Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771

Retirement And Other Postretirement Benefits

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension cost, including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$40,366	$33,553
Interest cost on projected benefit obligation	59,930	73,261
Expected return on assets	(103,534)	(103,751)

Amortization of net loss	87,516	60,395
Settlement charges	32,429	16,291
Net pension costs	$116,707	$79,749

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$121,124	$100,766
Interest cost on projected benefit obligation	181,528	221,114
Expected return on assets	(310,664)	(311,494)

Amortization of net loss	262,034	177,233
Settlement charges	32,429	17,591

Net pension costs	$286,451	$205,210

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,580	$8,788	$2,015	$663	$1,529	$1,970
Interest cost on projected benefit obligation	11,054	12,614	3,234	1,457	2,686	2,753
Expected return on assets	(19,531)	(22,415)	(5,783)	(2,627)	(5,483)	(4,687)

Amortization of net loss	17,092	16,663	4,747	2,005	3,295	4,277
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$34,903	$22,177	$6,512	$1,498	$5,922	$4,313


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$5,260	$7,284	$1,629	$568	$1,350	$1,549
Interest cost on projected benefit obligation	14,175	15,882	4,068	1,873	3,613	3,364
Expected return on assets	(20,177)	(22,651)	(5,969)	(2,696)	(5,862)	(4,678)

Amortization of net loss	11,840	11,643	3,104	1,529	2,334	2,850
Net pension cost	$11,098	$12,158	$2,832	$1,274	$1,435	$3,085

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$19,712	$26,376	$6,061	$1,989	$4,621	$5,900
Interest cost on projected benefit obligation	33,920	38,296	9,914	4,369	8,250	8,381
Expected return on assets	(58,775)	(67,219)	(17,297)	(7,881)	(16,455)	(14,013)

Amortization of net loss	50,886	49,917	14,243	6,015	9,825	12,835
Settlement charges	19,708	6,527	2,299	—	3,895	—
Net pension cost	$65,451	$53,897	$15,220	$4,492	$10,136	$13,103


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$15,782	$21,852	$4,887	$1,706	$4,050	$4,649
Interest cost on projected benefit obligation	42,525	47,646	12,204	5,621	10,837	10,091
Expected return on assets	(60,529)	(67,955)	(17,905)	(8,089)	(17,586)	(14,032)


Amortization of net loss	35,522	34,929	9,313	4,588	7,002	8,550
Net pension cost	$33,300	$36,472	$8,499	$3,826	$4,303	$9,258

Non-Qualified Net Pension Cost

Entergy recognized $4.5 million and $4.6 million in pension cost for its non-qualified pension plans in the third quarters of 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2019 were settlement charges of $955 thousand related to the payment of lump sum benefits out of the plan. Entergy recognized $13.6 million and $16.3 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2020 and 2019, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2019 were settlement charges of $4.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the third quarters of 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$83	$37	$90	$7	$118
2019	$67	$38	$69	$5	$119

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the nine months ended September 30, 2020 and 2019:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2020	$249	$111	$270	$21	$354
2019	$211	$122	$257	$16	$365

Reflected in Entergy Mississippi’s non-qualified pension costs for the nine months ended September 30, 2019 were settlement charges of $40 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefit Cost (Income)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the third quarters of 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$6,231	$4,675
Interest cost on accumulated postretirement benefit obligation (APBO)	6,888	11,975
Expected return on assets	(10,182)	(9,562)

Amortization of prior service credit	(8,985)	(8,844)
Amortization of net loss	1,005	358
Net other postretirement benefit income	($5,043)	($1,398)

Entergy’s other postretirement benefit cost (income), including amounts capitalized, for the nine months ended September 30, 2020 and 2019, included the following components:


	2020	2019
	(In Thousands)
Service cost - benefits earned during the period	$18,263	$14,025
Interest cost on accumulated postretirement benefit obligation (APBO)	21,708	35,925
Expected return on assets	(30,692)	(28,686)

Amortization of prior service credit	(23,892)	(26,532)
Amortization of net loss	2,478	1,074
Net other postretirement benefit cost income	($12,135)	($4,194)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$933	$1,524	$372	$114	$306	$321
Interest cost on APBO	1,164	1,497	372	186	477	276
Expected return on assets	(4,260)	—	(1,287)	(1,344)	(2,403)	(735)

Amortization of prior service credit	(396)	(1,695)	(444)	(228)	(939)	(282)
Amortization of net (gain) loss	162	(81)	48	9	231	33
Net other postretirement benefit cost (income)	($2,397)	$1,245	($939)	($1,263)	($2,328)	($387)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$591	$1,160	$262	$92	$236	$243
Interest cost on APBO	1,807	2,666	670	395	854	476
Expected return on assets	(3,991)	—	(1,199)	(1,237)	(2,276)	(697)


Amortization of prior service credit	(1,238)	(1,837)	(439)	(171)	(561)	(363)
Amortization of net (gain) loss	144	(174)	181	58	121	89
Net other postretirement benefit cost (income)	($2,687)	$1,815	($525)	($863)	($1,626)	($252)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2020 and 2019, included the following components:


2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,694	$4,471	$1,095	$333	$915	$936
Interest cost on APBO	3,545	4,717	1,166	599	1,536	859
Expected return on assets	(12,846)	—	(3,881)	(4,043)	(7,241)	(2,218)
Amortization of prior service credit	(1,453)	(4,479)	(1,209)	(532)	(2,428)	(783)
Amortization of net (gain) loss	379	(361)	125	(20)	674	86
Net other postretirement benefit cost (income)	($7,681)	$4,348	($2,704)	($3,663)	($6,544)	($1,120)


2019	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,773	$3,480	$786	$276	$708	$729
Interest cost on APBO	5,421	7,998	2,010	1,185	2,562	1,428
Expected return on assets	(11,973)	—	(3,597)	(3,711)	(6,828)	(2,091)


Amortization of prior service credit	(3,714)	(5,511)	(1,317)	(513)	(1,683)	(1,089)
Amortization of net (gain) loss	432	(522)	543	174	363	267
Net other postretirement benefit cost (income)	($8,061)	$5,445	($1,575)	($2,589)	($4,878)	($756)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,739	($57)	$5,682
Amortization of net loss	(26,462)	(327)	(831)	(27,620)

Settlement loss	(196)	—	—	(196)
	($26,658)	$5,412	($888)	($22,134)
Entergy Louisiana
Amortization of prior service credit	$—	$1,695	$—	$1,695
Amortization of net gain (loss)	(497)	81	(1)	(417)
Settlement loss	(196)	—	—	($196)
	($693)	$1,776	($1)	$1,082


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,375	($50)	$5,325
Amortization of net gain (loss)	(20,686)	308	(541)	(20,919)

Settlement loss	(16,257)	—	(373)	(16,630)
	($36,943)	$5,683	($964)	($32,224)
Entergy Louisiana
Amortization of prior service credit	$—	$1,837	$—	$1,837
Amortization of net gain (loss)	(699)	174	(1)	(526)
	($699)	$2,011	($1)	$1,311

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2020 and 2019:


2020	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,255	($172)	$15,083
Amortization of net loss	(79,387)	(680)	(2,494)	(82,561)

Settlement loss	(196)	—	—	(196)
	($79,583)	$14,575	($2,666)	($67,674)
Entergy Louisiana
Amortization of prior service credit	$—	$4,479	$—	$4,479
Amortization of net gain (loss)	(1,495)	361	(3)	(1,137)
Settlement loss	(196)	—	—	(196)
	($1,691)	$4,840	($3)	$3,146


2019	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$16,125	($148)	$15,977
Amortization of net gain (loss)	(58,156)	923	(1,655)	(58,888)

Settlement loss	(17,557)	—	(1,128)	(18,685)
	($75,713)	$17,048	($2,931)	($61,596)
Entergy Louisiana
Amortization of prior service credit	$—	$5,511	$—	$5,511
Amortization of net gain (loss)	(2,096)	522	(4)	(1,578)
	($2,096)	$6,033	($4)	$3,933

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Other Postretirement Benefits

In March 2020, Entergy announced changes to its other postretirement benefits. Effective January 1, 2021, certain retired, former non-bargaining employees age 65 and older who are eligible for Entergy-sponsored retiree welfare benefits, and their eligible spouses who are age 65 and older (collectively, Medicare-eligible participants), will be eligible to participate in a new Entergy-sponsored retiree health plan, and will no longer be eligible for retiree coverage under the Entergy Corporation Companies’ Benefits Plus Medical, Dental and Vision Plans. Under the new Entergy retiree health plan, Medicare-eligible participants will be eligible to participate in a health

reimbursement arrangement which they may use towards the purchase of various types of qualified insurance offered through a Medicare exchange provider and for other qualified medical expenses. In accordance with accounting standards, the effects of this change have been reflected in the March 31, 2020 other postretirement obligation. The changes affecting active bargaining unit employees will be negotiated with the unions prior to implementation, where necessary, and to the extent required by law.

Qualified Pension Settlement Cost

In the third quarter of 2020, year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2020 service and interest cost, resulting in a settlement cost of $32.4 million. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas participate in the Entergy Corporation Retirement Plan for Bargaining Employees and incurred settlement costs of $19.7 million, $6.5 million, $2.3 million, and $3.9 million, respectively. The settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amount will be evaluated in the next scheduled PUCT rate case and a reasonable amortization period will be determined by the PUCT at that time.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $416.3 million to its qualified pension plans in 2020. As of September 30, 2020, Entergy had contributed $189.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2020:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2020 pension contributions	$73,905	$74,572	$15,664	$6,301	$6,901	$20,406
Pension contributions made through September 2020	$43,032	$30,988	$8,691	$2,353	$2,517	$10,635
Remaining estimated pension contributions to be made in 2020	$30,873	$43,584	$6,973	$3,948	$4,384	$9,771