EX-99.1 2 a04719991.htm EXHIBIT 99.1 Exhibit


entergylogoa69.gif

 
 
 
 
Entergy
639 Loyola Avenue
New Orleans, LA 70113




Date:
July 31, 2019
 
 
 
 
 
 
For Release:
Immediately
 
 
 
 
 
 
Contact:
Neal Kirby (Media)
(504) 576-4238
nkirby@entergy.com
David Borde (Investor Relations)
(504) 576-5668
dborde@entergy.com

Entergy Reports Second Quarter Earnings
On target for 2019; raising outlook midpoints for 2020 and 2021

NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported second quarter 2019 earnings per share of $1.22 on an as-reported basis and $1.35 on an adjusted basis (non-GAAP).

“Our results for the quarter keep us well-positioned to achieve our full-year financial guidance,” said Entergy Chairman and Chief Executive Officer Leo Denault. “With a track record of success, clarity in our vision, and confidence in our strategy going forward, we are raising our 2020 and 2021 adjusted EPS outlooks and narrowing our adjusted EPS ranges across our forecast period.”

Business highlights included the following:
•
Entergy narrowed its 2019 adjusted EPS guidance to $5.15 to $5.45 and raised and narrowed its 2020 and 2021 adjusted EPS outlooks to $5.45 to $5.75 and $5.80 to $6.10, respectively.
•
The St. Charles Power Station was placed in service on budget and ahead of schedule.
•
Phase 1 of the Western Region economic transmission project was placed in service.
Table of Contents Page
News Release1
Appendices7
A: Consolidated Results and Adjustments8
B: Earnings Variance Analysis11
C: Utility Financial and Operating Measures13
D: EWC Financial and Operating Measures14
E: Consolidated Financial Measures15
F: Definitions and Abbreviations and Acronyms16
G: GAAP to Non-GAAP Reconciliations20
Financial Statements23
•
The MPSC approved the settlement in Entergy Mississippi’s annual FRP filing.
•
Entergy Louisiana and Entergy Arkansas each submitted annual FRP filings.




•
Pilgrim Nuclear Power Station permanently shut down on May 31, 2019.
•
The Edison Electric Institute awarded its Emergency Assistance Award to Entergy.
•
For the fourth consecutive year, Entergy Corporation was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the United States.


Consolidated Earnings (GAAP and Non-GAAP Measures)
Second Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
 
Second Quarter
Year-to-Date
 
2019
2018
Change
2019
2018
Change
(After-tax, $ in millions)
 
 
 
 
 
 
As-reported earnings
236
245
(9)
491
378
113
Less adjustments
(26)
(14)
(12)
71
(32)
103
Adjusted earnings (non-GAAP)
262
259
3
420
410
10
  Estimated weather in billed sales
12
21
(9)
(12)
37
(48)
 
 
 
 
 
 
 
(After-tax, per share in $)
 
 
 
 
 
 
As-reported earnings
1.22
1.34
(0.12)
2.54
2.08
0.46
Less adjustments
(0.13)
(0.08)
(0.05)
0.36
(0.18)
0.54
Adjusted earnings (non-GAAP)
1.35
1.42
(0.07)
2.18
2.26
(0.08)
  Estimated weather in billed sales
0.06
0.11
(0.05)
(0.06)
0.20
(0.26)
 
 
 
 
 
 
 
Calculations may differ due to rounding

Consolidated Results

For second quarter 2019, the company reported earnings of $236 million, or $1.22 per share, on an as-reported basis and earnings of $262 million, or $1.35 per share, on an adjusted basis. This compared to second quarter 2018 earnings of $245 million, or $1.34 per share, on an as-reported basis and earnings of $259 million, or $1.42 per share on an adjusted basis.

Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.

Business Segment Results

Utility

For second quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $331 million, or $1.70 per share, on both an as-reported and an adjusted basis. This compared to second quarter 2018 earnings of $376 million, or $2.05 per share, on an as-reported basis and $333 million, or $1.82 per share, on an adjusted basis. Drivers for the quarter included:
•
rate activity at Entergy Arkansas, Entergy Louisiana, and Entergy Texas;
•
second quarter 2018 regulatory charges to return benefits of the lower federal tax rate to customers; and
•
higher other income largely due to higher AFUDC-equity funds.





These increases were partially offset by:
•
less favorable weather in second quarter 2019 compared to a year ago;
•
lower sales volume in the unbilled period;
•
higher spending on nuclear operations, information technology, and initiatives to explore new customer products and services; and
•
higher depreciation expense.

On a per share basis, 2019 results reflected higher shares outstanding from settlement of the company’s equity forward.

Appendix C contains additional details on Utility financial and operating measures.

Parent & Other

For second quarter 2019, Parent & Other reported a loss of $(69 million), or (35) cents per share, on both an as-reported and an adjusted basis. This compared to a loss of $(73 million), or (40) cents per share, on both an as-reported and an adjusted basis in second quarter 2018.

Entergy Wholesale Commodities

For second quarter 2019, EWC recorded a loss attributable to Entergy Corporation of
$(26 million), or (13) cents per share on an as-reported basis. This compared to a second quarter 2018 loss of $(57 million), or (31) cents per share, on an as-reported basis.

Second quarter 2019 earnings reflected lower impairment charges as compared to a year ago. EWC also recorded higher gains on decommissioning trust funds. These items were partially offset by lower revenue due to the shutdown of Pilgrim and tax benefits incurred in second quarter 2018.

Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
    
Earnings per Share Guidance and Outlook

Entergy narrowed its 2019 adjusted EPS guidance range to $5.15 to $5.45 per share from $5.10 to $5.50.

In addition, with its customers in mind, the company identified investment opportunities to improve reliability and enable new customer products and services. Combined with non-fuel O&M efficiencies, customers will receive an improved level of service with minimal bill impacts. As a result, the company is increasing its 2020 and 2021 adjusted EPS outlook ranges to $5.45 to $5.75 and $5.80 to $6.10, respectively.

See webcast presentation slides for additional details.

The company has provided 2019 earnings guidance and 2020 and 2021 outlooks with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP Financial Measures.” The company has not provided a reconciliation of such non-GAAP guidance or outlooks to guidance or outlooks presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the




periods. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy’s as-reported EPS will be approximately (95) cents, (35) cents and $(1.35) per share in 2019, 2020 and 2021, respectively. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of the strategic decision to exit the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, July 31, 2019, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 7299636, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through August 7, 2019, by dialing 855-859-2056, conference ID 7299636.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 employees.
 
Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR.”

Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations.

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory & Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures, which are generally numerical measures of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.





Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments,” including the removal of the Entergy Wholesale Commodities segment in light of the company’s decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and as-reported basis. In each case, the metrics defined as “adjusted” (other than EWC’s adjusted EBITDA) would exclude the effect of adjustments as defined above. EWC’s adjusted EBITDA represents EWC’s earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements





In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2019 earnings guidance; its current financial and operational outlooks; and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy’s business or operations, and other catastrophic events.






Second Quarter 2019 Earnings Release Appendices and Financial Statements

Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Adjustments
B: Earnings Variance Analysis
C: Utility Financial and Operating Measures
D: EWC Financial and Operating Measures
E: Consolidated Financial Measures
F: Definitions and Abbreviations and Acronyms
G: GAAP to Non-GAAP Reconciliations

Financial Statements
Financial statements are presented in this section.

A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).





Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments)
 
Second Quarter
Year-to-Date
 
2019
2018
Change
2019
2018
Change
(After-tax, $ in millions)
 
 
 
 
 
 
Earnings (loss)
 
 
 
 
 
 
Utility
331
376
(44)
562
591
(29)
Parent & Other
(69)
(73)
4
(141)
(137)
(4)
EWC
(26)
(57)
31
71
(75)
146
Consolidated
236
245
(9)
491
378
113
 
 
 
 
 
 
 
Less adjustments
 
 
 
 
 
 
Utility
—
43
(43)
—
43
(43)
Parent & Other
—
—
—
—
—
—
EWC
(26)
(57)
31
71
(75)
146
Consolidated
(26)
(14)
(12)
71
(32)
103
 
 
 
 
 
 
 
Adjusted earnings (loss) (non-GAAP)
 
 
 
 
 
 
Utility
331
333
(1)
562
548
14
Parent & Other
(69)
(73)
4
(141)
(137)
(4)
EWC
—
—
—
—
—
—
Consolidated
262
259
3
420
410
10
Estimated weather in billed sales
12
21
(9)
(12)
37
(48)
 
 
 
 
 
 
 
Diluted average number of common shares outstanding (in millions)
194
183
 
193
182
 
 
 
 
 
 
 
 
(After-tax, per share in $) (a)
 
 
 
 
 
 
Earnings (loss)
 
 
 
 
 
 
Utility
1.70
2.05
(0.35)
2.91
3.24
(0.33)
Parent & Other
(0.35)
(0.40)
0.05
(0.73)
(0.75)
0.02
EWC
(0.13)
(0.31)
0.18
0.36
(0.41)
0.77
Consolidated
1.22
1.34
(0.12)
2.54
2.08
0.46
 
 
 
 
 
 
 
Less adjustments
 
 
 
 
 
 
Utility
—
0.23
(0.23)
—
0.23
(0.23)
Parent & Other
—
—
—
—
—
—
EWC
(0.13)
(0.31)
0.18
0.36
(0.41)
0.77
Consolidated
(0.13)
(0.08)
(0.05)
0.36
(0.18)
0.54
 
 
 
 
 
 
 
Adjusted earnings (loss) (non-GAAP)
 
 
 
 
 
 
Utility
1.70
1.82
(0.12)
2.91
3.01
(0.10)
Parent & Other
(0.35)
(0.40)
0.05
(0.73)
(0.75)
0.02
EWC
—
—
—
—
—
—
Consolidated
1.35
1.42
(0.07)
2.18
2.26
(0.08)
Estimated weather in billed sales
0.06
0.11
(0.05)
(0.06)
0.20
(0.26)
 
 
 
 
 
 
 
Calculations may differ due to rounding
(a)
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

See Appendix B for detailed earnings variance analysis. See Appendix A-3 for adjustments by driver.






