Retirement, Other Postretirement Benefits, And Defined Contribution Plans

12 Months Ended

Dec. 31, 2017

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620

Entergy Arkansas [Member]

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620

Entergy Louisiana [Member]

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620

Entergy Mississippi [Member]

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620

Entergy New Orleans [Member]

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620

Entergy Texas [Member]

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620

System Energy [Member]

Retirement And Other Postretirement Benefits

RETIREMENT, OTHER POSTRETIREMENT BENEFITS, AND DEFINED CONTRIBUTION PLANS  (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Qualified Pension Plans

Entergy has eight qualified pension plans covering substantially all employees. The Entergy Corporation Retirement Plan for Non-Bargaining Employees (Non-Bargaining Plan I), the Entergy Corporation Retirement Plan for Bargaining Employees (Bargaining Plan I),the Entergy Corporation Retirement Plan II for Non-Bargaining Employees (Non-Bargaining Plan II), the Entergy Corporation Retirement Plan II for Bargaining Employees, the Entergy Corporation Retirement Plan III, and the Entergy Corporation Retirement Plan IV for Bargaining Employees are non-contributory final average pay plans and provide pension benefits that are based on employees’ credited service and compensation during employment.  Effective as of the close of business on December 31, 2016, the Entergy Corporation Retirement Plan IV for Non-Bargaining Employees (Non-Bargaining Plan IV) was merged with and into Non-Bargaining Plan II. At the close of business on December 31, 2016, the liabilities for the accrued benefits and the assets attributable to such liabilities of all participants in Non-Bargaining Plan IV were assumed by and transferred to Non-Bargaining Plan II. There was no loss of vesting or benefit options or reduction of accrued benefits to affected participants as a result of this plan merger. Non-bargaining employees whose most recent date of hire is after June 30, 2014 participate in the Entergy Corporation Cash Balance Plan for Non-Bargaining Employees (Non-Bargaining Cash Balance Plan). Certain bargaining employees hired or rehired after June 30, 2014, or such later date provided for in their applicable collective bargaining agreements, participate in the Entergy Corporation Cash Balance Plan for Bargaining Employees (Bargaining Cash Balance Plan). The Registrant Subsidiaries participate in these four plans: Non-Bargaining Plan I, Bargaining Plan I, Non-Bargaining Cash Balance Plan, and Bargaining Cash Balance Plan.

The assets of the six final average pay qualified pension plans are held in a master trust established by Entergy, and the assets of the two cash balance pension plans are held in a second master trust established by Entergy.  Each pension plan has an undivided beneficial interest in each of the investment accounts in its respective master trust that is maintained by a trustee.  Use of the master trusts permits the commingling of the trust assets of the pension plans of Entergy Corporation and its Registrant Subsidiaries for investment and administrative purposes.  Although assets in the master trusts are commingled, the trustee maintains supporting records for the purpose of allocating the trust level equity in net earnings (loss) and the administrative expenses of the investment accounts in each trust to the various participating pension plans in that particular trust.  The fair value of the trusts’ assets is determined by the trustee and certain investment managers.  For each trust, the trustee calculates a daily earnings factor, including realized and unrealized gains or losses, collected and accrued income, and administrative expenses, and allocates earnings to each plan in the master trusts on a pro rata basis.

Within each pension plan, the record of each Registrant Subsidiary’s beneficial interest in the plan assets is maintained by the plan’s actuary and is updated quarterly.  Assets for each Registrant Subsidiary are increased for investment net income and contributions, and are decreased for benefit payments.  A plan’s investment net income/loss (i.e. interest and dividends, realized and unrealized gains and losses and expenses) is allocated to the Registrant Subsidiaries participating in that plan based on the value of assets for each Registrant Subsidiary at the beginning of the quarter adjusted for contributions and benefit payments made during the quarter.

Entergy Corporation and its subsidiaries fund pension plans in an amount not less than the minimum required contribution under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended.  The assets of the plans include common and preferred stocks, fixed-income securities, interest in a money market fund, and insurance contracts.  The Registrant Subsidiaries’ pension costs are recovered from customers as a component of cost of service in each of their respective jurisdictions.

Components of Qualified Net Pension Cost and Other Amounts Recognized as a Regulatory Asset and/or Accumulated Other Comprehensive Income (AOCI)

Entergy Corporation and its subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, included the following components:

	2017			2016			2015
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$133,641			$143,244			$175,046
Interest cost on projected benefit obligation	260,824			261,613			302,777
Expected return on assets	(408,225		)	(389,465		)	(394,618		)
Amortization of prior service cost	261			1,079			1,561
Recognized net loss	227,720			195,298			235,922
Curtailment loss	—			3,084			374
Special termination benefit	—			—			76
Net periodic pension costs		$214,221			$214,853			$321,138
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$368,067			$203,229			$50,762
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service cost	(261		)	(1,079		)	(1,561		)
Acceleration of prior service cost to curtailment	—			(1,045		)	(374		)
Amortization of net loss	(227,720		)	(195,298		)	(235,922		)
Total		$140,086			$5,807			($187,095	)
Total recognized as net periodic pension cost, regulatory asset, and/or AOCI (before tax)		$354,307			$220,660			$134,043
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year:
Prior service cost		$398			$261			$1,079
Net loss		$274,104			$227,720			$195,321

The Registrant Subsidiaries’ total 2017, 2016, and 2015 qualified pension costs and amounts recognized as a regulatory asset and/or other comprehensive income, including amounts capitalized, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,358			$27,698			$5,890			$2,500			$5,455			$6,145
Interest cost on projected benefit obligation	51,776			59,235			14,927			7,163			13,569			12,364
Expected return on assets	(81,707		)	(92,067		)	(24,526		)	(11,199		)	(24,722		)	(18,650		)
Recognized net loss	46,560			49,417			12,213			6,632			9,241			11,857
Net pension cost		$36,987			$44,283			$8,504			$5,096			$3,543			$11,716
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$51,569			$57,510			$14,681			$8,601			$1,109			$27,733
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(46,560		)	(49,417		)	(12,213		)	(6,632		)	(9,241		)	(11,857		)
Total		$5,009			$8,093			$2,468			$1,969			($8,132	)		$15,876
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$41,996			$52,376			$10,972			$7,065			($4,589	)		$27,592
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$53,650			$57,800			$14,438			$7,816			$10,503			$14,859

