INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Income taxes for 2022, 2021, and 2020 for Entergy Corporation and Subsidiaries consist of the following:


	2022	2021	2020
	(In Thousands)
Current:
Federal	$32,387	($5,003)	$5,807

State	(3,091)	(8,995)	57,939
Total	29,296	(13,998)	63,746
Deferred and non-current - net	(67,520)	205,891	(190,635)
Investment tax credits - net	(754)	(519)	5,383
Income taxes	($38,978)	$191,374	($121,506)

Income taxes for 2022, 2021, and 2020 for Entergy’s Registrant Subsidiaries consist of the following:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	$8,015	($79,079)	$9,242	$1,074	$37,471	($11,720)
State	(1,066)	(1,773)	(6,486)	6,221	2,260	581
Total	6,949	(80,852)	2,756	7,295	39,731	(11,139)
Deferred and non-current - net	74,802	(77,223)	48,443	16,814	11,520	(83,369)
Investment tax credits - net	(855)	(4,778)	3,665	168	(630)	1,680
Income taxes	$80,896	($162,853)	$54,864	$24,277	$50,621	($92,828)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($20,285)	($24,053)	($5,868)	($6,724)	($189)	$29,416
State	529	2,459	(11,506)	(413)	1,261	(10,258)
Total	(19,756)	(21,594)	(17,374)	(7,137)	1,072	19,158
Deferred and non-current - net	96,180	146,786	60,861	12,870	25,087	(25,229)
Investment tax credits - net	(1,229)	(4,783)	1,836	203	(633)	4,094
Income taxes	$75,195	$120,409	$45,323	$5,936	$25,526	($1,977)


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

Total income taxes for Entergy Corporation and Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before income taxes. The reasons for the differences for the years 2022, 2021, and 2020 are:


	2022		2021		2020
	(In Thousands)
Net income attributable to Entergy Corporation	$1,103,166		$1,118,492		$1,388,334
Preferred dividend requirements of subsidiaries and noncontrolling interests	(6,028)		227		18,319
Consolidated net income	1,097,138		1,118,719		1,406,653
Income taxes	(38,978)		191,374		(121,506)
Income before income taxes	$1,058,160		$1,310,093		$1,285,147
Computed at statutory rate (21%)	$222,214		$275,120		$269,881
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	61,368		79,273		60,087
Regulatory differences - utility plant items	(32,143)		(57,556)		(53,229)
Equity component of AFUDC	(14,156)		(14,799)		(25,080)
Amortization of investment tax credits	(7,740)		(7,695)		(8,386)
Flow-through / permanent differences	1,011		(5,585)		11,099

Amortization of excess ADIT (a)	(34,899)		(66,478)		(59,629)

Arkansas and Louisiana rate changes (b)	—		(27,108)		—



Entergy Wholesale Commodities restructuring (c)	—		—		(9,223)

IRS audit adjustment (d)	—		—		(301,041)

Stock compensation (e)	—		—		(25,591)
Entergy Louisiana securitization (f)	(282,620)		—		—
System Energy sale-leaseback order (g)	12,662		—		—
Provision for uncertain tax positions	34,423		16,533		15,208
Valuation allowance	(2,754)		(2,600)		—
Other - net	3,656		2,269		4,398
Total income taxes as reported	($38,978)		$191,374		($121,506)
Effective Income Tax Rate	(3.7	%)	14.6	%	(9.5	%)

(a)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2022, 2021, and 2020 and the tax legislation enactment in 2017.

(b)See “Arkansas and Louisiana Corporate Income Tax Rate Changes” below for details.

(c)See “Other Tax Matters - Entergy Wholesale Commodities Restructuring” below for discussion of the Entergy Wholesale Commodities ownership of Palisades restructuring in 2020.

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

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

(f)See “Other Tax Matters – Act 293 Securitization” below for discussion of the Entergy Louisiana securitization in 2022.

(g)See Note 2 to the financial statements for discussion of the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint.

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes. The reasons for the differences for the years 2022, 2021, and 2020 are:


2022	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$292,887		$855,870		$176,267		$64,101		$303,327		($276,593)
Income taxes	80,896		(162,853)		54,864		24,277		50,621		(92,828)
Pretax income	$373,783		$693,017		$231,131		$88,378		$353,948		($369,421)
Computed at statutory rate (21%)	$78,494		$145,534		$48,538		$18,559		$74,329		($77,578)
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	17,981		44,244		9,659		6,733		2,175		(16,727)
Regulatory differences - utility plant items	(12,466)		(6,347)		(7,726)		(1,908)		(3,010)		(686)
Equity component of AFUDC	(3,437)		(5,513)		(1,286)		(174)		(2,841)		(905)
Amortization of investment tax credits	(1,201)		(4,720)		(223)		175		(614)		(1,155)
Flow-through / permanent differences	106		3,467		4,837		230		765		(641)

Amortization of excess ADIT (a)	—		(13,164)		—		(752)		(20,983)		—
System Energy sale-leaseback order (f)	—		—		—		—		—		12,662
Entergy Louisiana securitization (e)	—		(289,609)		—		—		—		—
Non-taxable dividend income	—		(38,735)		—		—		—		—
Provision for uncertain tax positions	1,600		400		700		1,200		420		(8,000)
Valuation allowance	(1,258)		—		—		—		—		—
Other - net	1,077		1,590		365		214		380		202
Total income taxes as reported	$80,896		($162,853)		$54,864		$24,277		$50,621		($92,828)
Effective Income Tax Rate	21.6	%	(23.5	%)	23.7	%	27.5	%	14.3	%	25.1	%


