EX-99.1 2 a03020991.htm EXHIBIT 99.1 Exhibit


entergylogoa90.gif
Entergy
639 Loyola Avenue
New Orleans, LA 70113

Exhibit 99.1

Date:
May 11, 2020
 
 
 
 
 
 
For Release:
Immediately
 
 
 
 
 
 
Contact:
Neal Kirby (Media)
(504) 576-4238
nkirby@entergy.com
David Borde (Investor Relations)
(504) 576-5668
dborde@entergy.com

Entergy Reports First Quarter Earnings
Company affirms guidance and financial outlooks

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported first quarter 2020 earnings of 59 cents per share on an as-reported basis and $1.14 per share on an adjusted basis (non-GAAP).

“The past few months have presented extraordinary circumstances, and we extend our well-wishes to all affected. We also extend our deepest thanks to everyone working tirelessly to help those in need,” said Entergy Chairman and Chief Executive Officer Leo Denault. “Providing safe, reliable power is essential, especially during times like these; that’s why at Entergy we plan and prepare for the extraordinary, and our response has been effective. We are meeting the needs and expectations of our customers and communities, our major projects remain on track, and our capital plan is unchanged. Our first quarter results were solid, and recent events have not changed our objective to be the premier utility that delivers sustainable value for our stakeholders.”

Table of Contents Page
News Release1
Appendices8
A: Consolidated Results and Adjustments9
B: Earnings Variance Analysis12
C: Utility Financial and Operating Measures14
D: EWC Financial and Operating Measures15
E: Consolidated Financial Measures16
F: Definitions and Abbreviations and Acronyms17
G: Other GAAP to Non-GAAP Reconciliations21
Financial Statements24
Business highlights included the following:
•
Entergy affirms 2020 adjusted EPS guidance of $5.45 to $5.75.
•
The Lake Charles Power Station was placed in service on budget and ahead of schedule.
•
Entergy Texas issued an RFP for a 1,000MW to 1,200MW CCGT and Entergy Louisiana issued an RFP for 250MW of solar resources.




•
Entergy Mississippi received approval for the Sunflower Solar project and Entergy Arkansas received approval for the Searcy Solar project.
•
Entergy Mississippi made its annual formula rate plan filing.
•
Entergy Texas filed for an increase in its distribution cost recovery factor.
•
Indian Point Unit 2 was permanently shutdown.
•
The Entergy Charitable Foundation established the COVID-19 Emergency Relief Fund.


Consolidated Earnings (GAAP and Non-GAAP Measures)
First Quarter 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
 
First Quarter
 
2020
2019
Change
(After-tax, $ in millions)
 
 
 
As-reported earnings
119
255
(136)
Less adjustments
(111)
97
(208)
Adjusted earnings (non-GAAP)
230
158
72
  Estimated weather in billed sales
(50)
(23)
(26)
 
 
 
 
(After-tax, per share in $)
 
 
 
As-reported earnings
0.59
1.32
(0.73)
Less adjustments
(0.55)
0.50
(1.05)
Adjusted earnings (non-GAAP)
1.14
0.82
0.32
  Estimated weather in billed sales
(0.25)
(0.12)
(0.13)
 
 
 
 
Calculations may differ due to rounding

Consolidated Results

For first quarter 2020, the company reported earnings of $119 million, or 59 cents per share, on an as-reported basis, and earnings of $230 million, or $1.14 per share, on an adjusted basis. This compared to first quarter 2019 earnings of $255 million, or $1.32 per share, on an as-reported basis, and earnings of $158 million, or 82 cents per share, on an adjusted basis.

Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly variances by business is provided in Appendix B.

Business Segment Results

Utility

For first quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $320 million, or $1.59 per share, on both an as-reported and an adjusted basis. This compared to first quarter 2019 earnings of $231 million, or $1.20 per share, on both an as-reported basis and an adjusted basis. Drivers for the quarter included:
•
rate activity at E-AR, E-LA, E-MS, and E-TX;
•
a first quarter 2019 reserve at E-AR;
•
higher nuclear insurance refunds, as well as lower fossil and nuclear generation spending;
•
a favorable book-to-tax permanent difference related to stock-based compensation; and
•
an IRS settlement related to Hurricane Isaac Act 55 financing, net of customer sharing (largely offset by higher tax expense from this settlement at P&O).






These drivers were partially offset by:
•
higher pension and benefits expenses;
•
higher depreciation and interest expenses; and
•
lower sales volume, including the net effect of billed and unbilled sales, and the effects of weather.

On a per share basis, first quarter 2020 results reflected higher common shares outstanding.

Appendix C contains additional details on Utility financial and operating measures.

Parent & Other

For first quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(90 million), or (45) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(73 million), or (38) cents per share, on both an as-reported and an adjusted basis in first quarter 2019. The main driver for the quarter was higher income tax expense resulting from the IRS settlement related to Hurricane Isaac Act 55 financing, which largely offsets the benefit from this settlement at the Utility.

On a per share basis, first quarter 2020 results reflected higher common shares outstanding.
 
Entergy Wholesale Commodities

For first quarter 2020, EWC reported a loss attributable to Entergy Corporation of
$(111 million), or (55) cents per share, on an as-reported basis. This compared to first quarter 2019 earnings attributable to Entergy Corporation of $97 million, or 50 cents per share, on an as-reported basis. Drivers for the quarter included:
•
losses on decommissioning trust funds; and
•
lower revenue due to the shutdown of Pilgrim, as well as lower nuclear pricing.

These drivers were partially offset by:
•
lower impairments as compared to a year ago;
•
lower other O&M expense due to the shutdown of Pilgrim, as well as lower severance and retention expense;
•
higher nuclear volume; and
•
an income tax item related to the sale of Vermont Yankee recorded in first quarter 2019.

On a per share basis, first quarter 2020 results reflected higher common shares outstanding.

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

    
Earnings per Share Guidance

Entergy affirmed its 2020 adjusted EPS guidance range of $5.45 to $5.75. See webcast presentation slides for additional details.

The company has provided 2020 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy’s as-reported EPS will be approximately $(1.25)




in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Monday, May 11, 2020, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 5242577, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this news release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through May 18, 2020, by dialing 855-859-2056, conference ID 5242577.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
 
Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR.”

Details regarding Entergy’s results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations.

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

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

Non-GAAP Financial Measures

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

Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments,” including the removal of the Entergy Wholesale Commodities segment in light of the company’s decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.





Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrow balances; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility, and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and an as-reported basis. In each case, the metrics defined as “adjusted” (other than EWC’s adjusted EBITDA) excludes the effect of adjustments as defined above. EWC’s adjusted EBITDA represents EWC’s earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements

In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy’s plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
 
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs




may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected, and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy’s business or operations, and/or other catastrophic events; and (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers.









First Quarter 2020 Earnings Release Appendices and Financial Statements

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

Financial Statements
Financial statements are presented in this section.





