Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy Corporation and Subsidiaries consist of the following:

	2019			2018			2017
	(In Thousands)
Current:
Federal		($14,416	)		$36,848			$29,595
State	6,535			7,274			15,478
Total	(7,881		)	44,122			45,073
Deferred and non-current - net	(155,956		)	(1,074,416		)	505,010
Investment tax credit adjustments - net	(5,988		)	(6,532		)	(7,513		)
Income taxes		($169,825	)		($1,036,826	)		$542,570

Total Income Taxes For Entergy Corporation And Subsidiaries

The reasons for the differences for the years 2019, 2018, and 2017 are:

	2019			2018			2017
	(In Thousands)
Net income (loss) attributable to Entergy Corporation		$1,241,226			$848,661			$411,612
Preferred dividend requirements of subsidiaries	17,018			13,894			13,741
Consolidated net income (loss)	1,258,244			862,555			425,353
Income taxes	(169,825		)	(1,036,826		)	542,570
Income (loss) before income taxes		$1,088,419			($174,271	)		$967,923
Computed at statutory rate (21% for 2019 and 2018) (35% for 2017)		$228,568			($36,597	)		$338,773
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	61,791			21,398			44,179
Regulatory differences - utility plant items	(45,336		)	(37,507		)	39,825
Equity component of AFUDC	(30,444		)	(27,216		)	(33,282		)
Amortization of investment tax credits	(8,093		)	(8,304		)	(10,204		)
Flow-through / permanent differences	(2,059		)	439			8,727
Tax legislation enactment (a)	—			—			560,410
Amortization of excess ADIT (a)	(205,614		)	(577,082		)	—
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding	—			(40,494		)	—
Utility restructuring (b)	—			(169,918		)	—
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—
State income tax audit conclusion	—			(23,425		)	—
IRS audit adjustment	—			(8,404		)	—
Entergy Wholesale Commodities nuclear decommissioning trust restructuring (d)	—			(106,833		)	—
Entergy Wholesale Commodities restructuring (d)	(173,725		)	—			(373,277		)
FitzPatrick disposition	—			—			(44,344		)
Charitable contribution (d)	(19,101		)	—			—
Net operating loss recognition	(41,427		)	—			—
Provision for uncertain tax positions	7,332			24,569			8,756
Valuation allowance	59,345			2,211			—
Other - net	(1,062		)	2,657			3,007
Total income taxes as reported		($169,825	)		($1,036,826	)		$542,570
Effective Income Tax Rate	(15.6		%)	595.0		%	56.1		%

(a) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(b) See “Other Tax Matters - Entergy Arkansas and Entergy Mississippi Internal Restructuring” below for discussion of the Utility restructuring.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement.

(d) See “Other Tax Matters - Entergy Wholesale Commodities Restructuring” below for discussion of the Entergy Wholesale Commodities nuclear decommissioning trust restructuring in 2018, the Entergy Wholesale Commodities restructurings in 2017 and 2019, and the charitable contribution in 2019.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for Entergy Corporation and Subsidiaries as of December 31, 2019 and 2018 are as follows:

 

	2019			2018
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($4,111,761	)		($3,835,211	)
Regulatory assets	(389,573		)	(370,484		)
Nuclear decommissioning trusts/receivables	(1,015,542		)	(1,128,140		)
Pension, net funding	(348,260		)	(307,626		)
Combined unitary state taxes	(11,519		)	(9,440		)
Power purchase agreements	—			(73,335		)
Deferred fuel	(8,360		)	(29,953		)
Other	(445,378		)	(248,997		)
Total	(6,330,393		)	(6,003,186		)
Deferred tax assets:
Nuclear decommissioning liabilities	929,251			1,070,583
Regulatory liabilities	806,777			895,756
Pension and other post-employment benefits	297,272			305,736
Sale and leaseback	102,420			121,473
Compensation	87,355			86,461
Accumulated deferred investment tax credit	56,013			57,643
Provision for allowances and contingencies	126,886			135,631
Power purchase agreements	231,502			—
Unbilled/deferred revenues	(10,218		)	43,762
Net operating loss carryforwards	1,133,197			628,165
Capital losses and miscellaneous tax credits	22,597			20,549
Valuation allowance	(303,307		)	(243,726		)
Other	289,557			125,522
Total	3,769,302			3,247,555
Non-current accrued taxes (including unrecognized tax benefits)	(1,775,638		)	(1,296,928		)
Accumulated deferred income taxes and taxes accrued		($4,336,729	)		($4,052,559	)

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

Entergy’s estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

Carryover Description	Carryover Amount	Year(s) of expiration
Federal net operating losses before 1/1/2018	$9.8 billion	2023-2037
Federal net operating losses - 1/1/2018 forward	$10.7 billion	N/A
State net operating losses	$20.8 billion	2020-2039
Federal and state charitable contributions	$395.8 million	2020-2024
Miscellaneous federal and state credits	$101.1 million	2020-2038

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of Entergy’s beginning and ending amount of unrecognized tax benefits is as follows:

	2019			2018			2017
	(In Thousands)
Gross balance at January 1		$7,181,482			$4,871,846			$3,909,855
Additions based on tax positions related to the current year	731,276			2,276,614			1,120,687
Additions for tax positions of prior years	151,628			506,142			283,683
Reductions for tax positions of prior years	(681,232		)	(274,600		)	(442,379		)
Settlements	—			(198,520		)	—
Gross balance at December 31	7,383,154			7,181,482			4,871,846
Offsets to gross unrecognized tax benefits:
Carryovers and refund claims	(5,831,587		)	(5,957,992		)	(3,945,524		)
Cash paid to taxing authorities	(10,000		)	(10,000		)	(10,000		)
Unrecognized tax benefits net of unused tax attributes, refund claims and payments (a)		$1,541,567			$1,213,490			$916,322

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

Entergy Arkansas [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy’s Registrant Subsidiaries consist of the following:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($14,549	)		($20,173	)		($8,939	)		($5,822	)		$16,035			$16,256
State	(714		)	(735		)	5,823			1,856			663			(2,831		)
Total	(15,263		)	(20,908		)	(3,116		)	(3,966		)	16,698			13,425
Deferred and non-current - net	(30,278		)	147,453			34,579			4,248			(69,963		)	422
Investment tax credit adjustments - net	(1,228		)	(4,922		)	(597		)	(96		)	(631		)	1,502
Income taxes		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($23,638	)		($15,841	)		($11,275	)		($10,813	)		$16,190			($9,786	)
State	(1,617		)	(1,122		)	(1,066		)	545			3,205			(1,821		)
Total	(25,255		)	(16,963		)	(12,341		)	(10,268		)	19,395			(11,607		)
Deferred and non-current - net	(270,586		)	(32,725		)	(114,738		)	7,943			(44,817		)	(35,329		)
Investment tax credit adjustments - net	(1,226		)	(4,923		)	1,306			(111		)	(821		)	(739		)
Income taxes		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		$16,086			($84,250	)		($8,845	)		($30,635	)		$6,034			$47,674
State	9,191			1,480			(924		)	(728		)	310			5,314
Total	25,277			(82,770		)	(9,769		)	(31,363		)	6,344			52,988
Deferred and non-current - net	69,753			572,988			83,501			62,946			43,102			19,243
Investment tax credit adjustments - net	(1,226		)	(4,920		)	187			1,695			(965		)	(2,262		)
Income taxes		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2019, 2018, and 2017 are:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$262,964			$691,537			$119,925			$52,629			$159,397			$99,120
Income taxes	(46,769		)	121,623			30,866			186			(53,896		)	15,349
Pretax income		$216,195			$813,160			$150,791			$52,815			$105,501			$114,469
Computed at statutory rate (21%)		$45,401			$170,764			$31,666			$11,091			$22,155			$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954			42,854			5,563			3,443			360			5,134
Regulatory differences - utility plant items	(10,627		)	(19,421		)	(5,556		)	(1,532		)	(1,987		)	(6,213		)
Equity component of AFUDC	(3,255		)	(15,545		)	(1,755		)	(2,088		)	(5,973		)	(1,829		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(88		)	(617		)	(1,155		)
Flow-through / permanent differences	696			439			160			(741		)	560			(500		)
Amortization of excess ADIT (b)	(90,921		)	(28,531		)	203			(11,724		)	(69,091		)	(5,550		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	(3,517		)	1,519			500			1,672			430			1,300
Other - net	701			1,210			245			153			267			123
Total income taxes as reported		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349
Effective Income Tax Rate	(21.6		%)	15.0		%	20.5		%	0.4		%	(51.1		%)	13.4		%

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$252,707			$675,614			$126,078			$53,152			$162,235			$94,109
Income taxes	(297,067		)	(54,611		)	(125,773		)	(2,436		)	(26,243		)	(47,675		)
Pretax income		($44,360	)		$621,003			$305			$50,716			$135,992			$46,434
Computed at statutory rate (21%)		($9,316	)		$130,411			$64			$10,650			$28,558			$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794		)	26,031			(1,747		)	2,322			2,576			2,812
Regulatory differences - utility plant items	(14,916		)	(12,604		)	(4,103		)	(1,502		)	(1,872		)	(2,510		)
Equity component of AFUDC	(3,477		)	(16,784		)	(1,829		)	(1,248		)	(2,042		)	(1,837		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(109		)	(808		)	(1,155		)
Flow-through / permanent differences	570			3,203			1,893			(4,222		)	1,038			2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933			(2,810		)	(556		)	884			(43,799		)	(3,565		)
Amortization of excess ADIT (b)	(271,570		)	(104,313		)	(120,831		)	(9,878		)	(11,519		)	(58,971		)
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—			—			—			—
IRS audit adjustment	1,290			1,097			1,018			(96		)	524			(12		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	724			3,949			240			613			839			4,876
Other - net	690			1,195			238			150			262			121
Total income taxes as reported		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)
Effective Income Tax Rate	669.7		%	(8.8		%)	(41,237.0		%)	(4.8		%)	(19.3		%)	(102.7		%)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$139,844			$316,347			$110,032			$44,553			$76,173			$78,596
Income taxes	93,804			485,298			73,919			33,278			48,481			69,969
Pretax income		$233,648			$801,645			$183,951			$77,831			$124,654			$148,565
Computed at statutory rate (35%)		$81,777			$280,576			$64,383			$27,241			$43,629			$51,998
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	11,586			31,927			6,202			2,842			527			5,635
Regulatory differences - utility plant items	7,220			12,168			1,356			619			5,581			12,880
Equity component of AFUDC	(6,458		)	(18,020		)	(3,383		)	(847		)	(2,353		)	(2,221		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(124		)	(951		)	(2,896		)
Flow-through / permanent differences	3,098			3,774			1,567			(3,352		)	1,428			(276		)
Tax legislation enactment (b)	(3,090		)	217,258			3,492			6,153			2,981			(69		)
Non-taxable dividend income	—			(44,658		)	—			—			—			—
Provision for uncertain tax positions	200			5,700			228			600			(2,617		)	4,800
Other - net	672			1,444			234			146			256			118
Total income taxes as reported		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969
Effective Income Tax Rate	40.1		%	60.5		%	40.2		%	42.8		%	38.9		%	47.1		%

