Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy Corporation and Subsidiaries consist of the following:

	2020	2019	2018
	(In Thousands)
Current:
Federal	$5,807	($14,416)	$36,848
State	57,939	6,535	7,274
Total	63,746	(7,881)	44,122
Deferred and non-current - net	(190,635)	(155,956)	(1,074,416)
Investment tax credit adjustments - net	5,383	(5,988)	(6,532)
Income taxes	($121,506)	($169,825)	($1,036,826)

Total Income Taxes For Entergy Corporation And Subsidiaries

The reasons for the differences for the years 2020, 2019, and 2018 are:

	2020		2019		2018
	(In Thousands)
Net income attributable to Entergy Corporation	$1,388,334		$1,241,226		$848,661
Preferred dividend requirements of subsidiaries	18,319		17,018		13,894
Consolidated net income	1,406,653		1,258,244		862,555
Income taxes	(121,506)		(169,825)		(1,036,826)
Income (loss) before income taxes	$1,285,147		$1,088,419		($174,271)
Computed at statutory rate (21%)	$269,881		$228,568		($36,597)
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	60,087		61,791		21,398
Regulatory differences - utility plant items	(53,229)		(45,336)		(37,507)
Equity component of AFUDC	(25,080)		(30,444)		(27,216)
Amortization of investment tax credits	(8,386)		(8,093)		(8,304)
Flow-through / permanent differences	11,099		(2,059)		439
Amortization of excess ADIT (a)	(59,629)		(205,614)		(577,082)
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding	—		—		(40,494)
Utility restructuring (b)	—		—		(169,918)
Settlement on treatment of regulatory obligations (c)	—		—		(52,320)
State income tax audit conclusion	—		—		(23,425)
IRS audit adjustment (e)	(301,041)		—		(8,404)
Entergy Wholesale Commodities nuclear decommissioning trust restructuring (d)	—		—		(106,833)
Entergy Wholesale Commodities restructuring (d)	(9,223)		(173,725)		—
Stock compensation (f)	(25,591)		—		—
Charitable contribution (d)	—		(19,101)		—
Net operating loss recognition	—		(41,427)		—
Provision for uncertain tax positions	15,208		7,332		24,569
Valuation allowance	—		59,345		2,211
Other - net	4,398		(1,062)		2,657
Total income taxes as reported	($121,506)		($169,825)		($1,036,826)
Effective Income Tax Rate	(9.5	%)	(15.6)	%	595.0	%

(a)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(b)See “Other Tax Matters - Entergy Arkansas and Entergy Mississippi Internal Restructuring” below for discussion of the Utility restructuring.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit.

(d)See “Other Tax Matters - Entergy Wholesale Commodities Restructuring” below for discussion of the Entergy Wholesale Commodities nuclear decommissioning trust restructuring in 2018, the Entergy Wholesale Commodities restructurings in 2017 and 2019, the ownership of Palisades restructuring in 2020, and the charitable contribution in 2019.

(e)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(f)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for Entergy Corporation and Subsidiaries as of December 31, 2020 and 2019 are as follows:

	2020	2019
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($4,795,422)	($4,111,761)
Regulatory assets	(429,996)	(389,573)
Nuclear decommissioning trusts/receivables	(1,188,235)	(1,015,542)
Pension, net funding	(327,445)	(348,260)
Combined unitary state taxes	(7,723)	(11,519)
Unbilled/deferred revenues	(9,152)	(10,218)
Deferred fuel	(7,667)	(8,360)
Other	(549,355)	(445,378)
Total	(7,314,995)	(6,340,611)
Deferred tax assets:
Nuclear decommissioning liabilities	968,464	929,251
Regulatory liabilities	791,927	806,777
Pension and other post-employment benefits	278,486	297,272
Sale and leaseback	102,477	102,420
Compensation	89,279	87,355
Accumulated deferred investment tax credit	57,379	56,013
Provision for allowances and contingencies	71,598	126,886
Power purchase agreements	352,019	231,502
Net operating loss carryforwards	1,580,109	1,133,197
Capital losses and miscellaneous tax credits	21,291	22,597
Valuation allowance	(328,581)	(303,307)
Other	230,291	289,557
Total	4,214,739	3,779,520
Non-current accrued taxes (including unrecognized tax benefits)	(1,185,227)	(1,775,638)
Accumulated deferred income taxes and taxes accrued	($4,285,483)	($4,336,729)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

Entergy’s estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

Carryover Description	Carryover Amount	Year(s) of expiration
Federal net operating losses before 1/1/2018	$6.1 billion	2023-2037
Federal net operating losses - 1/1/2018 forward	$14.6 billion	N/A
State net operating losses	$19.7 billion	2021-2040
Federal and state charitable contributions	$449 million	2021-2025
Miscellaneous federal and state credits	$77.5 million	2021-2040

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of Entergy’s beginning and ending amount of unrecognized tax benefits is as follows:

	2020	2019	2018
	(In Thousands)
Gross balance at January 1	$7,383,154	$7,181,482	$4,871,846
Additions based on tax positions related to the current year	669,207	731,276	2,276,614
Additions for tax positions of prior years	98,591	151,628	506,142
Reductions for tax positions of prior years	(935,735)	(681,232)	(274,600)
Settlements	(1,515,878)	—	(198,520)
Gross balance at December 31	5,699,339	7,383,154	7,181,482
Offsets to gross unrecognized tax benefits:
Carryovers and refund claims	(4,710,214)	(5,831,587)	(5,957,992)
Cash paid to taxing authorities	(10,000)	(10,000)	(10,000)
Unrecognized tax benefits net of unused tax attributes, refund claims and payments (a)	$979,125	$1,541,567	$1,213,490

(a)Potential tax liability above what is payable on tax returns

Entergy Arkansas [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy’s Registrant Subsidiaries consist of the following:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($44,627)	$62,728	($14,580)	$293	($5,603)	$372,206
State	(2,563)	4,457	(1,316)	(303)	2,658	55,551
Total	(47,190)	67,185	(15,896)	(10)	(2,945)	427,757
Deferred and non-current - net	96,195	(444,647)	43,640	(18,153)	6,619	(405,928)
Investment tax credit adjustments - net	(1,228)	(4,862)	(554)	13,956	(632)	(1,286)
Income taxes	$47,777	($382,324)	$27,190	($4,207)	$3,042	$20,543

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($14,549)	($20,173)	($8,939)	($5,822)	$16,035	$16,256
State	(714)	(735)	5,823	1,856	663	(2,831)
Total	(15,263)	(20,908)	(3,116)	(3,966)	16,698	13,425
Deferred and non-current - net	(30,278)	147,453	34,579	4,248	(69,963)	422
Investment tax credit adjustments - net	(1,228)	(4,922)	(597)	(96)	(631)	1,502
Income taxes	($46,769)	$121,623	$30,866	$186	($53,896)	$15,349

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($23,638)	($15,841)	($11,275)	($10,813)	$16,190	($9,786)
State	(1,617)	(1,122)	(1,066)	545	3,205	(1,821)
Total	(25,255)	(16,963)	(12,341)	(10,268)	19,395	(11,607)
Deferred and non-current - net	(270,586)	(32,725)	(114,738)	7,943	(44,817)	(35,329)
Investment tax credit adjustments - net	(1,226)	(4,923)	1,306	(111)	(821)	(739)
Income taxes	($297,067)	($54,611)	($125,773)	($2,436)	($26,243)	($47,675)

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2020, 2019, and 2018 are:

2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)
Amortization of excess ADIT (b)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (e)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (d)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6)	%	16.2	%	(9.3)	%	1.4	%	17.2	%

2019	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$262,964		$691,537		$119,925		$52,629		$159,397		$99,120
Income taxes	(46,769)		121,623		30,866		186		(53,896)		15,349
Pretax income	$216,195		$813,160		$150,791		$52,815		$105,501		$114,469
Computed at statutory rate (21%)	$45,401		$170,764		$31,666		$11,091		$22,155		$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954		42,854		5,563		3,443		360		5,134
Regulatory differences - utility plant items	(10,627)		(19,421)		(5,556)		(1,532)		(1,987)		(6,213)
Equity component of AFUDC	(3,255)		(15,545)		(1,755)		(2,088)		(5,973)		(1,829)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(88)		(617)		(1,155)
Flow-through / permanent differences	696		439		160		(741)		560		(500)
Amortization of excess ADIT (b)	(90,921)		(28,531)		203		(11,724)		(69,091)		(5,550)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	(3,517)		1,519		500		1,672		430		1,300
Other - net	701		1,210		245		153		267		123
Total income taxes as reported	($46,769)		$121,623		$30,866		$186		($53,896)		$15,349
Effective Income Tax Rate	(21.6	%)	15.0	%	20.5	%	0.4	%	(51.1	%)	13.4	%

2018	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$252,707		$675,614		$126,078		$53,152		$162,235		$94,109
Income taxes	(297,067)		(54,611)		(125,773)		(2,436)		(26,243)		(47,675)
Pretax income	($44,360)		$621,003		$305		$50,716		$135,992		$46,434
Computed at statutory rate (21%)	($9,316)		$130,411		$64		$10,650		$28,558		$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794)		26,031		(1,747)		2,322		2,576		2,812
Regulatory differences - utility plant items	(14,916)		(12,604)		(4,103)		(1,502)		(1,872)		(2,510)
Equity component of AFUDC	(3,477)		(16,784)		(1,829)		(1,248)		(2,042)		(1,837)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(109)		(808)		(1,155)
Flow-through / permanent differences	570		3,203		1,893		(4,222)		1,038		2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933		(2,810)		(556)		884		(43,799)		(3,565)
Amortization of excess ADIT (b)	(271,570)		(104,313)		(120,831)		(9,878)		(11,519)		(58,971)
Settlement on treatment of regulatory obligations (c)	—		(52,320)		—		—		—		—
IRS audit adjustment	1,290		1,097		1,018		(96)		524		(12)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	724		3,949		240		613		839		4,876
Other - net	690		1,195		238		150		262		121
Total income taxes as reported	($297,067)		($54,611)		($125,773)		($2,436)		($26,243)		($47,675)
Effective Income Tax Rate	669.7	%	(8.8	%)	(41,237.0	%)	(4.8	%)	(19.3	%)	(102.7	%)

(a)See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit for Entergy Louisiana.