A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)
 
First Quarter
 
2020
2019
Change
(After-tax, $ in millions)
 
 
 
Earnings (loss)
 
 
 
Utility
320
231
89
Parent & Other
(90)
(73)
(18)
EWC
(111)
97
(208)
Consolidated
119
255
(136)
 
 
 
 
Less adjustments
 
 
 
Utility
—
—
—
Parent & Other
—
—
—
EWC
(111)
97
(208)
Consolidated
(111)
97
(208)
 
 
 
 
Adjusted earnings (loss) (non-GAAP)
 
 
 
Utility
320
231
89
Parent & Other
(90)
(73)
(18)
EWC
—
—
—
Consolidated
230
158
72
Estimated weather in billed sales
(50)
(23)
(26)
 
 
 
 
Diluted average number of common shares outstanding (in millions)
201
192
 
 
 
 
 
(After-tax, per share in $) (a)
 
 
 
Earnings (loss)
 
 
 
Utility
1.59
1.20
0.39
Parent & Other
(0.45)
(0.38)
(0.07)
EWC
(0.55)
0.50
(1.05)
Consolidated
0.59
1.32
(0.73)
 
 
 
 
Less adjustments
 
Utility
—
—
—
Parent & Other
—
—
—
EWC
(0.55)
0.50
(1.05)
Consolidated
(0.55)
0.50
(1.05)
 
 
 
 
Adjusted earnings (loss) (non-GAAP)
 
 
 
Utility
1.59
1.20
0.39
Parent & Other
(0.45)
(0.38)
(0.07)
EWC
—
—
—
Consolidated
1.14
0.82
0.32
Estimated weather in billed sales
(0.25)
(0.12)
(0.13)
Calculations may differ due to rounding
(a)
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.





See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by business.

Appendix A-2: Consolidated Operating Cash Flow
First Quarter 2020 vs. 2019
($ in millions)
 
First Quarter
 
2020
2019
Change
Utility
603
455
148
Parent & Other
(81)
(78)
(3)
EWC
137
124
13
Consolidated
659
501
158
 
 
 
 
Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to higher collections for fuel and purchased power cost recovery, a lower amount of unprotected excess ADIT returned to customers, higher nuclear insurance refunds, and lower nuclear refueling outage spending at EWC. Unfavorable weather and higher pension contributions partially offset the increase. Intercompany income tax payments also contributed to the line of business variances.

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

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS)
First Quarter 2020 vs. 2019
 
First Quarter
 
2020
2019
Change
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
 
 
 
EWC
 
 
 
Income before income taxes
(141)
163
(304)
Income taxes
(31)
66
(96)
Preferred dividend requirements
1
1
—
Total EWC
(111)
97
(208)
 
 
 
 
Total adjustments
(111)
97
(208)
 
 
 
 
(After-tax, per share in $) (b)
 
 
 
EWC
 
 
 
Total EWC
(0.55)
0.50
(1.05)
 
 
 
 
Total adjustments
(0.55)
0.50
(1.05)
 
 
 
 
Calculations may differ due to rounding
(b)
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.







Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings)
First Quarter 2020 vs. 2019
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
 
First Quarter
 
2020
2019
Change
EWC
 
 
 
Operating revenue
333
434
(101)
Fuel and fuel-related expenses
(20)
(25)
5
Purchased power
(11)
(16)
5
Nuclear refueling outage expenses
(12)
(12)
—
Other O&M
(131)
(189)
58
Asset write-off and impairments
(5)
(74)
69
Decommissioning expense
(50)
(63)
13
Taxes other than income taxes
(20)
(13)
(7)
Depreciation/amortization exp.
(35)
(38)
3
Other income (deductions)-other
(184)
169
(352)
Interest exp. and other charges
(5)
(9)
4
Income taxes
31
(66)
96
Preferred dividend requirements
(1)
(1)
—
Total EWC
(111)
97
(208)
 
 
 
 
Total adjustments (after-tax)
(111)
97
(208)
 
 
 
 
Calculations may differ due to rounding





B: Earnings Variance Analysis
Appendix B provides details of current quarter 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.

Appendix B: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
First Quarter 2020 vs. 2019
(After-tax, per share in $)
 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Adjusted
 
As-Reported
Adjusted
 
As-
Reported
 
As-
Reported
Adjusted
2019 earnings
1.20
1.20
 
(0.38)
(0.38)
 
0.50
 
1.32
0.82
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
0.28
0.28
(e)
—
—
 
(0.37)
(f)
(0.09)
0.28
Nuclear refueling outage expense
—
—
 
—
—
 
—
 
—
—
Other O&M
0.08
0.08
(g)
0.02
0.02
 
0.24
(h)
0.34
0.10
Asset write-offs and impairments
—
—
 
—
—
 
0.28
(i)
0.28
—
Decommissioning expense
(0.02)
(0.02)
 
—
—
 
0.06
(j)
0.04
(0.02)
Taxes other than income taxes
(0.02)
(0.02)
 
—
—
 
(0.03)
 
(0.05)
(0.02)
Depreciation/amortization exp.
(0.18)
(0.18)
(k)
—
—
 
0.01
 
(0.17)
(0.18)
Other income (deductions)-other
(0.03)
(0.03)
 
—
—
 
(1.45)
(l)
(1.48)
(0.03)
Interest exp. and other charges
(0.05)
(0.05)
(m)
0.01
0.01
 
0.02
 
(0.02)
(0.04)
Income taxes-other
0.40
0.40
(n)
(0.12)
(0.12)
(o)
0.17
(p)
0.45
0.28
Preferred dividend requirements
—
—
 
—
—
 
—
 
—
—
Share effect
(0.07)
(0.07)
(q)
0.02
0.02
 
0.02
 
(0.03)
(0.05)
2020 earnings
1.59
1.59
 
(0.45)
(0.45)
 
(0.55)
 
0.59
1.14
 
 
 
 
 
 
 
 
 
 
 

Calculations may differ due to rounding
(c)
Utility operating revenue / regulatory charges and Utility income taxes exclude $30 million in first quarter 2020 and $61 million in first quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings).
(d)
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes-other represents income tax differences other than the tax effect of individual line items.
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis
2020 vs. 2019 ($ EPS)
 
1Q
Volume/weather
(0.04)
Retail electric price
0.33
Reg. provision for E-AR FRP
0.04
Reg. liability for tax sharing
(0.10)
Other
0.05
Total
0.28
(e)
The earnings increase was primarily driven by rate activity from E-AR’s FRP; E-LA’s FRP, including recovery of the J. Wayne Leonard Power Station (formerly St Charles Power Station); E-MS’s FRP; recovery of E-MS’s Choctaw Generating Station; and E-TX’s TCRF and AMI rider. The variance also reflected a first quarter 2019 regulatory reserve at E-AR, as well as higher regulatory credits at E-LA for the difference between asset retirement obligation-related expenses and




trust earnings plus asset retirement obligation-related costs collected in revenue. Partially offsetting was the net effect of volume/weather, as well as a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote n).
(f)
The earnings decrease was due largely to lower revenues from the shutdown of Pilgrim in May 2019, as well as lower capacity and energy prices. These were partially offset by higher energy volume at Indian Point.
(g)
The earnings increase from lower Utility other O&M was due largely to higher nuclear insurance refunds and lower fossil and nuclear generation spending. These were partially offset by higher pension and benefits expenses, as well as higher E-MS storm damage provisions (offset in operating revenue).
(h)
The earnings increase from lower EWC other O&M was due largely to the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense.
(i)
The earnings increase from lower EWC asset write-offs and impairments was due primarily to higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point.
(j)
The earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019.
(k)
The earnings decrease from higher Utility depreciation expense was due primarily to higher plant in service, including J. Wayne Leonard Power Station and Choctaw County Generating Station, as well as higher depreciation rates at E-MS.
(l)
The earnings decrease from lower EWC other income (deductions)-other was due largely to losses on the decommissioning trust fund investments in first quarter 2020 as compared to gains in first quarter 2019.
(m)
The earnings decrease from higher Utility interest expense was due primarily to higher debt balances at E-LA and E-AR.
(n)
The earnings increase from lower Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22million, $20 million greater than first quarter 2019.
(o)
The earnings decrease from higher Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote n).
(p)
The earnings increase from lower EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.
(q)
The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019).