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$20,724			$28,194			$6,250			$2,625			$5,664			$6,263
Interest cost on projected benefit obligation	52,219			59,478			15,245			7,256			14,228			11,966
Expected return on assets	(79,087		)	(88,383		)	(23,923		)	(10,748		)	(24,248		)	(17,836		)
Recognized net loss	43,745			47,783			11,938			6,460			9,358			10,415
Net pension cost		$37,601			$47,072			$9,510			$5,593			$5,002			$10,808
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net loss		$60,968			$46,742			$10,942			$5,463			$3,816			$20,805
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(43,745		)	(47,783		)	(11,938		)	(6,460		)	(9,358		)	(10,415		)
Total		$17,223			($1,041	)		($996	)		($997	)		($5,542	)		$10,390
Total recognized as net periodic pension (income)/ cost, regulatory asset, and/or AOCI (before tax)		$54,824			$46,031			$8,514			$4,596			($540	)		$21,198
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$46,560			$49,417			$12,213			$6,632			$9,241			$11,857

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net periodic pension cost:
Service cost - benefits earned during the period		$26,646			$34,396			$7,929			$3,395			$6,582			$7,827
Interest cost on projected benefit obligation	61,885			69,465			18,007			8,432			17,414			13,970
Expected return on assets	(80,102		)	(90,803		)	(24,420		)	(10,899		)	(24,887		)	(18,271		)
Recognized net loss	54,254			59,802			14,896			8,053			12,950			13,055
Net pension cost		$62,683			$72,860			$16,412			$8,981			$12,059			$16,581
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss		$16,687			$16,618			$6,329			$1,853			($4,488	)		$101
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of net loss	(54,254		)	(59,802		)	(14,896		)	(8,053		)	(12,950		)	(13,055		)
Total		($37,567	)		($43,184	)		($8,567	)		($6,200	)		($17,438	)		($12,954	)
Total recognized as net periodic pension (income)/cost, regulatory asset, and/or AOCI (before tax)		$25,116			$29,676			$7,845			$2,781			($5,379	)		$3,627
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost in the following year
Net loss		$43,747			$47,809			$11,938			$6,460			$9,358			$10,414

Qualified Pension Obligations, Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet

Qualified pension obligations, plan assets, funded status, amounts recognized in the Consolidated Balance Sheets for Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$7,142,567			$6,848,238
Service cost	133,641			143,244
Interest cost	260,824			261,613
Curtailment	—			2,039
Actuarial loss	767,849			209,360
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Balance at December 31		$7,987,087			$7,142,567
Change in Plan Assets
Fair value of assets at January 1		$5,171,202			$4,707,433
Actual return on plan assets	808,007			395,596
Employer contributions	409,901			390,100
Employee contributions	40			23
Benefits paid	(317,834		)	(321,950		)
Fair value of assets at December 31		$6,071,316			$5,171,202
Funded status		($1,915,771	)		($1,971,365	)
Amount recognized in the balance sheet
Non-current liabilities		($1,915,771	)		($1,971,365	)
Amount recognized as a regulatory asset
Net loss		$2,418,206			$2,326,349
Amount recognized as AOCI (before tax)
Prior service cost		$398			$659
Net loss	667,766			619,276
		$668,164			$619,935

Qualified pension obligations, plan assets, funded status, amounts recognized in the Balance Sheets for the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Service cost	20,358			27,698			5,890			2,500			5,455			6,145
Interest cost	51,776			59,235			14,927			7,163			13,569			12,364
Actuarial loss	131,729			147,704			38,726			19,507			25,339			45,471
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Balance at December 31		$1,580,756			$1,785,700			$457,549			$217,896			$410,720			$384,049
Change in Plan Assets
Fair value of assets at January 1		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Actual return on plan assets	161,868			182,261			48,572			22,104			48,952			36,387
Employer contributions	79,625			87,503			19,116			9,893			17,004			18,213
Benefits paid	(77,417		)	(73,170		)	(21,195		)	(8,738		)	(20,009		)	(15,312		)
Fair value of assets at December 31		$1,205,668			$1,365,741			$360,842			$165,747			$363,523			$274,432
Funded status		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($375,088	)		($419,959	)		($96,707	)		($52,149	)		($47,197	)		($109,617	)
Amounts recognized as regulatory asset
Net loss		$706,783			$701,324			$191,877			$96,913			$145,412			$185,774
Amounts recognized as AOCI (before tax)
Net loss		$—			$44,765			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in Projected Benefit Obligation (PBO)
Balance at January 1		$1,400,511			$1,564,710			$408,604			$191,064			$383,627			$311,542
Service cost	20,724			28,194			6,250			2,625			5,664			6,263
Interest cost	52,219			59,478			15,245			7,256			14,228			11,966
Actuarial loss	62,187			48,357			11,343			5,573			4,274			20,661
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Balance at December 31		$1,454,310			$1,624,233			$419,201			$197,464			$386,366			$335,381
Change in Plan Assets
Fair value of assets at January 1		$959,618			$1,071,234			$292,297			$129,975			$298,378			$212,006
Actual return on plan assets	80,306			89,998			24,325			10,858			24,705			17,692
Employer contributions	82,999			84,421			19,968			10,709			15,920			20,497
Benefits paid	(81,331		)	(76,506		)	(22,241		)	(9,054		)	(21,427		)	(15,051		)
Fair value of assets at December 31		$1,041,592			$1,169,147			$314,349			$142,488			$317,576			$235,144
Funded status		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized in the balance sheet (funded status)
Non-current liabilities		($412,718	)		($455,086	)		($104,852	)		($54,976	)		($68,790	)		($100,237	)
Amounts recognized as regulatory asset
Net loss		$701,774			$686,337			$189,409			$94,944			$153,544			$169,897
Amounts recognized as AOCI  (before tax)
Net loss		$—			$51,660			$—			$—			$—			$—

Accumulated Pension Benefit Obligation

The accumulated benefit obligation for Entergy’s qualified pension plans was $7.4 billion and $6.7 billion at December 31, 2017 and 2016, respectively.