(d)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(e)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2020 and 2019 are as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,117,948)	($2,481,976)	($623,796)	($83,457)	($620,669)	($407,125)
Regulatory assets	(188,284)	(95,135)	(22,381)	(20,276)	(47,684)	(56,496)
Nuclear decommissioning trusts/receivables	(156,123)	(148,040)	—	—	—	(131,985)
Pension, net funding	(93,486)	(95,854)	(24,922)	(11,564)	(19,481)	(20,330)
Deferred fuel	—	(4,210)	(1,706)	(1,393)	—	(314)
Other	(54,753)	(76,735)	(27,565)	(26,334)	(141)	(12,521)
Total	(1,610,594)	(2,901,950)	(700,370)	(143,024)	(687,975)	(628,771)
Deferred tax assets:
Regulatory liabilities	273,774	218,278	56,022	31,248	47,991	163,534
Nuclear decommissioning liabilities	123,319	7,767	—	(419)	121	29,916
Pension and other post-employment benefits	(24,747)	72,724	(6,763)	(13,997)	(17,132)	(1,344)
Sale and leaseback	—	—	—	—	—	102,477
Accumulated deferred investment tax credit	7,971	31,155	2,261	4,197	2,088	9,706
Provision for allowances and contingencies	22,179	7,071	16,799	24,529	(4,094)	—
Power purchase agreements	9,662	3,381	1,140	(5,324)	(30,932)	—
Unbilled/deferred revenues	4,242	(23,382)	2,989	877	5,909	—
Compensation	2,264	3,240	1,670	761	1,308	48
Net operating loss carryforwards	119,555	363,806	54,262	26,564	53,052	—
Capital losses and miscellaneous tax credits	—	9,309	—	12,317	—	7,014
Other	16,036	6,958	3,507	8,128	2,232	2
Total	554,255	700,307	131,887	88,881	60,543	311,353
Non-current accrued taxes (including unrecognized tax benefits)	(229,784)	63,121	(78,191)	(284,571)	(11,990)	(42,417)
Accumulated deferred income taxes and taxes accrued	($1,286,123)	($2,138,522)	($646,674)	($338,714)	($639,422)	($359,835)

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($979,033)	($1,987,025)	($565,202)	($133,073)	($551,365)	($380,594)
Regulatory assets	(170,949)	(79,117)	(10,528)	(16,867)	(59,745)	(52,662)
Nuclear decommissioning trusts/receivables	(120,306)	(113,830)	—	—	—	(100,621)
Pension, net funding	(102,685)	(98,743)	(27,325)	(11,859)	(19,961)	(21,609)
Deferred fuel	—	(2,637)	(609)	(666)	(4,380)	(55)
Other	(82,682)	(94,139)	(27,905)	(25,909)	2,059	(7,350)
Total	(1,455,655)	(2,375,491)	(631,569)	(188,374)	(633,392)	(562,891)
Deferred tax assets:
Regulatory liabilities	250,410	283,507	53,421	33,258	65,602	121,011
Nuclear decommissioning liabilities	111,078	56,300	—	—	—	52,633
Pension and other post-employment benefits	(21,828)	74,881	(5,844)	(12,666)	(15,406)	(898)
Sale and leaseback	—	—	—	—	—	102,480
Accumulated deferred investment tax credit	8,285	32,534	2,396	556	2,217	10,025
Provision for allowances and contingencies	5,365	77,298	12,963	24,022	4,024	—
Power purchase agreements	(15,087)	18,004	1,147	7,961	26	—
Unbilled/deferred revenues	5,897	(28,081)	4,715	1,428	5,544	—
Compensation	2,550	3,670	1,625	496	1,282	75
Net operating loss carryforwards	112,658	65,178	21,492	5,056	—	—
Capital losses and miscellaneous tax credits	—	—	45	—	—	7,857
Other	12,541	35,401	999	9,027	2,004	3
Total	471,869	618,692	92,959	69,138	65,293	293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340)	(707,714)	(56,222)	(235,300)	(17,314)	(544,235)
Accumulated deferred income taxes and taxes accrued	($1,183,126)	($2,464,513)	($594,832)	($354,536)	($585,413)	($813,940)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses before 1/1/2018	$— billion	$1.7 billion	$— billion	$0.9 billion	$— billion	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
Federal net operating losses - 1/1/2018 forward	$4.4 billion	$1.4 billion	$1.9 billion	$0.3 billion	$2.7 billion	$— billion
Year(s) of expiration	N/A	N/A	N/A	N/A	N/A	N/A
State net operating losses	$4.5 billion	$4 billion	$2 billion	$1.3 billion	$— million	$— million
Year(s) of expiration	2023-2025	2035-2040	2038-2040	2037-2040	N/A	N/A
Misc. federal credits	$2.9 million	$9.3 million	$1.2 million	$14.8 million	$2.6 million	$1.3 million
Year(s) of expiration	2038-2040	2035-2040	2038-2040	2037-2040	2029-2040	2029-2040
State credits	$— million	$— million	$— million	$—million	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2021-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2020, 2019, and 2018 is as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2020	$1,341,242	$2,381,653	$566,287	$716,773	$21,406	$473,331
Additions based on tax positions related to the current year	9,403	35,681	5,619	2,430	504,362	4,013
Additions for tax positions of prior years	13,400	10,508	1,156	294	799	4,606
Reductions for tax positions of prior years	(11,346)	(679,601)	(24,173)	(80,267)	(5,559)	(41,466)
Settlements	11,936	(1,107,946)	828	316	924	(418,832)
Gross balance at December 31, 2020	1,364,635	640,295	549,717	639,546	521,932	21,652
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,112,628)	(640,295)	(465,679)	(451,922)	(507,720)	(7,413)
Unrecognized tax benefits net of unused tax attributes and payments	$252,007	$—	$84,038	$187,624	$14,212	$14,239

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2019	$1,298,662	$2,400,171	$508,765	$686,687	$17,802	$467,487
Additions based on tax positions related to the current year (a)	84,335	28,705	68,594	40,676	2,312	5,496
Additions for tax positions of prior years	20,399	25,090	1,651	489	1,299	2,186
Reductions for tax positions of prior years	(62,154)	(72,313)	(12,723)	(11,079)	(7)	(1,838)
Gross balance at December 31, 2019	1,341,242	2,381,653	566,287	716,773	21,406	473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187)	(1,573,257)	(506,976)	(445,430)	(3,944)	(8,392)
Unrecognized tax benefits net of unused tax attributes and payments	$207,055	$808,396	$59,311	$271,343	$17,462	$464,939

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2018	($117,716)	$2,518,457	$15,122	$679,544	$16,399	$445,511
Additions based on tax positions related to the current year (a)	1,430,828	30,577	493,039	2,261	1,978	18,271
Additions for tax positions of prior years	31,612	77,372	3,878	12,972	1,722	7,255
Reductions for tax positions of prior years	(21,619)	(158,510)	(3,253)	(8,081)	(2,262)	(3,253)
Settlements	(24,443)	(67,725)	(21)	(9)	(35)	(297)
Gross balance at December 31, 2018	1,298,662	2,400,171	508,765	686,687	17,802	467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839)	(1,597,826)	(478,268)	(420,813)	(3,199)	(42,228)
Unrecognized tax benefits net of unused tax attributes and payments	$124,823	$802,345	$30,497	$265,874	$14,603	$425,259

(a)The primary additions for Entergy Texas in 2020 and Entergy Mississippi in 2018 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$259.3	$203.3	$85.4
Entergy Louisiana	$63.8	$556.3	$594.0
Entergy Mississippi	$50.7	$1.9	$1.5
Entergy New Orleans	$203.5	$242.7	$246.2
Entergy Texas	$6.1	$5.7	$5.1
System Energy	$0.5	$—	$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

Accrued balances for the possible payment of interest related to unrecognized tax benefits are as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$2.3	$3.1	$1.7
Entergy Louisiana	$3.4	$14.2	$17.9
Entergy Mississippi	$1.9	$1.7	$1.2
Entergy New Orleans	$3.9	$4.7	$2.7
Entergy Texas	$0.9	$1.1	$0.9
System Energy	$11.9	$14.5	$13.2

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

Interest (net-of-tax) was recorded as follows:

	2020	2019	2018
	(In Millions)
Entergy Arkansas	($0.8)	$1.4	$0.2
Entergy Louisiana	($10.8)	($3.7)	$3.8
Entergy Mississippi	$0.2	$0.5	$0.2
Entergy New Orleans	($0.8)	$2.0	$0.6
Entergy Texas	($0.2)	$0.2	$0.5
System Energy	($2.6)	$1.3	$4.7

Entergy Louisiana [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy’s Registrant Subsidiaries consist of the following:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($44,627)	$62,728	($14,580)	$293	($5,603)	$372,206
State	(2,563)	4,457	(1,316)	(303)	2,658	55,551
Total	(47,190)	67,185	(15,896)	(10)	(2,945)	427,757
Deferred and non-current - net	96,195	(444,647)	43,640	(18,153)	6,619	(405,928)
Investment tax credit adjustments - net	(1,228)	(4,862)	(554)	13,956	(632)	(1,286)
Income taxes	$47,777	($382,324)	$27,190	($4,207)	$3,042	$20,543

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($14,549)	($20,173)	($8,939)	($5,822)	$16,035	$16,256
State	(714)	(735)	5,823	1,856	663	(2,831)
Total	(15,263)	(20,908)	(3,116)	(3,966)	16,698	13,425
Deferred and non-current - net	(30,278)	147,453	34,579	4,248	(69,963)	422
Investment tax credit adjustments - net	(1,228)	(4,922)	(597)	(96)	(631)	1,502
Income taxes	($46,769)	$121,623	$30,866	$186	($53,896)	$15,349

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($23,638)	($15,841)	($11,275)	($10,813)	$16,190	($9,786)
State	(1,617)	(1,122)	(1,066)	545	3,205	(1,821)
Total	(25,255)	(16,963)	(12,341)	(10,268)	19,395	(11,607)
Deferred and non-current - net	(270,586)	(32,725)	(114,738)	7,943	(44,817)	(35,329)
Investment tax credit adjustments - net	(1,226)	(4,923)	1,306	(111)	(821)	(739)
Income taxes	($297,067)	($54,611)	($125,773)	($2,436)	($26,243)	($47,675)

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2020, 2019, and 2018 are:

2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)
Amortization of excess ADIT (b)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (e)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (d)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6)	%	16.2	%	(9.3)	%	1.4	%	17.2	%

2019	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$262,964		$691,537		$119,925		$52,629		$159,397		$99,120
Income taxes	(46,769)		121,623		30,866		186		(53,896)		15,349
Pretax income	$216,195		$813,160		$150,791		$52,815		$105,501		$114,469
Computed at statutory rate (21%)	$45,401		$170,764		$31,666		$11,091		$22,155		$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954		42,854		5,563		3,443		360		5,134
Regulatory differences - utility plant items	(10,627)		(19,421)		(5,556)		(1,532)		(1,987)		(6,213)
Equity component of AFUDC	(3,255)		(15,545)		(1,755)		(2,088)		(5,973)		(1,829)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(88)		(617)		(1,155)
Flow-through / permanent differences	696		439		160		(741)		560		(500)
Amortization of excess ADIT (b)	(90,921)		(28,531)		203		(11,724)		(69,091)		(5,550)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	(3,517)		1,519		500		1,672		430		1,300
Other - net	701		1,210		245		153		267		123
Total income taxes as reported	($46,769)		$121,623		$30,866		$186		($53,896)		$15,349
Effective Income Tax Rate	(21.6	%)	15.0	%	20.5	%	0.4	%	(51.1	%)	13.4	%

