 
21,263

Regulatory liability for income taxes - net
 
1,901,043

 
—

 
—

 
1,901,043

Other regulatory liabilities
 
1,630,335

 
—

 
—

 
1,630,335

Decommissioning and retirement cost liabilities
 
3,167,009

 
—

 
3,231,971

 
6,398,980

Accumulated provisions
 
505,140

 
—

 
624

 
505,764

Pension and other postretirement liabilities
 
2,037,425

 
—

 
701,982

 
2,739,407

Long-term debt
 
12,521,013

 
2,229,173

 
107,500

 
14,857,686

Other
 
770,989

 
(388,409
)
 
83,609

 
466,189

TOTAL
 
28,217,603

 
1,650,201

 
3,302,540

 
33,170,344

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
173,522

 
—

 
24,249

 
197,771

 
 
 
 
 
 
 
 
 
COMMON EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
 
      issued 254,752,788 shares in 2018
 
1,973,768

 
(2,172,323
)
 
201,103

 
2,548

  Paid-in capital
 
3,284,981

 
898,406

 
1,246,017

 
5,429,404

  Retained earnings
 
6,824,652

 
1,268,563

 
485,061

 
8,578,276

  Accumulated other comprehensive loss
 
(169,431
)
 
—

 
(444,211
)
 
(613,642
)
  Less - treasury stock, at cost (73,911,771 shares in 2018)
 
120,000

 
5,254,125

 
—

 
5,374,125

TOTAL
 
11,793,970

 
(5,259,479
)
 
1,487,970

 
8,022,461

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
44,117,784

 
$
(1,928,753
)
 
$
5,433,618

 
$
47,622,649

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
50,270

 
$
971

 
$
5,388

 
$
56,629

    Temporary cash investments
 
494,158

 
3,663

 
226,822

 
724,644

     Total cash and cash equivalents
 
544,428

 
4,634

 
232,210

 
781,273

Notes receivable
 
—

 
(514,418
)
 
514,418

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
561,751

 
—

 
111,596

 
673,347

   Allowance for doubtful accounts
 
(13,587
)
 
—

 
—

 
(13,587
)
   Associated companies
 
43,639

 
(55,019
)
 
11,381

 
—

   Other
 
159,396

 
—

 
9,981

 
169,377

   Accrued unbilled revenues
 
383,813

 
—

 
—

 
383,813

     Total accounts receivable
 
1,135,012

 
(55,019
)
 
132,958

 
1,212,950

Deferred fuel costs
 
95,746

 
—

 
—

 
95,746

Fuel inventory - at average cost
 
178,813

 
—

 
3,830

 
182,643

Materials and supplies - at average cost
 
672,715

 
—

 
50,506

 
723,222

Deferred nuclear refueling outage costs
 
130,103

 
—

 
3,061

 
133,164

Prepayments and other
 
150,568

 
(8,677
)
 
14,442

 
156,333

TOTAL
 
2,907,385

 
(573,480
)
 
951,425

 
3,285,331

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,390,785

 
(1,390,673
)
 
86

 
198

Decommissioning trust funds
 
3,162,649

 
—

 
4,049,344

 
7,211,993

Non-utility property - at cost (less accumulated depreciation)
 
251,904

 
(13
)
 
9,089

 
260,980

Other
 
439,264

 
—

 
2,598

 
441,862

TOTAL
 
5,244,602

 
(1,390,686
)
 
4,061,117

 
7,915,033

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
46,332,630

 
4,406

 
950,333

 
47,287,370

Property under capital lease
 
620,544

 
—

 
—

 
620,544

Natural gas
 
453,162

 
—

 
—

 
453,162

Construction work in progress
 
1,949,769

 
253

 
30,487

 
1,980,508

Nuclear fuel
 
822,260

 
—

 
100,941

 
923,200

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
50,178,365

 
4,659

 
1,081,761

 
51,264,784

Less - accumulated depreciation and amortization
 
21,003,295

 
198

 
596,931

 
21,600,424

PROPERTY, PLANT AND EQUIPMENT - NET
 
29,175,070

 
4,461

 
484,830

 
29,664,360

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Regulatory asset for income taxes - net
 
