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Equity

6 Months Ended

Jun. 30, 2021

EQUITY (Entergy Corporation and Entergy Louisiana)

Common Stock

Earnings (Loss) per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:


	For the Three Months Ended June 30,
	2021			2020
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings (loss) per share
Net income (loss) attributable to Entergy Corporation	($6.0)	200.8	($0.03)	$360.5	200.2	$1.80
Average dilutive effect of:
Stock options		—	—		0.3	—
Other equity plans		—	—		0.4	(0.01)

Diluted earnings (loss) per share	($6.0)	200.8	($0.03)	$360.5	200.9	$1.79

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1 million for the three months ended June 30, 2021 and approximately 0.5 million for the three months ended June 30, 2020.

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:


	For the Six Months Ended June 30,
	2021			2020
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$328.6	200.7	$1.64	$479.2	200.0	$2.40
Average dilutive effect of:
Stock options		0.4	(0.01)		0.5	(0.01)
Other equity plans		0.3	—		0.4	—

Diluted earnings per share	$328.6	201.4	$1.63	$479.2	200.9	$2.39

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1 million for the six months ended June 30, 2021 and approximately 0.5 million for the six months ended June 30, 2020.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $0.95 for the three months ended June 30, 2021 and $0.93 for the three months ended June 30, 2020. Dividends declared per common share were $1.90 for the six months ended June 30, 2021 and $1.86 for the six months ended June 30, 2020.

Equity Distribution Program

In January 2021, Entergy entered into an equity distribution sales agreement with several counterparties establishing an at the market equity distribution program, pursuant to which Entergy may offer and sell from time to time shares of its common stock. The sales agreement provides that, in addition to the issuance and sale of shares of Entergy common stock, Entergy may enter into forward sale agreements for the sale of its common stock. The aggregate number of shares of common stock sold under this sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $1 billion.

During the six months ended June 30, 2021, Entergy Corporation issued 265,468 shares of common stock under the at the market equity distribution program. The net sales proceeds from these shares totaled $26.8 million, which includes the gross sales price of $28.2 million received by Entergy Corporation less $1.1 million of general issuance costs and $0.3 million of aggregate compensation to the agents with respect to such sales.

In June 2021, Entergy entered into a forward sale agreement for 416,853 shares of common stock. No amounts have or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the equity forward sale agreement occur. The forward sale agreement requires Entergy to, at its election prior to September 30, 2022, either (i) physically settle the transactions by issuing the total of 416,853 shares of its common stock to the investment bank in exchange for net proceeds at the then-applicable forward sale price specified by the agreement (initially $106.87 per share) or (ii) net settle the transaction in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreement. In connection with the forward sale agreement, the forward seller, or its affiliates, borrowed from third parties and sold 416,853 shares of Entergy Corporation’s common stock. The gross sales price of these shares totaled $45 million with aggregate compensation to the agents of $0.5 million. Entergy Corporation did not receive any proceeds from such sales of borrowed shares.

Until settlement of the forward sale agreement, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. For the three and six months ended June 30, 2021, shares under the forward sale agreement were not included in the calculation of diluted common shares outstanding because their effect would have been antidilutive.

Treasury Stock

During the six months ended June 30, 2021, Entergy Corporation issued 443,060 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the six months ended June 30, 2021.

Retained Earnings

On July 30, 2021, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.95 per share, payable on September 1, 2021, to holders of record as of August 12, 2021.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2021 by component:



	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2021	($861)	($511,609)	$11,963	($500,507)

Other comprehensive income (loss) before reclassifications	(14)	—	648	634
Amounts reclassified from accumulated other comprehensive income (loss)	(208)	22,098	(756)	21,134
Net other comprehensive income (loss) for the period	(222)	22,098	(108)	21,768

Ending balance, June 30, 2021	($1,083)	($489,511)	$11,855	($478,739)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2020 by component:



	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2020	$62,496	($503,173)	$41,690	($398,987)