C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provide comparative summaries of Utility operating and financial measures.

Appendix C-1: Utility Operating and Financial Measures
First Quarter 2020 vs. 2019
 
First Quarter
 
2020
2019
%
Change
% Weather Adjusted (r)
GWh billed
 
 
 
 
Residential
8,126
8,471
(4.1)
1.4
Commercial
6,244
6,423
(2.8)
 (2.7)
Governmental
595
601
(1.0)
 (1.5)
Industrial
11,815
11,683
1.1
1.1
Total retail sales
26,780
27,178
(1.5)
0.3
Wholesale
3,117
3,814
(18.3)
 
Total sales
29,897
30,992
(3.5)
 
 
 
 
 
 
Number of electric retail customers
 
 
 
 
Residential
2,504,243
2,485,256
0.8
 
Commercial
356,303
357,950
(0.5)
 
Governmental
17,724
17,814
(0.5)
 
Industrial
44,443
44,429
—
 
Total retail customers
2,922,713
2,905,449
0.6
 
 
 
 
 
 
Other O&M and refueling outage expense per MWh
$20.20
$20.12
0.4
 
 
 
 
 
 

Appendix C-2: Utility Operating Measures
Twelve Months Ended March 31, 2020 vs. 2019
 
Twelve Months Ended March 31
 
2020
2019
%
Change
% Weather Adjusted (r)
GWh billed
 
 
 
 
Residential
35,748
36,291
(1.5)
 (0.8)
Commercial
28,576
29,117
(1.9)
 (2.2)
Governmental
2,573
2,574
—
 (0.4)
Industrial
48,616
48,662
(0.1)
 (0.1)
Total retail sales
115,513
116,644
(1.0)
 (0.8)
 
 
 
 
 
Calculations may differ due to rounding
(r)
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.

On a weather-adjusted basis for first quarter 2020, billed retail sales increased 0.3 percent. Residential billed sales increased 1.4 percent primarily due to more days billed compared to a year ago. Commercial billed sales decreased (2.7) percent driven by the continued impact of energy efficiency as well as billing delays. Industrial billed sales volume increased 1.1 percent driven by continued growth from new/expansion customers, partially offset by lower sales to existing large customers.






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

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2020 vs. 2019
($ in millions)
First Quarter
 
2020
2019
Change
Net income (loss)
(110)
97
(207)
Add back: interest expense
5
9
(4)
Add back: income taxes
(31)
66
(97)
Add back: depreciation and amortization
35
38
(3)
Subtract: interest and investment income
(172)
181
(353)
Add back: decommissioning expense
50
63
(13)
Adjusted EBITDA (non-GAAP)
122
92
30
 
 
 
 
Calculations may differ due to rounding

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

Appendix D-2: EWC Operational and Financial Measures
First Quarter 2020 vs. 2019
 
First Quarter
 
2020
2019
% Change
Owned capacity (MW) (s)
3,274
3,962
(17.4)
GWh billed
6,757
7,203
(6.2)
 
 
 
 
EWC Nuclear Fleet
 
 
 
Capacity factor
99%
85%
16.5
GWh billed
6,259
6,690
(6.5)
Production cost per MWh
$15.42
$20.04
(23.1)
Average energy/capacity revenue per MWh
$48.44
$57.99
(16.5)
Refueling outage days
 
 
 
Indian Point 3
—
21
 
 
 
 
 
Calculations may differ due to rounding
(s)
First quarter 2020 excludes Pilgrim (688MW), which was shut down May 31, 2019 and sold August 26, 2019.

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






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

Appendix E: GAAP and Non-GAAP Financial Measures
First Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
 
 
For 12 months ending March 31
2020
2019
Change
GAAP Measures
 
 
 
As-reported ROIC
5.6%
5.6%
0.0%
As-reported ROE
11.5%
11.4%
0.1%
 
 
 
 
Non-GAAP Financial Measures
 
 
 
Adjusted ROIC
5.6%
5.5%
0.1%
Adjusted ROE
11.8%
11.5%
0.3%
 
 
 
 
As of March 31 ($ in millions, except where noted)
2020
2019
Change
GAAP Measures
 
 
 
Cash and cash equivalents
1,464
983
480
Available revolver capacity
3,348
3,950
(602)
Commercial paper
1,942
1,942
(1)
Total debt
21,465
19,325
2,140
Securitization debt
271
398
(127)
Debt to capital
67.2%
67.8%
(0.6%)
Off-balance sheet liabilities:
 
 
 
  Debt of joint ventures - Entergy’s share
53
59
(7)
Total off-balance sheet liabilities
53
59
(7)
 
 
 
 
Storm escrow balances
373
405
(33)
 
 
 
 
Non-GAAP Financial Measures ($ in millions, except where noted)
 
 
 
Debt to capital, excluding securitization debt
66.9%
67.3%
(0.4%)
Gross liquidity
4,811
4,933
(122)
Net liquidity
2,870
2,991
(121)
Net liquidity, including storm escrow balances
3,242
3,396
(154)
Net debt to net capital, excluding securitization debt
65.3%
66.1%
(0.8%)
Parent debt to total debt, excluding securitization debt
22.2%
21.7%
0.5%
FFO to debt, excluding securitization debt
14.3%
11.1%
3.1%
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
16.0%
15.0%
1.0%
 
 
 
 
Calculations may differ due to rounding





F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix F-1: Definitions
Utility Financial and Operating Measures
GWh billed
Total number of GWh billed to retail and wholesale customers
Other O&M and refueling outage expense per MWh
Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales
Number of electric retail customers
Average number of electric customers over the period
 
 
EWC Financial and Operating Measures
Adjusted EBITDA (non-GAAP)
Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense
Average revenue under contract per kW-month (applies to capacity contracts only)
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Average revenue per MWh on contracted volumes
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs
Bundled capacity and energy contracts
A contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity contracts
A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO
Capacity factor
Normalized percentage of the period that the nuclear plants generate power
Expected sold and market total revenue per MWh
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA
 
 





Appendix F-1: Definitions (continued)
EWC Financial and Operating Measures (continued)
GWh billed
Total number of GWh billed to customers and financially-settled instruments
Owned capacity (MW)
Installed capacity owned by EWC
Percent of capacity sold forward
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Percent of planned generation under contract
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts, or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract
Planned net MW in operation
Amount of installed capacity to generate power and/or sell capacity, reflecting the shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022)
Planned TWh of generation
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, reflecting the shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022)
Production cost per MWh
Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
Refueling outage days
Number of days lost for a scheduled refueling and maintenance outage during the period
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee
 
 
Financial Measures - GAAP
As-reported ROE
12-months rolling net income attributable to Entergy Corporation divided by average common equity
As-reported ROIC
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Debt of joint ventures - Entergy’s share
Entergy’s share of debt issued by business joint ventures at EWC
Debt to capital
Total debt divided by total capitalization
Leases - Entergy’s share
Operating leases held by subsidiaries capitalized at implicit interest rate
Available revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt
Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debt
Sum of short-term and long-term debt, notes payable and commercial paper, and capital leases on the balance sheet
 
 






Appendix F-1: Definitions (continued)
Financial Measures - Non-GAAP
Adjusted EPS
As-reported EPS excluding adjustments
Adjusted ROE
12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity
Adjusted ROIC
12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Adjustments
Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items
Debt to capital, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
FFO
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, and other working capital accounts), and securitization regulatory charges
FFO to debt, excluding securitization debt
12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
12-months rolling adjusted FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt
Gross liquidity
Sum of cash and available revolver capacity
Net debt to net capital, excluding securitization debt
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net liquidity
Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrow reserves
Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
Parent debt to total debt, excluding securitization debt
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt
 