—

 
—

 
—

 
—

    Other regulatory assets
 
4,935,689

 
—

 
—

 
4,935,689

    Deferred fuel costs
 
239,298

 
—

 
—

 
239,298

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
32,238

 
40,541

 
105,425

 
178,204

Other
 
70,288

 
9,635

 
32,139

 
112,062

TOTAL
 
5,651,612

 
50,176

 
140,637

 
5,842,425

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
42,978,669

 
$
(1,909,529
)
 
$
5,638,009

 
$
46,707,149

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
760,007

 
$
—

 
$
—

 
$
760,007

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
(6,433
)
 
6,433

 
—

  Other
 
111,345

 
1,466,963

 
—

 
1,578,308

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
31,970

 
(67,310
)
 
35,340

 
—

  Other
 
1,211,661

 
109

 
240,446

 
1,452,216

Customer deposits
 
401,330

 
—

 
—

 
401,330

Taxes accrued
 
241,877

 
(12,298
)
 
(14,612
)
 
214,967

Interest accrued
 
161,077

 
26,603

 
292

 
187,972

Deferred fuel costs
 
146,522

 
—

 
—

 
146,522

Obligations under capital leases
 
1,502

 
—

 
—

 
1,502

Pension and other postretirement liabilities
 
59,378

 
—

 
12,234

 
71,612

Other
 
129,001

 
1,958

 
90,812

 
221,771

TOTAL
 
3,255,670

 
1,409,592

 
370,945

 
5,036,207

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
5,288,573

 
(151,174
)
 
(670,896
)
 
4,466,503

Accumulated deferred investment tax credits
 
219,634

 
—

 
—

 
219,634

Obligations under capital leases
 
22,015

 
—

 
—

 
22,015

Regulatory liability for income taxes - net
 
2,900,204

 
—

 
—

 
2,900,204

Other regulatory liabilities
 
1,588,520

 
—

 
—

 
1,588,520

Decommissioning and retirement cost liabilities
 
3,002,469

 
—

 
3,183,345

 
6,185,814

Accumulated provisions
 
477,742

 
—

 
531

 
478,273

Pension and other postretirement liabilities
 
2,170,518

 
—

 
740,136

 
2,910,654

Long-term debt
 
12,163,671

 
2,048,518

 
103,070

 
14,315,259

Other
 
714,509

 
(393,075
)
 
72,314

 
393,748

TOTAL
 
28,547,855

 
1,504,269

 
3,428,500

 
33,480,624

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
173,554

 
—

 
24,249

 
197,803

 
 
 
 
 
 
 
 
 
COMMON EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
 
      issued 254,752,788 shares in 20157
 
2,030,268

 
(2,228,823
)
 
201,103

 
2,548

  Paid-in capital
 
2,934,943

 
1,006,941

 
1,491,549

 
5,433,433

  Retained earnings
 
6,304,977

 
1,676,129

 
(3,404
)
 
7,977,702

  Accumulated other comprehensive income (loss)
 
(148,598
)
 
—

 
125,067

 
(23,531
)
  Less - treasury stock, at cost (74,235,135 shares in 2017)
 
120,000

 
5,277,637

 
—

 
5,397,637

TOTAL
 
11,001,590

 
(4,823,390
)
 
1,814,315

 
7,992,515

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
42,978,669

 
$
(1,909,529
)
 
$
5,638,009

 
$
46,707,149

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,330,265

 
$
(40
)
 
$
—

 
$
2,330,225

     Natural gas
 
29,943

 
—

 
—

 
29,943

     Competitive businesses
 
—

 
—

 
308,602

 
308,602

                         Total
 
2,360,208

 
(40
)
 
308,602

 
2,668,770

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
447,051

 
(40
)
 
18,791

 
465,802

          Purchased power
 
399,454

 
40

 
17,540

 
417,034

          Nuclear refueling outage expenses
 
34,650

 
—

 
710

 
35,360

          Other operation and maintenance
 
628,751

 
11,724

 
199,628

 
840,103

     Asset write-offs, impairments and related charges
 
—

 
—

 
68,943

 
68,943

     Decommissioning
 
37,285

 
—

 
60,320

 
97,605

     Taxes other than income taxes
 
135,812

 
415

 
22,320

 
158,547

     Depreciation and amortization
 
311,518

 
386

 
38,581

 
350,485

     Other regulatory charges
 
143,294

 
—

 
—

 
143,294

                         Total
 
2,137,815

 
12,525

 
426,833

 
2,577,173

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
222,393

 
(12,565
)
 