(a) See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement for Entergy Louisiana.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2019 and 2018 are as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($979,033	)		($1,987,025	)		($565,202	)		($133,073	)		($551,365	)		($380,594	)
Regulatory assets	(170,949		)	(79,117		)	(10,528		)	(16,867		)	(59,745		)	(52,662		)
Nuclear decommissioning trusts/receivables	(120,306		)	(113,830		)	—			—			—			(100,621		)
Pension, net funding	(102,685		)	(98,743		)	(27,325		)	(11,859		)	(19,961		)	(21,609		)
Deferred fuel	—			(2,637		)	(609		)	(666		)	(4,380		)	(55		)
Other	(82,682		)	(94,139		)	(27,905		)	(25,909		)	2,059			(7,350		)
Total	(1,455,655		)	(2,375,491		)	(631,569		)	(188,374		)	(633,392		)	(562,891		)
Deferred tax assets:
Regulatory liabilities	250,410			283,507			53,421			33,258			65,602			121,011
Nuclear decommissioning liabilities	111,078			56,300			—			—			—			52,633
Pension and other post-employment benefits	(21,828		)	74,881			(5,844		)	(12,666		)	(15,406		)	(898		)
Sale and leaseback	—			—			—			—			—			102,480
Accumulated deferred investment tax credit	8,285			32,534			2,396			556			2,217			10,025
Provision for allowances and contingencies	5,365			77,298			12,963			24,022			4,024			—
Power purchase agreements	(15,087		)	18,004			1,147			7,961			26			—
Unbilled/deferred revenues	5,897			(28,081		)	4,715			1,428			5,544			—
Compensation	2,550			3,670			1,625			496			1,282			75
Net operating loss carryforwards	112,658			65,178			21,492			5,056			—			—
Capital losses and miscellaneous tax credits	—			—			45			—			—			7,857
Other	12,541			35,401			999			9,027			2,004			3
Total	471,869			618,692			92,959			69,138			65,293			293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340		)	(707,714		)	(56,222		)	(235,300		)	(17,314		)	(544,235		)
Accumulated deferred income taxes and taxes accrued		($1,183,126	)		($2,464,513	)		($594,832	)		($354,536	)		($585,413	)		($813,940	)

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($966,791	)		($1,893,831	)		($579,319	)		($135,143	)		($544,282	)		($403,809	)
Regulatory assets	(169,482		)	(74,917		)	(1,732		)	(20,009		)	(57,777		)	(46,627		)
Nuclear decommissioning trusts/receivables	(77,664		)	(71,470		)	—			—			—			(86,882		)
Pension, net funding	(91,962		)	(92,693		)	(24,398		)	(11,885		)	(20,331		)	(18,898		)
Deferred fuel	(5,801		)	(6,974		)	(11,819		)	(1,701		)	(2,835		)	(312		)
Other	(41,025		)	(34,700		)	(13,443		)	(7,640		)	(6,085		)	(4,544		)
Total	(1,352,725		)	(2,174,585		)	(630,711		)	(176,378		)	(631,310		)	(561,072		)
Deferred tax assets:
Regulatory liabilities	247,964			339,126			72,570			40,181			86,032			110,370
Nuclear decommissioning liabilities	99,479			48,738			—			—			—			46,643
Pension and other post-employment benefits	(19,068		)	80,102			(5,405		)	(11,371		)	(14,215		)	(632		)
Sale and leaseback	—			18,999			—			—			—			102,481
Accumulated deferred investment tax credit	8,599			33,928			2,541			579			2,347			9,649
Provision for allowances and contingencies	9,877			81,108			13,412			23,962			5,579			—
Power purchase agreements	(17,223		)	19,385			1,140			12,155			(18		)	—
Unbilled/deferred revenues	7,471			(17,345		)	5,527			636			7,016			—
Compensation	1,708			1,959			1,265			512			995			(260		)
Net operating loss carryforwards	6,338			20,118			4,896			480			261			—
Other	7,977			23,412			1,610			12,181			2,127			4
Total	353,122			649,530			97,556			79,315			90,124			268,255
Non-current accrued taxes (including unrecognized tax benefits)	(85,942		)	(701,666		)	(18,714		)	(226,532		)	(11,349		)	(512,479		)
Accumulated deferred income taxes and taxes accrued		($1,085,545	)		($2,226,721	)		($551,869	)		($323,595	)		($552,535	)		($805,296	)

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

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses	$4.4 billion	$4.3 billion	$2 billion	$1.1 billion	$—	$—
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
State net operating losses	$4.5 billion	$5.2 billion	$2.1 billion	$1.2 billion	$—	$—
Year(s) of expiration	2024	2035-2039	2038-2039	2038-2039	N/A	N/A
Misc. federal credits	$—	$5.2 million	$—	$—	$1.9 million	$3.2 million
Year(s) of expiration	N/A	2035-2038	N/A	N/A	2029-2038	2029-2038
State credits	$—	$—	$—	$—	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2020-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2019, 2018, and 2017 is as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2019		$1,298,662			$2,400,171			$508,765			$686,687			$17,802			$467,487
Additions based on tax positions related to the current year	84,335			28,705			68,594			40,676			2,312			5,496
Additions for tax positions of prior years	20,399			25,090			1,651			489			1,299			2,186
Reductions for tax positions of prior years	(62,154		)	(72,313		)	(12,723		)	(11,079		)	(7		)	(1,838		)
Gross balance at December 31, 2019	1,341,242			2,381,653			566,287			716,773			21,406			473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187		)	(1,573,257		)	(506,976		)	(445,430		)	(3,944		)	(8,392		)
Unrecognized tax benefits net of unused tax attributes and payments		$207,055			$808,396			$59,311			$271,343			$17,462			$464,939

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2018		($117,716	)		$2,518,457			$15,122			$679,544			$16,399			$445,511
Additions based on tax positions related to the current year (a)	1,430,828			30,577			493,039			2,261			1,978			18,271
Additions for tax positions of prior years	31,612			77,372			3,878			12,972			1,722			7,255
Reductions for tax positions of prior years	(21,619		)	(158,510		)	(3,253		)	(8,081		)	(2,262		)	(3,253		)
Settlements	(24,443		)	(67,725		)	(21		)	(9		)	(35		)	(297		)
Gross balance at December 31, 2018	1,298,662			2,400,171			508,765			686,687			17,802			467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839		)	(1,597,826		)	(478,268		)	(420,813		)	(3,199		)	(42,228		)
Unrecognized tax benefits net of unused tax attributes and payments		$124,823			$802,345			$30,497			$265,874			$14,603			$425,259

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2017		$2,503			$2,440,339			$12,206			$166,230			$15,946			$472,372
Additions based on tax positions related to the current year (a)	8,974			32,843			2,105			509,183			1,747			909
Additions for tax positions of prior years	3,682			235,331			1,267			13,364			3,115			1,432
Reductions for tax positions of prior years	(132,875		)	(190,056		)	(456		)	(9,233		)	(4,409		)	(29,202		)
Gross balance at December 31, 2017	(117,716		)	2,518,457			15,122			679,544			16,399			445,511
Offsets to gross unrecognized tax benefits:
Loss carryovers	—			(1,591,907		)	(15,122		)	(441,374		)	(638		)	(12,536		)
Unrecognized tax benefits net of unused tax attributes and payments		($117,716	)		$926,550			$—			$238,170			$15,761			$432,975

(a) The primary additions for Entergy Mississippi in 2018, and Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

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

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$203.3		$85.4		$2.6
Entergy Louisiana		$556.3		$594.0		$575.8
Entergy Mississippi		$1.9		$1.5		$—
Entergy New Orleans		$242.7		$246.2		$31.7
Entergy Texas		$5.7		$5.1		$4.4
System Energy		$—		$—		$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$3.1		$1.7		$1.6
Entergy Louisiana		$14.2		$17.9		$14.1
Entergy Mississippi		$1.7		$1.2		$1.0
Entergy New Orleans		$4.7		$2.7		$2.1
Entergy Texas		$1.1		$0.9		$0.4
System Energy		$14.5		$13.2		$8.5

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

Interest (net-of-tax) was recorded as follows:

	2019			2018		2017
	(In Millions)
Entergy Arkansas		$1.4			$0.2		$0.2
Entergy Louisiana		($3.7	)		$3.8		$5.7
Entergy Mississippi		$0.5			$0.2		$0.2
Entergy New Orleans		$2.0			$0.6		$0.6
Entergy Texas		$0.2			$0.5		($0.8	)
System Energy		$1.3			$4.7		$4.8

Entergy Louisiana [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy’s Registrant Subsidiaries consist of the following:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($14,549	)		($20,173	)		($8,939	)		($5,822	)		$16,035			$16,256
State	(714		)	(735		)	5,823			1,856			663			(2,831		)
Total	(15,263		)	(20,908		)	(3,116		)	(3,966		)	16,698			13,425
Deferred and non-current - net	(30,278		)	147,453			34,579			4,248			(69,963		)	422
Investment tax credit adjustments - net	(1,228		)	(4,922		)	(597		)	(96		)	(631		)	1,502
Income taxes		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($23,638	)		($15,841	)		($11,275	)		($10,813	)		$16,190			($9,786	)
State	(1,617		)	(1,122		)	(1,066		)	545			3,205			(1,821		)
Total	(25,255		)	(16,963		)	(12,341		)	(10,268		)	19,395			(11,607		)
Deferred and non-current - net	(270,586		)	(32,725		)	(114,738		)	7,943			(44,817		)	(35,329		)
Investment tax credit adjustments - net	(1,226		)	(4,923		)	1,306			(111		)	(821		)	(739		)
Income taxes		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		$16,086			($84,250	)		($8,845	)		($30,635	)		$6,034			$47,674
State	9,191			1,480			(924		)	(728		)	310			5,314
Total	25,277			(82,770		)	(9,769		)	(31,363		)	6,344			52,988
Deferred and non-current - net	69,753			572,988			83,501			62,946			43,102			19,243
Investment tax credit adjustments - net	(1,226		)	(4,920		)	187			1,695			(965		)	(2,262		)
Income taxes		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2019, 2018, and 2017 are:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$262,964			$691,537			$119,925			$52,629			$159,397			$99,120
Income taxes	(46,769		)	121,623			30,866			186			(53,896		)	15,349
Pretax income		$216,195			$813,160			$150,791			$52,815			$105,501			$114,469
Computed at statutory rate (21%)		$45,401			$170,764			$31,666			$11,091			$22,155			$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954			42,854			5,563			3,443			360			5,134
Regulatory differences - utility plant items	(10,627		)	(19,421		)	(5,556		)	(1,532		)	(1,987		)	(6,213		)
Equity component of AFUDC	(3,255		)	(15,545		)	(1,755		)	(2,088		)	(5,973		)	(1,829		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(88		)	(617		)	(1,155		)
Flow-through / permanent differences	696			439			160			(741		)	560			(500		)
Amortization of excess ADIT (b)	(90,921		)	(28,531		)	203			(11,724		)	(69,091		)	(5,550		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	(3,517		)	1,519			500			1,672			430			1,300
Other - net	701			1,210			245			153			267			123
Total income taxes as reported		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349
Effective Income Tax Rate	(21.6		%)	15.0		%	20.5		%	0.4		%	(51.1		%)	13.4		%

