BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.

Business Segment Information

BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation

Entergy’s reportable segments as of March 31, 2020 were Utility and Entergy Wholesale Commodities. Utility includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and natural gas utility service in portions of Louisiana. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity.

Entergy’s segment financial information for the first quarters of 2020 and 2019 was as follows:



	Utility			Entergy Wholesale Commodities			All Other			Eliminations			Entergy
	(In Thousands)
2020
Operating revenues	$2,094,629			$332,549			$11				($10	)	$2,427,179
Income taxes	($52,949)			($30,540)				$12,295			$—		($71,194)
Consolidated net income (loss)	$323,849				($110,428	)		($58,228	)		($31,899	)	$123,294
Total assets as of March 31, 2020	$50,421,661			$3,921,539			$697,784				($2,485,955	)	$52,555,029
2019
Operating revenues	$2,175,982			$433,612				$—			($10	)	$2,609,584
Income taxes		($11,564	)		$65,908			($11,573	)		$—			$42,771
Consolidated net income (loss)	$234,147			$97,079				($40,682	)		($31,898	)	$258,646
Total assets as of December 31, 2019	$49,557,664			$4,154,961			$514,020				($2,502,733	)	$51,723,912

The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations were primarily intersegment activity. Almost all of Entergy’s goodwill was related to the Utility segment.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to shut down and sell all of the remaining plants in the merchant nuclear fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions.

Total restructuring charges for the first quarters of 2020 and 2019 were comprised of the following:



	2020						2019
	Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total		Employee retention and severance expenses and other benefits-related costs		Contracted economic development costs		Total
	(In Millions)
Balance as of January 1,		$129		$14		$143		$179		$14		$193
Restructuring costs accrued	21		—		21		34		—		34
Balance as of March 31,		$150		$14		$164		$213		$14		$227

In addition, Entergy Wholesale Commodities incurred $5 million in the first quarter 2020 and $74 million in the first quarter 2019 of impairment and other related charges associated with these strategic decisions and transactions.

Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to exit the merchant power business of approximately $75 million in 2020, of which $21 million has been incurred as of March 31, 2020, and a total of approximately $55 million from 2021 through 2022.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results.