DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses

(where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($605) million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$1,655	$4	$201

2021
Debt Securities	$2,177	$65	$12

The unrealized gains/(losses) above are reported before deferred taxes of $2 million as of December 31, 2021 for debt securities. As of December 31, 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,852 million as of December 31, 2022 and $2,125 million as of December 31, 2021. As of December 31, 2022, available-for-sale debt securities had an average coupon rate of approximately 3.12%, an average duration of approximately 6.51 years, and an average maturity of approximately 10.81 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$840	$63	$770	$8
More than 12 months	666	138	99	4
Total	$1,506	$201	$869	$12

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$62	$—
1 year - 5 years	520	473
5 years - 10 years	461	655
10 years - 15 years	117	389
15 years - 20 years	161	130
20 years+	334	530
Total	$1,655	$2,177

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $889 million, $1,465 million, and $1,024 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $2 million, $29 million, and $47 million, respectively, and gross losses of $46 million, $17 million, and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$470.7	$0.2	$69.3

2021
Debt Securities	$526.3	$11.4	$4.7

The amortized cost of available-for-sale debt securities was $539.8 million as of December 31, 2022 and $519.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.40%, an average duration of approximately 6.20 years, and an average maturity of approximately 7.70 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($181.4) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$197.6	$18.8	$183.8	$2.9
More than 12 months	260.1	50.5	39.5	1.8
Total	$457.7	$69.3	$223.3	$4.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$21.2	$—
1 year - 5 years	159.7	91.7
5 years - 10 years	191.7	217.4
10 years - 15 years	38.0	146.0
15 years - 20 years	42.6	35.7
20 years+	17.5	35.5
Total	$470.7	$526.3

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $42.1 million, $57.6 million, and $94.5 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.1 million, $2.5 million, and $8.8 million, respectively, and gross losses of $2.6 million, $0.6 million, and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$725.1	$3.5	$67.5

2021
Debt Securities	$794.2	$31.3	$3.3

The amortized cost of available-for-sale debt securities was $789.1 million as of December 31, 2022 and $766.3 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.79%, an average duration of approximately 6.78 years, and an average maturity of approximately 13.04 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($253.5) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$409.9	$24.6	$206.9	$1.4
More than 12 months	207.5	42.9	42.9	1.9
Total	$617.4	$67.5	$249.8	$3.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$33.6	$—
1 year - 5 years	159.1	157.8
5 years - 10 years	161.7	173.0
10 years - 15 years	67.1	123.0
15 years - 20 years	83.3	80.2
20 years+	220.3	260.2
Total	$725.1	$794.2

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $362.2 million, $303.4 million, and $159.7 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $1.3 million, $6.8 million, and $8.1 million, respectively, and gross losses of $23 million, $4.1 million, and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$459.7	$0.7	$63.7

2021
Debt Securities	$524.5	$11.8	$2.9

The amortized cost of available-for-sale debt securities was $522.7 million as of December 31, 2022 and $515.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.79%, an average duration of approximately 6.39 years, and an average maturity of approximately 10.43 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($170) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$231.9	$19.2	$276.6	$2.3
More than 12 months	198.0	44.5	11.3	0.6
Total	$429.9	$63.7	$287.9	$2.9

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$6.8	$—
1 year - 5 years	201.7	156.8
5 years - 10 years	107.1	161.8
10 years - 15 years	11.7	58.6
15 years - 20 years	35.0	1.9
20 years+	97.4	145.4
Total	$459.7	$524.5

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $209.4 million, $513.8 million, and $252.2 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.2 million, $9.3 million, and $11.5 million, respectively, and gross losses of $10.7 million, $4 million, and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of December 31, 2022, Entergy did not have an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses

related to available-for-sale securities was $0.4 million. Entergy recorded $1.5 million in impairments of available-for-sale securities for the year ended December 31, 2022. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2021.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses

(where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($605) million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$1,655	$4	$201