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$252,707			$675,614			$126,078			$53,152			$162,235			$94,109
Income taxes	(297,067		)	(54,611		)	(125,773		)	(2,436		)	(26,243		)	(47,675		)
Pretax income		($44,360	)		$621,003			$305			$50,716			$135,992			$46,434
Computed at statutory rate (21%)		($9,316	)		$130,411			$64			$10,650			$28,558			$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794		)	26,031			(1,747		)	2,322			2,576			2,812
Regulatory differences - utility plant items	(14,916		)	(12,604		)	(4,103		)	(1,502		)	(1,872		)	(2,510		)
Equity component of AFUDC	(3,477		)	(16,784		)	(1,829		)	(1,248		)	(2,042		)	(1,837		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(109		)	(808		)	(1,155		)
Flow-through / permanent differences	570			3,203			1,893			(4,222		)	1,038			2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933			(2,810		)	(556		)	884			(43,799		)	(3,565		)
Amortization of excess ADIT (b)	(271,570		)	(104,313		)	(120,831		)	(9,878		)	(11,519		)	(58,971		)
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—			—			—			—
IRS audit adjustment	1,290			1,097			1,018			(96		)	524			(12		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	724			3,949			240			613			839			4,876
Other - net	690			1,195			238			150			262			121
Total income taxes as reported		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)
Effective Income Tax Rate	669.7		%	(8.8		%)	(41,237.0		%)	(4.8		%)	(19.3		%)	(102.7		%)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$139,844			$316,347			$110,032			$44,553			$76,173			$78,596
Income taxes	93,804			485,298			73,919			33,278			48,481			69,969
Pretax income		$233,648			$801,645			$183,951			$77,831			$124,654			$148,565
Computed at statutory rate (35%)		$81,777			$280,576			$64,383			$27,241			$43,629			$51,998
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	11,586			31,927			6,202			2,842			527			5,635
Regulatory differences - utility plant items	7,220			12,168			1,356			619			5,581			12,880
Equity component of AFUDC	(6,458		)	(18,020		)	(3,383		)	(847		)	(2,353		)	(2,221		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(124		)	(951		)	(2,896		)
Flow-through / permanent differences	3,098			3,774			1,567			(3,352		)	1,428			(276		)
Tax legislation enactment (b)	(3,090		)	217,258			3,492			6,153			2,981			(69		)
Non-taxable dividend income	—			(44,658		)	—			—			—			—
Provision for uncertain tax positions	200			5,700			228			600			(2,617		)	4,800
Other - net	672			1,444			234			146			256			118
Total income taxes as reported		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969
Effective Income Tax Rate	40.1		%	60.5		%	40.2		%	42.8		%	38.9		%	47.1		%

(a) See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement for Entergy Louisiana.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2019 and 2018 are as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($979,033	)		($1,987,025	)		($565,202	)		($133,073	)		($551,365	)		($380,594	)
Regulatory assets	(170,949		)	(79,117		)	(10,528		)	(16,867		)	(59,745		)	(52,662		)
Nuclear decommissioning trusts/receivables	(120,306		)	(113,830		)	—			—			—			(100,621		)
Pension, net funding	(102,685		)	(98,743		)	(27,325		)	(11,859		)	(19,961		)	(21,609		)
Deferred fuel	—			(2,637		)	(609		)	(666		)	(4,380		)	(55		)
Other	(82,682		)	(94,139		)	(27,905		)	(25,909		)	2,059			(7,350		)
Total	(1,455,655		)	(2,375,491		)	(631,569		)	(188,374		)	(633,392		)	(562,891		)
Deferred tax assets:
Regulatory liabilities	250,410			283,507			53,421			33,258			65,602			121,011
Nuclear decommissioning liabilities	111,078			56,300			—			—			—			52,633
Pension and other post-employment benefits	(21,828		)	74,881			(5,844		)	(12,666		)	(15,406		)	(898		)
Sale and leaseback	—			—			—			—			—			102,480
Accumulated deferred investment tax credit	8,285			32,534			2,396			556			2,217			10,025
Provision for allowances and contingencies	5,365			77,298			12,963			24,022			4,024			—
Power purchase agreements	(15,087		)	18,004			1,147			7,961			26			—
Unbilled/deferred revenues	5,897			(28,081		)	4,715			1,428			5,544			—
Compensation	2,550			3,670			1,625			496			1,282			75
Net operating loss carryforwards	112,658			65,178			21,492			5,056			—			—
Capital losses and miscellaneous tax credits	—			—			45			—			—			7,857
Other	12,541			35,401			999			9,027			2,004			3
Total	471,869			618,692			92,959			69,138			65,293			293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340		)	(707,714		)	(56,222		)	(235,300		)	(17,314		)	(544,235		)
Accumulated deferred income taxes and taxes accrued		($1,183,126	)		($2,464,513	)		($594,832	)		($354,536	)		($585,413	)		($813,940	)

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($966,791	)		($1,893,831	)		($579,319	)		($135,143	)		($544,282	)		($403,809	)
Regulatory assets	(169,482		)	(74,917		)	(1,732		)	(20,009		)	(57,777		)	(46,627		)
Nuclear decommissioning trusts/receivables	(77,664		)	(71,470		)	—			—			—			(86,882		)
Pension, net funding	(91,962		)	(92,693		)	(24,398		)	(11,885		)	(20,331		)	(18,898		)
Deferred fuel	(5,801		)	(6,974		)	(11,819		)	(1,701		)	(2,835		)	(312		)
Other	(41,025		)	(34,700		)	(13,443		)	(7,640		)	(6,085		)	(4,544		)
Total	(1,352,725		)	(2,174,585		)	(630,711		)	(176,378		)	(631,310		)	(561,072		)
Deferred tax assets:
Regulatory liabilities	247,964			339,126			72,570			40,181			86,032			110,370
Nuclear decommissioning liabilities	99,479			48,738			—			—			—			46,643
Pension and other post-employment benefits	(19,068		)	80,102			(5,405		)	(11,371		)	(14,215		)	(632		)
Sale and leaseback	—			18,999			—			—			—			102,481
Accumulated deferred investment tax credit	8,599			33,928			2,541			579			2,347			9,649
Provision for allowances and contingencies	9,877			81,108			13,412			23,962			5,579			—
Power purchase agreements	(17,223		)	19,385			1,140			12,155			(18		)	—
Unbilled/deferred revenues	7,471			(17,345		)	5,527			636			7,016			—
Compensation	1,708			1,959			1,265			512			995			(260		)
Net operating loss carryforwards	6,338			20,118			4,896			480			261			—
Other	7,977			23,412			1,610			12,181			2,127			4
Total	353,122			649,530			97,556			79,315			90,124			268,255
Non-current accrued taxes (including unrecognized tax benefits)	(85,942		)	(701,666		)	(18,714		)	(226,532		)	(11,349		)	(512,479		)
Accumulated deferred income taxes and taxes accrued		($1,085,545	)		($2,226,721	)		($551,869	)		($323,595	)		($552,535	)		($805,296	)

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

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses	$4.4 billion	$4.3 billion	$2 billion	$1.1 billion	$—	$—
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
State net operating losses	$4.5 billion	$5.2 billion	$2.1 billion	$1.2 billion	$—	$—
Year(s) of expiration	2024	2035-2039	2038-2039	2038-2039	N/A	N/A
Misc. federal credits	$—	$5.2 million	$—	$—	$1.9 million	$3.2 million
Year(s) of expiration	N/A	2035-2038	N/A	N/A	2029-2038	2029-2038
State credits	$—	$—	$—	$—	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2020-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2019, 2018, and 2017 is as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2019		$1,298,662			$2,400,171			$508,765			$686,687			$17,802			$467,487
Additions based on tax positions related to the current year	84,335			28,705			68,594			40,676			2,312			5,496
Additions for tax positions of prior years	20,399			25,090			1,651			489			1,299			2,186
Reductions for tax positions of prior years	(62,154		)	(72,313		)	(12,723		)	(11,079		)	(7		)	(1,838		)
Gross balance at December 31, 2019	1,341,242			2,381,653			566,287			716,773			21,406			473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187		)	(1,573,257		)	(506,976		)	(445,430		)	(3,944		)	(8,392		)
Unrecognized tax benefits net of unused tax attributes and payments		$207,055			$808,396			$59,311			$271,343			$17,462			$464,939

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2018		($117,716	)		$2,518,457			$15,122			$679,544			$16,399			$445,511
Additions based on tax positions related to the current year (a)	1,430,828			30,577			493,039			2,261			1,978			18,271
Additions for tax positions of prior years	31,612			77,372			3,878			12,972			1,722			7,255
Reductions for tax positions of prior years	(21,619		)	(158,510		)	(3,253		)	(8,081		)	(2,262		)	(3,253		)
Settlements	(24,443		)	(67,725		)	(21		)	(9		)	(35		)	(297		)
Gross balance at December 31, 2018	1,298,662			2,400,171			508,765			686,687			17,802			467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839		)	(1,597,826		)	(478,268		)	(420,813		)	(3,199		)	(42,228		)
Unrecognized tax benefits net of unused tax attributes and payments		$124,823			$802,345			$30,497			$265,874			$14,603			$425,259

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2017		$2,503			$2,440,339			$12,206			$166,230			$15,946			$472,372
Additions based on tax positions related to the current year (a)	8,974			32,843			2,105			509,183			1,747			909
Additions for tax positions of prior years	3,682			235,331			1,267			13,364			3,115			1,432
Reductions for tax positions of prior years	(132,875		)	(190,056		)	(456		)	(9,233		)	(4,409		)	(29,202		)
Gross balance at December 31, 2017	(117,716		)	2,518,457			15,122			679,544			16,399			445,511
Offsets to gross unrecognized tax benefits:
Loss carryovers	—			(1,591,907		)	(15,122		)	(441,374		)	(638		)	(12,536		)
Unrecognized tax benefits net of unused tax attributes and payments		($117,716	)		$926,550			$—			$238,170			$15,761			$432,975

(a) The primary additions for Entergy Mississippi in 2018, and Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

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

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$203.3		$85.4		$2.6
Entergy Louisiana		$556.3		$594.0		$575.8
Entergy Mississippi		$1.9		$1.5		$—
Entergy New Orleans		$242.7		$246.2		$31.7
Entergy Texas		$5.7		$5.1		$4.4
System Energy		$—		$—		$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$3.1		$1.7		$1.6
Entergy Louisiana		$14.2		$17.9		$14.1
Entergy Mississippi		$1.7		$1.2		$1.0
Entergy New Orleans		$4.7		$2.7		$2.1
Entergy Texas		$1.1		$0.9		$0.4
System Energy		$14.5		$13.2		$8.5

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

Interest (net-of-tax) was recorded as follows:

	2019			2018		2017
	(In Millions)
Entergy Arkansas		$1.4			$0.2		$0.2
Entergy Louisiana		($3.7	)		$3.8		$5.7
Entergy Mississippi		$0.5			$0.2		$0.2
Entergy New Orleans		$2.0			$0.6		$0.6
Entergy Texas		$0.2			$0.5		($0.8	)
System Energy		$1.3			$4.7		$4.8

Entergy Mississippi [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy’s Registrant Subsidiaries consist of the following:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($14,549	)		($20,173	)		($8,939	)		($5,822	)		$16,035			$16,256
State	(714		)	(735		)	5,823			1,856			663			(2,831		)
Total	(15,263		)	(20,908		)	(3,116		)	(3,966		)	16,698			13,425
Deferred and non-current - net	(30,278		)	147,453			34,579			4,248			(69,963		)	422
Investment tax credit adjustments - net	(1,228		)	(4,922		)	(597		)	(96		)	(631		)	1,502
Income taxes		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($23,638	)		($15,841	)		($11,275	)		($10,813	)		$16,190			($9,786	)
State	(1,617		)	(1,122		)	(1,066		)	545			3,205			(1,821		)
Total	(25,255		)	(16,963		)	(12,341		)	(10,268		)	19,395			(11,607		)
Deferred and non-current - net	(270,586		)	(32,725		)	(114,738		)	7,943			(44,817		)	(35,329		)
Investment tax credit adjustments - net	(1,226		)	(4,923		)	1,306			(111		)	(821		)	(739		)
Income taxes		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		$16,086			($84,250	)		($8,845	)		($30,635	)		$6,034			$47,674
State	9,191			1,480			(924		)	(728		)	310			5,314
Total	25,277			(82,770		)	(9,769		)	(31,363		)	6,344			52,988
Deferred and non-current - net	69,753			572,988			83,501			62,946			43,102			19,243
Investment tax credit adjustments - net	(1,226		)	(4,920		)	187			1,695			(965		)	(2,262		)
Income taxes		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2019, 2018, and 2017 are:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$262,964			$691,537			$119,925			$52,629			$159,397			$99,120
Income taxes	(46,769		)	121,623			30,866			186			(53,896		)	15,349
Pretax income		$216,195			$813,160			$150,791			$52,815			$105,501			$114,469
Computed at statutory rate (21%)		$45,401			$170,764			$31,666			$11,091			$22,155			$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954			42,854			5,563			3,443			360			5,134
Regulatory differences - utility plant items	(10,627		)	(19,421		)	(5,556		)	(1,532		)	(1,987		)	(6,213		)
Equity component of AFUDC	(3,255		)	(15,545		)	(1,755		)	(2,088		)	(5,973		)	(1,829		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(88		)	(617		)	(1,155		)
Flow-through / permanent differences	696			439			160			(741		)	560			(500		)
Amortization of excess ADIT (b)	(90,921		)	(28,531		)	203			(11,724		)	(69,091		)	(5,550		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	(3,517		)	1,519			500			1,672			430			1,300
Other - net	701			1,210			245			153			267			123
Total income taxes as reported		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349
Effective Income Tax Rate	(21.6		%)	15.0		%	20.5		%	0.4		%	(51.1		%)	13.4		%

