XML 46 R11.htm IDEA: XBRL DOCUMENT

Equity

6 Months Ended

Jun. 30, 2020

EQUITY (Entergy Corporation and Entergy Louisiana)

Common Stock

Earnings per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:


	For the Three Months Ended June 30,
	2020					2019
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$360.5	200.2	$1.80	$236.4	193.0	$1.22
Average dilutive effect of:
Stock options		0.3	—		0.5	—
Other equity plans		0.4	(0.01)		0.7	—

Diluted earnings per share	$360.5	200.9	$1.79	$236.4	194.2	$1.22

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 0.5 million for the three months ended June 30, 2020.


	For the Six Months Ended June 30,
	2020					2019
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$479.2	200.0	$2.40	$491.0	191.3	$2.57
Average dilutive effect of:
Stock options		0.5	(0.01)		0.5	(0.01)
Other equity plans		0.4	—		0.6	(0.01)
Equity forwards		—	—		0.8	(0.01)
Diluted earnings per share	$479.2	200.9	$2.39	$491.0	193.2	$2.54

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 0.5 million for the six months ended June 30, 2020 and approximately 0.3 million for the six months ended June 30, 2019.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $0.93 for the three months ended June 30, 2020 and $0.91 for the three months ended June 30, 2019. Dividends declared per common share were $1.86 for the six months ended June 30, 2020 and $1.82 for the six months ended June 30, 2019.

Treasury Stock

During the six months ended June 30, 2020, Entergy Corporation issued 1,061,599 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the six months ended June 30, 2020.

Retained Earnings

On July 31, 2020, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.93 per share, payable on September 1, 2020, to holders of record as of August 13, 2020.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2020 by component:



	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2020	$62,496	($503,173)	$41,690	($398,987)

Other comprehensive income (loss) before reclassifications	4,890	—	22,545	27,435
Amounts reclassified from accumulated other comprehensive income (loss)	(30,296)	17,224	(3,980)	(17,052)
Net other comprehensive income (loss) for the period	(25,406)	17,224	18,565	10,383

Ending balance, June 30, 2020	$37,090	($485,949)	$60,255	($388,604)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2019 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2019	($43,246)	($520,372)	$12,466	($551,152)

Other comprehensive income (loss) before reclassifications	99,359	—	15,834	115,193
Amounts reclassified from accumulated other comprehensive income (loss)	(4,377)	11,496	(1,564)	5,555
Net other comprehensive income (loss) for the period	94,982	11,496	14,270	120,748

Ending balance, June 30, 2019	$51,736	($508,876)	$26,736	($430,404)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2020 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, January 1, 2020	$84,206	($557,072)	$25,946	($446,920)

Other comprehensive income (loss) before reclassifications	97,373	34,349	40,258	171,980
Amounts reclassified from accumulated other comprehensive income (loss)	(144,489)	36,774	(5,949)	(113,664)
Net other comprehensive income (loss) for the period	(47,116)	71,123	34,309	58,316

Ending balance, June 30, 2020	$37,090	($485,949)	$60,255	($388,604)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2019 by component:



	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Ending balance, December 31, 2018	($23,135)	($531,922)	($2,116)	($557,173)
Implementation of accounting standards	(7,685)	—	879	(6,806)
Beginning balance, January 1, 2019	($30,820)	($531,922)	($1,237)	($563,979)

Other comprehensive income (loss) before reclassifications	127,670	—	29,373	157,043
Amounts reclassified from accumulated other comprehensive income (loss)	(45,114)	23,046	(1,400)	(23,468)
Net other comprehensive income (loss) for the period	82,556	23,046	27,973	133,575

Ending balance, June 30, 2019	$51,736	($508,876)	$26,736	($430,404)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2020 and 2019:


	Pension and Other Postretirement Liabilities
	2020	2019
	(In Thousands)
Beginning balance, April 1,	$14,029	($7,122)
Amounts reclassified from accumulated other comprehensive income (loss)	(945)	(969)
Net other comprehensive income (loss) for the period	(945)	(969)
Ending balance, June 30,	$13,084	($8,091)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2020 and 2019:


	Pension and Other Postretirement Liabilities
	2020	2019
	(In Thousands)
Beginning balance, January 1,	$4,562	($6,153)

Other comprehensive income (loss) before reclassifications	10,050	—
Amounts reclassified from accumulated other comprehensive income (loss)	(1,528)	(1,938)
Net other comprehensive income (loss) for the period	8,522	(1,938)



Ending balance, June 30,	$13,084	($8,091)

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2020 and 2019 were as follows:



	Amounts reclassified from AOCI			Income Statement Location
	2020	2019
	(In Thousands)
Cash flow hedges net unrealized gain (loss)
Power contracts	$25,086	$5,589	Competitive business operating revenues
Interest rate swaps	(48)	(48)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	25,038	5,541
Income taxes	5,258	(1,164)	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$30,296	$4,377

Pension and other postretirement liabilities
Amortization of prior-service credit	$5,682	$5,325	(a)
Amortization of loss	(27,619)	(18,980)	(a)

Settlement loss	—	(918)	(a)
Total amortization	(21,937)	(14,573)
Income taxes	4,713	3,077	Income taxes
Total amortization (net of tax)	($17,224)	($11,496)

Net unrealized investment gain (loss)
Realized gain (loss)	$6,297	$2,475	Interest and investment income
Income taxes	(2,317)	(911)	Income taxes
Total realized investment gain (loss) (net of tax)	$3,980	$1,564

Total reclassifications for the period (net of tax)	$17,052	($5,555)

(a)These accumulated other comprehensive income (loss) components were included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2020 and 2019 were as follows:


	Amounts reclassified from AOCI			Income Statement Location
	2020	2019
	(In Thousands)
Cash flow hedges net unrealized gain (loss)
Power contracts	$119,509	$57,204	Competitive business operating revenues
Interest rate swaps	(97)	(97)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	119,412	57,107
Income taxes	25,077	(11,993)	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$144,489	$45,114

Pension and other postretirement liabilities
Amortization of prior-service credit	$9,401	$10,652	(a)
Amortization of loss	(54,937)	(37,969)	(a)

Settlement loss	—	(2,055)	(a)
Total amortization	(45,536)	(29,372)
Income taxes	8,762	6,326	Income taxes
Total amortization (net of tax)	($36,774)	($23,046)

Net unrealized investment gain (loss)
Realized gain (loss)	$9,413	$2,216	Interest and investment income
Income taxes	(3,464)	(816)	Income taxes
Total realized investment gain (loss) (net of tax)	$5,949	$1,400

Total reclassifications for the period (net of tax)	$113,664	$23,468

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2020 and 2019 were as follows:


	Amounts reclassified from AOCI			Income Statement Location
	2020	2019
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$1,698	$1,837	(a)
Amortization of loss	(419)	(526)	(a)
Total amortization	1,279	1,311
Income taxes	(334)	(342)	Income taxes
Total amortization (net of tax)	945	969

Total reclassifications for the period (net of tax)	$945	$969

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2020 and 2019 were as follows:


	Amounts reclassified from AOCI			Income Statement Location
	2020	2019
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$2,787	$3,674	(a)
Amortization of loss	(720)	(1,052)	(a)
Total amortization	2,067	2,622
Income taxes	(539)	(684)	Income taxes
Total amortization (net of tax)	1,528	1,938

Total reclassifications for the period (net of tax)	$1,528	$1,938

Entergy Louisiana [Member]

Equity