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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.

Lessor, Sales-type Leases

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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.

Lessor, Sales-type Leases

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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.

Lessor, Sales-type Leases

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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.

Lessor, Sales-type Leases

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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.

Lessor, Sales-type Leases

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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.

Lessor, Sales-type Leases

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

As of December 31, 2022 and 2021, Entergy and the Registrant Subsidiaries held operating and finance leases for fleet vehicles used in operations, real estate, and aircraft. Excluded are power purchase agreements not meeting the definition of a lease, nuclear fuel leases, and the Grand Gulf sale-leaseback which were determined not to be leases under the accounting standards.

Leases have remaining terms of one year to 58 years. Real estate leases generally include at least one five-year renewal option; however, renewal is not typically considered reasonably certain unless Entergy or a Registrant Subsidiary makes significant leasehold improvements or other modifications that would hinder its ability to easily move. In certain of the lease agreements for fleet vehicles used in operations, Entergy and the Registrant Subsidiaries provide residual value guarantees to the lessor. Due to the nature of the agreements and Entergy’s continuing relationship with the lessor, however, Entergy and the Registrant Subsidiaries expect to renegotiate or refinance the leases prior to conclusion of the lease. As such, Entergy and the Registrant Subsidiaries do not believe it is probable that they will be required to pay anything pertaining to the residual value guarantee, and the lease liabilities and right-of-use assets are measured accordingly.

Entergy incurred the following total lease costs for the years ended December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Operating lease cost	$65,463	$69,067
Finance lease cost:
Amortization of right-of-use assets	$13,493	$12,483
Interest on lease liabilities	$2,702	$2,845

Of the lease costs disclosed above, Entergy had $5.4 million and $2.8 million in short-term leases costs for the years ended December 31, 2022 and 2021, respectively.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,435	$15,016	$7,510	$1,755	$5,624
Finance lease cost:
Amortization of right-of-use assets	$3,048	$4,259	$1,962	$906	$1,629
Interest on lease liabilities	$402	$592	$261	$134	$230

Of the lease costs disclosed above, Entergy Arkansas had $1.7 million, Entergy Louisiana had $1.8 million, Entergy Mississippi had $0.9 million, Entergy New Orleans had $0.2 million, and Entergy Texas had $0.8 million in short-term lease costs for the year ended December 31, 2022.

The Registrant Subsidiaries incurred the following lease costs for the year ended December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Operating lease cost	$15,087	$14,368	$7,018	$1,745	$5,370
Finance lease cost:
Amortization of right-of-use assets	$2,860	$3,938	$1,766	$731	$1,493
Interest on lease liabilities	$432	$607	$270	$124	$214

Of the lease costs disclosed above, Entergy Arkansas had $826 thousand, Entergy Louisiana had $934 thousand, Entergy Mississippi had $703 thousand, Entergy New Orleans had $77 thousand, and Entergy Texas had $261 thousand in short-term lease costs for the year ended December 31, 2021.

The lease costs for the years ended December 31, 2022 and 2021 disclosed above materially approximate the cash flows used by the Registrant Subsidiaries for leases with all costs included within operating activities on the respective Statements of Cash Flows, except for the finance lease costs which are included in financing activities.

Entergy has elected to account for short-term leases in accordance with policy options provided by accounting guidance; therefore, there are no related lease liabilities or right-of-use assets for the costs recognized above by Entergy or by its Registrant Subsidiaries in the table below.

Included within Property, Plant, and Equipment on Entergy’s consolidated balance sheet at December 31, 2022 and 2021 are $191 million and $212 million related to operating leases, respectively, and $64 million and $67 million related to finance leases, respectively.