Appendix A-2 provides a comparative summary of OCF, by business.

Appendix A-2: Consolidated Operating Cash Flow
Second Quarter and Year-to-Date 2019 vs. 2018
($ in millions)
 
Second Quarter
Year-to-Date
 
2019
2018
Change
2019
2018
Change
Utility
699
626
73
1,154
1,149
5
Parent & Other
(45)
(58)
13
(123)
(115)
(8)
EWC
(102)
(45)
(57)
22
46
(24)
Consolidated
552
523
29
1,053
1,080
(27)
 
 
 
 
 
 
 
Calculations may differ due to rounding

OCF increased quarter-over-quarter due primarily to a lower amount of unprotected excess ADIT returned to customers, lower nuclear refueling outage spending, and lower ARO spending at EWC. Higher severance and retention payments at EWC partially offset the increase.

Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.

Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS)
Second Quarter and Year-to-Date 2019 vs. 2018
(Pre-tax except for income tax effects and total, $ in millions)
 
Second Quarter
Year-to-Date
 
2019
2018
Change
2019
2018
Change
 
 
 
 
 
 
 
(Pre-tax except for income tax effects and total, $ in millions)
 
 
 
 
 
 
Utility
 
 
 
 
 
 
2012 / 2013 IRS settlement
—
43
(43)
—
43
(43)
Total Utility
—
43
(43)
—
43
(43)
EWC
 
 
 
 
 
 
Income before income taxes
(35)
(86)
52
128
(105)
234
Income taxes
9
30
(21)
(57)
31
(88)
Preferred dividend requirements of subsidiaries
(1)
(1)
—
(1)
(1)
—
Total EWC
(26)
(57)
31
71
(75)
146
 
 
 
 
 
 
 
Total adjustments
(26)
(14)
(12)
71
(32)
103
 
 
 
 
 
 
 
(After-tax, per share in $) (b)
 
 
 
 
 
 
Utility
 
 
 
 
 
 
2012 / 2013 IRS settlement
—
0.23
(0.23)
—
0.23
(0.23)
Total Utility
—
0.23
(0.23)
—
0.23
(0.23)
EWC
 
 
 
 
 
 
Total EWC
(0.13)
(0.31)
0.18
0.36
(0.41)
0.77
 
 
 
 
 
 
 
Total adjustments
(0.13)
(0.08)
(0.05)
0.36
(0.18)
0.54
 
 
 
 
 
 
 
Calculations may differ due to rounding
(b)
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.







Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings)
Second Quarter and Year-to-Date 2019 vs. 2018
(Pre-tax except for Income taxes and total, $ in millions)
 
Second Quarter
Year-to-Date
 
2019
2018
Change
2019
2018
Change
Utility
 
 
 
 
 
 
Income taxes
—
43
(43)
—
43
(43)
EWC
 
 
 
 
 
 
Operating revenues
290
309
(19)
723
728
(5)
Fuel and fuel-related expenses
(26)
(19)
(7)
(51)
(39)
(12)
Purchased power
(15)
(18)
3
(31)
(35)
4
Non-fuel O&M
(200)
(200)
1
(401)
(393)
(7)
Asset write-off and impairments
(16)
(69)
53
(90)
(142)
52
Decommissioning expense
(64)
(60)
(4)
(128)
(118)
(9)
Taxes other than income taxes
(20)
(22)
2
(33)
(39)
6
Depreciation/amortization exp.
(38)
(39)
1
(76)
(77)
1
Other income (deductions)-other
64
40
24
232
26
206
Interest exp. and other charges
(9)
(8)
—
(18)
(17)
(1)
Income taxes
9
30
(21)
(57)
31
(88)
Preferred dividend
(1)
(1)
—
(1)
(1)
—
Total EWC
(26)
(57)
31
71
(75)
146
 
 
 
 
 
 
 
Total adjustments (after-tax)
(26)
(14)
(12)
71
(32)
103
 
 
 
 
 
 
 
Calculations may differ due to rounding





B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.

Appendix B: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Second Quarter 2019 vs. 2018
(After-tax, per share in $)

 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Adjusted
 
As-Reported
Adjusted
 
As-
Reported
 
As-
Reported
Adjusted
2018 earnings
2.05
1.82
 
(0.40)
(0.40)
 
(0.31)
 
1.34
1.42
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
0.18
0.18
(e)
—
—
 
(0.10)
(f)
0.08
0.18
Non-fuel O&M
(0.11)
(0.11)
(g)
0.03
0.03
 
—
 
(0.08)
(0.08)
Asset write-offs and impairments
—
—
 
—
—
 
0.23
(h)
0.23
—
Decommissioning expense
(0.01)
(0.01)
 
—
—
 
(0.02)
 
(0.03)
(0.01)
Taxes other than income taxes
(0.03)
(0.03)
 
—
—
 
0.01
 
(0.02)
(0.03)
Depreciation/amortization exp.
(0.05)
(0.05)
(i)
—
—
 
—
 
(0.05)
(0.05)
Other income (deductions)-other
0.05
0.05
(j)
(0.01)
(0.01)
 
0.10
(k)
0.14
0.04
Interest exp. and other charges
(0.03)
(0.03)
 
—
—
 
—
 
(0.03)
(0.03)
Income taxes-other
(0.24)
(0.01)
(l)
0.01
0.01
 
(0.05)
(m)
(0.28)
—
Share effect
(0.11)
(0.11)
(n)
0.02
0.02
 
0.01
 
(0.08)
(0.09)
2019 earnings
1.70
1.70
 
(0.35)
(0.35)
 
(0.13)
 
1.22
1.35
 
 
 
 
 
 
 
 
 
 
 





Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)
Year-to-Date 2019 vs. 2018
(After-tax, per share in $)

 
Utility
 
Parent & Other
 
EWC
 
Consolidated
 
As-Reported
Adjusted
 
As-Reported
Adjusted
 
As-
Reported
 
As-
Reported
Adjusted
2018 earnings
3.24
3.01
 
(0.75)
(0.75)
 
(0.41)
 
2.08
2.26
Operating revenue less:
  Fuel, fuel-related expenses and
  gas purchased for resale,
  Purchased power, and
  Regulatory charges (credits)
0.25
0.25
(e)
—
—
 
(0.06)
(f)
0.19
0.25
Non-fuel O&M
(0.09)
(0.09)
(g)
0.02
0.02
 
(0.03)
 
(0.10)
(0.07)
Asset write-offs and impairments
—
—
 
—
—
 
0.22
(h)
0.22
—
Decommissioning expense
(0.02)
(0.02)
 
—
—
 
(0.04)
 
(0.06)
(0.02)
Taxes other than income taxes
(0.02)
(0.02)
 
—
—
 
0.03
 
0.01
(0.02)
Depreciation/amortization exp.
(0.09)
(0.09)
(i)
—
—
 
—
 
(0.09)
(0.09)
Other income (deductions)-other
0.08
0.08
(j)
(0.02)
(0.02)
 
0.89
(k)
0.95
0.06
Interest exp. and other charges
(0.05)
(0.05)
(o)
(0.03)
(0.03)
 
(0.01)
 
(0.09)
(0.08)
Income taxes-other
(0.21)
0.02
(l)
0.01
0.01
 
(0.21)
(m)
(0.41)
0.03
Preferred dividend requirements
(0.01)
(0.01)
 
—
—
 
—
 
(0.01)
(0.01)
Share effect
(0.17)
(0.17)
(n)
0.04
0.04
 
(0.02)
 
(0.15)
(0.13)
2019 earnings
2.91
2.91
 
(0.73)
(0.73)
 
0.36
 
2.54
2.18
 
 
 
 
 
 
 
 
 
 
 
Calculations may differ due to rounding.

(c)
Utility revenue and Utility income taxes exclude $61 million in second quarter 2019 and $278 million in second quarter 2018 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility revenue and Utility income taxes exclude $122 million in 2019 and $278 million in 2018.
(d)
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes-other represents income tax differences other than the tax effect of individual line items.
Utility As-Reported Operating revenue less Fuel, fuel-related expenses and gas purchased for resale; Purchased power; and Regulatory charges (credits) Variance Analysis
2019 vs. 2018 ($ EPS)
 
2Q
YTD
Volume/weather
(0.17)
(0.33)
Retail electric price
Reg. charges for lower tax rate
0.22
0.11
0.34
0.22
Other
0.02
0.02
Total
0.18
0.25
(e)
The second quarter and year-to-date earnings increases were primarily driven by rate activity from E-AR’s FRP, E-LA’s FRP, E-LA’s AMI rider, as well as E-TX’s base rate case. Second quarter 2019 also included recovery of the St. Charles Power Station. In addition, in the second quarter and year-to-date 2018, E-LA recorded regulatory charges to return the benefits of the lower effective federal tax rate to customers. Partially offsetting was the net effect of volume/weather primarily due to the effects of weather and lower volume in the unbilled period.
(f)
The second quarter and year-to-date earnings decreases were due largely to lower revenues due to the shutdown of Pilgrim in May 2019, as well as impacts on fuel expense from EWC plant impairments. The year-to-date decrease was partially offset by higher nuclear energy volume.




