Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

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

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

Reconciliation Of Unrecognized Tax Benefits

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

Entergy Arkansas [Member]

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 Accrued Taxes

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)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

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	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	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	N/A	N/A	N/A	N/A	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	2036-2042
State credits	$— million	$— million	$6.8 million	$— million	$2.4 million	$15.5 million
Year(s) of expiration	N/A	N/A	2023-2026	N/A	2027-2032	2023-2026

Reconciliation Of Unrecognized Tax Benefits

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.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

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

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

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)

Entergy Louisiana [Member]

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 Accrued Taxes

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)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

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	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	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	N/A	N/A	N/A	N/A	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	2036-2042
State credits	$— million	$— million	$6.8 million	$— million	$2.4 million	$15.5 million
Year(s) of expiration	N/A	N/A	2023-2026	N/A	2027-2032	2023-2026

Reconciliation Of Unrecognized Tax Benefits

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.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

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

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

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)

Entergy Mississippi [Member]

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 Accrued Taxes

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)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

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	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	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	N/A	N/A	N/A	N/A	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	2036-2042
State credits	$— million	$— million	$6.8 million	$— million	$2.4 million	$15.5 million
Year(s) of expiration	N/A	N/A	2023-2026	N/A	2027-2032	2023-2026

Reconciliation Of Unrecognized Tax Benefits

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.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

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

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

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)

Entergy New Orleans [Member]

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 Accrued Taxes

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)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

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	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	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	N/A	N/A	N/A	N/A	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	2036-2042
State credits	$— million	$— million	$6.8 million	$— million	$2.4 million	$15.5 million
Year(s) of expiration	N/A	N/A	2023-2026	N/A	2027-2032	2023-2026

Reconciliation Of Unrecognized Tax Benefits

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.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

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

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

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)

Entergy Texas [Member]

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 Accrued Taxes

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)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

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	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	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	N/A	N/A	N/A	N/A	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	2036-2042
State credits	$— million	$— million	$6.8 million	$— million	$2.4 million	$15.5 million
Year(s) of expiration	N/A	N/A	2023-2026	N/A	2027-2032	2023-2026

Reconciliation Of Unrecognized Tax Benefits

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.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

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

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

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)

System Energy [Member]

Tax Cuts and Jobs Act [Table Text Block]

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

Income Tax Expenses From Continuing Operations

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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 Accrued Taxes

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)

Entergy's Estimated Tax Attributes, Carryovers And Their Expiration Dates

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	$— billion
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	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	N/A	N/A	N/A	N/A	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	2036-2042
State credits	$— million	$— million	$6.8 million	$— million	$2.4 million	$15.5 million
Year(s) of expiration	N/A	N/A	2023-2026	N/A	2027-2032	2023-2026

Reconciliation Of Unrecognized Tax Benefits

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.

Summary Of Unrecognized Tax Benefits That Would Affect Effective Income Tax Rate

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

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

Summary of Interest on Income Taxes Expense Related to Unrecognized Tax Benefits

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)