Other comprehensive income (loss) before reclassifications	4,890	—	22,545	27,435
Amounts reclassified from accumulated other comprehensive income (loss)	(30,296)	17,224	(3,980)	(17,052)
Net other comprehensive income (loss) for the period	(25,406)	17,224	18,565	10,383

Ending balance, June 30, 2020	$37,090	($485,949)	$60,255	($388,604)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2021 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, January 1, 2021	$28,719	($534,576)	$56,650	($449,207)

Other comprehensive income (loss) before reclassifications	1,467	—	(44,653)	(43,186)
Amounts reclassified from accumulated other comprehensive income (loss)	(31,269)	45,065	(142)	13,654
Net other comprehensive income (loss) for the period	(29,802)	45,065	(44,795)	(29,532)

Ending balance, June 30, 2021	($1,083)	($489,511)	$11,855	($478,739)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2020 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)


Beginning balance, January 1, 2020	$84,206	($557,072)	$25,946	($446,920)

Other comprehensive income (loss) before reclassifications	97,373	34,349	40,258	171,980
Amounts reclassified from accumulated other comprehensive income (loss)	(144,489)	36,774	(5,949)	(113,664)
Net other comprehensive income (loss) for the period	(47,116)	71,123	34,309	58,316

Ending balance, June 30, 2020	$37,090	($485,949)	$60,255	($388,604)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2021 and 2020:



	Pension and Other Postretirement Liabilities
	2021	2020
	(In Thousands)
Beginning balance, April 1,	$3,920	$14,029

Amounts reclassified from accumulated other comprehensive income (loss)	588	(945)
Net other comprehensive income (loss) for the period	588	(945)

Ending balance, June 30,	$4,508	$13,084

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2021 and 2020:


	Pension and Other Postretirement Liabilities
	2021	2020
	(In Thousands)
Beginning balance, January 1,	$4,327	$4,562

Other comprehensive income (loss) before reclassifications	—	10,050
Amounts reclassified from accumulated other comprehensive income (loss)	181	(1,528)
Net other comprehensive income (loss) for the period	181	8,522



Ending balance, June 30,	$4,508	$13,084

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2021 and 2020 were as follows:



	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Cash flow hedges net unrealized gain (loss)
Power contracts	$312	$25,086	Competitive business operating revenues
Interest rate swaps	(48)	(48)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	264	25,038
Income taxes	(56)	5,258	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$208	$30,296

Pension and other postretirement liabilities
Amortization of prior-service credit	$5,248	$5,682	(a)
Amortization of loss	(27,534)	(27,619)	(a)

Settlement loss	(6,043)	—	(a)
Total amortization	(28,329)	(21,937)
Income taxes	6,231	4,713	Income taxes
Total amortization (net of tax)	($22,098)	($17,224)

Net unrealized investment gain (loss)
Realized gain (loss)	$1,196	$6,297	Interest and investment income
Income taxes	(440)	(2,317)	Income taxes
Total realized investment gain (loss) (net of tax)	$756	$3,980

Total reclassifications for the period (net of tax)	($21,134)	$17,052

(a)These accumulated other comprehensive income (loss) components were included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2021 and 2020 were as follows:


	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Cash flow hedges net unrealized gain (loss)
Power contracts	$39,679	$119,509	Competitive business operating revenues
Interest rate swaps	(97)	(97)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	39,582	119,412
Income taxes	(8,313)	25,077	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$31,269	$144,489

Pension and other postretirement liabilities
Amortization of prior-service credit	$10,496	$9,401	(a)
Amortization of loss	(62,063)	(54,937)	(a)

Settlement loss	(6,043)	—	(a)
Total amortization	(57,610)	(45,536)
Income taxes	12,545	8,762	Income taxes
Total amortization (net of tax)	($45,065)	($36,774)