(118,231
)
 
91,597

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
31,670

 
—

 
—

 
31,670

     Interest and investment income
 
52,296

 
(38,713
)
 
57,551

 
71,134

     Miscellaneous - net
 
(28,370
)
 
(2,786
)
 
(17,335
)
 
(48,491
)
                          Total
 
55,596

 
(41,499
)
 
40,216

 
54,313

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
154,587

 
29,261

 
8,466

 
192,314

     Allowance for borrowed funds used during construction
 
(14,668
)
 
—

 
—

 
(14,668
)
                         Total
 
139,919

 
29,261

 
8,466

 
177,646

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
138,070

 
(83,325
)
 
(86,481
)
 
(31,736
)
 
 
 
 
 
 
 
 
 
Income taxes
 
(240,324
)
 
(10,128
)
 
(30,144
)
 
(280,596
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
378,394

 
(73,197
)
 
(56,337
)
 
248,860

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
2,892

 
—

 
547

 
3,439

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
375,502

 
$
(73,197
)
 
$
(56,884
)
 
$
245,421

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$2.07

 
($0.40)

 
($0.31)

 
$1.36

   DILUTED
 
$2.05

 
($0.40)

 
($0.31)

 
$1.34

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,823,203

   DILUTED
 
 
 
 
 
 
 
182,982,630

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,271,257

 
$
(37
)
 
$
—

 
$
2,271,220

     Natural gas
 
30,075

 
—

 
—

 
30,075

     Competitive businesses
 
—

 
—

 
317,255

 
317,255

                         Total
 
2,301,332

 
(37
)
 
317,255

 
2,618,550

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
367,422

 
(36
)
 
28,561

 
395,947

          Purchased power
 
377,916

 
37

 
38,544

 
416,497

          Nuclear refueling outage expenses
 
34,486

 
—

 
3,802

 
38,288

          Other operation and maintenance
 
597,624

 
6,611

 
190,732

 
794,967

     Asset write-offs, impairments and related charges
 
—

 
—

 
193,571

 
193,571

     Decommissioning
 
40,105

 
—

 
60,191

 
100,296

     Taxes other than income taxes
 
134,016

 
393

 
18,855

 
153,264

     Depreciation and amortization
 
297,954

 
443

 
51,931

 
350,328

     Other regulatory credits
 
6,553

 
—

 
—

 
6,553

                         Total
 
1,856,076

 
7,448

 
586,187

 
2,449,711

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
445,256

 
(7,485
)
 
(268,932
)
 
168,839

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
22,376

 
—

 
—

 
22,376

     Interest and investment income
 
59,927

 
(38,734
)
 
58,904

 
80,097

     Miscellaneous - net
 
(15,615
)
 
(1,613
)
 
(14,974
)
 
(32,202
)
                          Total
 
66,688

 
(40,347
)
 
43,930

 
70,271

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
145,234

 
22,087

 
6,056

 
173,377

     Allowance for borrowed funds used during construction
 
(10,523
)
 
—

 
—

 
(10,523
)
                         Total
 
134,711

 
22,087

 
6,056

 
162,854

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
377,233

 
(69,919
)
 
(231,058
)
 
76,256

 
 
 
 
 
 
 
 
 
Income taxes
 
130,851

 
(13,019
)
 
(454,944
)
 
(337,112
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
246,382

 
(56,900
)
 
223,886

 
413,368

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
2,899

 
—

 
547

 
3,446

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
243,483

 
$
(56,900
)
 
$
223,339

 
$
409,922

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$1.36

 
($0.32)

 
$1.24

 
$2.28

   DILUTED
 
$1.35

 
($0.32)

 
$1.24

 
$2.27

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,475,346

   DILUTED
 
 
 
 
 
 
 
180,234,694

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
4,578,559

 
$
(73
)
 
$
—

 
$
4,578,486

     Natural gas
 
86,638

 
—

 
—

 
86,638

     Competitive businesses
 
—

 
—

 
727,526

 
727,526

                         Total
 
4,665,197

 
(73
)
 
727,526

 
5,392,650

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
870,448

 
(73
)
 