2021	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$298,484		$653,984		$166,834		$31,798		$228,824		$106,814
Income taxes	75,195		120,409		45,323		5,936		25,526		(1,977)
Pretax income	$373,679		$774,393		$212,157		$37,734		$254,350		$104,837
Computed at statutory rate (21%)	$78,473		$162,623		$44,553		$7,924		$53,413		$22,016
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	19,633		41,030		9,305		2,579		1,553		5,385
Regulatory differences - utility plant items	(16,078)		(14,123)		(8,133)		(4,332)		(2,115)		(12,776)
Equity component of AFUDC	(3,207)		(6,016)		(1,701)		(498)		(2,077)		(1,300)
Amortization of investment tax credits	(1,201)		(4,729)		64		(56)		(617)		(1,155)
Flow-through / permanent differences	(814)		(2,655)		124		1,559		(475)		(1,235)

Amortization of excess ADIT (a)	(5,845)		(24,323)		—		(1,028)		(21,929)		(13,354)
Arkansas and Louisiana rate changes (b)	398		(6,126)		395		(1,569)		216		115

Non-taxable dividend income	—		(26,801)		—		—		—		—
Provision for uncertain tax positions	353		300		465		1,200		(2,716)		200
Valuation allowance	2,766		—		—		—		—		—
Other - net	717		1,229		251		157		273		127
Total income taxes as reported	$75,195		$120,409		$45,323		$5,936		$25,526		($1,977)
Effective Income Tax Rate	20.1	%	15.5	%	21.4	%	15.7	%	10.0	%	(1.9	%)


2020	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Net income	$245,232		$1,082,352		$140,583		$49,338		$215,073		$99,131
Income taxes	47,777		(382,324)		27,190		(4,207)		3,042		20,543
Pretax income	$293,009		$700,028		$167,773		$45,131		$218,115		$119,674
Computed at statutory rate (21%)	$61,532		$147,006		$35,232		$9,478		$45,804		$25,132
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	16,256		38,182		6,917		2,606		1,460		5,524
Regulatory differences - utility plant items	(8,034)		(23,819)		(7,441)		(3,442)		(7,673)		(2,821)
Equity component of AFUDC	(3,154)		(8,012)		(1,412)		(1,331)		(9,255)		(1,916)
Amortization of investment tax credits	(1,201)		(4,811)		(540)		(61)		(617)		(1,155)
Flow-through / permanent differences	(2,219)		1,404		(102)		498		766		(421)

Amortization of excess ADIT (a)	(6,011)		(26,293)		18		(4,564)		(22,780)		—
Stock compensation (d)	(4,952)		(9,004)		(2,763)		(1,526)		(2,842)		(1,300)
IRS audit adjustment (c)	(6,351)		(471,702)		(3,768)		(6,819)		(2,091)		(2,925)
Non-taxable dividend income	—		(26,795)		—		—		—		—
Provision for uncertain tax positions	1,200		300		800		800		—		300
Other - net	711		1,220		249		154		270		125
Total income taxes as reported	$47,777		($382,324)		$27,190		($4,207)		$3,042		$20,543
Effective Income Tax Rate	16.3	%	(54.6	%)	16.2	%	(9.3	%)	1.4	%	17.2	%

(a)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2022, 2021, and 2020 and the tax legislation enactment in 2017.

(b)See “Arkansas and Louisiana Corporate Income Tax Rate Changes” below for details.

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

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

(e)See “Other Tax Matters - Act 293 Securitization” below for discussion of the Entergy Louisiana securitization in 2022.

(f)See Note 2 to the financial statements for discussion of the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint.

Significant components of accumulated deferred income taxes and taxes accrued for Entergy Corporation and Subsidiaries as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($5,270,010)	($6,136,563)
Regulatory assets	(937,554)	(930,244)
Nuclear decommissioning trusts/receivables	(318,570)	(656,185)
Pension, net regulatory asset	(336,496)	(322,788)
Combined unitary state taxes	(10,335)	(7,255)
Power purchase agreements	(3,993)	—
Accumulated storm damage provision	(35,213)	(207,243)
Deferred fuel	(181,222)	(85,310)
Other	(333,421)	(341,450)
Total	(7,426,814)	(8,687,038)
Deferred tax assets:
Nuclear and other decommissioning liabilities	173,201	278,136
Regulatory liabilities	1,108,075	1,318,381
Pension and other post-employment benefits	141,399	208,128
Sale and leaseback	—	102,474
Compensation	76,317	79,798
Accumulated deferred investment tax credit	57,501	57,986
Provision for allowances and contingencies	97,545	82,286
Power purchase agreements	—	55,259
Unbilled/deferred revenues	21,905	26,683
Net operating loss carryforwards	2,065,149	2,868,424
Capital losses and miscellaneous tax credits	28,876	11,111
Valuation allowance	(372,017)	(325,239)
Other	245,236	200,032
Total	3,643,187	4,963,459
Non-current accrued taxes (including unrecognized tax benefits)	(951,110)	(929,032)
Accumulated deferred income taxes and taxes accrued	($4,734,737)	($4,652,611)

Entergy’s estimated tax attributes carryovers and their expiration dates as of December 31, 2022 are as follows:

Carryover Description

Carryover Amount

Year(s) of expiration

Federal net operating losses before 1/1/2018

$6.2 billion

2023-2027

Federal net operating losses - 1/1/2018 forward

$20.1 billion

N/A

State net operating losses

$7.7 billion

2023-2042

State net operating losses with no expiration

$15.7 billion

N/A

Other federal and state carryforwards

$515.7 million

2023-2027

Miscellaneous federal and state credits

$90.1 million

2023-2042

As a result of the accounting for uncertain tax positions, the amount of the deferred tax assets reflected in the financial statements is less than the amount of the tax effect of the federal and state net operating loss carryovers, tax credit carryovers, and other tax attributes reflected on income tax returns. Entergy evaluates the available positive and negative evidence to estimate whether sufficient future taxable income of the appropriate character will be generated to realize the benefits of existing deferred tax assets. When the evaluation indicates that Entergy will not be able to realize the existing benefits, a valuation allowance is recorded to reduce deferred tax assets to the realizable amount.

Because it is more likely than not that the benefits from certain state net operating losses and other deferred tax assets will not be utilized, valuation allowances totaling $372 million as of December 31, 2022 and $325 million as of December 31, 2021 have been provided on the deferred tax assets related to federal and state jurisdictions in which Entergy does not currently expect to be able to utilize certain separate company tax return attributes, preventing realization of such deferred tax assets. As a result of incurring costs related to Hurricane Ida restoration, certain Utility operating companies are entitled to an accelerated tax deduction which generated a taxable loss in various taxing jurisdictions. This accelerated deduction has impaired the realizability of a limited term carryover tax attribute. Accordingly, the impairment contributed to the activity reflected for the valuation allowance disclosed above.

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2022 and 2021 are as follows:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,181,456)	($2,513,138)	($691,675)	($115,841)	($614,134)	($448,010)
Regulatory assets	(244,624)	(457,102)	(44,358)	(24,738)	(95,717)	(68,742)
Nuclear decommissioning trusts/receivables	(107,858)	(118,172)	—	—	—	(92,527)
Pension, net regulatory asset	(93,139)	(82,891)	(22,256)	(9,604)	(18,111)	(17,889)
Deferred fuel	(35,205)	(49,792)	(37,333)	(2,560)	(54,204)	(128)
Accumulated storm damage provision	—	(31,337)	—	—	(3,876)	—
Power purchase agreements	(8,296)	(11,181)	—	(9,372)	(22,014)	—
Other	(76,813)	(126,350)	(26,752)	(21,977)	(4,126)	(14,364)
Total	(1,747,391)	(3,389,963)	(822,374)	(184,092)	(812,182)	(641,660)
Deferred tax assets:
Regulatory liabilities	236,318	508,594	54,454	27,438	47,248	237,452
Nuclear and other decommissioning liabilities	139,499	12,883	1	—	97	18,940
Pension and other post-employment benefits	(28,463)	52,414	(9,196)	(18,114)	(20,867)	(2,481)

Accumulated deferred investment tax credit	7,171	29,271	3,641	4,438	1,829	11,151

Provision for allowances and contingencies	26,432	15,741	10,300	26,671	7,755	—

Unbilled/deferred revenues	6,211	(2,405)	5,826	4,090	7,572	—
Compensation	3,361	5,207	2,316	1,107	1,712	308
Net operating loss carryforwards	10,491	307,175	10,140	12,146	27,620	20,639
Capital losses and miscellaneous tax credits	719	2,774	5,152	11,006	3,728	8,261
Other	24,969	41,310	6,849	11,105	729	—
Total	426,708	972,964	89,483	79,887	77,423	294,270
Non-current accrued taxes (including unrecognized tax benefits)	(177,551)	42,121	(47,139)	(281,054)	(9,468)	(28,680)
Accumulated deferred income taxes and taxes accrued	($1,498,234)	($2,374,878)	($780,030)	($385,259)	($744,227)	($376,070)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,158,523)	($3,429,473)	($681,968)	($192,660)	($654,252)	($433,874)
Regulatory assets	(226,687)	(530,274)	(34,799)	(30,694)	(45,470)	(61,205)
Nuclear decommissioning trusts/receivables	(175,882)	(186,382)	—	—	—	(153,610)
Pension, net regulatory asset	(92,881)	(93,681)	(22,253)	(11,429)	(19,914)	(18,033)
Deferred fuel	(27,497)	(13,686)	(30,409)	(1,600)	(10,139)	(49)
Accumulated storm damage provision	—	(193,967)	—	—	(13,276)	—
Other	(77,820)	(138,299)	(29,108)	(33,071)	(2,526)	(5,622)
Total	(1,759,290)	(4,585,762)	(798,537)	(269,454)	(745,577)	(672,393)
Deferred tax assets:
Regulatory liabilities	310,256	634,184	59,418	36,057	55,022	224,036
Nuclear and other decommissioning liabilities	123,568	(909)	1	(433)	94	9,432
Pension and other post-employment benefits	(26,577)	73,006	(7,793)	(16,090)	(18,793)	(1,925)
Sale and leaseback	—	—	—	—	—	102,474
Accumulated deferred investment tax credit	7,518	30,666	2,723	4,391	1,958	10,729
Provision for allowances and contingencies	24,829	21,768	10,236	5,559	7,730	—
Power purchase agreements	—	—	1,140	—	(1,202)	—
Unbilled/deferred revenues	3,331	9,919	2,306	971	10,196	—
Compensation	3,347	5,288	2,181	1,036	1,618	447
Net operating loss carryforwards	275,054	1,228,547	166,008	105,549	81	—
Capital losses and miscellaneous tax credits	—	5,141	1,258	10,977	883	1,958
Other	19,397	5,968	2,891	7,788	863	2
Total	740,723	2,013,578	240,369	155,805	58,450	347,153
Non-current accrued taxes (including unrecognized tax benefits)	(397,634)	138,330	(161,929)	(251,735)	(5,369)	(57,691)
Accumulated deferred income taxes and taxes accrued	($1,416,201)	($2,433,854)	($720,097)	($365,384)	($692,496)	($382,931)