(g)
The second quarter and year-to-date earnings decreases from higher Utility non-fuel O&M reflected higher spending on information technology, initiatives to explore new customer products and services, and fossil-fueled generation due to higher scope of work during outages. These were partially offset by lower E-MS storm damage provisions (offset in operating revenue). The second quarter variance also included higher spending on nuclear operations, including higher outage costs and amortization. The year-to-date variance reflected lower nuclear spending in addition to the items previously noted.
(h)
The second quarter and year-to-date earnings increases from lower EWC asset write-offs and impairments were due to lower refueling outage costs being impaired in 2019, as well as a gain on the sale of a switchyard at Pilgrim.
(i)
The second quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the St. Charles Power Station, partially offset by updated Grand Gulf depreciation rates.
(j)
The second quarter and year-to date earnings increases from Utility other income (deductions)-other were due largely to higher AFUDC-equity funds from higher CWIP in 2019, including the Lake Charles Power Station, Montgomery County Power Station and New Orleans Power Station. Changes in decommissioning trust fund activity also contributed.
(k)
The second quarter and year-to-date earnings increases from higher EWC other income (deductions)-other were due largely to gains on the decommissioning trust fund investments in 2019.
(l)
The second quarter and year-to-date as-reported earnings decreases from higher Utility income taxes were primarily due to the settlement of the 2012 / 2013 IRS audit totaling $43 million in second quarter 2018.
(m)
The second quarter and year-to-date earnings decreases from higher EWC income taxes were primarily due to $13 million in tax benefits from the settlement of the 2012 / 2013 IRS audit in second quarter 2018. The year-to date earnings decrease also reflected an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019.
(n)
The second quarter and year-to-date earnings per share decreases from share effect were due to settlement of the equity forward (6.8 million shares settled in December 2018 and 8.4 million shares settled in May 2019).
(o)
The year-to-date earnings decrease from higher Utility interest expense was largely due to higher debt balances at E-AR and E-LA.












C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provides comparative summaries of Utility operating and financial measures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appendix C-1: Utility Operating and Financial Measures
Second Quarter and Year-to-Date 2019 vs. 2018
 
Second Quarter
Year-to-Date
 
2019
2018
%
Change
% Weather Adjusted (p)
2019
2018
%
Change
% Weather Adjusted (p)
GWh billed
 
 
 
 
 
 
 
 
Residential
7,652
7,749
(1.3)
0.4
16,123
17,036
(5.4)
—
Commercial
6,841
6,943
(1.5)
(0.4)
13,264
13,675
(3.0)
(0.9)
Governmental
626
612
2.3
2.3
1,227
1,220
0.6
0.8
Industrial
11,965
12,219
(2.1)
(2.1)
23,648
23,624
0.1
0.1
Total retail sales
27,084
27,523
(1.6)
(0.9)
54,262
55,555
(2.3)
(0.2)
Wholesale
3,170
2,566
23.5
 
6,984
5,810
20.2
 
Total sales
30,254
30,089
0.5
 
61,246
61,365
(0.2)
 
 
 
 
 
 
 
 
 
 
Number of electric retail customers
 
 
 
 
 
 
 
 
Residential
2,489,842
2,479,833
0.4
 
 
 
 
 
Commercial
358,545
356,688
0.5
 
 
 
 
 
Governmental
17,906
17,966
(0.3)
 
 
 
 
 
Industrial
41,416
43,212
(4.2)
 
 
 
 
 
Total retail customers
2,907,709
2,897,699
0.3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-fuel O&M per MWh
$22.79
$22.05
3.4
 
$21.44
$21.05
1.8
 
 
 
 
 
 
 
 
 
 

On a weather-adjusted basis for second quarter 2019, billed sales decreased (0.9) percent, including lower industrial and commercial sales. Industrial billed sales volume decreased (2.1) percent driven by lower sales to cogeneration customers as well as existing customers. This was partially offset by continued growth from new and expansion customers. Residential billed sales increased 0.4 percent.

Appendix C-2: Utility Operating Measures
Twelve Months Ended June 30, 2019 vs. 2018
 
Twelve Months Ended June 30
 
2019
2018
%
Change
% Weather Adjusted (p)
GWh billed
 
 
 
 
Residential
36,194
35,893
0.8
0.3
Commercial
29,015
29,096
(0.3)
(0.4)
Governmental
2,588
2,529
2.3
1.9
Industrial
48,408
48,067
0.7
0.7
Total retail sales
116,205
115,585
0.5
0.3
 
 
 
 
 
Calculations may differ due to rounding
Certain prior year data has been reclassified to conform with current year presentation
(p)
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.








D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).

Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2019 vs. 2018
($ in millions)
Second Quarter
Year-to-Date
 
2019
2018
Change
2019
2018
Change
Net income (loss)
(25)
(56)
31
72
(74)
146
Add back: interest expense
9
8
1
18
17
1
Add back: income taxes
(9)
(30)
21
57
(31)
88
Add back: depreciation and amortization
38
39
(1)
76
77
(1)
Subtract: interest and investment income
75
58
17
257
56
201
Add back: decommissioning expense
64
60
4
128
118
10
Adjusted EBITDA (non-GAAP)
2
(37)
39
94
50
44
 
 
 
 
 
 
 
Calculations may differ due to rounding

Appendix D-2 provides a comparative summary of EWC operating and financial measures.

Appendix D-2: EWC Operating and Financial Measures
Second Quarter and Year-to-Date 2019 vs. 2018
 
Second Quarter
Year-to-Date
 
2019
2018
% Change
2019
2018
% Change
Owned capacity (MW) (q)
3,274
3,962
(17.4)
3,274
3,962
(17.4)
GWh billed
7,258
7,281
(0.3)
14,461
14,277
1.3
 
 
 
 
 
 
 
EWC Nuclear Fleet
 
 
 
 
 
 
Capacity factor
92%
86%
7.0
89%
85%
4.7
GWh billed
6,703
6,713
(0.1)
13,392
13,121
2.1
Production cost per MWh
$24.82
$17.15
44.7
$21.92
$17.93
22.3
Average energy/capacity revenue per MWh
$37.85
$41.82
(9.5)
$48.55
$49.21
(1.4)
Refueling outage days
 
 
 
 
 
 
Indian Point 2
—
20
 
—
33
 
Indian Point 3
8
—
 
29
—
 
Palisades
—
—
 
—
—
 
Pilgrim
—
—
 
—
—
 
 
 
 
 
 
 
 
Calculations may differ due to rounding
(q)
Second quarter and year-to-date 2019 exclude Pilgrim (688MW), which was shut down May 31, 2019.

See the appendix in the webcast slide presentation for EWC hedging and price disclosures.






E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.

Appendix E: GAAP and Non-GAAP Financial Measures
Second Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures)
 
 
For 12 months ending June 30
2019
2018
Change
GAAP Measures
 
 
 
As-reported ROIC
5.5%
3.2%
2.3%
As-reported ROE
10.8%
3.6%
7.2%
 
 
 
 
Non-GAAP Measures
 
 
 
Adjusted ROIC
5.5%
5.2%
0.3%
Adjusted ROE
11.0%
10.1%
0.9%
 
 
 
 
As of June 30 ($ in millions)
2019
2018
Change
GAAP Measures
 
 
 
Cash and cash equivalents
636
813
(177)
Revolver capacity
4,120
3,885
235
Commercial paper
1,635
1,945
(310)
Total debt
19,054
17,881
1,173
Securitization debt
360
483
(123)
Debt to capital
65.5%
68.5%
(3)%
Off-balance sheet liabilities:
 
 
 
  Debt of joint ventures - Entergy’s share
58
64
(6)
  Leases - Entergy’s share (r)
—
429
(429)
  Power purchase agreements accounted for as leases (r)
—
136
(136)
Total off-balance sheet liabilities
58
629
(571)
 
 
 
 
Non-GAAP Financial Measures
 
 
 
Debt to capital, excluding securitization debt
65.1%
67.9%
(2.8%)
Gross liquidity
4,756
4,698
58
Net debt to net capital, excluding securitization debt
64.3%
66.9%
(2.6%)
Parent debt to total debt, excluding securitization debt
19.4%
24.0%
(4.6%)
FFO to debt, excluding securitization debt
11.8%
15.4%
(3.6%)
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
15.8%
15.9%
(0.1%)
 
 
 
 

(r)
As of January 1, 2019, Entergy adopted ASC 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases.




F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

Appendix F-1: Definitions
Utility Operating and Financial Measures
GWh billed
Total number of GWh billed to retail and wholesale customers
Non-fuel O&M
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power
Non-fuel O&M per MWh
Non-fuel O&M per MWh of billed sales
Number of electric retail customers
Average number of customers for the quarter
 
 
EWC Operating and Financial Measures
Adjusted EBITDA (non-GAAP)
Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense
Average revenue under contract per kW-month (applies to capacity contracts only)
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards
Average revenue per MWh on contracted volumes
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs
Bundled capacity and energy contracts
A contract for the sale of installed capacity and related energy, priced per MWh sold
Capacity contracts
A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO
Capacity factor
Normalized percentage of the period that the nuclear plants generate power
Expected sold and market total revenue per MWh
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA
Firm LD
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products





Appendix F-1: Definitions
EWC Operating and Financial Measures (continued)
GWh billed
Total number of GWh billed to customers and financially-settled instruments
Owned capacity (MW)
Installed capacity owned by EWC
Percent of capacity sold forward
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Percent of planned generation under contract
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract
Planned net MW in operation
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
Planned TWh of generation
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022)
Production cost per MWh
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
Refueling outage days
Number of days lost for a scheduled refueling and maintenance outage during the period
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee
 
 
Financial Measures - GAAP
As-reported ROE
12-months rolling net income attributable to Entergy Corporation divided by average common equity
As-reported ROIC
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Debt of joint ventures - Entergy’s share
Entergy’s share of debt issued by business joint ventures at EWC
Debt to capital
Total debt divided by total capitalization
Leases - Entergy’s share
Operating leases held by subsidiaries capitalized at implicit interest rate
Revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA
Total debt
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet
 
 






Appendix F-1: Definitions
Financial Measures - Non-GAAP
Adjusted EPS
As-reported EPS excluding adjustments
Adjusted ROE
12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity
Adjusted ROIC
12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital
Adjustments
Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items
Debt to capital, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
FFO
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges
FFO to debt, excluding securitization debt
12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC
Gross liquidity
Sum of cash and revolver capacity
Net debt to net capital, excluding securitization debt
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Parent debt to total debt, excluding securitization debt
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt
 
 







Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.