 







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

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

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

ENP
EPS
ETR
EWC
FERC
FFO
FRP
GAAP
Grand Gulf or GGNS
IIRR-G
Indian Point 1

Indian Point 2
or IP2
Indian Point 3
or IP3
IPEC
ISES 2

IRS
Accumulated deferred income taxes
Allowance for borrowed funds used during construction
Administrative law judge
Advanced metering infrastructure
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)
Arkansas Public Service Commission
Asset retirement obligation
Basis points
Combined cycle gas turbine
Certificate of convenience and necessity
Council of the City of New Orleans
Choctaw County Generating Station (CCGT)
Commercial operation date
Simple cycle combustion turbine
Construction work in progress
Distribution cost recovery factor
U.S. Department of Energy
Entergy Arkansas, LLC
Entergy Louisiana, LLC
Entergy Mississippi, LLC
Entergy New Orleans, LLC
Entergy Texas, Inc.
Earnings before interest, income taxes, and depreciation and amortization
Entergy Nuclear Palisades, LLC
Earnings per share
Entergy Corporation
Entergy Wholesale Commodities
Federal Energy Regulatory Commission
Funds from operations
Formula rate plan
U.S. generally accepted accounting principles
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI
Infrastructure investment recovery rider - gas
Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)
Indian Point Energy Center Unit 2 (nuclear) (shut down 4/30/20)
Indian Point Energy Center Unit 3 (nuclear)

Indian Point Energy Center (nuclear)
Unit 2 of Independence Steam Electric Station (coal)
Internal Revenue Service
ISO
LCPS
LPSC
LTM
MCPS
MISO
Moody’s
MPSC
MTEP
Nelson 6
NDT
NOPS
NRC
NY PSC
NYISO
NYSE
OCF
OpCo
OPEB
Other O&M

P&O
Palisades
Pilgrim

PMR
PPA

PSC
PUCT
RICE
RFP
ROE
ROIC
RS Cogen
RSP
S&P
SEC
SERI
TCRF
UPSA
Vermont
Yankee
WACC
WPEC
Independent system operator
Lake Charles Power Station (CCGT)
Louisiana Public Service Commission
Last twelve months
Montgomery County Power Station (CCGT)
Midcontinent Independent System Operator, Inc.
Moody’s Investor Service
Mississippi Public Service Commission
MISO Transmission Expansion Plan
Unit 6 of Roy S. Nelson plant (coal)
Nuclear decommissioning trust
New Orleans Power Station
U.S. Nuclear Regulatory Commission
New York Public Service Commission
New York Independent System Operator, Inc.
New York Stock Exchange
Net cash flow provided by operating activities
Utility operating company
Other post-employment benefits
Other non-fuel operation and maintenance expense
Parent & Other
Palisades Power Plant (nuclear)
Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019)
Performance Management Rider
Power purchase agreement or purchased power agreement
Public service commission
Public Utility Commission of Texas
Reciprocating internal combustion engine
Request for proposals
Return on equity
Return on invested capital
RS Cogen facility (CCGT cogeneration)
Rate Stabilization Plan (E-LA Gas)
Standard & Poor’s
U.S. Securities and Exchange Commission
System Energy Resources, Inc.
Transmission cost recovery factor
Unit Power Sales Agreement
Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)
Weighted-average cost of capital
Washington Parish Energy Center






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

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
($ in millions except where noted)
 
First Quarter
 
 
2020
2019
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months
(A)
1,105
970
Preferred dividends
 
17
15
Tax-effected interest expense
 
559
539
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense
(B)
1,681
1,524
 
 
 
 
Adjustments in prior three quarters
 
80
(103)
Adjustments in current quarter
 
(111)
97
  Total adjustments, last 12 months
  
(C)
(31)
(6)
EWC preferred dividends and tax-effected interest expense, rolling 12 months
 
22
30
 
 
 
 
Total adjustments, adding back EWC preferred dividends and tax-effected interest expense (non-GAAP)
(D)
(9)
24
 
 
 
 
Adjusted earnings, rolling 12 months (non-GAAP)
(A-C)
1,136
976
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP)
(B-D)
1,690
1,501
 
 
 
 
Average invested capital
(E)
30,229
27,184
 
 
 
 
Average common equity
(F)
9,597
8,473
 
 
 
 
As-reported ROIC
(B/E)
5.6%
5.6%
Adjusted ROIC (non-GAAP)
[(B-D)/E]
5.6%
5.5%
As-reported ROE
(A/F)
11.5%
11.4%
Adjusted ROE (non-GAAP)
[(A-C)/F]
11.8%
11.5%
 
 
 
 
Calculations may differ due to rounding





Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrow balances
($ in millions except where noted)
 
First Quarter
 
 
2020
2019
Total debt
(A)
21,465
19,325
Less securitization debt
(B)
271
398
Total debt, excluding securitization debt
(C)
21,193
18,927
Less cash and cash equivalents
(D)
1,464
983
Net debt, excluding securitization debt
(E)
19,730
17,944
 
 
 
 
Commercial paper
(F)
1,942
1,942
 
 
 
 
Total capitalization
(G)
31,943
28,515
Less securitization debt
(B)
271
398
Total capitalization, excluding securitization debt
(H)
31,672
28,117
Less cash and cash equivalents
(D)
1,464
983
Net capital, excluding securitization debt
(I)
30,208
27,134
 
 
 
 
Debt to capital
(A/G)
67.2%
67.8%
Debt to capital, excluding securitization debt (non-GAAP)
(C/H)
66.9%
67.3%
Net debt to net capital, excluding securitization debt (non-GAAP)
(E/I)
65.3%
66.1%
 
 
 
 
Available revolver capacity
(J)
3,348
3,950
 
 
 
 
Storm escrow balances
(K)
373
405
 
 
 
 
Gross liquidity (non-GAAP)
(D+J)
4,811
4,933
Net liquidity (non-GAAP)
(D+J-F)
2,870
2,991
Net liquidity, including storm escrow balances (non-GAAP)
(D+J-F+K)
3,242
3,396
 
 
 
 
Entergy Corporation notes:
 
 
 
Due September 2020
 
450
450
Due July 2022
 
650
650
Due September 2026
 
750
750
Total parent long-term debt
(L)
1,850
1,850
Revolver draw
(M)
922
320
Unamortized debt issuance costs and discounts
(N)
(8)
(9)
Total parent debt
(F+L+M+N)
4,706
4,103
 
 
 
 
Parent debt to total debt, excluding securitization debt (non-GAAP)
[(F+L+M+N)/C]
22.2%
21.7%
 
 
 
 
Calculations may differ due to rounding






Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
($ in millions except where noted)
 
First Quarter
 
 
2020
2019
Total debt
(A)
21,465
19,325
Less securitization debt
(B)
271
398
Total debt, excluding securitization debt
(C)
21,193
18,927
 
 
 
 
Net cash flow provided by operating activities, rolling 12 months
(D)
2,974
2,329
 
 
 
 
AFUDC - borrowed funds, rolling 12 months
(E)
(63)
(65)
 
 
 
 
Working capital items in net cash flow provided by operating activities (rolling 12 months):
 
 
 