2018	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$252,707		$675,614		$126,078		$53,152		$162,235		$94,109
Income taxes	(297,067)		(54,611)		(125,773)		(2,436)		(26,243)		(47,675)
Pretax income	($44,360)		$621,003		$305		$50,716		$135,992		$46,434
Computed at statutory rate (21%)	($9,316)		$130,411		$64		$10,650		$28,558		$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794)		26,031		(1,747)		2,322		2,576		2,812
Regulatory differences - utility plant items	(14,916)		(12,604)		(4,103)		(1,502)		(1,872)		(2,510)
Equity component of AFUDC	(3,477)		(16,784)		(1,829)		(1,248)		(2,042)		(1,837)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(109)		(808)		(1,155)
Flow-through / permanent differences	570		3,203		1,893		(4,222)		1,038		2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933		(2,810)		(556)		884		(43,799)		(3,565)
Amortization of excess ADIT (b)	(271,570)		(104,313)		(120,831)		(9,878)		(11,519)		(58,971)
Settlement on treatment of regulatory obligations (c)	—		(52,320)		—		—		—		—
IRS audit adjustment	1,290		1,097		1,018		(96)		524		(12)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	724		3,949		240		613		839		4,876
Other - net	690		1,195		238		150		262		121
Total income taxes as reported	($297,067)		($54,611)		($125,773)		($2,436)		($26,243)		($47,675)
Effective Income Tax Rate	669.7	%	(8.8	%)	(41,237.0	%)	(4.8	%)	(19.3	%)	(102.7	%)

(a)See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit for Entergy Louisiana.

(d)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(e)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2020 and 2019 are as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,117,948)	($2,481,976)	($623,796)	($83,457)	($620,669)	($407,125)
Regulatory assets	(188,284)	(95,135)	(22,381)	(20,276)	(47,684)	(56,496)
Nuclear decommissioning trusts/receivables	(156,123)	(148,040)	—	—	—	(131,985)
Pension, net funding	(93,486)	(95,854)	(24,922)	(11,564)	(19,481)	(20,330)
Deferred fuel	—	(4,210)	(1,706)	(1,393)	—	(314)
Other	(54,753)	(76,735)	(27,565)	(26,334)	(141)	(12,521)
Total	(1,610,594)	(2,901,950)	(700,370)	(143,024)	(687,975)	(628,771)
Deferred tax assets:
Regulatory liabilities	273,774	218,278	56,022	31,248	47,991	163,534
Nuclear decommissioning liabilities	123,319	7,767	—	(419)	121	29,916
Pension and other post-employment benefits	(24,747)	72,724	(6,763)	(13,997)	(17,132)	(1,344)
Sale and leaseback	—	—	—	—	—	102,477
Accumulated deferred investment tax credit	7,971	31,155	2,261	4,197	2,088	9,706
Provision for allowances and contingencies	22,179	7,071	16,799	24,529	(4,094)	—
Power purchase agreements	9,662	3,381	1,140	(5,324)	(30,932)	—
Unbilled/deferred revenues	4,242	(23,382)	2,989	877	5,909	—
Compensation	2,264	3,240	1,670	761	1,308	48
Net operating loss carryforwards	119,555	363,806	54,262	26,564	53,052	—
Capital losses and miscellaneous tax credits	—	9,309	—	12,317	—	7,014
Other	16,036	6,958	3,507	8,128	2,232	2
Total	554,255	700,307	131,887	88,881	60,543	311,353
Non-current accrued taxes (including unrecognized tax benefits)	(229,784)	63,121	(78,191)	(284,571)	(11,990)	(42,417)
Accumulated deferred income taxes and taxes accrued	($1,286,123)	($2,138,522)	($646,674)	($338,714)	($639,422)	($359,835)

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($979,033)	($1,987,025)	($565,202)	($133,073)	($551,365)	($380,594)
Regulatory assets	(170,949)	(79,117)	(10,528)	(16,867)	(59,745)	(52,662)
Nuclear decommissioning trusts/receivables	(120,306)	(113,830)	—	—	—	(100,621)
Pension, net funding	(102,685)	(98,743)	(27,325)	(11,859)	(19,961)	(21,609)
Deferred fuel	—	(2,637)	(609)	(666)	(4,380)	(55)
Other	(82,682)	(94,139)	(27,905)	(25,909)	2,059	(7,350)
Total	(1,455,655)	(2,375,491)	(631,569)	(188,374)	(633,392)	(562,891)
Deferred tax assets:
Regulatory liabilities	250,410	283,507	53,421	33,258	65,602	121,011
Nuclear decommissioning liabilities	111,078	56,300	—	—	—	52,633
Pension and other post-employment benefits	(21,828)	74,881	(5,844)	(12,666)	(15,406)	(898)
Sale and leaseback	—	—	—	—	—	102,480
Accumulated deferred investment tax credit	8,285	32,534	2,396	556	2,217	10,025
Provision for allowances and contingencies	5,365	77,298	12,963	24,022	4,024	—
Power purchase agreements	(15,087)	18,004	1,147	7,961	26	—
Unbilled/deferred revenues	5,897	(28,081)	4,715	1,428	5,544	—
Compensation	2,550	3,670	1,625	496	1,282	75
Net operating loss carryforwards	112,658	65,178	21,492	5,056	—	—
Capital losses and miscellaneous tax credits	—	—	45	—	—	7,857
Other	12,541	35,401	999	9,027	2,004	3
Total	471,869	618,692	92,959	69,138	65,293	293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340)	(707,714)	(56,222)	(235,300)	(17,314)	(544,235)
Accumulated deferred income taxes and taxes accrued	($1,183,126)	($2,464,513)	($594,832)	($354,536)	($585,413)	($813,940)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses before 1/1/2018	$— billion	$1.7 billion	$— billion	$0.9 billion	$— billion	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
Federal net operating losses - 1/1/2018 forward	$4.4 billion	$1.4 billion	$1.9 billion	$0.3 billion	$2.7 billion	$— billion
Year(s) of expiration	N/A	N/A	N/A	N/A	N/A	N/A
State net operating losses	$4.5 billion	$4 billion	$2 billion	$1.3 billion	$— million	$— million
Year(s) of expiration	2023-2025	2035-2040	2038-2040	2037-2040	N/A	N/A
Misc. federal credits	$2.9 million	$9.3 million	$1.2 million	$14.8 million	$2.6 million	$1.3 million
Year(s) of expiration	2038-2040	2035-2040	2038-2040	2037-2040	2029-2040	2029-2040
State credits	$— million	$— million	$— million	$—million	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2021-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2020, 2019, and 2018 is as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2020	$1,341,242	$2,381,653	$566,287	$716,773	$21,406	$473,331
Additions based on tax positions related to the current year	9,403	35,681	5,619	2,430	504,362	4,013
Additions for tax positions of prior years	13,400	10,508	1,156	294	799	4,606
Reductions for tax positions of prior years	(11,346)	(679,601)	(24,173)	(80,267)	(5,559)	(41,466)
Settlements	11,936	(1,107,946)	828	316	924	(418,832)
Gross balance at December 31, 2020	1,364,635	640,295	549,717	639,546	521,932	21,652
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,112,628)	(640,295)	(465,679)	(451,922)	(507,720)	(7,413)
Unrecognized tax benefits net of unused tax attributes and payments	$252,007	$—	$84,038	$187,624	$14,212	$14,239

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2019	$1,298,662	$2,400,171	$508,765	$686,687	$17,802	$467,487
Additions based on tax positions related to the current year (a)	84,335	28,705	68,594	40,676	2,312	5,496
Additions for tax positions of prior years	20,399	25,090	1,651	489	1,299	2,186
Reductions for tax positions of prior years	(62,154)	(72,313)	(12,723)	(11,079)	(7)	(1,838)
Gross balance at December 31, 2019	1,341,242	2,381,653	566,287	716,773	21,406	473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187)	(1,573,257)	(506,976)	(445,430)	(3,944)	(8,392)
Unrecognized tax benefits net of unused tax attributes and payments	$207,055	$808,396	$59,311	$271,343	$17,462	$464,939

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2018	($117,716)	$2,518,457	$15,122	$679,544	$16,399	$445,511
Additions based on tax positions related to the current year (a)	1,430,828	30,577	493,039	2,261	1,978	18,271
Additions for tax positions of prior years	31,612	77,372	3,878	12,972	1,722	7,255
Reductions for tax positions of prior years	(21,619)	(158,510)	(3,253)	(8,081)	(2,262)	(3,253)
Settlements	(24,443)	(67,725)	(21)	(9)	(35)	(297)
Gross balance at December 31, 2018	1,298,662	2,400,171	508,765	686,687	17,802	467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839)	(1,597,826)	(478,268)	(420,813)	(3,199)	(42,228)
Unrecognized tax benefits net of unused tax attributes and payments	$124,823	$802,345	$30,497	$265,874	$14,603	$425,259

(a)The primary additions for Entergy Texas in 2020 and Entergy Mississippi in 2018 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$259.3	$203.3	$85.4
Entergy Louisiana	$63.8	$556.3	$594.0
Entergy Mississippi	$50.7	$1.9	$1.5
Entergy New Orleans	$203.5	$242.7	$246.2
Entergy Texas	$6.1	$5.7	$5.1
System Energy	$0.5	$—	$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

Accrued balances for the possible payment of interest related to unrecognized tax benefits are as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$2.3	$3.1	$1.7
Entergy Louisiana	$3.4	$14.2	$17.9
Entergy Mississippi	$1.9	$1.7	$1.2
Entergy New Orleans	$3.9	$4.7	$2.7
Entergy Texas	$0.9	$1.1	$0.9
System Energy	$11.9	$14.5	$13.2

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

Interest (net-of-tax) was recorded as follows:

	2020	2019	2018
	(In Millions)
Entergy Arkansas	($0.8)	$1.4	$0.2
Entergy Louisiana	($10.8)	($3.7)	$3.8
Entergy Mississippi	$0.2	$0.5	$0.2
Entergy New Orleans	($0.8)	$2.0	$0.6
Entergy Texas	($0.2)	$0.2	$0.5
System Energy	($2.6)	$1.3	$4.7

Entergy Mississippi [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy’s Registrant Subsidiaries consist of the following:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($44,627)	$62,728	($14,580)	$293	($5,603)	$372,206
State	(2,563)	4,457	(1,316)	(303)	2,658	55,551
Total	(47,190)	67,185	(15,896)	(10)	(2,945)	427,757
Deferred and non-current - net	96,195	(444,647)	43,640	(18,153)	6,619	(405,928)
Investment tax credit adjustments - net	(1,228)	(4,862)	(554)	13,956	(632)	(1,286)
Income taxes	$47,777	($382,324)	$27,190	($4,207)	$3,042	$20,543

