DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds are held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company are recognized in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $250 million and $142 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,581	$201	$2

2019
Debt Securities (a)	$2,456	$96	$6

(a)Debt securities presented herein do not include the $546 million and $507 million of debt securities held in the wholly-owned registered investment company as of September 30, 2020 and December 31, 2019, respectively, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of September 30, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,382 million as of September 30, 2020 and $2,366 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 3.09%, an average duration of approximately 7.13 years, and an average maturity of approximately 10.41 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$206	$2	$404	$5
More than 12 months	2	—	38	1
Total	$208	$2	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$24	$128
1 year - 5 years	718	807
5 years - 10 years	761	666
10 years - 15 years	347	125
15 years - 20 years	135	126
20 years+	596	604
Total	$2,581	$2,456

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $156 million and $407 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $9 million and $11 million, respectively, and gross losses of $0.2 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $832 million and $1,133 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $38 million and $20 million, respectively, and gross losses of $4 million and $3 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of September 30, 2020 were $588 million for Indian Point 1, $742 million for Indian Point 2, $986 million for Indian Point 3, and $538 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 were $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$433.2	$29.5	$0.2

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $403.8 million as of September 30, 2020 and $405.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.60%, an average duration of approximately 6.91 years, and an average maturity of approximately 8.21 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $57.2 million and $27 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$26.8	$0.2	$104.8	$2.5
More than 12 months	—	—	7.7	0.1
Total	$26.8	$0.2	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$13.6	$44.1
1 year - 5 years	102.0	109.1
5 years - 10 years	177.5	156.0
10 years - 15 years	75.8	31.3
15 years - 20 years	26.7	23.8
20 years+	37.6	48.5
Total	$433.2	$412.8

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $14.6 million and $45.5 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.7 million and $2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2020, gross losses of $3.6 thousand were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2019, there were no gross losses.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $80.9 million and $78.7 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $7.5 million and $2.1 million, respectively, and gross losses of $0.2 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$626.4	$50.5	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $576.5 million as of September 30, 2020 and $573 million as of December 31, 2019. As of September 30, 2020, the available-for-sale debt securities had an average coupon rate of approximately 3.73%, an average duration of approximately 7.30 years, and an average maturity of approximately 12.97 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $80.2 million and $40.2 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500

Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$43.7	$0.5	$71.2	$0.8
More than 12 months	0.8	—	7.9	—
Total	$44.5	$0.5	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$7.7	$40.7
1 year - 5 years	122.9	142.0
5 years - 10 years	147.8	132.4
10 years - 15 years	95.1	39.8
15 years - 20 years	61.8	49.2
20 years+	191.1	197.4
Total	$626.4	$601.5

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $30.6 million and $59.7 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.4 million and $2.5 million, respectively, and gross losses of $1.3 thousand and $29 thousand, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $132.1 million and $155.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $6.3 million and $4.2 million, respectively, and gross losses of $0.7 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$420.8	$31.6	$0.4

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $389.7 million as of September 30, 2020 and $371.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.93%, an average duration of approximately 7.50 years, and an average maturity of approximately 11.20 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $54.4 million and $25.7 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


		September 30, 2020		December 31, 2019
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$28.7	$0.4	$56.9	$0.3
More than 12 months		—	—	0.3	—
Total		$28.7	$0.4	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.6)	$8.5
1 year - 5 years	163.1	154.6
5 years - 10 years	107.0	92.3
10 years - 15 years	27.5	13.4
15 years - 20 years	4.9	14.4
20 years+	119.9	103.0
Total	$420.8	$386.2

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $24.1 million and $108.6 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.6 million and $1.7 million, respectively, and gross losses of $9.9 thousand and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $189.7 million and $238.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $8.6 million and $3.6 million, respectively, and gross losses of $0.4 million and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of September 30, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.6 million. Entergy did not record any impairments of available-for-sale debt securities for the three and nine months ended September 30, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and nine months ended September 30, 2019.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds are held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company are recognized in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $250 million and $142 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,581	$201	$2

2019
Debt Securities (a)	$2,456	$96	$6

(a)Debt securities presented herein do not include the $546 million and $507 million of debt securities held in the wholly-owned registered investment company as of September 30, 2020 and December 31, 2019, respectively, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of September 30, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,382 million as of September 30, 2020 and $2,366 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 3.09%, an average duration of approximately 7.13 years, and an average maturity of approximately 10.41 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$206	$2	$404	$5
More than 12 months	2	—	38	1
Total	$208	$2	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$24	$128
1 year - 5 years	718	807
5 years - 10 years	761	666
10 years - 15 years	347	125
15 years - 20 years	135	126
20 years+	596	604
Total	$2,581	$2,456