2021
Debt Securities	$2,177	$65	$12

The unrealized gains/(losses) above are reported before deferred taxes of $2 million as of December 31, 2021 for debt securities. As of December 31, 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,852 million as of December 31, 2022 and $2,125 million as of December 31, 2021. As of December 31, 2022, available-for-sale debt securities had an average coupon rate of approximately 3.12%, an average duration of approximately 6.51 years, and an average maturity of approximately 10.81 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$840	$63	$770	$8
More than 12 months	666	138	99	4
Total	$1,506	$201	$869	$12

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$62	$—
1 year - 5 years	520	473
5 years - 10 years	461	655
10 years - 15 years	117	389
15 years - 20 years	161	130
20 years+	334	530
Total	$1,655	$2,177

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $889 million, $1,465 million, and $1,024 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $2 million, $29 million, and $47 million, respectively, and gross losses of $46 million, $17 million, and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$470.7	$0.2	$69.3

2021
Debt Securities	$526.3	$11.4	$4.7

The amortized cost of available-for-sale debt securities was $539.8 million as of December 31, 2022 and $519.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.40%, an average duration of approximately 6.20 years, and an average maturity of approximately 7.70 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($181.4) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$197.6	$18.8	$183.8	$2.9
More than 12 months	260.1	50.5	39.5	1.8
Total	$457.7	$69.3	$223.3	$4.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$21.2	$—
1 year - 5 years	159.7	91.7
5 years - 10 years	191.7	217.4
10 years - 15 years	38.0	146.0
15 years - 20 years	42.6	35.7
20 years+	17.5	35.5
Total	$470.7	$526.3

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $42.1 million, $57.6 million, and $94.5 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.1 million, $2.5 million, and $8.8 million, respectively, and gross losses of $2.6 million, $0.6 million, and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$725.1	$3.5	$67.5

2021
Debt Securities	$794.2	$31.3	$3.3

The amortized cost of available-for-sale debt securities was $789.1 million as of December 31, 2022 and $766.3 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.79%, an average duration of approximately 6.78 years, and an average maturity of approximately 13.04 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($253.5) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$409.9	$24.6	$206.9	$1.4
More than 12 months	207.5	42.9	42.9	1.9
Total	$617.4	$67.5	$249.8	$3.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$33.6	$—
1 year - 5 years	159.1	157.8
5 years - 10 years	161.7	173.0
10 years - 15 years	67.1	123.0
15 years - 20 years	83.3	80.2
20 years+	220.3	260.2
Total	$725.1	$794.2

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $362.2 million, $303.4 million, and $159.7 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $1.3 million, $6.8 million, and $8.1 million, respectively, and gross losses of $23 million, $4.1 million, and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$459.7	$0.7	$63.7

2021
Debt Securities	$524.5	$11.8	$2.9

The amortized cost of available-for-sale debt securities was $522.7 million as of December 31, 2022 and $515.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.79%, an average duration of approximately 6.39 years, and an average maturity of approximately 10.43 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($170) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$231.9	$19.2	$276.6	$2.3
More than 12 months	198.0	44.5	11.3	0.6
Total	$429.9	$63.7	$287.9	$2.9

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$6.8	$—
1 year - 5 years	201.7	156.8
5 years - 10 years	107.1	161.8
10 years - 15 years	11.7	58.6
15 years - 20 years	35.0	1.9
20 years+	97.4	145.4
Total	$459.7	$524.5

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $209.4 million, $513.8 million, and $252.2 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.2 million, $9.3 million, and $11.5 million, respectively, and gross losses of $10.7 million, $4 million, and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of December 31, 2022, Entergy did not have an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses

related to available-for-sale securities was $0.4 million. Entergy recorded $1.5 million in impairments of available-for-sale securities for the year ended December 31, 2022. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2021.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses

(where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($605) million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$1,655	$4	$201

2021
Debt Securities	$2,177	$65	$12

The unrealized gains/(losses) above are reported before deferred taxes of $2 million as of December 31, 2021 for debt securities. As of December 31, 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,852 million as of December 31, 2022 and $2,125 million as of December 31, 2021. As of December 31, 2022, available-for-sale debt securities had an average coupon rate of approximately 3.12%, an average duration of approximately 6.51 years, and an average maturity of approximately 10.81 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$840	$63	$770	$8
More than 12 months	666	138	99	4
Total	$1,506	$201	$869	$12

