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

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

As discussed in Note 14 to the financial statements herein, in May 2021, Entergy completed the transfer of Indian Point 1, Indian Point 2, and Indian Point 3 to Holtec. As part of the transaction, Entergy transferred the Indian Point 1, Indian Point 2, and Indian Point 3 decommissioning trust funds to Holtec. The disposition-date fair value of the decommissioning trust funds was approximately $2,387 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in

the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $228 million and $389 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$2,038	$92	$8

2020
Debt Securities	$2,617	$197	$3

The unrealized gains/(losses) above are reported before deferred taxes of $5 million as of June 30, 2021 and $31 million as of December 31, 2020 for debt securities. The amortized cost of available-for-sale debt securities was $1,954 million as of June 30, 2021 and $2,423 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.82%, an average duration of approximately 6.94 years, and an average maturity of approximately 10.75 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$482	$8	$187	$3
More than 12 months	3	—	2	—
Total	$485	$8	$189	$3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($4)
1 year - 5 years	455	672
5 years - 10 years	663	852
10 years - 15 years	335	377
15 years - 20 years	117	144
20 years+	468	576
Total	$2,038	$2,617

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $273 million and $276 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $6 million and $15 million, respectively, and gross losses of $1 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $797 million and $676 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $17 million and $29 million, respectively, and gross losses of $12 million and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plant as of June 30, 2021 was $564 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 were $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$472.5	$16.7	$2.7

2020
Debt Securities	$447.9	$27.7	$0.3

The amortized cost of available-for-sale debt securities was $458.5 million as of June 30, 2021 and $420.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate

of approximately 2.45%, an average duration of approximately 6.88 years, and an average maturity of approximately 8.14 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $64.3 million and $109.9 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$127.7	$2.7	$29.9	$0.3
More than 12 months	2.0	—	—	—
Total	$129.7	$2.7	$29.9	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	93.6	113.1
5 years - 10 years	191.6	189.8
10 years - 15 years	121.5	81.4
15 years - 20 years	28.8	28.5
20 years+	37.0	35.1
Total	$472.5	$447.9

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $12.3 million and $17.7 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $0.7 million and $1.3 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $26.1 million and $66.4 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $1.6 million and $5.8 million, respectively, and gross losses of $0.1 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$697.5	$38.4	$1.9

2020
Debt Securities	$632.2	$51.3	$0.5

The amortized cost of available-for-sale debt securities was $661 million as of June 30, 2021 and $581.4 million as of December 31, 2020. As of June 30, 2021, the available-for-sale debt securities had an average coupon rate of approximately 3.44%, an average duration of approximately 6.77 years, and an average maturity of approximately 12.32 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $92.9 million and $157.4 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$124.4	$1.9	$36.4	$0.5
More than 12 months	0.7	—	0.8	—
Total	$125.1	$1.9	$37.2	$0.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	122.7	117.0
5 years - 10 years	188.4	159.4
10 years - 15 years	103.5	101.2
15 years - 20 years	74.3	66.9
20 years+	208.6	187.7
Total	$697.5	$632.2

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $62.5 million and $34.1 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.5 million and $2 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $170.9 million and $101.5 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $4.8 million and $4.9 million, respectively, and gross losses of $3.3 million and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$467.8	$19.4	$2.5

2020
Debt Securities	$427.7	$30.0	$0.8

The amortized cost of available-for-sale debt securities was $450.9 million as of June 30, 2021 and $398.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.43%, an average duration of approximately 7.27 years, and an average maturity of approximately 10.68 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $60.6 million and $103.3 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


		June 30, 2021		December 31, 2020
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$149.1	$2.5	$28.9	$0.8
More than 12 months		0.1	—	—	—
Total		$149.2	$2.5	$28.9	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($1.1)
1 year - 5 years	144.0	134.7
5 years - 10 years	147.3	141.5
10 years - 15 years	46.3	31.5
15 years - 20 years	2.8	5.3
20 years+	127.4	115.8
Total	$467.8	$427.7

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $101.6 million and $73.6 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.9 million and $5.4 million, respectively, and gross losses of $0.2 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $175.7 million and $165.6 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $3.1 million and $7 million, respectively, and gross losses of $1.8 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2021 and December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities were $0.2 million and $0.1 million, respectively. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021 and 2020.