Appendix F-2: Abbreviations and Acronyms
ADIT
AFUDC -
borrowed funds
AFUDC -
equity funds
AMI
ANO

APSC
ARO
bps
CCGT
CCN
CCNO
COD
CT
CWIP
DCRF
E-AR
E-LA
E-MS
E-NO
E-TX
EBITDA

ENGC
ENP
EPS
ETR
EWC
FERC
FFO
FRP
GAAP
Grand Gulf or GGNS
Indian Point 1

Indian Point 2
or IP2
Indian Point 3
or IP3
IPEC
ISES 2

IRS
Accumulated deferred income taxes
Allowance for borrowed funds used during construction
Allowance for equity funds used during construction
Advanced metering infrastructure
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear)
Arkansas Public Service Commission
Asset retirement obligation
Basis points
Combined cycle gas turbine
Certificate of convenience & necessity
Council of the City of New Orleans, Louisiana
Commercial operation date
Simple cycle combustion turbine
Construction work in progress
Distribution cost recovery factor
Entergy Arkansas, LLC
Entergy Louisiana, LLC
Entergy Mississippi, LLC
Entergy New Orleans, LLC
Entergy Texas, Inc.
Earnings before interest, income taxes, depreciation and amortization
Entergy Nuclear Generation Company
Entergy Nuclear Palisades, LLC
Earnings per share
Entergy Corporation
Entergy Wholesale Commodities
Federal Energy Regulatory Commission
Funds from operations
Formula rate plan
U.S. generally accepted accounting principles
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI
Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974)
Indian Point Energy Center Unit 2 (nuclear)

Indian Point Energy Center Unit 3 (nuclear)

Indian Point Energy Center (nuclear)
Unit 2 of Independence Steam Electric Station (coal)
Internal Revenue Service
ISO
LPSC
LTM
LTSA
MISO
Moody’s
MPSC
MTEP
Nelson 6
NEPOOL
Ninemile 6
Non-fuel O&M
NDT
NRC
NYISO
NYPA
NYSE
O&M
OCF
OpCo
OPEB
P&O
Palisades
Pilgrim
PPA

PUCT
RICE
RFP
ROE
ROIC
RS Cogen
RSP
S&P
SCPS
SEC
SERI
TCRF
Union
UPSA
Vermont
Yankee
WACC
Independent system operator
Louisiana Public Service Commission
Last twelve months
Long-term service agreement
Midcontinent Independent System Operator, Inc.
Moody’s Investor Service
Mississippi Public Service Commission
MISO Transmission Expansion Planning
Unit 6 of Roy S. Nelson plant (coal)
New England Power Pool
Ninemile Point Unit 6 (CCGT)
Non-fuel operation and maintenance expense
Nuclear decommissioning trust
Nuclear Regulatory Commission
New York Independent System Operator, Inc.
New York Power Authority
New York Stock Exchange
Operation and maintenance expense
Net cash flow provided by operating activities
Operating Company
Other post-employment benefits
Parent & Other
Palisades Power Plant (nuclear)
Pilgrim Nuclear Power Station (nuclear)
Power purchase agreement or purchased power agreement
Public Utility Commission of Texas
Reciprocating Internal Combustion Engine
Request for proposals
Return on equity
Return on invested capital
RS Cogen facility (CCGT cogeneration)
Rate Stabilization Plan (E-LA Gas)
Standard & Poor’s
St. Charles Power Station (CCGT)
U.S. Securities and Exchange Commission
System Energy Resources, Inc.
Transmission cost recovery factor
Union Power Station (CCGT)
Unit Power Sales Agreement
Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019)
Weighted-average cost of capital






G: GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE
($ in millions except where noted)
 
Second Quarter
 
 
2019
2018
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months
(A)
961
297
Preferred dividends
 
15
14
Tax effected interest expense
 
543
510
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense
(B)
1,519
821
 
 
 
 
Adjustments in prior quarters
 
8
(517)
Adjustments
 
(26)
(14)
  Total adjustments
(C)
(18)
(531)
EWC preferred dividends and tax-effected interest expense, rolling 12 months
 
30
24
 
 
 
 
Total adjustments, including preferred dividends and tax effected interest expense (non-GAAP)
(D)
12
(507)
 
 
 
 
Adjusted earnings, rolling 12 months (non-GAAP)
(A-C)
979
828
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP)
(B-D)
1,507
1,328
 
 
 
 
Average invested capital
(E)
27,586
25,480
 
 
 
 
Average common equity
(F)
8,910
8,197
 
 
 
 
As-reported ROIC
(B/E)
5.5%
3.2%
Adjusted ROIC (non-GAAP)
[(B-D)/E]
5.5%
5.2%
As-reported ROE
(A/F)
10.8%
3.6%
Adjusted ROE (non-GAAP)
[(A-C)/F]
11.0%
10.1%
 
 
 
 
Calculations may differ due to rounding





Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC
($ in millions except where noted)
 
Second Quarter
 
 
2019
2018
Total debt
(A)
19,054
17,881
Less securitization debt
(B)
360
483
Total debt, excluding securitization debt
(C)
18,694
17,398
Less cash and cash equivalents
(D)
636
813
Net debt, excluding securitization debt
(E)
18,058
16,585
 
 
 
 
Total capitalization
(F)
29,071
26,102
Less securitization debt
(B)
360
483
Total capitalization, excluding securitization debt
(G)
28,711
25,619
Less cash and cash equivalents
(D)
636
813
Net capital, excluding securitization debt
(H)
28,075
24,806
 
 
 
 
Debt to capital
(A/F)
65.5%
68.5%
Debt to capital, excluding securitization debt (non-GAAP)
(C/G)
65.1%
67.9%
Net debt to net capital, excluding securitization debt (non-GAAP)
(E/H)
64.3%
66.9%
 
 
 
 
Revolver capacity
(I)
4,120
3,885
 
 
 
 
Gross liquidity (non-GAAP)
(D+I)
4,756
4,698
 
 
 
 
Entergy Corporation notes:
 
 
 
Due September 2020
 
450
450
Due July 2022
 
650
650
Due September 2026
 
750
750
Total parent long-term debt
(J)
1,850
1,850
Revolver draw
(K)
150
390
Commercial paper
(L)
1,635
1,945
Unamortized debt issuance and discounts
(M)
(9)
(11)
Total parent debt
(J+K+L+M)
3,626
4,174
 
 
 
 
Parent debt to total debt, excluding securitization debt (non-GAAP)
[(J+K+L+M)/C]
19.4%
24.0%
 
 
 
 






Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued)
($ in millions except where noted)
 
Second Quarter
 
 
2019
2018
Total debt
(A)
19,054
17,881
Less securitization debt
(B)
360
483
Total debt, excluding securitization debt
(C)
18,694
17,398
 
 
 
 
Net cash flow provided by operating activities, rolling 12 months
(D)
2,358
2,884
 
 
 
 
AFUDC - borrowed funds, rolling 12 months
(E)
(67)
(53)
 
 
 
 
Working capital items in net cash flow provided by operating activities (rolling 12 months):
 
 
 
Receivables
 
17
(149)
Fuel inventory
 
24
(1)
Accounts payable
 
(19)
190
Taxes accrued
 
9
28
Interest accrued
 
7
3
Other working capital accounts
 
(81)
(48)
Securitization regulatory charges
 
121
123
Total
(F)
78
146
 
 
 
 
FFO, rolling 12 months (non-GAAP)
(G)=(D+E-F)
2,213
2,685
 
 
 
 
FFO to debt, excluding securitization debt (non-GAAP)
(G/C)
11.8%
15.4%
 
 
 
 
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax)
(H)
651
76
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax)
(I)
97
—
 
 
 
 
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP)
[(G+H+I)/(C)]
15.8%
15.9%
 
 
 
 
Calculations may differ due to rounding




















Financial Statements

Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
June 30, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
 Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
41,433

 
$
6,270

 
$
13,497

 
$
61,200

    Temporary cash investments
 
295,951

 
8,941

 
269,817

 
574,709

     Total cash and cash equivalents
 
337,384

 
15,211

 
283,314

 
635,909

Notes receivable
 
—

 
(511,494
)
 
511,494

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
585,029

 
—

 
67,998

 
653,027

   Allowance for doubtful accounts
 
(6,965
)
 
—

 
—

 
(6,965
)
   Associated companies
 
15,091

 
(30,884
)
 
15,793

 
—

   Other
 
118,342

 
27

 
12,114

 
130,483

   Accrued unbilled revenues
 
458,079

 
—

 
—

 
458,079

     Total accounts receivable
 
1,169,576

 
(30,857
)
 
95,905

 
1,234,624

Deferred fuel costs
 
8,685

 
—

 
—

 
8,685

Fuel inventory - at average cost
 
125,245

 
—

 
5,405

 
130,650

Materials and supplies - at average cost
 
755,440

 
—

 
31,628

 
787,068

Deferred nuclear refueling outage costs
 
158,480

 
—

 
60,789

 
219,269

Prepayments and other
 
186,748

 
(16,784
)
 
97,339

 
267,303

TOTAL
 
2,741,558

 
(543,924
)
 
1,085,874

 
3,283,508

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,420,941

 
(1,421,027
)
 
86

 
—

Decommissioning trust funds
 
3,479,584

 
—

 
3,589,680

 
7,069,264

Non-utility property - at cost (less accumulated depreciation)
312,600

 
(9
)
 
