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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573

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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573

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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573

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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573

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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573

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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573

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 costs, including amounts capitalized, for the second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$36,977	$42,951
Interest cost on projected benefit obligation	52,676	47,382
Expected return on assets	(103,085)	(106,039)

Amortization of net loss	56,413	92,799
Settlement charges	22,653	111,549
Net pension costs	$65,634	$188,642

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$74,637	$88,191
Interest cost on projected benefit obligation	103,795	93,480
Expected return on assets	(206,692)	(211,753)

Amortization of net loss	116,992	197,190
Settlement charges	22,653	111,549

Net pension costs	$111,385	$278,657

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)

Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,255	$9,759	$2,304	$774	$1,757	$2,253
Interest cost on projected benefit obligation	8,752	9,864	2,571	1,079	2,052	2,236
Expected return on assets	(19,640)	(22,516)	(5,600)	(2,641)	(5,272)	(4,804)

Amortization of net loss	18,250	17,890	5,309	2,069	3,415	4,933
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$39,003	$49,989	$12,346	$4,866	$8,578	$9,256

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)

Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$14,674	$19,803	$4,668	$1,569	$3,557	$4,566
Interest cost on projected benefit obligation	17,092	19,425	5,034	2,108	4,002	4,378
Expected return on assets	(39,311)	(45,055)	(11,186)	(5,263)	(10,510)	(9,583)


Amortization of net loss	37,552	37,093	10,976	4,340	7,126	10,258
Settlement charges	24,386	34,992	7,762	3,585	6,626	4,638
Net pension cost	$54,393	$66,258	$17,254	$6,339	$10,801	$14,257

Non-Qualified Net Pension Cost

Entergy recognized $7.2 million and $4.6 million in pension cost for its non-qualified pension plans in the second quarters of 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarter of 2022 were settlement charges of $2.5 million related to the payment of lump sum benefits out of the plan. In the second quarter of 2021, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $17.4 million and $9.2 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2022 and 2021, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2022 were settlement charges of $7.8 million related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2021, there were no settlement charges 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 second quarters of 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$71	$26	$79	$27	$88
2021	$90	$44	$96	$8	$115

The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2022 and 2021:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Thousands)
2022	$143	$53	$161	$56	$303
2021	$180	$88	$192	$16	$230

Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $2 thousand related to the payment of lump sum benefits out of the plan. Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 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 second quarters of 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$6,184	$6,645
Interest cost on accumulated postretirement benefit obligation (APBO)	6,827	5,320
Expected return on assets	(10,855)	(10,805)

Amortization of prior service credit	(6,388)	(8,267)
Amortization of net loss	1,083	713
Net other postretirement benefit income	($3,149)	($6,394)

Entergy’s other postretirement benefit income, including amounts capitalized, for the six months ended June 30, 2022 and 2021, included the following components:


	2022	2021
	(In Thousands)
Service cost - benefits earned during the period	$12,368	$13,290
Interest cost on accumulated postretirement benefit obligation (APBO)	13,654	10,640
Expected return on assets	(21,710)	(21,610)

Amortization of prior service credit	(12,776)	(16,534)
Amortization of net loss	2,166	1,426
Net other postretirement benefit income	($6,298)	($12,788)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the second quarters of 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)

Amortization of prior service cost/(credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefit cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)


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)

The Registrant Subsidiaries’ other postretirement benefit cost (income), including amounts capitalized, for their employees for the six months ended June 30, 2022 and 2021, included the following components:


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost/(credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefit cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,068	$3,088	$724	$218	$692	$670
Interest cost on APBO	1,864	2,260	556	260	634	440
Expected return on assets	(9,010)	—	(2,768)	(2,876)	(5,096)	(1,578)


Amortization of prior service credit	(560)	(2,460)	(888)	(458)	(1,872)	(218)
Amortization of net (gain) loss	98	(182)	38	(356)	200	30
Net other postretirement benefit cost (income)	($5,540)	$2,706	($2,338)	($3,212)	($5,442)	($656)

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 second quarters of 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)

Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	—	($178)
	($671)	$1,344	($1)	$672


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	(26,443)	(496)	(595)	(27,534)

Settlement loss	(6,043)	—	—	(6,043)
	($32,486)	$4,792	($635)	($28,329)
Entergy Louisiana
Amortization of prior service credit	$—	$1,230	$—	$1,230
Amortization of net gain (loss)	(716)	91	(1)	(626)
Settlement loss	(1,400)	—	—	(1,400)
	($2,116)	$1,321	($1)	($796)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2022 and 2021:


2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)

Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
Settlement loss	(178)	—	—	(178)
	($1,175)	$2,688	($2)	$1,511


2021	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$10,576	($80)	$10,496
Amortization of net loss	(59,883)	(990)	(1,190)	(62,063)

Settlement loss	(6,043)	—	—	(6,043)
	($65,926)	$9,586	($1,270)	($57,610)
Entergy Louisiana
Amortization of prior service credit	$—	$2,460	$—	$2,460
Amortization of net gain (loss)	(1,484)	182	(3)	(1,305)
Settlement loss	(1,400)	—	—	(1,400)
	($2,884)	$2,642	($3)	($245)

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.

Qualified Pension Settlement Cost

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees exceeded the sum of the Plan’s 2022 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 plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy each participate in the Entergy Corporation Retirement Plan for 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, and Entergy Mississippi each 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 base rate case that was filed with the PUCT in July 2022 and a reasonable amortization period will be determined by the PUCT. At June 30, 2022, the balance in this reserve was approximately $15.7 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2022. As of June 30, 2022, Entergy had contributed $101 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 2022:


	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Expected 2022 pension contributions	$40,840	$22,917	$12,852	$922	$1,924	$12,760
Pension contributions made through June 2022	$21,532	$13,410	$5,442	$922	$1,486	$6,187
Remaining estimated pension contributions to be made in 2022	$19,308	$9,507	$7,410	$—	$438	$6,573