The qualified pension accumulated benefit obligation for each of the Registrant Subsidiaries for their employees as of December 31, 2017 and 2016 was as follows:

	December 31,
	2017		2016
	(In Thousands)
Entergy Arkansas		$1,492,876		$1,379,265
Entergy Louisiana		$1,652,939		$1,513,884
Entergy Mississippi		$430,268		$396,081
Entergy New Orleans		$205,316		$186,247
Entergy Texas		$387,083		$365,251
System Energy		$359,258		$315,131

Other Postretirement Benefits

Entergy also currently offers retiree medical, dental, vision, and life insurance benefits (other postretirement benefits) for eligible retired employees.  Employees who commenced employment before July 1, 2014 and who satisfy certain eligibility requirements (including retiring from Entergy after a certain age and/or years of service with Entergy and immediately commencing their Entergy pension benefit), may become eligible for other postretirement benefits.

Entergy uses a December 31 measurement date for its postretirement benefit plans.

Effective January 1, 1993, Entergy adopted an accounting standard requiring a change from a cash method to an accrual method of accounting for postretirement benefits other than pensions.  Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have received regulatory approval to recover accrued other postretirement benefit costs through rates.  The LPSC ordered Entergy Louisiana to continue the use of the pay-as-you-go method for ratemaking purposes for postretirement benefits other than pensions.  However, the LPSC retains the flexibility to examine individual companies’ accounting for other postretirement benefits to determine if special exceptions to this order are warranted. Pursuant to regulatory directives, Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy contribute the other postretirement benefit costs collected in rates into external trusts.  System Energy is funding, on behalf of Entergy Operations, other postretirement benefits associated with Grand Gulf.

Trust assets contributed by participating Registrant Subsidiaries are in master trusts, established by Entergy Corporation and maintained by a trustee.  Each participating Registrant Subsidiary holds a beneficial interest in the trusts’ assets.  The assets in the master trusts are commingled for investment and administrative purposes.  Although assets are commingled, supporting records are maintained for the purpose of allocating the beneficial interest in net earnings/(losses) and the administrative expenses of the investment accounts to the various participating plans and participating Registrant Subsidiaries. Beneficial interest in an investment account’s net income/(loss) is comprised of interest and dividends, realized and unrealized gains and losses, and expenses.  Beneficial interest from these investments is allocated to the plans and participating Registrant Subsidiary based on their portion of net assets in the pooled accounts.

Components of Net Other Postretirement Benefit Cost and Other Amounts Recognized as a Regulatory Asset and/or AOCI

Entergy Corporation’s and its subsidiaries’ total 2017, 2016, and 2015 other postretirement benefit costs, including amounts capitalized and amounts recognized as a regulatory asset and/or other comprehensive income, included the following components:

	2017			2016			2015
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$26,915			$32,291			$45,305
Interest cost on accumulated postretirement benefit obligation (APBO)	55,838			56,331			71,934
Expected return on assets	(37,630		)	(41,820		)	(45,375		)
Amortization of prior service credit	(41,425		)	(45,490		)	(37,280		)
Recognized net loss	21,905			18,214			31,573
Net other postretirement benefit cost		$25,603			$19,526			$66,157
Other changes in plan assets and benefit obligations recognized as a regulatory asset and /or AOCI (before tax)
Arising this period:
Prior service credit for period		($2,564	)		($20,353	)		($48,192	)
Net (gain)/loss	(66,922		)	49,805			(154,339		)
Amounts reclassified from regulatory asset and /or AOCI to net periodic benefit cost in the current year:
Amortization of prior service credit	41,425			45,490			37,280
Amortization of net loss	(21,905		)	(18,214		)	(31,573		)
Total		($49,966	)		$56,728			($196,824	)
Total recognized as net periodic benefit income/(cost), regulatory asset, and/or AOCI (before tax)		($24,363	)		$76,254			($130,667	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic benefit cost in the following year
Prior service credit		($37,002	)		($41,425	)		($45,485	)
Net loss		$13,729			$21,905			$18,214

Total 2017, 2016, and 2015 other postretirement benefit costs of the Registrant Subsidiaries, including amounts capitalized and deferred, for their employees included the following components:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
Other postretirement costs:
Service cost - benefits earned during the period		$3,451			$6,373			$1,160			$567			$1,488			$1,278
Interest cost on APBO	9,020			12,101			2,759			1,874			4,494			2,236
Expected return on assets	(15,836		)	—			(4,801		)	(4,635		)	(8,720		)	(2,869		)
Amortization of prior service credit	(5,110		)	(7,735		)	(1,823		)	(745		)	(2,316		)	(1,513		)
Recognized net loss	4,460			1,859			1,675			418			3,303			1,560
Net other postretirement benefit (income)/cost		($4,015	)		$12,598			($1,030	)		($2,521	)		($1,751	)		$692
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Net (gain)/loss	(29,534		)	(1,256		)	506			(7,342		)	(22,255		)	(5,459		)
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,110			7,735			1,823			745			2,316			1,513
Amortization of net loss	(4,460		)	(1,859		)	(1,675		)	(418		)	(3,303		)	(1,560		)
Total		($28,884	)		$4,620			$654			($7,015	)		($23,242	)		($5,506	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($32,899	)		$17,218			($376	)		($9,536	)		($24,993	)		($4,814	)
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,735	)		($1,823	)		($745	)		($2,316	)		($1,513	)
Net loss		$1,154			$1,550			$1,508			$137			$823			$932