Net unrealized investment gain (loss)
Realized gain (loss)	$224	$9,413	Interest and investment income
Income taxes	(82)	(3,464)	Income taxes
Total realized investment gain (loss) (net of tax)	$142	$5,949

Total reclassifications for the period (net of tax)	($13,654)	$113,664

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2021 and 2020 were as follows:



	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$1,230	$1,698	(a)
Amortization of loss	(626)	(419)	(a)
Settlement loss	(1,400)	—	(a)
Total amortization	(796)	1,279
Income taxes	208	(334)	Income taxes
Total amortization (net of tax)	(588)	945

Total reclassifications for the period (net of tax)	($588)	$945

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2021 and 2020 were as follows:


	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$2,460	$2,787	(a)
Amortization of loss	(1,305)	(720)	(a)
Settlement loss	(1,400)	—	(a)
Total amortization	(245)	2,067
Income taxes	64	(539)	Income taxes
Total amortization (net of tax)	(181)	1,528

Total reclassifications for the period (net of tax)	($181)	$1,528

Preferred Stock

In May 2021, Entergy’s certificate of incorporation was amended and restated to provide authority to issue up to 1,000,000 shares of preferred stock, no par value per share, and to decrease from 500,000,000 to 499,000,000 the number of shares of common stock, par value of $0.01 per share, authorized for issuance. As of June 30, 2021, no preferred stock has been issued under the new authority.

Entergy Louisiana [Member]

Equity

EQUITY (Entergy Corporation and Entergy Louisiana)

Common Stock

Earnings (Loss) per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:


	For the Three Months Ended June 30,
	2021			2020
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings (loss) per share
Net income (loss) attributable to Entergy Corporation	($6.0)	200.8	($0.03)	$360.5	200.2	$1.80
Average dilutive effect of:
Stock options		—	—		0.3	—
Other equity plans		—	—		0.4	(0.01)

Diluted earnings (loss) per share	($6.0)	200.8	($0.03)	$360.5	200.9	$1.79

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:


	For the Six Months Ended June 30,
	2021			2020
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$328.6	200.7	$1.64	$479.2	200.0	$2.40
Average dilutive effect of:
Stock options		0.4	(0.01)		0.5	(0.01)
Other equity plans		0.3	—		0.4	—

Diluted earnings per share	$328.6	201.4	$1.63	$479.2	200.9	$2.39

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Equity Distribution Program

Treasury Stock

Retained Earnings

On July 30, 2021, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.95 per share, payable on September 1, 2021, to holders of record as of August 12, 2021.

Comprehensive Income



	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2021	($861)	($511,609)	$11,963	($500,507)

Other comprehensive income (loss) before reclassifications	(14)	—	648	634
Amounts reclassified from accumulated other comprehensive income (loss)	(208)	22,098	(756)	21,134
Net other comprehensive income (loss) for the period	(222)	22,098	(108)	21,768

Ending balance, June 30, 2021	($1,083)	($489,511)	$11,855	($478,739)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2020 by component:



	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2020	$62,496	($503,173)	$41,690	($398,987)

Other comprehensive income (loss) before reclassifications	4,890	—	22,545	27,435
Amounts reclassified from accumulated other comprehensive income (loss)	(30,296)	17,224	(3,980)	(17,052)
Net other comprehensive income (loss) for the period	(25,406)	17,224	18,565	10,383

Ending balance, June 30, 2020	$37,090	($485,949)	$60,255	($388,604)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2021 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, January 1, 2021	$28,719	($534,576)	$56,650	($449,207)

Other comprehensive income (loss) before reclassifications	1,467	—	(44,653)	(43,186)
Amounts reclassified from accumulated other comprehensive income (loss)	(31,269)	45,065	(142)	13,654
Net other comprehensive income (loss) for the period	(29,802)	45,065	(44,795)	(29,532)

Ending balance, June 30, 2021	($1,083)	($489,511)	$11,855	($478,739)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2020 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)


Beginning balance, January 1, 2020	$84,206	($557,072)	$25,946	($446,920)

