DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $531 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,617	$197	$3

2019
Debt Securities (a)	$2,456	$96	$6

(a) Debt securities presented herein do not include the $507 million of debt securities held in the wholly-owned registered investment company as of December 31, 2019, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of December 31, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,423 million as of December 31, 2020 and $2,366 million as of December 31, 2019. As of December 31, 2020, available-for-sale debt securities have an average coupon rate of approximately 3.01%, an average duration of approximately 7.36 years, and an average maturity of approximately 10.72 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$187	$3
More than 12 months	2	—
Total	$189	$3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$404	$5
More than 12 months	38	1
Total	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($4)	$128
1 year - 5 years	672	807
5 years - 10 years	852	666
10 years - 15 years	377	125
15 years - 20 years	144	126
20 years+	576	604
Total	$2,617	$2,456

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $1,024 million, $1,427 million, and $2,406 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $47 million, $25 million, and $7 million, respectively, and gross losses of $4 million, $4 million, and $47 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 are $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 are $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$447.9	$27.7	$0.3

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $420.4 million as of December 31, 2020 and $405.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.57%, an average duration of approximately 6.97 years, and an average maturity of approximately 8.24 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $116.8 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$29.9	$0.3
More than 12 months	—	—
Total	$29.9	$0.3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$104.8	$2.5
More than 12 months	7.7	0.1
Total	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$44.1
1 year - 5 years	113.1	109.1
5 years - 10 years	189.8	156.0
10 years - 15 years	81.4	31.3
15 years - 20 years	28.5	23.8
20 years+	35.1	48.5
Total	$447.9	$412.8

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $94.5 million, $110.6 million, and $82.1 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.8 million, $2.9 million, and $0.1 million, respectively, and gross losses of $0.2 million, $0.1 million, and $2.9 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$632.2	$51.3	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $581.4 million as of December 31, 2020 and $573 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 3.64%, an average duration of approximately 7.25 years, and an average maturity of approximately 12.73 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $163.6 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$36.4	$0.5
More than 12 months	0.8	—
Total	$37.2	$0.5

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$71.2	$0.8
More than 12 months	7.9	—
Total	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$40.7
1 year - 5 years	117.0	142.0
5 years - 10 years	159.4	132.4
10 years - 15 years	101.2	39.8
15 years - 20 years	66.9	49.2
20 years+	187.7	197.4
Total	$632.2	$601.5

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $159.7 million, $186 million, and $401.7 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.1 million, $4.8 million, and $2.1 million, respectively, and gross losses of $0.7 million, $0.3 million, and $7.5 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$427.7	$30.0	$0.8

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $398.4 million as of December 31, 2020 and $371.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.74%, an average duration of approximately 7.54 years, and an average maturity of approximately 11.09 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $111.1 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$28.9	$0.8
More than 12 months	—	—
Total	$28.9	$0.8

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$56.9	$0.3
More than 12 months	0.3	—
Total	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.1)	$8.5
1 year - 5 years	134.7	154.6
5 years - 10 years	141.5	92.3
10 years - 15 years	31.5	13.4
15 years - 20 years	5.3	14.4
20 years+	115.8	103.0
Total	$427.7	$386.2

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $252.2 million, $338.1 million, and $361.9 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $11.5 million, $5.4 million, and $0.5 million, respectively, and gross losses of $0.6 million, $0.7 million, and $6.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt

securities. As of December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.1 million. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the years ended December 31, 2019 and 2018.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $531 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,617	$197	$3

2019
Debt Securities (a)	$2,456	$96	$6

(a) Debt securities presented herein do not include the $507 million of debt securities held in the wholly-owned registered investment company as of December 31, 2019, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of December 31, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,423 million as of December 31, 2020 and $2,366 million as of December 31, 2019. As of December 31, 2020, available-for-sale debt securities have an average coupon rate of approximately 3.01%, an average duration of approximately 7.36 years, and an average maturity of approximately 10.72 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$187	$3
More than 12 months	2	—
Total	$189	$3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$404	$5
More than 12 months	38	1
Total	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($4)	$128
1 year - 5 years	672	807
5 years - 10 years	852	666
10 years - 15 years	377	125
15 years - 20 years	144	126
20 years+	576	604
Total	$2,617	$2,456

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $1,024 million, $1,427 million, and $2,406 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $47 million, $25 million, and $7 million, respectively, and gross losses of $4 million, $4 million, and $47 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 are $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 are $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$447.9	$27.7	$0.3