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($14,549)	($20,173)	($8,939)	($5,822)	$16,035	$16,256
State	(714)	(735)	5,823	1,856	663	(2,831)
Total	(15,263)	(20,908)	(3,116)	(3,966)	16,698	13,425
Deferred and non-current - net	(30,278)	147,453	34,579	4,248	(69,963)	422
Investment tax credit adjustments - net	(1,228)	(4,922)	(597)	(96)	(631)	1,502
Income taxes	($46,769)	$121,623	$30,866	$186	($53,896)	$15,349

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($23,638)	($15,841)	($11,275)	($10,813)	$16,190	($9,786)
State	(1,617)	(1,122)	(1,066)	545	3,205	(1,821)
Total	(25,255)	(16,963)	(12,341)	(10,268)	19,395	(11,607)
Deferred and non-current - net	(270,586)	(32,725)	(114,738)	7,943	(44,817)	(35,329)
Investment tax credit adjustments - net	(1,226)	(4,923)	1,306	(111)	(821)	(739)
Income taxes	($297,067)	($54,611)	($125,773)	($2,436)	($26,243)	($47,675)

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2020, 2019, and 2018 are:

2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)
Amortization of excess ADIT (b)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (e)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (d)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6)	%	16.2	%	(9.3)	%	1.4	%	17.2	%

2019	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$262,964		$691,537		$119,925		$52,629		$159,397		$99,120
Income taxes	(46,769)		121,623		30,866		186		(53,896)		15,349
Pretax income	$216,195		$813,160		$150,791		$52,815		$105,501		$114,469
Computed at statutory rate (21%)	$45,401		$170,764		$31,666		$11,091		$22,155		$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954		42,854		5,563		3,443		360		5,134
Regulatory differences - utility plant items	(10,627)		(19,421)		(5,556)		(1,532)		(1,987)		(6,213)
Equity component of AFUDC	(3,255)		(15,545)		(1,755)		(2,088)		(5,973)		(1,829)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(88)		(617)		(1,155)
Flow-through / permanent differences	696		439		160		(741)		560		(500)
Amortization of excess ADIT (b)	(90,921)		(28,531)		203		(11,724)		(69,091)		(5,550)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	(3,517)		1,519		500		1,672		430		1,300
Other - net	701		1,210		245		153		267		123
Total income taxes as reported	($46,769)		$121,623		$30,866		$186		($53,896)		$15,349
Effective Income Tax Rate	(21.6	%)	15.0	%	20.5	%	0.4	%	(51.1	%)	13.4	%

2018	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$252,707		$675,614		$126,078		$53,152		$162,235		$94,109
Income taxes	(297,067)		(54,611)		(125,773)		(2,436)		(26,243)		(47,675)
Pretax income	($44,360)		$621,003		$305		$50,716		$135,992		$46,434
Computed at statutory rate (21%)	($9,316)		$130,411		$64		$10,650		$28,558		$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794)		26,031		(1,747)		2,322		2,576		2,812
Regulatory differences - utility plant items	(14,916)		(12,604)		(4,103)		(1,502)		(1,872)		(2,510)
Equity component of AFUDC	(3,477)		(16,784)		(1,829)		(1,248)		(2,042)		(1,837)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(109)		(808)		(1,155)
Flow-through / permanent differences	570		3,203		1,893		(4,222)		1,038		2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933		(2,810)		(556)		884		(43,799)		(3,565)
Amortization of excess ADIT (b)	(271,570)		(104,313)		(120,831)		(9,878)		(11,519)		(58,971)
Settlement on treatment of regulatory obligations (c)	—		(52,320)		—		—		—		—
IRS audit adjustment	1,290		1,097		1,018		(96)		524		(12)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	724		3,949		240		613		839		4,876
Other - net	690		1,195		238		150		262		121
Total income taxes as reported	($297,067)		($54,611)		($125,773)		($2,436)		($26,243)		($47,675)
Effective Income Tax Rate	669.7	%	(8.8	%)	(41,237.0	%)	(4.8	%)	(19.3	%)	(102.7	%)

(a)See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit for Entergy Louisiana.

(d)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(e)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2020 and 2019 are as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,117,948)	($2,481,976)	($623,796)	($83,457)	($620,669)	($407,125)
Regulatory assets	(188,284)	(95,135)	(22,381)	(20,276)	(47,684)	(56,496)
Nuclear decommissioning trusts/receivables	(156,123)	(148,040)	—	—	—	(131,985)
Pension, net funding	(93,486)	(95,854)	(24,922)	(11,564)	(19,481)	(20,330)
Deferred fuel	—	(4,210)	(1,706)	(1,393)	—	(314)
Other	(54,753)	(76,735)	(27,565)	(26,334)	(141)	(12,521)
Total	(1,610,594)	(2,901,950)	(700,370)	(143,024)	(687,975)	(628,771)
Deferred tax assets:
Regulatory liabilities	273,774	218,278	56,022	31,248	47,991	163,534
Nuclear decommissioning liabilities	123,319	7,767	—	(419)	121	29,916
Pension and other post-employment benefits	(24,747)	72,724	(6,763)	(13,997)	(17,132)	(1,344)
Sale and leaseback	—	—	—	—	—	102,477
Accumulated deferred investment tax credit	7,971	31,155	2,261	4,197	2,088	9,706
Provision for allowances and contingencies	22,179	7,071	16,799	24,529	(4,094)	—
Power purchase agreements	9,662	3,381	1,140	(5,324)	(30,932)	—
Unbilled/deferred revenues	4,242	(23,382)	2,989	877	5,909	—
Compensation	2,264	3,240	1,670	761	1,308	48
Net operating loss carryforwards	119,555	363,806	54,262	26,564	53,052	—
Capital losses and miscellaneous tax credits	—	9,309	—	12,317	—	7,014
Other	16,036	6,958	3,507	8,128	2,232	2
Total	554,255	700,307	131,887	88,881	60,543	311,353
Non-current accrued taxes (including unrecognized tax benefits)	(229,784)	63,121	(78,191)	(284,571)	(11,990)	(42,417)
Accumulated deferred income taxes and taxes accrued	($1,286,123)	($2,138,522)	($646,674)	($338,714)	($639,422)	($359,835)

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($979,033)	($1,987,025)	($565,202)	($133,073)	($551,365)	($380,594)
Regulatory assets	(170,949)	(79,117)	(10,528)	(16,867)	(59,745)	(52,662)
Nuclear decommissioning trusts/receivables	(120,306)	(113,830)	—	—	—	(100,621)
Pension, net funding	(102,685)	(98,743)	(27,325)	(11,859)	(19,961)	(21,609)
Deferred fuel	—	(2,637)	(609)	(666)	(4,380)	(55)
Other	(82,682)	(94,139)	(27,905)	(25,909)	2,059	(7,350)
Total	(1,455,655)	(2,375,491)	(631,569)	(188,374)	(633,392)	(562,891)
Deferred tax assets:
Regulatory liabilities	250,410	283,507	53,421	33,258	65,602	121,011
Nuclear decommissioning liabilities	111,078	56,300	—	—	—	52,633
Pension and other post-employment benefits	(21,828)	74,881	(5,844)	(12,666)	(15,406)	(898)
Sale and leaseback	—	—	—	—	—	102,480
Accumulated deferred investment tax credit	8,285	32,534	2,396	556	2,217	10,025
Provision for allowances and contingencies	5,365	77,298	12,963	24,022	4,024	—
Power purchase agreements	(15,087)	18,004	1,147	7,961	26	—
Unbilled/deferred revenues	5,897	(28,081)	4,715	1,428	5,544	—
Compensation	2,550	3,670	1,625	496	1,282	75
Net operating loss carryforwards	112,658	65,178	21,492	5,056	—	—
Capital losses and miscellaneous tax credits	—	—	45	—	—	7,857
Other	12,541	35,401	999	9,027	2,004	3
Total	471,869	618,692	92,959	69,138	65,293	293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340)	(707,714)	(56,222)	(235,300)	(17,314)	(544,235)
Accumulated deferred income taxes and taxes accrued	($1,183,126)	($2,464,513)	($594,832)	($354,536)	($585,413)	($813,940)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses before 1/1/2018	$— billion	$1.7 billion	$— billion	$0.9 billion	$— billion	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
Federal net operating losses - 1/1/2018 forward	$4.4 billion	$1.4 billion	$1.9 billion	$0.3 billion	$2.7 billion	$— billion
Year(s) of expiration	N/A	N/A	N/A	N/A	N/A	N/A
State net operating losses	$4.5 billion	$4 billion	$2 billion	$1.3 billion	$— million	$— million
Year(s) of expiration	2023-2025	2035-2040	2038-2040	2037-2040	N/A	N/A
Misc. federal credits	$2.9 million	$9.3 million	$1.2 million	$14.8 million	$2.6 million	$1.3 million
Year(s) of expiration	2038-2040	2035-2040	2038-2040	2037-2040	2029-2040	2029-2040
State credits	$— million	$— million	$— million	$—million	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2021-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2020, 2019, and 2018 is as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2020	$1,341,242	$2,381,653	$566,287	$716,773	$21,406	$473,331
Additions based on tax positions related to the current year	9,403	35,681	5,619	2,430	504,362	4,013
Additions for tax positions of prior years	13,400	10,508	1,156	294	799	4,606
Reductions for tax positions of prior years	(11,346)	(679,601)	(24,173)	(80,267)	(5,559)	(41,466)
Settlements	11,936	(1,107,946)	828	316	924	(418,832)
Gross balance at December 31, 2020	1,364,635	640,295	549,717	639,546	521,932	21,652
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,112,628)	(640,295)	(465,679)	(451,922)	(507,720)	(7,413)
Unrecognized tax benefits net of unused tax attributes and payments	$252,007	$—	$84,038	$187,624	$14,212	$14,239

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2019	$1,298,662	$2,400,171	$508,765	$686,687	$17,802	$467,487
Additions based on tax positions related to the current year (a)	84,335	28,705	68,594	40,676	2,312	5,496
Additions for tax positions of prior years	20,399	25,090	1,651	489	1,299	2,186
Reductions for tax positions of prior years	(62,154)	(72,313)	(12,723)	(11,079)	(7)	(1,838)
Gross balance at December 31, 2019	1,341,242	2,381,653	566,287	716,773	21,406	473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187)	(1,573,257)	(506,976)	(445,430)	(3,944)	(8,392)
Unrecognized tax benefits net of unused tax attributes and payments	$207,055	$808,396	$59,311	$271,343	$17,462	$464,939