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2022 are as follows:

Entergy Arkansas

Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas

System Energy

Federal net operating losses before 1/1/2018

$— billion

$1.2 billion

$— billion

$0.6 billion

$— billion

Year(s) of expiration

N/A

2035-2037

N/A

2037

N/A

Federal net operating losses - 1/1/2018 forward

$4.7 billion

$3.8 billion

$1.9 billion

$0.5 billion

$1.9 billion

$0.1 billion

Year(s) of expiration

N/A

State net operating losses

$4.9 billion

$6.5 billion

$2 billion

$1.4 billion

$1 million

$0.2 million

Year(s) of expiration

2023-2031

N/A

2038-2041

N/A

2028

N/A

Misc. federal credits

$7.2 million

$14.1 million

$2.9 million

$15.7 million

$3.2 million

$2.2 million

Year(s) of expiration

2038-2042

2035-2042

2038-2042

2037-2042

2036-2042

State credits

$— million

$6.8 million

$— million

$2.4 million

$15.5 million

Year(s) of expiration

N/A

2023-2026

N/A

2027-2032

2023-2026

As a result of the accounting for uncertain tax positions, the amount of the deferred tax assets reflected in the financial statements is less than the amount of the tax effect of the federal and state net operating loss carryovers and tax credit carryovers.

Unrecognized tax benefits

Accounting standards establish a “more-likely-than-not” recognition threshold that must be met before a tax benefit can be recognized in the financial statements. If a tax deduction is taken on a tax return but does not meet the more-likely-than-not recognition threshold, an increase in income tax liability, above what is payable on the tax return, is required to be recorded. A reconciliation of Entergy’s beginning and ending amount of unrecognized tax benefits is as follows:


	2022	2021	2020
	(In Thousands)
Gross balance at January 1	$5,759,968	$5,699,339	$7,383,154
Additions based on tax positions related to the current year	792,134	101,623	669,207
Additions for tax positions of prior years	37,259	33,419	98,591
Reductions for tax positions of prior years	(195,762)	(74,413)	(935,735)
Settlements	—	—	(1,515,878)

Gross balance at December 31	6,393,599	5,759,968	5,699,339
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(5,566,212)	(4,987,799)	(4,710,214)
Cash paid to taxing authorities	(82,000)	(60,000)	(10,000)
Unrecognized tax benefits net of unused tax attributes and payments (a)	$745,387	$712,169	$979,125

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

The balances of unrecognized tax benefits include $3,254 million, $2,256 million, and $2,208 million as of December 31, 2022, 2021, and 2020, respectively, which, if recognized, would lower the effective income tax rates. Because of the effect of deferred tax accounting, the remaining balances of unrecognized tax benefits of $3,140 million, $3,504 million, and $3,491 million as of December 31, 2022, 2021, and 2020, respectively, if disallowed, would not affect the annual effective income tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

Entergy accrues interest expense, if any, related to unrecognized tax benefits in income tax expense. Entergy’s December 31, 2022, 2021, and 2020 accrued balance for the possible payment of interest is approximately $50 million, $52 million, and $44 million, respectively. Interest (net-of-tax) of ($2) million, $8 million, and ($4) million was recorded in 2022, 2021, and 2020, respectively.

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2022, 2021, and 2020 is as follows:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2022	$1,408,494	$604,628	$549,569	$639,497	$552,295	$23,356
Additions based on tax positions related to the current year (b)	40,502	750,320	185	72	173	690
Additions for tax positions of prior years	6,233	10,262	1,122	393	801	761
Reductions for tax positions of prior years	(2,410)	(14,374)	(3,328)	(1,236)	(163,903)	(1,105)

Gross balance at December 31, 2022	1,452,819	1,350,836	547,548	638,726	389,366	23,702
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(1,277,414)	(1,328,916)	(504,940)	(455,928)	(377,054)	(23,702)
Unrecognized tax benefits net of unused tax attributes	$175,405	$21,920	$42,608	$182,798	$12,312	$—


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2021	$1,364,635	$640,295	$549,717	$639,546	$521,932	$21,652
Additions based on tax positions related to the current year	30,419	13,437	684	1,050	32,616	1,753
Additions for tax positions of prior years	15,013	9,304	1,504	6	2,315	1,897
Reductions for tax positions of prior years	(1,573)	(58,408)	(2,336)	(1,105)	(4,568)	(1,946)

Gross balance at December 31, 2021	1,408,494	604,628	549,569	639,497	552,295	23,356
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(992,643)	(604,628)	(388,728)	(484,899)	(540,694)	(8,576)
Unrecognized tax benefits net of unused tax attributes	$415,851	$—	$160,841	$154,598	$11,601	$14,780


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

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

(b)The primary additions for Entergy Louisiana in 2022 are related to the Entergy Louisiana securitization as discussed in “Other Tax Matters - Act 293 Securitization” below.