38,723

 
909,098

          Purchased power
 
778,441

 
70

 
34,547

 
813,058

          Nuclear refueling outage expenses
 
75,123

 
—

 
2,997

 
78,120

          Other operation and maintenance
 
1,216,756

 
16,546

 
390,385

 
1,623,687

     Asset write-offs, impairments and related charges
 
—

 
—

 
141,867

 
141,867

     Decommissioning
 
73,550

 
—

 
118,455

 
192,005

     Taxes other than income taxes
 
283,728

 
1,374

 
38,663

 
323,765

     Depreciation and amortization
 
619,984

 
757

 
76,730

 
697,471

     Other regulatory charges
 
186,319

 
—

 
—

 
186,319

                         Total
 
4,104,349

 
18,674

 
842,367

 
4,965,390

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
560,848

 
(18,747
)
 
(114,841
)
 
427,260

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
60,014

 
—

 
—

 
60,014

     Interest and investment income
 
109,100

 
(77,286
)
 
56,191

 
88,005

     Miscellaneous - net
 
(45,503
)
 
(4,387
)
 
(29,959
)
 
(79,849
)
                          Total
 
123,611

 
(81,673
)
 
26,232

 
68,170

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
304,159

 
54,349

 
16,729

 
375,237

     Allowance for borrowed funds used during construction
 
(27,933
)
 
—

 
—

 
(27,933
)
                         Total
 
276,226

 
54,349

 
16,729

 
347,304

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
408,233

 
(154,769
)
 
(105,338
)
 
148,126

 
 
 
 
 
 
 
 
 
Income taxes
 
(188,100
)
 
(17,611
)
 
(31,222
)
 
(236,933
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
596,333

 
(137,158
)
 
(74,116
)
 
385,059

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
5,784

 
—

 
1,094

 
6,878

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
590,549

 
$
(137,158
)
 
$
(75,210
)
 
$
378,181

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$3.27

 
($0.76)

 
($0.42)

 
$2.09

   DILUTED
 
$3.24

 
($0.75)

 
($0.41)

 
$2.08

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,765,708

   DILUTED
 
 
 
 
 
 
 
182,208,328

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
4,263,018

 
$
(58
)
 
$
—

 
$
4,262,960

     Natural gas
 
73,426

 
—

 
—

 
73,426

     Competitive businesses
 
—

 
—

 
870,622

 
870,622

                         Total
 
4,336,444

 
(58
)
 
870,622

 
5,207,008

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operation and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
763,367

 
(58
)
 
50,204

 
813,513

          Purchased power
 
698,211

 
58

 
75,995

 
774,264

          Nuclear refueling outage expenses
 
71,063

 
—

 
9,790

 
80,853

          Other operation and maintenance
 
1,154,757

 
11,466

 
475,602

 
1,641,825

     Asset write-offs, impairments and related charges
 
—

 
—

 
405,362

 
405,362

     Decommissioning
 
79,615

 
—

 
135,054

 
214,669

     Taxes other than income taxes
 
266,639

 
1,202

 
41,775

 
309,616

     Depreciation and amortization
 
592,312

 
757

 
104,524

 
697,593

     Other regulatory credits
 
(78,749
)
 
—

 
—

 
(78,749
)
                         Total
 
3,547,215

 
13,425

 
1,298,306

 
4,858,946

 
 
 
 
 
 
 
 
 
     Gain on sale of assets
 
—

 
—

 
16,270

 
16,270

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
789,229

 
(13,483
)
 
(411,414
)
 
364,332

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
41,384

 
—

 
—

 
41,384

     Interest and investment income
 
111,608

 
(77,004
)
 
102,042

 
136,646

     Miscellaneous - net
 
(29,839
)
 
(2,829
)
 
(14,723
)
 
(47,391
)
                          Total
 
123,153

 
(79,833
)
 
87,319

 
130,639

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
288,599

 
43,370

 
12,497

 
344,466

     Allowance for borrowed funds used during construction
 
(19,565
)
 
—

 
—

 
(19,565
)
                         Total
 
269,034

 
43,370

 
12,497

 
324,901

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
643,348

 
(136,686
)
 
(336,592
)
 
170,070

 
 
 
 
 
 
 
 
 
Income taxes
 
229,343

 
(25,412
)
 
(533,281
)
 
(329,350
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
414,005

 
(111,274
)
 
196,689

 
499,420

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
5,798

 
—

 
1,094

 
6,892

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
408,207

 
$
(111,274
)
 
$
195,595

 
$
492,528

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$2.28

 
($0.62)

