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Equity

9 Months Ended

Sep. 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 September 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	$521.1	200.2	$2.60	$365.2	198.9	$1.84
Average dilutive effect of:
Stock options		0.4	—		0.7	(0.01)
Other equity plans		0.5	(0.01)		0.9	(0.01)

Diluted earnings per share	$521.1	201.1	$2.59	$365.2	200.5	$1.82

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 September 30, 2020.


	For the Nine Months Ended September 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	$1,000.4	200.1	$5.00	$856.2	193.9	$4.42
Average dilutive effect of:
Stock options		0.4	(0.01)		0.5	(0.01)
Other equity plans		0.5	(0.01)		0.7	(0.02)
Equity forwards		—	—		0.6	(0.01)
Diluted earnings per share	$1,000.4	201.0	$4.98	$856.2	195.7	$4.38

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 nine months ended September 30, 2020 and approximately 0.2 million for the nine months ended September 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 September 30, 2020 and $0.91 for the three months ended September 30, 2019. Dividends declared per common share were $2.79 for the nine months ended September 30, 2020 and $2.73 for the nine months ended September 30, 2019.

Treasury Stock

During the nine months ended September 30, 2020, Entergy Corporation issued 1,082,834 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 nine months ended September 30, 2020.

Retained Earnings

On October 30, 2020, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.95 per share, payable on December 1, 2020, to holders of record as of November 12, 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 September 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, July 1, 2020	$37,090	($485,949)	$60,255	($388,604)

Other comprehensive income (loss) before reclassifications	(4,964)	—	181	(4,783)
Amounts reclassified from accumulated other comprehensive income (loss)	(11,594)	17,437	(2,876)	2,967
Net other comprehensive income (loss) for the period	(16,558)	17,437	(2,695)	(1,816)

Ending balance, September 30, 2020	$20,532	($468,512)	$57,560	($390,420)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 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, July 1, 2019	$51,736	($508,876)	$26,736	($430,404)

Other comprehensive income (loss) before reclassifications	(5,190)	—	8,350	3,160
Amounts reclassified from accumulated other comprehensive income (loss)	(14,913)	25,464	(3,079)	7,472
Net other comprehensive income (loss) for the period	(20,103)	25,464	5,271	10,632

Ending balance, September 30, 2019	$31,633	($483,412)	$32,007	($419,772)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 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	42,256	34,349	40,439	117,044
Amounts reclassified from accumulated other comprehensive income (loss)	(105,930)	54,211	(8,825)	(60,544)
Net other comprehensive income (loss) for the period	(63,674)	88,560	31,614	56,500

Ending balance, September 30, 2020	$20,532	($468,512)	$57,560	($390,420)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 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	122,481	—	37,724	160,205
Amounts reclassified from accumulated other comprehensive income (loss)	(60,028)	48,510	(4,480)	(15,998)
Net other comprehensive income (loss) for the period	62,453	48,510	33,244	144,207

Ending balance, September 30, 2019	$31,633	($483,412)	$32,007	($419,772)

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


	Pension and Other Postretirement Liabilities
	2020	2019
	(In Thousands)
Beginning balance, July 1,	$13,084	($8,091)

Amounts reclassified from accumulated other comprehensive income (loss)	(800)	(969)
Net other comprehensive income (loss) for the period	(800)	(969)

Ending balance, September 30,	$12,284	($9,060)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the nine months ended September 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)	(2,328)	(2,907)
Net other comprehensive income (loss) for the period	7,722	(2,907)



Ending balance, September 30,	$12,284	($9,060)

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended September 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	$14,724	$18,925	Competitive business operating revenues
Interest rate swaps	(48)	(48)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	14,676	18,877
Income taxes	(3,082)	(3,964)	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$11,594	$14,913

Pension and other postretirement liabilities
Amortization of prior-service credit	$5,682	$5,325	(a)
Amortization of loss	(27,620)	(20,919)	(a)

Settlement loss	(196)	(16,630)	(a)
Total amortization	(22,134)	(32,224)
Income taxes	4,697	6,760	Income taxes
Total amortization (net of tax)	($17,437)	($25,464)

Net unrealized investment gain (loss)
Realized gain (loss)	$4,550	$4,872	Interest and investment income
Income taxes	(1,674)	(1,793)	Income taxes
Total realized investment gain (loss) (net of tax)	$2,876	$3,079

Total reclassifications for the period (net of tax)	($2,967)	($7,472)

(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 nine months ended September 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	$134,233	$76,129	Competitive business operating revenues
Interest rate swaps	(145)	(145)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	134,088	75,984
Income taxes	(28,158)	(15,956)	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	$105,930	$60,028

Pension and other postretirement liabilities
Amortization of prior-service credit	$15,083	$15,977	(a)
Amortization of loss	(82,561)	(58,888)	(a)

Settlement loss	(196)	(18,685)	(a)
Total amortization	(67,674)	(61,596)
Income taxes	13,463	13,086	Income taxes
Total amortization (net of tax)	($54,211)	($48,510)

Net unrealized investment gain (loss)
Realized gain (loss)	$13,963	$7,088	Interest and investment income
Income taxes	(5,138)	(2,608)	Income taxes
Total realized investment gain (loss) (net of tax)	$8,825	$4,480

Total reclassifications for the period (net of tax)	$60,544	$15,998

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended September 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	$1,695	$1,837	(a)
Amortization of loss	(417)	(526)	(a)
Settlement loss	(196)	—	(a)
Total amortization	1,082	1,311
Income taxes	(282)	(342)	Income taxes
Total amortization (net of tax)	800	969

Total reclassifications for the period (net of tax)	$800	$969

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the nine months ended September 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	$4,479	$5,511	(a)
Amortization of loss	(1,137)	(1,578)	(a)
Settlement loss	(196)	—	(a)
Total amortization	3,146	3,933
Income taxes	(818)	(1,026)	Income taxes
Total amortization (net of tax)	2,328	2,907

Total reclassifications for the period (net of tax)	$2,328	$2,907

Entergy Louisiana [Member]

Equity