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$252,707			$675,614			$126,078			$53,152			$162,235			$94,109
Income taxes	(297,067		)	(54,611		)	(125,773		)	(2,436		)	(26,243		)	(47,675		)
Pretax income		($44,360	)		$621,003			$305			$50,716			$135,992			$46,434
Computed at statutory rate (21%)		($9,316	)		$130,411			$64			$10,650			$28,558			$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794		)	26,031			(1,747		)	2,322			2,576			2,812
Regulatory differences - utility plant items	(14,916		)	(12,604		)	(4,103		)	(1,502		)	(1,872		)	(2,510		)
Equity component of AFUDC	(3,477		)	(16,784		)	(1,829		)	(1,248		)	(2,042		)	(1,837		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(109		)	(808		)	(1,155		)
Flow-through / permanent differences	570			3,203			1,893			(4,222		)	1,038			2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933			(2,810		)	(556		)	884			(43,799		)	(3,565		)
Amortization of excess ADIT (b)	(271,570		)	(104,313		)	(120,831		)	(9,878		)	(11,519		)	(58,971		)
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—			—			—			—
IRS audit adjustment	1,290			1,097			1,018			(96		)	524			(12		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	724			3,949			240			613			839			4,876
Other - net	690			1,195			238			150			262			121
Total income taxes as reported		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)
Effective Income Tax Rate	669.7		%	(8.8		%)	(41,237.0		%)	(4.8		%)	(19.3		%)	(102.7		%)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$139,844			$316,347			$110,032			$44,553			$76,173			$78,596
Income taxes	93,804			485,298			73,919			33,278			48,481			69,969
Pretax income		$233,648			$801,645			$183,951			$77,831			$124,654			$148,565
Computed at statutory rate (35%)		$81,777			$280,576			$64,383			$27,241			$43,629			$51,998
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	11,586			31,927			6,202			2,842			527			5,635
Regulatory differences - utility plant items	7,220			12,168			1,356			619			5,581			12,880
Equity component of AFUDC	(6,458		)	(18,020		)	(3,383		)	(847		)	(2,353		)	(2,221		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(124		)	(951		)	(2,896		)
Flow-through / permanent differences	3,098			3,774			1,567			(3,352		)	1,428			(276		)
Tax legislation enactment (b)	(3,090		)	217,258			3,492			6,153			2,981			(69		)
Non-taxable dividend income	—			(44,658		)	—			—			—			—
Provision for uncertain tax positions	200			5,700			228			600			(2,617		)	4,800
Other - net	672			1,444			234			146			256			118
Total income taxes as reported		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969
Effective Income Tax Rate	40.1		%	60.5		%	40.2		%	42.8		%	38.9		%	47.1		%

(a) See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement for Entergy Louisiana.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2019 and 2018 are as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($979,033	)		($1,987,025	)		($565,202	)		($133,073	)		($551,365	)		($380,594	)
Regulatory assets	(170,949		)	(79,117		)	(10,528		)	(16,867		)	(59,745		)	(52,662		)
Nuclear decommissioning trusts/receivables	(120,306		)	(113,830		)	—			—			—			(100,621		)
Pension, net funding	(102,685		)	(98,743		)	(27,325		)	(11,859		)	(19,961		)	(21,609		)
Deferred fuel	—			(2,637		)	(609		)	(666		)	(4,380		)	(55		)
Other	(82,682		)	(94,139		)	(27,905		)	(25,909		)	2,059			(7,350		)
Total	(1,455,655		)	(2,375,491		)	(631,569		)	(188,374		)	(633,392		)	(562,891		)
Deferred tax assets:
Regulatory liabilities	250,410			283,507			53,421			33,258			65,602			121,011
Nuclear decommissioning liabilities	111,078			56,300			—			—			—			52,633
Pension and other post-employment benefits	(21,828		)	74,881			(5,844		)	(12,666		)	(15,406		)	(898		)
Sale and leaseback	—			—			—			—			—			102,480
Accumulated deferred investment tax credit	8,285			32,534			2,396			556			2,217			10,025
Provision for allowances and contingencies	5,365			77,298			12,963			24,022			4,024			—
Power purchase agreements	(15,087		)	18,004			1,147			7,961			26			—
Unbilled/deferred revenues	5,897			(28,081		)	4,715			1,428			5,544			—
Compensation	2,550			3,670			1,625			496			1,282			75
Net operating loss carryforwards	112,658			65,178			21,492			5,056			—			—
Capital losses and miscellaneous tax credits	—			—			45			—			—			7,857
Other	12,541			35,401			999			9,027			2,004			3
Total	471,869			618,692			92,959			69,138			65,293			293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340		)	(707,714		)	(56,222		)	(235,300		)	(17,314		)	(544,235		)
Accumulated deferred income taxes and taxes accrued		($1,183,126	)		($2,464,513	)		($594,832	)		($354,536	)		($585,413	)		($813,940	)

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($966,791	)		($1,893,831	)		($579,319	)		($135,143	)		($544,282	)		($403,809	)
Regulatory assets	(169,482		)	(74,917		)	(1,732		)	(20,009		)	(57,777		)	(46,627		)
Nuclear decommissioning trusts/receivables	(77,664		)	(71,470		)	—			—			—			(86,882		)
Pension, net funding	(91,962		)	(92,693		)	(24,398		)	(11,885		)	(20,331		)	(18,898		)
Deferred fuel	(5,801		)	(6,974		)	(11,819		)	(1,701		)	(2,835		)	(312		)
Other	(41,025		)	(34,700		)	(13,443		)	(7,640		)	(6,085		)	(4,544		)
Total	(1,352,725		)	(2,174,585		)	(630,711		)	(176,378		)	(631,310		)	(561,072		)
Deferred tax assets:
Regulatory liabilities	247,964			339,126			72,570			40,181			86,032			110,370
Nuclear decommissioning liabilities	99,479			48,738			—			—			—			46,643
Pension and other post-employment benefits	(19,068		)	80,102			(5,405		)	(11,371		)	(14,215		)	(632		)
Sale and leaseback	—			18,999			—			—			—			102,481
Accumulated deferred investment tax credit	8,599			33,928			2,541			579			2,347			9,649
Provision for allowances and contingencies	9,877			81,108			13,412			23,962			5,579			—
Power purchase agreements	(17,223		)	19,385			1,140			12,155			(18		)	—
Unbilled/deferred revenues	7,471			(17,345		)	5,527			636			7,016			—
Compensation	1,708			1,959			1,265			512			995			(260		)
Net operating loss carryforwards	6,338			20,118			4,896			480			261			—
Other	7,977			23,412			1,610			12,181			2,127			4
Total	353,122			649,530			97,556			79,315			90,124			268,255
Non-current accrued taxes (including unrecognized tax benefits)	(85,942		)	(701,666		)	(18,714		)	(226,532		)	(11,349		)	(512,479		)
Accumulated deferred income taxes and taxes accrued		($1,085,545	)		($2,226,721	)		($551,869	)		($323,595	)		($552,535	)		($805,296	)

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

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses	$4.4 billion	$4.3 billion	$2 billion	$1.1 billion	$—	$—
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
State net operating losses	$4.5 billion	$5.2 billion	$2.1 billion	$1.2 billion	$—	$—
Year(s) of expiration	2024	2035-2039	2038-2039	2038-2039	N/A	N/A
Misc. federal credits	$—	$5.2 million	$—	$—	$1.9 million	$3.2 million
Year(s) of expiration	N/A	2035-2038	N/A	N/A	2029-2038	2029-2038
State credits	$—	$—	$—	$—	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2020-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2019, 2018, and 2017 is as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2019		$1,298,662			$2,400,171			$508,765			$686,687			$17,802			$467,487
Additions based on tax positions related to the current year	84,335			28,705			68,594			40,676			2,312			5,496
Additions for tax positions of prior years	20,399			25,090			1,651			489			1,299			2,186
Reductions for tax positions of prior years	(62,154		)	(72,313		)	(12,723		)	(11,079		)	(7		)	(1,838		)
Gross balance at December 31, 2019	1,341,242			2,381,653			566,287			716,773			21,406			473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187		)	(1,573,257		)	(506,976		)	(445,430		)	(3,944		)	(8,392		)
Unrecognized tax benefits net of unused tax attributes and payments		$207,055			$808,396			$59,311			$271,343			$17,462			$464,939

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2018		($117,716	)		$2,518,457			$15,122			$679,544			$16,399			$445,511
Additions based on tax positions related to the current year (a)	1,430,828			30,577			493,039			2,261			1,978			18,271
Additions for tax positions of prior years	31,612			77,372			3,878			12,972			1,722			7,255
Reductions for tax positions of prior years	(21,619		)	(158,510		)	(3,253		)	(8,081		)	(2,262		)	(3,253		)
Settlements	(24,443		)	(67,725		)	(21		)	(9		)	(35		)	(297		)
Gross balance at December 31, 2018	1,298,662			2,400,171			508,765			686,687			17,802			467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839		)	(1,597,826		)	(478,268		)	(420,813		)	(3,199		)	(42,228		)
Unrecognized tax benefits net of unused tax attributes and payments		$124,823			$802,345			$30,497			$265,874			$14,603			$425,259

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2017		$2,503			$2,440,339			$12,206			$166,230			$15,946			$472,372
Additions based on tax positions related to the current year (a)	8,974			32,843			2,105			509,183			1,747			909
Additions for tax positions of prior years	3,682			235,331			1,267			13,364			3,115			1,432
Reductions for tax positions of prior years	(132,875		)	(190,056		)	(456		)	(9,233		)	(4,409		)	(29,202		)
Gross balance at December 31, 2017	(117,716		)	2,518,457			15,122			679,544			16,399			445,511
Offsets to gross unrecognized tax benefits:
Loss carryovers	—			(1,591,907		)	(15,122		)	(441,374		)	(638		)	(12,536		)
Unrecognized tax benefits net of unused tax attributes and payments		($117,716	)		$926,550			$—			$238,170			$15,761			$432,975

(a) The primary additions for Entergy Mississippi in 2018, and Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

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

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$203.3		$85.4		$2.6
Entergy Louisiana		$556.3		$594.0		$575.8
Entergy Mississippi		$1.9		$1.5		$—
Entergy New Orleans		$242.7		$246.2		$31.7
Entergy Texas		$5.7		$5.1		$4.4
System Energy		$—		$—		$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$3.1		$1.7		$1.6
Entergy Louisiana		$14.2		$17.9		$14.1
Entergy Mississippi		$1.7		$1.2		$1.0
Entergy New Orleans		$4.7		$2.7		$2.1
Entergy Texas		$1.1		$0.9		$0.4
System Energy		$14.5		$13.2		$8.5