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $156 million and $407 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $9 million and $11 million, respectively, and gross losses of $0.2 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $832 million and $1,133 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $38 million and $20 million, respectively, and gross losses of $4 million and $3 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of September 30, 2020 were $588 million for Indian Point 1, $742 million for Indian Point 2, $986 million for Indian Point 3, and $538 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 were $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$433.2	$29.5	$0.2

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $403.8 million as of September 30, 2020 and $405.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.60%, an average duration of approximately 6.91 years, and an average maturity of approximately 8.21 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $57.2 million and $27 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$26.8	$0.2	$104.8	$2.5
More than 12 months	—	—	7.7	0.1
Total	$26.8	$0.2	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$13.6	$44.1
1 year - 5 years	102.0	109.1
5 years - 10 years	177.5	156.0
10 years - 15 years	75.8	31.3
15 years - 20 years	26.7	23.8
20 years+	37.6	48.5
Total	$433.2	$412.8

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $14.6 million and $45.5 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.7 million and $2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2020, gross losses of $3.6 thousand were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2019, there were no gross losses.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $80.9 million and $78.7 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $7.5 million and $2.1 million, respectively, and gross losses of $0.2 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$626.4	$50.5	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $576.5 million as of September 30, 2020 and $573 million as of December 31, 2019. As of September 30, 2020, the available-for-sale debt securities had an average coupon rate of approximately 3.73%, an average duration of approximately 7.30 years, and an average maturity of approximately 12.97 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $80.2 million and $40.2 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500

Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$43.7	$0.5	$71.2	$0.8
More than 12 months	0.8	—	7.9	—
Total	$44.5	$0.5	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$7.7	$40.7
1 year - 5 years	122.9	142.0
5 years - 10 years	147.8	132.4
10 years - 15 years	95.1	39.8
15 years - 20 years	61.8	49.2
20 years+	191.1	197.4
Total	$626.4	$601.5

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $30.6 million and $59.7 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.4 million and $2.5 million, respectively, and gross losses of $1.3 thousand and $29 thousand, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $132.1 million and $155.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $6.3 million and $4.2 million, respectively, and gross losses of $0.7 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$420.8	$31.6	$0.4

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $389.7 million as of September 30, 2020 and $371.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.93%, an average duration of approximately 7.50 years, and an average maturity of approximately 11.20 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $54.4 million and $25.7 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


		September 30, 2020		December 31, 2019
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$28.7	$0.4	$56.9	$0.3
More than 12 months		—	—	0.3	—
Total		$28.7	$0.4	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.6)	$8.5
1 year - 5 years	163.1	154.6
5 years - 10 years	107.0	92.3
10 years - 15 years	27.5	13.4
15 years - 20 years	4.9	14.4
20 years+	119.9	103.0
Total	$420.8	$386.2

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $24.1 million and $108.6 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.6 million and $1.7 million, respectively, and gross losses of $9.9 thousand and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $189.7 million and $238.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $8.6 million and $3.6 million, respectively, and gross losses of $0.4 million and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of September 30, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.6 million. Entergy did not record any impairments of available-for-sale debt securities for the three and nine months ended September 30, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and nine months ended September 30, 2019.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds are held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company are recognized in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $250 million and $142 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,581	$201	$2

2019
Debt Securities (a)	$2,456	$96	$6

(a)Debt securities presented herein do not include the $546 million and $507 million of debt securities held in the wholly-owned registered investment company as of September 30, 2020 and December 31, 2019, respectively, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of September 30, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,382 million as of September 30, 2020 and $2,366 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 3.09%, an average duration of approximately 7.13 years, and an average maturity of approximately 10.41 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$206	$2	$404	$5
More than 12 months	2	—	38	1
Total	$208	$2	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$24	$128
1 year - 5 years	718	807
5 years - 10 years	761	666
10 years - 15 years	347	125
15 years - 20 years	135	126
20 years+	596	604
Total	$2,581	$2,456

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $156 million and $407 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $9 million and $11 million, respectively, and gross losses of $0.2 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $832 million and $1,133 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $38 million and $20 million, respectively, and gross losses of $4 million and $3 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of September 30, 2020 were $588 million for Indian Point 1, $742 million for Indian Point 2, $986 million for Indian Point 3, and $538 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 were $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$433.2	$29.5	$0.2