11,775

 
324,366

Other
 
442,407

 
—

 
1,232

 
443,639

TOTAL
 
5,655,532

 
(1,421,036
)
 
3,602,773

 
7,837,269

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
51,026,818

 
10,323

 
978,232

 
52,015,373

Natural gas
 
517,044

 
—

 
—

 
517,044

Construction work in progress
 
2,652,919

 
319

 
25,443

 
2,678,681

Nuclear fuel
 
673,866

 
—

 
82,685

 
756,551

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
54,870,647

 
10,642

 
1,086,360

 
55,967,649

Less - accumulated depreciation and amortization
 
21,679,131

 
1,072

 
742,711

 
22,422,914

PROPERTY, PLANT AND EQUIPMENT - NET
 
33,191,516

 
9,570

 
343,649

 
33,544,735

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Other regulatory assets
 
4,882,432

 
—

 
—

 
4,882,432

    Deferred fuel costs
 
239,694

 
—

 
—

 
239,694

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
55,041

 
2,749

 
10,090

 
67,880

Other
 
157,960

 
8,783

 
166,312

 
333,055

TOTAL
 
5,709,226

 
11,532

 
179,475

 
5,900,233

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
47,297,832

 
$
(1,943,858
)
 
$
5,211,771

 
$
50,565,745

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
June 30, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
 Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
150,010

 
$
—

 
$
—

 
$
150,010

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
—

 
—

 
—

  Other
 
—

 
1,635,462

 
—

 
1,635,462

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
22,178

 
(32,653
)
 
10,475

 
—

  Other
 
1,119,821

 
245

 
292,541

 
1,412,607

Customer deposits
 
409,531

 
—

 
—

 
409,531

Taxes accrued
 
209,729

 
(7,302
)
 
13,628

 
216,055

Interest accrued
 
165,334

 
26,420

 
1,293

 
193,047

Deferred fuel costs
 
65,823

 
—

 
—

 
65,823

Pension and other postretirement liabilities
 
42,735

 
—

 
12,319

 
55,054

Current portion of unprotected excess accumulated deferred
 
 
 
 
 
 
 
      income taxes
 
189,273

 
—

 
—

 
189,273

Other
 
172,454

 
1,874

 
21,418

 
195,746

TOTAL
 
2,546,888

 
1,624,046

 
351,674

 
4,522,608

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
5,715,968

 
(362,194
)
 
(962,524
)
 
4,391,250

Accumulated deferred investment tax credits
 
208,925

 
—

 
—

 
208,925

Regulatory liability for income taxes - net
 
1,726,770

 
—

 
—

 
1,726,770

Other regulatory liabilities
 
1,877,241

 
—

 
—

 
1,877,241

Decommissioning and retirement cost liabilities
 
3,602,275

 
—

 
3,186,088

 
6,788,363

Accumulated provisions
 
518,100

 
—

 
621

 
518,721

Pension and other postretirement liabilities
 
1,902,228

 
—

 
654,010

 
2,556,238

Long-term debt
 
15,074,241

 
1,991,047

 
139,000

 
17,204,288

Other
 
1,130,883

 
(438,095
)
 
61,623

 
754,411

TOTAL
 
31,756,631

 
1,190,758

 
3,078,818

 
36,026,207

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
195,178

 
—

 
24,249

 
219,427

 
 
 
 
 
 
 
 
 
COMMON EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
      issued 270,035,180 shares in 2019
 
1,973,748

 
(2,172,151
)
 
201,103

 
2,700

  Paid-in capital
 
3,855,088

 
1,082,780

 
1,601,665

 
6,539,533

  Retained earnings
 
7,185,864

 
1,398,500

 
289,101

 
8,873,465

  Accumulated other comprehensive income (loss)
 
(95,565
)
 
—

 
(334,839
)
 
(430,404
)
  Less - treasury stock, at cost (71,349,066 shares in 2019)
 
120,000

 
5,067,791

 
—

 
5,187,791

TOTAL
 
12,799,135

 
(4,758,662
)
 
1,757,030

 
9,797,503

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
47,297,832

 
$
(1,943,858
)
 
$
5,211,771

 
$
50,565,745

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cash and cash equivalents:
 
 
 
 
 
 
 
 
    Cash
 
$
52,362

 
$
4,096

 
$
232

 
$
56,690

    Temporary cash investments
 
207,590

 
3,792

 
212,903

 
424,285

     Total cash and cash equivalents
 
259,952

 
7,888

 
213,135

 
480,975

Notes receivable
 
—

 
(511,786
)
 
511,786

 
—

Accounts receivable:
 
 
 
 
 
 
 
 
   Customer
 
481,059

 
—

 
77,435

 
558,494

   Allowance for doubtful accounts
 
(7,322
)
 
—

 
—

 
(7,322
)
   Associated companies
 
28,949

 
(32,855
)
 
3,906

 
—

   Other
 
157,656

 
—

 
10,066

 
167,722

   Accrued unbilled revenues
 
395,511

 
—

 
—

 
395,511

     Total accounts receivable
 
1,055,853

 
(32,855
)
 
91,407

 
1,114,405

Deferred fuel costs
 
27,251

 
—

 
—

 
27,251

Fuel inventory - at average cost
 
113,698

 
—

 
3,606

 
117,304

Materials and supplies - at average cost
 
719,438

 
—

 
33,405

 
752,843

Deferred nuclear refueling outage costs
 
147,796

 
—

 
83,164

 
230,960

Prepayments and other
 
171,199

 
(16,113
)
 
79,240

 
234,326

TOTAL
 
2,495,187

 
(552,866
)
 
1,015,743

 
2,958,064

 
 
 
 
 
 
 
 
 
OTHER PROPERTY AND INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in affiliates - at equity
 
1,430,792

 
(1,430,878
)
 
86

 
—

Decommissioning trust funds
 
3,066,588

 
—

 
3,853,576

 
6,920,164

Non-utility property - at cost (less accumulated depreciation)
293,182

 
(14
)
 
11,214

 
304,382

Other
 
436,981

 
—

 
284

 
437,265

TOTAL
 
5,227,543

 
(1,430,892
)
 
3,865,160

 
7,661,811

 
 
 
 
 
 
 
 
 
PROPERTY, PLANT, AND EQUIPMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric
 
48,275,159

 
9,585

 
911,834

 
49,196,578

Property under capital lease
 
634,908

 
—

 
—

 
634,908

Natural gas
 
496,150

 
—

 
—

 
496,150

Construction work in progress
 
2,815,214

 
270

 
73,155

 
2,888,639

Nuclear fuel
 
753,513

 
—

 
107,759

 
861,272

TOTAL PROPERTY, PLANT AND EQUIPMENT
 
52,974,944

 
9,855

 
1,092,748

 
54,077,547

Less - accumulated depreciation and amortization
 
21,430,017

 
198

 
672,886

 
22,103,101

PROPERTY, PLANT AND EQUIPMENT - NET
 
31,544,927

 
9,657

 
419,862

 
31,974,446

 
 
 
 
 
 
 
 
 
DEFERRED DEBITS AND OTHER ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory assets:
 
 
 
 
 
 
 
 
    Other regulatory assets
 
4,746,496

 
—

 
—

 
4,746,496

    Deferred fuel costs
 
239,496

 
—

 
—

 
239,496

Goodwill
 
374,099

 
—

 
3,073

 
377,172

Accumulated deferred income taxes
 
41,969

 
2,677

 
9,947

 
54,593

Other
 
107,450

 
10,048

 
145,490

 
262,988

TOTAL
 
5,509,510

 
12,725

 
158,510

 
5,680,745

 
 
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
44,777,167

 
$
(1,961,376
)
 
$
5,459,275

 
$
48,275,066

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Balance Sheet
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currently maturing long-term debt
 
$
650,009

 
$
—

 
$
—

 
$
650,009

Notes payable and commercial paper:
 
 
 
 
 
 
 
 
  Associated companies
 
—

 
(227,298
)
 
227,298

 
—

  Other
 
—

 
1,942,339

 
—

 
1,942,339

Account payable:
 
 
 
 
 
 
 
 
  Associated companies
 
29,135

 
(51,435
)
 
22,300

 
—

  Other
 
1,174,309

 
45

 
321,704

 
1,496,058

Customer deposits
 
411,505

 
—

 
—

 
411,505

Taxes accrued
 
267,678

 
(18,490
)
 
5,053

 
254,241

Interest accrued
 
166,592

 
26,401

 
199

 
193,192

Deferred fuel costs
 
52,396

 
—

 
—

 
52,396

Obligations under capital leases
 
1,617

 
—

 
—

 
1,617

Pension and other postretirement liabilities
 
49,104

 
—

 
12,136

 
61,240

Current portion of unprotected excess accumulated deferred
 
 
 
 
 
 
 
      income taxes
 
248,127

 
—

 
—

 
248,127

Other
 
92,168

 
1,638

 
39,014

 
132,820

TOTAL
 
3,142,640

 
1,673,200

 
627,704

 
5,443,544

 
 
 
 
 
 
 
 
 
NON-CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated deferred income taxes and taxes accrued
 
5,458,667

 
(317,012
)
 
(1,034,503
)
 
4,107,152

Accumulated deferred investment tax credits
 
213,101

 
—

 
—

 
213,101

Obligations under capital leases
 
20,378

 
—

 
—

 
20,378

Regulatory liability for income taxes - net
 
1,817,021

 
—

 
—

 
1,817,021

Other regulatory liabilities
 
1,620,254

 
—

 
—

 
1,620,254

Decommissioning and retirement cost liabilities
 
3,244,419

 
—

 
3,111,124

 
6,355,543

Accumulated provisions
 
513,489

 
—

 
618

 
514,107

Pension and other postretirement liabilities
 
1,937,884

 
—

 
678,201

 
2,616,085

Long-term debt
 
13,319,111

 
2,060,192

 
139,000

 
15,518,303

Other
 
740,865

 
(397,003
)
 