Receivables
 
(71)
7
Fuel inventory
 
(39)
58
Accounts payable
 
(136)
103
Taxes accrued
 
(21)
51
Interest accrued
 
17
(5)
Other working capital accounts
 
17
(178)
Securitization regulatory charges
 
122
121
Total
(F)
(111)
157
 
 
 
 
FFO, rolling 12 months (non-GAAP)
(G)=(D+E-F)
3,023
2,107
 
 
 
 
FFO to debt, excluding securitization debt (non-GAAP)
(G/C)
14.3%
11.1%
 
 
 
 
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax)
(H)
236
692
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax)
(I)
141
43
 
 
 
 
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP)
[(G+H+I)/(C)]
16.0%
15.0%
 
 
 
 
Calculations may differ due to rounding





















Financial Statements

Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
March 31, 2020
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
43,837

 
$
229,300

 
$
10,354

 
$
283,491

    Temporary cash investments
 
954,499

 
5,860

 
219,983

 
1,180,342

     Total cash and cash equivalents
 
998,336

 
235,160

 
230,337

 
1,463,833

Notes receivable
 
—

 
(514,116
)
 
514,116

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
532,206

 
—

 
70,072

 
602,278

   Allowance for doubtful accounts
 
(8,521
)
 
—

 
—

 
(8,521
)
   Associated companies
 
11,437

 
(23,020
)
 
11,583

 
—

   Other
 
104,124

 
606

 
7,638

 
112,368

   Accrued unbilled revenues
 
369,948

 
—

 
—

 
369,948

     Total accounts receivable
 
1,009,194

 
(22,414
)
 
89,293

 
1,076,073

Fuel inventory - at average cost
 
154,302

 
—

 
6,563

 
160,865

Materials and supplies - at average cost
 
806,299

 
—

 
31,556

 
837,855

Deferred nuclear refueling outage costs
 
140,674

 
—

 
26,450

 
167,124

Prepayments and other
 
170,412

 
(16,499
)
 
114,288

 
268,201

TOTAL
 
3,279,217

 
(317,869
)
 
1,012,603

 
3,973,951

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,491,018

 
(1,491,104
)
 
86

 
—

Decommissioning trust funds
 
3,280,341

 
—

 
2,497,944

 
5,778,285

Non-utility property - at cost (less accumulated depreciation)
321,631

 
(6
)
 
13,689

 
335,314

Other
 
452,903

 
1,212

 
6,454

 
460,569

TOTAL
 
5,545,893

 
(1,489,898
)
 
2,518,173

 
6,574,168

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
54,551,227

 
10,634

 
962,442

 
55,524,303

Natural gas
 
553,323

 
—

 
—

 
553,323

Construction work in progress
 
2,455,645

 
257

 
13,228

 
2,469,130

Nuclear fuel
 
595,236

 
—

 
61,980

 
657,216

TOTAL PROPERTY, PLANT, AND EQUIPMENT
 
58,155,431

 
10,891

 
1,037,650

 
59,203,972

Less - accumulated depreciation and amortization
 
22,617,341

 
2,535

 
802,975

 
23,422,851

PROPERTY, PLANT, AND EQUIPMENT - NET
 
35,538,090

 
8,356

 
234,675

 
35,781,121

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Other regulatory assets
 
5,192,780

 
—

 
—

 
5,192,780

    Deferred fuel costs
 
240,024

 
—

 
—

 
240,024

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
71,736

 
1,022

 
3,922

 
76,680

Other
 
179,822

 
10,218

 
149,093

 
339,133

TOTAL
 
6,058,461

 
11,240

 
156,088

 
6,225,789

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
50,421,661

 
$
(1,788,171
)
 
$
3,921,539

 
$
52,555,029

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 





Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
March 31, 2020
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
780,015

 
$
450,000

 
$
—

 
$
1,230,015

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Other
 
—

 
1,941,816

 
—

 
1,941,816

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
10,944

 
(17,092
)
 
6,148

 
—

  Other
 
1,297,159

 
216

 
205,017

 
1,502,392

Customer deposits
 
408,803

 
—

 
—

 
408,803

Taxes accrued
 
225,668

 
23,094

 
(59,548
)
 
189,214

Interest accrued
 
179,480

 
8,802

 
1,056

 
189,338

Deferred fuel costs
 
228,379

 
—

 
—

 
228,379

Pension and other postretirement liabilities
 
48,244

 
—

 
13,885

 
62,129

Current portion of unprotected excess accumulated deferred
 
 
 
 
 
 
 
      income taxes
 
64,339

 
 
 
 
 
64,339

Other
 
180,704

 
1,659

 
19,151

 
201,514

TOTAL
 
3,423,735

 
2,408,495

 
185,709

 
6,017,939

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
5,913,361

 
(392,073
)
 
(1,136,794
)
 
4,384,494

Accumulated deferred investment tax credits
 
205,041

 
—

 
—

 
205,041

Regulatory liability for income taxes - net
 
1,600,189

 
—

 
—

 
1,600,189

Other regulatory liabilities
 
1,555,188

 
—

 
—

 
1,555,188

Decommissioning and retirement cost liabilities
 
3,738,604

 
—

 
2,512,347

 
6,250,951

Accumulated provisions
 
497,877

 
—

 
322

 
498,199

Pension and other postretirement liabilities
 
2,069,403

 
—

 
619,846

 
2,689,249

Long-term debt
 
15,775,121

 
2,314,407

 
139,000

 
18,228,528

Other
 
1,032,558

 
(435,306
)
 
49,647

 
646,899

TOTAL
 
32,387,342

 
1,487,028

 
2,184,368

 
36,058,738

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
195,136

 
—

 
24,249

 
219,385

 
 
 
 
 
 
 
 
 
EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
issued 270,035,180 shares in 2020
 
1,973,748

 
(2,172,151
)
 
201,103

 
2,700

  Paid-in capital
 
4,314,748

 
731,087

 
1,464,848

 
6,510,683

  Retained earnings
 
8,288,415

 
717,940

 
183,786

 
9,190,141

  Accumulated other comprehensive income loss
 
(76,463
)
 
—

 
(322,524
)
 
(398,987
)
Less - treasury stock, at cost (69,874,430 shares in 2020)
 
120,000

 
4,960,570

 
—

 
5,080,570

TOTAL COMMON SHAREHOLDERS' EQUITY
 
14,380,448

 
(5,683,694
)
 
1,527,213

 
10,223,967

Subsidiaries' preferred stock without sinking fund
 
35,000

 
—

 
—

 
35,000

TOTAL
 
14,415,448

 
(5,683,694
)
 
1,527,213

 
10,258,967

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
50,421,661

 
$
(1,788,171
)
 
$
3,921,539

 
$
52,555,029

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
 Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
28,010

 
$
4,858

 
$
1,374

 
$
34,242

    Temporary cash investments
 
173,613

 
10,192

 
207,675

 
391,480

     Total cash and cash equivalents
 
201,623

 
15,050

 
209,049

 
425,722

Notes receivable
 
—

 
(514,116
)
 
514,116

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
512,228

 
—

 
83,281

 
595,509

   Allowance for doubtful accounts
 
(7,404
)
 
—

 
—

 
(7,404
)
   Associated companies
 
20,481

 
(25,572
)
 
5,091

 
—

   Other
 
210,452

 
817

 
8,601

 
219,870

   Accrued unbilled revenues
 
400,617

 
—

 
—

 
400,617

     Total accounts receivable
 
1,136,374

 
(24,755
)
 