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $403.8 million as of September 30, 2020 and $405.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.60%, an average duration of approximately 6.91 years, and an average maturity of approximately 8.21 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $57.2 million and $27 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$26.8	$0.2	$104.8	$2.5
More than 12 months	—	—	7.7	0.1
Total	$26.8	$0.2	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$13.6	$44.1
1 year - 5 years	102.0	109.1
5 years - 10 years	177.5	156.0
10 years - 15 years	75.8	31.3
15 years - 20 years	26.7	23.8
20 years+	37.6	48.5
Total	$433.2	$412.8

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $14.6 million and $45.5 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.7 million and $2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2020, gross losses of $3.6 thousand were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2019, there were no gross losses.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $80.9 million and $78.7 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $7.5 million and $2.1 million, respectively, and gross losses of $0.2 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$626.4	$50.5	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $576.5 million as of September 30, 2020 and $573 million as of December 31, 2019. As of September 30, 2020, the available-for-sale debt securities had an average coupon rate of approximately 3.73%, an average duration of approximately 7.30 years, and an average maturity of approximately 12.97 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $80.2 million and $40.2 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500

Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$43.7	$0.5	$71.2	$0.8
More than 12 months	0.8	—	7.9	—
Total	$44.5	$0.5	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$7.7	$40.7
1 year - 5 years	122.9	142.0
5 years - 10 years	147.8	132.4
10 years - 15 years	95.1	39.8
15 years - 20 years	61.8	49.2
20 years+	191.1	197.4
Total	$626.4	$601.5

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $30.6 million and $59.7 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.4 million and $2.5 million, respectively, and gross losses of $1.3 thousand and $29 thousand, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $132.1 million and $155.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $6.3 million and $4.2 million, respectively, and gross losses of $0.7 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$420.8	$31.6	$0.4

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $389.7 million as of September 30, 2020 and $371.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.93%, an average duration of approximately 7.50 years, and an average maturity of approximately 11.20 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $54.4 million and $25.7 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


		September 30, 2020		December 31, 2019
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$28.7	$0.4	$56.9	$0.3
More than 12 months		—	—	0.3	—
Total		$28.7	$0.4	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.6)	$8.5
1 year - 5 years	163.1	154.6
5 years - 10 years	107.0	92.3
10 years - 15 years	27.5	13.4
15 years - 20 years	4.9	14.4
20 years+	119.9	103.0
Total	$420.8	$386.2

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $24.1 million and $108.6 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.6 million and $1.7 million, respectively, and gross losses of $9.9 thousand and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $189.7 million and $238.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $8.6 million and $3.6 million, respectively, and gross losses of $0.4 million and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of September 30, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.6 million. Entergy did not record any impairments of available-for-sale debt securities for the three and nine months ended September 30, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and nine months ended September 30, 2019.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Indian Point 1, Indian Point 2, Indian Point 3, and Palisades. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds are held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company are recognized in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $250 million and $142 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities (a)	$2,581	$201	$2

2019
Debt Securities (a)	$2,456	$96	$6

(a)Debt securities presented herein do not include the $546 million and $507 million of debt securities held in the wholly-owned registered investment company as of September 30, 2020 and December 31, 2019, respectively, which are not accounted for as available-for-sale.

The unrealized gains/(losses) above are reported before deferred taxes of $31 million as of September 30, 2020 and $13 million as of December 31, 2019 for debt securities. The amortized cost of available-for-sale debt securities was $2,382 million as of September 30, 2020 and $2,366 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 3.09%, an average duration of approximately 7.13 years, and an average maturity of approximately 10.41 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$206	$2	$404	$5
More than 12 months	2	—	38	1
Total	$208	$2	$442	$6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$24	$128
1 year - 5 years	718	807
5 years - 10 years	761	666
10 years - 15 years	347	125
15 years - 20 years	135	126
20 years+	596	604
Total	$2,581	$2,456

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $156 million and $407 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $9 million and $11 million, respectively, and gross losses of $0.2 million and $0.4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $832 million and $1,133 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $38 million and $20 million, respectively, and gross losses of $4 million and $3 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of September 30, 2020 were $588 million for Indian Point 1, $742 million for Indian Point 2, $986 million for Indian Point 3, and $538 million for Palisades. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2019 were $556 million for Indian Point 1, $701 million for Indian Point 2, $930 million for Indian Point 3, and $498 million for Palisades. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$433.2	$29.5	$0.2