 
$1.09

 
$2.75

   DILUTED
 
$2.27

 
($0.62)

 
$1.09

 
$2.74

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
179,405,592

   DILUTED
 
 
 
 
 
 
 
180,032,233

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,594,552

 
$
(130
)
 
$
—

 
$
9,594,422

     Natural gas
 
 152,068

 
0

 
0

 
 152,068

     Competitive businesses
 
0

 
0

 
 1,513,633

 
 1,513,633

                         Total
 
 9,746,620

 
 (130)

 
 1,513,633

 
 11,260,123

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
 2,015,657

 
 (130)

 
 71,648

 
 2,087,175

          Purchased power
 
 1,403,391

 
 127

 
 63,225

 
 1,466,743

          Nuclear refueling outage expenses
 
 158,070

 
0

 
 7,348

 
 165,418

          Other operation and maintenance
 
 2,480,323

 
 32,208

 
 784,600

 
 3,297,131

     Asset write-offs, impairments and related charges
 
0

 
0

 
 274,877

 
 274,877

     Decommissioning
 
 144,663

 
0

 
 238,357

 
 383,020

     Taxes other than income taxes
 
 553,496

 
 1,704

 
 76,505

 
 631,705

     Depreciation and amortization
 
 1,222,693

 
 1,678

 
 165,327

 
 1,389,698

     Other regulatory charges - net
 
 133,325

 
0

 
0

 
 133,325

                         Total
 
 8,111,618

 
 35,587

 
 1,681,887

 
 9,829,092

 
 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS)
 
 1,635,002

 
 (35,717)

 
 (168,254)

 
 1,431,031

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
 113,718

 
0

 
0

 
 113,718

     Interest and investment income
 
 215,809

 
 (154,523)

 
 178,270

 
 239,556

     Miscellaneous - net
 
 (77,387)

 
 (6,562)

 
 (69,631)

 
 (153,580)

                          Total
 
 252,140

 
 (161,085)

 
 108,639

 
 199,694

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
 607,729

 
 102,308

 
 27,946

 
 737,983

     Allowance for borrowed funds used during construction
 
 (53,237)

 
0

 
0

 
 (53,237)

                         Total
 
 554,492

 
 102,308

 
 27,946

 
 684,746

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
 1,332,650

 
 (299,110)

 
 (87,561)

 
 945,979

 
 
 
 
 
 
 
 
 
Income taxes
 
 377,173

 
 (97,766)

 
 355,580

 
 634,987

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME (LOSS)
 
 955,477

 
 (201,344)

 
 (443,141)

 
 310,992

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
 11,540

 
0

 
 2,187

 
 13,727

 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
943,937

 
$
(201,344
)
 
$
(445,328
)
 
$
297,265

 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$5.24

 
($1.12)

 
($2.47)

 
$1.65

   DILUTED
 
$5.20

 
($1.11)

 
($2.45)

 
$1.64

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,346,266

   DILUTED
 
 
 
 
 
 
 
181,444,134

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended June 30, 2017
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
8,994,239

 
$
(112
)
 
$
—

 
$
8,994,127

     Natural gas
 
132,040

 
—

 
—

 
132,040

     Competitive businesses
 
—

 
—

 
1,854,071

 
1,854,071

                         Total
 
9,126,279

 
(112
)
 
1,854,071

 
10,980,238

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
1,521,687

 
(112
)
 
214,706

 
1,736,281

          Purchased power
 
1,377,790

 
112

 
111,893

 
1,489,795

          Nuclear refueling outage expenses
 
133,293

 
—

 
57,962

 
191,254

          Other operation and maintenance
 
2,392,614

 
22,961

 
991,040

 
3,406,616

     Asset write-offs, impairments and related charges
 
—

 
—

 
3,226,669

 
3,226,669

     Decommissioning
 
156,925

 
—

 
239,917

 
396,842

     Taxes other than income taxes
 
515,715

 
1,109

 
86,267

 
603,091

     Depreciation and amortization
 
1,170,971

 
1,430

 
202,438

 
1,374,840

     Other regulatory charges - net
 
(7,019
)
 
—

 
—

 
(7,019
)
                         Total
 
7,261,976

 
25,500

 
5,130,892

 
12,418,369

 
 
 
 
 
 
 
 