642,009

 
985,871

TOTAL
 
28,885,189

 
1,346,177

 
3,536,449

 
33,767,815

 
 
 
 
 
 
 
 
 
Subsidiaries' preferred stock without sinking fund
 
195,153

 
—

 
24,249

 
219,402

 
 
 
 
 
 
 
 
 
COMMON EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common stock, $.01 par value, authorized 500,000,000 shares;
 
 
 
 
 
 
 
      issued 261,587,009 shares in 2018
 
1,973,748

 
(2,172,235
)
 
201,103

 
2,616

  Paid-in capital
 
3,864,764

 
767,625

 
1,319,042

 
5,951,431

  Retained earnings
 
6,931,882

 
1,577,576

 
211,692

 
8,721,150

  Accumulated other comprehensive income (loss)
 
(96,209
)
 
—

 
(460,964
)
 
(557,173
)
  Less - treasury stock, at cost (72,530,866 shares in 2018)
 
120,000

 
5,153,719

 
—

 
5,273,719

TOTAL
 
12,554,185

 
(4,980,753
)
 
1,270,873

 
8,844,305

 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
44,777,167

 
$
(1,961,376
)
 
$
5,459,275

 
$
48,275,066

 
 
 
 
 
 
 
 
 
*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,345,738

 
$
(11
)
 
$
—

 
$
2,345,727

     Natural gas
 
30,699

 
—

 
—

 
30,699

     Competitive businesses
 
—

 
—

 
289,783

 
289,783

                         Total
 
2,376,437

 
(11
)
 
289,783

 
2,666,209

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
441,613

 
(13
)
 
25,723

 
467,323

          Purchased power
 
330,727

 
13

 
15,121

 
345,861

          Nuclear refueling outage expenses
 
39,000

 
—

 
11,962

 
50,962

          Other operation and maintenance
 
650,574

 
3,572

 
187,724

 
841,870

     Asset write-offs, impairments and related charges
 
—

 
—

 
16,419

 
16,419

     Decommissioning
 
40,402

 
—

 
64,225

 
104,627

     Taxes other than income taxes
 
142,763

 
413

 
20,232

 
163,408

     Depreciation and amortization
 
324,856

 
733

 
37,907

 
363,496

     Other regulatory credits
 
(26,532
)
 
—

 
—

 
(26,532
)
                         Total
 
1,943,403

 
4,718

 
379,313

 
2,327,434

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
433,034

 
(4,729
)
 
(89,530
)
 
338,775

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
37,169

 
—

 
—

 
37,169

     Interest and investment income
 
60,074

 
(39,249
)
 
75,393

 
96,218

     Miscellaneous - net
 
(28,579
)
 
(5,638
)
 
(11,653
)
 
(45,870
)
                          Total
 
68,664

 
(44,887
)
 
63,740

 
87,517

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
162,607

 
29,623

 
8,882

 
201,112

     Allowance for borrowed funds used during construction
 
(16,811
)
 
—

 
—

 
(16,811
)
                         Total
 
145,796

 
29,623

 
8,882

 
184,301

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
355,902

 
(79,239
)
 
(34,672
)
 
241,991

 
 
 
 
 
 
 
 
 
Income taxes
 
21,150

 
(10,402
)
 
(9,290
)
 
1,458

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
334,752

 
(68,837
)
 
(25,382
)
 
240,533

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
3,562

 
—

 
547

 
4,109

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
331,190

 
$
(68,837
)
 
$
(25,929
)
 
$
236,424

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$1.71

 
($0.36)

 
($0.13)

 
$1.22

   DILUTED
 
$1.70

 
($0.35)

 
($0.13)

 
$1.22

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
193,019,269

   DILUTED
 
 
 
 
 
 
 
194,238,315

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
2,330,265

 
$
(40
)
 
$
—

 
$
2,330,225

     Natural gas
 
29,943

 
—

 
—

 
29,943

     Competitive businesses
 
—

 
—

 
308,602

 
308,602

                         Total
 
2,360,208

 
(40
)
 
308,602

 
2,668,770

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
447,051

 
(40
)
 
18,791

 
465,802

          Purchased power
 
399,454

 
40

 
17,540

 
417,034

          Nuclear refueling outage expenses
 
34,650

 
—

 
710

 
35,360

          Other operation and maintenance
 
628,751

 
11,724

 
199,628

 
840,103

     Asset write-offs, impairments and related charges
 
—

 
—

 
68,943

 
68,943

     Decommissioning
 
37,285

 
—

 
60,320

 
97,605

     Taxes other than income taxes
 
135,812

 
415

 
22,320

 
158,547

     Depreciation and amortization
 
311,518

 
386

 
38,581

 
350,485

     Other regulatory charges
 
143,294

 
—

 
—

 
143,294

                         Total
 
2,137,815

 
12,525

 
426,833

 
2,577,173

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
222,393

 
(12,565
)
 
(118,231
)
 
91,597

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
31,670

 
—

 
—

 
31,670

     Interest and investment income
 
52,296

 
(38,713
)
 
57,551

 
71,134

     Miscellaneous - net
 
(28,370
)
 
(2,786
)
 
(17,335
)
 
(48,491
)
                          Total
 
55,596

 
(41,499
)
 
40,216

 
54,313

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
154,587

 
29,261

 
8,466

 
192,314

     Allowance for borrowed funds used during construction
 
(14,668
)
 
—

 
—

 
(14,668
)
                         Total
 
139,919

 
29,261

 
8,466

 
177,646

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
138,070

 
(83,325
)
 
(86,481
)
 
(31,736
)
 
 
 
 
 
 
 
 
 
Income taxes
 
(240,324
)
 
(10,128
)
 
(30,144
)
 
(280,596
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
378,394

 
(73,197
)
 
(56,337
)
 
248,860

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
2,892

 
—

 
547

 
3,439

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
375,502

 
$
(73,197
)
 
$
(56,884
)
 
$
245,421

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$2.07

 
($0.40)

 
($0.31)

 
$1.36

   DILUTED
 
$2.05

 
($0.40)

 
($0.31)

 
$1.34

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,823,203

   DILUTED
 
 
 
 
 
 
 
182,982,630

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
4,466,772

 
$
(21
)
 
$
—

 
$
4,466,751

     Natural gas
 
85,647

 
—

 
—

 
85,647

     Competitive businesses
 
—

 
—

 
723,394

 
723,394

                         Total
 
4,552,419

 
(21
)
 
723,394

 
5,275,792

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
894,742

 
(23
)
 
50,934

 
945,653

          Purchased power
 
654,451

 
23

 
30,894

 
685,368

          Nuclear refueling outage expenses
 
77,243

 
—

 
24,160

 
101,403

          Other operation and maintenance
 
1,235,944

 
12,613

 
376,364

 
1,624,921

     Asset write-offs, impairments and related charges
 
—

 
—

 
90,397

 
90,397

     Decommissioning
 
79,126

 
—

 
127,620

 
206,746

     Taxes other than income taxes
 
288,487

 
528

 
32,968

 
321,983

     Depreciation and amortization
 
643,421

 
1,404

 
75,945

 
720,770

     Other regulatory credits
 
(43,478
)
 
—

 
—

 
(43,478
)
                         Total
 
3,829,936

 
14,545

 
809,282

 
4,653,763

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
722,483

 
(14,566
)
 
(85,888
)
 
622,029

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
75,385

 
—

 
—

 
75,385

     Interest and investment income
 
146,353

 
(79,023
)
 
257,037

 
324,367

     Miscellaneous - net
 
(77,982
)
 
(7,776
)
 
(24,769
)
 
(110,527
)
                          Total
 
143,756

 
(86,799
)
 
232,268

 
289,225

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
322,013

 
62,027

 
18,065

 
402,105

     Allowance for borrowed funds used during construction
 
(34,260
)
 
—

 
—

 
(34,260
)
                         Total
 
287,753

 
62,027

 
18,065

 
367,845

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
578,486

 
(163,392
)
 
128,315

 
543,409

 
 
 
 
 
 
 
 
 
Income taxes
 
9,586

 
(21,975
)
 
56,618

 
44,229

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
568,900

 
(141,417
)
 
71,697

 
499,180

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
7,125

 
—

 
1,094

 
8,219

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
561,775

 
$
(141,417
)
 
$
70,603

 
$
490,961

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$2.94

 
($0.74)

 
$0.37

 
$2.57

   DILUTED
 
$2.91

 
($0.73)

 
$0.36

 
$2.54

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
191,306,742

   DILUTED
 
 
 
 
 
 
 
193,243,287

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
4,578,559

 
$
(73
)
 
$
—

 
$
4,578,486

     Natural gas
 
86,638

 
—

 
—

 
86,638

     Competitive businesses
 
—

 
—

 
727,526

 
727,526

                         Total
 
4,665,197

 
(73
)
 
727,526

 
5,392,650

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
870,448

 
(73
)
 
38,723

 
909,098

          Purchased power
 
778,441

 
70

 
34,547

 
813,058

          Nuclear refueling outage expenses
 
75,123

 
—

 
2,997

 
78,120

          Other operation and maintenance
 
1,216,756

 
16,546

 
390,385

 
1,623,687

     Asset write-offs, impairments and related charges
 
—

 
—

 
141,867

 
141,867

     Decommissioning
 
73,550

 
—

 
118,455

 
192,005

     Taxes other than income taxes
 
283,728

 
1,374

 
38,663

 
323,765

     Depreciation and amortization
 
619,984

 
757

 
76,730

 
697,471

     Other regulatory charges
 
186,319

 
—

 
—

 
186,319

                         Total
 
4,104,349

 
18,674

 
842,367

 
4,965,390

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
560,848

 
(18,747
)
 