Decommissioning Trust Funds

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

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

As discussed in Note 14 to the financial statements herein, in May 2021, Entergy completed the transfer of Indian Point 1, Indian Point 2, and Indian Point 3 to Holtec. As part of the transaction, Entergy transferred the Indian Point 1, Indian Point 2, and Indian Point 3 decommissioning trust funds to Holtec. The disposition-date fair value of the decommissioning trust funds was approximately $2,387 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in

the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $228 million and $389 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$2,038	$92	$8

2020
Debt Securities	$2,617	$197	$3

The unrealized gains/(losses) above are reported before deferred taxes of $5 million as of June 30, 2021 and $31 million as of December 31, 2020 for debt securities. The amortized cost of available-for-sale debt securities was $1,954 million as of June 30, 2021 and $2,423 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.82%, an average duration of approximately 6.94 years, and an average maturity of approximately 10.75 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$482	$8	$187	$3
More than 12 months	3	—	2	—
Total	$485	$8	$189	$3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($4)
1 year - 5 years	455	672
5 years - 10 years	663	852
10 years - 15 years	335	377
15 years - 20 years	117	144
20 years+	468	576
Total	$2,038	$2,617

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $273 million and $276 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $6 million and $15 million, respectively, and gross losses of $1 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $797 million and $676 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $17 million and $29 million, respectively, and gross losses of $12 million and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plant as of June 30, 2021 was $564 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 were $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$472.5	$16.7	$2.7

2020
Debt Securities	$447.9	$27.7	$0.3

The amortized cost of available-for-sale debt securities was $458.5 million as of June 30, 2021 and $420.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate

of approximately 2.45%, an average duration of approximately 6.88 years, and an average maturity of approximately 8.14 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $64.3 million and $109.9 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$127.7	$2.7	$29.9	$0.3
More than 12 months	2.0	—	—	—
Total	$129.7	$2.7	$29.9	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	93.6	113.1
5 years - 10 years	191.6	189.8
10 years - 15 years	121.5	81.4
15 years - 20 years	28.8	28.5
20 years+	37.0	35.1
Total	$472.5	$447.9

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $12.3 million and $17.7 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $0.7 million and $1.3 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $26.1 million and $66.4 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $1.6 million and $5.8 million, respectively, and gross losses of $0.1 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$697.5	$38.4	$1.9

2020
Debt Securities	$632.2	$51.3	$0.5

The amortized cost of available-for-sale debt securities was $661 million as of June 30, 2021 and $581.4 million as of December 31, 2020. As of June 30, 2021, the available-for-sale debt securities had an average coupon rate of approximately 3.44%, an average duration of approximately 6.77 years, and an average maturity of approximately 12.32 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $92.9 million and $157.4 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$124.4	$1.9	$36.4	$0.5
More than 12 months	0.7	—	0.8	—
Total	$125.1	$1.9	$37.2	$0.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	122.7	117.0
5 years - 10 years	188.4	159.4
10 years - 15 years	103.5	101.2
15 years - 20 years	74.3	66.9
20 years+	208.6	187.7
Total	$697.5	$632.2

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $62.5 million and $34.1 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.5 million and $2 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $170.9 million and $101.5 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $4.8 million and $4.9 million, respectively, and gross losses of $3.3 million and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$467.8	$19.4	$2.5

2020
Debt Securities	$427.7	$30.0	$0.8

The amortized cost of available-for-sale debt securities was $450.9 million as of June 30, 2021 and $398.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.43%, an average duration of approximately 7.27 years, and an average maturity of approximately 10.68 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $60.6 million and $103.3 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


		June 30, 2021		December 31, 2020
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$149.1	$2.5	$28.9	$0.8
More than 12 months		0.1	—	—	—
Total		$149.2	$2.5	$28.9	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($1.1)
1 year - 5 years	144.0	134.7
5 years - 10 years	147.3	141.5
10 years - 15 years	46.3	31.5
15 years - 20 years	2.8	5.3
20 years+	127.4	115.8
Total	$467.8	$427.7

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $101.6 million and $73.6 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.9 million and $5.4 million, respectively, and gross losses of $0.2 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $175.7 million and $165.6 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $3.1 million and $7 million, respectively, and gross losses of $1.8 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2021 and December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities were $0.2 million and $0.1 million, respectively. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021 and 2020.