 
     Gain on sale of assets
 
—

 
—

 
16,270

 
16,270

 
 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS)
 
1,864,303

 
(25,612
)
 
(3,260,551
)
 
(1,421,861
)
 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
76,155

 
—

 
—

 
76,155

     Interest and investment income
 
205,464

 
(152,998
)
 
150,178

 
202,645

     Miscellaneous - net
 
(66,759
)
 
(7,557
)
 
(36,478
)
 
(110,794
)
                          Total
 
214,860

 
(160,555
)
 
113,700

 
168,006

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
581,240

 
89,512

 
22,817

 
693,569

     Allowance for borrowed funds used during construction
 
(36,927
)
 
—

 
—

 
(36,927
)
                         Total
 
544,313

 
89,512

 
22,817

 
656,642

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
1,534,850

 
(275,679
)
 
(3,169,668
)
 
(1,910,497
)
 
 
 
 
 
 
 
 
 
Income taxes
 
549,681

 
(44,460
)
 
(1,542,803
)
 
(1,037,582
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME (LOSS)
 
985,169

 
(231,219
)
 
(1,626,865
)
 
(872,915
)
 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
13,267

 
—

 
2,188

 
15,455

 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
971,902

 
$
(231,219
)
 
$
(1,629,053
)
 
$
(888,370
)
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$5.40

 
($1.29)

 
($9.05)

 
($4.94)

   DILUTED
 
$5.40

 
($1.29)

 
($9.05)

 
($4.94)

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,009,482

   DILUTED
 
 
 
 
 
 
 
180,009,482

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Three Months Ended June 30, 2018 vs. 2017
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2018
 
2017
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
248,860

 
$
413,368

 
$
(164,508
)
Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
502,428

 
511,298

 
(8,870
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(15,875
)
 
(340,724
)
 
324,849

  Asset write-offs, impairments and related charges
 
25,703

 
75,802

 
(50,099
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(176,665
)
 
(150,110
)
 
(26,555
)
     Fuel inventory
 
24,773

 
(252
)
 
25,025

     Accounts payable
 
166,321

 
57,369

 
108,952

     Taxes accrued
 
48,209

 
56,630

 
(8,421
)
     Interest accrued
 
7,955

 
9,974

 
(2,019
)
     Deferred fuel costs
 
(56,025
)
 
(120,556
)
 
64,531

     Other working capital accounts
 
(106,978
)
 
(84,181
)
 
(22,797
)
  Changes in provisions for estimated losses
 
16,699

 
(3,309
)
 
20,008

  Changes in other regulatory assets
 
22,363

 
15,115

 
7,248

  Changes in other regulatory liabilities
 
(215,859
)
 
10,074

 
(225,933
)
  Changes in pensions and other postretirement liabilities
 
(83,860
)
 
(93,916
)
 
10,056

  Other
 
114,481

 
(66,292
)
 
180,773

Net cash flow provided by operating activities
 
522,530

 
290,290

 
232,240

  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(953,940
)
 
(925,264
)
 
(28,676
)
Allowance for equity funds used during construction
 
31,823

 
22,623

 
9,200

Nuclear fuel purchases
 
(40,674
)
 
(72,143
)
 
31,469

Proceeds from sale of assets
 
9,163

 
—

 
9,163

Insurance proceeds received for property damages
 
8,941

 
5,248

 
3,693

Changes in securitization account
 
11,817

 
10,991

 
826

Payments to storm reserve escrow account
 
(1,569
)
 
(644
)
 
(925
)
Receipts from storm reserve escrow account
 
—

 
—

 
—

Decrease (increase) in other investments
 
(10,363
)
 
12,082

 
(22,445
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
—

 
—

 
—

Proceeds from nuclear decommissioning trust fund sales
 
709,838

 
948,948

 
(239,110
)
Investment in nuclear decommissioning trust funds
 
(720,290
)
 
(960,245
)
 
239,955

Net cash flow used in investing activities
 
(955,254
)
 
(958,404
)
 
3,150

FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
853,467

 
800,331

 
53,136

    Treasury stock
 
1,739

 
5,371

 
(3,632
)
  Retirement of long-term debt
 
(1,835,131
)
 
(54,647
)
 
(1,780,484
)
  Changes in credit borrowings and commercial paper - net
 
1,178,972

 
(74,421
)
 
1,253,393

  Other
 
5,241

 
2,495

 
2,746

  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(160,934
)
 