Included within Utility Plant on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022 and 2021 are the following amounts:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022
Operating leases	$56,000	$46,137	$23,624	$5,906	$17,076
Finance leases	$13,493	$18,540	$8,578	$4,342	$8,094

2021
Operating leases	$56,099	$46,443	$16,831	$5,480	$14,986
Finance leases	$15,043	$19,007	$9,114	$4,023	$7,583

The following lease-related liabilities are recorded within the respective Other lines on Entergy’s consolidated balance sheet as of December 31, 2022 and 2021:


	2022	2021
	(In Thousands)
Current liabilities:
Operating leases	$56,566	$59,437
Finance leases	$13,824	$12,988
Non-current liabilities:
Operating leases	$134,886	$152,363
Finance leases	$54,875	$59,320

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$14,140	$13,554	$6,540	$1,650	$5,640
Finance leases	$2,985	$4,276	$1,974	$918	$1,654
Non-current liabilities:
Operating leases	$41,874	$32,588	$17,098	$4,217	$11,441
Finance leases	$10,508	$14,264	$6,604	$3,424	$6,440

The following lease-related liabilities are recorded within the respective Other lines on the Registrant Subsidiaries’ respective balance sheets at December 31, 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
Current liabilities:
Operating leases	$12,695	$12,520	$5,866	$1,491	$4,489
Finance leases	$2,964	$4,001	$1,843	$812	$1,476
Non-current liabilities:
Operating leases	$43,420	$33,931	$10,976	$3,994	$10,505
Finance leases	$12,079	$15,006	$7,271	$3,211	$6,107

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of Entergy at December 31, 2022 and 2021:


	2022		2021
Weighted average remaining lease terms:
Operating leases	4.32		4.44
Finance leases	5.63		6.18
Weighted average discount rate:
Operating leases	3.61	%	3.37	%
Finance leases	3.95	%	3.96	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2022:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	4.55		4.26		5.31		6.08		3.84
Finance leases	5.32		5.27		5.15		5.72		5.67
Weighted average discount rate:
Operating leases	3.43	%	3.24	%	3.52	%	3.50	%	3.63	%
Finance leases	2.93	%	3.15	%	2.87	%	3.04	%	3.07	%

The following information contains the weighted average remaining lease term in years and the weighted average discount rate for the operating and finance leases of the Registrant Subsidiaries at December 31, 2021:


	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
Weighted average remaining lease terms:
Operating leases	5.13		4.65		5.36		5.35		3.94
Finance leases	5.89		5.57		5.63		5.94		5.97
Weighted average discount rate:
Operating leases	3.10	%	2.93	%	3.00	%	2.99	%	3.04	%
Finance leases	2.80	%	3.08	%	2.87	%	3.03	%	2.79	%

Maturity of the lease liabilities for Entergy as of December 31, 2022 are as follows:


	Operating Leases	Finance Leases
	(In Thousands)
2023	$62,058	$16,201
2024	53,807	14,876
2025	38,379	13,464
2026	26,671	11,581
2027	16,563	9,254
Years thereafter	9,171	11,091
Minimum lease payments	206,649	76,467
Less: amount representing interest	15,197	7,768
Present value of net minimum lease payments	$191,452	$68,699

Maturity of the lease liabilities for the Registrant Subsidiaries as of December 31, 2022 are as follows:

Operating Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$15,754	$14,808	$7,230	$1,801	$6,152
2024	14,195	12,656	6,244	1,569	5,080
2025	12,359	9,779	5,319	1,116	3,621
2026	9,578	6,195	3,224	684	1,930
2027	6,285	3,556	1,867	305	895
Years thereafter	2,242	2,278	2,328	1,113	615
Minimum lease payments	60,413	49,272	26,212	6,588	18,293
Less: amount representing interest	4,399	3,129	2,574	722	1,212
Present value of net minimum lease payments	$56,014	$46,143	$23,638	$5,866	$17,081

Finance Leases


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2023	$3,334	$4,791	$2,191	$1,036	$1,875
2024	3,034	4,246	2,007	906	1,719
2025	2,693	3,703	1,748	795	1,588
2026	2,253	2,942	1,414	718	1,341
2027	1,656	2,112	962	585	1,034
Years thereafter	1,526	2,239	856	667	1,231
Minimum lease payments	14,496	20,033	9,178	4,707	8,788
Less: amount representing interest	1,002	1,493	600	365	694
Present value of net minimum lease payments	$13,494	$18,540	$8,578	$4,342	$8,094

In allocating consideration in lease contracts to the lease and non-lease components, Entergy and the Registrant Subsidiaries have made the accounting policy election to combine lease and non-lease components related to fleet vehicles used in operations, fuel storage agreements, and purchased power agreements and to allocate the contract consideration to both lease and non-lease components for real estate leases.