2019
Debt Securities	$412.8	$9.9	$2.6

The amortized cost of available-for-sale debt securities was $403.8 million as of September 30, 2020 and $405.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.60%, an average duration of approximately 6.91 years, and an average maturity of approximately 8.21 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $57.2 million and $27 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$26.8	$0.2	$104.8	$2.5
More than 12 months	—	—	7.7	0.1
Total	$26.8	$0.2	$112.5	$2.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$13.6	$44.1
1 year - 5 years	102.0	109.1
5 years - 10 years	177.5	156.0
10 years - 15 years	75.8	31.3
15 years - 20 years	26.7	23.8
20 years+	37.6	48.5
Total	$433.2	$412.8

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $14.6 million and $45.5 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.7 million and $2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2020, gross losses of $3.6 thousand were reclassified out of other regulatory liabilities/assets into earnings. During the three months ended September 30, 2019, there were no gross losses.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $80.9 million and $78.7 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $7.5 million and $2.1 million, respectively, and gross losses of $0.2 million and $0.1 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$626.4	$50.5	$0.5

2019
Debt Securities	$601.5	$29.3	$0.8

The amortized cost of available-for-sale debt securities was $576.5 million as of September 30, 2020 and $573 million as of December 31, 2019. As of September 30, 2020, the available-for-sale debt securities had an average coupon rate of approximately 3.73%, an average duration of approximately 7.30 years, and an average maturity of approximately 12.97 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $80.2 million and $40.2 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500

Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$43.7	$0.5	$71.2	$0.8
More than 12 months	0.8	—	7.9	—
Total	$44.5	$0.5	$79.1	$0.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	$7.7	$40.7
1 year - 5 years	122.9	142.0
5 years - 10 years	147.8	132.4
10 years - 15 years	95.1	39.8
15 years - 20 years	61.8	49.2
20 years+	191.1	197.4
Total	$626.4	$601.5

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $30.6 million and $59.7 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.4 million and $2.5 million, respectively, and gross losses of $1.3 thousand and $29 thousand, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $132.1 million and $155.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $6.3 million and $4.2 million, respectively, and gross losses of $0.7 million and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of September 30, 2020 and December 31, 2019 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2020
Debt Securities	$420.8	$31.6	$0.4

2019
Debt Securities	$386.2	$15.1	$0.3

The amortized cost of available-for-sale debt securities was $389.7 million as of September 30, 2020 and $371.4 million as of December 31, 2019. As of September 30, 2020, available-for-sale debt securities had an average coupon rate of approximately 2.93%, an average duration of approximately 7.50 years, and an average maturity of approximately 11.20 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2020 on equity securities still held as of September 30, 2020 were $54.4 million and $25.7 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2020 and December 31, 2019:


		September 30, 2020		December 31, 2019
		Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months		$28.7	$0.4	$56.9	$0.3
More than 12 months		—	—	0.3	—
Total		$28.7	$0.4	$57.2	$0.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2020 and December 31, 2019 were as follows:


	2020	2019
	(In Millions)
Less than 1 year	($1.6)	$8.5
1 year - 5 years	163.1	154.6
5 years - 10 years	107.0	92.3
10 years - 15 years	27.5	13.4
15 years - 20 years	4.9	14.4
20 years+	119.9	103.0
Total	$420.8	$386.2

During the three months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $24.1 million and $108.6 million, respectively. During the three months ended September 30, 2020 and 2019, gross gains of $1.6 million and $1.7 million, respectively, and gross losses of $9.9 thousand and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

During the nine months ended September 30, 2020 and 2019, proceeds from the dispositions of available-for-sale securities amounted to $189.7 million and $238.4 million, respectively. During the nine months ended September 30, 2020 and 2019, gross gains of $8.6 million and $3.6 million, respectively, and gross losses of $0.4 million and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2020. In accordance with the new standard, Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of September 30, 2020, Entergy’s allowance for expected credit losses related to available-for-sale securities was $0.6 million. Entergy did not record any impairments of available-for-sale debt securities for the three and nine months ended September 30, 2020.

Other-than-temporary impairments and unrealized gains and losses

Prior to the implementation of ASU 2016-13 on January 1, 2020, Entergy evaluated the available-for-sale debt securities in the Entergy Wholesale Commodities nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment had occurred. The assessment of whether an investment in a debt security suffered an other-than-temporary impairment was based on whether Entergy had the intent to sell or more likely than not would have been required to sell the debt security before recovery of its amortized costs. Further, if Entergy did not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment was considered to have occurred and it was measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and nine months ended September 30, 2019.