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


	December 31,
	2022	2021	2020
	(In Millions)
Entergy Arkansas	$377.9	$262.1	$259.3
Entergy Louisiana	$720.8	$66.3	$63.8
Entergy Mississippi	$151.2	$51.7	$50.7
Entergy New Orleans	$310.7	$228.6	$203.5
Entergy Texas	$3.3	$2.6	$6.1
System Energy	$2.5	$1.7	$0.5

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


	December 31,
	2022	2021	2020
	(In Millions)
Entergy Arkansas	$4.3	$2.7	$2.3
Entergy Louisiana	$4.1	$3.7	$3.4
Entergy Mississippi	$3.1	$2.4	$1.9
Entergy New Orleans	$6.4	$5.2	$3.9
Entergy Texas	$1.1	$1.1	$0.9
System Energy	$1.9	$12.1	$11.9

The Registrant Subsidiaries record interest and penalties related to unrecognized tax benefits in income tax expense. No penalties were recorded in 2022, 2021, and 2020. Interest (net-of-tax) was recorded as follows:


	2022	2021	2020
	(In Millions)
Entergy Arkansas	$1.6	$0.4	($0.8)
Entergy Louisiana	$0.4	$0.3	($10.8)
Entergy Mississippi	$0.7	$0.5	$0.2
Entergy New Orleans	$1.2	$1.3	($0.8)
Entergy Texas	$—	$0.2	($0.2)
System Energy	($10.2)	$0.2	($2.6)

Income Tax Audits

Entergy and its subsidiaries file U.S. federal and various state income tax returns. IRS examinations are complete for years before 2016. All state taxing authorities’ examinations are complete for years before 2014. Entergy regularly defends its positions and works with the IRS to resolve audits. The resolution of audit issues could result in significant changes to the amounts of unrecognized tax benefits in the next twelve months.

2014-2015 IRS Audit

The IRS completed its examination of the 2014 and 2015 tax years and issued its 2014-2015 RAR in November 2020. Entergy agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of the adjustments associated with the audit in 2020.

In October 2015 two of Entergy’s Louisiana utilities, Entergy Gulf States Louisiana and Entergy Louisiana, combined their businesses into a legal entity which is identified as Entergy Louisiana herein. The structure of the business combination required Entergy to recognize a gain for income tax purposes which resulted in an increase in the tax basis of the assets for Entergy Louisiana. This resulted in recognition in 2015 of a $334 million permanent difference and income tax benefit, net of the uncertain tax position recorded on the transaction.

Primarily related to resolution of the business combination issues, completion of the 2014-2015 IRS audit in 2020 resulted in a $230 million reduction to deferred income tax expense for Entergy. This reduction to deferred income tax expense includes: Entergy Louisiana reversing its provision for uncertain tax position with respect to the business combination, which resulted in a reduction to deferred income tax expense of $383 million; Entergy Corporation recording an increase to deferred tax expense of $61 million and Entergy Wholesale Commodities recording an increase to deferred tax expense of $105 million from the re-measurement of deferred tax assets associated with the resolved uncertain tax position; and miscellaneous other individually insignificant benefits totaling $13 million.

The completion of the 2014-2015 tax audit also resulted in a $31 million reduction to income tax expense associated with Entergy Louisiana’s method of accounting related to the adoption of tangible property regulations. As a result of the settlement of the tangible property regulation tax position, Entergy Louisiana was required to record a $33 million ($24 million net-of-tax) regulatory charge and a corresponding regulatory liability to reflect its obligation to customers pursuant to a prior regulatory settlement.

Finally, upon completion of the 2014-2015 tax audit, Entergy New Orleans recorded a reduction to income tax expense of $8 million associated with claims for mark-to-market deductions.

In the first quarter 2020, Entergy and the IRS agreed on the treatment of funds received by Entergy Louisiana in conjunction with the Act 55 financing of Hurricane Isaac storm costs, which resulted in a net reduction

of income tax expense of approximately $32 million. As a result of the settlement, the position was partially sustained, and Entergy Louisiana recorded a reduction of income tax expense of approximately $58 million primarily due to the reversal of a provision for uncertain tax positions in excess of the agreed-upon settlement. As a result of the IRS settlement, Entergy Louisiana recorded a $29 million ($21 million net-of-tax) regulatory charge and a corresponding regulatory liability to reflect its obligation to customers pursuant to the LPSC Hurricane Isaac Act 55 financing order.

Additional effects of the completion of the 2014-2015 IRS tax audit are discussed below within Tax Accounting Methods.

State Income Tax Audits

As a result of income tax audit adjustments proposed by the Arkansas Department of Finance and Administration, an Entergy Wholesale Commodities subsidiary recorded a provision in third quarter 2022 for uncertain tax positions of approximately $21 million, which includes interest expense.

Other Tax Matters

Tax Cuts and Jobs Act (TCJA)

The most significant effect of the TCJA for Entergy and the Registrant Subsidiaries was the change in the federal corporate income tax rate from 35% to 21%, effective January 1, 2018.

TCJA also limited the deduction for net business interest expense to 30 percent of adjusted taxable income, which is similar to earnings before interest, taxes, depreciation, and amortization. The limitation does not apply to interest expense that is properly allocable to a trade or business classified as a regulated public utility. This was further modified by a temporary provision of the CARES Act resulting in an increase of the adjusted taxable income limitation from 30% to 50% for tax years that begin in 2019 or 2020.

