Retirement And Other Postretirement Benefits

6 Months Ended

Jun. 30, 2021

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992

Entergy Arkansas [Member]

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992

Entergy Louisiana [Member]

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992

Entergy Mississippi [Member]

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992

Entergy New Orleans [Member]

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992

Entergy Texas [Member]

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992

System Energy [Member]

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost    

Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$42,951	$40,379
Interest cost on projected benefit obligation	47,382	60,799
Expected return on assets	(106,039)	(103,565)
Amortization of net loss	92,799	87,259
Settlement charges	111,549	—
Net pension costs	$188,642	$84,872

Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$88,191	$80,758
Interest cost on projected benefit obligation	93,480	121,598
Expected return on assets	(211,753)	(207,130)
Amortization of net loss	197,190	174,518
Settlement charges	111,549	—
Net pension costs	$278,657	$169,744

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)
Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,566	$8,794	$2,023	$663	$1,546	$1,965
Interest cost on projected benefit obligation	11,433	12,841	3,340	1,456	2,782	2,814
Expected return on assets	(19,622)	(22,402)	(5,757)	(2,627)	(5,486)	(4,663)
Amortization of net loss	16,897	16,627	4,748	2,005	3,265	4,279
Net pension cost	$15,274	$15,860	$4,354	$1,497	$2,107	$4,395

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)
Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

2020	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,132	$17,588	$4,046	$1,326	$3,092	$3,930
Interest cost on projected benefit obligation	22,866	25,682	6,680	2,912	5,564	5,628
Expected return on assets	(39,244)	(44,804)	(11,514)	(5,254)	(10,972)	(9,326)
Amortization of net loss	33,794	33,254	9,496	4,010	6,530	8,558
Net pension cost	$30,548	$31,720	$8,708	$2,994	$4,214	$8,790

Non-Qualified Net Pension Cost

Entergy recognized $4.6 million and $4.5 million in pension cost for its non-qualified pension plans in the second quarters of 2021 and 2020, respectively. Entergy recognized $9.2 million and $9.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2021 and 2020.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$90	$44	$96	$8	$115
2020	$83	$37	$90	$8	$117

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$180	$88	$192	$16	$230
2020	$166	$74	$180	$16	$234

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit income, including amounts capitalized, for the second quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the six months ended June 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$13,290	$12,032
Interest cost on accumulated postretirement benefit obligation (APBO)	10,640	14,820
Expected return on assets	(21,610)	(20,510)
Amortization of prior service credit	(16,534)	(14,907)
Amortization of net loss	1,426	1,473
Net other postretirement benefit income	($12,788)	($7,092)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)
Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)
Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(26,443)	(496)	(595)	(27,534)
Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	($1,400)
	($2,116)	$1,321	($1)	($796)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,461)	(327)	(831)	(27,619)
	($26,461)	$5,412	($888)	($21,937)
Entergy Louisiana
Amortization of prior service credit	$—	$1,698	$—	$1,698
Amortization of net gain (loss)	(499)	81	(1)	(419)
	($499)	$1,779	($1)	$1,279

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)
Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$9,516	($115)	$9,401
Amortization of net loss	(52,923)	(352)	(1,662)	(54,937)
	($52,923)	$9,164	($1,777)	($45,536)
Entergy Louisiana
Amortization of prior service credit	$—	$2,787	$—	$2,787
Amortization of net gain (loss)	(998)	280	(2)	(720)
	($998)	$3,067	($2)	$2,067

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants are eligible to participate in a health reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

In the second quarter of 2021, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in a settlement cost of $111.5 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs of $24.4 million, $35 million, $7.8 million, $3.6 million, $6.6 million, and $4.6 million, respectively. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time. At June 30, 2021, the balance in this reserve was approximately $10.1 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of June 30, 2021, Entergy had contributed $220.1 million to its pension plans.  Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through June 2021	$36,457	$39,400	$7,771	$3,551	$4,275	$10,671
Remaining estimated pension contributions to be made in 2021	$30,192	$20,482	$5,944	$1,844	$2,680	$7,992