96,973

 
1,208,592

Deferred fuel costs
 
—

 
—

 
—

 
—

Fuel inventory - at average cost
 
140,010

 
—

 
5,466

 
145,476

Materials and supplies - at average cost
 
792,192

 
—

 
32,797

 
824,989

Deferred nuclear refueling outage costs
 
120,110

 
—

 
37,458

 
157,568

Prepayments and other
 
171,874

 
(16,346
)
 
128,117

 
283,645

TOTAL
 
2,562,183

 
(540,167
)
 
1,023,976

 
3,045,992

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,468,991

 
(1,469,077
)
 
86

 
—

Decommissioning trust funds
 
3,719,193

 
—

 
2,684,837

 
6,404,030

Non-utility property - at cost (less accumulated depreciation)
319,504

 
(5
)
 
13,365

 
332,864

Other
 
492,245

 
—

 
4,207

 
496,452

TOTAL
 
5,999,933

 
(1,469,082
)
 
2,702,495

 
7,233,346

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
53,298,795

 
10,633

 
962,039

 
54,271,467

Natural gas
 
547,110

 
—

 
—

 
547,110

Construction work in progress
 
2,813,416

 
245

 
9,630

 
2,823,291

Nuclear fuel
 
612,900

 
—

 
64,281

 
677,181

TOTAL PROPERTY, PLANT, AND EQUIPMENT
 
57,272,221

 
10,878

 
1,035,950

 
58,319,049

Less - accumulated depreciation and amortization
 
22,364,188

 
2,044

 
770,124

 
23,136,356

PROPERTY, PLANT, AND EQUIPMENT - NET
 
34,908,033

 
8,834

 
265,826

 
35,182,693

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

 
—

 
—

 
—

    Other regulatory assets
 
5,292,055

 
—

 
—

 
5,292,055

    Deferred fuel costs
 
239,892

 
—

 
—

 
239,892

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
59,425

 
1,022

 
4,014

 
64,461

Other
 
122,044

 
10,680

 
155,577

 
288,301

TOTAL
 
6,087,515

 
11,702

 
162,664

 
6,261,881

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
49,557,664

 
$
(1,988,713
)
 
$
4,154,961

 
$
51,723,912

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 





Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
 Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
345,012

 
$
450,000

 
$
—

 
$
795,012

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Other
 
—

 
1,946,727

 
—

 
1,946,727

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
34,378

 
(48,342
)
 
13,964

 
—

  Other
 
1,303,705

 
60

 
196,096

 
1,499,861

Customer deposits
 
409,171

 
—

 
—

 
409,171

Taxes accrued
 
261,125

 
(957
)
 
(26,713
)
 
233,455

Interest accrued
 
167,332

 
26,649

 
148

 
194,129

Deferred fuel costs
 
197,687

 
—

 
—

 
197,687

Pension and other postretirement liabilities
 
49,348

 
—

 
16,836

 
66,184

Current portion of unprotected excess accumulated deferred
 
 
 
 
 
 
 
      income taxes
 
76,457

 
 
 
 
 
76,457

Other
 
180,327

 
1,837

 
19,616

 
201,780

TOTAL
 
3,024,542

 
2,375,974

 
219,947

 
5,620,463

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
5,899,201

 
(374,582
)
 
(1,123,429
)
 
4,401,190

Accumulated deferred investment tax credits
 
207,113

 
—

 
—

 
207,113

Regulatory liability for income taxes - net
 
1,633,159

 
—

 
—

 
1,633,159

Other regulatory liabilities
 
1,961,005

 
—

 
—

 
1,961,005

Decommissioning and retirement cost liabilities
 
3,692,574

 
—

 
2,466,638

 
6,159,212

Accumulated provisions
 
533,706

 
—

 
322

 
534,028

Pension and other postretirement liabilities
 
2,141,381

 
—

 
656,884

 
2,798,265

Long-term debt
 
15,107,596

 
1,832,047

 
139,000

 
17,078,643

Other
 
1,243,775

 
(446,069
)
 
55,043

 
852,749

TOTAL
 
32,419,510

 
1,011,396

 
2,194,458

 
35,625,364

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
195,161

 
—

 
24,249

 
219,410

 
 
 
 
 
 
 
 
 
EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
issued 270,035,180 shares in 2019
 
1,973,748

 
(2,172,151
)
 
201,103

 
2,700

  Paid-in capital
 
4,117,727

 
882,286

 
1,564,423

 
6,564,436

  Retained earnings
 
8,014,497

 
947,932

 
295,180

 
9,257,609

  Accumulated other comprehensive income loss
 
(102,521
)
 
—

 
(344,399
)
 
(446,920
)
Less - treasury stock, at cost (70,886,400 shares in 2019)
 
120,000

 
5,034,150

 
—

 
5,154,150

TOTAL COMMON SHAREHOLDERS' EQUITY
 
13,883,451

 
(5,376,083
)
 
1,716,307

 
10,223,675

Subsidiaries' preferred stock without sinking fund
 
35,000

 
—

 
—

 
35,000

TOTAL
 
13,918,451

 
(5,376,083
)
 
1,716,307

 
10,258,675

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
49,557,664

 
$
(1,988,713
)
 
$
4,154,961

 
$
51,723,912

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 






Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,050,653

 
$
(15
)
 
$
—

 
$
2,050,638

     Natural gas
 
43,976

 
—

 
—

 
43,976

     Competitive businesses
 
—

 
16

 
332,549

 
332,565

                         Total
 
2,094,629

 
1

 
332,549

 
2,427,179

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
377,166

 
(10
)
 
20,247

 
397,403

          Purchased power
 
205,914

 
10

 
10,690

 
216,614

          Nuclear refueling outage expenses
 
38,149

 
—

 
12,069

 
50,218

          Other operation and maintenance
 
565,720

 
5,373

 
130,991

 
702,084

     Asset write-offs, impairments, and related charges
 
—

 
—

 
5,095

 
5,095

     Decommissioning
 
43,400

 
—

 
50,284

 
93,684

     Taxes other than income taxes
 
150,191

 
26

 
20,077

 
170,294

     Depreciation and amortization
 
364,050

 
748

 
34,912

 
399,710

     Other regulatory credits
 
(7,679
)
 
—

 
—

 
(7,679
)
                         Total
 
1,736,911

 
6,147

 
284,365

 
2,027,423

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
357,718

 
(6,146
)
 
48,184

 
399,756

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
35,953

 
—

 
—

 
35,953

     Interest and investment income (loss)
 
(6,131
)
 
(38,875
)
 
(171,847
)
 
(216,853
)
     Miscellaneous - net
 
37,302

 
(2,045
)
 
(11,868
)
 
23,389

                          Total
 
67,124

 
(40,920
)
 
(183,715
)
 
(157,511
)
 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
169,386

 
30,766

 
5,437

 
205,589

     Allowance for borrowed funds used during construction
 
(15,444
)
 
—

 
—

 
(15,444
)
                         Total
 
153,942

 
30,766

 
5,437

 
190,145

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
270,900

 
(77,832
)
 
(140,968
)
 
52,100

 
 
 
 
 
 
 
 
 
Income taxes
 
(52,949
)
 
12,295

 
(30,540
)
 
(71,194
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
323,849

 
(90,127
)
 
(110,428
)
 
123,294

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
4,033

 
—

 
547

 
4,580

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
319,816

 
$
(90,127
)
 
$
(110,975
)
 
$
118,714

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$1.60

 
($0.45)

 
($0.56)

 
$0.59

   DILUTED
 
$1.59

 
($0.45)

 
($0.55)

 
$0.59

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
199,790,016

   DILUTED
 
 
 
 
 
 
 
200,901,349

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,121,034

 
$
(10
)
 