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$3,913			$7,476			$1,543			$622			$1,590			$1,337
Interest cost on APBO	9,297			13,041			2,835			1,791			4,154			2,117
Expected return on assets	(17,855		)	—			(5,517		)	(4,617		)	(9,575		)	(3,257		)
Amortization of prior service credit	(5,472		)	(7,787		)	(934		)	(745		)	(2,722		)	(1,570		)
Recognized net loss	4,256			2,926			893			146			2,148			1,149
Net other postretirement benefit (income)/cost		($5,861	)		$15,656			($1,180	)		($2,803	)		($4,405	)		($224	)
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($1,007	)		($4,647	)		($6,219	)		$—			$—			$—
Net (gain)/loss	3,331			(13,117		)	8,715			5,717			13,378			4,997
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	5,472			7,787			934			745			2,722			1,570
Amortization of net loss	(4,256		)	(2,926		)	(893		)	(146		)	(2,148		)	(1,149		)
Total		$3,540			($12,903	)		$2,537			$6,316			$13,952			$5,418
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($2,321	)		$2,753			$1,357			$3,513			$9,547			$5,194
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,110	)		($7,739	)		($1,824	)		($745	)		($2,316	)		($1,513	)
Net loss		$4,460			$1,859			$1,675			$418			$3,303			$1,560

2015	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Other postretirement costs:
Service cost - benefits earned during the period		$6,957			$9,893			$2,028			$818			$2,000			$1,881
Interest cost on APBO	12,518			16,311			3,436			2,608			5,366			2,511
Expected return on assets	(19,190		)	—			(6,166		)	(4,804		)	(10,351		)	(3,644		)
Amortization of prior service credit	(2,441		)	(7,467		)	(916		)	(709		)	(2,723		)	(1,465		)
Recognized net loss	5,356			7,118			860			470			2,740			1,198
Net other postretirement benefit (income)/cost		$3,200			$25,855			($758	)		($1,617	)		($2,968	)		$481
Other changes in plan assets and benefit obligations recognized as a regulatory asset and/or AOCI (before tax)
Arising this period:
Prior service credit for the period		($18,035	)		($1,361	)		$—			$—			$—			($644	)
Net (gain)/loss	(11,978		)	(47,043		)	774			(5,810		)	(4,907		)	305
Amounts reclassified from regulatory asset and/or AOCI to net periodic pension cost in the current year:
Amortization of prior service credit	2,441			7,467			916			709			2,723			1,465
Amortization of net loss	(5,356		)	(7,118		)	(860		)	(470		)	(2,740		)	(1,198		)
Total		($32,928	)		($48,055	)		$830			($5,571	)		($4,924	)		($72	)
Total recognized as net periodic other postretirement income/(cost), regulatory asset, and/or AOCI (before tax)		($29,728	)		($22,200	)		$72			($7,188	)		($7,892	)		$409
Estimated amortization amounts from regulatory asset and/or AOCI to net periodic cost  in the following year
Prior service credit		($5,472	)		($7,783	)		($933	)		($745	)		($2,722	)		($1,570	)
Net loss		$4,256			$2,926			$893			$146			$2,148			$1,149

Other Postretirement Benefit Obligations, Plan Assets, Funded Status, and Amounts Not Yet Recognized and Recognized in the Balance Sheet

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Consolidated Balance Sheets of Entergy Corporation and its Subsidiaries as of December 31, 2017 and 2016 are as follows:

	2017			2016
	(In Thousands)
Change in APBO
Balance at January 1		$1,568,963			$1,530,829
Service cost	26,915			32,291
Interest cost	55,838			56,331
Plan amendments	(2,564		)	(20,353		)
Plan participant contributions	35,080			27,686
Actuarial (gain)/loss	(23,409		)	46,201
Benefits paid	(97,829		)	(104,477		)
Medicare Part D subsidy received	493			455
Balance at December 31		$1,563,487			$1,568,963
Change in Plan Assets
Fair value of assets at January 1		$596,660			$579,069
Actual return on plan assets	81,143			38,216
Employer contributions	44,273			56,166
Plan participant contributions	35,080			27,686
Benefits paid	(97,829		)	(104,477		)
Fair value of assets at December 31		$659,327			$596,660
Funded status		($904,160	)		($972,303	)
Amounts recognized in the balance sheet
Current liabilities		($45,237	)		($45,255	)
Non-current liabilities	(858,923		)	(927,048		)
Total funded status		($904,160	)		($972,303	)
Amounts recognized as a regulatory asset
Prior service credit		($40,461	)		($54,896	)
Net loss	144,966			222,540
		$104,505			$167,644
Amounts recognized as AOCI (before tax)
Prior service credit		($65,047	)		($89,474	)
Net loss	161,322			172,575
		$96,275			$83,101