(114,841
)
 
427,260

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
60,014

 
—

 
—

 
60,014

     Interest and investment income
 
109,100

 
(77,286
)
 
56,191

 
88,005

     Miscellaneous - net
 
(45,503
)
 
(4,387
)
 
(29,959
)
 
(79,849
)
                          Total
 
123,611

 
(81,673
)
 
26,232

 
68,170

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
304,159

 
54,349

 
16,729

 
375,237

     Allowance for borrowed funds used during construction
 
(27,933
)
 
—

 
—

 
(27,933
)
                         Total
 
276,226

 
54,349

 
16,729

 
347,304

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
408,233

 
(154,769
)
 
(105,338
)
 
148,126

 
 
 
 
 
 
 
 
 
Income taxes
 
(188,100
)
 
(17,611
)
 
(31,222
)
 
(236,933
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
596,333

 
(137,158
)
 
(74,116
)
 
385,059

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
5,784

 
—

 
1,094

 
6,878

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
590,549

 
$
(137,158
)
 
$
(75,210
)
 
$
378,181

 
 
 
 
 
 
 
 
 
EARNINGS PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$3.27

 
($0.76)

 
($0.42)

 
$2.09

   DILUTED
 
$3.24

 
($0.75)

 
($0.41)

 
$2.08

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,765,708

   DILUTED
 
 
 
 
 
 
 
182,208,328

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended June 30, 2019
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,272,446

 
$
(70
)
 
$
—

 
$
9,272,376

     Natural gas
 
155,445

 
—

 
—

 
155,445

     Competitive businesses
 
—

 
—

 
1,464,773

 
1,464,773

                         Total
 
9,427,891

 
(70
)
 
1,464,773

 
10,892,594

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
2,094,971

 
(72
)
 
89,448

 
2,184,347

          Purchased power
 
1,419,481

 
72

 
111,557

 
1,531,110

          Nuclear refueling outage expenses
 
152,374

 
—

 
24,734

 
177,108

          Other operation and maintenance
 
2,520,558

 
33,395

 
793,679

 
3,347,632

     Asset write-offs, impairments and related charges
 
—

 
—

 
480,851

 
480,851

     Decommissioning
 
155,201

 
—

 
248,049

 
403,250

     Taxes other than income taxes
 
566,744

 
950

 
72,476

 
640,170

     Depreciation and amortization
 
1,241,756

 
1,921

 
149,064

 
1,392,741

     Other regulatory charges
 
71,252

 
—

 
—

 
71,252

                         Total
 
8,222,337

 
36,266

 
1,969,858

 
10,228,461

 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
1,205,554

 
(36,336
)
 
(505,085
)
 
664,133

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
144,973

 
—

 
—

 
144,973

     Interest and investment income
 
241,189

 
(156,351
)
 
215,388

 
300,226

     Miscellaneous - net
 
(94,505
)
 
(14,641
)
 
(51,287
)
 
(160,433
)
                          Total
 
291,657

 
(170,992
)
 
164,101

 
284,766

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
631,747

 
128,413

 
35,030

 
795,190

     Allowance for borrowed funds used during construction
 
(67,301
)
 
—

 
—

 
(67,301
)
                         Total
 
564,446

 
128,413

 
35,030

 
727,889

 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
932,765

 
(335,741
)
 
(376,014
)
 
221,010

 
 
 
 
 
 
 
 
 
Income taxes
 
(534,863
)
 
(39,617
)
 
(181,185
)
 
(755,665
)
 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME
 
1,467,628

 
(296,124
)
 
(194,829
)
 
976,675

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
13,047

 
—

 
2,188

 
15,235

 
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
1,454,581

 
$
(296,124
)
 
$
(197,017
)
 
$
961,440

 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$7.79

 
($1.59)

 
($1.05)

 
$5.15

   DILUTED
 
$7.69

 
($1.57)

 
($1.04)

 
$5.08

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
186,636,795

   DILUTED
 
 
 
 
 
 
 
189,184,138

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
 
 
Consolidating Income Statement
 
 
 
 
 
 
 
 
Twelve Months Ended June 30, 2018
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Utility
 
Parent & Other
 
Entergy Wholesale Commodities
 
Consolidated
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
     Electric
 
$
9,594,552

 
$
(130
)
 
$
—

 
$
9,594,422

     Natural gas
 
152,068

 
—

 
—

 
152,068

     Competitive businesses
 
—

 
—

 
1,513,633

 
1,513,633

                         Total
 
9,746,620

 
(130
)
 
1,513,633

 
11,260,123

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
     Operating and Maintenance:
 
 
 
 
 
 
 
 
          Fuel, fuel related expenses, and gas purchased for resale
 
2,015,657

 
(130
)
 
71,648

 
2,087,175

          Purchased power
 
1,403,391

 
127

 
63,225

 
1,466,743

          Nuclear refueling outage expenses
 
158,070

 
—

 
7,348

 
165,418

          Other operation and maintenance
 
2,480,323

 
32,208

 
784,600

 
3,297,131

     Asset write-offs, impairments and related charges
 
—

 
—

 
274,877

 
274,877

     Decommissioning
 
144,663

 
—

 
238,357

 
383,020

     Taxes other than income taxes
 
553,496

 
1,704

 
76,505

 
631,705

     Depreciation and amortization
 
1,222,693

 
1,678

 
165,327

 
1,389,698

     Other regulatory charges
 
133,325

 
—

 
—

 
133,325

                         Total
 
8,111,618

 
35,587

 
1,681,887

 
9,829,092

 
 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS)
 
1,635,002

 
(35,717
)
 
(168,254
)
 
1,431,031

 
 
 
 
 
 
 
 
 
OTHER INCOME (DEDUCTIONS)
 
 
 
 
 
 
 
 
     Allowance for equity funds used during construction
 
113,718

 
—

 
—

 
113,718

     Interest and investment income
 
215,809

 
(154,523
)
 
178,270

 
239,556

     Miscellaneous - net
 
(77,387
)
 
(6,562
)
 
(69,631
)
 
(153,580
)
                          Total
 
252,140

 
(161,085
)
 
108,639

 
199,694

 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
     Interest expense
 
607,729

 
102,308

 
27,946

 
737,983

     Allowance for borrowed funds used during construction
 
(53,237
)
 
—

 
—

 
(53,237
)
                         Total
 
554,492

 
102,308

 
27,946

 
684,746

 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
1,332,650

 
(299,110
)
 
(87,561
)
 
945,979

 
 
 
 
 
 
 
 
 
Income taxes
 
377,173

 
(97,766
)
 
355,580

 
634,987

 
 
 
 
 
 
 
 
 
CONSOLIDATED NET INCOME (LOSS)
 
955,477

 
(201,344
)
 
(443,141
)
 
310,992

 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
11,540

 
—

 
2,187

 
13,727

 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
 
$
943,937

 
$
(201,344
)
 
$
(445,328
)
 
$
297,265

 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
 
 
 
 
 
 
 
 
   BASIC
 
$5.24

 
($1.12)

 
($2.47)

 
$1.65

   DILUTED
 
$5.20

 
($1.11)

 
($2.45)

 
$1.64

 
 
 
 
 
 
 
 
 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
   BASIC
 
 
 
 
 
 
 
180,346,266

   DILUTED
 
 
 
 
 
 
 
181,444,134

*Totals may not foot due to rounding.
 
 
 
 
 
 
 
 




Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Six Months Ended June 30, 2019 vs. 2018
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2019
 
2018
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
499,180

 
$
385,059

 
$
114,121

Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
1,068,807

 
1,027,609

 
41,198

  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
225,749

 
88,732

 
137,017

  Asset write-offs, impairments and related charges
 
26,684

 
51,503

 
(24,819
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(127,259
)
 
(45,515
)
 
(81,744
)
     Fuel inventory
 
(13,346
)
 
8,512

 
(21,858
)
     Accounts payable
 
(18,832
)
 
97,464

 
(116,296
)
     Taxes accrued
 
(38,186
)
 
(8,092
)
 
(30,094
)
     Interest accrued
 
(144
)
 
(2,056
)
 
1,912

     Deferred fuel costs
 
31,796

 
(132,263
)
 
164,059

     Other working capital accounts
 
(51,782
)
 
(134,982
)
 
83,200

  Changes in provisions for estimated losses
 
4,719

 
27,443

 
(22,724
)
  Changes in other regulatory assets
 
(135,936
)
 
106,712

 
(242,648
)
  Changes in other regulatory liabilities
 
107,882

 
(247,239
)
 
355,121

  Changes in pensions and other postretirement liabilities
 
(66,033
)
 
(181,278
)
 
115,245

  Other
 
(460,209
)
 
38,314

 
(498,523
)
Net cash flow provided by operating activities
 
1,053,090

 
1,079,923

 
(26,833
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(2,095,520
)
 
(1,885,419
)
 
(210,101
)
Allowance for equity funds used during construction
 
75,607

 
60,335

 
15,272

Nuclear fuel purchases
 
(54,523
)
 
(90,321
)
 
35,798

Proceeds from sale of assets
 
19,801

 
9,163

 
10,638

Insurance proceeds received for property damages
 
7,040

 
10,523

 
(3,483
)
Changes in securitization account
 
12,034

 
4,754

 
7,280

Payments to storm reserve escrow account
 
(4,623
)
 
(2,744
)
 
(1,879
)
Decrease (increase) in other investments
 
51,073

 
(10,769
)
 
61,842

Proceeds from nuclear decommissioning trust fund sales
 
2,487,915

 
1,801,170

 
686,745

Investment in nuclear decommissioning trust funds
 
(2,523,805
)
 
(1,826,384
)
 
(697,421
)
Net cash flow used in investing activities
 
(2,025,001
)
 