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$62	$—
1 year - 5 years	520	473
5 years - 10 years	461	655
10 years - 15 years	117	389
15 years - 20 years	161	130
20 years+	334	530
Total	$1,655	$2,177

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $889 million, $1,465 million, and $1,024 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $2 million, $29 million, and $47 million, respectively, and gross losses of $46 million, $17 million, and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$470.7	$0.2	$69.3

2021
Debt Securities	$526.3	$11.4	$4.7

The amortized cost of available-for-sale debt securities was $539.8 million as of December 31, 2022 and $519.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.40%, an average duration of approximately 6.20 years, and an average maturity of approximately 7.70 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($181.4) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$197.6	$18.8	$183.8	$2.9
More than 12 months	260.1	50.5	39.5	1.8
Total	$457.7	$69.3	$223.3	$4.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$21.2	$—
1 year - 5 years	159.7	91.7
5 years - 10 years	191.7	217.4
10 years - 15 years	38.0	146.0
15 years - 20 years	42.6	35.7
20 years+	17.5	35.5
Total	$470.7	$526.3

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $42.1 million, $57.6 million, and $94.5 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.1 million, $2.5 million, and $8.8 million, respectively, and gross losses of $2.6 million, $0.6 million, and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$725.1	$3.5	$67.5

2021
Debt Securities	$794.2	$31.3	$3.3

The amortized cost of available-for-sale debt securities was $789.1 million as of December 31, 2022 and $766.3 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.79%, an average duration of approximately 6.78 years, and an average maturity of approximately 13.04 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($253.5) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$409.9	$24.6	$206.9	$1.4
More than 12 months	207.5	42.9	42.9	1.9
Total	$617.4	$67.5	$249.8	$3.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$33.6	$—
1 year - 5 years	159.1	157.8
5 years - 10 years	161.7	173.0
10 years - 15 years	67.1	123.0
15 years - 20 years	83.3	80.2
20 years+	220.3	260.2
Total	$725.1	$794.2

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $362.2 million, $303.4 million, and $159.7 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $1.3 million, $6.8 million, and $8.1 million, respectively, and gross losses of $23 million, $4.1 million, and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$459.7	$0.7	$63.7

2021
Debt Securities	$524.5	$11.8	$2.9

The amortized cost of available-for-sale debt securities was $522.7 million as of December 31, 2022 and $515.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.79%, an average duration of approximately 6.39 years, and an average maturity of approximately 10.43 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($170) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$231.9	$19.2	$276.6	$2.3
More than 12 months	198.0	44.5	11.3	0.6
Total	$429.9	$63.7	$287.9	$2.9

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$6.8	$—
1 year - 5 years	201.7	156.8
5 years - 10 years	107.1	161.8
10 years - 15 years	11.7	58.6
15 years - 20 years	35.0	1.9
20 years+	97.4	145.4
Total	$459.7	$524.5

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $209.4 million, $513.8 million, and $252.2 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.2 million, $9.3 million, and $11.5 million, respectively, and gross losses of $10.7 million, $4 million, and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of December 31, 2022, Entergy did not have an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses

related to available-for-sale securities was $0.4 million. Entergy recorded $1.5 million in impairments of available-for-sale securities for the year ended December 31, 2022. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2021.

Decommissioning Trust Funds

DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Entergy Wholesale Commodities nuclear plants did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses

(where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. A portion of Entergy’s decommissioning trust funds were held in a wholly-owned registered investment company, and unrealized gains and losses on both the equity and debt securities held in the registered investment company were recognized in earnings. In December 2020, Entergy liquidated its interest in the registered investment company. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($605) million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$1,655	$4	$201

2021
Debt Securities	$2,177	$65	$12

The unrealized gains/(losses) above are reported before deferred taxes of $2 million as of December 31, 2021 for debt securities. As of December 31, 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,852 million as of December 31, 2022 and $2,125 million as of December 31, 2021. As of December 31, 2022, available-for-sale debt securities had an average coupon rate of approximately 3.12%, an average duration of approximately 6.51 years, and an average maturity of approximately 10.81 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$840	$63	$770	$8
More than 12 months	666	138	99	4
Total	$1,506	$201	$869	$12