Other postretirement benefit obligations, plan assets, funded status, and amounts not yet recognized and recognized in the Balance Sheets of the Registrant Subsidiaries as of December 31, 2017 and 2016 are as follows:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Service cost	3,451			6,373			1,160			567			1,488			1,278
Interest cost	9,020			12,101			2,759			1,874			4,494			2,236
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Actuarial (gain)/loss	(11,691		)	(1,256		)	5,858			(899		)	(12,469		)	(2,233		)
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Medicare Part D subsidy received	74			89			22			10			16			28
Balance at December 31		$249,019			$345,389			$84,621			$53,548			$116,702			$61,381
Change in Plan Assets
Fair value of assets at January 1		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Actual return on plan assets	33,679			—			10,153			11,078			18,506			6,095
Employer contributions	695			14,418			(2		)	3,709			3,123			570
Plan participant contributions	7,875			7,855			2,160			1,151			2,453			1,779
Benefits paid	(18,497		)	(22,273		)	(5,823		)	(4,670		)	(6,980		)	(4,205		)
Fair value of assets at December 31		$274,678			$—			$82,433			$85,504			$154,171			$49,124
Funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in the balance sheet
Current liabilities		$—			($18,794	)		$—			$—			$—			$—
Non-current liabilities	25,659			(326,595		)	(2,188		)	31,956			37,469			(12,257		)
Total funded status		$25,659			($345,389	)		($2,188	)		$31,956			$37,469			($12,257	)
Amounts recognized in regulatory asset
Prior service credit		($16,574	)		$—			($6,687	)		($1,427	)		($5,980	)		($3,819	)
Net loss	42,394			—			25,247			4,269			24,478			16,386
		$25,820			$—			$18,560			$2,842			$18,498			$12,567
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($19,999	)		$—			$—			$—			$—
Net loss	—			51,585			—			—			—			—
		$—			$31,586			$—			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Change in APBO
Balance at January 1		$258,900			$356,253			$77,382			$51,951			$114,582			$57,645
Service cost	3,913			7,476			1,543			622			1,590			1,337
Interest cost	9,297			13,041			2,835			1,791			4,154			2,117
Plan amendments	(1,007		)	(4,647		)	(6,219		)	—			—			—
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Actuarial (gain)/loss	2,453			(13,117		)	8,230			4,774			12,389			4,806
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Medicare Part D subsidy received	79			114			24			16			35			21
Balance at December 31		$258,787			$342,500			$78,485			$55,515			$127,700			$62,498
Change in Plan Assets
Fair value of assets at January 1		$243,206			$—			$75,538			$69,881			$130,374			$44,917
Actual return on plan assets	16,977			—			5,032			3,674			8,586			3,066
Employer contributions	5,591			16,620			685			4,320			3,159			330
Plan participant contributions	6,330			6,273			1,721			1,213			1,927			1,390
Benefits paid	(21,178		)	(22,893		)	(7,031		)	(4,852		)	(6,977		)	(4,818		)
Fair value of assets at December 31		$250,926			$—			$75,945			$74,236			$137,069			$44,885
Funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in the balance sheet
Current liabilities		$—			($19,209	)		$—			$—			$—			$—
Non-current liabilities	(7,861		)	(323,291		)	(2,540		)	18,721			9,369			(17,613		)
Total funded status		($7,861	)		($342,500	)		($2,540	)		$18,721			$9,369			($17,613	)
Amounts recognized in regulatory asset
Prior service credit		($21,684	)		$—			($8,511	)		($2,172	)		($8,296	)		($5,332	)
Net loss	76,388			—			26,416			12,029			50,036			23,405
		$54,704			$—			$17,905			$9,857			$41,740			$18,073
Amounts recognized in AOCI (before tax)
Prior service credit		$—			($27,735	)		$—			$—			$—			$—
Net loss	—			54,700			—			—			—			—
		$—			$26,965			$—			$—			$—			$—

Non-Qualified Pension Plans

Entergy also sponsors non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  Entergy recognized net periodic pension cost related to these plans of $37.6 million in 2017, $24.9 million in 2016, and $22.8 million in 2015.  In 2017, 2016, and 2015 Entergy recognized $20.3 million, $8.1 million, and $5.1 million, respectively in settlement charges related to the payment of lump sum benefits out of the plan that is included in the non-qualified pension plan cost above.  The projected benefit obligation was $162.3 million and $169.3 million as of December 31, 2017 and 2016, respectively.  The accumulated benefit obligation was $144.7 million and $151.0 million as of December 31, 2017 and 2016, respectively.

Entergy’s non-qualified, non-current pension liability at December 31, 2017 and 2016 was $136 million and $137.6 million, respectively; and its current liability was $26.4 million and $31.7 million, respectively.  The unamortized prior service cost and net loss are recognized in regulatory assets ($55.2 million at December 31, 2017 and $59.8 million at December 31, 2016) and accumulated other comprehensive income before taxes ($35.9 million at December 31, 2017 and $31.6 million at December 31, 2016).

The following Registrant Subsidiaries participate in Entergy’s non-qualified, non-contributory defined benefit pension plans that provide benefits to certain key employees.  The net periodic pension cost for their employees for the non-qualified plans for 2017, 2016, and 2015, was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$679		$185		$251		$73		$499
2016		$1,819		$231		$236		$65		$504
2015		$446		$377		$235		$64		$595

Included in the 2017 net periodic pension cost above are settlement charges of $269 thousand for Entergy Arkansas related to the lump sum benefits paid out of the plan. Included in the 2016 net periodic pension cost above are settlement charges of $1.4 million and $1 thousand for Entergy Arkansas and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan. Included in the 2015 net periodic pension cost above are settlement charges of $108 thousand and $2 thousand for Entergy Louisiana and Entergy Mississippi, respectively, related to the lump sum benefits paid out of the plan.

The projected benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$4,221		$2,061		$2,737		$583		$8,913
2016		$3,897		$2,134		$2,296		$514		$8,665

The accumulated benefit obligation for their employees for the non-qualified plans as of December 31, 2017 and 2016 was as follows:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,825		$2,061		$2,250		$519		$8,602
2016		$3,439		$2,134		$1,961		$452		$8,333

The following amounts were recorded on the balance sheet as of December 31, 2017 and 2016:

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($376	)		($231	)		($135	)		($21	)		($788	)
Non-current liabilities	(3,845		)	(1,830		)	(2,603		)	(562		)	(8,125		)
Total funded status		($4,221	)		($2,061	)		($2,738	)		($583	)		($8,913	)
Regulatory asset/(liability)		$2,995			$166			$1,186			($140	)		$133
Accumulated other comprehensive income (before taxes)		$—			$11			$—			$—			$—

2016	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas
	(In Thousands)
Current liabilities		($242	)		($233	)		($137	)		($20	)		($773	)
Non-current liabilities	(3,655		)	(1,901		)	(2,159		)	(495		)	(7,892		)
Total funded status		($3,897	)		($2,134	)		($2,296	)		($515	)		($8,665	)
Regulatory asset/(liability)		$2,914			$175			$876			($148	)		($316	)
Accumulated other comprehensive income (before taxes)		$—			$13			$—			$—			$—

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2017:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($261	)		$26,867			($355	)		$26,251
Amortization of loss	(73,800		)	(8,805		)	(3,397		)	(86,002		)
Settlement loss	—			—			(7,544		)	(7,544		)
		($74,061	)		$18,062			($11,296	)		($67,295	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,735			($1	)		$7,734
Amortization of loss	(3,459		)	(1,859		)	(9		)	(5,327		)
		($3,459	)		$5,876			($10	)		$2,407