The IRS issued final regulations which were effective for Entergy beginning with the 2021 tax year. The regulations provide that if 90% of a tax group’s consolidated assets consist of regulated utility property, the entire consolidated tax group will be treated as a regulated public utility and all of the consolidated group’s interest expense will be currently tax deductible. Entergy expects that its classification as a public utility will continue to apply to its business operations making the application of the interest expense limitation to Entergy unlikely. The provision has not resulted in Entergy having to report any significant business interest expense limitations on its tax returns.

With respect to the federal corporate income tax rate change from 35% to 21% in 2017, Entergy and the Registrant Subsidiaries recorded a regulatory liability associated with the decrease in the net accumulated deferred income tax liability, which is often referred to as “excess ADIT,” a significant portion of which has been paid to customers since 2019 in the form of lower rates. Entergy’s December 31, 2022 and December 31, 2021 balance sheets reflect a regulatory liability of $1.3 billion and $1.3 billion, respectively, as a result of the re-measurement of deferred tax assets and liabilities from the income tax rate change, amortization of excess ADIT, and payments to customers since the enactment of TCJA.

Entergy’s regulatory liability for income taxes includes a gross-up at the applicable tax rate because of the effect that excess ADIT has on the ratemaking formula. The regulatory liability for income taxes includes the effect of a) the reduction of the net deferred tax liability resulting in excess ADIT, and b) the tax gross-up of excess ADIT. The Registrant Subsidiaries’ December 31, 2022 and December 31, 2021 balance sheets reflect net regulatory liabilities for income taxes as follows:


	2022	2021
	(In Millions)
Entergy Arkansas	$435	$432
Entergy Louisiana	$338	$338
Entergy Mississippi	$202	$212
Entergy New Orleans	$40	$42
Entergy Texas	$133	$171
System Energy	$111	$113

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the TCJA, referred to as “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The TCJA provides that the normalization method of accounting for income taxes is required for excess ADIT associated with public utility property. The TCJA provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2022 and December 31, 2021, includes protected excess ADIT as follows:


	2022	2021
	(In Millions)
Entergy Arkansas	$453	$463
Entergy Louisiana	$675	$669
Entergy Mississippi	$226	$237
Entergy New Orleans	$53	$56
Entergy Texas	$201	$208
System Energy	$137	$148

Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2022 and December 31, 2021, includes unprotected excess ADIT as follows:


	2022	2021
	(In Millions)
Entergy Arkansas	$27	$12
Entergy Louisiana	$135	$148


Entergy Texas	$—	$26

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2022 and 2021:


	2022	2021
	(In Millions)
Entergy	$53	$88
Entergy Arkansas	$—	$8
Entergy Louisiana	$25	$33

Entergy New Orleans	$1	$1
Entergy Texas	$27	$28
System Energy	$—	$18

In addition to the protected and unprotected excess ADIT amounts, the net regulatory liability for income taxes includes other regulatory assets and liabilities for income taxes associated with AFUDC, which is described in Note 1 to the financial statements.

Included in the effect of the computation of the changes in deferred tax assets and liabilities is the recognition threshold and measurement of uncertain tax positions resulting in unrecognized tax benefits. The final economic outcome of such unrecognized tax benefits is generally the result of a negotiated settlement with the IRS that often differs from the amount that is recorded as realizable under GAAP. The intrinsic uncertainty with respect to all such tax positions means that the difference between current estimates of such amounts likely to be realized and actual amounts realized upon settlement may have an effect on income tax expense and the regulatory liability for income taxes in future periods.

Entergy anticipates that the effect of TCJA may continue to have ramifications that require adjustments in the future as certain events occur. These events include: 1) IRS audit adjustments to or amendments of federal and state income tax returns that include modifications to the computation of taxable income resulting from TCJA; and 2) additional guidance, interpretations, or rulings by the U.S. Department of the Treasury or the IRS. The potential exists for these types of events to result in future tax expense adjustments because of the difference in the federal corporate income tax rate between past and future periods and the effect of the tax rate change on ratemaking. In turn, these events also could potentially affect the regulatory liability for income taxes.

Coronavirus Aid, Relief, and Economic Security Act

In response to the economic impacts of the COVID-19 pandemic, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law on March 27, 2020. The CARES Act provisions that result in the most significant opportunities for tax relief to Entergy and the Registrant Subsidiaries are (i) permitting a five-year carryback of 2018-2020 NOLs, (ii) removing the 80 percent limitation on NOLs carried to tax years beginning before 2021, (iii) increasing the limitation on interest expense deductibility for 2019 and 2020, (iv) accelerating available refunds for minimum tax credit carryforwards, modifying limitations on charitable contributions during 2020, and (v) delaying the payment of employer payroll taxes. Entergy deferred approximately $64 million of 2020 payroll tax payments, payable in equal installments over two years. The initial installment of $32 million was paid in December 2021. The second installment of $32 million was paid in December 2022.

Inflation Reduction Act of 2022

The Inflation Reduction Act of 2022, signed into law on August 16, 2022, significantly expanded federal tax incentives for clean energy production, including the extension of production tax credits to solar projects and certain qualified nuclear power plants. Additionally, the Inflation Reduction Act of 2022 enacted a 1% excise tax on the buyback of public company stock and a new corporate alternative minimum tax. There are no effects on the financial statements as of and for the year ended December 31, 2022 related to the enactment of the law. See the

“Income Tax Legislation” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for additional discussion of the effects of the Inflation Reduction Act of 2022.