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

Interest (net-of-tax) was recorded as follows:

	2019			2018		2017
	(In Millions)
Entergy Arkansas		$1.4			$0.2		$0.2
Entergy Louisiana		($3.7	)		$3.8		$5.7
Entergy Mississippi		$0.5			$0.2		$0.2
Entergy New Orleans		$2.0			$0.6		$0.6
Entergy Texas		$0.2			$0.5		($0.8	)
System Energy		$1.3			$4.7		$4.8

Entergy New Orleans [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy’s Registrant Subsidiaries consist of the following:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($14,549	)		($20,173	)		($8,939	)		($5,822	)		$16,035			$16,256
State	(714		)	(735		)	5,823			1,856			663			(2,831		)
Total	(15,263		)	(20,908		)	(3,116		)	(3,966		)	16,698			13,425
Deferred and non-current - net	(30,278		)	147,453			34,579			4,248			(69,963		)	422
Investment tax credit adjustments - net	(1,228		)	(4,922		)	(597		)	(96		)	(631		)	1,502
Income taxes		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($23,638	)		($15,841	)		($11,275	)		($10,813	)		$16,190			($9,786	)
State	(1,617		)	(1,122		)	(1,066		)	545			3,205			(1,821		)
Total	(25,255		)	(16,963		)	(12,341		)	(10,268		)	19,395			(11,607		)
Deferred and non-current - net	(270,586		)	(32,725		)	(114,738		)	7,943			(44,817		)	(35,329		)
Investment tax credit adjustments - net	(1,226		)	(4,923		)	1,306			(111		)	(821		)	(739		)
Income taxes		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		$16,086			($84,250	)		($8,845	)		($30,635	)		$6,034			$47,674
State	9,191			1,480			(924		)	(728		)	310			5,314
Total	25,277			(82,770		)	(9,769		)	(31,363		)	6,344			52,988
Deferred and non-current - net	69,753			572,988			83,501			62,946			43,102			19,243
Investment tax credit adjustments - net	(1,226		)	(4,920		)	187			1,695			(965		)	(2,262		)
Income taxes		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2019, 2018, and 2017 are:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$262,964			$691,537			$119,925			$52,629			$159,397			$99,120
Income taxes	(46,769		)	121,623			30,866			186			(53,896		)	15,349
Pretax income		$216,195			$813,160			$150,791			$52,815			$105,501			$114,469
Computed at statutory rate (21%)		$45,401			$170,764			$31,666			$11,091			$22,155			$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954			42,854			5,563			3,443			360			5,134
Regulatory differences - utility plant items	(10,627		)	(19,421		)	(5,556		)	(1,532		)	(1,987		)	(6,213		)
Equity component of AFUDC	(3,255		)	(15,545		)	(1,755		)	(2,088		)	(5,973		)	(1,829		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(88		)	(617		)	(1,155		)
Flow-through / permanent differences	696			439			160			(741		)	560			(500		)
Amortization of excess ADIT (b)	(90,921		)	(28,531		)	203			(11,724		)	(69,091		)	(5,550		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	(3,517		)	1,519			500			1,672			430			1,300
Other - net	701			1,210			245			153			267			123
Total income taxes as reported		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349
Effective Income Tax Rate	(21.6		%)	15.0		%	20.5		%	0.4		%	(51.1		%)	13.4		%

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$252,707			$675,614			$126,078			$53,152			$162,235			$94,109
Income taxes	(297,067		)	(54,611		)	(125,773		)	(2,436		)	(26,243		)	(47,675		)
Pretax income		($44,360	)		$621,003			$305			$50,716			$135,992			$46,434
Computed at statutory rate (21%)		($9,316	)		$130,411			$64			$10,650			$28,558			$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794		)	26,031			(1,747		)	2,322			2,576			2,812
Regulatory differences - utility plant items	(14,916		)	(12,604		)	(4,103		)	(1,502		)	(1,872		)	(2,510		)
Equity component of AFUDC	(3,477		)	(16,784		)	(1,829		)	(1,248		)	(2,042		)	(1,837		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(109		)	(808		)	(1,155		)
Flow-through / permanent differences	570			3,203			1,893			(4,222		)	1,038			2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933			(2,810		)	(556		)	884			(43,799		)	(3,565		)
Amortization of excess ADIT (b)	(271,570		)	(104,313		)	(120,831		)	(9,878		)	(11,519		)	(58,971		)
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—			—			—			—
IRS audit adjustment	1,290			1,097			1,018			(96		)	524			(12		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	724			3,949			240			613			839			4,876
Other - net	690			1,195			238			150			262			121
Total income taxes as reported		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)
Effective Income Tax Rate	669.7		%	(8.8		%)	(41,237.0		%)	(4.8		%)	(19.3		%)	(102.7		%)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$139,844			$316,347			$110,032			$44,553			$76,173			$78,596
Income taxes	93,804			485,298			73,919			33,278			48,481			69,969
Pretax income		$233,648			$801,645			$183,951			$77,831			$124,654			$148,565
Computed at statutory rate (35%)		$81,777			$280,576			$64,383			$27,241			$43,629			$51,998
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	11,586			31,927			6,202			2,842			527			5,635
Regulatory differences - utility plant items	7,220			12,168			1,356			619			5,581			12,880
Equity component of AFUDC	(6,458		)	(18,020		)	(3,383		)	(847		)	(2,353		)	(2,221		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(124		)	(951		)	(2,896		)
Flow-through / permanent differences	3,098			3,774			1,567			(3,352		)	1,428			(276		)
Tax legislation enactment (b)	(3,090		)	217,258			3,492			6,153			2,981			(69		)
Non-taxable dividend income	—			(44,658		)	—			—			—			—
Provision for uncertain tax positions	200			5,700			228			600			(2,617		)	4,800
Other - net	672			1,444			234			146			256			118
Total income taxes as reported		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969
Effective Income Tax Rate	40.1		%	60.5		%	40.2		%	42.8		%	38.9		%	47.1		%

(a) See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement for Entergy Louisiana.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2019 and 2018 are as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($979,033	)		($1,987,025	)		($565,202	)		($133,073	)		($551,365	)		($380,594	)
Regulatory assets	(170,949		)	(79,117		)	(10,528		)	(16,867		)	(59,745		)	(52,662		)
Nuclear decommissioning trusts/receivables	(120,306		)	(113,830		)	—			—			—			(100,621		)
Pension, net funding	(102,685		)	(98,743		)	(27,325		)	(11,859		)	(19,961		)	(21,609		)
Deferred fuel	—			(2,637		)	(609		)	(666		)	(4,380		)	(55		)
Other	(82,682		)	(94,139		)	(27,905		)	(25,909		)	2,059			(7,350		)
Total	(1,455,655		)	(2,375,491		)	(631,569		)	(188,374		)	(633,392		)	(562,891		)
Deferred tax assets:
Regulatory liabilities	250,410			283,507			53,421			33,258			65,602			121,011
Nuclear decommissioning liabilities	111,078			56,300			—			—			—			52,633
Pension and other post-employment benefits	(21,828		)	74,881			(5,844		)	(12,666		)	(15,406		)	(898		)
Sale and leaseback	—			—			—			—			—			102,480
Accumulated deferred investment tax credit	8,285			32,534			2,396			556			2,217			10,025
Provision for allowances and contingencies	5,365			77,298			12,963			24,022			4,024			—
Power purchase agreements	(15,087		)	18,004			1,147			7,961			26			—
Unbilled/deferred revenues	5,897			(28,081		)	4,715			1,428			5,544			—
Compensation	2,550			3,670			1,625			496			1,282			75
Net operating loss carryforwards	112,658			65,178			21,492			5,056			—			—
Capital losses and miscellaneous tax credits	—			—			45			—			—			7,857
Other	12,541			35,401			999			9,027			2,004			3
Total	471,869			618,692			92,959			69,138			65,293			293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340		)	(707,714		)	(56,222		)	(235,300		)	(17,314		)	(544,235		)
Accumulated deferred income taxes and taxes accrued		($1,183,126	)		($2,464,513	)		($594,832	)		($354,536	)		($585,413	)		($813,940	)

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($966,791	)		($1,893,831	)		($579,319	)		($135,143	)		($544,282	)		($403,809	)
Regulatory assets	(169,482		)	(74,917		)	(1,732		)	(20,009		)	(57,777		)	(46,627		)
Nuclear decommissioning trusts/receivables	(77,664		)	(71,470		)	—			—			—			(86,882		)
Pension, net funding	(91,962		)	(92,693		)	(24,398		)	(11,885		)	(20,331		)	(18,898		)
Deferred fuel	(5,801		)	(6,974		)	(11,819		)	(1,701		)	(2,835		)	(312		)
Other	(41,025		)	(34,700		)	(13,443		)	(7,640		)	(6,085		)	(4,544		)
Total	(1,352,725		)	(2,174,585		)	(630,711		)	(176,378		)	(631,310		)	(561,072		)
Deferred tax assets:
Regulatory liabilities	247,964			339,126			72,570			40,181			86,032			110,370
Nuclear decommissioning liabilities	99,479			48,738			—			—			—			46,643
Pension and other post-employment benefits	(19,068		)	80,102			(5,405		)	(11,371		)	(14,215		)	(632		)
Sale and leaseback	—			18,999			—			—			—			102,481
Accumulated deferred investment tax credit	8,599			33,928			2,541			579			2,347			9,649
Provision for allowances and contingencies	9,877			81,108			13,412			23,962			5,579			—
Power purchase agreements	(17,223		)	19,385			1,140			12,155			(18		)	—
Unbilled/deferred revenues	7,471			(17,345		)	5,527			636			7,016			—
Compensation	1,708			1,959			1,265			512			995			(260		)
Net operating loss carryforwards	6,338			20,118			4,896			480			261			—
Other	7,977			23,412			1,610			12,181			2,127			4
Total	353,122			649,530			97,556			79,315			90,124			268,255
Non-current accrued taxes (including unrecognized tax benefits)	(85,942		)	(701,666		)	(18,714		)	(226,532		)	(11,349		)	(512,479		)
Accumulated deferred income taxes and taxes accrued		($1,085,545	)		($2,226,721	)		($551,869	)		($323,595	)		($552,535	)		($805,296	)

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

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses	$4.4 billion	$4.3 billion	$2 billion	$1.1 billion	$—	$—
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
State net operating losses	$4.5 billion	$5.2 billion	$2.1 billion	$1.2 billion	$—	$—
Year(s) of expiration	2024	2035-2039	2038-2039	2038-2039	N/A	N/A
Misc. federal credits	$—	$5.2 million	$—	$—	$1.9 million	$3.2 million
Year(s) of expiration	N/A	2035-2038	N/A	N/A	2029-2038	2029-2038
State credits	$—	$—	$—	$—	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2020-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2019, 2018, and 2017 is as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2019		$1,298,662			$2,400,171			$508,765			$686,687			$17,802			$467,487
Additions based on tax positions related to the current year	84,335			28,705			68,594			40,676			2,312			5,496
Additions for tax positions of prior years	20,399			25,090			1,651			489			1,299			2,186
Reductions for tax positions of prior years	(62,154		)	(72,313		)	(12,723		)	(11,079		)	(7		)	(1,838		)
Gross balance at December 31, 2019	1,341,242			2,381,653			566,287			716,773			21,406			473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187		)	(1,573,257		)	(506,976		)	(445,430		)	(3,944		)	(8,392		)
Unrecognized tax benefits net of unused tax attributes and payments		$207,055			$808,396			$59,311			$271,343			$17,462			$464,939