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) as of December 31, 2016:

	Qualified Pension Costs			Other Postretirement Costs			Non-Qualified Pension Costs			Total
	(In Thousands)
Entergy
Amortization of prior service cost		($1,079	)		$30,949			($456	)		$29,414
Acceleration of prior service cost due to curtailment	(1,045		)	—			—			(1,045		)
Amortization of loss	(49,930		)	(8,248		)	(2,515		)	(60,693		)
Settlement loss	—			—			(2,007		)	(2,007		)
		($52,054	)		$22,701			($4,978	)		($34,331	)
Entergy Louisiana
Amortization of prior service cost		$—			$7,787			($1	)		$7,786
Amortization of loss	(3,345		)	(2,926		)	(10		)	(6,281		)
		($3,345	)		$4,861			($11	)		$1,505

Accounting for Pension and Other Postretirement Benefits

Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.  This is measured as the difference between plan assets at fair value and the benefit obligation.  Entergy uses a December 31 measurement date for its pension and other postretirement plans.  Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries’ respective regulatory jurisdictions.  For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.  Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.  Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.

With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the market-related value (MRV) of plan assets.  Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.  For other postretirement benefit plan assets Entergy uses fair value when determining MRV.

Qualified Pension and Other Postretirement Plans’ Assets

The Plan Administrator’s trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.  The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.

In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.  The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.

The target asset allocation for pension adjusts dynamically based on the pension plans’ funded status. The current targets are shown below. The expectation is that the allocation to fixed income securities will increase as the pension plans’ funded status increases.  The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.

For postretirement assets the target and range asset allocations (as shown below) reflect recommendations made in the latest optimization study. The target asset allocations for postretirement assets adjust dynamically based on the funded status of each sub-account within each trust. The current weighted average targets shown below represent the aggregate of all targets for all sub-accounts within all trusts.

Entergy’s qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2017 and 2016 and the target asset allocation and ranges for 2017 are as follows:

Pension Asset Allocation	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	45%	37%	to	53%	45%	46%
International Equity Securities	20%	16%	to	24%	20%	20%
Fixed Income Securities	35%	32%	to	38%	34%	33%
Other	0%	0%	to	10%	1%	1%

Postretirement Asset Allocation	Non-Taxable and Taxable
	Target	Range			Actual 2017	Actual 2016
Domestic Equity Securities	27%	22%	to	32%	30%	40%
International Equity Securities	18%	13%	to	23%	20%	27%
Fixed Income Securities	55%	50%	to	60%	50%	33%
Other	0%	0%	to	5%	0%	0%

In determining its expected long-term rate of return on plan assets used in the calculation of benefit plan costs, Entergy reviews past performance, current and expected future asset allocations, and capital market assumptions of its investment consultant and some investment managers.

The expected long-term rate of return for the qualified pension plans’ assets is based primarily on the geometric average of the historical annual performance of a representative portfolio weighted by the target asset allocation defined in the table above, along with other indications of expected return on assets. The time period reflected is a long dated period spanning several decades.

The expected long-term rate of return for the non-taxable postretirement trust assets is determined using the same methodology described above for pension assets, but the aggregate asset allocation specific to the non-taxable postretirement assets is used.

For the taxable postretirement trust assets, the investment allocation includes tax-exempt fixed income securities.  This asset allocation, in combination with the same methodology employed to determine the expected return for other postretirement assets (as described above), and with a modification to reflect applicable taxes, is used to produce the expected long-term rate of return for taxable postretirement trust assets.

Concentrations of Credit Risk

Entergy’s investment guidelines mandate the avoidance of risk concentrations.  Types of concentrations specified to be avoided include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, geographic area and individual security issuance.  As of December 31, 2017, all investment managers and assets were materially in compliance with the approved investment guidelines, therefore there were no significant concentrations (defined as greater than 10 percent of plan assets) of credit risk in Entergy’s pension and other postretirement benefit plan assets.

Fair Value Measurements

Accounting standards provide the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are described below:

• Level 1 - Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by an independent party that uses inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

-     quoted prices for similar assets or liabilities in active markets;

-     quoted prices for identical assets or liabilities in inactive markets;

-     inputs other than quoted prices that are observable for the asset or liability; or

-     inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If an asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

• Level 3 - Level 3 refers to securities valued based on significant unobservable inputs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The following tables set forth by level within the fair value hierarchy, measured at fair value on a recurring basis at December 31, 2017, and December 31, 2016, a summary of the investments held in the master trusts for Entergy’s qualified pension and other postretirement plans in which the Registrant Subsidiaries participate.

Qualified Defined Benefit Pension Plan Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Corporate stocks:
Preferred		$11,461	(b)		$—			$—		$11,461
Common	663,923		(b)	34		(b)	—		663,957
Common collective trusts (c)									3,198,799
Registered investment companies	125,174		(d)	—			—		125,174
Fixed income securities:
U.S. Government securities	—		(b)	638,832		(a)	—		638,832
Corporate debt instruments	—			619,735		(a)	—		619,735
Registered investment companies (e)	45,768		(d)	2,735		(d)	—		764,251
Other	46		(f)	62,559		(f)	—		62,605
Other:
Insurance company general account (unallocated contracts)	—			37,994		(g)	—		37,994
Total investments		$846,372			$1,361,889			$—		$6,122,808
Cash									1,508
Other pending transactions									5,179
Less: Other postretirement assets included in total investments									(58,179		)
Total fair value of qualified pension assets										$6,071,316