Entergy Wholesale Commodities Restructuring

In the fourth quarter 2020, Entergy’s ownership of Palisades was restructured. The restructuring required Entergy to recognize Palisades’ nuclear decommissioning liability for income tax purposes resulting in a tax accounting permanent difference that reduced income tax expense, net of unrecognized tax benefits, by $9.2 million. The accrual of the nuclear decommissioning liability also required Entergy to recognize a gain for income tax purposes, a portion of which resulted in an increase in the tax basis of the assets. Recognition of the gain and the increase in the tax basis of the assets represents a tax accounting temporary difference.

Tax Accounting Methods

In the fourth quarter 2015, System Energy and Entergy Louisiana adopted a new method of accounting for income tax return purposes in which their nuclear decommissioning costs will be treated as production costs of electricity includable in cost of goods sold. The new method resulted in a reduction of taxable income of $1.2 billion for System Energy and $2.2 billion for Energy Louisiana.

In conjunction with the 2014-2015 IRS audit discussed above, the IRS issued proposed adjustments concerning the nuclear decommissioning tax position allowing System Energy to include $102 million of its decommissioning liability in cost of goods sold, and Entergy Louisiana to include $221 million of its decommissioning liability in cost of goods sold. Entergy, System Energy, and Entergy Louisiana agreed to the proposed adjustments included in the RAR.

As a result of System Energy being allowed to include part of its decommissioning liability in cost of goods sold, System Energy and Entergy recorded a deferred tax liability of $26 million at the time the matter was agreed upon. System Energy also recorded federal and state taxes payable of $402 million. However, on a consolidated basis, Entergy utilized tax loss carryovers to offset the federal taxable income adjustment and did not record federal taxes payable as a result of the outcome of this uncertain tax position.

As a result of Entergy Louisiana being allowed to include part of its decommissioning liability in cost of goods sold, Entergy Louisiana and Entergy recorded a deferred tax liability of $60 million at the time the matter was agreed upon. Both Entergy Louisiana and Entergy utilized tax loss carryovers to offset the taxable income adjustment and accordingly did not record taxes payable as a result of the outcome of this uncertain tax position.

The partial disallowance of this uncertain tax position to include the decommissioning liability in cost of goods sold resulted in a $1.5 billion decrease in the balance of unrecognized tax benefits related to federal and state taxes for Entergy. Additionally, both System Energy and Entergy Louisiana recorded a reduction to their balances of unrecognized tax benefits for federal and state taxes of $461 million and $1.1 billion, respectively.

Entergy Arkansas adopted the same method of accounting for its nuclear decommissioning costs which resulted in a $1.8 billion reduction in taxable income on its 2018 tax return.

In 2016, Entergy Louisiana elected mark-to-market income tax treatment for various wholesale electric power purchase and sale agreements, including Entergy Louisiana’s contract to purchase electricity from the Vidalia hydroelectric facility and from System Energy under the Unit Power Sales Agreement. The election resulted in a $2.2 billion deductible temporary difference. In 2017, Entergy New Orleans also elected mark-to-market income tax treatment for wholesale electric contracts which resulted in a $1.1 billion deductible temporary difference. In 2018, Entergy Arkansas and Entergy Mississippi accrued deductible temporary differences related to mark-to-market tax accounting for wholesale electric contracts of $2.1 billion and $1.9 billion, respectively. Additionally, in

2020, Entergy Texas elected mark-to-market income tax treatment for wholesale electric power purchase and sale agreements which resulted in a $2.5 billion deductible temporary difference.

Arkansas and Louisiana Corporate Income Tax Rate Changes

In April 2019, December 2021, and August 2022 the State of Arkansas enacted corporate income tax law changes that phased in rate reductions from the former rate of 6.5% to 6.2% in 2021, and 5.9% in 2022. The August 2022 legislation accelerated the rate reduction to 5.3% for tax years beginning on or after January 1, 2023, accelerating the rate reductions that were originally scheduled to take effect in the 2025 tax year. As a result of the 2019 rate reduction, Entergy Arkansas computed a regulatory liability for income taxes as of December 31, 2020 of approximately $21 million, which includes a tax gross-up related to the treatment of income taxes in the retail and wholesale ratemaking formulas and has been included in the appropriate rate mechanisms. Entergy Arkansas recorded incremental regulatory liabilities of $11 million and $15 million associated with the rate reductions enacted in 2021 and 2022, respectively. The Arkansas tax law enactment also phases in an increase to the net operating loss carryover period from five to ten years.

Pursuant to legislation enacted in 2021 and approved by Louisiana citizens by amendment to the state constitution, beginning January 1, 2022, federal income taxes paid will no longer be deductible for state income tax purposes, and the top Louisiana corporate income tax rate will be reduced from 8% to 7.5%. As a result of this change in Louisiana tax law, the Louisiana applicable tax rate increased by 0.85%. Accordingly, deferred tax assets and liabilities were adjusted to reflect the new applicable federal and state rates. Legislation enacted in 2021 also provides that Louisiana net operating losses generally have an indefinite carryover period.

Entergy recorded a net increase to its deferred tax asset of $27 million. Entergy Louisiana and Entergy New Orleans recorded net increases to their deferred tax liabilities before consideration of the tax gross-up of $77 million and $8 million, respectively, which were offset by regulatory assets for income taxes. Therefore, these increases had no effect on tax expense. However, the increase of deferred tax assets associated with certain assets reduced tax expense for Entergy Louisiana and Entergy New Orleans by $6 million and $2 million, respectively.