(156,136
)
 
(4,798
)
     Preferred stock
 
(3,439
)
 
(3,446
)
 
7

Net cash flow provided by financing activities
 
39,915

 
519,547

 
(479,632
)
Net increase (decrease) in cash and cash equivalents
 
(392,809
)
 
(148,567
)
 
(244,242
)
Cash and cash equivalents at beginning of period
 
1,205,596

 
1,083,062

 
122,534

Cash and cash equivalents at end of period
 
$
812,787

 
$
934,495

 
$
(121,708
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$177,023

 
$156,421

 
$20,602

     Income taxes
 
$18,442

 
$3,371

 
$15,071

 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Six Months Ended June 30, 2018 vs. 2017
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2018
 
2017
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
385,059

 
$
499,420

 
$
(114,361
)
Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
1,027,609

 
1,042,671

 
(15,062
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
88,732

 
(324,227
)
 
412,959

  Asset write-offs, impairments and related charges
 
51,503

 
220,828

 
(169,325
)
  Gain on sale of assets
 
—

 
(16,270
)
 
16,270

  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(45,515
)
 
6,091

 
(51,606
)
     Fuel inventory
 
8,512

 
6,213

 
2,299

     Accounts payable
 
97,464

 
9,687

 
87,777

     Taxes accrued
 
(8,092
)
 
(2,202
)
 
(5,890
)
     Interest accrued
 
(2,056
)
 
(3,947
)
 
1,891

     Deferred fuel costs
 
(132,263
)
 
(127,945
)
 
(4,318
)
     Other working capital accounts
 
(134,982
)
 
(91,505
)
 
(43,477
)
  Changes in provisions for estimated losses
 
27,443

 
(7,340
)
 
34,783

  Changes in other regulatory assets
 
106,712

 
62,612

 
44,100

  Changes in other regulatory liabilities
 
(247,239
)
 
(8,250
)
 
(238,989
)
  Changes in pensions and other postretirement liabilities
 
(181,278
)
 
(180,346
)
 
(932
)
  Other
 
38,314

 
(265,807
)
 
304,121

Net cash flow provided by operating activities
 
1,079,923

 
819,683

 
260,240

  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(1,885,419
)
 
(1,719,712
)
 
(165,707
)
Allowance for equity funds used during construction
 
60,335

 
41,877

 
18,458

Nuclear fuel purchases
 
(90,321
)
 
(209,756
)
 
119,435

Proceeds from sale of assets
 
9,163

 
100,000

 
(90,837
)
Insurance proceeds received for property damages
 
10,523

 
26,157

 
(15,634
)
Changes in securitization account
 
4,754

 
10,028

 
(5,274
)
Payments to storm reserve escrow account
 
(2,744
)
 
(1,124
)
 
(1,620
)
Receipts from storm reserve escrow account
 
—

 
8,836

 
(8,836
)
Decrease (increase) in other investments
 
(10,769
)
 
1,705

 
(12,474
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
—

 
25,493

 
(25,493
)
Proceeds from nuclear decommissioning trust fund sales
 
1,801,170

 
1,462,698

 
338,472

Investment in nuclear decommissioning trust funds
 
(1,826,384
)
 
(1,516,406
)
 
(309,978
)
Net cash flow used in investing activities
 
(1,929,692
)
 
(1,770,204
)
 
(159,488
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
3,359,193

 
1,036,529

 
2,322,664

    Treasury stock
 
3,691

 
7,819

 
(4,128
)
  Retirement of long-term debt
 
(2,569,131
)
 
(866,337
)
 
(1,702,794
)
  Changes in credit borrowings and commercial paper - net
 
405,795

 
833,957

 
(428,162
)
  Other
 
10,434

 
4,305

 
6,129

  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(321,821
)
 
(312,209
)
 
(9,612
)
     Preferred stock
 
(6,878
)
 
(6,892
)
 
14

Net cash flow provided by financing activities
 
881,283

 
697,172

 
184,111

Net increase (decrease) in cash and cash equivalents
 
31,514

 
(253,349
)
 
284,863

Cash and cash equivalents at beginning of period
 
781,273

 
1,187,844

 
(406,571
)
Cash and cash equivalents at end of period
 
$
812,787

 
$
934,495

 
$
(121,708
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid (received) during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$362,629