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Short-term investments		$—			$3,610	(a)		$—		$3,610
Equity securities:
Corporate stocks:
Preferred	6,423		(b)	—			—		6,423
Common	745,715		(b)	39		(b)	—		745,754
Common collective trusts (c)									2,072,743
103-12 investment entities (h)									335,818
Registered investment companies	258,879		(d)	—			—		258,879
Fixed income securities:
U.S. Government securities	136		(b)	370,545		(a)	—		370,681
Corporate debt instruments	—			630,726		(a)	—		630,726
Registered investment companies (e)	35,216		(d)	2,695		(d)	—		640,836
Other	34		(f)	105,613		(f)	—		105,647
Other:
Insurance company general account (unallocated contracts)	—			37,111		(g)	—		37,111
Total investments		$1,046,403			$1,150,339			$—		$5,208,228
Cash									929
Other pending transactions									8,869
Less: Other postretirement assets included in total investments									(46,824		)
Total fair value of qualified pension assets										$5,171,202

Other Postretirement Trusts

2017	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$300,139
Fixed income securities:
U.S. Government securities	81,602		(b)	76,790		(a)	—		158,392
Corporate debt instruments	—			92,869		(a)	—		92,869
Registered investment companies	3,127		(d)	—			—		3,127
Other	—			45,627		(f)	—		45,627
Total investments		$84,729			$215,286			$—		$600,154
Other pending transactions									994
Plus:  Other postretirement assets included in the investments of the qualified pension trust									58,179
Total fair value of other postretirement assets										$659,327

2016	Level 1			Level 2			Level 3		Total
	(In Thousands)
Equity securities:
Common collective trust (c)										$368,704
Fixed income securities:
U.S. Government securities	30,632		(b)	43,097		(a)	—		73,729
Corporate debt instruments	—			58,787		(a)	—		58,787
Registered investment companies	3,123		(d)	—			—		3,123
Other	—			45,389		(f)	—		45,389
Total investments		$33,755			$147,273			$—		$549,732
Other pending transactions									104
Plus:  Other postretirement assets included in the investments of the qualified pension trust									46,824
Total fair value of other postretirement assets										$596,660

(a) Certain preferred stocks and certain fixed income debt securities (corporate, government, and securitized) are stated at fair value as determined by broker quotes.

(b) Common stocks, certain preferred stocks, and certain fixed income debt securities (government) are stated at fair value determined by quoted market prices.

(c) The common collective trusts hold investments in accordance with stated objectives.  The investment strategy of the trusts is to capture the growth potential of equity markets by replicating the performance of a specified index.  Net asset value per share of common collective trusts estimate fair value. Certain of these common collective trusts are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(d) Registered investment companies are money market mutual funds with a stable net asset value of one dollar per share. Registered investment companies may hold investments in domestic and international bond markets or domestic equities and estimate fair value using net asset value per share.

(e) Certain of these registered investment companies are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

(f) The other remaining assets are U.S. municipal and foreign government bonds stated at fair value as determined by broker quotes.

(g) The unallocated insurance contract investments are recorded at contract value, which approximates fair value.  The contract value represents contributions made under the contract, plus interest, less funds used to pay benefits and contract expenses, and less distributions to the master trust.

(h) 103-12 investment entities hold investments in accordance with stated objectives. The investment strategy of the investment entities is to capture the growth potential of international equity markets by replicating the performance of a specified index. 103-12 investment entities estimate fair value using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table.

Estimated Future Benefit Payments

Based upon the assumptions used to measure Entergy’s qualified pension and other postretirement benefit obligations at December 31, 2017, and including pension and other postretirement benefits attributable to estimated future employee service, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for Entergy Corporation and its subsidiaries will be as follows:

	Estimated Future Benefits Payments
	Qualified Pension		Non-Qualified Pension		Other Postretirement (before Medicare Subsidy)		Estimated Future Medicare Subsidy Receipts
	(In Thousands)
Year(s)
2018		$412,057		$26,375		$82,087		$745
2019		$435,880		$10,108		$86,685		$842
2020		$447,224		$13,364		$89,508		$956
2021		$462,624		$10,765		$92,087		$1,071
2022		$470,846		$17,425		$94,427		$1,195
2023 - 2027		$2,478,959		$72,181		$475,991		$8,109

Based upon the same assumptions, Entergy expects that benefits to be paid and the Medicare Part D subsidies to be received over the next ten years for the Registrant Subsidiaries for their employees will be as follows:

Estimated Future Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$87,295		$93,155		$25,833		$11,484		$25,333		$17,780
2019		$87,832		$96,060		$25,977		$12,202		$25,656		$18,566
2020		$88,905		$100,179		$27,198		$12,463		$26,399		$19,398
2021		$90,278		$103,810		$27,508		$13,087		$26,756		$20,279
2022		$92,061		$107,609		$27,389		$13,207		$26,310		$21,714
2023 - 2027		$479,160		$571,926		$141,912		$69,595		$130,905		$117,835

Estimated Future Non-Qualified Pension Benefits Payments	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
Year(s)
2018		$376		$231		$135		$21		$788
2019		$300		$219		$137		$55		$764
2020		$355		$208		$290		$36		$895
2021		$310		$196		$192		$39		$723
2022		$506		$186		$201		$41		$662
2023 - 2027		$2,196		$749		$1,462		$459		$3,762

Estimated Future Other Postretirement Benefits Payments (before Medicare Part D Subsidy)	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$15,282		$18,962		$4,677		$3,954		$6,485		$3,246
2019		$15,398		$19,767		$4,818		$4,000		$6,842		$3,363
2020		$15,349		$20,287		$5,043		$3,952		$7,101		$3,381
2021		$15,483		$20,756		$5,218		$3,899		$7,369		$3,537
2022		$15,419		$21,250		$5,331		$3,800		$7,519		$3,595
2023 - 2027		$75,293		$108,290		$26,723		$17,698		$36,897		$17,677

Estimated Future Medicare Part D Subsidy	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Year(s)
2018		$164		$168		$58		$38		$64		$23
2019		$185		$187		$65		$39		$69		$27
2020		$209		$210		$70		$41		$75		$33
2021		$230		$234		$76		$43		$81		$38
2022		$254		$257		$82		$46		$88		$46
2023 - 2027		$1,646		$1,720		$514		$259		$552		$346

Contributions

Entergy currently expects to contribute approximately $352.1 million to its qualified pension plans and approximately $52.3 million to other postretirement plans in 2018.  The expected 2018 pension and other postretirement plan contributions of the Registrant Subsidiaries for their employees are shown below.  The 2018 required pension contributions will be known with more certainty when the January 1, 2018 valuations are completed, which is expected by April 1, 2018.