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2018		($117,716	)		$2,518,457			$15,122			$679,544			$16,399			$445,511
Additions based on tax positions related to the current year (a)	1,430,828			30,577			493,039			2,261			1,978			18,271
Additions for tax positions of prior years	31,612			77,372			3,878			12,972			1,722			7,255
Reductions for tax positions of prior years	(21,619		)	(158,510		)	(3,253		)	(8,081		)	(2,262		)	(3,253		)
Settlements	(24,443		)	(67,725		)	(21		)	(9		)	(35		)	(297		)
Gross balance at December 31, 2018	1,298,662			2,400,171			508,765			686,687			17,802			467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839		)	(1,597,826		)	(478,268		)	(420,813		)	(3,199		)	(42,228		)
Unrecognized tax benefits net of unused tax attributes and payments		$124,823			$802,345			$30,497			$265,874			$14,603			$425,259

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2017		$2,503			$2,440,339			$12,206			$166,230			$15,946			$472,372
Additions based on tax positions related to the current year (a)	8,974			32,843			2,105			509,183			1,747			909
Additions for tax positions of prior years	3,682			235,331			1,267			13,364			3,115			1,432
Reductions for tax positions of prior years	(132,875		)	(190,056		)	(456		)	(9,233		)	(4,409		)	(29,202		)
Gross balance at December 31, 2017	(117,716		)	2,518,457			15,122			679,544			16,399			445,511
Offsets to gross unrecognized tax benefits:
Loss carryovers	—			(1,591,907		)	(15,122		)	(441,374		)	(638		)	(12,536		)
Unrecognized tax benefits net of unused tax attributes and payments		($117,716	)		$926,550			$—			$238,170			$15,761			$432,975

(a) The primary additions for Entergy Mississippi in 2018, and Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

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

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$203.3		$85.4		$2.6
Entergy Louisiana		$556.3		$594.0		$575.8
Entergy Mississippi		$1.9		$1.5		$—
Entergy New Orleans		$242.7		$246.2		$31.7
Entergy Texas		$5.7		$5.1		$4.4
System Energy		$—		$—		$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$3.1		$1.7		$1.6
Entergy Louisiana		$14.2		$17.9		$14.1
Entergy Mississippi		$1.7		$1.2		$1.0
Entergy New Orleans		$4.7		$2.7		$2.1
Entergy Texas		$1.1		$0.9		$0.4
System Energy		$14.5		$13.2		$8.5

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

Interest (net-of-tax) was recorded as follows:

	2019			2018		2017
	(In Millions)
Entergy Arkansas		$1.4			$0.2		$0.2
Entergy Louisiana		($3.7	)		$3.8		$5.7
Entergy Mississippi		$0.5			$0.2		$0.2
Entergy New Orleans		$2.0			$0.6		$0.6
Entergy Texas		$0.2			$0.5		($0.8	)
System Energy		$1.3			$4.7		$4.8

Entergy Texas [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy’s Registrant Subsidiaries consist of the following:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($14,549	)		($20,173	)		($8,939	)		($5,822	)		$16,035			$16,256
State	(714		)	(735		)	5,823			1,856			663			(2,831		)
Total	(15,263		)	(20,908		)	(3,116		)	(3,966		)	16,698			13,425
Deferred and non-current - net	(30,278		)	147,453			34,579			4,248			(69,963		)	422
Investment tax credit adjustments - net	(1,228		)	(4,922		)	(597		)	(96		)	(631		)	1,502
Income taxes		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($23,638	)		($15,841	)		($11,275	)		($10,813	)		$16,190			($9,786	)
State	(1,617		)	(1,122		)	(1,066		)	545			3,205			(1,821		)
Total	(25,255		)	(16,963		)	(12,341		)	(10,268		)	19,395			(11,607		)
Deferred and non-current - net	(270,586		)	(32,725		)	(114,738		)	7,943			(44,817		)	(35,329		)
Investment tax credit adjustments - net	(1,226		)	(4,923		)	1,306			(111		)	(821		)	(739		)
Income taxes		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		$16,086			($84,250	)		($8,845	)		($30,635	)		$6,034			$47,674
State	9,191			1,480			(924		)	(728		)	310			5,314
Total	25,277			(82,770		)	(9,769		)	(31,363		)	6,344			52,988
Deferred and non-current - net	69,753			572,988			83,501			62,946			43,102			19,243
Investment tax credit adjustments - net	(1,226		)	(4,920		)	187			1,695			(965		)	(2,262		)
Income taxes		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2019, 2018, and 2017 are:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$262,964			$691,537			$119,925			$52,629			$159,397			$99,120
Income taxes	(46,769		)	121,623			30,866			186			(53,896		)	15,349
Pretax income		$216,195			$813,160			$150,791			$52,815			$105,501			$114,469
Computed at statutory rate (21%)		$45,401			$170,764			$31,666			$11,091			$22,155			$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954			42,854			5,563			3,443			360			5,134
Regulatory differences - utility plant items	(10,627		)	(19,421		)	(5,556		)	(1,532		)	(1,987		)	(6,213		)
Equity component of AFUDC	(3,255		)	(15,545		)	(1,755		)	(2,088		)	(5,973		)	(1,829		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(88		)	(617		)	(1,155		)
Flow-through / permanent differences	696			439			160			(741		)	560			(500		)
Amortization of excess ADIT (b)	(90,921		)	(28,531		)	203			(11,724		)	(69,091		)	(5,550		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	(3,517		)	1,519			500			1,672			430			1,300
Other - net	701			1,210			245			153			267			123
Total income taxes as reported		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349
Effective Income Tax Rate	(21.6		%)	15.0		%	20.5		%	0.4		%	(51.1		%)	13.4		%

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$252,707			$675,614			$126,078			$53,152			$162,235			$94,109
Income taxes	(297,067		)	(54,611		)	(125,773		)	(2,436		)	(26,243		)	(47,675		)
Pretax income		($44,360	)		$621,003			$305			$50,716			$135,992			$46,434
Computed at statutory rate (21%)		($9,316	)		$130,411			$64			$10,650			$28,558			$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794		)	26,031			(1,747		)	2,322			2,576			2,812
Regulatory differences - utility plant items	(14,916		)	(12,604		)	(4,103		)	(1,502		)	(1,872		)	(2,510		)
Equity component of AFUDC	(3,477		)	(16,784		)	(1,829		)	(1,248		)	(2,042		)	(1,837		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(109		)	(808		)	(1,155		)
Flow-through / permanent differences	570			3,203			1,893			(4,222		)	1,038			2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933			(2,810		)	(556		)	884			(43,799		)	(3,565		)
Amortization of excess ADIT (b)	(271,570		)	(104,313		)	(120,831		)	(9,878		)	(11,519		)	(58,971		)
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—			—			—			—
IRS audit adjustment	1,290			1,097			1,018			(96		)	524			(12		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	724			3,949			240			613			839			4,876
Other - net	690			1,195			238			150			262			121
Total income taxes as reported		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)
Effective Income Tax Rate	669.7		%	(8.8		%)	(41,237.0		%)	(4.8		%)	(19.3		%)	(102.7		%)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$139,844			$316,347			$110,032			$44,553			$76,173			$78,596
Income taxes	93,804			485,298			73,919			33,278			48,481			69,969
Pretax income		$233,648			$801,645			$183,951			$77,831			$124,654			$148,565
Computed at statutory rate (35%)		$81,777			$280,576			$64,383			$27,241			$43,629			$51,998
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	11,586			31,927			6,202			2,842			527			5,635
Regulatory differences - utility plant items	7,220			12,168			1,356			619			5,581			12,880
Equity component of AFUDC	(6,458		)	(18,020		)	(3,383		)	(847		)	(2,353		)	(2,221		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(124		)	(951		)	(2,896		)
Flow-through / permanent differences	3,098			3,774			1,567			(3,352		)	1,428			(276		)
Tax legislation enactment (b)	(3,090		)	217,258			3,492			6,153			2,981			(69		)
Non-taxable dividend income	—			(44,658		)	—			—			—			—
Provision for uncertain tax positions	200			5,700			228			600			(2,617		)	4,800
Other - net	672			1,444			234			146			256			118
Total income taxes as reported		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969
Effective Income Tax Rate	40.1		%	60.5		%	40.2		%	42.8		%	38.9		%	47.1		%

(a) See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement for Entergy Louisiana.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2019 and 2018 are as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($979,033	)		($1,987,025	)		($565,202	)		($133,073	)		($551,365	)		($380,594	)
Regulatory assets	(170,949		)	(79,117		)	(10,528		)	(16,867		)	(59,745		)	(52,662		)
Nuclear decommissioning trusts/receivables	(120,306		)	(113,830		)	—			—			—			(100,621		)
Pension, net funding	(102,685		)	(98,743		)	(27,325		)	(11,859		)	(19,961		)	(21,609		)
Deferred fuel	—			(2,637		)	(609		)	(666		)	(4,380		)	(55		)
Other	(82,682		)	(94,139		)	(27,905		)	(25,909		)	2,059			(7,350		)
Total	(1,455,655		)	(2,375,491		)	(631,569		)	(188,374		)	(633,392		)	(562,891		)
Deferred tax assets:
Regulatory liabilities	250,410			283,507			53,421			33,258			65,602			121,011
Nuclear decommissioning liabilities	111,078			56,300			—			—			—			52,633
Pension and other post-employment benefits	(21,828		)	74,881			(5,844		)	(12,666		)	(15,406		)	(898		)
Sale and leaseback	—			—			—			—			—			102,480
Accumulated deferred investment tax credit	8,285			32,534			2,396			556			2,217			10,025
Provision for allowances and contingencies	5,365			77,298			12,963			24,022			4,024			—
Power purchase agreements	(15,087		)	18,004			1,147			7,961			26			—
Unbilled/deferred revenues	5,897			(28,081		)	4,715			1,428			5,544			—
Compensation	2,550			3,670			1,625			496			1,282			75
Net operating loss carryforwards	112,658			65,178			21,492			5,056			—			—
Capital losses and miscellaneous tax credits	—			—			45			—			—			7,857
Other	12,541			35,401			999			9,027			2,004			3
Total	471,869			618,692			92,959			69,138			65,293			293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340		)	(707,714		)	(56,222		)	(235,300		)	(17,314		)	(544,235		)
Accumulated deferred income taxes and taxes accrued		($1,183,126	)		($2,464,513	)		($594,832	)		($354,536	)		($585,413	)		($813,940	)

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($966,791	)		($1,893,831	)		($579,319	)		($135,143	)		($544,282	)		($403,809	)
Regulatory assets	(169,482		)	(74,917		)	(1,732		)	(20,009		)	(57,777		)	(46,627		)
Nuclear decommissioning trusts/receivables	(77,664		)	(71,470		)	—			—			—			(86,882		)
Pension, net funding	(91,962		)	(92,693		)	(24,398		)	(11,885		)	(20,331		)	(18,898		)
Deferred fuel	(5,801		)	(6,974		)	(11,819		)	(1,701		)	(2,835		)	(312		)
Other	(41,025		)	(34,700		)	(13,443		)	(7,640		)	(6,085		)	(4,544		)
Total	(1,352,725		)	(2,174,585		)	(630,711		)	(176,378		)	(631,310		)	(561,072		)
Deferred tax assets:
Regulatory liabilities	247,964			339,126			72,570			40,181			86,032			110,370
Nuclear decommissioning liabilities	99,479			48,738			—			—			—			46,643
Pension and other post-employment benefits	(19,068		)	80,102			(5,405		)	(11,371		)	(14,215		)	(632		)
Sale and leaseback	—			18,999			—			—			—			102,481
Accumulated deferred investment tax credit	8,599			33,928			2,541			579			2,347			9,649
Provision for allowances and contingencies	9,877			81,108			13,412			23,962			5,579			—
Power purchase agreements	(17,223		)	19,385			1,140			12,155			(18		)	—
Unbilled/deferred revenues	7,471			(17,345		)	5,527			636			7,016			—
Compensation	1,708			1,959			1,265			512			995			(260		)
Net operating loss carryforwards	6,338			20,118			4,896			480			261			—
Other	7,977			23,412			1,610			12,181			2,127			4
Total	353,122			649,530			97,556			79,315			90,124			268,255
Non-current accrued taxes (including unrecognized tax benefits)	(85,942		)	(701,666		)	(18,714		)	(226,532		)	(11,349		)	(512,479		)
Accumulated deferred income taxes and taxes accrued		($1,085,545	)		($2,226,721	)		($551,869	)		($323,595	)		($552,535	)		($805,296	)