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2018	($117,716)	$2,518,457	$15,122	$679,544	$16,399	$445,511
Additions based on tax positions related to the current year (a)	1,430,828	30,577	493,039	2,261	1,978	18,271
Additions for tax positions of prior years	31,612	77,372	3,878	12,972	1,722	7,255
Reductions for tax positions of prior years	(21,619)	(158,510)	(3,253)	(8,081)	(2,262)	(3,253)
Settlements	(24,443)	(67,725)	(21)	(9)	(35)	(297)
Gross balance at December 31, 2018	1,298,662	2,400,171	508,765	686,687	17,802	467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839)	(1,597,826)	(478,268)	(420,813)	(3,199)	(42,228)
Unrecognized tax benefits net of unused tax attributes and payments	$124,823	$802,345	$30,497	$265,874	$14,603	$425,259

(a)The primary additions for Entergy Texas in 2020 and Entergy Mississippi in 2018 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$259.3	$203.3	$85.4
Entergy Louisiana	$63.8	$556.3	$594.0
Entergy Mississippi	$50.7	$1.9	$1.5
Entergy New Orleans	$203.5	$242.7	$246.2
Entergy Texas	$6.1	$5.7	$5.1
System Energy	$0.5	$—	$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

Accrued balances for the possible payment of interest related to unrecognized tax benefits are as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$2.3	$3.1	$1.7
Entergy Louisiana	$3.4	$14.2	$17.9
Entergy Mississippi	$1.9	$1.7	$1.2
Entergy New Orleans	$3.9	$4.7	$2.7
Entergy Texas	$0.9	$1.1	$0.9
System Energy	$11.9	$14.5	$13.2

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

Interest (net-of-tax) was recorded as follows:

	2020	2019	2018
	(In Millions)
Entergy Arkansas	($0.8)	$1.4	$0.2
Entergy Louisiana	($10.8)	($3.7)	$3.8
Entergy Mississippi	$0.2	$0.5	$0.2
Entergy New Orleans	($0.8)	$2.0	$0.6
Entergy Texas	($0.2)	$0.2	$0.5
System Energy	($2.6)	$1.3	$4.7

Entergy New Orleans [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy’s Registrant Subsidiaries consist of the following:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($44,627)	$62,728	($14,580)	$293	($5,603)	$372,206
State	(2,563)	4,457	(1,316)	(303)	2,658	55,551
Total	(47,190)	67,185	(15,896)	(10)	(2,945)	427,757
Deferred and non-current - net	96,195	(444,647)	43,640	(18,153)	6,619	(405,928)
Investment tax credit adjustments - net	(1,228)	(4,862)	(554)	13,956	(632)	(1,286)
Income taxes	$47,777	($382,324)	$27,190	($4,207)	$3,042	$20,543

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($14,549)	($20,173)	($8,939)	($5,822)	$16,035	$16,256
State	(714)	(735)	5,823	1,856	663	(2,831)
Total	(15,263)	(20,908)	(3,116)	(3,966)	16,698	13,425
Deferred and non-current - net	(30,278)	147,453	34,579	4,248	(69,963)	422
Investment tax credit adjustments - net	(1,228)	(4,922)	(597)	(96)	(631)	1,502
Income taxes	($46,769)	$121,623	$30,866	$186	($53,896)	$15,349

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($23,638)	($15,841)	($11,275)	($10,813)	$16,190	($9,786)
State	(1,617)	(1,122)	(1,066)	545	3,205	(1,821)
Total	(25,255)	(16,963)	(12,341)	(10,268)	19,395	(11,607)
Deferred and non-current - net	(270,586)	(32,725)	(114,738)	7,943	(44,817)	(35,329)
Investment tax credit adjustments - net	(1,226)	(4,923)	1,306	(111)	(821)	(739)
Income taxes	($297,067)	($54,611)	($125,773)	($2,436)	($26,243)	($47,675)

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2020, 2019, and 2018 are:

2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)
Amortization of excess ADIT (b)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (e)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (d)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6)	%	16.2	%	(9.3)	%	1.4	%	17.2	%

2019	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$262,964		$691,537		$119,925		$52,629		$159,397		$99,120
Income taxes	(46,769)		121,623		30,866		186		(53,896)		15,349
Pretax income	$216,195		$813,160		$150,791		$52,815		$105,501		$114,469
Computed at statutory rate (21%)	$45,401		$170,764		$31,666		$11,091		$22,155		$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954		42,854		5,563		3,443		360		5,134
Regulatory differences - utility plant items	(10,627)		(19,421)		(5,556)		(1,532)		(1,987)		(6,213)
Equity component of AFUDC	(3,255)		(15,545)		(1,755)		(2,088)		(5,973)		(1,829)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(88)		(617)		(1,155)
Flow-through / permanent differences	696		439		160		(741)		560		(500)
Amortization of excess ADIT (b)	(90,921)		(28,531)		203		(11,724)		(69,091)		(5,550)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	(3,517)		1,519		500		1,672		430		1,300
Other - net	701		1,210		245		153		267		123
Total income taxes as reported	($46,769)		$121,623		$30,866		$186		($53,896)		$15,349
Effective Income Tax Rate	(21.6	%)	15.0	%	20.5	%	0.4	%	(51.1	%)	13.4	%

2018	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$252,707		$675,614		$126,078		$53,152		$162,235		$94,109
Income taxes	(297,067)		(54,611)		(125,773)		(2,436)		(26,243)		(47,675)
Pretax income	($44,360)		$621,003		$305		$50,716		$135,992		$46,434
Computed at statutory rate (21%)	($9,316)		$130,411		$64		$10,650		$28,558		$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794)		26,031		(1,747)		2,322		2,576		2,812
Regulatory differences - utility plant items	(14,916)		(12,604)		(4,103)		(1,502)		(1,872)		(2,510)
Equity component of AFUDC	(3,477)		(16,784)		(1,829)		(1,248)		(2,042)		(1,837)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(109)		(808)		(1,155)
Flow-through / permanent differences	570		3,203		1,893		(4,222)		1,038		2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933		(2,810)		(556)		884		(43,799)		(3,565)
Amortization of excess ADIT (b)	(271,570)		(104,313)		(120,831)		(9,878)		(11,519)		(58,971)
Settlement on treatment of regulatory obligations (c)	—		(52,320)		—		—		—		—
IRS audit adjustment	1,290		1,097		1,018		(96)		524		(12)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	724		3,949		240		613		839		4,876
Other - net	690		1,195		238		150		262		121
Total income taxes as reported	($297,067)		($54,611)		($125,773)		($2,436)		($26,243)		($47,675)
Effective Income Tax Rate	669.7	%	(8.8	%)	(41,237.0	%)	(4.8	%)	(19.3	%)	(102.7	%)

(a)See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit for Entergy Louisiana.

(d)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(e)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2020 and 2019 are as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,117,948)	($2,481,976)	($623,796)	($83,457)	($620,669)	($407,125)
Regulatory assets	(188,284)	(95,135)	(22,381)	(20,276)	(47,684)	(56,496)
Nuclear decommissioning trusts/receivables	(156,123)	(148,040)	—	—	—	(131,985)
Pension, net funding	(93,486)	(95,854)	(24,922)	(11,564)	(19,481)	(20,330)
Deferred fuel	—	(4,210)	(1,706)	(1,393)	—	(314)
Other	(54,753)	(76,735)	(27,565)	(26,334)	(141)	(12,521)
Total	(1,610,594)	(2,901,950)	(700,370)	(143,024)	(687,975)	(628,771)
Deferred tax assets:
Regulatory liabilities	273,774	218,278	56,022	31,248	47,991	163,534
Nuclear decommissioning liabilities	123,319	7,767	—	(419)	121	29,916
Pension and other post-employment benefits	(24,747)	72,724	(6,763)	(13,997)	(17,132)	(1,344)
Sale and leaseback	—	—	—	—	—	102,477
Accumulated deferred investment tax credit	7,971	31,155	2,261	4,197	2,088	9,706
Provision for allowances and contingencies	22,179	7,071	16,799	24,529	(4,094)	—
Power purchase agreements	9,662	3,381	1,140	(5,324)	(30,932)	—
Unbilled/deferred revenues	4,242	(23,382)	2,989	877	5,909	—
Compensation	2,264	3,240	1,670	761	1,308	48
Net operating loss carryforwards	119,555	363,806	54,262	26,564	53,052	—
Capital losses and miscellaneous tax credits	—	9,309	—	12,317	—	7,014
Other	16,036	6,958	3,507	8,128	2,232	2
Total	554,255	700,307	131,887	88,881	60,543	311,353
Non-current accrued taxes (including unrecognized tax benefits)	(229,784)	63,121	(78,191)	(284,571)	(11,990)	(42,417)
Accumulated deferred income taxes and taxes accrued	($1,286,123)	($2,138,522)	($646,674)	($338,714)	($639,422)	($359,835)

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($979,033)	($1,987,025)	($565,202)	($133,073)	($551,365)	($380,594)
Regulatory assets	(170,949)	(79,117)	(10,528)	(16,867)	(59,745)	(52,662)
Nuclear decommissioning trusts/receivables	(120,306)	(113,830)	—	—	—	(100,621)
Pension, net funding	(102,685)	(98,743)	(27,325)	(11,859)	(19,961)	(21,609)
Deferred fuel	—	(2,637)	(609)	(666)	(4,380)	(55)
Other	(82,682)	(94,139)	(27,905)	(25,909)	2,059	(7,350)
Total	(1,455,655)	(2,375,491)	(631,569)	(188,374)	(633,392)	(562,891)
Deferred tax assets:
Regulatory liabilities	250,410	283,507	53,421	33,258	65,602	121,011
Nuclear decommissioning liabilities	111,078	56,300	—	—	—	52,633
Pension and other post-employment benefits	(21,828)	74,881	(5,844)	(12,666)	(15,406)	(898)
Sale and leaseback	—	—	—	—	—	102,480
Accumulated deferred investment tax credit	8,285	32,534	2,396	556	2,217	10,025
Provision for allowances and contingencies	5,365	77,298	12,963	24,022	4,024	—
Power purchase agreements	(15,087)	18,004	1,147	7,961	26	—
Unbilled/deferred revenues	5,897	(28,081)	4,715	1,428	5,544	—
Compensation	2,550	3,670	1,625	496	1,282	75
Net operating loss carryforwards	112,658	65,178	21,492	5,056	—	—
Capital losses and miscellaneous tax credits	—	—	45	—	—	7,857
Other	12,541	35,401	999	9,027	2,004	3
Total	471,869	618,692	92,959	69,138	65,293	293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340)	(707,714)	(56,222)	(235,300)	(17,314)	(544,235)
Accumulated deferred income taxes and taxes accrued	($1,183,126)	($2,464,513)	($594,832)	($354,536)	($585,413)	($813,940)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses before 1/1/2018	$— billion	$1.7 billion	$— billion	$0.9 billion	$— billion	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
Federal net operating losses - 1/1/2018 forward	$4.4 billion	$1.4 billion	$1.9 billion	$0.3 billion	$2.7 billion	$— billion
Year(s) of expiration	N/A	N/A	N/A	N/A	N/A	N/A
State net operating losses	$4.5 billion	$4 billion	$2 billion	$1.3 billion	$— million	$— million
Year(s) of expiration	2023-2025	2035-2040	2038-2040	2037-2040	N/A	N/A
Misc. federal credits	$2.9 million	$9.3 million	$1.2 million	$14.8 million	$2.6 million	$1.3 million
Year(s) of expiration	2038-2040	2035-2040	2038-2040	2037-2040	2029-2040	2029-2040
State credits	$— million	$— million	$— million	$—million	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2021-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2020, 2019, and 2018 is as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2020	$1,341,242	$2,381,653	$566,287	$716,773	$21,406	$473,331
Additions based on tax positions related to the current year	9,403	35,681	5,619	2,430	504,362	4,013
Additions for tax positions of prior years	13,400	10,508	1,156	294	799	4,606
Reductions for tax positions of prior years	(11,346)	(679,601)	(24,173)	(80,267)	(5,559)	(41,466)
Settlements	11,936	(1,107,946)	828	316	924	(418,832)
Gross balance at December 31, 2020	1,364,635	640,295	549,717	639,546	521,932	21,652
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,112,628)	(640,295)	(465,679)	(451,922)	(507,720)	(7,413)
Unrecognized tax benefits net of unused tax attributes and payments	$252,007	$—	$84,038	$187,624	$14,212	$14,239