Other comprehensive income (loss) before reclassifications	97,373	34,349	40,258	171,980
Amounts reclassified from accumulated other comprehensive income (loss)	(144,489)	36,774	(5,949)	(113,664)
Net other comprehensive income (loss) for the period	(47,116)	71,123	34,309	58,316

Ending balance, June 30, 2020	$37,090	($485,949)	$60,255	($388,604)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2021 and 2020:



	Pension and Other Postretirement Liabilities
	2021	2020
	(In Thousands)
Beginning balance, April 1,	$3,920	$14,029

Amounts reclassified from accumulated other comprehensive income (loss)	588	(945)
Net other comprehensive income (loss) for the period	588	(945)

Ending balance, June 30,	$4,508	$13,084

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2021 and 2020:


	Pension and Other Postretirement Liabilities
	2021	2020
	(In Thousands)
Beginning balance, January 1,	$4,327	$4,562

Other comprehensive income (loss) before reclassifications	—	10,050
Amounts reclassified from accumulated other comprehensive income (loss)	181	(1,528)
Net other comprehensive income (loss) for the period	181	8,522



Ending balance, June 30,	$4,508	$13,084

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2021 and 2020 were as follows:



	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Cash flow hedges net unrealized gain (loss)
Power contracts	$312	$25,086	Competitive business operating revenues
Interest rate swaps	(48)	(48)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	264	25,038
Income taxes	(56)	5,258	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$208	$30,296

Pension and other postretirement liabilities
Amortization of prior-service credit	$5,248	$5,682	(a)
Amortization of loss	(27,534)	(27,619)	(a)

Settlement loss	(6,043)	—	(a)
Total amortization	(28,329)	(21,937)
Income taxes	6,231	4,713	Income taxes
Total amortization (net of tax)	($22,098)	($17,224)

Net unrealized investment gain (loss)
Realized gain (loss)	$1,196	$6,297	Interest and investment income
Income taxes	(440)	(2,317)	Income taxes
Total realized investment gain (loss) (net of tax)	$756	$3,980

Total reclassifications for the period (net of tax)	($21,134)	$17,052

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2021 and 2020 were as follows:


	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Cash flow hedges net unrealized gain (loss)
Power contracts	$39,679	$119,509	Competitive business operating revenues
Interest rate swaps	(97)	(97)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	39,582	119,412
Income taxes	(8,313)	25,077	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$31,269	$144,489

Pension and other postretirement liabilities
Amortization of prior-service credit	$10,496	$9,401	(a)
Amortization of loss	(62,063)	(54,937)	(a)

Settlement loss	(6,043)	—	(a)
Total amortization	(57,610)	(45,536)
Income taxes	12,545	8,762	Income taxes
Total amortization (net of tax)	($45,065)	($36,774)

Net unrealized investment gain (loss)
Realized gain (loss)	$224	$9,413	Interest and investment income
Income taxes	(82)	(3,464)	Income taxes
Total realized investment gain (loss) (net of tax)	$142	$5,949

Total reclassifications for the period (net of tax)	($13,654)	$113,664

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2021 and 2020 were as follows:



	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$1,230	$1,698	(a)
Amortization of loss	(626)	(419)	(a)
Settlement loss	(1,400)	—	(a)
Total amortization	(796)	1,279
Income taxes	208	(334)	Income taxes
Total amortization (net of tax)	(588)	945

Total reclassifications for the period (net of tax)	($588)	$945

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2021 and 2020 were as follows:


	Amounts reclassified from AOCI		Income Statement Location
	2021	2020
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$2,460	$2,787	(a)
Amortization of loss	(1,305)	(720)	(a)
Settlement loss	(1,400)	—	(a)
Total amortization	(245)	2,067
Income taxes	64	(539)	Income taxes
Total amortization (net of tax)	(181)	1,528

Total reclassifications for the period (net of tax)	($181)	$1,528

Preferred Stock