Decommissioning Trust Funds

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

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

As discussed in Note 14 to the financial statements herein, in May 2021, Entergy completed the transfer of Indian Point 1, Indian Point 2, and Indian Point 3 to Holtec. As part of the transaction, Entergy transferred the Indian Point 1, Indian Point 2, and Indian Point 3 decommissioning trust funds to Holtec. The disposition-date fair value of the decommissioning trust funds was approximately $2,387 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in

the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $228 million and $389 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$2,038	$92	$8

2020
Debt Securities	$2,617	$197	$3

The unrealized gains/(losses) above are reported before deferred taxes of $5 million as of June 30, 2021 and $31 million as of December 31, 2020 for debt securities. The amortized cost of available-for-sale debt securities was $1,954 million as of June 30, 2021 and $2,423 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.82%, an average duration of approximately 6.94 years, and an average maturity of approximately 10.75 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$482	$8	$187	$3
More than 12 months	3	—	2	—
Total	$485	$8	$189	$3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($4)
1 year - 5 years	455	672
5 years - 10 years	663	852
10 years - 15 years	335	377
15 years - 20 years	117	144
20 years+	468	576
Total	$2,038	$2,617

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $273 million and $276 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $6 million and $15 million, respectively, and gross losses of $1 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $797 million and $676 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $17 million and $29 million, respectively, and gross losses of $12 million and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plant as of June 30, 2021 was $564 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 were $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$472.5	$16.7	$2.7

2020
Debt Securities	$447.9	$27.7	$0.3

The amortized cost of available-for-sale debt securities was $458.5 million as of June 30, 2021 and $420.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate

of approximately 2.45%, an average duration of approximately 6.88 years, and an average maturity of approximately 8.14 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $64.3 million and $109.9 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$127.7	$2.7	$29.9	$0.3
More than 12 months	2.0	—	—	—
Total	$129.7	$2.7	$29.9	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	93.6	113.1
5 years - 10 years	191.6	189.8
10 years - 15 years	121.5	81.4
15 years - 20 years	28.8	28.5
20 years+	37.0	35.1
Total	$472.5	$447.9

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $12.3 million and $17.7 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $0.7 million and $1.3 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $26.1 million and $66.4 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $1.6 million and $5.8 million, respectively, and gross losses of $0.1 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$697.5	$38.4	$1.9

2020
Debt Securities	$632.2	$51.3	$0.5

The amortized cost of available-for-sale debt securities was $661 million as of June 30, 2021 and $581.4 million as of December 31, 2020. As of June 30, 2021, the available-for-sale debt securities had an average coupon rate of approximately 3.44%, an average duration of approximately 6.77 years, and an average maturity of approximately 12.32 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $92.9 million and $157.4 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$124.4	$1.9	$36.4	$0.5
More than 12 months	0.7	—	0.8	—
Total	$125.1	$1.9	$37.2	$0.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	122.7	117.0
5 years - 10 years	188.4	159.4
10 years - 15 years	103.5	101.2
15 years - 20 years	74.3	66.9
20 years+	208.6	187.7
Total	$697.5	$632.2

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $62.5 million and $34.1 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.5 million and $2 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $170.9 million and $101.5 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $4.8 million and $4.9 million, respectively, and gross losses of $3.3 million and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$467.8	$19.4	$2.5

2020
Debt Securities	$427.7	$30.0	$0.8

The amortized cost of available-for-sale debt securities was $450.9 million as of June 30, 2021 and $398.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.43%, an average duration of approximately 7.27 years, and an average maturity of approximately 10.68 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $60.6 million and $103.3 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


		June 30, 2021		December 31, 2020
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$149.1	$2.5	$28.9	$0.8
More than 12 months		0.1	—	—	—
Total		$149.2	$2.5	$28.9	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($1.1)
1 year - 5 years	144.0	134.7
5 years - 10 years	147.3	141.5
10 years - 15 years	46.3	31.5
15 years - 20 years	2.8	5.3
20 years+	127.4	115.8
Total	$467.8	$427.7

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $101.6 million and $73.6 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.9 million and $5.4 million, respectively, and gross losses of $0.2 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $175.7 million and $165.6 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $3.1 million and $7 million, respectively, and gross losses of $1.8 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2021 and December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities were $0.2 million and $0.1 million, respectively. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021 and 2020.