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $420.4 million as of December 31, 2020 and $405.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.57%, an average duration of approximately 6.97 years, and an average maturity of approximately 8.24 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $116.8 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$29.9	$0.3
More than 12 months	—	—
Total	$29.9	$0.3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$104.8	$2.5
More than 12 months	7.7	0.1
Total	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$44.1
1 year - 5 years	113.1	109.1
5 years - 10 years	189.8	156.0
10 years - 15 years	81.4	31.3
15 years - 20 years	28.5	23.8
20 years+	35.1	48.5
Total	$447.9	$412.8

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $94.5 million, $110.6 million, and $82.1 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.8 million, $2.9 million, and $0.1 million, respectively, and gross losses of $0.2 million, $0.1 million, and $2.9 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$632.2	$51.3	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $581.4 million as of December 31, 2020 and $573 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 3.64%, an average duration of approximately 7.25 years, and an average maturity of approximately 12.73 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $163.6 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$36.4	$0.5
More than 12 months	0.8	—
Total	$37.2	$0.5

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$71.2	$0.8
More than 12 months	7.9	—
Total	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$40.7
1 year - 5 years	117.0	142.0
5 years - 10 years	159.4	132.4
10 years - 15 years	101.2	39.8
15 years - 20 years	66.9	49.2
20 years+	187.7	197.4
Total	$632.2	$601.5

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $159.7 million, $186 million, and $401.7 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.1 million, $4.8 million, and $2.1 million, respectively, and gross losses of $0.7 million, $0.3 million, and $7.5 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$427.7	$30.0	$0.8

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $398.4 million as of December 31, 2020 and $371.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.74%, an average duration of approximately 7.54 years, and an average maturity of approximately 11.09 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $111.1 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$28.9	$0.8
More than 12 months	—	—
Total	$28.9	$0.8

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$56.9	$0.3
More than 12 months	0.3	—
Total	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.1)	$8.5
1 year - 5 years	134.7	154.6
5 years - 10 years	141.5	92.3
10 years - 15 years	31.5	13.4
15 years - 20 years	5.3	14.4
20 years+	115.8	103.0
Total	$427.7	$386.2

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $252.2 million, $338.1 million, and $361.9 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $11.5 million, $5.4 million, and $0.5 million, respectively, and gross losses of $0.6 million, $0.7 million, and $6.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt

securities. As of December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.1 million. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the years ended December 31, 2019 and 2018.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $531 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,617	$197	$3

2019
Debt Securities (a)	$2,456	$96	$6

(a) Debt securities presented herein do not include the $507 million of debt securities held in the wholly-owned registered investment company as of December 31, 2019, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of December 31, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,423 million as of December 31, 2020 and $2,366 million as of December 31, 2019. As of December 31, 2020, available-for-sale debt securities have an average coupon rate of approximately 3.01%, an average duration of approximately 7.36 years, and an average maturity of approximately 10.72 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$187	$3
More than 12 months	2	—
Total	$189	$3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$404	$5
More than 12 months	38	1
Total	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($4)	$128
1 year - 5 years	672	807
5 years - 10 years	852	666
10 years - 15 years	377	125
15 years - 20 years	144	126
20 years+	576	604
Total	$2,617	$2,456

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $1,024 million, $1,427 million, and $2,406 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $47 million, $25 million, and $7 million, respectively, and gross losses of $4 million, $4 million, and $47 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 are $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 are $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$447.9	$27.7	$0.3

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $420.4 million as of December 31, 2020 and $405.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.57%, an average duration of approximately 6.97 years, and an average maturity of approximately 8.24 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $116.8 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$29.9	$0.3
More than 12 months	—	—
Total	$29.9	$0.3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$104.8	$2.5
More than 12 months	7.7	0.1
Total	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$44.1
1 year - 5 years	113.1	109.1
5 years - 10 years	189.8	156.0
10 years - 15 years	81.4	31.3
15 years - 20 years	28.5	23.8
20 years+	35.1	48.5
Total	$447.9	$412.8

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $94.5 million, $110.6 million, and $82.1 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.8 million, $2.9 million, and $0.1 million, respectively, and gross losses of $0.2 million, $0.1 million, and $2.9 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$632.2	$51.3	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $581.4 million as of December 31, 2020 and $573 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 3.64%, an average duration of approximately 7.25 years, and an average maturity of approximately 12.73 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $163.6 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$36.4	$0.5
More than 12 months	0.8	—
Total	$37.2	$0.5

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$71.2	$0.8
More than 12 months	7.9	—
Total	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$40.7
1 year - 5 years	117.0	142.0
5 years - 10 years	159.4	132.4
10 years - 15 years	101.2	39.8
15 years - 20 years	66.9	49.2
20 years+	187.7	197.4
Total	$632.2	$601.5

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $159.7 million, $186 million, and $401.7 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.1 million, $4.8 million, and $2.1 million, respectively, and gross losses of $0.7 million, $0.3 million, and $7.5 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$427.7	$30.0	$0.8