$
—

 
$
2,121,024

     Natural gas
 
54,948

 
—

 
—

 
54,948

     Competitive businesses
 
—

 
—

 
433,612

 
433,612

                         Total
 
2,175,982

 
(10
)
 
433,612

 
2,609,584

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
453,130

 
(10
)
 
25,210

 
478,330

          Purchased power
 
323,724

 
10

 
15,773

 
339,507

          Nuclear refueling outage expenses
 
38,243

 
—

 
12,198

 
50,441

          Other operation and maintenance
 
585,369

 
9,041

 
188,641

 
783,051

     Asset write-offs, impairments and related charges
 
—

 
—

 
73,979

 
73,979

     Decommissioning
 
38,724

 
—

 
63,395

 
102,119

     Taxes other than income taxes
 
145,725

 
114

 
12,736

 
158,575

     Depreciation and amortization
 
318,565

 
671

 
38,038

 
357,274

     Other regulatory credits
 
(16,946
)
 
—

 
—

 
(16,946
)
                         Total
 
1,886,534

 
9,826

 
429,970

 
2,326,330

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
289,448

 
(9,836
)
 
3,642

 
283,254

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
38,216

 
—

 
—

 
38,216

     Interest and investment income
 
86,279

 
(39,774
)
 
181,644

 
228,149

     Miscellaneous - net
 
(49,404
)
 
(2,138
)
 
(13,116
)
 
(64,658
)
                          Total
 
75,091

 
(41,912
)
 
168,528

 
201,707

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
159,405

 
32,405

 
9,183

 
200,993

     Allowance for borrowed funds used during construction
 
(17,449
)
 
—

 
—

 
(17,449
)
                         Total
 
141,956

 
32,405

 
9,183

 
183,544

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
222,583

 
(84,153
)
 
162,987

 
301,417

 
 
 
 
 
 
 
 
 
Income taxes
 
(11,564
)
 
(11,573
)
 
65,908

 
42,771

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
234,147

 
(72,580
)
 
97,079

 
258,646

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
3,562

 
—

 
547

 
4,109

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
230,585

 
$
(72,580
)
 
$
96,532

 
$
254,537

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$1.21

 
($0.38)

 
$0.51

 
$1.34

   DILUTED
 
$1.20

 
($0.38)

 
$0.50

 
$1.32

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
189,575,187

   DILUTED
 
 
 
 
 
 
 
192,234,191

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended March 31, 2020
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,359,651

 
$
(57
)
 
$
—

 
$
9,359,594

     Natural gas
 
142,982

 
—

 
—

 
142,982

     Competitive businesses
 
—

 
37

 
1,193,655

 
1,193,692

                         Total
 
9,502,633

 
(20
)
 
1,193,655

 
10,696,268

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
1,855,514

 
(52
)
 
93,249

 
1,948,711

          Purchased power
 
1,016,383

 
52

 
53,532

 
1,069,967

          Nuclear refueling outage expenses
 
156,221

 
—

 
48,483

 
204,704

          Other operation and maintenance
 
2,542,919

 
28,499

 
619,996

 
3,191,414

     Asset write-offs, impairments and related charges
 
—

 
—

 
221,144

 
221,144

     Decommissioning
 
168,943

 
—

 
223,423

 
392,366

     Taxes other than income taxes
 
587,277

 
545

 
67,642

 
655,464

     Depreciation and amortization
 
1,374,385

 
3,021

 
145,045

 
1,522,451

     Other regulatory credits
 
(16,952
)
 
—

 
—

 
(16,952
)
                         Total
 
7,684,690

 
32,065

 
1,472,514

 
9,189,269

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
1,817,943

 
(32,085
)
 
(278,859
)
 
1,506,999

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
142,711

 
—

 
—

 
142,711

     Interest and investment income
 
197,160

 
(155,395
)
 
61,144

 
102,909

     Miscellaneous - net
 
(62,839
)
 
(28,690
)
 
(72,961
)
 
(164,490
)
                          Total
 
277,032

 
(184,085
)
 
(11,817
)
 
81,130

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
664,334

 
121,942

 
25,703

 
811,979

     Allowance for borrowed funds used during construction
 
(62,952
)
 
—

 
—

 
(62,952
)
                         Total
 
601,382

 
121,942

 
25,703

 
749,027

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
1,493,593

 
(338,112
)
 
(316,379
)
 
839,102

 
 
 
 
 
 
 
 
 
Income taxes
 
(21,751
)
 
(4,296
)
 
(257,742
)
 
(283,789
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
1,515,344

 
(333,816
)
 
(58,637
)
 
1,122,891

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
15,300

 
—

 
2,188

 
17,488

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
1,500,044

 
$
(333,816
)
 
$
(60,825
)
 
$
1,105,403

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$7.59

 
($1.69)

 
($0.31)

 
$5.59

   DILUTED
 
$7.53

 
($1.67)

 
($0.31)

 
$5.55

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
197,720,253

   DILUTED
 
 
 
 
 
 
 
199,251,525

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended March 31, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,256,973

 
$
(100
)
 
$
—

 
$
9,256,873

     Natural gas
 
154,689

 
—

 
—

 
154,689

     Competitive businesses
 
—

 
—

 
1,483,593

 
1,483,593

                         Total
 
9,411,662

 
(100
)
 
1,483,593

 
10,895,155

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
2,100,411

 
(100
)
 
82,516

 
2,182,827

          Purchased power
 
1,488,206

 
100

 
113,977

 
1,602,283

          Nuclear refueling outage expenses
 
148,025

 
—

 
13,482

 
161,507

          Other operation and maintenance
 
2,498,733

 
41,546

 
805,584

 
3,345,863

     Asset write-offs, impairments and related charges
 
—

 
—

 
533,376

 
533,376

     Decommissioning
 
152,083

 
—

 
244,144

 
396,227

     Taxes other than income taxes
 
559,794

 
951

 
74,564

 
635,309

     Depreciation and amortization
 
1,228,340

 
1,574

 
149,737

 
1,379,651

     Other regulatory charges
 
241,157

 
—

 
—

 
241,157

                         Total
 
8,416,749

 
44,071

 
2,017,380

 
10,478,200

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
994,913

 
(44,171
)
 
(533,787
)
 
416,955

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
139,475

 
—

 
—

 
139,475

     Interest and investment income
 
233,411

 
(155,815
)
 
197,547

 
275,143

     Miscellaneous - net
 
(94,298
)
 
(11,789
)
 
(56,969
)
 
(163,056
)
                          Total
 
278,588

 
(167,604
)
 
140,578

 
251,562

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
623,727

 
128,052

 
34,613

 
786,392

     Allowance for borrowed funds used during construction
 
(65,158
)
 
—

 
—

 
(65,158
)
                         Total
 
558,569

 
128,052

 
34,613

 
721,234

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
714,932

 
(339,827
)
 
(427,822
)
 
(52,717
)
 
 
 
 
 
 
 
 
 
Income taxes
 
(796,336
)
 
(39,343
)
 
(202,039
)
 
(1,037,718
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
1,511,268

 
(300,484
)
 
(225,783
)
 
985,001

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
12,376

 
—

 
2,188

 
14,564

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
1,498,892

 
$
(300,484
)
 
$
(227,971
)
 
$
970,437

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$8.17

 
($1.64)

 
($1.24)

 
$5.29

   DILUTED
 
$8.06

 
($1.61)

 
($1.23)

 
$5.22

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
183,596,132

   DILUTED
 
 
 
 
 
 
 
186,009,438

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 





Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Twelve Months Ended March 31, 2020 vs. 2019
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2020
 
