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Common Equity
 12 Months Ended
Dec. 31, 2019
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
Entergy Arkansas [Member]  
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
Entergy Louisiana [Member]  
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
Entergy Mississippi [Member]  
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
Entergy New Orleans [Member]  
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
Entergy Texas [Member]  
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
System Energy [Member]  
Common Equity COMMON EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Common Stock

Common stock and treasury stock shares activity for Entergy for 2019, 2018, and 2017 is as follows:
 
2019
 
2018
 
2017
 
Common
Shares
Issued
 

Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
 
Common
Shares
Issued
 
 
Treasury
Shares
Beginning Balance, January 1
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135

 
254,752,788

 
75,623,363

Issuances:
 

 
 

 
 

 
 

 
 

 
 

Equity forwards settled
8,448,171

 
—

 
6,834,221

 
—

 
—

 
—

Employee Stock-Based Compensation Plans
—

 
(1,624,358
)
 
—

 
(1,683,174
)
 
—

 
(1,377,363
)
Directors’ Plan
—

 
(20,108
)
 
—

 
(21,095
)
 
—

 
(10,865
)
Ending Balance, December 31
270,035,180

 
70,886,400

 
261,587,009

 
72,530,866

 
254,752,788

 
74,235,135



Entergy Corporation reissues treasury shares to meet the requirements of the Stock Plan for Outside Directors (Directors’ Plan), four Equity Ownership Plans of Entergy Corporation and Subsidiaries, and certain other stock benefit plans.  The Directors’ Plan awards to non-employee directors a portion of their compensation in the form of a fixed dollar value of shares of Entergy Corporation common stock.

In October 2010 the Board granted authority for a $500 million share repurchase program.  As of December 31, 2019, $350 million of authority remains under the $500 million share repurchase program.

Dividends declared per common share were $3.66 in 2019, $3.58 in 2018, and $3.50 in 2017.

(System Energy)

System Energy paid its parent, Entergy Corporation, distributions out of its common stock of $56.5 million in 2018 and $21 million in 2017.

Equity Forward Sale Agreements

In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. The equity forwards required Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price was subject to adjustment on a daily basis based on a floating interest rate factor and decreased by other fixed amounts specified in the agreements.

In December 2018, Entergy physically settled a portion of its obligations under the forward sale agreements by delivering 6,834,221 shares of common stock in exchange for cash proceeds of $500 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price
of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $728 thousand of common stock issuance costs with the settlement.

In May 2019, Entergy physically settled its remaining obligations under the forward sale agreements by delivering 8,448,171 shares of common stock in exchange for cash proceeds of $608 million. The forward sale price used to determine the cash proceeds received by Entergy was calculated based on the initial forward sale price of $74.45 per share as adjusted in accordance with the forward sale agreements. Entergy incurred approximately $7 thousand of common stock issuance costs with the settlement.

Entergy used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy’s revolving credit facility, and other debt.

Retained Earnings and Dividends

Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 16 to the financial statements for further discussion of effects of the new standard.

Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers.

Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ($32 million decrease) or the regulatory liability for income taxes ($16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income.

Entergy implemented ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” effective January 1, 2019. The ASU makes a number of amendments to hedge accounting, most significantly changing the recognition and presentation of highly effective hedges. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by approximately $8 million as of January 1, 2019 for the cumulative effect of the ineffectiveness portion of designated hedges on nuclear power sales.

Entergy implemented ASU 2017-08 “Receivables (Topic 310): Nonrefundable Fees and Other Costs” effective January 1, 2019. The ASU amends the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Entergy implemented this standard using the modified retrospective approach, and
recorded an adjustment decreasing retained earnings and decreasing accumulated other comprehensive loss by approximately $1 million as of January 1, 2019 for the cumulative effect of the amended amortization period.

Entergy Corporation received dividend payments and distributions from subsidiaries totaling $124 million in 2019, $27 million in 2018, and $201 million in 2017.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2019 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)
Implementation of accounting standards
(7,685
)
 
—

 
879

 
(6,806
)
Beginning balance, January 1, 2019

($30,820
)
 

($531,922
)
 

($1,237
)
 

($563,979
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
191,147

 
(93,696
)
 
32,914

 
130,365

Amounts reclassified from accumulated other comprehensive income (loss)
(76,121
)
 
68,546

 
(5,731
)
 
(13,306
)
Net other comprehensive income (loss) for the period
115,026

 
(25,150
)
 
27,183

 
117,059

Ending balance, December 31, 2019

$84,206

 