The Registrant Subsidiaries expect to contribute approximately the following to the qualified pension and other postretirement plans for their employees in 2018:

	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas		System Energy
	(In Thousands)
Pension Contributions		$64,062		$71,917		$14,933		$7,250		$10,883		$13,786
Other Postretirement Contributions		$472		$18,962		$110		$3,669		$3,231		$16

Actuarial Assumptions

The significant actuarial assumptions used in determining the pension PBO and the other postretirement benefit APBO as of December 31, 2017 and 2016 were as follows:

	2017	2016
Weighted-average discount rate:
Qualified pension	3.70% - 3.82% Blended 3.78%	4.30% - 4.49% Blended 4.39%
Other postretirement	3.72%	4.30%
Non-qualified pension	3.34%	3.63%
Weighted-average rate of increase in future compensation levels	3.98%	3.98%
Assumed health care trend rate:
Pre-65	6.95%	6.55%
Post-65	7.25%	7.25%
Ultimate rate	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2027	2026
Post-65	2027	2026

The significant actuarial assumptions used in determining the net periodic pension and other postretirement benefit costs for 2017, 2016, and 2015 were as follows:

	2017	2016	2015
Weighted-average discount rate:
Qualified pension:
Service cost	4.75%	5.00%	4.27%
Interest cost	3.73%	3.90%	4.27%
Other postretirement:
Service cost	4.60%	4.92%	4.23%
Interest cost	3.61%	3.78%	4.23%
Non-qualified pension:
Service cost	3.65%	3.65%	3.61%
Interest cost	3.10%	3.10%	3.61%
Weighted-average rate of increase in future compensation levels	3.98%	4.23%	4.23%
Expected long-term rate of return on plan assets:
Pension assets	7.50%	7.75%	8.25%
Other postretirement non-taxable assets	6.50% - 7.50%	7.75%	8.05%
Other postretirement taxable assets	5.75%	6.00%	6.25%
Assumed health care trend rate:
Pre-65	6.55%	6.75%	7.10%
Post-65	7.25%	7.55%	7.70%
Ultimate rate	4.75%	4.75%	4.75%
Year ultimate rate is reached and beyond:
Pre-65	2026	2024	2023
Post-65	2026	2024	2023

In 2016, Entergy refined its approach to estimating the service cost and interest cost components of qualified pension, other postretirement, and non-qualified pension costs. Under the refined approach, instead of using the weighted-average obligation discount rates at the beginning of the year, 2016 service cost and interest costs’ expected cash flows were discounted by the applicable spot rates. The refinement in approach was a change in accounting estimate and, accordingly, the effect was reflected prospectively. The measurement of the benefit obligation was not affected.

With respect to the mortality assumptions, Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2017 projection scale, in determining its December 31, 2017 pension plans’ PBOs and other postretirement benefit APBO. Entergy used the RP-2014 Employee and Healthy Annuitant Tables (adjusted to base year 2006) with a fully generational MP-2016 projection scale, in determining its December 31, 2016 pension plans’ PBOs and other postretirement benefit APBO. 

Entergy’s health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in Entergy’s assumed health care cost trend rate for 2017 would have the following effects:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase /(Decrease) (In Thousands)
Entergy Corporation and its subsidiaries		$166,814		$10,221		($139,648	)		($8,385	)

The Registrant Subsidiaries’ health care cost trend is affected by both medical cost inflation, and with respect to capped costs, the effects of general inflation. A one percentage point change in the assumed health care cost trend rate for 2017 would have the following effects for the Registrant Subsidiaries for their employees:

	1 Percentage Point Increase				1 Percentage Point Decrease
2017	Impact on the APBO		Impact on the sum of service costs and interest cost		Impact on the APBO			Impact on the sum of service costs and interest cost
	Increase/(Decrease) (In Thousands)
Entergy Arkansas		$23,612		$1,369		($19,810	)		($1,133	)
Entergy Louisiana		$37,240		$2,333		($31,063	)		($1,909	)
Entergy Mississippi		$8,666		$448		($7,276	)		($370	)
Entergy New Orleans		$4,585		$251		($3,895	)		($208	)
Entergy Texas		$12,444		$751		($10,452	)		($618	)
System Energy		$7,334		$475		($6,074	)		($387	)

Defined Contribution Plans

Entergy sponsors the Savings Plan of Entergy Corporation and Subsidiaries (System Savings Plan).  The System Savings Plan is a defined contribution plan covering eligible employees of Entergy and certain of its subsidiaries. The participating Entergy subsidiary makes matching contributions to the System Savings Plan for all eligible participating employees in an amount equal to either 70% or 100% of the participants’ basic contributions, up to 6% of their eligible earnings per pay period.  The matching contribution is allocated to investments as directed by the employee.

Entergy also sponsors the Savings Plan of Entergy Corporation and Subsidiaries IV (established in March 2002), the Savings Plan of Entergy Corporation and Subsidiaries VI (established in April 2007), and the Savings Plan of Entergy Corporation and Subsidiaries VII (established in April 2007) to which matching contributions are also made.  The plans are defined contribution plans that cover eligible employees, as defined by each plan, of Entergy and certain of its subsidiaries.  

Entergy’s subsidiaries’ contributions to defined contribution plans collectively were $49.1 million in 2017, $47 million in 2016, and $44.4 million in 2015.  The majority of the contributions were to the System Savings Plan.

The Registrant Subsidiaries’ 2017, 2016, and 2015 contributions to defined contribution plans for their employees were as follows:

Year	Entergy Arkansas		Entergy Louisiana		Entergy Mississippi		Entergy New Orleans		Entergy Texas
	(In Thousands)
2017		$3,741		$5,079		$2,133		$731		$1,865
2016		$3,528		$4,746		$1,997		$708		$1,778
2015		$3,242		$4,324		$1,920		$721		$1,620