2019
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
1,122,891

 
$
985,001

 
$
137,890

Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
2,220,685

 
2,045,598

 
175,087

  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
57,661

 
(256,571
)
 
314,232

  Asset write-offs, impairments and related charges
 
206,178

 
491,401

 
(285,223
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(70,567
)
 
7,093

 
(77,660
)
     Fuel inventory
 
(39,161
)
 
57,699

 
(96,860
)
     Accounts payable
 
(136,012
)
 
102,556

 
(238,568
)
     Taxes accrued
 
(20,942
)
 
51,490

 
(72,432
)
     Interest accrued
 
16,692

 
(5,315
)
 
22,007

     Deferred fuel costs
 
182,505

 
70,610

 
111,895

     Other working capital accounts
 
17,150

 
(178,185
)
 
195,335

  Changes in provisions for estimated losses
 
(29,635
)
 
38,682

 
(68,317
)
  Changes in other regulatory assets
 
(284,092
)
 
(57,348
)
 
(226,744
)
  Changes in other regulatory liabilities
 
(596,610
)
 
(641,019
)
 
44,409

  Changes in pensions and other postretirement liabilities
 
81,766

 
(215,236
)
 
297,002

  Other
 
245,989

 
(167,413
)
 
413,402

Net cash flow provided by operating activities
 
2,974,498

 
2,329,043

 
645,455

  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(4,289,646
)
 
(3,962,160
)
 
(327,486
)
Allowance for equity funds used during construction
 
142,493

 
140,005

 
2,488

Nuclear fuel purchases
 
(175,255
)
 
(291,382
)
 
116,127

Payment for purchase of plant or assets
 
(330,105
)
 
(26,623
)
 
(303,482
)
Proceeds from sale of assets
 
28,932

 
24,902

 
4,030

Insurance proceeds received for property damages
 
7,040

 
16,688

 
(9,648
)
Changes in securitization account
 
4,312

 
135

 
4,177

Payments to storm reserve escrow account
 
(7,310
)
 
(7,661
)
 
351

Receipts from storm reserve escrow account
 
40,589

 
—

 
40,589

Decrease in other investments
 
(6,461
)
 
(15,049
)
 
8,588

Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
64,531

 
59,643

 
4,888

Proceeds from nuclear decommissioning trust fund sales
 
3,501,291

 
6,701,006

 
(3,199,715
)
Investment in nuclear decommissioning trust funds
 
(3,585,182
)
 
(6,722,011
)
 
3,136,829

Net cash flow used in investing activities
 
(4,604,771
)
 
(4,082,507
)
 
(522,264
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
9,055,511

 
8,974,040

 
81,471

    Preferred stock of subsidiary
 
(2,389
)
 
73,330

 
(75,719
)
    Treasury stock
 
133,826

 
136,940

 
(3,114
)
    Common stock
 
607,650

 
499,272

 
108,378

  Retirement of long-term debt
 
(6,935,103
)
 
(8,530,593
)
 
1,595,490

  Repurchase / redemption of preferred stock and preferred membership units
 
—

 
(103,868
)
 
103,868

  Changes in credit borrowings and commercial paper - net
 
(505
)
 
1,137,191

 
(1,137,696
)
  Other
 
(6,543
)
 
19,315

 
(25,858
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(724,745
)
 
(659,408
)
 
(65,337
)
     Preferred stock
 
(17,092
)
 
(14,855
)
 
(2,237
)
Net cash flow provided by financing activities
 
2,110,610

 
1,531,364

 
579,246

Net increase (decrease) in cash and cash equivalents
 
480,337

 
(222,100
)
 
702,437

Cash and cash equivalents at beginning of period
 
983,496

 
1,205,596

 
(222,100
)
Cash and cash equivalents at end of period
 
$
1,463,833

 
$
983,496

 
$
480,337

 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid (received) during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$
766,740

 
$
764,174

 
$
2,566

     Income taxes
 
$
(49,654
)
 
$
10,278

 
$
(59,932
)




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Three Months Ended March 31, 2020 vs. 2019
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2020
 
2019
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
123,294

 
$
258,646

 
$
(135,352
)
Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
568,596

 
530,224

 
38,372

  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(31,405
)
 
104,884

 
(136,289
)
  Asset write-offs, impairments and related charges
 
4,962

 
25,462

 
(20,500
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
70,357

 
39,697

 
30,660

     Fuel inventory
 
(15,389
)
 
(4,401
)
 
(10,988
)
     Accounts payable
 
(127,727
)
 
(63,613
)
 
(64,114
)
     Taxes accrued
 
(44,241
)
 
(44,083
)
 
(158
)
     Interest accrued
 
(4,791
)
 
(20,546
)
 
15,755

     Deferred fuel costs
 
30,560

 
20,201

 
10,359

     Other working capital accounts
 
(21,758
)
 
(42,016
)
 
20,258

  Changes in provisions for estimated losses
 
(35,829
)
 
13,720

 
(49,549
)
  Changes in other regulatory assets
 
99,275

 
(162,192
)
 
261,467

  Changes in other regulatory liabilities
 
(450,905
)
 
130,924

 
(581,829
)
  Changes in pensions and other postretirement liabilities
 
(113,071
)
 
(7,713
)
 
(105,358
)
  Other
 
607,132

 
(278,005
)
 
885,137

Net cash flow provided by operating activities
 
659,060

 
501,189

 
157,871

  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(1,043,608
)
 
(951,629
)
 
(91,979
)
Allowance for equity funds used during construction
 
35,953

 
38,322

 
(2,369
)
Nuclear fuel purchases
 
(85,334
)
 
(38,445
)
 
(46,889
)
Payment for purchase of plant
 
(24,633
)
 
—

 
(24,633
)
Changes in securitization account
 
(70
)
 
(1,084
)
 
1,014

Payments to storm reserve escrow account
 
(1,557
)
 
(2,285
)
 
728

Receipts from storm reserve escrow account
 
40,589

 
—

 
40,589

Decrease in other investments
 
2,265

 
39,045

 
(36,780
)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
62,162

 
—

 
62,162

Proceeds from nuclear decommissioning trust fund sales
 
687,487

 
1,307,547

 
(620,060
)
Investment in nuclear decommissioning trust funds
 
(718,741
)
 
(1,342,429
)
 
623,688

Net cash flow used in investing activities
 
(1,045,487
)
 
(950,958
)
 
(94,529
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
3,195,345

 
3,444,230

 
(248,885
)
    Treasury stock
 
39,964

 
35,577

 
4,387

  Retirement of long-term debt
 
(1,614,578
)
 
(2,298,855
)
 
684,277

  Repurchase of preferred membership units
 
—

 
(50,000
)
 
50,000

  Changes in credit borrowings and commercial paper - net
 
(4,911
)
 
(17
)
 
(4,894
)
  Other
 
(756
)
 
(1,945
)
 
1,189

  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(185,763
)
 
(172,591
)
 
(13,172
)
     Preferred stock
 
(4,763
)
 
(4,109
)
 
(654
)
Net cash flow provided by financing activities
 
1,424,538

 
952,290

 
472,248

Net increase in cash and cash equivalents
 
1,038,111

 
502,521

 
535,590

Cash and cash equivalents at beginning of period
 
425,722

 
480,975

 
(55,253
)
Cash and cash equivalents at end of period
 
$
1,463,833

 
$
983,496

 
$
480,337

 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid (received) during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$
203,466

 
$
214,935

 
$
(11,469
)
     Income taxes
 
$
(23,063
)
 
$
(13,844
)
 
$
(9,219
)