($557,072
)
 

$25,946

 

($446,920
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the year ended December 31, 2018 by component:
 
Cash flow
hedges
net
unrealized
gain (loss)
 
Pension
and
other
postretirement
liabilities
 

Net
unrealized
investment
gain (loss)
 
Total
Accumulated
Other
Comprehensive
Income (Loss)
 
(In Thousands)
 
 
 
 
 
 
 
 
Ending balance, December 31, 2017

($37,477
)
 

($531,099
)
 

$545,045

 

($23,531
)
Implementation of accounting standards
—

 
—

 
(632,617
)
 
(632,617
)
Beginning balance, January 1, 2018

($37,477
)
 

($531,099
)
 

($87,572
)
 

($656,148
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(31,933
)
 
26,702

 
(46,574
)
 
(51,805
)
Amounts reclassified from accumulated other comprehensive income (loss)
54,031

 
63,441

 
17,803

 
135,275

Net other comprehensive income (loss) for the period
22,098

 
90,143

 
(28,771
)
 
83,470

Reclassification pursuant to ASU 2018-02
(7,756
)
 
(90,966
)
 
114,227

 
15,505

Ending balance, December 31, 2018

($23,135
)
 

($531,922
)
 

($2,116
)
 

($557,173
)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2019:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2019
 

($6,153
)
Other comprehensive income (loss) before reclassifications
 
14,591

Amounts reclassified from accumulated other comprehensive income (loss)
 
(3,876
)
Net other comprehensive income (loss) for the period
 
10,715

Ending balance, December 31, 2019
 

$4,562


    
The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the year ended December 31, 2018:
 
 
Pension and Other
Postretirement Liabilities
 
 
(In Thousands)
 
 
 
Beginning balance, January 1, 2018
 

($46,400
)
Other comprehensive income (loss) before reclassifications
 
52,299

Amounts reclassified from accumulated other comprehensive income (loss)
 
(2,003
)
Net other comprehensive income (loss) for the period
 
50,296

 
 
 
Reclassification pursuant to ASU 2018-02
 

($10,049
)
 
 
 
Ending balance, December 31, 2018
 

($6,153
)

    
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
Cash flow hedges net unrealized gain (loss)
 
 
 
 
 
 
Power contracts
 

$96,549

 

($68,067
)
 
Competitive business operating revenues
Interest rate swaps
 
(194
)
 
(327
)
 
Miscellaneous - net
Total realized gain (loss) on cash flow hedges
 
96,355

 
(68,394
)
 
 
Income taxes
 
(20,234
)
 
14,363

 
Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)
 

$76,121

 

($54,031
)
 
 
 
 
 
 

 
 
Pension and other postretirement liabilities
 
 

 
 

 
 
Amortization of prior-service costs
 

$21,300

 

$21,700

 
(a)
Amortization of loss
 
(83,246
)
 
(99,186
)
 
(a)
Settlement loss
 
(25,155
)
 
(3,207
)
 
(a)
Total
 
(87,101
)
 
(80,693
)
 
 
Income taxes
 
18,555

 
17,252

 
Income taxes
Total amortization and settlement loss (net of tax)
 

($68,546
)
 

($63,441
)
 
 
 
 
 
 

 
 
Net unrealized investment gain (loss)
 
 
 

 
 
Realized gain (loss)
 

$9,069

 

($28,170
)
 
Interest and investment income
Income taxes
 
(3,338
)
 
10,367

 
Income taxes
Total realized investment gain (loss) (net of tax)
 

$5,731

 

($17,803
)
 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$13,306

 

($135,275
)
 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.
    

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy Louisiana for the years ended December 31, 2019 and 2018 are as follows:
 
 
Amounts reclassified from AOCI
 
Income Statement Location
 
 
2019
 
2018
 
 
 
 
(In Thousands)
 
 
 
 
 
 
 
 
 
Pension and other postretirement liabilities
 
 
 
 
 
 
Amortization of prior-service costs
 

$7,349

 

$7,735

 
(a)
Amortization of loss
 
(2,106
)
 
(5,025
)
 
(a)
Total amortization
 
5,243

 
2,710

 
 
Income taxes
 
(1,367
)
 
(707
)
 
Income taxes
Total amortization (net of tax)
 
3,876

 
2,003

 
 
 
 
 
 

 
 
Total reclassifications for the period (net of tax)
 

$3,876

 

$2,003

 
 
(a)
These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 11 to the financial statements for additional details.