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

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses	$4.4 billion	$4.3 billion	$2 billion	$1.1 billion	$—	$—
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
State net operating losses	$4.5 billion	$5.2 billion	$2.1 billion	$1.2 billion	$—	$—
Year(s) of expiration	2024	2035-2039	2038-2039	2038-2039	N/A	N/A
Misc. federal credits	$—	$5.2 million	$—	$—	$1.9 million	$3.2 million
Year(s) of expiration	N/A	2035-2038	N/A	N/A	2029-2038	2029-2038
State credits	$—	$—	$—	$—	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2020-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2019, 2018, and 2017 is as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2019		$1,298,662			$2,400,171			$508,765			$686,687			$17,802			$467,487
Additions based on tax positions related to the current year	84,335			28,705			68,594			40,676			2,312			5,496
Additions for tax positions of prior years	20,399			25,090			1,651			489			1,299			2,186
Reductions for tax positions of prior years	(62,154		)	(72,313		)	(12,723		)	(11,079		)	(7		)	(1,838		)
Gross balance at December 31, 2019	1,341,242			2,381,653			566,287			716,773			21,406			473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187		)	(1,573,257		)	(506,976		)	(445,430		)	(3,944		)	(8,392		)
Unrecognized tax benefits net of unused tax attributes and payments		$207,055			$808,396			$59,311			$271,343			$17,462			$464,939

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2018		($117,716	)		$2,518,457			$15,122			$679,544			$16,399			$445,511
Additions based on tax positions related to the current year (a)	1,430,828			30,577			493,039			2,261			1,978			18,271
Additions for tax positions of prior years	31,612			77,372			3,878			12,972			1,722			7,255
Reductions for tax positions of prior years	(21,619		)	(158,510		)	(3,253		)	(8,081		)	(2,262		)	(3,253		)
Settlements	(24,443		)	(67,725		)	(21		)	(9		)	(35		)	(297		)
Gross balance at December 31, 2018	1,298,662			2,400,171			508,765			686,687			17,802			467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839		)	(1,597,826		)	(478,268		)	(420,813		)	(3,199		)	(42,228		)
Unrecognized tax benefits net of unused tax attributes and payments		$124,823			$802,345			$30,497			$265,874			$14,603			$425,259

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2017		$2,503			$2,440,339			$12,206			$166,230			$15,946			$472,372
Additions based on tax positions related to the current year (a)	8,974			32,843			2,105			509,183			1,747			909
Additions for tax positions of prior years	3,682			235,331			1,267			13,364			3,115			1,432
Reductions for tax positions of prior years	(132,875		)	(190,056		)	(456		)	(9,233		)	(4,409		)	(29,202		)
Gross balance at December 31, 2017	(117,716		)	2,518,457			15,122			679,544			16,399			445,511
Offsets to gross unrecognized tax benefits:
Loss carryovers	—			(1,591,907		)	(15,122		)	(441,374		)	(638		)	(12,536		)
Unrecognized tax benefits net of unused tax attributes and payments		($117,716	)		$926,550			$—			$238,170			$15,761			$432,975

(a) The primary additions for Entergy Mississippi in 2018, and Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

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

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$203.3		$85.4		$2.6
Entergy Louisiana		$556.3		$594.0		$575.8
Entergy Mississippi		$1.9		$1.5		$—
Entergy New Orleans		$242.7		$246.2		$31.7
Entergy Texas		$5.7		$5.1		$4.4
System Energy		$—		$—		$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$3.1		$1.7		$1.6
Entergy Louisiana		$14.2		$17.9		$14.1
Entergy Mississippi		$1.7		$1.2		$1.0
Entergy New Orleans		$4.7		$2.7		$2.1
Entergy Texas		$1.1		$0.9		$0.4
System Energy		$14.5		$13.2		$8.5

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

Interest (net-of-tax) was recorded as follows:

	2019			2018		2017
	(In Millions)
Entergy Arkansas		$1.4			$0.2		$0.2
Entergy Louisiana		($3.7	)		$3.8		$5.7
Entergy Mississippi		$0.5			$0.2		$0.2
Entergy New Orleans		$2.0			$0.6		$0.6
Entergy Texas		$0.2			$0.5		($0.8	)
System Energy		$1.3			$4.7		$4.8

System Energy [Member]

Tax Cuts and Jobs Act [Table Text Block]

For the same reasons, the Registrant Subsidiaries’ December 31, 2019 and December 31, 2018 balance sheets reflect net regulatory liabilities for income taxes as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$487		$605
Entergy Louisiana		$531		$612
Entergy Mississippi		$237		$246
Entergy New Orleans		$59		$86
Entergy Texas		$253		$352
System Energy		$143		$163

Excess ADIT is generally classified into two categories: 1) the portion that is subject to the normalization requirements of the Act, i.e., “protected”, and 2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. The Act provides that the normalization method of accounting for income taxes is required for

excess ADIT associated with public utility property. The Act provides for the use of the average rate assumption method (ARAM) for the determination of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in conformity with the normalization requirements. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes protected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$490		$521
Entergy Louisiana		$797		$812
Entergy Mississippi		$261		$271
Entergy New Orleans		$62		$59
Entergy Texas		$228		$237
System Energy		$186		$202

During the second quarter of 2018, the Registrant Subsidiaries began paying unprotected excess accumulated deferred income taxes, associated with the effects of the Act, to their customers through rate riders and other means approved by their respective regulatory commissions. Payment of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. The Registrant Subsidiaries’ net regulatory liability for income taxes as of December 31, 2019 and December 31, 2018, includes unprotected excess ADIT as follows:

	2019		2018
	(In Millions)
Entergy Arkansas		$9		$117
Entergy Louisiana		$242		$295
Entergy New Orleans		$9		$25
Entergy Texas		$83		$171
System Energy		$—		$4

The return of unprotected excess accumulated deferred income taxes reduced Entergy’s and the Registrant Subsidiaries’ regulatory liability for income taxes as follows for 2019 and 2018:

	2019		2018
	(In Millions)
Entergy		$273		$776
Entergy Arkansas		$126		$368
Entergy Louisiana		$39		$141
Entergy Mississippi		$—		$159
Entergy New Orleans		$14		$13
Entergy Texas		$87		$15
System Energy		$7		$80

Income Tax Expenses From Continuing Operations

Income taxes for 2019, 2018, and 2017 for Entergy’s Registrant Subsidiaries consist of the following:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($14,549	)		($20,173	)		($8,939	)		($5,822	)		$16,035			$16,256
State	(714		)	(735		)	5,823			1,856			663			(2,831		)
Total	(15,263		)	(20,908		)	(3,116		)	(3,966		)	16,698			13,425
Deferred and non-current - net	(30,278		)	147,453			34,579			4,248			(69,963		)	422
Investment tax credit adjustments - net	(1,228		)	(4,922		)	(597		)	(96		)	(631		)	1,502
Income taxes		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		($23,638	)		($15,841	)		($11,275	)		($10,813	)		$16,190			($9,786	)
State	(1,617		)	(1,122		)	(1,066		)	545			3,205			(1,821		)
Total	(25,255		)	(16,963		)	(12,341		)	(10,268		)	19,395			(11,607		)
Deferred and non-current - net	(270,586		)	(32,725		)	(114,738		)	7,943			(44,817		)	(35,329		)
Investment tax credit adjustments - net	(1,226		)	(4,923		)	1,306			(111		)	(821		)	(739		)
Income taxes		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Current:
Federal		$16,086			($84,250	)		($8,845	)		($30,635	)		$6,034			$47,674
State	9,191			1,480			(924		)	(728		)	310			5,314
Total	25,277			(82,770		)	(9,769		)	(31,363		)	6,344			52,988
Deferred and non-current - net	69,753			572,988			83,501			62,946			43,102			19,243
Investment tax credit adjustments - net	(1,226		)	(4,920		)	187			1,695			(965		)	(2,262		)
Income taxes		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969

Total Income Taxes For Entergy Corporation And Subsidiaries

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes.  The reasons for the differences for the years 2019, 2018, and 2017 are:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$262,964			$691,537			$119,925			$52,629			$159,397			$99,120
Income taxes	(46,769		)	121,623			30,866			186			(53,896		)	15,349
Pretax income		$216,195			$813,160			$150,791			$52,815			$105,501			$114,469
Computed at statutory rate (21%)		$45,401			$170,764			$31,666			$11,091			$22,155			$24,039
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	15,954			42,854			5,563			3,443			360			5,134
Regulatory differences - utility plant items	(10,627		)	(19,421		)	(5,556		)	(1,532		)	(1,987		)	(6,213		)
Equity component of AFUDC	(3,255		)	(15,545		)	(1,755		)	(2,088		)	(5,973		)	(1,829		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(88		)	(617		)	(1,155		)
Flow-through / permanent differences	696			439			160			(741		)	560			(500		)
Amortization of excess ADIT (b)	(90,921		)	(28,531		)	203			(11,724		)	(69,091		)	(5,550		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	(3,517		)	1,519			500			1,672			430			1,300
Other - net	701			1,210			245			153			267			123
Total income taxes as reported		($46,769	)		$121,623			$30,866			$186			($53,896	)		$15,349
Effective Income Tax Rate	(21.6		%)	15.0		%	20.5		%	0.4		%	(51.1		%)	13.4		%

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$252,707			$675,614			$126,078			$53,152			$162,235			$94,109
Income taxes	(297,067		)	(54,611		)	(125,773		)	(2,436		)	(26,243		)	(47,675		)
Pretax income		($44,360	)		$621,003			$305			$50,716			$135,992			$46,434
Computed at statutory rate (21%)		($9,316	)		$130,411			$64			$10,650			$28,558			$9,751
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	(794		)	26,031			(1,747		)	2,322			2,576			2,812
Regulatory differences - utility plant items	(14,916		)	(12,604		)	(4,103		)	(1,502		)	(1,872		)	(2,510		)
Equity component of AFUDC	(3,477		)	(16,784		)	(1,829		)	(1,248		)	(2,042		)	(1,837		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(109		)	(808		)	(1,155		)
Flow-through / permanent differences	570			3,203			1,893			(4,222		)	1,038			2,815
Revisions of the 2017 tax legislation enactment regulatory liability accrual, including the effect of the Entergy Texas 2018 base rate proceeding (a)	933			(2,810		)	(556		)	884			(43,799		)	(3,565		)
Amortization of excess ADIT (b)	(271,570		)	(104,313		)	(120,831		)	(9,878		)	(11,519		)	(58,971		)
Settlement on treatment of regulatory obligations (c)	—			(52,320		)	—			—			—			—
IRS audit adjustment	1,290			1,097			1,018			(96		)	524			(12		)
Non-taxable dividend income	—			(26,795		)	—			—			—			—
Provision for uncertain tax positions	724			3,949			240			613			839			4,876
Other - net	690			1,195			238			150			262			121
Total income taxes as reported		($297,067	)		($54,611	)		($125,773	)		($2,436	)		($26,243	)		($47,675	)
Effective Income Tax Rate	669.7		%	(8.8		%)	(41,237.0		%)	(4.8		%)	(19.3		%)	(102.7		%)