Stock Compensation

In accordance with stock compensation accounting rules, Entergy and the Registrant Subsidiaries recognized excess tax deductions as a reduction of income tax expense in the first quarter 2020. Due to the vesting and exercise of certain Entergy stock-based awards, Entergy recorded a permanent tax reduction of approximately $24.7 million, including $4.8 million for Entergy Arkansas, $8.6 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.5 million for Entergy New Orleans, $2.7 million for Entergy Texas, and $1.3 million for System Energy.

Act 293 Securitization

As described in Note 2 to the financial statements, Entergy Louisiana implemented a securitization authorized under Act 293 of the Louisiana legislature. Act 293 provides that the LURC contribute the net bond proceeds to a LURC-sponsored trust. Over the 15-year term of the Act 293 bonds, the storm trust will make distributions to Entergy Louisiana, a beneficiary of the storm trust, that will not be taxable to Entergy Louisiana. Additionally, Entergy Louisiana will not include the receipt of the system restoration charges in taxable income because the right to receive the system restoration charges has been granted directly to the LURC, and Entergy Louisiana only acts as an agent to collect those charges on behalf of the LURC.

Accordingly, the securitization provides for a tax accounting permanent difference resulting in a net reduction of income tax expense in second quarter 2022 of approximately $290 million, after taking into account a provision for uncertain tax positions, by Entergy Louisiana. Entergy’s recognition of reduced income tax expense

was offset by other tax charges resulting in a net reduction of income tax expense of $283 million, after taking into account a provision for uncertain tax positions.

In recognition of its obligations related to an LPSC ancillary order issued as part of the securitization regulatory proceeding, Entergy Louisiana recorded in second quarter 2022 a $224 million ($165 million net-of-tax) regulatory charge and a corresponding regulatory liability to reflect its obligation to share the benefits of the securitization with customers. See Note 2 to the financial statements for discussion of the Entergy Louisiana securitization.

Income Taxes

INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Income taxes for 2022, 2021, and 2020 for Entergy Corporation and Subsidiaries consist of the following:


	2022	2021	2020
	(In Thousands)
Current:
Federal	$32,387	($5,003)	$5,807

State	(3,091)	(8,995)	57,939
Total	29,296	(13,998)	63,746
Deferred and non-current - net	(67,520)	205,891	(190,635)
Investment tax credits - net	(754)	(519)	5,383
Income taxes	($38,978)	$191,374	($121,506)

Income taxes for 2022, 2021, and 2020 for Entergy’s Registrant Subsidiaries consist of the following:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	$8,015	($79,079)	$9,242	$1,074	$37,471	($11,720)
State	(1,066)	(1,773)	(6,486)	6,221	2,260	581
Total	6,949	(80,852)	2,756	7,295	39,731	(11,139)
Deferred and non-current - net	74,802	(77,223)	48,443	16,814	11,520	(83,369)
Investment tax credits - net	(855)	(4,778)	3,665	168	(630)	1,680
Income taxes	$80,896	($162,853)	$54,864	$24,277	$50,621	($92,828)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($20,285)	($24,053)	($5,868)	($6,724)	($189)	$29,416
State	529	2,459	(11,506)	(413)	1,261	(10,258)
Total	(19,756)	(21,594)	(17,374)	(7,137)	1,072	19,158
Deferred and non-current - net	96,180	146,786	60,861	12,870	25,087	(25,229)
Investment tax credits - net	(1,229)	(4,783)	1,836	203	(633)	4,094
Income taxes	$75,195	$120,409	$45,323	$5,936	$25,526	($1,977)


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

Total income taxes for Entergy Corporation and Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before income taxes. The reasons for the differences for the years 2022, 2021, and 2020 are:


	2022		2021		2020
	(In Thousands)
Net income attributable to Entergy Corporation	$1,103,166		$1,118,492		$1,388,334
Preferred dividend requirements of subsidiaries and noncontrolling interests	(6,028)		227		18,319
Consolidated net income	1,097,138		1,118,719		1,406,653
Income taxes	(38,978)		191,374		(121,506)
Income before income taxes	$1,058,160		$1,310,093		$1,285,147
Computed at statutory rate (21%)	$222,214		$275,120		$269,881
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	61,368		79,273		60,087
Regulatory differences - utility plant items	(32,143)		(57,556)		(53,229)
Equity component of AFUDC	(14,156)		(14,799)		(25,080)
Amortization of investment tax credits	(7,740)		(7,695)		(8,386)
Flow-through / permanent differences	1,011		(5,585)		11,099

Amortization of excess ADIT (a)	(34,899)		(66,478)		(59,629)

Arkansas and Louisiana rate changes (b)	—		(27,108)		—



Entergy Wholesale Commodities restructuring (c)	—		—		(9,223)

IRS audit adjustment (d)	—		—		(301,041)

Stock compensation (e)	—		—		(25,591)
Entergy Louisiana securitization (f)	(282,620)		—		—
System Energy sale-leaseback order (g)	12,662		—		—
Provision for uncertain tax positions	34,423		16,533		15,208
Valuation allowance	(2,754)		(2,600)		—
Other - net	3,656		2,269		4,398
Total income taxes as reported	($38,978)		$191,374		($121,506)
Effective Income Tax Rate	(3.7	%)	14.6	%	(9.5	%)