Decommissioning Trust Funds

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

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

As discussed in Note 14 to the financial statements herein, in May 2021, Entergy completed the transfer of Indian Point 1, Indian Point 2, and Indian Point 3 to Holtec. As part of the transaction, Entergy transferred the Indian Point 1, Indian Point 2, and Indian Point 3 decommissioning trust funds to Holtec. The disposition-date fair value of the decommissioning trust funds was approximately $2,387 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in

the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $228 million and $389 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$2,038	$92	$8

2020
Debt Securities	$2,617	$197	$3

The unrealized gains/(losses) above are reported before deferred taxes of $5 million as of June 30, 2021 and $31 million as of December 31, 2020 for debt securities. The amortized cost of available-for-sale debt securities was $1,954 million as of June 30, 2021 and $2,423 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.82%, an average duration of approximately 6.94 years, and an average maturity of approximately 10.75 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$482	$8	$187	$3
More than 12 months	3	—	2	—
Total	$485	$8	$189	$3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($4)
1 year - 5 years	455	672
5 years - 10 years	663	852
10 years - 15 years	335	377
15 years - 20 years	117	144
20 years+	468	576
Total	$2,038	$2,617

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $273 million and $276 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $6 million and $15 million, respectively, and gross losses of $1 million and $1 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $797 million and $676 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $17 million and $29 million, respectively, and gross losses of $12 million and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plant as of June 30, 2021 was $564 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2020 were $631 million for Indian Point 1, $794 million for Indian Point 2, $991 million for Indian Point 3, and $554 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$472.5	$16.7	$2.7

2020
Debt Securities	$447.9	$27.7	$0.3

The amortized cost of available-for-sale debt securities was $458.5 million as of June 30, 2021 and $420.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate

of approximately 2.45%, an average duration of approximately 6.88 years, and an average maturity of approximately 8.14 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $64.3 million and $109.9 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$127.7	$2.7	$29.9	$0.3
More than 12 months	2.0	—	—	—
Total	$129.7	$2.7	$29.9	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	93.6	113.1
5 years - 10 years	191.6	189.8
10 years - 15 years	121.5	81.4
15 years - 20 years	28.8	28.5
20 years+	37.0	35.1
Total	$472.5	$447.9

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $12.3 million and $17.7 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $0.7 million and $1.3 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $26.1 million and $66.4 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $1.6 million and $5.8 million, respectively, and gross losses of $0.1 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$697.5	$38.4	$1.9

2020
Debt Securities	$632.2	$51.3	$0.5

The amortized cost of available-for-sale debt securities was $661 million as of June 30, 2021 and $581.4 million as of December 31, 2020. As of June 30, 2021, the available-for-sale debt securities had an average coupon rate of approximately 3.44%, an average duration of approximately 6.77 years, and an average maturity of approximately 12.32 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $92.9 million and $157.4 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$124.4	$1.9	$36.4	$0.5
More than 12 months	0.7	—	0.8	—
Total	$125.1	$1.9	$37.2	$0.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	$—
1 year - 5 years	122.7	117.0
5 years - 10 years	188.4	159.4
10 years - 15 years	103.5	101.2
15 years - 20 years	74.3	66.9
20 years+	208.6	187.7
Total	$697.5	$632.2

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $62.5 million and $34.1 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.5 million and $2 million, respectively, and gross losses of $0.1 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $170.9 million and $101.5 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $4.8 million and $4.9 million, respectively, and gross losses of $3.3 million and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2021 and December 31, 2020 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$467.8	$19.4	$2.5

2020
Debt Securities	$427.7	$30.0	$0.8

The amortized cost of available-for-sale debt securities was $450.9 million as of June 30, 2021 and $398.4 million as of December 31, 2020. As of June 30, 2021, available-for-sale debt securities had an average coupon rate of approximately 2.43%, an average duration of approximately 7.27 years, and an average maturity of approximately 10.68 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2021 on equity securities still held as of June 30, 2021 were $60.6 million and $103.3 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2021 and December 31, 2020:


		June 30, 2021		December 31, 2020
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$149.1	$2.5	$28.9	$0.8
More than 12 months		0.1	—	—	—
Total		$149.2	$2.5	$28.9	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2021 and December 31, 2020 were as follows:


	2021	2020
	(In Millions)
Less than 1 year	$—	($1.1)
1 year - 5 years	144.0	134.7
5 years - 10 years	147.3	141.5
10 years - 15 years	46.3	31.5
15 years - 20 years	2.8	5.3
20 years+	127.4	115.8
Total	$467.8	$427.7

During the three months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $101.6 million and $73.6 million, respectively. During the three months ended June 30, 2021 and 2020, gross gains of $1.9 million and $5.4 million, respectively, and gross losses of $0.2 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2021 and 2020, proceeds from the dispositions of available-for-sale securities amounted to $175.7 million and $165.6 million, respectively. During the six months ended June 30, 2021 and 2020, gross gains of $3.1 million and $7 million, respectively, and gross losses of $1.8 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of June 30, 2021 and December 31, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities were $0.2 million and $0.1 million, respectively. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2021 and 2020.