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$62	$—
1 year - 5 years	520	473
5 years - 10 years	461	655
10 years - 15 years	117	389
15 years - 20 years	161	130
20 years+	334	530
Total	$1,655	$2,177

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $889 million, $1,465 million, and $1,024 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $2 million, $29 million, and $47 million, respectively, and gross losses of $46 million, $17 million, and $4 million, respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

The fair value of the Palisades decommissioning trust fund as of December 31, 2021 was $576 million. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$470.7	$0.2	$69.3

2021
Debt Securities	$526.3	$11.4	$4.7

The amortized cost of available-for-sale debt securities was $539.8 million as of December 31, 2022 and $519.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.40%, an average duration of approximately 6.20 years, and an average maturity of approximately 7.70 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($181.4) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$197.6	$18.8	$183.8	$2.9
More than 12 months	260.1	50.5	39.5	1.8
Total	$457.7	$69.3	$223.3	$4.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$21.2	$—
1 year - 5 years	159.7	91.7
5 years - 10 years	191.7	217.4
10 years - 15 years	38.0	146.0
15 years - 20 years	42.6	35.7
20 years+	17.5	35.5
Total	$470.7	$526.3

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $42.1 million, $57.6 million, and $94.5 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.1 million, $2.5 million, and $8.8 million, respectively, and gross losses of $2.6 million, $0.6 million, and $0.2 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$725.1	$3.5	$67.5

2021
Debt Securities	$794.2	$31.3	$3.3

The amortized cost of available-for-sale debt securities was $789.1 million as of December 31, 2022 and $766.3 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 3.79%, an average duration of approximately 6.78 years, and an average maturity of approximately 13.04 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($253.5) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$409.9	$24.6	$206.9	$1.4
More than 12 months	207.5	42.9	42.9	1.9
Total	$617.4	$67.5	$249.8	$3.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$33.6	$—
1 year - 5 years	159.1	157.8
5 years - 10 years	161.7	173.0
10 years - 15 years	67.1	123.0
15 years - 20 years	83.3	80.2
20 years+	220.3	260.2
Total	$725.1	$794.2

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $362.2 million, $303.4 million, and $159.7 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $1.3 million, $6.8 million, and $8.1 million, respectively, and gross losses of $23 million, $4.1 million, and $0.7 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2022 and 2021 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2022
Debt Securities	$459.7	$0.7	$63.7

2021
Debt Securities	$524.5	$11.8	$2.9

The amortized cost of available-for-sale debt securities was $522.7 million as of December 31, 2022 and $515.6 million as of December 31, 2021. As of December 31, 2022, the available-for-sale debt securities had an average coupon rate of approximately 2.79%, an average duration of approximately 6.39 years, and an average maturity of approximately 10.43 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2022 on equity securities still held as of December 31, 2022 were ($170) million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2022 and 2021:


	December 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$231.9	$19.2	$276.6	$2.3
More than 12 months	198.0	44.5	11.3	0.6
Total	$429.9	$63.7	$287.9	$2.9

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2022 and 2021 are as follows:


	2022	2021
	(In Millions)
Less than 1 year	$6.8	$—
1 year - 5 years	201.7	156.8
5 years - 10 years	107.1	161.8
10 years - 15 years	11.7	58.6
15 years - 20 years	35.0	1.9
20 years+	97.4	145.4
Total	$459.7	$524.5

During the years ended December 31, 2022, 2021, and 2020, proceeds from the dispositions of available-for-sale securities amounted to $209.4 million, $513.8 million, and $252.2 million, respectively. During the years ended December 31, 2022, 2021, and 2020, gross gains of $0.2 million, $9.3 million, and $11.5 million, respectively, and gross losses of $10.7 million, $4 million, and $0.6 million, respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available for sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. As of December 31, 2022, Entergy did not have an allowance for expected credit losses related to available-for-sale securities. As of December 31, 2021, Entergy’s allowance for expected credit losses

related to available-for-sale securities was $0.4 million. Entergy recorded $1.5 million in impairments of available-for-sale securities for the year ended December 31, 2022. Entergy did not record any impairments of available-for-sale debt securities for the year ended December 31, 2021.