 
$334,555

 
$28,074

     Income taxes
 
$14,145

 
($14,673)

 
$28,818

 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Twelve Months Ended June 30, 2018 vs. 2017
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2018
 
2017
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income (loss)
 
$
310,992

 
$
(872,915
)
 
$
1,183,907

Adjustments to reconcile consolidated net income (loss) to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
2,063,516

 
2,153,209

 
(89,693
)
  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
942,012

 
(990,458
)
 
1,932,470

  Asset write-offs, impairments and related charges
 
187,926

 
3,042,136

 
(2,854,210
)
  Gain on sale of asset
 
—

 
(16,270
)
 
16,270

  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(149,243
)
 
(33,211
)
 
(116,032
)
     Fuel inventory
 
(744
)
 
34,837

 
(35,581
)
     Accounts payable
 
189,579

 
138,696

 
50,883

     Taxes accrued
 
27,963

 
(38,221
)
 
66,184

     Interest accrued
 
2,633

 
(1,739
)
 
4,372

     Deferred fuel costs
 
51,972

 
(373,598
)
 
425,570

     Other working capital accounts
 
(47,808
)
 
61,621

 
(109,429
)
  Changes in provisions for estimated losses
 
31,504

 
12,032

 
19,472

  Changes in other regulatory assets
 
639,604

 
(95,557
)
 
735,161

  Changes in other regulatory liabilities
 
2,676,806

 
79,276

 
2,597,530

  Deferred tax rate change recognized as regulatory liability / asset
 
(3,665,498
)
 
—

 
(3,665,498
)
  Changes in pensions and other postretirement liabilities
 
(131,618
)
 
(148,409
)
 
16,791

  Other
 
(245,856
)
 
(385,127
)
 
139,271

Net cash flow provided by operating activities
 
2,883,740

 
2,566,302

 
317,438

  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(3,773,239
)
 
(3,205,436
)
 
(567,803
)
Allowance for equity funds used during construction
 
114,458

 
77,070

 
37,388

Nuclear fuel purchases
 
(257,889
)
 
(400,355
)
 
142,466

Payment for purchase of plant or assets
 
(16,762
)
 
(1,426
)
 
(15,336
)
Proceeds from sale of assets
 
9,163

 
100,000

 
(90,837
)
Insurance proceeds received for property damages
 
10,523

 
47,125

 
(36,602
)
Changes in securitization account
 
(3,951
)
 
796

 
(4,747
)
Payments to storm reserve escrow account
 
(4,498
)
 
(1,863
)
 
(2,635
)
Receipts from storm reserve escrow account
 
2,487

 
8,836

 
(6,349
)
Decrease (increase) in other investments
 
(11,396
)
 
10,703

 
(22,099
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
—

 
105,171

 
(105,171
)
Proceeds from nuclear decommissioning trust fund sales
 
3,501,219

 
2,638,946

 
862,273

Investment in nuclear decommissioning trust funds
 
(3,570,652
)
 
(2,733,581
)
 
(837,071
)
Net cash flow used in investing activities
 
(4,000,537
)
 
(3,354,014
)
 
(646,523
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
4,132,054

 
3,980,319

 
151,735

    Preferred stock of subsidiary
 
14,399

 
—

 
14,399

    Treasury stock
 
76,601

 
24,078

 
52,523

  Retirement of long-term debt
 
(3,288,475
)
 
(2,757,465
)
 
(531,010
)
  Repurchase / redemption of preferred stock
 
(20,599
)
 
(115,283
)
 
94,684

  Changes in credit borrowings and commercial paper - net
 
735,134

 
224,080

 
511,054

  Other
 
(1,602
)
 
7,709

 
(9,311
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(638,497
)
 
(620,201
)
 
(18,296
)
     Preferred stock
 
(13,926
)
 
(17,129
)
 
3,203

Net cash flow provided by financing activities
 
995,089

 
726,108

 
268,981

Net decrease in cash and cash equivalents
 
(121,708
)
 
(61,604
)
 
(60,104
)
Cash and cash equivalents at beginning of period
 
934,495

 
996,099

 
(61,604
)
Cash and cash equivalents at end of period
 
$
812,787

 
$
934,495

 
$
(121,708
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid (received) during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$706,445

 
$670,590

 
$35,855

     Income taxes
 
$15,443

 
($3,963)

 
$19,406