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2019	$1,298,662	$2,400,171	$508,765	$686,687	$17,802	$467,487
Additions based on tax positions related to the current year (a)	84,335	28,705	68,594	40,676	2,312	5,496
Additions for tax positions of prior years	20,399	25,090	1,651	489	1,299	2,186
Reductions for tax positions of prior years	(62,154)	(72,313)	(12,723)	(11,079)	(7)	(1,838)
Gross balance at December 31, 2019	1,341,242	2,381,653	566,287	716,773	21,406	473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187)	(1,573,257)	(506,976)	(445,430)	(3,944)	(8,392)
Unrecognized tax benefits net of unused tax attributes and payments	$207,055	$808,396	$59,311	$271,343	$17,462	$464,939

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2018	($117,716)	$2,518,457	$15,122	$679,544	$16,399	$445,511
Additions based on tax positions related to the current year (a)	1,430,828	30,577	493,039	2,261	1,978	18,271
Additions for tax positions of prior years	31,612	77,372	3,878	12,972	1,722	7,255
Reductions for tax positions of prior years	(21,619)	(158,510)	(3,253)	(8,081)	(2,262)	(3,253)
Settlements	(24,443)	(67,725)	(21)	(9)	(35)	(297)
Gross balance at December 31, 2018	1,298,662	2,400,171	508,765	686,687	17,802	467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839)	(1,597,826)	(478,268)	(420,813)	(3,199)	(42,228)
Unrecognized tax benefits net of unused tax attributes and payments	$124,823	$802,345	$30,497	$265,874	$14,603	$425,259

(a)The primary additions for Entergy Texas in 2020 and Entergy Mississippi in 2018 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$259.3	$203.3	$85.4
Entergy Louisiana	$63.8	$556.3	$594.0
Entergy Mississippi	$50.7	$1.9	$1.5
Entergy New Orleans	$203.5	$242.7	$246.2
Entergy Texas	$6.1	$5.7	$5.1
System Energy	$0.5	$—	$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

Accrued balances for the possible payment of interest related to unrecognized tax benefits are as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$2.3	$3.1	$1.7
Entergy Louisiana	$3.4	$14.2	$17.9
Entergy Mississippi	$1.9	$1.7	$1.2
Entergy New Orleans	$3.9	$4.7	$2.7
Entergy Texas	$0.9	$1.1	$0.9
System Energy	$11.9	$14.5	$13.2

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

Interest (net-of-tax) was recorded as follows:

	2020	2019	2018
	(In Millions)
Entergy Arkansas	($0.8)	$1.4	$0.2
Entergy Louisiana	($10.8)	($3.7)	$3.8
Entergy Mississippi	$0.2	$0.5	$0.2
Entergy New Orleans	($0.8)	$2.0	$0.6
Entergy Texas	($0.2)	$0.2	$0.5
System Energy	($2.6)	$1.3	$4.7

Entergy Texas [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy’s Registrant Subsidiaries consist of the following:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($44,627)	$62,728	($14,580)	$293	($5,603)	$372,206
State	(2,563)	4,457	(1,316)	(303)	2,658	55,551
Total	(47,190)	67,185	(15,896)	(10)	(2,945)	427,757
Deferred and non-current - net	96,195	(444,647)	43,640	(18,153)	6,619	(405,928)
Investment tax credit adjustments - net	(1,228)	(4,862)	(554)	13,956	(632)	(1,286)
Income taxes	$47,777	($382,324)	$27,190	($4,207)	$3,042	$20,543

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($14,549)	($20,173)	($8,939)	($5,822)	$16,035	$16,256
State	(714)	(735)	5,823	1,856	663	(2,831)
Total	(15,263)	(20,908)	(3,116)	(3,966)	16,698	13,425
Deferred and non-current - net	(30,278)	147,453	34,579	4,248	(69,963)	422
Investment tax credit adjustments - net	(1,228)	(4,922)	(597)	(96)	(631)	1,502
Income taxes	($46,769)	$121,623	$30,866	$186	($53,896)	$15,349

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($23,638)	($15,841)	($11,275)	($10,813)	$16,190	($9,786)
State	(1,617)	(1,122)	(1,066)	545	3,205	(1,821)
Total	(25,255)	(16,963)	(12,341)	(10,268)	19,395	(11,607)
Deferred and non-current - net	(270,586)	(32,725)	(114,738)	7,943	(44,817)	(35,329)
Investment tax credit adjustments - net	(1,226)	(4,923)	1,306	(111)	(821)	(739)
Income taxes	($297,067)	($54,611)	($125,773)	($2,436)	($26,243)	($47,675)

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2020, 2019, and 2018 are:

2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)
Amortization of excess ADIT (b)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (e)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (d)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6)	%	16.2	%	(9.3)	%	1.4	%	17.2	%

2019	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$262,964		$691,537		$119,925		$52,629		$159,397		$99,120
Income taxes	(46,769)		121,623		30,866		186		(53,896)		15,349
Pretax income	$216,195		$813,160		$150,791		$52,815		$105,501		$114,469
Computed at statutory rate (21%)	$45,401		$170,764		$31,666		$11,091		$22,155		$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954		42,854		5,563		3,443		360		5,134
Regulatory differences - utility plant items	(10,627)		(19,421)		(5,556)		(1,532)		(1,987)		(6,213)
Equity component of AFUDC	(3,255)		(15,545)		(1,755)		(2,088)		(5,973)		(1,829)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(88)		(617)		(1,155)
Flow-through / permanent differences	696		439		160		(741)		560		(500)
Amortization of excess ADIT (b)	(90,921)		(28,531)		203		(11,724)		(69,091)		(5,550)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	(3,517)		1,519		500		1,672		430		1,300
Other - net	701		1,210		245		153		267		123
Total income taxes as reported	($46,769)		$121,623		$30,866		$186		($53,896)		$15,349
Effective Income Tax Rate	(21.6	%)	15.0	%	20.5	%	0.4	%	(51.1	%)	13.4	%

2018	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$252,707		$675,614		$126,078		$53,152		$162,235		$94,109
Income taxes	(297,067)		(54,611)		(125,773)		(2,436)		(26,243)		(47,675)
Pretax income	($44,360)		$621,003		$305		$50,716		$135,992		$46,434
Computed at statutory rate (21%)	($9,316)		$130,411		$64		$10,650		$28,558		$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794)		26,031		(1,747)		2,322		2,576		2,812
Regulatory differences - utility plant items	(14,916)		(12,604)		(4,103)		(1,502)		(1,872)		(2,510)
Equity component of AFUDC	(3,477)		(16,784)		(1,829)		(1,248)		(2,042)		(1,837)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(109)		(808)		(1,155)
Flow-through / permanent differences	570		3,203		1,893		(4,222)		1,038		2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933		(2,810)		(556)		884		(43,799)		(3,565)
Amortization of excess ADIT (b)	(271,570)		(104,313)		(120,831)		(9,878)		(11,519)		(58,971)
Settlement on treatment of regulatory obligations (c)	—		(52,320)		—		—		—		—
IRS audit adjustment	1,290		1,097		1,018		(96)		524		(12)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	724		3,949		240		613		839		4,876
Other - net	690		1,195		238		150		262		121
Total income taxes as reported	($297,067)		($54,611)		($125,773)		($2,436)		($26,243)		($47,675)
Effective Income Tax Rate	669.7	%	(8.8	%)	(41,237.0	%)	(4.8	%)	(19.3	%)	(102.7	%)

(a)See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit for Entergy Louisiana.

(d)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(e)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2020 and 2019 are as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,117,948)	($2,481,976)	($623,796)	($83,457)	($620,669)	($407,125)
Regulatory assets	(188,284)	(95,135)	(22,381)	(20,276)	(47,684)	(56,496)
Nuclear decommissioning trusts/receivables	(156,123)	(148,040)	—	—	—	(131,985)
Pension, net funding	(93,486)	(95,854)	(24,922)	(11,564)	(19,481)	(20,330)
Deferred fuel	—	(4,210)	(1,706)	(1,393)	—	(314)
Other	(54,753)	(76,735)	(27,565)	(26,334)	(141)	(12,521)
Total	(1,610,594)	(2,901,950)	(700,370)	(143,024)	(687,975)	(628,771)
Deferred tax assets:
Regulatory liabilities	273,774	218,278	56,022	31,248	47,991	163,534
Nuclear decommissioning liabilities	123,319	7,767	—	(419)	121	29,916
Pension and other post-employment benefits	(24,747)	72,724	(6,763)	(13,997)	(17,132)	(1,344)
Sale and leaseback	—	—	—	—	—	102,477
Accumulated deferred investment tax credit	7,971	31,155	2,261	4,197	2,088	9,706
Provision for allowances and contingencies	22,179	7,071	16,799	24,529	(4,094)	—
Power purchase agreements	9,662	3,381	1,140	(5,324)	(30,932)	—
Unbilled/deferred revenues	4,242	(23,382)	2,989	877	5,909	—
Compensation	2,264	3,240	1,670	761	1,308	48
Net operating loss carryforwards	119,555	363,806	54,262	26,564	53,052	—
Capital losses and miscellaneous tax credits	—	9,309	—	12,317	—	7,014
Other	16,036	6,958	3,507	8,128	2,232	2
Total	554,255	700,307	131,887	88,881	60,543	311,353
Non-current accrued taxes (including unrecognized tax benefits)	(229,784)	63,121	(78,191)	(284,571)	(11,990)	(42,417)
Accumulated deferred income taxes and taxes accrued	($1,286,123)	($2,138,522)	($646,674)	($338,714)	($639,422)	($359,835)