(1,929,692
)
 
(95,309
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
5,391,547

 
3,359,193

 
2,032,354

    Treasury stock
 
57,797

 
3,691

 
54,106

    Common stock
 
607,650

 
—

 
607,650

  Retirement of long-term debt
 
(4,214,495
)
 
(2,569,131
)
 
(1,645,364
)
  Repurchase of preferred membership units
 
(50,000
)
 
—

 
(50,000
)
  Changes in credit borrowings and commercial paper - net
 
(306,877
)
 
405,795

 
(712,672
)
  Other
 
(5,106
)
 
10,434

 
(15,540
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(345,452
)
 
(321,821
)
 
(23,631
)
     Preferred stock
 
(8,219
)
 
(6,878
)
 
(1,341
)
Net cash flow provided by financing activities
 
1,126,845

 
881,283

 
245,562

Net increase in cash and cash equivalents
 
154,934

 
31,514

 
123,420

Cash and cash equivalents at beginning of period
 
480,975

 
781,273

 
(300,298
)
Cash and cash equivalents at end of period
 
$
635,909

 
$
812,787

 
$
(176,878
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid (received) during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$388,566

 
$362,629

 
$25,937

     Income taxes
 
($6,967)

 
$14,145

 
($21,112)





Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Three Months Ended June 30, 2019 vs. 2018
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2019
 
2018
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
240,533

 
$
248,860

 
$
(8,327
)
Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
538,583

 
502,428

 
36,155

  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
120,865

 
(15,875
)
 
136,740

  Asset write-offs, impairments and related charges
 
1,222

 
25,703

 
(24,481
)
  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
(166,956
)
 
(176,665
)
 
9,709

     Fuel inventory
 
(8,945
)
 
24,773

 
(33,718
)
     Accounts payable
 
44,781

 
166,321

 
(121,540
)
     Taxes accrued
 
5,897

 
48,209

 
(42,312
)
     Interest accrued
 
20,402

 
7,955

 
12,447

     Deferred fuel costs
 
11,595

 
(56,025
)
 
67,620

     Other working capital accounts
 
(9,766
)
 
(106,978
)
 
97,212

  Changes in provisions for estimated losses
 
(9,001
)
 
16,699

 
(25,700
)
  Changes in other regulatory assets
 
26,256

 
22,363

 
3,893

  Changes in other regulatory liabilities
 
(23,042
)
 
(215,859
)
 
192,817

  Changes in pensions and other postretirement liabilities
 
(58,320
)
 
(83,860
)
 
25,540

  Other
 
(182,203
)
 
114,481

 
(296,684
)
Net cash flow provided by operating activities
 
551,901

 
522,530

 
29,371

  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(1,143,891
)
 
(953,940
)
 
(189,951
)
Allowance for equity funds used during construction
 
37,285

 
31,823

 
5,462

Nuclear fuel purchases
 
(16,078
)
 
(40,674
)
 
24,596

Proceeds from sale of assets
 
19,801

 
9,163

 
10,638

Insurance proceeds received for property damages
 
7,040

 
8,941

 
(1,901
)
Changes in securitization account
 
13,118

 
11,817

 
1,301

Payments to storm reserve escrow account
 
(2,338
)
 
(1,569
)
 
(769
)
Decrease (increase) in other investments
 
12,028

 
(10,363
)
 
22,391

Proceeds from nuclear decommissioning trust fund sales
 
1,180,368

 
709,838

 
470,530

Investment in nuclear decommissioning trust funds
 
(1,181,376
)
 
(720,290
)
 
(461,086
)
Net cash flow used in investing activities
 
(1,074,043
)
 
(955,254
)
 
(118,789
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
1,947,317

 
853,467

 
1,093,850

    Treasury stock
 
22,220

 
1,739

 
20,481

    Common stock
 
607,650

 
—

 
607,650

  Retirement of long-term debt
 
(1,915,640
)
 
(1,835,131
)
 
(80,509
)
  Changes in credit borrowings and commercial paper - net
 
(306,860
)
 
1,178,972

 
(1,485,832
)
  Other
 
(3,161
)
 
5,241

 
(8,402
)
  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(172,861
)
 
(160,934
)
 
(11,927
)
     Preferred stock
 
(4,110
)
 
(3,439
)
 
(671
)
Net cash flow provided by financing activities
 
174,555

 
39,915

 
134,640

Net decrease in cash and cash equivalents
 
(347,587
)
 
(392,809
)
 
45,222

Cash and cash equivalents at beginning of period
 
983,496

 
1,205,596

 
(222,100
)
Cash and cash equivalents at end of period
 
$
635,909

 
$
812,787

 
$
(176,878
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$173,631

 
$177,023

 
($3,392)

     Income taxes
 
$6,877

 
$18,442

 
($11,565)







Entergy Corporation
 
 
 
 
 
 
Consolidated Cash Flow Statement
 
 
 
 
 
 
Twelve Months Ended June 30, 2019 vs. 2018
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
2019
 
2018
 
Variance
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Consolidated net income
 
$
976,675

 
$
310,992

 
$
665,683

Adjustments to reconcile consolidated net income to net cash
 
 
 
 
 
 
flow provided by operating activities:
 
 
 
 
 
 
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
 
2,081,753

 
2,063,516

 
18,237

  Deferred income taxes, investment tax credits, and non-current taxes accrued
 
(119,831
)
 
942,012

 
(1,061,843
)
  Asset write-offs, impairments and related charges
 
466,920

 
187,926

 
278,994

  Changes in working capital:
 
 
 
 
 
 
     Receivables
 
16,802

 
(149,243
)
 
166,045

     Fuel inventory
 
23,981

 
(744
)
 
24,725

     Accounts payable
 
(18,984
)
 
189,579

 
(208,563
)
     Taxes accrued
 
9,178

 
27,963

 
(18,785
)
     Interest accrued
 
7,132

 
2,633

 
4,499

     Deferred fuel costs
 
138,230

 
51,972

 
86,258

     Other working capital accounts
 
(80,973
)
 
(47,808
)
 
(33,165
)
  Changes in provisions for estimated losses
 
12,982

 
31,504

 
(18,522
)
  Changes in other regulatory assets
 
(53,455
)
 
639,604

 
(693,059
)
  Changes in other regulatory liabilities
 
(448,202
)
 
2,676,806

 
(3,125,008
)
  Deferred tax rate change recognized as regulatory liability / asset
 
—

 
(3,665,498
)
 
3,665,498

  Changes in pensions and other postretirement liabilities
 
(189,696
)
 
(131,618
)
 
(58,078
)
  Other
 
(464,098
)
 
(245,856
)
 
(218,242
)
Net cash flow provided by operating activities
 
2,358,414

 
2,883,740

 
(525,326
)
  INVESTING ACTIVITIES
 
 
 
 
 
 
Construction/capital expenditures
 
(4,152,111
)
 
(3,773,239
)
 
(378,872
)
Allowance for equity funds used during construction
 
145,467

 
114,458

 
31,009

Nuclear fuel purchases
 
(266,786
)
 
(257,889
)
 
(8,897
)
Payment for purchase of plant or assets
 
(26,623
)
 
(16,762
)
 
(9,861
)
Proceeds from sale of assets
 
35,540

 
9,163

 
26,377

Insurance proceeds received for property damages
 
14,787

 
10,523

 
4,264

Changes in securitization account
 
1,436

 
(3,951
)
 
5,387

Payments to storm reserve escrow account
 
(8,430
)
 
(4,498
)
 
(3,932
)
Receipts from storm reserve escrow account
 
—

 
2,487

 
(2,487
)
Decrease (increase) in other investments
 
7,342

 
(11,396
)
 
18,738

Litigation proceeds for reimbursement of spent nuclear fuel storage costs
 
59,643

 
—

 
59,643

Proceeds from nuclear decommissioning trust fund sales
 
7,171,536

 
3,501,219

 
3,670,317

Investment in nuclear decommissioning trust funds
 
(7,183,097
)
 
(3,570,652
)
 
(3,612,445
)
Net cash flow used in investing activities
 
(4,201,296
)
 
(4,000,537
)
 
(200,759
)
FINANCING ACTIVITIES
 
 
 
 
 
 
  Proceeds from the issuance of:
 
 
 
 
 
 
    Long-term debt
 
10,067,890

 
4,132,054

 
5,935,836

    Preferred stock of subsidiary
 
73,330

 
14,399

 
58,931

    Treasury stock
 
157,421

 
76,601

 
80,820

    Common stock
 
1,106,922

 
—

 
1,106,922

  Retirement of long-term debt
 
(8,611,102
)
 
(3,288,475
)
 
(5,322,627
)
  Repurchase / redemption of preferred stock and preferred membership units
 
(103,868
)
 
(20,599
)
 
(83,269
)
  Changes in credit borrowings and commercial paper - net
 
(348,641
)
 
735,134

 
(1,083,775
)
  Other
 
10,913

 
(1,602
)
 
12,515

  Dividends paid:
 
 
 
 
 
 
     Common stock
 
(671,335
)
 
(638,497
)
 
(32,838
)
     Preferred stock
 
(15,526
)
 
(13,926
)
 
(1,600
)
Net cash flow provided by financing activities
 
1,666,004

 
995,089

 
670,915

Net decrease in cash and cash equivalents
 
(176,878
)
 
(121,708
)
 
(55,170
)
Cash and cash equivalents at beginning of period
 
812,787

 
934,495

 
(121,708
)
Cash and cash equivalents at end of period
 
$
635,909

 
$
812,787

 
$
(176,878
)
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
  Cash paid (received) during the period for:
 
 
 
 
 
 
     Interest - net of amount capitalized
 
$760,782

 
$706,445

 
$54,337

     Income taxes
 
($1,287)

 
$15,443

 
($16,730)