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Net income		$139,844			$316,347			$110,032			$44,553			$76,173			$78,596
Income taxes	93,804			485,298			73,919			33,278			48,481			69,969
Pretax income		$233,648			$801,645			$183,951			$77,831			$124,654			$148,565
Computed at statutory rate (35%)		$81,777			$280,576			$64,383			$27,241			$43,629			$51,998
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	11,586			31,927			6,202			2,842			527			5,635
Regulatory differences - utility plant items	7,220			12,168			1,356			619			5,581			12,880
Equity component of AFUDC	(6,458		)	(18,020		)	(3,383		)	(847		)	(2,353		)	(2,221		)
Amortization of investment tax credits	(1,201		)	(4,871		)	(160		)	(124		)	(951		)	(2,896		)
Flow-through / permanent differences	3,098			3,774			1,567			(3,352		)	1,428			(276		)
Tax legislation enactment (b)	(3,090		)	217,258			3,492			6,153			2,981			(69		)
Non-taxable dividend income	—			(44,658		)	—			—			—			—
Provision for uncertain tax positions	200			5,700			228			600			(2,617		)	4,800
Other - net	672			1,444			234			146			256			118
Total income taxes as reported		$93,804			$485,298			$73,919			$33,278			$48,481			$69,969
Effective Income Tax Rate	40.1		%	60.5		%	40.2		%	42.8		%	38.9		%	47.1		%

(a) See Note 2 to the financial statements for discussion of the Entergy Texas rate case settlement.

(b) See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2018 and 2019 and the tax legislation enactment in 2017.

(c) See “Income Tax Audits - 2012-2013 IRS Audit” below for discussion of the settlement for Entergy Louisiana.

Significant Components Of Accumulated Deferred Income Taxes And Accrued Taxes

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2019 and 2018 are as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($979,033	)		($1,987,025	)		($565,202	)		($133,073	)		($551,365	)		($380,594	)
Regulatory assets	(170,949		)	(79,117		)	(10,528		)	(16,867		)	(59,745		)	(52,662		)
Nuclear decommissioning trusts/receivables	(120,306		)	(113,830		)	—			—			—			(100,621		)
Pension, net funding	(102,685		)	(98,743		)	(27,325		)	(11,859		)	(19,961		)	(21,609		)
Deferred fuel	—			(2,637		)	(609		)	(666		)	(4,380		)	(55		)
Other	(82,682		)	(94,139		)	(27,905		)	(25,909		)	2,059			(7,350		)
Total	(1,455,655		)	(2,375,491		)	(631,569		)	(188,374		)	(633,392		)	(562,891		)
Deferred tax assets:
Regulatory liabilities	250,410			283,507			53,421			33,258			65,602			121,011
Nuclear decommissioning liabilities	111,078			56,300			—			—			—			52,633
Pension and other post-employment benefits	(21,828		)	74,881			(5,844		)	(12,666		)	(15,406		)	(898		)
Sale and leaseback	—			—			—			—			—			102,480
Accumulated deferred investment tax credit	8,285			32,534			2,396			556			2,217			10,025
Provision for allowances and contingencies	5,365			77,298			12,963			24,022			4,024			—
Power purchase agreements	(15,087		)	18,004			1,147			7,961			26			—
Unbilled/deferred revenues	5,897			(28,081		)	4,715			1,428			5,544			—
Compensation	2,550			3,670			1,625			496			1,282			75
Net operating loss carryforwards	112,658			65,178			21,492			5,056			—			—
Capital losses and miscellaneous tax credits	—			—			45			—			—			7,857
Other	12,541			35,401			999			9,027			2,004			3
Total	471,869			618,692			92,959			69,138			65,293			293,186
Non-current accrued taxes (including unrecognized tax benefits)	(199,340		)	(707,714		)	(56,222		)	(235,300		)	(17,314		)	(544,235		)
Accumulated deferred income taxes and taxes accrued		($1,183,126	)		($2,464,513	)		($594,832	)		($354,536	)		($585,413	)		($813,940	)

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net		($966,791	)		($1,893,831	)		($579,319	)		($135,143	)		($544,282	)		($403,809	)
Regulatory assets	(169,482		)	(74,917		)	(1,732		)	(20,009		)	(57,777		)	(46,627		)
Nuclear decommissioning trusts/receivables	(77,664		)	(71,470		)	—			—			—			(86,882		)
Pension, net funding	(91,962		)	(92,693		)	(24,398		)	(11,885		)	(20,331		)	(18,898		)
Deferred fuel	(5,801		)	(6,974		)	(11,819		)	(1,701		)	(2,835		)	(312		)
Other	(41,025		)	(34,700		)	(13,443		)	(7,640		)	(6,085		)	(4,544		)
Total	(1,352,725		)	(2,174,585		)	(630,711		)	(176,378		)	(631,310		)	(561,072		)
Deferred tax assets:
Regulatory liabilities	247,964			339,126			72,570			40,181			86,032			110,370
Nuclear decommissioning liabilities	99,479			48,738			—			—			—			46,643
Pension and other post-employment benefits	(19,068		)	80,102			(5,405		)	(11,371		)	(14,215		)	(632		)
Sale and leaseback	—			18,999			—			—			—			102,481
Accumulated deferred investment tax credit	8,599			33,928			2,541			579			2,347			9,649
Provision for allowances and contingencies	9,877			81,108			13,412			23,962			5,579			—
Power purchase agreements	(17,223		)	19,385			1,140			12,155			(18		)	—
Unbilled/deferred revenues	7,471			(17,345		)	5,527			636			7,016			—
Compensation	1,708			1,959			1,265			512			995			(260		)
Net operating loss carryforwards	6,338			20,118			4,896			480			261			—
Other	7,977			23,412			1,610			12,181			2,127			4
Total	353,122			649,530			97,556			79,315			90,124			268,255
Non-current accrued taxes (including unrecognized tax benefits)	(85,942		)	(701,666		)	(18,714		)	(226,532		)	(11,349		)	(512,479		)
Accumulated deferred income taxes and taxes accrued		($1,085,545	)		($2,226,721	)		($551,869	)		($323,595	)		($552,535	)		($805,296	)

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

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2019 are as follows:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
Federal net operating losses	$4.4 billion	$4.3 billion	$2 billion	$1.1 billion	$—	$—
Year(s) of expiration	N/A	2035-2037	N/A	2037	N/A	N/A
State net operating losses	$4.5 billion	$5.2 billion	$2.1 billion	$1.2 billion	$—	$—
Year(s) of expiration	2024	2035-2039	2038-2039	2038-2039	N/A	N/A
Misc. federal credits	$—	$5.2 million	$—	$—	$1.9 million	$3.2 million
Year(s) of expiration	N/A	2035-2038	N/A	N/A	2029-2038	2029-2038
State credits	$—	$—	$—	$—	$2.9 million	$13.1 million
Year(s) of expiration	N/A	N/A	N/A	N/A	2026	2020-2023

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2019, 2018, and 2017 is as follows:

2019	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2019		$1,298,662			$2,400,171			$508,765			$686,687			$17,802			$467,487
Additions based on tax positions related to the current year	84,335			28,705			68,594			40,676			2,312			5,496
Additions for tax positions of prior years	20,399			25,090			1,651			489			1,299			2,186
Reductions for tax positions of prior years	(62,154		)	(72,313		)	(12,723		)	(11,079		)	(7		)	(1,838		)
Gross balance at December 31, 2019	1,341,242			2,381,653			566,287			716,773			21,406			473,331
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,134,187		)	(1,573,257		)	(506,976		)	(445,430		)	(3,944		)	(8,392		)
Unrecognized tax benefits net of unused tax attributes and payments		$207,055			$808,396			$59,311			$271,343			$17,462			$464,939

2018	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2018		($117,716	)		$2,518,457			$15,122			$679,544			$16,399			$445,511
Additions based on tax positions related to the current year (a)	1,430,828			30,577			493,039			2,261			1,978			18,271
Additions for tax positions of prior years	31,612			77,372			3,878			12,972			1,722			7,255
Reductions for tax positions of prior years	(21,619		)	(158,510		)	(3,253		)	(8,081		)	(2,262		)	(3,253		)
Settlements	(24,443		)	(67,725		)	(21		)	(9		)	(35		)	(297		)
Gross balance at December 31, 2018	1,298,662			2,400,171			508,765			686,687			17,802			467,487
Offsets to gross unrecognized tax benefits:
Loss carryovers	(1,173,839		)	(1,597,826		)	(478,268		)	(420,813		)	(3,199		)	(42,228		)
Unrecognized tax benefits net of unused tax attributes and payments		$124,823			$802,345			$30,497			$265,874			$14,603			$425,259

2017	Entergy Arkansas			Entergy Louisiana			Entergy Mississippi			Entergy New Orleans			Entergy Texas			System Energy
	(In Thousands)
Gross balance at January 1, 2017		$2,503			$2,440,339			$12,206			$166,230			$15,946			$472,372
Additions based on tax positions related to the current year (a)	8,974			32,843			2,105			509,183			1,747			909
Additions for tax positions of prior years	3,682			235,331			1,267			13,364			3,115			1,432
Reductions for tax positions of prior years	(132,875		)	(190,056		)	(456		)	(9,233		)	(4,409		)	(29,202		)
Gross balance at December 31, 2017	(117,716		)	2,518,457			15,122			679,544			16,399			445,511
Offsets to gross unrecognized tax benefits:
Loss carryovers	—			(1,591,907		)	(15,122		)	(441,374		)	(638		)	(12,536		)
Unrecognized tax benefits net of unused tax attributes and payments		($117,716	)		$926,550			$—			$238,170			$15,761			$432,975

(a) The primary additions for Entergy Mississippi in 2018, and Entergy New Orleans in 2017 are related to the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below. The primary additions for Entergy Arkansas in 2018 are related to the nuclear decommissioning costs treatment and the mark-to-market treatment discussed in “Other Tax Matters - Tax Accounting Methods” below.

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

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$203.3		$85.4		$2.6
Entergy Louisiana		$556.3		$594.0		$575.8
Entergy Mississippi		$1.9		$1.5		$—
Entergy New Orleans		$242.7		$246.2		$31.7
Entergy Texas		$5.7		$5.1		$4.4
System Energy		$—		$—		$—

Summary Of Accrued Interest And Penalties Related To Unrecognized Tax Benefits

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

	December 31,
	2019		2018		2017
	(In Millions)
Entergy Arkansas		$3.1		$1.7		$1.6
Entergy Louisiana		$14.2		$17.9		$14.1
Entergy Mississippi		$1.7		$1.2		$1.0
Entergy New Orleans		$4.7		$2.7		$2.1
Entergy Texas		$1.1		$0.9		$0.4
System Energy		$14.5		$13.2		$8.5

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

Interest (net-of-tax) was recorded as follows:

	2019			2018		2017
	(In Millions)
Entergy Arkansas		$1.4			$0.2		$0.2
Entergy Louisiana		($3.7	)		$3.8		$5.7
Entergy Mississippi		$0.5			$0.2		$0.2
Entergy New Orleans		$2.0			$0.6		$0.6
Entergy Texas		$0.2			$0.5		($0.8	)
System Energy		$1.3			$4.7		$4.8