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($979,033)	($1,987,025)	($565,202)	($133,073)	($551,365)	($380,594)
Regulatory assets	(170,949)	(79,117)	(10,528)	(16,867)	(59,745)	(52,662)
Nuclear decommissioning trusts/receivables	(120,306)	(113,830)	—	—	—	(100,621)
Pension, net funding	(102,685)	(98,743)	(27,325)	(11,859)	(19,961)	(21,609)
Deferred fuel	—	(2,637)	(609)	(666)	(4,380)	(55)
Other	(82,682)	(94,139)	(27,905)	(25,909)	2,059	(7,350)
Total	(1,455,655)	(2,375,491)	(631,569)	(188,374)	(633,392)	(562,891)
Deferred tax assets:
Regulatory liabilities	250,410	283,507	53,421	33,258	65,602	121,011
Nuclear decommissioning liabilities	111,078	56,300	—	—	—	52,633
Pension and other post-employment benefits	(21,828)	74,881	(5,844)	(12,666)	(15,406)	(898)
Sale and leaseback	—	—	—	—	—	102,480
Accumulated deferred investment tax credit	8,285	32,534	2,396	556	2,217	10,025
Provision for allowances and contingencies	5,365	77,298	12,963	24,022	4,024	—
Power purchase agreements	(15,087)	18,004	1,147	7,961	26	—
Unbilled/deferred revenues	5,897	(28,081)	4,715	1,428	5,544	—
Compensation	2,550	3,670	1,625	496	1,282	75
Net operating loss carryforwards	112,658	65,178	21,492	5,056	—	—
Capital losses and miscellaneous tax credits	—	—	45	—	—	7,857
Other	12,541	35,401	999	9,027	2,004	3
Total	471,869	618,692	92,959	69,138	65,293	293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340)	(707,714)	(56,222)	(235,300)	(17,314)	(544,235)
Accumulated deferred income taxes and taxes accrued	($1,183,126)	($2,464,513)	($594,832)	($354,536)	($585,413)	($813,940)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses before 1/1/2018	$— billion	$1.7 billion	$— billion	$0.9 billion	$— billion	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
Federal net operating losses - 1/1/2018 forward	$4.4 billion	$1.4 billion	$1.9 billion	$0.3 billion	$2.7 billion	$— billion
Year(s) of expiration	N/A	N/A	N/A	N/A	N/A	N/A
State net operating losses	$4.5 billion	$4 billion	$2 billion	$1.3 billion	$— million	$— million
Year(s) of expiration	2023-2025	2035-2040	2038-2040	2037-2040	N/A	N/A
Misc. federal credits	$2.9 million	$9.3 million	$1.2 million	$14.8 million	$2.6 million	$1.3 million
Year(s) of expiration	2038-2040	2035-2040	2038-2040	2037-2040	2029-2040	2029-2040
State credits	$— million	$— million	$— million	$—million	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2021-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2020, 2019, and 2018 is as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2020	$1,341,242	$2,381,653	$566,287	$716,773	$21,406	$473,331
Additions based on tax positions related to the current year	9,403	35,681	5,619	2,430	504,362	4,013
Additions for tax positions of prior years	13,400	10,508	1,156	294	799	4,606
Reductions for tax positions of prior years	(11,346)	(679,601)	(24,173)	(80,267)	(5,559)	(41,466)
Settlements	11,936	(1,107,946)	828	316	924	(418,832)
Gross balance at December 31, 2020	1,364,635	640,295	549,717	639,546	521,932	21,652
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,112,628)	(640,295)	(465,679)	(451,922)	(507,720)	(7,413)
Unrecognized tax benefits net of unused tax attributes and payments	$252,007	$—	$84,038	$187,624	$14,212	$14,239

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2019	$1,298,662	$2,400,171	$508,765	$686,687	$17,802	$467,487
Additions based on tax positions related to the current year (a)	84,335	28,705	68,594	40,676	2,312	5,496
Additions for tax positions of prior years	20,399	25,090	1,651	489	1,299	2,186
Reductions for tax positions of prior years	(62,154)	(72,313)	(12,723)	(11,079)	(7)	(1,838)
Gross balance at December 31, 2019	1,341,242	2,381,653	566,287	716,773	21,406	473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187)	(1,573,257)	(506,976)	(445,430)	(3,944)	(8,392)
Unrecognized tax benefits net of unused tax attributes and payments	$207,055	$808,396	$59,311	$271,343	$17,462	$464,939

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2018	($117,716)	$2,518,457	$15,122	$679,544	$16,399	$445,511
Additions based on tax positions related to the current year (a)	1,430,828	30,577	493,039	2,261	1,978	18,271
Additions for tax positions of prior years	31,612	77,372	3,878	12,972	1,722	7,255
Reductions for tax positions of prior years	(21,619)	(158,510)	(3,253)	(8,081)	(2,262)	(3,253)
Settlements	(24,443)	(67,725)	(21)	(9)	(35)	(297)
Gross balance at December 31, 2018	1,298,662	2,400,171	508,765	686,687	17,802	467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839)	(1,597,826)	(478,268)	(420,813)	(3,199)	(42,228)
Unrecognized tax benefits net of unused tax attributes and payments	$124,823	$802,345	$30,497	$265,874	$14,603	$425,259

(a)The primary additions for Entergy Texas in 2020 and Entergy Mississippi in 2018 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$259.3	$203.3	$85.4
Entergy Louisiana	$63.8	$556.3	$594.0
Entergy Mississippi	$50.7	$1.9	$1.5
Entergy New Orleans	$203.5	$242.7	$246.2
Entergy Texas	$6.1	$5.7	$5.1
System Energy	$0.5	$—	$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

Accrued balances for the possible payment of interest related to unrecognized tax benefits are as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$2.3	$3.1	$1.7
Entergy Louisiana	$3.4	$14.2	$17.9
Entergy Mississippi	$1.9	$1.7	$1.2
Entergy New Orleans	$3.9	$4.7	$2.7
Entergy Texas	$0.9	$1.1	$0.9
System Energy	$11.9	$14.5	$13.2

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

Interest (net-of-tax) was recorded as follows:

	2020	2019	2018
	(In Millions)
Entergy Arkansas	($0.8)	$1.4	$0.2
Entergy Louisiana	($10.8)	($3.7)	$3.8
Entergy Mississippi	$0.2	$0.5	$0.2
Entergy New Orleans	($0.8)	$2.0	$0.6
Entergy Texas	($0.2)	$0.2	$0.5
System Energy	($2.6)	$1.3	$4.7

System Energy [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2020 and December 31, 2019 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$467	$487
Entergy Louisiana	$479	$531
Entergy Mississippi	$224	$237
Entergy New Orleans	$59	$59
Entergy Texas	$205	$253
System Energy	$152	$143

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes protected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$490	$490
Entergy Louisiana	$721	$797
Entergy Mississippi	$248	$261
Entergy New Orleans	$61	$62
Entergy Texas	$215	$228
System Energy	$173	$186

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2020 and December 31, 2019, includes unprotected excess ADIT as follows:

	2020	2019
	(In Millions)
Entergy Arkansas	$11	$9
Entergy Louisiana	$223	$242
Entergy New Orleans	$3	$9
Entergy Texas	$54	$83
System Energy	$16	$—

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2020 and 2019:

	2020	2019
	(In Millions)
Entergy	$74	$273
Entergy Arkansas	$8	$126
Entergy Louisiana	$31	$39
Entergy New Orleans	$6	$14
Entergy Texas	$29	$87
System Energy	$—	$7

Income Tax Expenses From Continuing Operations

Income taxes for 2020, 2019, and 2018 for Entergy’s Registrant Subsidiaries consist of the following:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($44,627)	$62,728	($14,580)	$293	($5,603)	$372,206
State	(2,563)	4,457	(1,316)	(303)	2,658	55,551
Total	(47,190)	67,185	(15,896)	(10)	(2,945)	427,757
Deferred and non-current - net	96,195	(444,647)	43,640	(18,153)	6,619	(405,928)
Investment tax credit adjustments - net	(1,228)	(4,862)	(554)	13,956	(632)	(1,286)
Income taxes	$47,777	($382,324)	$27,190	($4,207)	$3,042	$20,543

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($14,549)	($20,173)	($8,939)	($5,822)	$16,035	$16,256
State	(714)	(735)	5,823	1,856	663	(2,831)
Total	(15,263)	(20,908)	(3,116)	(3,966)	16,698	13,425
Deferred and non-current - net	(30,278)	147,453	34,579	4,248	(69,963)	422
Investment tax credit adjustments - net	(1,228)	(4,922)	(597)	(96)	(631)	1,502
Income taxes	($46,769)	$121,623	$30,866	$186	($53,896)	$15,349

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($23,638)	($15,841)	($11,275)	($10,813)	$16,190	($9,786)
State	(1,617)	(1,122)	(1,066)	545	3,205	(1,821)
Total	(25,255)	(16,963)	(12,341)	(10,268)	19,395	(11,607)
Deferred and non-current - net	(270,586)	(32,725)	(114,738)	7,943	(44,817)	(35,329)
Investment tax credit adjustments - net	(1,226)	(4,923)	1,306	(111)	(821)	(739)
Income taxes	($297,067)	($54,611)	($125,773)	($2,436)	($26,243)	($47,675)

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2020, 2019, and 2018 are:

2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)
Amortization of excess ADIT (b)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (e)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (d)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6)	%	16.2	%	(9.3)	%	1.4	%	17.2	%

2019	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$262,964		$691,537		$119,925		$52,629		$159,397		$99,120
Income taxes	(46,769)		121,623		30,866		186		(53,896)		15,349
Pretax income	$216,195		$813,160		$150,791		$52,815		$105,501		$114,469
Computed at statutory rate (21%)	$45,401		$170,764		$31,666		$11,091		$22,155		$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954		42,854		5,563		3,443		360		5,134
Regulatory differences - utility plant items	(10,627)		(19,421)		(5,556)		(1,532)		(1,987)		(6,213)
Equity component of AFUDC	(3,255)		(15,545)		(1,755)		(2,088)		(5,973)		(1,829)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(88)		(617)		(1,155)
Flow-through / permanent differences	696		439		160		(741)		560		(500)
Amortization of excess ADIT (b)	(90,921)		(28,531)		203		(11,724)		(69,091)		(5,550)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	(3,517)		1,519		500		1,672		430		1,300
Other - net	701		1,210		245		153		267		123
Total income taxes as reported	($46,769)		$121,623		$30,866		$186		($53,896)		$15,349
Effective Income Tax Rate	(21.6	%)	15.0	%	20.5	%	0.4	%	(51.1	%)	13.4	%