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $398.4 million as of December 31, 2020 and $371.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.74%, an average duration of approximately 7.54 years, and an average maturity of approximately 11.09 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $111.1 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$28.9	$0.8
More than 12 months	—	—
Total	$28.9	$0.8

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$56.9	$0.3
More than 12 months	0.3	—
Total	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.1)	$8.5
1 year - 5 years	134.7	154.6
5 years - 10 years	141.5	92.3
10 years - 15 years	31.5	13.4
15 years - 20 years	5.3	14.4
20 years+	115.8	103.0
Total	$427.7	$386.2

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $252.2 million, $338.1 million, and $361.9 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $11.5 million, $5.4 million, and $0.5 million, respectively, and gross losses of $0.6 million, $0.7 million, and $6.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt

securities. As of December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.1 million. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the years ended December 31, 2019 and 2018.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $531 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,617	$197	$3

2019
Debt Securities (a)	$2,456	$96	$6

(a) Debt securities presented herein do not include the $507 million of debt securities held in the wholly-owned registered investment company as of December 31, 2019, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of December 31, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,423 million as of December 31, 2020 and $2,366 million as of December 31, 2019. As of December 31, 2020, available-for-sale debt securities have an average coupon rate of approximately 3.01%, an average duration of approximately 7.36 years, and an average maturity of approximately 10.72 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$187	$3
More than 12 months	2	—
Total	$189	$3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$404	$5
More than 12 months	38	1
Total	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($4)	$128
1 year - 5 years	672	807
5 years - 10 years	852	666
10 years - 15 years	377	125
15 years - 20 years	144	126
20 years+	576	604
Total	$2,617	$2,456

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $1,024 million, $1,427 million, and $2,406 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $47 million, $25 million, and $7 million, respectively, and gross losses of $4 million, $4 million, and $47 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 are $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 are $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$447.9	$27.7	$0.3

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $420.4 million as of December 31, 2020 and $405.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.57%, an average duration of approximately 6.97 years, and an average maturity of approximately 8.24 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $116.8 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$29.9	$0.3
More than 12 months	—	—
Total	$29.9	$0.3

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$104.8	$2.5
More than 12 months	7.7	0.1
Total	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$44.1
1 year - 5 years	113.1	109.1
5 years - 10 years	189.8	156.0
10 years - 15 years	81.4	31.3
15 years - 20 years	28.5	23.8
20 years+	35.1	48.5
Total	$447.9	$412.8

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $94.5 million, $110.6 million, and $82.1 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.8 million, $2.9 million, and $0.1 million, respectively, and gross losses of $0.2 million, $0.1 million, and $2.9 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$632.2	$51.3	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $581.4 million as of December 31, 2020 and $573 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 3.64%, an average duration of approximately 7.25 years, and an average maturity of approximately 12.73 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $163.6 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$36.4	$0.5
More than 12 months	0.8	—
Total	$37.2	$0.5

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$71.2	$0.8
More than 12 months	7.9	—
Total	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	$—	$40.7
1 year - 5 years	117.0	142.0
5 years - 10 years	159.4	132.4
10 years - 15 years	101.2	39.8
15 years - 20 years	66.9	49.2
20 years+	187.7	197.4
Total	$632.2	$601.5

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $159.7 million, $186 million, and $401.7 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $8.1 million, $4.8 million, and $2.1 million, respectively, and gross losses of $0.7 million, $0.3 million, and $7.5 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2020 and 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$427.7	$30.0	$0.8

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $398.4 million as of December 31, 2020 and $371.4 million as of December 31, 2019. As of December 31, 2020, the available-for-sale debt securities have an average coupon rate of approximately 2.74%, an average duration of approximately 7.54 years, and an average maturity of approximately 11.09 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2020 on equity securities still held as of December 31, 2020 were $111.1 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2020:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$28.9	$0.8
More than 12 months	—	—
Total	$28.9	$0.8

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2019:


	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$56.9	$0.3
More than 12 months	0.3	—
Total	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2020 and 2019 are as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.1)	$8.5
1 year - 5 years	134.7	154.6
5 years - 10 years	141.5	92.3
10 years - 15 years	31.5	13.4
15 years - 20 years	5.3	14.4
20 years+	115.8	103.0
Total	$427.7	$386.2

During the years ended December 31, 2020, 2019, and 2018, proceeds from the dispositions of available-for-sale securities amounted to $252.2 million, $338.1 million, and $361.9 million, respectively. During the years ended December 31, 2020, 2019, and 2018, gross gains of $11.5 million, $5.4 million, and $0.5 million, respectively, and gross losses of $0.6 million, $0.7 million, and $6.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt

securities. As of December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.1 million. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the years ended December 31, 2019 and 2018.