Retirement And Other Postretirement Benefits

9 Months Ended

Sep. 30, 2021

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.

Entergy Arkansas [Member]

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.

Entergy Louisiana [Member]

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.

Entergy Mississippi [Member]

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.

Entergy New Orleans [Member]

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.

Entergy Texas [Member]

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.

System Energy [Member]

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 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$38,531	$40,366
Interest cost on projected benefit obligation	49,222	59,930
Expected return on assets	(106,684)	(103,534)
Amortization of net loss	69,386	87,516
Settlement charges	44,718	32,429
Net pension costs	$95,173	$116,707

Entergy’s qualified pension cost, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$126,722	$121,124
Interest cost on projected benefit obligation	142,702	181,528
Expected return on assets	(318,437)	(310,664)
Amortization of net loss	266,576	262,034
Settlement charges	156,266	32,429
Net pension costs	$373,829	$286,451

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,966	$9,230	$2,197	$735	$1,680	$2,141
Interest cost on projected benefit obligation	9,396	10,270	2,735	1,156	2,213	2,379
Expected return on assets	(19,585)	(22,466)	(5,629)	(2,678)	(5,341)	(4,853)
Amortization of net loss	16,100	15,201	4,580	1,656	2,815	4,135
Settlement charges	7,238	13,209	3,685	1,107	1,634	4,086
Net pension cost	$20,115	$25,444	$7,568	$1,976	$3,001	$7,888

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

The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy  Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$21,640	$29,033	$6,865	$2,304	$5,237	$6,707
Interest cost on projected benefit obligation	26,488	29,695	7,769	3,264	6,215	6,757
Expected return on assets	(58,896)	(67,521)	(16,815)	(7,941)	(15,851)	(14,436)
Amortization of net loss	53,652	52,294	15,556	5,996	9,941	14,393
Settlement charges	31,624	48,201	11,447	4,691	8,261	8,725
Net pension cost	$74,508	$91,702	$24,822	$8,314	$13,803	$22,146

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

Non-Qualified Net Pension Cost

Entergy recognized $6.9 million and $4.5 million in pension cost for its non-qualified pension plans in the third quarters of 2021 and 2020, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2021 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. Entergy recognized $16 million and $13.6 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2021 and 2020. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2021 were settlement charges of $2.5 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 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$86	$192	$91	$7	$115
2020	$83	$37	$90	$7	$118

Reflected in Entergy Louisiana’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the third quarter of 2021 were settlement charges of $3 thousand 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 nine months ended September 30, 2021 and 2020:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2021	$266	$280	$283	$23	$345
2020	$249	$111	$270	$21	$354

Reflected in Entergy Louisiana’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $155 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the nine months ended September 30, 2021 were settlement charges of $3 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 income, including amounts capitalized, for the third quarters of 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$6,645	$6,231
Interest cost on accumulated postretirement benefit obligation (APBO)	5,320	6,888
Expected return on assets	(10,805)	(10,182)
Amortization of prior service credit	(8,267)	(8,985)
Amortization of net loss	713	1,005
Net other postretirement benefit income	($6,394)	($5,043)

Entergy’s other postretirement benefit cost income, including amounts capitalized, for the nine months ended September 30, 2021 and 2020, included the following components:

	2021	2020
	(In Thousands)
Service cost - benefits earned during the period	$19,935	$18,263
Interest cost on accumulated postretirement benefit obligation (APBO)	15,960	21,708
Expected return on assets	(32,415)	(30,692)
Amortization of prior service credit	(24,801)	(23,892)
Amortization of net loss	2,139	2,478
Net other postretirement benefit income	($19,182)	($12,135)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the third quarters of 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,034	$1,544	$362	$109	$346	$335
Interest cost on APBO	932	1,130	278	130	317	220
Expected return on assets	(4,505)	—	(1,384)	(1,438)	(2,548)	(789)
Amortization of prior service credit	(280)	(1,230)	(444)	(229)	(936)	(109)
Amortization of net (gain) loss	49	(91)	19	(178)	100	15
Net other postretirement benefit cost (income)	($2,770)	$1,353	($1,169)	($1,606)	($2,721)	($328)

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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the nine months ended September 30, 2021 and 2020, included the following components:

2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$3,102	$4,632	$1,086	$327	$1,038	$1,005
Interest cost on APBO	2,796	3,390	834	390	951	660
Expected return on assets	(13,515)	—	(4,152)	(4,314)	(7,644)	(2,367)
Amortization of prior service credit	(840)	(3,690)	(1,332)	(687)	(2,808)	(327)
Amortization of net (gain) loss	147	(273)	57	(534)	300	45
Net other postretirement benefit cost (income)	($8,310)	$4,059	($3,507)	($4,818)	($8,163)	($984)

2020	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,761	$2,947	$723	$219	$609	$615
Interest cost on APBO	2,381	3,220	794	413	1,059	583
Expected return on assets	(8,586)	—	(2,594)	(2,699)	(4,838)	(1,483)
Amortization of prior service credit	(1,057)	(2,784)	(765)	(304)	(1,489)	(501)
Amortization of net (gain) loss	217	(280)	77	(29)	443	53
Net other postretirement benefit cost (income)	($5,284)	$3,103	($1,765)	($2,400)	($4,216)	($733)

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 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$5,288	($40)	$5,248
Amortization of net loss	(12,439)	(496)	(555)	(13,490)
Settlement loss	(2,731)	—	(461)	(3,192)
	($15,170)	$4,792	($1,056)	($11,434)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(609)	91	(1)	(519)
Settlement loss	(528)	—	(6)	($534)
	($1,137)	$1,321	($7)	$177

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

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, 2021 and 2020:

2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$15,864	($120)	$15,744
Amortization of net loss	(72,322)	(1,486)	(1,745)	(75,553)
Settlement loss	(8,774)	—	(461)	(9,235)
	($81,096)	$14,378	($2,326)	($69,044)
Entergy Louisiana
Amortization of prior service credit	$—	$3,690	$—	$3,690
Amortization of net gain (loss)	(2,093)	273	(4)	(1,824)
Settlement loss	(1,928)	—	(6)	(1,934)
	($4,021)	$3,963	($10)	($68)

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

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), are eligible to participate in a new Entergy-sponsored retiree health plan, and are no longer 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 are 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 were reflected in the March 31, 2020 other postretirement obligation.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2021 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plans’ pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining employees and incurred settlement costs. Similar to other pension costs, 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, Entergy Mississippi, and Entergy New Orleans 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. At September 30, 2021, the balance in this reserve was approximately $11.8 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $356 million to its qualified pension plans in 2021.  As of September 30, 2021, Entergy had contributed $347.7 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 2021:

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2021 pension contributions	$66,649	$59,882	$13,715	$5,395	$6,955	$18,663
Pension contributions made through September 2021	$64,666	$59,422	$13,715	$5,395	$6,631	$18,006
Remaining estimated pension contributions to be made in 2021	$1,983	$460	$—	$—	$324	$657

In October 2021, Entergy contributed the remaining $8.3 million to its qualified pension plans to satisfy the expected 2021 pension contributions.