2018	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$252,707		$675,614		$126,078		$53,152		$162,235		$94,109
Income taxes	(297,067)		(54,611)		(125,773)		(2,436)		(26,243)		(47,675)
Pretax income	($44,360)		$621,003		$305		$50,716		$135,992		$46,434
Computed at statutory rate (21%)	($9,316)		$130,411		$64		$10,650		$28,558		$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794)		26,031		(1,747)		2,322		2,576		2,812
Regulatory differences - utility plant items	(14,916)		(12,604)		(4,103)		(1,502)		(1,872)		(2,510)
Equity component of AFUDC	(3,477)		(16,784)		(1,829)		(1,248)		(2,042)		(1,837)
Amortization of investment tax credits	(1,201)		(4,871)		(160)		(109)		(808)		(1,155)
Flow-through / permanent differences	570		3,203		1,893		(4,222)		1,038		2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933		(2,810)		(556)		884		(43,799)		(3,565)
Amortization of excess ADIT (b)	(271,570)		(104,313)		(120,831)		(9,878)		(11,519)		(58,971)
Settlement on treatment of regulatory obligations (c)	—		(52,320)		—		—		—		—
IRS audit adjustment	1,290		1,097		1,018		(96)		524		(12)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	724		3,949		240		613		839		4,876
Other - net	690		1,195		238		150		262		121
Total income taxes as reported	($297,067)		($54,611)		($125,773)		($2,436)		($26,243)		($47,675)
Effective Income Tax Rate	669.7	%	(8.8	%)	(41,237.0	%)	(4.8	%)	(19.3	%)	(102.7	%)

(a)See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2018, 2019, and 2020 and the tax legislation enactment in 2017.

(c)See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the resolution of the audit for Entergy Louisiana.

(d)See “Income Tax Audits - 2014-2015 IRS Audit” below for discussion of the resolution of the audit in 2020.

(e)See “Other Tax Matters - Stock Compensation” below for discussion of excess tax deductions

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2020 and 2019 are as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,117,948)	($2,481,976)	($623,796)	($83,457)	($620,669)	($407,125)
Regulatory assets	(188,284)	(95,135)	(22,381)	(20,276)	(47,684)	(56,496)
Nuclear decommissioning trusts/receivables	(156,123)	(148,040)	—	—	—	(131,985)
Pension, net funding	(93,486)	(95,854)	(24,922)	(11,564)	(19,481)	(20,330)
Deferred fuel	—	(4,210)	(1,706)	(1,393)	—	(314)
Other	(54,753)	(76,735)	(27,565)	(26,334)	(141)	(12,521)
Total	(1,610,594)	(2,901,950)	(700,370)	(143,024)	(687,975)	(628,771)
Deferred tax assets:
Regulatory liabilities	273,774	218,278	56,022	31,248	47,991	163,534
Nuclear decommissioning liabilities	123,319	7,767	—	(419)	121	29,916
Pension and other post-employment benefits	(24,747)	72,724	(6,763)	(13,997)	(17,132)	(1,344)
Sale and leaseback	—	—	—	—	—	102,477
Accumulated deferred investment tax credit	7,971	31,155	2,261	4,197	2,088	9,706
Provision for allowances and contingencies	22,179	7,071	16,799	24,529	(4,094)	—
Power purchase agreements	9,662	3,381	1,140	(5,324)	(30,932)	—
Unbilled/deferred revenues	4,242	(23,382)	2,989	877	5,909	—
Compensation	2,264	3,240	1,670	761	1,308	48
Net operating loss carryforwards	119,555	363,806	54,262	26,564	53,052	—
Capital losses and miscellaneous tax credits	—	9,309	—	12,317	—	7,014
Other	16,036	6,958	3,507	8,128	2,232	2
Total	554,255	700,307	131,887	88,881	60,543	311,353
Non-current accrued taxes (including unrecognized tax benefits)	(229,784)	63,121	(78,191)	(284,571)	(11,990)	(42,417)
Accumulated deferred income taxes and taxes accrued	($1,286,123)	($2,138,522)	($646,674)	($338,714)	($639,422)	($359,835)

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($979,033)	($1,987,025)	($565,202)	($133,073)	($551,365)	($380,594)
Regulatory assets	(170,949)	(79,117)	(10,528)	(16,867)	(59,745)	(52,662)
Nuclear decommissioning trusts/receivables	(120,306)	(113,830)	—	—	—	(100,621)
Pension, net funding	(102,685)	(98,743)	(27,325)	(11,859)	(19,961)	(21,609)
Deferred fuel	—	(2,637)	(609)	(666)	(4,380)	(55)
Other	(82,682)	(94,139)	(27,905)	(25,909)	2,059	(7,350)
Total	(1,455,655)	(2,375,491)	(631,569)	(188,374)	(633,392)	(562,891)
Deferred tax assets:
Regulatory liabilities	250,410	283,507	53,421	33,258	65,602	121,011
Nuclear decommissioning liabilities	111,078	56,300	—	—	—	52,633
Pension and other post-employment benefits	(21,828)	74,881	(5,844)	(12,666)	(15,406)	(898)
Sale and leaseback	—	—	—	—	—	102,480
Accumulated deferred investment tax credit	8,285	32,534	2,396	556	2,217	10,025
Provision for allowances and contingencies	5,365	77,298	12,963	24,022	4,024	—
Power purchase agreements	(15,087)	18,004	1,147	7,961	26	—
Unbilled/deferred revenues	5,897	(28,081)	4,715	1,428	5,544	—
Compensation	2,550	3,670	1,625	496	1,282	75
Net operating loss carryforwards	112,658	65,178	21,492	5,056	—	—
Capital losses and miscellaneous tax credits	—	—	45	—	—	7,857
Other	12,541	35,401	999	9,027	2,004	3
Total	471,869	618,692	92,959	69,138	65,293	293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340)	(707,714)	(56,222)	(235,300)	(17,314)	(544,235)
Accumulated deferred income taxes and taxes accrued	($1,183,126)	($2,464,513)	($594,832)	($354,536)	($585,413)	($813,940)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2020 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses before 1/1/2018	$— billion	$1.7 billion	$— billion	$0.9 billion	$— billion	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
Federal net operating losses - 1/1/2018 forward	$4.4 billion	$1.4 billion	$1.9 billion	$0.3 billion	$2.7 billion	$— billion
Year(s) of expiration	N/A	N/A	N/A	N/A	N/A	N/A
State net operating losses	$4.5 billion	$4 billion	$2 billion	$1.3 billion	$— million	$— million
Year(s) of expiration	2023-2025	2035-2040	2038-2040	2037-2040	N/A	N/A
Misc. federal credits	$2.9 million	$9.3 million	$1.2 million	$14.8 million	$2.6 million	$1.3 million
Year(s) of expiration	2038-2040	2035-2040	2038-2040	2037-2040	2029-2040	2029-2040
State credits	$— million	$— million	$— million	$—million	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2021-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2020, 2019, and 2018 is as follows:

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2020	$1,341,242	$2,381,653	$566,287	$716,773	$21,406	$473,331
Additions based on tax positions related to the current year	9,403	35,681	5,619	2,430	504,362	4,013
Additions for tax positions of prior years	13,400	10,508	1,156	294	799	4,606
Reductions for tax positions of prior years	(11,346)	(679,601)	(24,173)	(80,267)	(5,559)	(41,466)
Settlements	11,936	(1,107,946)	828	316	924	(418,832)
Gross balance at December 31, 2020	1,364,635	640,295	549,717	639,546	521,932	21,652
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,112,628)	(640,295)	(465,679)	(451,922)	(507,720)	(7,413)
Unrecognized tax benefits net of unused tax attributes and payments	$252,007	$—	$84,038	$187,624	$14,212	$14,239

2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2019	$1,298,662	$2,400,171	$508,765	$686,687	$17,802	$467,487
Additions based on tax positions related to the current year (a)	84,335	28,705	68,594	40,676	2,312	5,496
Additions for tax positions of prior years	20,399	25,090	1,651	489	1,299	2,186
Reductions for tax positions of prior years	(62,154)	(72,313)	(12,723)	(11,079)	(7)	(1,838)
Gross balance at December 31, 2019	1,341,242	2,381,653	566,287	716,773	21,406	473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187)	(1,573,257)	(506,976)	(445,430)	(3,944)	(8,392)
Unrecognized tax benefits net of unused tax attributes and payments	$207,055	$808,396	$59,311	$271,343	$17,462	$464,939

2018	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2018	($117,716)	$2,518,457	$15,122	$679,544	$16,399	$445,511
Additions based on tax positions related to the current year (a)	1,430,828	30,577	493,039	2,261	1,978	18,271
Additions for tax positions of prior years	31,612	77,372	3,878	12,972	1,722	7,255
Reductions for tax positions of prior years	(21,619)	(158,510)	(3,253)	(8,081)	(2,262)	(3,253)
Settlements	(24,443)	(67,725)	(21)	(9)	(35)	(297)
Gross balance at December 31, 2018	1,298,662	2,400,171	508,765	686,687	17,802	467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839)	(1,597,826)	(478,268)	(420,813)	(3,199)	(42,228)
Unrecognized tax benefits net of unused tax attributes and payments	$124,823	$802,345	$30,497	$265,874	$14,603	$425,259

(a)The primary additions for Entergy Texas in 2020 and Entergy Mississippi in 2018 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$259.3	$203.3	$85.4
Entergy Louisiana	$63.8	$556.3	$594.0
Entergy Mississippi	$50.7	$1.9	$1.5
Entergy New Orleans	$203.5	$242.7	$246.2
Entergy Texas	$6.1	$5.7	$5.1
System Energy	$0.5	$—	$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

Accrued balances for the possible payment of interest related to unrecognized tax benefits are as follows:

	December 31,
	2020	2019	2018
	(In Millions)
Entergy Arkansas	$2.3	$3.1	$1.7
Entergy Louisiana	$3.4	$14.2	$17.9
Entergy Mississippi	$1.9	$1.7	$1.2
Entergy New Orleans	$3.9	$4.7	$2.7
Entergy Texas	$0.9	$1.1	$0.9
System Energy	$11.9	$14.5	$13.2

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

Interest (net-of-tax) was recorded as follows:

	2020	2019	2018
	(In Millions)
Entergy Arkansas	($0.8)	$1.4	$0.2
Entergy Louisiana	($10.8)	($3.7)	$3.8
Entergy Mississippi	$0.2	$0.5	$0.2
Entergy New Orleans	($0.8)	$2.0	$0.6
Entergy Texas	($0.2)	$0.2	$0.5
System Energy	($2.6)	$1.3	$4.7